MCO 101 • MANAGEMENTUnit 7: Human Resources Management as a

function

MANAGEMENT 2MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Managing Expectations

LEARNING OUTCOMES:

At the end of the course, students will be able to:

• Explain fundamental concepts and principles of management including the basic roles, skills, and functions of management

• Discuss the knowledgeable of historical development, theoretical aspects and practice application of managerial process

• Examine the environment, technology, human resources, and organisations in order to achieve high performance

• Discuss the ethical dilemmas faced by managers and the social responsibilities of businesses.

MANAGEMENT 3MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Managing Expectations

SUBJECTS DISCUSSED:

1. Management, Managers and evolution of Management theory

2. Personality traits and diversity3. Organisation, Globalisation and the resulting

environments4. Decision-making and Planning5. Structure and Strategy6. Executing and Controlling7. Human Resources Management as a function8. Motivation, Leadership, Groups and Teams9. Communication, conflicts and politics10. Operations Management. Entrepreneurship. Innovation

MANAGEMENT 4MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Managing Expectations

TOPIC DETAILS:

After going through UNIT 7, you should be able to:

1. describe the basic steps involved in human resource planning.

2. explain how different employment laws affect human resource practice.

3. explain how companies use recruiting to find qualified job applicants.

4. describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers.

5. describe how to determine training needs and select the appropriate training methods.

6. discuss how to use performance appraisal to give meaningful performance feedback.

7. describe basic compensation strategies and explain how they affect human resource practice.

8. discuss the four kinds of employee separations: termination, downsizing, retirements, and turnover.

MANAGEMENT 5MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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The Human Resource Management Process

Recruiting

Selection

Attracting QualifiedEmployees

Determining HumanResource Needs Human Resource

Planning

Compensation

Employee Separation

Keeping QualifiedEmployees

Developing QualifiedEmployees

Training

Performance Appraisal

MANAGEMENT 6MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Human Resource Planning

MANAGEMENT 7MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Internal Forecast Factors

• New positions

• New equipment and technology

• Eliminated positions

• Terminations

• Retirements

• Resignations

• Turnover

• Transfers

• Deaths

• Promotions

• Organization’s mission

• Productivity of current employees

• Skills/education of current employees

MANAGEMENT 8MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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External Forecast Factors

• Demographics of labor supply

• Geographic population shifts

• Manufacturing-to service-to information-based economy shift

• Economic conditions

• Unemployment rate

• Labor unions

• Availability of applicants

• Technological advances

• Competitors

• Growth of businesses

MANAGEMENT 9MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Forecast Methods

DirectManagerial

Input

BestGuess

Statistical/Historical Ratios

Based on projections of cash flows,expenses, or financial measures

Based on managers’ assessment of current head count, plus a guess onrelevant internal/external factors

Based on statistical methods, such asmultiple regression, in combinationwith historical data

MANAGEMENT 10MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Human Resource Information Systems

HRISWork History

PerformanceAppraisal

Personal Data

EducationalData

CompanyEmployment

History

Promotion Data

MANAGEMENT 11MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Employment Legislation

FederalEmployment

Laws

Adverse Impactand

EmploymentDiscrimination

SexualHarassment

Laws

MANAGEMENT 12MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Finding Qualified WorkersRecruiting

Job Analysis andRecruiting

InternalRecruiting

ExternalRecruiting

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

• 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

Methods for External Recruiting

• Advertising

• Employee referrals

• Walk-ins

• Outside organizations

• Employment services

• Special events

• Internet job sites

MANAGEMENT 13MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Job Analysis and Recruiting

Job DescriptionJob

Specification

HR Subsystems

Recruiting Selection TrainingPerformance

AppraisalSeparation

Job Analysis

written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job

a written summary of the qualifications needed to successfully perform a job

MANAGEMENT 14MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Selection

SelectionTests

SelectionTests InterviewsInterviews

Application Formsand Résumés

Application Formsand Résumés

References andBackground Checks

References andBackground Checks

MANAGEMENT 15MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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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

Situational Questions

Behavioral Questions

Background Questions

Job-Knowledge Questions

Planning the interview

• 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

KSAO: Knowledge, skills, abilities, and other characteristics

Conducting the interview

• 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

After the interview

• Review your notes immediately

• Evaluate the applicant on each KSAO

• Determine each applicant’s probability of success and make a hiring decision

MANAGEMENT 16MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Training

Training Needs

Training Needs

TrainingMethods

TrainingMethods

TrainingEvaluation

TrainingEvaluation

MANAGEMENT 17MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Determining Training Needs

ConductingNeeds

Assessments

IdentifyPerformanceDeficiencies

Test EmployeeSkills and

Knowledge

SurveyEmployers

and Managers

Listen toCustomer

Complaints

Step 1

Step 2

Step 3

Job Analysis

Test Employee Skills

Compare Employee Skills to Required Skills

MANAGEMENT 18MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Training Methods

Impart Informationand Knowledge

Develop Analyticaland Problem-SolvingSkills

Practice, Learn, orChange Job Behaviors

All of the above

• films and videos• lecture• planned readings

• case studies• coaching and mentoring• group discussions

• on-the-job training• role-playing• simulations and games• vestibule training

• Computer-based learning

MANAGEMENT 19MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Evaluating Training

Reactions

Learning

Behavior

Results

how satisfied trainees were with the program

how much employees improvedtheir knowledge or skills

how much employees actually changedtheir on-the-job behavior

how much training improvedjob performance

MANAGEMENT 20MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Performance Appraisal

MeasuringJob

Performance

SharingPerformance

Feedback

IMPROVING 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)

COMMON 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

•Managers often fail to effectively give employees performance feedback

•360-degree feedback: boss, subordinates, peers, and the employee; best for employee development

WHAT TO DISCUSS

•Overall progress

•Problems encountered in meeting job requirements

•Opportunities to improve performance

•Long-range plans and opportunities

•General discussion of possible plans and goals for the coming year

MANAGEMENT 21MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Keeping Qualified Workers

CompensationDecisions

CompensationDecisions

EmploymentBenefits

EmploymentBenefits

MANAGEMENT 22MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Compensation Decisions

• Job evaluation

• Piecework

• Commission

• Profit sharing

• Employee stock ownership plans

• Stock options

• Hierarchical

• Compressed

PayLevel

PayVariability

PayStructure

• Cafeteria plans

• Flexible plans

• Payroll deductions

EmploymentBenefits

MANAGEMENT 23MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Employee Separations

Terminations Downsizing

TurnoverRetirements

MANAGEMENT 24MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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What Would You Do?

• Domino’s annual turnover is 158 percent, making consistency difficult

• Unhappy customers may not do business again—and that hurts profits

• It costs $2,500 to replace each hourly worker, and $20,000 to replace a store manager

How do you

(1) find qualified applicants?(2) encourage the staff to stay?