Management, Hitt, Black, Porter, Vahdi Boydaş, Mensur Boydaş

PowerPoint slides by

Susan A. Peterson, Scottsdale Community College

PowerPoint slides by

Susan A. Peterson, Scottsdale Community College

Chapter 8:

Managing Diverse

Human Resources

Chapter 8:

Managing Diverse

Human Resources

m a n a g e m e n t 2eH i t t / B l a c k / P o r t e r

m a n a g e m e n t 2eH i t t / B l a c k / P o r t e r

© 2008 Prentice-Hall Business Publishing 2

Learning ObjectivesLearning Objectives

After studying this chapter, you should be able to:

Explain why maximizing the potential of the firm’s human resources is important for both a company’s human resource management department and all managers

Explain how a firm’s human resource capabilities affects its strategy

Highlight the key aspects of getting the right people in the right jobs

Outline the effective methods for selecting job candidates

After studying this chapter, you should be able to:

Explain why maximizing the potential of the firm’s human resources is important for both a company’s human resource management department and all managers

Explain how a firm’s human resource capabilities affects its strategy

Highlight the key aspects of getting the right people in the right jobs

Outline the effective methods for selecting job candidates


Learning ObjectivesLearning Objectives

Highlight the keys to effective socialization and training

Describe various methods for providing employees feedback on their performance

Discuss the various compensation and reward systems commonly used by firms

Discuss why managing diversity is increasingly important in the light of globalization

Highlight the keys to effective socialization and training

Describe various methods for providing employees feedback on their performance

Discuss the various compensation and reward systems commonly used by firms

Discuss why managing diversity is increasingly important in the light of globalization


Managers Perform HR FunctionsManagers Perform HR Functions

All managers – even outside the HR department – must be able to:

Recruit and select the right people

Effectively socialize and train people in your unit

Evaluate their performance

Determine reward systems that will motivate them to perform at a high level

Help subordinates further develop to advance in their careers

All managers – even outside the HR department – must be able to:

Recruit and select the right people

Effectively socialize and train people in your unit

Evaluate their performance

Determine reward systems that will motivate them to perform at a high level

Help subordinates further develop to advance in their careers


Strategic Role of HRMStrategic Role of HRM

Firm’s ability to survive and prosper is increasingly a function of the human resources they have

Managers’ career success depends on how well they manager their firm’s resources

Firm’s ability to survive and prosper is increasingly a function of the human resources they have

Managers’ career success depends on how well they manager their firm’s resources


General Framework of HRMGeneral Framework of HRM

EnvironmentExternalInternal

EnvironmentExternalInternal

Organization Strategy

Organization Strategy

CompetitiveAdvantage

CompetitiveAdvantage

Human Resource Management ActivitiesPlanning, Job Analysis, Recruiting, Selecting,

Socializing and Training, Job Design, Performance Appraisal, Compensation, Development

Human Resource Management ActivitiesPlanning, Job Analysis, Recruiting, Selecting,

Socializing and Training, Job Design, Performance Appraisal, Compensation, Development

Adapted from Exhibit 8.1


HRM ActivitiesHRM Activities

Two main HRM goals

Getting the right people

Maximizing their performance and potential

Failure of either goal can influence the success or failure of the other

Two main HRM goals

Getting the right people

Maximizing their performance and potential

Failure of either goal can influence the success or failure of the other


Getting the Right People: PlanningGetting the Right People: Planning

Planning

Forecasting demand

Assessing supply

Formulating fulfillment plans

Planning

Forecasting demand

Assessing supply

Formulating fulfillment plans


Getting the Right People: Job AnalysisGetting the Right People: Job Analysis

Job Analysis

Scope and depth of jobs

Requisite skills, abilities, and knowledge that people need to perform their jobs successfully

Job description

Job specification

Job Analysis

Scope and depth of jobs

Requisite skills, abilities, and knowledge that people need to perform their jobs successfully

