Fundamentals of Management Chapter 8 PDF

Fundamentals of Management Global Edition Chapter 08 Managing Human Resources and Diversity Roksana Binte Rezwan Copyright © 2020 Pearson Education Ltd. All Rights Reserved...

Fundamentals of Management Global Edition Chapter 08 Managing Human Resources and Diversity Roksana Binte Rezwan Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objectives (1 of 2) 8.1 Describe the key components of the human resource management process and the important influences on that process. 8.2 Discuss the tasks associated with identifying and selecting competent employees. 8.3 Explain how employees are provided with needed skills and knowledge. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objectives (2 of 2) 8.4 Describe strategies for retaining competent, high- performing employees. 8.5 Discuss contemporary issues in managing human resources. 8.6 Explain what workforce diversity and inclusion are and how they affect the HRM process. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objective 8-1 Describe the key components of the human resource management process and the important influences on that process. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Human Resource Management The management function concerned with getting, training, motivating, and keeping competent employees. HRM = Right People, Right Place, Right Time Copyright © 2020 Pearson Education Ltd. All Rights Reserved. HRM Process and Influences Copyright © 2020 Pearson Education Ltd. All Rights Reserved. The Legal Environment Source: Robbins, Stephen P., Coulter, Mary, Management, 13th Ed., © 2016, p. 341. Reprinted and electronically reproduced by permission of Pearson Education, Inc., New York, NY. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Differences in HRM Laws France Sweden Singapore Australia Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Affirmative Action Programs that ensure that decisions and practices enhance the employment, upgrading, and retention of members of protected groups. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objective 8-2 Discuss tasks associated with identifying and selecting competent employees. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Identifying and Selecting Employees HRM Process: 1. Employment planning 2. Recruitment and downsizing 3. Selection Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 1. Employment planning the process by which managers ensure that they have the right number and kinds of people in the right places at the right times. 1. Assessing current and future human resource needs. 2. Developing a plan to meet those needs. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Conducting Employee Assessments How does an organization do a current HR assessment? Human Resource Inventory: A report listing important information about employees such as name, education, training, skills, language spoken, and so forth. Job Analysis: An assessment that defines jobs and the behaviours necessary to perform them Job Description: A written statement that describes the job. Job Specification: A written statement of the minimum qualifications that a person must possess to perform a given job successfully. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Determining Future Employment Needs Demand for human resources (employees) is a result of the demand for the organization’s products or services. – when there is a scarce supply of qualified candidates could limit the number of products produced or services provided—which decreases the amount of incoming revenue Needed! Outstanding Job Applicants! Now... how do we get those? Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2. Recruitment the process of locating, identifying, and attracting capable applicants. if employment planning indicates a surplus, managers may want to reduce the labor supply and initiate downsizing or restructuring activities. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 2A. Recruiting Applicants Exhibit 8-3 Recruiting Sources DISADVANTAGE SOURCE ADVANTAGES S Reaches large numbers of people; can get Generates many Internet/social immediate feedback 92 percent of recruiters use unqualified media social media when looking for potential candidates candidates12 Knowledge about the organization provided by May not increase Employee current employee; can generate strong the diversity and referrals candidates because a good referral reflects on mix of employees the recommender Generates many Company Web Wide distribution; can be targeted to specific unqualified site groups candidates College Limited to entry- recruiting/job Large centralized body of candidates level positions fairs Source: Robbins, Stephen P., Coulter, Mary, Management, 13th Ed., © 2016, p. 346. Reprinted and Professional electronically reproduced by permission of Pearson Education, Inc., New York, NY. Little commitment Good knowledge of industry challenges and recruiting to specific requirements Copyright © 2020 Pearson Education Ltd. All Rights Reserved. organizations organization  2B. Handling Layoffs Exhibit 8-4 Downsizing Options OPTION DESCRIPTION Firing Permanent involuntary termination Temporary involuntary termination; may last only a few Layoffs days or extend to years Not filling openings created by voluntary resignations Attrition or normal retirements Moving employees either laterally or downward; usually Transfers does not reduce costs but can reduce intraorganizational supply–demand imbalances Having employees work fewer hours per week, share Reduced jobs, or through furloughs perform their jobs on a parttime workweeks basis Providing incentives to older and more-senior employees Early retirements for retiring before their normal retirement date Having employees, typically two part-timers, share one Job sharing full-time position Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 3. Selecting Job Applicants Selection Process: seeks to predict which applicants will be successful if hired. – Screening job applicants to ensure that the most appropriate candidates are hired. – Predictive process. