07 HR Basics Rev

Managing Human Resource Systems
1
The Human Resource Management
Process
Recruiting
Attracting Qualified
Employees
Selection
Developing Qualified Training

Employees
Performance Appraisal
Keeping Qualified Compensation

Employees
Employee Separation
2
Copyright ©2008 Cengage Learning. All rights reserved
Beyond the Book
Human Resource Planning
Supply
Supplyand
andDemand
Demand Human
HumanResource
Resource
of
of Information
Information
Human
HumanResources
Resources Systems
Systems
3
Forecasting Demand and Supply
Internal
Internal Work
Work External
External
Factors
Factors Force
Force Factors
Factors
Forecast
Forecast
4
Beyond the Book
Internal Forecast Factors

 New positions  Transfers
 New equipment and  Deaths
technology  Promotions
 Eliminated positions  Organization’s mission
 Terminations  Productivity of current
 Retirements employees
 Resignations  Skills/education of
 Turnover current employees
5
Beyond the Book
External Forecast Factors

• Demographics of labor  Unemployment rate
supply  Labor unions
• Geographic population  Availability of
shifts applicants
• Manufacturing-to  Technological advances
service-to information-
based economy shift  Competitors
• Economic conditions  Growth of businesses
6
Beyond the Book
Forecast Methods
Direct
Direct Based
Based on
on projections
projections ofof cash
cash flows,
flows,
Managerial
Managerial expenses,
expenses, or
or financial
financial measures
measures
Input
Input
Based
Based on
on managers’
managers’assessment
assessment of of
Best
Best current
current head
head count
count plus
plus aa guess
guess on
on
Guess
Guess relevant
relevant internal/external
internal/external factors
factors
Based
Based onon statistical
statistical methods,
methods, such
such as
as
Statistical/
Statistical/ multiple
multiple regression,
regression, inin combination
combination
Historical
Historical Ratios
Ratios with
with historical
historical data
data
7
Recruiting
Job
JobAnalysis
Analysis Internal
Internal External
External
and
and Recruiting
Recruiting Recruiting
Recruiting
Recruiting
Recruiting
2
8
Job Analysis and Recruiting
Information Collected by a Job Analysis
 work
workactivities
activities
 tools
toolsand
andequipment
equipmentused
usedto
todo
dothe
thejob
job
 context
contextin
inwhich
whichthe
thejob
jobisisperformed
performed
 personnel
personnelrequirements
requirementsfor
forperforming
performingthe
thejob
job
2.1
9
Performance
Performance Separation
Recruiting
Recruiting Selection
Selection Training
Training Separation
Appraisal
Appraisal
HR
HR Subsystems
Subsystems
Job
Job
Job
Job Description
Description Specification
Specification
Job
JobAnalysis
Analysis
2.1
10
written
writtendescription
descriptionof
ofthe
thebasic
basictasks,
tasks,
Job
Job duties,
duties,and
andresponsibilities
responsibilitiesrequired
required
Description
Description of
ofan
anemployee
employeeholding
holdingaaparticular
particularjob
job
Job
Job aawritten
writtensummary
summaryofofthe
thequalifications
qualifications
Specification
Specification needed
neededto tosuccessfully
successfullyperform
performaajob
job
2.1
11
Internal Recruiting
• A pool of applicants who already
work for the company
• “Promotion from within”
• Improves employee morale and
motivation
• Reduces employer time and cost
• Job posting is the procedure for
internal advertising
• Career path is a planned
2.2 sequence of jobs
12
Methods for External
Recruiting
• Advertising
• Employee referrals
• Walk-ins
• Outside organizations
• Employment services
• Special events
• Internet job sites
2.3
13
Selection
Application
Application Forms
Forms References
References and
and
and
and Résumés
Résumés Background
Background Checks
Checks
Selection
Selection Interviews
Interviews
Tests
Tests
3
14
References and Background Checks
• References or background checks are not
always provided by previous employers
• Making background checks more effective

