Manajemen SDM: Matakuliah Lain Yang Belum Ada Di PDF Ini Akan Saya Update Di

Disusun oleh : Muhammad Firman (Akuntansi FE UI 2012)
MANAJEMEN SDM
managers.
Line Managers’ HRM Responsibilities
CHAPTER 1 (1) Placing the right person on the right job
THE STRATEGIC ROLE OF HRM (2) Starting new employees in the organization
(orientation)
(3) Training employees for jobs new to them
(4) Improving the job performance of each person
The Manager’s Human Resource Management Jobs (5) Gaining creative cooperation and developing
Management process : The five basic functions of planning, smooth working relationships
organizing, staffing, leading, and controlling. (6) Interpreting the firm’s policies and procedures
(7) Controlling labor costs
Human resource management (HRM) : The policies and (8) Developing the abilities of each person
practices involved in carrying out the “people” or human (9) Creating and maintaining department morale
resource aspects of a management position, including (10)Protecting employees’ health and physical
recruiting, screening, training, rewarding, and appraising. condition
Personnel Aspects Of A Manager’s Job : Functions of the HR Manager
a. Conducting job analyses (determining the nature of A line function : The HR manager directs the activities of the
each employee’s job) people in his or her own department and in related service
b. Planning labor needs and recruiting job candidates areas (like the plant cafeteria).
c. Selecting job candidates
d. Orienting and training new employees A coordinative function : HR managers also coordinate
e. Managing wages and salaries (compensating personnel activities, a duty often referred to as functional
employees) control.
f. Providing incentives and benefits
g. Appraising performance Staff (assist and advise) functions : Assisting and advising
h. Communicating (interviewing, counseling, line managers is the heart of the HR manager’s job.
disciplining)
i. Training and developing managers HR and Authority
j. Building employee commitment Authority : The right to make decisions, direct others’ work,
and give orders.
Personnel Mistakes
a. Hire the wrong person for the job Implied authority : The authority exerted by an HR manager
b. Experience high turnover by virtue of others’ knowledge that he or she has access to
c. Have your people not doing their best top management.
d. Waste time with useless interviews
e. Have your company in court because of Line authority : The authority exerted by an HR manager by
discriminatory actions directing the activities of the people in his or her own
f. Have your company cited by OSHA for unsafe department and in service areas.
practices
g. Have some employees think their salaries are unfair Employee Advocacy
and inequitable relative to others in the organization HR must take responsibility for:
h. Allow a lack of training to undermine your a. Clearly defining how management should be
department’s effectiveness treating employees.
i. Commit any unfair labor practices b. Making sure employees have the mechanisms
required to contest unfair practices.
Basic HR Concepts c. Represent the interests of employees within the
HR creates value by engaging in activities that produce the framework of its primary obligation to senior
employee behaviors the company needs to achieve its management.
strategic goals.
Examples of HR Job Duties
Line and Staff Aspects of HRM a. Recruiters: Search for qualified job applicants.
Line manager : A manager who is authorized to direct the b. Equal employment opportunity (EEO) coordinators:
work of subordinates and is responsible for accomplishing Investigate and resolve EEO grievances, examine
the organization’s tasks. organizational practices for potential violations, and
compile and submit EEO reports.
Staff manager : A manager who assists and advises line c. Job analysts : Collect and examine information
about jobs to prepare job descriptions.
M a t a k u l i a h l a i n y a n g b e l u m a d a d i P D F i n i a k a n s a y a u p d a t e d i w w w . a k u n t a n s i d a n b i s n i s . wo rd p re s s . c o m
Contac t me : muhammad.f [email protected] /@f irmanmhmd (Line) 1790
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d. Compensation managers: Develop compensation Human Capital Value Added

plans and handle the employee benefits program. Revenue − (Operating Expense − (*Compensation cost +
e. Training specialists: Plan, organize, and direct Benefit Cost]) ÷ Total Number of FTE
training activities.
f. Labor relations specialists: Advise management on Revenue Factor
all aspects of union–management relations. Revenue ÷ Total Number of FTE
Cooperative Line and Staff HR Management Time to fill
a. The line manager’s responsibility is to specify the Total days elapsed to fill requisitions ÷ Number hired
qualifications employees need to fill specific
positions. Training Investment Factor
b. HR staff then develops sources of qualified Total training cost ÷ Headcount
applicants and conduct initial screening interviews
c. HR administers the appropriate tests and refers the Turnover Costs
best applicants to the supervisor (line manager), Cost to terminate + Cost per hire + Vacancy Cost + Learning
who interviews and selects the ones he or she curve loss
wants.
The Changing Environment Of HR Management Turnover Rate
HR’s changing role: “ Personnel departments” [Number of separations during month ÷ Average number of
a. Took over hiring and firing from supervisors, payroll, employees during month] × 100
and benefit plans administration.
b. In the 1930s added “protecting the firm in its Workers’ Compensation Cost per Employee
interaction with unions” responsibilities (labor Total WC cost for Year ÷ Average number of employees
relations).
c. Assumed organizational responsibilities for equal Measuring HR’s Contribution
employment and affirmative action. The HR Scorecard
a. Shows the quantitative standards, or “metrics” the
A Changing HR Environment firm uses to measure HR activities.
a. Globalization b. Measures the employee behaviors resulting from
b. Technological Advances these activities.
c. Exporting Jobs c. Measures the strategically relevant organizational
d. The Nature of Work outcomes of those employee behaviors.
e. Workforce Demographics
Benefits of a High Performance Work System (HPWS)
Measuring HR’s Contribution a. Generate more job applicants
Strategy : The company’s long-term plan for how it will b. Screen candidates more effectively
balance its internal strengths and weaknesses with its c. Provide more and better training
external opportunities and threats to maintain a d. Link pay more explicitly to performance
competitive advantage. e. Provide a safer work environment
f. Produce more qualified applicants per position
HR managers today are more involved in partnering with g. More employees are hired based on validated
their top managers in both designing and implementing selection tests
their companies’ strategies. Top management wants to see, h. Provide more hours of training for new employees
precisely, how the HR manager’s plans will make the i. Higher percentages of employees receiving regular
company more valuable. performance appraisals.
HR Metrics The New HR Manager
Absence Rate New Proficiencies
[(Number of days absent in month) ÷ (Average number of (1) HR proficiencies
employees during mo.) × (number of workdays)] × 100 (2) Business proficiencies
(3) Leadership proficiencies
Cost per Hire (4) Learning proficiencies
(Advertising + Agency Fees + Employee Referrals + Travel
cost of applicants and staff + Relocation costs + Recruiter The Need to “Know Your Employment Law”
pay and benefits) ÷ Number of Hires a. Equal employment laws
b. Occupational safety and health laws
Health Care Costs per Employee c. Labor laws
Total cost of health care ÷ Total Employees
Ethics and HR
HR Expense Factor c. Ethical lapses (e.g., Enron, Martha Stewart)
HR expense ÷ Total operating expense
HR Metrics (cont’d) Sarbanes-Oxley Act in 2003
Intended to curb erroneous corporate financial reporting:
Human Capital ROI b. Requires CEOs and CFOs to certify their companies’
Revenue − (Operating Expense − *Compensation cost + periodic financial reports.
Benefit cost]) ÷ (Compensation cost + Benefit cost)
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c. Prohibits personal loans to executive officers and Title VII: Sexual Harassment
directors. Sexual harassment
d. Requires CEOs and CFOs to reimburse their firms for Harassment on the basis of sex that has the purpose or
bonuses and stock option profits if corporate effect of substantially interfering with a person’s work
financial statements subsequently require restating. performance or creating an intimidating, hostile, or
offensive work environment. Employers have an affirmative
HR Professional Certification duty to maintain workplaces free of sexual harassment and
HR is becoming more professionalized. intimidation.
b. Society for Human Resource Management (SHRM)
c. SHRM’s Human Resource Certification Institute Federal Violence Against Women Act of 1994
(HRCI) A person who commits a violent crime motivated by gender
d. SPHR (senior professional in HR) is liable to the party injured.
e. PHR (professional in HR) certificate
Sexual Harassment Defined
HR and Technology Unwelcome sexual advances, requests for sexual favors,
Benefits of technological applications for HR : and other verbal or physical conduct of a sexual nature that
1. Intranet-based employee portals through which takes place under any of the following conditions:
employees can self-service HR transactions. 1. Submission to such conduct is made either explicitly
2. The availability of centralized call centers staffed or implicitly a term or condition of an individual’s
with HR specialists. employment.
3. Increased efficiency of HR operations. 2. Submission to or rejection of such conduct by an
4. The development of data warehouses of HR-related individual is used as the basis for employment
information. decisions affecting such individual.
5. The ability to outsource HR activities to specialist 3. Such conduct has the purpose or effect of
service providers. unreasonably interfering with an individual’s work
performance or creating an intimidating, hostile, or
offensive work environment.
CHAPTER 2
EQUAL OPPORTUNITY AND THE LAW Proving Sexual Harassment
Quid pro quo
1. Rejecting a supervisor’s advances adversely affects
Equal Employment Opportunity 1964–1991 the employee’s tangible benefits, such as raises or
Title VII of the Civil Rights Act (1964) promotions.
An employer cannot discriminate on the basis of race, color,
religion, sex, or national origin with respect to employment. Hostile environment created by supervisors.
2. Behaviors that substantially affect an employee’s
Coverage emotional and psychological ability to the point that
d. All public or private employers of 15 or more they affect the employee’s ability to continue with
persons. the employee’s job.
e. All private and public educational institutions, the
federal government, and state and local Hostile environment created by co-workers or non-
governments employees.
f. All public and private employment agencies 3. Advances by the employee’s co-workers (or even
g. All labor unions with 15 or more members the employer’s customers) can cause harassment.
Employment Discrimination Laws What Employers Should Do to Minimize Liability in Sexual

Equal Pay Act of 1963 Harassment Claims
The act requiring equal pay for equal work, regardless of 1. Take all complaints about harassment seriously.
sex. 2. Issue a strong policy statement condemning such
behavior.
Age Discrimination in Employment Act of 1967 (ADEA) 3. Inform all employees about the policy and of their
The act prohibiting arbitrary age discrimination and rights.
specifically protecting individuals over 40 years old. 4. Develop and implement a complaint procedure.
5. Establish a management response system that
Vocational Rehabilitation Act of 1973 includes an immediate reaction and investigation by
The act requiring certain federal contractors to take senior management.
affirmative action for disabled persons. 6. Begin management training sessions with
supervisors and managers to increase their
Vietnam Era Veterans’ Readjustment Act of 1974 awareness of the issues.
An act requiring that employees with government contracts 7. What Employers Should Do to Minimize Liability in
take affirmative action to hire disabled veterans. Sexual Harassment Claims (cont’d)
8. Discipline managers and employees involved in
Pregnancy Discrimination Act (PDA) of 1978 harassment.
A Title VII amendment that prohibits sex discrimination 9. Keep records of complaints, investigations, and
based on “pregnancy, childbirth, or related medical actions taken.
conditions.”
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10. Conduct exit interviews that uncover any 2. A physical or mental impairment that substantially
complaints and that acknowledge by signature the limits one or more major life activities.
reasons for leaving. Excludes homosexuality, bisexuality, voyeurism, compulsive
11. Re-publish the sexual harassment policy gambling, pyromania, and disorders resulting from the
periodically. current illegal use of drugs.
12. Encourage upward communication through periodic
written attitude surveys, hotlines, suggestion boxes, ADA and Individuals
and other feedback procedures. Qualified individuals
Under ADA, those who can carry out the essential functions
Early Court Decisions Regarding Equal Employment of the job.
Opportunity
Griggs v. Duke Power Company Reasonable accommodation
4. Discrimination by the employer need not be overt; If the individual can’t perform the job as currently
employer’s intent is irrelevant. structured, the employer must make a “reasonable
5. An employment practice must be job related and accommodation” unless doing so would present an “undue
valid if it has an unequal impact on members of a hardship.”
protected class.
6. The burden of proof is on the employer to show Employer Obligations under ADA
that the employment practice is job related.  An employer must make a reasonable
7. Business necessity is the employer’s defense for any accommodation for a qualified disabled individual
practice that has adverse impact. unless doing so would result in undue hardship.
 Employers are not required to lower existing
Albemarle Paper Company v. Moody performance standards or stop using tests for a job.
1. If an employer uses a test to screen  Employers may ask pre-employment questions
candidates, then the job’s specific duties about essential job functions but can not make
and responsibilities must be carefully inquiries about disability.
analyzed and documented.  Medical exams (or testing) for current employees
2. The performance standards for employees must be job-related.
on the job in question should be clear and  Employers should review job application forms,
unambiguous. interview procedures, and job descriptions for
3. EEOC (now federal) guidelines on validation illegal questions and statements.
are to be used for validating employment  Employers should have up-to-date job descriptions
practices. that identify the current essential functions of the
job.
Equal Employment Opportunity 1991–present
Civil Rights Act of 1991 (CRA) Disabilities and ADA
 It places burden of proof back on employers once 3. Courts will tend to define “disabilities” quite
the plaintiff has made a prima facie case and narrowly.
permits compensatory and punitive damages. 4. Employers are not required to tolerate misconduct
or erratic performance even if the behaviors can be
Disparate impact attributed to the disability.
 A practice or policy that has a greater adverse 5. Employers do not have create a new job for the
impact on the members of a protected group than disabled worker nor reassign that person to a light-
on other employees, regardless of intent. duty position for an indefinite period, unless such a
position exists.
Disparate treatment 6. Employers should not treat employees as if they
 Intentional discrimination on the part of the are disabled so that they will not “regarded as”
employer. disabled and protected under the ADA.
Desert Palace Inc. vs. Costa. State and Local Equal Employment Opportunity Laws
 Mixed motive: an employer cannot avoid liability by The effect of the state and local laws is usually to further
proving it would have taken the same action even restrict employers’ treatment of job applicants and
without the discriminatory motive. employees. State and local laws cannot conflict with federal
 Workers do not have to provide evidence of law but can extend coverage to additional protected
explicitly discriminatory conduct (such as groups.
discriminatory employer statements), but could
provide circumstantial evidence (such as lowered Sources of Discrimination Allegations
performance evaluations). Disparate treatment
Intentional discrimination where an employer treats an
Americans with Disabilities Act (ADA) individual differently because that individual is a member of
ADA of 1990 a particular race, religion, gender, or ethnic group.
1. Requires employers to make reasonable
accommodations for disabled employees; it Disparate impact
prohibits discrimination against disabled persons. An apparently neutral employment practice that creates an
Disability adverse impact—a significant disparity—between the
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proportion of minorities in the available labor pool and the  Employers cannot hide behind collective
proportion hired. bargaining agreements—equal opportunity
laws override union contract agreements.
Adverse impact  If a personnel practice is discriminatory, firms
The overall impact of employer practices that result in should react by agreeing to eliminate the illegal
significantly higher percentages of members of minorities practice and (when required) by compensating
and other protected groups being rejected for employment, the people discriminated against.
placement, or promotion. Used to help establish a prima
facie case of discrimination. Discriminatory Employment Practices
 Recruitment : Word of Mouth, Misleading
Showing Adverse Impact Information,Help Wanted Ads
Disparate rejection rates  Personal Appearance : Dress , Hair , Uniforms
A test that demonstrates that there is a discrepancy  Selection : Educational Requirements, Preference to
between rates of rejection of members of a protected Relatives, Height, Weight, and Physical
group and of others. Characteristics, Arrest Records, Application Forms,
Discharge Due to Garnishment
Four-fifths rule of thumb
If the protected group’s hiring rate is less than eighty Diversity Management
percent (80%) of the majority group, then a prima facie case Managing diversity
for discrimination is indicated.  Provide strong leadership.
 Assess the situation.
Restricted policy  Provide diversity training and education.
An employer’s hiring practices exclude a protected group—  Change culture and management systems.
whether intentionally or not.
 Evaluate the diversity management program.
Population comparisons
A comparison of the percentage of a minority/ protected Boosting workforce diversity
group and white workers in the organization with the Adopt strong company policies advocating the benefits of a
percentage of corresponding groups in the relevant labor culturally, racially, and sexually diverse workforce. Take
market. concrete steps to foster diversity at work.
McDonnell-Douglas test Is the Diversity Initiative Effective?

A test for disparate (intentional) treatment situations in 1. Are there women and minorities reporting directly
which the applicant was qualified but the employer rejected to senior managers?
the person and continued seeking applicants. Conditions 2. Do women and minorities have a fair share of job
for applying McDonnell-Douglas assignments that are steppingstones to successful
careers in the company?
 The person belongs to a protected class. 3. Do women and minorities have equal access to
 The person applied and was qualified for the international assignments?
job. 4. Are female and minority candidates in the
 The person was rejected despite qualification. company’s career development pipeline?
 After rejection, the position remained open and 5. Are turnover rates for female and minority
the employer continued seeking applications managers the same or lower than those for white
from persons with the complainant’s male managers?
qualifications.
Equal Employment Opportunity Versus Affirmative Action
Bona fide occupational qualification (BFOQ) Equal employment opportunity
Requirement that an employee be of a certain religion, sex, Aims to ensure that anyone, regardless of race, color,
or national origin where that is reasonably necessary to the disability, sex, religion, national origin, or age, has an equal
organization’s normal operation. Specified by the 1964 Civil chance for a job based on his or her qualifications.
Rights Act.
 Age Affirmative action
 Religion Requires the employer to make an extra effort to hire and
 Gender promote those in a protected group that results in
 National Origin measurable, yearly improvements in hiring, training, and
promotion of minorities and females in all parts of the
“Business necessity” organization.
A defense created by the courts that requires employers
show that there is an overriding business purpose (i.e., Steps in an Affirmative Action Program
“irresistible demand”) for a discriminatory practice. 1. Issues a written equal employment policy.
2. Appoints a top official to direct and implement the
Validity program.
The degree to which the test or other employment practice 3. Publicizes the equal employment policy and
is related to or predicts performance on the job. affirmative action commitment.
4. Surveys minority and female employment to
Other Considerations in Discriminatory Practice Defenses determine where affirmative action programs are
 Good intentions are no excuse. especially desirable.
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5. Develops goals and timetables to improve

utilization of minorities, males, and females.
6. Develops and implements specific programs to CHAPTER 3
achieve these goals. STRATEGIC HUMAN RESOURCE MANAGEMENT
7. Establishes an audit and reporting system to AND THE HR SCORECARD
monitor and evaluate progress of the program.
8. Develops support for the affirmative action
program, both inside the company and in the Strategic plan
community. A company’s plan for how it will match its internal strengths
and weaknesses with external opportunities and threats in
Designing an Affirmative Action Program order to maintain a competitive advantage.
Good faith effort strategy
 Aimed at changing practices that
contributed to excluding or underutilizing Three basic challenges
protected groups. 1. The need to support corporate productivity and
 Increasing the minority or female applicant performance improvement efforts.
flow. 2. That employees play an expanded role in
 Demonstrating top-management support employers’ performance improvement efforts.
for the equal employment policy. 3. HR must be more involved in designing—not just
 Demonstrating equal employment executing—the company’s strategic plan.
commitment to the local community.
 Keeping employees informed about the The Strategic Management Process
specifics of the affirmative action program. Strategic management
 Broadening the work skills of incumbent The process of identifying and executing the organization’s
employees. mission by matching its capabilities with the demands of its
 Institutionalizing the equal employment environment.
policy to encourage supervisors’ support of
it. Strategy
- A strategy is a course of action.
Reverse discrimination - The company’s long-tem plan for how it will balance
A claim that due to affirmative action quota systems, white its internal strengths and weaknesses with its
males are discriminated against. Supreme Court’s June 2003 external opportunities and threats to maintain a
affirmative action decision outlawed the University of competitive advantage.
Michigan’s quota-based admissions program.
Business Mission and Its Vision
Reverse discrimination cases Vision
 Bakke v. Regents of the University of A general statement of its intended direction that evokes
California (1978): Race can be a factor, but emotional feelings in organization members.
not be the deciding factor (no quotas).
 Wygant v. Jackson Board of Education Mission
(1986): No preferential treatment of Spells out who the company is, what it does, and where it’s
minorities in layoffs. headed.
 International Association of Firefighters v.
City of Cleveland (1986): Quotas for Strategic Management Process
promotions upheld. Strategic management tasks
 U.S. v. Paradise (1987): Quotas upheld to Step 1: Define the Business and Its Mission
remedy serious cases of racial Step 2: Perform External and Internal Audits
discrimination. Step 3: Translate the Mission into Strategic Goals
Step 4: Formulate a Strategy to Achieve the
 Johnson v. Transportation Agency, Santa Strategic Goals
Clara County (1987): Voluntarily adopted Step 5: Implement the Strategy
affirmative action goals and programs Step 6: Evaluate Performance
upheld.
Recruiting Minorities Online A SWOT Chart and Analysis
Diversity candidate Web sites with job banks The use of a SWOT chart to compile and organize the
process of identifying CompanyStrengths, Weaknesses,
 African American Network Opportunities, and Threats.
 National Action Council of Minorities in
Engineering Types of Strategic Planning
 National Urban League Corporate-level strategy
 Hispanic Online Identifies the portfolio of businesses that, in total, comprise
 Latino Web the company and the ways in which these businesses relate
 Society of Hispanic Engineers to each other.
 Gay.com 1. Diversification strategy implies that the firm will
 Association for Women in Science expand by adding new product lines.
 Minorities Job Bank.
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2. Vertical integration strategy means the firm HR’s Strategy Execution Role
expands by, perhaps, producing its own raw The HR department’s strategies, policies, and activities must
materials, or selling its products direct. make sense in terms of the company’s corporate and
3. Consolidation strategy reduces the company’s size competitive strategies, and they must support those
4. Geographic expansion strategy takes the company strategies.
abroad.
HR’s Strategy Formulation Role
Business-level/competitive strategy HR helps top management formulate strategy in a variety of
Identifies how to build and strengthen the business’s long- ways by.
term competitive position in the marketplace.  Supplying competitive intelligence that may be useful in
 Cost leadership: the enterprise aims to become the the strategic planning process.
low-cost leader in an industry.  Supplying information regarding the company’s internal
 Differentiation: a firm seeks to be unique in its human strengths and weaknesses.
industry along dimensions that are widely valued by  Build a persuasive case that shows how—in specific and
buyers. measurable terms—the firm’s HR activities can and do
 Focus: a firm seeks to carve out a market niche, and contribute to creating value for the company.
compete by providing a product or service
customers can get in no other way. Creating a Strategy-oriented HR System
Components of the HR process
Functional strategies 1. HR professionals who have strategic and other skills
Identify the basic courses of action that each department 2. HR policies and activities that comprise the HR
will pursue in order to help the business attain its system itself
competitive goals. 3. Employee behaviors and competencies that the
company’s strategy requires.
Achieving Strategic Fit
Michael Porter The Basic Architecture of HR
Emphasizes the “fit” point of view that all of the firm’s
activities must be tailored to or fit its strategy, by ensuring
that the firm’s functional strategies support its corporate
and competitive strategies.
Gary Hamel and C. K. Prahalad
Argue for “stretch” in leveraging resources—supplementing
what you have and doing more with what you have—can be
more important than just fitting the strategic plan to
current resources.
HR and Competitive Advantage The High-Performance Work System
Competitive advantage High-performance work system (HPWS) practices.
 Any factors that allow an organization to a. High-involvement employee practices (such as job
differentiate its product or service from those of its enrichment and team-based organizations),
competitors to increase market share. b. High commitment work practices (such as improved
 Superior human resources are an important source employee development, communications, and
of competitive advantage disciplinary practices)
c. Flexible work assignments.
Strategic Human Resource Management d. Other practices include those that foster skilled
 The linking of HRM with strategic goals and workforces and expanded opportunities to use
objectives in order to improve business those skills.
performance and develop organizational cultures
that foster innovation and flexibility. The HR Scorecard Approach
 Formulating and executing HR systems—HR HR scorecard
policies and activities—that produce the employee Measures the HR function’s effectiveness and efficiency in
competencies and behaviors the company needs to producing employee behaviors needed to achieve the
achieve its strategic aims. company’s strategic goals.
HR’S Strategic Roles Creating an HR scorecard

