HRM 527

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Transcript of HRM 527

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Human Resource Human Resource ManagementManagement

(527)(527)

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COURSE OUTLINE COURSE OUTLINE MBA (527)MBA (527)Text Book Text Book

Human Resource Human Resource ManagementManagement

ByByGary DesslerGary Dessler

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OVERVIEW OF THE COURSE

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Part 1: INTRODUCTION

Chapter 1: The Strategic Role of Human Resource Management. The manager’s human resource management jobs, crucial global and competitive trends, how managers use technology and modern HR measurement systems to create high-performance work systems.

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Part 1: INTRODUCTION

Chapter 2: Equal Opportunity and the law. What you’ll need to know about equal opportunity laws as they relate to human resource management activities such as interviewing, selecting employees, and evaluating performance.

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Part 1: INTRODUCTION

Chapter 3; Strategic Human resource management and the HR Scorecard. What is strategic planning; high performance work systems; strategic HR; the HR Scorecard.

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Part 2: RECRUITMENT AND PLACEMENT

Chapter 4: Job Analysis, How to analyze a job; how to determine the human resource requirements of the job, as well as its specific duties and responsibilities.

Chapter 5: Personnel Planning and Recruiting. Human resource planning and planning systems; determining what sorts of people need to be hired recruiting them.

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Part 2: RECRUITMENT AND PLACEMENT

Chapter 6: Employee Testing and Selection. Techniques you can use to ensure that you’re hiring the right people.

Chapter 7: interviewing Candidates. How to interview candidates to help ensure that you hire the right person for the right job.

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Part 3: TRAINING AND DEVELOPMENT

Chapter 8: Training and Developing Employees. Providing the training necessary to ensure that your employees have the knowledge and skills needed to accomplish their tasks; concepts and techniques for developing more capable employees, managers, and organizations.

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Part 3: TRAINING AND DEVELOPMENT

Chapter 9: Performance Management and Appraisal. Techniques for appraising performance and for linking performance with the organization's goals.

Chapter 10: Managing careers. Techniques such as career planning and promotion from within that firms use to help ensure employees can achieve their potential.

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Part 4: COMPENSATION

Chapter 11: Establishing Strategic Pay Plans. How to develop equitable pay plans for your employees.

Chapter 12: Pay-For-Performance and Financial Incentives. Pay-for-performance plans such as financial incentives, merit pay, and incentives that help tie performance to pay.

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Part 4: COMPENSATION

Chapter 13: Benefits and Services. Providing benefits that make it clear the firm views its employees as long-term investments and is concerned with their welfare.

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Part 4: COMPENSATION

Chapter 14: Ethics, Justice, and Fair Treatment in HR Management. Ensuring ethical and fair treatment through discipline, grievance, and career management processes.

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Part 5: EMPLOYEE RELATIONS

Chapter 15: labor relations and Collective Bargaining, Concepts and techniques concerning the relations between unions and management, including the union organizing campaign; negotiating and agreeing upon a collective bargaining agreement between unions and management; and managing the agreement via the grievance process.

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Part 5: EMPLOYEE RELATIONS

Chapter 16: Employee Safety and health. The causes of accidents, how to make the work place safe, and laws governing your responsibilities for employee safety and health.

Chapter 17: Managing Global Human Resources. The growing importance of international business, and HR’s role in managing the personnel side of multinational operations.

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PART - 1

CHAPTER # 1

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THE MANAGER’S HUMAN RESOURCE MANAGEMENT JOBS

Most writers agree that all mangers perform certain basic functions. These are planning, organizing, staffing, leading, and controlling. In total, they represent the Management process. Some of the specific activities involved in each function include:

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THE MANAGER’S HUMAN RESOURCE MANAGEMENT JOBS

Planning: Establishing goals and standards; developing rules and procedures; developing plans and forecasting.

Organizing: Giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication and coordinating the work of subordinates.

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THE MANAGER’S HUMAN RESOURCE MANAGEMENT JOBS

Staffing: Determining what type of people should be hired; recruiting prospective employees; selecting employees; setting performance standards; compensating employees; evaluating performance; counseling employees; training and developing employees.

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THE MANAGER’S HUMAN RESOURCE MANAGEMENT JOBS

Leading: Getting others to get the job done; maintaining morale, motivating subordinates.

Controlling: Setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standards, taking corrective action as needed.

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Human Resource Management (HRM) function. Human resource management is the process of acquiring, training, appraising, and compensating employees, and attending to their labor relations, health and safety, and fairness concerns.

Personnel aspects of management job include:

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Conducting job analyses (determining the nature of each employee’s job).

Planning labor needs and recruiting job candidates.

Selecting job candidates.Orienting and training new employees.Managing wages and salaries

(compensating employees).Providing incentives and benefits.Appraising performance.

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Communicating (interviewing, counseling, disciplining).

Training and developing managers.Building employee commitment.

And what a manager should know about:

Equal opportunity and affirmative action.Employee health and safety.Handling grievances and labor relations.

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Why is HR Management Important to All Managers?

Why are these concepts and techniques important to all managers? Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t want to make while managing. For example, you don’t want to:

Hire the wrong person for the job.Experience high turnover.

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Have your people not doing their best.Waste time with useless interviews.Have your company taken to court because

of discriminatory actionsHave your company cited under federal

occupational safety laws for unsafe practices.

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Line and Staff Aspects of HRM

Line Versus Staff Authority

Authority is the right to make decision, to direct the work of others, and to give orders. In management, we usually distinguish between line authority and staff authority.

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Line and Staff Aspects of HRM

Line managers are authorized to direct the work of subordinates—they’re always someone’s boss. In addition, line managers are directly in charge of accomplishing the organization’s basic goals. (hotel managers and the managers for production and sales are generally line managers, for example).

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Line and Staff Aspects of HRM

Staff managers, on the other hand, are authorized to assist and advise line managers

in accomplishing these basic goals. HR managers are staff managers. They are responsible for assisting and advising line managers in areas like recruiting, hiring, and compensation.

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Line and Staff Aspects of HRM

Line Manager’s HRM Responsibilities. The direct handling of people has always been an integral part of every line manager’s responsibility, from president down to the lowest-level supervisor. For example, one major company outlines its line supervisor's responsibilities for effective human resource management under the following general headings:

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Line and Staff Aspects of HRM

1. Placing the right person on the right job.

2. Starting new employees in the organization (orientation).

3. Training employees for jobs that are new to them.

4. Improving the job performance of each person.

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Line and Staff Aspects of HRM

5. Gaining creative cooperation and developing smooth working relationships.

6 Interpreting the company’s policies and Procedures.

7. Controlling labor costs.8. Developing the abilities of each person.9. Creating and maintaining department morale.10.Protecting employees’ health and physical

condition.

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The HR manger carries out three distinct functions:

1. A line function. The HR manager directs the activities of the people in his or her own department and in related service areas (like the plant cafeteria). In other words, he or she exerts line authority within the HR department.

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2. A coordinative function. HR managers also coordinate personnel activities, a duty often referred to as functional control. Here the HR manager and department act as the “right arm of the top executive” to ensure that line managers are implementing the firm’s HR objectives, policies, and procedures.

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3. Staff (assist and advise) functions. Assisting and advising line managers is the heart of the role of HR manager. HR assists in strategy design and execution by helping the CEO to better understand the personnel aspects of the company’s strategic options. HR assists in hiring, training, evaluating, rewarding, counseling, promoting and firing employees. It administers the various benefit programs (health and accident insurance, retirement, vacation, and so on).

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Employee advocacyHR must take responsibility for clearly defining how management should be treating employees, make sure employees have the mechanisms required to contest unfair practices, and represent the interests of employees within the framework of its primary obligation to senior management.

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Examples of HR job duties include:Recruiters: Search for qualified job

applicants.Equal employment opportunity (EEO)

coordinators: Investigate and resolve EEO grievances, examine organizational practices for potential violations, and compile and submit EEO reports.

Job analysts: Collect and examine information about jobs to prepare job descriptions.

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Compensation managers: Develop compensation plans and handle the employee benefits program.

Training specialists: Plan, organize, and direct training activities.

Labor relations specialists: Advise management on all aspects of union-management relations.

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THE CHANGING ENVIRONMENT OF HR MANAGEMENT

HR’s Changing RoleThe HR department’s responsibilities have

gradually become broader and more strategic since the days when business people began including “personnel departments” in their organization charts.

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THE CHANGING ENVIRONMENT OF HR MANAGEMENT

Today, the globalization of the world economy and several other trends are again triggering changes in how companies organize, manage, and use their personnel / HR departments.

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A CHANGING ENG\VIRONMENT

•Globalization Globalization refers to the tendency of firms to

extend their sales, ownership, and/or manufacturing to new markets abroad.

More globalization means more competition, and more competition means more pressure to be “world-class” to lower costs, to make employees more productive, and to do thing better and less expensively.

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A CHANGING ENG\VIRONMENT

Technological Advances

Many of the improvements that make firms world-less involve technology.

Exporting Jobs

competitive pressures and the search for greater efficiencies are also prompting more employers to export jobs aboard.

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A CHANGING ENVIRONMENT

The Nature of WorkTechnology is also changing the nature of work. Even factory jobs are more technologically demanding.

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MEASURING HR’S CONTRIBUTION: STRATEGY METRICS, AND THE HR SCORECARD

HR’s priorities and tasks evolve over time, because they need to fit or make sense in terms of the company’s strategic direction.

A strategy is the company’s plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage.

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AN EMPHASIS ON PERFORMANCE

A recent survey of HR professionals shows that the pressure for more performance hasn’t been lost on HR managers. When asked to rate the importance of various business issues, their five top choices were competition for market share, price competition/price control, government regulations, need for sales growth, and need to increase productivtity.

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AN EMPHASIS ON PERFORMANCE

Today’s successful manager must have the capacity to visualize how he or she can adapt HR systems to support the company’s strategic needs, and the ability to execute the required changes.

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MetricsA set of quantitative performance measures

HR managers use to assess their operations.

• The HR Scorecard

HR scorecard measures the HR function’s effectiveness and efficiency in producing employee behaviors needed to achieve the company’s strategic goals.

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The High performance Work SystemEvery company must design a set of HR

policies and practices that make sense for own strategy and situation.

However, research shows that the HR systems of High-performing companies do have many things in common, and that they differ in measurable ways from those of low-performing companies.

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Specifically, these HR systems are “high-performance work systems” (HPWS). HPWS generate more job applicants, screen candidates more effectively, provide more and better training, link pay more explicitly to performance, and provide a safer work environment, among many other things. In terms of measurable outcomes, these HPWS produce more qualified applicants per position, more employees hired based on validated selection tests, more hours of training for new employees, and a higher percentage of employees receiving regular performance appraisals.

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The general aim of the HPWS is to maximize the competencies and abilities of employees throughout the organization.

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THE NEW HR MANAGER

New ProficienciesAs you can see, being an HR manager today

is a challenging task, and requires several proficiencies. One study found four categories of proficiencies: HR proficiencies, business proficiencies, leadership proficiencies and learning proficiencies.

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The Need to “Know Your Employment Law”

A growing web of HR-related laws effects virtually every HR decision the HR or line manager makes. Equal employment laws set guidelines regarding how the company writes its recruiting ads, what questions its job interviewers ask, and how it selects candidates for training programs or evaluates its managers.

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Ethics and HR One survey found that six of the ten most

serious ethical issues—workplace safety, security of employee records, employee theft, affirmative action, comparable work, and employee privacy rights—were HR related.

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HR CertificationAs the HR manager’s tasks grow more

complex, human resource management is becoming more professionalized.

HR and Technology Technological applications play an

increasingly important role in HR. Technology improves HR functioning in four main ways: self-service, call centers, productivity improvement, and outsourcing.

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Outsourcing Letting outside vendors provide services. Technology also makes it easier to outsource HR activities to specialist service providers, by enabling service providers to have real-time, Internet-based access to the employer’s HR database. Outsourcing is increasingly popular.

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CHAPTER # 3

STRATEGIC HUMAN RESOURCE

MANAGEMENT AND THE HR SCORECARD

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Every manager makes decisions within the context of the guidelines laid down by his or her company’s strategic plan.

The company’s strategic plan defines the nature of the company’s business, for instance, in terms of the markets in which it will compete and the ways in which it will differentiate itself from its competitors.

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The strategic plan lays out the broad guidelines within which the company’s managers make decisions.

It thereby has a big influence on things like: “What sorts of people should we hire? “What kind of sales force do we need? “What production methods will we use?”

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And “How should we build our brand image and market our products?”

In a very real sense, then, the HR manager can’t make intelligent decisions regarding how to design the company’s HR systems unless he or she understands how each of those systems helps the company achieve its strategic goals.

