Organizational Management

Chapter 15
Managing Human Resources

Chris Schrage

“Our strength is the quality of

our people”.
“People are our most
valuable resource”.

Chris Schrage

Human Resource
Management Goals
Attract an
Effective
Workforce
Human Resource Environment

Maintain an
Develop an
Effective
Effective
Workforce
Workforce
Chris Schrage
Understanding Management, 1998, Daft and Marcic

1
 History of HRM
Low level management position
1920 Developed procedures for hiring and firing
Implemented benefit plans

1950 Unions were major force

Senior position- chief negotiator

1980 Unions on decline

HRM managers become involved in corporate
strategic management

Today Determine correct employee makeup

Must develop an effective and efficient work
force
Training
Chris Schrage
Understanding Management, Marcic & Daft 1998

Interdependence of
Organizational
and Human Resource Strategy

Demand for skills

Competitive and employees
Human
Strategy--
Resource
Domestic,
Strategy
International Organizational Readiness

Chris Schrage
Academy of Management Review 13, 1988, Lengnick-Hall & Lengnick-Hall

Attracting an Effective
Workforce
Choose Select the
HR Welcome
Recruiting Candidate
Planning New
Sources
Employee
Retirements Want ads Application
Growth Headhunters Interview
Resignations State Agencies Tests

Employee Company
Match with
Contributions Inducements

Chris Schrage
Understanding Management, Daft and Marcic 1998

2
Planning
Forecast Demand

Assess Supply

Formulate fulfillment Plans

Chris Schrage

Handy’s “Shamrock” of
employees in organizations

Chris Schrage

Job analysis

Chris Schrage

3
Popular Job Analysis
Methods
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Chris Schrage

Job Analysis
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Chris Schrage

Performance Evaluation
What Do We Evaluate?
Individual Task
Behaviors
Outcomes

Performance
Evaluation

Traits

Chris Schrage

4
Performance Evaluation

Who Should Do the Evaluating?

Immediate
Supervisor

Peers

Self-Evaluation Immediate
Subordinates

Chris Schrage

Chris Schrage

Chris Schrage

5
 INTERVIEWS

Are the most frequently used selection tool.

Carry a great deal of weight in the selection
process.
Can be biased toward those who “interview
well.”
Should be structured to ensure against
distortion due to interviewers’ biases.
Are better for assessing applied mental skills,
conscientiousness, interpersonal skills, and
person-organization fit of the applicant.
Chris Schrage

The Right Way to Interview

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+
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0 1 # 2! " 3435

WRITTEN TESTS

Renewed employer interest in testing

applicants for:
Intelligence: trainable to do the job?
Aptitude: could do job?
Ability: can do the job?
Interest (attitude): would/will do the job?
Integrity: trust to do the job?
Tests must be show validated
connection to job-related performance
requirements.
Chris Schrage

6
 PERFORMANCE-
SIMULATION TESTS
Based on job-related performance
requirements
Yield validities (correlation with job
performance) superior to written aptitude
and personality tests.
6

!
Chris Schrage

Developing an Effective Workforce

Socialization
Socialization
Process of systematically changing
expectations, behavior, & attitudes
of new employees to meet
organization’s desired traits

“Ropes to Skip and Ropes to Know”

R. Richard Ritti

Chris Schrage

Orientation

"
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Chris Schrage

7
 Performance Appraisals

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+ , -
. *
$ / , -
%
012
Chris Schrage

Graphic rating example

Ratings:
+ 33333333333333333333333 3 = Outstanding
4 , 33333333333333333333 2 = Satisfactory
* 3333333333333333333 1 = Unsatisfactory
33333333333333
1 1
5 6 3333
5 6 - 3333
4 7 6 - 8 3333
$ 6 9 3333

6 8 3333
: 6 8 3333

Chris Schrage

Performance Evaluation
What Do We Evaluate?
Individual Task
Behaviors
Outcomes

Performance
Evaluation

Traits

Chris Schrage

8
Performance Evaluation

Who Should Do the Evaluating?

