staffing and leading a growing company. chapter 19 staffing & leading copyright 2006 prentice...

Staffing and Leadinga Growing Company

Copyright 2006 Prentice Hall Publishing CompanyCopyright 2006 Prentice Hall Publishing Company 22Chapter 19 Staffing & LeadingChapter 19 Staffing & Leading

What is strategic human What is strategic human resource management?resource management?

Human resource managementHuman resource management

Involves attracting, developing, and Involves attracting, developing, and

maintaining a talented and energetic maintaining a talented and energetic

workforce to support the organization’s workforce to support the organization’s

mission, objectives, and strategies.mission, objectives, and strategies.

Is a strategic process.Is a strategic process.


HRM main responsibilitiesHRM main responsibilities

Attracting a quality workforceAttracting a quality workforce Human resource planning, recruitment, and Human resource planning, recruitment, and

selectionselection

Developing a quality workforceDeveloping a quality workforce Employee orientation, training and development, Employee orientation, training and development,

and career planning and developmentand career planning and development

Maintaining a quality workforceMaintaining a quality workforce Management of employee retention and turnover, Management of employee retention and turnover,

performance appraisal, and compensation and performance appraisal, and compensation and benefitsbenefits



Strategic human resource Strategic human resource managementmanagement Applies the HRM process to ensure the Applies the HRM process to ensure the

effective accomplishment of effective accomplishment of organizational mission and strategies.organizational mission and strategies.

Human resource planningHuman resource planning The process of analyzing staffing needs The process of analyzing staffing needs

and planning how to satisfy these needs and planning how to satisfy these needs in a way that best serves organizational in a way that best serves organizational mission, objectives, and strategies.mission, objectives, and strategies.


Choosing HR Choosing HR strategiesstrategies

HR Strategies

Organizational Strategies

Organizational Characteristics

Organizational Capabilities

Environments



Steps in the human resource planning Steps in the human resource planning

process:process: Step 1Step 1—review organizational mission, objectives, —review organizational mission, objectives,

and strategies.and strategies.

Step 2—review human resource objectives and Step 2—review human resource objectives and

strategies.strategies.

Step 3—assess current human resource needs.Step 3—assess current human resource needs.

Step 4—forecast human resource needs.Step 4—forecast human resource needs.

Step 5—develop and implement human resource Step 5—develop and implement human resource

plans.plans.



The foundation of human resource The foundation of human resource planning is job analysis.planning is job analysis. The orderly study of job facts to determine The orderly study of job facts to determine

just what is done, when, where, how, why, just what is done, when, where, how, why, and by whom in existing or potential new and by whom in existing or potential new jobs.jobs.

Work flowWork flow Organizational structureOrganizational structure

Job analysis provides information for Job analysis provides information for developing:developing: Job descriptionsJob descriptions Job specificationsJob specifications

Table 19.2 Linking Tasks from a Job Description to the Table 19.2 Linking Tasks from a Job Description to the Traits Needed to Perform the Job. Traits Needed to Perform the Job.

Job Task Trait or Characteristic

Generate and close new sales Outgoing, persuasive, friendly

Make 15 “cold calls” per week Self-starter, determined, optimistic,independent, confident

Analyze customers’ needs and recommend proper equipment

Good listener, patient, empathetic

Counsel customers about options and features needed

Organized, polished speaker, “other” oriented

Prepare and explain financing methods Honest, mathematically oriented,” comfortable with numbers, understands basics of finance, computer literate

Retain existing customers Relationship builder, customer-focused


Job Design StrategiesJob Design Strategies

Job simplification Job simplification - breaks work down into - breaks work down into its simplest form and standardizes each its simplest form and standardizes each task.task.

Job enlargement (horizontal job loading) Job enlargement (horizontal job loading) - - adds more tasks to a job to broaden its adds more tasks to a job to broaden its scope.scope.

Job rotation Job rotation - cross-trains workers so they - cross-trains workers so they can move from one job in a company to can move from one job in a company to others, giving them a greater number others, giving them a greater number and variety of tasks to perform. Often and variety of tasks to perform. Often used with a skill-based pay system.used with a skill-based pay system.