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Selection Decision Outcomes Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Reliability and Validity Reliability: The degree to which a selection device measures the same thing consistently. Validity: The proven relationship between a selection device and some relevant criterion. – Accuracy of the prediction Copyright © 2020 Pearson Education Ltd. All Rights Reserved.  Selection Devices Written test – Intelligence, aptitude, mechanical and spatial ability, motor ability, interest. – Moderately valid predictors Performance simulation test – Better predictor of short- term job performance Interview https://www.facebook.com/bearlyarticulating/photos/a.1783629161749727/5566341533478452/? type=3 Copyright © 2020 Pearson Education Ltd. All Rights Reserved.  Interview Structured Well organized Interviewer asking relevant questions https://www.facebook.com/bearlyarticulating/photos/a.1783629161749727/5566341533478452/? type=3 Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Effective Interviewing How Can I Be a Good Interviewer? TIPS FOR MANAGERS: Make interviews more valid and reliable! 1. Review the job description and job specification to help in assessing the applicant. 2. Prepare a structured set of questions to ask all applicants for the job. 3. Review an applicant’s résumé before meeting him or her. 4. Ask questions and listen carefully to the applicant’s answer. 5. Write your evaluation of the applicant while the interview is still fresh in your mind. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Closing the Deal (1/2) Exposing only to an organization’s positive characteristics – (1) Mismatched applicants are less likely to withdraw from the search process. – (2) Inflated information builds unrealistic expectations so new employees are likely to become quickly dissatisfied and to resign prematurely. – (3) New hires are prone to become disillusioned and less committed to the organization when they face the unexpected harsh realities of the job. – (4) In many cases, these individuals feel that they were misled during the hiring process and may become problem employees. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Closing the Deal (1/2) Realistic job preview (RJP): – A preview of a job that provides both positive and negative information about the job and the company ▪ fewer unexpected resignations by new employees. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objective 8-3 Explain how employees are provided with the needed skills and knowledge. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 4. Orientation Introducing a new employee to the job and the organization – reduce the initial anxiety all new employees feel as they begin a new job; – familiarize new employees with the job, the work unit, and the organization as a whole; and – facilitate the outsider–insider transition Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Job Orientation (1) expands on the information the employee obtained during the recruitment and selection stages, (2) clarifies the new employee’s specific duties and responsibilities as well as how his or her performance will be evaluated, and (3) corrects any unrealistic expectations new employees might hold about the job. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Work Unit Orientation: (1) Familiarizes an employee with the goals of the work unit, (2) clarifies how his or her job contributes to the unit’s goals, and (3) provides an introduction to his or her coworkers Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Organization Orientation (1) Informs the new employee about the organization’s goals, history, philosophy, procedures, and rules; (2) clarifies relevant HR policies such as work Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Successful Orientation Results in an outsider–insider transition that makes the new member feel comfortable and fairly well-adjusted. Lowers the likelihood of poor work performance. Reduces the probability of a surprise resignation by the new employee only a week or two into the job. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 5. Providing Skills and Knowledge Employee Training – a learning experience that seeks a relatively permanent change in employees by improving their ability to perform on the job Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Determining Whether Training Is Needed Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Employee Training Methods Source: Robbins, Stephen P., Coulter, Mary, Management, 13th Ed., © 2016, p. 353. Reprinted and electronically reproduced by permission of Pearson Education, Inc., New York, NY. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Employee Training Evaluation Reaction How much the participants learned. How well they are using the new skills. Desired results. – Reduced turnover, increased customer service. Source: Robbins, Stephen P., Coulter, Mary, Management, 13th Ed., © 2016, p. 353. Reprinted and electronically reproduced by permission of Pearson Education, Inc., New York, NY. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objective 8-4 Describe strategies for retaining competent, high- performing employees. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Retaining Competent Employees A performance management Compensation and benefits programs. