Organizational Management. Our strength is the quality of our people. People are our most valuable resource. Human Resource Management Goals

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1 Organizational Management Chapter 15 Managing Human Resources Our strength is the quality of our people. People are our most valuable resource. Human Resource Management Goals Attract an Effective Workforce Human Resource Environment Maintain an Effective Workforce Develop an Effective Workforce Understanding Management, 1998, Daft and Marcic 1

2 History of HRM Today Low level management position Developed procedures for hiring and firing Implemented benefit plans Unions were major force Senior position- chief negotiator Unions on decline HRM managers become involved in corporate strategic management Determine correct employee makeup Must develop an effective and efficient work force Training Understanding Management, Marcic & Daft 1998 Interdependence of Organizational and Human Resource Strategy Competitive Strategy-- Domestic, International Demand for skills and employees Organizational Readiness Human Resource Strategy Academy of Management Review 13, 1988, Lengnick-Hall & Lengnick-Hall Attracting an Effective Workforce HR Planning Retirements Growth Resignations Choose Recruiting Sources Want ads Headhunters State Agencies Select the Candidate Application Interview Tests Welcome New Employee Employee Contributions Match with Company Inducements Understanding Management, Daft and Marcic

3 Planning Forecast Demand Assess Supply Formulate fulfillment Plans Handy s Shamrock of employees in organizations Job analysis 3

4 Popular Job Analysis Methods! "# # % $ Job Analysis & " # ' & " "( #& " ) Performance Evaluation What Do We Evaluate? Individual Task Outcomes Behaviors Performance Evaluation Traits 4

5 Performance Evaluation Who Should Do the Evaluating? Immediate Supervisor Peers Self-Evaluation Immediate Subordinates 5

6 INTERVIEWS Are the most frequently used selection tool. Carry a great deal of weight in the selection process. Can be biased toward those who interview well. Should be structured to ensure against distortion due to interviewers biases. Are better for assessing applied mental skills, conscientiousness, interpersonal skills, and person-organization fit of the applicant. The Right Way to Interview * + #, ( "# $ ( # & " -. / # " / ( /# 0 1#2! "3435 WRITTEN TESTS Renewed employer interest in testing applicants for: Intelligence: trainable to do the job? Aptitude: could do job? Ability: can do the job? Interest (attitude): would/will do the job? Integrity: trust to do the job? Tests must be show validated connection to job-related performance requirements. 6

7 PERFORMANCE- SIMULATION TESTS Based on job-related performance requirements Yield validities (correlation with job performance) superior to written aptitude and personality tests. 6 /! Developing an Effective Workforce Socialization Socialization Process of systematically changing expectations, behavior, & attitudes of new employees to meet organization s desired traits Ropes to Skip and Ropes to Know R. Richard Ritti Orientation " # $ # # % # % & ' " 7

8 Performance Appraisals ( ) * +, -. * $ /, - % Graphic rating example Ratings: = Outstanding 4, = Satisfactory * = Unsatisfactory $ : Performance Evaluation What Do We Evaluate? Individual Task Outcomes Behaviors Performance Evaluation Traits 8

9 Performance Evaluation Who Should Do the Evaluating? Immediate Supervisor Peers Self-Evaluation Immediate Subordinates 360-Degree Evaluations Critical Incidents 7# "# " 8 & ") 9

10 Graphic Rating Scales + Keeps up with current policies and regulations Completely Unaware 9 Fully Informed Behaviorally anchored rating scales (BARS) " & Passes next examination and graduates on time. Pays close attention and regularly takes notes. Alert and takes occasional notes. Stays awake but is inattentive. Get to class on time, but nods off immediately. Oversleeps for class. Outstanding 5 Behaviorally Anchored Scales # " - 8# ) 4 : 8# ". ) 3 / ( 8# ; < ) 2 : 8# 8 ) 1 Unsatisfactory : 8# ) 10

11 Methods of Performance Evaluation Forced Comparisons Evaluating one individual s performance relative to the performance of another individual or others. Paired comparison Evaluation method that compares each employee with every other employee and assigns a summary ranking based on the number of superior scores that the employee achieves Individual ranking Evaluation method that rank-orders employees from best to worst Group order ranking Evaluation method that places employees into a particular classification, such as quartiles Suggestions for Improving Performance Evaluations Emphasize behaviors rather than traits. Document performance behaviors in a diary. Use multiple evaluators to overcome rater biases. Evaluate selectively based on evaluator competence. Train evaluators to improve rater accuracy. Provide employees with due process. Providing Performance Feedback Why Managers Are Reluctant to Give Feedback Uncomfortable discussing performance weaknesses directly with employees. Employees tend to become defensive when their weaknesses are discussed. Employees tend to have an inflated assessment of their own performance. Solutions to Improving Feedback Train managers in giving effective feedback. Use performance review as counseling activity rather than as a judgment process. 11

12 Providing Performance Feedback What About Team Performance Evaluations? 1. Tie the team s results to the organization s goals. 2. Begin with the team s customers and the work process the team follows to satisfy customer needs. 3. Measure both team and individual performance. 4. Train the team to create its own measures. Compensation and Benefits Maintaining an Effective Workforce $# % 12

13 Retention and Turnover ;,, < ) Reasons for Firing 1. Poor fit with the corporate culture 2. Over-selling one s qualifications 3. Bad chemistry with the boss. 4. Rigidity (clinging to old experiences) 5. Lack of necessary job skills 6. Victim of a power play 7. Refusal to conform to unspoken rules 8. Failing to be a team player 9. Business cutback (plus mergers) 10. Poor judgment M.M. Kennedy, Business Week Careers, no date Labor-Management Relations Labor organizations Labor contracts Collective bargaining

14 Unions and Management as Adversaries Complex legal environment Federal laws Equal Employment Opportunity (EEO) Affirmative action programs Which of the following is NOT sexual harassment? 1. Manager makes repeated, unwelcome sexual comments. 2. Manager makes repeated, offensive sexual jokes that others hear. 3. Male manager asks female manager for a date; she refuses. Business Week (10/13/98) 14

15 The article points out that the law defines sexual harassment as any unwelcome sexual conduct that creates a hostile work environment. Employers are advised to have a clear sexual harassment policy, to train employees in the policy, and to set good examples from the top. 15