Exam #2

ch. 5 Human resource planning: definition

identifying the number and types of employees the org will require to meet its objectives and gain advantage over competitors

-need clear idea of strengths/weaknesses of existing internal labor force; know what they want to do in future

- compares present state of org with goals for future, then identifies what changes (downsizing, train existing employees, hiring new), it must make in HR to meet those goals

forecasting

1st step in HRP; attempts to determine supply of and demand for various types of HR to predict areas within the org where there will be labor shortages or surpluses

statistical methods

capture historical trends in company's demand for labor. under right conditions, these methods predict demand and supply more precisely than a human forecaster can using subjective judgment

- useful when there is long, stable history that can be used to reliably detect relationships among variables; almost always have to be complemented with subjective judgment of experts

subjective judgement

when experts have no precedent, orgs rely on judgement of experts. pool best guesses is important source of ideas about future

forecast demand

for specific job categories or skill area, then investigate the likely demand for each. planner must forecast whether the need for people with necessary skills and experience will increase or decrease

trend analysis

most sophisticated level; constructing and applying statistical methods that predict labor demand for the next year, given relatively objective statistics from the previous year

leading indicators

statistics from trend analysis; objective measures that accurately predict future labor demand

- might include measures of economy (sales/inventory level), actions of competitors, changes in tech, trends in composition of workforce and overall population

internal labor supply

calls for detailed analysis of how many people are currently in various job categories or have specific skills within the org.

planner then modifies analysis to reflect changes expected in near future as result of retirement, promotions, transfers, voluntary turnover, termination

transitional matrix

chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period

- answers 2 ?'s- where did people go, where did people come from?

- useful for charting historical trends in company's supply of labor; more important, if conditions remain constant, can b used to plan for future

- planner should forecast external labor market- size, unemployment, people

purpose of goal setting

setting specific numerical goals is to focus attention on problem and provide basis for measuring orgs success in addressing labor shortages/surpluses.

- goals should come directly from analysis of labor supply/demand; indicate specific figure indicating what should happen with job category/skill area and specific timetable for when results should be achieved

options for reducing surplus

downsizing, pay reduction, demotion, transfers, work sharing, hiring freeze, natural attribution, early retirement, retraining

- cause different amount of human suffering

options for avoiding shortage

overtime, temp employees, outsourcing, retrained transfers, turnover reductions, new external hires, technological innovation

- differ in how easily the org can undo the change if it no longer faces a labor shortage

- planning stage critical; options differ widely in expense, speed, and effectiveness

core competency

set of knowledge and skills that make the org superior to competitors and create value for customers

downsizing

planned elimination of large numbers of personnel with the goal of enhancing the orgs competitiveness (promote future competitiveness)

4 objectives of downsizing

o Reduce costs- labor is large part of total costs

o Replacing labor with technology- close outdated factories, automating, or introducing other tech changes reduce need for labor. Labor savings outweigh cost of new tech

o Mergers and acquisitions- when orgs combine, often need less bureaucratic overhead, so layoff managers and some professional staff

o Moving to more economical locations

why many downsizing efforts fail

long-term effect of improperly managed downsizing effort can be negative (loss of talent, disrupts social network; creative and flexible). Many companies end up re-hiring (often eliminate people who are irreplaceable). employees who survive purge become self-absorbed and afraid to take risks (motivation drops b/c any hope of future promotion dies). Many employees look for other employment; negative publicity can hurt image in labor market, so harder to recruit employees later

early retirement programs

group has no intention of retiring soon b/c improved health of older people, jobs becoming less physically demanding, concerns of long-term viability of SocSec and pensions, laws against age discrimination

- more lucrative programs succueed; encourage lower-performing older workers to retire; sometimes work so well that too many workers retire

- Many moving from early-retirement programs to phased retirement program- reduce number of work hours/cost of them; ease into retirement

employing temp workers and contract workers

(most widespread) use temp agency that specializes in linking employers with people who have necessary skills; employer pays agency, agency pays temp worker. Employers may also contract directly w/ individuals (professionals) to provide particular service

temporary workers

gives flexibility employers need to operate efficiently when demand for products changes rapidly. Also offer lower costs- frees employer from administrative tasks and financial burdens associated with being the “employer of record”.