Job description

Job specification


Getting the Right People: RecruitingGetting the Right People: Recruiting

Recruiting

Job posting

Advertisements

Employment agencies

Employee referrals

School placement centers

Internet recruiting

Recruiting

Job posting

Advertisements

Employment agencies

Employee referrals

School placement centers

Internet recruiting


Getting the Right People: SelectionGetting the Right People: Selection

Written tests

Background and reference checks

Physical examinations

Written tests

Background and reference checks

Physical examinations

Selection Techniques

Interviews

Work sampling

Work simulation

Assessment centers

Interviews

Work sampling

Work simulation

Assessment centers

Selection Techniques


Plan the interview by reviewing the candidate and the job specifications

Establish rapport with a friendly greeting and start the interview with a nonjob question

Follow structured set of questions

Avoid questions that require or solicit a simple yes or no response

Try not to telegraph, or give cues for, the desired answer

Make sure the candidate has plenty of time to answer—do not monopolize the conversation

Plan the interview by reviewing the candidate and the job specifications

Establish rapport with a friendly greeting and start the interview with a nonjob question

Follow structured set of questions

Avoid questions that require or solicit a simple yes or no response

Try not to telegraph, or give cues for, the desired answer

Make sure the candidate has plenty of time to answer—do not monopolize the conversation

Tips for InterviewersTips for Interviewers



Listen carefully and paraphrase key candidate answers to be sure you understand what they meant to say

Ask for specific, not general, examples of the candidate’s experience and accomplishments

Leave time at the end of the interview to answer questions from the candidate

At the close make sure the candidate knows what the next steps are and approximate timing

After the candidate leaves, review your notes and highlight important points while they are fresh in your mind

Listen carefully and paraphrase key candidate answers to be sure you understand what they meant to say

Ask for specific, not general, examples of the candidate’s experience and accomplishments

Leave time at the end of the interview to answer questions from the candidate

At the close make sure the candidate knows what the next steps are and approximate timing

After the candidate leaves, review your notes and highlight important points while they are fresh in your mind

Tips for Interviewers (cont.)Tips for Interviewers (cont.)



Prepare for the interview by researching the company through articles and its own Web site

Smile and provide a warm greeting and firm handshake if the interviewer extends his or her hand

Make sure that your overall appearance (hair style, clothing, makeup, and so on) match the nature of the business and culture of the company

Watch your nonverbal behavior to ensure that you maintain good eye contact and convey enthusiasm without being overly expressive with your hands or other body movements

Prepare for the interview by researching the company through articles and its own Web site

Smile and provide a warm greeting and firm handshake if the interviewer extends his or her hand

Make sure that your overall appearance (hair style, clothing, makeup, and so on) match the nature of the business and culture of the company

Watch your nonverbal behavior to ensure that you maintain good eye contact and convey enthusiasm without being overly expressive with your hands or other body movements

Tips for IntervieweesTips for Interviewees

Adapted from Exhibit 15.3: Tips for IntervieweesAdapted from Exhibit 8.3


Try to solicit the interviewer’s needs early in the interview

Early in the interview be sure to get a complete picture of the job through questions such as “Can you tell about what has led people to succeed in this job in the past?”

Explicitly relate yourself and capabilities to the interviewer’s needs through statements such as, “You mentioned that one of the keys to this position is the ability to motivate others. In my experience at XYZ. . . .”

Try to solicit the interviewer’s needs early in the interview

Early in the interview be sure to get a complete picture of the job through questions such as “Can you tell about what has led people to succeed in this job in the past?”

Explicitly relate yourself and capabilities to the interviewer’s needs through statements such as, “You mentioned that one of the keys to this position is the ability to motivate others. In my experience at XYZ. . . .”

Tips for Interviewees (cont.)Tips for Interviewees (cont.)



