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Management
Getting the Right People for Managerial Success
Strategic HR Planning
Strategic human resource planning consists of developing a systematic,
comprehensive strategy for
(a) understanding current employee needs and
(b) predicting future employee needs.
Job analysis.
o The purpose of job analysis is to determine, by observation and
analysis, the basic elements of a job.
o Specialists who do this interview job occupants about what they do,
observe the flow of work, and learn how results are accomplished.
Job description and job specification.
o Once the fundamentals of a job are understood, then you can write
a
job description, which summarizes what the holder of the
job does and how and why he or she does it.
o Next you can write a
job specification, which describes the minimum
qualifications a person must have to perform the job
successfully.
You can recruit employees from either inside or outside the organization.
Four areas of human resource law any manager needs to be aware of are
1. labor relations,
a. National Labor Relations Board
i. Enforces procedures whereby employees may vote to have a
union and for collective bargaining.
ii. Collective bargaining consists of negotiations between
management and employees about disputes over
1. compensation,
2. benefits,
3. working conditions, and
4. job security.
2. compensation and benefits,
a. Fair Labor Standards Act of 1938
i. Established minimum living standards for workers engaged in
interstate commerce,
1. including provision of a
a. federal minimum wage and a
b. maximum workweek, along with
c. banning products from child labor.
2. exempt from overtime rules:
a. Salaried executive,
b. administrative, and
c. professional employees.
3. health and safety, and
a. Beginning with the Occupational Safety and Health Act (OSHA) of
1970, a body of law has grown that requires organizations to
provide employees with non-hazardous working conditions.
The recruitment process turns up a handful of job applicants and now you turn to
the selection process, the screening of job applicants to hire the best
candidate.
Selection
Tools
Backgroun
d
Informatio
n:
Application
Forms,
Resumes, &
Reference
Checks
Description
They fear if they say anything positive, and the job candidate
doesn't pan out, they can be sued by the new employer
Unstructured interview.
o Like an ordinary conversation, an unstructured interview
involves asking probing questions to find out what the
applicant is like.
has been criticized as being overly subjective and apt
to be influenced by the biases of the interviewer.
susceptible to legal attack, because some questions
may infringe on non-job-related matters such as
privacy, diversity, or disability
o compared with the structured interview method, the
unstructured interview has been found to provide a more
accurate assessment of an applicant's job-related personality
traits
Structured interview
o type 1-the situational interview.
The structured interview involves asking each
applicant the same questions and comparing their
responses to a standardized set of answers.
In one type of structured interview, the situational
interview, the interviewer focuses on hypothetical
situations.
Example: "What would you do if you saw two of
your people arguing loudly in the work area?"
The idea here is to find out if the applicant can
handle difficult situations that may arise on the
job.
o type 2-the behavioral-description interview
The interviewer explores what applicants have
actually done in the past
Question is designed to assess the applicant's ability
to influence others.
Example: "What was the best idea you ever sold
to a supervisor, teacher, peer, or subordinate?"
Employment tests are legally considered to consist of any
procedure used in the employment selection decision process
o Ability tests
Ability tests measure physical abilities, strength and
stamina, mechanical ability, mental abilities, and
clerical abilities.
o Performance tests
Performance tests or skills tests measure performance
on actual job tasks
Some companies have an assessment centre, in
which management candidates participate in
activities for a few days while being assessed
by evaluators.
o
Interviewin
g:
Unstructure
d,
Situational,
&
BehavioralDescription
Employme
nt Tests:
Ability,
Personality,
Performance
, & Others
Personality tests
Personality tests measure such personality traits as
adjustment, energy, sociability, independence, and
need for achievement.
Career-assessment tests that help workers
identify suitable jobs
Myers-Briggs Type Indicator
Other Tests
drug testing, polygraph (lie detectors), genetic
screening, and even (a questionable technique)
handwriting analysis
an important legal consideration is the test's
reliability-the degree to which a test measures
the same thing consistently so that an
individual's score remains about the same over
time, assuming the characteristics being
measured also remain the same.
validity-the test measures what it purports to
measure and is free of bias. If a test is supposed
to predict performance, then the individual's
actual performance should reflect his or her
score on the test . Using an invalid test to hire
people can lead to poor selection decisions.
Which business strategy offers the highest returns: (1) downsizing; (2) total
quality management, which focuses on work methods and process control; or (3)
employee involvement, which focuses on upgrading workers' skills and
knowledge?