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 6. Performance Management System establishes performance standards that are used to evaluate employee performance. Copyright © 2020 Pearson Education Ltd. All Rights Reserved.  Specific Performance Appraisal Methods Method Advantage Disadvantage More a measure of (A) WRITTEN ESSAY— evaluator’s writing ability descriptions of employee’s Simple to use than of employee’s actual strengths and weaknesses performance (B) CRITICAL INCIDENTS— examples of critical behaviors Rich examples; Time-consuming; lack that were especially effective or behaviorally based quantification ineffective (C) ADJECTIVE RATING SCALES— lists descriptive performance Provide quantitative factors (work quantity and quality, data; less Do not provide depth of knowledge, cooperation, loyalty, time-consuming than job behavior assessed attendance, honesty, initiative, others and so forth) with numerical ratings Copyright © 2020 Pearson Education Ltd. All Rights Reserved.  Specific Performance Appraisal Methods Method Advantage Disadvantage (D) BARS—rating scale + Focus on specific and Time-consuming; difficult examples of actual job measurable to develop behaviors38,39 job behaviors measures Focuses on end goals; (E) MBO—evaluation of results Time-consuming accomplishment of specific goals oriented (F) 360-degree appraisal 40— feedback from full circle of those More thorough Time-consuming who interact with employee Compares employees Unwieldy with large (G) MULTIPERSON—evaluation with one number of comparison of work group another employees Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Multi-Person Evaluations Group-order ranking – evaluator places employees into a particular classification Individual ranking – evaluator lists employees in order from highest to lowest performance levels Paired comparison – each employee is compared with every other employee in the comparison group and rated as either superior or weaker. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Issues with Performance Evaluation Systems Systems may be outdated due to: – Downsizing – Project teams Copyright © 2020 Pearson Education Ltd. All Rights Reserved.  When an employee’s performance is not up to par Job mismatch (hiring error) Reassign Inadequate training Provide training Lack of desire to do job Employee Counselling Copyright © 2020 Pearson Education Ltd. All Rights Reserved. 7. Compensating Employees Exhibit 8-9 What Determines Pay and Benefits? Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Alternative Approaches to Determining Compensation Skill-based pay systems – Reward employees for job skills and competencies they have. Variable pay systems – Individual’s compensation is contingent on performance. Employee Benefit – are nonfinancial rewards designed to enrich employees’ lives. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objective 8-5 Discuss contemporary issues in managing human resources. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Downsizing Downsizing – planned elimination of jobs from an organization Layoff-Survivor Sickness – a set of attitudes, perceptions, and behaviors of employees who survive involuntary staff reductions. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Managing Downsizing Exhibit 8-10 Tips for Managing Downsizing Communicate openly and honestly: Inform those being let go as soon as possible Tell surviving employees the new goals and expectations Explain impact of layoffs Follow any laws regulating severance pay or benefits Provide support/counseling for surviving employees Reassign roles according to individuals’ talents and backgrounds Focus on boosting morale: Offer individualized reassurance Continue to communicate, especially one-on-one Remain involved and available Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Sexual Harassment Any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual’s employment, performance, or work environment Sexual harassment is a serious issue. 48 percent of women report having been sexually, verbally, or physically harassed at work.61 Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Adapting to a Changing Workforce Work/life balance programs Contingent jobs Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Learning Objective 8-6 Explain what diversity and inclusion are and how they affect the HRM process. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Workforce Diversity Exhibit 8-11 Types of Diversity Found in Workplaces Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Workforce Diversity, Inclusion, and HRM Achieving workforce diversity and inclusion encompasses such basic HRM activities as recruitment, selection, orientation, training, performance management, and compensation/benefits. Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Next Class Mid-term Exam (Chapter 1 to 7) Starts at 13:30 sharp. 25 MCQs, 2 descriptive questions. 45 Marks, 60 Minutes. Copyright © 2020 Pearson Education Ltd. All Rights Reserved.  Discussion Question Do you think it’s ethical for a prospective employer to delve into an applicant’s life by means of interviews, tests, and background investigations? What if those investigations involved looking at your Facebook page or personal blogs? Explain your position. Are selection devices biased? Explain why or why not. Identify the pros and cons of such devices. What are the benefits and drawbacks of realistic job previews? (Consider this question from both the perspective of the organization and the perspective of a potential employee.) What strategies can companies apply to retain competent employees? Copyright © 2020 Pearson Education Ltd. All Rights Reserved. Copyright Copyright © 2020 Pearson Education Ltd. All Rights Reserved.