Gary Dessler Human Resource Management, 10th Edition PDF

Gary Dessler tenth edition Chapter 1 Part 1 Introduction The Strategic Role of Human Resource Management © 2005 Prentice Hall Inc. PowerPoint Presentation by Charlie Cook All r...

Gary Dessler tenth edition Chapter 1 Part 1 Introduction The Strategic Role of Human Resource Management © 2005 Prentice Hall Inc. PowerPoint Presentation by Charlie Cook All rights reserved. The University of West Alabama After studying this chapter, you should be able to: 1. Explain what human resource management (HR) is and how it relates to the management process. 2. Give at least eight examples of how managers can use HR concepts and techniques. 3. Illustrate the HR management responsibilities of line and staff (HR) managers. 4. Provide a good example that illustrates HR’s role in formulating and executing company strategy. 5. Write a short essay that addresses the topic: why metrics and measurement are crucial to today’s HR managers. 6. Outline the plan of this book. © 2005 Prentice Hall Inc. All rights reserved. 1–2  The Manager’s Human Resource Management Jobs  Management process – The five basic functions of planning, organizing, staffing, leading, and controlling.  Human resource management (HRM) – The policies and practices involved in carrying out the ―people‖ or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising. © 2005 Prentice Hall Inc. All rights reserved. 1–3  Personnel Aspects Of A Manager’s Job  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  Communicating (interviewing, counseling, disciplining)  Training and developing managers  Building employee commitment © 2005 Prentice Hall Inc. All rights reserved. 1–4  Personnel Mistakes  Hire the wrong person for the job  Experience high turnover  Have your people not doing their best  Waste time with useless interviews  Have your company in court because of discriminatory actions  Have your company cited by OSHA for unsafe practices  Have some employees think their salaries are unfair and inequitable relative to others in the organization  Allow a lack of training to undermine your department’s effectiveness  Commit any unfair labor practices © 2005 Prentice Hall Inc. All rights reserved. 1–5  Basic HR Concepts Getting results – The bottom line of managing HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals. © 2005 Prentice Hall Inc. All rights reserved. 1–6  Line and Staff Aspects of HRM  Line manager – A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks.  Staff manager – A manager who assists and advises line managers. © 2005 Prentice Hall Inc. All rights reserved. 1–7  Line Managers’ HRM Responsibilities 1. Placing the right person on the right job 2. Starting new employees in the organization (orientation) 3. Training employees for jobs new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the firm’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 © 2005 Prentice Hall Inc. All rights reserved. 1–8  Functions of the HR Manager  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).  A coordinative function – HR managers also coordinate personnel activities, a duty often referred to as functional control.  Staff (assist and advise) functions – Assisting and advising line managers is the heart of the HR manager’s job. © 2005 Prentice Hall Inc. All rights reserved. 1–9  HR and Authority  Authority – The right to make decisions, direct others’ work, and give orders.  Implied authority – The authority exerted by an HR manager by virtue of others’ knowledge that he or she has access to top management.  Line authority – The authority exerted by an HR manager by directing the activities of the people in his or her own department and in service areas. © 2005 Prentice Hall Inc. All rights reserved. 1–10  Employee Advocacy  HR must take responsibility for: – Clearly defining how management should be treating employees. – Making sure employees have the mechanisms required to contest unfair practices. – Represent the interests of employees within the framework of its primary obligation to senior management. © 2005 Prentice Hall Inc. All rights reserved. 1–11  Examples of HR Job Duties  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. © 2005 Prentice Hall Inc. All rights reserved. 1–12  Examples of HR Job Duties (cont’d)  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. © 2005 Prentice Hall Inc. All rights reserved. 1–13  HR Department Organizational Chart (Large Company) Figure 1–1 Source: Adapted from BNA Bulletin to Management, June 29, 2000. © 2005 Prentice Hall Inc. All rights reserved. 1–14  Cooperative Line and Staff HR Management 1. The line manager’s responsibility is to specify the qualifications employees need to fill specific positions. 2. HR staff then develops sources of qualified applicants and conduct initial screening interviews 3. HR administers the appropriate tests and refers the best applicants to the supervisor (line manager), who interviews and selects the ones he or she wants. © 2005 Prentice Hall Inc. All rights reserved. 1–15  HR Organizational Chart (Small Company) Figure 1–2 © 2005 Prentice Hall Inc. All rights reserved. 1–16  Employment and Recruiting—Who Handles It? (percentage of all employers) Note: length of bars represents prevalence of activity among all surveyed employers. Figure 1–3 Source: HR Department Benchmarks and Analysis,‖ BNA/Society for Human Resource Management, 2002. © 2005 Prentice Hall Inc. All rights reserved. 1–17  The Changing Environment Of HR Management  HR’s changing role: ― Personnel departments‖ – Took over hiring and firing from supervisors, payroll, and benefit plans administration. – In the 1930s added ―protecting the firm in its interaction with unions‖ responsibilities (labor relations). – Assumed organizational responsibilities for equal employment and affirmative action. © 2005 Prentice Hall Inc. All rights reserved. 1–18  A Changing HR Environment  Globalization  Technological Advances  Exporting Jobs  The Nature of Work  Workforce Demographics © 2005 Prentice Hall Inc. All rights reserved. 1–19  Employment Exodus: Projected Loss of Jobs and Wages Figure 1–4 Source: Michael Shroeder, ―States Fight Exodus of Jobs,‖ Wall Street Journal, June 3, 2003, p. 84. © 2005 Prentice Hall Inc. All rights reserved. 1–20  Measuring HR’s Contribution  Strategy – The company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage. HR managers today are more involved in partnering with their top managers in both designing and implementing their companies’ strategies. – Top management wants to see, precisely, how the HR manager’s plans will make the company more valuable. © 2005 Prentice Hall Inc. All rights reserved. 1–21  HR Metrics  Absence Rate [(Number of days absent in month) ÷ (Average number of employees during mo.) × (number of workdays)] × 100  Cost per Hire (Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) ÷ Number of Hires  Health Care Costs per Employee Total cost of health care ÷ Total Employees  HR Expense Factor HR expense ÷ Total operating expense Sources: Robert Grossman, ―Measuring Up,‖ HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, ―Improving the Return on Human Capital: New Metrics,‖ Compensation and Benefits Review, January/February 2000, pp. 13– 20;Thomas E. Murphy and Sourushe Zandvakili, ―Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics,‖ Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. Figure 1–5 © 2005 Prentice Hall Inc. All rights reserved. 1–22  HR Metrics (cont’d)  Human Capital ROI Revenue − (Operating Expense − [Compensation cost + Benefit cost]) ÷ (Compensation cost + Benefit cost)  Human Capital Value Added Revenue − (Operating Expense − ([Compensation cost + Benefit Cost]) ÷ Total Number of FTE  Revenue Factor Revenue ÷ Total Number of FTE  Time to fill Total days elapsed to fill requisitions ÷ Number hired Sources: Robert Grossman, ―Measuring Up,‖ HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, ―Improving the Return on Human Capital: New Metrics,‖ Compensation and Benefits Review, January/February 2000, pp. 13–20;Thomas E. Murphy and Sourushe Zandvakili, ―Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics,‖ Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA Figure 1–5 (cont’d) 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. © 2005 Prentice Hall Inc. All rights reserved. 