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HR’S STRATEGIC CHALLENGES

The central challenge facing human resource management is always to provide a set of services that make sense in terms of the company’s strategic plan.

A strategic plan is the company’s plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage.

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HR’S STRATEGIC CHALLENGES

The basic strategic planning process involves asking. “Where are we now as a business, and where do we want to be?

The manager then formulates specific (HR and other) strategies to take the company from where it is now to where he or she wants it to be.

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HR’S STRATEGIC CHALLENGES

A strategy is thus a course of action.The company’s various strategies –its HR,

sales, finance, and manufacturing strategies, for instance—need to support the company’s strategic plan.

Suppose the strategic plan calls for improving the quality of the company’s products.

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HR’S STRATEGIC CHALLENGES

Then one HR strategy might be to “boost employee quality consciousness through improved screening and training.”

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THE STRATEGIC MANAGEMENT PROCESS

Strategic planning is part of the firm’s strategic management process.

It includes evaluating the firm’s internal and external situation, defining the business and developing a mission.

Translating the mission into strategic goals, and crafting a strategy or course of action.

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THE STRATEGIC MANAGEMENT PROCESS

Strategic management includes the implementation phase. It is the process of identifying and executing the organization’s mission, by matching the company’s capabilities with the demands of its environment.

The strategic management process consists of several related tasks (see figure 3-1). Let’s look at the main ones.

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Step 1: Define the business and Its Mission

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Vision A general statement of its intended direction that evokes emotional feelings in organization members.

MissionSpells out who the company is, what it does, and where it’s headed.

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Step 2: Perform External and Internal Audits

SWOT analysis The use of SWOT analysis to compile and

organize the process of identifying company strengths, Weaknesses, Opportunities, and Threats.

Step 3: Translate the Mission Into strategic Goals.

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Step 4: Formulate a Strategy to Achieve the strategic Goals:

StrategyThe company’s long-tem plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

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Step 5: Implement the StrategyStep 6: Evaluate PerformanceStrategic Control

The process of assessing progress towards strategic goals and taking corrective action as needed.

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TYPES OF STRATEGIC PLANNING

Managers engage in three levels of strategic planning. At the company- wide level, many firms consist of several businesses.

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TYPES OF STRATEGIC PLANNING

A company’s corporate-level strategy identifies the portfolio of businesses that , in total, comprise the company and the ways in which these businesses relate to each other. For example, a diversification corporate strategy implies that the firm will expand by adding new product lines.

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TYPES OF STRATEGIC PLANNING

A vertical integration strategy means the firm expands by, perhaps, producing its own raw materials, or selling its products direct.

Consolidation—reducing the company’s size—and geographic expansion—for instance, taking the business abroad—are some other corporate strategy possibilities.

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TYPES OF STRATEGIC PLANNING

At the next level down, each of these businesses (such as Pizza Hut) needs a business—level/competitive strategy.

Competitive advantageAny factors that allow an organization to differentiate its product or service from those of its competitors to increase market share.

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Figure 3-4 Relationships Among Strategies in Multiple Business Firms

CorporateStrategy

Business 1Strategy

Business 2Strategy

Business 3Strategy

FunctionalStrategy

FunctionalStrategy

Functionalstrategy

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STRATEGIC HUMAN RESOURCE MANAGEMENT

Strategic Human Resource Management

Formulating and executing HR systems- HR policies and activities—that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

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HR’S STRATEGIC ROLES

As HR managers do assume more strategic planning responsibilities, they will have to acquire new HR skills. This does not just mean technical skills relating to activities like selection and training.

HR managers will need “an in-depth understanding of the value creating proposition of the firm.

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HR’S STRATEGIC ROLES

How does the company make money? What activities and processes are most critical for wealth creation as defined by customers and capital markets? Who in the firm executes these activities successfully?

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HR’S STRATEGY EXECUTION ROLE

Today HR managers fulfill two basic strategic planning roles: strategy execution and strategy formulation.

Strategy execution is traditionally the heart of the HR manager’s strategic planning job.

Top management formulates the company’s corporate and competitive strategies. Then, it formulates broad functional strategies and policies.

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HR’S STRATEGY EXECUTION ROLE

Here, the basic rule is this: The HR department’s strategies, policies, and activities must make sense in terms of the company’s corporate and competitive strategies, and they must support those strategies.

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HR’S STRATEGY FORMULATION ROLE

While execution is important, HR increasingly plays an expanded strategic planning role today. In recent years, HR’s traditional role in executing strategy has expanded to include working with top management to formulate the company’s strategic plans.

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HR’S STRATEGY FORMULATION ROLE

HR helps top management formulate strategy in a variety of ways. For example, formulating a company’s strategic plan requires identifying, analyzing, and balancing the company’s external opportunities and threats, on the one hand, and its internal strengths and weaknesses, on the other.

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HR’S STRATEGY FORMULATION ROLE

Externally, HR management is in a unique position to supply competitive intelligence that may be useful in the strategic planning process.

Details regarding competitors incentive plans, opinion survey data from employees that elicit information about customer complaints, and information about pending legislation such as labor laws and mandatory health insurance are some examples.

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CREATING A STRATEGY-ORIENTED HR SYSTEM

By way of overview, we can think of an HR process as consisting of three basic components.

There are the HR professionals who have the strategic and other skills required to build a strategy-oriented HR system.

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CREATING A STRATEGY-ORIENTED HR SYSTEM

There are the HR policies and activities (such as how the company recruits, selects, and trains and rewards employees) that comprise the HR system itself.

And there are the employee behaviors and competencies that the company’s strategy requires, and that hopefully emerge from the actions and policies of the firm’s strategy-supporting HR system.

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CREATING A STRATEGY-ORIENTED HR SYSTEM

Some HR experts refer to these three elements (the HR professionals, the HR system, and the resulting employee behaviors) as a company’s basic HR architecture (see Figure 3-8).

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Figure 3-8The Basic Architecture of HR

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The HR FunctionHR professionals

with strategic management competencies.

The HR SystemHigh Professionals

Work System (HPWS)Consisting of

Strategically alignedHR policies, and

activities

Employee BehaviorEmployee competenciesValues, motivation, and

Behaviors requiredBy the company’s

Strategic plan

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THE HIGH-PERFORMANCE WORK SYSTEM

In today’s competitive environment, the manager can’t leave the nature of the HR system—the actual HR policies and practices—to chance. As mentioned in Chapter-I, managers usually try to create high-performance work systems (HPWS).

The HPWS is a set of HR polices and practices that maximize the competencies, commitment, and abilities of the firm’s employees. In practice, this means that each HPWS HR activity produces measurable superior results.

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TRANSLATING STRATEGY INTO HR POLICY AND PRACTICE

The HR manager needs way to translate the firm/s new strategy into specific, actionable HR policies and practices. The basic process, as outlined in figure 3-9, is simple and logical.

Management formulates a strategic plan.

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TRANSLATING STRATEGY INTO HR POLICY AND PRACTICE

That strategic plan implies certain workforce requirements, in terms of the employee skills, attributes, and behaviors that HR must deliver to enable the business to achieve its strategic goals.

HR management formulates HR strategies, polices, and practices aimed at achieving the desired workforce skills, attributes, and behaviors.

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Figure 3-9Basic Model of How to Align HR strategy

and Actions with Business Strategy

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Formulate Business StrategicWhat are the strategic goals of the business

Identify Workforce RequirementsWhat employee competencies and

And behaviors must HR deliver To enable the business to

mach its goals?

Formulate HR Strategic Polices and Activity “Which HR strategies and

practices will enable HR to Produce these employee competencies

And behaviors?

Develop Detailed HR Scorecard Measure“How can HR measure whether it is executingWell for the business. In terms of producingThe required workforce competences and

behaviors

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THE HR SCORECARD APPROACH

Management ultimately judges the HR function based on whether it creates value for the company, where “value creation” means contributing in a measurable way to achieving the company’s strategic goals. HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve these strategic goals.

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THE HR SCORECARD APPROACH

Managers often use an HR Scorecard to measure the HR function’s effectiveness and efficiency in producing these employee behaviors and thus in achieving the company’s strategic goals.

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THE HR SCORECARD APPROACH

The HR scorecard is a concise measurement system. It shows the quantitative standards, or “metrics” the firm uses to measure HR activities, and to measure the employee behaviors resulting from these activities, and to measure the strategically relevant organizational outcomes to those employee behaviors. In so doing, it highlights, in a concise but comprehensive way, the causal link between the HR activities, and the emergent employee behaviors, and the resulting firmwide strategic outcomes and performance

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INFORMATION FOR CREATING AN HR SCORECARD

• To create an HR scorecard, the manager needs three types of information: First, he or she must know what the company’s strategy is, because the strategy will determine what the important employee behaviors and strategically important organizational outcomes are, and how the firm will measure organizational performance.

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INFORMATION FOR CREATING AN HR SCORECARD

Second, the manager must understand the causal links between the HR activities, the employee behaviors, the organizational outcomes, and the organization’s performance.

Figure 3-10 summarizes the basic relationships involved.

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INFORMATION FOR CREATING AN HR SCORECARD

Third, the manger must have metrics he or she can use to measure all the activities and results involved, specifically the HR activities, the emergent employee behaviors, the strategically relevant organizational outcomes, and the organizational performance.

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Figure 3-10The Basic HR Scorecard Relationships.

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HR Activates Emergent EmployeeBehaviors

Strategically RelevantOrganizational

Outcome

Organizational Performance

ActiveStrategic Goals

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USING THE HR SCORECARD APPROACH

Step 1: Define the Business StrategyStep 2: Outline the Company’s value

Chain.Step 3: Identify the Strategically

Required Organizational Outcomes.

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USING THE HR SCORECARD APPROACH

Step 4: Identify the Required Workforce Competences and Behaviors.

Step 5: Identify the Strategically relevant HR System Policies and

Activities.Step 6: Design the HR Scorecard

measurement System. Step 7: Periodically Evaluate the

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PART # 2

CHAPTER # 4

JOB ANALYSIS107

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THE NATURE OF JOB ANALYSIS

Organizations consist of positions that have to be staffed.

Job analysis is the procedure through which you determine the duties of these positions and the characteristics of the people to hire for them.

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THE NATURE OF JOB ANALYSIS

Job analysis produces information used for writing job descriptions (a list of what the job entails) and job specifications (what kind of people to hire for the job).

Job analysisThe procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it.

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THE NATURE OF JOB ANALYSIS

Job descriptionA list of a job’s duties, responsibilities, reporting relationships, requirements of a job and the kind of person who should be hired for it.

Job specificationsA list of a job’s “human requirements,” that is, the requisite education, skills, personality, and so on—another product of a job analysis.

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THE NATURE OF JOB ANALYSIS

The supervisor or HR specialist normally collects one or more of the following types of information via the job analysis:

Work activities: First, he or she collects information about the job’s actual work activities, such as cleaning, selling, teaching, or painting. This list may also include how, why, and when the worker performs each activity.

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THE NATURE OF JOB ANALYSIS

Human behaviors: The specialist may also collect information about human behaviors like sensing, communicating, deciding, and writing. Included here would be information regarding job demands such as lifting weights or walking long distances.

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THE NATURE OF JOB ANALYSIS

Machines, tools, equipment, and work aids. This category includes information regarding machines & tools used, materials processed, knowledge dealt with or applied (such as finance or law), and services rendered (such as counseling or repairing).

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THE NATURE OF JOB ANALYSIS

Performance standards: The employer may also want information about the job’s performance standards (in terms of quantity or quality levels for each job duty, for instance). Management will use these standards to appraise employees.

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THE NATURE OF JOB ANALYSIS

Job context: Included here is the information about such matters as physical working conditions, work schedule, and the organizational and social context—for instance, the number of people with whom the employee would normally interact. Information regarding incentives might also be included here.

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THE NATURE OF JOB ANALYSIS

Human requirements: This includes information regarding the job’s Human requirements, such as job-related knowledge or skills (education training, work experience) and required personal attributes (aptitudes, physical characteristics, personality, interests).

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USES OF JOB ANALYSIS INFORMATION

Recruitment and SelectionCompensation

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Figure 4-1 Uses of Job Analysis Information

Job Description andJob Specification

Recruiting and SelectionDecisions Performance Appraisal

Job Evaluation-WageAnd Salary Decisions

(Compensation)Training Requirements

Job Analysis

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Performance Appraisal Training Discovering Unassigned Duties

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STEPS IN JOB ANALYSIS

• There are six steps in doing a job analysis. Let’s look at each of them.

• Step 1: Decide how you’ll use the information, since this will determine the data you collect and how you collect them. Some data collection techniques –like interviewing the employee and asking what the job entails—are good for writing job descriptions and selecting employees for the job.

