m a n a g e m e n t 2e H i t t / B l a c k / P o r t e r

1. m a n a g e m e n t 2eH i t t / B l a c k / P o r t e r Chapter 8: Managing Diverse Human Resources

2. Learning Objectives After studying this chapter, you should be able to: • Explain why maximizing the potential of the firm’s human resources is important for both a company’s human resource management department and all managers • Explain how a firm’s human resource capabilities affects its strategy • Highlight the key aspects of getting the right people in the right jobs • Outline the effective methods for selecting job candidates

3. Learning Objectives • Highlight the keys to effective socialization and training • Describe various methods for providing employees feedback on their performance • Discuss the various compensation and reward systems commonly used by firms • Discuss why managing diversity is increasingly important in the light of globalization

4. Managers Perform HR Functions All managers – even outside the HR department – must be able to: • Recruit and select the right people • Effectively socialize and train people in your unit • Evaluate their performance • Determine reward systems that will motivate them to perform at a high level • Help subordinates further develop to advance in their careers

5. Strategic Role of HRM • Firm’s ability to survive and prosper is increasingly a function of the human resources they have • Managers’ career success depends on how well they manager their firm’s resources

6. Environment External Internal Organization Strategy Human Resource Management Activities Planning, Job Analysis, Recruiting, Selecting, Socializing and Training, Job Design, Performance Appraisal, Compensation, Development Competitive Advantage General Framework of HRM Adapted from Exhibit 8.1

7. HRM Activities Two main HRM goals • Getting the right people • Maximizing their performance and potential Failure of either goal can influence the success or failure of the other

8. Getting the Right People: Planning Planning • Forecasting demand • Assessing supply • Formulating fulfillment plans

9. Getting the Right People: Job Analysis Job Analysis • Scope and depth of jobs • Requisite skills, abilities, and knowledge that people need to perform their jobs successfully • Job description • Job specification

10. Getting the Right People: Recruiting Recruiting • Job posting • Advertisements • Employment agencies • Employee referrals • School placement centers • Internet recruiting

11. Written tests Background and reference checks Physical examinations Interviews Work sampling Work simulation Assessment centers Getting the Right People: Selection Selection Techniques Selection Techniques

12. Tips for Interviewers • Plan the interview by reviewing the candidate and the job specifications • Establish rapport with a friendly greeting and start the interview with a nonjob question • Follow structured set of questions • Avoid questions that require or solicit a simple yes or no response • Try not to telegraph, or give cues for, the desired answer • Make sure the candidate has plenty of time to answer—do not monopolize the conversation Adapted from Exhibit 8.2

13. Tips for Interviewers (cont.) • Listen carefully and paraphrase key candidate answers to be sure you understand what they meant to say • Ask for specific, not general, examples of the candidate’s experience and accomplishments • Leave time at the end of the interview to answer questions from the candidate • At the close make sure the candidate knows what the next steps are and approximate timing • After the candidate leaves, review your notes and highlight important points while they are fresh in your mind Adapted from Exhibit 8.2

14. Tips for Interviewees • Prepare for the interview by researching the company through articles and its own Web site • Smile and provide a warm greeting and firm handshake if the interviewer extends his or her hand • Make sure that your overall appearance (hair style, clothing, makeup, and so on) match the nature of the business and culture of the company • Watch your nonverbal behavior to ensure that you maintain good eye contact and convey enthusiasm without being overly expressive with your hands or other body movements Adapted from Exhibit 8.3 Adapted from Exhibit 15.3: Tips for Interviewees

15. Tips for Interviewees (cont.) • Try to solicit the interviewer’s needs early in the interview • Early in the interview be sure to get a complete picture of the job through questions such as “Can you tell about what has led people to succeed in this job in the past?” • Explicitly relate yourself and capabilities to the interviewer’s needs through statements such as, “You mentioned that one of the keys to this position is the ability to motivate others. In my experience at XYZ. . . .” Adapted from Exhibit 8.3 Adapted from Exhibit 15.3: Tips for Interviewees

16. Tips for Interviewees (cont.) • Take your time before answering; you do not need to begin talking the instant the interviewer asks a question • Conclude the interview by thanking the person for the opportunity and expressing your interest in the company and the position Adapted from Exhibit 8.3 Adapted from Exhibit 15.3: Tips for Interviewees

17. Key Aspects of Getting the Right People Planning Forecasting demand   Estimating supply Determining fulfillment Job Analysis Recruiting Selecting Adapted from Exhibit 8.4

18. Maximizing Performance: Socialization and Training Socialization and Training Orientation Off-the-Job Training On-the-Job Training Technical, Interpersonal, and Conceptual Training

