Management Principles

1. Management Principles

2. Principles of Management • Principle – A basic truth or law • Example • Principle of Gravity explains why objects fall to the ground when they are dropped • Principle of Inertia explains why objects at rest remain at rest.

3. Principles of Management • Scientists prove principles are true by performing controlled experiments • These experiments test their hypothesis • An idea about the way something works • After the hypothesis has been tested many times and proven to be true, The hypothesis becomes a LAW, or PRINCIPLE

4. Principles of Management • A controlled experiment in the business world is harder to do due to: • Control • Exact observations • Exact businesses

5. Principles of Management Most management principles are developed through observation and deduction Observation – watching over the work done by others Deduction – the process of drawing a general conclusion from specific examples

6. Principles of Management Principles are interpreted differently Principles should serve as a guide, not a rigid law If a principle does not apply to a specific situation, it is the responsibility of the manager not to use the basis of the principle

7. Principles of Management • Examples • A pleasant work environment contributes to productivity • The work day should start at the same time for all employees • The dress code should be professional in order to create a setting in the workplace that resembles professionalism • Work schedules are created and should be followed by all employees

8. How Companies Select Employees • Human Resources Department • Recruits employees • Manages training and compensation • Plans for future personnel needs • Advertise employment opportunities • Interview potential employees • Select applicants • Fill the position

9. How Companies Select Employees • Human resource department will develop an employment plan • First step is to develop a job description • A written statement identifying the type of work and necessary qualifications for a job • Job description sets the standard against what the applicants are measured

10. How Companies Select Employees • Step 2 is to determine the target applicant pool and advertise the position. • Advertise: • Ad in newspaper (classifieds) • Job Fair • Internet job search websites • www.monster.com • www.careerbuilder.com • www.hotjobs.com

11. How Companies Select Employees • The standard selection process has four steps • Preliminary screening • Testing • Employment interviews • Personal judgement

12. How Companies Select Employees Preliminary Screening • Hundreds of letters and resumes may arrive in response to a job posting • Human Resources must sort these applicants and find the ones that are qualified for the job according to the job description • Example • Southwest Airlines receive 129,000 resumes and hire 3,411 people every two years. On average

13. How Companies Select Employees Preliminary Screening When the pool has been narrowed, other team members are asked to help evaluate. At this stage, HR will check the applicants references and credentials A scheduled interview or test will be granted

14. How Companies Select Employees Testing Every job will have applicants with similar credentials Tests provide a uniform evaluation of the qualifications of each applicant

15. How Companies Select Employees Testing • A common employee test is the Predictive Index (PI) • A ten-minute personality test used to identify potential employees strengths and weaknesses • More than 3000 companies use the PI

16. How Companies Select Employees • Other types of employment tests: • Aptitude test – measures capacity to learn a particular subject or skill • Psychomotor test – measures strength, dexterity, and coordination • Job Knowledge test – measures knowledge related to a particular job • Proficiency test – measures performance on a sample of the work required in the job • Psychological test – attempts to define personality traits • Polygraph test – (lie detector test) – records changes in physical response as a person responds to questions to determine whether responses are truthful

17. Test Types • Aptitude Test • www.3smartcubes.com > aptitude test • Psychomotor test • Test of Basic Aviation Skills – U.S. Air Force • Job Knowledge Test • www.allthetests.com >knowledge > job knowledge • Proficiency Test – AHSGE, Math Proficiency Exam • Psychological Test • www.psychologytoday.com > tests

18. How Companies Select Employees • Employment test must meet requirements for: • Validity • Reliability • A test is valid if it measures factors relevant to the job • A test is reliable if the same person or group taking it again under similar circumstances get similar results

19. Interview Process Interviews are the personal assessment of the Employee selection process Personal contact allows more to be learned about the applicant than a resume and cover letter can convey

20. Interview Process • As the interviewer, you should: • Set aside space for the interview • Private room if available • If not, interview should be private from other job applicants • Put the applicant at ease • Make them feel comfortable with small talk or cup of coffee • Interviewer should be outgoing and easy to talk to • Take control of the interview • Take notes to record important points • Control the direction of conversation without dominating

21. Interview Process • As the interviewee, you should • Be dressed professional • Be prepared for the interview by knowing about the job offer • Be ON TIME • On time is late, BE EARLY • Relax and be yourself • If you put on an act, you will have to keep up the act if you get the job • Speak honestly • Do not exaggerate you or your skills or accomplishments

22. Interview Process • The interview process may be: • Structured • Unstructured • An applicant may be asked for another interview that is more in depth and longer called a: • Second Interview

23. Interview Process Structured Interview • The interviewer prepares a list of questions, which allows them to remember to ask each question to each applicant • Why are you leaving your current job • Where do you want to be in five years • What are your best qualities • Why do you feel you will be good for the job • Useful when interviewing many applicants for the same position because it provides UNIFORM info from each applicant

24. Interview Process Unstructured Interview A conversation between interviewer and applicant in a relaxed atmosphere The employer will ask open ended questions, allowing the applicant to talk openly Applicant may also ask questions about the organization

25. Interview Process Unstructured Interview Not always reliable due to not all important questions being asked and answered. Bias may be present due to direction of questions

26. Interview Process • You do not get a second chance at First impressions • Be Professional • HALO EFFECT • A single characteristic dominates the interviewers impression of the applicant • Examples • Pleasant personality • Good personal skills

27. Personal Judgment • The final step in the Employee Selection Process • Who gets the job • Who will have the most success at the offered job • What personal characteristics match the applicant to the job

28. Personal Judgment • If more than one applicant is qualified, the employer must make a judgment as to who would be most successful • If the previous steps were performed correctly, the judgment should not be a hard process • Preliminary Screening • Testing • Personal Interviews

29. Personal Judgment • If no applicant is qualified or meets the job criteria, a higher salary might be offered to attract more applicants • Company may advertise in a different newspaper • May post on various job search websites • It is best to wait for a qualified applicant that to settle on a mediocre hire

30. Legal Considerations Legal action may ensue if tests are used without ensuring fairness, validity, and reliability Results must be evaluated objectively, based on job-related attributes

31. Legal Considerations • No consideration can be based on: • Race • Religion • Sex • Sexual Preference • National Origin • Marital Status

32. Legal Considerations • Griggs vs. Duke Power Company • A case brought by a group of African-American employees at a power generating plant • Employees objected to the requirement of a high school diploma or the passing of an intelligence test as conditions of employment in or transfer to jobs at the plant

33. Legal Considerations • Griggs vs. Duke Power Company • The court decided that if a test negatively impacts female or minority groups applicants, then the company must prove validity and prevalence to job requirements. • Even if the company does not mean to discriminate, it may unintentionally select an unfair test.

34. Legal Considerations • Albemarle Paper Company vs. Moody • The North Carolina Paper Mill was seeking the reversal of a Court of Appeals decision that eliminated its testing program and awarded back pay to a group of African American employees • The managers argued that in addition to creating diversity programs, they had statistical proof that their testing was job-related • A lower court noted that they had made efforts to deal with segregation.

35. Legal Considerations • Albemarle Paper Company vs. Moody • The Supreme Court agreed with the Court of Appeals that the intentions were not the main issue • It held that it was not enough to show that the best workers did well on the tests, or that a testing program improved the overall quality of the work force • Any tests had to be specifically related to performing the job in question