– dig deeper for more information
– get permission in writing
– document all checks
– consider hiring private investigators
3.2
15
Selection Tests
Specific
Ability
Assessment Cognitive
Centers Ability
Selection
Tests
Work Biographical
Sample Data
Personality
3.3
16
Interviews
• Unstructured Interviews
– free-flow of questions
• Structured Interviews
– interviewer uses standard set of prepared
questions
• Semi-structured Interviews
– some structure combined with interviewer
judgement
3.4
17
Questions in Structured Interviews
Situational
Situational Questions
Questions
Behavioral
Behavioral Questions
Questions
Background
Background Questions
Questions
Job-Knowledge
Job-Knowledge Questions
Questions
3.4
18
Developing Qualified Workers
After reading these sections,

you should be able to:
4. describe how to determine training needs

and select the appropriate training methods.
5. discuss how to use performance appraisal to
give meaningful performance feedback.
19
Training
Training
Training Training
Training Training
Training
Needs
Needs Methods
Methods Evaluation
Evaluation
4
20
Determining Training Needs
Identify
Identify Listen
Listen to
to
Performance
Performance Customer
Customer
Deficiencies
Deficiencies Complaints
Complaints
Conducting
Conducting
Needs
Needs
Assessments
Assessments
Survey
Survey Test
Test Employee
Employee
Employees
Employees Skills
Skillsand
and
and
and Managers
Managers Knowledge
Knowledge
4.1
21
Training Methods
•• films
filmsand
andvideos
videos
Impart
Impart Information
Information •• lecture
and lecture
and Knowledge
Knowledge •• planned
plannedreadings
readings
Develop
DevelopAnalytical
Analytical •• case
casestudies
studies
and
and Problem-Solving
Problem-Solving •• coaching
coachingand
andmentoring
mentoring
Skills •• group
groupdiscussions
discussions
Skills
•• on-the-job
on-the-jobtraining
training
Practice,
Practice, Learn,
Learn, or
or •• role-playing
Change role-playing
Change JobJob •• simulations
simulationsandandgames
games
Behaviors
Behaviors •• vestibule
vestibuletraining
training
All
All of
of the
the above
above •• Computer-based
Computer-basedlearning
learning
4.2
22
Evaluating Training
how
how satisfied
satisfied trainees
trainees were
were
Reactions
Reactions with
with the
the program
program
how
how much
much employees
employees improved
improved
Learning
Learning their
their knowledge
knowledge or
or skills
skills
how
how much
much employees
employees actually
actually changed
changed
Behavior
Behavior their
their on-the-job
on-the-job behavior
behavior
how
how much
much training
training improved
improved
Results
Results job
job performance
performance
4.3
23
Performance Appraisal
Measuring
Measuring Sharing
Sharing
Job
Job Performance
Performance
Performance
Performance Feedback
Feedback
5
24
Measuring Job Performance:
Common Rating Errors
• Central tendency
– all workers are rated as being average
• Halo error
– all workers are rated as performing at the same
level in all parts of their jobs
• Leniency error
– all workers are rated as performing at a high level
5.1
25
Measuring Job Performance
Improving
Improving Job
Job Performance
Performance Measurements
Measurements
Improve
Improve Performance
Performance Train
Train
Appraisal
Appraisal Measures
Measures Performance
Performance Raters
Raters
5.1
26
Improving Performance
Appraisal Measures
• Objective performance measures

– quantifiable outcomes (output, scrap, waste, sales,
customer complaints, or rejection rates)
• Subjective performance measures

– trait rating scales
– behavioral observation scales (BOS)
5.1
27
Subjective Performance
Appraisal Scales
5.1
28
Rater Training
• Teach raters how to avoid errors