Take your time before answering; you do not need to begin talking the instant the interviewer asks a question

Conclude the interview by thanking the person for the opportunity and expressing your interest in the company and the position

Take your time before answering; you do not need to begin talking the instant the interviewer asks a question

Conclude the interview by thanking the person for the opportunity and expressing your interest in the company and the position

Tips for Interviewees (cont.)Tips for Interviewees (cont.)



Key Aspects of Getting the Right PeopleKey Aspects of Getting the Right People


Job AnalysisJob Analysis

PlanningForecasting demand Estimating supply

Determining fulfillment

PlanningForecasting demand Estimating supply

Determining fulfillment

RecruitingRecruiting

SelectingSelecting


Maximizing Performance: Socialization and TrainingMaximizing Performance: Socialization and Training

Socialization and Training

OrientationOrientation

On-the-Job TrainingOn-the-Job Training

Off-the-Job TrainingOff-the-Job Training

Technical, Interpersonal, and Conceptual Training Technical, Interpersonal, and Conceptual Training


On-the-Job Training TechniquesOn-the-Job Training Techniques

ExpandedResponsibilitiesExpandedResponsibilities

Expands the job duties, assignments, and responsibilities of an individualExpands the job duties, assignments, and responsibilities of an individual

JobRotationJobRotation

Moves individuals to various types of jobs within the organization at the same level or next-immediate-higher level for a specific period of time

Moves individuals to various types of jobs within the organization at the same level or next-immediate-higher level for a specific period of time

Staff DevelopmentMeetingsStaff DevelopmentMeetings

Held offsite to discuss facts of each individual’s job and to develop ideas for improving job performanceHeld offsite to discuss facts of each individual’s job and to develop ideas for improving job performance

“Assistant to”Positions“Assistant to”Positions

Serve as staff assistants to higher-skill level jobs for a specified period of time to become more familiar with the higher-skilled positions in the organization

Serve as staff assistants to higher-skill level jobs for a specified period of time to become more familiar with the higher-skilled positions in the organization



On-the-Job Training Techniques(continued)On-the-Job Training Techniques(continued)

Problem SolvingConferencesProblem SolvingConferences

Held to solve a specific problem being experienced by a group or the organization as a wholeHeld to solve a specific problem being experienced by a group or the organization as a whole

MentoringMentoringA guide or knowledgeable person higher up in the organization helps a new employee “learn the ropes” of the organization and provides other advice

A guide or knowledgeable person higher up in the organization helps a new employee “learn the ropes” of the organization and provides other advice

SpecialAssignmentsSpecialAssignments

Special tasks or responsibilities are given to an individual for a specified period of timeSpecial tasks or responsibilities are given to an individual for a specified period of time

CompanyTrainersCompanyTrainers

Special programs can cover such topics as safety, new personnel procedures, new product or services, affirmative action, and technical programs

Special programs can cover such topics as safety, new personnel procedures, new product or services, affirmative action, and technical programs



On-the-Job Training Techniques(continued)On-the-Job Training Techniques(continued)

OutsideConsultantsOutsideConsultants

Recognized experts are brought to the company to conducttraining on such topics as goal setting, communications, assessment techniques, safety, and other current topics

Recognized experts are brought to the company to conducttraining on such topics as goal setting, communications, assessment techniques, safety, and other current topics

ConsultantAdvisoryReviews

ConsultantAdvisoryReviews

Experts in specialized fields meet with various managers and employee groups to investigate and help solve particular problems

Experts in specialized fields meet with various managers and employee groups to investigate and help solve particular problems

ReadingMatterReadingMatter

A formal program is created to circulate books, journals, selected articles, new business material, and so on to selected employees

A formal program is created to circulate books, journals, selected articles, new business material, and so on to selected employees

ApprenticeshipApprenticeship Training is provided through working under a journeyman or master in a craftTraining is provided through working under a journeyman or master in a craft