1–23  HR Metrics (cont’d)  Training Investment Factor Total training cost ÷ Headcount  Turnover Costs Cost to terminate + Cost per hire + Vacancy Cost + Learning curve loss  Turnover Rate [Number of separations during month ÷ Average number of employees during month] × 100  Workers’ Compensation Cost per Employee Total WC cost for Year ÷ Average number of employees Sources: Robert Grossman, ―Measuring Up,‖ HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, ―Improving the Return on Human Capital: New Metrics,‖ Compensation and Benefits Review, January/February 2000, pp. 13–20;Thomas E. Murphy and Sourushe Zandvakili, ―Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics,‖ Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA Figure 1–5 (cont’d) 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. © 2005 Prentice Hall Inc. All rights reserved. 1–24  Measuring HR’s Contribution  The HR Scorecard – Shows the quantitative standards, or ―metrics‖ the firm uses to measure HR activities. – Measures the employee behaviors resulting from these activities. – Measures the strategically relevant organizational outcomes of those employee behaviors. © 2005 Prentice Hall Inc. All rights reserved. 1–25  Benefits of a High Performance Work System (HPWS)  Generate more job applicants  Screen candidates more effectively  Provide more and better training  Link pay more explicitly to performance  Provide a safer work environment  Produce more qualified applicants per position  More employees are hired based on validated selection tests  Provide more hours of training for new employees  Higher percentages of employees receiving regular performance appraisals. © 2005 Prentice Hall Inc. All rights reserved. 1–26  The New HR Manager  New Proficiencies – HR proficiencies – Business proficiencies – Leadership proficiencies – Learning proficiencies © 2005 Prentice Hall Inc. All rights reserved. 1–27  The New HR Manager (cont’d)  The Need to ―Know Your Employment Law‖ – Equal employment laws – Occupational safety and health laws – Labor laws © 2005 Prentice Hall Inc. All rights reserved. 1–28  Effects CFOs Believe Human Capital Has on Business Outcomes Source: Steven H. Bates, ―Business Partners,‖ HR Magazine, September 2003, p. 49 Figure 1–6 © 2005 Prentice Hall Inc. All rights reserved. 1–29  The New HR Manager  Ethics and HR – Ethical lapses (e.g., Enron, Martha Stewart)  Sarbanes-Oxley Act in 2003 – Intended to curb erroneous corporate financial reporting: Requires CEOs and CFOs to certify their companies’ periodic financial reports. Prohibits personal loans to executive officers and directors. Requires CEOs and CFOs to reimburse their firms for bonuses and stock option profits if corporate financial statements subsequently require restating. © 2005 Prentice Hall Inc. All rights reserved. 1–30  HR Professional Certification  HR is becoming more professionalized.  Society for Human Resource Management (SHRM) – SHRM’s Human Resource Certification Institute (HRCI) SPHR (senior professional in HR) PHR (professional in HR) certificate © 2005 Prentice Hall Inc. All rights reserved. 1–31  HR and Technology  Benefits of technological applications for HR – Intranet-based employee portals through which employees can self-service HR transactions. – The availability of centralized call centers staffed with HR specialists. – Increased efficiency of HR operations. – The development of data warehouses of HR- related information. – The ability to outsource HR activities to specialist service providers. © 2005 Prentice Hall Inc. All rights reserved. 1–32  The Plan of This Book: Basic Themes  HR management is the responsibility of every manager—not just those in the HR department.  HR managers must always stand ready to defend their plans and contributions in measurable terms.  An HR department’s performance is measured relative to achieving the company’s strategic aims.  HR managers increasingly rely on IT to help support the company’s strategic aims.  Virtually every HR-related decision managers make has legal implications.  Globalization and diversity are important HR issues today. © 2005 Prentice Hall Inc. All rights reserved. 1–33  Strategy and the Basic HR Process Figure 1–8 © 2005 Prentice Hall Inc. All rights reserved. 1–34  KEY TERMS management process employee advocacy human resource globalization management (HRM) nontraditional workers authority human capital line manager strategy staff manager metrics line authority HR Scorecard implied authority outsourcing functional control © 2005 Prentice Hall Inc. All rights reserved. 1–35  Gary Dessler tenth edition Chapter 2 Part 1 Introduction Equal Opportunity and the Law © 2005 Prentice Hall Inc. PowerPoint Presentation by Charlie Cook All rights reserved. The University of West Alabama After studying this chapter, you should be able to: 1. Cite the main features of at least five employment discrimination laws. 2. Define adverse impact and explain how it is proved and what its significance is. 3. Explain and illustrate two defenses you can use in the event of discriminatory practice allegations. 4. Avoid employment discrimination problems. 5. Cite specific discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits. 6. Define and discuss diversity management. © 2005 Prentice Hall Inc. All rights reserved. 2–37  Equal Employment Opportunity 1964–1991  Title VII of the Civil Rights Act (1964) – An employer cannot discriminate on the basis of race, color, religion, sex, or national origin with respect to employment. – Coverage All public or private employers of 15 or more persons. All private and public educational institutions, the federal government, and state and local governments All public and private employment agencies All labor unions with 15 or more members © 2005 Prentice Hall Inc. All rights reserved. 2–38  Title VII of the 1964 Civil Rights Act  The Equal Employment Opportunity Commission (EEOC) – Consists of five members appointed by the president with the advice and consent of the Senate. – Each member serves a five-year term. – The EEOC has a staff of thousands to assist it in administering the Civil Rights law in employment settings. – EEOC may file discrimination charges and go to court on behalf of aggrieved individuals. © 2005 Prentice Hall Inc. All rights reserved. 2–39  Executive Orders  Executive Orders 11246 and 11375 – Require affirmative action: steps that are taken for the purpose of eliminating the present effects of past discrimination  Office of Federal Contract Compliance Programs (OFCCP) – Responsible for implementing the executive orders related to affirmative action and ensuring the compliance of federal contractors. © 2005 Prentice Hall Inc. All rights reserved. 2–40  Employment Discrimination Laws  Equal Pay Act of 1963 – The act requiring equal pay for equal work, regardless of sex.  Age Discrimination in Employment Act of 1967 (ADEA) – The act prohibiting arbitrary age discrimination and specifically protecting individuals over 40 years old.  Vocational Rehabilitation Act of 1973 – The act requiring certain federal contractors to take affirmative action for disabled persons. © 2005 Prentice Hall Inc. All rights reserved. 2–41 Employment Discrimination Laws (cont’d)  Vietnam Era Veterans’ Readjustment Act of 1974 – An act requiring that employees with government contracts take affirmative action to hire disabled veterans.  Pregnancy Discrimination Act (PDA) of 1978 – A Title VII amendment that prohibits sex discrimination based on ―pregnancy, childbirth, or related medical conditions.‖ If an employer offers its employees disability coverage, then it must treat pregnancy and childbirth like any other disability, and include it in the plan as a covered condition. © 2005 Prentice Hall Inc. All rights reserved. 2–42  Federal Agency Guidelines  Uniform Guidelines – Guidelines issued by federal agencies charged with ensuring compliance with equal employment federal legislation explaining recommended employer procedures in detail. – The EEOC, Civil Service Commission, Department of Labor, and Department of Justice together have uniform guidelines for employers to use. © 2005 Prentice Hall Inc. All rights reserved. 2–43  Title VII: Sexual Harassment  Sexual harassment – Harassment on the basis of sex that has the purpose or effect of substantially interfering with a person’s work performance or creating an intimidating, hostile, or offensive work environment. Employers have an affirmative duty to maintain workplaces free of sexual harassment and intimidation.  Federal Violence Against Women Act of 1994 – A person who commits a violent crime motivated by gender is liable to the party injured. © 2005 Prentice Hall Inc. All rights reserved. 2–44  Sexual Harassment Defined  Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that takes place under any of the following conditions: – Submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment. – Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual. – Such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive work environment. © 2005 Prentice Hall Inc. All rights reserved. 