CHAPTER 9: HUMAN RESOURCES AND DIVERSITY 0 LEARNING OBJECTIVES Explain role of human resource management in organizational strategic planning. Describe federal legislation and societal trends that influence human resource management. Explain what changing social contracts between organizations and employees means for workers and HR managers. Describe the tools managers use to recruit and select employees. Explain how organizations maintain a workforce through the administration of wages and salaries, benefits, and terminations. Explain the dimensions of employee diversity and why ethno-relativism is the appropriate attitude for today?s organizations. Explain affirmative action and why factors such as the glass ceiling have kept it from being more successful. Explain the importance of addressing sexual harassment in the workplace. 0 HUMAN RESOURCE MANAGEMENT Activities undertaken to attract, develop, and maintain an effective workforce within an organization. STRATEGIC HUMAN RESOURCE MANAGEMENT GOALS Exhibit 9.1 0 CURRENT STRATEGIC ISSUES Becoming more competitive globally Improving quality, productivity, & customer service Managing mergers & acquisitions Applying new information technology for e-business 0 ENVIRONMENTAL INFLUENCES ON HRM Building Human Capital Globalization Information Technology Human Resource Information Systems Federal Legislation Discrimination Affirmative Action 0 GLOBALIZATION HR must address the complexity that results from recruiting, selecting, developing, and maintaining a diverse workforce on a global scale 0 INFORMATION TECHNOLOGY Human resource information technology - an integrated computer system designed to provide data and information used in HR planning Traditional HR to e-HR - significantly affected every area of human resource management 0 Some organizations are close to a paperless HRM system ? saves time, money, frees staff FEDERAL LEGISLATION Discrimination - hiring or promoting of applicants based on criteria that are not job relevant Affirmative Action - policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups 0 MAJOR FEDERAL LAWS - HRM Equal Opportunity/Discrimination Laws Compensation/Benefits Laws Health/Safety Laws 0 THE CHANGING SOCIAL CONTRACT New Contract Old Contract Employee Employer Employability, personal responsibility Partner in business improvement Learning Job security A cog in the machine Knowing Continuous learning, lateral career movement, incentive compensation Creative development opportunities Challenging assignments Information and resources Traditional compensation package Standard training program Routine jobs Limited information Exhibit 9.3 0 HR ISSUES IN THE NEW WORKPLACE Employer of choice Teams and Projects Temporary Employees Technology Work-Life Balance Downsizing 0 HR ISSUES IN THE NEW WORKPLACE An employer of choice is a company that is highly attractive to potential employees because its human resource practices focus on both Tangible benefits and Intangible benefits 0 TEAMS AND PROJECTS IN THE NEW WORKPLACE Major trend in today?s workplace Growth in project management Job categories are collapsing Employees manage multiple tasks and responsibilities 0 TEMPORARY EMPLOYEES IN THE NEW WORKPLACE At the start of the 21st century, largest employer in U.S. was a temporary employment agency, Manpower, Inc. Temporary Employees do everything from data entry to interim CEO Contingent workers - temporary, contract, lease employees. 0 TECHNOLOGY IN THE NEW WORKPLACE Telecommuting and virtual teams are related trends Telecommuting - using computers and telecommunications equipment to perform work from home or another remote location Work anywhere - wireless Internet devices, laptops, cell phones, fax machines Extreme telecommuting - people live and work in countries far away from the organization?s physical location WORK/LIFE BALANCE IN THE NEW WORKPLACE Telecommuting is one strategy Flexible scheduling is important in today?s workplace ? 27% of workforce has flexible hours Broad Work-Life Balance initiatives ? critical retention strategy: on-site gym & childcare, paid leaves & sabbaticals 0 DOWNSIZING IN THE NEW WORKPLACE Intentional, planned reduction in the size of a company?s workforce Smoothing the downsizing process Communicate with employees Provide information Provide assistance Use training and development 0 ATTRACTING AN EFFECTIVE WORKFORCE The first role of HR is to attract valued, productive and satisfied employees through planning 0 MATCHING MODEL An employee selection approach in which the organization and the applicant attempt to match each other?s needs, interests, and values 0 ATTRACTING AN EFFECTIVE WORKFORCE 0 Exhibit 9.4 HUMAN RESOURCE PLANNING Forecasting of human resource needs and the projected matching of individuals with expected vacancies 0 What new technologies and emerging? What is the volume of business likely to be? What is turnover, is it avoidable? RECRUITING Internal External E-Recruiting 0 ASSESSING ORGANIZATIONAL NEEDS Job Analysis Job Description Job Specification 0 SARA LEE: REQUIRED SKILLS FOR FINANCE EXECUTIVES Exhibit 9.5 REALISTIC JOB PREVIEW A recruiting approach that gives applicants all pertinent and realistic information about the job and the organization Organizations must ensure that their recruiting practices conform to the law SELECTING Selection - assess desired employees Determine of there is a ?fit? Validity - relationship between an applicant?s score on a selection device and his or her future job performance 0 APPLICATION FORM Collect information about applicant Education Job experience Background characteristics 0 INTERVIEWING AN APPLICANT Know what you want Prepare a road map Use open-ended questions Do not ask irrelevant questions Do not rush interview Do not rely on your memory 0 INTERVIEW AS PREDICTOR OF SUCCESS Interview is not a valid predictor of job performance ? has high face validity as a selection tool Panel interviews ? candidate meets with several interviewers - increases interview validity Computer-based interviews - complement traditional interviewing information 0 TESTING AND ASSESSMENT Employment Test - measure a particular attribute such as intelligence or aptitude Assessment Center - selecting individuals with high managerial potential based on performances on a series of simulated tasks 0 DEVELOPING AN EFFECTIVE WORKFORCE Training and development - effort to facilitate employees? learning of job-related skills and behaviors On-the-job training - an experienced employee ?adopts? a new employee to teach him or her how to perform job duties Cross training Mentoring 0 OTHER TRAINING AND DEVELOPMENT METHODS Orientation Training Classroom Training Computer-based Training Corporate Universities Promotion from Within Workforce Optimization PERFORMANCE APPRAISAL Process of observing and evaluating an employee?s performance, recording the assessment, and providing feedback to the employee 0 Observing and assessing performance Recording the assessment Providing feedback to employee MAKING PERFORMANCE APPRAISALS A POSITIVE FORCE The accurate assessment of performance through the development and application of assessment systems Use the performance appraisal to provide feedback that reinforces good performance and motivate 0 ASSESSING PERFORMANCE ACCURATELY 360° Feedback Process Performance Evaluation Errors Stereotyping Halo effect BARS Behaviorally-anchored rating scale 0 BEHAVIORALLY ANCHORED RATING SCALE * Exhibit 9.9 MAINTAINING AN EFFECTIVE WORKFORCE Compensation Wage and Salary Systems Job-based pay Skill-based pay Competency based-pay Compensation Equity Job evaluation Wage and salary surveys Pay for Performance Benefits Cafeteria-plan benefit packages 0 TERMINATION Value of termination for maintaining an effective workforce is two fold Employees who are poor performers can be dismissed Employers can use exit interviews in a positive manner Exit interview ? interview with departing employees to identify reason for termination 0 TOP MANAGERS VALUE DIVERSITY To give organization access to broader range of opinions and viewpoints To spur greater creativity and innovation To reflect an increasingly diverse customer base To obtain the best talent in a competitive environment To more effectively compete in the global marketplace 0 VALUING DIVERSITY Job seekers value diversity 91% of job seekers think diversity programs make a company a better place to work Survey commissioned by The New York Times 0 ATTITUDES TOWARD DIVERSITY Ethnocentrism - belief that one?s own group or subculture is inherently superior to other groups or cultures Enthnorelativism - belief that groups and subcultures are inherently equal Pluralism - an organization accommodates several subcultures 0 THE CHANGING WORKPLACE Dramatic Changes in the Customer Base Changing Composition of Workforce There are more women, people of color, and immigrants seeking opportunities Globalization Competition is intense 0 CHALLENGES MINORITIES FACE Lack of choice assignments Disregard by a subordinate of a minority manager?s direction Ignoring of comments made by women and minorities at meetings A need to become ?Bicultural? 0 CHALLENGES FOR MANAGEMENT 0 Exhibit 9.11 AFFIRMATIVE ACTION CURRENT DEBATE Affirmative action was developed in response to conditions 40 years ago. Today more then half the U.S. workforce consists of women and minorities. It is not the same as diversity. Research shows that full integration of women and racial minorities into organizations is still at least a decade away. 0 GLASS CEILING An invisible barrier separates women and minorities from top management positions Fortune 500 Women Corporate Officers 2004 = 15.7% 2000 = 12.5% 1995 = 8.7% Only eight Fortune 500 companies have female CEOs in 2006 0 THE WAGE GAP Exhibit 9.12 THE OPT-OUT TREND 37% of highly qualified women report that they voluntarily left the workforce at some point in their career. ?but some people think women might actually be better managers, partly because they have a more collaborative approach RESPONSES TO DIVERSITY Building a corporate culture that values diversity Changing structures, policies, and systems to support diversity Recruitment Career advancement Providing diversity awareness training 0 ORGANIZATIONAL RELATIONSHIPS Emotional Intimacy Sexual Harassment Generalized Inappropriate/offensive Solicitation with promise of reward Coercion with threat of punishment Sexual crimes and misdemeanors 0 GLOBAL DIVERSITY Globalization is a reality for today?s companies ?The rest of the world matters to a degree that it never did in the past.? Workforce 2020 0 HOW DOES THIS HELP YOU?.. See what you could not see? Predict what you could not predict? Explain what you could not explain? Make sense of what you could previously not make sense of? GROUP DISCUSSION QUESTIONS Split up into small groups and answer the following questions: Thank back to your job experience. What human resource management activities described in this chapter were performed for the job you filled? Which ones were absent? GROUP DISCUSSION QUESTION You are a manager at an organization that has decided it needs a more diverse workplace. What steps or techniques will you use to accomplish this goal? What steps will you take to retain diverse employees once you have successfully recruited them? VIDEO DISCUSSION QUESTION In what way does Allstate?s human resource management philosophy adhere to the new social contract between organization and employee? In what way does it differ, if at all? What are the benefits of a pay-for-performance system versus a seniority-based pay system? Why would a company choose one over the other? HOW DOES THIS HELP YOU?.. See what you could not see? Predict what you could not predict? Explain what you could not explain? Make sense of what you could previously not make sense of?
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