Solution Manual For Fundamentals of Human Resource Management, 15th Edition by Susan L. Verhulst, Da

Chapter 1: The Dynamic Environment of HRM

Chapter 1: The Dynamic Environment of HRM Learning Outcomes After reading this chapter, students should be able to: 1.

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Discuss how globalization affects HRM practices.

Describe how human resource managers use technology.

Explain regulation and legislation issues relevant to HRM. Identify trends in the composition of the workforce and how HRM must adapt.

Explain how HRM supports diversity and inclusion in the workplace.

Explain the contingent workforce and other methods used to control labor costs.

Explain how HRM supports continuous improvement programs.

Define employee involvement and list its critical components.

Outline emerging challenges facing HRM.

Chapter Overview Natural and manmade disasters can be unpredictable and have a ripple effect that is not only challenging for local employers, but also for multinational companies with interests in the affected areas. The role of the HR professional can vary widely depending on the magnitude of the disaster and the size of the company. Surveying your students about external factors in their experience that have been disruptive at work will turn up a variety of HR challenges.

Chapter content includes external challenges facing today's dynamic business world, highlighting globalization, legislation and regulation, HRM technology, workforce diversity, labor supply and management, contingent workforces, decentralized work sites, continuous improvement, work process engineering, employee involvement, HRM challenges, and ethics.

Additional features of this chapter: Exhibits 1 – 1: Cultural Values 1 – 2: Relevant Laws Affecting HRM Practices 1 – 3: FedEx Corporate Diversity Mission Statement 1 – 4: Are Layoffs Justified? Dilbert Cartoon 1 – 5: Continuous Improvement Programs 1 – 6: Components of Continuous Improvement Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning outcomes. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

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Chapter 1: The Dynamic Environment of HRM •

Ethical Issues in HRM – Invasion of Privacy on page 7 discusses the organization’s right to monitor employees versus a worker’s right to privacy through the use of some interesting real-life examples.

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Workplace Issues – Valuing a Diverse Workforce on page 10 describes the variety of ways that organizations can meet the challenges of developing and motivating a diverse work force.

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Diversity Topics – Glass Ceiling Still a Barrier for Women Globally on page 12 has a chart depicting the percentage of women in executive ranks in various countries throughout the world.

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Ethical Issues in HRM - Guidelines for Acting Ethically on page 19 offers thoughtful suggestions for handling confusing ethical dilemmas.

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Ethical Issues in HRM - Everyday Ethics on page 21 offers ethical lapses that may be more familiar to students than those seen in the headlines.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 1 concepts: •

Ask students about current changes in the work environment which they have heard or read about. These may include friends and relatives who have been through work process engineering, their own employment as contingent workers, etc. Consider assigning this as a pass/fail interview assignment. Ask the students what role they believe the HR function played in helping organizations to manage these changes and what factors determine whether these changes are managed effectively.

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Provide an overview of a local or regional organization that has global operations. lead a discussion about how the local business was impacted by globalization. Ask the students to discuss how HRM might have been involved in that change.

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Assign to or provide for students: brief articles from newspapers and/or business magazines that illustrate some current HR challenges. Have small groups of 3-6 students each read and report on one of the articles. (You will need to address the acceptability of Internet articles.)

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You might also want to ask if any students have been to another country and what their impressions were of the culture. This is also an opportunity to integrate students’ experiences as international students (in your country or abroad). Did the students encounter any difficulties communicating? Did anything make them uncomfortable?

How did they adjust in those circumstances? Relate their answers to how HR supports such situations.

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Chapter 1: The Dynamic Environment of HRM

Chapter Outline And Lecture Suggestions Introduction

Slide 3

Human resource management is a subset of the study of management that focuses of how to attract, hire, train, motivate, and retain employees.

HR must understand the implications of globalization, technology changes, workforce diversity, labor shortages, changing skill requirements, changing skill requirements, continuous improvement initiatives, the contingent work force, decentralized work sites, company mergers, offshore sourcing of goods and services, and employee involvement.

Globalization

Slide 4

Learning Outcome 1: Discuss how globalization affects HRM practices.

The globalization of business and increase in the number of multinational and transnational organizations requires HR managers to acquire a global skill set that involves managing a global workforce, understanding a wide variety of cultures and legal environments and economic systems. Communication and technology become extremely important HR competencies.

Understanding Cultural Environments Slide 5 Not all HRM theories and practices are universally applicable. Countries have different: • Values • Morals • Customs • Political systems • Economic systems • Legal systems Employees need to: • Prepare to adapt to cultures, systems, and techniques different from their own.

• Have appropriate knowledge, skills and cultural adaptability.

• Understand businesses within their own social context.

HRM needs to address: • Language differences in a multi-lingual workplace.

• Cultural variables such as status differentiation, societal uncertainty, assertiveness, and individualism.

• Group and individual conflict caused by differences in background, language, and customs.

• The differences between an individualistic society, like the United States, and a collective society, such as Japan.

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Chapter 1: The Dynamic Environment of HRM Exhibit 1-1 Cultural Values on page 3 list examples of countries that value individualism and those that value relationships.

Technology

Slide 7

Learning Outcome 2: Describe how human resource managers use technology.

Technology alters world economies and the way people work.

Technology has changed the way information is created, stored, used, and shared.

Thomas Friedman studied globalization and the evolution of civilization. He contends that technology has leveled the playing field, allowing individuals and small businesses to compete in the global economy.

Working with Technology Slide 8 Technology presents opportunities and challenges for workers everywhere.

Information Technology • Creating and maintaining technology infrastructure of the organization.

• Jobs for IT professionals are predicted to be among fastest growing occupations through 2022.

Information Systems • Use technology to enhance organizational decision making.

• Create organizational efficiencies and competitive advantage.

Knowledge Workers Slide 9 • Use technology to acquire and apply information.

• Technology skills are required in a wide variety of jobs, making it difficult to find a career area that doesn't require technology skills.

• Social media policies need to spell out rights and responsibilities when employees use social media, blogs or any other public online forum.

Technology and HR Slide 10 Like most professions, technology has changed the way HR professionals work Human Resource Information Systems (HRIS) automate many HR tasks: • Employee access to payroll, benefits administration.

• Applicant tracking, orientation, training and development.

• Performance management.

• Many, many others that will be covered in other chapters.

Software as a Service (SaaS) • Business model that provides software services online on a subscription basis • Includes HRIS Staffing Slide 11 • HRIS software powers company career sites, job boards like CareerBuilder and Monster • Tracks applicants and the hiring process • Provides online screening and testing for applicants Training and Development Page 4

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HRIS software performs orientation, training and employee development activities.

• Services can be delivered to employees on demand, globally and in a cost effective way.

Ethics and Employee Rights Knowledge workers have lots of opportunities for distractions due to internet access.

• Social media • E-Mail • Shopping • Gambling • Porn Electronic surveillance allows employee monitoring and presents ethical problems.

Compensation and Technology • High demand tech skills can drive up salary and benefit offers.

• Websites like Glassdoor provide a way for workers to trade salary information.

Communication • Technology makes communication easier, but not necessarily better • Information sharing is easier and breaks down traditional organizational barriers Telecommuters • Technology facilitates decentralized work sites allowing workers to telecommute from nearby or on the other side of the world.

• Managing off-site workers can be a challenge for managers.

Competitiveness • Technology allows businesses to source, produce and distribute globally, regardless of size.

• Allows global pool of talent Class Activity: Ethical Issues in HRM - Invasion of Privacy? Page 7 After students read this feature that profiles three examples of employee monitoring that ended up in the courts, use small groups to address the ethical questions for a few minutes and present their thoughts to the entire class.

When does an employer’s need for information about employee performance cross over the line and interfere with a worker's right to privacy?

Is any type of monitoring acceptable as long as employees are notified ahead of time that they will be monitored?

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Regulations and Legislation

Slide12 Learning Outcome 3: Explain regulation and legislation issues relevant to HRM. The legal landscape affecting HR changes daily thanks to federal, state and local laws and court decisions.

Legal Compliance is a major HR responsibility that includes: • Recordkeeping • Reporting • Safety monitoring • Communicating employee rights • Many others Exhibit 1-2 Relevant Laws Affecting HRM Practices page 8 lists a few of the more noteworthy federal laws of the last century. These and many others are addressed in depth in following chapters.

Workforce Composition Trends

Slide 13 Learning Outcome 4: Identify trends in the composition of the workforce and how HRM must adapt.

Workforce and labor market are usually used interchangeably to refer to the population of available workers.

Not Getting Younger The number of workers over 65 is growing globally.

Baby Boom generation is in the process of turning 65 and has a variety of reasons for not retiring including: • Staying active.

• Good health.

• Income and standard of living.

More Demographic Shifts • Globally, the number of women entering the workforce is growing.

• Hispanic and Asians are fastest growing ethnic groups.

Is There a Shortage of Skilled Labor?

Some skills are in higher demand than others.

• Skilled trades such as electricians, carpenters, cabinetmakers, welders and health care workers are in short supply in the world's largest economies.

• Shortage is expected to worsen as few young people are preparing for skilled trades viewed as "blue-collar.

Organizations often have too many staff in some areas and shortages in others.

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Chapter 1: The Dynamic Environment of HRM Class Activity: Diversity Topics - Valuing a Diverse Workplace page 10. Recruiting the best talent can be a challenge when the skills needed are scarce and it's hard to communicate your opportunities to the available talent pool. That's when being seen as not only an "Equal Opportunity Employer" but as an inclusive employer who embraces diversity can be an advantage. Survey students for ways to attract a diverse workforce, then compare their answers to the suggestions in this feature.

Diversity and Inclusion

Slide 14 Learning Outcome 5: Explain how HRM supports diversity and inclusion in the workplace.

HR's Challenge: Create a culture that welcomes diverse groups of people by addressing different lifestyles, family needs, and work styles.

Attract and maintain a work force that is reflective of the diversity in the general population.

Increased sensitivity to group differences.

Accommodate different values, needs, interests, and expectations of employees.

Workforce Diversity Slide 15 Varied personal characteristics of workforce Many organizations go beyond EEO laws to also recognize and protect: • Politics • Spirituality • Socioeconomic status • Family • Culture • In addition to legally protected characteristics Inclusion refers to a culture of acceptance.

Diversity and Work-Life Balance Slide 16 Different groups have different needs and expectations out of life and work: • Age groups • Ethnic groups • Lifestyle Requiring workplace flexibility for: • Family responsibilities • Leisure time • Quality of life • Global differences in culture and time Again, technology helps and complicates the issue.

Exhibit 1-3 FedEx Corporation Diversity Mission Statement page 11 is an example of how businesses value diversity so highly that they create a specific

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Chapter 1: The Dynamic Environment of HRM mission statement to emphasize those values. Does your college or any local organizations have a Diversity Mission Statement?

Diversity Topics - Glass Ceiling Still a Barrier for Women Globally page 12 provides some surprising statistics on the percent of women in senior management positions. The biggest surprise? China has more than twice the percentage of women executives as the U.S.

Labor Costs

Slide 17 Learning Outcome 6: Explain the contingent workforce and other methods used to control labor costs.

Labor costs are frequently an organization's biggest expense.

Core employees make up the most expensive part of the workforce because of training and benefit costs to name a few.

HR is required to control labor costs in a variety of ways: • Reduced hours • Reduced pay • Downsizing • Outsourcing • Offshoring • Contingent labor • Managing expense of: o Employee benefits o Workers compensation and disability claims Downsizing Also referred rightsizing May be necessary due to • Economic pressure • Strategic changes • Structural changes • Increased efficiencies • Outsourcing moves work to outside sources such as contractors.

Contingent Workforce Saves money for the organization due to • Lower costs • Increased flexibility in scheduling Examples include: • Part-time employees o Typically work less than 40 hours per week o Temporary employees o Also called "temps"

Slide 18

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Employed for short term assignments o Contract workers o Contractors are not employees o May be called freelancers, subcontractors or consultants

Contingent Worker Issues: Core employees often receive more generous amenities than contingent workers.

Contingent workers may perceive their treatment to be less favorable and view themselves as less critical to the organization.

What are they entitled to?

• Compensation • Training and development • Scheduling • Move to full-time?

Pay and benefits conflicts • Pay rates do not include benefits, causing perception problems.

• Contingent workers moving to full-time often find lower net pay when benefits and deductions are considered.

Classifying employees correctly Slide 19 Fair Labor Standards Act (FLSA) sets standards for many employment issues including pay and who is and is not an employee.

Department of Labor(DOL) and Internal Revenue Service (IRS) enforce employment relationship guidelines: • Behavioral: how much control does employer have over worker activities?

• Financial: how much control does employer have over pay, expense? reimbursement, purchase of supplies and other materials.

• Relationship: does a contract define the relationship, what types of benefits are provided, what promises have been made?

Offshoring Slide 20 Moving jobs to another country, usually for economic reasons.

• Lower labor costs • Lower production costs • Tax advantages • Weaker union environment • Favorable business climate with fewer regulations A variety of types of jobs have been outsourced including Human Resources.

Reshoring involves returning jobs to home country.

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Continuous Improvement Programs

Slide 21 Learning Outcome 7: Explain how HRM supports continuous improvement programs.

Continuous improvement involves constant efforts to provide better products and service to customers, with today’s definition of customer including everyone both external and internal to the organization.

Quality management Concepts have existed for over 50 years and include the pioneering work of W. Edwards Deming.

Key components of continuous improvement are listed in Exhibit 1-7.

• Intense focus on the customer • Concern for continuous improvement • Improving quality of everything the organization does • Accurate measurement of operations • Empowering employees Kaizen is the Japanese term for commitment to continuous improvement.

Work Process Engineering Involves radical, quantum changes to entire work processes.

Differs from the incremental change usually obtained through continuous improvement programs.

How HRM Can Support Improvement Programs • Helping employees cope with the emotional aspects of conflict and change • Providing skills training.

• Adapting HR systems, such as compensation, benefits, and performance standards.

Employee Involvement

Slide 22 Learning Outcome 8: Define employee involvement and list its critical components.

How Organizations Involve Employees • Organizational culture must support involvement.

• Top management must also support involvement.

• Employees at all levels will need to delegate some of their activities and responsibilities.

• Emphasis needs to be on participative management using group decision making • Involvement of employees on work teams.

Employee Involvement Implications for HRM HRM must provide training to help empower employees in their new roles.

Involvement programs can achieve greater productivity, as well as increased employee loyalty and commitment.

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Other HRM Challenges

Slide 23

Learning Outcome 9: Outline emerging challenges facing HRM. To be honest, it isn't necessary to look any further than your favorite news source to find emerging challenges. They change every day. Your students will have their own list, but let's start with this one.

Economy Recessions mean layoffs.

• HR professionals are confronted with challenges that accompany a recession with layoffs, lower morale, worker resentment, and the need to retrain those that remain.

• The benefit of a recession is that higher unemployment makes it possible to attract and hire better qualified people when the need arises.

Economic recovery is often slow and uneven.

• Employers may be cautious about hiring.

• Contingent workers may be utilized.

• Labor shortages may exist for some skills in some areas.

Workers may need retraining to cope with either recession or recovery.

Mergers Involve two or more organizations joining in ownership.

Acquisitions involve one organization taking ownership and control of another.

Used for financial gain: • Entering new markets • Acquiring technology or patents • Achieve economies of scale HR responsibilities • Communication • Facilitate culture • Merge workforces Labor Unions Employees organize to secure better wages, hours and working conditions.

HR typically would rather not have to deal with employee unions.

Unions are on the decrease in the U. S. except for the public sector and service jobs.

Covered in depth in chapter 14 Ethics Ethics is a set of rules or principles that defines right and wrong conduct.

“Right” and “wrong” are often difficult to distinguish.

Code of ethics state an organization’s primary values and the ethical rules it expects organizational members to follow.

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Chapter 1: The Dynamic Environment of HRM Sarbanes - Oxley (SOX) Established in 2002 after colossal ethical failures resulted in bankruptcy of Enron and Worldcom.

HRM is largely responsible for ethical training.

Class Activity: Ethical Issues in HRM - Guidelines for Acting Ethically page 19 provides practical guidelines for making ethical decisions that avoid embarrassing problems for people and businesses. As a class activity, use a recent newsworthy example of unethical behavior and apply each of these six guidelines.

Can the action by justified by any of them?

Sustainability Involves responsible and ethical ways of • Living • Doing business • Employing individuals Individuals prefer to work for employers they perceive to support sustainability.

HRM helps achieve sustainability by promoting: • Energy conservation • Recycling and other "green" initiatives • Ethical business practices • Community involvement and volunteer activities • Sustainable production resources • Safe workplaces • Inclusive culture Class Activity: Ethical Issues in HRM - Everyday Ethics page 21 Students often find it difficult to relate to examples of unethical behavior by people in large corporations or government. After reading these "everyday" examples of unethical but not illegal behavior by managers or owners, ask students to provide their own examples and explain how HR could provide ethical training to prevent the behaviors and the undesirable results of those behaviors.

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Chapter 1: The Dynamic Environment of HRM

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning outcomes. Suggested answers follow this introduction.

Reviewing Important Concepts: Chapter review questions aligned with chapter learning outcomes. Designed to require critical thinking skills.

Evaluating Alternatives: Thought provoking questions that require students to apply chapter concepts and consider the purpose, application and consequences of HRM decisions from different perspectives. Aligned with chapter learning outcomes.

Research and Communication Skills: HR managers need a variety of skills, but one of the most important may be the ability to keep current. In the words of a wise HR Director, "Having your certification is good, but that knowledge is only current for so long. My question to new HR professionals is 'Can you do the research?'"

These activities require students to research HR best practices and how they are implemented in local or global organizations, and exercise communication and presentation skills so necessary for success as an HR professional. Activities vary in the type of research and presentation required, but evaluation forms or rubrics may be used to communicate expectations and facilitate easier grading. The form below can be accessed on the website and contains basic elements for grading activities. You may wish to customize it by changing requirements or adding point values.

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Activity Evaluation Form Objective/Criteria

Performance Indicators Below Requirements

Needs Improvement

Meets Expectations

Exceptional

Length

Insufficient length to Length significantly discuss issues and apply under minimum. relevant concepts.

Adequate length to Length requirement fully discuss issues and used carefully to apply relevant concepts. provide excellent On the low side of content. length requirement.

Format

Many errors

Few errors in grammar Error free punctuation, spelling or typos.

Professional quality product.

Research

Relevant concepts are not applied or are applied on a surface level that does not indicate depth of understanding beyond knowing the definitions.

Concepts from the text are mentioned, but explanation and application indicate a minimal level of understanding of relevant concepts and issues.

Relevant concepts from the chapter material are applied in adequate depth to indicate understanding of the concepts and issues.

Thoughtful and insightful discussion of the concepts learned in chapter material as they apply to the activity.

Presentation

Paper or presentation contains many errors and lacks professionalism or was not presented.

Paper or presentation contains errors or shows a lack or preparation that distracts from the message.

Paper or presentation is Paper or presentation is free of errors. creatively and professionally presented.

Making a Difference Service Learning Projects: Service learning activities help students practice HR skills, gain experience, develop a stronger resume, increase employability and demonstrate a commitment to sustainability. These activities can be assigned to groups or individuals. A sample assignment with requirements and grading materials is available as a download from the text website.

Case Applications: Each chapter includes two cases in the textbook and two continuing cases on the textbook website.

Case A in the text is a hypothetical case. It is closely aligned with the chapter learning outcomes and requires students to use critical thinking skills to apply concepts.

Case B is pulled from the headlines and court cases. It is also closely aligned with learning outcomes and requires students to use critical thinking skills.

Case C is the popular Team Fun! continuing case involving brothers running a sports equipment manufacturing company. Freshly updated and aligned with chapter learning outcomes and some new thought provoking questions.

Case D is a new continuing case that follows a couple as they build an online active wear company and cope with the challenges and changes of managing human resources in a growing start-up.

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Reviewing Important Concepts 1.

How have globalization and changes in workforce composition contributed to the need for understand diversity and inclusion in our organizations? (LO 1, 4, 5) HR managers to acquire a global skill set that involves managing a global workforce, understanding a wide variety of cultures and legal environments and economic systems.

HRM needs to address language differences in a multi-lingual workplace, cultural variables such as status differentiation, societal uncertainty, assertiveness, and individualism. Group and individual conflict can be caused by differences in background, language, and customs.

Varied personal characteristics of workforce within the organization require many organizations to go beyond EEO laws to also recognize differences in politics, spirituality, socioeconomic status, family lifestyle, culture in addition to legally protected characteristics.

Inclusion refers to a culture of acceptance. Workforce changes require HRM to create a culture that welcomes diverse groups of people by addressing different lifestyles, family needs, and work styles. Attract and maintain a work force that is reflective of the diversity in the general population.

2.

Describe ways HRM uses HRIS to provide information and services more efficiently. (LO 2) Human Resource Information Systems (HRIS) automate many HR tasks such as payroll, benefits, employee handbooks, training, applicant tracking, online screening and testing for applicants. Services can be delivered to employees on demand, globally and in a cost effective way.

3.

Explain the legal issues relevant to the workplace and HRM. (LO 3) Court decisions, federal, state and local laws all affect HR and change quickly. Legal compliance in the areas of recordkeeping, reporting, safety monitoring, communicating employee rights and Equal Employment laws is a major responsibility.

4.

Explain the roles HRM plays in dealing with current employment challenges such as mergers, offshoring, the economy, and ethical issues. (LO 9) Mergers, offshoring, and the economy all can lead to layoffs. Morale suffers as employees who survive layoffs feel fear and resentment. Retraining becomes necessary as retained workers assume increased responsibilities. Benefits may need to change to save money and key employees may be difficult to retain as they begin to look for employment with another firm they consider to be more stable. HR professionals can assist employees in all of these processes by providing a well-planned communication strategy. Employees want honest, current information that includes future goals of the

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Chapter 1: The Dynamic Environment of HRM organization, anticipated benefits and a preliminary timeline for future changes. Multiple methods of communication are necessary in these situations.

5.

What is the purpose of a continuous improvement program? What role does HRM play in assisting continuing improvements? (LO 7) Continuous improvement involves constant efforts to provide better products and service to customers, with today’s definition of customer including everyone both external and internal to the organization.

HRM assists by helping employees cope with the emotional aspects of conflict and change, providing skills training and adapting HR systems, such as compensation, benefits, and performance standards.

6.

What are the necessary ingredients for a successful employee involvement program?

(LO 8) Organizational culture and top management must support involvement. Employees at all levels will need to delegate some of their activities and responsibilities. Involving employees on work teams. Emphasis on participative management using group decision making. HRM must provide training to help empower employees in their new roles.

7.

Explain what ethics are and how organizations and HRM can promote ethical behavior. (LO 9) Ethics is a set of rules or principles that defines right and wrong conduct, what is considered "right” and “wrong” in the organization. HRM can establish ethics training and a code of ethics that states an organization’s values and the ethical rules it expects organizational members to follow.

Evaluating Alternatives 8.

“Diversity and inclusion is nothing new. Thousands of immigrants came to the United States in the early 1900s and they integrated into the workplace just fine.

Pay them a fair wage and treat them equally. That's all workers want.” Evaluate this philosophy of managing workplace diversity and explain your personal opinion on the best way to manage workforce diversity and inclusion. (LO 1, 4, 5, 9) Although workers welcome fair wages and equal treatment, much has changed in the last 100 years. Workers have more rights. Employers need workers with skills that didn't exist 100 years ago. Organizations are global in reach. Expanded views of diversity require employers to consider employee expectations of quality of life, requiring HRM to adapt workplaces in order to recruit and maintain the best talent. Economic fluctuations, labor unions, ethical issues and sustainable work practices all complicate the employer employee relationship.

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Chapter 1: The Dynamic Environment of HRM 9.

Juliet is the owner of a design firm that survived the recession, but just barely. Her firm has grown 25% each of the last 2 years, but she is wary of hiring any full-time employees. “Firing half of my staff was the most stressful thing I've ever done” she explained. “I'll just keep hiring contract designers. There's a lot of good talent out there with fresh ideas and they don't have any expectation of a permanent job.”

Evaluate Juliet's point of view and explain the advantages and disadvantages of using contingent workers instead of full-time core employees. Explain what you think she should do. (LO 6) Students may see the value of any one of several alternatives including agreeing with Juliet and relying heavily on contingent workers, reducing or eliminating the use of contingent workers, hiring full-time workers.

Advantages of using contingent workers including cost savings and increased flexibility should be mentioned as well as the disadvantages of contingent workers perceiving their treatment to be less favorable and view themselves as less critical to the organization.

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Grading can be simplified by using the grading rubric above.

Activity Summaries 10.

Students will research the HRM activities of a local organization with a visit or by using their website. All HRM functions are to be observed along with their use of technology.

Findings are presented with presentation slides. (LO 2, 6)

11.

Technology based businesses require knowledge workers and this activity requires students to investigate effect of technology on the human resource aspects of a technology-based business (e.g., Barnes and Noble, Verizon, Facebook, Apple, or Netflix). Findings are presented with presentation slides. (LO 2)

12.

Workplace diversity videos of two different employers are researched and presented. (LO 5)

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on Selection are a variety of projects that involve volunteer activities at your college. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

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Case Application 1-A: Growers' Choice A boring internship suddenly gets interesting when the antiquated, but common HR policies and practices of an organic grocer collide with a manager's attempt to do the right thing. Students are asked to diagnose what went wrong, what needs to be done to fix it and how technology can be used.

Questions: 1.

In what ways could HRIS software make the HR department more efficient at Growers' Choice? How could it have prevented the problem with the falsified time sheets? (LO 2) HRIS software could automate the process of recording time and requests for time off as well as all payroll functions. It could also handle applicant tracking, training and development, performance management, payroll, benefits administration, succession planning and talent management. Using an HRIS system could have prevented the problem in a couple of ways. Either the bookkeeper could have used the software remotely from home, or more likely, the software would have eliminated the need for her position entirely.

2.

Explain the legal and ethical issues involved in the case. (LO 3, 9) Growers' Choice is legally obligated to keep track of worker's hours and pay. The lack of security of their current paper system may create data security and employee privacy issues. Their treatment of the injured employee creates ethical and possibly legal issues.

Failing to accommodate her injury shows a lack of inclusion for people with disabilities and may also violate the Americans with Disabilities Act which will be discussed in depth in chapter three. The manager's choice to lie to upper management about taking the documents out of the store is definitely unethical, but students may feel that his actions were justified, leading to a discussion of when unauthorized employee actions are unethical or ethical. Grower's Choice decision to press charges also presents interesting ethical issues.

3.

How can Growers' Choice improve their views of diversity and work/life balance?

(LO 5) Recognizing the need to accommodate workers with disabilities and understanding how to adapt the workplace for different employee needs for work/life balance is necessary.

4.

Research: Examine the Careers section of two to three supermarket chains in your area. What evidence do you find of HR use of technology?

Examples may include online applications, job search, online job descriptions, applicant tracking that involves creating a profile for job searches, recruitment videos, realistic job preview videos.

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Case Application 1-B: A War for Talent The U.S. Navy may not be the first employer that comes to mind when you think of employers that are making efforts to help employees with work/life balance issues. However, the Navy has made improvements to maternity benefits, parental leave, and flexible work options with the goal of increasing retention and recruitment. Realizing that they are in competition for the most talented women and men in Generation Y, the Navy must be seen as competitive with the private sector on the issues that Generation Y values: flexibility and family over career and employer.

1.

Contrast the differences and similarities of the challenges of managing the human resource functions in the Navy from the public sector employers.

The Navy faces the same challenges as the public sector, including: recruiting new employees for the organization, training those employees in specialized positions, assisting them with attaining their educational goals and managing their careers, encouraging the retention of those employee and having shortages of employees trained in certain areas and a surplus of employees trained in other areas. The Navy is also similar to the public sector in that routine HR functions such as: performance appraisal, compensation, discipline, dismissal and retirement are also present. The Navy differs from the private sector in that the number of employees recruited in the former case is on a much larger scale, training is very specialized, retention commitments are for specific time periods in the Navy and if Navy employees are leaving, they are encouraged to transfer to reserve status or a civilian position within the Navy. These varied options are not available for public sector employees.

2.

How do the economic, technological and cultural environments affect human resource management in the Navy and other branches of the armed forces?

Recent technological changes have allowed the Navy to have a strong social media presence on such sites as Facebook and Twitter. These sites are one source that the Navy has used to address such issues as diversity. In addition, the Navy has responded to the changes in the cultural environment with a strong diversity mission statement and affinity groups that allow minority and special interest group to share concerns. An understanding of the impact of the above economic, technological and cultural environments on HR issues in the Navy can be extended to other branches of the armed forces.

3.

What role does work/life balance play in recruiting and retention?

Human Resources should help the organization identify the need to modify, create and support work/life practices. This is done, in part, by making sure HR management understands the diverse needs of the workforce. By being attuned to the needs of the company’s workforce, an organization can migrate to a culture that supports these needs while still accomplishing its goals. Flexibility around work schedules is key. Supporting a “new” way of working that is not tied to traditional daily work hours and recognizing an employee has a life away from work, will develop a work/life balancing culture and help to recruit and retain employees who need this flexibility in their work/life.

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Chapter 1: The Dynamic Environment of HRM Since the culture of an organization flows from the top, highly visible leaders should set an example regarding work/life balance issues, these examples that are set will then be followed by employees. Without actual actions by others of these examples, it is highly unlikely that employees will believe work/life balance is valued, regardless of what is included in any policy statements, training programs, or the like. If employees believe work/life issues are valued, they are more likely to want to accept a job and then remain in an organization that has such values.

4.

Research: How well have the Navy's recruiting and diversity initiatives worked?

Explore the Navy's recruiting and diversity websites as well as news and current events for evidence of successes and failures in their efforts to manage diversity and hire and retain people with critical skills.(LO 5) The Navy's website, navy.com has a career section with many efforts to connect with diverse groups including interviews with sailors of diverse backgrounds. Other sources of information about the success of their efforts include the Department of Defense, Defense Equal Opportunity Management Institute, Navy Live ( the Navy's official blog), and Navy Times.

Online Case Application 1 - C: Team Fun! Questions: 1. Explain how TEAM FUN! is currently affected by globalization and globalization issues they may face in the future. (LO 1) 2. How does government regulation affect Team Fun? (LO 3, 4, 9) 3. What other external factors and challenges in chapter 1 seem most relevant to Team Fun? (LO 1, 2, 3, 4, 5, 6, 9) 4. How would employee involvement and continuous improvement programs benefit Team Fun! and help Kenny and Norton get in touch with what's going on? (LO 7)

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Chapter 2: Functions and Strategy

Chapter 2: Functions and Strategy Learning Outcomes After reading this chapter, students should be able to: 1. Identify advances in management leading to modern human resource management practices.

2. Describe the functions of management.

3. Explain the role of human resource management in the strategic management process and how strategic human resource management practices align with organizational strategy.

4. Outline the components and the goals of the staffing, training and development, motivation and maintenance functions of human resource management.

5. Explain the structure of a typical human resource management department.

6. Discuss talent management and how it benefits organizations.

7. Outline current trends and opportunities in human resource management.

8. Explain how human resource management practices differ in international settings.

Chapter Overview Billy Beane transformed baseball by rethinking the way statistics were used to evaluate talent, resulting in an amazing turnaround for the Oakland A's. This chapter opener and the movie "Moneyball" are great illustrations of how strategy and HR practices can be linked to make impressive gains toward organizational goals.

The chapter continues by stressing the importance of human resources to all organizations, and the fact that human resource management is an integral part of the broader practice of management is explained. The increasingly important role and professional status of HRM in organizations is presented, and an overview given of the four HRM functions -- staffing, training and development, motivation and maintenance. Typical organizational structures and work roles for HRM departments representing each of the four functions are summarized, as well as trends toward outsourcing and shared services. Talent management is introduced.

Additional features of this chapter: Exhibits 2 - 1 Strategic Management 2 - 2 Costco Mission Statement 2 - 3 Strategic HR Aligns with Organizational Strategy 2 - 4 Key HR Metrics 2 - 5 HR Dashboard 2 - 6 Human Resource Management Primary Activities 2 - 7 Training and Development Activities 2 - 8 Selected HR Salaries

Page 1

Chapter 2: Functions and Strategy Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning outcomes. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

•

Diversity Topics - How Nike Does It page 35 Nike's mission statement is a bit provocative at first, but it's a way to get student's attention.

•

Tips for Success: HRM Certification page 41 HR certification can open doorways for those who take time (and money) to pursue it. The certifications of SHRM, HRCI and ATD are explained.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 2 concepts: •

Introductory “Bingo”: Each box in a Bingo grid format can represent a personal attribute or experience relevant to HR (e.g., “wants to work with people,” “is a business major,” “speaks a foreign language”). Students mingle with each other, putting an individual’s name in a box if the student matches the description. Each name can only be used once. The first student to get six names across, down, or diagonally is the “winner” of the Bingo game. This is a great ice-breaker. Box descriptions can be used as the basis for an introductory discussion; e.g., you can discuss the nature of HR work, the education required, the relevance of foreign languages, etc.

•

This is an excellent time to talk about HR career paths and the relevance of different majors. The profession of HR has many career paths, and HR practitioners come from a variety of academic and work backgrounds. In most introductory HR classes you will have individuals from a variety of majors who often do not fully understand the similarities, differences, and ways that different academic areas complement each other.

Consider assigning this as a brief interview of a local HR professional or member of their employer’s HR organization.

•

If your school has a chapter of the Society for Human Resource Management (SHRM) this is a good time to introduce students to the benefits of a professional association. If you do not have a chapter, perhaps there may be a local chapter which welcomes students at its meetings or which will provide a speaker who can give an overview of HR activities in the area. Make sure students investigate student memberships, which usually have discounted membership fees.

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Chapter 2: Functions and Strategy

Chapter Outline and Lecture Suggestions Introduction

Slide 3

HR is a subset of the science and practice of management, but it is gaining in recognition and importance as a valuable strategic partner.

HR skills are important to organizations of any size.

Evolution of Management

Slide 4 Learning Outcome 1: Identify advances in management leading to modern human resource management practices.

Management has evolved significantly in the last 100 years from the view that workers only had value for their physical labor to our modern system of laws and practices that value talent.

Significant Advances in Management Frederick Taylor and scientific management Pioneered worker screening and training.

Productivity tracking.

Still used today in a variety of industries.

Hugo Munsterberg Matching worker personality and abilities to jobs.

Improved testing, training and performance evaluation.

Mary Parker Follett Emphasized organizations as communities.

Employee groups Community involvement Elton Mayo and Hawthorne Studies Relationship of supervisor and work group influence productivity.

Informal work groups affect worker performance.

Functions of Management

Slide 5

Learning Outcome 2: Describe the functions of management.

Management achieves objectives of the organization with and through people. The major responsibilities of managers are divided into four major functions.

Planning Establishing objectives and determining what needs to be done to accomplish them.

Strategic planning and strategic HRM are linked.

Organizing Determining what activities must be completed to accomplish goals.

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Chapter 2: Functions and Strategy • • • • • •

Equipment Work groups Financial resources Technology Supplies Services

Leading Inspiring effort Establishing and maintaining culture Controlling Monitoring activities Measuring progress toward goals.

Comparing results to objectives.

The Role of HR in the Strategic Management Process

Slide 6 Learning Outcome 3: Explain how HRM aligns human resource management processes and practices with organizational strategy.

Planning and strategy help organizations react quickly to changes in the external environment and actions of competitors.

Competitive advantage is a unique quality of the organization that is hard for competitors to imitate, such as a talented workforce.

Class Activity: Exhibit 2 -1 Strategic Management Process page 29 illustrates how the strategic process starts with analysis, develops strategies and implements those strategies.

This is a great opportunity to look up mission statements for familiar companies, such as your college or another popular enterprise and have students evaluate how well the steps in the process are executed.

HRM Department Responsibilities Transactional work Payroll Benefits Tactical work Performance coaching Conflict resolution Strategic work Aligning HR functions to support goals and strategy

Slide 7

Strategic Analysis Mission Mission statements describe why the organization exists.

Basis for strategic goals.

Slide 9

Page 4

Chapter 2: Functions and Strategy The chapter includes Google's mission statement. YouTube has many short videos that illustrate Google's talent management initiatives.

Core Values and Culture Core values are beliefs about behavior and ethics Culture is how values are demonstrated on a daily basis, "the way we act around here."

• Work ethic • Dress • Speech • Humor • How outsiders are treated Communicated and maintained through HRM activities: • Employment brand • Orientation • Discipline • Rewards Analyze the Environment SWOT Analysis looks at internal and external strengths and weaknesses.

• Strengths - internal • Weaknesses - internal • Opportunities - external • Threats - external Core competencies are unique skills and strengths of the organization.

Strategy Formulation Slide 11 Corporate Level Strategy includes the organizational goals for the future.

• Growth • Restructuring Business Level Strategies involve building a competitive advantage for the business unit.

Functional Strategies establish the way functional units support corporate level strategy.

Strategy Implementation Slide 12 HR designs jobs that support strategy with necessary KSAs: • Knowledge • Skills • Abilities Strategic Human Resource Management establishes a connection between the organizational goals and activities of employees.

HR activities and decisions aligned to support strategy: • Recruiting • Hiring • Onboarding Page 5

Chapter 2: Functions and Strategy • • • • • •

Training Performance management Career planning Development Compensation Benefits

Evaluating Results Slide 13 An old management saying goes "What gets measured, gets done."

• HRM metrics measure effectiveness of business and HRM practices.

• Dashboards are visual displays that represent metrics and allow quick interpretation.

• Benchmarks are comparisons to metrics of other businesses.

Exhibit 2 - 4 Key HR Metrics on page 35 lists some key says that HR can measure the results of important activities.

Exhibit 2 - 5 HR Dashboard on page 35 illustrates a how HRIS provider SAP graphically represents metrics for employee turnover and succession planning.

Diversity Topics: How Nike Does It on page 35 explains the diversity and inclusion efforts of Nike and asks students what metrics would be appropriate to measure this strategic initiative.

The HRM Functions

Slide 15 Learning Outcome 4: Outline the components and the goals of the staffing, training and development, motivation and maintenance functions of human resource management.

Every manager is an HR manager with responsibility for all four functions.

Exhibit 2 – 2 Human Resource Management: Primary Activities on page 36 shows the four primary functions of HRM: staffing, training and development, motivation, and maintenance along with some of the important activities and responsibilities of each function.

Staffing Function Slide 16 Goal: To locate competent employees and bring them into the organization.

▪ Employment planning ensures that staffing will contribute to the organization’s mission and strategy.

▪ Recruitment is the process of attracting a pool of qualified applicants that is representative of all groups in the labor market.

• Employment branding assists candidates in selecting an employer they perceive to be a good fit with their values, personality, and work ethic.

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Chapter 2: Functions and Strategy ▪ ▪

Job analysis is used to determine the specific knowledge, skills, and abilities (KSAs) needed to be successful in a particular job and to define the essential functions of the job.

Selection refers to the process of assessing who will be successful on the job and the communication of information to assist job candidates in their decision to accept an offer.

Training and Development Function Slide 17 Goal: To have competent, adapted employees who possess up-to-date skills, knowledge, and abilities needed to perform their jobs successfully.

• Orientation and socialization help employees to adapt and become 100percent performers.

Activities include: • Employee Training • Employee Development • Career Development • Organization Development Exhibit 2 - 7 Training and Development Activities on page 37 lists and explains how HRM uses training and development to meet strategic needs.

Motivation Function Slide 18 Goal: To have highly productive, competent, and adapted employees with up-todate skills, knowledge, and abilities.

• Motivation is a multifaceted process that involves understanding complex human behavior to influence employees so that they will exert high energy levels.

• Managing motivation includes job design, access to productivityenhancing resources, management and worker relationships, setting performance standards, and establishing effective compensation and benefits programs.

Maintenance Function Slide 19 Goal: To retain highly productive, competent and adapted employees, with up-todate skills, knowledge, and abilities, who are willing to maintain their commitment and loyalty to the company.

• Employees are more likely to be productive, committed and loyal if you provide a safe and healthy work environment and care for their well-being.

• Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.

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Chapter 2: Functions and Strategy

Structure of the HR Department

Slide 20 Learning Outcome 5: Explain the structure of a typical human resource management department.

Employment Employment specialists coordinate the staffing function • Advertise vacancies • Complete initial screening • Conduct interviews • Background checks • Make job offers based on management input • Complete paperwork related to hiring.

Training and Development Training and development specialists help employees maximize their potential, serve as internal change agents to the organization, and provide counseling and career development.

Compensation and Benefits Compensation and benefits staffs establish objective and equitable pay systems and design cost-effective benefits packages that help attract and retain highquality employees. Benefits administrators also help employees effectively utilize their benefits, such as by providing information on retirement planning.

Employee Relations Employee relations activities are concerned with • Effective communications among organizational members.

• Fair application of policies and procedures.

• Resolving workplace conflicts.

• Investigating complaints.

• Ensuring due process throughout disciplinary actions.

• Coordination of activities and services that enhance employee commitment and loyalty.

• Reinforcing organizational culture.

Talent Management

Slide 22 Learning Outcome 6: Discuss talent management and how it benefits organizations.

Talent management focuses on getting and keeping the best talent available as a competitive advantage.

Talent Management "Deliberate and ongoing process that systematically identifies, assesses develops and retains talent to meet ...organizational objectives." that involves: • Workforce planning Page 8

Chapter 2: Functions and Strategy • Recruiting • Applicant tracking • Onboarding • Performance management • Compensation • Workforce development • Career and succession planning.

Is a Career in HR for Me? Demand for HRM professionals is expected to grow through 2022.

Positions include: • Assistant • Generalist • Recruiter • Specialist • Executive Professional Certification

Slide 23

Slide 24

Class Activity: Exhibit 2 - 8 Selected HR Salaries page 42 Survey students on their opinions of the HR salaries listed. Do they create interest in HR careers? Compare them to salaries of similar positions in your area on sites like Glassdoor, Payscale or Indeed.

Class Activity: Tips for Success - HRM Certification page 41 HR certification has undergone a controversial transition in recent years. SHRM dropped affiliation with its certification branch, the HRCI with little notice and launched its own certification. Ask SHRM members or local SHRM chapter officers to discuss their views

HR Trends and Opportunities

Slide 25 Learning Outcome 7: Outline current trends and opportunities in human resource management.

Outsourcing HR Functions There is a trend to outsource some or all HR functions.

• Staffing agencies to perform the recruiting and selection activities.

• Consulting firms to provide training services.

• Financial organizations to handle benefits administration.

Professional Employer Organization (PEO) Assumes all HR functions of a client company by hiring all of its employees and leasing them back to the company.

• May allow access to more cost effective popular benefits which helps with recruiting and retention.

• PEO handles legal compliance and reporting.

Shared Services Page 9

Chapter 2: Functions and Strategy Specialized HR services, like compensation and benefits, are handled by staff in a centralized location, while other functions, like training, are handled in the divisional business unit.

The format of shared services models varies depending on the needs of the organizations.

They may include: • Center of Excellence that handles a wide range of activities.

• Service Centers that handle transactional HR duties, such as payroll.

• Business Partners who work directly with business unit mangers in strategic roles.

HRM in a Small Business Slide 26 HRM in a small business requires keeping current in the field, especially regarding laws and regulations that may or may not affect the organization.

Approaches vary depending on the needs and size of the business • Owner-managers may perform HRM functions • HRM activities may be outsourced • Generalist may handle all the HRM functions

HRM in a Global Environment

Slide 27 Learning Outcome 8: Explain how human resource management practices differ in international settings.

HRM functions are more complex when employees are located around the world.

Consideration must be given to • Foreign language training • Relocation • Orientation processes • Diverse cultural values HRM also involves considering the needs of employees’ families when they are sent overseas.

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Chapter 2: Functions and Strategy

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning outcomes. Suggested answers are provided.

Reviewing Important Concepts 1.

Explain which of the advances in management seem most and least important in the evolution of HRM. (LO 1) Students may have difficulty choosing between the advancements explained in the chapter listed here. Encourage them to explain their choices.

• Scientific management advanced by Frederick Taylor improved worker productivity and income by creating scientific principles for the best way to do any specific job.

This required screening workers for ability and training for skill. This certainly created the need to formalize training, an important HR function.

• Hugo Munsterberg advocated matching jobs to personalities and improved testing, training and performance management. Recognizing the value of a worker's personality in addition to physical attributes as a function of motivation required additional emphasis on the evolving role of HR. • Mary Parker Follet emphasized creating a community within the workplace to improve cooperation and cohesiveness. Follet's work seems to add development to the training function in addition to adding to motivation and maintenance functions.

• The Hawthorne studies illuminated the relationship between motivation, productivity and the relationship between workers and management, clearly changing views of motivation and engagement.

• Frederick Herzberg and Abraham Maslow introduced additional theories about employee motivation and W. Edwards Deming demonstrated ways to improve productivity and quality.

2.

How is the role of HR demonstrated in each of the four management functions? (LO 2, 3) The four functions of management are planning, organizing, leading and controlling.

• Planning deals with establishing goals. HR follows Federal legislation which requires that organizations plan to hire the best qualified individuals while also following the law.

• Organizing deals with accomplishing those goals by structuring the working environment and placing (organizing) employees in the right positions to accomplish these goals.

• Leading ensures that the right people are on the job with appropriate skills and motivating them to levels of high productivity. HR oversees this by making sure employees are trained, as well as the continuous personal development of each employee.

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Chapter 2: Functions and Strategy •

3.

Controlling deals with monitoring activities to ensure that goals are met. HR must ensure that employees maintain their productive affiliation with the organization, by continuously monitoring the organization to make sure that this is being done.

Explain the purpose of HRM in an organization.(LO 3, 4, 5, 6) Human resource management is the people component of management. As a staff function, HR helps line managers with staffing (getting people); training and development (preparing people); motivation (stimulating them to put forth their greatest effort); and maintenance (keeping good employees).

4.

What role does HRM play in the strategic management process? (LO 3) HR assists the organization in evaluating the current status, gives input into future opportunities, develops plans to align human resources practices such as hiring, training, compensation and benefits all support organizational goals. Different corporate level strategies such as growth or restructuring require different actions on the part of HR to grow or reduce workforce. Business level strategies require HR to assist in creating competitive advantage by aligning policies and procedures that support the strategy. As a functional unit, HR has responsibility to recruit, hire, train, develop and compensate employees in ways that support strategy.

5.