2–45  Proving Sexual Harassment  Quid pro quo – Rejecting a supervisor’s advances adversely affects the employee’s tangible benefits, such as raises or promotions.  Hostile environment created by supervisors. – Behaviors that substantially affect an employee’s emotional and psychological ability to the point that they affect the employee’s ability to continue with the employee’s job.  Hostile environment created by co-workers or non- employees. – Advances by the employee’s co-workers (or even the employer’s customers) can cause harassment. © 2005 Prentice Hall Inc. All rights reserved. 2–46  Sexual Harassment: Court Decisions  Meritor Savings Bank, FSB v. Vinson  Burlington Industries v. Ellerth  Faragher v. City of Boca Raton – In a quid pro quo case it is not necessary for the employee to have suffered a tangible job action to win the case. – The employer (in its defense) must show that it took ―reasonable care‖ to prevent and promptly correct any sexually harassing behavior and that the employee unreasonably failed to take advantage of the employer’s policy. © 2005 Prentice Hall Inc. All rights reserved. 2–47  What Employers Should Do to Minimize Liability in Sexual Harassment Claims  Take all complaints about harassment seriously.  Issue a strong policy statement condemning such behavior.  Inform all employees about the policy and of their rights.  Develop and implement a complaint procedure.  Establish a management response system that includes an immediate reaction and investigation by senior management.  Begin management training sessions with supervisors and managers to increase their awareness of the issues. Sources: Commerce Clearing House, Sexual Harassment Manual for Managers and Supervisors (Chicago: Commerce Clearing House, 1991), p. 8; Louise Fitzgerald et al., ―Antecedents and Consequences of Sexual Harassment in Organizations: A Test of an Integrated Model,‖ Journal of Applied Psychology 82, no. 4 (1997), pp. 577–589;―New EEOC Guidance Explains Standards of Liability for Harassment by Supervisors,‖ BNA Fair Employment Practices (June 24, 1999), p. 75;―Adequate Response Bars Liability,‖ BNA Fair Employment Practices (June 26, 1997), p. 74; Shereen Bingham and Lisa Scherer, ―The Unexpected Effects of a Sexual Harassment Educational Program,‖ Journal of Applied Behavioral Science 37, no. 2 (June 2001), pp. 125–153. Figure 2–1 © 2005 Prentice Hall Inc. All rights reserved. 2–48  What Employers Should Do to Minimize Liability in Sexual Harassment Claims (cont’d)  Discipline managers and employees involved in harassment.  Keep records of complaints, investigations, and actions taken.  Conduct exit interviews that uncover any complaints and that acknowledge by signature the reasons for leaving.  Re-publish the sexual harassment policy periodically.  Encourage upward communication through periodic written attitude surveys, hotlines, suggestion boxes, and other feedback procedures. Sources: Commerce Clearing House, Sexual Harassment Manual for Managers and Supervisors (Chicago: Commerce Clearing House, 1991), p. 8; Louise Fitzgerald et al., ―Antecedents and Consequences of Sexual Harassment in Organizations: A Test of an Integrated Model,‖ Journal of Applied Psychology 82, no. 4 (1997), pp. 577–589;―New EEOC Guidance Explains Standards of Liability for Harassment by Supervisors,‖ BNA Fair Employment Practices (June 24, 1999), p. 75;―Adequate Response Bars Liability,‖ BNA Fair Employment Practices (June 26, 1997), p. 74; Shereen Bingham and Lisa Scherer, ―The Unexpected Effects of a Sexual Harassment Educational Program,‖ Journal of Applied Behavioral Science 37, no. 2 (June 2001), pp. 125–153. Figure 2–1 © 2005 Prentice Hall Inc. All rights reserved. 2–49  California State University, Fresno: Complaint Form for Filing a Complaint of Harassment or Discrimination Source: California State University, Fresno. Figure 2–2 © 2005 Prentice Hall Inc. All rights reserved. 2–50  Early Court Decisions Regarding Equal Employment Opportunity  Griggs v. Duke Power Company – Discrimination by the employer need not be overt; employer’s intent is irrelevant. – An employment practice must be job related and valid if it has an unequal impact on members of a protected class. – The burden of proof is on the employer to show that the employment practice is job related. – Business necessity is the employer’s defense for any practice that has adverse impact. © 2005 Prentice Hall Inc. All rights reserved. 2–51  Early Court Decisions Regarding Equal Employment Opportunity (cont’d)  Albemarle Paper Company v. Moody – If an employer uses a test to screen candidates, then the job’s specific duties and responsibilities must be carefully analyzed and documented. – The performance standards for employees on the job in question should be clear and unambiguous. – EEOC (now federal) guidelines on validation are to be used for validating employment practices. © 2005 Prentice Hall Inc. All rights reserved. 2–52  Equal Employment Opportunity 1991–present  Civil Rights Act of 1991 (CRA) – It places burden of proof back on employers once the plaintiff has made a prima facie case and permits compensatory and punitive damages.  Disparate impact – A practice or policy that has a greater adverse impact on the members of a protected group than on other employees, regardless of intent.  Disparate treatment – Intentional discrimination on the part of the employer. © 2005 Prentice Hall Inc. All rights reserved. 2–53  Equal Employment Opportunity 1991–present  Desert Palace Inc. vs. Costa. – Mixed motive: an employer cannot avoid liability by proving it would have taken the same action even without the discriminatory motive. – Workers do not have to provide evidence of explicitly discriminatory conduct (such as discriminatory employer statements), but could provide circumstantial evidence (such as lowered performance evaluations). © 2005 Prentice Hall Inc. All rights reserved. 2–54  Americans with Disabilities Act (ADA)  ADA of 1990 – Requires employers to make reasonable accommodations for disabled employees; it prohibits discrimination against disabled persons.  Disability – A physical or mental impairment that substantially limits one or more major life activities. Excludes homosexuality, bisexuality, voyeurism, compulsive gambling, pyromania, and disorders resulting from the current illegal use of drugs. © 2005 Prentice Hall Inc. All rights reserved. 2–55  ADA and Individuals  Qualified individuals – Under ADA, those who can carry out the essential functions of the job.  Reasonable accommodation – If the individual can’t perform the job as currently structured, the employer must make a ―reasonable accommodation‖ unless doing so would present an ―undue hardship.‖ © 2005 Prentice Hall Inc. All rights reserved. 2–56  Employer Obligations under ADA  An employer must make a reasonable accommodation for a qualified disabled individual unless doing so would result in undue hardship.  Employers are not required to lower existing performance standards or stop using tests for a job.  Employers may ask pre-employment questions about essential job functions but can not make inquiries about disability.  Medical exams (or testing) for current employees must be job- related.  Employers should review job application forms, interview procedures, and job descriptions for illegal questions and statements.  Employers should have up-to-date job descriptions that identify the current essential functions of the job. © 2005 Prentice Hall Inc. All rights reserved. 2–57  Disabilities and ADA  Courts will tend to define ―disabilities‖ quite narrowly.  Employers are not required to tolerate misconduct or erratic performance even if the behaviors can be attributed to the disability.  Employers do not have create a new job for the disabled worker nor reassign that person to a light- duty position for an indefinite period, unless such a position exists.  Employers should not treat employees as if they are disabled so that they will not ―regarded as‖ disabled and protected under the ADA. © 2005 Prentice Hall Inc. All rights reserved. 2–58  State and Local Equal Employment Opportunity Laws  The effect of the state and local laws is usually to further restrict employers’ treatment of job applicants and employees. – State and local laws cannot conflict with federal law but can extend coverage to additional protected groups. – The EEOC can defer a discrimination charge to state and local agencies that have comparable jurisdiction. © 2005 Prentice Hall Inc. All rights reserved. 