Job Design StrategiesJob Design Strategies

Job enrichment (vertical job loading) Job enrichment (vertical job loading) - - builds motivators into a job by increasing builds motivators into a job by increasing the planning, decision making, organizing the planning, decision making, organizing and controlling functions (which and controlling functions (which traditionally were managerial tasks).traditionally were managerial tasks).

Five core characteristics:Five core characteristics: Skill varietySkill variety Task identityTask identity Task significanceTask significance AutonomyAutonomy FeedbackFeedback Enriched

Job

(Continued)(Continued)


Flextime Flextime - an arrangement under which - an arrangement under which employees build their work schedules employees build their work schedules around a set of “core hours” - such as around a set of “core hours” - such as 11 a.m.. to 2 p.m. - but have flexibility 11 a.m.. to 2 p.m. - but have flexibility about when they start and stop work.about when they start and stop work.

Job sharing Job sharing - a work arrangement in - a work arrangement in which two or more people share a single which two or more people share a single full-time job.full-time job.

Job Design StrategiesJob Design Strategies(Continued)(Continued)


Flexplace Flexplace - a work arrangement in - a work arrangement in which employees work at a place which employees work at a place other than the traditional office, such other than the traditional office, such as a satellite branch closer to their as a satellite branch closer to their homes or, in some cases, at home.homes or, in some cases, at home.

TelecommutingTelecommuting - an arrangement in - an arrangement in which employees have employees which employees have employees working from their homes use modern working from their homes use modern communications equipment to hook communications equipment to hook up to their workplaces.up to their workplaces.

Job Design StrategiesJob Design Strategies(Continued)(Continued)


How do organizations How do organizations attract a quality workforce?attract a quality workforce?

RecruitmentRecruitment Activities designed to attract a qualified Activities designed to attract a qualified

pool of job applicants to an organization.pool of job applicants to an organization. Steps in the recruitment process:Steps in the recruitment process:

Advertisement of a job vacancy.Advertisement of a job vacancy. Preliminary contact with potential job Preliminary contact with potential job

candidates.candidates. Initial screening to create a pool of qualified Initial screening to create a pool of qualified

applicants.applicants.



Recruitment methods Recruitment methods External recruitmentExternal recruitment—c—candidates are andidates are

sought from outside the hiring organization.sought from outside the hiring organization. Internal recruitment—candidates are Internal recruitment—candidates are

sought from within the organization.sought from within the organization. Traditional recruitment—candidates receive Traditional recruitment—candidates receive

information only on most positive information only on most positive organizational features.organizational features.

Realistic job previews—candidates receive Realistic job previews—candidates receive all pertinent information.all pertinent information.



SelectionSelection Choosing from a pool of applicants the Choosing from a pool of applicants the

person or persons who offer greatest person or persons who offer greatest performance potential.performance potential.

Selection StepsSelection Steps Completion of a formal application formCompletion of a formal application form InterviewingInterviewing TestingTesting Reference checksReference checks Physical examinationPhysical examination Final analysis and decision to hire or rejectFinal analysis and decision to hire or reject

Table 19.3 Interview Questions for Candidates for Table 19.3 Interview Questions for Candidates for a Sales Representative Positiona Sales Representative Position

Trait or Characteristic QuestionOutgoing, persuasive, friendly How do you persuade reluctant

prospects to buy? Can you give an example?

Good listener, patient, empathetic What would you say to a fellow salesperson who was getting more than her share of rejections and was having difficulty getting appointments?

Honest, mathematically oriented,” comfortable with numbers, understands basics of finance, computer literate

How do you feel when someone How do you feel when someone questions the truth of what you questions the truth of what you say? Can you give an example of say? Can you give an example of successfully overcoming this successfully overcoming this situation?situation?

Other questions:Other questions:

If you owned a company, why would you hire yourself?If you owned a company, why would you hire yourself?

How do you acknowledge the contributions of others in your How do you acknowledge the contributions of others in your department?department?