Explain ways that a talent management strategy improves an organization's ability to attract and keep talented employees (LO 6) Talent management focuses HR strategy and efforts on identifying, assessing, developing and retaining talent that can meet the organization's needs and objectives. It also involved heavy use of HR technology and quantitative measures called metrics to allow HR to evaluate the effectiveness of many practices including who well the organization manages talent. Metrics can be compared to benchmarks to determine if progress is being made toward goals such as reducing expenses and retaining employees. HRIS software and dashboards make these evaluations more convenient and accurate.

6.

Which of the HR functions seem to be most important and why? (LO 4) The functions of staffing, training and development, motivation and maintenance are all quite important and interdependent. Students may make effective arguments that any one is the most important, but without staffing, the others would irrelevant, and if an organization is careless in the staffing function, the other functions are made much more difficult. Use this opportunity to question their reasoning.

Evaluating Alternatives 7.

Aiden, founder of a growing company that creates software to help small businesses manage their money sees no reason to create a mission statement or undergo a strategic planning process. He states "It's my company. The mission is whatever I P a g e 12

Chapter 2: Functions and Strategy say it is. We work hard, play hard and don't have time to sit around answering a lot of questions about where we want to be in five years. We want to be the "go-to" for startups that want to grow. Period!" Evaluate Aiden's point of view. What should a strategic plan for his company include? (LO 3) At some point, the organization will outgrow Aiden's ability to communicate his vision to all stakeholders. His approach is similar to many entrepreneurs, but the reality is that putting the guiding principles into a more accessible and permanent form such as a mission, vision or values statement is an important step in effective strategic planning.

His plan clearly includes growth. Deciding early on how much they want to grow and how fast will help all organizational functions including HR to effectively plan for the resources necessary.

8.

You have been offered two positions in HRM. One is a generalist position in a smaller business, and one is a recruiting position in a large corporation. Explain which of the two jobs you would prefer and why. Which will provide a better foundation for an HR career? Opportunities for advancement? Defend your answers. (LO 4, 5) Generalists have great opportunities to gain experience in a variety of HR function areas such as hiring, training, evaluating, communication and administering benefits.

Recruiters have opportunities to learn about a variety of organizational functions, jobs, pay and structure. Student preference may depend on the desire to learn about HR or the business in general.

Research and Communication Skills 9.

Students will visit and HRM department and interview an HR professional about his or her position. A summary of the interview is required. No format is specified for the summary. (LO 4, 5, 6, 7)

10.

After explaining the influence of the Hawthorne Studies on HRM, students provide three examples of HRM practices in three specific organizations that seem linked to the findings of the studies. A short presentation with slides is required. (LO 1)

11.

Students research the SHRM website for student membership options and services.

Inquire about attending a local meeting and report back to the class. (LO 7)

12.

Research HRCI and ATD professional certifications and report back to class with presentation slides. (LO 7)

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter involve helping non-profit organizations create an event P a g e 13

Chapter 2: Functions and Strategy tailored to its mission or strategy. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 2-A: Seeds of Change at Grower's Choice Grower's Choice is a regional food store chain that plans rapid growth and was recently advised to begin a strategic planning process to guide HR policies and practices and prepare for growth.

Armed with a new mission statement and list of core values, students are asked to apply strategic HR and talent management concepts to support the mission and values of the growing company.

1.

If Growers' Choice strategic mission includes rapidly increasing the number of stores, explain the implications this has for the human resource department.(LO 3) HR has primary responsibility for recruiting, screening, hiring and training new employees. If Grower's Choice plans to grow quickly, a strategic plan for the positions that need to be filled, the knowledge, attitudes and skills necessary for those positions and the training necessary to make the new hires effective their positions must be considered.

Developing current employees to advance into the new management openings will be necessary as well as determining how to retain current employees. HR may need to increase their own staff and update processes and technology.

2.

How should Grower's Choice mission and values statements influence Alonzo as he restructures the HR department? (LO 3, 4, 5) The mission or values reflect the core values of the organization. HR should use them as guiding principles as they help develop a culture that establishes how organizational members treat each other and other stakeholders on a daily basis. The mission or values also important in developing HR policies and practices that support the core values.

3.

Explain ways each of the four HRM functions can contribute to supporting the mission and values. (LO 4) • • •

•

4.

Staffing: Employment planning, branding, job analysis, screening and selection should all be executed with the mission and values in mind.

Training and development: Training, employee development, career development and organizational development should all promote the core values.

Motivation: Intrinsic rewards should provide motivation because jobs have been designed to provide personal satisfaction from work accomplishments, responsibility and a sense of feeling appreciated. Extrinsic rewards such as pay should reward performance that supports the mission and values.

Maintenance: Benefits, work-life balance and effective communication with employees should be designed to support mission and values.

Describe the ways that a talent management strategy can benefit Grower's Choice.

(LO 6)

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Chapter 2: Functions and Strategy Talent Management will promote workforce planning that makes sure that Grower's Choice creates an effective recruiting program, tracks applicants through the hiring process, establishes an onboarding program that supports the culture, evaluates employee performance, pays employees fairly, develops employees to advance in careers and identifies high potential employees to move into management.

5.

Evaluate the option of outsourcing the HR function for Grower's Choice. (LO 7) Advantages: Organizations can outsource one or all HR functions, outsourcing may allow organizations to provide more generous benefits, attract better job candidates and more effectively handle government regulations. Disadvantages: A Professional Employer Organization may not be as responsive to organizational needs or culture.

6.

Research: Compare the mission and values of Grower's Choice with another food store chain such as Wegman's, Publix, Meijer, Albertsons or your favorite local supermarket. What evidence do you see on the website that HR practices reflect the organizational strategy? (LO 3, 4, 5) Encourage students to first look at the organization's mission or values, then go to the career section to find examples of policies or activities that support the mission.

Examples may include testimonials or videos of employees describing the culture and opportunities, online job searches, applications that allow applicants to establish a profile that connects with applicant tracking or talent management software, explanations of work-life balance programs or family friendly benefits.

Case Application 2-B: Hungry For Productivity: Frito-Lay Links Strategy With Job Design 1.

How are recruiting, job design and organizational strategy at Frito-Lay linked?

How does one influence the other? (LO 3, 4, 5) Recruiting and job design should focus on the people, skills and tasks necessary to accomplish Frito-Lay’s organizational strategy. Redesigning the RSR jobs so they were better able to keep stores stocked and negotiate for additional shelf space made the products more available, benefitting customers, RSRs and the company.

Prior sales experience became a priority in recruiting and screening applicants.

The RSR job was redesigned so the high volume route drivers had hourly assistants, enabling them to stay on schedule.

RSRs on low volume routes to secure additional display space and RSRs on high volume routes to set up their displays and delivery earlier in the day.

When jobs are designed in ways that help employees to achieve the organizational strategy, the organization is more likely to be successful and employees will be more motivated.

2.

If you were an RSR at Frito-Lay, which of the changes would you find most P a g e 15

Chapter 2: Functions and Strategy beneficial? Least? How would the changes affect your motivation? (LO 6) Additional sales training, as well as making hourly workers available to help in the high volume areas with stocking duties would be most beneficial. In addition, the tight driving and delivery schedules would be stressful and would require driving techniques that may reduce lag time but are dangerous – so additional training in driving under stressful conditions would be beneficial. The thing that would be least beneficial is having hourly workers who can only help with stocking, such workers should be trained to be more versatile and help with other duties. The additional sales training might be so focused, that it might not apply to any other organizations beyond Frito-Lay. If the changes increased RSR ability to increase sales and personal income, motivation may be affected.

Sales training that enabled RSRs to move up in the Frito-Lay organization, and changes that give the RSRs more control over how the job is done may increase motivation.

3.

Can all productivity problems be cured by better aligning job design with organizational mission? Why or why not? (LO 3, 4, 5) Analyzing any job and redesigning it to become more in tune with an organizational mission may not always solve productivity problems, especially in the long term. For the short term, organizations can redesign jobs and hire the appropriate individuals who might be motivate to complete the requirements of those jobs and aid the organizational mission. Long term however, these employees will need an organizational infrastructure and culture that supports the job redesign. In addition, external factors in the environment may cause the redesign to become obsolete or outdated. Finally, a job redesign does not often account for the human relations aspects of an employee. In the case, the redesign might work from a stark structural point of view but long term might be overwhelming for employees to continuously fulfill and they might feel resentful if the organization is making increased profits from the redesign without having them share in the additional profits.

4.

Research: How does Frito Lay recruit for RSRs? What online sources do they use?

Explore sites like Indeed.com and Glassdoor.com and read the reviews of applicants and employees. What evidence do you see that hiring is linked to strategy? (LO 3, 4, 6) Encourage students to go beyond Frito Lay's career site to explore any social media recruiting such as Facebook, Instagram, You-Tube, Twitter or any other currently popular sites for evidence of recruiting.

Online Case Application 2 - C: TEAM FUN Questions: 1. What role should Tony play aligning HR practices with TEAM FUN business strategy? (LO 3) 2. Which of the HR functions can be identified in Tony’s activities? (LO 4) 3. How should Tony structure the HR department if Kenny and Norton plan to continue the company's rapid growth?(LO 3, 5) P a g e 16

Chapter 2: Functions and Strategy 4. How can a talent management strategy help TEAM FUN? (LO 6)

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Chapter 3: Equal Employment Opportunity

Chapter 3: Equal Employment Opportunity Learning Outcomes After reading this chapter, students should be able to: 1.

2.

3.

4.

5.

6.

7.

8.

Explain how Title VII of the Civil Rights act of 1964 the Civil Rights Act of 1991 protect employees from discrimination and the exceptions that are allowed.

Outline the amendments, laws and executive orders that have expanded, limited and clarified equal rights in the workplace.

Discuss the role of the Supreme Court in clarifying and enforcing employment law and identify important cases decided by the court.

Explain how the Uniform Guidelines on Employee Selection Procedures and the concepts of adverse impact , disparate treatment and affirmative action help employers identify and prevent discriminatory practices.

Explain how equal employment laws are enforced including the complaint process.

Categorize the different types of sexual harassment and explain ways employers can protect employees from intimidation and harassment in the workplace.

Review current issues in equal employment.

Identify legal issues faced when managing HR in a global environment.

Chapter Overview Guessing how a court will rule on any employment case can be a real discussion starter. This chapter opener provides three descriptions of sexual harassment cases that went to court. Survey student opinions on how the court decided as a lecture opener. These cases are also referred to in the HRM Workshop at the end of the chapter as "Evaluating Alternatives" activity 10. The answers: • Fred Meyer's Store: Yes and Yes. Employers may be liable if customers are permitted to make lewd comments repeatedly.

• Omaha Bank: Yes and Yes. Four days was a reasonable time to investigate the complaint and act on it. The reprimand was an appropriate response for the single incident.

• Avco Corp: No and Yes. Since supervisors are often harassers, there should have been another way to file a complaint and Avco should not have told the women not to file a complaint with the EEOC. Forcing the women to use sick leave and them making an adverse reference in their file was illegal retaliation that occurred as a result of their complaint.

Chapter content includes summarize major federal legislation relevant to equal employment opportunity, including the Civil Rights Acts of 1964 and 1991, the 1990 Americans with Disabilities Act and the 1993 Family and Medical Leave Act. Guidelines for determining discriminatory practices and responding to an EEO charge are given. Selected Supreme Court Cases relevant to discrimination and reverse discrimination are summarized, and the roles of the federal regulatory agencies (the EEOC and OFCCP) are discussed. The current issues of sexual harassment and the glass ceiling initiative are presented, and the chapter ends with a discussion of HRM in a global environment focusing on China, Canada, Mexico, Australia, and Germany.

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Chapter 3: Equal Employment Opportunity

Additional features of this chapter: Exhibits 3 - 1 Summary of Primary Federal Laws Affecting Discrimination 3 - 2 Ratio of Women's to Men's Earnings in Selected Occupations 3 - 3 Family and Medical Leave Act Poster 3 - 4 Summary of Selected Supreme Court Cases Affecting EEO 3 - 5 Applying the 4/5ths Rule 3 - 6 Equal Pay Issues Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

• Contemporary Connection - Discrimination Claims Going Up page 56 Claims of discrimination files with the EEOC are up, but over 80 percent are dismissed because they are without merit.

• Contemporary Connection - EEOC Reaches Out to Young Workers page 68 Young workers are easy and common targets for sexual harassment and employment discrimination.

• Ethical Issues in HRM - How Bad Does It Have to Be? Page 71 Recognizing and preventing sexual harassment.

• Ethical Issues in HRM – English-only Rules on page 74 presents arguments for such rules, as well as, the counterpoint of potential discrimination in a diverse workforce. The Central Station Casino EEOC case is highlighted in this discussion.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 3 concepts: •

New cases and legislation will come out after publication of the text and during the course semester. Encourage students to pay attention to these and report on them in class. The need to keep up, to obtain legal advice and to deal with the ambiguity of legal issues can be emphasized, and suggestions on how to deal with these more challenging aspects of HR can be discussed. The EEOC website is one resource to leverage.

•

Several Supreme Court cases related to sexual harassment were decided in the late 90’s.

These cases have implications for same-sex harassment, responsibilities of management, and determination of harassment even when an implied threat is not carried out. Have students research these on the Web and report to the class.

•

Invite your campus’ EEO/Affirmative Action coordinator to speak to the class about the University’s EEO/AA responsibilities, especially as they relate to diversity on campus.

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•

Have students research how discrimination claims would be handled in their state or assign each student a state to research. Have this be a presentation assignment for one or more students.

•

Hold an Affirmative Action debate in class. This can still be a very volatile topic, so set some ground rules to keep the arguments as “rational” as possible. Require students to back up their statements with facts, figures and expert opinion. (Be prepared for the students to pose questions about AA in college admissions.)

Chapter Outline and Lecture Suggestions Introduction

Slide 3

Discrimination amounts of management decisions made on favoritism instead of factors relevant to ability. Employment laws continue to evolve on federal, state and local levels.

The Importance of the Civil Rights Act of 1964

Slide 4 Learning Outcome 1: Explain how Title VII of the Civil Rights act of 1964 the Civil Rights Act of 1991 protect employees from discrimination and the exceptions that are allowed.

The Civil Rights Act addressed and outlawed discrimination in voting, education, the workplace and many other facets of American life. Its impact can't be overstated.

The act outlawed workplace discrimination in hiring, promotion, dismissal, benefits, compensation or any other terms, conditions or privileges of employment based on race, religion, color, gender, or national origin.

Organizations with less than 15 employees are exempted, but many states have lowered that number.

Exhibit 3 - 1 lists the Civil Rights Act and subsequent Equal Employment Laws and Executive Orders.

Race and Color Discrimination Slide 5 Treating an employee or applicant differently because of personal characteristics that is related to race such as: • hair texture • skin color • facial features May also include: • Name • Attire Page 3

Chapter 3: Equal Employment Opportunity • • •

Accent Marriage to minority Caucasians working in a minority-owned business

Religious Discrimination Slide 6 Religious discrimination includes treatment of applicants or employees differently because of religious beliefs and how they are practiced.

The U.S. is becoming more religiously diverse, requiring employers to understand how work practices may be discriminatory.

• HRM needs to establish policies that respect an employee’s religion and protect employer and employee rights.

• Reasonable accommodations must be made if possible.

• Employer must be informed of beliefs of accommodations are required.

• Beliefs must be "sincerely held".

• May include: ▪ Religious head coverings ▪ Facial hair ▪ Apparel to be worn or not to be worn ▪ Tattoos ▪ Time off of work National Origin Discrimination Slide 8 Involves issues of citizenship and permanent residence status, and is often related to race or color discrimination.

May include: ▪ Name ▪ Dress ▪ Accent ▪ English proficiency if not relevant to position Sex Based Discrimination Slide 9 In addition to Title VII of the Civil Rights Act, sex and gender discrimination are also defined and protected by other laws, including: • Equal Pay Act of 1963 • Pregnancy Discrimination Act of 1978 • Lilly Ledbetter Fair Pay Act of 2009.

Discriminatory actions may include: Slide 10 ▪ Different standards or procedures for one sex.

▪ Leaves of absence ▪ Benefits ▪ Dress codes ▪ Training opportunities ▪ Pay May include lesbian, gay, bisexual or transgendered individuals if discriminated against for not conforming to traditional roles.

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Chapter 3: Equal Employment Opportunity Exhibit 3 - 2 Ration of Women's to Men's Earnings page 55 illustrates how salaries for women compare to men's salaries in selected occupations.

Exceptions That Are Permitted Slide 11 Employers should discontinue practices which cannot be defended, however, three defenses can be used when confronted with an allegation: ▪ Business Necessity – an organization has the right to operate safely and efficiency, by having successful employees who possess the skills, knowledge, and abilities to perform the essential elements of the job.

▪ Bona Fide Occupational Qualifications (BFOQ) can defend requirements which discriminate against some protected groups in narrowly defined situations.

▪ Seniority Systems: As long as employment decisions are based on well-established and consistently applied seniority systems, decisions that adversely affect protected group members may be permissible.

The Civil Rights Act of 1991 Slide 12 Passed after a series of Supreme Court decisions diminished effect of Griggs decision.

• Prohibits racial harassment • Returns burden of proof to employer • Reinforces illegality of making hiring, firing or promotion decisions on basis of race, ethnicity, sex or religion • Permits women and religious minorities to seek punitive damages in intentional discriminatory claims.

• Included the Glass Ceiling Act with the intent of removing impediments for women and minorities in moving into top management positions.

Laws Affecting Discriminatory Practices Learning Outcome 2: Outline the amendments, laws and executive orders that have expanded, limited and clarified equal rights in the workplace.

Class Activity: Contemporary Connection - Discrimination Claims Going Up on page 56 explains that although claims filed with the EEOC are up sharply over the last 5 years, 80 percent are dismissed as without merit or duplicate claims. The questions to ask your class include whether the process should be made more difficult to reduce claims that are without merit and why retaliation claims have increased.

Equal Employment Opportunity Act (EEOA) amended Title VII. Slide 13 Created and gave enforcement powers to the Equal Employment Opportunity Commission.

Expanded Title VII coverage to include employees of state and local government, educational institutions, and others.

Stipulates that organizations must actively recruit and give preference to minority group members in employment decisions, which is more than merely stopping discriminatory practices.

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Relevant Executive Orders Slide 14 Executive Orders are issued by the president.

Executive Order 11246 prohibits federal agencies and their contractors, with federal contracts of $10,000 or more, from discriminating on the basis of race, religion, color, national origin Executive Order 11375 added sex based discrimination.

Executive Order 11478 states employment practices of federal government must be based on merit and prohibits discrimination based on race, color, religion, sex, national origin, political affiliation, marital status or disability.

Organizations with 50 or more employees and/or $50,000 in federal grants require a written affirmative action plan.

Office of Federal Contract Compliance Programs (OFCCP) administers the orders.

Age Discrimination in Employment Act of 1967 (ADEA) Slide 15 Protects those 40 and older and eliminates mandatory retirement.

Prohibits the arbitrary replacement of older workers with younger workers and provides for oversight in pension and benefit issues.

Equal Pay Act Slide 16 The Act was enacted in 1963 with the intent of eliminating the practice of paying women lower wages for the same or similar jobs held by men.

Lilly Ledbetter Fair Pay Act was passed in 2009, allowing workers to file pay discrimination claims within 180 days (300 days in some states) of any discriminatory paycheck.

Pregnancy Discrimination Act Slide 17 Employment decisions may not be based on an individual’s pregnancy.

Must treat pregnancy as any other short-term disability.

The Americans with Disabilities Act of 1990 Slide 18 Prohibits employment discrimination on the basis of disability.

To qualify for protection, an individual must meet certain qualifications: Qualified individual with basic skill, education, experience and other job-related requirements for the position.

Has or is perceived as having a physical or mental impairment that limits one or more major life activity such as: • Seeing • Hearing • Eating • Walking • Standing • Lifting • Speaking • Breathing Page 6

Chapter 3: Equal Employment Opportunity • And several others Able to perform essential functions of a position (should be listed in job description) with reasonable accommodations which are relative to the size of the business and may include: • Modified work schedules • Adaptive equipment • Leaves of absence • Hiring readers or interpreters or using adaptive software • Installing ramps, hand rails or widening doorways ADA Amendments Act of 2008 Slide 20 The ADA Amendment Act of 2008 (ADAAA) is intended to give broader protections for disabled workers and “turn back the clock” on court rulings which Congress deemed too restrictive.

Makes it easier for individuals to establish the existence of a disability, especially regarding impairments such as cancer, diabetes, epilepsy, HIV infection and bipolar disorder.

Family and Medical Leave Act of 1993 (FMLA) Slide 21 Employees in organizations employing 50 or more workers can take up to 12 weeks unpaid leave each year for childbirth, adoption, own illness or illness of a family member.

Employees must meet eligibility requirements to be covered.

The act has created staffing, administrative, and illness qualification difficulties for employers.

Exhibit 3-3 Family and Medical Leave Act Poster page 62 is required by the DOL. Uniform Services Employment and Reemployment Slide 23 Rights Act of 1994 (USERRA) Veterans have the right to return to their private sector jobs when they return from military service, and they are entitled to the same seniority status and pay they would have attained had they remained on the job. b. Employers are prohibited from discriminating or retaliating against a job applicant or employee based on prior military service.

Genetic Information Nondiscrimination Act (GINA) of 2008 Slide 24 Prohibits employers with fifteen or more employees from discriminating on the basis on genetic information when making any employment related decisions, including insurance covered participation in wellness programs.

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Selected Relevant Supreme Court Cases

Slide 25 Learning Outcome 3: Discuss the role of the Supreme Court in clarifying and enforcing employment law and identify important cases decided by the court.

Cases Concerning Discrimination • Griggs v. Duke Power (1971): Tests were illegal when they resulted in adverse impact and were not job related.

• Albemarle Paper Company v. Moody (1975): Clarified methods for using and validating tests in selection (i.e. tests should be validated for jobs similar to those for which they will be used).

• Wards Cove Packing Company v. Atonio (1989): Statistics alone could not support evidence of discrimination; burden of proof shifted to the plaintiff. This case illustrates the change in the Supreme Court view of EEO from the Griggs case.

Exhibit 3 – 4 Summary of Selected Supreme Court Cases page 64 shows a summary of selected Supreme Court cases affecting EEO. Cases Concerning Reverse Discrimination: • Bakke v. The Regents of the University of California at Davis Medical School (1978): School could not set aside seats for minorities.

• United Steelworkers of America v. Weber (1979): Court supported company’s voluntary affirmative action training program for minorities.

• Firefighter Local 1784 v. Stotts (1984) & Wyant v. Jackson Board of Education (1986): Affirmative action may not take precedence over a seniority system; collective bargaining agreement giving preferential treatment to minorities in layoffs was illegal.

• Johnson v. Santa Clara County Transportation (1987): Preferential treatment based on affirmative action goals permitted if non-minorities protected.

• Ricci v. DeStefano (2009): Any HRM practice may be challenged by anyone.

HRM must be able to defend its practices if necessary and explain the basis and the parameters on which the decisions were made.

Preventing Discriminatory Practices

Slide 26 Learning Outcome 4: Explain how the Uniform Guidelines on Employee Selection Procedures and the concepts of adverse impact , disparate treatment and affirmative action help employers identify and prevent discriminatory practices Uniform Guidelines on Employee Selection Procedures Specifies that hiring procedures must be tied to job-related factors and may not discriminate.

Outlines how employers can shoe that their hiring practices observe EEO laws.

Addresses standards for non-biased employment testing.

Determining Potential Discriminatory Practices

Slide 27 Page 8

Chapter 3: Equal Employment Opportunity • • •

Adverse (disparate) impact occurs when there is a greater rejection rate in an occupation for a protected group (those protected under discrimination laws) than for the majority group.

Adverse (disparate) treatment occurs when members of a protected group are treated differently than other employees.

Slide 30 The 4/5ths rule: o Guideline established by EEOC Uniform Guidelines on Employee Selection Procedures. o Compares selection ratio for minority applicants to that for o majority applicants; if less than 4/5, discrimination may have occurred. o Applies to all steps in a selection process.

Exhibit 3 - 5 Applying the 4/5ths Rule page 67 illustrates how the math works when comparing the hiring rate of the minority group to the majority group.

Slide 31 • Restricted Policy infractions occur when HRM activities result in exclusion of a class of individuals.

• Geographical comparisons can support discrimination claims. Characteristics of the qualified pool of potential applicants in the hiring market are compared to characteristics of employees. If an employer has a proper mix of individuals at all levels in the organization that reflects its recruiting market, then the organization is in compliance.

Slide 32 • McDonnell-Douglas Test: Guidelines from McDonnell-Douglas v. Green Supreme Court case determined an allegation of discrimination is supported: o If a qualified member of protected group applies for job o Is rejected o The enterprise continues to seek applicants with similar qualifications,.

Slide 33 • Affirmative Action Plans are to be used to correct past injustices in employment. o Involve analyzing current work force demographics and establishing goals and timetables for correcting imbalances in the representation of protected groups. o Cases continue to challenge the concept and ask for clarification. o Most involve numerical quotas which are not allowed.

Enforcing Equal Opportunity Employment

Slide 34 Learning Outcome 5: Explain how equal employment laws are enforced including the complaint process The Role of the EEOC Slide 35 The EEOC has jurisdiction for Title VII and other legislation that covers charges of discrimination based on race, color, sex, national origin, age or disability.

The EEOC is staffed by five presidentially appointed commissioners and staff counsels and generally has significant backlog of cases.

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Chapter 3: Equal Employment Opportunity Complaint Procedure: Slide 36 • Charges must be filed within 180 days of an alleged incident • Organization is notified by EEOC within 10 days. Investigation begins.

• EEOC notifies organization of its findings within 120 days. If EEOC finds complaint unfounded, individual may request right to sue in civil court.

• If complaint is justified, EEOC works with employer to correct problem.

• If resolution cannot be reached, EEOC may sue organization.

The EEOC cannot force an organization to cooperate.

Organizations may NOT retaliate against individuals who file EEOC charges.

Office of Federal Contract Compliance Programs (OFCCP) Slide 37 Operates within U.S. Dept. of Labor to enforce: • Executive Order 11246 (covered in LO 2) • Section 503 of Vocational Rehabilitation Act • Vietnam Veterans Readjustment Act of 1974.

Investigates discrimination complaints; process similar to that of EEOC. Can cancel employer’s contract with federal government if not in compliance.

Provisions apply to any organization that has a federal contract or acts as a subcontractor on a federal project.

Sexual Harassment

Slide 38 Learning Outcome 6: Categorize the different types of sexual harassment and explain ways employers can protect employees from intimidation and harassment in the workplace Sexual Harassment Unwanted activity of a sexual nature that affects an individual’s employment; prohibited under Title VII as sex discrimination.

Sexual harassment occurs where verbal or physical conduct toward an individual: • Creates an intimidating, offensive, or hostile environment • Unreasonably interferes with an individual’s work • Adversely affects employee’s employment opportunities.

There are two types of sexual harassment: Slide 39 Quid pro quo – some type of sexual behavior is expected as a condition of employment.

Hostile environment – the working environment is offensive and unreasonably interferes with an employee’s ability to work.

• Hostile environment was established as a type of sexual harassment by the Meritor Savings Bank v. Vinson Supreme Court case which also established employer liability for the harassment.

• Faragher v. City of Boca Raton Supreme Court case upheld employer liability for harassment by coworker, managers or customers.

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Chapter 3: Equal Employment Opportunity •

Harris v. Forklift Systems, Inc. Supreme Court case held that victims do not have to suffer substantial mental distress for harassment to have taken place.

• 1998 Supreme Court ruling indicated that harassment can take place even if the employee does not experience any negative job repercussions.

Alleged harasser must be afforded due process.

Employer steps to create workplace free of intimidation and harassment: Slide 40 • Issue a sexual harassment policy describing what constitutes harassment and what inappropriate behavior is.

• Institute a procedure to investigate harassment charges.

• Inform all employees of the sexual harassment policy • Train management personnel in how to deal with harassment charges and in what responsibility they have to the individual and the organization.

• Investigate all harassment charges immediately.

• Take corrective action as necessary.

• Continue to follow up on the matter to ensure that no further harassment occurs or that retaliation does not occur.

• Periodically review turnover records to determine if a potential problem may be arising.

• Don’t forget to privately recognize individuals who bring these matters forward.

Class Activity: Ethical Issues in HRM - How Bad Does It Have to Be? Page 71 addresses the issue of perception in harassment. The Ethical Questions at the end of the feature ask students to examine their own limits or tolerance where language, jokes and teasing go "over the line." Students often have examples and thoughts on when behavior goes from "fun" to inappropriate.

Current Issues in Equal Employment Learning Outcome 7: Review current issues in equal employment.

Comparable Worth and Equal Pay Issues Slide 41 Comparable worth refers to the issue of determining fair pay for both femaleoriented jobs and male-oriented jobs based on comparable skill, effort, and responsibility. It goes beyond provisions in the Equal Pay Act. Glass ceiling refers to lack of women and minority representation at the top levels of organizations.

OFCCP has glass ceiling initiative. Promotes career development for women and minorities. Looks for such in its audits.

Sexual Orientation Slide 42 Protection against discrimination because of an employee’s sexual orientation or gender identity is not provided by federal law, but 21 states and the District of Columbia have laws prohibiting discrimination based on sexual orientation.

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English Only Laws and Policies Title VII protects employees from national origin discrimination so employers must allow employees to converse in their native languages.

Ethical Issues in HRM: English-Only Rules on page 74 outlines a case where housekeeping employees won a settlement because they were not allowed to speak their native language, Spanish in conversation at work. Ethical questions at the end of the case may be posed to students in order to have them examine their own views. If the class includes students whose native language is not English, their views may be interesting to the discussion.

Appearance and Weight Discrimination Employees that are heavier than average tend to make less than workers whose weight is average.

Michigan is the only state currently protecting employees from weight or appearance discrimination.

HRM in a Global Environment

Slide 43 Learning Outcome 8: Identify legal issues faced when managing HR in a global environment.

Laws affecting Human Resource Management vary greatly by country.

Examples from China, Canada, Mexico, Australia and Germany highlight some of the differences.

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HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

Describe the groups protected by Title VII of the Civil Rights Act and explain how well the act has accomplished the goal of eliminating discrimination against those groups. What would you have added to the act to make it more effective? (LO 1) The Civil Rights Act of 1964 gives individuals protection on the basis of race, color, religion, sex, and national origin. Many groups needing protection from discrimination were left out of the act including people with disabilities, people over 39, pregnant women, LGBT individuals could have been included.

2.

Select one of the cases concerning employment discrimination that seems to be most important to fairness in employment and explain your reasoning. (LO 3) Many cases and related issues are explained in the case including Griggs v. Duke Power (discriminatory testing and requirements), Albemarle Paper Company v. Moody (how to validate testing), Bakke V. The Regents of the University of California at Davis(Affirmative Action quotas), United Steelworkers of America v. Weber (special preference to minorities in Affirmative Action), Firefighters Local 1784 v. Stotts (seniority systems have priority over Affirmative Action, Wyant v. Jackson Board of Education (union contracts can't preserve minority jobs in case of a layoff), Johnson v.

Santa Clara county Transportation (non-minority rights must be protected) and Ricci v.

DeStefano (promotion exam can't be invalidated only because no or few minorities pass) are all explained in the chapter. "Duke" and "Bakke" were policy setting decisions. The others mostly clarify or modify their implementation.

3.

4.

What is an adverse impact? How does it differ from adverse or disparate treatment? (LO 4) An adverse impact is any consequence of employment that results in a disparate rate of selection, promotion, or termination of protected group members. Adverse treatment is when a member of a protected group receives less favorable employment-related outcomes than an individual who is not in a protected group. | What is meant by “reasonable accommodation” as it pertains to the Americans with Disabilities Act of 1990? (LO 2) Employers are required to make alterations in the work environment, as long as it does not create an undue hardship, to enable individuals with disabilities to work.

5.

Explain why an employee might file a claim of retaliation and why retaliation claims are on the rise. (LO 1 2, 7) P a g e 13

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An employee might file a claim of retaliation if he/she feels that the action taken by an employer would not have occurred if the employee had not first filed a complaint against the organization. Retaliation claims are on the rise because employers may not be aware of the latest information protecting workers from discrimination and the subsequent laws that protect workers from retaliation when they report violations of the EEOC laws by their employers 6.

Explain how the two types of sexual harassment differ. (LO 6) Quid pro quo harassment occurs when some type of sexual behavior is expected as a condition of employment such as getting hired, raises, promotions, disciplinary actions or keeping a job. Hostile environment harassment involves a workplace that is so offensive or intimidating that an employee's ability to work is compromised.

7.

What is the purpose of the FMLA and who does it cover? (LO 2) FMLA allows unpaid leave for specific family related reasons like childbirth, adoption, the employee’s own illness or to care for a sick family member, with a guarantee of retaining an employee’s job when he/she returns from leave. The FMLA benefits were extended in 2008 to include family members of military personnel who are on active duty. Employees who require a leave of absence from work in order to care for a wounded service member are also included. Nearly 80 percent of all U.S. workers are covered under FMLA. The Act allows workers of organizations that employ 50 or more workers within a 75-mile radius of the organization, the opportunity to take up to 12 weeks of unpaid leave in a 12 month period for qualifying reasons

Evaluating Alternatives 8.

“Affirmative action does not work. When you’re hired under an affirmative action program, you’re automatically labeled as such and are rarely recognized for the value that you can bring to an organization.” Develop arguments for and against this statement. Which do you agree with and why? (LO 1, 3, 4) Agree. It will be evident if someone is hired with substandard credentials or lacking skills and/or abilities. If incompetence is excused with a quota requirement, other workers are going to resent the fact that they have to work harder to compensate for the unqualified worker.

Disagree. Quotas do not mean an employer must hire anyone who is not qualified. If a competent person is hired and demonstrates her ability to do a job, she will make it past the probationary period like any other employee. Only the petty will harbor resentments against such workers

9.

A local employer confides to you that she secretly does internet searches of P a g e 14

Chapter 3: Equal Employment Opportunity applicants before she calls them in for interviews. She tells you that she has a very established clientele and needs to make sure her new employees "fit in". She's particularly concerned about people with visible tattoos and piercings, but explains that she's also on the lookout for bad grammar, handicaps and people with gray hair. She explains "my customers expect a fresh, 'All-American' look here. My employees look like the boy or girl next door." Is she breaking any laws? If so, which ones and how? Can she legally avoid hiring people with any of these characteristics? (LO 1, 7) Screening applicants before interviews opens the employer to claims of discrimination.

Applicants may claim that she is in violation of Title VII of the Civil Rights Act by screening for protected characteristics such as race, gender, religion, national origin, or others such as the Pregnancy Discrimination Act, Americans with Disabilities Act or Age Discrimination Act. She would be better off by inviting qualified applicants to interviews and investigating their online presence after an initial interview. She may have policies about appearance that restrict tattoos, piercings and bad grammar, but not handicaps or gray hair.

10.

Here are the answers to the questions in the chapter opener. Do you agree with them? Explain why you agree or disagree.

Fred Meyer's Store: Yes and Yes. Employers may be liable if customers are permitted to make lewd comments repeatedly.

Omaha Bank: Yes and Yes. Four days was a reasonable time to investigate the complaint and act on it. The reprimand was an appropriate response for the single incident.

Avco Corp: No and Yes. Since supervisors are often harassers, there should have been another way to file a complaint and Avco should not have told the women not to file a complaint with the EEOC. Forcing the women to use sick leave and them making an adverse reference in their file was illegal retaliation that occurred as a result of their complaint.

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Grading can be simplified by using the grading rubric above.

Activity Summaries 11.

Six situations that may or may not be sexual harassment are presented. Some suggested responses: (LO 6) a. A female supervisor frequently praises the work of a highly competent male employee who recently received a merit raise. His female co-workers are P a g e 15

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b.

c.

d.

e.

f.

becoming increasingly annoyed with her behavior and envious of his raise.

Answer: No. As long as his work meets the requirements of the merit raise there is no discrimination or harassment.

A female employee in a mostly male department voluntarily accepts a date with her male supervisor.

Answer: No. Dating co-workers or supervisors may not be a good idea, but as long as there is no policy against it, no discrimination occurs at this point.

A male employee is given favored work assignments in exchange for arranging dates for his boss.

Answer: Yes. The employee receives favorable working conditions in exchange for arranging the dates. He might consider what would happen to his work assignments if any of those dates go badly or if he can't find willing dates at all.

Male employees put rubber snakes, spiders, and mice in the lunch box of a female coworker because she screams when she is surprised by them. Male coworkers do not receive the same kind of teasing.

Answer: Yes. Courts have held that as long as the harassment is only directed to one gender, nationality, race or any other protected characteristic, it is harassment.

A male has asked two female coworkers to stop embarrassing him by telling jokes of a sexual nature and sharing their sexual fantasies, but they continue, telling him a “real man wouldn’t be embarrassed” Answer: Yes. The female coworkers are clearly creating a hostile work environment by telling the sexual jokes and stories. The comments about his lack of conformity to their view of traditional male behavior is also harassment.

Al tells Marge an offensive joke, but when Marge says “Al, I don’t appreciate your nasty jokes,” Al responds, “I’m sorry, Marge, you’re right, I shouldn’t have told that one at work.”

Answer: No. As long as he doesn't tell any more offensive jokes, he complied with her request and did not establish a hostile work environment.

12.

The EEOC website's list of recent lawsuits is examined for trends. Students report findings in a paper or presentation with slides.

13.

Students will contact the EEO office with responsibility for your area and determine which, if any laws offer protection beyond federal laws. Findings are presented in a paper.

If your college has an EEO/Affirmative Action officer, students will determine what policies affect recruiting, promotion and sexual harassment. Findings are presented in a paper.

14.

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Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on EEO involve informing or assisting young workers, veterans or active military members. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 3 - A: The Best of Intentions The HR Director of a manufacturing company learns the hard way that doing the right thing can be complicated when she handles a sexual harassment complaint and ends up with at least one retaliation complaint and possibly two.

Questions: 1.

Explain the concept of retaliation and evaluate the validity of Anton's and possibly Ramona's retaliation claims. (LO 1, 2, 6, 7) Retaliation involves negative job action taken against an employee for making an EEO complaint.

Anton made a common threat meant to discourage employers from taking disciplinary action when he made an age discrimination after his last performance appraisal. Any adverse employment action taken after that complaint, including the disciplinary action for breaking the equipment would prompt him to make a complaint that he had been retaliated against for making the age discrimination complaint. The EEOC will probably decide that the retaliation complaint and possibly the age discrimination complaint are unfounded if HR has adequately documented his behavior and performance deficiencies.

Since Ramona complained about sexually harassing behavior; in this case, hostile environment, she would only have a retaliation complaint if the job actions taken following the complaint were considered to be adverse. If the temporary transfer were considered an adverse job action because it included a reduction of pay, difficult working conditions or subjected her to other unpleasant consequences, her claim of retaliation may be valid. This would be true even if her original complaint were unfounded, as this one appears to be.

2.

Evaluate Alison's handling of the supervisor so far. How should Alison handle the supervisor's return to work? (LO 1, 6) Alison should make sure that the supervisor's version of the events and Ramona's versions agree. If they do, the action taken against the supervisor is probably appropriate. The supervisor's return may require an apology to Ramona and she should be consulted as to whether she will be comfortable working with the supervisor after his return and sexual harassment training. If not, an agreeable transfer may be necessary.

3.

Outline a program and policy for Alison that will help to prevent further sexual harassment. (LO 1, 6) P a g e 17

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These suggestions from chapter three should be included in student answers: • Issue a sexual harassment policy describing what constitutes harassment and what inappropriate behavior is.

• Institute a procedure to investigate harassment charges.

• Inform all employees of the sexual harassment policy • Train management personnel in how to deal with harassment charges and in what responsibility they have to the individual and the organization.

• Investigate all harassment charges immediately.

• Take corrective action as necessary.

• Continue to follow up on the matter to ensure that no further harassment occurs or that retaliation does not occur.

• Periodically review turnover records to determine if a potential problem may be arising.

• Don’t forget to privately recognize individuals who bring these matters forward.

4.

Research: Are retaliation complaints in the U.S. decreasing or on the rise? Explain some reasons given for the change in number of complaints. What can employers do to prevent retaliation claims? (LO 1, 7) Current information is available on the EEOC website at www.eeoc.org

Case Application 3 - B: Diversity is Fashionable The case focus describes how Abercrombie & Fitch recruited employees based on an image the company wanted to project and staffed their stores with sales people that were primarily white and athletic. The female employee who thought she was being hired for a job on the sales floor found herself cleaning and dusting; hence she was treated differently than everyone else. She filed a complaint with the EEOC, who found Abercrombie & Fitch hired minority employees to do only low visibility, back-of-the-store jobs. Also, the company refused to hire minority students with impressive work and school records, and had a percentage of minority managers well below industry average. Abercrombie did not admit guilt, but settled the suit for $50 million, agreeing to do a better job of hiring and promoting minorities 1.

Abercrombie and Fitch attempts to maintain a trendy and youthful look in their stores to support their products. Is there a way they can maintain that look without creating an adverse impact or adverse treatment in their recruiting, screening and hiring practices? (LO 1, 2) An employer can maintain a certain “look” or “image” without violating EEOC regulations with dress codes that fit the image of the organization but do not discriminate, or using bona fide occupational qualifications. One example of this includes Victoria Secret – this store is female oriented, so having men as salespersons could disrupt the image and possibly cause some customers to shop elsewhere.

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Chapter 3: Equal Employment Opportunity 2.

Suggest a list of at least five things that Abercrombie and Fitch can do at the corporate and local store level to increase the number of minority applicants?

Explain which of the things on your list would be most effective and why. (LO 1, 2) A variety of activities are suggested in chapter 3 including: • Ask employees who are in an underrepresented group to help recruit.

• Participate in job fairs at colleges, universities, places of worship, social clubs, and community‐based organizations where minorities are in a majority or in attendance.

• Advertise in community bulletins for clubs, sororities, fraternities, and places of worship where minorities are in a majority.

• Place job ads on social media, television, radio, websites and in newspapers and magazines that target a particular demographic.

• Advertising positions on minority-focused web sites that list job openings.

• Implementing an affirmative action plan.

• Getting help from minority-based groups, such as the local chapter of the Urban League, in crafting a minority recruitment program.

• Using more minority models thus attracting more minorities to apply for open positions.

3.

Are there other employers that you feel need to make a better effort at diversity? Do any of the permitted exceptions to Title VII justify their lack of diversity? (LO 1) Student answers will vary on this question.

Several industries, most recently the tech and financial have been criticized or sued for not hiring, supporting, or providing equal opportunities to women.

4.

Research: How has Abercrombie been doing lately? What evidence can you find that they are making progress toward their diversity goals? Outline any new diversity complaints against the company. (LO 1, 2, 7) It's interesting to note that they have recently fired their CEO, restructured, and repositioned their products and marketing efforts. Students may feel that those changes are the result of a consumer backlash against Abercrombie's track record of hiring discrimination.

Online Case Application 3 - C: Team Fun! Questions: 1. What is the probable defense for the baseball gear job (BFOQ, 4/5ths rule, glass ceiling)?

Explain. (LO 1, 4) 2. How do age discrimination and the Americans with Disabilities Act apply to Fred's situation?

(LO 1, 2) 3. Is TEAM FUN! open to discrimination charges in other areas? (LO 1, 2, 3, 4) 4. What should be done to protect TEAM FUN! from discrimination charges? (LO 4, 5, 6)

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Chapter 4: Employee Rights and Discipline

Chapter 4: Employee Rights and Discipline Learning Outcomes After reading this chapter, students should be able to: 1. Explain the employer record-keeping responsibilities and laws related to keeping and collecting employee information.

2. Discuss employer concerns about social media use and the components of an effective social media policy.

3. Identify current issues regarding employee rights.

4. Explain legal and ethical issues involved in monitoring employees in the workplace.

5. Discuss the implications of the employment-at-will doctrine and identify the exceptions to it.

6. Explain the elements of effective discipline policies.

7. Identify important procedures to follow when firing an employee.

8. Explain how issues of employee relations differ in global environments.

Chapter Overview When an HR professional thinks she has heard everything, someone proves her wrong. This chapter opener illustrates this point with three "ridiculous but true" disciplinary situations to use as a discussion starter or assignment. The court findings are in the HRM Workshop at the end of chapter four for students, and right here for your convenience: The dental assistant's firing was upheld because the firing was based on emotion and not sexual harassment. The firing of the automotive parts store employee was upheld. He had no expectation of privacy because he initiated the voice mail. The professor was reinstated after a 1-month suspension and psychological evaluation.

The discussion of these situations introduces the complexity of workplace policies, possible disciplinary actions – and many other employee rights. Organizations both private and public, from local to federal, try to develop sound policies and procedures to balance management’s expectations with worker rights. The chapter goes on to cover those aspects of HR management which determine whether employees have been treated rightly or wrongly. First, there are the legal protections employees have, including the Privacy Act, Fair Credit Reporting Act, DrugFree Workplace Act, Polygraph Protection Act, and Worker Adjustment and Retraining Notification Act. Current emerging areas require a delicate balance of employee and employer rights, include drug testing, honesty testing, whistle-blowing, employee monitoring, and workplace romance. The chapter also explains the employment-at-will doctrine, a traditional justification for an employer’s right to hire and fire which is being steadily eroded by various legal and judicial challenges. Finally, the chapter discusses effective discipline, which respects the rights of employees while allowing management to meet its objectives. Specific steps are given for counseling employees who behave inappropriately or whose performance is not up to standard.

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Chapter 4: Employee Rights and Discipline Additional features of this chapter: Exhibits Exhibit 4 - 1 Selected Laws Affecting Employee Rights Exhibit 4 - 2 Specific Disciplinary Problems Exhibit 4 - 3 The Progressive Discipline Process Exhibit 4 - 4 Documenting Discipline Exhibit 4 - 5 Firing an Employee Can Be Difficult Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

•

Contemporary Connection - They're using it on their phones anyway...page 86 Employee access and use of social media at work.

•

Contemporary Connection - Why Organizations Conduct Drug Tests page 87 Statistics on substance abuse in the workplace.

•

Tips for Success - What to Know Before Disciplining Employees page 93 Suggestions for handling one of a manager's or HR professional's toughest tasks.

•

Tips for Success - Are You Part of the Problem? Page 97 Common ways that managers and HR professionals unconsciously sabotage employee discipline.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 4 concepts: •

The current business and community press is an excellent information resource. You can bring in, or ask students to bring in, current news stories which relate to employee rights.