19. On-the-Job Training Techniques Expanded Responsibilities Expands the job duties, assignments, and responsibilities of an individual Job Rotation Moves individuals to various types of jobs within the organization at the same level or next-immediate-higher level for a specific period of time Staff Development Meetings Held offsite to discuss facts of each individual’s job and to develop ideas for improving job performance “Assistant to” Positions Serve as staff assistants to higher-skill level jobs for a specified period of time to become more familiar with the higher-skilled positions in the organization Adapted from Exhibit 8.5

20. On-the-Job Training Techniques(continued) Problem Solving Conferences Held to solve a specific problem being experienced by a group or the organization as a whole Mentoring A guide or knowledgeable person higher up in the organization helps a new employee “learn the ropes” of the organization and provides other advice Special Assignments Special tasks or responsibilities are given to an individual for a specified period of time Company Trainers Special programs can cover such topics as safety, new personnel procedures, new product or services, affirmative action, and technical programs Adapted from Exhibit 8.5

21. On-the-Job Training Techniques(continued) Outside Consultants Recognized experts are brought to the company to conduct training on such topics as goal setting, communications, assessment techniques, safety, and other current topics Consultant Advisory Reviews Experts in specialized fields meet with various managers and employee groups to investigate and help solve particular problems Reading Matter A formal program is created to circulate books, journals, selected articles, new business material, and so on to selected employees Apprenticeship Training is provided through working under a journeyman or master in a craft Adapted from Exhibit 8.5

22. Training Objectives Knowledge of why certain behaviors are correct or incorrect Understanding correct and incorrect behaviors Opportunities to practice desired behaviors Feedback on performance Opportunities to practice and improve

23. Maximizing Performance: Job Design Job design: structuring or restructuring of key components of a job, including the job’s responsibilities • Job sharing • Reengineering

24. Maximizing Performance: Performance Appraisals Performance appraisal • Graphic rating scales • Behaviorally anchored rating scales • 360-degree feedback Effective performance feedback • Critical incidents

25. Employee name: Dept. Excellent Good Average Fair Poor Graphic Rating Scale 1. Quality of work 2. Quantity of work 3. Cooperation 4. Dependability 5. Initiative 6. Job knowledge 7. Attitude Adapted from Exhibit 8.6

26. Position: Job dimensions: Behaviorally Anchored Rating Scale Plans work and organizes time carefully so as to maximize resources and meet commitments 9 8 7 Even though this associate has a report due on another project, he or she would be well prepared for the assigned discussion on your project This associate would keep a calendar or schedule on which deadlines and activities are carefully noted, and which would be consulted before making new commitments Adapted from Exhibit 8.7

27. Behaviorally Anchored Rating Scale (cont.) As program chief, this associate would make arrangements for enlisting resources for a special project reasonably well, but would probably omit one or two details that would have to be handled by improvisation 6 5 4 Plans and organizes time and effort primarily for large segments of a task. Usually meets commitments, but may overlook what are considered secondary details. This associate would meet a deadline in handing in a report, but the report might be below usual standard if other deadlines occur on the same day the report is due This associate’s evaluations are likely not to reflect abilities because of overcommitments in other activities Adapted from Exhibit 8.7

28. Behaviorally Anchored Rating Scale(cont.) This associate would plan more by enthusiasm than by timetable and frequently have to work late the night before an assignment is due, although it would not be completed on time 3 2 1 This associate would often be late for meetings, although others in similar circumstances do not seem to find it difficult to be on time Appears to do little planning. May perform effectively, despite what seems to be a disorganized approach, by concerted effort, although deadlines may be missed. This associate never makes a deadline, even with sufficient notice Adapted from Exhibit 8.7

29. Review work objectives Performance Appraisal Interview 1. Review key work objectives, goals, or standards against which the employee’s performance is measured

30. Summarize overall performance (critical incidents) Review work objectives Performance Appraisal Interview 2. Summarize employee’s overall performance by reviewing specific positive and negative incidents

31. Summarize overall performance (critical incidents) Review work objectives Discuss causes of poor performance Performance Appraisal Interview 3. Discuss causes of weak performance and listen carefully to the employee’s explanation

32. Summarize overall performance (critical incidents) Review work objectives Discuss causes of poor performance Agree on process for future improvement Performance Appraisal Interview 4. Discuss alternative means of improving future performance and encourage employee input

33. Summarize overall performance (critical incidents) Review work objectives Discuss causes of poor performance Agree on process for future improvement Discuss alternatives for improving Performance Appraisal Interview 5. Establish an agreed approach, timetable, and review process for future improvement