2–59  Important Equal Employment Opportunity Actions Note: The actual laws (and others) can be accessed at: http://www.legal.gsa.gov/legal(#1)fcd.htm. Table 2–2 © 2005 Prentice Hall Inc. All rights reserved. 2–60  Important Equal Employment Opportunity Actions Table 2–2 (cont’d) Note: The actual laws (and others) can be accessed at: http://www.legal.gsa.gov/legal(#1)fcd.htm. © 2005 Prentice Hall Inc. All rights reserved. 2–61  Sources of Discrimination Allegations  Disparate treatment – Intentional discrimination where an employer treats an individual differently because that individual is a member of a particular race, religion, gender, or ethnic group.  Disparate impact – An apparently neutral employment practice that creates an adverse impact—a significant disparity—between the proportion of minorities in the available labor pool and the proportion hired. © 2005 Prentice Hall Inc. All rights reserved. 2–62  Adverse Impact  Adverse impact – The overall impact of employer practices that result in significantly higher percentages of members of minorities and other protected groups being rejected for employment, placement, or promotion. – Used to help establish a prima facie case of discrimination. © 2005 Prentice Hall Inc. All rights reserved. 2–63  Showing Adverse Impact  Disparate rejection rates – A test that demonstrates that there is a discrepancy between rates of rejection of members of a protected group and of others.  Four-fifths rule of thumb – If the protected group’s hiring rate is less than eighty percent (80%) of the majority group, then a prima facie case for discrimination is indicated. © 2005 Prentice Hall Inc. All rights reserved. 2–64  Showing Adverse Impact (cont’d)  Restricted policy – An employer’s hiring practices exclude a protected group—whether intentionally or not.  Population comparisons – A comparison of the percentage of a minority/ protected group and white workers in the organization with the percentage of corresponding groups in the relevant labor market. © 2005 Prentice Hall Inc. All rights reserved. 2–65  Showing Adverse Impact (cont’d)  McDonnell-Douglas test – A test for disparate (intentional) treatment situations in which the applicant was qualified but the employer rejected the person and continued seeking applicants.  Conditions for applying McDonnell-Douglas – The person belongs to a protected class. – The person applied and was qualified for the job. – The person was rejected despite qualification. – After rejection, the position remained open and the employer continued seeking applications from persons with the complainant’s qualifications. © 2005 Prentice Hall Inc. All rights reserved. 2–66  Bona Fide Occupational Qualification  Bona fide occupational qualification (BFOQ) – Requirement that an employee be of a certain religion, sex, or national origin where that is reasonably necessary to the organization’s normal operation. Specified by the 1964 Civil Rights Act. Age Religion Gender National Origin © 2005 Prentice Hall Inc. All rights reserved. 2–67  Business Necessity  ―Business necessity‖ – A defense created by the courts that requires employers show that there is an overriding business purpose (i.e., ―irresistible demand‖) for a discriminatory practice. Spurlock v. United Airlines  Validity – The degree to which the test or other employment practice is related to or predicts performance on the job. © 2005 Prentice Hall Inc. All rights reserved. 2–68  Other Considerations in Discriminatory Practice Defenses  Good intentions are no excuse.  Employers cannot hide behind collective bargaining agreements—equal opportunity laws override union contract agreements.  If a personnel practice is discriminatory, firms should react by agreeing to eliminate the illegal practice and (when required) by compensating the people discriminated against. © 2005 Prentice Hall Inc. All rights reserved. 2–69  Discriminatory Employment Practices  Recruitment  Selection – Word of Mouth – Educational – Misleading Information Requirements – Help Wanted Ads – Preference to Relatives – Height, Weight, and  Personal Appearance Physical Characteristics – Dress – Arrest Records – Hair – Application Forms – Uniforms – Discharge Due to Garnishment © 2005 Prentice Hall Inc. All rights reserved. 2–70  Questions to Ask When an Employer Receives Notice That EEOC has Filed a Bias Claim 1. Exactly what is the charge and is your company covered by the relevant statutes? 2. What protected group does the employee belong to? Is the EEOC claiming disparate impact or disparate treatment? 3. Are there any obvious bases upon which you can challenge and/or rebut the claim? 4. If it is a sexual harassment claim, are there offensive comments, calendars, posters, screensavers, and so on, on display in the company? 5. Who are the supervisors who actually took the allegedly discriminatory actions and how effective will they be as potential witnesses? Sources: Fair Employment Practices Summary of Latest Developments, January 7, 1983, p. 3, Bureau of National Affairs, Inc. (800-372-1033); Kenneth Sovereign, Personnel Law (Upper Saddle River, NJ: Prentice Hall, 1994), pp. 36–37;―EEOC Investigations—What an Employer Should Know,‖ Equal Employment Figure 2–3 Opportunity Commission (http://www.eoc.gov/small/investigations.html), July 18, 2003. © 2005 Prentice Hall Inc. All rights reserved. 2–71  and and Note: Parties may settle at any time. The EEOC Charge-Filing Process Figure 2–4 Source: Based on information in www.eeoc.gov/index.html. © 2005 Prentice Hall Inc. All rights reserved. 2–72  The EEOC Enforcement Process  Processing a charge – A claim must be filed in writing within two years after the alleged incident took place. – After a charge is filed, the EEOC has 10 days to serve notice on the employer. – The EEOC has 120 days to investigate and to make a reasonable cause determination and attempt conciliation or dismiss the charge and issue a Notice of Right to Sue to the filing party who then has 90 days to file suit on their own. – If conciliation fails, the EEOC can bring a civil suit in a federal district court. © 2005 Prentice Hall Inc. All rights reserved. 2–73  The EEOC Enforcement Process (cont’d)  Conciliation proceedings – The EEOC has 30 days to work out a conciliation agreement between the parties before bringing suit. – The EEOC conciliator meets with the employee to determine what remedy would be satisfactory and then tries to persuade the employer to accept it. – If both parties accept the remedy, they sign and submit a conciliation agreement to the EEOC for approval. © 2005 Prentice Hall Inc. All rights reserved. 2–74  How to Respond to Employment Discrimination Charges  The EEOC investigation – Provide a position statement in your defense that demonstrates a lack of merit of the charge – Furnish only information requested by the EEOC. – Obtain as much information as possible about the charging party’s claim. © 2005 Prentice Hall Inc. All rights reserved. 2–75  How to Respond to Employment Discrimination Charges (cont’d)  The fact-finding conference – EEOC notes are the only official record of the conference. – EEOC discourages the employer’s lawyers from attending the conference. – Conferences occur soon after the charge is filed. – Witnesses’ statements can be used as admissions against the employer’s interests. © 2005 Prentice Hall Inc. All rights reserved. 2–76  How to Respond to Employment Discrimination Charges (cont’d)  EEOC determination and attempted conciliation – The investigator’s recommendation is often the determining factor in finding cause, so be courteous and cooperative (within limits). – If there is a finding of cause, review the finding very carefully; point out inaccuracies. – Do not accept conciliation, wait for the lawsuit. – In a no-cause finding, the charging party gets a Notice of Right to Sue letter, and has 90 days to bring a lawsuit. © 2005 Prentice Hall Inc. All rights reserved. 2–77  Mandatory Arbitration of Discrimination Claims  Gilmer v. Interstate/Johnson Lane Corp. – An agreement, entered into for mandatory arbitration of all employment-related disputes, can require the employee to arbitrate claims arising under the Age Discrimination in Employment Act.  Recommendations – Employers should consider asking that the party be compelled to arbitrate the claim. – Employers should consider inserting a mandatory arbitration clause in their employment applications or employee handbooks. – Employers can forestall an appeal and protect against arbitrator bias by allowing the arbitrator to afford a claimant broad relief and allow for reasonable fact finding. © 2005 Prentice Hall Inc. All rights reserved. 