•

Perform an in-class live survey: Ask how many students have taken drug or honesty tests at work. Ask students to students to stand up, and then sit down when you mention an employment law that has personally been applied to them.

•

Choose a controversial HR practice, such as drug testing or employee monitoring.

Divide the class in two parts. Let half of the students consider themselves as employees, and ask how they would want to be treated. The other half should articulate management’s perspective on how and why drug testing or employee monitoring should be used.

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Chapter 4: Employee Rights and Discipline •

Invite a speaker from a company which provides HR services related to chapter topics (testing; background checks; legal advice on discipline and termination).

•

Assign students to report on their employers’ policies, practices and environments related to chapter topics, such as disciplinary procedures, unions and workplace romance. Short (5-minute) presentations will give your students the opportunity to practice public speaking.

Chapter Outline And Lecture Suggestions Introduction

Slide 3

The dynamic environment covered in the three previous chapters has resulted a an evolving employee relations landscape.

Employee Records and Related Laws Learning Objective 1: Explain the employer record keeping responsibilities and laws related to keeping and collecting employee information Employee Relations Slide 4 Rights and responsibilities of employers and employees.

Communication, culture, motivation, discipline, and collective bargaining are all included.

Employee Records Slide 5 HRIS systems store records, allowing employers be more efficient and to go paperless or nearly so.

Department of Labor sets guidelines for keeping employee records. Usually for one year: • Job descriptions • Applications • Resumes • Emergency contact information • IRS forms • Performance appraisals • Disciplinary actions • Contracts • Non-compete agreements Keep in separate file: • Form I-9 • Medical records relating to a disability

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Chapter 4: Employee Rights and Discipline The Privacy Act Slide 6 The Privacy Act of 1974 requires government agencies to make available to employees information contained in their personnel files.

Similar state laws apply to state and private-sector employees.

Employees may also have the right to review letters of recommendation made on their behalf.

Restrictions typically include employee waivers of right to review and procedures which stipulate when and how a file can be accessed.

Computerized information systems add more complexities and potential flexibility to employee records.

The Fair Credit Reporting Act Slide 7 The Fair Credit Reporting Act of 1971, an extension to the Privacy Act, requires: Employers to notify employees that their credit is being checked Employers to provide additional information to applicants who are negatively affected by a credit check.

Information used must be job relevant.

The Drug-Free Workplace Act Slide 8 The Drug-Free Workplace Act of 1988 requires government agencies, federal contractors, and those receiving federal funds of $100,000 or more to actively pursue a drug-free environment.

Companies regulated by the Department of Transportation and Nuclear Regulatory Commission must test employees in certain jobs for drugs.

Covered organizations must establish and disseminate policies and provide substance-abuse awareness programs.

The Polygraph Protection Act Slide 9 The Polygraph Protection Act of 1988 prohibits employers in the private sector from using lie-detector tests in all employment decisions.

Polygraphs may still be used during investigations of suspected criminal activity.

Employees can challenge the results of a polygraph if they believe the test was inappropriately administered.

The Worker Adjustment and Retraining Notification Act Slide 10 The Worker Adjustment and Retraining Notification Act of 1988, or Plant Closing Bill, protects employees from unexpected plant closings.

Organizations employing 100 or more individuals must notify workers 60 days in advance if they are going to close the facility or lay off 50 or more workers.

The law does recognize circumstances in which advance notice is impossible.

Exhibit 4 - 1 Selected Laws Affecting Employee Rights on page 84 lists and summarizes the above laws.

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Chapter 4: Employee Rights and Discipline

Social Media Use and Employee Rights

Slide 11 Learning Outcome 2: Discuss employer concerns about social media use and the components of an effective social media policy.

Social Media are online tools for sharing information, ideas, photos and videos.

Employee Rights on Social Media Slide 12 Public sector (government) employees have limited protection for online information.

Private sector (private businesses) employees have very little protection.

Employers can discipline or fire employees for online rants.

Slide 13 National Labor Relations Board recognizes online communication as protected "concerted activity" if: • Communication was directed at other employees • Employee was addressing terms and conditions of employment or other issues that could be interpreted and union related.

Examples of Facebook posts that were or were not considered "concerted activity" are provided on page 86.

Social Media Issues for Employers Slide 14 Productivity problems may arise.

Social media policies should include: • Company policy regarding use at work and away.

• Employee privacy expectations when using company internet.

• Guidelines for being respectful to company and clients.

• Company expectations regarding employee use of company name and symbols.

• Legal repercussions of defamatory remarks.

• Use of privacy settings.

Class Activity: Contemporary Connection - They're using in on their phones anyway page 86 Some of your students probably used social media during your class.

This is a chance to ask just how connected they are and how they feel about it from the employer's perspective. Would they prohibit social media use at work for their own employees?

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Chapter 4: Employee Rights and Discipline

Current Issues Regarding Employee Rights

Slide 15

Learning Outcome 3: Identify current issues regarding employee rights.

Drug Testing Slide 16 The severity of substance abuse in organizations has led to use of drug testing even by organizations not covered by the Drug-Free Workplace Act. Drug testing of current employees typically offers rehabilitation to those who fail and communicates that drugs will not be tolerated.

Drug testing of job applicants should be done after a job offer is made; those who fail are generally no longer considered.

Courts have recently upheld firing of employees testing positive for marijuana in states where laws allow medical or recreational use of marijuana Class Activity: Contemporary Connection - Why Organizations Conduct Drug Tests page 87 summarizes research about the impact of substance abuse on businesses.

Questions for your class include who should and who should not be drug tested.

Honesty and Integrity Tests Slide 17 Designed to prevent theft, violence sabotage, disciplinary problems and absenteeism.

Assess honesty, trustworthiness and dependability Typical tests have multiple questions on the same topic to assess consistency of responses.

Whistle-Blowing Slide 18 Whistle-blowing occurs when an employee reports his/her employer to an outside agency over what the employee believes is an illegal or unethical practice.

The federal government protects employees who report violations under the Sarbanes- Oxley Act, the Consumer Product Safety Act, Occupational Safety and Health Act and other federally regulated activities.

Laws protecting whistle-blowers vary by state.

Many firms have voluntarily adopted policies to protect employees who identify problems.

Workplace Romance Slide 19 Workplace romances are a concern to HR professionals because they can lead to: • Accusations of favoritism.

• Breeches of ethics.

• Low productivity.

• Poor employee morale.

• Workplace violence.

Most companies have issued policies and guidelines on how relationships at work may exist and some have employees sign contracts stating the relationships are consensual to: • Reduce the risk of sexual harassment • Reduce the perception of favoritism.

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Chapter 4: Employee Rights and Discipline • •

Provide an opportunity to discuss professional behavior in the workplace.

Remind employees that the workplace does not provide privacy.

Off-Duty Behavior Slide 20 Employee actions outside of work have always been a concern, but smart phones and social media provide new opportunities for employees to get into trouble and share it in a very public way.

Employee Protection from disciplinary action based on off-duty behavior is similar to those listed earlier for social media.

Public sector employees have some protection.

Private sector employees have little to no protection.

Some states (California) provide more protection for private sector employees.

Slide 21 Legalized or decriminalized marijuana laws vary by state and change often.

Employee Monitoring and Workplace Security

Slide 22 Learning Outcome 4: Explain legal and ethical issues involved in monitoring employees in the workplace.

Employers need to ensure that their interests are protected against security breaches and employee behaviors such as theft, revealing of trade secrets to competitors, or using the customer database for personal gain.

Employers must balance these security needs with employee rights.

Employee Monitoring and Workplace Security Issues Slide 23 Companies must make clear policies on what is acceptable and what is not when monitoring employees.

Employee monitoring policies may include: Slide 24 • Use of computers, internet and phones.

Slide 25 • Password security • Employer and employee rights regarding privacy and use of offices, lockers, company vehicles including rights to search.

• Appropriate internet use and prohibited uses such as gambling, porn, discrimination, defamation or other illegal purposes.

• Privacy of trade secrets, customer, proprietary or financial information.

Requiring employees to use personal devices for work create privacy and security problems.

Employment-at-Will Doctrine

Slide 26 Learning Outcome: 5: Explain the employment-at-will doctrine and relevant exceptions.

The Employment-At-Will Doctrine Background

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Chapter 4: Employee Rights and Discipline • •

The doctrine, based on common law, allows employers to dismiss employees at any time for any reason.

This doctrine holds in many employment situations today, but has been modified to prohibit termination based on race, religion, sex, national origin, age, or disability.

Exceptions to the Doctrine Slide 27 • Contractual relationship: A legal agreement exists defining how employee issues are handled. Discharge may occur if it is based on just-cause.

• Implied employment contract: An employee is protected because of verbal or written statements made by members of the organization, such as promises of job security or statements in an employee handbook.

• Statutory considerations: Federal and/or state laws can create exceptions to the employment-at-will concept and bar terminations on those exceptions.

• Public policy violation: Employees cannot be fired for disobeying an illegal order from the employer or exercising their rights in accordance with societal laws and statutes.

• Breach of good faith: An employer breaches a promise or abuses its managerial powers.

• Constructive Discharge: working conditions are so difficult that employee was forced to resign. o Must go beyond uncomfortable or unpleasant to be intolerable by a "reasonable person" standard. o Examples: unchecked sexual harassment, ignoring OSHA regulations, significant pay reductions, refusal to provide lactation room access. o Employee typically must provide written notice of conditions to employer. Constructive discharge occurs if nothing is done in a reasonable timeframe.

Discipline and Employee Rights

Slide 28

Learning Outcome 6: Explain the elements of effective discipline policies.

What is Discipline?

A condition where employees conduct themselves in accordance with the organization’s rules and standards of acceptable behavior.

Factors to Consider When Disciplining Slide 29 • Seriousness of the Problem: How severe is the problem?

• Duration of the Problem: Have there been other problems in the past?

• Frequency and Nature of the Problem: Is the current problem part of an emerging or continuing pattern of disciplinary infractions?

• Extenuating Factors: Do extenuating circumstances relate to the problem?

• Degree of Socialization: To what extent has management made an earlier effort to educate the person causing the problem about the existing rules and procedures and consequences of violations?

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Chapter 4: Employee Rights and Discipline • •

History of Organization’s Discipline Practices: How have similar infractions been dealt with in the past within the department?

Management Backing: If employees decide to take their case to a higher level in management, will you have reasonable evidence to justify your decision?

Class Activity: Tips for Success - What to Know Before Disciplining Employees page 93 The question following the list in this feature asks how workplace culture would be affected if the suggestions listed were consistently followed. It's a great question for class discussion. Students are certain to have a variety of examples of situations of what goes wrong when they are NOT followed.

Exhibit 4 - 2: Specific Disciplinary Problems page 95 includes a list of common disciplinary problems.

Disciplinary Guidelines Slide 30 Managers and supervisors often have little training or experience in effective ways to apply disciplinary policies consistently and evenly.

A few guidelines and a bit of training can make a big difference in workplace culture.

• Make disciplinary action corrective rather than punitive.

• The object is to correct the employee’s behavior.

• Use a progressive discipline approach.

• Verbal warning; written warning; suspension; dismissal.

• Follow the hot-stove rule which involves: Slide 31 Immediate response: Discipline should be administered within a reasonable time frame after the violation occurs.

Advance warning: Employer must make employee aware of the organization’s rules and acceptable standards of behavior, along with what discipline a violation will incur.

Consistent action: Disciplinary action must be consistent to ensure fair employee treatment.

Impersonal application: Discipline should be directed at what employees have done, not the employees themselves.

U.S. Supreme Court Case of NLRB v. J. Weingarten, Inc. Slide 32 Employees in a union setting are allowed to have union representative available at disciplinary meetings.

In 2004, the NLRB ruled these rights do not apply outside union settings.

Exhibit 4 - 3 The Progressive Discipline Process page 97 illustrates the continuum of disciplinary actions from least to most severe.

Progressive Discipline Slide 33 System of disciplinary actions that follow a sequence of four steps that increase in severity, ending with dismissal.

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Chapter 4: Employee Rights and Discipline •

•

•

Written verbal warning: Supervisor meets with employee and makes a temporary record of reprimand.

Includes purpose, date and outcome of meeting.

Meeting is conducted in private.

Written warning: Copy becomes part of employee’s official personnel file.

Similar process to written verbal warning, except written warning becomes part of employee permanent record.

Suspension: Taken if prior steps were ineffective or if problem is severe.

Time off for discipline can be controversial, but may communicate management’s seriousness.

Exhibit 4-4 Documenting Discipline page 98 lists important elements that should be included in a disciplinary action report.

Class Activity: Tips for Success - Are You Part of the Problem? Page 97 Symptoms that a manager has let discipline get out of hand and suggestions for ways to take it back.

Students may have suggestions for ways to regain managerial authority.

Dismissing or Firing Employees, the Final Option

Slide 34 Learning Outcome 7: Identify important procedures to follow when firing an employee.

In spite of management's best efforts, employees must occasionally be fired.

Reasons for firing employees include: • Layoffs and restructuring • Performance problems • The last step in the progressive discipline process • Serious disciplinary actions such as sexual harassment, theft, violence, plagiarism, sabotage.

Not firing underperforming or insubordinate employees can cause morale and productivity problems.

Dismissal The difficulty of firing employees often means that managers do it awkwardly.

Because of the serious impact on employees and the growing number of wrongful discharge law suits, a dismissal decision should be carefully considered.

When firing an employee: • Review all of the facts.

• Set the stage.

• Be very clear.

• Allow a little dignity.

• Let the employee talk.

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Chapter 4: Employee Rights and Discipline • • • • • • •

Give severance pay.

Ask the person to sign an agreement waiving the right to sue for wrongful termination.

Immediately pay for any earned time.

Have the person leave that day.

Inform the person of any benefits.

Take appropriate protective steps.

Tell other employees that the employee has been terminated.

Employee Relations in a Global Environment

Slide 35 Learning Outcome 8: Explain how issues of employee relations differ in global environments.

Employment-at-will isn't a global concept.

• Most countries give employees significant rights to hold jobs.

• Firing can be very difficult.

Unions • Strong influence in European countries.

• In China, membership is high but influence is weak.

Paid-time-off Most industrialized countries provide paid maternity leave.

Most require some paid leave for all workers. Examples: • France 30 days • United Kingdom 28 days • Japan 10 days • United States 0 days

Slide 36

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Chapter 4: Employee Rights and Discipline

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

What should an organization know about employee records? (LO 1) Job related information such as job descriptions, applications, performance appraisals, disciplinary actions, work related forms and personal information such as contact and emergency contact information as well as pay records, ADA accommodations any Title VII information or must be kept. Most records must be kept for a year. Pay, ADA, Title VII must be kept longer.

2.

What should be considered when developing a policy on employee use of social media? (LO 2) Effective social media policies include information on how the employer monitors Internet use, warnings that there is no privacy when using the Internet at work (or if applicable, elsewhere on any company owned electronic device such as a computer), reminding employees to be respectful online, explaining legal repercussions of online defamation of character, privacy settings and how company name and logos can be used

3.

Discuss issues involved in using honesty tests to screen job applicants? (LO 3) Honesty is basic to trust, communications, reliability. It is often thought that dishonesty is an indication of other serious personality flaws that would make an employee undesirable. Honesty tests assess honesty trustworthiness and dependability, but are not perfectly valid, and may eliminate some candidates who would be good employees.

They should not be used as a substitute for interviews and background checks, but to supplement such information.

4.

What is employment-at-will? How does it affect employees? Employers? (LO 5) Employment-at-will permits employers to discipline or discharge employees at their discretion (at-will). For employees, it means that they do not have any guarantee of future employment. For employers, it gives them the flexibility to hire and fire as needed, with or without cause. Some exceptions to the employment-at-will doctrine have occurred over the years and employees do have protection from retaliatory discharges in certain circumstances.

5.

Explain the potential advantages and disadvantages of having organizational policies that deal with workplace romance. (LO 6) Workplace romance can lead to morale, discipline and productivity problems in addition to increasing the risk of sexual harassment claims or workplace violence if the romance P a g e 12

Chapter 4: Employee Rights and Discipline should end badly. These may be prevented if relationships between co-workers is banned.

Banning workplace romance may also lead to loss of good employees when a romance develops in order to comply with company policy.

6.

Describe the progressive discipline process as it would apply to an employee with a minor violation of workplace rules as opposed to a serious violation. (LO 6) Factors to consider when disciplining on pagexx. Options for applying these factor to progressive discipline range from situations where extremely minor violations of rules made by a long-time employee with a few if any prior violations or where extenuating circumstances dictate leniency may be overlooked entirely without even a verbal warning. Extremely serious violations by any employee with short or long seniority may be grounds for skipping to the most severe consequence (dismissal) without allowing any warnings at all.

Evaluating Alternatives 7.

The social media policy in your handbook states “Employees are not to use social media during work hours and should make references the company online or on social media sites .” Evaluate the effectiveness of the policy. In what ways can it help or hurt the organization? Should it be revised? If so, explain why and propose a revision of your own. (LO 2, 4, 6) The policy is much too vague. Prohibiting employees from using social media at any time during work hours seems to prevent using it at lunch or on breaks which seems overly restrictive. That could hurt the company in recruiting young people.

Restricting employees from any reference to the employer is also overly broad. The NLRB has ruled broad policies such as this are unenforceable because they restrict concerted activity.

A revised policy should include: o Company policy regarding use at work and away. o Employee privacy expectations when using company internet. o Guidelines for being respectful to company and clients. o Company expectations regarding employee use of company name and symbols. o Legal repercussions of defamatory remarks. o Use of privacy settings.

8.

An employee is overheard telling a new worker, “Don’t rush back from lunch.

You’ll make us look bad. Everyone takes an extra fifteen to thirty minutes. Every once in a while we get warned if the supervisor is in a bad mood, but he never does anything about it. Evaluate the relationship between the behavior of the employees and the behavior of the supervisor. What must be done to eliminate the problem of long employee lunches? (LO 6)

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Chapter 4: Employee Rights and Discipline The supervisor is part of the problem. Inconsistent enforcement of work rules such as the lunch times leaves employees wondering what is acceptable behavior and results in testing limits. It's likely that the lunch policy isn't the only one that employees have learned to ignore. Employees who conscientiously follow the policy may resent those who take advantage of the manager's reluctance to enforce it. Good employees may leave and those who test limits or ignore policies stay, resulting in low productivity and morale.

The manager needs to acknowledge his past inconsistencies and begin consistently applying the lunch policy and any other policies that have had inconsistent application.

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Activity Summaries 9.

Students compare employee handbooks. Policies on discipline, social media and workplace romance are examined. Findings are reported with presentation slides.

10.

The employee firings in the chapter opener are examined and evaluated. The actual results are: The dental assistant's firing was upheld because the firing was based on emotion and not sexual harassment. The firing of the automotive parts store employee was upheld. He had no expectation of privacy because he initiated the voice mail. The professor was reinstated after a 1-month suspension and psychological evaluation.

11.

Methods of employee monitoring are researched and presented with presentation slides.

12.

Poor disciplinary actions are presented in a role-play.

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on discipline involve assisting a non-profit with social media and volunteering to socialize pets at a local shelter. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 4 - A: Accountants With A License To Carry More Than Just A Briefcase This case allows students to study and discuss a variety of discipline issues. An accountant at an excavation contractor and his boss share a mutual gun collection hobby, often bringing guns to P a g e 14

Chapter 4: Employee Rights and Discipline work. The accountant upsets an administrative assistant by brandishing a gun in her presence, then is arrested for threatening his ex-wife with a loaded gun. After the arrest, the HR director's investigation discovers the previous presence of guns in the workplace and lack of disciplinary action taken after the administrative assistant's complaint. A gun policy is created and put in place, but doesn't seem to have much effect.

Questions: 1.

Prepare a disciplinary report for Isaac Murillo that explains a description and date of the problem(s), statement of policy, rule or practice that was violated and type of warning or consequence being taken. Explain your choices. (LO 6) Disciplinary actions against Murillo may include: • Violation of company workplace violence or bullying policies for failing to discipline employee (Carstens) for threatening another employee.

• Failing to discipline Carstens and not reporting the incident.

• Retaliating against Gloria Horner for going over his head to Bauer in HR. This is probably illegal because Horner complained about a safety issue.

• Additional actions regarding Silva’s possession of the hunting gun on company property may be necessary.

Disciplinary Action Form: • Date of the warning: • Name of employee: Isaac Murillo • Name of manager administering the warning: • Description and date of the problem: • Statement of policy, rule or practice that was violated: Listed above.

• Type of warning or consequence: Warning, Suspension or Dismissal are options, depending on the company discipline policy.

• Signature of manager • Signature of employee. May include statement such as "signature indicates only that the warning was received. It does not necessarily indicate that the employee agrees with the warning."

• Signature of witness if employee refuses to sign.

• An action plan may be included outlining steps the employee will take in order to correct the problem or improve performance, timeframe for completing steps, manager support or assistance and consequences for not competing action plan.[i]

2.

What should Bauer do about Isaac's treatment of Gloria? (LO 6) Isaac’s treatment of Gloria may have already qualified as retaliation for reporting the incident with Carsterns, and his failure to discipline him for threatening Gloria with the gun. Bauer needs to accommodate Gloria’s wishes within reason to avoid compounding the problem.

Isaac should be disciplined for the harsh treatment of Gloria.

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Chapter 4: Employee Rights and Discipline 3.

What factors need to be considered when deciding on a disciplinary action for Harold Silva? (LO 6) • • •

•

•

•

•

4.

Seriousness of the Problem How severe is the problem? For example, dishonesty is usually considered a more serious infraction than reporting to work twenty minutes late.

Duration of the Problem Have there been other discipline problems in the past, and over how long a time span? The violation does not take place in a vacuum. A first occurrence is usually viewed differently from a third or fourth offense.

Frequency and Nature of the Problem Is the current problem part of an emerging or continuing pattern of disciplinary infractions? We are concerned with not only the duration but also the pattern of the problem. Continual infractions may require a different type of discipline from that applied to isolated instances of misconduct.

They may also point to a situation that demands far more severe discipline to prevent a minor problem from becoming a major one.

Extenuating Factors Do extenuating circumstances relate to the problem? The employee completed a project late because of the death of her grandfather is likely to have her violation assessed more leniently than will her peer who missed the deadline because he overslept.

Degree of Socialization To what extent has management made an earlier effort to educate the person causing the problem about the existing rules and procedures and the consequences of violations? Discipline severity must reflect the degree of knowledge that the violator holds of the organization’s standards of acceptable behavior. The new employee is less likely to have been socialized to these standards than the twenty-year veteran. Additionally, the organization with formalized, written rules governing employee conduct is more justified in aggressively enforcing violations of these rules than is the organization whose rules are informal or vague.

History of the Organization’s Discipline Practices How have similar infractions been dealt with in the past within the department? Within the entire organization? Has there been consistency in the application of discipline procedures? Equitable treatment of employees must take into consideration precedents within the unit where the infraction occurs, as well as previous disciplinary actions taken in other units within the organization. Equity demands consistency against some relevant benchmark.

Management Backing If employees decide to take their case to a higher level in management, will you have reasonable evidence to justify your decision? Should the employee challenge your disciplinary action, you need data to back up the necessity and equity of your action and to feel confident that management will support your decision. No disciplinary action is likely to carry much weight if violators believe that they can usually challenge and successfully override their manager’s decision.

Research: What can you find out about companies that do and do not allow employees to have guns or other weapons at work? What is their reasoning? What are the laws in your state? What is your opinion on the issue? (LO 6)

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Chapter 4: Employee Rights and Discipline Students will uncover a variety of views from a variety of sources. Encourage them to find views that reflect an HR perspective. SHRM has quite a bit of relevant information at shrm.org.

Case Application 4 - B: Casino Has No Sense of Humor This case concerns a casino employee placing a “Dilbert” cartoon on the company bulletin board, which management found offensive. The employee was fired for misconduct and denied unemployment benefits. The employee appealed to an administrative judge, claiming an error in judgment, rather than intentionally breaking any rules or being disrespectful.

1.

If the casino had a policy of using progressive discipline and the hot-stove approach, evaluate the actions of the Human Resource Director in disciplining Steward. (LO 4, 6) Progressive discipline was not followed since there was no warning or suspension prior to Seward being fired. The action doesn't seem to be serious enough to skip the first steps and go directly to dismissal. Since the casino was in the process of closing anyway, providing a written warning would most likely have changed the behavior of the employee, who certainly erred in placing the cartoon. This would have prevented a protracted appeal and, in light of low morale, shown other employees that, while management did not condone the behavior, it was not heartless and vindictive.

Hot stove approach doesn't appear to have been followed either since there was no advance warning regarding posting of any cartoons.

2.

Does the surveillance camera present any ethical or legal problems? Why or why not? (LO 4) Surveillance cameras are routinely used in the course of business by casinos, and both employees and customers are typically aware of them. Since the camera is watching a relatively public area, there is no ethical or legal problem. A policy that explains the use of video surveillance to employees would have supported the employer's use.

3.

The actions of the judge seem to ignore the doctrine of employment-at-will. Do the exceptions to the doctrine seem to explain the actions of the judge? (LO 5)

• • • •

Steward didn't get his job back, so employment-at-will isn't really violated. If he were to get the job back, these elements may or may not apply: Contractual relationship: If a contract existed, that would explain it.

Implied employment contract: If promises of job security or statements in an employee handbook were made, that would explain it too.

Statutory considerations: Since the casino was closing anyway, and a WARN notification may have been made, this doesn't seem to fit.

Public policy violation: Freedom of speech doesn't seem to apply to private employees, so probably not unless he argued it was concerted activity.

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Chapter 4: Employee Rights and Discipline • •

4.

Breach of good faith: If the judge felt that the casino had breeched a promise or abused its managerial powers.

Constructive Discharge: No. He didn't resign.

Could Steward have successfully claimed that the cartoon was protected concerted speech? Who or why not? (LO 2, 6) The comic was directed at other employees, so that seems to support the claim, but no specific work practices or policies were addressed, so probably not.

5.

Research: Would the situation have been any different if Steward had posted the comic on social media? Search online for cases where employees posted cartoons or articles on social media and were disciplined by employers. Explain the outcome of those situations. (LO 2, 6) This is a follow up to question 4. Answers will vary.

Online Case Application 4 - C: TEAM FUN Questions: 1. Inform Kenny and Norton about the pros and cons of a polygraph test. Is Tony’s suggestion legal? (LO 3) 2. What are the legal implications of the employee monitoring and drug testing measures suggested? What policies should be instituted? (LO 3, 4) 3. Explain general principles of effective discipline policies to Kenny and Norton. (LO 6, 7) 4. How should Tony handle Joe's suggestion to fire Roberta? What needs to be considered? (LO 5, 6, 7)

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Chapter 5: Human Resource Planning and Job Analysis

Chapter 5: Human Resource Planning and Job Analysis Learning Outcomes After reading this chapter, students should be able to: 1.

2.

3.

4.

5.

Describe the steps in the human resource planning process and how HRIS facilitates planning.

Explain what job analysis is, the steps in the process, and how important information is collected.

Explain the purpose, importance, and elements of job descriptions.

Explain how job design can contribute to employee job satisfaction, morale, and productivity.

Explain flexible scheduling alternatives and their benefits.

Chapter Overview Samsung has been extremely successful in its transition from a producer of low cost appliances to a global leader in several different industries. HR strategy played an important part in that transition with the creation of the Regional Specialists and the Global Strategy Group (GSG) programs to recruit and prepare leaders with a global mindset. The chapter opener closes by asking students how participation in such programs would affect job satisfaction and motivation.

The chapter opener on Samsung is a great introduction to the process of human resource planning, and its connection to overall strategic organizational planning. The chapter also explains that a firm must know its mission and goals, and its strengths, weaknesses, opportunities, and threats (SWOT). Then human resources must describe jobs that will perform tasks necessary to meet the goals. Factors to consider, such as the skills of current employees, available tools, and management information systems, are presented in the discussion on how labor supply and demand are matched. Job analysis, which is used to determine the knowledge, skills and abilities required for each job, is described in detail. The chapter ends by stressing the importance of job design, job enrichment, flexible work schedules and teamwork.

Additional features of this chapter: Exhibits 5 - 1 The Strategic Direction - Human Resource Linkage.

5 - 2 HRIS Software 5 - 3 Employment Planning and the Strategic Planning Process 5 - 4 Steps in a Job Analysis 5 - 5 Department of Labor O*Net Job Content Model 5 - 6 PAQ Categories and Their Number of Job Elements 5 - 7 Example of a Job Description 5 - 8 The Foundation of Human Resources 5 - 9 Workplace Flexibility Options Page 1

Chapter 5: Human Resource Planning and Job Analysis 5 - 10 Flexible Scheduling Advantages and Disadvantages

Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

•

Tips for Success - Where the Jobs Are page 106 List of the hardest jobs for HR to fill.

•

Ethical Issues in HRM - Shades of Green page 108 Employers sometimes stretch the definition of a "Green" job.

•

Contemporary Connection - All Hands on Deck! Telecommuting in Transition page 119 Companies who have rethought telecommuting as an option.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 5 concepts: •

Environmental Scanning: Bring to class (or have students bring to class) news articles about general trends in your community and region, as well as national and worldwide. These do not necessarily have to be directly related to HR topics. Ask students in small groups to review the articles and discuss how the information in them can be used by strategic human resource planners. Articles might cover information on the cost of living, on community political or educational issues, or on new technologies that may impact business. An adaptation of this activity is to obtain clips of news broadcasts concerning business trends.

•

Small Business human resource planning: Discuss how even small businesses can strategically plan to meet their human resource needs. Students probably have good examples from their own experiences as customers and employees that illustrate effective and ineffective planning by local organizations; for example, long waits in restaurants which are understaffed; having to work consistent overtime; having to train unqualified coworkers.

Choose a well-known small business (e.g., McDonalds) or one of their examples and ask students to provide specific suggestions on what the owner/manager should do to effectively plan for HR needs. What information & data should be utilized? Who, if anyone, should participate in planning with the manager or owner?

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Chapter 5: Human Resource Planning and Job Analysis

Chapter Outline And Lecture Suggestions Introduction

Slide 3

Human resource planning is linked to the organization’s overall strategy and planning to compete domestically and globally. Overall plans and objectives must be translated into the number and types of workers needed.

Linking Organizational Strategy to Human Resource Planning

Slide 4 Learning Outcome 1: Describe the steps in the human resource planning process and how HRIS facilitates planning.

Human Resource Planning/Workforce Planning make sure the organization has the right number and kinds of employees at the right place, at the right time, capable of effectively and efficiently completing those tasks necessary to successfully accomplish the strategic objectives.

Assessing Current Human Resources Slide 5 A human resources inventory report summarizes information on current workers and their skills.

Human Resource Information Systems (HRIS) are increasingly popular computerized databases that contain important information about employees.

Succession planning includes the development of replacement charts which portray middle-to-upper level management positions that may become vacant in the near future and lists information about individuals who might qualify to fill the positions.

Determining the Demand for Labor A human resource inventory can be developed to project year-by-year estimates of future HRM needs for every significant job level and type.

Forecasts must be made of the need for specific skills, knowledge, and ability.

Exhibit 5 - 2 HRIS Software on page 108 shows how a dashboard format illustrates turnover and succession information.

Examining the Internal Labor Supply Employee turnover comes from a variety of factors.

• Retirements • Dismissals • Transfers • Layoffs • Voluntary quits • Sabbaticals • Illness • Death

Slide 7

Page 3

Chapter 5: Human Resource Planning and Job Analysis Predicting these can range from simple to complex.

• Transfers are difficult to predict since they depend on actions in other units.

• Retirements are the easiest to forecast; other factors are much more difficult to project.

• Dismissals, transfers, lay-offs, and sabbaticals are more easily controlled by management.

• Larger organizations may be able to make statistical predictions.

Staffing tables list jobs, current job holders (incumbents) and possibly a prediction of future needs.

Where Will New Workers Come From?

Slide 8 • Migration into a community • Recent graduates • Individuals returning from military service • Recently unemployed • Employed individuals seeking other opportunities, either part-time or fulltime.

The potential labor supply can be expanded by formal or on-the-job training.

Matching Labor Demand and Supply Slide 9 Employment planning compares forecasts for demand and supply of workers.

Special attention should be paid to current and future shortages and overstaffing.

Overstaffing results in reduction in force (RIF) or downsizing.

Downsizing comes with a cost.

• Severance packages • Remaining employees may suffer low morale and productivity Exhibit 5 - 3 Employment Planning and the Strategic Planning Process page 110 illustrates how strategy and employment planning are linked processes

The Job Analysis Process

Slide 11 Learning Outcome 2: Explain what job analysis is, the steps in the process and how important information is collected.

Job analysis involves gathering data about the job and interpreting what it means about the tasks and responsibilities of the position. It encompasses tracking employee’s tasks, observing, and interviewing the employees that hold the position, and getting input from those who manage or work with the person in the position Job descriptions state what the job includes, created using information gained from the job analysis.

Steps in a Job Analysis

Slide 12

Page 4

Chapter 5: Human Resource Planning and Job Analysis • • • • • • •

Understand the purpose of conducting the job analysis: recruiting, training, performance standards, evaluation and compensation all rely on accurate and thorough job analysis Understand the role of jobs and values in the organization: all must have a purpose with a link to strategy.

Benchmark positions: in relationship to other positions.

Determine how you want to collect job analysis information: several options are listed in the next section.

Seek clarification, wherever necessary: thorough understanding of the position is important.

Develop the first draft of the job description: using an appropriate format.

Review draft with the job supervisor: to ensure accuracy, supervisors and possibly job incumbents should review the results.

Class Activity: Ethical Issues in HRM - Shades of Green page 108 As part of their employment branding efforts many employers describe their jobs as "green", meaning that they are somehow beneficial to the environment, community or planet. Criteria for "green" is subjective and the sincerity of some employers has been questioned. Ethical questions at the end of this short feature provide examples and ask students to examine the ethics.

Sources of Information Slide 14 • Observation method – job analyst watches employees directly or reviews film of workers on the job.

• Individual interview method – a team of job incumbents is selected and extensively interviewed.

• Group interview method – a number of job incumbents are interviewed simultaneously.

• Structured questionnaire method – workers complete a specifically designed questionnaire.

• Technical conference method – uses supervisors with an extensive knowledge of the job (subject matter experts).

• Diary method – job incumbents record their daily activities.

The best results are usually achieved with some combination of methods.

Exhibit 5 – 4 Steps in a Job Analysis page 113 illustrates the flow of the job analysis steps.

Structured Job Analysis Techniques Slide 16 O*Net and the Department of Labor The database contains information on hundreds of careers, and is continuously updated with no cost online access.

Careers are categorized using the Standard Occupational Classification (SOC), which is used, by government and industry.

Includes: • Work Characteristics Page 5

Chapter 5: Human Resource Planning and Job Analysis • • • • •

Worker Requirements Experience Requirements Occupation-Specific Information Workforce Characteristics Occupational Requirements

Exhibit 5 – 5 Department of Labor O*Net Job Content Model page 114 describes the different mix of knowledge, skills, and abilities needed and the activities and tasks performed.

Position Analysis Questionnaire Slide 17 Position Analysis Questionnaire (PAQ)(developed at Purdue University) The questionnaire allows HRM to scientifically and quantitatively group interrelated job elements into job dimensions.

This type of quantitative questionnaire allows many different jobs to be compared with each other; however, it appears to be more applicable to higher-level professional jobs, due to reading level required completing the questionnaire.

Exhibit 5 - 6 PAQ Categories and Their Number of Job Elements page 114 Jobs are rated on 194 elements, grouped in six major divisions and 28 sections.

Job Descriptions

Slide 19 Learning Outcome 3: Explain the purpose, importance, and elements of job descriptions Describe what the job holder (incumbent) needs to be able to do in order to successfully complete the job responsibilities.

Parts of the Job Description Identifying Information • Exempt or non-exempt • Full or part-time • Identification code • Location • Supervisor • Date of last revision • Salary Supervisory Responsibilities • Does this position supervise any others? If so, whom?

Job Summary • Outline of responsibilities • Relationship to other jobs • Relationship to organizational mission Essential Functions Accuracy is important to avoid hiring mistakes.

Detailed list of tasks, duties and responsibilities: Page 6

Chapter 5: Human Resource Planning and Job Analysis Specific skills should be listed, such as: • Reading • Climbing • Math • Computer • Strength • Memorization • Accuracy • Any mental or physical requirements ADA requires employers to make reasonable accommodations for qualified individuals.

Job Specifications Qualification necessary for the job: • Knowledge • Skills • Education • Experience • Certification Disclaimer "Other duties as assigned" Maintaining Job Descriptions Slide 20 Should be reviewed at regular intervals, preferably annually.

Out of date job descriptions may no longer be relevant to the job, making good hiring decisions difficult.

Job Evaluation Specify relative value of each job in the organization.

Used to design equitable compensation program.

Exhibit 5 - 8: The Foundation of Human Resources illustrates how all HR functions depend upon a good job analysis.

Job Design, Creating Better Jobs

Slide 21

Learning Outcome 4: Explain how job design can contribute to employee job satisfaction, morale, and productivity.

Job Design How the job and tasks are organized.

Good job design provides: • Sense of accomplishment • Clear purpose • Relates to company mission • Should be considered for every position

Page 7

Chapter 5: Human Resource Planning and Job Analysis Job Enlargement Adds related tasks to a position.

Intended to make jobs more interesting and provide motivation.

Often is seen as just more work.

Slide 22

Job Enrichment Slide 23 J. Richard Hackman and Greg R. Oldham’s model of how to design jobs that provide motivation is based on five core characteristics: • Skill variety • Task identity • Task significance • Autonomy • Feedback from the job itself Set stage for three psychological elements that influence motivation, performance and satisfaction on the job.

• Understanding that the work is meaningful • Feeling responsible for the results of the work • Knowing the results of work efforts • "If you want people to do a good job, give them a good job to do" Frederick Herzberg."

Flexible Work Schedules

Slide 24 Learning Outcome 5: Explain flexible scheduling alternatives and their benefits.

Flexible Work Schedules Employers find that employee loyalty and retention increase by allowing employees to do their jobs with more.

These flexible schedules include: • Compressed workweek schedules – employees work longer days in exchange for longer weekends or other days off.

• Flex time – allows employees to schedule the time they begin their working day within guidelines.

• Job sharing – two or more employees share one job by splitting the workweek and the responsibilities of the position.

• Telecommuting – employees use technology to work in a location other than the traditional workplace.

Exhibit 5 – 9 Workplace Flexibility Options page 120 details the advantages and disadvantages of flexible scheduling Job Design and Teams Slide 25 Globalization, quality initiatives, flexible scheduling, and teams require organizations to rethink job design.

Today’s jobs often go beyond individual efforts; requiring the activities and collaboration of a team.

Page 8

Chapter 5: Human Resource Planning and Job Analysis Effective work teams require employees who are competent, flexible, able to relate well to others, and can communicate well, especially in providing and accepting feedback.

Class Activity: Contemporary Connection - All Hands On Deck! Telecommuting in Transition on page 119 summarizes challenges that some companies have had with telecommuting and changes they made as a result. Questions at the end of this short feature ask if it's possible that telecommuting just doesn't work for some companies? If students have taken online classes, they may have some ideas about the difference between the online experience and face-to-face classes. Which did they feel was more beneficial?

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Chapter 5: Human Resource Planning and Job Analysis

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

Explain human resource planning and explain why it is important to organizations.

(LO 1) Strategic human resource planning is the process by which an organization ensures that it has the right number and kinds of people, capable of effectively and efficiently completing those tasks that are in direct support of the company's mission.

2.

Explain how you would do a job analysis for the position of “Successful HR Student” and create a job description using the elements in this chapter. Explain your choices of essential functions and job specifications. (LO 2, 3) These elements from chapter 5 should be included in all answers: Steps in a Job Analysis to be followed: ▪ Understand the purpose of conducting the job analysis ▪ Understand the role of jobs and values in the organization ▪ Benchmark positions.

▪ Determine how to collect job analysis information.

▪ Seek clarification.

▪ Develop the first draft .

▪ Review draft with the job supervisor.

Sources of information to choose from: ▪ Observation method.

▪ Individual interview method.

▪ Group interview method.

▪ Structured questionnaire method.

▪ Technical conference method.

▪ Diary method.

Job Description should include: ▪ Identifying Information ▪ Supervisory Responsibilities ▪ Job Summary ▪ Essential Functions, ADA requires employers to make reasonable accommodations for qualified individuals.

▪ Job Specifications • Knowledge • Skills • Education • Experience • Certification • Disclaimer P a g e 10

Chapter 5: Human Resource Planning and Job Analysis

3.

Identify the advantages and disadvantages of the observation, structured questionnaire, and diary job analysis methods. (LO 2) Advantages of the observation method are that the analyst can collect firsthand information quickly, and can assimilate that data easily with other data. Behaviors can be accurately described. The observer has the advantage of a dispassionate, impartial opinion about the job. Disadvantages are that workers may act differently if they are observed. The analyst may be watching the wrong thing or typical events may not occur in the time period watched.

The structured questionnaire, by using a specifically designed questionnaire, obtains consistent responses because the same questions are asked of all workers. The format is easy to analyze. Disadvantages of the technique are that the wrong questions may be asked and there is often no opportunity to ask follow-up questions.

The diary method requires job incumbents to record their daily activities. It is useful in gathering subtle, non-routine or complex data about a job. It provides information that may not be obvious to the observer and allows the incumbent to record important job characteristics. Disadvantages with the diary method are that incumbents may record the wrong data or have vastly different ideas about the nature of their work. Their reports may be inaccurate, or duties considered more or less important than they actually are.

Keeping a diary is time consuming, as is the analysis of it once completed.

4.

Explain the importance of essential functions as they relate the Americans with Disabilities Act. (LO 3) The ADA requires employers to give equal consideration to applicants that can perform the essential functions of a position with “reasonable accommodation.” Employers who do not have job descriptions or with job descriptions that do not outline essential functions may have difficulty explaining why a disabled candidate cannot fill the position.

5.

Identify how each of the five core job characteristics of job enrichment could be used to improve your job or a job of your choice. (LO 4) Students should consider the following five core concepts of job enrichment: skill variety, task identity, task significance, autonomy, and feedback from the job itself.

6.

Describe the human resource planning implications when an organization implements flexible scheduling. (LO 5) A variety of options are available including compressed schedules, flex time, job sharing and telecommuting.

Necessary planning includes setting expectations, clear policies, adequate technology, ways to evaluate employee performance, management commitment.

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Chapter 5: Human Resource Planning and Job Analysis Advantages and disadvantages are listed in Exhibit 5-10 on page 121.

Evaluating Alternatives 7.

After asking a production supervisor to review several job descriptions for positions he supervises, he returns them an hour later with a note that they are all ok. You explain that you are concerned that new technology and changing work practices may require updates, but he replies “My people are great. They do what they're supposed to do and I trust them to make good decisions. If something needs to be changed, I tell them and they do it. We don't need to change the job descriptions.

Nobody reads them anyway.” How will you reply? (LO 2, 3, 4) The supervisor needs to understand the importance of accurate job descriptions for recruiting and hiring new employees, training new employees, evaluating employees, establishing fair compensation and complying with the Americans with Disabilities Act. HR depends on accurate job descriptions for employment planning.

Elements of a good response should include explanations of: • Purpose of job analysis.

• Purpose, importance and elements of job descriptions.

• How job descriptions assist in good job design.

• How good job design creates job satisfaction, morale and productivity.

8.

When proposing that your organization investigate flexible scheduling and other flexible workplace options, the CEO replies that she has no interest in “getting involved in that type of chaotic workplace.” She went on to cite Yahoo and Best Buy as examples of companies that went downhill after they allowed employees to telecommute. “Our culture and high productivity are too valuable in this competitive environment. I won't risk losing that.” Is there a way to create a flexible workplace, yet preserve an innovative and high-performing culture? Explain the risks and rewards as you see them. (LO 5) It's true that not every company and not every position are suited to telecommuting, but the reasons Best Buy and Yahoo stopped offering the option are complex. There are other options for adding workplace flexibility in addition to telecommuting. The advantages of flexible workplaces are many and nearly always outweigh the disadvantages.

Best Buy and Yahoo implemented telecommuting extensively and many key employees were rarely required to show up at their headquarters in person. Those CEOs felt that led to a deterioration of their culture resulting in less innovation and focus on their mission. This is certainly a strong risk. Employees who frequent the workplace infrequently may be less productive, more stressed, feel isolated, miss promotions and be poorly supervised.

Advantages include employee satisfaction with the ability to balance work-life responsibilities, less time spent commuting to work, advantages in recruiting and increased morale. Advantages and disadvantages of flexible scheduling and telecommuting are listed in Exhibit 5-10 on page 121 P a g e 12

Chapter 5: Human Resource Planning and Job Analysis

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Grading can be simplified by using the grading rubric above.

Activity Summaries 9.

Samsung's innovative Global Services Group program is profiled in the chapter opener.

This activity requires researching the program, its strengths and weaknesses and whether students would be interested in participation in such a program. (LO 1, 4)

10.

Using personal experience, students devise a job description and improved job design.

Findings are presented to the class, explaining the benefits of the redesigned position.

(LO 2, 3 ,4)

11.

O*Net is a source for locating relevant information about a position of interest. Findings are presented in a 2 to 3 page analysis with a job description.

12.

Qualifications necessary to perform an HR manager position are researched by interviewing HR managers in a group format. Findings are presented with presentation slides or video.

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on HR Planning include using planning skills to organize an event such as a fundraiser, food drive or doing housekeeping for a non-profit. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 5 - A Talent Management Is Tough to Deliver Elyse took over as president of a home healthcare supply company when her father retired. Soon after, many other longtime employees also retired. Replacing the lost experience was difficult and the new employees just don't seem to be able to fill their shoes. Elyse turns to the HR Director to figure out how to halt the flood of complaints for workers and customers alike.

Questions: 1.

Evaluate MedHome's HR practices from the perspective of workforce planning and talent management. (LO 1, 2) P a g e 13

Chapter 5: Human Resource Planning and Job Analysis

Medhome did not have employees at the right place, at the right time, capable of effectively and efficiently completing those tasks necessary to successfully accomplish the strategic objectives when it was necessary.

Talent management requires not only hiring talent, but developing their skills. Job descriptions were not updated, succession planning wasn't utilized. New employees were not informed of the necessary skills and were not trained to use them either. Employees moved into supervisory roles were not trained in their duties and seem to be taking advantage of the position by doing little real supervision.