HR professionals should be part of the firm’s strategic a. Must know what the company’s strategy is.
planning executive team. b. Must understand the causal links between HR
1. Identify the human issues that are vital to business activities, employee behaviors, organizational
strategy. outcomes, and the organization’s performance.
2. Help establish and execute strategy. c. Must have metrics to measure all the activities and
3. Provide alternative insights. results involved.
4. Are centrally involved in creating responsive and
market-driven organizations. Using the HR Scorecard Approach
5. Conceptualize and execute organizational change. Step 1: Define the Business Strategy
Step 2: Outline the Company’s Value Chain
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Step 3: Identify the Strategically Required Step 4: Actually analyze the job.
Organizational Outcomes Step 5: Verify the job analysis information.
Step 4: Identify the Required Workforce Step 6: Develop a job description and job
Competencies and Behaviors specification.
Step 5: Identify the Strategically Relevant HR
System Policies and Activities Charting the Organization
Step 6: Design the HR Scorecard Measurement System Organization chart
Step 7: Periodically Evaluate the Measurement System A chart that shows the organizationwide distribution of
work, with titles of each position and interconnecting lines
that show who reports to and communicates to whom.
Outlining the Company’s Value Chain Process chart
Value chain analysis A work flow chart that shows the flow of inputs to and
a. A tool for identifying, isolating, visualizing, and outputs from a particular job.
analyzing the firm’s most important activities and Process Chart for Analyzing a Job’s Workflow
strategic costs.
b. Identifying the primary and crucial activities that Methods of Collecting Job Analysis Information: The
create value for customers and the related support Interview
activities.Each activity is part of the process of 1) Information sources : Individual employees, Groups
designing, producing, marketing, and delivering the of employees, Supervisors with knowledge of the
company’s product or service. job
c. Shows the chain of essential activities. 2) Advantages : Quick, direct way to find overlooked
d. Prompts future questions. information.
3) Disadvantages : Distorted information
4) Interview formats : Structured (Checklist),
CHAPTER 4 Unstructured
JOB ANALYSIS
Interview Guidelines
1. The job analyst and supervisor should work
The Nature of Job Analysis together to identify the workers who know the job
Job analysis best.
The procedure for determining the duties and skill 2. Quickly establish rapport with the interviewee.
requirements of a job and the kind of person who should be 3. Follow a structured guide or checklist, one that lists
hired for it. open-ended questions and provides space for
answers.
Job description 4. Ask the worker to list his or her duties in order of
A list of a job’s duties, responsibilities, reporting importance and frequency of occurrence.
relationships, working conditions, and supervisory 5. After completing the interview, review and verify
responsibilities—one product of a job analysis. the data.
Job specifications Methods of Collecting Job Analysis Information:

A list of a job’s “human requirements,” that is, the requisite Questionnaires
education, skills, personality, and so on—another product  Information source : Have employees fill out
of a job analysis. questionnaires to describe their job-related duties
and responsibilities.
Types of Information Collected  Questionnaire formats : Structured checklists,
a. Work activities Opened-ended questions
b. Human behaviors  Advantages: Quick and efficient way to gather
c. Machines, tools, equipment, and work aids information from large numbers of employees
d. Performance standards  Disadvantages: Expense and time consumed in
e. Job context preparing and testing the questionnaire
f. Human requirements
Methods of CollectingJobAnalysis Information:Observation
Uses of Job Analysis Information a. Information source : Observing and noting the
1. Recruitment and Selection physical activities of employees as they go about
2. Compensation their jobs.
3. Performance Appraisal b. Advantages : Provides first-hand information
4. Training c. Reduces distortion of information
5. Discovering Unassigned Duties d. Disadvantages : Time consuming, Difficulty in
6. EEO Compliance capturing entire job cycle , Of little use if job
involves a high level of mental activity.
Steps in Job Analysis
Step 1: Decide how you’ll use the Methods of Collecting Job Analysis Information:
information. Participant Diary/Logs
Step 2: Review relevant background  Information source : Workers keep a chronological
information. diary/ log of what they do and the time spent in
Step 3: Select representative positions. each activity.
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 Advantages : Produces a more complete picture of

the job, Employee participation Is the Job Function Essential?
 Disadvantages : Distortion of information, Depends  What three or four main activities actually
upon employees to accurately recall their activities constitute the job? Is each really necessary?
 What is the relationship between each task? Is
Quantitative Job Analysis Techniques there a special sequence which the tasks must
The position analysis questionnaire (PAQ) follow?
A questionnaire used to collect quantifiable data concerning  Do the tasks necessitate sitting, standing, crawling,
the duties and responsibilities of various jobs. walking, climbing, running, stooping, kneeling,
The Department of Labor (DOL) procedure lifting, carrying, digging, writing, operating, pushing,
A standardized method by which different jobs can be pulling, fingering, talking, listening, interpreting,
quantitatively rated, classified, and compared. analyzing, seeing, coordinating, etc.?
 How many employees are available to perform the
Functional job analysis job function? Can the job function be distributed
Takes into account the extent to which instructions, among other employees?
reasoning, judgment, and mathematical and verbal ability  How much time is spent on the job performing each
are necessary for performing job tasks. particular function? Are infrequent tasks less
important to success?
Writing Job Descriptions  Would removing a function fundamentally alter the
A job description job?
A written statement of what the worker actually does, how  Is the Job Function Essential?
he or she does it, and what the job’s working conditions are.  What happens if a task is not completed on time?
 Does the position exist to perform that function?
Sections of a typical job description  Are employees in the position actually required to
 Job identification perform the function?
 Job summary  Is there a limited number of other employees
 Responsibilities and duties available to perform the function?
 Authority of incumbent  What is the degree of expertise or skill required to
 Standards of performance perform the function?
 Working conditions  What is the actual work experience of present or
 Job specifications past employees in the job?
 What is the amount of time an individual actually
The Job Description spends performing the function?
Job identification  What are the consequences of not requiring the
Job title: name of job performance of the function?
FLSA status section: Exempt or nonexempt
Preparation date: when the description was written The Job Description
Prepared by: who wrote the description Standards of performance and working conditions
Lists the standards the employee is expected to achieve
Job summary under each of the job description’s main duties and
Describes the general nature of the job responsibilities.
Lists the major functions or activities
The Job Description (cont’d) Writing Job Specifications
Specifications for trained personnel
Relationships (chain of command) Focus on traits like length of previous service, quality of
 Reports to: employee’s immediate supervisor relevant training, and previous job performance.
 Supervises: employees that the job incumbent
directly supervises Specifications for untrained personnel
 Works with: others with whom the job holder will Focus on physical traits, personality, interests, or sensory
be expected to work and come into contact with skills that imply some potential for performing or for being
internally. trained to do the job.
 Outside the company: others with whom the job
holder is expected to work and come into contact Specifications Based on Judgment
with externally.  Self-created judgments (common sense)
 List of competencies in Web-based job descriptions
Responsibilities and duties (e.g., www.jobdescription.com)
1. A listing of the job’s major responsibilities and  O*NET online
duties (essential functions)  Standard Occupational Classification
2. Defines limits of jobholder’s decision-making
authority, direct supervision, and budgetary Specifications Based on Statistical Analysis
limitations. Attempts to determine statistically the relationship
between a predictor or human trait and an indicator or
Standard Occupational Classification criterion of job effectiveness.
Classifies all workers into one of 23 major groups of jobs
which are subdivided into 96 minor groups of jobs and  Steps in the Statistical Approach
detailed occupations.
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 Analyze the job and decide how to measure job Maintain a strategic focus
performance. Describing the job in terms of the skills, knowledge, and
 Select personal traits that you believe should competencies the worker needs is more strategic.
predict successful performance.
 Test candidates for these traits. Measuring performance
 Measure the candidates’ subsequent job Measurable skills, knowledge, and competencies are the
performance. heart of any company’s performance management process.
 Statistically analyze the relationship between the
human trait and job performance.
Writing Job Descriptions Performance Management
Step 1. Decide on a Plan Managing all elements of the organizational process that
Step 2. Develop an Organization Chart affect how well employees perform.
Step 3. Use a Job Analysis/Description Questionnaire
Step 4. Obtain Lists of Job Duties from O*NET Types of competencies
Step 5. Compile the Job’s Human Requirements 1. General competencies : reading, writing, and
from O*NET mathematical reasoning.
Step 6. Complete Your Job Description 2. Leadership competencies: leadership, strategic
thinking, and teaching others.
Job Analysis in a “Jobless” World 3. Technical competencies : specific technical
Job : Generally defined as “a set of closely related activities competencies required for specific types of jobs
carried out for pay.” and/or occupations.
From Specialized to Enlarged Jobs Background Data for Examples

Job enlargement 1. Example of Job Title: Customer Service Clerk
Assigning workers additional same level activities, thus 2. Example of Job Summary: Answers inquiries and
increasing the number of activities they perform. gives directions to customers, authorizes cashing of
customers’ checks, records and returns lost charge
Job enrichment cards, sorts and reviews new credit applications,
Redesigning jobs in a way that increases the opportunities works at customer service desk in department
for the worker to experience feelings of responsibility, store.
achievement, growth, and recognition 3. Example of One Job Duty: Authorizes cashing of
checks: authorizes cashing of personal or payroll
Job rotation checks (up to a specified amount) by customers
Moving a trainee from department to department to desiring to make payment by check. Requests
broaden his or her experience and identify strong and weak identification—such as driver’s license—from
points to prepare the person for an enhanced role with the customers and examines check to verify date,
company . Systematically moving workers from one job to amount, signature, and endorsement. Initials check
another to enhance work team performance. and sends customer to cashier.
Why Managers Are Dejobbing Their Companies CHAPTER 5

1. Dejobbing : Broadening the responsibilities of the
company’s jobs,Encouraging employee initiative. PERSONNEL PLANNING AND RECRUITING
2. Internal factors leading to dejobbing : Flatter
organizations ,Work teams
3. External factors leading to dejobbing : Rapid
product and technological change,Global The Recruitment and Selection Process
competition , Deregulation,Political instability,  Decide what positions you’ll have to fill through
Demographic changes, Rise of a service economy. personnel planning and forecasting.
 Build a pool of candidates for these jobs by
Competency-Based Job Analysis recruiting internal or external candidates.
Competencies  Have candidates complete application forms and
Demonstrable characteristics of a person that enable perhaps undergo an initial screening interview.
performance of a job.  Use selection techniques like tests, background
investigations, and physical exams to identify viable
Competency-based job analysis candidates.
Describing a job in terms of the measurable, observable,  Decide who to make an offer to, by having the
behavioral competencies (knowledge, skills, and/or supervisor and perhaps others on the team
behaviors) an employee must exhibit to do a job well. interview the candidates.
Why Use Competency Analysis? Steps in Recruitment and Selection Process
To support HPWS
Traditional job descriptions (with their lists of specific Planning and Forecasting
duties) may actually backfire if a high-performance work
system is the goal.  Employment or personnel planning : The process of
deciding what positions the firm will have to fill, and
how to fill them.
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 Succession planning : The process of deciding how productivity), and three sales projections—
to fill the company’s most important executive jobs. minimum, maximum, and probable.
What to forecast? Forecasting the Supply of Inside Candidates
 Overall personnel needs Qualifications inventories is Manual or computerized ecords
 The supply of inside candidates listing employees’ education, career and development
 The supply of outside candidates interests, languages, special skills, and so on, to be used in
selecting inside candidates for promotion.
Forecasting Personnel Needs Manual Systems and Replacement Charts

1. Trend analysis : The study of a firm’s past  Personnel replacement charts : Company records
employment needs over a period of years to predict showing present performance and promotability of
future needs. inside candidates for the most important positions
2. Ratio analysis : A forecasting technique for
determining future staff needs by using ratios  Position replacement card : A card prepared for
between a causal factor and the number of each position in a company to show possible
employees needed.Assumes that the relationship replacement candidates and their qualifications.
between the causal factor and staffing needs is
constant Computerized Information Systems
Human Resource Information System (HRIS) isComputerized
The Scatter Plot inventory of information that can be accessed to determine
Scatter plot is A graphical method used to help identify the employees’ background, experience, and skills that may
relationship between two variables. include:
1. Work experience codes
2. Product or service knowledge
3. Industry experience
4. Formal education
The Matter of Privacy of HR Information
The need to ensure the security of HR information
1. There is a lot of HR information to keep secure.
2. Control of HR information can be established
through the use of access matrices that limit users.
3. Legal considerations: The Federal Privacy Act of
1974 gives employees rights regarding who has
access to information about their work history and
job performance.
Drawbacks to Scatter Plots : Forecasting the Supply of Outside Candidates

 They focus on projections and historical Factors impacting the supply of outside candidates
relationships, and assume that the firm’s existing 1. General economic conditions
structure and activities will continue into the future. 2. Expected unemployment rate
 They generally do not consider the impact the
company’s strategic initiatives may have on future Sources of information
staffing levels. 1. Periodic forecasts in business publications
 They tend to support compensation plans that 2. Online economic projections
reward managers for managing ever-larger staffs, 1. U.S. Congressional Budget Office (CBO)
and will not uncover managers who expand their 2. Bureau of Labor Statistics
staffs irrespective of strategic needs. 3. U.S. Department of Labor: O*Net
 They tend to “bake in” the nonproductive idea that 4. Other federal agencies
increases in staffs are inevitable.
 They tend to validate and institutionalize existing Effective Recruiting
planning processes and ways of doing things, even External factors affecting recruiting:
in the face of rapid change. 1. Looming undersupply of workers
2. Lessening of the trend in outsourcing of jobs
Using Computers to Forecast Personnel Requirements 3. Increasingly fewer “qualified” candidates
Computerized forecasts is The use software packages to
determine of future staff needs by projecting sales, volume Internal factors affecting recruiting:
of production, and personnel required to maintain a volume 1. The consistency of the firm’s recruitment efforts
of output. with its strategic goals
1. Generates figures on average staff levels required 2. The available resources, types of jobs to be
to meet product demands, as well as forecasts for recruited and choice of recruiting methods
direct labor, indirect staff, and exempt staff. 3. Nonrecruitment HR issues and policies
2. Typical metrics: direct labor hours required to 4. Line and staff coordination and cooperation
produce one unit of product (a measure of
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Advantages of centralizing recruitment

1. Strengthens employment brand
2. Ease in applying strategic principles
3. Reduces duplication of HR activiites
4. Reduces the cost of new HR technologies
5. Builds teams of HR experts
6. Provides for better measurement of HR
performance
7. Allows for the sharing of applicant pools
Sample Acceptable Questions Once A Conditional Offer Is
Made
1.Do you have any responsibilities that conflict with the job
vacancy?
2.How long have you lived at your present address?
3.Do you have any relatives working for this company?
4.Do you have any physical defects that would prevent you
from performing certain jobs where, to your knowledge,
vacancies exist?
5.Do you have adequate means of transportation to get to
work?
6.Have you had any major illness (treated or untreated) in
the past 10 years?
7.Have you ever been convicted of a felony or do you have a
history of being a violent person? (This is a very important
question to avoid a negligent hiring or retention charge.)
8.Educational background. (The information required here Recruiting Yield Pyramid
would depend on the job-related requirements of the The historical arithmetic relationships between recruitment
position.) leads and invitees, invitees and interviews, interviews and
offers made, and offers made and offers accepted.
Measuring Recruiting Effectiveness
What to measure and how to measure
1. How many qualified applicants were attracted from
each recruitment source?
2. Assessing both the quantity and the quality of the
applicants produced by a source.
High performance recruiting
1. Applying best-practices management techniques to
recruiting.
2. Using a benchmarks-oriented approach to analyzing
and measuring the effectiveness of recruiting
efforts such as employee referrals. Internal Sources of Candidates: Hiring from Within
Advantages
Selection Devices that Could be used to Initially Screen 1. Foreknowledge of candidates’ strengths and
Applicants weaknesses
2. More accurate view of candidate’s skills
3. Candidates have a stronger commitment to the
company
4. Increases employee morale
5. Less training and orientation required
Disadvantages
1. Failed applicants become discontented
2. Time wasted interviewing inside candidates who
will not be considered
3. Inbreeding of the status quo
Finding Internal Candidates
Job posting
Publicizing an open job to employees (often by literally
posting it on bulletin boards) and listing its attributes.
Rehiring former employees
Advantages:
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 They are known quantities. 1. Give the agency an accurate and complete job
 They know the firm and its culture. description.
Disadvantages: 2. Make sure tests, application blanks, and interviews
1. They may have less-than positive attitudes. are part of the agency’s selection process.
2. Rehiring may sent the wrong message to current 3. Periodically review data on candidates accepted or
employees about how to get ahead. rejected by your firm, and by the agency. Check on
the effectiveness and fairness of the agency’s
Succession planning screening process.
The process of ensuring a suitable supply of successors for 4. Screen the agency. Check with other managers or
current and future senior or key jobs. HR people to find out which agencies have been the
most effective at filling the sorts of positions
Succession planning steps: needed to be filled.
1. Identifying and analyzing key jobs. 5. Review the Internet and a few back issues of the
2. Creating and assessing candidates. Sunday classified ads to discover the agencies that
3. Selecting those who will fill the key positions. handle the positions to be filled.
Outside Sources of Candidates Temp Agencies and Alternative Staffing

Advertising Benefits of Temps
The Media: selection of the best medium depends on the 1. Paid only when working
positions for which the firm is recruiting. 2. More productive
1. Newspapers (local and specific labor markets) 3. No recruitment, screening, and payroll
2. Trade and professional journals administration costs
3. Internet job sites
4. Marketing programs Costs of Temps
1. Fees paid to temp agencies
2. Lack of commitment to firm
Constructing an effective ad Concerns of Temp Employees
Wording related to job interest factors should evoke  Treatment by employers in a dehumanizing,
theapplicant’s attention, interest, desire, and action (AIDA) impersonal, and ultimately discouraging way.
and create a positive impression of the firm.  Insecurity about their employment and pessimistic
about the future.
 Worry about their lack of insurance and pension
benefits.
 Being misled about their job assignments and in
particular about whether temporary assignments
were likely to become full-time positions.
 Being “underemployed” (particularly those trying to
return to the full-time labor market).
 In general they were angry toward the corporate
world and its values; participants repeatedly
expressed feelings of alienation and
Help Wanted Ad disenchantment.
Outside Sources of Candidates Guidelines for Using Temporary Employees

Types of employment agencies: 1.Do not train your contingent workers.
1. Public agencies operated by federal, state, or local 2.Do not negotiate the pay rate of your contingent workers.
governments 3.Do not coach or counsel a contingent worker on his/her
2. Agencies associated with nonprofit organizations job performance.
3. Privately owned agencies 4.Do not negotiate a contingent worker’s vacations or
personal time off.
Reasons for using a private employment agency: 5.Do not routinely include contingent workers in your
 When a firm doesn’t have an HR department and is company’s employee functions.
not geared to doing recruiting and screening. 6.Do not allow contingent workers to utilize facilities
 The firm has found it difficult in the past to intended for employees.
generate a pool of qualified applicants. 7.Do not let managers issue company business cards,
 The firm must fill a particular opening quickly. nameplates, or employee badges to contingent workers
 There is a perceived need to attract a greater without HR and legal approval.
number of minority or female applicants. 8.Do not let managers discuss harassment or discrimination
 The firm wants to reach currently employed issues with contingent workers.
individuals, who might feel more comfortable 9.Do not discuss job opportunities and the contingent
dealing with agencies than with competing worker’s suitability for them directly.
companies. 10.Do not terminate a contingent worker directly.
 The firm wants to cut down on the time it’s
devoting to recruiting. Working with a Temp Agency
 Invoicing. Get a sample copy of the agency’s
Avoiding problems with employment agencies: invoice. Make sure it fits your company’s needs.
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 Time sheets. With temps, the time sheet is not just Internships
a verification of hours worked. Once the worker’s
supervisor signs it, it’s usually an agreement to pay Employee referrals
the agency’s fees. Applicants who are referred to the organization by current
 Temp-to-perm policy. What is the policy if the client employees
wants to hire one of the agency’s temps as a  Referring employees become stakeholders.
permanent employee?  Referral is a cost-effective recruitment program.
 Recruitment of and benefits for temp employees.  Referral can speed up diversifying the workforce
Find out how the agency plans to recruit what sorts
of benefits it pays. Walk-ins
 Dress code. Specify the attire at each of your offices 1. Direct applicants who seek employment with or
or plants. without encouragement from other sources.
 Equal employment opportunity statement. Get a 2. Courteous treatment of any applicant is a good
statement from the agency that it is not business practice.
discriminating when filling temp orders.
 Job description information. Have a procedure Recruiting via the Internet
whereby you can ensure the agency understands More firms and applicants are utilizing the Internet in the
the job to be filled and the sort of person you want job search process.Advantages of Internet recruiting :
to fill it. 1. Cost-effective way to publicize job openings
2. More applicants attracted over a longer period
Offshoring/Outsourcing White-Collar and Other Jobs 3. Immediate applicant responses
Specific issues in outsourcing jobs abroad 4. Online prescreening of applicants
1. Political and military instability 5. Links to other job search sites
2. Likelihood of cultural misunderstandings 6. Automation of applicant tracking and evaluation
3. Customers’ security and privacy concerns Issues in Recruiting a More Diverse Workforce
4. Foreign contracts, liability, and legal concerns Single parents : Providing work schedule flexibility.
5. Special training of foreign employees
6. Costs associated with companies supplying foreign Older workers : Revising polices that make it difficult or
workers unattractive for older workers to remain employed.
Executive recruiters (headhunters) Recruiting minorities and women :

Special employment agencies retained by employers to seek 1. Understanding recruitment barriers.
out top-management talent for their clients.Contingent- 2. Formulating recruitment plans.
based recruiters collect a fee for their services when a 3. Instituting specific day-to-day programs.
uccessful hire is completed.Retained executive searchers
are paid regardless of the outcome of the recruitment Welfare-to-work : Developing pre-training programs to
process. overcome difficulties in hiring and assimilating persons
previously on welfare.
Internet technology and specialization trends are changing
how candidates are attracted and how searches are The disabled : Developing resources and policies to recruit
conducted. and integrate disable persons into the workforce.
Guidelines for Choosing a Recruiter Developing and Using Application Forms

1. Make sure the firm is capable of conducting a Application form : The form that provides information on
thorough search. education, prior work record, and skills.
2. Meet the individual who will actually handle your
assignment. Uses of information from applications
3. Ask how much the search firm charges.  Judgments about the applicant’s educational and
experience qualifications
On demand recruiting services (ODRS)  Conclusions about the applicant’s previous progress
A service that provides short-term specialized recruiting to and growth
support specific projects without the expense of retaining  Indications of the applicant’s employment stability
traditional search firms.  Predictions about which candidate is likely to
succeed on the job
College recruiting
Recruiting goals
 To determine if the candidate is worthy of further CHAPTER 6
consideration EMPLOYEE TESTING AND SELECTION
 To attract good candidates
On-site visits
1. Invitation letters Why Careful Selection is Important
2. Assigned hosts The importance of selecting the right employees
3. Information package 1. Organizational performance always depends in part
4. Planned interviews on subordinates having the right skills and
5. Timely employment offer attributes.
6. Follow-up
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2. Recruiting and hiring employees is costly.