- agency may hire/train; temp workers offer objective POV or experience

How to: using temp and contract employees

-Full-time employees perceive as threat to job security; attitudes interfere w/ cooperation

-manage situation by completing all downsizing efforts before bringing in temp/contract workers

-If upswing in demand follows downsizing, org should grant overtime to core employees. Extended stretches eventually take a toll on full-time employees, so they’ll accept temp workers to help lessen load

-Org may also select non-threatening temp workers

-avoid treating like second-class citizens

contractor

obtains workers for limited assignments by entering in to contracts with them; if person is an independent contractor, company does not pay employee benefits. Savings can be significant

-Company not supposed to directly supervise the worker; can tell worker what criteria finished assignment should meet, but not where and what hours to work

outsourcing

contracting with another organization to perform a broad set of services (same or better quality at lower cost)

- Outside company specializes in service and can benefit from economies of scale (economic principle that producing something in large volume tends to cost less for each additional unit that producing small volume).

- 1^st uses of outsourcing emphasized manufacturing and routine tasks. Tech advances in computer networks and transmission sped up outsourcing process

challenges to outsourcing

o quality-control, security violations, poor customer service

to ensure outsourcing success

-Look for experienced providers with adequate resources

-Do not offshore any work that’s propriety/require tight security

-Start small and monitor work closely, especially in beginning, when problems are likely

-Look for opportunities to outsource work in areas that promote growth

overtime and expanded hours

(simpler and less costly) downside of overtime- employer must pay non-management employees 1and a half times their normal wages for work done overtime. Short-time- workers appreciate added compensation for overtime. Long-term- feel stress and frustration

case H-2B visa program

admits foreign workers for jobs lasting up to 6 months. Employers file application w/ dep of labor, dep of state, dep of homeland security, must prove they cannot fill jobs with American workers

-Downside- subject to changing government policies. Federal gov’t sets a limit, cap, on number of H-2B visas that may be issued each year

implementing

org must hold some individual accountable for achieving goals; person must also have authority and resources needed to accomplish goals (issue regular progress reports so org can see all activities occur on schedule and early results expected)

evaluation

checking whether org has succeeded in avoiding labor shortages/surpluses (measure #’s). Identify which parts of planning process contributed to success/failure.

affirmative action

to manage diversity or meet government requirements; org looks at representation of subgroups in labor force (proportion of women and minorities)

applying HR planning

- Planning looks at representation of these employees (women/minorities) in job categories/career tracks. Can compare proportion of employees who are in each group with proportion each group represents in labor market.

workforce utilization review

comparison of proportion of employees in protected groups w/ proportion that each group represents in relevant labor market (organization)

- If underutilized, could result from problems in selection or internal movement (promotion, etc.)

-Org must assess current utilization patterns, forecast how likely to change in near future, if analysis shows underutilization, org may need to set goals/timetables for change. May identify new strategies for recruitment/selection, evaluate success

recruiting

any activity carried on by the org with the primary purpose to identifying and attracting potential employees

-Creates buffer between planning and actual selection of new employee

-Goals of recruiting (encouraging qualified people to apply for jobs) and selection (deciding which candidates would best fit) are different enough that they are most effective when performed separately

3 areas of recruiting

Personnel policies- influence characteristics of position to be filled

Recruitment sources- influence kinds of job applicants an org reaches

Characteristics and behavior of recruiter- affect characteristics of both vacancies and applicants (dependent on applicant’s decision to accept offer and org decision to make offer)

personnel policies

Orgs personnel policies are its decisions about how it will carry out HRM. Influence nature of positions that are vacant

personnel policies especially relevant to recruitment

Internal vs. external recruiting- internal (promote from within); affect nature of jobs, recruitment sources, nature of applicants

Lead-the-market pay strategies- pay more than the current market wages for a job (bonuses, stock options, other forms besides wages)

Employment-at-will policies- employment principle, if no specific employment contract saying otherwise, employer/employee may end an employment relationship at any time, regardless of cause

due-process policies

policies that formally lay out the steps an employee may take to appeal the employer’s decision to terminate that employee (more attractive to applicants; imply greater job security and concern for protecting employees)

image advertising

advertising designed to create a generally favorable impression of the org

- Important for highly competitive labor markets that perceive themselves as having bad image

- Influences degree to which person feels attracted to org (especially if persons traits match orgs). Applicants sensitive to issues of diversity/inclusion, so org should ensure their image ad reflect broad nature of market from which intent to recruit

internal sources

employees who currently hold other positions in org

- managers may also recommend candidates

- affects kinds of people org recruits

job posting

process of communicating info about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, and anywhere else the org communicates with employees

advantages to internal sources

- generates applicants who are well known to org, applicants relatively knowledgeable about org vacancies (minimizes unrealistic expectations about job), generally cheaper and faster

external sources

good for entry-level and specialized upper-level positions. Expose org to new ideas/ways of doing business.