2.

Where did the job description revision process at MedHome break down? Explain whether it is necessary to start over with a complete job analysis, or if another revision of the current job description will resolve the issue. (LO 1, 2, 3) Like many companies, they had a process in place, and went through the motions, but the participants gave little thought to updating the job descriptions and requirements when they were asked to do so.

Current job descriptions could be updated if those doing the updates are trained in the process and do it conscientiously.

If the jobs have evolved so significantly that the jobs don't resemble the current descriptions, starting the process over would be an opportunity to create a fresh job design that creates motivation and engagement.

3.

How could the hiring problems have been prevented? (LO 1, 2, 3) Doing a thorough job analysis would have allowed HR to update the job descriptions, essential functions and specifications. These should have been included in the requirements listed in any recruiting efforts. Testing applicants for relevant skills such as math, physical ability and personality along with providing a realistic job description would benefit the hiring process too.

4.

What would you do if you Elyse and Jacob?(LO 1, 2, 3, 4) They need to start with the basics: ▪ Assess their current human resources with a human resource inventory report.

▪ Implementing an HRIS would assist with job analysis, applicant tracking, hiring, training, succession planning, performance appraisal, job descriptions.

▪ Examine internal labor supply to see what positions may need to be replaced.

▪ Complete job analysis for the delivery positions at the very least. Supervisory positions should come next. Others should follow.

▪ Job descriptions should be thoroughly revised with job design in mind.

5.

Research: What services do HRIS systems provide that would be useful at MedHome? Would an HRIS system be cost effective in a business the size of MedHome? Find several providers of HRIS services and make a recommendation for Elyse Suarez. (LO 1) P a g e 14

Chapter 5: Human Resource Planning and Job Analysis

There are many, many providers of HRIS systems. Several have great websites with excellent videos you may want to show your classes. Consider contacting a representative from one of the providers to talk to your class.

Case Application 5-B: TURNOVER AND MORALE PROBLEMS AT TSA The Transportation Safety Administration (TSA) has faced low morale and high turnover of its screeners. Reasons cited for the problems include low pay, discrimination, and fear of retaliation for complaining. TSA employees voted to allow union representation in 2011 and a collective bargaining agreement was negotiated in 2012. The agreement replaced the pay-for-performance system that was considered discriminatory by employees. Other changes in the agreement included: a new performance appraisal process; new awards for outstanding achievement; changes in policies for attendance, tardiness and sick leave; revisions in bidding for shifts; changes in uniforms, working conditions and a new dispute resolution process.

1.

How do elements of the collective bargaining agreement address job enrichment issues? In what ways might they influence morale and retention? (LO 4) The collective bargaining agreement addressed working conditions that the employees found unfavorable, which will help with morale and turnover. Additionally, motivation factors such as recognition were addressed in the agreement. Unions also add an element of control over the workplace that the employees which may also add to job satisfaction, increase morale and reduce turnover.

2.

Choose a job analysis method or combination of methods to begin the process to redesign the TSA officer job descriptions. Why would this be the most appropriate method(s) to analyze the positions? (LO 2, 3) Encourage a variety of answers. This question will require critical thinking about which of the job analysis methods (job observation, individual interview, group interview, structured questionnaire, technical conference and diary methods) would be most appropriate and practical.

3.

How can well designed jobs reduce the attractiveness of union representation for employees? (LO 4) Some industries such as manufacturing and the government are more likely to be unionized regardless of the quality of management, but in the private sector, employees with well-designed jobs may be less likely to look to a union to provide Skill variety, autonomy, task identity, task significance and feedback.

4.

Research: What is the current status of AFGE and the TSA? Has the TSA added elements of job enrichment to the TSO positions? Will the issues they are currently negotiating lead to job satisfaction? (LO 4)

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Chapter 5: Human Resource Planning and Job Analysis The AFGE website would be a good source to learn the employee perspective and current state of the relationship.

Online Case Application 5 - C: TEAM FUN Questions: 1. Help Tony write his job description. What should be included in each section? (LO 3) 2. What techniques should he use to gather data? (LO 2) 3. How should he conduct the job analysis? (LO 2) 4. What should he say to Kenny and Norton to convince them to initiate Human Resource Planning? (LO 1) 5. How will job descriptions change the organization? (LO 1, 2, 3) 6. How can HRIS benefit TEAMFUN? (LO 1) 7. Explain how better job design and more flexible scheduling options will help the company.

(LO 4, 5)

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Chapter 6: Recruiting

Chapter 6: Recruiting Learning Outcomes After reading this chapter, students should be able to: 1.

Explain necessary elements for effective recruiting and the importance of employment branding.

Outline challenges that affect the organization's ability to recruit qualified employees.

Explain internal recruiting sources and their effectiveness.

Explain external recruiting sources and their effectiveness.

Describe the elements and effectiveness of online recruiting.

Explain the alternatives to recruiting full-time, permanent employees and the benefits to the organization of using these alternatives.

Explain the elements of recruiting for overseas positions.

Identify ways to conduct an effective job search.

2.

3.

4.

5.

6.

7.

8.

Chapter Overview Do students like your class or college so much that they try to convince friends to enroll? That's the foundation of this chapter opener that profiles The Container Store. Recruiting involves employee referral and customer contact strategy with a focus on retention. Turnover is low and the company does not need to use traditional recruiting often.

The chapter discusses the recruiting goals of organizations, the internal and external sources used for recruiting, and the global perspective of recruiting. Finally, students are given guidance on résumé writing and applying for a job.

Additional features of this chapter: Exhibits 6 - 1 A Sample Resume Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

•

Tips for Success - Best Practice Ideas Applicable to Recruitment and Hiring page 128 Lots of suggestions for effective and Equal Employment friendly recruiting.

•

Diversity Topics - Job Advertisements and EEO page 129 Funny and shockingly ignorant job ads are used as examples of what not to do.

Page 1

Chapter 6: Recruiting

•

Tips for Success - Writing Job Postings That Get Results page 131 Writing effective job ads.

•

Tips For Success - Are you Recruiting Material? Page 138 Qualities that are desirable in a recruiter.

•

Tips for Success - Breaking into HR page 140 Getting the first position in HR isn't too different from many other careers. These tips provide great advice.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 6 concepts: •

Recruitment/Selection examples: Have students share their own experiences with recruitment and selection. Try to place their experiences along a continuum of HR sophistication; e.g., some employers put out a sign, while others may have an elaborate process to attract and screen employees. Discuss the costs, benefits and effectiveness of the different approaches.

Discuss student examples of bad hiring decisions and why they may have occurred.

•

Assign students to research jobs they are interested in Online. They should bring copies of postings that interest them to class where they can share what they’ve found in small groups.

Encourage them to compare what they found to the text’s coverage of recruitment marketing, job advertisements, etc. You can adapt this activity by focusing the search on open HR jobs.

•

Invite a representative from the campus career center to provide an overview of the resources and lead a “mini-workshop” on résumés.

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Chapter 6: Recruiting

Chapter Outline And Lecture Suggestions Introduction

Slide 3

Technology has dramatically changed recruiting and will continue to do so.

What passes for cutting edge technology and "best practices" now will be old news in a year or two.

This chapter will cover the basics of effective recruiting. Examples of how to use them will evolve.

Effective Recruiting

Slide 4 Learning Objective 1: Explain necessary elements for effective recruiting and the importance of employment branding.

HR planning establishes the organization's need for talented employees. Recruiting is the process of finding them.

Employment Branding Slide 5 • Differentiates the employer and establishes a brand image for employees, the prospective employee, community.

• Strong employment brands: • Represent organizational culture.

• Assist recruitment efforts.

• Increase employee satisfaction.

• Increase employee referrals.

Recruiting Challenges

Slide 6 Learning Outcome 2: Outline challenges that affect the organization's ability to recruit qualified employees Supply of Applicants Too many - a poor economy and high unemployment may result in more applicants than the employer can process in a reasonable timeframe.

Too Few - economic growth and a tight labor market result in too few applicants.

Organizational Image • Reputation may be a liability, making prospective employees reluctant to join the organization. May result from: • Declining industry.

• Poor quality products.

• Producing pollution or over use of resources.

• Unsafe working conditions.

• Lack of flexible work environment.

• Low pay or few benefits.

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Chapter 6: Recruiting Job Attractiveness • Difficult, hazardous or distasteful work.

• Low pay.

• Dead end job.

Internal Organizational Policies Promote from within policies may work for an employer for entry-level positions, but candidates for upper-level positions may not think they have a chance.

Recruiting Costs Small recruiting budget may limit search.

Inadequate Technology Failure to use mobile job sites or social media may limit applicants.

Class Activity: Diversity Topics - Job Advertisements and EEO page 129 Ads that subtly or blatantly discriminate are becoming less common but still exist. Students are certain to have opinions on these examples. Questions at the end of this feature pose a advertisement writing challenge to students.

Internal Recruiting Sources

Slide 7 Learning Outcome 3: Explain internal recruiting sources and their effectiveness.

The Internal Search Organizations that promote from within identify current employees for job openings by having individuals bid for jobs, by using their HR management system or by utilizing employee referrals.

Advantages of promoting from within include • Promotes good public relations • Builds morale • Encourages individuals who are qualified and ambitious • Improves the probability of a good selection, because information on the individual’s performance is readily available.

• Is less costly than going outside to recruit • Helps with recruiting entry level workers • Reduces orientation and training costs.

• When carefully planned can also act as a training device for developing middle and top-level managers.

Disadvantages include • Less-qualified internal candidates may receive preferred status over better qualified external candidates.

• May hinder efforts at diversity of people or ideas.

• Infighting among rival candidates and decreased morale levels of those not selected Page 4

Chapter 6: Recruiting

Employee Referrals and Recommendations Slide 8 The chapter opener on The Container Store outlines how they effectively use employee referrals.

Advantages of using employee referrals include: • Get accurate job information from the employee.

• Tend to be more acceptable applicants than those without referral.

• More likely to accept an offer and to have a higher survival rate.

• Effective for hard-to-recruit positions.

Disadvantages include: • Possibility of friendship being confused with job performance • Potential for nepotism • Potential for adverse impact.

External Recruiting Sources

Slide 9 Learning Outcome 4: Explain external recruiting sources and their effectiveness Advertisements The best media for the audience should be selected.

Broadcast and print media reach large numbers even though their market share in shrinking.

Digital media is growing...and growing.

Job analysis should be the source of information for any ad.

Blind-box ads do not identify employer.

Employment Agencies Slide 10 Assist employers and employees find each other.

Public and State Agencies U.S. Department of Labor sponsors CareerOneStop.org Private Agencies Earn fees from employers.

Largest include Manpower, Adecco and Kelly Services Management Consulting Firms Slide 11 Also called executive recruiters or headhunters.

Specialize in middle and top level executives Hard to fill positions like IT or international assignments.

Executive Search Firms Slide 12 They seek out highly effective executives who have the right skills.

Schools, Colleges, and Universities May provide entry-level or experienced workers through their placement services. May also help companies establish cooperative education assignments and internships.

Job Fairs Page 5

Chapter 6: Recruiting Job fairs are making a comeback on or near college campuses.

Virtual job fairs allow recruiters and potential job candidates meet online, which eliminates the need to travel and even dress up.

Professional Organizations Placement services for members.

May control the supply of prospective applicants.

Professional organizations also include labor unions.

Slide 13

Unsolicited Applicants May provide a stockpile of prospective applicants if there are no current openings.

Should be treated respectfully, even if no vacancies exist.

Passive Candidates People not actively seeking employment.

Past applicants.

Contacted via social media, blogs, invitations to events.

Class Activity: Tips For Success - Are You Recruiting Material? Page 138 explains that recruiting positions are common entry-level HR jobs. Students are asked how they compare to the list of attributes that contribute to being a successful recruiter.

Online Recruiting

Slide 14 Learning Outcome 5: Describe the elements and effectiveness of online recruiting Nearly all recruiting involves some online component. Some online sites span several of the categories below.

Employer Websites Careers sections of company websites provide: • Notices of openings.

• Support employment brand.

• Promote company.

• Benefits information.

• Realistic Job Preview information.

Job Boards Allow recruiting on a worldwide platform.

CareerBuilder and Monster are largest. Others include Simply Hired, LinkedIn, Dice, The Ladders.

Employers pay roughly $400 per job posting.

Include employer tools such as applicant tracking and connecting to social media.

Include job seeker tools such as resume help, career testing, advice on job hunt.

Social Media Page 6

Chapter 6: Recruiting Second only to employee referrals in effectiveness.

Social recruiting is the use of social media to recruit job seekers.

Cost effective.

Examples include: Facebook, LinkedIn, Twitter, Blogs, YouTube, Pinterest, Instagram and others that may evolve daily.

Specialized Job Boards Targeted at specific career areas or skills such as sales, medical, technology or accounting.

Others focus on type of jobs such as internships, contractors or part-time.

Which Source to Use? The best source is probably a combination of sources.

Employee referrals and social media are most effective overall, but the right combination depends on the job, candidates and organization characteristics.

Recruitment Alternatives

Slide 15 Learning Outcome 6: Explain the alternatives to recruiting full-time, permanent employees and the benefits to the organization of using these alternatives.

When seeking contingent workers, recruitment strategies are similar.

Temporary Help Services Slide 16 Temporary employees help organizations meet short-term fluctuations in HRM needs.

Older workers can also provide high quality temporary help.

Employee Leasing.

Trained workers are employed by a leasing company, which provides them to employers when needed for a flat fee. They typically remain with an organization for longer periods of time.

Independent Contractors Independent contractors or consultants do specific work either on or off the company’s premises.

Costs of regular employees (i.e. taxes and benefits costs) are not incurred.

Workers have greater flexibility in scheduling work time.

Recruiting: A Global Perspective

Slide 17 Learning Outcome 7: Explain the elements of recruiting for overseas positions For some positions, the whole world is a relevant labor market.

Staffing Options for International Positions: Home-Country Nationals Involves sending home country employee on an overseas assignment.

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Chapter 6: Recruiting Helpful when position requires someone with extensive company experience to launch a very technical product in a country where it has never sold before.

Expatriates live and work in countries of which they are not citizens.

Some countries have limits on the number of expatriate or home-country nationals.

Host-Country Nationals (HCNs) Involve recruiting and hiring in the foreign country location of the employer.

Helpful when companies want each foreign subsidiary to have its own distinct national identity.

HCNs minimize potential problems with language, family adjustment and hostile political environments.

International recruiting for executives, regardless of nationality, may develop an executive cadre with a truly global perspective.

Your Own Job Search

Slide 18

Learning Outcome 8: Identify ways to conduct an effective job search.

Knowledge of recruiting from an HR perspective can help with personal job searches.

Even so, applying for a job is one of the most stressful situations one will face, since the search will not be quick and easy.

It is important not to get discouraged when receiving rejection letters, since competition for most good jobs is fierce, especially in times of high unemployment.

Cover Letters Still effective and expected by many employers.

CareerBuilder doesn't consider resumes without cover letters for staff positions.

Use to create a personal "employee brand".

Tips: Customize it with your strengths and personality. Don't use a template.

Make it memorable. Keep it short (200 words or so). Avoid clichés and overly formal phrases. Show what you know about the company. Proofread carefully and proofread again.

Preparing Your Résumé Slide 19 Use quality paper and easy to read type.

Proofread carefully.

Include volunteer experience.

Use typical job description phraseology.

Don’t forget about networking as an excellent way of gaining access to an organization.

Exhibit 6 - 1: A Sample Resume page 141 provides a bare-bones framework for a resume. Ask students what should be added to make the candidate more interesting.

Making Social Media Work for You

Slide 20 Page 8

Chapter 6: Recruiting Providing employers with links to your profile on sites like LinkedIn or other professional networking sites is an opportunity to go beyond your resume to share professional information.

On these sites you can list accomplishments and links to your resume along with recommendations from people in your network.

You can also ask people in your network to help you in your job search.

Be sure to check your profile often to make sure the information is accurate and up-to-date.

Class Activity: Tips for Success - Breaking into HR page 140 The tips offered here are good advice for any job seeker. Ask students to develop their own 30 second "elevator pitch" and practice it in class. Have students evaluate the effectiveness of each other's pitch.

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Chapter 6: Recruiting

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

Explain how social media and other online sources are used to recruit candidates.

(LO 4) Social media is one of the most effective recruiting tools next to employee referrals. Used to establish employment brand, contact passive candidates, target specific careers and skills. Other online sources include: employer websites, job boards, specialized job boards.

2.

What are some challenges to effective recruiting? (LO 2) Challenges include the image of the organization, attractiveness and nature of the job, internal policies, government requirements, and the recruiting budget. The best candidate might not be attracted to the organization. Company policies that prohibit hiring from the outside and promote from within might exclude the best candidate. The recruiting budget might limit the size of the applicant pool and omit the best candidate. The organization’s pay scale may not be sufficient to attract the best candidate. Failure to use technology used or expected by the candidate such as mobile sites or social media may limit applicants. Poorly written ads.

3.

Present the advantages and disadvantages of promote from within policies. (LO 3) Advantages of an internal search are that the person already knows the culture and the organization. If the candidate is selected, he or she probably will accept the job.

Background investigations and other external hurdles have already been cleared by internal applicants, so the recruiting process is a simpler one. Costs are less than recruiting on the outside. Disadvantages of an internal search are that the pool will be restricted to attitudes, skills and abilities already in the organization.

4.

Explain the advantages and disadvantages of the external recruitment alternatives.

(LO 4) Employment agencies are effective, but most charge fees.

Executive search firms are also effective at recruiting, but also charge fees.

Educational institutions provide interns and entry-level workers.

Job fairs are becoming more popular and provide an opportunity for employee development.

Professional organizations provide placement for members only.

Unsolicited applicants are most likely to be unqualified of any listed source.

Passive candidates are not looking and may be difficult to contact and interest.

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Chapter 6: Recruiting 5.

Describe the differences one may encounter when recruiting globally. (LO 7) First, companies need to define the target labor market. It may, indeed, be completely global. Companies need to explore how they will approach host-county nationals, expatriates, home-country nationals. Local labor laws may affect who the company can and cannot hire, such as in the textbook example about African nations. Compensation packages will be more complex for international hires. Hiring in some locations will require the company to consider political turmoil and possible terrorism. These issues may affect the company’s decision to send an expatriate or to hire locally. Overall, however, global recruiting can result in executives and managers with a broad understanding of the business and global economy.

6.

What services does your college career center offer to help you land a job when your education is complete? (LO 8) Colleges vary in their offerings, but common services include job and internship listings, resume help, mock interviews, seminars.

Evaluating Alternatives 7.

When you suggest that your employer use Facebook, LinkedIn, and Twitter to advertise job openings for a new clinic because the medical staff necessary is in short supply, the clinic director refuses, declaring “That's just not the image we want to present. Patients want to trust their healthcare providers. Besides, nurses and medical technicians aren't going to be looking on Facebook for a job.” How much truth is there to his statement? Do you agree? Explain your choice of the best combination of methods to recruit medical staff. (LO 1, 2, 4, 5 6) He's pretty far off base. In fact, in many areas medical professionals are in short supply and without a robust social media recruiting strategy, applicants may be very hard to find.

8.

“The only employer brand that matters is salary. If an employer pays a competitive or slightly higher salary with competitive benefits, they'll get the same applicants everyone else does.” Evaluate the statement from an opposing and agreement point of view. (LO 1, 2) Opposing: Salary can be a hurdle in getting qualified candidates to apply, but without a favorable employment brand, it may be difficult to find applicants. Millenials in particular are likely to chose an employer with a favorable reputation for workplace flexibility than a higher salary.

Agreement: Money is important to applicants and may be able to overcome the lack of an employment brand for some.

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Chapter 6: Recruiting

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Grading can be simplified by using the grading rubric in chapter one.

Activity Summaries 9.

The "next big thing" changes rapidly in recruiting, but students are asked to identify current trends and present finding to the class. (LO 2, 4, 5, 6)

10.

Three different online job-recruiting sites are researched and compared. The best are presented and demonstrated to the class. (LO 4, 5)

11.

State employment sites are compared to each other and to CareerBuilder and Monster.

Finding are presented in a paper or blog post. (LO 4, 5)

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on Recruiting involve helping non-profits recruit volunteers. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 6 - A: Growing Problems At Outdoor Solutions Rob Dow has problems recruiting and retaining good employees at his home services company called Outdoor Solutions. When he asks an acquaintance at a local staffing company for tips on finding good workers, she discovers that it isn't just a recruiting problem. Branding, image and his internal hiring practices all need attention. Students are asked to find solutions of their own.

Questions: 1.

Explain factors that complicate the recruiting process at Outdoor Solutions. (LO 1, 2) Rob thinks he knows his employment brand, but in reality, his employees are defining it on social media, and it doesn't put the company in a very good light, resulting in a poor organizational image. The work is difficult and the hours are long. Craigslist probably isn't the best source of applicants either.

2.

Suggest the best choices of internal and external recruiting methods to improve the number and quality of applicants for Outdoor Solutions. Explain your choices. (LO 3, 4) P a g e 12

Chapter 6: Recruiting

Internal: Employee referrals and promoting from within are good ideas, but employees have lost faith that promotions will actually occur. If he would make good on the promised promotions, these internal methods may regain their effectiveness.

External: State employment agencies and job fairs would be good sources of applicants.

If local colleges had landscaping programs, they should be contacted. Passive candidates may include current customers. If Outdoor Solutions has a website, including a careers section could draw some interest. Social media could support the company and employment brand with YouTube videos on lawn care and the other services they provide. Pinterest pages with landscape and holiday decorating ideas would also reach possible applicants and passive candidates. Other social media sites such as Facebook, Twitter and Instagram could promote the company's services and employment opportunities. | 3.

Research: Search several online sites for staffing issues for small businesses and suggestions for better recruiting and retention. Explain the common concerns and suggestions. Be sure to include your sources. (LO 1, 2, 3, 4, 5, 6) Encourage students to look for sites that focus on small business rather than general business sites or new sources.

Case Application 6 - B: Policing Paradise: How the Honolulu Police Department Developed its Brand The Honolulu Police Department was always fully staffed until a few years ago when retirements, openings in other law enforcement agencies, and even the events of 9/11 reduced its ranks. The organization conducted a massive recruitment campaign, built around the familystyle culture of the Department.

1.

How could the Honolulu Police Department use other internal and external recruitment methods to make recruiting more effective? (LO 3,4) Some suggestions are: • In-house referrals from existing officers who may know others interested in a law enforcement career.

• Online recruiting including sites that specialize in law enforcement, social media including YouTube, Facebook, Twitter, Instagram, and any other relevant suggestions.

• Attending job fairs in Hawaii and on the mainland.

• Ads in law enforcement and military trade journals.

• Establishing relationships with colleges that have law enforcement programs.

2.

How important is branding for law enforcement agencies? In what ways can an effective employment brand benefit recruiting efforts?

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Chapter 6: Recruiting By conducting their branding campaign, the Honolulu Police Department added to the recruiting success because potential job candidates were able to discern the type of working atmosphere and culture of the organization. This helped ensure that only applicants who were looking for the “family-style” culture would apply for the positions.

Likewise, the branding demonstrated to applicants that working with the Honolulu Police Department were nothing like a stereotypical policing organization.

3.

Design a social media strategy to reach potential applicants for HPD. How will it differ from the social media recruiting strategy of mainland law enforcement agencies? (LO 5) Students should examine the social media recruiting efforts of local and other law enforcement agencies for ideas. They may be surprised by the number of social media sites that are used.

4.

Research: Take a look at the Honolulu Police Department Career Center at www.honolulupd.org. Investigate their recruiting pages and videos. In what ways does the content support the employment brand? What suggestions can you make to improve their recruiting efforts? (LO 1, 2, 4, 5) Student responses will be varied and HPD is certain to revise the career section of their website. Students should be encouraged to look at other law enforcement web sites to determine how they recruit employees. This may provide more ideas for improving the Honolulu PD web site.

Online Case Application 6 - C: TEAM FUN Questions: 1.

Make a recruiting plan for TEAM FUN! Identify at least four principal recruiting sources for the new store. Be sure to discuss the pros and cons of each of your suggestions. (LO 1, 2, 3, 4, 5) 2.

Recommend to Tony which of the four sources should get top priority. Defend your decision. (LO 1, 2, 3, 4, 5)

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Chapter 7 Foundations of Selection

Chapter 7 Foundations of Selection Learning Outcomes

After reading this chapter, students should be able to: 1.

2.

3.

4.

5.

6.

7.

8.

9.

Explain the purpose of screening applicants and how initial screening is conducted.

Explain how application forms are used and the relevant legal issues.

Outline the types and uses of preemployment testing.

Explain several different interview formats and what interviewers need to know to conduct effective interviews.

Discuss the perceptual errors common in the interview process and ways to prevent them.

Explain the purpose and legal issues involved in conducting background investigations.

List three types of validity and explain why they are important.

Explain factors relevant to employment offers and global selection.

Outline how to personally excel in the interview process.

Chapter Overview Award shows on TV are plentiful and it's easy to lose count of all of the "Best Employer" lists published. How about an award for employers who hire people with sketchy backgrounds and disabilities? This chapter opener explains the Job Honor Awards that recognizes employers who hire employees that probably wouldn't pass the screening process of most employers, offering a chance to discuss what types of screening are relevant and why.

Chapter content includes the importance of using a series of job-related tools to select good employees is emphasized as application forms, various types of tests, interviews, background investigations and physical exams are discussed. Procedures for the selection of individuals for self-managed teams are discussed. The chapter then explains reliability, validity, and cut scores.

It concludes with advice to students on how to conduct themselves in an interview.

Additional features of this chapter Exhibits 7 – 1: The Selection Process 7 – 2: Background Investigation 7 – 3: Predictive vs. Concurrent Validation 7 – 4: Validity Correlation Analysis After Cut Score Is Raised 7 – 5: Validity Correlation Analysis After Cut Score Is Lowered 7 – 6: The Interview Boxed Features 83

Chapter 7 Foundations of Selection These features are located within the text and address current issues in HRM within the context of the relevant learning outcomes. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

•

Tips for Success - Professionalism on the Phone on page 148 shares basic skills for presenting a professional presence when speaking on the phone. Throughout the selection process, phone contact with applicants and references can be frequent. A good impression is important.

•

Did You Know – Too Much Information on page 149 describes how employers are using social networking sites to learn more about job applicants, and the potential for discrimination against an applicant based on non-job related information.

•

Diversity Issues in HRM – Interview Questions to Avoid on page 150 lists a number of interview questions that could lead to direct or indirect discrimination with examples of what is and what is not acceptable.

•

Real HR Encounters - Involving Employees in the Selection Process on page 153 provides insight from an experienced manager for successfully involving team members in selection decisions.

•

Tips for Success - Preparing Interview Questions on page 154 provides suggestions for questions that give insight into a candidates integrity, personality, decision-making skills and problem-solving ability.

•

Real HR Encounters - Checking References on page 158 gives practical tips for getting useful information from references from an experienced manager.

•

Contemporary Connection – What Were They Thinking on page 164 provides some examples of statements made by job applicants during the interview process that are perplexing at best.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 7 concepts: •

Point out the two different perspectives that students in the HRM class are being asked to take. On the one hand, they have been and will be job applicants, and can benefit from understanding the selection process so that they can put their best foot forward. On the other hand, the Human Resource Management class is teaching them how to manage the selection process as employers. While we hope that they will use reliable and valid procedures when they make selection decisions, they still should be prepared to respond 84

Chapter 7 Foundations of Selection to poorly designed interview and test questions when they are applicants. Not all employers have taken this class!

•

Ask the class how they would select employees for various businesses they are familiar with; e.g. to work at a local fast-food restaurant; to work in the department office; to help patrons at the library, etc. Do they rely solely on an interview? Can they design a simple work-sample test that would be cost effective for any of these positions?

•

Schedule an interview “practice session,” during which some students take the role of interviewers and others are interviewees for a specified job that most students would be qualified for. Provide a job description and structured interview format, and include time for students to receive feedback on interviewer and interviewee skills. You may want to have students update their resumes and bring them to their “interviews.”

•

Provide students with a list of interview questions, or use questions in the textbook. In small groups or team, have students work together to write out how they would answer the questions for jobs they are seeking after graduation.

•

Assign students to interview a professional about his or her interview experience. The student should ask the person about his or her interview experiences, such as advice, best/worst questions, what to wear, etc. This is an excellent opportunity for students to network.

•

Invite a speaker from your University Testing Center to discuss the availability of standardized tests relevant to employment situations. Ask the speaker to provide some sample test questions illustrating, for example, aptitude, achievement, and personality tests.

•

Reliability/validity. It’s easy to get bogged down with statistical concepts here. A good way to make the topic more relevant and understandable is to start with a discussion of classroom tests and grades. Ask students about factors which affect the reliability of their test scores (illness, fatigue, choice of items, etc.) Discuss the validity of their course grades for predicting future job performance. Does classroom performance provide a content-valid sample of behaviors relevant to work performance? Are grades good predictors of work performance? When might these predictions be more accurate?

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Chapter 7 Foundations of Selection

Chapter Outline And Lecture Suggestions Introduction Successful selection activities require careful planning, linked with organizational strategy and talent management.

Organizational strategies that include community involvement may lead employers to give non-traditional applicants a chance.

Class Activity: Chapter Opener page 145 When and why would you consider hiring an applicant with a criminal history, mental or physical challenges? The chapter opener explains how an HR professional created the "Job Honor Awards" to recognize employees who overcame significant employment obstacles and the employers who gave them a chance. Ask students to answer the question "Would you be willing to take a chance on an applicant with significant challenges or would you rather play it safe?" Show one of the short videos at www.jobhonor.org that profile the employers and their reasons for taking a chance.

Screening Applicants Learning objective 1: Explain the purpose of screening applicants and how initial screening is conducted.

Why Do Screening?

Slide 3 Screening sorts out applicants that do not meet minimum qualifications based on job specifications.

The selection process is composed of a number of steps, each of which is intended to provide additional information for decision making. (Exhibit 7-1) Initial screening interview Completion of the application form Pre-employment tests Interview Conditional job offer Background investigation Medical or physical exam Job offer.

Initial Screening Slide 4 Involves screening of inquiries and screening interviews to develop a pool of qualified potential candidates.

The screening interview allows HRM to describe the job in enough detail, so the candidates can determine if they are serious about applying.

Phone screening interviews should be kept short and concentrate on the applicant’s qualifications.

Job description information is shared along with a salary range.

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Chapter 7 Foundations of Selection Class Activity: Tips for Success - Professionalism on the Phone on page 148 Many people do not understand the difference between casual phone conversations and professional communication skills necessary at work. This short feature outlines tips for a professional presence whether the student is conducting an interview or being interviewed.

After reading the feature, ask students to answer the questions that allow them to add their own experience.

Application Forms

Slide 5 Learning Objective 2: Explain how application forms are used and the relevant legal issues.

Application forms give a job-performance-related synopsis of an applicants’ life, skills, and accomplishments as well as determine if an applicant can follow directions.

Legal Issues Slide 6 Omit items which are not job-related: sex, race, color, religion, national origin, disability, and age.

Typically includes statement giving employer the right to dismiss an employee for falsifying information.

Includes “employment-at-will” statement to clarify that new employees are not guaranteed employment.

Asks for permission to check work references.

Weighted Application Forms Slide 7 Individual items of information are validated against performance and turnover measures and given appropriate weights.

Data must be collected for each job to determine how well a particular item (e.g., years of schooling, tenure on last job) predicts success on target job.

Online Applications Slide 8 Feed applicant information directly into HRIS applicant tracking systems.

Benefits include: Cost savings from reducing use of paper.

Better tracking of applicants and hiring processes.

Better compliance with EEO and other employment laws.

Class Activity: Diversity Topics - Questions to Avoid page 150 May misconceptions exist about what can be asked on an application and in an interview. Survey students about questions that can get employers into trouble. Make a list and compare it to the list in this feature.

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Chapter 7 Foundations of Selection

Pre-Employment Testing

Slide 9

Learning Objective 3: Outline the types and uses of preemployment testing.

Testing determines if applicants have the relevant skills they claim to possess.

Work Sampling and Performance Simulation Tests Slide 10 Job analysis is used to develop a miniature replica of the job.

Applicant is required to demonstrates specific competencies relevant to the position.

Assessment Centers Administer performance simulation tests, frequently used to assess managerial potential.

A series of tests and exercises, including individual and group simulation tests, is evaluated by executives, consultants or psychologists.

Global Differences in Testing Slide 11 Selection practices must be adapted to cultures and regulations of host country.

Class Activity: A surprising number of students have taken pre-employment tests measuring aptitude, honesty (consciousness), personality, math skills, computer skills...

Ask them to share their experiences and opinions. Make a list of the employers they have encountered that require tests. Several are available online (www.criteriacorp.com) as are sites that offer ways to cheat the tests.

Interviewing Applicants

Slide 12 Learning Objective 4: Explain several different interview formats and what interviewers need to know to conduct effective interviews.

Interviews involve a face-to-face meeting with the candidate to probe areas not addressed by the application form or tests. They are a universal selection tool.

Comprehensive interviews may involve several interviewers on different levels of the organization. Communication skills, motivation, attitude and cultural fit may be assessed.

Interview Formats Slide 13 One-on-One A Manager or HR professional conducts interview with one candidate.

Most common type of interview by far.

Panel Interviews Several interviewers or a panel conduct interview with one candidate.

More reliable evaluation of candidate if interviewers compare observations and impressions.

May be used to involve the work unit if organization is team-oriented.

Interviewers should be trained to prevent accidentally asking discriminatory questions.

Class Activity: Real HR Encounters - Involving Employees in the Selection Process page 153.

88

Chapter 7 Foundations of Selection An experienced manager provides advantages and disadvantages of employee involvement in the process. Ask students individually or in groups to add to each list.

Online Interviews Increasing in popularity Web-based platforms commercially available allow real-time or on-demand interviews.

Structured Interviews/Directive Interviews Slide 14 Follow specific format with specific questions.

Good for determining qualifications in specific areas.

Obtain consistent information when used for several candidates or by different interviewers.

Unstructured Interviews/Non Directive Interviews Open ended questions allow applicant more freedom of expression.

Good for assessing personality and soft skills like communication style.

Difficult to compare applicants because information obtained can vary.

Behavioral Interviews Questions ask applicant to explain how situations should be handled or were handled in past experience.

Allow insight into problem solving and communication skills.

Candidates are observed not only for what they say, but how they behave in comparison to the competencies identified for the position.

Past performance in similar environments and situations is a better indicator of success than any other factor.

Stress Interviews Designed to create a stressful situation, making the candidate uncomfortable.

Determine how candidate behaves under pressure.

What Interviewers Need to Know Slide 15 Inexperienced interviewers need training in order to make a good impression and avoid making mistakes. Once they have been trained in the process and relevant laws, interviewers should prepare for the interview by: Review job description and job specifications before the interview.

Prepare a list of questions.

Review the candidate's application and resume.

Open the interview by putting candidate at ease and explain the interview format.

Ask questions and listen.

Take notes.

Close the interview by explaining what to expect next.

Write evaluation of applicant while the interview is still fresh in your memory.

Class Activity: Tips for Success - Preparing Interview Questions page 154 After reading this feature that suggests interview questions designed to assess a variety of topics, ask them to answer the question: Would this list give you an adequate impression of the candidate? What other traits are important to know?

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Preventing Perceptual Errors

Slide 16 Learning Objective 5: Discuss the perceptual errors common in the interview process and ways to prevent them.

Interviewers are easily distracted by first impressions of the candidate's appearance or demeanor. These things influence the perception of more relevant factors, leading to poor hiring decisions.

Impression Management Slide 17 The applicant’s desire to project the “right” image may skew the interview results.

Interviewers have short and inaccurate memories: note-taking and videotaping may help.

Interviews are best for determining organizational fit, motivation and interpersonal skills.

They are especially useful for high-turnover jobs and less routine ones, such as managerial positions.

Interviewer Bias Interviewers create a positive or negative impression of the candidate based on factors learned outside the interview.

Research has demonstrated many possible biases with decisions based on interviews, such as those caused by seeing the candidate’s résumé, application form, test scores, gaps in employment, social media profiles or appraisals from other interviewers.

Class Activity: Both cases for this chapter, have questions that involve interviewer bias and impression management that presents problems. If the cases are not assigned, or even if they are, those questions provide a comprehension check at this point of class discussion.

Realistic Job Previews Slide 18 Sometimes a recruiter or an advertisement may present a job favorably, but the job does not live up to expectations. This increases replacement costs due to large turnover when disillusioned employees quit after training.

A realistic job preview (RJP) presents unfavorable as well as favorable information about the job to applicants.

May include brochures, films, tours, work sampling, or verbal statements that realistically portray the job.

Research supports the theory that RJPs reduce turnover without lowering acceptance rates.

Class Activity: Many organizations provide online videos with realistic job previews(RJP). Common ones include law enforcement, positions involving helping people with disabilities or jobs that involve working outside in the elements. Some organizations that have RJP videos online include Target, Comcast, Bon-Ton (Case 7-B) and Southwest Airlines. If the technology is available, show a couple of those videos and survey students as to whether their opinion of the job or employer has changed.

Background Investigations

Slide 19 90

Chapter 7 Foundations of Selection Learning Objective 6: Explain the purpose and legal issues involved in conducting background investigations.

Conditional Job Offers Slide 20 Tentative job offer made if candidate interviews successfully.

A background investigation is performed to verify that information on the application form is correct and accurate If background investigations turn up problems, the conditional job offer can be withdrawn.

Typical information verified includes: references former employers educational accomplishments legal status to work in the United States credit references criminal records background checks online searches such as specialized background check websites, Google and social media.

Medical/Physical Examination Slide 21 Should be used only to determine if the individual can comply with the essential functions of the job.

Americans with Disabilities Act requires that exams be given only after conditional job offer is made.

Qualified Privilege Slide 22 Employers may discuss employees with prospective employers without fear of reprisal as long as the discussion is about job-related documented facts.

Class Activity: Real HR Encounters - Checking References page 158.

How is reference checking similar to playing poker? This experienced manager explains how to tell when an applicant or reference is bluffing. What if a former employer is stingy in providing any information? Read about the "tells" that allow you to learn something from employers who hold their cards close. Students may have something to add.

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Chapter 7 Foundations of Selection Reliability and Validity in Testing Slide 24 Learning Objective 7: List three types of validity and explain why they are important.

Reliability, validity, and cut scores can all help predict which applicants will be successful on the job. Consistency in evaluating applicants is essential to finding the best employees and preventing discrimination or claims of discrimination.

Reliability Slide 25 Reliability is the ability of a selection tool to measure an attribute consistently.

If an organization uses tests to provide input into the selection process, then these tests must give consistent results.

Validity Slide 26 The relationship between scores on a selection tool and a relevant criterion, such as job performance. Validity indicates how well a selection tool predicts job performance.

There are three specific types of validity: content, construct, and criterion-related.

Content validity Slide 27 Content validity is the degree to which the content of the test, as a sample, represents situations on the job.

All applicants for a job receive the same test or questions so they can be properly compared.

Construct validity Construct validity is the degree to which a particular trait is related to successful performance on the job.

Construct validity is the most difficulty type of validity to prove because you are dealing with abstract measures, such as, intelligence.

Criterion-related validity Criterion-related validity is the degree to which a particular selection device accurately predicts the important elements of work behavior.

There are two ways to establish criterion-related validity: predictive validity or concurrent validity (Exhibit 7-2).

Predictive validity which uses selection test scores of applicants to compare with their future job performance.

If an organization found statistically that employees who scored below a predetermined score – cut score – were unsuccessful performers, then management could appropriately state that any future applicants scoring below the cut score would be ineligible for employment.

Concurrent validity validates tests using current employees as subjects. If a relationship appears between test scores and performance, a valid test is found.

Validity Analysis Correlation coefficients (validity coefficients) ranging from +1 to –1 summarize the statistical relationship between an individual’s test score and his/her job performance.

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Chapter 7 Foundations of Selection The closer to an extreme 1, the more accurate the test, and therefore, the test is a good predictor of job performance.

Cut Scores and Their Impact on Hiring Slide 28 Cut scores on a selection device can be determined by validity studies.

Applicants scoring below the cut score are predicted to be unsuccessful on the job and are rejected.

Exhibits 7-4 and 7-5 show the impact on hiring when cut scores are raised or lowered.

Class Activity: Students may have examples of bad assessments or tests they have taken.

Allow a few to explain their experience and have them which type of validity is missing.

The Employment Offer Slide 30 Learning Objective 8: Explain factors relevant to employment offers and global selection.

The Offer At the end of the process, candidates who have successfully completed all steps receive an employment offer.

Hiring decision is usually made by a manager.

Offer is usually extended to the employee by HR. Will the Candidate Accept?

Slide 31 Candidates with a positive perception of the employer that is reinforced throughout the process are more likely to accept offers.

Employment brand must be reinforced throughout the process.

Unsuccessful candidates should be notified quickly and respectfully.

Selection from a Global Perspective Slide 33 Selection criteria for international assignments includes such factors as interest in working overseas, ability to relate to different cultures and environments, and supportiveness of the candidate’s family (“family situation factor”).

Women executives have done well abroad in Asia and Latin America, despite past reluctance to assign them to these countries.

Class Activity: Contemporary Connection - What Were They Thinking?

After reading the list of mistakes job seekers commonly make, ask students to add to the list. If you're in need of a bit of humor, CareerBuilder has these actual situations on their website, www.careerbuilder.com: • Applicant warned the interviewer that she “took too much valium” and didn’t think her interview was indicative of her personality.

• Applicant acted out a Star Trek role.

• Applicant asked for a hug.

• The candidate tried to Google the answer to a question.

• Applicant attempted to secretly record the interview.

• Applicant brought personal photo albums.

• Applicant called himself his own personal hero.

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Chapter 7 Foundations of Selection • • • • •

Applicant checked Facebook during the interview.

Applicant crashed her car into the building.

Applicant popped out his teeth when discussing dental benefits.

Applicant kept her iPod headphones on during the interview.

Applicant set fire to the interviewer’s newspaper while reading it when the interviewer said “Impress me”.

Final Thoughts: Excelling at the Interview Slide 35 Learning Objective 9: Outline how to personally excel in the interview process.

Interviews play a critical role in the hiring process.

Suggestions for making your interviews as an applicant successful are: Do some homework on the company.

Get a good night’s rest the night before.

Dress appropriately.

Arrive for the interview a few minutes early.

Use a firm handshake.

Maintain good eye contact.

Take the opportunity to have practice interviews.

Thank the interviewer at the end of the interview and follow up with a thank you note.

Class Activity: Call in the Career Center Ask your college Career Center to join your class to share their services and advice.

Class Activity: Fill-in-the-blanks

Slide 36

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HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

Outline the steps in the selection process and explain which steps you believe are most important. (LO 1, 2, 3, 4).

The eight-step process consists of initial screening, completion of the application form, employment tests, comprehensive interview, background investigation, medical or physical examination, and the job offer. This list is introduced on page 146 and expanded coverage of each item continues throughout the chapter.

2.

Explain guidelines for developing effective interview questions that respect the legal rights of the applicant. (LO 4)?

Interview questions must be relevant to the applicant's ability to do the job as described in the essential functions and job specifications in the job description. Legal requirements of relevant federal, state and local EEO laws must be considered. Any question that creates an adverse impact must be avoided. Diversity Topics on page 150 explains several of these concepts.

3.

Explain the advantages and disadvantages of searching social media as a screening tool for applicants. (LO 6) Advantages: Employers are able to obtain a more comprehensive picture of the candidate, since social media sources such as Facebook, twitter and LinkedIn will include personal as well as professional information. Other advantages include the speed at which you could obtain the background information (click of a mouse) and the no-cost option this type of search provides.

Disadvantages: The information obtained could be misinterpreted or create a false positive or negative impression of the candidate if obtained prior to the interview. It could also place the employer in a position having information about the candidate's race, religion, disabilities or other identifying information that may open the employer to accusations of making discriminatory decisions or violating employment laws.

Topic is covered in Tips for Success: Too Much Information on page 149, coverage of Preventing Perceptual Errors on page 155-156 and Excelling at the Interview on page 165.

4.

What are the advantages of conducting background investigations on applicants and what do employees need to consider when conducting the investigations? (LO 6)

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Chapter 7 Foundations of Selection Unfortunately, applicants often are not completely honest on resumes and application forms. It is important to check relevant facts in an applicant's background, such as educational degrees, number of years of experience, and job-related driving and criminal records. Background checks verify information provided by the candidate, and also alert employers to potential negligent hiring issues. Employers need to be particularly careful that if they obtain background information on candidates that could potentially bias their job choice decision, they do not use it. In addition, employers need to be careful that they do not violate employments laws in obtaining this information. The topic is covered extensively on pages 157-159.

5.

What mistakes could employers make that would influence a qualified candidate to turn down a job offer? (LO 4, 5,8) Candidates are less likely to accept offers form organizations that fail to pay attention to creating a positive impression and desirable employment brand, fail to convince the candidate that the organization will assist the candidate in achieving personal goals, or have a culture that the candidate does not feel is a good fit. These are covered in The Employment Offer section on page 164

6.

How do the types of validity differ? Explain their use in evaluating testing and in preventing discrimination. (LO 7).

Reliability is confidence that an indicator will measure the same thing every time.

Validity is the confidence that what is stated as measured is actually measured. For instance, measuring height with a yardstick is more valid than measuring weight with a yardstick.

There are three types of validity important in the selection and recruiting phases of human resource management. Content validity is the degree to which the content of the test represents the actual work situation. For example, a typing test has high content validity for a typist. Construct validity refers to the degree to which a particular trait is related to successful job performance. Honesty would be important for a bank teller.

Criterion-related validity is the degree to which a particular selection device accurately predicts the important elements of work.

Human resources professionals are concerned with validity because, legally, employment tests must be shown to be relevant to the job for which a person is hired, as are other selection criteria. For example, in the Griggs vs. Duke Power case, educational level was found not to be a valid indicator of performance for the job Griggs applied for.

The topic is covered extensively on pages 160 - 163.

Evaluating Alternatives 7.