• Improve rating accuracy
• Video training and role playing often used
5.1
29
Sharing Performance Feedback
Managers often fail to effectively give
employees performance feedback
360-degree feedback
boss, subordinates, peers, and the employee
best for employee development
5.2
30
Performance Feedback
What to Discuss in Performance Appraisal
Feedback Sessions
•• Overall
Overallprogress
progress
•• Problems
Problemsencountered
encounteredin
inmeeting
meetingjob
job
requirements
requirements
•• Opportunities
Opportunitiesto
toimprove
improveperformance
performance
•• Long-range
Long-rangeplans
plansand
andopportunities
opportunities
•• General
Generaldiscussion
discussionof
ofpossible
possibleplans
plansand
and
goals
goalsfor
forthe
thecoming
comingyear
year
5.2
31
Compensation
Compensation
Compensation Employment
Employment
Decisions
Decisions Benefits
Benefits
6
32
Compensation Decisions
Pay Pay Pay Employment
Level Variability Structure Benefits
• Job • Piecework • Hierarchical • Cafeteria

evaluation plans
• Commission • Compressed
• Flexible plans
• Profit sharing
• Payroll
• Employee deductions
stock
ownership
plans
• Stock options
Beyond
the Book
6.1
33
Pay-Level Decisions
• Job evaluation is used to determine the
worth of jobs
– pay the “going rate”
• Should workers be paid at, below, or above

current market wage?
– attracts a larger, more qualified pool of applicants
– increases the rate of job acceptance
– decreases the time it takes to fill positions
– increases the time that employees stay
6.1
34
Pay-Variability Decisions
• Piecework
• Commission
• Profit sharing
• Employee stock ownership plans
(ESOPs)
• Stock options
6.1
35
Pay-Structure Decisions
 Hierarchical pay structures

 big differences from one pay level to another
 work best for independent work
 Compressed pay structures

 fewer pay levels with smaller differences in pay
between pay levels
 work best for interdependent work
6.1
36
Beyond the Book
Employment Benefits
• Compensation other than direct wages
• Employee benefits are legally mandated:
– Social Security
– worker’s compensation
– unemployment insurance
• Cafeteria benefit plans
– employees can select from optional benefits
• Payroll deductions
37
Employee Separations
Terminations
Terminations Downsizing
Downsizing
Retirements
Retirements Turnover
Turnover
6.2
38
Terminating Employees
 Often mismanaged
 Minimize problems in firing employees
• firing should not be the first option
• firing should be for a good reason
• “employment at will”
• wrongful discharge
• firing should be done in private
6.2
39
Downsizing
1. Provide clear reasons for the layoffs.
2. Get information to avoid laying off employees with
critical skills.
3. Train managers how to tell employees.
4. Give employees the bad news early in the day.
5. Provide outplacement services and counseling.
6. Communicate with survivors.
6.3
40
Retirement
Early Retirement Incentive Programs…
• offer financial benefits to
encourage employees to retire.
• are attractive to many employees.
• are difficult to predict which or
how many employees will use the
program.
• may cause the company to lose
valuable employees.
6.4
41
Voluntary Employee
Turnover
 Loss of employees who voluntarily
choose to leave the company
 Functional turnover (encouraged)
• the loss of poor-performing employees
 Dysfunctional turnover
(discouraged)
• the loss of high performing employees
6.5
42
Beyond the Book
Human Resource
Information Systems
 Computerized employee information

systems use:
transaction processing
employee self-service
decision support
43
Human Resource Beyond the Book
Information Systems
Personal
Personal Data
Data Promotion
PromotionData
Data
Educational
Educational
Work
WorkHistory
History HRIS
HRIS Data
Data
Company
Company
Performance
Performance Employment
Employment
Appraisal
Appraisal History
History
44

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Managing Human Resource Systems

Developing Qualified Training

Keeping Qualified Compensation

Internal Forecast Factors

External Forecast Factors

• Making background checks more effective

After reading these sections,

4. describe how to determine training needs

• Objective performance measures

• Subjective performance measures

• Teach raters how to avoid errors

• Job • Piecework • Hierarchical • Cafeteria

• Should workers be paid at, below, or above

 Hierarchical pay structures

 Compressed pay structures

 Computerized employee information

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