Immediate
Supervisor

Peers

Self-Evaluation Immediate
Subordinates

Chris Schrage

360-Degree
Evaluations

Chris Schrage

Critical Incidents
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Chris Schrage

9
 Graphic Rating Scales
+

Keeps up with current

policies and regulations.
1 2 3 4 5

9
Completely Fully
Unaware Informed

Chris Schrage

Behaviorally anchored rating

scales (BARS)
Passes next examination
and graduates on time.
" & Pays close attention and
regularly takes notes.

Alert and takes

occasional notes.

Stays awake but is

inattentive.
Get to class on time,
but nods off immediately.

Oversleeps for class.

Chris Schrage

Behaviorally Anchored Scales

Outstanding
# " -
5 8
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#

4 : 8
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3 / (
; <
8
)
#

: 8 # 8
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Unsatisfactory Chris Schrage

10
Methods of Performance
Evaluation
Forced Comparisons
– Evaluating one individual’s performance relative to the
performance of another individual or others.
– Paired comparison
Evaluation method that compares each employee with
every other employee and assigns a summary ranking
based on the number of superior scores that the
employee achieves
– Individual ranking
Evaluation method that rank-orders employees from best
to worst
– Group order ranking
Evaluation method that places employees into a
particular classification,
Chris Schragesuch as quartiles

Suggestions for Improving

Performance Evaluations
Emphasize behaviors rather than traits.

Document performance behaviors in a diary.

Use multiple evaluators to overcome rater biases.

Evaluate selectively based on evaluator competence.

Train evaluators to improve rater accuracy.

Provide employees with due process.

Chris Schrage

Providing Performance
Feedback
Why Managers Are Reluctant to Give
Feedback
– Uncomfortable discussing performance
weaknesses directly with employees.
– Employees tend to become defensive when their
weaknesses are discussed.
– Employees tend to have an inflated assessment of
their own performance.
Solutions to Improving Feedback
– Train managers in giving effective feedback.
– Use performance review as counseling activity
rather than as a judgment process.
Chris Schrage

11
 Providing Performance
Feedback
What About Team Performance
Evaluations?
1. Tie the team’s results to the organization’s goals.
2. Begin with the team’s customers and the work
process the team follows to satisfy customer
needs.
3. Measure both team and individual performance.
4. Train the team to create its own measures.

Chris Schrage

Compensation and Benefits

Chris Schrage

Maintaining an Effective
Workforce

$ #
%

Chris Schrage

12
 Retention and Turnover

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,
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)

Chris Schrage

Reasons for Firing

1. Poor fit with the corporate culture
2. Over-selling one’s qualifications
3. Bad chemistry with the boss.
4. Rigidity (clinging to old experiences)
5. Lack of necessary job skills
6. Victim of a power play
7. Refusal to conform to unspoken rules
8. Failing to be a team player
9. Business cutback (plus mergers)
10. Poor judgment
Chris Schrage M.M. Kennedy, Business Week Careers, no date

Labor-Management Relations

25

20

15

10
Labor organizations
5
Labor contracts
Collective bargaining 0
1975 1980 1985 1990 1995

Chris Schrage

13
 Unions and
Management as
Adversaries

Chris Schrage

Complex legal environment

Federal laws
Equal Employment Opportunity (EEO)
Affirmative action programs

Chris Schrage

Which of the following is

NOT sexual harassment?
1. Manager makes repeated,
unwelcome sexual comments.
2. Manager makes repeated, offensive
sexual jokes that others hear.
3. Male manager asks female manager
for a date; she refuses.
Business Week (10/13/98)
Chris Schrage

14
 The article points out that
the law defines sexual
harassment as any
“unwelcome sexual conduct” that
creates a
“hostile work environment”.
Chris Schrage

Employers are advised to have

a clear sexual harassment
policy, to train employees in
the policy, and to set good
examples from the top.
Chris Schrage

15