CHAPTER SEVEN Managing Human Resource Systems

1. CHAPTER SEVENManaging HumanResource Systems

2. What Would You Do? You are the senior vice president of HR at Electronic Arts… • Videogames are the largest and fastest-growing sector of the entertainment industry • It’s your job to make sure that scarce game industry talent signs with EA • You need experienced people, who are both creative and disciplined How do you build a pipeline of talent and create a pool of applicants for managerial positions? How do you retain talented people?

3. Determining Human Resource Needs After reading the next section, you should be able to: • describe the basic steps involved in human resource planning.

4. FederalEmploymentLaws Adverse ImpactandEmploymentDiscrimination SexualHarassmentLaws Employment Legislation 1

5. Equal Pay Act of 1963 prohibits unequal pay for males and females doing similar work Civil Rights Act of 1964 prohibits discrimination on basis of race, color, religion, gender, origin Age Discrimination inEmployment Act of 1967 prohibits discrimination against persons age 40 and over Pregnancy DiscriminationAct of 1978 prohibits discrimination in employment against pregnant women Americans with Disabilities Act of 1990 prohibits discrimination on the basis of physical or mental disabilities Federal Employment Laws 1.1

6. Civil Rights Act of 1991 strengthened the Civil Rights Act of 1964 National LaborRelations Board guarantee employees the right toform and join unions Family & Medical Leave Act of 1993 permits workers to take up to 12 weeksof unpaid leave for pregnancy, etc. Occupational Safetyand Health Act requires employers provide asafe workplace for employees Federal Employment Laws (cont.) 1.1

7. Adverse Impact and Employment Discrimination DisparateTreatment Intentional discrimination that results in equally qualified people being treated differently AdverseImpact Unintentional discrimination that works to the disadvantage of member of protected groups Four-Fifths Rule Comparison of selection rates of a protected to a nonprotected group, to determine if adverse impact has occurred 1.2

8. QuidPro Quo employee outcomes depend on whether an individual submits to sexual harassment Hostile WorkEnvironment unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment Sexual Harassment 1.3

9. Common Managerial Mistakes in Sexual Harassment Laws • That the victim and harasser must be of the opposite sex • That harassment can only occur between coworkers or supervisors and subordinates • That only victims can file complaints Assuming: 1.3

10. Company Responsibilities • Respond immediately to make sure sexual harassment laws are followed • Write a clear, understandable sexual harassment policy • Establish clear reporting procedures • Comply with federal, state, and local sexual harassment laws 1.3

11. Finding Qualified Workers After reading the next two sections, you should be able to: • explain how companies use recruiting to find qualified job applicants. • describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers.

12. Job Analysis and Recruiting InternalRecruiting ExternalRecruiting Recruiting 2

13. Information Collected by a Job Analysis • work activities • tools and equipment used to do the job • context in which the job is performed • personnel requirements for performing the job Job Analysis and Recruiting 2.1

14. Recruiting Selection Training Performance Appraisal Separation HR Subsystems Job Description Job Specifications Job Analysis Job Analysis and HRM Adapted From Exhibit 12.3 2.1

15. Job Description written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job Job Specification a written summary of the qualificationsneeded to successfully perform a job Job Analysis and Recruiting 2.1

16. 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 sequence of jobs 2.2

17. Methods for External Recruiting • Advertising • Employee referrals • Walk-ins • Outside organizations • Employment services • Special events • Internet job sites 2.2

18. Selection Application Formsand Résumés References andBackground Checks Interviews SelectionTests 3

19. 1. Children 2. Age 3. Disabilities 4. Physical characteristics 5. Maiden name 6. Citizenship 7. Lawsuits 8. Arrest records 9. Smoking 10. Medical conditions Topics to Avoid on Application Blanks and during Selection Adapted from Exhibit 12.4 3.1

20. 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

21. Specific Ability Assessment Centers Cognitive Ability Selection Tests Biographical Data Work Sample Personality Selection Tests 3.3

22. 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

23. Situational Questions Behavioral Questions Background Questions Job-Knowledge Questions Questions in Structured Interviews 3.4

24. Guidelines for Conducting Effective Structured Interviews • Identify and define the KSAO needed for job • Develop key behavioral questions for each KSAO • For each KSAO , develop a list of things to look for in applicant’s responses Planning the Interview KSAO: Knowledge, skills, abilities, and other characteristics 3.4