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STEPS IN JOB ANALYSIS

Other techniques, like the position analysis questionnaire , do not provide qualitative information for job descriptions. Instead, they provide numerical ratings for each job; these can be used to compare jobs for compensation pruposes.

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Step 2: Review relevant background information such as organization charts, process charts, and job descriptions. Organization charts show the organization wide division of work, how the job in question relates to other jobs, and where the job fits in the overall organization. The charts should show the title of each position and, by means of interconnecting lines, who reports to whom and with whom the job incumbent communicates.

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STEPS IN JOB ANALYSIS

A process chart provides a more detailed picture of the work flow. In its simplest form a process chart (like that in Figure 4-2) shows the flow of inputs to and outputs from the job you’re analyzing. (In figure 4-2) the quality control clerk is expected to review components from suppliers, check components going to the plant managers, and give information regarding component’s quality to these manager.)

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STEPS IN JOB ANALYSIS

Finally, the existing job description, if there is one, usually provides a starting point for building the revised job description.

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Figure 4-2Process Chart for Analyzing a Job’s Workflow

In formation InputFrom Plant Manger

Components InputFrom Suppliers

Job Under Study-Quality Control Clerk

Information Output toPlant Manager

Regarding ComponentQuality

Product Quality OutputTo Plant Manager

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STEPS IN JOB ANALYSIS

Step 3: Select representative positions. Why? Because there may be too many similar jobs to analyze. For example, it is usually unnecessary to analyze the jobs of 200 assembly workers when a sample of 10 jobs will do.

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STEPS IN JOB ANALYSIS

Step 4: Actually analyze the job—by collecting data on job activities, required employee behaviors, working conditions, and human traits and abilities needed to perform the job. For this step, use one or more of the job analysis methods explained later in this chapter.

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STEPS IN JOB ANALYSISSTEPS IN JOB ANALYSIS

STEP 5: Verify the job analysis information with the worker performing the job and with his or her immediate supervisor. This will help confirm that the information is factually correct and complete. This review can also help gain the employers acceptance of the job analysis data and conclusions by giving that person a chance to review and modify your description of the job activities.

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STEPS IN JOB ANALYSIS

Step 6: Develop a job description and job specification. There are two tangible products of the job analysis. The job description (to repeat) is a written statement that describes the activities and responsibilities of the job, as well as its important features, such as working conditions and safety hazards. The job specification summarizes the personal qualities, traits, skills, and background required for getting the job done. It may be in a separate document or in the same document as the job description.

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METHODS OF COLLECTING JOB ANALYSIS INFORMATION

The InterviewTypical Questions : Despite their

drawbacks, interviews are widely used. Some typical interview questions include:

What is the job being performed?What are the major duties of your position?

What exactly do you do?What physical locations do you work in?

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METHODS OF COLLECTING JOB ANALYSIS INFORMATION

What are the education, experience, skill, and [where applicable] certification and licensing requirements?

In what activities do you participate?What are the job’s responsibilities and

duties?What are the basic accountabilities or

performance standards that typify your work?

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METHODS OF COLLECTING JOB ANALYSIS INFORMATION

What are your responsibilities? What are the environmental and working conditions involved?

What are the job’s physical demands? The emotional and mental demands?

What are the health and safety conditions?Are you exposed to any hazards or unusual

working conditions?

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INTERVIEW GUIDELINES

Keep several things in mind when conducting a job analysis interview:

First, the job analyst and supervisor should work together to identify the workers who know the job best—and preferably those who’ll be most objective in describing their duties and responsibilities.

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INTERVIEW GUIDELINES

Second, quickly establish rapport with the interviewee. Know the person’s name speak in easily understood language, briefly review the interview’s purpose, and explain how the person was chosen for the interview.

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INTERVIEW GUIDELINES

Third, follow a structured guide or checklist, one that lists questions and provides space for answers. This ensures you’ll identify crucial questions ahead of time and that all interviewers (if there’s more than one) cover all the required questions. (However, also make sure to give the worker some leeway in answering questions, and provide some open-ended questions like, “Was there anything we didn’t cover in our questions?).

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INTERVIEW GUIDELINES

Fourth, when duties are not performed in a regular manner—for instance, when the worker doesn’t perform the same job over and over again many times a day—ask the worker to list his or her duties in order of importance and frequency of occurrence.

Finally, after completing the interview, review and verify the data. Specifically review the information with the worker’s immediate supervisor and with the interviewee.

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QUESTIONNAIRES

Having employees fill out questionnaires to describe their job-related duties and responsibilities is another good way to obtain job analysis information.

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OBSERVATION

Direct observation is especially useful when jobs consist mainly of observable physical activities—assembly-line worker and accounting clerk are examples. On the other hand, observation is usually not appropriate when the job entails a lot of mental activity (lawyer, design engineer).

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OBSERVATION

Nor is it useful if the employee only occasionally engages in important activities, such as a nurse who handles emergencies. And reactivity-the worker’s changing what he or she normally does because you are watching—can also be a problem.

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OBSERVATION

Managers often use direct observation and interviewing together. One approach is to observe the worker on the job during a complete work cycle. (the cycle is the time it takes to complete the job; it could be a minute for an assembly-line worker or an hour, a day, or longer for complex jobs)

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OBSERVATION

Here you take notes of all the job activities. Then, after accumulating as much information as possible, you interview the worker. Ask the person to clarify points not understood and to explain what other activities he or she performs that you didn’t observe. You can also observe and interview simultaneously, asking questions while the worker performs his or her job.

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PARTICIPANT DIARY/LOGS

Another approach is to ask workers to keep a diary/log of what they do during the day. For every activity he or she engages in, the employee records the activity (along with the time) in a log. This can produce a very complete picture of the job, especially when supplemented with subsequent interviews with the worker and the supervisor. The employee, of course, might try to exaggerate some activities and underplay others. However, the detailed, chronological nature of the log tends to mediate against this.

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QUANTITATIVE JOB ANALYSIS TECHNIQUES

Qualitative approaches like interviews and questionnaires are not always suitable. For example, if your aim is to compare jobs for pay purposes, you may want to be able to assign quantitative values to each job. The position analysis questionnaire.

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Position Analysis Questionnaire:The position analysis questionnaire (PAQ) is a very structured job analysis questionnaire. The PAQ contains 194 items each of which (such as “written materials”).

Using multiple Sources of InformationThere are obviously many ways to obtain job analysis information. You can get it from individual workers, groups, or supervisors; or from the observations of job analysts, for instance. You can use interviews, observations, or questionnaires. Some firms use just one basic approach, like having the job analyst do interviews with current job incumbents. Yet one study suggests that using just one source may not be wise.

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WRITING JOB DESCRIPTIONS

A job description is a written statement of what the worker actually does, how he or she does it, and what the job’s working conditions are. You use this information to write a job specification; this lists the knowledge, abilities, and skills required to perform the job satisfactorily.

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WRITING JOB DESCRIPTIONS

There is no standard format for writing a job description. However, most descriptions contain sections that cover:

1. Job identification

2. Job summary

3. Responsibilities and duties

4. Authority of incumbent

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WRITING JOB DESCRIPTIONS

5. Standards of performance

6. Working conditions

7. Job specifications

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JOB IDENTIFICATION

The job title specifies the name of the job, such as supervisor of data processing operations, marketing manager, or inventory control clerk.

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JOB SUMMARY

The job summary should describe the general nature of the job, and includes only major functions or activities.

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RELATIONSHIPS

There is occasionally a relationships statement, which shows jobholder’s relationships with others inside and outside the organization. For a human resource manager, such a statement might look like this:

Reports to: Vice president of employee relations.

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RELATIONSHIPS

Supervises: Human resource clerk, test administrator, labor relations director, and one secretary.

Works with: All department managers and executive management.

Outside the company: Employment agencies, executive recruiting firms, union representatives, state and federal employment offices, and various vendors.

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RESPONSBILITIES AND DUTIES

This section traditionally presents a list of the job’s major responsibilities and duties.

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STANDARDS OF PERFORMANCE AND WORKING CONDITIONS

Some job descriptions contain a standards of performance section. This lists the standards the employee is expected to achieve under each of the job description’s main duties and responsibilities.

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STANDARDS OF PERFORMANCE AND WORKING CONDITIONS

Setting standards is never an easy matter; however, most managers soon learn that just telling subordinates to “do their best” doesn’t provide guidance. One straightforward way of setting standards is to finish the statement, “I will be completely satisfied with your work when… This sentence, if completed for each duty listed in the job description, should result in usable set of performance standards. Here are some examples;

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Duty: Accurately Posting Accounts Payable

1. Post all invoices received within the same working day.

2. Route all invoices to proper department managers for approval no later than the day following receipt.

3. An average of no more than three posting errors per month.

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Duty: Meeting Daily Production Schedule

1. Work group produces no less than 426 units per working day.

2. Next work station rejects no more than an average of 2% of units.

3. Weekly overtime does no exceed an average of 5%.

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WRITING JOB SPECIFICATION

The job specification takes the job description and answers the question, “What human traits and experience are required to do this job well?’ It shows what kind of person to recruit and for what qualities that person should be tested. The job specification may be a section of the job description or a separate document entirely.

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Specifications for Trained Versus Untrained personnel

Writing job specifications for trained employees is relatively straightforward. For example suppose you want to fill a position for a bookkeeper (or counselor or programmer). In cases like these, your job specifications might focus mostly on traits like length of previous job performance. Thus, it’s usually not too difficult to determine the human requirements for placing already trained people on a job.

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Specifications for Trained Versus Untrained personnel

The problems are more complex when you’re filling jobs with untrained people (with the intention of training them on the job). Here you must specify qualities such as physical traits, personality, interests, or sensory skills that imply some potential for performing or for being trained to do the job.

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Specifications Based on Judgment

Most job specifications come from the educated guesses of people like supervisors and human resource managers. The basic procedure here is to ask, “What does it take in terms of education, intelligence, training, and the like to do this job well?”

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Specifications Based on Judgment

The job specifications for candidates, such as the customer service operator shown here, should clearly indicate which skills, like computer literacy, are job requirements.

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Specifications Based on statistical Analysis

Basing job specifications on statistical analysis is the more defensible approach, but it’s also more difficult. The aim here is to determine statistically the relationships between:

1. Some predictor or human trait, such as height, intelligence, or finger

dexterity;

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Specifications Based on statistical Analysis

2. Some indicator or criterion of job effectiveness, such as performance as rated by

the supervisor. The procedure has five steps.

(1) Analyze the job and decide how to measure job performance.

(2) Select personal traits like finger dexterity that you believe should predict successful performance.

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Specifications Based on statistical Analysis

(3) Test Candidates for these traits.

(4) Measure these candidates’ subsequent job performance, and

(5) Statistically analyze the relationships between the human trait (finger dexterity) and job performance. You objective is to determine whether the former predicts the latter.

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Job enlargementAssigning workers additional same-level activities, thus increasing the number of activities they perform.

Job rotationSystematically moving workers from one job to another to enhance work team performance and/or to broaden his or her experience and identify strong and weak points to prepare the person for an enhanced role with the company.

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Job enrichment

Redesigning jobs in a way that increases the opportunities for the worker to experience feelings of responsibility, achievement, growth, and recognition.

De-jobbing

Broadening the responsibilities of the company’s jobs, and encouraging employees not to limit themselves to what’s on their job descriptions.

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Boundary-less organization

Organization marked by the widespread use of teams and similar structural mechanisms that reduce and make more permeable the boundaries that typically separate departments.

Re-engineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.

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CompetenciesDemonstrable characteristics of a person that enable performance of a job.

Competency based job analysisDescribing a job in terms of the measurable, observable, behavioral competencies an employee must exhibit to do a job well.

Performance managementBasing your employees, training, appraisal, and rewards on fostering and rewarding the skills and competences he or she needs to achieve his or her goals.

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CHAPTER # 5

PERSONNEL PLANNING AND RECRUITING

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In the previous chapter, we discussed job analysis and the methods managers use to create job descriptions and job specifications. The purpose of this chapter is to improve your effectiveness in recruiting candidates. The topics we discuss include personnel planning and forecasting, recruiting job candidates, and developing and using application forms.

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Personnel planning is the first step in the recruiting and selection process. We can conveniently view this process as series of actions.

1. Decide what positions you’ll have to fill through personnel planning and forecasting.

2. Build a pool of candidates for these jobs by recruiting internal or external candidates.

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3. Have candidates complete application forms and perhaps undergo an initial screening interview.

4. Use selection techniques like tests, background investigations, and physical exams to identify viable candidates.

5. Decide who to make an offer to, by having the supervisor and perhaps others on the team interview the candidates.

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PLANNING AND FORECASTING

Employment or personnel planning is the process of deciding what positions the firm will have to fill, and how to fill them. Personnel planning covers all future positions from clerk to CEO. However, most firms call the process of deciding how to fill the company’s most important executive jobs succession planning.