2–78  Diversity Management  Managing diversity – Provide strong leadership. – Assess the situation. – Provide diversity training and education. – Change culture and management systems. – Evaluate the diversity management program.  Boosting workforce diversity – Adopt strong company policies advocating the benefits of a culturally, racially, and sexually diverse workforce. – Take concrete steps to foster diversity at work. © 2005 Prentice Hall Inc. All rights reserved. 2–79  Is the Diversity Initiative Effective?  Are there women and minorities reporting directly to senior managers?  Do women and minorities have a fair share of job assignments that are steppingstones to successful careers in the company?  Do women and minorities have equal access to international assignments?  Are female and minority candidates in the company’s career development pipeline?  Are turnover rates for female and minority managers the same or lower than those for white male managers? © 2005 Prentice Hall Inc. All rights reserved. 2–80  Equal Employment Opportunity Versus Affirmative Action  Equal employment opportunity – Aims to ensure that anyone, regardless of race, color, disability, sex, religion, national origin, or age, has an equal chance for a job based on his or her qualifications.  Affirmative action – Requires the employer to make an extra effort to hire and promote those in a protected group that results in measurable, yearly improvements in hiring, training, and promotion of minorities and females in all parts of the organization. © 2005 Prentice Hall Inc. All rights reserved. 2–81  Differences Between Managing Diversity and Meeting Affirmative Action Requirements Practicing Diversity to Meet EEO/ Managing Diversity Affirmative Action Requirements Is voluntary Is often mandatory Focuses on productivity Focuses on legal, social, moral justifications Includes all elements of Includes only race, gender, and diversity ethnicity Emphasizes changing systems Emphasizes changing the mix of and operations people Offers a perception of equity Offers a perception of preference Is long term and ongoing Is short term and limited Is grounded in individuality Is grounded in assimilation Source: National Institutes of Health. Figure 2–5 © 2005 Prentice Hall Inc. All rights reserved. 2–82  Steps in an Affirmative Action Program 1. Issues a written equal employment policy. 2. Appoints a top official to direct and implement the program. 3. Publicizes the equal employment policy and affirmative action commitment. 4. Surveys minority and female employment to determine where affirmative action programs are especially desirable. 5. Develops goals and timetables to improve utilization of minorities, males, and females. 6. Develops and implements specific programs to achieve these goals. 7. Establishes an audit and reporting system to monitor and evaluate progress of the program. 8. Develops support for the affirmative action program, both inside the company and in the community. © 2005 Prentice Hall Inc. All rights reserved. 2–83  Designing an Affirmative Action Program  Good faith effort strategy – Aimed at changing practices that contributed to excluding or underutilizing protected groups. Increasing the minority or female applicant flow. Demonstrating top-management support for the equal employment policy. Demonstrating equal employment commitment to the local community. Keeping employees informed about the specifics of the affirmative action program. Broadening the work skills of incumbent employees. Institutionalizing the equal employment policy to encourage supervisors’ support of it. © 2005 Prentice Hall Inc. All rights reserved. 2–84  Reverse Discrimination  Reverse discrimination – A claim that due to affirmative action quota systems, white males are discriminated against. Supreme Court’s June 2003 affirmative action decision outlawed the University of Michigan’s quota-based admissions program.  Reverse discrimination cases – Bakke v. Regents of the University of California (1978): Race can be a factor, but not be the deciding factor (no quotas). – Wygant v. Jackson Board of Education (1986): No preferential treatment of minorities in layoffs. © 2005 Prentice Hall Inc. All rights reserved. 2–85  Reverse Discrimination (cont’d)  Reverse discrimination cases (cont’d) – International Association of Firefighters v. City of Cleveland (1986): Quotas for promotions upheld. – U.S. v. Paradise (1987): Quotas upheld to remedy serious cases of racial discrimination. – Johnson v. Transportation Agency, Santa Clara County (1987): Voluntarily adopted affirmative action goals and programs upheld. © 2005 Prentice Hall Inc. All rights reserved. 2–86  Recruiting Minorities Online  Diversity candidate Web sites with job banks – African American Network – National Action Council of Minorities in Engineering – National Urban League – Hispanic Online – Latino Web – Society of Hispanic Engineers – Gay.com – Association for Women in Science – Minorities Job Bank. © 2005 Prentice Hall Inc. All rights reserved. 2–87  Key Terms Title VII of the 1964 Civil Rights Act protected class Equal Employment Opportunity Civil Rights Act of 1991 (CRA 1991) Commission (EEOC) mixed motive affirmative action Americans with Disabilities Act Office of Federal Contract (ADA) Compliance Programs (OFCCP) qualified individuals Equal Pay Act of 1963 adverse impact Age Discrimination in Employment Act disparate rejection rates of 1967 (ADEA) restricted policy Vocational Rehabilitation Act of 1973 bona fide occupational qualification Vietnam Era Veterans’ Readjustment (BFOQ) Act of 1974 alternative dispute resolution or Pregnancy Discrimination Act (PDA) ADR program uniform guidelines good faith effort strategy sexual harassment reverse discrimination Federal Violence Against Women Act of 1994 © 2005 Prentice Hall Inc. All rights reserved. 2–88  Gary Dessler tenth edition Chapter 3 Part 1 Introduction Strategic Human Resource Management and the HR Scorecard © 2005 Prentice Hall Inc. PowerPoint Presentation by Charlie Cook All rights reserved. The University of West Alabama After studying this chapter, you should be able to: 1. Outline the steps in the strategic management process. 2. Explain and give examples of each type of companywide and competitive strategy. 3. Explain what a high performance work system is and why it is important. 4. Illustrate and explain each of the seven steps in the HR Scorecard approach to creating HR systems. © 2005 Prentice Hall Inc. All rights reserved. 3–90  HR’s Strategic Challenges  Strategic plan – A 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.  Three basic challenges – The need to support corporate productivity and performance improvement efforts. – That employees play an expanded role in employers’ performance improvement efforts. – HR must be more involved in designing—not just executing—the company’s strategic plan. © 2005 Prentice Hall Inc. All rights reserved. 3–91  The Strategic Management Process  Strategic management – The process of identifying and executing the organization’s mission by matching its capabilities with the demands of its environment.  Strategy – A strategy is a course of action. – The 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. © 2005 Prentice Hall Inc. All rights reserved. 3–92  Business Mission and Its Vision  Vision – A general statement of its intended direction that evokes emotional feelings in organization members.  Mission – Spells out who the company is, what it does, and where it’s headed. © 2005 Prentice Hall Inc. All rights reserved. 3–93  Strategic Management Process (cont’d)  Strategic management tasks – Step 1: Define the Business and Its Mission – Step 2: Perform External and Internal Audits – Step 3: Translate the Mission into Strategic Goals – Step 4: Formulate a Strategy to Achieve the Strategic Goals – Step 5: Implement the Strategy – Step 6: Evaluate Performance © 2005 Prentice Hall Inc. All rights reserved. 3–94  Overview of Strategic Management Figure 3–1 © 2005 Prentice Hall Inc. All rights reserved. 3–95  A SWOT Chart SWOT Analysis The use of a SWOT chart to compile and organize the process of identifying company Strengths, Weaknesses, Opportunities, and Threats. Figure 3–2 © 2005 Prentice Hall Inc. All rights reserved. 3–96  Strategies in Brief Company Strategic Principle Dell Be direct eBay Focus on trading communities General Electric Be number one or number two in every industry in which we compete, or get out Southwest Airlines Meet customers’ short-haul travel needs at fares competitive with the cost of automobile travel Vanguard Unmatchable value for the investor-owner Wal-Mart Low prices, every day Source: Arit Gadiesh and James Gilbert, ―Frontline Action,‖ Harvard Business Review, May 2001, p. 74. Figure 3–3 © 2005 Prentice Hall Inc. All rights reserved. 