3. The legal implications of incompetent hiring www.assessments.biz/default.asp?source=GW-emptest
4. EEO laws and court decisions related to One of many firms offering employment tests.
nondiscriminatory selection procedures
5. The liability of negligent hiring of workers with How to Validate a Test
questionable backgrounds Step 1: Analyze the job
Predictors: job specification (KSAOs)
Avoiding Negligent Hiring Claims Criterion: quantitative and qualitative measures of job
1. Carefully scrutinize information supplied by the success
applicant on his or her employment application.
2. Get the applicant’s written authorization for Step 2: Choose the tests
reference checks, and carefully check references. Test battery or single test?
3. Save all records and information you obtain about
the applicant. Step 3: Administer the test
4. Reject applicants who make false statements of Concurrent validation : Current employees’ scores with
material facts or who have conviction records for current performance
offenses directly related and important to the job in Predictive validation : Later-measured performance with
question. prior scores
5. Balance the applicant’s privacy rights with others’
“need to know,” especially when you discover Step 4: Relate Test Scores and Criteria
damaging information. Correlation analysis : Actual scores on the test with actual
6. Take immediate disciplinary action if problems performance
arise.
Basic Testing Concepts Step 5: Cross-Validate and Revalidate
Reliability Repeat Step 3 and Step 4 with a different sample of
The consistency of scores obtained by the same person employees.
when retested with the identical or equivalent tests.
Are the test results stable over time? Testing Program Guidelines
1. Use tests as supplements.
Test validity 2. Validate the tests.
1. The accuracy with which a test, interview, and so on 3. Monitor your testing/selection program
measures what it purports to measure or fulfills the 4. Keep accurate records.
function it was designed to fill. 5. Use a certified psychologist.
2. Does the test actually measure what we need for it 6. Manage test conditions.
to measure? 7. Revalidate periodically.
Types of Validity Equal Employment Opportunity (EEO) Aspects of Testing
Criterion validity : A type of validity based on showing that A organization must be able to prove:
scores on the test (predictors) are related to job  That its tests are related to success or failure on the
performance (criterion).Are test scores in this class related job (validity)
to students’ knowledge of human resource management?  That its tests don’t unfairly discriminate against
minority or nonminority subgroups (disparate
Content validity : A test that is content valid is one that impact).
contains a fair sample of the tasks and skills actually needed
for the job in question. EEO guidelines and laws apply to all selection devices,
1. Do the test questions in this course relate to human including interviews, applications, and references.
resource management topics?
2. Is taking an HR course the same as doing HR? Testing alternatives if a selection device has disparate
impact:
Examples of Web Sites Offering Information on Tests or  Institute a different, valid selection procedure that
Testing Programs does not have an adverse impact.
www.hr-guide.com/data/G371.htm  Show that the test is valid—in other words, that it is
Provides general information and sources for all types of a valid predictor of performance on the job.
employment tests.  Monitor the selection test to see if it has disparate
impact.
http://buros.unl.edu/buros/jsp/search.jsp
Provides technical information on all types of employment Test Takers’ Individual Rights and Test Security
and nonemployment tests. Under the American Psychological Association’s standard
for educational and psychological tests, test takers have the
www.ets.org/testcoll/index.html right:
Provides information on over 20,000 tests.  To privacy and information.
 To the confidentiality of test results.
www.kaplan.com/  To informed consent regarding use of these results.
Information from Kaplan test preparation on how various  To expect that only people qualified to interpret the
admissions tests work. scores will have access to them.
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 To expect the test is fair to all. Tests that use projective techniques and trait inventories to
measure basic aspects of an applicant’s personality, such as
Using Tests at Work introversion, stability, and motivation.
Major types of tests used by employers
 Basic skills tests (45%) Disadvantage
 Drug tests (47%) 2. Personality tests—particularly the projective type—
 Psychological tests (33%) are the most difficult tests to evaluate and use.
Advantage
Use of testing 3. Tests have been used successfully to predict
Less overall testing now but more testing is used as specific dysfunctional job behaviors and identify successful
job skills and work demands increase. candidates for overseas assignments.
1. Screen out bad or dishonest employees
2. Reduce turnover by personality profiling The “Big Five”
Extraversion : The tendency to be sociable, assertive, active,
Source of tests and to experience positive effects, such as energy and zeal.
1. Test publishers
Emotional stability/neuroticism : The tendency to exhibit
Computer-Interactive Testing poor emotional adjustment and experience negative
Types of tests effects, such as anxiety, insecurity, and hostility.
1. Specialized work sample tests
2. Numerical ability tests Openness to experience : The disposition to be imaginative,
3. Reading comprehension tests nonconforming, unconventional, and autonomous.
4. Clerical comparing and checking tests
Online tests Agreeableness : The tendency to be trusting, compliant,
1. Telephone prescreening caring, and gentle.
2. Offline computer tests
3. Virtual “inbox” tests Conscientiousness : Is comprised of two related facets:
4. Online problem solving tests achievement and dependability.
Types of Tests Other Tests

Tests of cognitive abilities Interest inventories
Intelligence Tests Personal development and selection devices that compare
Tests of general intellectual abilities that measure a range of the person’s current interests with those of others now in
abilities, including memory, vocabulary, verbal fluency, and various occupations so as to determine the preferred
numerical ability. occupation for the individual.
Aptitude tests Achievement tests

Tests that measure specific mental abilities, such as Test that measure what a person has already learned—“job
inductive and deductive reasoning, verbal comprehension, knowledge” in areas like accounting, marketing, or
memory, and numerical ability. personnel.
Tests of motor abilities Web-Based (Online) testing

Tests that measure motor abilities, such as finger dexterity, 4. Eliminates costly and inefficient paper-and-pencil
manual dexterity, and reaction time. testing processes.
5. Allows for role-playing by applicants.
Tests of physical abilities 6. Use of computer-based scoring eliminates rater
Tests that measure static strength, dynamic strength, body bias.
coordination, and stamina. 7. Provides immediate scoring and feedback of results
to applicants.
Problem from the Test ofMechanical Comprehension 8. Can be readily customized for specific jobs.
Work Samples
Work samples
Actual job tasks are used in testing applicants’ performance.
Work sampling technique
A testing method based on measuring an applicant’s
performance on actual basic job tasks.
Example of a Work Sampling Question
Measuring Personality and Interests

Personality tests
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 Helping to get rid an incompetent employees

Making Background Checks More Useful
1. Include on the application form a statement for
applicants to sign explicitly authorizing a
background check.
2. Use telephone references if possible.
Work Simulations 3. Be persistent in obtaining information.
Management assessment center 4. Ask open-ended questions to elicit more
A simulation in which management candidates are asked to information from references.
perform realistic tasks in hypothetical situations and are 5. Use references provided by the candidate as a
scored on their performance. source for other references.
Typical simulated exercises include: Using Preemployment Information Services
 The in-basket Concerns about checking applicant histories
 Leaderless group discussion 1. Various equal employment laws discourage or
 Management games prohibit the use of such information in employee
 Individual presentations screening.
 Objective tests 2. Courts view making employment decisions based on
 The interview someone’s arrest record as unfairly discriminatory.
3. The EEOC says a poor credit history should not by
Video-Based situational testing itself preclude someone from getting a job.
A situational test comprised of several video scenarios, each
followed by a multiple choice question that requires the Checking Background Information
candidate to choose from among several courses of action. Step 1—Disclosure and authorization.
While the evidence is mixed, the results suggest that video- Inform the employee/applicant that a report will be
based situational tests can be useful for selecting requested and obtain written authorization.
employees.
Step 2—Certification.
The miniature job training and evaluation approach The employer must certify to the reporting agency that the
Candidates are trained to perform a sample of the job’s employer will comply with the federal and state legal
tasks, and then are evaluated on their performance.The requirements.
approach assumes that a person who demonstrates that he
or she can learn and perform the sample of tasks will be Step 3—Providing copies of reports.
able to learn and perform the job itself. The employer must provide copies of the report to the
applicant or employee if adverse action is contemplated.
Background Investigations and Reference Checks
Extent of investigations and checks Step 4—Notice after adverse action.
1. Reference checks (87%) After the employer provides the employee or applicant with
2. Background employment checks (69%) copies of the investigative reports and a “reasonable
3. Criminal records (61%) period” has elapsed, the employer may take an adverse
4. Driving records (56%) action.
5. Credit checks (35%)
Collecting Background Information
Reasons for investigations and checks  Check all applicable state laws.
1. To verify factual information provided by applicants.  Review the impact of federal equal employment
2. To uncover damaging information. laws.
 Remember the Federal Fair Credit Reporting Act.
Background Investigations and Reference Checks (cont’d)  Do not obtain information that you’re not going to
Sources of information for background checks: use.
1. Former employers  Remember that using arrest information will be
2. Current supervisors highly suspect.
3. Commercial credit rating companies  Avoid blanket policies (such as “we hire no one with
4. Written references a record of workers’ compensation claims”).
 Use information that is specific and job related.
Legal limitations on background checks  Keep information confidential and up to date.
 Privacy Act of 1974  Never authorize an unreasonable investigation.
 Fair Credit Reporting Act of 1970  Make sure you always get at least two forms of
 Family Education Rights and Privacy Act of 1974 identification from the applicant.
(and Buckley Amendment of 1974)  Always require applicants to fill out a job
 Freedom of Information Act of 1966 application.
 1990 Americans with Disabilities Act (ADA)  Compare the application to the résumé
 Particularly for executive candidates, include
Reference providers’ concerns background checks of such things as involvement in
 Fear of legal reprisal for defamation lawsuits, and of articles about the candidate in local
 Not wanting to damage the applicant’s chances or national newspapers.
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 Separate the tasks of (1) hiring and (2) doing the  To establish a record and baseline of the applicant’s
background check. health for future insurance or compensation claims.
 To reduce absenteeism and accidents
The Polygraph and Honesty Testing  To detect communicable diseases that may be
The polygraph (or lie detector) unknown to the applicant.
A device that measures physiological changes,
The assumption is that such changes reflect changes in Substance Abuse Screening
emotional state that accompany lying. Types of screening:
1. Before formal hiring
Employee Polygraph Protection Act of 1988. 2. After a work accident
Prohibits employers (in most all cases) from conducting 3. Presence of obvious behavioral symptoms
polygraph examinations of all job applicants and most 4. Random or periodic basis
employees.Also prohibited are other mechanical or 5. Transfer or promotion to new position
electrical devices including psychological stress evaluators Types of tests
and voice stress analyzers.  Urinalysis
 Hair follicle testing
Permitted Users of the Polygraph
Employers with contracts involving: Substance Abuse in the Workplace
1. National defense or security  Issues
2. Nuclear-power (Department of Energy)  Impairment versus presence
3. Access to highly classified information  Recreational use versus habituation
4. Counterintelligence (the FBI or Department of  Intrusiveness of procedures
Justice)  Accuracy of tests
Other exceptions  Drug Free Workplace Act of 1988
1. Hiring of private security personnel  Americans with Disabilities Act
2. Hiring persons with access to drugs
3. Conducting ongoing investigations involving Complying with Immigration Law Post 9/11
economic loss or injury to an employer’s business.  Hire only citizens and aliens lawfully authorized to
work in the United States.
Paper-and-pencil honesty tests  Advise all new job applicants of your policy.
Psychological tests designed to predict job applicants’  Require all new employees to complete and sign the
proneness to dishonesty and other forms of INS I-9 form to certify that they are eligible for
counterproductivity.Measure attitudes regarding things like employment.
tolerance of others who steal, acceptance of  Examine documentation presented by new
rationalizations for theft, and admission of theft-related employees, record information about the
activities. documents on the verification form, and sign the
form.
Antitheft Screening Procedure  Retain the form for three years or for one year past
Ask blunt questions. the employment of the individual, whichever is
1. Listen, rather than talk. longer.
2. Do a credit check.  If requested, present the form for inspection by INS
3. Check all employment and personal references. or Department of Labor officers.
4. Use paper-and-pencil honesty tests and
psychological tests. CHAPTER 7
5. Test for drugs.
6. Establish a search-and-seizure policy and conduct INTERVIEWING CANDIDATES
searches.
Graphology .Basic Features of Interviews
Graphology (handwriting analysis) An interview
1. Assumes that handwriting reflects basic personality A procedure designed to obtain information from a person
traits. through oral responses to oral inquiries
2. Graphology’s validity is highly suspect.
Types of interviews
 Selection interview
 Appraisal interview
 Exit interview
Interviews formats
Physical Examination 1. Structured
Reasons for preemployment medical examinations: 2. Unstructured
 To verify that the applicant meets the physical
requirements of the position Types of Interviews
 To discover any medical limitations you should take Selection interview
into account in placing the applicant.
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A selection procedure designed to predict future job A panel interviews several candidates simultaneously.
performance on the basis of applicants’ oral responses to
oral inquiries. Computerized Interviews
Computerized selection interview
Appraisal interview An interview in which a job candidate’s oral and/or
A discussion, following a performance appraisal, in which computerized replies are obtained in response to
supervisor and employee discuss the employee’s rating and computerized oral, visual, or written questions and/or
possible remedial actions. situations.
Exit interview Characteristics
An interview to elicit information about the job or related 1. Reduces amount of time managers devote to
matters to the employer some insight into what’s right or interviewing unacceptable candidates.
wrong about the firm. 2. Applicants are more honest with computers
3. Avoids problems of interpersonal interviews
Formats of Interviews 4. Mechanical nature of computer-aided interview can
Unstructured or nondirective interview leave an applicant dissatisfied.
An unstructured conversational-style interview in which the
interviewer pursues points of interest as they come up in Factors Affecting Interviews
response to questions. First impressions
 The tendency for interviewers to jump to
Structured or directive interview conclusions—make snap judgments—about
An interview following a set sequence of questions. candidates during the first few minutes of the
interview.
Interview Content: Types of Questions  Negative bias: unfavorable information about an
Situational interview applicant influences interviewers more than does
A series of job-related questions that focus on how the positive information.
candidate would behave in a given situation.
Behavioral interview Misunderstanding the job
A series of job-related questions that focus on how they Not knowing precisely what the job entails and what sort of
reacted to actual situations in the past. candidate is best suited causes interviewers to make
decisions based on incorrect stereotypes of what a good
Job-related interview applicant is.
A series of job-related questions that focus on relevant past
job-related behaviors. Candidate-order error
An error of judgment on the part of the interviewer due to
Interview Content: Types of Questions interviewing one or more very good or very bad candidates
Stress interview just before the interview in question.
An interview in which the interviewer seeks to make the
applicant uncomfortable with occasionally rude questions Nonverbal behavior and impression management
that supposedly to spot sensitive applicants and those with 1. Interviewers’ inferences of the interviewee’s
low or high stress tolerance. personality from the way he or she acts in the
interview have a large impact on the interviewer’s
Puzzle questions rating of the interviewee.
Recruiters for technical, finance, and other types of jobs use 2. Clever interviewees attempt to manage the
questions to pose problems requiring unique (“out-of-the- impression they present to persuade interviewers
box”) solutions to see how candidates think under pressure. to view them more favorably.
Personal or Individual Interviews : Effect of personal characteristics: attractiveness, gender,
Unstructured sequential interview race
An interview in which each interviewer forms an Interviewers tend have a less favorable view of candidates
independent opinion after asking different questions. who are:
1. Physically unattractive
Structured sequential interview 2. Female
An interview in which the applicant is interviewed 3. Of a different racial background
sequentially by several persons; each rates the applicant on 4. Disabled
a standard form.
Interviewer behaviors affecting interview outcomes
Panel interview Inadvertently telegraphing expected answers.
An interview in which a group of interviewers questions the 1. Talking so much that applicants have no time to
applicant. answer questions.
2. Letting the applicant dominate the interview.
Panel (broad) interview 3. Acting more positively toward a favored (or similar
An interview in which a group of interviewers questions the to the interviewer) applicant.
applicant.
Designing and Conducting the Interview
Mass interview The structured situational interview
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Use either situational questions (preferred) or behavioral A procedure for providing new employees with basic
questions that yield high criteria-related validities. background information about the firm.
• Step 1: Job Analysis
• Step 2: Rate the Job’s Main Duties Orientation content
• Step 3: Create Interview Questions 1. Information on employee benefits
• Step 4: Create Benchmark Answers 2. Personnel policies
• Step 5: Appoint the Interview Panel and Conduct 3. The daily routine
Interviews 4. Company organization and operations
5. Safety measures and regulations
Structure your interview: 6. Facilities tour
• Base questions on actual job duties.
• Use job knowledge, situational, or behaviorally A successful orientation should accomplish four things for
oriented questions and objective criteria to new employees:
evaluate the interviewee’s responses. 1. Make them feel welcome and at ease.
• Train interviewers. 2. Help them understand the organization in a broad
• Use the same questions with all candidates. sense.
• Use descriptive rating scales (excellent, fair, poor) 3. Make clear to them what is expected in terms of
to rate answers. work and behavior.
• Use multiple interviewers or panel interviews. 4. Help them begin the process of becoming socialized
• If possible, use a standardized interview form. into the firm’s ways of acting and doing things.
• Control the interview.
• Take brief, unobtrusive notes during the interview. The Training Process
Training
Examples of Questions That Provide Structure The process of teaching new employees the basic skills they
Situational Questions: need to perform their jobs.
1.Suppose a co-worker was not following standard work
procedures. The co-worker was more experienced than you
and claimed the new procedure was better. Would you use The strategic context of training
the new procedure? Performance management: the process employers use to
2. Suppose you were giving a sales presentation and a make sure employees are working toward organizational
difficult technical question arose that you could not answer. goals.
What would you do?Past Behavior Questions: 1. Web-based training
3. Based on your past work experience, what is the most 2. Distance learning-based training
significant action you have ever taken to help out a co- 3. Cross-cultural diversity training
worker?
4. Can you provide an example of a specific instance where The Training and Development Process
you developed a sales presentation that was highly Needs analysis
effective?Background Questions: Identify job performance skills needed, assess prospective
5. What work experiences, training, or other qualifications trainees skills, and develop objectives.
do you have for working in a teamwork environment?
6. What experience have you had with direct point-of- Instructional design
purchase sales?Job Knowledge Questions: Produce the training program content, including workbooks,
7. What steps would you follow to conduct a brainstorming exercises, and activities.
session with a group of employees on safety?
8. What factors should you consider when developing a Validation
television advertising campaign? Presenting (trying out) the training to a small representative
audience.
How to Conduct an Effective Interview
Prepare for the interview Implement the program
1. Secure a private room to minimize interruptions. Actually training the targeted employee group.
2. Review the candidate’s application and résumé.
3. Review the job specifications Evaluation
Establish rapport Assesses the program’s successes or failures.
1. Put the person at ease.
Ask questions Make the Learning Meaningful
2. Follow your list of questions. 1. At the start of training, provide a bird’s-eye view of
3. Don’t ask questions that can be answered yes or no. the material to be presented to facilitates learning.
2. Use a variety of familiar examples.
3. Organize the information so you can present it
CHAPTER 8 logically, and in meaningful units.
TRAINING AND DEVELOPING EMPLOYEES 4. Use terms and concepts that are already familiar to
trainees.
5. Use as many visual aids as possible.
Orienting Employees
Employee orientation Make Skills Transfer Easy
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1. Maximize the similarity between the training the difficult parts, or those in which errors are likely
situation and the work situation. to be made.
2. Provide adequate practice. 4. Again go through the job at a slow pace several
3. Label or identify each feature of the machine times; explain the key points.
and/or step in the process. 5. Have the learner explain the steps as you go
4. Direct the trainees’ attention to important aspects through the job at a slow pace.
of the job.
5. Provide “heads-up” preparatory information that Step 3: Do a tryout
lets trainees know they might happen back on the 1. Have the learner go through the job several times,
job. slowly, explaining each step to you.
2. Correct mistakes and, if necessary, do some of the
Motivate the Learner complicated steps the first few times.
1. People learn best by doing so provide as much 3. Run the job at the normal pace.
realistic practice as possible. 4. Have the learner do the job, gradually building up
2. Trainees learn best when the trainers immediately skill and speed.
reinforce correct responses 5. As soon as the learner demonstrates ability to do
3. Trainees learn best at their own pace. the job, let the work begin, but don’t abandon him
4. Create a perceived training need in the trainees’ or her.
minds.
5. The schedule is important too: The learning curve Step 4: Follow up
goes down late in the day, less than full day training 1. Designate to whom the learner should go for help.
is most effective. 2. Gradually decrease supervision, checking work from
time to time against quality and quantity standards.
Analyzing Training Needs 3. Correct faulty work patterns before they become a
Task analysis habit. Show why the learned method is superior.
A detailed study of a job to identify the specific skills 4. Compliment good work; encourage the worker until
required, especially for new employees. he or she is able to meet the quality and quantity
standards.
Performance analysis Training Methods
Verifying that there is a performance deficiency and Apprenticeship training
determining whether that deficiency should be corrected A structured process by which people become skilled
through training or through some other means (such as workers through a combination of classroom instruction
transferring the employee). and on-the-job training.
Training Methods Informal learning
On-the-job training (OJT) The majority of what employees learn on the job they learn
Having a person learn a job by actually doing the job. through informal means of performing their jobs on a daily
basis.
OJT methods
2. Coaching or understudy Job instruction training (JIT)
3. Job rotation Listing each job’s basic tasks, along with key points, in order
4. Special assignments to provide step-by-step training for employees.
Advantages Effective lectures
1. Inexpensive 1. Use signals to help listeners follow your ideas.
2. Immediate feedback 2. Don’t start out on the wrong foot.
3. Keep your conclusions short.
Steps in OJT 4. Be alert to your audience.
Step 1: Prepare the learner 5. Maintain eye contact with the trainees.
 Put the learner at ease—relieve the tension. 6. Make sure everyone in the room can hear.
 Explain why he or she is being taught. 7. Control your hands.
 Create interest, encourage questions, find out what 8. Talk from notes rather than from a script.
the learner already knows about this or other jobs. 9. Break a long talk into a series of five-minute talks.
 Explain the whole job and relate it to some job the
worker already knows. Programmed Learning
 Place the learner as close to the normal working Programmed instruction (PI)
position as possible. A systematic method for teaching job skills involving:
 Familiarize the worker with equipment, materials,  Presenting questions or facts
tools, and trade terms.  Allowing the person to respond
 Giving the learner immediate feedback on the
Step 2: Present the operation accuracy of his or her answers
1. Explain quantity and quality requirements.
2. Go through the job at the normal work pace. Advantages
3. Go through the job at a slow pace several times, 1. Reduced training time
explaining each step. Between operations, explain 2. Self-paced learning
3. Immediate feedback
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4. Reduced risk of error for learner