What do you think of realistic job previews? Would you be more likely to choose a position where recruiters emphasized only the positive aspects of the job? (LO 5) 96

Chapter 7 Foundations of Selection

Students should recognize that recruiters are generally going to emphasize the positive, and that there are many benefits to finding out as much information as possible before accepting a job offer. Students can take an active role in ensuring their own realistic job previews by asking lots of questions and also taking the initiative to find out more about the company. Possible resources include the company's Web page, alumni from your school who work with the company and information interviews with other current employees. It's better to enter a job with accurate expectations, than to be disappointed later when the job or employer doesn't meet your needs. Ask for specifics (number of hours worked, types of job assignments, etc.) rather than generalities, such as whether it's a "good" company to work for.

The topic is covered on pages 156 - 157.

8.

"All former employers will tell me anymore is the dates of employment. Period.

Calling them is a waste of time.” Do you agree or disagree with this statement.

Explain. (LO 6) Many employers are extremely cautious when answering questions about former employees. Negative statements have led to law suits, so inquiries to former employers usually end up with a confirmation the employee worked there and nothing more.

Former employers should always be called to confirm the employee actually worked there. At the very least, you will have confirmation the applicant is telling the truth about past employment, and depending on the situation, the concept of qualified privilege protect the employer who provides accurate information. This is especially true if the applicant has authorized the background investigation. Failure to check references can lead to legal problems if an employee with a troubled past makes a costly mistake or commits a crime.

The topic is covered on pages 157 - 159.

9.

"Untrained interviewers can make mistakes that are very costly to the organization.” Discuss errors in perception and selection that interviewers can make and how to avoid them. (LO 4) An untrained interviewer can make some of the following errors: • Show bias toward a job candidate based solely on a stereotypical physical characteristic, such as, height. (A very tall candidate can play basketball well.)

• Ask inappropriate or illegal questions during the interview process.

• Talking more than the candidate, which could hinder discovery of important jobrelated information about the candidate?

• Skip reference checks because of the candidate’s likeability.

Some ways to avoid these situations is to: • have a set of prepared questions that will be asked of all candidates.

• review the application and résumé of the candidate before meeting with them.

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take notes during the interview and ask questions to clarify any candidate responses.

• pay attention to a candidate’s interpersonal skills.

• keep biases in check.

The topic is covered on pages 152 - 157.

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Activities vary in the type of research and presentation required, but evaluation forms or rubrics may be used to communicate expectations and facilitate easier grading. The form below can be accessed on the website and contains basic elements for grading activities. You may wish to customize it by changing requirements or adding point values.

Activity Evaluation Form Objective/Criteria

Performance Indicators Below Requirements

Needs Improvement

Meets Expectations

Exceptional

Length

Insufficient length to Length significantly discuss issues and apply under minimum. relevant concepts.

Format

Many errors

Few errors in grammar Error free punctuation, spelling or typos.

Professional quality product.

Research

Relevant concepts are not applied or are applied on a surface level that does not indicate depth of understanding beyond knowing the definitions.

Concepts from the text are mentioned, but explanation and application indicate a minimal level of understanding of relevant concepts and issues.

Relevant concepts from the chapter material are applied in adequate depth to indicate understanding of the concepts and issues.

Thoughtful and insightful discussion of the concepts learned in chapter material as they apply to the activity.

Presentation

Paper or presentation contains many errors and lacks professionalism or was not presented.

Paper or presentation contains errors or shows a lack or preparation that distracts from the message.

Paper or presentation is Paper or presentation is free of errors. creatively and professionally presented.

Activity Summaries: 98

Adequate length to Length requirement fully discuss issues and used carefully to apply relevant concepts. provide excellent On the low side of content. length requirement.

Chapter 7 Foundations of Selection 10.

Students will use a job description presented in chapter 5 to develop a list of interview questions, decide how to evaluate answers to the questions and stage a mock interview.

The interview is to be critiqued and a summary of the experience is to be presented in a paper or video. (LO 4)

11.

Students will research the topic of employer use of a candidate's social media profile as a selection device. Both sides of the issue are to be presented with 3 to 5 presentation slides. (LO 6)

12.

Students will obtain a copy of your college's guide to job interviews and compare it to a guide obtained from another college. If you college does not have such a guide, students can create one for them. (LO 9)

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on Selection are a variety of projects that range from helping middle school students get summer jobs to helping non-profits screen volunteers.

A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 7-A: Western Motors Overhauls the Interview Process Case Summary Western Motors has coasted along, like many companies, allowing experienced managers do their own interviewing. Problems arise at Western Motors when the service manager's interviewing philosophy results in hiring a few "bad apples" that put the dealership's reputation at stake. What can the HR director do to put the brakes on a dealership that is speeding downhill?

1.

Evaluate Greg's “hire for attitude, train for skill” approach to hiring. (LO 1, 4, 5) Greg seems to hire based on his perception of an applicant's attitude and it turns out he isn't a very good judge of attitude. He seems make a lot of perceptual errors such as being easily influenced by applicants making a good first impression (impression management) and interviewer bias created when candidates like Justin emphasize impressive accomplishments like volunteering for his church and presenting photos of race cars.

2.

How could preemployment testing improve the hiring process for the service tech position? What type of validity would be the best predictor of job success? (LO 3, 7)

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Chapter 7 Foundations of Selection Work sampling and performance simulation tests would determine how well candidates can perform some of the tasks that are required for success in the service tech position. (page 151) Criterion - related validity determines how well a selection device such as the work sampling and performance simulation tests predict success on the job. (page 161) 3.

What type of interview does Greg seem to use? How can his interview process improve? (LO 4, 5) Greg relies on unstructured interviews to give him an opinion of an applicant's attitude.

The problem is that he's easily fooled by impression management and makes decisions based on interviewer bias. His philosophy of "hire for attitude, train for skill" isn't appropriate when making hiring decisions for a skill-based job like and auto mechanic.

A more structured interview process with specific questions that relate to skills and experience would allow consistent comparison of applicants. Behavioral interviewing could address the type of problem solving skills that may be necessary for the position. (page 153)

4.

What types of background checks would you recommend? (LO 6) Reference checks could help determine if applicants have the background and accomplishments they claim such as the volunteer work and building race cars. Former employers will verify work history at a minimum. If they are willing to offer more information as they are allowed by qualified privilege, they may address attendance, attitude, productivity and other issues. Education may be relevant if the service tech position has an education requirement. Legal status to work in the U.S. is required of all employees. Western Motors is obligated to check status of new employees. Criminal records may be relevant if the candidate has a conviction for a related offense such as theft or driving under the influence. Online checks of search engines such as Google may turn up useful information as well as information that requires caution such as age, religion, marital status, race and others that should not be considered in the hiring process. (page 157-159)

5.

Research: What mistakes were made in the hiring process by Greg and Kara?

Research common hiring mistakes and how to avoid or fix them.(LO 1, 4, 5, 6, 7) Perhaps if HR did the initial screening, a few of his problem employees would have been screened out. Checks with references and former employers would also provide valuable screening information. Kara also needs to do some training on what questions to ask and what to look for when conducting the interview. (page 155 - 156) Good sources of information include CareerBuilder, SHRM, Workforce, Monster, Forbes and most other business publications and websites. Counsel students to avoid blogs which may give unreliable advice.

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Case Application 7-B: Beauty Is Only Skin Deep Case Summary It turns out that being a successful "Beauty Advisor," also called cosmetic associates, takes different skills than other types of sales positions. Turnover for the Beauty Advisor position at Bon-Ton stores was much higher than other sales positions although they received more extensive training and had higher income potential. The selection process needed a quick makeover before things got ugly.

For more information on how Bon-Ton solved this hiring problem, go to www.shrm.org and search for "Hire Intelligence - Use data to discover what really makes a top performer." From May, 2011.

1.

What attributes should be included in the Bon-Ton assessment? Explain how you would structure an interview to determine if a candidate possesses those attributes.

(LO 3, 7) Students may assume that friendliness, good customer service and a love of beauty products would be important attributes, but when successful beauty advisors were surveyed, factors such as problem-solving ability, situational judgment skills, cognitive ability, even math and logic had higher correlations with success and longevity in the position.

2.

The interview process may include screening that emphasizes accuracy in completion of the application. A structured interview process would include questions that address the specific skills shown to correlate with success in the position. Behavioral interviews could determine the problem solving ability of applicants and how they have resolved problems in the past. (page 152 - 154) Explain whether impression management and interviewer bias would be more of a concern when hiring beauty advisors than when hiring for other sales positions. (LO 5) When the term "beauty" is in the job title, interviewer bias toward attractive candidates that influences perception of ability could be a real problem. Candidates may assume that attractiveness is a qualification and attempt impression management with artful application of cosmetics for the interview encounter. Attractiveness probably shows a poor correlation with effective cosmetic sales and reduced turnover, so interviewers should be careful to not let appearance interfere with assessing the candidate's qualifications. (page 155 - 156)

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Chapter 7 Foundations of Selection 3.

What type of validity is indicated by the findings that Beauty Advisors now remain in their jobs 12 percent longer and sell 2.1 percent more than candidates hired before the new assessment? Explain your choice. (LO 7) Content Validity exists when skills tested accurately represent the job. The skills tested in the assessment are not explained, but since the candidates are more successful as evidenced by the 2.1 percent increase in sales, they probably have Content Validity.

Construct Validity evaluates how well a particular test measures a specific behavior or construct. We don't know if the new assessment measures any specific trait or "construct" such as persuasiveness or agreeableness so we can't say it's relevant with any certainty.

Criterion Validity exists when a selection device accurately predicts a specific level of performance and is the most clearly indicated from the facts given. Applicants passing the assessment stay longer and sell more, proving the assessment is successful to a degree in predicting performance. Predictive validity was probably used to determine whether candidates who passed the test performed better and by how much. If current beauty advisors took the test and the results were compared to their length of time on the job and sales ability, concurrent validity would be relevant too.

4.

Research: Are Bon-Ton and other retailers making efforts to recruit and hire candidates with that cognitive and problem-solving ability? Search videos, realistic job previews, job postings, and articles for evidence and summarize your findings.

Include your sources in your answer. (LO 1, 2, 3) Sources such as Bon-Ton's careers site, Glassdoor, Indeed and even Bon-Ton's YouTube channel may be good sources of information. A search for "Bon-ton beauty advisor" will turn up quite a bit of information.

Online Continuing Case Application 7-C: Team Fun! Case Summary Team Fun!, a sporting goods manufacturer and retailer are ready to expand into south Florida and are shocked to find that they have over 1000 applicants. Students will apply concepts from chapter 7 to develop plans for screening, testing, interviewing, conducting background checks and selecting all staff in a two week timeframe.

Questions: 1.

Devise a screening mechanism for each job category.(LO 1) 2.

What kinds of performance simulation tests would be appropriate? (LO 3, 7) 3.

Set up an interview protocol for each job category. (LO 4) 4.

Should Bobby select the managers himself? Should Bobby select all the other employees? (LO 4) 102

Chapter 7 Foundations of Selection 5.

If you want Tony to try again with background checks and drug testing, prepare a carefully worded statement for him to present to Kenny and Norton. If you think these steps are undesirable, explain your position.(LO 4, 6)

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Online Continuing Case Application 7-D: Life+Style Case Summary Life+Style, a sportswear apparel manufacturer and online retailer emphasizes style, sustainable business practices and ethical behavior. When Carson, HR Director uncovers hiring practices that may expose the company to legal problems, he has to explain the situation and the potential problems to Isabella, the founder and COO. Students will apply concepts of selection from chapter 7 to identify the problems and explain a safer process to screen candidates.

Questions: 1.

Explain how online background information should be used to Isabella. (LO 1, 4, 5) 2.

What perceptual errors could occur as a result of Cara's screening? (LO 5) 3.

What legal liability does Cara's screening expose the company to if the group of hired candidates is ethnically diverse? (LO 6) 4.

What background information should be checked for the sales representative position and at what point should HR conduct the background investigation? What does HR have to tell the candidates about the background checks? (LO 2, 6)

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Chapter 8: Onboarding, Training, and Developing Employees

Chapter 8: Onboarding, Training, and Developing Employees Learning Outcomes After reading this chapter, students should be able to: 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Explain the concept of onboarding and socialization.

Identify the three stages of employees’ progress through as they learn organizational culture.

Identify the purpose and key personnel involved in new employee orientation.

Explain the purpose and essential contents of an employee handbook.

Explain the ADDIE model of training design.

Outline a variety of employee training methods.

Describe the methods and criteria involved in evaluating training programs.

Explain the purpose of employee development and methods used.

Discuss the term organizational development and the role of the change agent.

Explain the term learning organization.

Explain issues critical to international training and development.

Chapter Overview Fred Keller didn't start out intending to move bus stops, his goal was to help the unemployed.

After two disappointing attempts to create "welfare-to-work" programs at his manufacturing company, he found that getting jobs for the long term unemployed didn't always mean that they stayed employed. He discovered that many low-income and chronically unemployed people didn't understand the rules of middle-class culture that were necessary to keep jobs, so his company developed a program to teach them. And move bus stops to make it easier to get to work.

This chapter provides an overview of methods used for employee orientation, training, employee development and organizational development. Special topics include the role of employee handbooks, change agents, training and development evaluation, and the concept of “learning organizations,” as well as issues relevant to international training and development.

Additional features of this chapter: Exhibits 8 - 1 Best Practices for Onboarding.

8 - 2 A Sample Employment Handbook Disclaimer.

8 - 3 Determining Training Needs 8 - 4 What Adults Remember 8 - 5 Lewin's Change Process Boxed Features Page 1

Chapter 8: Onboarding, Training, and Developing Employees These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

•

Tips for Success Orientation Checklist on page 175 recommends that a checklist be created for new employee orientation sessions, to make sure that regardless of who administers the orientation, the new employees are exposed to the same information.

•

Real HR Encounters - HR's Role in Creating and Sustaining Culture page 175 advice from an HR professional on developing culture that supports communication and participative decisions.

•

Diversity Topics - Training, Development and EEO page 177 involves EEO’s application to the training process, noting that equal training opportunities must exist for all employees.

•

Tips for Success - Becoming a Trainer page 180 Training is a growing area of HR and this feature explains some of the skills and employment opportunities.

•

Contemporary Connection - Training Expenditures page 183 discusses the amount spent by U. S. companies annually on employee training and development.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 8 concepts: •

Students enjoy sharing their experiences with orientation. There are a wide variety of approaches taken, since this is an area that is not regulated and allows a lot of creativity on the employers’ part. In many cases, there is considerable room for improvement. A good discussion focuses on why many employers do not do an effective job of orientation (lack of awareness, time and other costs, lack of resources) and what the costs are of not doing a good job.

•

A good outside-of-class project is to have students critique an existing orientation process. They can focus on one they went through or interview managers and employees at a local organization to obtain information on the process.

•

Bring in sample brochures for commercial training and management development programs. Have students review the information, noting the objectives, methods and costs involved. Discuss how they, in their future roles as managers and business owners, would decide whether to attend or whether to send employees to a particular program.

How would they evaluate the need for and effectiveness of the program described?

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Chapter 8: Onboarding, Training, and Developing Employees •

Have students discuss observations they have made at work or as customers, which indicate a possible training need. (They may describe poor university teaching skills, for example or poor service at a restaurant). Then, discuss some other factors which may have led to their observations; i.e., low motivation, poor selection. How does a manager determine that training is the solution to organizational problems? What type of program would be effective for the problems they have observed?

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Chapter 8: Onboarding, Training, and Developing Employees

Chapter Outline And Lecture Suggestions Introduction

Slide 3

Onboarding, socialization, orienting, training and development are all used to help new employees adapt to their new organizations and become fully productive.

Ideally, employees will understand and accept the behaviors desired by the organization, and will be able to attain their own goals by exhibiting these behaviors.

Onboarding

Slide 4 Learning Outcome 1: Explain the concept of onboarding and socialization.

Onboarding or Socialization is the process of adaptation to a new work role as an employee goes through the passages of coming from outside the organization to inside the organization.

Why is Onboarding Important?

Half of all hourly workers leave new jobs in the first 120 days.

Effective onboarding or socialization: • Reduces turnover.

• Helps new employees make connections with co-workers.

• Increases new employee productivity, engagement and success.

Example of Employee A and Employee B on page 171 illustrates the difference that onboarding can make to a new employee.

HRM's Role in the Onboarding Process Onboarding begins as soon as job offer is accepted.

Answer new employee questions and concerns.

Prepare package of important and useful information.

Communicate culture.

Slide 5

Onboarding and Socialization Slide 6 New employees evaluate whether recruiting, hiring and onboarding support the employment brand.

Assumptions of Employee Socialization • Socialization strongly influences employee performance and organizational stability, by providing information on how to do the job and ensuring organizational fit.

• New members suffer from anxiety, which motivates them to learn the values and norms of the organization. Special attention is needed to put them at ease.

• Organizational stability also increases through socialization. When jobs are filled or vacated with a minimum of disruption, the organization will be more stabilized.

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Chapter 8: Onboarding, Training, and Developing Employees • •

Socialization needs to be consistent with culture. It is influenced by subtle and less subtle statements and behaviors exhibited by colleagues, management, employees, clients and others.

Individuals adjust to new situations in remarkably similar ways. All new employees go through a settling-in period.

Learning Culture through Socialization

Slide 7 Learning Outcome 2: Identify the three stages of employees’ progress through as they learn organizational culture.

Organizational culture is the personality of the organization, the behaviors that make it unique.

• Culture includes long-standing, often unwritten rules about what is appropriate behavior.

• Socialized employees know how things are done, what matters, and which behaviors and perspectives are acceptable.

Many employers do this poorly, so students may not have personal experience that relates. The closest thing may have been freshman orientation and registration at your college.

Prearrival stage Slide 8 Individuals arrive with a set of values, attitudes and expectations which they have developed from previous experience and the selection process.

Encounter stage Individuals discover how well their expectations match realities within the organization. Where differences exist, socialization occurs to imbue the employee with the organization’s standards.

Metamorphosis stage Individuals have adapted to the organization, feel accepted and know what is expected of them.

New Employee Orientation

Slide 9 Learning Outcome 3: Identify the purpose and key personnel involved in new employee orientation.

Orientation New employee orientation covers the activities involved in introducing a new employee to the organization and to the individuals in his or her work unit.

Orientation may be done by the supervisor, the HRM staff or some combination.

It may be formal or informal, depending on the size of the organization.

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Chapter 8: Onboarding, Training, and Developing Employees Typically, it will cover such things as the organization’s objectives, history, philosophy, procedures, rules, HRM policies and benefits, and fellow employees.

HRM’s Role in Orientation Coordinating Role: HRM instructs new employees when and where to report; provides information about benefits choices.

Participant Role: HRM offers its assistance for future employee needs, such as career guidance, benefit administration, and training.

The CEO’s Role in Orientation It has become common for senior management to be visible during the new employee orientation process.

When a CEO is present, the company shows it truly cares for its employees.

CEOs can: • Welcome employees • Provide a vision for the company • Introduce company culture -- what matters, convey that the company cares about employees • Reduce new employee anxieties, and help them to feel good about their job choice.

Tips for Success - Orientation Checklist page 177 Orientation is often a hit and miss proposition in smaller organizations. This checklist provides a basic list of must-do activities.

Real HR Encounters - HR's Role in Creating and Sustaining Culture page 177 Regardless of how culture develops, maintenance largely falls to HR. This feature includes advice from a seasoned HR pro on how HR activities influence culture in important ways.

It's All in Here: The Employee Handbook

Slide 10 Learning Outcome 4: Explain the purpose and essential contents of an employee handbook..

Handbooks should be written clearly, updated regularly and made easily available.

Why Use an Employee Handbook?

Handbooks provide a reminder and reference for new employees.

Communicates policies and procedures to all employees.

Commonly contains: • Mission • History • Organizational culture • Employee benefits information

Slide 11

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Chapter 8: Onboarding, Training, and Developing Employees •

Policies o Work rules o Discipline procedures o Appeals process o EEO policies o Harassment o Drug abuse o Social media use o Electronic communications o Employee monitoring

Handbooks should NOT contain statements that: • Can be interpreted as providing permanent employment.

• Indicate an implied employment contract.

• Eliminate the employment-at-will relationship.

• Prevent employer from firing employees for good cause.

Slide 12

Exhibit 8-2 A Sample Employee-Handbook Disclaimer page 179 includes a common disclaimer that supports employment-at-will.

Designing Employee Training

Slide 13

Learning Outcome 5: Explain the ADDIE model of training design.

All organizations need well-adjusted, trained, and experienced people to perform its activities.

Slide 14 Employee training is a learning experience designed to achieve a relatively permanent change in an individual that will improve the ability to perform on the job.

The ADDIE model of instructional system design, recognized by ATD and other training and instructional design sources is addressed in this section. ADDIE is an acronym for Analyze, Design, Develop, Implement and Evaluate.

Analyze • • • • Design • • • •

Slide 15 Job requirements as determined by job analysis.

How effectively employees accomplish job requirements.

Employee characteristics Training methods

Learning objectives How to assess learning Content of training How to deliver training

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Chapter 8: Onboarding, Training, and Developing Employees Develop • •

Create instructional materials Select and coach trainers

Implement • Training takes place • Important concepts to consider • Know the audience • Apply adult learning principles • Use a variety of activities to increase retention • Practice presentations, have back up plan for technology.

• Use effective verbal and non-verbal communication.

• Use open-ended questions • Use visual aids effectively.

Evaluation • Demonstrate return on training investment (ROI) • Conduct evaluation activities.

Exhibit 8-4 What Adults Remember page 181 compares the effectiveness of different ways to present information.

Tips for Success: Becoming a Trainer page 182 Training is a function of HR that is a common entry to the profession.

Diversity Topics: Training, Development and EEO page 179 addresses how training can contribute to unequal opportunities for women and minorities.

Employee Training Methods

Slide 17

Learning Outcome 6: Outline a variety of employee training methods.

The Develop and Implement elements of the ADDIE model of instructional design require HR Training specialists to determine the best way to help employees learn a particular skill. E-learning is evolving quickly, but tried-and-true traditional methods are still effective.

On-the-Job Training (OJT) Working alongside of experienced workers.

Most commonly used. Often because employer isn't aware of other methods that may be more effective.

Often informal.

Trainers need training in order to be effective, understand culture and not pass on bad habits.

Job Rotation Page 8

Chapter 8: Onboarding, Training, and Developing Employees Involves lateral transfers to different jobs with a variety of tasks.

Increases understanding of interdependence of jobs and motivation.

Apprenticeships Working alongside an experienced employee in combination with classroom training or other formal instruction.

Frequently used in skilled trades.

Internships Students training in a chosen profession as part of their education.

Vary from highly structured to no structure at all.

May include college credit.

Classroom Lectures Good for providing a lot of information in a short timeframe.

Instructors need to understand characteristics of adult learners and adjust instruction methods.

E-Learning Evolving quickly through technology.

May be tailored to specific jobs or individual performance issues by HRIS. Includes: • Videos • Quizzes • Games • Animations • Virtual Reality • Cloud-Based Training • Employee Orientation May not be as effective as face-to-face experience for many concepts.

Simulations Artificial environment that simulates actual work tasks and conditions.

Useful when the job or training involves dangerous situations or expensive equipment such as firefighting and pilot training.

Vestibule Training uses actual tools or equipment.

Includes: • Cases • Experiential Exercises • Computer Simulations • Virtual Reality • Role-Playing

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Chapter 8: Onboarding, Training, and Developing Employees

Evaluating Training Effectiveness

Slide 18 Learning Outcome 7: Describe the methods and criteria involved in evaluating training programs.

Training results are easier to measure when some output can be analyzed, such as in increase or decrease in sales, costs, production, employee turnover, or revenue.

Kirkpatrick’s Model Slide 19 Is useful when training results are more difficult to measure in terms of Return on Investment (ROI) Level one measures the reaction of participants toward the training.

Level two measures how much the participants learned.

Level three measures whether or not the training actually changes the employee’s behavior when he or she returns to the job.

Level four measures whether the training benefited the employer or not.

Typically, employee and manager opinions are used, but these opinions or reactions are not necessarily valid measures, since things like difficulty, entertainment value or personality of the instructor influence them.

Performance-based measures (benefits gained) are better indicators of training’s cost-effectiveness. Did the training program achieve its desired results?

Performance-Based Evaluation Measures Slide 21 Post-training performance method Participants’ performance is measured after attending a training session to determine if behavioral changes have been made.

Pre-post-training performance method Employee’s job performance is assessed both before and after training, to determine whether a change has taken place.

Pre-post-training performance with control group method This sophisticated technique compares the pre-post-training results of the trained group with the concurrent job performance of a control group, which does not undergo instruction. The approach is used to control for factors other than training which may affect job performance.

Class Activity: Contemporary Connection - Training Expenditures page 185 If you have working students, consider asking them how their employer spent $1,195 on their training last year. That's the average spent by U.S. employers according to the Association for Talent Development. Questions in this feature explore student feelings about how they prefer to learn new skills.

Employee Development

Slide 22 Learning Outcome 8: Explain the purpose of employee development and methods used.

Employee Development differs from training in that the focus is on helping the employee grow personally in ways that help the organization.

Skills include: P a g e 10

Chapter 8: Onboarding, Training, and Developing Employees • • • •

Problem-solving and critical thinking.

Teamwork skills Leadership and supervisory skills Customer service orientation.

Employee Development Methods Slide 23 Assistant-to positions allow employees with potential to work under and be coached by successful managers.

Committee assignments provide opportunities for decision-making, learning by watching others, and becoming more familiar with organizational members and problems.

Classes, conferences and seminars are often sponsored by professional organizations and provide access to experts in a variety of areas.

Online seminars (webinars) and streaming are popular.

SHRM offers many real-time and on-demand online seminars.

Cases studies, decision games and role plays allow trainees to study actual or simulated cases. This is very popular in business and HRM classes.

Adventure training typically involves challenges which teach trainees the importance of teamwork.

Organizational Development

Slide 24 Learning Outcome 9: Discuss the term organizational development and the role of the change agent.

Organizational development (OD) is the process that an organization moves through when it changes with respect to continuous improvements, diversity, and work process engineering.

Change agent Regardless of the role of OD in an organization, a change agent is needed to foster the environment in which change can occur, and to help employees to adapt to the change.

Change is a Popular Topic Slide 25 OD efforts support changes that are usually made in four areas: • Systems • Technology • Processes • People.

These changes are designed to foster the strategic direction of the business.

Two metaphors clarify the change process.

Slide 26 The calm waters metaphor describes unfreezing the status quo, changing to a new state, and refreezing to ensure that the change is permanent.

The white-water rapids metaphor recognizes today’s business environment which is less stable and not as predictable requiring employees to face rapid and P a g e 11

Chapter 8: Onboarding, Training, and Developing Employees uncertain change where they must adjust quickly and react properly to unexpected events Exhibit 8-5 Lewin's Change Process page 188 illustrates the calm waters metaphor in the context of an office move with new equipment.

Class Activity: Students can share their personal work change experiences in small groups and with the class.

OD Methods Slide 27 Organizational development facilitates long-term organization-wide changes.

OD techniques include survey feedback, process consultation, team building, and intergroup development.

• Survey feedback assesses organizational members’ perceptions and attitudes. The summarized data are used to identify problems and clarify issues so that commitments to action can be made.

• Process consultation uses outside consultants to help organizational members perceive, understand, and act upon process events.

• Team building may include goal setting, development of interpersonal relationships, clarification of roles and team process analysis. Team building attempts to increase trust, openness, and team functioning.

• Intergroup development helps promote cooperation and cohesion between different work groups.

The Learning Organization

Slide 28

Learning Outcome 10: Explain the term learning organization.

Learning organizations value continued learning and believes a competitive advantage can be gained from it.

Learning organizations characteristics: Capacity to continuously adapt Employees continually acquire and share new knowledge Collaboration across functional specialties Teams are an important feature

International Training and Development Issues

Slide 29 Learning Outcome 11: Explain issues critical to international training and development.

Cross-Cultural Training It is necessary for expatriate managers and their families before assignments (to learn language and culture); during, and after foreign assignments (to adjust to changes back home).

Cross-cultural training is more than language training; it includes learning about the culture’s history, politics, economy, religion, social climate and business P a g e 12

Chapter 8: Onboarding, Training, and Developing Employees practices and may involve role playing, simulations and immersion in the culture.

After overseas assignments end, the employee and the family members must reacclimatize to life in the United States.

Development Overseas assignments are vital in developing top-level executives and should be part of a career development program.

Often, organizations do not do a good job of planning for the return of overseas managers. This leads to the managers’ being frustrated with lack of recognition and opportunity back home and to others’ reluctance to take overseas assignments.

Returning expatriates can be assigned a domestic position, can prepare for a new overseas assignment, can retire, or can be terminated.

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Chapter 8: Onboarding, Training, and Developing Employees

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

Explain the purpose and benefits of an effective onboarding process for new employees. (LO 1, 2) Onboarding helps new employees go through the passages of coming from outside the organization to inside the organization. It reduces anxiety, increases organizational stability, teaches culture and helps new employees adapt to the new job.

Effective onboarding reduces turnover, helps new employees make connections with coworkers and increases productivity, engagement and success.

2.

What are the similarities and differences between training and development? (LO 5, 6, 7, 8, 9) Training is more present-day oriented; it focuses on individuals’ current jobs, enhancing those specific skills and abilities needed to immediately perform their jobs. Development generally focuses on developing an employee's skills for future jobs in the organization and employee development efforts prepare you for those jobs. Both focus on having you learn more about the organization and how to perform jobs within the organization.

3.

4.

Explain the purposes of the employee handbook and what it should include. (LO 4) How does the ADDIE model of training design connect training with strategy? (LO 5) Jobs are designed to fulfill organizational goals and strategy. Training is designed to provide employees with skills and attitudes necessary to be successful in those jobs.

5.

Why is evaluation of training effectiveness necessary? (LO 7) Training effectiveness should be evaluated for several reasons. First, the benefits gained by training programs must outweigh the costs. Second, training cannot be improved unless its effectiveness is evaluated. Evaluation is a fact of life for operational divisions of a firm and it helps give credibility to trainers and the training function. Fourth, tracking training effectiveness is useful to use for long-term planning and strategic organizational development interventions in the firm.

6.

Explain the differences in philosophy of the Calm Waters and White-Water Rapids views of change. (LO 9) The Calm Waters metaphor says that successful change requires unfreezing the status quo, changing to a new state and refreezing the new change to make it permanent. The P a g e 14

Chapter 8: Onboarding, Training, and Developing Employees status quo can be considered an equilibrium state. In contrast, the White Water Rapids metaphor takes into consideration the fact that environments are both uncertain and dynamic, they face constant change, bordering on chaos.

Evaluating Alternatives 7.

Describe what a socialization program might look like if management desired employees who were innovative and individualistic. (LO 1, 2) Let the class play with this. Notions of individuality and creativity are important. The idea that the socialization should be consistent with the desired outcomes is important.

The program would not be a formal, cookie cutter, HRM–prepared two–day session.

Possibilities include: ▪ Show the new employee the desk, give them a computer and a number to call for questions.

▪ Schedule an informal discussion session with coworkers to talk about current projects, current problems, or future plans, etc.

▪ Schedule meetings with clients or users that focus on problems, solutions or opportunities.

▪ Provide videos of other employees’ accomplishments – patents, new ideas, new processes, etc.

▪ Let the new employee spend the day with an innovative employee with similar interests.

▪ If schedules or checkpoints are discussed, leave goals open-ended and flexible.

8.

Anne and Ed are disagreeing over the content of the employee manual of their new start-up. Anne wants to keep the content to a bare minimum or have no handbook at all because a lawyer friend of hers warned her that handbook are often misinterpreted and can create legal problems. Ed wants a comprehensive handbook with standardized rules and policies to prevent misunderstandings. Explain if you would side with Anne or Ed and why. (LO 4) Anne actually has a few allies. She will find that if no handbook is provided, managers will need to coordinate policies and procedures with each other and provide communication with employees. They will also need to provide training in what not to say so as not to accidentally reduce the employee-at-will status.

Ed has a stronger case. When managers and employees have a thorough understanding of policies and procedures, misunderstandings and misconceptions are less likely to occur.

The handbook also defines mission and culture, benefits and many policies including discipline, harassment, EEO, social media and employee monitoring.

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical P a g e 15

Chapter 8: Onboarding, Training, and Developing Employees thinking, research and presentation skills necessary for HR. Grading can be simplified by using the grading rubric above.

Activity Summaries 9.

Students ask to observe an orientation or training session at your institution or another local employer. The approach used is summarized and presented.

10.

Students search YouTube for short videos that have different cultures. Their thoughts are summarized and presented along with all or part of the videos.

11.

Students research learning organizations. Research is presented in a written article.

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on training and development explore the orientation process for volunteers or new college students. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 8-A:Training for Kindness When confronted with complaints about the quality of care, The Director of Nursing and HR Director at Kindness House Hospice look for ways to reduce their excessively high employee turnover as a way to reduce the staffing shortage they blame for the problem.

When questioned about their orientation and training problems as a source, the CEO suggests using the successful onboarding program developed for the medical staff at a pediatrics clinic.

Student questions examine the turnover problem and appropriateness of using the borrowed onboarding program.

Questions: 1. How should Kim Larson handle the suggestion to use the onboarding program from Central Pediatrics? What onboarding, socialization, and orientation practices would be appropriate for new medical staff at Kindness House? (LO 1, 2, 3,4) The mission and strategy of the organization should be considered when developing an effective onboarding program. The onboarding program at Central Pediatrics may be structured well, but the organizations are so different in their mission strategy that the activities should be tailored specifically to the hospice environment.

Elements to consider when creating practices and activities for Kindness House onboarding should include: ▪ A written onboarding plan should be developed. All stakeholders should be involved.

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Chapter 8: Onboarding, Training, and Developing Employees ▪ ▪ ▪ ▪ ▪ ▪ ▪

Onboarding should start before the interview process. Realistic Job Previews should be shared.

Kindness House should establish an employment brand and communicate it.

New hires should make connections with other employees. Mentors should be established.

Packets of information including mission, values and culture should be distributed.

Patients and families could be videoed and their stories shared with applicants and new hires.

HR should check with new hires at regular intervals.

Results should be evaluated.

2. Using the ADDIE model of training design, design an employee development program for the supervisors. (LO 5, 6, 7) Analyze: Jobs should be designed to align with strategy. HRM should determine how effectively the jobs are being accomplished. Quality of care and mistakes should be considered along with the stress levels of employees.

Design: It appears that although the job is stressful by nature, the staffing problems make it worse. Training should include ways to be effective as well as how to handle the stress.

Goals for reducing turnover should be set.

Develop: Training methods should be selected that are appropriate for the staff. What works for the RNs may not be appropriate for support staff.

Implement: Training should include a variety of activities.

Evaluate: Reduction of turnover and the resulting cost savings can be measured as ROI. Reduction of stress should probably be evaluated with Kirkpatrick's Model.

3. Identify the best training methods for teaching the medical staff at Kindness House how to relate to patients, how to handle stress, correct completion of paperwork, and proper safety procedures. Explain why you selected each training method. (LO 5, 6, 7) Methods may include: ▪ On-the-job training ▪ Job rotation ▪ Internships ▪ Classroom lectures ▪ E-learning ▪ Simulations 4. Research: Find examples of how improved onboarding and training been used to improve culture, reduce turnover, and increase efficiency in healthcare or other industries. Summarize your results and include your sources. (LO 1, 2, 7)

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Chapter 8: Onboarding, Training, and Developing Employees Answers will vary.

Case Application 8-B: Leading People at Whirlpool Supervisors identified as having potential at Whirlpool are invited to participate in a unique employee development program that involves their managers too.

Questions: 1.

Discuss how each of the levels in Kirkpatrick's model could be applied to the Leading People supervisor training. Explain which would be the best indicator of the effectiveness of the program. (LO 7) Level one measures whether participants liked the training; felt they achieved their learning goals; how much they liked the trainers; and any suggestions they have for improving the training.

Level two involves measuring how much participants learned. They could be pre and post-tested.

Level three involves observing participant behavior. This would be appropriate since the managers could be trained in how to evaluate the changes in supervisor behavior. Who would then evaluate the managers?

Level four measures the return Whirlpool realizes on the training expense.

2.

Evaluate the “Closed Loop Learning Method.” Which of the training methods in the chapter does it seem to incorporate? What training method would you add to the “Closed Loop Learning Method” and why? (LO 5, 6,7) It seems really similar to an elaborate apprenticeship.

3.

How do you feel the involvement of the managers influences the success of the Leading People program? (LO 8, 9) Including managers helps to keep the supervisors accountable for demonstrating the concepts they are learning. It also keeps the managers accountable as mentors and change agents.

4.

Apply the concept of the “Learning Organization” to supervisor training at Whirlpool. How well does the concept describe Whirlpool? (LO 10) In a learning organization, employees practice knowledge management by continually acquiring and sharing new knowledge and willingly applying that knowledge to making decisions or performing their work. This seems to be exactly what Whirlpool is doing.

5.

Research: Find other organizations that have their own “University” to administer employee training and development. What types of programs do they offer? Who is invited to attend? (LO 6, 8) P a g e 18

Chapter 8: Onboarding, Training, and Developing Employees

Many organizations have supervisor, manager or executive training and development programs, whether they are referred to as a "University" or not. Encourage students to not get too hung up on that term when researching programs similar to Whirlpool's.

Online Case Application 8 - C: TEAM FUN Questions: 1.

Explain to Kenny and Norton why employee onboarding and socialization is necessary (or not necessary) for the new TEAM FUN! store. (LO 1, 2, 3) 2.

What orientation activities do you recommend? Who should be involved? (LO 3) 3.

What should be considered as Tony and Bobby design training for the new employees.

(LO 5, 6, 7)

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Chapter 9: Managing Careers

Chapter 9: Managing Careers Learning Outcomes After reading this chapter, students should be able to: 1.

2.

3.

4.

5.

6.

7.

Differentiate between career development and employee development.

Explain role of the organization in employee career development Identify the role of managers in employee career development Outline employee responsibilities for career development.

Explain the four typical career stages.

Describe the relationship between personality, career choice and fit.

Identify several suggestions for effective personal career management.

Chapter Overview The Principal Financial Group helps employees manage their careers resulting in a loyal and devoted employee base. The first part of the chapter presents basic career development concepts, including the rationale for career development, traditional career stages, and tools for assessing career preferences and styles. The latter part of the chapter presents extensive suggestions to students on how to manage their own careers in today’s economic environment, which requires individuals to take responsibility for their own success.

Additional features of this chapter: Exhibits 9 – 1: Overlapping Goals and Activities 9 – 2: Career Development 9 – 3: Career Stages 9 – 4: Holland's General Occupation Themes 9 – 5: Structure of Holland’s Themes 9 – 6: Characteristics Frequently Associated with Myers-Briggs Types Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

• Contemporary Connection - Career Development at Baxter page 198 Baxter is possibly the biggest company your students have never heard about. Their exemplary commitment to employee career development is profiled.

• Did You Know – Where Are the Jobs? on page 202 highlights the fastest growing and the biggest declining jobs in the United States through to 2022.

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Chapter 9: Managing Careers •

•

Tips for Success – Entrepreneurship: Building Your Own Career on page 204 discusses what, if any, psychological characteristics entrepreneurs have in common, what types of personality traits might distinguish them from non-entrepreneurs and what traits might predict who will be successful.

Tips for Success – Internships: Experience At Work on page 206 discusses the benefits of obtaining an internship, including the fact that it could lead to a permanent position within an organization.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 9 concepts: •

Discuss the relevance in today’s work place of concepts such as career stages and career planning. Many students today, especially those in the “baby buster” or “Generation X” age groups see many more options, yet fewer opportunities, than their parents had. Ask students to share their current career plans, uncertainties, and assumptions. This should be a lively discussion, and expect students to bring up issues such as “it’s not what you know, but only who you know,” and “lifestyle and friends are more important than loyalty to a company”. Another good topic for discussion is what do you do when a couple’s careers conflict?

•

If you are not trained in any of the current popular preference inventories, such as the Myers-Briggs Type Indicator, see if someone from your university testing or counseling center would be willing to administer one, on a voluntary basis, to your students. This will not be feasible in a large class, but you can have someone from the testing center give a guest lecture where they explain the various diagnostic tools they use to students who make use of their services. Many students are not even aware of what career-related services are available to them at the university.

•

Ask students to interview a professional they admire. Focus questions on the person’s career path. Students can report out in class and share highlights. The discussion should give students realistic ideas about how to achieve their goals.

•

Invite a representative from your career placement department to give an overview of the services available on campus. Stimulate Q&A.

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Chapter 9: Managing Careers

Chapter Outline And Lecture Suggestions Introduction

Slide 3

Traditionally, career development referred to programs offered by organizations to help employees advance within the organization. Today, each individual must take responsibility for his or her career. While many organizations still invest in their employees, they do not offer career security and they cannot meet the needs of everyone in a diverse workforce.

Organizations now focus on matching the career needs of employees with the requirements of the organization.

The chapter opener on Principal Financial Group includes questions designed to facilitate class discussion of what the organization gets out of Career Development.

Career Development

Slide 4 Learning Outcome 1: Differentiate between career development and employee development Career Pattern of work-related experiences that span the course of a person’s life, reflecting any work, paid or unpaid.

It can also include schoolwork, homemaking, and volunteer work.

Career Development Slide 5 Long-term career effectiveness and success of organizational personnel.

Employee training and development, discussed in Chapter 8, focuses on performance in the immediate or intermediate time frames.

Exhibit 9 - 1 Overlapping Goals and Activities page 196 illustrates the fact that both activities have some similarities.

The Organization's Role in Career Development

Slide 8

Learning Outcome 2: Explain role of the organization in employee career development.

When job candidates feel the organization offers career advancement potential, they are more likely to accept a job offer.

Talent Will be Available When and Where It Is Needed Strategic employment planning helps HR make smart hiring and training decisions.

Improved Ability to Attract and Retain Talented Employees Employees are more likely to stay with an organization if they feel it provides: • Opportunity to grow within the organization • Flexibility Page 3

Chapter 9: Managing Careers • Camaraderie • Good work life balance Enhanced Diversity Clearly defined career paths reduce discrimination.

Strong Cultures Career development activities are used to support organizational values and culture.

May support intrinsic motivation.

Managers and Career Development

Slide 9 Learning Outcome 3: Identify the role of managers in employee career development Managers play an important role in employee career development.

Reasons Managers May Not Be Good at Employee Career Development Poor understanding of career development.

• Managers may not understand the available resources for themselves and their employees.

Time constraints Lack of training Fear of losing good employees HRM support and training is important Mentoring and Coaching Slides 10 - 12 Effective coaches give guidance through direction, advice, criticism, and suggestion in an attempt to aid the employee’s growth.

Mentors are typically senior-level employees who support younger employees by vouching for them, answering for them in the “highest circles,” introducing them to others, and advising and guiding them through the corporate system.

The disadvantages of having senior employees coaching younger employees include • tendencies to perpetuate current styles and practices • reliance on the coach’s ability to be a good teacher.

Coaching is most effective between employees who do not have a reporting relationship but share other similarities in their perspectives.

Exhibit 9 - 2 Career Development page 199 illustrates the overlapping responsibilities of employees, organizations and managers for employee career development.

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Chapter 9: Managing Careers

The Employee Role in Career Development

Slide 13

Learning Outcome 4: Outline employee responsibilities for career development.

Employees Need To Take Responsibility For Their Own Career Development.

Personal success definition may be different from organization.

Intrinsic rewards are unique to individuals.

Ways for employee to take responsibility: • Get involved in career development opportunities.

• Be visible. Seek important assignments and work with people who share credit.

• Explore career planning resources within the company.

• Develop a network of professional contacts: o Managers, past and present o Professors and teachers o Professional organizations.

Traditional Career Stages

Slide 14

Learning Outcome 5: Explain the four typical career stages.

Four stages describe the career paths of most people.

Exploration Includes school and early work experiences, such as internships.

Involves trying out different fields, discovering likes and dislikes, and forming attitudes toward work and social relationship patterns.

Establishment Includes search for work, getting first job, and getting evidence of “success” or “failure.”

Takes time and energy to find a “niche” and to “make your mark”.

Mid-Career Individuals either continue to grow, level off or deteriorate.

Remaining productive may be a challenge.

Plateaued mid-career stage involves remaining productive but not gaining new responsibilities or advancing in the organization.

Late Career Successful “elder states persons” can enjoy being respected for their judgment.

Good resource for teaching others.

Those who have declined may experience job insecurity.

Life off the job increases in importance.

Exhibit 9 - 3 Career Stages page 201 outlines the four stages and common activities within the stages.

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Chapter 9: Managing Careers

Personality Style and Career Fit

Slide 15 Learning Outcome 6: Describe the relationship between personality, career choice and fit.

Good career choice outcomes provide positive self-concept and opportunity to do work we think is important.

Holland Vocational Preferences Slide 16 - 17 There are three major components: • People have varying occupational preferences.

• If you think your work is important, you will be a more productive employee.

• You will have more in common with people who have similar interest patterns.

The model identifies six vocational themes (realistic, investigative, artistic, social, enterprising, and conventional). (See exhibit 9 – 4). These are used to identify an individual’s occupational preferences.

Preferences can be matched to work environments. For example, socialenterprising-conventional preference structure matches career ladder in large bureaucracy.

Exhibit 9 - 4 Holland's General Occupational Themes page 203 explains each of the six types.

Exhibit 9 - 5 Structure of Holland's Themes page 203 demonstrates how the compatible themes are arranges.

The Schein Anchors Slide 18 Identifies personal value clusters (technical-functional competence, managerial competence, security-stability, creativity, autonomy-independence) that may be satisfied or frustrated by work.

When an organization offers a particular combination of value clusters important to a person, that individual is then “anchored” to the job, organization, or industry.

Success of person-job match determines individual’s fit with the job.

The Myers-Briggs Typologies Slide 19 - 21 The four personality dimensions of Extraversion-Introversion, Sensing-Intuitive, Thinking-Feeling, and Judging-Perceiving (Exhibit 9 – 5) are assessed by the Myers-Briggs Type Indicator (MBTI) and identify 16 different personality types.

It is important to know these personality types because they influence the way people act and solve problems.

The MBTI is useful in helping managers match employees with jobs.

Class Activity: Tips for Success - Building Your Own Career page 204 Students often consider being their own boss. This short feature explores the personality characteristics of successful entrepreneurs.

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Chapter 9: Managing Careers

Class Activity: Characteristics Frequently Associated With Myers-Briggs Types page 205. Many online sources provide tests that produce personality types that align with Myers -Briggs. These results make interesting class discussion.

