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Chapter 9. Managing Human Resources and Diversity. HRM. No longer called “Personnel” Strategic Importance Legal Importance Goals of HRM Find the Right People ( Attract an effective work force) Manage Talent ( Develop an effective work force) Maintain an effective work force.
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Chapter 9 Managing Human Resources and Diversity
HRM • No longer called “Personnel” • Strategic Importance • Legal Importance Goals of HRM • Find the Right People (Attract an effective work force) • Manage Talent (Develop an effective work force) • Maintain an effective work force
Environmental Influences on HRM • Competitive Strategy • Mergers/Acquisitions/Downsizing • Globalization • Automation • Population Changes • Federal Legislation
Human Resource Planning • Set goals based on such factors as: • Demand for products or services • Available labor market • Available financial resources
Internal Recruiting • Candidates familiar with the organization • Less Costly • Generates commitment / morale
External Recruiting • Brings in new skills, ideas, etc. • Lack of established personal relationships may be desirable • Approaches: • Ads • State or Private employment agencies • College Placement Offices • Job fairs • Employee referrals
Realistic Job Preview (RJP) • Both Positive and Negative information about job and organization • Reduces turnover.
Suggestions for Successful Interviewing (as a Candidate) • Thoroughly pre-scout the employer • Make a good first impression • Ask permission to take notes • Think before answering questions • Ask pertinent questions • Watch your non-verbal behavior • Send a follow-up letter within 24 hrs. (to interviewer and anyone else involved in hiring)
Training and Development • On-the-job training (OJT) • Orientation • Classroom training • Programmed instruction • Computer-based instruction
Performance Appraisals Provide: • Consequences to Employees • Information to Employees • Information to Management
Performance Appraisalsare used for: Compensation 85.6% Performance Feedback 65.1 Training 64.3 Promotion 45.3 Personnel Planning 43.1 Retention/Discharge 30.3 Research 17.2 (600 Organizations Surveyed)
Performance Appraisal Inaccuracies • Stereotyping • Lack of Information • Halo Error • Homogeneity (Leniency, Central Tendency, or Strictness) • Recency Effects
Improving Performance Appraisal Techniques • Keep Better Records • Use Rankings • Multiple Raters, e.g., “360-degree Feedback” (including self-evaluation, peer review, customer feedback, etc.) • MBO • Behaviorally Anchored Rating Scales (BARS)
BARS Outstanding 5 If customer has defective merchandise, will arrange for repairs 4 Shares complete information on return policies 3 Will remember to say “shop again with us” 2 Delay customer without explanation 1 Be rude and disrespectful Unsatisfactory
Compensation Decisions • Wage Level • Organization as a whole in comparison to similar ones • Wage and Salary Structure • Differences between job types • Individual Differences • Due to performance, experience, education, etc.
Compensation Decisions Wage Level • Available Resources • Philosophy, Culture • Market Rates • Legal (minimum wage, etc.)
Job Evaluation Wage and Salary Structure • Point System • Skill • Effort • Responsibility • Job Conditions (Determines typical or average pay for a job, not a specific individual)
Benefits • 1/3 to 2/3 of labor costs (Every $1.00 you pay your employee is costing you at least $1. 50) • Cafeteria-Style Benefit Packages: recent trend (All employees do not need/want the same exact benefits)
Terminations • Use exit interviews • Treatment of departing employees affects remaining workers.
Benefits of Promoting Diversity • Develop potential of individuals and the organization and producing enhanced creativity and adaptability • Able to recruit the best employees (by having a larger pool) • Successful interaction in marketplace (i.e., relate to customers)
Costs of Ignoring Diversity • Reduced productivity and creativity • Corporate image tarnished • Financial: lose resources invested in recruiting and training when a dissatisfied employee leaves
Ethnocentrism = belief that one’s own group or subculture is superior Ethnocentric viewpoints produce a Monoculture which assumes that there’s only one way to think and to do things. Ethnorelativism = Belief that groups and subcultures are inherently equal. Ethnorelativism leads to Pluralism which accommodates several subcultures Ethnocentrism vs. Ethnorelativism
Increasing: Older Workers--------- Women-------------------- Non-Whites-------------- (White males now make up less than 40% of the workforce.) 2005: 15% ages 55+ (20% by 2015) (12% in 1990) 47% (47% in 2010) (45% in 1990) 27% (34% in 2008) (22% in 1990) The Changing Workplace
Women in Fortune 500 Companies – 1999 vs. 2002 vs. 2005 vs. 2010 • Female CEOs: 3 vs. 6 vs. 8 (13 in 2010) • Female Senior Officers: 12.5% vs. 15.7% vs. 16.4% (25.9 in 2010) • Companies with more female officers averaged higher return on equity and total return to shareholders than did those with fewer female officers. --------------------------------------------------------------- (Female-owned businesses employ more people than all Fortune 500 companies combined)
Age • Mixed Results on Job Performance • Citizenship Behaviors - Improve with age • Job Satisfaction - Increases with age
Immigrants • By 2006, immigrants will account for half of all new U.S. workers. • They are 50% more likely than Americans to have a graduate degree. • Almost 25% of all U.S. residents holding PhDs in science and engineering are foreign-born.
Equal employment opportunity (EEO) • An EEO employer does not discriminate on the basis of race, religion, national origin, gender, age. handicap • Government oversight by the Equal Emp. Opp. Commission (EEOC).
Affirmative Action • Goes further than EEO to attempt to remedy past injustices • Greatest efforts required of firms doing business with the government and/or having been convicted of past discrimination • May or may not involve quotas
The Glass Ceiling • Minorities and women in organizations often find an Invisible barrier preventing rise to top management • Because of a monoculture • People at the top tend to promote others like themselves
Sexual Harassment Definition now goes beyond sex crimes, coercion, offensiveness, etc., to include anything creating feelings of harassment
Management Approaches to Addressing Harassment Increase Sensitivity and Take Disciplinary Actions • Company diversity programs • Complaint and grievance procedures • Written policy statements • Workshops • Lectures • Role-playing exercises