Post on 27-Mar-2015
transcript
Chapter 15
WORKING WITH EMPLOYEES
“Management Talk”
“What makes us stand out is our heritage as a cooperative and commitment to providing a
great work environment. While we work hard to create a challenging and enjoyable work
environment, it takes great people to be a best company.”
– Wally Smith, REI, President and CEO
Objectives
• Understand the methods that organizations use to select employees
• Explain the difference between a transfer, promotion, and separation
• Identify different methods of training employees• Understand the methods that organizations use
to measure performance• Explain the process of Management By
Objectives• Understand the importance of rewarding
employees
Understanding ManagementREI (Recreational Equipment Inc.) has repeatedly been named to Fortune magazine’s list of “100 best companies to work for in America.”
The outdoors and sporting goods retailer has earned this distinction by offering employees a unique set of benefits, including flexible health, life, and disability insurance plans, an employee profit-sharing plan, and a “challenge grant” program that encourages employees to test REI products on wilderness adventures.
Management Skills
• Why would employee enthusiasm be important to a company like REI?
• If you were publishing a list of the 10 best companies to work for in your town, what things would you take into consideration?
Sec. 15.1: Meeting Personnel Needs
• What kind of experiences have you had applying for jobs?
What You’ll Learn
How companies use methods such as interviewing and testing to select employees
How the human resources department handles employees leaving positions
What training techniques companies develop to teach new concepts
Why is this important?
A successful manager must develop effective processes to select, train, and maintain
employees”
How Companies Select Employees
Human Resources (HR)• A department that recruits employees, manages training
and compensation, and plans for future personnel
HR Functions• Advertise positions, select from applicants, fill positions• Develop employee plan in respect to company goals and
business environment• Create a Job Description
– Written statement identifying the type of work and necessary qualifications for a job
– Sets the standards against which applicants can be rated
Online Source: www.workforceinfo.state.il.us (Career Click)
How Companies Select EmployeesTHINGS LISTED ON A
JOB DESCRIPTION:
1) Essential job functions2) Knowledge and critical skills3) Physical demands4) Environmental factors5) Any information that may be
necessary to clarify job duties or responsibilities
SAMPLE:Title: ReceptionistDuties and responsibilities:Receives and directs phone calls, greetsvisitors, receives and sorts mail andpackages, orders office and kitchen supplies, key documents when requiredQualifications: High school graduate. Needs good communication skills and ability to get along with people. Keying speed of 45 wordsper minute. Experience desirable but not necessary.Salary: $20,000- $25,000, depending on experience
Alternatives to Adding Alternatives to Adding StaffStaff
Freelancers
*
Interns
*
Temporary Workers
FreelancersFreelancers
• Provide services to business by hourly basis or by the job
• Used when full time employment is not needed
• Examples: Bookkeepers, accountants, lawyers, graphic designers, window display artists, advertising copywriters, and photographers
InternsInterns
• Students, who will work for little or no pay in order to gain experience in a particular field
• Found in community, local colleges, and high schools
Temporary WorkersTemporary Workers
• Can be used for long periods of time as an alternative to full time hiring
• Paid a workers salary plus a fee to the agency who supplies the worker
• Ex: Seasonal, substitute for injured or sick workers on leave
How Companies Recruit Employees
Get the readers attention Stimulate the reader’s interest Present a solid specific fact End ad with a call to action
Find employees for businesses and other institutionsTry to match people with jobs their looking for to the right businessCharge a fee when they are successful
Most college and universities have themCollect info on career and employment opportunitiesMake them available to students or graduatesNo fee is chargedAsk college to make you business listed at their placement center
How Companies Recruit Employees
Often businesses except referrals from reliable sources on a good applicant for a job their offering
On the world wide web mostly all companies use their business web sites to post job availability and have online applications
Also businesses can mention their location for people to apply
Online Job Search Databases
Post Classified Ads and Resumes
www.monster.com
www.careerpath.com
www.careerbuilder.com
The Selection ProcessStandard Selection Procedures
1. Preliminary screening
• HR Department will sort out hundreds of letters and resumes in response to one classified ad
• I.E. – Southwest Airlines receives 129,000 resumes and hires approximately 3,411 people every two years
• Applicant pool is narrowed and input from team members is given
• Check applicant’s references and credentials
• Call for an interview
The Selection ProcessStandard Selection Procedures
2. Testing
Used to differentiate applicants with similar credentials