Taking Responsibility for Building Your Career

Slide 22 Learning Outcome 7: Identify several suggestions for effective personal career management Successful careers require a plan and personal management.

Be flexible. Keep skills up to date.

Suggestions For Taking Responsibility For Your Career: • Know yourself – know your strengths and weaknesses.

• Manage your reputation – make yourself and your accomplishments visible.

• Build and maintain network contacts – join national and local professional organizations, attend conferences, and network as social gatherings.

• Keep current – develop specific skills that are in high demand.

• Balance your specialist and generalist competencies – stay current within your technical specialty, but develop general competencies that give you the versatility to react to an ever-changing work environment.

• Document your achievements – seek assignments that provide challenges and offer objective evidence of your competencies.

• Keep your options open – always have a contingency plans prepared that you can call on when needed.

Class Activity: Tips for Success - Internships: Experience at Work page 206 discusses competition for internship and a unique application process at an advertising agency looking for creative talent. The creative applications submitted are online on Mithun's YouTube page. Show a few and discuss the competition for good internships.

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Chapter 9: Managing Careers

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are included.

Reviewing Important Concepts 1.

Explain how and why employee development and career development activities overlap. (LO 1) The main distinction between employee development and career development lies in their time frames. Employee development focuses on more of the immediate and intermediate time frames. Career development focuses on the long-range career effectiveness and success of organizational personnel. Both focus on the employee’s career and how to develop it over time.

2.

Rank the four career development stages in order of increasing employer responsibility and involvement. Explain your choices. (LO 5) The four career stages are exploration, establishment, mid-career, and late career.

The exploration stage occurs prior to employment, so that foundation may put it at the top of student lists. Establishment and mid-career probably tie for second.

3.

Identify the Holland vocational preferences and explain the importance of this model in determining the best job fit. (LO 6) The Holland vocational preferences are realistic, investigative, artistic, social, enterprising, and conventional. The model helps identify people’s occupational preferences. Research has shown that if you do a job you think is important, you will be a more productive employee. Additionally, we prefer to work with people with whom we are compatible. Knowing what you prefer helps identify jobs that you will find satisfying.

4.

What is a mentor and how do you go about finding one? (LO 3, 4, 5) A mentor is usually a senior employee who takes an active role in guiding another individual. This guidance involves direction, advice, criticism and suggestions. You should find out if your organization has a formal mentoring program. Additionally, observe senior level managers. Who has power and access? Who would be a good teacher? Try to position yourself to come in contact with that person. Above all, don’t be afraid to ask for their advice.

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Chapter 9: Managing Careers

Evaluating Alternatives 5.

Review the elements of Samsung's Global Services Group and Regional Specialists program in chapter in chapter five and on the Samsung website. Explain the benefits to Samsung and to the participants. Which program do you feel would offer the greatest advantages for participants? Why? (LO 2, 4, 7) Benefits to Samsung include several from this chapter including: talent will be available when and where it is needed, improved ability to attract and retain talented employees, enhanced diversity and strong culture.

Employee benefits also include several from this chapter including being involved in career development activities, being visible, seeking important assignments, utilizing company career planning resources and developing an extensive network of professional contacts.

6.

After reviewing the chapter opener describing the efforts of Principal Financial Group to help employees manage their careers, explain which of the company’s initiatives you feel is the most valuable and why. Suggest additional career development activities aimed at encouraging mid-career stage workers to continue to grow rather than plateau or decline. (LO 2, 3, 4, 5, 7) Allowing employees paid time off from work for volunteering allows employees to give back to their communities and allows the organizations they volunteer with, to obtain free assistance. It also allows Principal Financial to improve their public image.

Allowing a “no meetings Friday” option is great for employees and will allow them to de-stress, especially before the weekend and be rejuvenated for regular work activities on the next working day.

The Working Caregiver Leave will allow employees to still contribute to the organization, while also caring for themselves or a love one without the added stress of financial worries or time constraints. A program such as this is sure to build loyalty among employees, even those who do not utilize the program, since it presents a picture of how the organization treats employees.

The “Happy Returns” program which allows retires to still work would allow the organization to still capitalize on retirees expertise, including having them act as mentors to younger employees. Having older workers work in nonprofits or overseas assignments reinforces some of what has been said before – a great image for the organization, allowing older workers to act as mentors (in this case with workers on global assignments) and allow employees to contribute to their communities.

In terms of the sixth initiative, I think it would be counterproductive to limit it to only workers over fifty since that might be demoralizing to employees who are younger than 50. Other criteria such as length of service or number of promotions could also be Page 9

Chapter 9: Managing Careers included as criteria to recruit appropriate candidates into the Leadership Development Program.

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Grading can be simplified by using the grading rubric above.

Activity Summaries 7.

Four interviews of individuals in different career stages are summarized and presented to class with presentation slides or videos. (LO 2, 3, 4, 5, 6, 7)

8.

Comparing the results of several career surveys and personality assessments in a paper.

(LO 6)

9.

Develop an elevator pitch and practice it in groups. (LO 4, 7)

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on career development involve working with people in different stages of careers. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 9 A- Preparing for the Future at Western States An HR director is confused when Western States, the mortgage company she works for fails to gain a place on the local "Best Employers" list. Students are asked to help her utilize career development concepts to improve employee opinions about the opportunities at Western States.

Questions: 1.

In what ways can mentoring and coaching help accomplish Western State's Career Development goals? (LO 3, 5) Effective coaches give guidance through direction, advice, criticism, and suggestion in an attempt to aid the employee’s growth. They can encourage employees to take advantage of career development activities. The mentors may also gain by finding new motivation during their mid-career or late-career stages.

2.

How will Western States benefit from a successful career development program in addition to getting on the "Best Employers" list? (LO 1, 2) P a g e 10

Chapter 9: Managing Careers

Creating a more effective career development will help make sure talent will be available when and where it is needed, improve Western States' ability to attract and retain talented employees, enhance workforce diversity and strengthen the culture.

3.

How can Western States improve communication about careers and career development opportunities? (LO 2) HRM should not only inform employees, but managers should be trained in way to provide career development and encouraged to support employees who participate in career development activities. Managers should be recognized whenever their direct reports are promoted or gain new responsibilities.

4.

Create a fourth goal for the career development plan and explain why it's important. (LO 1, 2, 3) Suggestions may include: • Providing volunteer opportunities and supporting employees who volunteer with time off.

• Flexible working schedules for new parents and other employees with family responsibilities.

• Sabbaticals for employees to work at a non-profit or in another part of the country or world.

• Rewarding employees for taking challenging assignments.

• Include career development discussions with performance appraisals.

• Formal networking programs.

• Providing internships.

• Encourage employees to participate in professional organizations, classes, conferences.

5.

Research: If finances at Western states don't allow tuition reimbursement or paying for outside training programs, what career development activities in addition to mentoring might be appropriate for employees interested in mid and senior level management positions? Start with examples from this chapter, then search online for examples from organizations you admire or would like to work for. Summarize your results and include your sources. (LO 1, 2, 3, 4, 5) Encourage students to look for example of career development activities for organizations in your community or organizations they may be familiar with. Suggestions may be similar to those in the suggested answer to question 4.

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Chapter 9: Managing Careers

Case Application 9 - B: Walmart Boot Camp Nearly 40 percent of first-time leaders fail in their position. When you look at the number of leaders Walmart needs to sustain their global growth, it's important to reduce that number and increase the odds of employees succeeding in their new positions. Their answer was to establish a leadership academy full of career development activities designed to prepare high potential employees for promotion.

Questions: 1.

What value does the leadership academy offer to the individual in terms of career development? (LO 2, 4, 5) In addition to the benefits of gaining skills that allow them to relate to employees, learning problem solving skills and work under pressure, they gain intrinsic rewards from community service activities. The boot camp also enhances their career opportunities at Walmart and helps them build a network of valuable contacts.

2.

In what ways does the leadership academy benefit Walmart besides increasing the number of managers capable of running a supercenter? (LO 2, 5) It will increase the chances that newly promoted managers will find success and stay with Walmart. With a greater understanding of career development opportunities, they may create stronger cultures in the stores they run. They may also avoid some of the reasons that managers are not effective at career development including not understanding the concept of career development or value of career development activities. They may utilize the performance appraisal process and be good mentors.

3.

What characteristics would you look for to identify "high potential" employees to participate in the leadership academy? (LO 6) Employees in the establishment and mid-career stages would be good targets for the academy. Personality styles would also be a determining factor. The Myers-Briggs typologies, Holland Preferences and Schein Anchors could be useful. The feature on "Proactive" Entrepreneurial personalities might be relevant too.

4.

Research: Look for examples of other companies that have established leadership academies. In what ways are they similar or different from Walmart? What are their objectives? How successful are they? Would you consider participating in a leadership academy? (LO 1, 2, 3, 5) Answers will vary.

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Chapter 9: Managing Careers

Online Case Application 9 - C: TEAM FUN Questions: 1. Define career and success for Bobby, Tony, Kenny, and Norton.(LO 1, 2, 4, 5, 6) 2. Trace career stages for each of them. (LO 5) 3. What career and employee development activities should Kenny and Norton provide for Bobby and Tony? (LO 1, 2, 3) 4. Identify Holland vocational preferences for Bobby, Tony, Kenny, and Norton. (LO 6) 5. Suggest several career management strategies that Bobby and Tony could utilize. (LO 4, 5, 6, 7)

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Chapter 10: Establishing the Performance Management System

Chapter 10: Establishing the Performance Management System Learning Outcomes After reading this chapter, students should be able to: 1.

2.

3.

4.

5.

6.

7.

8.

9.

Identify the four purposes of performance management systems and whom they serve.

Explain the six steps in the appraisal process.

Discuss absolute standards in performance management systems.

Describe relative standards in performance management systems.

Discuss how management by objective (MBO) can be used as an appraisal method.

Explain why performance appraisals might be distorted.

Identify ways to make performance management systems more effective.

Explain the criteria for a successful performance appraisal meeting.

Discuss how performance appraisals may differ in a global environment.

Chapter Overview No more performance appraisals? Sounds radical, but Apple, Zappos and SAS have chosen a different approach that increases the feedback and coaching responsibilities of managers. Would this work in any organization? What would it take to make this type of system effective? These and the questions at the end of the opener make for a great into to the world of performance management.

The chapter discusses EEO considerations, and lists steps for maximizing performance appraisal effectiveness. Methods using absolute standards, relative standards, and objectives are described. Sources of error in appraisals are discussed, and suggestions to improve the reliability, validity, and therefore, the legality and usefulness of appraisal ratings are given.

Some issues related to appraisal of employees working abroad are discussed.

Additional features of this chapter: Exhibits 10 – 1: The Appraisal Process 10 – 2: Sample Checklist Items for Appraising Customer Service Representative 10 – 3: Sample of Graphic Rating Scale Items and Format 10 – 4: Sample BARS for an Employee Relations Specialist 10 – 5: Ranking Employees by Paired Comparison 10 – 6: Factors That Distort Appraisals 10 – 7: Toward a More Effective Performance Management System 10 – 8: Ineffective Appraisals Boxed Features

Page 1

Chapter 10: Establishing the Performance Management System These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

•

Contemporary Connection - The Feedback Fix on page 215 looks at how social media can be used to improve the evaluation process for employees.

•

Contemporary Connection - Forced Rankings on page 220 discusses the impact forced rankings on employees and explains the latest research.

•

Contemporary Connection: Facts on Performance Evaluations on page 223 presents interesting facts that put performance appraisals in perspective.

•

Contemporary Connection: The “Anywhere” Performance Appraisal on page 227 describes how future performance appraisals can be given anywhere through the use of modern technology.

•

Tips for Success: Team Performance Appraisals on page 229 notes that with organizations restructuring themselves around teams, there needs to be a way to appraise performance. Four suggestions are presented for designing a system for team appraisal.

•

Tips for Success: Performance Metrics in China on page 233 compares a performance appraisal in the United States with one in China, noting that culture plays a part in what is measured.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 10 concepts: •

Many students will have been evaluated on their part-time, full-time or summer jobs.

Ask them what they have found to be effective and ineffective about the evaluation process.

•

Recently, some experts (e.g., Deming) have recommended against individual performance appraisals, indicating that the damage that they do to morale is not worth their possible benefit. Yet, at the same time, organizations need more than ever to keep track of employee performance. How can managers respond to this paradox?

•

Ask local employers if they will share copies of their performance appraisal forms with you. Share them with the class, discussing their strengths and limitations. An alternative to this is to ask students to bring in forms from their current employer. If unemployed, encourage them to use other resources, such as friends, family members, ore the

•

Ask students how they would develop a performance instrument to evaluate faculty.

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Chapter 10: Establishing the Performance Management System

Chapter Outline And Lecture Suggestions Introduction

Slide 3

Performance appraisals are a powerful tool for employee engagement and development, but frequently the process is administered so poorly that it does more harm than good.

This chapter will explain the purpose and strategic nature of performance management systems, steps leading to an effective appraisal process, as well as the potential problems that may occur.

Purposes of Performance Management Systems

Slide 4 - 5 Learning Objective 1: Identify the four purposes of performance management systems and whom they serve.

Performance appraisals are just one part of a system designed to motivate employees by evaluating the employee’s effort on the job, comparing it to standards, and using those results to help employees improve Feedback Let employees know how well they have done and allow for employee input.

Motivation Increases when goal are clear and progress is communicated.

Employee Development Identify areas in which employees have deficiencies or weaknesses.

Documentation Slide 6 In case of discipline, dismissal or claims of discrimination and retaliation.

The Appraisal Process

Slide 7

Learning Outcome 2: Explain the six steps in the appraisal process.

Establishing Performance Standards (step 1) Slide 8 The appraisal process begins with establishment of performance standards in accordance with the organization’s strategic goals.

The performance standards should be clear and objective enough to be understood and measured.

Communicate Expectations (step 2) Managers should clearly communicate the expectations; employees should not have to guess what is expected of them.

Measure Actual Performance (step 3)

Slide 9 Page 3

Chapter 10: Establishing the Performance Management System Measure performance using information from: ▪ Personal observation ▪ Statistical reports ▪ Oral reports ▪ Written reports Compare Actual Performance with Standards (step 4) Slide 10 Note deviations between standard performance and actual performance.

Discuss the Appraisal with the Employee (step 5) Slide 11 The appraisal discussion, an evaluation of one’s contribution and ability, has a strong impact on the self-esteem and subsequent performance of the employee.

Initiate Corrective Action If Necessary (step 6) Immediate corrective action deals predominantly with symptoms.

• Described as “putting out fires.”

Basic corrective action deals with causes.

• Looks for source of deviation and seeks to adjust the difference permanently.

Exhibit 10 - 1 The Appraisal Process page 214 illustrates the six steps in the process.

Evaluating Performance with Absolute Standards

Slide 12 Learning Outcome 3: Discuss absolute standards in performance management systems An employee’s performance is measured against established standards. Evaluation is independent of any other employee.

Critical Incident Appraisal Slide 13 Focuses the rater’s attention on critical or key behaviors that make the difference between doing a job effectively and doing it ineffectively.

Checklist Appraisal Appraiser uses a list of behavioral descriptions and checks off behaviors that apply to the employee.

Exhibit 10 - 2 Sample Checklist Items for Appraising a Customer Service Representative page 217 shows how checklists are structured.

Graphic Rating Scale Appraisal Appraiser rates employee on a number of job-related factors, such as, quantity and quality of work, job knowledge, cooperation, loyalty, dependability, attendance, honesty, and so forth.

Exhibit 10 - 3 Sample of a Graphic Rating Scale Items and Format page 218 is an example of this common type of evaluation tool.

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Chapter 10: Establishing the Performance Management System

Forced-Choice Appraisal Slide 14 Appraisers choose between two or more specific statements about an employee’s work behavior.

The statement chosen is that which the rater believes is most descriptive of the individual being evaluated.

Behaviorally Anchored Rating Scales (BARS) These scales combine major elements from the critical incident and graphic rating scale approaches.

Appraiser rates employee on factors which are defined by behavioral descriptions illustrating various dimensions along each rating scale.

Examples of Absolute Standards Appraisals

Slides 15 - 17

Exhibit 10 - 4 Sample BARS For an Employee Relations Specialist page 219 illustrates a Behaviorally Anchored Rating Scale.

Evaluating Performance with Relative Standards

Slide 18 Learning Outcome 4: Describe relative standards in performance management systems.

Employees are evaluated by comparing their performance to the performance of other employees.

Group Order Ranking Slide 19 Employees are placed in a classification reflecting their relative performance, such as “top 20 percent.”

Individual Ranking Employees are ranked from highest to lowest.

Paired Comparison A job trait is selected and then each individual is compared to every other.

Final ranking is based on number of times the individual is preferred member in a pair.

Exhibit 10 - 5 Ranking Employees by Paired Comparison page 221 shows a matrix that evaluates five employees against each other.

Class Activity: Contemporary Connection - Forced Rankings page 220 poses some interesting questions on how forced rankings are used. Does your college require grades based on a bell curve with a required number of students failing? It's become very rare, but how would students feel if that was the requirement of this class? Their workplace?

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Chapter 10: Establishing the Performance Management System

Using Achieved Outcomes to Evaluate Employees

Slide 20 Learning Outcome 5: Discuss how management by objective (MBO) can be used as an appraisal method Formal approach is Management by Objectives (MBO) which is a performance appraisal method that includes mutual objective setting and evaluation based on the attainment of the specific objectives.

Common elements in an MBO program are: • Specific goals – concise statements of expected accomplishments.

• Participative decision making – manager and employee choose goals and agree on how they will be achieved.

• Specific time period – concise time in which each objective is to be completed.

• Performance feedback – continuous feedback that allows individuals to monitor and correct their own actions.

Studies confirm that MBO effectively increases employee performance and organizational productivity.

Class Activity: Contemporary Connection - Facts on Performance Evaluations page 222 After reviewing these statistics, compare them to the experience of your students.

Factors That Can Distort Appraisals

Slide 21 Learning Outcome 6: Explain why performance appraisals might be distorted Even if appraisers are trained, all six steps are utilized, forms are well constructed and appraisers have adequate time, things can still go wrong.

Exhibit 10 - 6 Factors That Distort Appraisals page 221 lists the common problems found in the process.

Leniency Error Slide 22 Each evaluator has his/her own value system.

Some evaluate high (positive leniency) and others, low (negative leniency).

Calibration meeting coach supervisors to learn consistency.

Negative leniency example: Evaluator feels "nobody is perfect" and evaluate everyone harshly.

Positive leniency example: Evaluator hasn't been very observant or kept any usable records during the evaluation period and evaluates everyone positively due to inability to document any criticism.

Halo Error Evaluator lets an assessment of an individual on one trait influence evaluation on all traits.

Example: Employee develops a desirable or difficult technological skill, so evaluator assumes he or she can easily master other unrelated skills.

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Chapter 10: Establishing the Performance Management System

Similarity Error Slide 23 Evaluator rates others in the same way that the evaluator perceives him or herself.

Example: Evaluator sees the employee as "just like me at that age" and rates him or her favorably as a result. On the other hand, if an employee is an introvert, an extroverted evaluator may evaluate him or her lower in unrelated areas.

Low Appraiser Motivation Evaluators may be reluctant to be accurate if important rewards for the employee depend on the results.

Example: Employee may not receive raise or promotion if evaluation is less than excellent.

Central Tendency Slide 24 The reluctance to use the extremes of a rating scale and to adequately distinguish among employees being rated.

Poorly explained levels of performance on a form may contribute to errors.

Example: Evaluators may be reluctant to use 1 or 5 on a graphic rating scale that has ratings from 1 to 5, effectively reducing the choices to just 2, 3, 4.

Inflationary Pressures Pressures for equality and fear of retribution for low ratings leads to less differentiation among rated employees.

Example: Evaluator increases ratings slightly every year. Eventually, long-tenure employees have no room for improvement on the form.

Inappropriate Substitutes for Performance Slide 25 Effort, enthusiasm, appearance, and so forth, are less relevant for some jobs than others.

Traits with less relevance to strong performance should be weighted less than more important measures.

Example: Quality and Quantity of Work are often only one trait out of many on a form, although they may be much more important that other traits that have the same weight.

Attribution Theory Evaluations are affected based on whether someone’s performance is due to internal factors they can control or external factors which they cannot.

Example: If poor performance is attributed to internal control, the judgment is harsher than when it is attributed to external control.

Impression management: If employee positively influences the relationship with the supervisor, he/she is likely to receive a higher rating.

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Chapter 10: Establishing the Performance Management System

Creating More Effective Performance Management Systems

Slide 26 Learning Outcome 7: Identify ways to make performance management systems more effective.

There are several ways to eliminate errors and bias in the process.

Exhibit 10 - 7 Toward a More Effective Performance Management System page 226 illustrates this list of best practices for performance management.

Use Behavior-Based Measures Measures based on specific descriptions of behavior are more job-related and elicit more inter-rater agreement than traits, such as “loyalty” or “friendliness.”

Combine Absolute and Relative Standards Absolute standards tend to be positively lenient; relative standards suffer when there is little variability. Combining the standards tends to offset the weaknesses of each.

Provide Ongoing Feedback Slide 27 Expectations and disappointments should be shared with employees on a frequent basis.

Class Activity: Contemporary Connection - The Feedback Fix page 215 If you have a significant number of millenials in your class, this is a great opportunity to discuss their use of social media and expectations for feedback. Is social media a substitute or tool for workplace feedback? Classroom feedback?

Use Multiple Raters Increasing the number of raters leads to more reliable and valid ratings.

Self-Appraisals Employee insights into their personal performance.

Peer Evaluations Coworkers offer constructive insights and more specific evaluations; upward appraisals allow employees to give their managers feedback.

360-Degree Appraisals Supervisors, peers, employees, team members, customers and others with relevant information evaluate the employee.

Rate Selectively Slide 28 Appraisers only evaluate in those areas they are familiar with.

Appraisers should have first-hand knowledge of the individual being evaluated and his or her actual performance.

Use only trained and effective raters.

Train Appraisers

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Chapter 10: Establishing the Performance Management System Untrained appraisers who do poor appraisals can demoralize employees and increase legal liabilities.

Class Activity: Tips for Success - Team Performance Appraisals page 227 Team based appraisals are designed to promote teamwork and interdependence, but some highperforming Type A personalities find them frustrating and a bit scary. If your class has a group project, this is an opportunity to discuss group evaluations, using the questions in this feature.

The Performance Appraisal Meeting

Slide 29 Learning Outcome 8: Explain the criteria for a successful performance appraisal meeting.

Performance appraisals should be an opportunity for constructive feedback.

Steps for the performance appraisal meeting.

• Prepare for and schedule the appraisal in advance.

• Explain the purpose of the meeting in advance and create a supportive environment to put the employee at ease.

• Describe the purpose of the appraisal to the employee.

• Involve the employee in the appraisal discussion.

• Focus the discussion on work behaviors, not the employee.

• Support your evaluation with specific examples.

• Give both positive and negative feedback.

• Ensure employees understand what was discussed in the appraisal.

• Generate a development plan.

Exhibit 10 - 8 Ineffective Appraisals page 230 provides a funny but sadly not too farfetched example of a bad performance review.

Class Activity: Contemporary Connection - The Anywhere Performance Appraisal page 227 Shows how HRIS makes performance appraisal a web-based tool for communication. Questions in this feature focus on how much technology students expect a prospective employer to utilize. How much mobile technology do they expect your class or college to utilize?

International Performance Appraisal

Slide 30 Learning Outcome 9: Discuss how performance appraisals may differ in a global environment

Who Performs the Evaluation?

Different cultural perspectives and expectations between the parent and local country may make evaluation difficult.

Evaluation forms may not be translated accurately.

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Chapter 10: Establishing the Performance Management System Quantitative measures may be misleading because regulations, accounting practices, and chances for success differ across countries.

Class Activity: Tips for Success - Performance Metrics in China page 233 This short feature explains how cultural differences in expectations result in different metrics used to evaluate executives in the U.S. and China. If a local organization has an international branch, ask their HR department to address how overseas evaluations are different.

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Chapter 10: Establishing the Performance Management System

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

Explain the importance of each of the four purposes of the performance management system. Suggest a fifth purpose and explain why you feel it is important. (LO 1) Feedback lets employees know how well they have done and allow for employee input.

Motivation increases when goal are clear and progress is communicated.

Employee Development Performance Management identifies areas in which employees have deficiencies or weaknesses.

Documentation provides proof when discipline, dismissal or claims of discrimination and retaliation occur.

A fifth one might involve making sure compensation is fair, promotions are made on merit, or keeping a talent management focus.

2.

Describe the appraisal process. Explain which step in the process is most important.

(LO 2) The six-step appraisal process is as follows: • Establish performance standards with employees.

• Manager and employee set measurable goals.

• Measure actual performance.

• Compare actual performance with standards.

• Discuss the appraisal with the employee.

• If necessary, initiate corrective action.

The appraisal process must be objective and job-related. Any techniques used should be reliable and valid and should measure “reasonable” performance success. All aspects of the appraisal process must be bias-free.

3.

Contrast the advantages and disadvantages of evaluating employees by absolute standards and relative standards. (LO 3, 4) Absolute standards refer to a method in performance management systems whereby employees are measured against company-set performance requirements. Absolute standard evaluation methods involve the essay appraisal, the critical incident approach, the checklist rating, the graphic rating scale, the forced-choice inventory, and the behaviorally-anchored rating scale (BARS).

Relative standards refer to a method in performance management systems whereby employees' performance is compared to that of other employees. Relative standard P a g e 11

Chapter 10: Establishing the Performance Management System evaluation methods include group order ranking, individual ranking, and paired comparisons.

The advantage of absolute standards is that employees can be assessed as adequate against the external standard, but the disadvantage is that there is no indication of how employees compare to each other. With relative standards, the opposite is true. The advantage is that employees are compared to each other, but there is no external yardstick.

4.

Explain the concept of a Behaviorally Anchored Rating Scale (BARS) and explain how it can reduce leniency and central tendency errors. (LO 3) A Behaviorally–anchored rating scale (BARS) is an absolute assessment technique.

Critical incidents are identified, and a range of performance possibilities (from poor to good) are described for each dimension. This behavioral–based measure is preferable to a trait–oriented measure because it captures actual observable, job performance rather than a trait that may or may not influence performance.

5.

Explain the advantages of using management by objective (MBO) as an appraisal method. (LO 5) Management by Objectives (MBO) is an approach to appraisal that makes use of objectives. Organizational objectives are converted into individual objectives in a four– step process: goal setting, actual planning, self–control, and periodic reviews.

Advantages are that it uses a results-oriented emphasis. It assists the planning and control functions and provides motivation. Employees know exactly what is expected of them and should have a greater commitment to goals that are mutually set.

Disadvantages are that it will not work well where management has little trust in its employees. The MBO process is time-consuming. Finally, it may be difficult to measure whether the MBO activities are being carried out properly.

6.

What are some major factors that distort performance appraisals? (LO 6) Performance appraisal might be distorted for a number of reasons, such as leniency error, halo error, similarity error, central tendency, low appraiser motivation, inflationary pressures, and inappropriate substitutes for performance.

7.

Identify ways to make performance evaluations more effective. Select one that you believe is most effective and explain why. (LO 7) More effective appraisals can be achieved with behavior-based measures, combined absolute and relative ratings, ongoing feedback, multiple raters, selective rating, trained appraisers, peer assessment, and rewards to accurate appraisers.

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Chapter 10: Establishing the Performance Management System Having trained appraisers is a must. All of the methods developed to make appraisals more effective will not be of value unless the evaluator is trained in how to use them appropriately.

8.

What should supervisors know about conducting effective performance appraisal meetings? (LO 8) Prepare for and schedule the appraisal in advance.

Explain the purpose of the meeting in advance and create a supportive environment to put the employee at ease.

Describe the purpose of the appraisal to the employee.

Involve the employee in the appraisal discussion.

Focus the discussion on work behaviors, not the employee.

Support your evaluation with specific examples.

Give both positive and negative feedback.

Ensure employees understand what was discussed in the appraisal.

Generate a development plan.

9.

How does the global nature of business affect performance management systems?

(LO 9) Cultural differences among countries must be considered in international performance appraisals. Business practices may vary. What managers consider important performance indicators may vary. Evaluation instruments may need to be modified to accommodate the local environment.

Evaluating Alternatives 10.

"It's a dog eat dog world out there" according to Jackson, president of Onleo as he defended their use of relative standards to evaluate employees. "If Onleo falls below 10% market share, we're finished. Why shouldn't our employees who are in the bottom 10% lose their jobs?" Evaluate Jackson's point of view and explain the advantages and disadvantages of using relative standards and firing the lowest ranked performers. How do you feel about the practice? (LO 4, 6, 7) Group order ranking, individual ranking and paired comparison all require managers to compare workers to each other and create a ranking from best to worst. If the appraisal process also included adequate feedback to help struggling employees improve their effectiveness, it might help performance to a point. As mentioned in the chapter, many organizations find that after a few years, all underperforming employees are gone and the surviving employees are pitted against each other. This might cause them to be less likely to take risks, rather than more likely as Jackson seems to believe.

11.

“Performance appraisal is more valid and reliable when many perspectives are included. Supervisors should evaluate their employees, and employees should be able to evaluate their supervisors. And customers should evaluate them all.” Explain P a g e 13

Chapter 10: Establishing the Performance Management System the advantages and disadvantages of including a wide variety of people, including some outside the organization to evaluate employees. (LO 6, 7) Agree. The subordinate is in a unique position to evaluate the work of a supervisor. To the extent that the supervisor's work is the supervision and direction of subordinates, those workers are the 'experts' on that subject.

Disagree. The supervisor's job is larger than the portion of it that the subordinate sees.

Therefore, the subordinate has no knowledge of and cannot have an informed opinion about, the rest of the supervisor's job.

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Grading can be simplified by using the grading rubric above.

Activity Summaries 12.

This activity requires students to create a Behaviorally Anchored Rating Scale to evaluate a college professor. Results are presented to the class in a format of your choice. (LO 1, 3, 8)

13.

Students collect appraisal forms from a variety of local businesses and evaluate them.

Results are presented to the class in a format of your choice. ( LO 3, 4, 5)

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on performance appraisal involve assisting a non-profit organization provide feedback. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 10 - A: Growing Pains At Modern Office Supply Case Summary A young HR Generalist is frustrated when a variety of common problems in the performance appraisal process combine to make her job difficult. Students are asked to diagnose the problems and suggest ways to improve the process.

1.

What is missing in the performance management process and what ways would improve the performance management process help improve discipline and morale at Modern Office Supply? (LO 2) P a g e 14

Chapter 10: Establishing the Performance Management System

In the case of employees, Students might ask “what is NOT missing” from the performance management process. Employees don’t seem to have a clear idea how to effectively implement the six steps in the appraisal process (p. 249).

Appraisals aren’t always discussed with employees, and supervisor comments on the form are minimal.

The poorly designed form makes it difficult to communicate expectations, accurately measure performance or compare performance against the standards. Descriptions of job skills and levels of performance on the form are too vague to interpret adequately. For example, what is communication, decision making, etc? There is also no indication that employees have prior knowledge of the grading scale for each element. For example, what is an “outstanding” versus a “very good”?

In measuring the actual performance, the supervisors seem rushed and do not provide a detailed enough feedback that would be beneficial to employees. In addition, there seems to be In the case of the performance management process for managers, Hector the owner seems overwhelmed, reducing the likelihood that the evaluations of the managers are thoroughly completed. This is borne out by the fact that the managers are able to set easily attainable goals that are detrimental to the organization. Finally, only 60% of the appraisals are complete, which provides a clue that both the employees and managers are not that interested in them.

Improving the performance management process with accurate feedback and performance coaching could help improve disciple and moral, Employees are more likely to respect a system that managers show interest in, as well as a system that is used to determine other factors, such as pay, promotion and benefits.

2.

How does the form used for hourly employees contribute to errors and distortion in the appraisal process? How would you revise the form or reduce them? Explain other steps that need to be taken to further reduce distortions in the process. (LO 6) The form lends itself to a variety of distortions including leniency error, central tendency and inappropriate substitutes for performance. Evaluation forms that are specifically designed to fit each job description with clearer descriptions of the job skills and expected levels of performance will take some of the subjectivity out of the process and reduce distortions.

For example, what is a “poor performance” versus “needs improvement”? What each of the ratings means need to be carefully defined. It is also not clear what is being evaluated in each of the categories. For example, what would they mean by adaptability? Is that adaptability to the organization or to the job task and what is being used to evaluate this “adaptability”?

In addition, to defining the categories and explaining the scale, supervisors and managers need to be trained on how to complete the forms and encouraged to write details in the

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Chapter 10: Establishing the Performance Management System comments forms including what needs improving and how employees can complete these improvements.

3.

What type of appraisal method would you recommend that would be more effective for the hourly employees? Construct an appropriate form for the delivery driver position. (LO 2, 3, 4, 5, 7) Students answer may vary with this. A form that combines a couple of the “Absolute Standard” appraisal methods would be appropriate.

For the delivery drivers, a graphic rating scale or behaviorally anchored rating scale would provide a way to list and evaluate factors that would be relevant to the driver’s work (customer service, punctuality, etc.). In order to address the issue of rude behavior, customers’ input should also be included in the drivers’ evaluation in a critical incident appraisal format. In order to address lateness, the drivers supervisors could have access to data on the number of deliveries made in a shift as one way to keep track of the drivers in an objective way.

It might be interesting to have students discuss the feasibility of a paired comparison method to rank the drivers from the best to the worst (see Exhibit 10-5). This might force managers and employees alike to be aware of how each employee ranks versus other employees.

4.

How can the appraisal process for the manager be improved? (LO 5) The appraisal of the managers needs to be redone so that the goals that are discussed with each manager each period are tied to the overall goals of the organization and are based on some benchmarking efforts. While using a MBO process is effective, specific quantifiable goals are needed so that if they are not achieved, Hector can quickly note and address any deficiencies. If Hector is to remain involved in the MBO process, he needs to put more time into providing ongoing feedback and reviewing the performance goals regularly. If he is too busy to adequately manage the MBO process, he may need to delegate responsibility to other managers.

Case Application 10 - B Candy and Performance Management are Dandy at Jelly Belly Jelly Belly is a family-owned company that found during a merger that they had not only one ineffective performance appraisal process, they had two. Revising the process involved bringing in an HRIS provider to create an effective, easy-to-use, web-based performance appraisal process.

Questions: 1.

How do the performance management changes made at Jelly Belly address the four P a g e 16

Chapter 10: Establishing the Performance Management System purposes of performance management systems in chapter 3?(LO 1) Student responses should include application of: • Feedback • Motivation • Employee Development • Documentation 2.

Explain which of the six steps in the appraisal process seem to be addressed and how they are affected by the new system. (LO 2) Students may apply any of the six steps: • Establishing Performance Standards (step 1) • Communicate Expectations (step 2) • Measure Actual Performance (step 3) • Compare Actual Performance with Standards (step 4) • Discuss the Appraisal with the Employee (step 5) • Initiate Corrective Action If Necessary (step 6)

3.

Research: What other companies offer performance management system software?

Research two of those systems and explain how their products seem to address the purposes and steps of performance appraisal processes. (LO 1, 2) A resource for finding names of some of the larger providers would be the SHRM website at www.shrm.org.

Online Case Application 10 - C: TEAM FUN! 1.

2.

3.

4.

Evaluate how TEAM FUN! follows the six-step appraisal process. (LO 2, 3, 4, 5, 8) Is an MBO plan good for the company? What could be done to improve it? Evaluate Bobby’s goals according to MBO criteria. Suggest an alternative to their MBO exclusive performance appraisal process. (LO 5) Comment on the overall effectiveness of the performance appraisal process at TEAM FUN! (LO 7) Provide an outline for their discussion on absolute and relative measurement techniques for “fun.” (LO 3, 4)

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Chapter 11: Establishing Rewards and Pay Plans

Chapter 11: Establishing Rewards and Pay Plans Learning Outcomes After reading this chapter, students should be able to: 1.

2.

3.

4.

5.

6.

7.

Differentiate between intrinsic and extrinsic rewards.

Discuss how the Fair Labor Standards Act and other federal laws regulate compensation.

Identify external factors influencing compensation.

Discuss job evaluation and how it is used to create pay structures.

Explain base pay, premium pay and types of variable pay as parts of a compensation program.

Discuss the elements of executive compensation and why they can be significantly higher than those of other employees.

List the considerations in creating an international compensation program.

Chapter Overview Unpaid internships are pretty common and rarely legal. The chapter opener and the chapter address the six key criteria that must be met in order for an internship to be classified as unpaid by employers.

Chapter content includes complying with laws, evaluating the relative worth of jobs, and comparing pay to current labor market data are HRM activities that contribute to effective compensation administration. Pay is presented as one type of organizational reward which can be used to motivate performance if administered correctly. Today’s incorporation of incentives, competency-based pay and team-based pay are discussed, as well as issues relevant to executive and international compensation.

Additional features of this chapter: Exhibits: 11 – 1: Structure of Rewards 11 – 2: The “Slight Promotion” 11 – 3: Federal Minimum Wage 11 – 4: A Wage Curve 11 – 5: A Sample Wage Structure 11 – 6: Supervisory Competencies 11 – 7: Executive Pay Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student

Page 1

Chapter 11: Establishing Rewards and Pay Plans understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

•

Ethical Issues in HRM: The Secret Paycheck on page 242 discusses pay and the Lilly Ledbetter Pay Act, which allows employees more time to discover pay discrepancies that may be discriminatory.

•

Contemporary Connection – The Minimum Wage Debate on page 246 presents the pros and cons of raising the minimum wage for workers.

•

Contemporary Connection - Compensation in a Global Environment on page 258 compares the minimum wage rates of various countries.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 11 concepts: •

Several controversial current issues make this a good topic area for scheduling a formal in-class debate. Executive pay, comparable worth, team-based incentives, and competency-based pay, for example, are excellent topics for students to research and present the pros and cons.

•

Students often confuse job evaluation with performance evaluation. Clarify by explaining that the purpose of job evaluation is to compare the relative worth to the company of different jobs, or having different types of work done. A job’s evaluation should remain the same regardless of who is hired to do the job. Performance evaluation, on the other hand, is based on the accomplishments of an individual employee within the job. New, competency-based systems recognize the difficulties of separating the value of a person’s skills from the value of the work performed.

•

The concept of pay structures can seem complex, especially the procedures used to tie together salary survey information and job evaluation points using benchmark jobs. It’s helpful to use the concepts of internal equity (determined through job evaluation); external equity (determined using salary surveys); and individual equity (determined by fairly evaluating an individual to place him/her within a pay range). It’s also beneficial to take students step-by-step through the process of designing a simple pay structure. They can be given a simplified point rating system to evaluate some jobs they are familiar with.

Then, you can provide salary survey information on some “benchmark” jobs, which they should also evaluate. The pay curve determined using the benchmark jobs can be used to determine the “fair” pay for the other jobs they have rated.

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Chapter 11: Establishing Rewards and Pay Plans

Chapter Outline And Lecture Suggestions Introduction

Slide 3

People do what they do to satisfy some need and they look for a payoff or reward.

The most obvious reward is pay, but there are many others, including promotions, desirable work assignments, peer recognition, and work freedom.

Rewarding Employees

Slides 4 - 5 Differentiate between intrinsic and extrinsic rewards.

Learning Outcome 1: Compensation decisions are often strategic in nature, balancing employee expectations and the best way to accomplish organizational goals.

Total rewards is a comprehensive view of compensation that includes pay, training, health and wellness benefits, PTO with work-life balance, interesting work, culture and motivational aspects of work.

Intrinsic Versus Extrinsic Rewards Slides 6 -7 Intrinsic rewards (personal satisfactions) come from the job itself: • Pride in one’s work • Feelings of accomplishment • Being part of a work team.

Extrinsic rewards come from a source outside the job; they include rewards offered mainly by management: • Money • Promotions • Bonuses • Benefits Financial Versus Nonfinancial Rewards Slide 8 Financial rewards include wages, bonuses, profit sharing, pension plans, paid leaves, and purchase discounts.

Nonfinancial rewards emphasize making life on the job more attractive; employees vary greatly on what types they find desirable.

Performance-Based Versus Membership-Based Rewards Slide 9 Performance-based rewards, such as commissions, piecework pay plans, incentive systems, group bonuses, and merit pay, are tied to specific job performance criteria.

Membership-based rewards such as cost-of-living increases, benefits, and salary increases are offered to all employees Exhibit 11 - 1 Structure of Rewards page 241 shows several examples of intrinsic and extrinsic rewards.

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Chapter 11: Establishing Rewards and Pay Plans

Exhibit 11 - 2 The Slight Promotion page 241 provides a comic example of extrinsic rewards gone wrong.

Class Activity: Ethical Issues In HRM - the Secret Paycheck page 242 Although pay secrecy policies are difficult to defend legally, they are still common. Take this opportunity to reinforce the ethical issues with the questions listed in this short feature.

Government Regulation of Compensation

Slide 10 Learning Outcome 2: Discuss how the Fair Labor Standards Act and other federal laws regulate compensation.

A variety of federal and state regulations shape compensation.

HR professionals need to stay current with changing laws, regulations, Executive Orders and court cases.

Fair Labor Standards Act (FLSA) Slide 11 This 1938 act requires minimum wage, overtime pay, record-keeping, and establishes child labor restrictions.

According to the U.S. Department of Labor, seven in ten U.S. employers are violating wage and hour regulations, such as Starbucks and Wal-Mart.

Exempt employees Include professional and managerial employees, are not covered under FLSA overtime provisions.

White collar exemption allows employees paid at least $455 weekly to be classified as exempt if employed in an administrative, executive or professional capacity.

• That amount was last updated in 2004.

• DOL is seeking an increase in the amount.

• Several states already have higher minimum and tougher standards.

Nonexempt employees Eligible for premium pay (time and one-half) when they work more than 40 hours in a week.

Minimum wage set at $7.25 in 2009.

Tipped employees may earn direct wages as low as $2.13 (higher in many states).

If tips and direct wage do not equal minimum wage, employer must make up the difference.

Unpaid Internships Slide 12 FLSA doesn't recognize internships, but allows exceptions to minimum wage for training.

Child Labor FLSA restricts hours and activities for workers under 18 • Under 14 may do limited work with parental consent.

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Chapter 11: Establishing Rewards and Pay Plans • •

14 -15 year olds can work in some jobs outside of school hours for limited hours.

16 - 17 year olds can work in non-hazardous jobs (no driving or power equipment) unlimited hours.

Exhibit 11 - 3 Federal Minimum Wage Poster page 244. Always check DOL website or your state for updates.

Class Activity: Contemporary Connection - Minimum Wage Debate page 246. Increases in the minimum wage are always controversial. Students who have taken economics classes may be able to explain the economic pros and cons.

Questions in this feature encourage students to examine the minimum wage in your area.

Walsh - Healy Act Slide 13 Businesses with government contracts $10,000 and over must pay prevailing wage set by DOL. Civil Rights Act Prohibits discrimination in pay on the basis of race, color, creed, age, or sex.

Equal Pay Act This 1963 act requires that men and women hired for the same job be paid the same.

Salaries should be established on the basis of skill, responsibility, effort, and working conditions.

External Factors Affecting Compensation

Slide 14

Learning Outcome 3: Identify external factors influencing compensation External factors are often more influential in establishing wages than federal laws.

Geographic Differences When the local supply of labor is less than the demand, wages will increase.

When the local supply of labor is greater than the demand, wages will decrease.

Labor Supply With low unemployment rates, employers often need to raise wages to tempt employees to leave their current employment and apply.

High unemployment rates allow employers to pay less due to a plentiful supply of workers.

Competition Slide 15 - 16 Competition for workers influences wages.

Employers can react to competitors by • Matching the competition by paying the market or going rate for labor.

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Chapter 11: Establishing Rewards and Pay Plans • •

Lead the competition by paying higher wages than competing employers.

Lag the market by paying slightly less than the prevailing levels in the marketplace.

Cost of Living As the Consumer Price Index (CPI) increases, wages must also increase to allow workers to maintain their standard of living.

Cost of living varies according to location.

Collective Bargaining A labor union negotiates for the wages of its members.

Spillover effect may require non-union employers in the same area to raise wages.

The Pay Structure

Slide 17 Learning Outcome 4: Discuss job evaluation and how it is used to create pay structures.

Compensation Administration Designs cost-effective pay structures that attract, motivate and retain competent employees.

Job Evaluation Slide 18 - 19 • Job analysis is used to determine the relative value of each job in relation to all jobs within the organization.

• The ranking of jobs within an organization is only one type of information considered in designing a pay structure. Labor market conditions, collective bargaining, and individual skill differences are others.

• Judgment is involved in defining what factors should be used to compare jobs.

• Typical criteria are mental requirements; supervisory control; complexity; physical demands; and personal contacts.

• Typically jobs are grouped according to type and compared within their group; for example, clerical jobs; sales jobs; professional jobs.

• Methods include: Ordering method A committee places jobs in a simple rank order from highest (worth highest pay) to lowest.

Classification method Jobs are placed in classification grades by comparing their descriptions to the classification description and benchmarked jobs and looking for a common denominator such as skills, knowledge, or responsibility.

Point method Jobs are rated and allocated points on several identifiable criteria, using clearly defined rating scales. Jobs with similar point totals are placed in similar pay grades. The point method offers the greatest stability.

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Chapter 11: Establishing Rewards and Pay Plans Establishing the Pay Structure Slide 20 When job evaluation is complete, the data is used to create a pay structure. This process includes: Compensation surveys Gather factual data on pay rates for other organizations or areas where you are competing for employees. Information is often collected on associated employee benefits as well.

Wage curves Plots job evaluation data (such as job points or grades) against pay rates (actual or from survey data). These graphs indicate whether the pay structure is logical, and can be used to determine the pay rates for jobs where good external comparisons are not available.

Developing a Wage Structure Designates pay ranges for groups of jobs which are similar in value to the organization and which are grouped by their classifications, grades or points. This should result in a logical hierarchy of wages, consisting of ranges that overlap.

Types of Compensation

Slide 21 Learning Outcome 5: Explain base pay, premium pay and types of variable pay as parts of a compensation program The building blocks available for creating a compensation plan that supports organizational strategy and talent management include base pay, premium pay and variable pay.

Base Pay Determined by job evaluation process.

May be paid as: • Salary • Hourly wage • Piecework

Slide 22

Premium Pay Slide 23 Overtime Differential for hazardous, inconvenient or undesirable assignments or shifts.

