HR Mid Term + Final PDF

HR is responsible for ​ Compliance ​ Payroll ​ Recruiting ​ Benefits ​ Employee records ​ Onboarding ​ Company policies All this is essential to build a sustainable organization. EMPLOYEE LIFECYCLE STRATEGY ATTRACT - corporat...

HR is responsible for ​ Compliance ​ Payroll ​ Recruiting ​ Benefits ​ Employee records ​ Onboarding ​ Company policies All this is essential to build a sustainable organization. EMPLOYEE LIFECYCLE STRATEGY ATTRACT - corporate reputation. RECRUIT - be free of bias, diverse candidates. ONBOARD - understanding expectations, support and opportunities from the organization. LEARNING AND DEVELOPMENT REWARD, RECOGNITION AND BENEFITS PROGRESSION AND PERFORMANCE RETAIN/EXIT WHAT IS THE DIFFERENCE BETWEEN OB AND HRM? OB is about studying HOW people behave in the workplace, HRM is about managing people and their roles in the organization. OB ​ The goal is to improve organizational effectiveness by analyzing and influencing behaviors. HRM ​ The goal is to hire the right people Organizational behavior assumes that there is no “one best” approach to solve people’s issues. It is good in terms of: PROFIT TALENT RETENTION COSTS AND PRODUCTIVITY B = F(P+E) -> Behavior is a function of a person and his environment  -​ Lewin’s equation. EFFECTS OF WORKING IN AN UNHEALTHY WORK ENVIRONMENT ​ Lack of motivation in employees ​ Poor work-life balance ​ Slows down employee’s professional growth ​ Negative outlook on self ​ Insomnia ​ Hypertension ​ Depression ​ Burnout THE HAWTHORNE EFFECT When workers know people are concerned about them their productivity increases. So, better lightning, regular breaks, etc. improve productivity the study findings: ​ Organizations are social systems ​ Social factors have more impact on job performance than physical factors ​ Informal organizations vs formal orgs. was revealed ​ These conclusions suggest that to understand behaviors on the job, we must appreciate human needs, attitudes, motives, and relationships in the workplace. FORMAL AND INFORMAL ORGANIZATION Both are essential. Formal organizations is a structured way a company is set up. Includes the company’s rules, job roles. For example, a boss gives an employee a task based on their working position. It is created deliberately. Is planned and official, large, stable and built around jobs. The goal is to profit and service to society. Goals and objectives for example: include the purpose of the company and the specific objectives for a given time period. (increase rooms revenue by 3% by the end of the year) Informal organization is just a natural way people interact. Based on friendship and personal relationships. For example, a co-worker asks for your help because you are friends, even if it is not part of your job. Arises spontaneously, unplanned and unofficial, small, insatiable and dynamic. The goal is to satisfy the members.Include official norms of behavior, guidelines.  BEHAVIOR IN TIME OF CHANGE Reasons of change: ​ Outsourcing ​ New technology ​ Management changes ​ New brand ​ Structure’s downsizing or restructuring ​ Changes in the SOP People’s reactions: ​ Resistance ​ Rigidity ​ Inflexibility ​ Discomfort ​ Discontent INTERNATIONAL EMPLOYMENT LAWS The international labor law is the body of rules and regulations set by the international labor organization, to regulate the rights and duties of employees, employers, labor unions, and government involved in the workplace 3 types of laws 1.​ Public international laws 2.​ Private international laws 3.​ Comparative laws -​ Public international laws are the rules and regulations between different countries -​ Private international laws are the rules and regulations between individuals and businesses that operate in different countries. -​ comparative laws include comparisons between the laws DIFFICULTIES YOU CAN HAVE WHEN HIRING PEOPLE ABROAD 1.​ Laws and regulations - diff. Countries = different laws. 2.​ Cultural differences 3.​ Different time zones - implement flexible schedules.  INTERNATIONAL LABOUR STANDARDS International labor standards are rules that protect workers rights, improve job security and make workplaces better. These standards are created by ILO (International Labor Organization) through 189 agreements. Countries can choose to follow these recommendations voluntarily, but it is not required to legally commit to it. DECLARATION OF FUNDAMENTAL PRINCIPLES AND RIGHTS AT WORK -​ Freedom of association and the right to collective bargaining -​ Elimination of forced and compulsory labor -​ Elimination of discrimination in the workplace -​ Abolition of child labor -​ Embracing diversity -​ Equal employment opportunity -​ Affirmative action EQUALITY IN THE WORKPLACE Defenses for employers - there are two justifications 1.