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PLANNING AND FORECASTING

Employment planning should be an integral part of a firm’s strategic and HR planning processes.

One big question is whether to fill projected openings from within or from outside the firm. In other words, should you plan to fill positions with current employees or by recruiting from outside?

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PLANNING AND FORECASTING

Each option produces its own set of HR plans. Current employees may require training, development, and coaching before they’re ready to fill new jobs. Going outside requires a decision about what recruiting sources to use, among other things.

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PLANNING AND FORECASTING

Like all good plans, management builds employment plans on basic assumptions about the future. Forecasting generates these assumptions. It you’re planning for employment requirements, you’ll usually need to forecast three things; personnel needs, the supply of inside candidates, and the supply of outside candidates. We’ll start with personnel needs.

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Forecasting Personnel Needs

The most common personnel planning approaches involve the use of simple techniques like ratio analysis of trend analysis to estimate staffing needs based on sales projections and historical sales to personnel relationships.

The usual process is to forecast revenues first, then estimate the size of the staff required to achieve this sales volume. Here, HR managers use several techniques.

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Forecasting Personnel Needs

1.Trend analysisStudy of a firm’s past employment needs over a period of yours to predict future needs.

2.Ratio AnalysisA forecasting technique for determining future staff needs by using ratios between, for example, employees needed.

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Forecasting Personnel Needs

3.Scatter plotA graphical method used to help identify the relationship between two variables.

4. Computerized forecastDetermination of future staff needs by projecting sales, volume of production, and personnel required to maintain this volume of output, using software packages.

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Forecasting the Supply of Inside Candidates

Qualifications inventories manual or computerized records listing employees’ education, career and development interests, languages, special skills, and so on, to be used in selecting inside candidates for promotion.

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Personnel replacement charts

Company records showing present performance and promotability of inside candidates for the most important positions.

Computerized Information SystemsPosition replacement card

A card prepared for each position in a company to show possible replacement candidates and their qualifications.

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Forecasting the Supply of Outside Cad

If their won’t be enough inside candidates to fill the anticipated openings (or you want to go outside for another reason), you need to forecast the availability of outside candidates. For example, you may want to consider general economic conditions and the expected unemployment rate. Usually, the lower the rate of unemployment, the more difficult it will be recruit personnel.

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EFFECTIVE RECRUITING

Assuming the company authorizes you to fill a position, the next step is to develop an applicant pool. It’s hard to overemphasize the important of effective recruiting. The more applicants you have, the more selective you can be in your hiring. If only two candidates apply for two openings, you may have little choice but to hire them. But if 10 or 20 applicants appear, you can use techniques like interviews and tests to screen out all but the best.

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Organizing the Recruitment Function

There are advantages to centralizing the recruitment function.

First, centralizing makes it easier to apply the company’s strategic priorities companywide.

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Organizing the Recruitment Function

Recruiting centrally has other advantages. It reduces duplication (having several recruitment

offices instead of one), makes it easier to spread the cost of new technologies (such as Internet-based recruitment and prescreening solution) over more departments, builds a team of recruitment experts, and makes it easier to identify why recruitment efforts are going well (or badly).

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Organizing the Recruitment Function

It also produces synergies. For instance, “instead of looking for one financial analyst, you can recruit for five positions from the same candidate pool” On the other hand, if the firm’s divisions are autonomous, or their recruitment needs are varied, it may be more sensible to decentralize the recruitment function.

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Line and Staff Cooperation

The HR manager who recruits for a vacant job is seldom the one responsible for supervising its performance. He or she must therefore know exactly what the job entails, and this means speaking with the supervisor involved.

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Measuring Recruiting Effectiveness

Even small employers may spend tens of thousands of rupees each year recruiting applicants, but few firms assess the effectiveness of their recruitment efforts.

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A High-Performance ExampleThe Recruiting Yield pyramid

The historical arithmetic relationships between recruitment leads and invitees. Invitees and interviews, interviews and offers made, and offers made and offers accepted.

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INTERNAL SOURCES OF CANDIDATES

Recruiting may bring to mind employment agencies and classified ads, but current employees are often the best source of candidates.

Filling open positions with inside candidates has many benefits. First, there’s really no substitute for knowing a candidate’ strengths and weaknesses.

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INTERNAL SOURCES OF CANDIDATES

It is often therefore safer to promote employees from within, since you’re likely to have a more accurate view of the person’s skills. Inside candidates may also be more committed to the company. Morale may rise if employees see promotions as rewards for loyalty and competence. Inside candidates may also require less orientation and training than outsiders.

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Finding Internal Candidates

To be effective, promotion from within requires using job posting, personnel records, and skills banks. Job posting means publicizing the open job to employees (often by literally posting it on bulletin boards or intranets) and listing the job’s attributes, like qualifications, supervisor, work schedule, and pay rate.

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Rehiring

Rehiring former employees has its pros and cons. On the plus side, former employees are known quantities (more or less), and are already familiar with the company’s culture, style, and ways of doing things. On the other hand, employees who were let go may return with less-than-positive attitudes. And hiring former employees who left for greener pastures back into better positions may signal your current employees that the best way to get ahead is to leave the firm.

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Succession Planning

Forecasting the availability of inside executive candidates is particularly important in succession planning—the ongoing process of systematically identifying, assessing, and developing organizational leadership to enhance performance.

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Succession Planning

Succession planning entails three steps: identifying and analyzing key jobs, creating and assessing candidates, and selecting those who will fill the key positions. First, based on the firm’s strategic goals, top management and HR identify what the company’s future key position needs will be, and formulate job descriptions and specifications for them.

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OUTSIDE SOURCES OF CANDIDATES

Advertising The MediaConstructing the AdEmployment Advertising’s EffectivenessEmployment AgenciesPublic and Nonprofit Agencies

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Private AgenciesTemp Agencies and Alternative StaffingBenefits and CostsAlternative StaffingOffshoring/Outsourcing white-Collar and

Other JobsExecutive Recruiters

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On demand Recruiting Services (ODRS)

A service that provides short-term specialized recruiting to support specific projects without the expense of retaining traditional search firms.

On-Site VisitsReferrals and Walk-InsRecruiting via the Internet

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Applicant Tracking Using an E-Recruiting applications Tracking ASP Designing Effective Internet Recruiting Programs.

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RECRUITING A MORE DIVERSE WORKFORCE

Older WorkersRecruiting Minorities and WomenWelfare-to-WorkThe Disabled

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DEVELOPING AND USING APPLICATION FORMS

Purpose of application FormsApplication Form

The form that provides information on education, prior work record, and skills.

Using Application Forms to Predict Job Performance

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CHAPTER # 6

EMPLOYEE TESTING AND SELECTION

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INTRODUCTION

The previous chapter focused on the methods managers use to build an applicant pool. The purpose of this chapter, Employee Testing and Selection, is to show you how to use various tools and techniques to select the best candidates for the job. The main topics we’ll cover include the selection process, basic testing techniques, background and reference checks, ethical and legal questions in testing, types of tests, and work samples and simulations.

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In the following chapter, Interviewing Candidates, we turn to the techniques you can use to improve your skills with what is probably the most widely used screening tool, the selection interview.

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WHY CAREFUL SELECTION IS IMPORTANT

With a pool of applicants, the next step is to select the best candidates for the job.

Selecting the right employees is important for three main reasons. First, your own performance always depends in part on your subordinates. Employees with the right skills and attributes will do a better job for you and the company.

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Employees without these skills or who are abrasive or obstructionist won’t perform effectively, and your own performance and the firm’s will suffer. The time to screen out undesirables is before they are in the door, not after.

Second, it is important because it’s costly to recruit and hire employees. The total cost of hiring a manager could easily be 10 times as high once you add search fees, interviewing time, reference checking, and travel and moving expenses.

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Third, it’s important because of the legal implications of incompetent hiring.

Lawyers call hiring workers without proper safeguards, negligent hiring.

Employers protect against negligent hiring claims by:

Carefully scrutinizing all information supplied by the applicant on his or her employment application. For example, look for unexplained gaps in employment.

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Getting the applicant’s written authorization for reference checks, and carefully checking references.

Saving all records and information you obtain about the applicant.

Rejecting applicants who make false statements of material facts or who have conviction records for offenses directly related and important to the job in question.

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Rejecting applicants who make false statements of material facts or who have conviction records for offenses directly related and important to the job in question.

Keeping in mind the need to balance the applicant’s privacy rights with others’ “ned to know”, especially when you discover damaging information.

Taking immediate disciplinary action if problems arise.

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BASIC TESTING CONCEPTS

Effective selection is therefore important and depends, to a large degree, on the basic testing concepts of validity and reliability.

ReliabilityThe consistency of scores obtained by the same person when retested with the identical tests or with alternate forms of the same test.

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Validity

Reliability, while indispensable, only tells you that the test is measuring something consistently. It does not prove that you are measuring what you intend to measure.

1. the accuracy with which a test, interview, and so on measures what it purports to measure or fulfills the function it was designed to fill.

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2. Criterion Validity

A type of validity based on showing that scores on the test (predictors) are related to job performance (criterion).

3. Content Validity

A test that is content valid is one that contains a fair sample of the tasks and skills actually needed for the job in question.

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How to Validate a Test

What makes a test like the Graduate Record Examination useful for college admissions directors? What makes a mechanical comprehension test useful for a manager trying to hire an engineer.

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The answer to both questions is usually that people’s scores on these test predict how they perform. Thus, other things being equal, students who score high on the graduate admissions tests also do better in graduate school.

The validation process consists of five steps:

• Step 1: Analyze the Job

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Step 2: Choose the testsStep 3: Administer the TestStep 4: relate Your Test Scores and

CriteriaStep 5: Cross-Validate and Revalidate

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Using tests at WorkComputer-Interactive Testing

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TYPES OF TESTS

We can conveniently classify tests according to whether they measure cognitive (mental) abilities, motor and physical abilities, personality, personality and interests, or achievement.

Tests of Cognitive Abilities

Cognitive tests include tests of general reasoning ability (intelligence) and tests of specific mental abilities like memory and inductive reasoning.

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Intelligence Testintelligence (IQ) tests are tests of general intellectual abilities. They measure not a single trait but rather a range of abilities, including memory, vocabulary, verbal fluency, and numerical ability.

For A Child I.Q = Intelligence Quotient =

Mental Age XChronological Age

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For An Adult

IQ is the extent to which the person is above or below the Average.

Specific Cognitive Abilities

There are also measures of specific mental abilities, such as inductive and deductive reasoning, verbal comprehension, memory, and numerical ability.

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Psychologists often call such tests aptitude tests, since they purport to measure aptitude for the job in question.

Tests of Motor and physical Abilities You might also want to measure motor abilities,

such as finger, dexterity, manual dexterity, and reaction time.

Tests of physical abilities may also be required. These include static strength (such as lifting weights), dynamic strength (like pull-ups), body coordination (as in jumping rope), and stamina. Lifeguards, for example, must show they can swim a course before they’re hired.

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EffectivenessThe “Big Five” industrial psychologists

often emphasize the “big five” personality dimensions as they apply to personnel testing extraversion, emotional stability neuroticism, agreeableness, conscientiousness, and openness to experience.

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Neuroticism represents a tendency to exhibit poor emotional adjustment and experience negative effects, such as anxiety, insecurity, and hostility. Extraversion represents a tendency to be sociable, assertive, active, and to experience positive effects, such as energy and zeal. Openness is the disposition to be imaginative, non-conforming, unconventional, and autonomous. Agreeableness is the tendency to be trusting, compliant, caring, and gentle. Conscientiousness is comprised of two related facets: achievement and dependability.

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Interest Inventoriesa personal development and selection device that compares the person’s current interests with those of others now in various occupations so as to determine the preferred occupation for the individual.

Achievement Tests Achievements tests measure what a person has

learned. Most of the tests you take in school are achievement tests. They measure your “job knowledge” in areas like economics, marketing, or personnel. Achievement tests are also popular at work.

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Web-Based testingWORK SAMPLES AND

SIMULATIONS

Work samples. Actual job tasks used in testing applicants’ performance.

Work Sampling for Employee Selection

Work sampling technique

A testing method based on measuring performance on actual basic job tasks.

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Management Assessment Centers

A simulation in which management candidates are asked to perform realistic tasks in hypothetical situations and are scored on their performance. It usually also involves testing and the use of management games.