The answer is employee involvement.
In hiring, you always try to get people whose qualifications match the
requirements of the job. Quite often, however, there are gaps in what new
employees need to know. These gaps are filled by training. The training process
involves five steps, as shown below.
Training
upgrading skills of technical and
operational employees
Electronics technicians, data
processors, computer network
administrators, and X-ray
technicians, among many
others, need to be schooled in
new knowledge as the
requirements of their fields
change.
Training refers to educating
technical and operational
employees in how to better do
their current jobs.
Development
upgrading skills of professionals
and managers
Accountants, nurses, lawyers,
and managers of all levels need
to be continually educated in
how to do their jobs better not
just today but also tomorrow.
Development refers to
educating professionals and
managers in the skills they need
to do their jobs in the future
On-the-Job Training
This training takes place in the
work setting while employees are
performing job-related tasks.
Off-the-Job Training
This training consists of classroom
programs, videotapes, workbooks, and
the like.
Performance Appraisal
Feedback about how you're doing at work is part of performance appraisal, which
consists of
(1) assessing an employee's performance and
(2) providing him or her with feedback.
Objective Appraisal
Objective appraisals, also called
results appraisals, are based on
facts and are often numerical.
They measure results
o as it doesn't matter if
two salespeople have
completely different
personal traits if each
sells the same number
of washers and dryers
They are harder to challenge
legally
o not being as subject to
personal bias
Subjective Appraisal
Subjective appraisals are based on a
manager's perceptions of an
employee's (1) traits or (2) behaviours.
Trait appraisals are ratings of
such subjective attributes as
"attitude," "initiative," and
"leadership." Trait evaluations
may be easy to create and use,
but their validity is questionable
because the evaluator's personal
bias can affect the ratings.
Behavioural appraisals
measure specific, observable
aspects of performance-being on
time for work, for instancealthough making the evaluation
is still somewhat subjective. An
example is the behaviourally
anchored rating scale (BARS),
which rates employee gradations
in performance according to
scales of specific behaviours.
Self-appraisals
appraisals.)
Top performers (such as the top 20%) are rewarded with bonuses and
promotions, the worst performers (such as the bottom 20%) are
rehabilitated or dismissed. For instance, every year I 0% of GE's managers
are assigned the bottom grade, and if they don't improve, they are asked
to leave the company.
However, if the system is imposed on an organization overnight without
preparation, by pitting employees against one another, it can produce
shocks to morale, productivity, and loyalty.
There may also be legal ramifications, as when employees filed classaction lawsuits alleging that the forced ranking methods had a disparate
effect on particular groups of employees
Incentives
To induce
employees to
be more
productive or
to attract
and retain
top
performers,
many
organizations
offer
incentives,
such as
commissions,
bonuses,
profit-sharing
plans, and
stock options
Benefits
Benefits, or fringe benefits, are
additional nonmonetary forms
of compensation designed to
enrich the lives of all employees
in the organization, which are
paid all or in part by the
organization. Examples are many:
health insurance, dental insurance,
life insurance, disability protection,
retirement plans, holidays off,
accumulated sick days and vacation
days, recreation options, country
club or health club memberships,
family leave, discounts on company
merchandise, counselling, credit
unions, legal advice, and education
reimbursement . For top executives,
there may be "golden parachutes,"
generous severance pay for those
who might be let go in the event the
company is taken over by another
company.
Fairness
o It's important that promotion be fair. The step upward must be
deserved. It shouldn't be for reasons of nepotism, cronyism, or other
kind of favouritism.
Non-discrimination
o The promotion cannot discriminate on the basis of race, ethnicity,
gender, age, or physical ability.
Others' Resentments
o If someone is promoted, someone else may be resentful about
being passed over.
o As a manager, you may need to counsel the people left behind
about their performance and their opportunities in the future
Layoffs
o dismissed temporarily -as when a carmaker doesn't have enough
orders to justify keeping its production employees-and may be
recalled later when economic conditions improve.
Downsizings
o downsizing is a permanent dismissal - automaker discontinuing a
line of cars or on the path to bankruptcy might permanently let go
of its production employees
Firings
o dismissed permanently "for cause": absenteeism, sloppy work
habits, failure to perform satisfactorily, breaking the law, and the
like.