Provides a uniform evaluation of the qualifications of a prospective employee
Predictive Index (PI)
• 10-minute personality test is used for effectively hiring and working with employees
• Identifies an individual’s strengths and weaknesses
• Over 3,000 companies use it (IKEA, Budget Rent-A-Car, colleges, professional sports teams)
Validity and Reliability of Test
• Factors relevant to the job
• Group of people taking test under similar circumstances get similar results
• Remove the element of chance
The Selection ProcessCommon Employment Tests
Aptitude TestMeasures capacity to learn a particular subject or skill
Psychomotor TestMeasures strength, dexterity, and coordination
Job Knowledge TestMeasures knowledge related to a particular job
Proficiency TestMeasures performance on a sample of the work required in the job
Interest TestCategorizes applicant’s interests relative to the job
Psychological TestAttempts to define personality traits
Polygraph TestRecords changes in physical response as a person responds to questions to determine whether responses are truthful
The Selection ProcessStandard Selection Procedures
3. Employment interview
Allow the employer to learn more about the applicant than can be conveyed in a resume or cover letter
Preparing for an Interview
• Setting aside space - Privacy
• Putting the applicant at ease – Small talk, Refreshment, Interviewer should be outgoing trained in interviewing skills
• Taking control over the interview – take notes to record important points, encourage applicant to talk, but control the direction of discussion
The Selection ProcessStandard Selection Procedures
3. Employment interview
Structured Interview
Prepare a list of questions when interviewing many applications for one position
Provides uniform information for each applicant
Remind the applicant to cover each question
• Where do you want to be in five years?
• What are your strengths in working with others?
Unstructured Interview
A conversation between employer and applicant in a relaxed environment
Ask open-ended questions
Why did you leave your previous job?
Tell me about yourself
Applicant has the opportunity to ask questions about the organization
Not always reliable interviews
Pertinent questions may not be covered and bias is a possibility
The Selection Process
Standard Selection Procedures
3. Employment interview
First Impressions on personal attributes can be taken into consideration
Halo Effect
Single characteristic dominates the interviewer’s impression of the applicant
(I.E.) - Pleasant Personality dominates the perception of the applicant and other concerns are overlooked
Doesn’t indicate if the candidate is qualified
Applicant with a pleasant personality in an interview is common
The Selection ProcessStandard Selection Procedures
4. Personal judgment
Choosing which individual gets the job
Employer must make a value judgment as to which applicant would be most successful
Follow the selection procedures for effective decision
What if no applicants are qualified?
Offer a higher salary or better benefits to attract more applicants
Re-advertise in a different newspaper or Web site
Legal Considerations in SelectionThe Wrong Questions
Due to federal law, certain questions cannot be asked of job candidates.
Questions to avoid when interviewing candidates include:
1. Age (may ask if they are older than a certain age if it is a requirement to of the job [i.e.-school bus driver, forklift operator]
2. Date of birth
3. Religion or church affiliation
4. Father's surname or mother's maiden name
5. Marital status
6. What languages they speak (unless it is a job requirement)
7. How many children they have, their children's ages and who will care for the children while applicant is working
8. Financial information not related to compensation
9. If they served in the military of any foreign country 10. If they have ever been arrested? (may ask if they have been convicted of a
felony/misdemeanor)
Legal Considerations in Selection
Griggs v. Duke Power Company African American employees at a power-generating plan
objected to the requirement of a high-school diploma or passing an intelligence test as conditions of employment in or transfer to jobs at the plant
Court decided if a test negatively impacts female or minority group applicants, then company must prove validity and prevalence to job requirements
Even if a company does not mean to discriminate, if may unintentionally select an unfair test
Findlaw.com source: GRIGGS v. DUKE POWER CO., 401 U.S. 424 (1971)
Legal Considerations in Selection
Albemarle Paper Company v. Moody North Carolina paper mill was seeking the reversal of a Court of Appeals
decision that eliminated its testing program and awarded back pay to a group of African American employees
Managers argued that in addition to creating diversity programs, they had statistical proof that their testing was job-related
Lower court noted that they had made efforts to deal with segregation
Supreme Court agreed with Court of Appeals that the intentions of the company were not the main issue
It held that it was not enough to show that the best workers did well on the tests, or that a testing program improved the overall quality of the work force.
Any tests had to be specifically related to performing the job in question.