direct applicants

people who apply for a vacancy without prompting from the org

-Advantage- many already sold on the org

-Self-selection- done research and concluded there is enough fit between themselves and the vacant position to warrant submitting an application. When it works, eases the pressure on the orgs recruiting and selection system

referrals

people who apply for a vacancy because someone in the org prompted them to do so (largest share of new employees hired)

-Form of self-selection through friends, relatives, acquaintances

-Downside- limit likelihood of exposing the org to fresh viewpoints. Contribute to practices that appear unfair

nepotism

practice of hiring relatives

benefits of external sources

cost less than formal recruiting (best source of new hires)

advertisements in newspapers and magazines

o Typically generate less desirable group of applicants; greater expense; however, employers cannot fill vacancies through direct applicants/referrals, so usually need to advertise

person designing ad needs to answer 2 ?'s

what do we need to say

to who do we need to say it

what do we need to say

· Give readers enough info to evaluate job and requirements so they make well informed judgment about their qualifications (vague- too many applicants, too much info- too few qualified candidates)

to whom do we need to say it (where to place ad)

Classified section of local newspapers. Inexpensive and reach many people. Downside- offers little ability to target skill levels; typically people reading classifieds are either over or under qualified

-For reaching specific labor market (skill levels and more people who are employed), org may get better results from ad in professional or industry journals.

electronic recruiting

online ads/company web site (easy to use); rose 24% over previous year. Accepting applicants for smaller, less well-known org is not so successful b/c fewer people likely to visit. Niche boards- smaller, tailored web sites; focus on certain industries, occupations, geographic areas.

public employment agencies

Social Security act of 1935 requires everyone receiving unemployment $ register with local state employment office. USES- employment service- ensure unemployed individuals get off state aid and back on employer pay roll

private employment agencies

- serve white collar market as opposed to blue collar (public agencies)

- Workers can sign up whether or not currently employed

- Charge employers for providing referrals

- Executive search firm- “headhunters”,managers/professionals. Serve as buffer, provide confidentiality between employers and recruit

colleges and universities

placement services, on campus interviewing most important source of recruits for entry-level professional and managerial vacancies. College internship program, job fairs

yield ratio

- expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next

o Can determine which source is best/most efficient for type of vacancy

cost per hire

cost of using particular recruitment source for particular type of vacancy.

recruiter characteristics

effects nature of both job vacancy and applicants generated. Often involved late in recruitment process

- choose whether their specialists in HR or experts in particular jobs (applicants perceive HR specialists as less credible and less attracted to job). Need to take extra step to ensure they’re perceived as knowledgeable and credible

applicants respond positively to recruiters when

they perceive them as warm (care about applicant, enthusiastic about their potential) and informative (provides info applicant is seeking. Characteristics like age, sex, race is complex and inconsistent

realistic job preview

background info about jobs positive and negative qualities

enhancing recruiter impact

o Recruiters should provide timely feedback

o Recruiters should avoid offensive behavior

o Org can recruit with teams rather than individual recruiters

ch. 6 selection

Process through which organizations make decisions about who will or will not be allowed to join the organization

steps in selection process

1. Screening applications and resumes

2. Testing the reviewing work samples

3. Interviewing candidates

4. Checking references and backgrounds

5. Making a selection

criteria for evaluating selection methods

reliability

validity

generalizability

utility

legality

reliability

The extent to which a type of measurement is free from Random error

Consistency or stability of a measure

A measure should yield the same estimate on repeated use

This assumes that what is measured has not changed

Usually calculated with correlation coefficients

validity

Extent to which performance on a measure is related to what the measure is designed to assess

Whether an assessment allows us to make confident and accurate decisions

criterion-related validity

validity coefficient- correlation between predictor (test score) and criterion (job performance)

approaches:

Predictive validation- Relationship between all applicants’ test scores and their future performance

Time lag between collection of predictor & criterion data

Concurrent validation- Relationship between existing employees’ test scores and existing measures of their performance

No time lag

content related validity

Extent to which test covers the entire domain of interest (worker behaviors and/or attributes)

Match between test content and job content

Assessed by subject matter experts

construct validity

Test measures the construct(s) that it is designed to measure.