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A management assessment center is a two to three day simulation in which 10 to 12 candidates perform realistic management tasks (like making presentations) under the observation of experts who appraise each candidate’s leadership potential. The center itself may be a plain conference room, but it is often a special room with a one-way mirror to facilitate observation. Typical simulated exercises include:

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The in-basketLeaderless group discussionManagement games Individual presentationsObjective testsThe interview

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Video-Based Situational Testing

Video-based rests also situational tests (which means they present examinees with situations representati8ve of the job. Other situational tests include work sampling,

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The Miniature Job Training and Evaluation Approach

The idea here is to train candidates to perform a sample of the job’s tasks, and then to evaluate their performance. The approach assumes that a person who demonstrates that he or she can learn and perform the sample of tasks will be able to learn and perform the job itself.

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BACKGROUND INVESTIGATIONS AND

OTHER SELECTION METHODS

Background Investigations and Reference Checks Using Pre-employment Information Services The Polygraph and Honesty Testing Graphology Physical Examination Substance Abuse Screening

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CHAPTER # 7

INTERVIEWING CANDIDATES

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INTRODUCTION

The previous chapter, Employee Testing and Selection, focused on important methods managers use to select employees. The purpose of the current chapter, Interviewing Candidates, is to improve your effectiveness at using what is perhaps the most important screening tool, the selection interview.

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The main topics we’ll cover include types of interviews, the factors that can undermine an interview’s usefulness, and designing and conducting an effective interview. In the following chapter, Training and Developing Employees, we’ll turn to the techniques you can use to make sure the new employees you hire have the knowledge and skills they need to perform their jobs.

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BASIC FEATURES OF INTERVIEWS

An interview is a procedure designed to obtain information from a person through oral responses to oral inquiries; a selection interview, which we'll focus on in this chapter, is a selection procedure designed to predict future job performance on the basic of applications’ oral responses inquiries.

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Types of Interviews

1. Unstructured or Nondirective Interview

An unstructured conversational-style interview in which the interviewer pursues points of interest as they come up in response to questions.

2. Structured or Directive Interview

An interview following a set of questions.

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3.Situational Interview

A series of job-related questions that focus on how the candidate would behave in a given situation.

4.Behavioral Interviews

A series of job-related questions that focus on how the candidate reacted to actual situations in the past.

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5.Job Related Interview

A series of job-related questions that focus on relevant past job-related behaviors.

Administering the InterviewInterviews can also be administered in

various ways one on one or by a panel of interviewers; sequentially or all at once; and computerized or personally.

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1.Unstructured Sequential interview

An interview in which each interviewer forms an independent opinion after asking different questions.

2.Structured sequential Interview

An interview in which the applicant is interviewed sequentially by several persons; each rates the applicant on a standard form.

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3.Panel Interview

An interview in which a group of interviewers questions the applicant.

4.Mass Interview

A panel interviews several candidates simultaneously

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Computerized InterviewsA computerized selection interview is one

in which a job candidate’s oral and/or computerized replies are obtained in response to computerized oral, visual, or written questions and / or situations.

Are Interviews Useful?

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WHAT CAN UNDERMINE AN INTERVIEW’S USEFULNESS?

Hiring the right people is a crucial management job, and you can’t do that job well if you don’t know how to interview. Several Things can undermine an interview’s usefulness.

First Impressions Misunderstanding the Job

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Candidate-Order 9Contrast0 Error and Pressure to Hire

Candidate-order Error An error of judgment on the part of the

interviewer due to interviewing one or more very good or very bad candidates just before the interview in question.

Nonverbal Behavior and Impression Management

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Effect of Personal Characteristics: Attractiveness, Gender, RaceInterviewer Behavior

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DESIGNING AND CONDUCTING THE EFFECTIVE INTERVIEW

There are two basic ways to avoid these interview problems. One is obvious: Keep them in mind and avoid them (don’t play psychologist or make snap judgments, for instance). The second is not quite so obvious: Be careful how you design and structure the interview. Let’s look next at structuring the interview, and at some guidelines for an effective interview.

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The Structured Situational Interview

Step 1: Job Analysis

Step 2: Rate the Job’s main Duties

Step 3: Create Interview Questions

Step 4: Create benchmark Answers

Step 5: appoint the Interview Panel and Conduct Interviews

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How to Conduct a More Effective Interview

You may not have the time or inclination to create structured situational interviews. However, there is still a lot you can do to make your interviews more effective. Suggestions include:

1. Base questions on actual job duties.2. Use job knowledge, situational, or

behaviorally oriented questions and objective criteria to evaluate the interviewee’s responses.

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3. Train interviewers.

4. Use the same questions with all candidates.

5. Use descriptive rating scales (excellent, fair, poor) to rate answers.

6. Use multiple interviewers or panel interviews.

7. If possible, use a standardized interview form.

8. Control the interview.

9. Take brief, unobtrusive notes during the interview.

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Prepare for the Interview One key to a successful interview is often

the interviewer’s attitude. Greeting the person in a welcoming manner and putting him or her at ease can go a long way toward making the interview pleasant and productive for both parties.

Establish Rapport Ask questions Close the Interview Review the Interview

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PART - 3

CHAPTER # 8

Training and Developing Employees

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INTRODUCTION

The previous chapter focused on the methods managers use to interview and select employees. Once employees are hired, the employer must train them. The purpose of this chapter is to increase your effectiveness as trainer. The main topics we’ll cover include orienting employees, the training process, training methods, training for special purposes, managerial development and training techniques, and evaluating the training effort.

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ORIENTING EMPLOYEES

Employee Orientation provi8des new employees with the basic background information required to perform their jobs satisfactorily, such as information about company rules. Programs may range from brief, informal introductions to lengthy, formal courses.

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THE TRAINING PROCESS

Training The process of teaching new employees the basic skills they need to perform their jobs.

The Strategic Context of Training Training used to focus mostly on teaching technical skills, such as training assemblers to solder wires or teachers ot write lesson plans.

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Performance ManagementThe process employers use to make sure employees are working toward organizational goals.

The Five-Step Training and Development Process

Training programs consist of five steps. The first, or needs analysis step, identifies the specific job performance skills needed, assesses the prospective trainees kills, and develops specific, measurable knowledge and performance objectives based on any deficiencies.

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In the second step, instructional design, you decide on, compile , and produce the training program content, including workbooks, exercises, and activities; here, you’ll probably use techniques like those discussed in this chapter, such as on-the-job training and computer-assisted learning. There may be a third, validation step, in which the bugs are worked out of the training program by presenting it to a small representative audience.

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the fourth step is to implement the program, by actually training the targeted employee group. Fifth is an evaluation step, in which management assesses the program’s successes or failures.

Training, Learning, and MotivationMake the Learning Meaningful. It easier for

trainees to understand and remember material that is meaningful. Therefore:

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1. At the start of training, provide a bird’s-eye view of the material to be presented. Knowing the overall picture faciltates learning.

2. Use a variety of familiar examples.3. Organize the information so you can

present it logically, and in meaningful units.

4. Use terms and concepts that are already familiar to trainees.

5. Use as many visual aids as possible.

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Make Skills Transfer Easy: Make it easy to transfer new skills and behaviors from the training site to the job site:

1. Maximize the similarity between the training situation and the work situation.

2. Provide adequate practice.3. Label or identify each feature of the machine

and / or step in the process.4. Direct the trainees’ attention to important

aspects of the job. For example, if you’re training customer service representatives in how to handle incoming calls, first explain the different types of calls they will encounter and how to recognize such calls.

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5. Provide “heads-up” preparatory information. For example, trainees learning to become first-line supervisors often face stressful conditions, high workload, and difficult subordinates back on the job. Studies suggest you can reduce the negative impact of such events by letting trainees know they might happen.

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Motivate the Learner

Here are some other ways to motivate the trainee:

1. People learn best by doing. Try to provide as much realistic practice as possible.

2. Trainees learn best when the trainers immediately reinforce correct responses, perhaps with a quick “well done.”

3. Trainees learn best at their own pace. If possible, let them pace themselves.

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4.Create a perceived training need in the trainees, minds. In one study, pilots who had experienced pre-training, accident-related events subsequently learned more from an accident-reduction training program than did those experiencing fewer such events. You could illustrate the need for the training by showing videos of simulated accidents. Similarly, before the training, managers need to sit down and talk with the trainee about why they are enrolled in the class, what they are expected to learn and how they can use it on the job.

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5.The schedule is important too: The learning curve goes down late in the day, so that ‘full day training is not as effective as half the day or three-fourths of the day.

Analyzing Training NeedsHow you analyze training needs depends on

whether you’re training new or current employee.

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Task Analysis: Assessing New Employee’s Training needs: Task analysis. A detailed study of a job to identify the specific skills required.

Performance Analysis: Assessing Current Employees’ Training Needs.

Performance Analysis. Verifying That there is a performance deficiency

and determing whether that deficiency should be corrected through training or through some other means 9such as transferring the employee).

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TRAINING METHODS

On-the-Job Training

On-the-job training. Training a person to learn a job while working on it.

Step 1: Prepare the Learner

1. Put the learner at ease—relieve the tension.

2. Explain why he or she is being taught.

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3. Create interest, encourage questions, find out what the learner already

knows about this or other jobs.

4. Explain the whole job and relate it to some job the worker already know.

5. Place the learner as close to the normal working position as possible.

6. Familiarize the worker with equipment, materials, tools, and trade terms.

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Step 2:Present the Operation

1. Explain quantity and quality requirements.

2. Go through the job at the normal work pace.

3. Go through the job at a slow pace several times, explaining each step. Between operations, explain the difficult parts, or those in which errors are likely to be made

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4. Again go through the job at a slow pace several times; explain the key points.

5. Have the learner explain the steps as you go through the job at a slow pace.

Step 3: Do a Tryout

1. Have the learner go through the job several times, slowly, explaining each step to you. Correct mistakes and, if necessary, do some of the complicated steps the first few times.

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2. Run the job at the normal pace.

3. have the learner do the job, gradually building up skill and speed.

4. As soon as the learner demonstrates ability to do the job, let the work

begin, but don’t abandon him or her.

5. Step 4: Follow Up

1. Designature to whom the learner should go for help.

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2. Gradually decrease supervision, checking work from time to time against

quality and quantity standards.

3. Correct faulty work patterns before they become a habit. Show why the method is superior.

4. Compliment good work; encourage the worker until he or she is able to

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Apprenticeship training

A structured process by which people become skilled workers through a combination of classroom instruction and on-the-job training.

Informal Learning

Employers should not underestimate the importance or value of informal training.

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Job Instruction Training (JIT)

Listing each job’s basic tasks, along with key points, in order to provide step-by-step training for employees.

Lectures Here are some useful guidelines for presenting a

lecture; Give your listeners signals to help them follow

your ideas. For instance, if you have a list of items, start by saying something like, “There are four reasons why the sales reports are necessary.. The first … second …”

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Don’t start out on the wrong foot. For instance, don’t open with an irrelevant joke or story or by saying something like, “I really don’t know why I was asked to speak here today.”

Keep your conclusions short. Just summarize your main point or points in one or two succinct sentences.

Be alert to your audience. Watch body language for negative signals like fidgeting and crossed arms.

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Maintain eye contact with the trainees. At least book at each section of the audience during your presentation.

Make sure everyone in the room can hear. Use a mike if necessary. Repeat questions that you get from trainees before you answer.

Control your hands. Get in the habit of leaving them hanging naturally at your sides rather than letting them drift.

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Talk from notes rather than from a script. Write out clear, legible notes on large index cards or on power point slides, and use these as an outline, rather than memorizing your presentation.

Break a long talk into a series of five-minute talks. Speakers often give a short overview introduction, and then spend the rest of a one-hour presentation going point by point through their material.

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Unfortunately, most people quickly lose interest in your list. Experts suggest breaking the long talk into a series of five-minute talks, each with its own introduction. Each introduction highlights what you’ll discuss, why it’s important to the audience, and your credibility—why they should listen to you.

Practice. If possible, rehearse under conditions similar to those under which you will actually give your presentation.

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Programmed Learning

A systematic method for teaching job skills involving presenting questions or facts, allowing the person to respond, and giving the learner immediate feedback on the accuracy of his or her answers.

Literacy Training Techniques

Functional illiteracy—the inability to handle basic reading, writing, and arithmetic is a serious problem at work.

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Audiovisual-Based Training

Audiovisual-based training techniques like films, Power Points, videoconference, audiotapes, and videotapes can be very effective and are widely used. Audiovisuals are more expensive than conventional lectures but offer some advantages. Of course, they usually tend to be more interesting. In addition, consider using them in the following situations:

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1. When there is a need to illustrate how to follow a certain sequence over time, such as when teaching fax machine repair. The stop-action, instant reply, and fast or slow-motion capabilities of audiovisuals can be useful here.

2. When there is a need to expose trainees to events not easily demonstrable in live lectures, such as a visual tour of a factory or open-heat surgery.

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3. When you need organization wide training and it is too costly to move the trainers from place to place.