Coaching/Understudy approach
Literacy training techniques The trainee works directly with a senior manager or with
1. Responses to functional illiteracy the person he or she is to replace; the latter is responsible
2. Testing job candidates’ basic skills. for the trainee’s coaching.
3. Setting up basic skills and literacy programs.
Action learning
Audiovisual-based training Management trainees are allowed to work full-time
1. To illustrate following a sequence over time. analyzing and solving problems in other departments.
2. To expose trainees to events not easily
demonstrable in live lectures. Off-the-Job Management Training and Development
3. To meet the need for organizationwide training and Techniques
it is too costly to move the trainers from place to Case study method
place. Managers are presented with a description of an
organizational problem to diagnose and solve.
Simulated training (occasionally called vestibule training)
1. Training employees on special off-the-job Management game
equipment so training costs and hazards can be Teams of managers compete by making computerized
reduced. decisions regarding realistic but simulated situations.
2. Computer-based training (CBT)
3. Electronic performance support systems (EPSS) Outside seminars
4. Learning portals Many companies and universities offer Web-based and
traditional management development seminars and
Computer-based Training (CBT) conferences.
Advantages
1. Reduced learning time Role playing
2. Cost-effectiveness Creating a realistic situation in which trainees assume the
3. Instructional consistency roles of persons in that situation.
Types of CBT Behavior modeling
1. Intelligent Tutoring systems 1. Modeling: showing trainees the right (or “model”)
2. Interactive multimedia training way of doing something.
3. Virtual reality training 2. Role playing: having trainees practice that way
3. Social reinforcement: giving feedback on the
Distance and Internet-Based Training trainees’ performance.
Teletraining 4. Transfer of learning: Encouraging trainees apply
A trainer in a central location teaches groups of employees their skills on the job.
at remote locations via TV hookups.
Corporate universities
Videoconferencing Provides a means for conveniently coordinating all the
Interactively training employees who are geographically company’s training efforts and delivering Web-based
separated from each other—or from the trainer—via a modules that cover topics from strategic management to
combination of audio and visual equipment. mentoring.
Training via the Internet In-house development centers
Using the Internet or proprietary internal intranets to A company-based method for exposing prospective
facilitate computer-based training. managers to realistic exercises to develop improved
management skills.
What Is Management Development?
Management development Executive coaches
Any attempt to improve current or future management  An outside consultant who questions the
performance by imparting knowledge, changing attitudes, executive’s boss, peers, subordinates, and
or increasing skills. (sometimes) family in order to identify the
executive’s strengths and weaknesses.
Succession planning  Counsels the executive so he or she can capitalize
A process through which senior-level openings are planned on those strengths and overcome the weaknesses.
for and eventually filled.
1. Anticipate management needs Managing Organizational Change and Development
2. Review firm’s management skills inventory What to change?
3. Create replacement charts 1. Strategy: mission and vision
4. Begin management development 2. Culture: new corporate values
3. Structure: departmental structure, coordination,
Managerial on-the-Job Training span of control, reporting relationships, tasks,
Job rotation decision-making procedures
Moving a trainee from department to department to 4. Technologies: new systems and methods
broaden his or her experience and identify strong and weak 5. Employees: changes in employee attitudes and skills
points.
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Overcoming Resistance to Change

What causes resistance?
All behavior in organizations is a product of two kinds of
forces—those striving to maintain the status quo and those
pushing for change.
Lewin’s Change Process
 Unfreezing: reducing the forces striving to maintain
the status quo.
 Moving: developing new behaviors, values, and
attitudes, sometimes through structural changes.
 Refreezing: reinforcing the changes.
Overcoming Resistance to Change
Change initiatives
 Political campaign: creating a coalition strong
enough to support and guide the initiative.
 Marketing campaign: tapping into employees’
thoughts and feelings and also effectively
communicating messages about the prospective
program’s theme and benefits.
 Military campaign: Deploying executives’ scarce
resources of attention and time to actually carry out Evaluating the Training Effort
the change.
Designing the study
How to Lead the Change (in 10 Steps)  Time series design
 Establish a sense of urgency.  Controlled experimentation
 Mobilize commitment through joint diagnosis of Training effects to measure
problems. 1. Reaction of trainees to the program
 Create a guiding coalition. 2. Learning that actually took place
 Develop a shared vision. 3. Behavior that changed on the job
 Communicate the vision. 4. Results that were achieved as a result of the
 Help employees to make the change. training
 Generate short-term wins. Time Series Training Evaluation Design
 Consolidate gains and produce more change.
 Anchor the new ways of doing things in the
company’s culture.
 Monitor progress and adjust the vision as required.
Using Organizational Development
Organizational development (OD)
A special approach to organizational change in which CHAPTER 9
employees themselves formulate and implement the
change that’s required. PERFORMANCE MANAGEMENT AND APPRAISAL
 Usually involves action research.
 Applies behavioral science knowledge.
 Changes the attitudes, values, and beliefs of Comparing Performance Appraisal and Performance
employees. Management
 Changes the organization in a particular direction. Performance appraisal
Evaluating an employee’s current and/or past performance
Examples of OD Interventions relative to his or her performance standards.
Performance management
The process employers use to make sure employees are
working toward organizational goals.
Why Performance Management?
Increasing use by employers of performance management
reflects:
 The popularity of the total quality management
(TQM) concepts.
 The belief that traditional performance appraisals
are often not just useless but counterproductive.
 The necessity in today’s globally competitive
industrial environment for every employee’s efforts
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to focus on helping the company to achieve its  Attainable, and not too tough or too easy.
strategic goals.  Relevant to what’s to be achieved.
 Timely in reflecting deadlines and milestones.
An Introduction to AppraisingPerformance
Why appraise performance? Performance Appraisal Roles
 Appraisals play an integral role in the employer’s Supervisors
performance management process.  Usually do the actual appraising.
 Appraisals help in planning for correcting  Must be familiar with basic appraisal techniques.
deficiencies and reinforce things done correctly.  Must understand and avoid problems that can
 Appraisals, in identifying employee strengths and cripple appraisals.
weaknesses, are useful for career planning  Must know how to conduct appraisals fairly.
 Appraisals affect the employer’s salary raise
decisions. Performance Appraisal Roles
HR department
Realistic Appraisals  Serves a policy-making and advisory role.
Motivations for soft (less-than-candid) appraisals  Provides advice and assistance regarding the
 The fear of having to hire and train someone new appraisal tool to use.
 The unpleasant reaction of the appraisee  Prepares forms and procedures and insists that all
 A company appraisal process that’s not conducive departments use them.
to candor  Responsible for training supervisors to improve
their appraisal skills.
Hazards of giving soft appraisals  Responsible for monitoring the system to ensure
 Employee loses the chance to improve before being that appraisal formats and criteria comply with EEO
forced to change jobs. laws and are up to date.
 Lawsuits arising from dismissals involving inaccurate
performance appraisals. Steps in Appraising Performance
Defining the job
Continuous improvement Making sure that you and your subordinate agree on his or
A management philosophy that requires employers to her duties and job standards.
continuously set and relentlessly meet ever-higher quality,
cost, delivery, and availability goals by: Appraising performance
Comparing your subordinate’s actual performance to the
Eradicating the seven wastes: standards that have been set; this usually involves some
overproduction, defective products, and unnecessary type of rating form.
downtime, transportation, processing costs, motion, and
inventory. Providing feedback
Discussing the subordinate’s performance and progress, and
Requiring each employee to continuously improve his or her making plans for any development required.
own personal performance, from one appraisal period to
the next. Designing the Appraisal Tool
What to measure?
 Work output (quality and quantity)
The Components of an Effective  Personal competencies
 Performance Management Process  Goal (objective) achievement
 Direction sharing
 Role clarification How to measure?
 Goal alignment  Graphic rating scales
 Developmental goal setting  Alternation ranking method
 Ongoing performance monitoring  MBO
 Ongoing feedback
 Coaching and support Performance Appraisal Methods
 Performance assessment (appraisal) Graphic rating scale
 Rewards, recognition, and compensation A scale that lists a number of traits and a range of
 Workflow and process control and return performance for each that is used to identify the score that
best describes an employee’s level of performance for each
Defining Goals and Work Efforts trait.
Guidelines for effective goals
 Assign specific goals Alternation ranking method
 Assign measurable goals Ranking employees from best to worst on a particular trait,
 Assign challenging but doable goals choosing highest, then lowest, until all are ranked.
 Encourage participation
Paired comparison method
SMART goals are: Ranking employees by making a chart of all possible pairs of
 Specific, and clearly state the desired results. the employees for each trait and indicating which is the
 Measurable in answering “how much.” better employee of the pair.
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Strictness/leniency
Forced distribution method The problem that occurs when a supervisor has a tendency
Similar to grading on a curve; predetermined percentages of to rate all subordinates either high or low.
ratees are placed in various performance categories.
Example: Bias
1. 15% high performers The tendency to allow individual differences such as age,
2. 20% high-average performers race, and sex to affect the appraisal ratings employees
3. 30% average performers receive.
4. 20% low-average performers
5. 15% low performers How to Avoid Appraisal Problems
 Learn and understand the potential problems, and
Narrative Forms the solutions for each.
 Use the right appraisal tool. Each tool has its own
Behaviorally anchored rating scale (BARS) pros and cons.
An appraisal method that uses quantified scale with specific  Train supervisors to reduce rating errors such as
narrative examples of good and poor performance. halo, leniency, and central tendency.
Developing a BARS:  Have raters compile positive and negative critical
 Generate critical incidents incidents as they occur.
 Develop performance dimensions
 Reallocate incidents Who Should Do the Appraising?
 Scale the incidents  The immediate supervisor
 Develop a final instrument  Peers
Advantages of using a BARS  Rating committees
 A more accurate gauge  Self-ratings
 Clearer standards  Subordinates
 Feedback  360-Degree feedback
 Independent dimensions
 Consistency The Appraisal Interview
Types of appraisal interviews
Management by Objectives (MBO)  Satisfactory—Promotable
Involves setting specific measurable goals with each  Satisfactory—Not promotable
employee and then periodically reviewing the progress  Unsatisfactory—Correctable
made.  Unsatisfactory—Uncorrectable
 Set the organization’s goals.
 Set departmental goals. How to conduct the appraisal interview
 Discuss departmental goals.  Talk in terms of objective work data.
 Define expected results (set individual goals).  Don’t get personal.
 Performance reviews.  Encourage the person to talk.
 Provide feedback.  Don’t tiptoe around.
Computerized and Web-Based Performance Appraisal How to handle a defensive subordinate
Performance appraisal software programs 1. Recognize that defensive behavior is normal.
 Keep notes on subordinates during the year. 2. Never attack a person’s defenses.
 Electronically rate employees on a series of 3. Postpone action.
performance traits. 4. Recognize your own limitations.
 Generate written text to support each part of the
appraisal. How to criticize a subordinate
 Do it in a manner that lets the person maintain his
Electronic performance monitoring (EPM) or her dignity and sense of worth.
Having supervisors electronically monitor the amount of  Criticize in private, and do it constructively.
computerized data an employee is processing per day, and  Avoid once-a-year “critical broadsides” by giving
thereby his or her performance. feedback on a daily basis, so that the formal review
contains no surprises.
Potential Rating Scale Appraisal Problems  Never say the person is “always” wrong
Unclear standards  Criticism should be objective and free of any
An appraisal that is too open to interpretation. personal biases on your part.
Halo effect How to ensure the interview leads to improved
Occurs when a supervisor’s rating of a subordinate on one performance
trait biases the rating of that person on other traits.  Don’t make the subordinate feel threatened during
the interview.
Central tendency  Give the subordinate the opportunity to present his
A tendency to rate all employees the same way, such as or her ideas and feelings and to influence the
rating them all average. course of the interview.
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 Have a helpful and constructive supervisor conduct Talk with your manager about your career
the interview. Follow through on realistic career plans.
 Offer the subordinate the necessary support for
development and change. The Manager
Provide timely performance feedback.
How to handle a formal written warning Provide developmental assignments and support
Purposes of the written warning Participate in career development discussions
 To shake your employee out of bad habits. Support employee development plans.
 Help you defend your rating, both to your own boss
and (if needed) to the courts. The Organization
Written warnings should: Communicate mission, policies, and procedures.
1. Identify standards by which employee is judged. Provide training and development opportunities
2. Make clear that employee was aware of the Provide career information and career programs.
standard. Offer a variety of career options
3. Specify deficiencies relative to the standard.
4. Indicates employee’s prior opportunity for Choosing a Mentor
correction.  Choose an appropriate potential mentor.
 Don’t be surprised if you’re turned down.
Creating the Total PerformanceManagement Process  Be sure that the mentor understands what you
1. “What is our strategy and what are our goals?” expect in terms of time and advice.
2. “What does this mean for the goals we set for our  Have an agenda.
employees, and for how we train, appraise,  Respect the mentor’s time.
promote, and reward them?”
3. What will be the technological support The Employer’s Role in Career Development
requirements? 1. Realistic job previews
2. Challenging first jobs
CHAPTER 10 3. Career-oriented appraisals
4. Job rotation
MANAGING CAREERS 5. Mentoring
6. Networking and interactions
The Basics of Career Management Innovative Corporate Career Development Initiatives

Career 1. Provide each employee with an individual budget.
The occupational positions a person has had over many 2. Offer on-site or online career centers.
years. 3. Encourage role reversal.
4. Establish a “corporate campus.”
Career management 5. Help organize “career success teams.”
The process for enabling employees to better understand 6. Provide career coaches.
and develop their career skills and interests, and to use 7. Provide career planning workshops
these skills and interests more effectively. 8. Utilize computerized on- and offline career
development programs
Career development 9. Establish a dedicated facility for career
The lifelong series of activities that contribute to a person’s development
career exploration, establishment, success, and fulfillment.
The Basics of Career Management
Career planning Managing Promotions
The deliberate process through which someone becomes Making promotion decisions
aware of personal skills, interests, knowledge, motivations,  Decision 1: Is Seniority or Competence the Rule?
and other characteristics; and establishes action plans to  Decision 2: How Should We Measure Competence?
attain specific goals.  Decision 3: Is the Process Formal or Informal?
 Decision 4: Vertical, Horizontal, or Other?
Careers today
 Careers are no simple progressions of employment Managing Transfers
in one or two firms with a single profession. Employees’ reasons for desiring transfers
 Employees now want to exchange performance for  Personal enrichment and growth
training, learning, and development that keep  More interesting jobs
them marketable.  Greater convenience (better hours, location)
 Greater advancement possibilities
Roles in Career Development Employers’ reasons for transferring employees

Individual  To vacate a position where an employee is no
Accept responsibility for your own career. longer needed.
Assess your interests, skills, and values  To fill a position where an employee is needed.
Seek out career information and resources.  To find a better fit for an employee within the firm.
Establish goals and career plans. Utilize development  To boost productivity by consolidating positions.
opportunities.
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Enhancing Diversity through Career Management Identify Your Occupational Orientation

Sources of bias and discrimination in promotion decisions  Realistic orientation
 Having few people of color employed in the hiring  Investigative orientation
department  Social orientation
 The “old-boy network” of informal friendships  Conventional orientation
 A lack of women mentors  Enterprising orientation
 A lack of high-visibility assignments and  Artistic orientation
developmental experiences (glass ceiling)
 A lack of company role models for members of the Choosing an Occupational Orientation
same racial or ethnic group
 Inflexible organizations and career tracks
Enhancing Women’s and Minorities’Prospects
 Eliminate institutional barriers
 Improve networking and mentoring
 Eliminate the glass ceiling
 Institute flexible schedules and career tracks
Career Management and Employee Commitment
The “New Psychological Contract”
 Old contract: “Do your best and be loyal to us, and
we’ll take care of your career.”
 New contract: “Do your best for us and be loyal to
us for as long as you’re here, and we’ll provide you
with the developmental opportunities you’ll need
to move on and have a successful career.”
Career Management and Employee Commitment Identify Your Career Anchors
Commitment-oriented career development efforts Career anchor
1. Career development programs A concern or value that a person you will not give up if a
Career workshops that use vocational guidance [career] choice has to be made.
tools (including a computerized skills assessment
program and other career gap analysis tools) to help Typical career anchors
employees identify career-related skills and the 3. Technical/functional competence
development needs they possess. 4. Managerial competence
2. Career-oriented appraisals 5. Creativity
Provide the ideal occasion to link the employee’s 6. Autonomy and independence
performance, career interests, and developmental 7. Security
needs into a coherent career plan.
Retirement Finding the Right Job
The point at which one gives up one’s work, usually  Do Your Own Local Research
between the ages of 60 and 65.
Preretirement practices  Personal Contacts
1. Explanation of Social Security benefits  Answering Advertisements
2. Leisure time counseling  Employment Agencies
3. Financial and investment counseling  Executive Recruiters
4. Health counseling  Career Counselors
5. Psychological counseling  Executive Marketing Consultants
6. Counseling for second careers  Employers’ Web Sites
7. Counseling for second careers inside the company
Writing Your Résumé
MANAGING YOUR CAREER 1. Introductory Information
2. Job Objective
3. Job Scope
Identify Your Career Stage 4. Your Accomplishments
1. Growth stage 5. Length
2. Exploration stage 6. Personal Data
3. Establishment stage 7. Make Your Résumé Scannable
a. Trial substage
b. Stabilization substage Handling the Interview
c. Midcareer crisis substage  Prepare, Prepare, Prepare
4. Maintenance Stage
5. Decline Stage  Uncover the Interviewer’s Needs
 Relate Yourself to the Person’s Needs
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 Think Before Answering Corporate Policies, Competitive Strategy,and

 Make a Good Appearance and Show Enthusiasm Compensation
Aligned reward strategy
 The employer’s basic task is to create a bundle of
CHAPTER 11 rewards—a total reward package—specifically
ESTABLISHING STRATEGIC PAY PLANS aimed at eliciting the employee behaviors the firm
needs to support and achieve its competitive
strategy.
Determining Pay Rates  The HR or compensation manager will write the
Employee compensation policies in conjunction with top management, in a
All forms of pay or rewards going to employees and arising manner such that the policies are consistent with
from their employment. the firm’s strategic aims.
Direct financial payments Developing an Aligned Reward Strategy