Findlaw.com source: ALBEMARLE PAPER CO. v. MOODY, 422 U.S. 405 (1975)
Transfers, Promotions, and Separations
HR Department must account for employees leaving positions, as well as new employees being hired
Transfers Moves an employee into another position within the
company Generally maintains the same level of responsibility and
pay Employee can learn different functions within
organization
Transfers, Promotions, and SeparationsPromotions
Moving to a position of greater responsibility with higher status and pay
Merit-based and encourage performance
Considerations: Merit, seniority, or length of service Performance in current job How they will adapt to new job (aptitudes and interest)
Peter Principle – possible for employees to be promoted until they reach a level at which they can no longer perform
Employee has “risen to her level of incompetence” Will gain a mediocre employee and lose a competent one through
inappropriate promotion
Transfers, Promotions, and SeparationsSeparations - Final way in which an employee leaves a position
Voluntary – employee resignso Exit Interview – pinpoints reasons why an employee is leaving
Involuntary – employee is laid-off or terminatedo Layoffs – there is not enough work for all employees
o Result of downsizing to increase efficiencyo Employee can be called back
o Termination – employee is asked to leave because of poor performance or failure to follow company rules
o Failures from previous actions of training, counseling, and/or disciplinary action
o Last resulto Possible reassignment to a less stressful job will eliminate the waste of
company resources and time invested in hiring and training that individual
Training Employees A way for employees to learn new concepts, gain new
skills, or update existing ones
Training can be to entire organization if a new way of operating a business function is implemented (I.E. - District 211 Online Gradebook)
Provide meaningful training Positive reinforcement
Feedback regarding progress
Encourage learning by setting standards and measuring performance
Outback Steakhouse, the Australian-themed franchise
Monthly video conference meetings to all kitchen staff
Forum to discuss cooking and menus
Serving techniques to food handling
Training Employees
On-the-Job Training Employee works and trains under close supervision until he or she
understands the task and performs it correctly
Job Rotation Cross-Training: a form of on-the-job training that exposes employees to
several jobs within an organization Perform each job for a fixed period Allows employee to master many skills
Training Employees
Vestibule Training Training area is set up with equipment similar to that
used in the actual job Employees learn and practice in a simulated work
environment Used to train cashiers, bank tellers, clerks, and
technicians Creating training area can be expensive Can the employee adapt to working in the “real”
environment, with all its pressures, when training end?
Training Employees
Apprenticeship Training Time-tested form of on-the-job training Experienced worker (mentor) passes on skills to an
assistant Skilled occupations
Carpentry Mechanics Physicians
Training Employees
Classroom Training Presents general information about the organization,
rules, safety, and job concepts in a classroom setting Lectures, Q & R, Open Discussion Allows for information to be shared with large groups
at low cost 2-hour Bus Driving Re-fresher Courses (Mandatory)
Training EmployeesComputer-based Training Internet Training in the classroom or on an individual
basis, contributes to employee development at a low cost
View material at computer workstations and answer questions at their own pace
Electronic learning will grow to approx. $23.7 billion by this year (Source: International Data Corporation)
Percentage of Organizations Using Various Methods for Employee Training
92% 90%
79%
62%54%
51%
46%43%
41%27%
17%
11%10%
3%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage
Video
Lectures
One-on-One Instruction
Role Plays
Simulations/Games
Audio
Slides
Films
Case Studies
Self Assessment
Self-Study Programs
Multimedia
Teleconferencing
Video Teleconferencing
Computer Conferencing
Source: Adapted by B. Filipczak, “What Employers Teach,” Training 29, no. 10 (1992) p. 46. 1992 Lakewood Publications, Minneapolis, MN.
Extension Activity!!!
• Have students interview personnel directors (at the school or in a business) about what types of interviews they conduct and what general traits they look for in new hires.
• Have students use the Internet to research and compare career tests
15. 1: Chapter Summary
The employee selection procedure includes screening, testing, and interviewing
Employees may leave a position through transfers, promotions, or separations
Methods of employee training include on-the-job training, vestibule training, apprenticeship, classroom training, and computer-based training
Sec. 15.2: Rewarding Performance
• What types of rewards will you work for and why?
• Predict what are the most effective rewards and what their importance is in the business world.
What You’ll Learn Four different methods of evaluation employee
performance Why is it important to provide feedback to
employees How to connect a reward system to
performance evaluation
Why is this Important?
“Reward systems are developed to maintain employee motivation. It is necessary to evaluate performance and provide feedback to produce positive
results.”
How is Performance Measured?
• Rewarding employees motivates them to do their best
• Employers must show appreciation to retain qualified employees
• America West Airlines– Offers employees a $50 bonus for every month in which
the company ranks in the top three major airlines in either on-time performance or lack of customer complaints
• Performance Assessments– Identify problem areas and guides employee’s future
efforts
How is Performance Measured?