Simulated TrainingTraining employees on special off-the-job equipment, as in airplane pilot training so training costs and hazards can be reduced.

Computer-Based Training

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Electronic Performance Support Systems (EPSS)

Job AidIs a set of instructions, diagrams, or similar methods available at the job site to guide the worker.

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Electronic performance

Support systems (EPSDS)Sets of computerized tools and displays that automate training, documentation, and phone support, integrate this automation into applications, and provide support that’s faster; cheaper, and more effecti8ve than traditional methods.

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Distance and Internet-Based Training Tele-training Video-conferencing Training Training via the Internet What is Management Development? Management Development

Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills

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Succession Planning

A process through which senior level openings are planned for and eventually filled.

Managerial On-the-Job Training

On-the-job training is not just for non-managers. Managerial on-the-job training methods include job rotation, the coaching/understudy approach, and action learning.

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Job Rotation

A management training technique that involves moving a trainee from departments to department to broaden his or her experience and identify strong and weak points.

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Off-the-Job Management Training and Development Techniques

Case Study methodA development method in which the manager is presented with a written description of an organizational problem to diagnose and solve.

Management GameA development technique in which teams of managers compete by making computerized decisions regarding realistic but simulated situations.

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Outside Seminars

Many companies and universities offer Web-based and traditional management development seminars and conferences.

University-Related Programs

Many universities provide executive education and continuing education programs in leadership, supervision, and the like. These can range from one to four day programs to executive development programs lasting one four months. An increasing number of these are offered online.

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Role Play

A training technique in which trainees act out parts in a realistic management situation.

Behavior Modeling

a training technique in which trainees are first shown good management techniques in a film, are asked to play roles in a simulated situation, and are then given feedback and praise by their supervisor.

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1. Modeling

2. Role Playing

3. Social reinforcement

4. Transfer of training Corporate Universities and in-House

Development centers

Many firms, particularly larger ones, establish in-house development centers.

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In-house development centers needn’t produce all (or most) of their own training and development programs, although some do. In fact, employers are increasingly collaborating with academic institutions, training and development program providers, and Web-based educational portals to create packages of programs and materials appropriate to their employees needs.

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In-house development center. A company-based method for exposing prospective managers to realistic exercises to develop improved management skills.

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MANAGING ORGANIZATIONAL CHANGE AND DEVELOPMENT

Helping firms manage change is a major issue for human resource managers. For example, professor Edward Lawler conducted an extensive survey of HR practices and concluded that as more employers face the need to adapt to rapid competitive change, “focusing on a strategy, organizational development, and organizational change is a high payoff activity for the HR organization.

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Outsourced learning.The outsourcing of companies learning functions to major consulting firms.

Overcoming Resistance to change:Lewin’s Change Process

1.Unfreezing. Unfreezing means reducing the forces that are striving g to maintain the status quo, usually by presenting a provocative problem or event to get people to recognize the need for change and to search for new solutions.

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2. Moving. Moving means developing new behaviors, values and attitudes, some times through structural changes and sometimes through the sorts of HR-based organizational change and development techniques explained later in this chapter. The aim is to alter people’s behavior.

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3. Refreezing. Lewin assumed that organizations tend to revert to their former ways of doing things unless you reinforce the changes. How do you do this? By “refreezing” the organization into its new equilibrium. Specifically, Lewin advocated instituting new systems and procedures (such as new compensation plans and appraisal processes) to support and maintain the changes.

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How to lead the Change: A 10-Step Change Process

1. Establish a sense of urgency.

2. Mobilize commitment through joint diagnosis of problems.

3. Create a guiding coalition.

4. Develop a Shared vision.

5. Communicate the vision.

6. Keep it simple.

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• Keep it simple.• Lead by example

6. Help employees to make the change.7. Generate short-term wins.8. Consolidate gains and produce more

change.9. Anchor the new ways of doing things in

the company’s culture.10. Monitor progress and adjust the vision as

required.

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Using Organizational Development

A special approach to organizational change in which employees themselves formulate and implement the change that’s required.

Human Process applicationsTechno structural InterventionsHuman Resource Management

Applications

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Strategic OD Applications

Strategic interventions are organization-wide OD programs aimed at achieving a fit among a firm’s strategy, structure, culture, and external environment, Integrated strategic management is one example of how to use OD to create or change a strategy. It consists of four steps:

1.Managers and employees analyze current strategy and organizational design.

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2. Choose a desired strategy and organizational from its current strategy and organizational design to the desired.

3. Design a strategic change plan--:an action plan for moving the organization from its current strategy and organizational design to the desired future strategy and design.]

4. The team oversees implementing the strategic change plan, and reviewing the results to ensure that they are proceeding as planned.

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EVALUATING THE TRAINING EFFORT

Designing the Study

Controlled Experimentation

Formal methods for testing the effectivene3ss of a training program, preferably with before-and-after tests and a control group.

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Training Effects to Measure

You can measure four basic categories of training outcomes:

1. Reaction.

2. Learning

3. Behavior

4. Results

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CHAPTER # 9

PERFORMANCE MANAGEMENT AND

APPRAISAL

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BASIC CONCEPTS IN PERFORMANCE APPRAISAL AND PERFORMANCE MANAGEMENT

Performance Appraisal

Evaluating an employee’s current and/or past performance relative to his or her performance standards.

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Performance Management

A process that consolidates goal setting, performance appraisal, and development into a single, common system, the aim of which is to ensure that the employee’s performance is supporting the company’s strategic aims.

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Defining the Employee’s Goals and Work efforts

Assign Specific GoalsAssign Measurable GoalsAssign Challenging but Doable GoalsEncourage Participation

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AN INTRODUCTION TO APPRAISING PERFORMANCE

What Appraise Performance? First, appraisals play, or should play, an integral

role in the employer’s performance management process;

Second, the appraisal lets the boss and subordinate develop a plan for correcting any deficiencies the appraisal might have unearthed, and to reinforce the things the subordinate does correctly.

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Third, appraisals should serve a useful career planning purpose by providing the opportunity to review the employee’s career plans in light of his or her exhibited strengths and weaknesses.

And, last but not least, the appraisal almost always effects the employer’s salary raise and promotional decisions.

Realistic AppraisalsThe Supervisor’s Role

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Steps in Appraising PerformanceThe performance appraisal process itself

contains three steps: define the job, appraise performance, and provide feedback. Defining the job means making sure that you and your subordinate agree on his or her duties and job standards. Appraising performance means comparing your subordinate’s actual performance to the standards that have been set; this usually involves some type of rating form. Third, performance appraisal usually requires one or more feedback sessions.

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Graphic Rating Scale MethodGraphic Rating Scale

A scale that lists number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her level of performance foe each trait.

Alternation Ranking Method Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked.

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Paired Comparison Method

Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair.

Forced Distribution Method

For example, you may decide to distribute employees as follows:

15% high performers 20% low-average performer

20% high-average performers 15% low performers

30% average performers 15% low performers

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Critical Incident MethodKeeping a record of uncommonly good or undesirable examples of an employee’s work-related behavior and reviewing it with the employee at predetermined times.

Narrative Formsbehaviorally anchored rating scale (BARS) An appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance.

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1. Generate critical incidents.2. Develop performance dimensions.3. Reallocate incidents.4. Scale the incidents5. Develop a final instrument. RESEARCH INSIGHT

Three researchers developed a BARDS for grocery checkout clerks. They collected critical incidents, and then clustered these into eight performance dimensions.

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Knowing and JudgmentConscientiousnessSkill in Human RelationsSkills in Operation of RegisterSkill in Bagging Organizational Ability of Check-stand

WorkSkill in Monetary TransactionsObservational ability

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Advantages

While more time-consuming then other appraisal tools, BARDS seems to have some advantages.

1.A more accurate gauge. People who know and do the job and its requirements better than anyone develop the BARDS. This should produce a good gauge of job performance

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2. Clearer standards. The critical incidents along scale make clear what to look for in terms of superior performance, average performance, and so forth.

3. Feedback. The critical incidents make it easier to explain the ratings to appraisees.

4. Independent dimensions. Systematically clustering the incident into five or six performance dimensions (such as “salesmanship skills”) should help to make the performance dimensions more independent of one another. For example, a rater should be less likely to rate an employee high on all dimensions simply because he or she was rated high in “salesmanship skills.”

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5. Consistency. BARS based evaluations also seem to be relatively consistent and reliable, in that different raters’ appraisals of the same person tend to be similar.

Management by Objectives (MBO)

Involves setting specific measurable goals with each employee and then periodically reviewing the progress made.

MBO generally refers to a comprehensive and formal organization-wide goal setting and appraisal program consisting of six steps:

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1. Set the organization’s goals. Establish, based on the firm’s strategic plan, an organization-wide plan for next year and set specific company goals.

2. Set departmental goals. Next, department heads take these company goals (like “boost 2004 profits by 20%) and, with their superiors, jointly set goals for their departments.

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3. Discuss departmental goals. Department heads discuss the department’s goals with all subordinates, often at a department-wide meeting. They ask employees to set their own preliminary individual goals; in other words, how can each employee contribute to the department’s goals?

4. Define expected results (set individual goals). Department heads and their subordinates set short-term individual performance targets.

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5. Performance reviews. Department heads compare each employee’s actual and targeted performance.

6. Provide feedback. Department heads and employees discuss and evaluate the latters progress.

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Computerized and Web-Based Performance Appraisal

Several relative inexpensive performance appraisal software programs are on the market. These generally enable managers to keep notes on subordinates during the year, and then to electronically rate employees on a series of performance traits. The program then generate written text to support each part of the appraisal.

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Electronic Performance Monitoring (EPM)Having supervisors electronically monitor the amount of computerized data an employee is processing per day and thereby his or her performance.

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APPRAISING PERFORMANCE PROBLEMS AND SOLUTIONS

Potential Rating Scale Appraisal Problems

1.Unclear standardsAn appraisal that is too open to interpretation.

2.Halo EffectIn performance appraisal, the problem that occurs when a supervisor’s rating of a subordinate on one trait biases the rating of that person on other traits.

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3. Central tendencyA tendency to rate all employees the same way, such as rating them all average.

4. Strictness/leniencyThe problem that occurs when a supervisor has a tendency to rate all subordinates either high or low.

5. BiasThe tendency to allow individual differences such as age, race, and sex to affect the appraisal ratings employees receive.

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How to Avoid Appraisal ProblemsIt’s probably safe to say that problems like

these can make an appraisal worse than no appraisal at all.

Would an employee not be better off with no appraisal than with a seemingly objective but actually biased one? Problems like these aren’t inevitable, though, and you can minimize them.

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1. First, learn and understand the potential problems, and the solutions (like clarifying standards) for each. Understanding the problem can help you avoid it.

2. Second, use the right appraisal tool. Each tool has its own pros and cons. For example, the ranking method avoids central tendency but can cause bad feelings when employees performances are in fact all “high”; and the ranking and forced distribution methods both provide relative—not absolute—rating.

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3. Third, train supervisors to reduce rating errors such as halo, leniency, and central tendency.

4. A fourth solution—diary keeping—is worth the effort.

Who should Do the Appraising? Traditionally, the perons’s direct

supervisor appraises his or her performance. However, other options are certainly available and are increasingly used. We’ll look at the main ones.

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Immediate Supervisor Peer Appraisals Rating Self-ratings Appraisal by Subordinates

THE APPRAISAL INTERVIEWAn interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths.

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Types of Appraisal Interviews There are four basic types of appraisal interviews,

each with its own objectives: Satisfactory—Promotable is the easier of the four

appraisal interviews. Satisfactory—Not promotable is for employee

whose performance is satisfactory but for whom promotion is not possible.

When the person’s performance is unsatisfactory but correctable, the interview objective is to lay out an action plan for correcting the unsatisfactory performance.

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If the employee is unsatisfactory and the situation is uncorrectable, you can usually ship the interview. You either tolerate the person’s poor performance for now, or dismiss the person.

How to conduct the Appraisal InterviewTherefore terms of objective work data.Don’t get personalEncourage the person to talkDon’t type around

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How to Handle a Defensive subordinate1. Recognize that defenese behavior is

normal.2. Never attack a person’s defenses.3. Postpone action.4. Recognize your own limitations How to Criticize a Subordinate

When criticism is required, do it in a manner that lets the person maintain his or her dignity and sense of worth.

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How to Ensure the Interview leads to Improved PerformanceWhether subordinates express satisfaction with their appraisal interview depends on factors with as

1. Not feeling threatened during the interview

2. Having an opportunity to present their ideas and feelings and to influence the course of the interview; and

3. Having a helpful and constructive supervisor conduct the interview.

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How to Handle a Formal Written Warning

There will be times when an employee’s performance is so poor that a formal written warning is required. Such written warnings serve two purposes.