On-call pay Special skills Variable Pay Slide 24 Designed to focus performance on organizational objectives such as productivity and sales.

Variable pay for individuals includes: Slide 25 - 26 Commissions Incentives for sales workers.

May be combined with salary.

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Chapter 11: Establishing Rewards and Pay Plans Percentages vary with occupations and employers.

Bonuses Incentives for specific performance.

Year-end bonuses are common.

Spot bonuses are effective immediate rewards.

Merit Pay Reward for performance.

Added to base pay.

Can be difficult to create and administer for some occupations where results are hard to evaluate or compare. Teaching is a great example.

Competency-based Rewards skills, knowledge of behaviors relevant to position.

Exhibit 11 - 6 Supervisory Competencies page 263 lists competencies that may be required of supervisors to receive competency-based pay.

Broad-banding Pay and career advancement are tied to competencies that promote organizational goals and objectives.

Variable Pay for Groups Slide 27 • Incentives can be offered to groups, rather than individuals, when employees' tasks are interdependent and require cooperation.

• Organizations today use team-based rewards as incentives for empowered work teams to exceed established goals and share equally in rewards.

• Effectiveness of team-based compensation depends on clarity of team purpose and goals, ability of the team to obtain needed resources, and effective team communication skills and trust.

Organization-Wide Incentives Slide 28 These direct employee efforts toward organizational goals (such as cost reduction) and include: Scanlon Plan (supervisor and employee committees suggest labor-saving improvements) IMPROSHARE (formula is used to determine bonuses based on labor cost savings).

Executive Compensation Programs

Slide 29 Learning Outcome 6: Discuss the elements of executive compensation and why they can be significantly higher than those of other employees.

Executives in the private sector receive considerably higher compensation than those in the public sector, 24 times those of the average employee.

Salaries of Top Managers Page 8

Chapter 11: Establishing Rewards and Pay Plans • • • • • •

Set by board of directors and designed to attract the best talent.

Board of directors are often criticized as being too close to CEOs to objectively set or negotiate salary.

Shareholders are becoming more critical and challenge salaries.

Deferred bonuses are paid to executives over extended time periods, to encourage them to stay with the company.

Some executives are offered hiring bonuses to compensate for the deferred compensation they lose when leaving their former company.

Stock options allow executives to purchase stock in the future at a fixed price, which can serve as a performance-based incentive to improve profitability.

Exhibit 11 - 7 Executive Pay page 256 illustrates that incentives make up a larger percent of executive pay than employee pay and asks students to examine the reasoning for this. Focus on strategic goals is the answer.

Executive Perquisites Slide 30 Perquisites or perks are offered to attract, retain, and motivate good managers and may include: • Paid life insurance • Club memberships • Company cars • Expense accounts • Interest-free loans • Consulting contracts • Free financial, legal and tax counseling, mortgage assistance, and so forth.

Golden parachutes protect executives when a merger or hostile takeover occurs by providing severance pay or a guaranteed position.

International Compensation

Slide 31 Learning Outcome 7: List the considerations in creating an international compensation program It is important to understand the statutory requirements of each country. International compensation packages generally utilize the “balance-sheet approach,” using the four factors below: Base Pay The pay of employees in comparable jobs at home. (Complexities include narrow pay ranges in foreign countries, foreign laws & currencies, taxation).

Differentials Compensation given to offset higher costs of living abroad.

“Hardship differential” compensation given if living conditions abroad are especially difficult.

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Chapter 11: Establishing Rewards and Pay Plans Incentives Inducements given to encourage employees to accept overseas assignments.

Assistance Programs Payment for expenses involved in moving a family abroad and in providing some services overseas.

Class Activity: Contemporary Connection - Compensation in a Global Environment page 258 Students may not realize that some countries have no minimum wage at all.

After examining this table, see if there are any second thoughts on raising the minimum wage in the U. S.

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Chapter 11: Establishing Rewards and Pay Plans

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

Explain the difference between intrinsic and extrinsic rewards and explain how they relate to a job you have held. (LO 1) Intrinsic rewards are those things that are internally satisfying to the individual worker, such as satisfaction with the work or meaning of the job itself. Extrinsic rewards are external to the work itself –– money, promotions, benefits.

2.

Summarize the ways the Fair Labor Standard Act regulates compensation. (LO 2) The FLSA requires a minimum wage, overtime pay, record-keeping and restrictions on child labor. It also specifies who qualifies as non-exempt and exempt employees.

3.

Outline the external factors that affect compensation and explain how they apply in your community. (LO 3) External factors influencing wages include geographic differences, the supply of labor, competition for labor, the cost of living in the area, and collective bargaining efforts of labor unions in the area.

Governmental influences affect compensation administration in several ways by mandating certain practices. For instance, the Fair Labor Standards Act sets minimum wage and overtime pay requirements. Both federal and state governments have passed laws that require government contractors to pay prevailing rates. The Equal Pay Act protects employees from unequal pay based solely on gender.

4.

Explain job evaluation and how the three different methods help to create effective pay structures. (LO 4) Job evaluation systematically determines the value of each job in relation to all jobs within the organization. There are three basic approaches to job evaluation: ranking, classification, and point method.

In the ranking method, jobs in the organization are compared to each other and ranked from most important to least important.

In the classification method, jobs are slotted into predefined job grades, based on skills, knowledge, and ability.

The point method is the most commonly used method of job evaluation. Points are assigned to the degrees of each job element, jobs are rated on each element and the total P a g e 11

Chapter 11: Establishing Rewards and Pay Plans points are summed. Dollar amounts are established for point values by determining the market value of key, or benchmark jobs and where they fit into the structure.

5.

Explain the types of individual incentive plans and how they motivate performance.

(LO 5) Individual incentives are performance based and are used to reward good individual performance that benefits the organization. The disadvantage is that the correct criteria to measure for rewards may be difficult to determine. Individual incentives are inappropriate when group effort is needed to perform the task or when the individual's work is not truly reflected in the end product.

Group incentives have the advantage of rewarding good team performance. The disadvantage is that some team members may be slackers, and competition between teams may produce unfavorable organizational consequences. Group incentives are inappropriate when individual effort is what is desired.

Organization–wide incentives have the advantage of making the goals and accomplishments of the organization very visible to all employees. The disadvantage is that workers may feel cheated if they feel their efforts are not reflected in the incentive rewards given to everyone in the organization.

6.

How do bonuses and stock options provide incentive pay for executives? (LO 6) Deferred bonuses are paid to executives over extended time periods, to encourage them to stay with the company.

Some executives are offered hiring bonuses to compensate for the deferred compensation they lose when leaving their former company.

Stock options allow executives to purchase stock in the future at a fixed price, which can serve as a performance-based incentive to improve profitability.

7.

Explain how salaries are determined for workers with assignments in other countries. (LO 7) The balance sheet approach is often used which includes base pay, differential pay to compensate for higher costs of living abroad or difficult living conditions, incentive pay to promote acceptance of overseas positions and assistance programs for families.

Evaluating Alternatives 8.

Would you rather work for an organization where everyone knows what others are earning or an organization where this information is kept secret? Why? Would it make a difference if you suspected that you were making more than coworkers with similar positions? Explain your answers. (LO 2, 3, 4)

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Chapter 11: Establishing Rewards and Pay Plans Open salary system: Everyone knows how salaries are determined and who is being rewarded the most. This may help to clarify the reward system so that individuals know what to do to move up financially. Openness also opens up the possibility of perceived unfairness and resentment if employees do not agree with the system.

Closed salary system: A perception of equity is not as difficult to maintain when no one really knows what anyone else is making. On the other hand, what they imagine may be much less fair than reality.

9.

During a class discussion on ethics, a classmate proclaims “U.S. executives earn every dollar of their pay. Very few people have the skills to effectively run a multimillion dollar global enterprise. Supply and demand should set salaries and if those skills are scarce, qualified executives should go to the highest bidder.” Another classmate argues "Nobody is worth $100 million a year. Corporations are creating a new class of American royalty. Executive pay should be regulated to protect stockholders." The professor turns to you and ask which side you agree with and why. Prepare an informed answer to his question. (LO 3, 4, 5, 6) For: Top company executives have tremendous organizational responsibilities. They often work long hours six or seven days a week. Their jobs typically require a high level of skills, knowledge, and abilities. Incentive pay encourages them to excel.

Against: U.S. executives make two to five times the salaries of their foreign counterparts.

They typically receive large base salaries regardless of the company’s performance.

Should they be fired, they often receive large severance packages. There are numerous examples where executives obviously put their personal well-being before that of the company, its employees, and stockholders.

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Grading can be simplified by using the grading rubric above.

Activity Summaries 10.

Students research wage surveys and wages for different job categories.

11.

A pay-for-performance system for college professors is developed.

12.

Violations of the FLSA are researched and reported.

13.

Teams interview compensation specialists and report back to the class.

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Chapter 11: Establishing Rewards and Pay Plans

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on compensation focus on providing extrinsic rewards for non-profit volunteers. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 11 - A: What is Fair at Exactitude Manufacturing?

Shannon Keller spent years developing a compensation system aligned with Exactitude's strategic goals of high quality manufacturing. External influences on compensation from the chapter have been considered. As with most workplace changes, employees have concerns.

Some minor, some serious. Students are required to apply chapter concepts to explain the system and address employee concerns. This case involves compensation in manufacturing, an industry that may be unfamiliar to students. Local industries may be able to provide context for the class.

Questions: 1.

How does Exactitude utilize intrinsic and extrinsic rewards to improve employee satisfaction and performance? (LO 1) Intrinsic rewards are self-initiated rewards, such as, pride in one’s work, a sense of accomplishment, or enjoying being part of a team. The new system emphasizes employee development and training to increase skills and ability. In addition, employees who have completed training and are qualified can bid on higher level jobs. Completing the training and being chosen for a higher level job can result in a sense of pride and accomplishment for the employees, impacting their intrinsic rewards and improving their job satisfaction levels.

Extrinsic rewards are tangible rewards such as a promotion, money or benefits. The training leads to promotions which result in increased wages, benefits and satisfaction levels for the employees.

Finally, with or without a promotion, the increased training would lead to improved job performance for the employees.

2.

Explain the influence of external factors that are relevant for Exactitude to consider when establishing wages in the different manufacturing locations. What resources are available to determine the necessary adjustments? (LO 3) External factors that are relevant for establishing wages in different manufacturing locations for Exactitude would include the geographic locations and the related overall supply and demand of qualified workers that are needed by employers in that particular location; the intensity of the competition from other employers vying for the same employees and what their own wages are. The cost of living expenses and cost of living increase rates in each particular area should also to be taken into consideration.

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Chapter 11: Establishing Rewards and Pay Plans

The cost of living figures for each region can be obtained from the U.S. Department of Labor’s Bureau of Labor Statistics. In addition, salary information, the presence of other companies who are also interested in the same employees as Exactitude and unemployment figures (to assist with supply of labor estimates) can be obtained from each state where the manufacturing facilities are located. Exactitude’s HR department could also conduct their own research to obtain the above information.

Students may also discuss that the differences in wages might seem unfair to employees who receive lower wages than their counterparts in other geographic areas.

3.

How will the new compensation plan help align compensation with Exactitude’s strategic emphasis on quality and productivity? (LO 1, 4, 5) All of the new tiers (to a slightly lesser extent for Tier 1) require extensive training for the employees. Employees who pursue improved skill development and training can be rewarded by bidding on and obtaining higher tiered positions. The new compensation plan ties improved skill development and training directly to increased compensation, thus Exactitude’s new strategic emphasis will be satisfied.

4.

What would you suggest that HR do to address each of the employee concerns expressed in the case? (LO 1, 3, 4, 5) The students’ answers may vary here, however the following points should be discussed.

It is obvious that the supervisors and senior workers believe they should be given additional compensation for their supervisory roles (which presumably has additional responsibilities) and their long term employment history in the organization. However, the new focus and strategy of the organization requires that employees are compensated for additional training and skills. Shannon Keller should look into why the more senior employees and supervisors are omitted from the new employment opportunities (bidding on jobs)? Is it solely because of the lack of new training? If so, what steps can be taken to make sure that they are all given the opportunity to obtain the training. Students may point out that even if given the opportunity, not all employees will take advantage of the training. In that case, employees should be clearly told by the HR department that increased compensation can only come through bidding on jobs with improved training.

Employees should be made aware of the external factors that go into determining a wage as tied to a particular geographic area (look at question one above for a list of external factors). It should be explained to Exactitude employees that factors such as supply and demand, cost of living differentials and competition from other employers will impact the wages that are paid across different geographic areas. Finally, it should be further pointed out to employees that the actual purchasing power of the wages for employees in different geographic areas might be closer to each other, after taking into account, cost of living and overall expenses in relation to the wages in that particular geographic are (in essence, the disposable income across geographic areas might be very similar).

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Chapter 11: Establishing Rewards and Pay Plans There seems to be a delay or limit in the number of training sessions available to employees, Exactitude should offer more training options for each session, as well as offering the sessions more often.

5.

Which Job Evaluation method seems to best describe the job tier system at Exactitude?

Of the three job evaluation methods mentioned in the chapter, the classification method seems most applicable in this case. The classification method requires that classification grades be established and published in a general schedule, for exactitude, this is their tier system. The classifications are created by identifying some common denominator – skills, knowledge, responsibilities – to create distinct classes or grades of jobs. Once the classifications are established, they are ranked in an overall order of importance according to the criteria chosen, and each job is placed in its appropriate classification.

This mirrors exactly what was done at Exactitude.

6.

Research: Using online sources like the Bureau of Labor Statistics, Indeed, Payscale, Glassdoor or others, research wages for manufacturing positions in your area. Compare them to another city or state. Explain any relevant external factors that may influence wages in your area.

Answers will certainly vary, but should include geographic differences, the supply of labor, competition for labor, the cost of living in the area, and collective bargaining efforts of labor unions in the area. Governmental influences such as local regulations or state laws may also be a factor.

Case Application 11 - B: Taking Care of the Employees Who Take Care of the Guests The hospitality industry has recently been the focus of the DOL due to widespread pay violations. Housekeepers are at the highest risk of not receiving fair pay for the hours worked.

Common unethical employer practices are outlined and students are asked to interpret relevant laws and other factors.

Questions: 1.

Under what circumstances would hotel employees be exempt from minimum wage and overtime requirements? (LO 2) Employees who are professional, managerial or in sales would be exempt if they earned more than $455 per week (may change or be different in your area). None of these are appropriate for housekeeping employees.

2.

A few hotels encourage guests to provide tips for housekeeping staff. How would that affect minimum wage requirements? (LO 2) For employees earning tips, employers may pay a direct wage of $2.13 and consider P a g e 16

Chapter 11: Establishing Rewards and Pay Plans those tips part of employees’ wages. Employers may claim a “tip credit” for the remaining amount, but if the tip credit and the direct wage are less than the minimum wage, the employer must make up the difference. Again, it would be unusual for housekeeping staff to qualify here either.

3.

What external factors affect the rate of pay for low skilled workers like housekeeping staff? (LO 3) Governmental influences such as federal or local minimum wage laws, the supply of labor and competition for housekeeping workers would be the most relevant. The cost of living in the area may be a factor. If housekeeping staff were unionized collective bargaining efforts of labor unions would be a strong factor.

4.

Does job evaluation justify the low wages paid to housekeeping staff? (LO 4) Probably. Housekeeping jobs may be important and difficult, but the skills and knowledge necessary are common and easily learned. They have few supervisory responsibilities and little guest contact. Ranking, classification and point methods would likely all result in housekeeping positions being low on the hierarchy.

5.

Research: What is the current Federal Minimum Wage? Is it different in the city or state in which you live? What jobs in your area earn the minimum wage? What sources did you use to find your answers? (LO2, 3) Most of the information can be found on the DOL website www.dol.gov.

Online Case Application 11 - C: TEAM FUN Questions 1.

Make lists of TEAM FUN! rewards: extrinsic versus intrinsic; financial versus nonfinancial; performance-based versus membership-based. (LO 1) 2.

How should job evaluation be used to establish a pay structure for TEAM FUN? How would the organization benefit? (LO 4) 3.

What external factors need to be considered in setting compensation for TEAM FUN? (LO 3) 4.

How should the organization address their practice of keeping salaries secret? (LO 2)

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Chapter 12: Employee Benefits

Chapter 12: Employee Benefits Learning Outcomes After reading this chapter, students should be able to: 1.

2.

3.

4.

5.

6.

Explain the elements of an effective benefits program.

Outline the legally required benefits that employers must provide.

Describe the major types of health insurance options and other voluntary benefits.

Discuss the types of retirement programs employers offer and the legal requirements of the Employee Retirement Income Security Act. Outline the different types of employee leaves and their benefits.

Explain the types of benefits offered in a global environment.

Chapter Overview Pets in the workplace are not appropriate everywhere, but the number of employers utilizing this inexpensive and popular benefit is increasing. This chapter opener outlines the significant benefits to employee satisfaction and workplace culture of allowing employees to bring their dogs to work.

Benefits are generally membership-based rewards which are desirable to employees and which can be designed to meet the diverse needs of today’s workers. The costs and complexities of both legally required benefits and voluntary ones, such as health insurance, retirement plans and time off are presented, as well as current issues, including flexibility of benefits choices and availability of benefits for families, domestic partners and retirees. Effective benefits administration allows companies to attract and retain good workers by creatively and costeffectively offering employees more than just their paycheck.

Additional features of this chapter: Exhibits 12 – 1: Total Compensation: Where Does the Money Go? 12 – 2: Benefits Overview 12 – 3: Percent of Private Employers Offering Selected Health - Related Benefits.

12 – 4: Flexible Spending Accounts 12 – 5: Sample Paid Time Off (PTO) Policy 12 – 6: Vacations Improve Productivity 12 – 7: Paid Vacation Mandated in Selected Countries 12 – 8: Global Benefits Around the World Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student Page 1

Chapter 12: Employee Benefits understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

•

Real HR Encounters – Abusing Worker’s Compensation on page 268 emphasizes why HR has to “play detective” and investigate Worker’s Compensation claims when they don’t appear to be legitimate.

•

Real HR Encounters – Whiteboard Puts a Face on the Cost of Health Insurance on page 312 describes how a superintendent was able to personalize health care costs to a union representative.

•

Ethical Issues in HRM: Airline Pensions Crash and Burn on page 276 describes how airlines are struggling to fund their pension plans and what it means for retirees.

•

Contemporary Connection - Leaving It Up to You: Paid Time Off (PTO) on page 277 describes the pros and cons of paid time off that many organizations are moving toward.

•

Ethical Issues in HRM – Making Sick Leave a Required Benefit? on page 279 explores whether or not paid sick leave should be mandatory.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 12 concepts: •

Benefits Bowl. The topic of employee benefits is complex, including lots of detail about laws, requirements and options. A good way to help the students learn some of the details, without listening to a dry lecture is to use a contest format. Make up a set of questions based on the chapter, and give student teams the chance to choose their questions by number or by picking them out of a hat or bowl. One option is to let each team have a chance, in turn, to answer a question, but to open it up to the floor if the designated team cannot get the right answer in one minute. You can keep track of the number of points earned by each team for correctly answered questions, and either offer grade points or a prize at the end of the session for the team with the most points. This activity also illustrates the impact of team rewards on worker behavior.

•

Writing Assignments and/or Speakers: So much is happening in the benefits area today, that this is an excellent topic to have students research in current HRM and news sources or to have speakers who are benefits administrators or vendors (e.g., a representative from a local HMO).

•

Students will also benefit from reviewing “real life” benefit packages. Ask students to bring in their own employer’s benefit packages. If they aren’t eligible, many HR professionals will give them a packet if they explain the purpose. Companies also include them on the Careers section of websites. If students are unemployed, encourage them to

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Chapter 12: Employee Benefits research plans on the Internet. The activity also complements “Working with a Team” at the end of the chapter.

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Chapter 12: Employee Benefits

Chapter Outline And Lecture Suggestions Introduction

Slide 3

Benefits are an important part of the total rewards package offered to employees.

Benefits Planning

Slide 4 - 6 Learning Outcome 1: Explain the elements of an effective benefits program Benefits are the largest employee expense after salary, making the right offerings very important.

Effective Benefit Programs Benefits should accomplish the strategic purposes of attracting, motivating and retaining good employees in a competitive environment.

Employee involvement in selecting benefits leads to greater satisfaction.

Offering the Right Benefits Slide 7 - 8 A diverse workforce creates demand for diverse benefit packages.

Domestic partner benefits have become one way employers accommodate diverse employee needs.

Family-friendly and flexible-workplace benefits may include innovative benefits such as social and recreational events, employee assistance programs, credit unions, housing, tuition reimbursement, paid jury duty time, uniforms, military pay, company-paid transportation and parking, free food, childcare services or referrals, pet health insurance, onsite fitness centers, free massages, haircuts and on-site health care.

Communicating Benefits to Employees Slide 9 Over 60 percent of employees are not aware of the content of their benefit packages.

Unused benefits waste money.

Communication is important: meetings, e-mails, social media, employee handbooks, newsletters, lunch and learn sessions, online benefits information.

Exhibit 12 - 1: Total Compensation - Where Does the Money Go? Page 265 Illustrates the percentages spent on common benefits.

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Chapter 12: Employee Benefits

Legally Required Benefits

Slide 10 Learning Outcome 2: Outline the legally required benefits that employers must provide Legally, U.S. organizations must provide certain benefits to their employees regardless of whether they want to or not.

Social Security Financed by equal employee and employer contributions, based on a percentage of earnings.

Provides: • Income for retirees, disabled workers & surviving dependents.

• Health insurance coverage through Medicare.

It is not intended to be the employee’s sole source of retirement income.

Unemployment Compensation Slide 11 - 12 Funded by employers who pay combined federal and state tax imposed on taxable wage base; tax varies based on organization’s unemployment experience.

Provides employees with some income continuation during periods of involuntary unemployment; typical coverage is for 26 weeks.

During long periods of high unemployment, state may run short of funds and have to borrow from the federal government’s unemployment trust fund.

Excludes self-employed, employees of organizations with fewer than four individuals, household domestics, farm employees, and state and local government employees.

Workers’ Compensation Slide 13 Worker’s compensation is paid for by the organization; rates are based on the likelihood of accidents, past history, and the type of industry.

Benefits pay expenses and/or compensate for losses, based on a fixed schedule of minimums and maximums, resulting from work-related accidents or illness, regardless of fault.

Family and Medical Leave Act Slide 14 Requires employers with 50 or more employees to allow up to 12 weeks of unpaid leave for family or medical reasons. Explained in depth in chapter 3.

Health Insurance Continuation Slide 15 Consolidated Omnibus Budget Reconciliation Act (COBRA) provides for continuation of benefits for up to three years after an employee leaves a job.

The cost of COBRA is paid solely by the employee.

Real HR Encounters - Abusing Worker's Compensation page 268 Worker's compensation is commonly abused with false claims of illness or injury. One HR professional shares a couple of examples that would be more humorous if they were not so frustrating.

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Chapter 12: Employee Benefits The HIPAA Requirement Slide 16 The Health Insurance Portability and Accountability Act of 1996 imposed on employers and health providers regulations regarding the confidentiality of employee health information.

This significance of confidentiality is magnified by growing concerns about identify theft.

Patient Protection and Affordable Care Act Slide 17 - 20 Was passed by Congress in 2010. It expands the availability and regulation of health care coverage.

• Employers with 50 or more full-time employees working 30 hours or more each week must offer health insurance or pay a penalty. Employers with over 200 employees must enroll all employees unless they opt out.

• Individuals are responsible for purchasing minimum coverage or paying a fine.

• States are required to create Health Insurance Exchanges • Insurance companies must expand coverage and eliminate lifetime limits, end restrictions on pre-existing conditions and provide coverage for employee's children up to age 26.

Voluntary Benefits

Slide 21 Learning Outcome 3: Describe the major types of health insurance options and other voluntary benefits Competitive benefit packages are essential for talent management and supporting organizational strategy.

Industries that have trouble recruiting employees with scarce skills may resort to creative and extravagant benefit packages.

What can be offered is only limited by creativity and budget. Some of the more common benefits are addressed here.

Exhibit 12 - 2 Benefits Overview page 270 lists benefits common at large communications companies.

Health Insurance Health insurance costs are growing faster than wages.

Many organizations are looking at a variety of cost-cutting measures: • Raising deductibles or percentage of premiums that employees pay.

• Implementing or strengthening wellness programs.

• Adding stronger financial incentives for participation in wellness programs, such as lower premiums for employees.

• Availability of prescription drug mail-order with smaller co-pays or mandatory generic prescriptions.

• Adding a smoker surcharge.

• Access to online doctors.

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Chapter 12: Employee Benefits • •

Availability of Employee Assistance Programs.

Onsite clinics.

Health Maintenance Organizations (HMOs) Slide 23 Strive to provide quality care at a lower cost for their members.

Health care choices significantly limited.

Primary Care Physician must be selected.

Employee pays small co-pay.

Full coverage is provided only at providers belonging to the HMO Preferred Provider Organizations (PPOs) Slide 24 Employer or insurer agrees to use provider's network of doctors, hospitals and medical service facilities in exchange for reduced cost.

Primary Care Physician is selected.

Point of Service Plans (POS) Similar to HMOs and PPOs. Requires employees to select a primary physician, but allows greater flexibility for using out-of-network services.

High Deductable Health Plan (HDHP) Slide 25 - 26 Employer provides a plan with low monthly premiums and high deductibles.

Less expensive for employer, but more expensive for employee.

Consumer Driven Health Plans (CDHP) Similar to HDHP, but more popular with employees because it includes a Health Savings Account (HSA). Usually includes: ▪ HDHP ▪ Health savings account with tax advantages ▪ Decision support and counseling for health expense decisions.

Exhibit 12 - 3 Percent of Private Employers Offering Selected Health-Related Benefits page 271 illustrates several types of insurance options and the percent of employers that offer them.

Disability Insurance Programs Slide 27 Provides salary continuation for short-term disabilities (sick leave) and long-term disabilities (coverage usually effective after 6 months).

Short-Term Disability Plans A plan that provides a percentage of an employee’s income if the employee must be absent from work due to an illness or injury.

This is used when an employee has no sick leave time left.

Long-Term Disability Plans Provides replacement income for an employee who cannot return to work and whose short-term disability coverage has expired.

Usually effective after 6 months.

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Chapter 12: Employee Benefits Average replacement salary is 60 percent.

Group Term Life Insurance Slide 28 Coverage is usually equal to the employee’s salary, however, many employers allow the employee to pay for increased coverage of between two and five times the employee’s salary.

Many employers allow employees buy coverage for a spouse and children.

Other Popular Benefits Slide 29 Although the potential is endless, here are a few of the most popular benefits employers extend to employees: ▪ Travel Insurance - Not just for unexpected travel expenses or lost baggage.

Air ambulance service and additional life insurance are options.

▪ Dental and Vision Insurance - Employers may pay all of the premium, split the premium with employees or just offer group rates to employees with no contribution at all.

▪ Tuition Reimbursement - Supports employee development efforts and reduces turnover.

▪ Employee Assistance Programs - Counseling and referral services for a variety of life and work problems such as substance abuse, gambling, financial problems, family issues, stress management, childcare and elder care referrals, retirement planning. Also assists managers in retaining employees going through a rough time in their lives.

▪ Wellness Programs - Often work in tandem with health insurance providers to reduce premiums. Benefits could include education, healthrisk assessment, healthy eating and living coaching, chronic illness prevention, exercise classes and fitness club memberships.

Offering Choices to Employees Slide 30 Flexible Spending Accounts ▪ Employees set aside money before payroll taxes to use for dependent care or healthcare expenses.

▪ Substantially reduces cost of qualified expenses.

▪ IRS guidelines have softened a bit in regard to the requirement that participants forfeit any balance at the end of the year. Plans may offer a grace period for medical expenses or allow carry-over of part of the balance.

Exhibit 12 - 4 Flexible Spending Accounts page 274 demonstrates how flexible spending accounts reduce employee out-of-pocket expenses.

Real HR Encounters - Whiteboard Puts a Face on the Cost of Health Insurance page 274 An HR professional relates how a school superintendent brought the cost of health insurance to a personal level during contract negotiations.

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Chapter 12: Employee Benefits

Retirement Benefits

Slide 31 Learning Outcome 4: Discuss the types of retirement programs employers offer and the legal requirements of the Employee Retirement Income Security Act College debt, Social Security uncertainty and flat wage growth create concern for millenials and others for retirement income.

Employer sponsored retirement plans can provide some financial security while decreasing turnover.

Employee Retirement Income Security Act (ERISA) of 1974 Created to protect employees from losing the pensions earned from employers: ▪ Requires Summary Plan Description (SPD), an explanation of benefits in “plain” language, be given to employees.

▪ Defines employee vesting rights, which is the right to pension benefits even if one leaves the company.

▪ Enables pension rights to be portable, so a worker who changes employers will not lose benefits.

▪ Sets guidelines for the termination of a pension plan.

▪ Created the Pension Benefit Guaranty Corporation (PBGC) must be notified if an employer is voluntarily terminates a pension plan. PBGC can lay claims on corporate assets to cover inadequately funded pension plans.

The 1984 Retirement Equity Act ▪ Decreases the retirement plan participation age from 25 to 21.

▪ Eliminates gender discrimination for those women of child-bearing age who do not have 10 years of consecutive employment.

▪ Requires plan participants provide written approval from a spouse before the participant can waive survivor benefits for the spouse.

Defined Benefit Plans Slide 32 Plan specifies the dollar benefit workers receive at retirement Benefit is based on a formula that takes into account: ▪ Years of service ▪ Life expectancy ▪ Life-time earnings ▪ Investment return on the trust portfolio Plans are scarce in private industry, but common in state and local governments or highly unionized industries.

Class Activity: Ethical Issues in HRM - Pensions Crash and Burn page 276 It isn't just airlines. Many employers have chosen to give up the financial liability of their defined benefit pension funds and turn them over to The PBGC, leaving retirees with a fraction of the retirement benefits they were planning to retire on. Ethical questions go on to ask whether retirees should be insulated from the financial problems of former employers or face the same consequences as the current employees.

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Chapter 12: Employee Benefits

Defined Contribution Plans Slide 33 - 34 Employee and employer may contribute to account based on rules established for contribution.

Amount of benefits depends on success of account investments.

Money Purchase Pension Plans Type of defined contribution plan; organization commits to depositing fixed amount of money or percentage of employee’s pay annually.

Amount of contribution is regulated by IRS Profit-Sharing Plans Variation of defined contribution plan.

Company amount contributed depends on profit level in the organization.

Contribution is optional, not required.

Individual Retirement Accounts (IRAs) Currently designed for lower-income workers who don’t have pension programs at work Can defer taxes on amount deposited and interest earned in retirement account.

401(k)s Permit workers to set aside specified amount of income on tax-deferred basis; employers may match employee contribution.

Leave Benefits

Slide 35 Learning Outcome 5: Outline the different types of employee leaves and their benefits Although U.S. employers are not required to provide any time off with pay. Many understand that it is a highly desirable benefit for employees and have several different ways to provide it.

Paid Time Off Employees earn paid time off to use for any reason, including illness, vacation, personal time or holidays.

Exhibit 12 - 5 Sample Paid Time Off (PTO) Policy page 278 explains how employees at a large medical center earn PTO. Class Activity: Contemporary Connection - Leaving It Up To You: Paid Time Off Leave page 277 explains the pros and cons of PTO policies. Students are asked about unintended consequences of PTO. Vacation and Holiday Leave Slide 36 Vacation pay is usually awarded after a certain amount of time worked.

No paid vacation days are required in the U.S., but on the average, employees earn 10 days after one year on the job.

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Chapter 12: Employee Benefits Time off the job results in reduced stress and improved productivity.

70 percent of U.S. workers don't take all vacation time. Reasons include: ▪ Worries about job security.

▪ Heavy workloads.

▪ Culture that discourages taking time off.

Exhibit 12 - 6 Vacations Improve Productivity page 279 takes a comical look at vacation time.

Exhibit 12 - 7 Paid Vacations Mandated in Selected Countries page 279 lists the number of paid vacation days ranging from 38 days each year in Austria to none in the U.S. Sick Leave Earned after a specific number of days or hours are worked.

Accumulates to a maximum number of days or hours.

Employers have a variety of tactic and policies to prevent misuse.

Class Activity: Ethical Issues In HRM: Making Sick Leave a Required Benefit?

Page 279 explains the movement to require employers to provide paid sick days, with a few ethical questions to answer.

Benefits in a Global Environment

Slide 37 Learning Outcome 6: Explain the types of benefits offered in a global environment Benefit packages need to consider strategy and talent management plus a variety of other factors unique to each country: ▪ Customs ▪ Culture ▪ Competition for employees ▪ Government benefits offered or required.

Popular Categories of Benefits: Slide 38 Leaves provide some of the biggest differences in benefits that governments require employees to offer.

Healthcare is a government provided benefit in many countries.

Pension Plans, similar to defines benefit plans or Social Security in the U.S. are provided by many governments.

Other Benefits may be provided to stay competitive are to provide tax relief for workers.

Exhibit 12 - 8 Benefits Around the World page 280. Some of the benefits commonly provided in Canada, China and Germany seem quite generous.

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Chapter 12: Employee Benefits

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

Explain the advantages of offering employee benefits from the perspectives of the employee and the employer. (LO 1) Employers offer benefits to employees to attract and retain them. Benefits are expected by today’s workers, and as such, must be offered in such a way that they provide meaning and value to the employees.

Benefits, while necessary for attracting and retaining employees, typically have very little impact on employee work behavior. Benefits are linked to employment rather than performance. However, the company’s failure to provide adequate benefits may lead to decreased worker morale.

2.

Explain the function and purpose of four legally required benefits. (LO2) Legally required benefits are Social Security, unemployment compensation, workers’ compensation, leaves specified under the Family and Medical Leave Act and Health Insurance Continuation. Social Security is a transfer program, funded by current employees to support workers who are disabled or retired. Social Security also serves as a minimum level of retirement income for most workers employed in the United States.

Unemployment compensation provides income continuation to employees who lose a job through no fault of their own. Unemployment compensation typically lasts for 26 weeks.

Workers’ compensation provides income continuation for employees who are hurt or disabled on the job; it also provides compensation for work-related deaths or permanent disabilities. Employers covered by the Family and Medical Leave Act are required to provide qualified employees with up to 12 weeks of unpaid leave to care for a new child, their own or family members’ illnesses.

3.

Describe the differences in the types of health insurance plans from the perspective of an employee. (LO3) HMOs limit choice of providers as a trade-off for cost savings. Insured persons must select a primary care physician and use providers belonging to the HMO. A small co-pay is paid for medical services received.

PPOs are similar to HMOs from the employee perspective, but the provider's network must be used.

POS plans are also similar, but employees have more flexibility to select healthcare providers that are not in the provider's network.

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Chapter 12: Employee Benefits HDHP plans are really expensive for the employee because of the high deductibles paid when services are received.

CDHP are similar to HDHP, except the high expense for the employee is reduced with Health Savings Accounts.

4.

Explain the ways ERISA and PBGC provides protection for workers with pensions.

(LO 4) The Employment Retirement Income Security Act (ERISA) has had a significant effect on retirement programs. Its primary emphasis is to ensure that employees have a vested right to their retirement monies, to ensure that appropriate guidelines are followed in the event of a retirement plan termination, and to ensure that employees understand their benefits through the Summary Plan Description.

The PBGC takes over insolvent pension plans and makes sure retired employees get a percentage of the retirement money they earned.

5.

What are the major differences between defined benefit pension plans, defined contribution plans and 401k accounts. Which would you prefer and why? (LO 4) In a defined benefit plan, a specific amount of money, based on an actuarial calculation, is set aside each year in a trust fund for the employees by the employer. The pension payout is typically calculated using a formula that often includes average final compensation and years of service.

With a defined contribution plan, each employee has an individual account to which both the employee and the employer may make contributions. There may be some options on investment choices. Final benefits depend on the outcome of the investments. These plans are growing in popularity, since they offer more flexibility to both employer and employee.

The defined benefit plans are the best deal for employees because there is a guaranteed income for life and a good chance that they will receive significantly more than they contributed.

6.

Why is PTO such a popular option over sick leave? (LO 5) Employees appreciate the freedom to use paid days off for any reason without being accountable to the employer. This is a more family friendly and flexible arrangement than traditional sick leave.

7.

How do benefits for employees in other developed countries compare to employees in the U.S.? (LO 6) They seem to be significantly more generous. Before jumping to conclusions about the P a g e 13

Chapter 12: Employee Benefits U.S. being stingy, a comparison of taxes and wages might be relvant.

Evaluating Alternatives 8.

When interviewed about his new business venture, a local entrepreneur told a reporter "I'll provide every benefit I'm required to by law, and the minimum amount of health insurance I can buy to stay legal. He went on to explain that "voluntary benefits like life insurance, paid vacations, retirement and crazy perks like fitness centers, daycare, massages and nap rooms are gimmicks employers use to get recognized on 'Best Employer' lists. Just pay them a great wage and they can buy their own life insurance and save for their own retirement. It's money they want. Not frills." Evaluate his point of view from both sides. Explain which side you agree with and why. (LO 1, 3, 4, 5) Agree: Organizations need to select benefits that support their strategy, culture and talent management needs. If the employer is in an industry where employees are driven significantly by extrinsic rewards like money, then his total rewards strategy might work for him.

Disagree: Employees are also driven by intrinsic rewards. Benefits provide a number of flexibility and family friendly benefits that support work-life balance. Research shows that millenials seem to prefer workplace flexibility over salary and benefits are a significant factor in whether applicants accept job offers.

9.

“Social Security should serve as a foundation for employee retirement programs.

Therefore, Congress should explore more extensive revisions to the program to ensure that the next generation of retirees will receive the benefit.” Do you agree or disagree with this statement? Explain your response. (LO 2, 4) Student responses may/will vary. Some suggestions: Agree: Social Security was never intended to provide a person’s total retirement income, only to serve as a beginning. It needs to remain in place. As the population ages, it is clear that the existing program must be revised to ensure funds are available. If the program is eliminated instead of revised, it is highly likely that many people will not effectively plan for retirement, thus burdening society with their care.

Disagree: With the changing population demographics in the United States, the majority of today’s employees want to invest their own money and most could probably get a much better return than the government. Let people take responsibility for their own future.

10.

Employers in many other countries are required to provide generous paid leaves compared to the U.S. Evaluate the advantages and disadvantages of requiring U.S. employer to provide a minimum amount of paid time off. (LO 5, 6)

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Chapter 12: Employee Benefits Advantages: Employees who are allowed time off with pay are less likely to come to work when sick, reducing "presenteeism" and the risk of spreading illness. Workers who take time off show less stress and more productivity. May reduce employee turnover.

Disadvantages: Paid time off is an additional employer expense that may reduce the number of employees hired and hurt small business.

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Activity Summaries 11.

The chapter opener discusses the benefits of allowing employees to being their dogs to work. What happens when an employee is bitten by a co-worker's dog? Students research the issues and present a policy to the class. (LO 1)

12.

Students search YouTube for a video on an employee benefit topic and present it to the class. (LO 1, 2, 3, 4, 5, 6)

13.

Local employers are surveyed about the benefits they offer. Students accumulate and analyze the data and present it to the class with visuals. (LO 1, 2, 3, 4, 5, 6)

14.

Benefits offered by several different local industries are compared and presented in a paper. (LO 1, 2, 3, 4, 5, 6)

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on employee benefits are a variety of projects that involve volunteering with local healthcare providers to develop a better understanding of their issues. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 12 - A: Trouble at Paradise Elena, an HR Director at a casino, meets with Sienna, an employee with family and financial problems. Sienna wants a raise, which Elena can't accommodate. Elena suggests ways the casino's benefits offerings could help Sienna, who is tough to convince.

Questions: 1.

Evaluate Elena's suggestion to change to the CDHP. What does Sienna need to consider when selecting her health insurance plan? (LO 3) P a g e 15

Chapter 12: Employee Benefits

The CDHP involves a lower premium and higher deductibles. It would be a good alternative if Sienna's kids don't require lots of visits to the doctor or emergency room which would possibly increase her out of pocket expense. It would be a better choice if the employer makes a contribution to the HSA. Sienna needs to compare how much she will save in premiums with the increased amount she will need to pay for her and her children's medical expenses. Her child's asthma expense is a factor to consider.

2.

What expenses can Sienna pay out of a flexible spending account? Explain how the account can save her money. (LO 3) Childcare and medical expenses for her child's asthma medication can be paid out of the FSA. She will save money because the expenses are paid out of money deducted before taxes are taken out of her paycheck. This will reduce those expenses by roughly the same percentage she pays in taxes.

3.

How can Paradise Grand communicate employee benefit options more effectively to employees? (LO 1) In addition to meetings and e-mails, employees should be reminded of benefits on social media, employee handbooks, newsletters, lunch and learn sessions, online benefits information on the company website.

4.

Research: Paradise Grand belongs to an Employee Assistance Program (EAP).

What services do EAPs provide that might help Sienna? (LO 3) If a local EAP or Student Assistance Program is available, encourage students to go to their website to investigate their services which may include several services that may help Sienna such as: legal and financial advice, counseling, childcare referrals.

Case Application 12 - B: Perks and Profits Genentech, a California pharmaceutical company, and Zappos, an online shoe retailer, are firms with employee retention strategies that result in low turnover rates. Employee benefits are a key component of both organizations’ HR strategy.

1.

Describe the importance of employee benefits as a strategic component of fulfilling the goals of HRM at Genentech and Zappos.

Clearly, both Genentech and Zappos acknowledge that employee turnover affects the bottom line. By identifying creative benefit solutions that appeal to their individual workforces, Genentech and Zappos keep turnover low and employee satisfaction high, which translates into savings gained through retention. Also, recruiting efforts are most likely enhanced due to the concern for employees both represent. (LO 1) P a g e 16

Chapter 12: Employee Benefits

2.

Explain how Genentech and Zappos use employee benefits as a motivating tool.

Encourage students to visit the web sites of both companies (www.genentech.com and www.zappos.com) noting the list of benefits each offers to employees. Using this list, students will be able to relate how the each of the benefits can be used to motivate employees to excel. (LO 1, 3, 5)

3.

Research: Review the findings of three different lists of excellent workplaces such as "Best Places to Work". What role do benefits seem to play in these workplaces? Do any specific benefits seem to be more important than others? Which ones? (LO 1,3,5,6) A variety of organizations and websites compile "Best Places to Work" lists including Forbes, Fortune and Glassdoor.

Online Case Application 12 - C: TEAM FUN Questions: 1.

2.

3.

4.

As Tony’s intern, make a list of ways to reduce the cost of health insurance coverage.

(LO 2) How does TEAM FUN!’s vacation package differ from most U.S. companies? How would converting the vacation and sick leave to PTO address the concerns voiced by Tony and Edna? (LO 3) What type of retirement plan would be most appropriate for TEAM FUN? (LO 4) How could TEAM FUN provide more flexibility in their benefits package without adding to the expense? (LO 1, 5)

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Chapter 13: Managing Health and Safety Risks

Chapter 13 Managing Health and Safety Risks Learning Outcomes After reading this chapter, students should be able to: 1.

2.

3.

4.

5.

6.

Outline the provisions and requirements of the Occupational Safety and Health Act..

Explain the inspection priorities, process, and penalties of the Occupational Safety and Health Administration (OSHA).

Explain the actions OSHA and employers take to create a safe and healthy work environment.

Outline common workplace health concerns and ways to reduce or prevent them.

Explain causes and methods of reducing job stress.

List health and safety concerns for employees traveling internationally.

Chapter Overview Is there a similarity between professional athletes and the drivers of FedEx, UPS, and the U.S. Postal Service? There are the uniforms, of course, but the physical demands and injuries of drivers also have similarities to those of professional athletes. FedEx, UPS and the postal service have all hired athletic trainers to help employees maintain strength, agility, and stamina in performing their jobs. The idea is to prevent injuries on the job, and it seems to be working as one UPS region experienced an 85 percent reduction in injuries.

The chapter itself deals with both traditional and new topics in health and safety. The first part of the chapter provides information on the Occupational Safety and Health Act, including requirements, punitive actions and as a resource for employers. Next, issues related to both safety and health in the workplace are summarized, with separate sections on workplace violence, indoor air quality, repetitive stress injuries, stress, employee assistance programs, and wellness programs. Guidelines for the international environment conclude the chapter.

Additional features of this chapter: Exhibits 13 - 1 OSHA Form 300 13 - 2 Determining Recordablilty of a Case Under OSHA 13 - 3 OSHA Protection Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

Page 1

Chapter 13: Managing Health and Safety Risks •

Ethical Issues in HRM – Legacy of a Tragedy on page 289 describes how the tragedy of a factory fire led to laws protecting worker safety.

•

Contemporary Connection – OSHA’s Top Ten Violations on page 295 lists the most common workplace safety violations in 2011.

•

Ethical Issues in HRM– Smokers and the Obese Need Not Apply on page 301 discusses why organizations do not want to hire those who smoke or are obese.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 13 concepts: •

The material in this chapter may seem new and different and, in many organizations, health and safety issues are managed by a separate department from Human Resources.

It’s helpful to point out the interdisciplinary nature of health and safety activities; e.g. medical personnel, industrial hygienists and other technically-trained personnel may work with the HR specialists and line managers to keep the workplace safe. It’s also helpful to remind students about previous topics, such as planning and job design which are very relevant to the successful design and implementation of health and safety programs.

•

Students often have good examples from their own work experiences of unhealthy or unsafe employment conditions. For each example, discuss the employer’s and employee’s responsibilities, as well as suggestions for making the workplace healthier.

Always bring up the question of how much it would cost to implement a suggestion, and whether the benefits would justify the cost to the employer.

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Chapter 13: Managing Health and Safety Risks

Chapter Outline And Lecture Suggestions Introduction

Slide 3

Management has both legal and moral responsibilities to provide a safe and healthy workplace

Legal Obligations for Workplace Safety and Health

Slide 4 Learning Outcome 1: Outline the provisions and requirements of the Occupational Safety and Health Act. Occupational Safety and Health Act • Established health and safety standards.

• Authorized inspections and fines for violations.

• Empowered OSH Administration to ensure standards are met.

• Requires employers to keep records of illnesses and injuries, and calculate accident ratios.

• Applies to almost every U.S. business engaged in interstate commerce.