34. Summarize overall performance (critical incidents) Review work objectives Objectives for next performance period Discuss causes of poor performance Agree on process for future improvement Discuss alternatives for improving Performance Appraisal Interview 6. Establish key objectives, timetables, and standards for the upcoming performance period

35. Summarize overall performance (critical incidents) Review work objectives Objectives for next performance period Discuss causes of poor performance Agree on process for future improvement Discuss alternatives for improving End with encouragement Performance Appraisal Interview 7. Leave the meeting on an encouraging and positive note

36. Maximizing Performance: Compensation Compensation • Pay • Pay structure • Wage or salary • Broadband system • At-risk system or variable • Incentive plans • Benefits • Cafeteria-style plans • Rewards and motivation

37. Pay Structure: Traditional Structure Traditional Pay Structure $8,000 $7,000 $6,000 $5,000 Monthly pay $4,000 $3,000 $2,000 $1,000 100 200 300 400 500 600 700 800 900 1300 1400 1000 1100 1200 Job evaluation points Adapted from Exhibit 8.8

38. $8,000 3 $7,000 $6,000 2 $5,000 $4,000 1 $3,000 $2,000 $1,000 100 200 300 400 500 600 700 800 900 1300 1400 1000 1100 1200 Pay Structure: Broadband Broadband Pay Structure Monthly pay Job evaluation points Adapted from Exhibit 8.8

39. Maximizing Performance: Employee Development and Labor Relations • Career paths • Cross-functional job rotation • Promotion • Termination • Layoffs • Labor relations

40. Managing a Diverse Workforce • Ethnic diversity • Gender and diversity • Glass ceiling • Sexual harassment

41. U.S. Workforce Demographic Changes, 1980–2020 Adapted from Exhibit 8.9

42. Projected Changes in the U.S. Population by Age and Ethnicity, 2000-2020 Adapted from Exhibit 8.10

43. Major U.S. Federal Laws and Regulations Act Requirements Covers Enforcement Agency Thirteenth Amendment Abolished slavery All individuals Court System Fourteenth Amendment Provides equal protection for all citizens and requires due process in state action State actions (e.g., decisions of governmental organizations Court System Civil Rights Acts of 1866 and 1871 Grant citizens right to make, perform, modify, or terminate contracts and enjoy all benefits, terms, and conditions of the contractual relationship Employers engaged in interstate commerce EEOC Adapted from Exhibit 8.11

44. Major U.S. Federal Laws and Regulations(continued) Act Requirements Covers Enforcement Agency EEOC Equal Pay Act of 1963 Requires that men and women performing equal jobs receive equal pay Employers with 15 or more employees working 20 or more weeks per year, labor unions, and employment agencies Title VII of CRA Provides equal protection for all citizens; requires due process in state action State actions (e.g., decisions of governmental organizations Court System Age Discrimination in Employment Act of 1967 Prohibits discrimination in employment against individuals 40 years of age or older Employers with 15 or more employees working 20 or more weeks per year; labor unions; employment agencies; federal government EEOC Adapted from Exhibit 8.11

45. Major U.S. Federal Laws and Regulations(continued) Act Requirements Covers Enforcement Agency Rehabilitation Act of 1973 Requires affirmative action in the employment of individuals with disabilities Government agencies; federal contractors and subcontractors with contracts greater than $2,500 OFCCP Americans with Disabilities Act Prohibits discrimination against individuals with disabilities of 1990 Employers with more than 15 employees EEOC Executive Order 11246 Requires affirmative action in hiring women and minorities Federal contractors and subcontractors with contracts greater than $10,000 OFCCP Adapted from Exhibit 8.11 Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management

46. Major U.S. Federal Laws and Regulations(continued) Act Requirements Covers Enforcement Agency Civil Rights Act of 1991 Prohibits discrimination (same as Title VII) Same as Title VII, plus applies Section 1981 to employment discrimination cases OFCCP Family and medical leave Act of 1993 Requires employers to provide 12 weeks of unpaid leave for family and medical emergencies Employers with more than 50 employees Department of Labor Adapted from Exhibit 8.11 Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management

47. Potential problems with diversity: Communication problems and misunderstandings Mistrust Conflict and incompatible approaches to resolving the conflict Lower group cohesiveness and greater subgroup formation How to leverage diversity: Know yourself Prepare yourself and your employees Provide support Guide behavior Managing Diversity Today

48. Where the Workers Are Percentage of workers located in developed and developing countries Adapted from Exhibit 8.12