​ Business necessity - discrimination is allowed if it is needed to run a safe organization. For example, a company hires drivers with clean driving records to make the business more safe and efficient. This excludes some of the candidates. 2.​ Bona fide occupational qualification (BFOQ) - discrimination is permitted if it is based on a characteristic that is essential for the business. For example, a woman’s clothing business only hires women to project women’s clothing accurately. 9 STEPS FOR HR 1.​ REVIEW LEGAL REQUIREMENTS 2.​ DEFINE WHAT YOUR STATEMENT ENCOMPASES 3.​ STATE WHAT “EQUAL OPPORTUNITY” MEANS TO YOUR COMPANY 4.​ USE CLEAR AND CONSISTENT LANGUAGE 5.​ BE TRANSPARENT 6.​ ENABLE SUPPORT TO ACCOMMODATE 7.​ INCORPORATE YOUR COMPANY VALUES 8.​ LINE BACK TO YOUR STATEMENT 9.​ COLLECT FEEDBACK EEO POLICY - is Berkshire Hathaway Energy’s policy to provide and promote equal employment opportunity.  ​ Protective nature of labor law - laws are designed to protect workers from unfair treatments and unsafe work conditions. ​ In dubio pro operario - a legal principle that means if there is a doubt about what the law is, it should be interpreted in a way that favors the workers. For example, if a rule can be read two ways, the way that helps the worker most should be chosen. ​ Non-waivability - workers cannot agree to give up their basic rights. For example, an employee cannot agree to get paid less. ​ Reversal burden of proof - when someone makes a claim, they need to prove it is true. But in labor cases, the burden can shift to the employer. For example, if a worker claims that he has been fired unfairly, the employer must prove that it was fair to fire him. EUROPEAN LABOR STANDARDS -​ The right to a written statement or a contract of employment, regardless of the employment’s time nature. (info about their pay wage for example) -​ The right to free movement across the countries in the european union -​ The right to a minimum of 4 weeks of annual leave -​ Prohibition of discrimination in the workplace -​ Minimum standards for health and safety at work -​ Restrictions and limitation on redundancies (meaning they cannot just fire the employee, they need to follow certain rules) Each country in EU decides their minimum wage Employee contracts - info of the pay, job span, working hours, holidays and other obligations between the employee and the employer PROS AND CONS Increasing minimum wage -​ More money -​ Better quality of life -​ More money might reduce the need to be on government sponsored programs or assistance -​ Opportunities to pay off debts -​ Finding more money to pay workers stresses out small businesses -​ Causes more unemployment -​ Strain on the resources of a small business -​ Bad for the inexperienced worker bc they get fired first GENERAL PRINCIPLES OF LABOR LAW ACROSS COUNTRIES ​ Payroll obligations - employer must pay taxes  ​ Employee benefits - the business should help the employer, help them plan the retirement plan, health care, give money if they lose the job ​ Employee termination - the person who is firing the employee needs to explain why they are firing them. RECRUITMENT Recruitment is when a company is searching for a person who can meet the criterias of a certain job. Key elements are: searching, obtaining, candidates, quantity, quality The reason why most businesses are poor at recruiting is because of: -​ A bad strategy -​ Not knowing what a job applicant actually needs to do Where to look for candidates? -​ Job postings -​ Job biddings Referrals: -​ Benefits -​ Nepotism INTERNAL AND EXTERNAL RECRUITMENT INTERNAL ADVANTAGES DISADVANTAGES Improves moral of promoted employee Moral problems for those who were skipped for the promotion Improves motivation for employees/retention Favoritism can be seen as career opportunities are available Managers can better assess the candidate Ineffectiveness of department can be created by succession of promotions Reduces training cost Flow of new ideas is diminishig Lower recruitment cost/time EXTERNAL SOURCES - Employment agencies, job fairs, schools, journals, internet ONLINE RECRUITMENT - Each visitor to the website is a potential candidate, online application forms, easy to process and pass info to HRIS, may need additional sources.  EXTERNAL RECRUITMENT ADVANTAGES DISADVANTAGES Brings new ideas Long process to match candidate with company’s culture Opportunity to interview candidates If it is done regularly, internal candidates get interviewed by competitors demotivated Helps to reduce potential internal issues of Training can take longer promotion Upgrade productivity Potential mistakes, unpredictable behaviors HOW DOES WEB JOB PORTAL WORK -You either pay to post a vacancy or to reveal the contact of a CV - most web portals can directly rank the CVs with key words (filter easily) The criteria to make the choice: likelihood to produce good candidates, the speed, the costs To check if the way we are recruiting is effective is to: 1.