Training ObjectivesTraining Objectives

Understanding correct and incorrect

behaviors

Understanding correct and incorrect

behaviors

Knowledge of why certain behaviors are correct or incorrect

Knowledge of why certain behaviors are correct or incorrect

Opportunities to practice desired

behaviors

Opportunities to practice desired

behaviors

Feedback on performanceFeedback on performance

Opportunities to practice and improve

Opportunities to practice and improve


Maximizing Performance: Job DesignMaximizing Performance: Job Design

Job design: structuring or restructuring of key components of a job, including the job’s responsibilities

Job sharing

Reengineering

Job design: structuring or restructuring of key components of a job, including the job’s responsibilities

Job sharing

Reengineering


Maximizing Performance: Performance AppraisalsMaximizing Performance: Performance Appraisals

Performance appraisal

Graphic rating scales

Behaviorally anchored rating scales

360-degree feedback

Effective performance feedback

Critical incidents

Performance appraisal

Graphic rating scales

Behaviorally anchored rating scales

360-degree feedback

Effective performance feedback

Critical incidents


Graphic Rating ScaleGraphic Rating Scale

Employee name: Dept.

1. Quality of work

2. Quantity of work

3. Cooperation

4. Dependability

5. Initiative

6. Job knowledge

7. Attitude

Excellent Good Average Fair Poor



Behaviorally Anchored Rating ScaleBehaviorally Anchored Rating Scale

Position:Job dimensions:

Plans work and organizes time carefully so as to maximize resources and meet commitments

Even though this associate has a report due on another project, he or she would be well prepared for the assigned discussion on your project

9

8

7This associate would keep a calendar or schedule on which deadlines and activities are carefully noted, and which would be consulted before making new commitments



Behaviorally Anchored Rating Scale (cont.)Behaviorally Anchored Rating Scale (cont.)

Plans and organizes time and effort primarily for large segments of a task. Usually meets commitments, but may overlook what are considered secondary details.

As program chief, this associate would make arrangements for enlisting resources for a special project reasonably well, but would probably omit one or two details that would have to be handled by improvisation

6

5

4

This associate would meet a deadline in handing in a report, but the report might be below usual standard if other deadlines occur on the same day the report is due

This associate’s evaluations are likely not to reflect abilities because of overcommitments in other activities



Behaviorally Anchored Rating Scale(cont.)Behaviorally Anchored Rating Scale(cont.)

Appears to do little planning. May perform effectively, despite what seems to be a disorganized approach, by concerted effort, although deadlines may be missed.

This associate would plan more by enthusiasm than by timetable and frequently have to work late the night before an assignment is due, although it would not be completed on time

3

2

1

This associate would often be late for meetings, although others in similar circumstances do not seem to find it difficult to be on time

This associate never makes a deadline, even with sufficient notice



Performance Appraisal InterviewPerformance Appraisal Interview

1. Review key work objectives, goals, or standards against which the employee’s performance is measured

1. Review key work objectives, goals, or standards against which the employee’s performance is measured

Review work objectives




2. Summarize employee’s overall performance by reviewing specific positive and negative incidents

2. Summarize employee’s overall performance by reviewing specific positive and negative incidents

Summarize overall performance

(critical incidents)







3. Discuss causes of weak performance and listen carefully to the employee’s explanation

3. Discuss causes of weak performance and listen carefully to the employee’s explanation







Discuss causes of poor performanceDiscuss causes of poor performance



4. Discuss alternative means of improving future performance and encourage employee input

4. Discuss alternative means of improving future performance and encourage employee input








Agree on process for future improvement




5. Establish an agreed approach, timetable, and review process for future improvement

5. Establish an agreed approach, timetable, and review process for future improvement










Discuss alternatives for improving




6. Establish key objectives, timetables, and standards for the upcoming performance period

6. Establish key objectives, timetables, and standards for the upcoming performance period







Objectives for next performance periodObjectives for next performance period








7. Leave the meeting on an encouraging and positive note

7. Leave the meeting on an encouraging and positive note Summarize overall

performance(critical incidents)