3–97  Types of Strategic Planning  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. Diversification strategy implies that the firm will expand by adding new product lines. Vertical integration strategy means the firm expands by, perhaps, producing its own raw materials, or selling its products direct. Consolidation strategy reduces the company’s size Geographic expansion strategy takes the company abroad. © 2005 Prentice Hall Inc. All rights reserved. 3–98  Types of Strategic Planning (cont’d)  Business-level/competitive strategy – Identifies how to build and strengthen the business’s long-term competitive position in the marketplace. Cost leadership: the enterprise aims to become the low-cost leader in an industry. Differentiation: a firm seeks to be unique in its industry along dimensions that are widely valued by buyers. Focus: a firm seeks to carve out a market niche, and compete by providing a product or service customers can get in no other way. © 2005 Prentice Hall Inc. All rights reserved. 3–99  Types of Strategic Planning (cont’d)  Functional strategies – Identify the basic courses of action that each department will pursue in order to help the business attain its competitive goals. © 2005 Prentice Hall Inc. All rights reserved. 3–100  Relationships Among Strategies in Multiple- Business Firms Figure 3–4 © 2005 Prentice Hall Inc. All rights reserved. 3–101  Achieving Strategic Fit  Michael Porter – Emphasizes the ―fit‖ point of view that all of the firm’s activities must be tailored to or fit its strategy, by ensuring that the firm’s functional strategies support its corporate and competitive strategies.  Gary Hamel and C. K. Prahalad – Argue for ―stretch‖ in leveraging resources— supplementing what you have and doing more with what you have—can be more important than just fitting the strategic plan to current resources. © 2005 Prentice Hall Inc. All rights reserved. 3–102  The Southwest Airlines’ Activity System Source: Reprinted by permission of Harvard Business Review. From ―What is Strategy?‖ by Michael E. Porter, Figure 3–5 November–December 1996. Copyright © 1996 by the President and Fellows of Harvard College, all rights reserved. © 2005 Prentice Hall Inc. All rights reserved. 3–103  HR and Competitive Advantage  Competitive advantage – Any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share. – Superior human resources are an important source of competitive advantage © 2005 Prentice Hall Inc. All rights reserved. 3–104  Strategic Human Resource Management  Strategic Human Resource Management – The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. – Formulating and executing HR systems—HR policies and activities—that produce the employee competencies and behaviors the company needs to achieve its strategic aims. © 2005 Prentice Hall Inc. All rights reserved. 3–105  Linking Corporate and HR Strategies Source: © 2003, Gary Dessler, Ph.D. Figure 3–6 © 2005 Prentice Hall Inc. All rights reserved. 3–106  HR’S Strategic Roles  HR professionals should be part of the firm’s strategic planning executive team. – Identify the human issues that are vital to business strategy. – Help establish and execute strategy. – Provide alternative insights. – Are centrally involved in creating responsive and market-driven organizations. – Conceptualize and execute organizational change. © 2005 Prentice Hall Inc. All rights reserved. 3–107  HR Involvement in Mergers Source: Jeffrey Schmidt, ―The Correct Spelling of M & A Begins with HR,‖ HR Magazine, June 2001, p. 105. Figure 3–7 © 2005 Prentice Hall Inc. All rights reserved. 3–108  HR’s Strategy Execution Role  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. © 2005 Prentice Hall Inc. All rights reserved. 3–109  HR’s Strategy Formulation Role  HR helps top management formulate strategy in a variety of ways by. – Supplying competitive intelligence that may be useful in the strategic planning process. – Supplying information regarding the company’s internal human strengths and weaknesses. – Build a persuasive case that shows how—in specific and measurable terms—the firm’s HR activities can and do contribute to creating value for the company. © 2005 Prentice Hall Inc. All rights reserved. 3–110  Creating a Strategy-oriented HR System  Components of the HR process – HR professionals who have strategic and other skills – HR policies and activities that comprise the HR system itself – Employee behaviors and competencies that the company’s strategy requires. © 2005 Prentice Hall Inc. All rights reserved. 3–111  The Basic Architecture of HR Source: Adapted from Brian Becker et al., The HR Scorecard: Linking People, Figure 3–8 Strategy, and Performance (Boston: Harvard Business School Press, 2001), p. 12. © 2005 Prentice Hall Inc. All rights reserved. 3–112  The High-Performance Work System  High-performance work system (HPWS) practices. – High-involvement employee practices (such as job enrichment and team-based organizations), – High commitment work practices (such as improved employee development, communications, and disciplinary practices) – Flexible work assignments. – Other practices include those that foster skilled workforces and expanded opportunities to use those skills. © 2005 Prentice Hall Inc. All rights reserved. 3–113  Translating Strategy into HR Policy and Practice Basic Model of How to Align HR Strategy and Actions with Business Strategy Source: Adapted from Garrett Walker and J. Randal MacDonald, ―Designing and Implementing an HR Scorecard,‖ Human Resources Management 40, no. 4 (2001), p. 370. Figure 3–9 © 2005 Prentice Hall Inc. All rights reserved. 3–114  The HR Scorecard Approach  HR scorecard – Measures the HR function’s effectiveness and efficiency in producing employee behaviors needed to achieve the company’s strategic goals.  Creating an HR scorecard – Must know what the company’s strategy is. – Must understand the causal links between HR activities, employee behaviors, organizational outcomes, and the organization’s performance. – Must have metrics to measure all the activities and results involved. © 2005 Prentice Hall Inc. All rights reserved. 3–115  Strategic HR Relationships Strategically Emergent Achieve HR Relevant Organizational Employee Strategic Activities Organizational Performance Behaviors Goals Outcomes Figure 3–10 © 2005 Prentice Hall Inc. All rights reserved. 3–116  The HR Scorecard Approach to Formulating HR Policies, Activities, and Strategies Figure 3–11 Source: Copyright © Gary Dessler, Ph.D. © 2005 Prentice Hall Inc. All rights reserved. 3–117  Using the HR Scorecard Approach  Step 1: Define the Business Strategy  Step 2: Outline the Company’s Value Chain  Step 3: Identify the Strategically Required Organizational Outcomes  Step 4: Identify the Required Workforce Competencies 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 Measurement System © 2005 Prentice Hall Inc. All rights reserved. 3–118  Outlining the Company’s Value Chain  Value chain analysis – A tool for identifying, isolating, visualizing, and analyzing the firm’s most important activities and strategic costs. – Identifying the primary and crucial activities that create value for customers and the related support activities. Each activity is part of the process of designing, producing, marketing, and delivering the company’s product or service. – Shows the chain of essential activities. – Prompts future questions. © 2005 Prentice Hall Inc. All rights reserved. 3–119 Simple Value Chain for ―the Hotel Paris‖ Figure 3–12 Source: Copyright © Gary Dessler, Ph.D. © 2005 Prentice Hall Inc. All rights reserved. 3–120  HR Scorecard for the Hotel Paris International Corporation* Note:*(An abbreviated example showing selected HR practices and outcomes aimed at implementing the competitive strategy, ―To use superior guest services to differentiate the Hotel Paris properties and thus increase the length of stays and the return rate of guests, and thus boost revenues and profitability‖). Figure 3–13 © 2005 Prentice Hall Inc. All rights reserved. 3–121  Key Terms competitive advantage strategic management HR Scorecard strategic plan leveraging strategy metrics SWOT analysis mission strategic control value chain analysis strategic human resource vision manager © 2005 Prentice Hall Inc. All rights reserved. 