Employment TestsEmployment Tests

Valid testValid test – one that measures – one that measures what it is intended to measure what it is intended to measure (e.g. aptitude for selling)(e.g. aptitude for selling)

Reliable testReliable test – one that measures – one that measures consistently over time.consistently over time.


SocializationSocialization

Socialization is important to Socialization is important to retain and maximize the human retain and maximize the human resource. Socialization can be resource. Socialization can be divided into three phases.divided into three phases.

AnticipatoryAnticipatory

EncounterEncounter

Settling – in Settling – in


How do organizations How do organizations develop a quality develop a quality workforce?workforce? TrainingTraining

A set of activities A set of activities that provides the that provides the opportunity to opportunity to acquire and acquire and improve job-improve job-related skills.related skills.

On-the-job trainingOn-the-job training Job rotationJob rotation CoachingCoaching MentoringMentoring ModelingModeling

Off-the-job trainingOff-the-job training Management Management

developmentdevelopment


How do organizations How do organizations develop a quality develop a quality workforce?workforce?

Performance management systems Performance management systems

ensure thatensure that—— Performance standards and objectives are Performance standards and objectives are

set.set.

Performance results are assessed Performance results are assessed

regularly.regularly.

Actions are taken to improve future Actions are taken to improve future

performance potential.performance potential.


How do organizations How do organizations develop a quality develop a quality workforce?workforce? Performance appraisalPerformance appraisal

Formally assessing someone’s work Formally assessing someone’s work accomplishments and providing accomplishments and providing feedback.feedback.

Purposes of performance appraisal:Purposes of performance appraisal: EvaluationEvaluation—l—let people know where they et people know where they

stand relative to objectives and standards.stand relative to objectives and standards. Development—assist in training and Development—assist in training and

continued personal development of people.continued personal development of people.


How do organizations How do organizations develop a quality develop a quality workforce?workforce?

Graphic rating scalesGraphic rating scales Behaviorally anchored rating Behaviorally anchored rating

scales (BARS)scales (BARS)

Critical-incident techniquesCritical-incident techniques

Multi-person comparisonsMulti-person comparisons


How do organizations How do organizations develop a quality develop a quality workforce?workforce? Alternatives to supervisory appraisal:Alternatives to supervisory appraisal:

Peer appraisalPeer appraisal Occurs when people who work regularly and Occurs when people who work regularly and

directly with a jobholder are involved in the directly with a jobholder are involved in the appraisal.appraisal.

Upward appraisalUpward appraisal Occurs when subordinates reporting to the Occurs when subordinates reporting to the

jobholder are involved in the appraisal.jobholder are involved in the appraisal. 360° feedback360° feedback

Occurs when superiors, subordinates, peers, and Occurs when superiors, subordinates, peers, and even internal and external customers are even internal and external customers are involved in the appraisal of a jobholder’s involved in the appraisal of a jobholder’s performance.performance.


How do organizations How do organizations maintain a quality maintain a quality workforce?workforce? Basic career development concepts Basic career development concepts ……

Career—a sequence of jobs that constitute Career—a sequence of jobs that constitute what a person does for a living.what a person does for a living.

Career path—a sequence of jobs held over Career path—a sequence of jobs held over time during a career.time during a career.

Career planning—process of systematically Career planning—process of systematically matching career goals and individual matching career goals and individual capabilities with opportunities for their capabilities with opportunities for their fulfillment.fulfillment.

Career plateau—a position from which Career plateau—a position from which someone is unlikely to move to a higher someone is unlikely to move to a higher level of work responsibility.level of work responsibility.


How do organizations How do organizations maintain a quality maintain a quality workforce?workforce? Work-life balanceWork-life balance

How people balance career demands with How people balance career demands with personal and family needs.personal and family needs.

Progressive employers support a healthy Progressive employers support a healthy work-life balance.work-life balance.