Objectives for next performance periodObjectives for next performance period






End with encouragement

End with encouragement


Maximizing Performance: CompensationMaximizing Performance: Compensation

Compensation

Pay- Pay structure

- Wage or salary- Broadband system- At-risk system or variable- Incentive plans

Benefits- Cafeteria-style plans

Rewards and motivation

Compensation

Pay- Pay structure

- Wage or salary- Broadband system- At-risk system or variable- Incentive plans

Benefits- Cafeteria-style plans

Rewards and motivation


Pay Structure: Traditional StructurePay Structure: Traditional Structure

Job evaluation points

Mo

nth

ly p

ay

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

100200

300400

500600

700800

9001000

11001200

13001400

Traditional Pay Structure



1

2

3

Pay Structure: BroadbandPay Structure: Broadband

Job evaluation points

Mo

nth

ly p

ay

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

100200

300400

500600

700800

9001000

11001200

13001400

Broadband Pay Structure



Maximizing Performance: Employee Development and Labor RelationsMaximizing Performance: Employee Development and Labor Relations

Career paths

- Cross-functional job rotation

Promotion

Termination

Layoffs

Labor relations

Career paths

- Cross-functional job rotation

Promotion

Termination

Layoffs

Labor relations


Managing a Diverse WorkforceManaging a Diverse Workforce

Ethnic diversity

Gender and diversity

- Glass ceiling

Sexual harassment

Ethnic diversity

Gender and diversity

- Glass ceiling

Sexual harassment


U.S. Workforce Demographic Changes, 1980–2020U.S. Workforce Demographic Changes, 1980–2020

18%

37%

0.8%

63%

10% 13%

2%

17%

0.6%

82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1980 2000 2020

African Americans Hispanics/Latinos Asian AmericansNative Americans Whites

18%

37%

0.8%

63%

10% 13%

2%

17%

0.6%

82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1980 2000 2020

African Americans Hispanics/Latinos Asian AmericansNative Americans Whites


George

Is the data placed correctly on the graph? Some seems to be off...


Projected Changes in the U.S. Population by Age and Ethnicity, 2000-2020Projected Changes in the U.S. Population by Age and Ethnicity, 2000-2020

-10

-5

0

5

10

15

20

25

0 to 17 18 to 24 25 to 44 45 to 64 65+

Whites Hispanic/Latinos African Americans Asian Americans

-10

-5

0

5

10

15

20

25

0 to 17 18 to 24 25 to 44 45 to 64 65+

Whites Hispanic/Latinos African Americans Asian AmericansAdapted from Exhibit 8.10


Major U.S. Federal Laws and RegulationsMajor U.S. Federal Laws and Regulations

Thirteenth AmendmentThirteenth Amendment

Abolished slaveryAbolished slavery All individualsAll individuals Court SystemCourt System

Fourteenth AmendmentFourteenth Amendment

Provides equal protection for all citizens and requires due process in state action

Provides equal protection for all citizens and requires due process in state action

State actions (e.g., decisions of governmental organizationsState actions (e.g., decisions of governmental organizations

Court SystemCourt System

Civil Rights Acts of 1866 and 1871

Civil Rights Acts of 1866 and 1871

Grant citizens right to make, perform, modify, or terminate contracts and enjoy all benefits, terms, and conditions of the contractual relationship

Grant citizens right to make, perform, modify, or terminate contracts and enjoy all benefits, terms, and conditions of the contractual relationship

Employers engaged in interstate commerceEmployers engaged in interstate commerce

EEOCEEOC

ActAct Enforcement

Agency

Enforcement

AgencyCoversCoversRequirementsRequirements



Equal Pay Act of 1963Equal Pay Act of 1963

Requires that men and women performing equal jobs receive equal pay

Requires that men and women performing equal jobs receive equal pay

Employers with 15 or more employees working 20 or more weeks per year, labor unions, and employment agencies