Pay in the form of wages, salaries, incentives, commissions, Questions to Ask:
and bonuses. 1. What are our company’s key success factors? What must
our company do to be successful in fulfilling its mission or
Indirect financial payments achieving its desired competitive position?
Pay in the form of financial benefits such as insurance.
2. What are the employee behaviors or actions necessary to
Overview of Compensation Laws successfully implement this competitive strategy?
Davis-Bacon Act (1931)
A law that sets wage rates for laborers employed by 3. What compensation programs should we use to reinforce
contractors working for the federal government. those behaviors? What should be the purpose of each
program in reinforcing each desired behavior?
Walsh-Healey Public Contract Act (1936) 4. What measurable requirements should each
A law that requires minimum wage and working conditions compensation program meet to be deemed successful in
for employees working on any government contract
amounting to more than $10,000. fulfilling its purpose?
Title VII of the 1964 Civil Rights Act 5. How well do our current compensation programs match
This act makes it unlawful for employers to discriminate these requirements?
against any individual with respect to hiring, compensation, Compensation Policy Issues
terms, conditions, or privileges of employment because of
race, color, religion, sex, or national origin.  Pay for performance
 Pay for seniority
Fair Labor Standards Act (1938)  The pay cycle
This act provides for minimum wages, maximum hours,  Salary increases and promotions
overtime pay for nonexempt employees after 40 hours  Overtime and shift pay
worked per week, and child labor protection. The law has  Probationary pay
been amended many times and covers most employees.  Paid and unpaid leaves
 Paid holidays
Equal Pay Act (1963)  Salary compression
An amendment to the Fair Labor Standards Act designed to  Geographic costs of living differences
require equal pay for women doing the same work as men.
Employee Retirement Income Security Act (ERISA) Salary compression
The law that provides government protection of pensions A salary inequity problem, generally caused by inflation,
for all employees with company pension plans. It also resulting in longer-term employees in a position earning less
regulates vesting rights (employees who leave before than workers entering the firm today.
retirement may claim compensation from the pension plan).
Equity and Its Impact on Pay Rates
The Age Discrimination in Employment Act The equity theory of motivation
Prohibits age discrimination against employees who are 40 States that if a person perceives an inequity, the person will
years of age and older in all aspects of employment, be motivated to reduce or eliminate the tension and
including compensation. perceived inequity.
The Americans with Disabilities Act Forms of Equity
Prohibits discrimination against qualified persons with External equity
disabilities in all aspects of employment, including How a job’s pay rate in one company compares to the job’s
compensation. pay rate in other companies.
The Family and Medical Leave Act Internal equity
Entitles eligible employees, both men and women, to take How fair the job’s pay rate is, when compared to other jobs
up to 12 weeks of unpaid, job-protected leave for the birth within the same company
of a child or for the care of a child, spouse, or parent.
Individual equity
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How fair an individual’s pay as compared with what his or  Select compensable factors.
her co-workers are earning for the same or very similar jobs  Rank jobs.
within the company.  Combine ratings.
Procedural equity Job Evaluation Methods:
The perceived fairness of the process and procedures to Job Classification
make decisions regarding the allocation of pay. Raters categorize jobs into groups or classes of jobs that are
of roughly the same value for pay purposes.
Methods to Address Equity Issues  Classes contain similar jobs.
Salary surveys  Grades are jobs that are similar in difficulty but
To monitor and maintain external equity. otherwise different.
 Jobs are classed by the amount or level of
Job analysis and job evaluation compensable factors they contain.
To maintain internal equity
Example of A Grade Level Definition
Performance appraisal and incentive pay GRADE GS-7
To maintain individual equity.
Communications, grievance mechanisms, and employees’
participation
To help ensure that employees view the pay process as
transparent and fair.
Establishing Pay Rates
Step 1. The salary survey
Aimed at determining prevailing wage rates.
A good salary survey provides specific wage rates for
specific jobs.
Formal written questionnaire surveys are the most
comprehensive, but telephone surveys and newspaper ads This is a summary chart of the key grade level criteria for
are also sources of information.Benchmark job is A job that the GS-7 level of clerical and assistance work. Do not use
is used to anchor the employer’s pay scale and around this chart alone for classification purposes; additional grade
which other jobs are arranged in order of relative worth. level criteria are in the Web-based chart
Sources for Salary Surveys Job Evaluation Methods: Point Method
 Consulting firms A quantitative technique that involves:
 Professional associations  Identifying the degree to which each compensable
 Government agencies factors are present in the job.
 U.S. Department of Labor’s Bureau of Labor  Awarding points for each degree of each factor.
Statistics (BLS) conducts three annual surveys:  Calculating a total point value for the job by adding
 Area wage surveys up the corresponding points for each factor.
 Industry wage surveys
 Professional, administrative, technical, and clerical
(PATC) surveys.
Step 2. Job evaluation Job Evaluation Methods: Factor Comparison
A systematic comparison done in order to determine the Each job is ranked several times—once for each of several
worth of one job relative to another. compensable factors.The rankings for each job are
combined into an overall numerical rating for the job.
Compensable factor
A fundamental, compensable element of a job, such as Computerized Job Evaluations
skills, effort, responsibility, and working conditions. A computerized system that uses a structured questionnaire
and statistical models to streamline the job evaluation
Preparing for the Job Evaluation process.
1. Identifying the need for the job evaluation
2. Getting the cooperation of employees Advantages of computer-aided job evaluation (CAJE)
3. Choosing an evaluation committee.  Simplify job analysis
4. Performing the actual evaluation.  Help keep job descriptions up to date
 Increase evaluation objectivity
Job Evaluation Methods: Ranking  Reduce the time spent in committee meetings
Ranking each job relative to all other jobs, usually based on  Ease the burden of system maintenance
some overall factor.
Step 3. Group Similar Jobs into Pay Grades
Steps in job ranking: A pay grade is comprised of jobs of approximately equal
 Obtain job information. difficulty or importance as established by job evaluation.
 Select and group jobs.
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 Point method: the pay grade consists of jobs falling

within a range of points.
 Ranking method: the grade consists of all jobs that
fall within two or three ranks.
 Classification method: automatically categorizes
jobs into classes or grades.
Step 4. Price Each Pay Grade
Wage Curve
1. Shows the pay rates currently paid for jobs in each
pay grade, relative to the points or rankings
assigned to each job or grade by the job evaluation.
2. Shows the relationships between the value of the
job as determined by one of the job evaluation
methods and the current average pay rates for your
grades.
Plotting a Wage Curve
Pricing Managerial and Professional Jobs

Compensating managers
1. Base pay: fixed salary, guaranteed bonuses.
2. Short-term incentives: cash or stock bonuses
Step 5. Fine-tune pay rates 3. Long-term incentives: stock options
Developing pay ranges 4. Executive benefits and perks: retirement plans, life
1. Flexibility in meeting external job market rates insurance, and health insurance without a
2. Easier for employees to move into higher pay deductible or coinsurance.
grades
3. Allows for rewarding performance differences and Pricing Managerial and Professional Jobs
seniority What Really Determines Executive Pay?
Correcting out-of-line rates CEO pay is set by the board of directors taking into account
1. Raising underpaid jobs to the minimum of the rate factors such as the business strategy, corporate trends, and
range for their pay grade. where they want to be in a short and long term.Firms pay
2. Freezing rates or cutting pay rates for overpaid CEOs based on the complexity of the jobs they filled.Boards
(“red circle”) jobs to maximum in the pay range for are reducing the relative importance of base salary while
their pay grade. boosting the emphasis on performance-based pay.
Wage Structure
Compensating Professional Employees

Employers can use job evaluation for professional
jobs.Compensable factors focus on problem solving,
creativity, job scope, and technical knowledge and
expertise. Firms use the point method and factor
comparison methods, although job classification seems
most popular.Professional jobs are market-priced to
establish the values for benchmark jobs.
What Is Competency-based Pay?
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Competency-based pay women have jobs that are dissimilar to those of men and
Where the company pays for the employee’s range, depth, those jobs often consistently valued less than men’s jobs.
and types of skills and knowledge, rather than for the job
title he or she holds. Compensation and Women
Factors lowering the earnings of women:
Competencies  Women’s starting salaries are traditionally lower.
Demonstrable characteristics of a person, including  Salary increases for women in professional jobs do
knowledge, skills, and behaviors, that enable performance. not reflect their above-average performance.
 In white-collar jobs, men change jobs more
Why Use Competency-Based Pay? frequently, enabling them to be promoted to
1. Traditional pay plans may actually backfire if a high- higher-level jobs over women with more seniority.
performance work system is the goal.  In blue-collar jobs, women tend to be placed in
2. Paying for skills, knowledge, and competencies is departments with lower-paying jobs.
more strategic.
3. Measurable skills, knowledge, and competencies Factor Comparison Job Evaluation Method
are the heart of any company’s performance Step 1. Obtain job information
management process. Step 2. Select key benchmark jobs
Step 3. Rank key jobs by factor
Competency-Based Pay in Practice Step 4. Distribute wage rates by factors
Main components of skill/competency/ knowledge–based Step 5. Rank key jobs according to wages
pay programs: assigned to each factor
 A system that defines specific skills, and a process Step 6. Compare the two sets of rankings to
for tying the person’s pay to his or her skill screen out unusable key jobs
 A training system that lets employees seek and Step 7. Construct the job-comparison scale
acquire skills Step 8. Use the job-comparison scale
 A formal competency testing system
 A work design that lets employees move among The Point Method of Job Evaluation
jobs to permit work assignment flexibility. Step 1. Determine clusters of jobs to be evaluated
Step 2. Collect job information
Competency-Based Pay: Pros and Cons Step 3. Select compensable factors
Pros Step 4. Define compensable factors
1. Higher quality Step 5. Define factor degrees
2. Lower absenteeism and fewer accidents Step 6. Determine relative values of factors
Cons
1. Pay program implementation problems
2. Cost implications of paying for unused knowledge, CHAPTER 12
skills and behaviors PAY FOR PERFORMANCE AND FINANCIAL INCENTIVES
3. Complexity of program
4. Uncertainty that the program improves productivity
Other Compensation Trends Incentives
Broadbanding Financial rewards paid to workers whose production
exceeds a predetermined standard.
Consolidating salary grades and ranges into just a few wide
levels or “bands,” each of which contains a relatively wide Frederick Taylor
range of jobs and salary levels. Popularized scientific management and the use of financial
Wide bands provide for more flexibility in assigning workers incentives in the late 1800s. Systematic soldiering is the
to different job grades.Lack of permanence in job tendency of employees to work at the slowest pace possible
and to produce at the minimum acceptable level.
responsibilities can be unsettling to new employees.
Individual Differences
Strategic compensation Law of individual differences
Using the compensation plan to support the company’s
strategic aims.Focuses employees’ attention on the values  The fact that people differ in personality, abilities,
of winning, execution, and speed, and on being better, values, and needs.
faster, and more competitive..  Different people react to different incentives in
different ways.
IBM’s strategic compensation plan:  Managers should be aware of employee needs and
1. The marketplace rules. fine-tune the incentives offered to meets their
2. Fewer jobs, evaluated differently, in broadbands. needs.
3. Managers manage.  Money is not the only motivator.
4. Big stakes for stakeholders.
Employee Preferences for Noncash Incentives
Comparable worth
Refers to the requirement to pay men and women equal
wages for jobs that are of comparable (rather than strictly
equal) value to the employer.Seeks to address the issue that
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Variable pay (organizational focus)

A team or group incentive plan that ties pay to some
measure of the firm’s overall profitability.
Variable pay (individual focus)
Any plan that ties pay to individual productivity or
profitability, usually as one-time lump payments.
Pay-for-performance plans
 Individual incentive/recognition programs
 Sales compensation programs
 Team/group-based variable pay programs
 Organizationwide incentive programs
 Executive incentive compensation programs
Needs and Motivation
Abraham Maslow’s Hierarchy of Needs Individual Incentive Plans
Five increasingly higher-level needs: Piecework Plans
1. physiological (food, water, sex) The worker is paid a sum (called a piece rate) for each unit
2. security (a safe environment) he or she produces.
3. social (relationships with others)  Straight piecework: A fixed sum is paid for each unit
4. self-esteem (a sense of personal worth) the worker produces under an established piece
5. self-actualization (becoming the desired self) rate standard. An incentive may be paid for
exceeding the piece rate standard.
Lower level needs must be satisfied before higher level  Standard hour plan: The worker gets a premium
needs can be addressed or become of interest to the equal to the percent by which his or her work
individual. performance exceeds the established standard.
Herzberg’s Hygiene–Motivator theory Pro and cons of piecework
Hygienes (extrinsic job factors)  Easily understandable, equitable, and powerful
Inadequate working conditions, salary, and incentive pay incentives
can cause dissatisfaction and prevent satisfaction.  Employee resistance to changes in standards or
work processes affecting output
Motivators (intrinsic job factors)  Quality problems caused by an overriding output
Job enrichment (challenging job, feedback and recognition) focus
addresses higher-level (achievement, self-actualization)  Possibility of violating minimum wage standards
needs.  Employee dissatisfaction when incentives either
cannot be earned due to external factors or are
The best way to motivate someone is to organize the job so withdrawn due to a lack of need for output
that doing it helps satisfy the person’s higher-level needs.
Merit pay
Edward Deci A permanent cumulative salary increase the firm awards to
Intrinsically motivated behaviors are motivated by the an individual employee based on his or her individual
underlying need for competence and self-determination. performance.
Offering an extrinsic reward for an intrinsically-motivated
act can conflict with the acting individual’s internal sense of Merit pay options
responsibility.Some behaviors are best motivated by job Annual lump-sum merit raises that do not make the raise
challenge and recognition, others by financial rewards. part of an employee’s base salary.Merit awards tied to both
individual and organizational performance.
Instrumentality and Rewards
Vroom’s Expectancy Theory Incentives for professional employees
A person’s motivation to exert some level of effort is a Professional employees are those whose work involves the
function of three things: application of learned knowledge to the solution of the
 Expectancy: that effort will lead to performance. employer’s problems.
 Instrumentality: the connection between Lawyers, doctors, economists, and engineers.
performance and the appropriate reward.
 Valence: the value the person places on the reward. Possible incentives
1. Bonuses, stock options and grants, profit sharing
Motivation = E x I x V 2. Better vacations, more flexible work hours
 If any factor (E, I, or V) is zero, then there is no 3. improved pension plans
motivation to work toward the reward. 4. Equipment for home offices
 Employee confidence building and training, Recognition-based awards
accurate appraisals, and knowledge of workers’ Recognition has a positive impact on performance, either
desired rewards can increase employee motivation. alone or in conjunction with financial rewards.Combining
financial rewards with nonfinancial ones produced
Types of Incentive Plans performance improvement in service firms almost twice the
Pay-for-performance plans
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effect of using each reward alone.Day-to-day recognition  Do low performers show improvement over time?
from supervisors, peers, and team members is important.  Are quotas stable through the performance period?
 Are returns and debookings reasonably low?
Online award programs  Has your firm generally avoided compensation-
Programs offered by online incentives firms that improve related lawsuits?
and expedite the awards process.  Is 10% of the salesforce achieving higher
1. Broader range of awards performance than previously?
2. More immediate rewards  Is 5% to 10% of the salesforce achieving below
quota performance and receiving coaching?
Information technology and incentives
Enterprise incentive management (EIM) Team/Group Variable Pay Incentive Plans
Software that automates the planning, calculation, Team or group incentive plan
modeling and management of incentive compensation A plan in which a production standard is set for a specific
plans, enabling companies to align their employees with work group, and its members are paid incentives if the
corporate strategy and goals. group exceeds the production standard.
Incentives for Salespeople How to Design Team Incentives
Salary plan Set individual work standards
Straight salaries Set work standards for each team member and then
 Best for: prospecting (finding new clients), account calculate each member’s output.
servicing, training customer’s salesforce, or
participating in national and local trade shows. Members are paid based on one of three formulas:
 All members receive the same pay earned by the
Commission plan highest producer.
Pay is only a percentage of sales  All members receive the same pay earned by the
 Keeps sales costs proportionate to sales revenues. lowest producer.
 May cause a neglect of nonselling duties.  All members receive same pay equal to the average
 Can create wide variation in salesperson’s income. pay earned by the group.
 Likelihood of sales success may linked to external
factors rather than to salesperson’s performance. Use an engineered production standard based on the
 Can increase turnover of salespeople. output of the group as a whole.All members receive the
same pay, based on the piece rate for the group’s job.This
Combination plan group incentive can use the piece rate or standard hour
 Pay is a combination of salary and commissions, plan, but the latter is more prevalent.
usually with a sizable salary component.
 Plan gives salespeople a floor (safety net) to their Tie rewards to goals based on an overall standard of group
earnings. performanceIf the firm reaches its goal, the employees
 Salary component covers company-specified service share in a percentage of the improvement (in labor costs
activities. saved).
 Plans tend to become complicated, and
misunderstandings can result. Organizationwide Variable Pay Plans
Profit-sharing plans
Specialized Combination Plans Cash plans
Commission-plus-drawing-account plan Employees receive cash shares of the firm’s profits at
Commissions are paid but a draw on future earnings helps regular intervals.
the salesperson to get through low sales periods.
The Lincoln incentive system
Commission-plus-bonus plan Profits are distributed to employees based on their
Pay is mostly based on commissions. individual merit rating.
Small bonuses are paid for directed activities like selling
slow-moving items. Deferred profit-sharing plans
A predetermined portion of profits is placed in each
Setting Sales Quotas employee’s account under a trustee’s supervision.
 Whether to lock quotas in for a period of time? Organizationwide Variable Pay Plans (cont’d)
 Have quotas been communicated quotas to the
salesforce within one month of the start of the Employee stock ownership plan (ESOP)
period? A corporation annually contributes its own stock—or cash
 Does the salesforce know exactly how its quotas are (with a limit of 15% of compensation) to be used to
set? purchase the stock—to a trust established for the
 Do you combine bottom-up information (like employees. The trust holds the stock in individual employee
account forecasts) with top-down requirements accounts and distributes it to employees upon separation
(like the company business plan)? from the firm if the employee has worked long enough to
 Do 60% to 70% of the salesforce generally hit their earn ownership of the stock.
quota?
 Do high performers hit their targets consistently? Advantages of ESOPs
Employees
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ESOPs help employees develop a sense of ownership in and  If employees meet or exceed their goals, they earn
commitment to the firm, and help to build teamwork.No incentives.
taxes on ESOPs are due until employees receive a  If they fail to meet their goals, they forgo some of
distribution from the trust, usually at retirement when their the pay they would normally have earned.
tax rate is lower.
Short-Term Incentives for Managers And Executives
Shareholders of closely held corporations Annual bonus
Helps to diversify their assets by placing their shares of Plans that are designed to motivate short-term
company stock into an ESOP trust and allowing them to performance of managers and are tied to company
purchase other marketable securities for themselves in their profitability.
place.  Eligibility basis: job level, base salary, and impact on
profitability
The company  Fund size basis : nondeductible formula (net
 A tax deduction equal to the fair market value of income) or deductible formula (profitability)
the shares transferred to the trustee.  Individual awards: personal
 An income tax deduction for dividends paid on performance/contribution
ESOP-owned stock.
 The Employee Retirement Income Security Act Long-Term Incentives for Managers And Executives
(ERISA) allows a firm to borrow against employee Stock option
stock held in trust and then repay the loan in pretax The right to purchase a specific number of shares of
rather than after-tax dollars. company stock at a specific price during a specific period of
 Firms offering ESOP had higher shareholder returns time.
than did those not offering ESOPs.  Nonqualified stock option
 Indexed option
Scanlon Plan  Premium priced option
Scanlon plan (Joseph Scanlon, 1937)
Philosophy of cooperation Options have no value (go “underwater”) if the price of the
No “us” and “them” attitudes that inhibit employees from stock drops below the option’s strike price (the option’s
developing a sense of ownership in the company. stock purchase price).
Identity Other plans
Employees understand the business’s mission and how it  Key employee program
operates in terms of customers, prices, and costs.  Stock appreciation rights
 Performance achievement plan
Competence  Restricted stock plans
The plan depends a high level of competence from  Phantom stock plans
employees at all levels.
Sharing of benefits formula Performance plans
Plans whose payment or value is contingent on financial
Employees share in 75% of the savings (reduction in payroll performance measured against objectives set at the start of
expenses divided by total sales). a multi-year period.
Gainsharing Plans Other Executive Incentives
Gainsharing Golden parachutes
 An incentive plan that engages many or all Payments companies make to departing executives in
employees in a common effort to achieve a connection with a change in ownership or control of a
company’s productivity objectives. company.
 Cost-savings gains are shared among employees
and the company. Guaranteed loans to directors
Rucker plan 1. Loans provided to buy company stock.
Improshare 2. A highly risky and now frowned upon practice.
Implementing a Gainsharing Plan Creating an Executive Compensation Plan
1. Establish general plan objectives. 1. Define the strategic context for the executive
2. Choose specific performance measures. compensation program.
3. Decide on a funding formula. 2. Shape each component of the package to focus the
4. Decide on a method for dividing and distributing the manager on achieve the firm’s strategic goals.
employees’ share of the gains. 3. Create a stock option plan to meet the needs of the
5. Choose the form of payment. executives and the company and its strategy.
6. Decide how often to pay bonuses. 4. Check the executive compensation plan for
7. Develop the involvement system. compliance with all legal and regulatory
8. Implement the plan. requirements and for tax effectiveness.
5. Install a process for reviewing and evaluating the
At-Risk Variable Pay Plans executive compensation plan whenever a major
At-risk variable pay plans that put some portion of the business change occurs.
employee’s weekly pay at risk.
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Why Incentive Plans Fail 2. Economic Growth and Tax Relief Conciliation Act of
1. Performance pay can’t replace good management. 2000
2. You get what you pay for. 3. Job Creation and Worker Assistance Act
3. “Pay is not a motivator.”
4. Rewards punish. Health plans
5. Rewards rupture relationships. 1. The Newborn Mother’s Protection Act of 1996
6. Rewards can have unintended consequences. 2. The Mental Health Parity Act of 1996
7. Rewards may undermine responsiveness. 3. Age Discrimination in Employment Act
8. Rewards undermine intrinsic motivation. 4. Health Insurance Portability and Accountability Act
of 1996 (HIPAA)
Implementing Effective Incentive Plans 5. Family and Medical Leave Act (FMLA)
Ask: Is effort clearly instrumental in obtaining the reward? 6. Americans with Disabilities Act (ADA)
Link the incentive with your strategy.
Make sure effort and rewards are directly related. Types of Employee Benefits
Make the plan easy for employees to understand. 1. Pay for time not worked
Set effective standards. 2. Insurance benefits
View the standard as a contract with your employees. 3. Retirement benefits
Get employees’ support for the plan. 4. Services
Use good measurement systems.
Emphasize long-term as well as short-term success. Issues in Developing Benefits Plans
Adopt a comprehensive, commitment-oriented approach 1. Benefits to be offered.
. 2. Coverage of retirees in the plan
HR Activities that Build Commitment 3. Denial of benefits to employees during initial
1. Clarifying and communicating the goals and mission “probationary” periods
of the organization. 4. Financing of benefits.
5. Benefit choices to give employees.
2. Guaranteeing organizational justice. 6. Cost containment procedures to use.
3. Creating a sense of community by emphasizing 7. Communicating benefits options to employees.
teamwork and encouraging employees to interact.
4. Supporting employee development by emphasizing Pay for Time Not Worked
promotion from within, developmental activities, Unemployment insurance
and career-enhancing activities. 1. Provides for benefits if a person is unable to work
5. Generally committing to “people-first values.” through no fault of his or her own.
2. Payroll tax on employers that is determined by an
employer’s rate of personnel terminations.
CHAPTER 13 3. Tax is collected and administered by the state.
BENEFITS AND SERVICES Vacations and holidays
1. Number of paid vacation days varies by employer.
2. Number of holidays varies by employer.
Benefits 3. Premium pay for work on holidays.
Benefits
Indirect financial and nonfinancial payments employees Sick leave
receive for continuing their employment with the company. Provides pay to an employee when he or she is out of work
because of illness.
Types of employee benefit plans 1. Costs for misuse of sick leave
Supplemental pay: sick leave and vacation pay 2. Pooled paid leave plans
Insurance: workers’ compensation
Retirement: Pensions Parental leave
Employee services: child-care facilities The Family Medical Leave Act of 1993 (FMLA)
 Up to 12 weeks of unpaid leave within a one-year
The Benefits Picture Today period
1. Most full-time employees in the United States  Employees must take unused paid leave first.
receive benefits.  Employees on leave retain their health benefits.
2. Virtually all employers—99%—offer some health  Employees have the right to return to their job or
insurance coverage. equivalent position.
3. Benefits are a major expense (about one-third of
wages and salaries) for employers.
4. Employees do seem to understand the value of Severance pay
health benefits. A one-time payment when terminating an
employee.Reasons for granting severance pay:
Laws Affecting Employee Benefits 1. Acts as a humanitarian gesture and good public
Retirement plans relations.
1. Employee Retirement Income Security Act of 1975 2. Mirrors employee’s two week quit notice.
(ERISA) 3. Avoids litigation from disgruntled former
employees.
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4. Meets Worker Adjustment and Retraining  Eliminating cost-inefficient plans