Contemporary work-life balance issues:Contemporary work-life balance issues: Single parent concernsSingle parent concerns Dual-career couples concernsDual-career couples concerns Family-friendliness as screening criterion used by Family-friendliness as screening criterion used by

candidatescandidates


How do organizations How do organizations maintain a quality maintain a quality workforce?workforce? Retention and turnover Retention and turnover ……

Replacement is the management of Replacement is the management of promotions, transfers, terminations, promotions, transfers, terminations, layoffs, and retirements.layoffs, and retirements.

Replacement decisions relate to:Replacement decisions relate to: Shifting people between positions within Shifting people between positions within

the organizationthe organization RetirementRetirement TerminationTermination


Company CultureCompany Culture

Distinctive, unwritten, informal code Distinctive, unwritten, informal code of conduct that governs the behavior, of conduct that governs the behavior, attitudes, relationships, and style of attitudes, relationships, and style of an organization.an organization.

“ “The way we do things around here.”The way we do things around here.” In small companies, culture plays as In small companies, culture plays as

important a part in gaining a important a part in gaining a competitive edge as strategy does.competitive edge as strategy does.

See See Amy’s Ice Creams Amy’s Ice Creams example.example.


Characteristics of Characteristics of Positive Company Positive Company CultureCulture Respect for work and life balanceRespect for work and life balance Sense of purposeSense of purpose Sense of funSense of fun DiversityDiversity IntegrityIntegrity Participative managementParticipative management Learning environmentLearning environment


CommunicationCommunication

Managers spend about 80 percent of Managers spend about 80 percent of their time in some form of their time in some form of communication: communication: 30% talking30% talking 25% listening25% listening 15% reading15% reading 10% writing10% writing

Many problems in the workplace arise Many problems in the workplace arise because of poor communication.because of poor communication.


Communicating Communicating EffectivelyEffectively

Clarify your message before Clarify your message before communicating it.communicating it.

Use face-to-face communication Use face-to-face communication whenever possible.whenever possible.

Be empathetic.Be empathetic. Match your message to your Match your message to your

audience.audience. Be organized.Be organized.


Communicating Communicating EffectivelyEffectively Encourage feedback.Encourage feedback. Tell the truth.Tell the truth. Don’t be afraid to tell employees Don’t be afraid to tell employees

about the business, its about the business, its performance, and the forces that performance, and the forces that affect it. affect it.

Be a good listener. Be a good listener.


The Challenge of The Challenge of Motivating WorkersMotivating Workers

EmpowermentEmpowerment Job designJob design Rewards and compensationRewards and compensation FeedbackFeedback


EmpowermentEmpowerment

Involves giving workers at every level of Involves giving workers at every level of the organization the power, the freedom, the organization the power, the freedom, and the responsibility to control their own and the responsibility to control their own work, to make decisions, and to take work, to make decisions, and to take action to meet the company’s objectives.action to meet the company’s objectives.

Requires a different style of management Requires a different style of management from that of the traditional manager.from that of the traditional manager.

Is built on sharing information, authority, Is built on sharing information, authority, and power.and power.


Open-Book Open-Book ManagementManagementEmployees:Employees:1.1. See and learn to understand a See and learn to understand a

company’s financial statements and company’s financial statements and its critical numbers.its critical numbers.

2.2. Learn that a significant part of their Learn that a significant part of their jobs is moving those critical numbers jobs is moving those critical numbers in the right direction.in the right direction.

3.3. Have a direct stake in the company’s Have a direct stake in the company’s success through profit sharing, ESOPs, success through profit sharing, ESOPs, or performance-based bonuses. or performance-based bonuses.


Rewards and Rewards and CompensationCompensation The key to using rewards to The key to using rewards to

motivate workers is tailoring motivate workers is tailoring them to the needs and them to the needs and characteristics of individual characteristics of individual workers.workers.


Rewards and Rewards and CompensationCompensation Compensation and benefitsCompensation and benefits

Base compensationBase compensation Salary or hourly wagesSalary or hourly wages

Fringe benefitsFringe benefits Additional non-wage or non-salary Additional non-wage or non-salary

forms of compensationforms of compensation Flexible benefitsFlexible benefits

Employees can select a set of benefits Employees can select a set of benefits within a certain dollar amountwithin a certain dollar amount


Rewards and Rewards and CompensationCompensation Money is an effective motivator - Money is an effective motivator -

up to a point.up to a point. Pay-for-performance systemsPay-for-performance systems


Pay-for-PerformancePay-for-Performance

Employees’ incentive pay must be Employees’ incentive pay must be clearly and closely linked to their clearly and closely linked to their performances.performances.