3–122  Gary Dessler tenth edition Chapter 4 Part 2 Recruitment and Placement Job Analysis © 2005 Prentice Hall Inc. PowerPoint Presentation by Charlie Cook All rights reserved. The University of West Alabama After studying this chapter, you should be able to: 1. Discuss the nature of job analysis, including what it is and how it’s used. 2. Use at least three methods of collecting job analysis information, including interviews, questionnaires, and observation. 3. Write job descriptions, including summaries and job functions, using the Internet and traditional methods. 4. Write job specifications using the Internet as well as your judgment. 5. Explain job analysis in a ―jobless‖ world, including what it means and how it’s done in practice. © 2005 Prentice Hall Inc. All rights reserved. 4–124  The Nature of Job Analysis  Job analysis – The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it.  Job description – A list of a job’s duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities—one product of a job analysis.  Job specifications – A list of a job’s ―human requirements,‖ that is, the requisite education, skills, personality, and so on— another product of a job analysis. © 2005 Prentice Hall Inc. All rights reserved. 4–125  Types of Information Collected  Work activities  Human behaviors  Machines, tools, equipment, and work aids  Performance standards  Job context  Human requirements © 2005 Prentice Hall Inc. All rights reserved. 4–126  Uses of Job Analysis Information  Recruitment and Selection  Compensation  Performance Appraisal  Training  Discovering Unassigned Duties  EEO Compliance © 2005 Prentice Hall Inc. All rights reserved. 4–127  Uses of Job Analysis Information Figure 4–1 © 2005 Prentice Hall Inc. All rights reserved. 4–128  Steps in Job Analysis  Step 1: Decide how you’ll use the information.  Step 2: Review relevant background information.  Step 3: Select representative positions.  Step 4: Actually analyze the job.  Step 5: Verify the job analysis information.  Step 6: Develop a job description and job specification. © 2005 Prentice Hall Inc. All rights reserved. 4–129  Charting the Organization  Organization chart – A chart that shows the organizationwide distribution of work, with titles of each position and interconnecting lines that show who reports to and communicates to whom.  Process chart – A work flow chart that shows the flow of inputs to and outputs from a particular job. © 2005 Prentice Hall Inc. All rights reserved. 4–130  Process Chart for Analyzing a Job’s Workflow Figure 4–2 © 2005 Prentice Hall Inc. All rights reserved. 4–131  Methods of Collecting Job Analysis Information: The Interview  Information sources  Interview formats – Individual employees – Structured (Checklist) – Groups of employees – Unstructured – Supervisors with knowledge of the job  Advantages – Quick, direct way to find overlooked information.  Disadvantages – Distorted information © 2005 Prentice Hall Inc. All rights reserved. 4–132  Interview Guidelines  The job analyst and supervisor should work together to identify the workers who know the job best.  Quickly establish rapport with the interviewee.  Follow a structured guide or checklist, one that lists open-ended questions and provides space for answers.  Ask the worker to list his or her duties in order of importance and frequency of occurrence.  After completing the interview, review and verify the data. © 2005 Prentice Hall Inc. All rights reserved. 4–133  Methods of Collecting Job Analysis Information: Questionnaires  Information source  Advantages – Have employees fill out – Quick and efficient way questionnaires to to gather information describe their job- from large numbers of related duties and employees responsibilities.  Disadvantages  Questionnaire formats – Expense and time – Structured checklists consumed in preparing – Opened-ended and testing the questions questionnaire © 2005 Prentice Hall Inc. All rights reserved. 4–134  Methods of Collecting Job Analysis Information: Observation  Information source  Advantages – Observing and noting – Provides first-hand the physical activities information of employees as they – Reduces distortion of go about their jobs. information  Disadvantages – Time consuming – Difficulty in capturing entire job cycle – Of little use if job involves a high level of mental activity. © 2005 Prentice Hall Inc. All rights reserved. 4–135  Methods of Collecting Job Analysis Information: Participant Diary/Logs  Information source  Advantages – Workers keep a – Produces a more chronological diary/ log complete picture of the of what they do and job the time spent in each – Employee participation activity.  Disadvantages – Distortion of information – Depends upon employees to accurately recall their activities © 2005 Prentice Hall Inc. All rights reserved. 4–136  Quantitative Job Analysis Techniques  The position analysis questionnaire (PAQ) – A questionnaire used to collect quantifiable data concerning the duties and responsibilities of various jobs.  The Department of Labor (DOL) procedure – A standardized method by which different jobs can be quantitatively rated, classified, and compared.  Functional job analysis – Takes into account the extent to which instructions, reasoning, judgment, and mathematical and verbal ability are necessary for performing job tasks. © 2005 Prentice Hall Inc. All rights reserved. 4–137  Sample Report Based on Department of Labor Job Analysis Technique Figure 4–6 © 2005 Prentice Hall Inc. All rights reserved. 4–138  Writing Job Descriptions  A job description – A written statement of what the worker actually does, how he or she does it, and what the job’s working conditions are.  Sections of a typical job description – Job identification – Job summary – Responsibilities and duties – Authority of incumbent – Standards of performance – Working conditions – Job specifications © 2005 Prentice Hall Inc. All rights reserved. 4–139  Sample Job Description, Pearson Education Source: Courtesy of HR Department, Pearson Education. Figure 4–7a © 2005 Prentice Hall Inc. All rights reserved. 4–140  Sample Job Description, Pearson Education Source: Courtesy of HR Department, Pearson Education. Figure 4–7b © 2005 Prentice Hall Inc. All rights reserved. 4–141  ―Marketing Manager‖ Description from Standard Occupational Classification 20. 11-2021 Marketing Managers Abstract: 11-2021 Marketing Managers. Determine the demand for products and services offered by a firm and Its competitors and identify potential customers. Develop pricing strategies with the goal of maximizing the firm’s profits or share of the market while ensuring the firm’s customers are satisfied. Source: www.bis.gov, accessed November 13, 2003. Figure 4–8 © 2005 Prentice Hall Inc. All rights reserved. 4–142  The Job Description  Job identification – Job title: name of job – FLSA status section: Exempt or nonexempt – Preparation date: when the description was written – Prepared by: who wrote the description  Job summary – Describes the general nature of the job – Lists the major functions or activities © 2005 Prentice Hall Inc. All rights reserved. 4–143  The Job Description (cont’d)  Relationships (chain of command) – Reports to: employee’s immediate supervisor – Supervises: employees that the job incumbent directly supervises – Works with: others with whom the job holder will be expected to work and come into contact with internally. – Outside the company: others with whom the job holder is expected to work and come into contact with externally. © 2005 Prentice Hall Inc. All rights reserved. 4–144  The Job Description (cont’d)  Responsibilities and duties – A listing of the job’s major responsibilities and duties (essential functions) – Defines limits of jobholder’s decision-making authority, direct supervision, and budgetary limitations.  Standard Occupational Classification – Classifies all workers into one of 23 major groups of jobs which are subdivided into 96 minor groups of jobs and detailed occupations. © 2005 Prentice Hall Inc. All rights reserved. 4–145  SOC’s Major Groups of Jobs Note: Within these major groups are 96 minor groups, 449 broad occupations, and 821 detailed occupations. Table 4–2 © 2005 Prentice Hall Inc. All rights reserved. 4–146  Is the Job Function Essential?  What three or four main activities actually constitute the job? Is each really necessary?  What is the relationship between each task? Is there a special sequence which the tasks must follow?  Do the tasks necessitate sitting, standing, crawling, walking, climbing, running, stooping, kneeling, lifting, carrying, digging, writing, operating, pushing, pulling, fingering, talking, listening, interpreting, analyzing, seeing, coordinating, etc.?  How many employees are available to perform the job function? Can the job function be distributed among other employees?  