Match between high test score and high level of construct

generalizability

- Validity in other contexts beyond the context in which the selection method was developed

utility

The extent to which a selection method provides economic greater than its cost

legality

Important: business necessity, validity, and reasonable accommodation

Illegal: race and sex norming, gathering information on protected status (even indirectly)

job application

contact info, work experience, education, applicant signature

resume- created by applicant

references- vary in amount of info provided (legal issues- defamation and misrepresentation)

background checks- verify applicants info

employment tests

Aptitude tests- Assess how well a person can learn or acquire skills and abilities

Achievement tests- Assess a person’s existing knowledge and skills

Physical ability tests
Cognitive ability tests
work samples
personality test
honesty test

physical ability tests

measure muscular power, endurance, flexibility, balance, and coordination

cognitive ability test

Measure mental abilities (e.g., verbal skills, quantitative skills, reasoning ability)

Issue: disparate impact

Possible solutions:

Race or sex norming- adding pts to ppl score

Banding

work samples

Test skills for specialized tasks

Can involve simulating a work setting

Assessment centers: assess management potential based on multiple selection methods to rate applicants on management potential. (In-basket tests, role plays, leaderless group discussion LGDs)

personality test

Big five personality Model

Opened to experience (inquisitiveness)

Conscientiousness

Extraversion

Agreeableness

Neuroticism (opposite of adjustment)

- Faking is not a big deal in a selection system; able to score higher on personality

honesty test

1. Overt integrity test

2. Personality based integrity test; less overt, not on the surface, less obvious.

interviews

very commonly used; questions asked to collect info and/or make inferences about applicant

types of inferences-body language, well spoken...

- non-directive (unstructured) interview- interviewer has discretion in choosing ?'s to ask

- structured interview- predetermined set of ?'s

situational- describes situation likely to arise on the job, & ask what to do

behavior description int- ask how handled a type of situation in past

advantages of interviewing

o Evidence of communication and interpersonal skills

o Most valid when focused on job knowledge and skills

disadvantages to interviewing

o unstructured interviews can be unreliable and low on validity

o costly

o Possibility for subjectivity or bias

making selection decisions (2 approaches)

combination of ability and motivation; best fit between candidate and position

- multiple hurdle model

- compensatory model

multiple hurdle model

Involves multiple stages of the selection process

Establishes a minimum score for each of the predictors

Candidates are cut at each stage of process

compensatory model

Scores on all predictors are added together

A higher score on one predictor can offset a lower score on another predictor

Predictors can be weighted based on relative importance of each test

ch. 7 training

Planned efforts to help employees acquire job-related knowledge, skills, abilities, and behaviors, with the goal of applying these on the job

instructional design

Systematically developing training to meet specified needs

learning management system (LMS)

computer application that automates the administration, development, and delivery of training programs

- used to carry out instructional design stages more efficiently

stages of instructional design

1. Assess needs for training- what the organization requires that’s its ppl learn

2. Ensure readiness for training- in terms of attitudes, motivation, basic skills, and work environment.

3. Plan training program (objectives, trainers, methods)

4. Implement training program

5. Evaluate results of training- provides feedback for planning future training programs.

stage 1: needs assessment

Evaluating the organization, employees, and tasks to determine what kinds of training, if any, are necessary (needs assessment answers questions in three broad areas: org, person, task)

Ex: decision to produce new technology, apply new technology, or design new jobs…. Need skills!

organization

1. what is the context in which training will occur?

a. organization analysis- Determining the appropriateness of training by evaluating the characteristics of the organization

Ex: train those who will be laid off in job search skills, and the ones staying need cross-training so they can handle a wider variety of responsibilities.

person

1. who needs training?

a. person analysis- Determining individuals’ needs and readiness for training

Ex: manager should identify all the primary variables that influence performance

Person’s ability and skills, their attitudes and motivation, organizations input, performance feedback, and positive consequences to motivate good performance.

task

1. What subject should the training cover? – conducted with person’s analysis

a. task analysis- Identifying and analyzing tasks that need to be trained

Ex: replacing a light bulb, install a light fixture, replace a light switch (decide the level of importance, frequency, and difficulty signal need for training)

stage 2: readiness for training

combination of Employees characteristics and positive work environment that permit training

employee characteristics

Ability-learn the subject matter (cognitive ability), favorable attitudes toward the training

Motivation to learn

work environment

encourages learning and avoids interfering with the training program

-Situational constraints- are the limits on training’s effectiveness that arise from the situation or the conditions within the organization. Ex: lack of money, time and proper tools for training.

-Social support- the ways the organizations people encourage training, including giving trainees praise, encouraging words, sharing info about participants in training programs.

stage 3: planning the training

- When the needs assessment indicates a need for training and employees are ready to learn, the person responsible for training should plan a training program that directly relates to the needs identified.

why establish training objectives?

based on the objectives that planner decided who will provide the training, what topics the training will cover, what training methods to use and how to evaluate the training.