• Performance measures:– An employee’s degree of accomplishment and results in
job-related tasks– Effort that an employee exerts on the job
• Role perception: – Employee must understand his or her part in an
organization
How is Performance Measured?
Management By Objectives (MBO)– Process often used in quality improvement and
goal setting for the whole organization as well as performance appraisal
– Empowers employees by involving them in personal goal setting
• Establishes well-defined job objectives• Develops an action plan• Allows employees to implement the action plan• Evaluates achieved performance-based objectives• Takes necessary corrective action• Establishes new objectives for the future
How is Performance Measured?
Management By Objectives (MBO)– Should be clear and straightforward– Challenging and incentives for improvement– Manager and employee should agree on objectives that
are fair and realistic
Sample Objectives• To answer all customer complaints in writing within three days of
receipt of complaint• To reduce order-processing time by two days within the next six
months• To implement the new computerized accounts receivable system by
August 1
How do these sample objectives meet that standard?
How is Performance Measured?
Production Standards– Used when something can be counted or
measured– Set an expected level of output– Employees compare their production with this
standard
How is Performance Measured?
Essay Appraisal– Manager describes the employee’s
performance in a written narrative– A form which includes questions such as:
• Describe, in your own words, this employee’s performance
• What are his or her strengths and weaknesses?
– Writing Skills are necessary– May be subjective and difficult to defend against
accusations of unfairness
How is Performance Measured?
Critical-Incident Appraisal– Manager records specific situations that reflect
the employee’s performance, behavior, and attitudes on the job
• Used as a basis for appraisal and feedback• Produces large volume of material and recording is time-
consuming• Problems of subjectivity based on the likeability of the
employee by the supervisor
Providing Feedback
Managers must explain results to employees, especially if there is negative feedback
The Successful Appraisal InterviewThe following factors contribute to the success of the appraisal interview:
– Employee involvement– Recognition and praise– Manager and employee work together to set improvement goals– Discussion of problems– Avoidance of heavy criticism– Encourage the employee to voice opinions– Opportunity for employee to prepare for interview– Perception that good performance will be rewarded
How could these factors help to achieve the goal of motivating an employee to improve?
Legal Considerations
Title VII of the Civil Rights Act
Requires that an organization’s performance appraisal system be “bona fide.”
System can’t have disproportionately negative effects upon minorities, women, or older employees
An appraisal system that is fair and legal should: Be based on Job Descriptions
Emphasize performance rather than personal traits
Communicate appraisal results to employees
Allow employee response
Train mangers in conducting proper evaluation
Ensure that appraisals are written and documentation is retained
Be consistent
Organizational Reward SystemIntrinsic Rewards
Intangible and internal to the individual
Extrinsic Rewards
Controlled and distributed by the organization Child Day Care
Basketball Courts
Weekly softball games
Fitness Center
Intrinsic Rewards Extrinsic Rewards
Sense of achievement Feelings of accomplishment Informal recognition Job Satisfaction Personal Growth Status
Formal Recognition Fringe Benefits Incentive Programs Base Wages Promotion Social Relationships
Relating Rewards to PerformanceFree Enterprise System
o Rewards should be related to performance
Merit-pay – salary increases are based on performance appraisals
Other rewards not based on performance
o Across-the-board pay – salary increases of a fixed percentage
o Insurance plans
o Paid leave
o Sick leave
o Personal Leave
o Emergency Leave
o Paid Vacation Leave
o Discounts
Online Source: 1998 InfoWorld Compensation Survey
15. 2: Chapter Summary
Performance is the degree of accomplishment in completing job-related tasks measured by results
Performance can be evaluated by MBO, production standards, essay appraisal, and critical-incident appraisal
Supervisors should provide feedback to employees
The organizational rewards system includes intrinsic and extrinsic rewards
Rewards should be based on performance
Writing Skills
• How would you use the Management By Objectives process to form an achievement plan for the rest of your school year?
Assessing Team Skills
• You are the head of human resources at a monthly teen magazine. The Midwest region needs a new fashion writer for its magazine. You posted an ad in local newspapers and have received resumes and writing samples from many qualified applicants. Still, the interviewing editor has turned down every potential employee that she has interviewed. Her interviewing style is informal, and you believe that his is the problem.
• With your team, explain the potential dangers of the informal interview, including sample interview questions. Then, propose the alternative of a more formal interview including sample interview questions. Finally, explain why you think this method may provide positive results in the search.
Internet Skills
• Using the Internet, read 10 to 15 job listings in an industry and career that interests you. Then make a list of the top 10 traits you find from the advertisements.