1. They may serve to shake your employee out of his or her bad habits, and

2. They can help you defend your rating, both to your own boss and (if needed) to the courts.

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Written warnings should identify the standards by which the employee is judged, make it clear that the employee was aware of the standard, specify any deficiences relative to the standard, and show the employee had an opportunity to correct his or her performance.

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CHAPTER # 10

MANAGING CAREERS

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We may define career as the “occupational positions a person has had over many years.”

THE BASICS OF CAREER MANAGEMENT

Career managementThe process for enabling employees to better understand and develop their career skills and interests and to use these skills and interests more effectively.

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Career DevelopmentThe lifelong series of activities that contribute to a person’s career exploration, establishment, success, and fulfillment.

Career PlanningThe deliberate process through which someone becomes aware of which someone becomes aware of personal skills, interests, knowledge motivations, and other characteristics; and establishes action plans to attain specific goals

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Career Planning and DevelopmentThe deliberate process through which a person becomes aware of personal career-related attributes and the lifelong series of steps that contribute to his or her career fulfillment.

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ROLES IN CAREER DEVELOPMENT

The Employee’s RoleMaking decisions like these is the employee’s responsibility. For example, an employee can do several things short of changing occupations. Ask yourself what you’re looking for in a job, and to what extent your current position is fulfilling your needs Get rid of energy-draining, low-impact responsibilities.

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Enhance your networks, for instance, by joining a cross-functional team at work, discussing your career goals with role models, conducting informational interviews with people whose jobs interest you, and becoming a board member for a nonprofit organization so you can interest with new people.

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The Employer’s RoleThe employee career development

responsibilities depend somewhat on how long the employee has been with the firm.

Reality Shock

Results of a period that may occur at the initial career entry when the new employee’s high job expectations confront the reality of a boring, unchallenging

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Job RotationMoving an employee through a preplanned series of position in order to prepared the person for an enhanced role with the company.

MentoringFormal or informal programs in which mid and senior-level managers help less experienced employees-for instance, by giving them career advice and helping them navigate political pitfalls.

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Innovative Corporate Career Development Initiatives

1. Provide each employee with an individual budget.

2. Offer on-site or online career centers

3. Encourage role reversal

4. Establish a corporate campus

5. Help organize career success teams

6. Provide career coaches

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7. Provide Career Planning Workshops

8. Computerized on and offline programs are available for improving the organizational career planning process.

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MANAGING PROMOTIONS AND TRANSFERS

Promotions Advancements to positions of increased responsibility. Promotion and transfers are integral parts of most people’s careers.

TransfersReassignments to similar positions in other parts of the firm.

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Making Promotion DecisionsDecision 1: Is Seniority or

Competence the Role?Decision 2: How Should We measure

Competence?Decision 3: Is the Process Formal or

Informal Decision 4: Vertical, Horizontal, or

other?

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Handling TransfersA transfer is a move from one job to

another, usually with no change in salary or grade. Employees seek transfers for many reasons, including personal enrichment, more interesting jobs, greater convenience—better hours, location of work, and so on-or to jobs offering greater advancement possibilities.

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Employers may transfer a worker to vacate a position where he or she is no longer needed, to fill one where he or she is needed, or more generally to find a better fit for the employee within the firm. Many firms today boost productivity by consolidating positions. Transfers are a way to give employees who might have nowhere else to go a change for another assignment and, perhaps, some personal growth.

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ENHANCING DIVERSITY THROUGH CAREER MANAGEMENT

CAREER MANAGE3MKENT AND EMPLOYEE COMMITMENT

Commitment-oriented Career Development effortsThe employer’s career planning and development pro0cess can and should play a central role in this process.

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Career Development ProgramsCareer-oriented Appraisals

Similarly, as mentioned earlier, few situations at work provide a better opportunity for discussing career-related issues then does the annual or semi-annual appraisal. Performance appraisals should not only be about telling someone how he or she has done.

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They also provide the ideal occasion to link the employee’s performance, career interest, and developmental needs into a coherent career plan.

RETIREMENTThe point at which one gives up one’s work, usually between the ages of 60 and 65. Retirement for many employees is a mixed blessing. The employee may be free of the daily requirements of his or her job, but at the same time be slightly adrift because of not having a job.

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Pre-retirement CounselingCounseling provided to employees who are about to retire, which covers matters such as benefits advice, second careers, and so on.

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PART - IV

CHAPTER # 11

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ESTABLISHING STRATEGIC PAY PLANS

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INTRODUCATION

Once employees have done their jobs and been appraised, they expert to be paid. The main purpose of this chapter is to show you how to establish a pay plan. We explain “job evaluation” techniques—techniques for finding the relative worth of a job--, and how to conduct online and offline salary surveys. We also show you how to price the jobs in your firm by developing pay grades and ranges. In the next chapter, we’ll focus specifically on pay-or-performance and incentive plans

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DETERMINING PAY RATES

Employee CompensationAll forms of pay or rewards going to employees and arising from their employment.

Direct financial paymentsPay in the form of wages, salaries, incentives, commissions, and bonuses.

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Indirect paymentsPay in the form of financial benefits such as insurance.

Union Influences on Compensation Decisions

Corporate Policies, Competitive Strategy, and Compensation

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Salary CompressionA salary inequity problem, generally caused by inflation, resulting in longer-term employees in a position earning less then workers entering the firm today.

GeographyGeography also plays a policy role. Cost of living differences between cities can be considerable.

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Equity and Its Impact on Pay RatesThe process of establishing pay rates while ensuring external, internal, and (to some extent) procedural equity consists of five steps:

1. Conduct a salary survey of what other employers are paying for comparable jobs (to help ensure external equity).

2. Determine the worth of each job in your organization through job evaluation (to ensure internal equity).

3. Group similar jobs into pay grades.4. Price each pay grade by using wave curves.5. Fine-tune pay rates.

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ESTABLISHING PAY RATESStep 1. The Salary survey

A survey aimed at determing prevailing wage rates. A good salary survey provides specific wage rates for specific jobs. Formal Written questionnaire surveys are the most comprehensive, but telephone surveys and newspaper ads are also sources of information.

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Benchmark JobA job that is used to anchor the employer’s pay scale and around which other jobs are arranged in order of relative worth.

Step 2. Job Evaluation

Job evaluationA systematic comparison done in order to determine the worth of one job relative to another.

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Compensate FactorsA fundamental, compensable element of a job, such as skills, effort, responsibility, and working conditions.

Job Evaluation Methods: Ranking Ranking Method

The simplest method of job evaluation that involves ranking each job relative to all

other jobs, usually based on overall difficulty.

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1. Obtain job information.

2. Select and group jobs.

3. Select compensable factors.

4. Rank jobs.

5. Combine ratings. Job Evaluation Methods: Job

Classification

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Job classification (or grading) MethodA method for categorizing jobs into groups.

ClassesGrouping jobs based on a set of rules for each group or class, such as amount of independent judgment, skill, physical effort, and so forth, required classes usually contain similar jobs.

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Grades

A job classification system like the class system, although grades often contain dissimilar jobs, such as secretaries, mechanics, and firefighters. Grade descriptions are written based on compensable factors listed in classification systems.

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Job Evaluation Methods; Point MethodThe job evaluation method in which a number of compensable factor are identified and then the degree to which each of these factors is present on the job is determined.

Job Evaluation Methods: A widely used method of ranking jobs according to a variety of skill and difficulty factors, then adding up these rankings to arrive at an overall numerical rating for each given job.

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Step 3. Group Similar Jobs into pay Grades

Pay GradeA pay grade is comprised of jobs of approximately equal difficulty.

Step 4. Price Each Pay Grade—Wages Curves

Wage curveShows the relationship between the value of the job and the average wage paid for this job.

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Step 5. Fine-Tune Pay RatesFine-turning involves developing pay ranges and correcting out-f-line rates.

Developing Pay RangesA series of steps or levels within a pay grade, usually based upon years of service.

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Correcting Out-of-Line RatesThe wage rate for a particular job may fall well-off the wage line or well outside the rate range for its grade,. This means that the average pay for that job is currently too high or too low, relative other jobs in the firm. You should raise the wages of underpaid employees to the minimum of the rate range for their pay grade.

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JPRICING MANAGERIAL AND PROFESSIONAL JOBSDeveloping compensation plans for managers or professionals is similar in many respects to developing plans for any employee. The basic aim is the same; to attract and keep good employees. And job evaluation—classifying jobs, ranking them, or assigning points to them, for instance—is as applicable to managerial and professional jobs as to production and clerical ones.

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There are some big differences, though. For one things, job evaluation provides only a partial answer to the question of how to pay managers and professionals. The job tend to stress harder-to-quantify factors like judgment and problem solving more than do production and clerical jobs. There is also more emphasis on paying manager and professionals based on results—based on their performance or on what they can do—rather than on the basis of static job demands like working conditions.

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Developing compensation plans for managers and professionals therefore tends to be relatively complex. Job evaluation, while still important, usually plays secondary role to non-salary issues like business, incentives, and benefits.

Compensating ManagerCompensation for a company’s top executives usually consists of four main elements base pay, short-term incentives, long-term incentives, and executive benefits and perks.

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What Really Determines Executive Pay?Salary is the cornerstone of executive compensation; it’s the element on which employers layer benefits, incentives, and perquisites—all normally bestowed in proportion to base pay.

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Managerial Job EvaluationDespite questions about the rationality of executive pay, job evaluation is still important in pricing executive and managerial jobs in most large firms. The Basic approach is to classify all executive and management positions into a series of grades, to which a series of salary ranges is attached.

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Compensating Professional EmployeesCompensating non-supervisory professional employees like engineers and scientists presents unique problems. Analytical jobs like these emphasize creativity and problem solving, compensable factors not easily compared or measured. Furthermore, how do you measure performance? The professional’s economic impact on the firm often relates only indirectly to his or her actual efforts. For example, the success of an engineer’s invention depends on many factors, like how well the firm markets it.

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COMPETENCY-BASED PAY

Where the company pays for the employee’s range, depth, and types of skills and knowledge, rather than for the job title he or she holds.

CompetenciesDemonstrable characteristics of a person, including knowledge, skills, and behaviors, that enable performance.

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OTHER COMPENSATION TRENDS

The movement toward competency-based pay is one important compensation trend. This section looks at two others; broad-banking, strategic compensation and comparable worth.

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Broad-bankingConsolidating salary grades and ranges into just a few wide levels or “bands,” each of which contains a relatively wide range of jobs and salary levels.

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Strategic Compensation Strategic compensation plan:

1. The marketplace rules.

2. Fewer jobs, evaluated differently, in broad-bands.

3. Managers manage.

4. Big stakes for stakeholders

s

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Comparable WorthThe concept by which women who are usually paid less than men can claim that man in comparable rather than in strictly equal jobs are paid more.

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CHAPTER # 12

PAY FOR PERFORMANCE AND FINANCIAL

INCENTIVES

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INTRODUCTIONChapter 11 focused on developing pay plans and on non-performance-based compares elements such as salaries and wages. The main purpose of this chapter is to explain how to use performance-based incentives to motivate employees. We’ll discuss incentives for individual employees, incentives for managers and executives, incentives for salespeople, incentives for professionals, and organization-wide variable pay plans.

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MONEY AND MOTIVATION: AN INTRODUCTION

Performance and PayIndividual Differences

The manager devising an incentive plan should remember, first, that different people react to different incentives in different ways. Psychologists explain this was what they call the law of individual differences. This means that people differ in personality, abilities, values, and needs, and these differences manifest themselves in different desires and in different reactions.

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Psychological Needs and Intrinsic versus Extrinsic Motivation.

Abraham MaslowPsychologist Abraham maslow argued that people have a hierarchy of five increasingly higher-level needs, which he called physiological, security, social, self-esteem, and self-actualization. (Self-actualization refers to the need people have to be what they are capable of becoming).

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Frederick HerzbergFrederick herzberg’s famous hygiene—motivator theory of motivation similarly divides. Maslow’s hierarchy into lower level (physiological, safety, social) and higher-level (achievement, self-actualization) needs. He says the best way to motivate someone is to organize the job so that doing it provides the feedback and challenge that helps satisfy the person’s higher-level needs. These needs are relatively insatiable, says herzberg, and so recognition and challenging work provides a sort of building motivation generator.

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Instrumentality and Rewards: Vroom’s TheoryAnother important motivational fact is that, in general, people won’t pursue rewards they find unattractive, or engage in tasks on which the odds of success are very low. Psychologist Victor Vroom’s motivation theory echoes these commonsense observations.

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he says a person’s motivation to expert some level of effort is a function of three things: the person’s expectancy (in terms of probability) that his or her effort will lead to performance; instrumentality, or the perceived connection (if any) between successful and actually obtaining the rewards; and valence, which represents the perceived value the person attaches to the reward.