Notification (“plant closing”) Act requirements.  Moving toward PPO
5. Reassures employees who stay on after the
employer downsizes its workforce of employer’s New trends in health care cost control:
good intentions.  Use of cost-containment specialists
 Getting employees more involved and empowered
Supplemental unemployment benefits (SUB)  Automating health care plan administration
Payments that supplement the laid-off or furloughed  Online selection software
employee’s unemployment compensation.  Using defined contribution health care plans
1. The employer makes contributions to a reserve  Outsourcing health care benefits administration
fund from which SUB payments are made to  Reducing or eliminating retiree health care
employees for the time the employee is out of work coverage
due to layoffs, reduced workweeks, or relocations.
2. SUB payments are considered previously earned  Joining benefits purchasing alliances
compensation for unemployment calculation
purposes. Other insurance issues
 Mental health benefits and the Mental Health Parity
Insurance Benefits Act of 1996
Workers’ compensation  The Pregnancy Discrimination Act
Provides income and medical benefits to work-related  COBRA requirements
accident victims or their dependents, regardless of fault.  Long-term care
 Death or disability: a cash benefit based on earnings  Group life insurance
per week of employment.  Provision of benefits for part-time and contingent
 Specific loss injuries: statutory list of losses workers
Controlling worker compensation costs Retirement Benefits

1. Screen out accident-prone workers. Social Security (Federal Old Age and Survivor’s Insurance)
2. Make the workplace safer. A federal payroll tax (7.65%) paid by both the employee and
3. Thoroughly investigate accident claims. the employer on the employee’s wages
4. Use case management to return injured employees  Retirement benefits at the age of 62
to work as soon as possible.  Survivor’s or death benefits paid to the employee’s
dependents
Hospitalization, health, and disability insurance  Disability payments to disabled employees and their
Provide for loss of income protection and group-rate dependents.
coverage of basic and major medical expenses for off-the- The Medicare program
job accidents and illnesses.
 Accidental death and dismemberment Types of pension plans
 Disability insurance  Contributory: employees contribute to the plan.
 Noncontributory plans: employer makes all
Health maintenance organization (HMO) contributions to the plan.
A medical organization consisting of specialists operating  Qualified plans: plans that meet requirements for
out of a community-based health care center. tax benefits for employer contributions.
 Provides routine medical services to employees  Nonqualified plans: plans not meeting requirements
who pay a nominal fee. for favorable tax treatment.
 Receives a fixed annual contract fee per employee  Defined contribution: contributions of employees
from the employer (or employer and employee), and employers are specified; plan payouts are not.
regardless of whether it provides that person with  Defined benefit plans: plan payouts are specified;
service. however, contributions must be sufficient to insure
payouts.
Preferred provider organizations (PPOs)  401(k) Plans
Groups of health care providers that contract to provide
medical care services at reduced fees. Defined contribution plans based on section 401(k) of the
 Employees can select from a list of preferred Internal Revenue Code.
individual health providers.  Plans are funded by pretax payroll deductions.
 Preferred providers agree to discount services and  Contributions are invested in mutual stock funds
to submit to certain utilization controls, such as on and bond funds.
the number of diagnostic tests they can order.  The Economic Growth and Tax Relief Reconciliation
 Employees using non-PPO-listed providers may pay Act of 2001 (EGTRRA) raised limits on employee
all of the service costs or the portion of the costs contributions.
above the reduced fee structure for services.
Other types of defined contribution plans
Other Cost-Saving Strategies Savings and thrift plans
 Wellness programs Employees contribute a portion of their earnings to a fund;
 Disease management the employer usually matches this contribution in whole or
 Absence management in part.
 On-site primary care
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Deferred profit-sharing plans

Employers contribute a portion of profits to the pension Cash balance pension plans
fund, regardless of the level of employee contribution. 1. Defined benefit plan in which the employer
contributes a percentage of employees’ pay to the
Employee stock ownership plans (ESOPs) plan every year, and employees earn interest on
Qualified, tax-deductible stock bonus plans in which this amount.
employers contribute company stock to a trust for eventual 2. Provide the portability of defined contribution plans
use by employees. with the employer funding of defined benefit plans.
3. Conversion to cash balance plans can have a
Employee Retirement Income Security Act (ERISA) of 1974 disparate impact on older workers nearing
Restricts what companies must do in regard to pension retirement.
plans. In unionized companies, the union can participate in
pension plan administration. Personal Services
Credit unions
Pension Benefits Guarantee Corporation (PBGC) Separate businesses established with the employer’s
 Insures pensions of a qualified plan that terminates assistance to help employees with their borrowing and
without sufficient funds to its meet obligations. saving needs.
 Guarantees only defined benefit plans, not defined
contribution plans. Employee assistance programs (EAPs)
 Will only pay an individual a pension of up to about Provide counseling and advisory services:
$27,000 per year. 1. Personal legal and financial services
2. Child and elder care referrals
Employees’ vesting rights under ERISA 3. Adoption assistance
Participants have a right to 100% of accrued benefits after 4. Mental health counseling
five years of service.Employers may phase in vesting over a 5. Life event planning
period of three to seven years.
Employee Assistance Programs
An employer can require that an employee complete a Key steps for launching a successful EAP program include:
period of two years’ service before becoming eligible to 1. Develop a policy statement.
participate in the plan. If an employer requires more than 2. Ensure professional staffing.
one year of service before eligibility, the plan must grant 3. Maintain confidential record-keeping systems.
employees full and immediate vesting rights at the end of 4. Be aware of legal issues.
that period.
Family-Friendly Benefits
Key policy issues in pension planning 1. On-site or subsidized child care
Membership requirements 2. Elder care
Setting the minimum age or minimum service at which 3. Fitness and medical facilities
employees become eligible for a pension. 4. Food services
5. Flexible work scheduling
Benefit formula 6. Telecommuting
Determining pension payouts for individual employees. 7. Educational subsidies
8. Sabbaticals
Plan funding 9. Loan programs for home office equipment
Funding the plan (contributory or noncontributory). 10. Stock options
11. Concierge services
Vesting 12. Trauma counseling
Meeting ERISA requirements for employer and employee
contributions that cannot be forfeited for any reason by the Executive Perquisites
vested employee. 1. Management loans
2. Golden parachutes
Pension alternatives 3. Financial counseling
Early retirement windows 4. Relocation benefits
Specific employees (often age 50-plus) are offered the 5. Sabbaticals
opportunity to voluntarily retire earlier than usual.The 6. Severance pay
financial incentive is generally a combination of improved or 7. Outplacement assistance
liberalized pension benefits plus a cash payment. 8. Company cars
Older Workers’ Benefit Protection Act (OWBPA) 9. Chauffeured limousines
Imposes limitations on waivers that purport to release a 10. Security systems
terminating employee’s potential claims against the 11. Company planes and yachts
employer based on age discrimination. 12. Executive dining rooms
13. Physical fitness programs
Increasing portability 14. Legal services
1. Defined benefit plans to defined contribution plans 15. Tax assistance
2. Allows workers who leave the firm before 16. Expense accounts
retirement to receive initial benefits at a younger 17. Club memberships
age. 18. Season tickets
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19. Credit cards The principles of conduct governing an individual or a

20. Children’s education group; specifically, the standards you use to decide what
your conduct should be.Ethical behavior depends on the
Flexible Benefits Programs person’s frame of reference.
The cafeteria (flexible benefits) approach
Each employee is given a benefits fund budget to spend on Factors affecting ethical decisions
the benefits he or she prefers. Normative judgments
 The fund limits the total cost for each benefits Judging something as good or bad, right or wrong, better or
package. worse.
 Core plus option plans establish a core set of
benefits which are mandatory for all employees. Moral standards (Morality)
Society’s accepted standards for behaviors that have
Flexible spending accounts serious consequences to its well-being.
Enable employees to pay for medical and other expenses  Behaviors that cannot be established or changed by
with pretax dollars by depositing funds in their accounts decisions of authoritative bodies.
from payroll deductions.  Behaviors that override self-interest.
Flexible Work Arrangements Ethics and the law
Flextime  An behavior may be legal but unethical.
A plan whereby employees’ workdays are built around a  An behavior may be illegal but ethical.
core of mid-day hours when all workers are required to be  An behavior may be both legal and ethical.
present. Workers can arrange their own starting and  An behavior may be both illegal and unethical.
stopping hours before and after the core period.
1. Positive effects on employee productivity, job Ethics, Fair Treatment, and Justice
satisfaction, satisfaction with work schedule, and Distributive justice
employee absenteeism. The fairness and justice of a decision’s result.
2. Positive effect on absenteeism was much greater
than on productivity. Procedural justice
The fairness of the process by which the decision was
Compressed workweeks reached.
Increase productivity
1. Less disruption from shift changes Interactional (interpersonal) justice
2. Longer time-off-work periods The manner in which managers conduct their interpersonal
3. Reduced absenteeism dealings with employees.
Longer workdays; fewer workdays: What Shapes Ethical Behavior at Work?
1. Four-day workweeks, with four 10-hour days.  Individual factors
2. Two days on, two days off, three days on, then two  Organizational factors
days off, two days on, and so forth.  The boss’s influence
3. Three 12-hour shifts, and then off for the next four  Ethics policies and codes
days.  The organization’s culture
Other Flexible Work Arrangements Employees and Ethical Dilemmas
Job sharing Questions employees should ask when faced with ethical
Allowing two or more people to share a single full-time job. dilemmas:
Work sharing 1. Is the action legal?
A temporary reduction in work hours by a group of 2. Is it right?
employees during economic downturns as a way to prevent 3. Who will be affected?
layoffs. 4. Does it fit the company’s values?
5. How will it “feel” afterwards?
Telecommuting 6. How will it look in the newspaper?
Employees work at home using telephones and the Internet 7. Will it reflect poorly on the company?
to transmit letters, data, and completed work to the home
office.
CHAPTER 14 What Is Organizational Culture?

Organization culture
ETHICS,JUSTICE ,AND FAIR TREATMENT IN HR The characteristic values, traditions, and behaviors a
MANAGEMENT company’s employees share.
How is culture is revealed?
1. Ceremonial events
Ethics and Fair Treatment at Work 2. Written rules and spoken commands.
Ethics 3. Office layout
4. Organizational structure
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5. Dress codes
6. Cultural symbols and behaviors A system of progressive penalties
7. Figureheads The range and severity of the penalty is a function of the
offense and number of occurrences.
The Manager’s Role in Creating Culture
 Clarify expectations for values to be followed. An appeals process
 Use signs and symbols to signal the importance of The right of the employee to grieve the decision helps to
values. ensure that supervisors mete out discipline fairly and
 Provide physical (the firm’s rewards) support for equitably.
values.
 Use stories to illustrate values. Disciplining an Employee
 Organize rites and ceremonies reinforcing values  Does the facts support the charge of employee
wrongdoing?
HR’s Role in Fostering Ethics and Fair Treatment  Were the employee’s due process rights protected?
Why treat employees fairly?  Was the employee warned of disciplinary
 “They’re not employees, they’re people” consequences?
 Management guru Peter Drucker  Was a rule violated and was it “reasonably related”
 Avoidance of employee litigation to the efficient and safe operation of the work
 Enhanced employee commitment environment?
 Enhanced satisfaction with the organization, with  Was the matter fairly and adequately investigated
jobs, and with leaders before administering discipline?
 Increased organizational citizenship behaviors  Did the investigation produce substantial evidence
of misconduct?
HR Ethics Activities  Have rules, orders, or penalties been applied
Staffing and selection evenhandedly?
Fostering the perception of fairness in the processes of  Is the penalty reasonably related to the misconduct
recruitment and hiring of people. and to the employee’s past work history?
 Formal procedures  Did the employee have the right to counsel?
 Interpersonal treatment  Did anger, hearsay, or personal impression affect
 Providing explanation the decision?
Training Formal Disciplinary Appeals Processes

 How to recognize ethical dilemmas. FedEx’s guaranteed fair treatment multi-step program
 How to use ethical frameworks (such as codes of Step 1: Management review
conduct) to resolve problems. Step 2: Officer complaint
 How to use HR functions (such as interviews and Step 3: Executive appeals review
disciplinary practices) in ethical ways.
Discipline without Punishment (Nonpunitive Discipline)
Performance appraisal  Issue an oral reminder.
Appraisals that make it clear the company adheres to high  Should another incident arise within six weeks,
ethical standards by measuring and rewarding employees issue a formal written reminder, a copy of which is
who follow those standards. placed in the employee’s personnel file.
 Give a paid, one-day “decision-making leave.”
Reward and disciplinary systems  If no further incidents occur in the next year, the
The organization swiftly and harshly punishes unethical purge the one-day paid suspension from the
conduct. person’s file.
 If the behavior is repeated, the next step is
Building Two-Way Communications dismissal.
Perceptions of fair treatment depend on:
 Engagement—involving individuals in the decisions Employee Privacy
that affect them by asking for their input and Employee privacy violations upheld by courts:
allowing them to refute the merits of others’ ideas  Intrusion (locker room and bathroom surveillance)
and assumptions  Publication of private matters
 Explanation—ensuring that everyone involved and  Disclosure of medical records
affected understands why final decisions are made  Appropriation of an employee’s name or likeness
and the thinking that underlies the decisions
 Expectation clarity—making sure everyone knows Actions triggering privacy violations:
up front by what standards they will be judged and 1. Background checks
the penalties for failure. 2. Monitoring off-duty conduct and lifestyle
3. Drug testing
Employee Discipline and Privacy 4. Workplace searches
Basis for a fair and just discipline process : 5. Monitoring of workplace
Clear rules and regulations
1. Define workplace issues What do employers monitor about employees:
2. Inform employees 1. E-mail activity
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2. Internet use 2. Elimination of the employee’s job.

3. Telephone calls
Insubordination
Employers monitor employees to: 1. Direct disregard of the boss’s authority.
 Improve productivity. 2. Flat-out disobedience of, or refusal to obey, the
 Protect from computer viruses boss’s orders—particularly in front of others.
 Detect leaks of confidential information 3. Deliberate defiance of clearly stated company
 Guard against liability for illegal acts and policies, rules, regulations, and procedures.
harassment suits caused by employee misuse 4. Public criticism of the boss. Contradicting or arguing
with him or her is also negative and inappropriate.
Restrictions on Workplace Monitoring 5. Blatant disregard of reasonable instructions.
The Electronic Communications Privacy Act (ECPA) 6. Contemptuous display of disrespect and, portraying
 The “business purpose exception” permits these feelings while on the job.
employers to monitor communications if they can 7. Disregard for the chain of command, shown by
show a legitimate business reason for doing so. going around the immediate supervisor or manager
 The “consent exception” allows employers to with a complaint, suggestion, or political maneuver.
monitor communications if they have their 8. Participation in (or leadership of ) an effort to
employees’ consent to do so. undermine and remove the boss from power.
Common-law provides protections against invasion of
privacy. Foster a perception of fairness in the dismissal situation by:
Instituting a formal multi-step procedure (including
Managing Dismissals warning).
Dismissal  Having a supervising manager give full explanations
Involuntary termination of an employee’s employment with of why and how termination decisions were made.
the firm.  Establishing a neutral appeal process also fosters
fairness.
Terminate-at-will rule
Without a contract, the employee can resign for any reason, Avoiding Wrongful Discharge Suits
at will, and the employer can similarly dismiss the employee Bases for wrongful discharge suits:
for any reason (or no reason), at will.  Discharge does not comply with the law.
 Discharge does not comply with the contractual
Limitations on “terminate-at-will” arrangement stated or implied by the firm via its
 Violation of public employment application forms, employee manuals,
 Implied contract or other promises.
 Good faith
Avoiding wrongful discharge suits
Limitations on terminate-at-will  Set up employment policies and dispute resolution
Public policy exception procedures that make employees feel treated fairly.
Discharge is wrongful when it was against an explicit, well-  Do the preparatory work that helps to avoid such
established public policy: employee fired or refusing to suits.
break the law.
Typical Severance Pay
Implied contract exception  Nonexempt employee—one week of pay for each
Employer statements about future employment create a year with a minimum of four weeks and maximum
contractual obligation for the employer to continue to of two months.
employ the employee.  Exempt employee to $90,000—two weeks for each
year with a minimum of two months and a
Covenant of good faith exception maximum of six months.
Suggests that employers should not fire employees without  Exempt employee over $90,000 to director or VP
good cause. level—two to three weeks for each year with a
minimum of three months and maximum of nine
Grounds for Dismissal months.
Unsatisfactory performance  Director or VP to company officer—three weeks for
Persistent failure to perform assigned duties or to meet each year with a minimum of four months and
prescribed standards on the job. maximum of a year.
Misconduct in the workplace  Officer—usually covered by an employment
Deliberate and willful violation of the employer’s rules: contract or Change of Control provisions and can
stealing, rowdy behavior, and insubordination. be all the way from one year of pay to three or four
years, with other perks that may be continued.
Lack of qualifications for the job
An employee’s inability to do the assigned work although he Steps in Avoiding Wrongful Discharge Suits
or she is diligent. 1. Have applicants sign the employment application
and make sure it contains a clearly worded
Changed requirements or elimination of the job. statement that employment is for no fixed term and
1. An employee’s inability to do the work assigned, that the employer can terminate at any time.
after the nature of the job has changed.
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2. Review your employee manual to look for and  Be available at a time after the interview in case
delete statements that could prejudice your questions or problems arise.
defense in a wrongful discharge case.  Have phone numbers ready for medical or security
3. Have clear written rules listing infractions that may emergencies.
require discipline and discharge, and then make
sure to follow the rules. Get to the point.
4. If a rule is broken, get the worker’s side of the story  Do not beat around the bush by talking about the
in front of witnesses, and preferably get it signed. weather or making other small talk.
Then make sure to check out the story, getting both  As soon as the employee enters, give the person a
sides of the issue. moment to get comfortable and then inform him or
5. Be sure to appraise employees at least annually. If her of your decision.
an employee shows evidence of incompetence, give
that person a warning and provide an opportunity Describe the situation.
to improve. All evaluations should be in writing and  Briefly explain why the person is being let go.
signed by the employee.  Remember to describe the situation rather than
6. Keep careful confidential records of all actions such attack the employee personally
as employee appraisals, warnings or notices,  Emphasize that the decision is final and irrevocable.
memos outlining how improvement should be
accomplished, and so on. Listen.
Continue the interview until the person appears to be
A final 10-step checklist would include: talking freely and reasonably calmly about the reasons for
1. Is employee covered by any type of written his or her termination and the support package (including
agreement, including a collective bargaining severance pay).
agreement?
2. Have any representations been made to form a Review all elements of the severance package.
contract? Describe severance payments, benefits, access to office
3. Is a defamation claim likely? support people, and the way references will be handled.
4. Is there a possible discrimination allegation? However, under no conditions should any promises or
5. Is there any workers’ compensation involvement? benefits beyond those already in the support package be
6. Have reasonable rules and regulations been implied.
communicated and enforced?
7. Has employee been given an opportunity to explain Identify the next step.
any rule violations or to correct poor performance?  The terminated employee may be disoriented and
8. Have all monies been paid within 24 hours after unsure what to do next.
separation?  Explain where the employee should go next, upon
9. Has employee been advised of his or her rights leaving the interview.
under COBRA?
10. Has employee been advised of what the employer Termination Assistance
will tell a prospective employer in response to a Outplacement Counseling
reference inquiry? A systematic process by which a terminated employee is
Personal Supervisory Liability trained and counseled in the techniques of conducting a
self-appraisal and securing a new job appropriate to his or
Avoiding personal supervisory liability: her needs and talents.
1. Be familiar with federal, state, and local statutes
and know how to uphold their requirements.  Outplacement does not imply that the employer
2. Follow company policies and procedures takes responsibility for placing the person in a new
3. Be consistent application of the rule or regulation is job.
important.  Outplacement counseling is part of the terminated
4. Don’t administer discipline in a manner that adds to employee’s support or severance package and is
the emotional hardship on the employee. often done by specialized outside firms.
5. Do not act in anger.
6. Utilize the HR department for advice regarding how Outplacement firms
to handle difficult disciplinary matters. Can help the employer devise its dismissal plan regarding:
 How to break the news to dismissed employees.
The Termination Interview  Deal with dismissed employees’ emotional
Plan the interview carefully. reactions.
 Make sure the employee keeps the appointment  Institute the appropriate severance pay and equal
time. opportunity employment plans.
 Never inform an employee over the phone. Interviewing Departing Employees
 Allow 10 minutes as sufficient time for the Exit Interview
interview. Its aim is to elicit information about the job or related
 Use a neutral site, never your own office. matters that might give the employer a better insight into
what is right—or wrong—about the company.
 Have employee agreements, the human resource 1. The assumption is that because the employee is
file, and a release announcement (internal and leaving, he or she will be candid.
external) prepared in advance. 2. The quality of information gained from exit
interviews is questionable.
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 Taking voluntary time off to reduce the employer’s