Employees must be able to see the Employees must be able to see the connection between what they do connection between what they do every day on the job and the rewards every day on the job and the rewards they receive. they receive.

The system must be simple enough so The system must be simple enough so that employees understand and trust it. that employees understand and trust it.


Pay-for-PerformancePay-for-Performance

Employees must believe the system is Employees must believe the system is fair. fair.

The system should be inclusive, The system should be inclusive, rewarding all employees, no matter rewarding all employees, no matter what their jobs might be.what their jobs might be.

The system should make frequent The system should make frequent payouts to employees. payouts to employees.


Intangible rewards such as Intangible rewards such as praise, recognition, celebrations, praise, recognition, celebrations, and others can be and others can be veryvery powerful, powerful, yet inexpensive, motivators.yet inexpensive, motivators.

How do generational differences How do generational differences influence the types of rewards to influence the types of rewards to which employees respond?which employees respond?

Rewards and Rewards and CompensationCompensation

The Feedback The Feedback LoopLoop

ComparingComparing Actual Actual Performance Performance AgainstAgainst StandardsStandards

DecidingDecidingWhat to What to MeasureMeasure

DecidingDecidingHow to How to MeasureMeasure

TakingTaking ActionActionto Improveto ImprovePerformance Performance

ComparingComparing ActualActualPerformancePerformance AgainstAgainst StandardsStandards


Guidelines for Successful Guidelines for Successful Performance AppraisalsPerformance Appraisals

Link the employee’s performance to the job Link the employee’s performance to the job description.description.

Establish meaningful, job-related, observable, Establish meaningful, job-related, observable, measurable, and fair performance criteria.measurable, and fair performance criteria.

Prepare for the appraisal by outlining the key Prepare for the appraisal by outlining the key points you want to cover with the employee.points you want to cover with the employee.

Invite the employee to provide an evaluation Invite the employee to provide an evaluation of his own job performance based on the of his own job performance based on the criteria.criteria.



Be specific.Be specific. Keep a record of employees’ critical Keep a record of employees’ critical

incidents - both positive and negative.incidents - both positive and negative. Discuss the employee’s strengths and Discuss the employee’s strengths and

weaknesses.weaknesses. Incorporate employees’ goals into the Incorporate employees’ goals into the

appraisal.appraisal. Keep the evaluation constructive.Keep the evaluation constructive.



Praise good work.Praise good work. Focus on behaviors, actions, and results.Focus on behaviors, actions, and results. Avoid surprises (for both the employee Avoid surprises (for both the employee

or the business owner). or the business owner). Plan for the future. Plan for the future.

Smart business owners spend about 20% of Smart business owners spend about 20% of a performance appraisal discussing past a performance appraisal discussing past performance and 80% developing goals, performance and 80% developing goals, objectives, and a plan for improving objectives, and a plan for improving performance in the future.performance in the future.




Human Resource Human Resource ManagementManagement

Issues for Entrepreneurs in VietnamIssues for Entrepreneurs in Vietnam OverviewOverview The Labor PoolThe Labor Pool Labor LawsLabor Laws Inexpensive Labor: Vietnam’s Most Inexpensive Labor: Vietnam’s Most

Valuable ResourceValuable Resource Organized LaborOrganized Labor RecruitingRecruiting Wages and BenefitsWages and Benefits Cultural ConsiderationsCultural Considerations


How is your HR plan?How is your HR plan?

Organization structureOrganization structure Work flowWork flow Job descriptionJob description HiringHiring CompensationCompensation Performance appraisalPerformance appraisal RewardingRewarding Training (if needed)Training (if needed)

staffing and leading a growing company. chapter 19 staffing & leading copyright 2006 prentice...

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