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In Vroom’s theory, motivation is thus a product of three things: Motivation = (E X I X), where, of course, E represents expectancy, I instrumentality, and V valence. If E or I or V is zero or inconsequential, there will be no motivation.

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Types of Incentive PlansManagers often use two terms synonymously with incentive plans. Variable pay is a team or group incentive plan that ties pay to some measure of the firm’s (or the facility’s) overall profitability; profit-sharing plans are one example.

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INDIVIDUAL EMPLOYEE INCENTIVE AND RECOGNITION PROGRAMS

Piecework PlansA system of pay based on the number of items processed by each individual worker in a unit of time, such as items per hour or items per day.

Straight pieceworkan incentive plan in which a person is paid a sum for each item he or she makes or sells, with a strict proportionality between results and rewards.

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Standard Hour PlanA plan by which a worker is paid a basic hourly rate but is paid an extra percentage of his or her rate for production exceeding the standard per hour or per day. Similar to piecework payment but based on a percent premium.

Merit Pay as an incentiveAny salary increase awarded to an employee based on his or her individual performance.

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Merit Pay OptionsTwo adaptations of merit pay plans are popular. One awards merit raises in a lump summary once a year and does not make the raises part of the employee’s salary (making them in, effect, short-term bonuses for lower-level workers). The other ties merit awards to both individual and organizational performance.

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Incentives for Professional EmployeesProfessional employees are those whose work involves the application of learned knowledge to the solution of the employer’s problems. They include lawyers, doctors, economists, and engineers.

Recognition-based AwardsStudies show that recognition has a positive impact on performance, either alone or in conjunction with financial rewards.

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Online Award ProgramsIf there’s a downside to recognition programs, it’s that they’re expensive to administer. For example, many firms run anniversary awards programs to recognize employees on signification dates like their fifth year with the company. The HR department usually has to choose the merchandize, create the rewards catalog, print and mail the catalog, and monitor everyone’s anniversary dates and make sure the employee actually gets his on her award. This can be very time-consuming.

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INCENTIVES FOR SALESPEOPLESalary Plan Some firms pay salespeople fixed salaries (perhaps with occasional incentives in the of bonuses, sales contest prizes, and the like). Straight salaries makes particular sense when the main job involves prospecting (finding new clients), or when it mostly involved account servicing, such as developing and executing product training programs for a customer’s salesforce or participating in national and local trade shows.

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You’ll often find jobs like these in industries that sell technical products. This is one reason why the aerospace and transportation equipment industries emphasize sales salary plans.

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Commission PlanCommission plans pay salespeople for results, and only for results. Under these plans salespeople have the greatest incentive, and there’s a tendency to attract high performing salespeople who see that effort clearly leads to rewards. Sales costs are proportionate to sales rather than fixed, and the company’s fixed sales costs are low. It’s plan that’s easy to understand and compute.

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Setting Sales QuotasThere are several things to consider when choosing sales quotas. One is whether to look them in for a period of time. Experts traditionally suggested “locking in” sales quotas and incentive plans, on the assumption that frequent changes undermine motivation and morale. But in today's fast-changing business scene, such inflexibility is usually not advisable.

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Strategic Sales IncentivesEmployers increasingly link sales commissions to strategic non-volume-based measures. At Siebel systems, about 40% of each salesperson’s is based on factors like customers’ reported satisfaction with service.

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TEAM/GROUP VARIABLE PAY INCENTIVE PLANS

How to Design Team IncentivesFirms increasingly use teams to manage much of their work. In such cases, they need incentive plans that both encourage teamwork and focus team members’ attention on performance.

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Team or group incentive plans A plan in which a production standard is set for a specific work group, and its members and paid incentives if the group exceeds the production standard.

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ORGANIZATIONWIDE VARIABLE PAY PLANS

Profit Sharing PlansA plan whereby employees share in the company’s profits.

Employee Stock Ownership Plan (ESOP)A corporation contributes shares of its own stock to a trust in which additional contributions are made annually. The trust distributes the stock to employees on retirement or separation from service.

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Scanlon and Other Gains-haring PlansAn incentive plan developed in 1937 by Joseph Scanlon and designed to encourage cooperation, involvement, and sharing of benefits.

Gain-Sharing PlansAn incentive plan that engages employees in a common effort to achieve productivity objectives and share the gains.

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Implementing a Gain-sharing PlanIn general there are eight basic steps in implementing a gain-sharing plan.

1. Establish general plan objectives. These might include boosting productivity or lowering costs.

2. Choose specific performance measures. For example, use productivity measures such as labor hours per unit produced, or financial measures like return on net assets to measure employee performance.

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3. Decide on a funding formula. What portion of gains will employees receive? In one study, employees received, by formula, an average of 46.7% of incremental gains, the remainder stayed with the company.

4. Decide on a method for dividing and distributing the employees’ share of the gains. Standard methods include equal percentage of pay or equal shares, however, some plans also modify awards based on individual performance.

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5. Choose the form of payment. This is usually cash, but occasionally is common stock.

6. Decide how often to pay bonuses. Firms tend to compute financial performance measures for this purpose annually, and labor productivity measures quarterly or monthly.

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7. Develop the involvement system. The most commonly used systems include steering committees, update meetings, suggestion systems, coordinators, problem-sloving teams, department committees, training programs, newsletters, inside auditors, and outside auditors.

8. Implement the plan.

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A-Risk Variable Pay PlansPlans that put some portion of the employee’s weekly pay at risk, subject to the firm’s meeting its financial goals.

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INCENTIVES FOR MANAGERS AND EXECUTIVES

Short-Term incentives: The Annual BonusPlans that are designed to motivate short-term performance of managers and are tied to company

Short-Term Incentives: The Annual bonusPlans that are designed to motivate short-term performance of manages and are tied to company profitability.

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Individual AwardsLong-Term IncentivesStock Options

the right to purchase a stated number of shares of a company stock at today’s price at some time in the future.

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Other Stock Option PlansOther PlansPerformance PlansOther Executive IncentivesStrategy and Executive Compensation

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DESIGNING AND EXECUTING EFFECTIVE INCENTIVE PROGRAMS

Why incentive Plans FallHow to Implement Effective Incentive

PlansIncentive Plans in practice

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CHAPTER # 13

BENEFITS AND SERVICES

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THE BENEFITS PICTURE TODAY

Benefits Indirect financial and non-financial payments employees receive for continuing their employment with the company. They include things like health and life insurance, pensions, time off with pay, and child-care facilities.

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Benefits are major expense for most employers. Employee benefits accounts for about one-third of wages and salaries (or about 28% of total payrolls), with legally required benefits, followed by health insurance, the most expensive single benefit cost.

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PAY FOR TIME NOT WORKED

Supplemental Pay BenefitsBenefits for time not worked such as unemployment insurance, vacation and holiday pay, and sick pay.

Severance PayA one-time payment some employers provide when terminating an employee.

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Supplemental Unemployment BenefitsProvide for a guaranteed annual income” in certain industries where employers must shut down to change machinery or due to reduced work. These benefits are paid by the company and supplement unemployment benefits.

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INSURANCE BENEFITS

Workers CompensationProvides income and medical benefits to work-related accident victims or their dependents regardless of fault.

Hospitalization, Health, and Disability Insurance

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The Pregnancy Discrimination ActLife InsuranceGroup Life Insurance

Provides lower rates for the employer or employee and includes all employees, including new employees, regardless of health or physical condition.

Benefits for Part-Time and Contingent Workers

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RETIREMENT BENEFITS

Social SecurityPension Plans

Plans that provide a fixed sum when employees reach a predetermined retirement age or when they can no longer work due to disability.

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Defined Benefit Pension Plan A plan that contains a formula for determing retirement benefits.

Other Types of Defined Contribution Plans

Savings and thrift plan Plan in which employees contribute a portion of their earnings to a fund; the employer usually matches this contribution in whole or in part.

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Deferred profit-sharing planA plan in which a certain amount of profits is credited to each, employee’s account, payable at requirement, termination, or death.

Employee Stock ownershipA qualified, tax deductible stock bonus plan in which employers contribute stock to a trust for eventual use by employees.

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Employee Retirement IncomeSecurity Act (ERISA) signed into law by President Ford in 1974 to require that pension rights government agency, the PBGC.

Vested fundsMoney placed in a pension fund that cannot be forfeited for any reason.

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Pension AlternativesEarly Retirement windows

A type of offering by which employees are encouraged to retire early, the incentive being liberal pension benefits plus perhaps a cash payment.

Cash Balance Pension PlansDefine benefit plans under which the employer contributes a parcentage of employees’ current pay to employees’ pension plans every year, and employees earn interest on this amount.

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PART V

CHPATER # 14

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ETHICS, JUSTICE, AND FAIR TREATMENT IN HR

MANAGEMENT

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ETHICS AND FAIR TREATMENT AT WORK

The Meaning Of EthicsThe principles of conduct governing an individual or a group, specifically, the standards you use to decide what your conduct should be.

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Ethics and the LawFurthermore, the law is not the best guide about what is ethical, because something may be legal but not right, and something may be right but not legal. However, that doesn’t mean the decision will be ethical.

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Ethics, fair Treatment, and justiceManaging human resources often requires making decisions in which fairness plays a big role. You hire one candidate and reject another, promote one and demote another, pay one more and one less, and settle one’s grievances while rejecting another’s. How employees react to these decisions depends, to a large extent, on whether they think the decisions and the processes that led up to them were fair.

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Distributive Justicethe fairness and justice of a decision’s result.

Procedural JusticeThe fairness of the process

International (Interpersonal) justiceThe manner in which mangers conduct their interpersonal dealings with employees.

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WHAT SHAPES ETHICAL BEHAVIOR AT WORK?

Individual FactorsOrganizational FactorsThe boss’s InfluenceEthics Policies and CodesThe organization’s Cultre

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Organizational Culture

The characteristic values, traditions, and behaviors a company’s employees share.

The manager’s Role

Clarify ExpectationsUse Signs and SymbolsProvide Physical supportUse StoriesOrganize Rites and Ceremonies.

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THE ROLE OF HR MANAGEMENT IN FOSTERING ETHICS AND FAIR TREATMENT

Why Treat Employees Fairly? HR Ethics Activities Staffing and Selection Training Performance Appraisal Reward and Disciplinary Systems Workplace Aggression and Violence Building Two-Way Communications

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EMPLOYEE DISCIPLINE AND PRIVACY

Formal Disciplinary Appeals ProcessesDiscipline without Punishment Non-punitive Discipline

Discipline without punishment, usually involving system of oral warnings and paid “decision-making leaves” in lieu of more traditional punishment.

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1. Issue an oral reminder. As a supervisor, your goal is to get the employee to agree to solve the disciplinary problem.

2. Should another incident arise within six weeks, issue a formal written reminder, a copy of which is placed in the employee’s personnel file.

3. Give a paid, one-day “decision-making leave.”

4. If no further incidents occur in the next year or so, the one-day paid suspension is purged from the person’s file.

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Employee PrivacyMANAGING DISMISSALSGrounds for Dismissal Unsatisfactory performance Misconduct Lack of qualifications for the job Changed requirements of (or elimination of)

the job.

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Unsatisfactory PerformancePersistent failure to perform assigned duties or to meet prescribed standards on the job.

InsubordinationWillful disregard or disobedience of the boss’s authority or legitimate orders; criticizing the boss in public.

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Wrongful discharge

An employee dismissal that does not comply with the law or does not comply with the contractual arrangement stated or implied by the firm via its employment application forms, employee manuals, or other promises.

Termination interviewThe interview in which an employee is informed of the fact that he or she has been dismissed.

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Outplacement CounselingA systematic process by which a terminated person is trained and counseled in the techniques of self-appraisal and securing a new position.

Exit InterviewInterviews with employee who are leaving the firm, conducted for the purpose of obtaining information about the job or related matters, to give the employer insight about the company.

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Layoffs and the Plant Closing LawNon-disciplinary separations are a fact of corporate life. For the employer, reduced sales or profits may required layoffs or downsizing. Employees may terminate their employment to retire or to seek better jobs.

The Plant Closing LawBumping/Layoff Procedures

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Bumping/layout proceduresDetailed procedures that determine who will be laid off if no work is available, generally allow employees to use their seniority to remain on the job.

Alternatives to LayoffsGiven the investments they have in recruiting, screening, and training employees, many employers are hesitant to lay off people at the first sign of business decline.

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Adjusting to Downsizings and MergersDownsizing

The process of reducing, usually dramatically, the number of people employed by a firm.

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Identify objectives and constraintsForm a downsizing teamAddress legal issuesPlan Post-implementationAddress security concerns

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