Exit Interview Questions payroll.
 How were you recruited?  Taking a “rings of defense approach” by hiring
 Why did you join the company? temporary workers that can be let go early.
 Was the job presented correctly and honestly?  Offering buyout packages to find enough volunteers
 Were your expectations met? to avoid dismissing people.
 What was the workplace environment like?
 What was your supervisor’s management style like? Adjusting to Downsizings and Mergers
 What did you like most/least about the company? Guideline for implementing a reduction in force:
 Were there any special problem areas?  Identify objectives and constraints.
 Why did you decide to leave, and how was the  Form a downsizing team.
departure handled?  Address legal issues.
 Plan post-reduction actions.
The Plant Closing Law  Address security concerns.
Worker Adjustment and Retraining Notification Act (1989)
 Requires employers of 100 or more employees to Guidelines for treatment of departing employees during a
give 60 days’ notice before closing a facility or merger:
starting a layoff of 50 people or more.  Avoid the appearance of power and domination.
 The law does not prevent the employer from closing  Avoid win–lose behavior.
down, nor does it require saving jobs.  Remain businesslike and professional.
 The law is intended to give employees time to seek  Maintain a positive feeling about the acquired
other work or retraining by giving them advance company.
notice of the shutdown.  Remember that how the organization treats the
acquired group will affect those who remain.
Worker Adjustment and Retraining Notification Act (1989)
Employment losses covered by the law:
 Terminations other than discharges for cause, CHAPTER 15
voluntary departures, or retirement LABOR RELATIONS AND COLLECTIVE BARGAINING
 Layoffs exceeding six months
 Reductions of more than 50% in employee’s work
hours during each month of any six-month period.
Penalty for failing to give notice The Labor Movement
One day’s pay and benefits to each employee for each day’s 1790–Skilled craftsmen organize into trade unions.
notice that should have been given, up to 60 days. 1869–The Knights of Labor seek social reform.
1886–American Federation of Labor pursues bread-
Layoffs and-butter and improved working conditions.
Layoff are not terminations. 1935–National Labor Relations Act fosters organizing and
Temporary layoffs occur when: the rapid growth of labor unions.
 There is no work available for employees. 1947–Taft-Hartley Act regulates union activities.
 Management expects the no-work situation to be 1955–AFL and CIO merge.
temporary and probably short term. 1970s–Union membership peaks and begins to steadily
decline.
 Management intends to recall the employees when
work is again available. Why Do Workers Organize?
Bumping/Layoff Procedures Solidarity
 Seniority is usually the ultimate determinant of who  To get their fair share of the pie.
will work.  Improved wages, hours, working conditions, and
benefits
 Seniority can give way to merit or ability, but usually  To protect themselves from management whims.
only when no senior employee is qualified for a
particular job.
Conditions favoring employee organization
 Seniority is usually based on the date the employee  Low morale
joined the organization, not the date he or she took
a particular job.  Fear of job loss
 Companywide seniority allows an employee in one  Arbitrary management actions
job to bump or displace an employee in another
job, provided the more senior person can do the job
without further training.
Union Security
Alternatives to Layoffs Closed shop
 Voluntarily reducing employees’ pay to keep The company can hire only union members. Congress
everyone working. outlawed this in 1947, but it still exists in some industries
(such as printing).
 Concentrating employees’ vacations during slow
periods. Union shop
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The company can hire nonunion people, but they must join  To refuse to bargain collectively with their
the union after a prescribed period of time and pay dues. (If employees’ duly chosen representatives.
not, they can be fired.)
Unions and the Law: Period of Modified Encouragement
Agency shop and Regulation
Employees who do not belong to the union still must pay Taft-Hartley (Labor Management Relations) Act of 1947
union dues on the assumption that the union’s efforts  Prohibited unfair union labor practices.
benefit all the workers.  Enumerated the rights of employees as union
members
Open shop  Enumerated the rights of employers
It is up to the workers whether or not they join the union—  Allows the president of the United States to seek an
those who do not, do not pay dues. injunction that temporarily will bar a national
emergency strike for 60 days.
Maintenance of membership arrangement
Employees do not have to belong to the union. However, Unfair Union Labor Practices
union members employed by the firm must maintain  To restrain or coerce employees from exercising
membership in the union for the contract period. their guaranteed bargaining rights.
 To cause an employer to discriminate against
Right-to-work laws employees in order to encourage or discourage
12 Section 14(b) of the Taft-Hartley Act permits states to their membership in a union.
pass statutes or constitutional provisions banning the  To refuse to bargain in good faith with the employer
requirement of union membership as a condition of about wages, hours, and other employment
employment and to forbid the negotiation of compulsory conditions. Certain strikes and boycotts are also
union membership provisions.Twenty-one “right to work unfair practices.
states,” from Florida to Mississippi to Wyoming, ban all  To engage in “featherbedding” (requiring an
forms of union security. employer to pay an employee for services not
The AFL-CIO performed).
The American Federation of Labor and Congress of Taft-Hartley and Employers
Industrial Organizations (AFL-CIO) Rights
1. A voluntary federation of about 100 national and
international labor unions in the United States.  To express their views concerning union
organization.
Structure of the AFL-CIO  To set forth the union’s record concerning violence
1. Local unions and corruption, if appropriate.
2. National unions
3. National federation Restraints
 Must avoid threats, promises, coercion, and direct
Unions and the Law: Period of Strong Encouragement interference with workers who are trying to reach
The Norris-LaGuardia Act of 1932 an organizing decision.
 Guaranteed to each employee the right to bargain  Cannot meet with employees on company time
collectively “free from interference, restraint, or within 24 hours of an election.
coercion.  Cannot suggest to employees that they vote against
 Declared yellow dog contracts unenforceable. the union (in private, while they are out of their
 Limited the courts’ abilities to issue injunctions work area).
(stop orders) for activities such as peaceful
picketing and payment of strike benefits. Unions and the Law: Period of Regulation of Union Internal
Affairs
National Labor Relations (or Wagner) Act of 1935 : Landrum-Griffin Act (the Labor Management Reporting and
 Banned certain unfair labor practices of employers Disclosure Act) of 1959
Contains a bill of rights for union members.
 Provided for secret-ballot elections and majority
rule for determining whether a firm’s employees  Nomination of candidates for union office.
would unionize.  Protects a member’s right to sue his or her union.
 Created the National Labor Relations Board (NLRB)  Ensures that no member can be fined or suspended
to enforce the act’s provisions. without due process.
Laid out rules regarding union elections.
Unfair Employer Labor Practices  Regulated union election cycles and who can serve
To “interface with, restrain, or coerce employees” in as a union officers.
exercising their legally sanctioned right of self-organization.  Expanded list of corrupt union and employer
 To dominate or interfere with either the formation practices.
or the administration of labor unions.
 To discriminating in any way against employees for The Union Drive and Election
their legal union activities. Step 1. Initial contact
 To discharge or discriminate against employees who  The union determines employees’ interest in
file unfair practice charges against the company. organizing, and sets up an organizing committee.
 Labor Relations Consultants
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 Union Salting  Ignoring bargaining items

Step 2. Obtaining authorization cards Preparing for Negotiations
30% of eligible employees in an appropriate bargaining unit Sources of negotiating information
must sign cards authorizing the union to petition the NLRB  Local and industry pay and benefits comparisons
for an election.  Distribution demographics of the workforce
 Benefit costs, overall earnings levels, and the
The Organizing Drive amount and cost of overtime
Authorization cards  Cost of the current labor contract and the increased
 Let the union seek a representation election. cost—total, per employee, and per hour—of the
 Designate the union as a bargaining representative union’s demands.
in all employment matters.  Grievances and feedback from supervisors
 State that the employee has applied for  Counteroffers and arguments.
membership in the union and will be subject to  Attitude surveys to test employee reactions to
union rules and bylaws. sections of the contract that management may feel
require change
Employer responses to organizing  informal conferences with local union leaders to
 Can attack the union on ethical and moral grounds discuss the operational effectiveness of the contract
and cite the cost of union membership. and to send up trial balloons on management ideas
 Cannot make promises of benefits. for change.
 Cannot make unilateral changes in terms and
conditions of employment that were not planned to Classes of Bargaining Items
be implemented prior to the onset of union Voluntary (permissible) bargaining items
organizing activity. Items in collective bargaining over which bargaining is
 Can inform employees of their right to revoke their neither illegal nor mandatory—neither party can be
authorization cards. compelled against its wishes to negotiate over those items.
Rules Regarding Literature and Solicitation Illegal bargaining items
 Nonemployees can be barred from soliciting Items in collective bargaining that are forbidden by law; for
employees during their work time. example, a clause agreeing to hire “union members
 Employees can be stopped from soliciting other exclusively” would be illegal in a right-to-work state.
employees if one or both employees are on paid-
duty time and not on a break. Mandatory bargaining items
 Employers can bar nonemployees from the Items in collective bargaining that a party must bargain over
building’s interiors and work areas as a right of if they are introduced by the other party—for example, pay.
private property owners. Bargaining Items
 On- or off-duty employees can be denied access to
interior or exterior areas for reasons of production, Bargaining Stages
safety, or discipline. Presentation of initial demands
Both parties are usually quite far apart on some issues.
The Collective Bargaining Process
What Is collective bargaining? Reduction of demands
Both management and labor are required by law to Each side trades off some of its demands to gain others.
negotiate wage, hours, and terms and conditions of
employment “in good faith.” Subcommittee studies
The parties form joint subcommittees to try to work out
What Is good faith bargaining? reasonable alternatives.
2. Both parties communicate and negotiate.
3. They match proposals with counterproposals in a An informal settlement
reasonable effort to arrive at an agreement. Each group goes back to its sponsor. Union seeks to have
4. It does not mean that one party compels another to members vote to ratify the agreement.
agree to a proposal or make any specific
concessions. Signing the formal agreement
Violations of Good Faith Bargaining Bargaining Hints

 Surface bargaining  Be sure to set clear objectives for every bargaining
 Inadequate concessions item, and be sure you understand the reason for
 Inadequate proposals and demands each.
 Dilatory tactics  Do not hurry.
 Imposing conditions.  When in doubt, caucus with your associates.
 Making unilateral changes in conditions.  Be well prepared with firm data supporting your
 Bypassing the representative. position.
 Committing unfair labor practices during  Always strive to keep some flexibility in your
negotiations. position.
 Withholding information  Don’t concern yourself just with what the other
party says and does; find out why.
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 Respect the importance of face saving for the other

party. Sympathy strike
 Be alert to the real intentions of the other party— Occurs when one union strikes in support of the strike of
not only for goals, but also for priorities. another union.
 Be a good listener.
 Bargaining Hints (cont’d) Main Sections of a Contract Agreement
 Build a reputation for being fair but firm.  Management rights
 Learn to control your emotions and use them as a  Union security and automatic payroll dues
tool. deduction
 As you make each bargaining move, be sure you  Grievance procedures
know its relationship to all other moves.  Arbitration of grievances
 Measure each move against your objectives.  Disciplinary procedures
 Pay close attention to the wording of every clause  Compensation rates
negotiated; they are often a source of grievances.  Hours of work and overtime
 Remember that collective bargaining is a  Benefits: vacations, holidays, insurance, pensions
compromise process. There is no such thing as  Health and safety provisions
having all the pie.  Employee security seniority provisions, and
 Try to understand people and their personalities.  Contract expiration date.
 Consider the impact of present negotiations on
those in future years. Grievance
Any factor involving wages, hours, or conditions of
Impasses, Mediation, and Strikes employment that is used as a complaint against the
An impasse employer.
 Usually occurs because one party is demanding
more than the other will offer. Sources of grievances
 Sometimes an impasse can be resolved through a  Absenteeism
third party—a disinterested person such as a  Insubordination
mediator or arbitrator.  Overtime
 If the impasse is not resolved in this way, the union  Plant rules
may call a work stoppage, or strike, to put pressure
on management. Grievance Procedure
 Grievant and shop steward meet with supervisor. If
Third-Party Involvement not resolved,
Mediation  Employee files formal grievance
A neutral third party (mediator) tries to assist the principals  Grievant and shop steward meet with supervisor’s
in reaching agreement by holding meetings with each party boss. If not resolved,
to find common ground for further bargaining.The mediator  Meeting with higher-level managers.
is a go-between and has no authority to dictate terms or  If not resolved, matter goes to arbitration.
make concessions.The mediator communicates assessments
of the likelihood of a strike, the possible settlement Handling Grievances: Do
packages available, and the like.  Investigate and handle each case as though it may
eventually result in arbitration.
Fact finder  Talk with the employee about his or her grievance;
A neutral party who studies the issues in a dispute and give the person a full hearing.
makes a public recommendation for a reasonable  Require the union to identify specific contractual
settlement. provisions allegedly violated.
Arbitration  Comply with the contractual time limits for handling
An arbitrator often has the power to determine and dictate the grievance.
the settlement terms. Arbitration can guarantee a solution  Visit the work area of the grievance.
to an impasse.  Determine whether there were any witnesses.
 Interest arbitration  Examine the grievant’s personnel record.
 Rights arbitration  Fully examine prior grievance records.
 Treat the union representative as your equal.
Strikes  Hold your grievance discussions privately.
Economic strike  Fully inform your own supervisor of grievance
Results from a failure to agree on the terms of a contract. matters.
Unfair labor practice strikes Handling Grievances: Don’t

Called to protest illegal conduct by the employer. 1. Discuss the case with the union steward alone—the
grievant should be there.
2. Make arrangements with individual employees that
Wildcat strike are inconsistent with the labor agreement.
An unauthorized strike occurring during the term of a 3. Hold back the remedy if the company is wrong.
contract. 4. Admit to the binding effect of a past practice.
5. Relinquish to the union your rights as a manager.
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6. Settle grievances based on what is “fair.” Instead, and healthful working conditions and to preserve our
stick to the labor agreement. human resources.”
7. Bargain over items not covered by the contract.
8. Treat as subject to arbitration claims demanding the Occupational Safety and Health Administration (OSHA)
discipline or discharge of managers. The agency created within the Department of Labor to set
9. Give long written grievance answers. safety and health standards for almost all workers in the
10. Trade a grievance settlement for a grievance United States.
withdrawal.
11. Deny grievances because “your hands have been OSHA Standards and Record Keeping
tied by management.” OSHA standards
12. Agree to informal amendments in the contract. General industry standards, maritime standards,
construction standards, other regulations and procedures,
The Union Movement Today and Tomorrow and a field operations manual.
Declining membership
 Laws have taken over much of the union’s Record keeping
traditional role as the workers’ protector.  Employers with 11 or more employees must
 Automation, globalization and technology have maintain records of, and report, occupational
reduced jobs in unionized manufacturing sectors. injuries and occupational illnesses.
 Unions have fail to organize new plants.  Occupational illness
 Unions have been more successful in organizing  Any abnormal condition or disorder caused by
workers in the public sector. exposure to environmental factors associated with
 Management has become better at resisting union employment.
organizing efforts
OSHA Standards Examples
Public Employees and Unions
7 million public-sector union members represent 44% of
total U.S. union membership.The public sector is union
movement’s biggest potential growth area.Civil Service
Reform Act of 1978 (known as the Federal Labor Relations
Act)
Employee Participation Programs and Unions
Permissibility under NLRA by the courts of participation
programs is determined by:
 Dominance: the degree to which management
maintains control of the program’s functions.
 Role of the program: if the activities of the program OSHA Inspection Priorities
are concerned with union-type matters related to  Inspections of imminent danger situations
wages, hours, and working conditions.  Inspections of catastrophes, fatalities, and accidents
that have already occurred
To avoid having participation programs viewed as sham  Inspections related to valid employee complaints of
unions: alleged violation standards.
 Involve employees in the formation of these  Periodic, special-emphasis inspections aimed at
programs to the greatest extent practical. high-hazard industries, occupations, or substances.
 Emphasize that the committees exist only to  Random inspections and reinspections.
address issues such as quality and productivity.
 Don’t try to establish committees when union Conduct of OSHA Inspections
organizing activities are beginning in your facility.  OSHA officer arrives at the workplace.
 Use volunteers and rotate membership to ensure  He or she displays official credentials and asks to
broad employee participation. meet an employer representative.
 Minimize management participation in the  The officer explains the visit’s purpose, the scope of
committees’ day-to-day activities to avoid the inspection, and the standards that apply.
interference or the perception of domination.  An authorized employee representative
accompanies the officer during the inspection.
 The inspector can also stop and question workers
CHAPTER 16 (in private, if necessary) about safety and health
EMPLOYEE SAFETY AND HEALTH conditions.
 The inspector holds a closing conference with the
employer’s representative to discuss apparent
violations which may result in a citation and
penalty.
Occupational Safety Law  At this point, the employer can produce records to
Occupational Safety and Health Act show compliance efforts.
The law passed by Congress in 1970 “to assure so far as
possible every working man and woman in the nation safe
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Citations and Penalties  To comply with all applicable OSHA standards

Citation  To follow all employer safety and health rules and
A summons informing employers and employees of the regulations.
regulations and standards that have been violated in the  To report hazardous conditions to the supervisor.
workplace.
Employee rights
Penalties The right to demand safety and health on the job without
Are calculated based on the gravity of the violation and fear of punishment.
usually take into consideration factors like the size of the
business, the firm’s compliance history, and the employer’s OSHA cannot cite employees for violations of their
good faith. responsibilities.
INSPECTION GUIDELINES Dealing with Employee Resistance
Initial Contact The employer is liable for any penalties that result from
 Refer the inspector to the company’s OSHA employees’ noncompliance with OSHA standards.
coordinator.
 Check the inspector’s credentials. Ways to gain compliance
 Ask the inspector why he or she is inspecting the 1. Bargain with the union for the right to discharge or
workplace: Complaint? Regular scheduled visit? discipline an employee who disobeys an OSHA
Fatality or accident follow-up? Imminent danger? standard.
 If the inspection stems from a complaint, you are 2. Establish a formal employer-employee arbitration
entitled to know whether the person is a current process for resolving OSHA-related disputes.
employee, though not the person’s name. 3. Use positive reinforcement and training for gaining
 Notify your counsel, who should review all requests employee compliance.
for documents and information, as well as
documents and information you provide. 10 Ways To Get into Trouble with OSHA
1. Ignore or retaliate against employees who raise
Opening Conference safety issues.
 Establish the focus and scope of the planned 2. Antagonize or lie to OSHA during an inspection.
inspection. 3. Keep inaccurate OSHA logs and have disorganized
 Discuss the procedures for protecting trade secret safety files.
areas. 4. Do not correct hazards OSHA has cited you for and
 Show the inspector you have safety programs in ignore commonly cited hazards.
place. He or she may not go to the work floor if 5. Fail to control the flow of information during and
paperwork is complete and up to date. after an inspection.
6. Do not conduct a safety audit, or identify a serious
Walk-around inspection hazard and do nothing about it.
 Accompany the inspector and take detailed notes. 7. Do not use appropriate engineering controls.
 If the inspector takes a photo or video, you should, 8. Do not take a systemic approach toward safety.
too. 9. Do not enforce safety rules.
 Ask for duplicates of all physical samples and copies 10. Ignore industrial hygiene issues.
of all test results.
 Be helpful and cooperative, but don’t volunteer What Causes Accidents?
information. 1. Unsafe conditions
2. Improperly guarded equipment
 To the extent possible, immediately correct any 3. Defective equipment
violation the inspector identifies. 4. Hazardous procedures in, on, or around machines
or equipment
Responsibilities and Rights of Employers 5. Unsafe storage—congestion, overloading
Employer responsibilities 6. Improper illumination—glare, insufficient light
 To meet the duty to provide “a workplace free from 7. Improper ventilation—insufficient air change,
recognized hazards.” impure air source
 To be familiar with mandatory OSHA standards. 8. Unsafe acts
 To examine workplace conditions to make sure they
conform to applicable standards. How to Prevent Accidents
9. Remedy unsafe conditions
Employer rights 10. Emphasize safety
 To seek advice and off-site consultation from 11. Select safety-minded employees
OSHA. 12. Provide safety training
 To request and receive proper identification of the 13. Use posters, incentive programs, and positive
OSHA compliance officer before inspection. reinforcement to motivate employees
 To be advised by the compliance officer of the 14. Use behavior-based safety
reason for an inspection. 15. Use employee participation
16. Conduct safety and health audits and inspections
Responsibilities and Rights of Employees
Employee responsibilities
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2. Don’t bite off more than you can chew.