Employers with 15 or more employees working 20 or more weeks per year, labor unions, and employment agencies

EEOCEEOC

Title VII of CRATitle VII of CRA Provides equal protection for all citizens; requires due process in state action

Provides equal protection for all citizens; requires due process in state action

State actions (e.g., decisions of governmental organizationsState actions (e.g., decisions of governmental organizations

Court SystemCourt System

Age Discrimination in Employment Act of 1967

Age Discrimination in Employment Act of 1967

Prohibits discrimination in employment against individuals 40 years of age or older

Prohibits discrimination in employment against individuals 40 years of age or older

Employers with 15 or more employees working 20 or more weeks per year; labor unions; employment agencies; federal government

Employers with 15 or more employees working 20 or more weeks per year; labor unions; employment agencies; federal government

EEOCEEOC

Major U.S. Federal Laws and Regulations(continued)Major U.S. Federal Laws and Regulations(continued)

ActAct Enforcement

Agency

Enforcement




Rehabilitation Act of 1973Rehabilitation Act of 1973

Requires affirmative action in the employment of individuals with disabilities

Requires affirmative action in the employment of individuals with disabilities

Government agencies; federal contractors and subcontractors with contracts greater than $2,500

Government agencies; federal contractors and subcontractors with contracts greater than $2,500

OFCCPOFCCP

Americans with Disabilities ActAmericans with Disabilities Act

Prohibits discrimination against individuals with disabilities of 1990

Prohibits discrimination against individuals with disabilities of 1990

Employers with more than 15 employeesEmployers with more than 15 employees

EEOCEEOC

Executive Order 11246Executive Order 11246

Requires affirmative action in hiring women and minorities

Requires affirmative action in hiring women and minorities

Federal contractors and subcontractors with contracts greater than $10,000

Federal contractors and subcontractors with contracts greater than $10,000

OFCCPOFCCP

Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management


ActAct Enforcement

Agency

Enforcement




Family and medical leave Act of 1993

Family and medical leave Act of 1993

Requires employers to provide 12 weeks of unpaid leave for family and medical emergencies

Requires employers to provide 12 weeks of unpaid leave for family and medical emergencies

Employers with more than 50 employeesEmployers with more than 50 employees

Department of LaborDepartment of Labor

Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management


ActAct Enforcement

Agency

Enforcement


Civil Rights Act of 1991Civil Rights Act of 1991

Prohibits discrimination (same as Title VII)Prohibits discrimination (same as Title VII)

Same as Title VII, plus applies Section 1981 to employment discrimination cases

Same as Title VII, plus applies Section 1981 to employment discrimination cases

OFCCPOFCCP



Managing Diversity TodayManaging Diversity Today

Potential problems with diversity:

Communication problems and misunderstandings

Mistrust

Conflict and incompatible approaches to resolving the conflict

Lower group cohesiveness and greater subgroup formation

Potential problems with diversity:

Communication problems and misunderstandings

Mistrust

Conflict and incompatible approaches to resolving the conflict

Lower group cohesiveness and greater subgroup formation

How to leverage diversity:

Know yourself

Prepare yourself and your employees

Provide support

Guide behavior

How to leverage diversity:

Know yourself

Prepare yourself and your employees

Provide support

Guide behavior


Where the Workers AreWhere the Workers Are

33%

25%

17%

67%

75%

83%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1950 1990 2025

Developed CountriesDeveloping Countries

33%

25%

17%

67%

75%

83%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1950 1990 2025

Developed CountriesDeveloping Countries

Per

cen

tag

e o

f w

ork

ers

loca

ted

in

dev

elo

ped

an

d d

evel

op

ing

co

un

trie

s


Education

Management, Hitt, Black, Porter, Vahdi Boydaş, Mensur Boydaş