Employees will know what the training will accomplish

Organizations can measure if training met its objectives

to select a training service..

the organization sends out a RFP (request for proposal)- a document outlining the type of service needed, number of employees trained, date to complete etc

effective training objectives have several characteristics

include statement of what employee is expected to do, quality or level of performance acceptable, and condition under which employee is to apply what is learned (ex. physical conditions, mental stresses, equipment failure)

training methods

presentation methods

hands-on methods

group-building methods

presentation methods

1. Goal: Convey facts and information

a. Classroom instruction:

Course material via lecture

Advantage: Low cost (money and time)

Disadvantage: May be passive

Related method: distance learning

b. Audiovisual and computer-based training

Course material via CD, DVD, workbooks, podcasts, or internet

Advantages: multimedia capabilities, low cost, customization, trainee control

Disadvantage: trainee control

e-learning

receiving training via the internet or the orgs intranet

hands-on methods

1. Goal: Teach specific skills

a. On the job training

Learn by practice

Advantage: realistic

Disadvantage: quality can vary depending on the trainer

b. Simulations *monsters’ Inc. example

Represent a real-life situation related to the job

Advantages: safety, realism

Disadvantage: development and equipment costs

on-the-job training

training methods in which person with job experience and skill guides trainees in practicing job skills at the workplace

apprenticeship

work-study training method that teaches job skills through a combination of on-the-job training and classroom training

internship

on-the-job learning sponsored by an educational institution as a component of an academic program

to be effective, OJT programs should include the following characteristics

org issue policy statement describing purpose, specify who is accountable, review OJT practices at companies in similar industries, managers and peers should be trained in OJT principles

simulation

training method that represents a real-life situation, with trainees making decisions resulting in outcomes that mirror what would happen on the job

avatars

computer depictions of trainees, which the trainees manipulate in an online role-play

virtual reality

computer-based technology that provides an interactive, three-dimensional learning experience

group-building methods

Establish and improve teamwork

a. Behavioral modeling (role playing)

Observe demonstration of behavior, practice behavior, receive feedback (be able to make adjustments in order to improve behavior)

Advantage: realistic

Disadvantage: quality can vary depending on the model (whoever is demonstrating need to make sure they are doing it correctly)

b. Experiential programs - adventure learning; sense of reliance on one another.

experiential programs

participants learn concepts and apply them by simulating behavior involved and analyzing the activity, connecting it with real-life situations

Advantage: awareness of self and others

Disadvantage: Possible physical demands (walking over hot coals)

adventure learning

teamwork and leadership training program based on the use of challenging, structured outdoor activities

cross training

team training in which team members understand and practice each other's skills so that they are prepared to step in and take another's place

coordination training

team training that teaches the team how to share info and make decisions to obtain the best team performance

team leader training

training in the skills necessary for effectively leading the orgs teams

action learning

training in which teams get an actual problem, work on solving it and commit to an action plan, and are accountable for carrying it out

stage 4: implementing training

Link training to the job

Physical & psychological fidelity (ex: training operation room, pretending its real so you can practice) (ex: wax, fence, house, deck- fidelity is low)

Provide practice opportunities- ex: karate skills

Provide feedback

stage 5: evaluating training

Prepare for this during Stage 3 (defining objectives, goals)

Goal: transfer of training

On-the-job use of knowledge, skills, and behaviors learned in training

Requires learning and opportunity to apply learning

measures of training success

a. Internal criteria (within training) – while you’re in the middle of training, success or not?

Reactions : impressions and feelings

i. Learning : proficiency gained (giving a test)

b. External criteria (on the job)

i. Behavior: performance on the job (are you using your karate skills right on the job?)

Results : economic value

designing training evaluation

a. control group design (trained ppl vs. non trained ppl)

i. Measure trained and untrained employees

b. Pretest-posttest design (training vs. non training)

i. Measure trainees before and after training

c. Posttest only design

i. Measure trainees after training

- Ideally, use pretest-posttest design with control group (is training making a difference beginning vs. end and to people who had training or none)

readability

difficulty level of written materials

transfer of training

on-the-job use of knowledge, skills, and behaviors learned in training

org can measure learning by asking employees 3 questions

do you perform the task?

how many times do you perform the task?

to what extent do you perform difficult and challenging learned tasks

employee orientation

prepare employees to perform their jobs

learn about the organization

Establish work relationships

orientation

training designed to prepare employees to perform their jobs effectively, learn about their org, and establish work relationships

diversity

training designed to change employee attitudes about diversity (influence ppl to work in a diverse workforce) and/or develop skills to work in diverse workforce

why it fails--from the diversity training group

No activities besides training

No commitment by managers

No needs assessment

No follow-up

Exam #2

Management 352 with Idk at San Diego State University

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