​ Measure the cost-efficiency 2.​ Keep records TURNOVER RATE To calculate the turnover rate #of employees who left voluntarily in a given period Turnover rate = —------------------------------------------- #of employees in the same given period Turnover → involuntary Turnover → voluntary → functional Turnover → voluntary → dysfunctional → unavoidable turnover (move to another location, stay home to care for a family member, career change) Turnover → voluntary → dysfunctional → avoidable (management issues, job dissatisfaction, toxic organization, lack of learning opportunities, poor compensation)  ADVERTISING -​ Job positioning -​ Target audience and the best media to reach the audience -​ Cost -​ Real info about duties and requirements -​ Salary THE MAIN OBJECTIVES OF THE JOB ADS ARE TO ATTRACT THE RIGHT CANDIDATES AND CREATE OR MAINTAIN THE POSITIVE PERCEPTION THAT PEOPLE HAVE ABOUT THE COMPANY SELECTION Predicting the behavior of the attracted candidates and making final decision through the application of a systematic and consistent process of selection -​ Reliability: how consistently a selection method gives the same results -​ Validity: how well a selection method measures or predicts what it’s supposed to So, reliability is about consistency and validity about accuracy TYPES OF SELECTION TOOLS AND TESTS -​ INTELLIGENCE -​ CONDITIONING -​ ABILITY TO LEARN A NEW SKILL -​ PERSONALITY TESTS -​ HONESTY/INTEGRITY TESTS -​ POLYGRAPH TEST -​ DRUG TESTS REFERENCES -​ PROFESSIONAL -​ Dates of employment -​ Job title  -​ Compensation -​ Reasons for leaving -​ Would you rehire -​ Ask your potential candidate for a written confirmation to contact their previous employer -​ With these signed agreements you minimize the risk for a lawsuit -​ Acknowledgement - CV being processed -​ Regret - not suitable for the job -​ Regret and keep on file -​ Not suitable for this job but on file for future vacancies INTERVIEW Benefits for the candidate: -​ Ask questions about the job (working hours, benefits) -​ Decide whether or not to take the job ORGANISATION -​ Describe role and responsibilities -​ Decide if the candidate has the ability to perform the tasks -​ Give details (starting date, training programs, terms and conditions) -​ Give a positive impression of the company to the candidate There 3 categories of an interview -​ Unstructured -​ Structured -​ Semi-structured Basic techniques: 1.​ traditional -​ Verification (past experience) -​ Opinion (where do you see yourself in 5 years) -​ Opinion (why did you study hospitality) 2.​ situational -​ Situational question (what would you do if) -​ Knowledge question (what do you know about) -​ willingness (can you work in different locations)  How should the interview go? INTRODUCTION → BODY → CLOSING 1.​ Introduction 2.​ Explain the process of the interview 3.​ Start off with easy questions or get to know you questions 4.​ Use active listening skills 5.​ Explain the expectations and the job responsibilities 6.​ Give the candidate a possibility to ask questions 7.​ Thank the candidate One to one interview -​ Interviewee is more relaxed -​ Only 1 person interviewing Sequential interview -​ Candidate goes through different interviews, one after the other -​ Broader picture of the candidate and more representation of the company -​ Joined evaluation of the candidate -​ Time consuming for the candidate -​ The candidate might burnout by the last interview Panel interview -​ More than 1 interviewer -​ Each interviewer takes notes and later decide together if the candidate is good enough INTERVIEW ERRORS Similarity error: -​ When one interviewer likes and agrees with the answer of the candidate but the other interviewer disagrees. Contrast error: -​ When a candidate is being compared to another candidate. After a strong candidate, the following candidate might seem weaker, even if they are qualified for the job. Overweighting negative information (devil’s horn)  -​ When an interviewer focuses too much on the candidate’s mistakes, like if a candidate only answers one question badly, the interviewer might assume that they are bad for the job overall. EEO (discrimination) - illegal discrimination First impression error Halo effect - focusing too much on the positive side of the candidate, ignoring the negative Inter-rater error - when interviewers have a different opinion on the same candidate Interviewer domination - when an interviewer talks too much or does not give the candidate enough time to speak nonverbal communication - interviewer’s opinion is based on the candidates body language, the way they are dressed, etc First impressions by statistics are determined by - what you are wearing, voice, grammar, confidence, the words you choose