How much time is spent on the job performing each particular function? Are infrequent tasks less important to success?  Would removing a function fundamentally alter the job? © 2005 Prentice Hall Inc. All rights reserved. 4–147  Is the Job Function Essential? (cont’d)  What happens if a task is not completed on time?  Does the position exist to perform that function?  Are employees in the position actually required to perform the function?  Is there a limited number of other employees available to perform the function?  What is the degree of expertise or skill required to perform the function?  What is the actual work experience of present or past employees in the job?  What is the amount of time an individual actually spends performing the function?  What are the consequences of not requiring the performance of the function? © 2005 Prentice Hall Inc. All rights reserved. 4–148  The Job Description (cont’d)  Standards of performance and working conditions – Lists the standards the employee is expected to achieve under each of the job description’s main duties and responsibilities. © 2005 Prentice Hall Inc. All rights reserved. 4–149  Writing Job Specifications  Specifications for trained personnel – Focus on traits like length of previous service, quality of relevant training, and previous job performance.  Specifications for untrained personnel – Focus on physical traits, personality, interests, or sensory skills that imply some potential for performing or for being trained to do the job. © 2005 Prentice Hall Inc. All rights reserved. 4–150  Writing Job Specifications (cont’d)  Specifications Based on Judgment – Self-created judgments (common sense) – List of competencies in Web-based job descriptions (e.g., www.jobdescription.com) – O*NET online – Standard Occupational Classification  Specifications Based on Statistical Analysis – Attempts to determine statistically the relationship between a predictor or human trait and an indicator or criterion of job effectiveness. © 2005 Prentice Hall Inc. All rights reserved. 4–151  Writing Job Specifications (cont’d)  Steps in the Statistical Approach – Analyze the job and decide how to measure job performance. – Select personal traits that you believe should predict successful performance. – Test candidates for these traits. – Measure the candidates’ subsequent job performance. – Statistically analyze the relationship between the human trait and job performance. © 2005 Prentice Hall Inc. All rights reserved. 4–152  Writing Job Descriptions  Step 1. Decide on a Plan  Step 2. Develop an Organization Chart  Step 3. Use a Job Analysis/Description Questionnaire  Step 4. Obtain Lists of Job Duties from O*NET  Step 5. Compile the Job’s Human Requirements from O*NET  Step 6. Complete Your Job Description © 2005 Prentice Hall Inc. All rights reserved. 4–153  Job Analysis in a ―Jobless‖ World  Job – Generally defined as ―a set of closely related activities carried out for pay.‖ © 2005 Prentice Hall Inc. All rights reserved. 4–154  From Specialized to Enlarged Jobs  Job enlargement – Assigning workers additional same level activities, thus increasing the number of activities they perform.  Job enrichment – Redesigning jobs in a way that increases the opportunities for the worker to experience feelings of responsibility, achievement, growth, and recognition. © 2005 Prentice Hall Inc. All rights reserved. 4–155  From Specialized to Enlarged Jobs (cont’d)  Job rotation – Moving a trainee from department to department to broaden his or her experience and identify strong and weak points to prepare the person for an enhanced role with the company – Systematically moving workers from one job to another to enhance work team performance. © 2005 Prentice Hall Inc. All rights reserved. 4–156  Why Managers Are Dejobbing Their Companies  Dejobbing  External factors leading – Broadening the to dejobbing. responsibilities of the – Rapid product and company’s jobs technological change – Encouraging employee – Global competition initiative. – Deregulation,  Internal factors leading – Political instability, to dejobbing – Demographic changes – Flatter organizations – Rise of a service – Work teams economy. © 2005 Prentice Hall Inc. All rights reserved. 4–157  Competency-Based Job Analysis  Competencies – Demonstrable characteristics of a person that enable performance of a job.  Competency-based job analysis – Describing a job in terms of the measurable, observable, behavioral competencies (knowledge, skills, and/or behaviors) an employee must exhibit to do a job well. © 2005 Prentice Hall Inc. All rights reserved. 4–158  Why Use Competency Analysis?  To support HPWS – Traditional job descriptions (with their lists of specific duties) may actually backfire if a high- performance work system is the goal.  Maintain a strategic focus – Describing the job in terms of the skills, knowledge, and competencies the worker needs is more strategic.  Measuring performance – Measurable skills, knowledge, and competencies are the heart of any company’s performance management process. © 2005 Prentice Hall Inc. All rights reserved. 4–159  Performance Management  Performance management – Managing all elements of the organizational process that affect how well employees perform.  Types of competencies – General competencies reading, writing, and mathematical reasoning. – Leadership competencies leadership, strategic thinking, and teaching others. – Technical competencies specific technical competencies required for specific types of jobs and/or occupations. © 2005 Prentice Hall Inc. All rights reserved. 4–160  Background Data for Examples Example of Job Title: Customer Service Clerk Example of Job Summary: Answers inquiries and gives directions to customers, authorizes cashing of customers’ checks, records and returns lost charge cards, sorts and reviews new credit applications, works at customer service desk in department store. Example of One Job Duty: Authorizes cashing of checks: authorizes cashing of personal or payroll checks (up to a specified amount) by customers desiring to make payment by check. Requests identification—such as driver’s license—from customers and examines check to verify date, amount, signature, and endorsement. Initials check and sends customer to cashier. Figure 4–10 © 2005 Prentice Hall Inc. All rights reserved. 4–161 © 2005 Prentice Hall Inc. All rights reserved. 4–162 © 2005 Prentice Hall Inc. All rights reserved. 4–163 © 2005 Prentice Hall Inc. All rights reserved. 4–164  HR Scorecard for Hotel Paris International Corporation* Note: *(An abbreviated example showing selected HR practices and outcomes aimed at implementing the competitive strategy,― To use superior guest services to differentiate the Hotel Paris properties and thus increase the length of stays and the return rate of guests and thus boost revenues and profitability‖) Figure 4–11 © 2005 Prentice Hall Inc. All rights reserved. 4–165  The Skills Matrix for One Job at BP Note: The light blue boxes indicate the minimum level of skill required for the job. Figure 4–12 © 2005 Prentice Hall Inc. All rights reserved. 4–166  Key Terms job analysis Standard Occupational job description Classification (SOC) job specifications job enlargement organization chart job rotation process chart job enrichment diary/log dejobbing position analysis boundaryless organization questionnaire (PAQ) reengineering U.S. Department of Labor competencies (DOL) competency-based job job analysis procedure analysis functional job analysis performance management © 2005 Prentice Hall Inc. All rights reserved. 4–167  Gary Dessler tenth edition Chapter 5 Part 2 Recruitment and Placement Personnel Planning and Recruiting © 2005 Prentice Hall Inc. PowerPoint Presentation by Charlie Cook All rights reserved. The University of West Alabama After studying this chapter, you should be able to: 1. Explain the main techniques used in employment planning and forecasting. 2. List and discuss the main outside sources of candidates. 3. Effectively recruit job candidates. 4. Name and describe the main internal sources of candidates. 5. Develop a help wanted ad. 6. Explain how to recruit a more diverse workforce. © 2005 Prentice Hall Inc. All rights reserved. 5–169  The Recruitment and Selection Process 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. 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. © 2005 Prentice Hall Inc. All rights reserved. 5–170  Steps in Recruitment and Selection Process The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job. Figure 5–1 © 2005 Prentice Hall Inc. All rights reserved. 5–171  Planning and Forecasting  Employment or personnel planning – The process of decid