25. Guidelines for Conducting Effective Structured Interviews • Create a relaxed interview atmosphere • Review the applicant’s information • Allocate adequate time • Put the applicant at ease • Tell the applicant what to expect • Obtain job-related information (refer to KSAO) • Describe the job and organization Conducting the Interview 3.4

26. Guidelines for Conducting Effective Structured Interviews • Review your notes immediately • Evaluate the applicant on each KSAO • Determine each applicant’s probability of success and make a hiring decision After the Interview 3.4

27. Cognitive Ability Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 76% Work Sample Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 77% What Really WorksUsing Selection Tests to Hire Good Workers 4

28. Assessment Centers 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 69% Structured Interviews 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 76% What Really WorksUsing Selection Tests to Hire Good Workers 4

29. What Really WorksUsing Selection Tests to Hire Good Workers Cognitive Ability + Work Sample Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 82% Cognitive Ability + Integrity Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 83% Cognitive Ability + Structured Interviews 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 82% 4

30. Developing Qualified Workers After reading the next two sections, you should be able to: • describe how to determine training needs and select the appropriate training methods. • discuss how to use performance appraisal to give meaningful performance feedback.

31. Training Needs TrainingMethods TrainingEvaluation Training 4

32. Impart Informationand Knowledge • films and videos • lecture • planned readings Develop Analyticaland Problem-SolvingSkills • case studies • coaching and mentoring • group discussions Practice, Learn, orChange Job Behaviors • on-the-job training • role-playing • simulations and games • vestibule training All of the above • Computer-based learning Training Methods Adapted From Exhibit 12.6 4.1

33. Reactions how satisfied trainees were with the program Learning how much employees improvedtheir knowledge or skills Behavior how much employees actually changedtheir on-the-job behavior Results how much training improvedjob performance Evaluating Training 4.2

34. MeasuringJob Performance SharingPerformanceFeedback Performance Appraisal 5

35. 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

36. Measuring Job Performance Improving Job Performance Measurements TrainPerformance Raters Improve Performance Appraisal Measures 5.1

37. Improving Performance Appraisal Measures • Objective performance measures • quantifiable outcomes (output, scrap, sales,customer complaints, or rejection rates) • Subjective performance measures • trait rating scales • behavioral observation scales (BOS) 5.1

38. Rater Training • Teach raters how to avoid errors • Improve rating accuracy • Video training and role playing often used 5.1

39. 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

40. Recommendations for Sharing Performance Feedback • Separate developmental feedback from administrative feedback • Base performance appraisal feedback sessions on self-appraisals • Eliminate the “grading” aspect of performance appraisal Performance Feedback 5.2

41. What to Discuss in Performance Appraisal Feedback Sessions • Overall progress • Problems encountered in meeting job requirements • Opportunities to improve performance • Long-range plans and opportunities • General discussion of possible plans andgoals for the coming year Performance Feedback 5.2

42. Keeping Qualified Workers After reading the next two sections, you should be able to: • describe basic compensation strategies and explain how they affect human resource practice. • discuss the four kinds of employee separations:termination, downsizing, retirements, and turnover. 6

43. Compensation Decisions EmploymentBenefits Compensation 6

44. Pay-Level Decisions • Should workers be paid at, below, or above current market wage? • above market pay makes it easier for managers to attract and retain employees • Job evaluation is used to determine the worth of jobs • pay the “going rate” 6.1

45. Variable Pay Structures Piecework Commission Profit sharing Employee stock ownership Stock options Pay-Variability Decisions 6.1

46. Pay-Structure Decisions • Hierarchical pay structures • big differences in pay among pay levels • work best for independent work • Compressed pay structures • fewer pay levels with smaller differences in pay among pay levels • work best for interdependent work 6.1

47. Employee 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 6.2

48. Employee Separations Downsizing Terminations Turnover Retirements 7

49. 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 7.1

50. Downsizing • Provide clear reasons for the layoffs. • Get information to avoid laying off employees with critical skills. • Training managers in how to tell employees. • Give employees the bad news early in the day. • Provide outplacement services and counseling. • Communicate with survivors. 7.2