to say. IMPORTANT THINGS FOR AN INTERVIEW - make eye contact, smile, be informed about the company How to reduce bias -​ Blind reviewing: hide personal details so you can only judge based off the skills and experience -​ Structured interviews: ask all of the candidates the same questions and use a scoring system -​ Diversity bias: teach hiring managers about hidden biases -​ Multiple rater assessment: have more than one person evaluate the candidate -​ Regular evaluation of hiring practices: review the hiring processes to fix mistakes TRAINING AND DEVELOPMENT Focus on specific skills for a role Focus on overall growth for future roles Short timeline with specific objectives Long-term career process Content: group or role specific Content: personalised for the employee Success: measured by job performance Success: measured by career progression Programs: employer-led Programs: employee-driven Training and development is important because it: 1.​ Reduces cost of production 2.​ Higher productivity 3.​ Prepares future managers 4.​ Better response to fast-changing environment 5.​ Increases morale of employees 6.​ Reduces accidents Identify training needs → establish objectives → select training methods → conduct and deliver training → evaluate performance Identify training needs: current position vs where you want to be So how do you identify training needs? 1.​ Set clear expectations for each role 2.​ Monitor employee performance 3.​ Ask away 4.​ Analysis 5.​ Make the most of personal development plans 6.​ Use focus group to understand employee training and development needs 7.​ Set up a system of evaluating and follow up PROPER way to do on -the-job training PREPARE: what do the employees need to be taught REASSURE: Get the employee interested ORIENT: Show the employee the correct way to do the job PERFORM: let the employee try the job EVALUATE: Check the employee’s performance REINFORCE AND REVIEW: Give feedback Gen Z will constitute 27% of the workplace by 2025 Because of AI there is a greater demand for professionals with strong soft skills MOTIVATIONAL THEORY 1.​ INTRINSIC MOTIVATION Basically all the things that motivate you based on the internal rewards, like you are happy for your promotion because you’ll learn valuable skills  2.​ EXTRINSIC MOTIVATION All the things that motivate you based on external rewards like money and praise. 3.​ COMPETENCE AND LEARNING MOTIVATION States that people are more motivated by the process itself rather than by the reward. 4.​ ATTITUDE MOTIVATION Motivation to change the way you or others think and feel 5.​ ACHIEVEMENT MOTIVATION People are driven by the desire to achieve specific goals 6.​ CREATIVE MOTIVATION People are motivated by creativity or the drive to express creativity 7.​ PSYCHOLOGICAL MOTIVATION 8.​ INCENTIVE MOTIVATION People are motivated by the reward rather than by the achievement of the goal itself 9.​ FEAR MOTIVATION 10.​POWER MOTIVATION 11.​AFFILIATION AND SOCIAL MOTIVATION -​ Motivated by social factors (belonging and acceptance) Learning, attitude, achievement, creation and psychological are INTERNAL motivators Incentive, fear, power and affiliation are EXTERNAL motivators BROAD CLASSIFICATION FOR MOTIVATION AT WORK -​ Economic rewards -​ Intrinsic satisfaction -​ Social relationships Voluntary benefits -​ Medical insurance -​ Dental plan -​ Accidental death and disability -​ Retirement -​ Time off -​ Travel -​ Child care -​ Education -​ Dry cleaning -​ Parking -​ Catalogue -​ Vouchers -​ Events, staff parties The concept of power Power is the ability to influence another person Authority is the formal power granted by the organisation to a management position Reward power - manager’s ability to control rewards the employee gets (bonuses) Coercive power - manager’s ability to cause an unpleasant experience for the employee Legitimate power - manager and employee agree that the manager has influential rights Referent power - the collaborator wants to be like the manager Expert power - the manager has the knowledge POLITICAL SKILL: The ability to get things done through positive interpersonal relationships outside the formal organization. There are 4 dimensions for this: 1.​ Social astuteness: being good at understanding social situations 2.​ Interpersonal influence: using a flexible style to get things done 3.​ Networking ability: building connections 4.