Controlling Workers’ Compensation Costs 3. Build an effective and supportive relationship with
Before the accident your boss.
Communicate written safety and substance abuse policies 4. Negotiate with your boss for realistic deadlines on
to workers and then strictly enforce those policies. projects.
5. Learn as much as you can about upcoming events
After the accident and get as much lead time as you can to prepare for
1. Be proactive in providing first aid, and make sure them.
the worker gets quick medical attention. 6. Find time every day for detachment and relaxation.
2. Make it clear that you are interested in the injured 7. Take a walk to keep your body refreshed and alert.
worker and his or her fears and questions. 8. Find ways to reduce unnecessary noise.
3. Document the accident; file required accident 9. Reduce trivia in your job; delegate routine work.
reports. 10. Limit interruptions.
4. Encourage a speedy return to work. 11. Don’t put off dealing with distasteful problems.
12. Make a “worry list” that includes solutions for each
Workplace Health Hazards: Remedies problem.
The Basic Industrial Hygiene Program
1. Recognition: identification of a possible hazard Reducing Job Stress: Organizational
2. Evaluation: assessing the severity of the hazard 1. Provide supportive supervisors
3. Control: elimination or reduction of the hazard 2. Ensure fair treatment for all employees
3. Reduce personal conflicts on the job.
Workplace hazards 4. Have open communication between management
1. Asbestos Exposure and employees.
2. Infectious Diseases 5. Support employees’ efforts, for instance, by
3. Alcoholism and Substance Abuse regularly asking how they are doing.
6. Ensure effective job–person fit, since a mistake can
Workplace Exposure Hazards trigger stress.
1. Chemicals and other hazardous materials. 7. Give employees more control over their jobs.
2. Excessive noise and vibrations. 8. Provide employee assistance programs including
3. Temperature extremes. professional counseling.
4. Biohazards including those that are normally
occurring (such as mold) and manmade (such as Burnout
anthrax). Burnout
5. Ergonomic hazards (such as poorly designed The total depletion of physical and mental resources caused
equipment that forces workers to do their jobs by excessive striving to reach an unrealistic work-related
while contorted in unnatural positions). goal.
6. Slippery floors and blocked passageways.
Recovering from burnout:
Dealing with Workplace Drug Abuse  Break the usual patterns to achieve a more well-
If an employee appears to be under the influence of drugs rounded life.
or alcohol:  Get away from it all periodically to think alone.
1. Ask how the employee feels and look for signs of  Reassess goals in terms of their intrinsic worth and
impairment such as slurred speech. attainability.
2. Send an employee judged unfit for duty home.  Think about work: could the job be done without
3. Make a written record of your observations and being so intense.
follow up each incident.
4. Inform workers of the number of warnings the Other Workplace Safety and Health Issues
company will tolerate before requiring termination.  Computer-Related Health Problems
5. Refer troubled employees to the company’s  AIDS and the Workplace
employee assistance program.  Workplace Smoking
Workplace Substance Abuse and the Law Violence at Work
The Drug-Free Workplace Act Steps to reduce workplace violence:
Requires employers with federal government contracts or  Institute heightened security measures
grants to ensure a drug-free workplace by taking (and  Improve employee screening
certifying that they have taken) a number of steps.
 Provide workplace violence training
Types of drug tests  Provide organizational justice
 Pre-employment tests  Pay enhanced attention to employee
 Random tests retention/dismissal
 Post-accident  Take care when dismissing violent employees
 Reasonable suspicion  Promptly dealing with angry employees
 Return-to-duty testing  Understand the legal constraints on reducing
workplace violence
Reducing Job Stress: Personal
1. Build rewarding, pleasant, cooperative relationships Occupational Security, Safety, and Health in a Post-9/11
World
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Basic prerequisites for a security plan 4. Make sure all investigations and searches are
1. Company philosophy and policy on crime evenhanded and nondiscriminatory.
2. Investigations of job applicants
3. Security awareness training CHAPTER 17
4. Crisis management MANAGING GLOBAL HUMAN RESOURCES
Setting up a basic security program
 Analyzing the current level of risk
 Installing mechanical, natural, and organizational
security systems The HR Challenges of International Business
Deployment
Basic Sources of Facility Security Easily getting the right skills to where we need them,
Natural security regardless of geographic location.
Taking advantage of the facility’s natural or architectural
features in order to minimize security problems. Knowledge and innovation dissemination
Spreading state-of-the-art knowledge and practices
Mechanical security throughout the organization regardless of where they
The utilization of security systems such as locks, intrusion originate.
alarms, access control systems, and surveillance systems.
Identifying and developing talent on a global basis
Organizational security Identifying can function effectively in a global organization
Using good management to improve security. and developing his or her abilities.
Evacuation Plans Global Staffing Issues

Evacuation contingency plans should contain: 1. Selecting candidates for overseas assignment
 Methods for early detection of a problem. 2. Assignment terms and documentation
 Methods for communicating the emergency 3. Relocation processing and vendor management
externally. 4. Immigration processing
5. Cultural and language orientation and training
 Communications plans for initiating an evacuation. 6. Compensation administration and payroll
 Communications plans for those the employer processing
wants to evacuate that provide specific information 7. Tax administration
about the emergency, and let them know what 8. career planning and development
action they should take next. 9. Handling of spouse and dependent matters
Security for Other Sources of Property Loss Intercountry Differences Affecting HRM
Conducting a security audit involves: 1. Cultural Factors
 Identifying all major assets, including intellectual 2. Economic Systems
property. 3. Legal and Industrial Relations Factors
 Tracing the work processes that control each asset. 4. The European Union
 Identifying where opportunities for crime exist, and
identify areas where protective measures are Global Differences and Similaritiesin HR Practices
needed.  Personnel Selection Procedure
 Testing security controls periodically to ensure  The Purpose of the Performance Appraisal
sufficient protection.  Training and Development Practices
 The Use of Pay Incentives
Company Security and Employee Privacy
The Federal Wire Act A Global HR System
1. Prohibits the interception oral, wire, or electronic Making the global HR system more acceptable
communication. 1. Remember that global systems are more accepted
2. The act does permit employees to consent to the in truly global organizations.
monitoring of business communications. 2. Investigate pressures to differentiate and determine
3. Monitoring on company phones invades employees’ their legitimacy.
privacy once it becomes apparent that the 3. Try to work within the context of a strong corporate
conversation is personal. culture.
Investigating a Potential Security Breach Developing a more effective global HR system
To investigate employees for potential security breaches:  Form global HR networks.
1. Distribute a policy that says the firm reserves the
right to inspect and search employees, their  Remember that it’s more important to standardize
personal property, and all company property. ends and competencies than specific methods.
2. Train investigators to focus on the facts and avoid
making accusations. Implementing the global HR system
3. Make sure investigators know that employees can  Remember, “You can’t communicate enough.”
request that an employee representative be  Dedicate adequate resources for the global HR
present during the interview. effort.
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Staffing the Global Organization The problems to expect in the new job as well as about the
International staffing: Home or local? cultural benefits, problems, and idiosyncrasies of the
 Expatriates (expats): Noncitizens of the countries in country.
which they are working.
 Home-country nationals: Citizens of the country in Five Factors Important in International Assignee Success,
which the multinational company has its and Their Components
headquarters. Orienting and Training for International Assignment
 Third-country nationals: Citizens of a country other There is little or no systematic selection and training for
than the parent or the host country. assignments overseas.
Offshoring Training is needed on:

Having local employees abroad do jobs that the firm’s 1. The impact of cultural differences on business
domestic employees previously did in-house. outcomes.
2. How attitudes (both negative and positive) are
Issues in offshoring formed and how they influence behavior.
1. Having an effective supervisory and management 3. Factual knowledge about the target country.
structure in place to manage the workers. 4. Language and adjustment and adaptation skills.
2. Screening and required training for the employees
receive the that they require. Trends in Expatriate Training
3. Ensuring that compensation policies and working 1. Rotating assignments that permit overseas
conditions are satisfactory. managers to grow professionally.
2. Management development centers around the
Values and International Staffing Policy world where executives hone their skills.
Ethnocentric 3. Classroom programs provide overseas executives
The notion that home-country attitudes, management style, with educational opportunities similar to stateside
knowledge, evaluation criteria, and managers are superior programs.
to anything the host country has to offer. 4. Continuing, in-country cross-cultural training
5. Use of returning managers as resources to cultivate
Polycentric the “global mind-sets” of their home-office staff.
A conscious belief that only the host-country managers can 6. Use of software and the Internet for cross-cultural
ever really understand the culture and behavior of the host- training.
country market.
Compensating Expatriates
Geocentric The “Balance Sheet Approach”
The belief that the firm’s whole management staff must be  Home-country groups of expenses—income taxes,
scoured on a global basis, on the assumption that the best housing, goods and services, and discretionary
manager of a specific position anywhere may be in any of expenses—are the focus of attention.
the countries in which the firm operates.  The employer estimates what each of these four
expenses is in the expatriate’s home country, and
Why Expatriate Assignments Fail what each will be in the host country.
1. Personality  The employer then pays any differences such as
2. Personal intentions additional income taxes or housing expenses.
3. Family pressures
4. Inability of the spouse to adjust The Balance Sheet Approach
5. Inability to cope with larger overseas responsibility. (Assumes Base Salary of $80,000)
6. Lack of cultural skills
Helping Expatriate Assignment Succeed
1. Providing realistic previews of what to expect
2. Careful screening
3. Improved orientation
4. Cultural and language training
5. Improved benefits packages
Selecting Expatriate Managers
Adaptability screening
1. Assessing the assignee’s (and spouse’s) probable
success in handling the foreign transfer.
2. Overseas Assignment Inventory
3. A test that identifies the characteristics and Incentives
attitudes international assignment candidates Foreign service premiums
should have. Financial payments over and above regular base pay, and
typically range between 10% and 30% of base pay.
Realistic previews
Hardship allowances
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Payments to compensate expatriates for exceptionally hard  Participants then rate each of these functions to
living and working conditions at certain foreign locations. answer the question, “How important are each of
these functions?”
 Next, they answer the question, “How well are each
of the functions performed?”
Mobility premiums  Next, compare (2) and (3) to focus on “What needs
Lump-sum payments to reward employees for moving from improvement?”
one assignment to another.  Then, top management needs to answer the
question, “Overall, how effectively does the HR
Appraising Expatriate Managers function allocate its resources?
Challenges in appraising oversea managers
1. Determining who should appraise the manager.
2. Deciding on which factors to base the appraisal.
Improving the expatriate appraisal process UTS SEMESTER GASAL 2012/2013
 Stipulate the assignment’s difficulty level, and adapt
the performance criteria to the situation. MANAJEMEN SDM
 Weigh the evaluation more toward the on-site
manager’s appraisal than toward the home-site
manager’s. 150 menit (Closed Book)
 If the home-office manager does the actual written
appraisal, use a former expatriate from the same
overseas location for advice. Soal 1
1. Menetapkan tujuan yang efektif dan dapat memotivasi
Differences in International Labor Relations bawahan merupakan keterampilan yang penting untuk
 Centralization dimiliki oleh seorang manajer. Jelaskan bagaimana cara
 Union structure menetapkan tujuan yang dapat memotivasi bawahan
 Employer organization tersebut!
 Union recognition 2. Ketika bersaing dengan perusahaan lain, setiap
 Union security perusahaan dapat memilih strategi bersaing (competitive
 Content and scope of bargaining strategy) yang cocok untuk mereka terapkan, Strategi ini
 Grievance handling dapat membantu perusahaan dalam meraih competitive
 Strikes advantage-nya. Jelaskan bagaimana manajemen sumber
 Worker participation daya manusia dapat membantu perusahaan dalam meraih
competitive advantage-nya tersebut!
Terrorism, Safety, and Global HR
Taking protective measures Soal 2
 Crisis management teams 1. Mengapa organisasi/perusahaan harus melakukan
analisis jabatan, dan apa manfaatnya?
Kidnapping and ransom (K&R) insurance 2. Susunlah suatu job description untuk posisi Ketua Badan
Crisis situations Eksekutif Mahasiswa yang juga dilengkapi dengan hasil
analisis pekerjaan berdasarkan kompetensi. Jelaskan!
 Kidnapping: the employee is a hostage until the
employer pays a ransom. Soal 3
 Extortion: threatening bodily harm. Sebutkan metode rekrutmen apa (boleh lebih dari satu)
 Detention: holding an employee without any yang menurut Anda cocok/tepat digunakan untuk jabatan
ransom demand. berikut ini. Jelaskanlah argument Anda!
 Threats to property or products unless the a. Brand Manager untuk perusahaan consumer goods
employer makes a payment. nasional
b. Staf Bagian Akuntansi di sebuah perusahaan
Repatriation: Problems and Solutions multinasional
Problem c. Pekerja Cleaning Service di sebuah mall di Jakarta d.
Making sure that the expatriate and his or her family don’t Teknisi pesawat di bandara
feel that the company has left them adrift.
Soal 4
Solutions 1. “ A well-thought-out orientation program is essential for
1. Match the expat and his or her family with a all new employees, whether they have experience or not.”
psychologist trained in repatriation issues. Jelaskan apakah anda setuju atau tidak setuju terhadap
2. Make sure that the employee always feels that he pernyataan ini, berikan argumen anda.
or she is still “in the loop” with what’s happening 2. Mengapa suatu program pelatihan perlu dilakukan
back at the home office. evaluasi? Jelaskan juga mengenai 4 (empat) kategori/level
3. Provide formal repatriation services. dalam mengukur training outcomes.
Auditing the HR Function Soal 5
 What should HR’s functions be? Perusahaan Carter Cleaning Centers merupakan perusahaan
kelas menengah yang tidak memiliki pendekatan yang
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terorganisir dalam mewawancara calon pekerja. Manajer pengukuran kinerja karyawan untuk setiap kategori
SDM sebelumnya adalah pihak yang melakukan keseluruhan pencapaian.
proses perekrutan dan seleksi. Ia selalu memiliki beberapa
pertanyaan favorit yang sama untuk ditanyakan. Selain itu,
tidak ada pula arahan dari perusahaan atau manajemen
puncak mengenai proses tersebut. Jenny adalah manajer
SDM baru di perusahaan tersebut. Ia menganggap bahwa
kurangnya pelaksanaan proses wawancara seleksi yang
formal, prosedur dan pelatihan dapat menyebabkan
masalah di kemudian hari seperti tingkat turnover yang UAS SEMESTER GASAL 2012/2013
tinggi atau masalah kriminal lainnya. Oleh karena itu Jenny
ingin melakukan beberapa hal terkait dengan proses MANAJEMEN SDM
tersebut.
1. Mengapa proses seleksi karyawan yang seksama sangat 150 menit (Closed Book)
penting bagi organisasi? Jelaskan.
2. Jelaskan empat (4) jenis wawancara yang dapat
digunakan sebagai salah satu alat seleksi karyawan. Soal 1
a. Jelaskan pengertian ke 4 (empat) aspek keadilan/equity
Soal 6 yang perlu diperhatikan dalam penyusunan upah disertai
1. Jelaskan peran individu, manajer, dan organisasi dalam contoh serta bagaimana manajemen dapat menjamin ke 4
pengembangan karir. (empat) aspek tersebut dapat terwujud.
2. Banyak karyawan yang berharap agar mendapatkan b. Jelaskan masing-masing satu metode kuantitatif dan satu
promosi, karena promosi identik dengan pembayaran yang metode kualitatif yang dipakai dalam melakukan evaluasi
lebih tinggi, tanggung jawab yang lebih besar dan jabatan, termasuk kelebihan dan kekurangan metode-
diharapkan akan berujung pada kepuasan kerja. Namun metode tersebut.
begitu, proses promosi tidak selalu menjadi pengalaman
yang positif karena terkait dengan beberapa keputusan Soal 2
yang menyertainya. Jelaskan isu-isu terkait yang harus a. Insentif tidak hanya dapat diberikan pada individu,
dipertimbangkan dalam membuat keputusan promosi. namun juga pada tim/kelompok. Jelaskan pro dan kontra
dari menggunakan insentif bagi tim/kelompok. Sebutkan
Soal 7 dan jelaskan tiga (3) rencana insentif berdasarkan organisasi
1. Jelaskan apa yang dimaksud dengan pengukuran kinerja, (organization wide incentive plans)!
perbedaannya dengan manajemen kinerja, dan alasan, b. Jelaskan tujuan penerapan “flexible benefit programs”
mengapa perlu dilakukan pengukuran terhadap kinerja. pada organisasi. Jelaskan pula metode “cafeteria approach”
2. Berikut ini adalah contoh Strategic Role Assessment dan “flexible work schedules” sebagai bagian dari program
Matrix yang menggambarkan hasil dari pengukuran kinerja benefit ini.
karyawan dibandingkan dengan nilai tiap-tiap posisi
(jabatan) bagi organisasi. Soal 3
a. Dalam kerangkan Hubungan Industrial di Indonesia
dikenal istilah makro minimal dan mikro kondisional dalam
mengatur hak dan kewajiban antara pekerja, pihak
manajemen, dan pemerintah. Jelaskanlah dan sertai dengan
contoh, perbedaan antara aturan yang bersifat makro
minimal dan mikro kondisional tersebut!
b. Jelaskan, beserta contohnya, penyebab utama dari
kecelakaan kerja. Berikan saran anda mengenai tindakan
apa saja yang dapat dilakukan baik oleh pegawai maupun
pengusaha untuk mengurangi penyebab terjadinya
kecelakaan di tempat kerja.
SSoal 4
a. Anda adalah manager SDM dari sebuah perusahaan yang
akan mengirimkan karyawannya untuk pertama kali bekerja
dalam sebuah proyek di luar negri. Hal-hal apa saja yang
harus diperhatikan dalam proses seleksi kandidat dan
Keterangan Bagan: Masing-masing bentuk langkah-langkah apa yang harus dilakukan oleh perusahaan
merepresentasikan karyawan dan hasil pencapaian kerja untuk mempersiapkan karyawan dengan penugasannya di
yang telah diukur dengan metode tertentu dalam rangkaian luar negri. Jelaskan dengan detil.
proses pengukuran kinerja (diasumsikan hasil pengukuran b. Jelaskan mengenai Human Capital Process/Strategy yang
kinerja adalah sama untuk setiap orang selama 2 tahun diterapkan di PT. JNE.
terakhir). Perusahaan memiliki kebijakan unutk mengaitkan
hasil pengukuran kinerja dengan kompensasi, Soal 5
pengembangan, pemutusan hubungan kerja (PHK), dan a. Jelaskan makalah yang dibuat oleh kelompok anda
keputusan SDM yang lain. Tentukan langkah-langkah (panjang uraian maksimal 1 halaman). Penjelasan tersebut
manajerial yang akan anda ambil dalam mengelola hasil mencakup: permasalahan, metode pencarian data,
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informasi singkat perusahaan, hasil penelitian, serta perbedaan kelebihan dan kekurangan kedua struktur
kesimpulan dan saran. tersebut!
b. Sebutkan minimum dua topik makalah dari kelompok
lainnya. Jelaskan secara singkat salah satu di antara Soal 3
makalah-makalah tersebut. a) Beberapa teori motivasi memiliki relevansi dalam
penyusunan skema insentif. Jelaskan 4 teori motivasi yg
Soal 4 relevan dan jelaskan pula aplikasi teori tersebut dalam
a. Anda adalah manager SDM dari sebuah perusahaan yang membuat skema insentif.
akan mengirimkan karyawannya untuk pertama kali bekerja
dalam sebuah proyek di luar negri. Hal-hal apa saja yang b) Tren yang berkembang telah mendorong perusahaan
harus diperhatikan dalam proses seleksi kandidat dan untuk menerapkan family friendly benefit. Jelaskan bentuk-
langkah-langkah apa yang harus dilakukan oleh perusahaan bentuk benefit tersebut. Soal 4 Indonesia telah memiliki
untuk mempersiapkan karyawan dengan penugasannya di Undang-undang mengenai Kesehatan dan Keselamatan
luar negri. Jelaskan dengan detil. Kerja (K3) yang mengatur keselamatan kerja dalam segala
b. Jelaskan mengenai Human Capital Process/Strategy yang tempat yang berada dalam wilayah kekuasaan hukum
diterapkan di PT. JNE. Republik Indonesia. Terkait dengan K3,
a) Jelaskan mengenai pengertian dan tujuan pembentukan
Soal 5 K3 (minimal 5)
a. Jelaskan makalah yang dibuat oleh kelompok anda b) Apa saja persyaratan sistem K3 yang ideal serta
(panjang uraian maksimal 1 halaman). Penjelasan tersebut kewajiban pengusaha terkait dengan K3
mencakup: permasalahan, metode pencarian data,
informasi singkat perusahaan, hasil penelitian, serta Soal 5
kesimpulan dan saran. a) Dalam hubungan ketenagakerjaan, mengapa diperlukan
b. Sebutkan minimum dua topik makalah dari kelompok keterlibatan pemerintah sebagai pihak ketiga? Apa bentuk
lainnya. Jelaskan secara singkat salah satu di antara konkritnya?
makalah-makalah tersebut. b) Sebutkan dan jelaskan satu contoh pengaturan hubungan
ketenagakerjaan secara deskriptif!
UAS SEMESTER GASAL 2011/2012 Soal 6

a) Di dalam perjalanan menjadi pemain global, terdapat
berbagai tantangan bisnis yang harus dihadapi perusahaan.
MANAJEMEN SDM Jelaskan dan berikan ilustrasi setidaknya 3 faktor perbedaan
antar negara yang dapat mempengaruhi praktek
150 menit (Closed Book) manajemen sumber daya manusia di dalam suatu
perusahaan!
b) Jelaskan penerapan konsep Geosentrisme (geocentric)
dalam kebijakan rekrutmen dan seleksi pada perusahaan
Soal 1 (WAJIB)- 20% multinasional!
a) Jelaskan mengenai transformasi pengelolaan SDM yang
dilakukan oleh PT. BNI seperti yang telah disampaikan pada
saat kuliah tamu.
b) Jelaskan makalah yang dibuat oleh kelompok Anda
(panjang uraian maksimal 1 halaman). Penjelasan tersebut
mencakup: permasalahan, metode pencarian data,
informasi singkat perusahaan, hasil penelitian, serta
kesimpulan dan saran
c) Sebutkan minimum tiga topik makalah dari kelompok
lainnya. Jelaskan secara singkat salah satu di antara
makalah-makalah tersebut
SOAL PILIHAN (Pilih 4 soal saja) - @20%
Soal 2 Dalam merumuskan sistem Remunerasi/sistem balas
jasa, manajemen perlu mempertimbangkan berbagai aspek
keadilan, meliputi:
1. Aspek external equity,
2. Internal equity,
3. Individual equity
4. Procedural equity.
a) Jelaskan pengertian ke 4 (empat) aspek keadilan/equity
tersebut disertai contoh serta bagaimana manajemen dapat
menjamin ke 4 (empat) aspek tersebut dapat terwujud.
b) Dalam merumuskan struktur gaji, manajemen dapat
menetapkan struktur single rate atau range rate. Jelaskan
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Disusun oleh : Muhammad Firman (Akuntansi FE UI 2012)

d. Compensation managers: Develop compensation Human Capital Value Added

Employment Discrimination Laws What Employers Should Do to Minimize Liability in Sexual

McDonnell-Douglas test Is the Diversity Initiative Effective?

5. Develops goals and timetables to improve

HR’S Strategic Roles Creating an HR scorecard

Job specifications Methods of Collecting Job Analysis Information:

 Advantages : Produces a more complete picture of

From Specialized to Enlarged Jobs Background Data for Examples

Why Managers Are Dejobbing Their Companies CHAPTER 5

Forecasting Personnel Needs Manual Systems and Replacement Charts

Drawbacks to Scatter Plots : Forecasting the Supply of Outside Candidates

Advantages of centralizing recruitment

Outside Sources of Candidates Temp Agencies and Alternative Staffing

Outside Sources of Candidates Guidelines for Using Temporary Employees

Executive recruiters (headhunters) Recruiting minorities and women :

Guidelines for Choosing a Recruiter Developing and Using Application Forms

2. Recruiting and hiring employees is costly.

Types of Tests Other Tests

Aptitude tests Achievement tests

Tests of motor abilities Web-Based (Online) testing

Measuring Personality and Interests

 Helping to get rid an incompetent employees

4. Reduced risk of error for learner

Overcoming Resistance to Change

The Basics of Career Management Innovative Corporate Career Development Initiatives

Roles in Career Development Employers’ reasons for transferring employees

Enhancing Diversity through Career Management Identify Your Occupational Orientation

 Think Before Answering Corporate Policies, Competitive Strategy,and

Direct financial payments Developing an Aligned Reward Strategy

 Point method: the pay grade consists of jobs falling

Pricing Managerial and Professional Jobs

Compensating Professional Employees

Variable pay (organizational focus)

4. Meets Worker Adjustment and Retraining  Eliminating cost-inefficient plans

Controlling worker compensation costs Retirement Benefits

Deferred profit-sharing plans

19. Credit cards The principles of conduct governing an individual or a

CHAPTER 14 What Is Organizational Culture?

Training Formal Disciplinary Appeals Processes

2. Internet use 2. Elimination of the employee’s job.

 Taking voluntary time off to reduce the employer’s

 Union Salting  Ignoring bargaining items

Violations of Good Faith Bargaining Bargaining Hints

 Respect the importance of face saving for the other

Unfair labor practice strikes Handling Grievances: Don’t

Citations and Penalties  To comply with all applicable OSHA standards

2. Don’t bite off more than you can chew.

Evacuation Plans Global Staffing Issues

Offshoring Training is needed on:

UAS SEMESTER GASAL 2011/2012 Soal 6

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