​ sincerity : showing genuine authenticity The employee - boss relationship is one of mutual independence = your boss depends on you as much as you depend on your boss  CULTURAL DIVERSITY Individualism - employees put loyalty to themselves Collectivism - individuals depend strongly on others High power distance - formality is the rule Low power distance - minimize inequality. Employees often bypass the boss to get things done Long term orientation Short term orientation Indulgence - weak control Restraint - strong control Primary sources of diversity are: -​ Culture -​ Gender -​ Age -​ Religion -​ Personality -​ Disabilities -​ Social status -​ Sexuality What are the benefits and problems? BENEFITS: -​ Attract best talent -​ Improve marketing effort -​ Promotes creativity and innovation -​ Results in better problem solving -​ Enhances organisational flexibility PROBLEMS: -​ Resistance to change -​ Lack of cohesiveness -​ Communication problems -​ Interpersonal conflicts -​ Slower decision making  GLOSSARY Affirmative Action: Measures taken to increase the representation of underrepresented groups in employment. Authority: Formal power granted by an organization to a management position. Bona Fide Occupational Qualification (BFOQ): A justification for discrimination based on a specific characteristic essential for a job. Business Necessity: A defense against discrimination claims arguing that a practice is necessary for safe and efficient operation. Coercive Power: A manager’s ability to cause an unpleasant experience for an employee. Collectivism: A cultural orientation where individuals prioritize group loyalty and interdependence. Comparative Laws: Comparison of different countries' labor laws. Cultural Diversity: The presence of a variety of cultures and identities within a workplace. Dysfunctional Turnover: Employee departures due to factors like management issues or job dissatisfaction that negatively affect the organization. EEO (Equal Employment Opportunity): The principle that all individuals should have an equal chance for employment, free from illegal discrimination. Employee Lifecycle: The stages of an employee’s experience with an organization, from attraction to exit. Expert Power: Power based on specialized knowledge or skills that a manager possesses. Extrinsic Motivation: Motivation derived from external rewards such as pay and praise. Formal Organization: A structured system with defined rules, roles, and hierarchy. Functional Turnover: Employee departures due to factors that do not necessarily have negative consequences for the organization, and may even be positive. Hawthorne Effect: The tendency for people to behave differently when they know they are being observed. HRM (Human Resource Management): The practice of managing people and their roles within an organization. In Dubio Pro Operario: A legal principle that when in doubt, the interpretation of the law should favor the worker. Informal Organization: A network of social relationships and interactions that arise naturally in the workplace. Intrinsic Motivation: Motivation derived from internal rewards such as satisfaction and personal growth. International Labour Standards: Rules protecting workers' rights and improving workplaces, created by the ILO. Interviewer Bias: Prejudices that influence an interviewer’s perceptions and evaluations. Inter-rater error: When interviewers have a different opinion on the same candidate. Job Posting: Advertising open positions to potential candidates. Legitimate Power: Power based on the acceptance that a manager has the right to exert influence. Lewin’s Equation (B=F(P+E)): Behavior is a function of a person and their environment. Non-waivability: The principle that workers cannot give up their basic rights. OB (Organizational Behavior): The study of how people behave in the workplace. Onboarding: The process of integrating new employees into an organization. Panel Interview: An interview conducted by a group of interviewers. Political Skill: The ability to get things done through positive interpersonal relationships. Private International Laws: Rules governing relationships between individuals and businesses operating in different countries. Public International Laws: Rules and regulations between different countries. Referent Power: Power derived from a desire to be like or identify with a particular manager. Reliability: The consistency of a selection method in producing the same results. Reward Power: A manager's ability to control the rewards an employee receives. Reversal Burden of Proof: In labor cases, the burden of proof can shift to the employer. Selection: The process of choosing candidates based on their fit for an open position. Sequential Interview: When a candidate undergoes several interviews one after the other. Similarity error: When one interviewer likes and agrees with the answer of the candidate but the other interviewer disagrees. Situational Question: Hypothetical questions asked in an interview to assess problem solving. Structured Interview: An interview using a standardized set of questions for all candidates. Turnover Rate: The rate at which employees leave an organization. Validity: The accuracy of a selection method in measuring or predicting the desired outcome.