The act covers four major categories of employers: Slide 5 • General industry • Construction • Agriculture • Maritime General Duty Clause covers any potentially dangerous or unhealthy workplace condition that isn’t covered by specific OSHA industry regulation OSHA Record-Keeping Requirements Slide 6 Employers in most industries must keep safety and health records. Organizations in low risk environments (education, retail) are exempt.

In addition to reporting any work-related illness, employers must report injuries that require medical treatment besides first aid, involve loss of consciousness, restriction of work or motion, or transfer to another job. Incidence rate is the number of illnesses, injuries or lost workdays per 100 full-time workers.

Forms include: Slide 7 • OSHA form 300—Log of Work-Related Injuries and Illnesses • OSHA form 300A—Summary of Work-Related Injuries and Illnesses • OSHA form 301, Injury and Illness Incident Report Used by OSHA to determine which industries and organizations are more susceptible to injury.

Exhibit 13 - 1 OSHA Form 300 page 287 illustrates the current version of the form.

Page 3

Chapter 13: Managing Health and Safety Risks Exhibit 13 - 2 Determining Recordability of a Case Under OSHA page 288 is a flow chart that explains whether a work related injury or illness needs to be recorded.

Class Activity: Ethical Issues in HRM - Legacy of a Tragedy page 289 What is the purpose of regulation? How much regulation is necessary? This pivotal moment in American history explains how dangerous a workplace can be when safety regulations are lacking and employers do little beyond the minimum. Ethical questions ask students to consider the ethical actions of employers when employee safety is at risk.

OSHA Inspection and Enforcement Learning Outcome 2: Explain the inspection priorities, process, and penalties of the Occupational Safety and Health Administration (OSHA).

OSHA has six levels of inspection priorities.

Slide 8 - 9 Imminent danger A condition where an accident is about to occur.

Fatalities and catastrophes Employer must report within 8 hours, so OSHA can review the scene and try to determine cause.

Employee complaints Employees who see a violation of standards have the right to call OSHA. Referrals From other federal, state or local agencies, individuals or news media.

Follow-ups Organizations that have previously been cited to make sure corrective action has taken place.

Planned or programmed investigations Limited resources require OSHA to direct attention to industries with highest injury rates.

Exhibit 13 - 3 OSHA Protection page 290 is the current version of the OSHA poster required to be posted.

Inspection Process Slide 10 When a complaint is received, OSHA follows a standard procedure to follow: Inspector's Credentials • Inspector arrives and presents credentials.

• Employers can require a search warrant.

• Opinions vary whether that is a good idea or not.

Opening Conference • OSHA Compliance Officer explains purpose of inspection.

• Employer receives a copy of the complaint.

• Employee name can be withheld.

Inspection Tour Page 4

Chapter 13: Managing Health and Safety Risks •

OSHA Compliance Officer and employer representative inspect work areas.

• Compliance Officer takes notes and photos and records other observations.

• Forms are inspected.

• Compliance Officer may make suggestions for safer work conditions.

Closing Conference • Compliance Officer explains any unsafe conditions found to employer.

• Violations are explained.

• Appeal process is explained.

OSHA Penalties Slide 11 - 12 Willful Violations • Employer knew about a regulation and purposely ignored it or acted with indifference for worker safety.

• Missing or inadequate safety equipment is a common example.

• Fines between $5,000 and $70,000 per violation.

• Can increase to $250,000 for an individual or $500,000 if a willful violation resulted in the death of an employee.

• Executives in the company may be criminally liable.

Repeated Violations • Organization has previously been cited for a violation and a similar violation is found, fines up to $70,000 may be imposed for each violation.

Creating Safer Workplaces

Slide 13 Learning Outcome 3: Explain the actions OSHA and employers take to create a safe and healthy work environment.

OSHA's mission is to promote safety and health of American workers in a variety of ways.

Special attention is given to industries with high rates of injury or illness.

Suggestions for safer workplaces include: Management Commitment and Employee Involvement Management commits to creating a safe environment and communicates this to employees asking for their insight and cooperation. The cost savings benefits: • healthier employees • lower worker’s compensations costs • reduced medical expenses • better quality products • increased productivity • increased morale • better labor/management relations Managers can get employees involved in the following ways: • Develop and post a company worker safety policy near the required OSHA workplace poster.

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Chapter 13: Managing Health and Safety Risks • • • • • • •

Hold regular meetings on safety and health with employees.

Require all management to follow the same safety standards.

Create and post written safety responsibilities for all.

Allow adequate time and resources to determine hazards and correct them.

Regularly review and evaluate safety initiatives with employees.

Provide safety incentives.

Establish safety committees.

Worksite Analysis Employers who lack expertise in determining all possible hazards and standards can request a visit from OSHA to evaluate their environment.

Hazard Prevention and Control Worksite analysis may uncover hazards that must be eliminated or controlled.

Where necessary employees must use protective equipment and management must be committed to ensure compliance.

Safety data sheets (SDS) All hazardous materials should be labeled and employees must have access to SDS. Training for Employees, Supervisors and Managers Owners and managers need to ensure employees understand workplace hazards and are trained in how to handle them.

Training should be memorable by making it interesting and interactive.

The National Institute for Occupational Safety and Health Slide 14 Researches work hazards and sets OSHA standards.

Makes recommendations to prevent work-related illness and injury.

Contemporary Connection: OSHA's Top Ten Violations page 295 This list changes annually, but the content stays essentially the same.

Health and Safety Issues

Slide 15 Learning Outcome 4: Outline common workplace health concerns and ways to reduce or prevent them.

Workplace Violence Homicide is in the top three causes of work-related deaths in the USA. Employees at increased risk of violence are workers who: • Exchange money with the public.

• Make deliveries.

• Work alone or in small groups.

• Work late at night or early morning hours.

• Work in community settings where extensive contact with the public is necessary.

Page 6

Chapter 13: Managing Health and Safety Risks While a specific plan of action for companies is difficult to detail, some suggestions include: Slide 16 • Develop a plan to deal with workplace violence, including review of policies and employee treatment.

• Train supervisory personnel to identify and deal with troubled employees.

• Implement stronger security mechanisms.

• Prepare employees to deal with violent situations.

Bullying Slide 17 - 18 Mistreatment of one or more persons (the targets) by one or more perpetrators.

It includes: • Verbal abuse • Behavior that is threatening, humiliating, or intimidating • Sabotage or other work interference • Gossip • Unfair criticism • Isolation • Intolerable work conditions Results in: • Poor morale • Reduced productivity • Increased turnover • Stress Reduce by: • Creating a culture of respect • Education • Policy on workplace bullying with procedures for reporting.

Indoor Air Quality Slide 19 Sick buildings are office environments that contain harmful airborne chemicals, asbestos, or indoor pollution. Suggestions for keeping the environment healthy include: • Making sure workers get enough fresh air.

• Avoiding suspect building materials and furnishings.

• Testing new buildings for toxins before occupancy.

• Providing a smoke-free environment.

• Keeping air ducts clean and dry.

• Paying attention to workers’ complaints.

The Smoke-Free Environment Costs of smokers include: • Increased health premiums.

• Absenteeism.

• Lost productivity due to smoke breaks.

• Maintenance costs.

Slide 20 - 21

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Chapter 13: Managing Health and Safety Risks • Harm to coworkers by second-hand smoke.

Smoke-free policies at work include banning smoking or restricting it to properly ventilated designated areas.

• Employees should be involved in phase-in of smoke-free programs.

• Some employers offer incentives and help for employees to stop smoking.

Musculoskeletal Disorders Slide 22 - 23 Musculoskeletal disorders (MSDs) also known as repetitive stress injuries result from continuous, repetitive movements.

MSD accounts for over 30 percent of worker injury and illness.

Include: • Carpal tunnel syndrome • Lumbar strain • Hernias • Tendonitis Occur in any industry, but BLS reports highest rates occur in: • Healthcare • Transportation and warehousing • Retail and wholesale • Construction Cost to employers: • Lost work days • Reduced productivity • Worker's compensation claims • Medical costs • Absenteeism • Turnover Ergonomics, or fitting the work environment to the individual, can prevent repetitive motion injuries. This includes the design of the environment and furniture to fit the individual.

Stress

Slide 24 Learning Outcome 5: Explain causes and methods of reducing job stress.

Stress is a dynamic condition in which an individual confronts an opportunity, constraint or demand related to what he or she desires, for which outcome is perceived as uncertain and important.

May be caused by either positive factors (opportunities) or negative.

Common Causes of Stress Slide 25 Factors that cause stress are called stressors.

Organizational stressors include: • Task demands relate to an employee’s job and include job design, working conditions, the physical layout, and work quotas.

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Chapter 13: Managing Health and Safety Risks •

Role demands relate to pressures placed on an employee as a function of the role played in an organization and include role conflicts, role overload and role ambiguity.

• Interpersonal demands are pressures created by other employees and include lack of social support and poor interpersonal relationships.

• Organizational structure causes include excessive rules and lack of opportunity to participate.

• Organizational leadership represents the supervisory style of the organization’s company officials which can cause unrealistic pressures, tight controls, and the threat of job loss.

Personal stressors include: • Family issues • Personal economic problems • Inherent personality characteristics: • Some individuals may have a tendency to accentuate negative aspects of life.

• Type A employees are more likely to show symptoms of stress and typically have a chronic sense of time urgency and excessive competitive drive.

• Type B employees rarely suffer from time urgency or impatience.

• Burnout is associated with: Slide 26 • Chronic emotional stress with emotional and/or physical exhaustion.

• Lowered job productivity.

• Dehumanizing of jobs.

Reducing Stress Slide 27 Eliminating stress isn't possible, but employers can reduce it by utilizing these steps: • Monitor employee workloads and deadlines.

• Have a zero -tolerance policy toward employee aggression.

• Establish and encourage use of wellness programs.

• Encourage vacations and discourage working on weekends and vacations.

• Sponsor seminars, workshops, and programs on stress management.

• Utilize employee participation, communication, and empowerment programs.

• Participation in Employee Assistance Programs.

• Establishing a culture that values fun, light-hearted play, and laughter.

• Review job descriptions.

• Support an informal social network within the workplace.

• Provide a safe workplace • Establish work-–life balance programs Class Activity: Ethical Issues in HRM - Smokers and the Obese Need Not Apply page 301 Students may be surprised that there is little protection for job discrimination for smokers or the obese in the workplace. The ethics of this type of discrimination are easy to question and just as easy to defend. Student responses to the ethical questions will Page 9

Chapter 13: Managing Health and Safety Risks lead to lively class discussion. See if any employers in your area prohibit smoking and how far they go to enforce the policy.

International Safety And Health

Slide 28 Learning Outcome 6: List health and safety concerns for employees traveling internationally.

Cultural differences exist in laws and expectations regarding safe working conditions, especially in less-developed countries, so it is imperative for American firms to learn the complex regulations and the cultural expectations of the local labor force.

International Health Issues Before sending an employee on an overseas assignment, a few basic healthrelated items need to be put in place.

• Up-to-date vaccinations against infectious diseases.

• A general first aid kit that includes over-the-counter and prescription medications and other supplies that might not be available to U.S. workers abroad.

• An emergency plan to help expatriates anticipate medical needs and locate resources while traveling.

International Safety Issues Slide 29 U.S. Department of State “hotline” provides travel alerts about such issues as terrorist activity or disease outbreaks.

Security concerns prompt recommendations regarding travel modes, attire, and “blending in.” Set routines should be avoided by both the employee and his or her family.

P a g e 10

Chapter 13: Managing Health and Safety Risks

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

Explain the purpose of OSHA and the employer record-keeping requirements. (LO 1) The Occupational Safety and Health Act (OSHA) outlines comprehensive and specific safety and health standards. Its objectives are to ensure that the workplace is free from unnecessary hazards, and to enforce sanctions and penalties for violators. The General Duty Clause requires employers that aren’t covered by specific industry regulation to protect all employees from any potentially dangerous or unhealthy workplace conditions. employers have the responsibility of providing employees with access to medical records and records of employee exposure to toxic substances in the workplace, providing employees with personal protective equipment necessary for safety including eye and ear protection and any necessary training and providing information about any hazardous materials in the workplace.

Employers in industries where a high percentage of accidents and injuries occur must maintain safety and health records. Some organizations such as universities and retail establishments are exempt from record keeping because of the low incidence of injury.

It’s important to understand that organizations exempt from record-keeping requirements must still comply with the law itself; their only exception is the reduction of time spent on maintaining safety records. The forms required for record keeping include OSHA form 300—Log of Work-Related Injuries and Illnesses OSHA form 300A—Summary of Work-Related Injuries and Illnesses and OSHA form 301, Injury and Illness Incident Report.

2. Discuss how OSHA prioritizes investigation and enforcement of standards. (LO 2) OSHA has a five-step priority enforcement process consisting of imminent danger, serious accidents, employee complaints, inspection of targeted industries, and random inspections. Imminent danger refers to a situation in which an accident is about to occur.

Serious accidents mean that when death or serious injury occurs, an organization has 8 hours to report the incident to OSHA. Employee complaints are used when a worker sees a violation of OSHA standards and may refuse to work until OSHA has investigated the complaint. Industries with high incidence rates are targeted for routine inspection: meat processing, chemical processing, roofing and sheet metal, lumber and wood products, mobile homes and campers, and stevedoring. Random inspections are conducted as time permits. OSHA inspectors can enter a workplace to make sure the company is in compliance; however, employers are not required to let OSHA inspectors enter the premises unless they have search warrants.

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Chapter 13: Managing Health and Safety Risks 3.

Outline ways employers can create safer workplaces. (LO 3) Management commitment and employee involvement.

Worksite analysis of possible hazards.

Hazard Prevention and Control.

Training for employees, supervisors and managers.

4.

Compare bullying in the workplace and employee violence. (LO 4) Workplace violence includes bullying, horseplay, fighting, harassment, threats, and actual violence against coworkers, customers, vendors, or business associates.

Bullying is mistreatment of one or more employees including verbal abuse, behavior that is threatening, humiliating, or intimidating, sabotage or other work interference, gossip, unfair criticism, isolation, intolerable work conditions. It occurs between people within the organization and involves many behaviors that fall short of physical violence.

Organizations should have clear policies and disciplinary procedures for both.

5.

List sources of stress in the workplace. (LO 5) Organizational sources of stress include: task demands, role demands, interpersonal demands, organizational structure and organizational leadership.

Personal Stressors include family issues, personal economic problems, personality characteristics (Type A and Type B).

6.

What must an organization do differently with respect to health and safety when operating in another country? (LO 6) Learn regulations and expectations, have up-to-date vaccinations, first aid kits, emergency plans, check with U.S. Department of State.

Evaluating Alternatives 7.

Review the chapter opener about "industrial athletes" on page 285. Prepare a list of reasons that employers should take responsibility (and the expense) for making sure that employees whose jobs require physical activity keep fit. Also prepare a list of reasons that responsibility ultimately falls on the employee. Which list seems to be the most convincing? What are your conclusions? (LO 1, 3, 4) Employers: Musculoskeletal disorders (MSDs) account for over 30 percent of worker injury and illness. The cost to employers includes lost work days, reduced productivity,

P a g e 12

Chapter 13: Managing Health and Safety Risks Worker's Compensation claims, medical expenses, absenteeism and turnover. Lawsuits would also qualify as an expense.

Employees: Job descriptions specify physical abilities such as the ability to climb in and out of trucks and airplanes dozens of times a day or other physical actions such as bending, lifting and standing. Employees should be personally responsible for maintaining fitness for those activities.

8.

After a local workplace was the site of a brutal employee attack on a supervisor, the V.P of HR told local media, "This was completely unexpected. Nobody saw this coming. There were no obvious signs of trouble before the employee snapped and attacked the supervisor. This is a safe place to work and we don't expect any further incidents." What steps should be taken in this workplace to make sure he is correct in his assertion that there will be no further incidents? (LO 3, 4, 5) The employer should determine if any conditions exist that put employees at greater risk of violence such as exchanging money with the public, making deliveries, working alone, working late at night or with extensive public contact.

A plan of action should be established that includes a plan of how to deal with violence, review policies, examine how employees are treated. Supervisors should be trained in how to identify and deal with troubled employees. Security should be examined and employees should be trained in how to handle violence.

The workplace should also be examined for evidence of stress, burnout and bullying which can lead to violence.

9.

A colleague makes the suggestion that the company should invest in a new safety training program that consists of online videos, tutorials, and quizzes. Another colleague disagrees, stating "We developed 'Safety is No Accident' training program specifically for our company's needs and it's been very effective for the last ten years." She went on to explain "No packaged software program knows our employees and issues like we do. It's a waste of money." Make a list of the strengths and weaknesses of each approach. (LO 2, 3, 4) New safety training: Much can change in ten years. The workplace culture, working conditions, stressors and technology to name a few. Training technology and safety procedures have also changed. A new training program could be developed with employee input, creating greater commitment and relevance. The new program has several different training methods. As explained in chapter 8, some methods are better than others for training different skills or attitudes.

Keep current program: If it's been very effective, that's important.

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Chapter 13: Managing Health and Safety Risks

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Grading can be simplified by using the grading rubric above.

Activity Summaries 10.

OSHA violations of serious, willful and repeated categories are researched and explained.

The differences are presented in class. (LO 1, 2, 3)

11.

Students search for videos on any of the top ten OSHA violations. OSHA standards addressed in the video are addressed in the video. (LO 1, 2, 3)

12.

Students search for videos on stress and present results to class with presentation slides.

(LO 5)

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on safety and health involve helping people whose safety and health is at risk. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 13 - A: How Bad Is It? After ignoring several signs that an employee is under stress, a supervisor is faced with handling an outburst from the troubled employee that may qualify for one of several serious disciplinary actions. He heads to HR for advice on how to handle the behavior of a machinist with serious personal problems whose work has been deteriorating, who has shown several signs of stress, and who threatens a co-worker.

Questions: 1.

Is this a discipline problem, bullying, or workplace violence policy? Explain your reasoning.

Discipline: Joaquin probably was under the influence at work, damaged equipment intentionally and threatened an co-worker.

Bullying: Joaquin's abuse of Elizabeth seems to be a one-time occurrence. If that's the case, it seems to fall short of the definition of bullying. If the behavior had gone on for a more extended time frame, it may qualify as bullying.

Workplace Violence: It depends on what the workplace violence policy contains. If shouting, throwing or poking are included, it would seem to qualify.

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Chapter 13: Managing Health and Safety Risks 2.

What should be included in Linco's workplace violence policy?

It should explain: • Behaviors that are prohibited such as bullying, horseplay, fighting, harassment, threats, and actual violence against co-workers, customers, vendors, or business associates.

• Procedures for reporting and investigating prohibited behaviors.

• Possible disciplinary actions • If a zero tolerance police is used and what that means.

3.

Explain several different possible actions that Jonas and the HR department can take regarding Joaquin. Explain the action you believe is the best choice.

Nothing: Joaquin is clearly under stress. He could be referred to an EAP for counseling.

Disciplinary actions range from warning to dismissal depending on what the students assume the workplace violence policy includes and their interpretation of the seriousness of the threat and poking of Elizabeth. They need to explain their assumptions to justify their choice of discipline.

4.

Research: Find examples of workplace violence policies and list the common elements of the policies you find.

Students will find a variety of examples. Encourage them to compare the size and location of the businesses as well as the industries they are in. Comparison with the suggested policies found on the SHRM website would be interesting.

Case Application 13 - B: What Does It Take to Get Some Respect?

OSHA inspectors see their role as contributing to employee safety, not just as regulations and bureaucratic red tape. Death and injury are the two most serious consequences to companies and employees who may feel time and money pressure to cut corners, thus jeopardizing safety.

OSHA is a check on this impulse.

Questions: 1.

What roles do OSHA inspections play in preserving safe and healthy work environments? Discuss. (LO 1, 2, 3) OSHA inspections serve as a check on employer/employee impulses to jeopardize safety in order to satisfy time or money pressures.

2.

“OSHA shouldn’t have to inspect every worksite. Employers should act as their own safety inspectors and take action that is warranted.” Build an argument supporting this statement, and one opposing this statement. (LO 2, 3) Student answers will vary. Focus on critical thinking. Some suggestions:

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Chapter 13: Managing Health and Safety Risks Supporting: Employers must build safety in their daily operations to be effective.

Inspectors cannot be on-site as often or have the commitment that the company and its employees do.

Opposing: Employers have values that may compete with safety. They cannot always be trusted to do what is right.

3.

Had any of the five events listed above led to serious injury or death, do you believe the employer was liable? Why or why not? If you believe the employer is liable, do you believe any of these could be construed as willful and severe? Defend your position. (LO 2, 3) Student answers will vary. Arguments for and against employer liability may cover whether or not employees are at fault, or even government rules and regulations. Focus on the strength of the students’ defense, especially in whether or not a case can be made for willful liability.

4.

Research: Go to the OSHA web page at www.osha.gov. Visit the Safety and Health Topics page and explain the current issues listed there. (LO 3, 4) The topics are always interesting and make for good class discussion.

Online Case Application 13 - C: TEAM FUN Questions: 1. Do you agree with Tony’s statement about workplace violence? Should TEAM FUN! take further action to prevent workplace violence? Identify the preventive measures already in place. (LO 4, 5) 2. Is Tony too complacent about stress and burnout? Outline for Kenny and Norton any symptoms of stress and burnout that merit notice. (LO 5) 3. What benefits would wellness programs and an employee assistance plan provide TEAM FUN!? (LO 4, 5)

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Chapter 14: Understanding Labor Relations and Collective Bargaining

Chapter 14: Understanding Labor Relations and Collective Bargaining Learning Outcomes After reading this chapter, students should be able to: 1.

2.

3.

4.

5.

6.

7.

8.

Explain the reasons that workers join unions.

Discuss the effects of the Wagner and the Taft–Hartley Acts on labor–management relations.

Outline additional important laws and executive orders affecting labor–management relations.

Outline the steps in the union-organizing process.

Describe the collective-bargaining process.

Explain important factors in contract administration.

List important current issues facing unions.

Explain how the role of unions differs in a global environment.

Chapter Overview Support for unions and employee rights to collective bargaining has traditionally been divided along political party lines. The chapter opener outlines some political criticism and support and explores American's opinions of unions and legislation that restricts their activities. Student questions examine their own experiences and opinions.

The chapter discusses why workers join unions, summarizes the major laws affecting labormanagement relations, and describes the organizing process. A section on collective bargaining outlines how contracts are negotiated and what happens during impasses. Current critical issues and aspects of international labor relations are also included.

Additional features of this chapter: Exhibits 14 – 1: Union Membership by Industry Classification (Selected) 14 – 2: States with Right to Work Laws 14 – 3: Union Organizing Process 14 – 4: The Collective-Bargaining Process 14 – 5: A Sample Grievance Procedure 14 – 6: Trends in Union Membership 14 – 7: Unionization Around the World Boxed Features These features are located within the text and address current issues in HRM within the context of the relevant learning objectives. They are short and thought provoking with thought questions at the end providing a great opportunity to provide a break in class lecture to check student

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Chapter 14: Understanding Labor Relations and Collective Bargaining understanding. Questions may be posed to students individually, in small groups, as quick cooperative learning assignments or as large group discussions.

•

Diversity Topics – Unions and EEO on page 311 describes the various EEO labor laws that affect unions in the areas of collective bargaining, membership, member disabilities, and member retirement.

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Ethical Issues in HRM - A Different Type of Wildcat Strike page 314 explains the efforts of the Northwestern University Wildcat Varsity football team to earn the right to join a union.

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Tips For Success - What Managers Need to Know to Keep Out of Trouble page 317 gives suggestions for ways that managers can stay out of legal trouble when they suspect employees are beginning the unionizing process.

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Ethical Issues in HRM - Pressure Tactics page 320 explains how both unions and employers manipulate circumstances to gain an advantage in the collective bargaining process.

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Contemporary Connection – Union Split Creates “Change To Win” on page 324 explores how unions have repositioned themselves to gain membership, particularly in the service sector.

Making Concepts Relevant in Your Classroom In addition to the activities provided in the lecture notes, these suggested activities help students apply chapter 14 concepts: •

Ask students whether they anticipate joining (or have already joined) a union. Discuss the pros, cons and class perceptions of what it is like to work in a unionized environment.

•

Invite an officer of a local or campus union to speak to your class. Or, invite a faculty member who specializes in labor relations, labor law or labor economics to speak about current issues and trends.

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Chapter 14: Understanding Labor Relations and Collective Bargaining

Chapter Outline And Lecture Suggestions Introduction

Slide 3

The right to form and join unions was hard-fought and radically changed the way we work in America.

The process of forming unions and collective-bargaining has evolved through laws and court cases ever since.

Why Employees Join Unions

Slide 4 - 5

Learning Outcome 1: Explain the reasons that workers join unions.

A union is an organization of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining.

Only about 12% of the private sector work force in the U.S. is unionized.

Higher Wages and Benefits Slide 6 - 7 The power and strength of numbers sometimes help unions obtain higher wages and benefit packages for their members than employees can negotiate individually.

Greater Job Security Collective bargaining contracts limit management’s ability to arbitrarily hire, promote, or fire.

Influence Over Work Rules Unions represent workers and define channels for complaints and concerns (grievance and arbitration processes).

Dissatisfaction with Management A common factor as to why employees join a union is the behavior of management, especially the first line supervisor.

Compulsory Membership Slide 8 - 11 • Union security arrangements ensure union membership and income to the union.

• Union shops require that all employees hired into positions covered under the collective-bargaining agreement must join the union.

• Twenty-two states have right to work laws which prohibits agreements that require employees to join a union as a condition of employment.

• Agency shops require nonunion employees to pay an amount equal to union fees and dues.

• Supreme Court rulings and state laws require that these dues not be used for political lobbying.

• Open shops allow union membership to be totally voluntary.

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Chapter 14: Understanding Labor Relations and Collective Bargaining • •

Workers who join have a maintenance of membership clause that require union membership for the duration of the contract.

Dues check off provisions require employers to withhold union dues from members’ paychecks and to send these monies to the union.

Class Activity: Exhibit 14 - 1: Union Membership by Industry Classification on page 307 clearly illustrates the difference in union strength in a number of industries. If students know a union member, ask if any of these categories apply.

Class Activity: Exhibit 14 - 2: States with Right to Work Laws on page 309 differentiates between states with laws that allow workers a choice whether to join a union or not. They're pretty evenly divided, but Right-to-Work laws are not equally strong in every state. Have students guess which side the state in which you reside falls on. Check the map and discuss the implications.

Laws That Created the Legal Framework for Unions

Slide 12 Learning Outcome 2: Discuss the effects of the Wagner and the Taft–Hartley Acts on labor–management relations.

Two major laws outline the rights and responsibilities for employee unions and employers.

The Wagner Act Also known as the National Labor Relations Act is a basic bill of rights for unions.

Guarantees right to organize, bargain collectively, strike, and pursue activities supporting their objectives.

National Labor Relations Board (NLRB) determines bargaining units, conducts elections, and prevents or corrects unfair labor practices.

The Board has only remedial and no punitive powers.

Unfair labor practices include: • Interfering with an employee’s rights to join a union and to bargain collectively.

• Interfering with the formation or administration of any labor organization.

• Discharging or discriminating against any employee who filed or gave testimony under the act.

• Refusing to bargain collectively with representatives chosen by the employees.

The Taft-Hartley Act Slide 13 Also known as the Labor-Management Relations Act. Specified unfair union labor practices including: • Coercing employees to join the union • Discriminating against an employee refused union membership.

• Refusing to bargain collectively.

• Engaging in illegal strikes and boycotts.

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Chapter 14: Understanding Labor Relations and Collective Bargaining • Charging excessive or discriminatory fees under shop contracts.

• Obtaining compensation for services not performed.

Prohibited closed shops, secondary boycotts, and gave the president power to issue a cooling-off period.

Created Federal Mediation and Conciliation Service (FMCS) to help labor and management settle disputes.

Diversity Topics - Unions and EEO page 311 explains how equal employment laws apply to unions.

Other Laws Affecting Labor-Management Relations

Slide 15 Learning Outcome 3: Outline additional important laws and executive orders affecting labor–management relations.

The Wagner and Taft-Hartley Acts are clearly the most important laws establishing the rights of unions and employers, but several other laws and Executive Orders are important in the evolution of labor relations.

The Railway Labor Act of 1926.

Gave workers in the transportation industry the right to bargain collectively and allowed congressional and presidential intercession in the event of an impasse.

FedEx is subject to this act because it was established as an airline, making strikes much less likely than competitor UPS which was established as a trucking company and is subject to the National Labor Relations Act. Landrum-Griffin Act of 1959 Slide 16 Also known as the Labor and Management Reporting and Disclosure Act. Made union officials accountable for funds, elections and other business and representational matters.

Required annual filing of information by unions and by individuals employed by unions.

Required that all members be allowed to vote by secret ballot.

Executive Orders 10988 and 11491 Slide 17 Permitted federal employees to join unions and established the Federal Labor Relations Council (FLRC).

Racketeer Influenced and Corrupt Organizations Act (RICO) of 1970: Prohibits payment and loans in the form of bribery, kickbacks or extortion.

Used to oust labor officials with organized crime ties.

Civil Service Reform Act of 1978 Slide 18 Established the Federal Labor Relations Authority (FLRA) to carry out the major functions originally performed by the FLRC. Page 5

Chapter 14: Understanding Labor Relations and Collective Bargaining Contains many provisions similar to the Wagner Act with two exceptions: • Wages and benefits are set by Congress and are not negotiable.

• Prohibits negotiations over union security arrangements.

Class Activity: Ethical Issues in HRM - A Different Type of Wildcat Strike page 314 Do college athletes qualify as employees? If so, do they have the right to join a union? If so, what might they put into a collective bargaining agreement? Ethical questions examine the reasoning of the players and some sticky issues that could result if they are successful. Students may have opinions on the topic. Ask if other groups would qualify such as adjunct or part-time faculty or graduate students.

Unionizing Employees

Slide 19

Learning Outcome 4: Outline the steps in the union-organizing process.

The process of forming a union is highly regulated and widely misunderstood.

Exhibit 14 - 3: Union-Organizing Process page 314 illustrates the steps that employees must go through to certify a union.

Preparation Slide 20 Unions often contact employees of employers who may be a target.

Employees who are unhappy may initiate contact with union.

Either way, employers are rarely surprised by the Authorization Card Campaign when it begins.

Signs to look for: • Increase in complaints or questions about policies.

• Employee gatherings with an unusual mix of people.

• Former employees or strangers hanging out at entrances or parking lots to talk with employees.

• Appearance of union literature in the workplace or parking lot.

• Appearance of union advertisements on local media.

Authorization Card Campaign Slide 21 Employees contact a union about representation.

Unions provide educational and promotional information in a variety of ways including a strong social media presence.

Employees wishing to have union representation sign authorization cards.

• If 30 percent of employees who are potential members sign a card, an election must be held.

• Unions prefer 50 percent or more of workers sign cards to assure a successful election.

Class Activity: Show students some of the social media presence of unions such as the AFL-CIO, Teamsters, AFSCME on YouTube, Facebook, Twitter and Instagram among others.

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Chapter 14: Understanding Labor Relations and Collective Bargaining Petition the NLRB If enough authorization cards are submitted, the union approaches the employer for recognition. The employer may: • Voluntarily recognize union, a rare occurrence.

• Refuse recognition, in which case the union petitions the NLRB The NLRB • Verifies authorization cards.

• Determines make up of bargaining unit.

• Employer must submit a list of employees.

• Supervisors are excluded, so management often tries to identify as many employees as supervisors as possible.

NLRB Election Slide 22 - 23 Representation Certification (RC) election is held by secret ballot.

Unfair Labor Practices Employers are prevented from taking many different actions that discourage employees from exercising their right. The acronym TIPS helps employers remember what they may not do: • Threaten - layoffs or closures.

• Interrogate - employees to determine who union supporters are.

• Promise - something in exchange for defeating the union.

• Spy - on workers.

Employers may truthfully explain why they oppose the union.

Certification Slide 24 NLRB certifies union as bargaining unit of a majority of employees vote for certification.

Members may conduct a representative decertification (RD) to remove union as a representative, but it's rare.

Management may also request a decertification election (RM), but that's even more rare.

Most contracts bar any decertification during the term of a contract.

Tips for Success: What Managers Need to Know to Stay Out of Trouble on page 317 Students often misunderstand what employers can and cannot do or say. This short feature presents several very practical tips for employers to avoid legal trouble. Questions explore student feelings about how they would feel if employees sought union representation.

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Chapter 14: Understanding Labor Relations and Collective Bargaining

Collective Bargaining

Slide 25 - 26

Learning Outcome 5: Describe the collective-bargaining process.

Collective bargaining is the negotiation, administration, and interpretation of a written agreement between two parties, at least one of which represents a group that is acting collectively, and covers a specific period of time.

Negotiating the Agreement Slide 27 Contracts must be acceptable to management, union representatives and union membership.

Four issues appear consistently in all labor contracts. (The first three are mandated by the Wagner Act) • Wages • Hours • Terms and conditions of employment • Grievance procedure Negotiators for employers may be: Slide 28 • Law firms • Consultants • HRM Department Industrial Relations Negotiators for unions may be: • Officers of local union • Representative of international/national union Preparing to Negotiate Slide 29 Preparation may begin as soon as current contract is agreed upon, but typically starts 6 months to a year before contract expires.

Fact gathering includes: Internal information: • Grievance and accident records • Employee performance reports • Overtime expenses • Data on transfers, turnover and absenteeism • Survey of union members for their preferences External information: • Economic information • Recent agreements of other unions or employers.

• Labor and unemployment information.

Negotiating at the Bargaining Table Each side usually begins by publicly demanding more than they are willing to accept.

More realistic assessments and compromises take place behind closed doors.

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Chapter 14: Understanding Labor Relations and Collective Bargaining After oral agreement, a written contract is submitted to the union for ratification.

Exhibit 14 - 4 The Collective Bargaining Process Page 318 illustrates the steps taken to reach agreement.

Failure to Reach Agreement Slide 30 Strikes versus Lockouts • Economic strikes occur when labor and management cannot reach agreement before the current contract expires and union leadership instructs its members not to work.

• Wildcat strikes are unauthorized and illegal strikes that occur because of worker dissatisfaction during an existing contract.

• Lockouts occur when organizations deny unionized workers access to their jobs during an impasse.

Impasse-Resolution Techniques Slide 31 -32 Used when labor and management cannot reach agreement.

• Conciliation and mediation involve a third party (Federal Mediation and Conciliation Service) to either keep negotiations going or make non-binding settlement recommendations.

• Fact-finding involves a neutral third-party who conducts a hearing and recommends a non-binding settlement.

• Interest arbitration involves a panel of one neutral, one management and one union representative who hear testimony and render a decision to settle a contract negotiation dispute. o It is used primarily in public-sector bargaining. o Decision is binding only if there is unanimous agreement.

Class Activity: Ethical Issues in HRM - Pressure Tactics page 320 Both employers and unions try to gain an advantage in the negotiation process. Whether it involves influencing public opinion, causing financial problems or bringing in replacement workers, it often works. But is it ethical? Ethical questions examine the ethics of legally protecting or restricting replacement workers.

Contract Administration

Slide 33 Learning Outcome 6: Explain important factors in contract administration.

Contract administration involves four stages: Communicating Contract Provisions • Provide information to all union members and managers.

• Clearly explain contract language to all parties.

Slide 34

Implementing and Interpreting the Contract Consistent application of provisions prevents uncertainty and suspicion.

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Chapter 14: Understanding Labor Relations and Collective Bargaining Management rights are defined and explained.

• Hire • Promote • Transfer • Discipline • Discharge • Determine work methods • Assign work • Define, classify and eliminate jobs • Reduce staff, relocate or close.

Grievance Process Slide 35 - 36 Formal process for resolving disagreements.

Grievance Procedures are outlined in the contract.

Typical grievance procedure involves: 1. Employee attempts to resolve the grievance with the union steward and the supervisor.

2. Individuals from the organization’s industrial relations department and the chief union steward usually get involved.

3. Complaint passes to the facility’s manager, who typically discusses it with the union grievance committee.

4. Organization senior management and a representative from the national union get involved.

5. Arbitration—called grievance (rights) arbitration.

Exhibit 14 - 5 A Sample Grievance Procedure page 322 illustrates the grievance process in flowchart format.

Monitoring activities during the contract period to keep track of how effective the current contract is and any need for changes.

Critical Issues for Unions Today

Slide 37 - 38

Learning Outcome 7: List important current issues facing unions.

Union Membership: Where Have the Members Gone?

Union membership in the U.S. reached a high of 36% in the early 1940s, but there has been a steady decline since then.

Reasons include: Growing middle-class; diminished financial resources of unions; anti-union pressures resulting from increased competitiveness; layoffs of large numbers of union workers; hiring of replacement workers for strikers.

Unions are changing some of their organizing tactics and may currently be gaining public support. They also are placing more emphasis on the service sector.

Labor-Management Cooperation

Slide 39 P a g e 10

Chapter 14: Understanding Labor Relations and Collective Bargaining Some unions recognize that they can gain more by cooperating with management rather than fighting.

The Electromation Inc. case illustrates the potential legal difficulties of cooperative efforts: The NLRB ruled that employee committees were an unfair labor practice.

Employee involvement programs are legal if management does not dominate the program; employees choose members, issues to deal with, and members can meet apart from management.

Public-Sector Unionization Slide 40 Membership of government workers in unions has increased to nearly 36% Public sector labor relations differ from private sector labor relations, in that, there may be more restrictions on what is negotiable and a legislative body must approve any negotiated contract.

Sunshine laws in some states mandate that labor-management negotiations be open to the public.

Contemporary Connection: Union Split Creates "Change to Win" page 324 Focuses on union emphasis on gaining membership from service workers. Questions ask students about the possibility of a resurgence in union membership.

Exhibit 14-6 Trends in Union Membership page 323 illustrates the decline of union membership.

International Labor Relations

Slide 41 Learning Outcome 8: Explain how the role of unions differs in a global environment.

Labor relations practices, and the percent of workers unionized, differ in every country.

Unions outside of the United States have long histories and were primarily based on “class struggle” which resulted in labor as a political party.

The governments of each country have their own view of its role in labor relations, so the multinational corporate industrial relations office must be familiar with the separate laws of each.

Differing Perspectives Toward Labor Relations Countries differ in their labor relations histories, government involvement, and public acceptance of labor unions.

The labor relations function for international companies is more likely to be centralized with the parent company when domestic sales are larger than those overseas.

The European Union Slide 42 - 43 Brings together a dozen or more labor relations systems which are being integrated as part of the effort to unify Europe and facilitate trade.

Countries wishing to do business in Europe must keep up with changing labor legislation, such as that being agreed upon concerning workers’ rights.

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Chapter 14: Understanding Labor Relations and Collective Bargaining

Exhibit 14 - 7 Unionization Around the World page 325 contrasts union membership in countries worldwide.

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Chapter 14: Understanding Labor Relations and Collective Bargaining

HRM Workshop The HRM Workshop includes several different types of activities requiring students to apply chapter concepts aligned with the learning objectives. Suggested answers are provided.

Reviewing Important Concepts 1.

What is a union and why do they exist? (LO 1, 2) A union is an organization of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining. Individuals who join unions usually do so for the following reasons: 1. Higher wages and benefits 2. Greater job security 3. Influence over work rules 4. Compulsory membership 5. Upsets with management

2.

Explain the three pieces of legislation that have been most important in defining the rights of management and unions. (LO 2, 3) The three laws are the Wagner (National Labor Relations) Act of 1935; the Taft-Hartley (Labor-Management Relations) Act of 1947; and the Landrum-Griffin (Labor and Management Reporting and Disclosure) Act of 1959. These three laws represent the most direct legislation affecting collective bargaining. The Wagner Act gave unions the freedom to exist and identified employer unfair labor practices. Taft-Hartley balanced the power between unions and management by identifying union unfair labor practices.

Landrum-Griffin required unions to disclose their financial records in an effort to thwart organized crime efforts to control unions.

3.

What is the process for establishing a union as the legal collective bargaining representative for employees? (LO 4) The organizing effort may be started by an employee request or union organizing drive.

At least 30 percent of employees who would be represented must sign authorization cards before an election is held; a majority must vote for the union in the representation certification election.

4.

Describe the collective-bargaining process and how it differs for private-sector and public-sector employees. (LO 5, 7) Collective bargaining typically refers to the negotiation, administration, and interpretation of a written agreement between two parties that covers a specific period of time.

The steps include preparing to negotiate, negotiating at the bargaining table, union ratification and contract administration.

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Chapter 14: Understanding Labor Relations and Collective Bargaining It may also include an impasse if the sides don't agree and that's where private-sector and public-sector differ. Private-sector employers have the option of a lock-out and unions have the option of a strike. Most public-sector unions cannot strike, so they enter into arbitration.

5.

Summarize the ways unions differ globally. (LO 8) Differences include interpretation of collective bargaining, the amount of government involvement and the role it plays, national attitude toward unions.

Evaluating Alternatives 6.

In response to state budget problems, a bill has been introduced in your state legislature that eliminates a number of public-sector union activities, including the dues check-off and maintenance-of-membership clauses with the intent of reducing union membership and influence. Your coworker Jack explains that he thinks it's the end of unions in your state. "These actions will totally cripple public employee unions. It's going to be really tough to keep members." Audrey, another coworker disagrees. According to Audrey, "The dues check-off and maintenance-ofmembership clauses are just a matter of convenience. They don't affect the reasons employees join the union in the first place." Evaluate their positions. Are the actions in the bill legal? How important are dues check-off and maintenance-ofmembership clauses to union membership? Who do you think is most correct and why? (LO 1, 2, 7) Jack's position: These actions strengthen the right-to-work position in your state, which reduces union influence and membership. It's hard for unions to collect dues without the payroll deduction benefits of "dues check-off". Losing "maintenance of membership" further strengthens right-to-work in that members can quit the union at any time, without waiting until the end of the contract. Both of these actions tend to reduce union membership.

Audrey's position: Although those actions do make it more difficult for unions to keep members and collect dues, states with strong right-to-work laws do still have unions and members.

7.

“Unions have become so weak, and their public image is so bad, that you don't need to worry about them showing up and demanding to represent your employees. Let them go ahead and try to distribute authorization cards. If you treat your employees well, pay them a fair wage and make sure they have a safe work environment, there is no way they'll want to pay a union to represent them.” How much truth is there in this statement? Do you agree or disagree? Explain your position. (LO 1, 2, 4) Many employers have been successful in resisting union efforts by having fair pay and safe work environment, but other factors lead to employee interest in unions such as

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Chapter 14: Understanding Labor Relations and Collective Bargaining concerns about job security, desire for influence over work rules and frustration with management.

Research and Communication Skills These activities require students to research a topic and report the findings to the instructor or the class. They can be assigned to either individuals or groups and are designed to develop critical thinking, research and presentation skills necessary for HR. Grading can be simplified by using the grading rubric above.

Activity Summaries 8.

Students "fact check" an online video that supports or discourages union membership.

Findings are presented with a visual aid. (LO 1, 2, 4, 5, 6, 7)

9.

What is the status of "right to work" laws in your state and nationally? Students find out and present them to class with presentation slides. (LO 1, 7)

10.

Students form a union and prepare a proposal for you, the professor. (LO 4, 5)

Making a Difference: Service Learning Projects Overview: Service Learning Projects provide students with opportunities to develop and demonstrate HR skills and build a professional network that will assist in getting a job in HR. The activities that relate to this chapter on Labor Relations encourages students to contact unions or union members (including local schools) and volunteer assistance of some kind. A sample assignment with requirements and grading materials is available at the front of the Instructor's Manual and as a download from the text website.

Case Application 14 - A: Manager's Concerns Spiral as Video Goes Viral Exactitude Manufacturing implemented a new compensation system a year ago and it hasn’t been very well received by their employees. The employees are understandably frustrated and have taken to social media to express their frustration in creative ways. When an employee music video goes viral and is featured on a local news show, managers worry a union may be in the works and have several questionable suggestions for stopping it.

Questions: 1.

Evaluate the different concerns of Anthony, Bert, Carla, and Quang from legal and ethical perspectives. Which actions are problematic and why? (LO 1, 2, 3, 4) Anthony’s concerns of going back to the old pay system would probably result in workers who are concerned about seniority being rewarded, very happy. However, the employees who are benefiting from the new system, would not be happy with the old P a g e 15

Chapter 14: Understanding Labor Relations and Collective Bargaining system and that could affect morale. In addition, the new pay system is in line with the company’s strategic focus and the former pay system would not be.

Bert’s concern about the making of the video are just allegations and without actual proof could be seen as slanderous and harassment of the employees by management. If the video was actually made during work time, the targeted employees (the ones who made the video) could make the argument that other employees have used the work time to send personal emails and/or make personal phone calls and that this (making the video) was no different. Finally, there could be a backlash if Exactitude tries to punish employees with the same or possibly different employees making another video that responds to any possible backlash and again posting it on a social media site.

There are two very serious problems with Carla’s recommendations. First, it is illegal for companies or their representatives to use intimidation against workers who want to unionize (Wagner Act). In addition, laying off workers because of their age is a violation of the Age Discrimination Act. Finally, Quang’s point that Exactitude will close the plant and move the operations to other plants could be seen as a threat or intimidation against employees who want to start a union, but even he admits that they are just rumors.

2.

What are the steps employees need to take if they wish to certify a union to represent them? (LO 4) The union must secure signed authorization cards from at least 30% of the employees it wishes to represent.

Petition the National Labor Review Board (NLRB) for an election.

Vote is taken of the eligible employees at the organization.

If the majority of the employees voted for the union, then the union is certified.

3.

Suggest ways that Exactitude could establish a situation similar to the one Tyler described if a union is certified. (LO 1) Exactitude should work with the union representatives to establish a working relationship that would be beneficial to both parties. As the “employees’ representative” the union would be concerned with the new pay system, possibly other working conditions and other benefits. Exactitude would be concerned with pursuing their strategy, remaining profitable and projecting a certain public image. The union would be able to convince workers to remove the negative video and refrain from bashing Exactitude in a public forum, provided the HR/managers and the unions are able to reach a reasonable compromise on the pay system and other policies.

4.

Research: Find examples of ways unions use social media to recruit membership.

What social media sites are used and how effective are the union messages?

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Chapter 14: Understanding Labor Relations and Collective Bargaining Pretty much any union has a thorough array of social media accounts. AFL-CIO, Teamsters, AFSCME, and Change to Win all have good examples.

Case Application 14-B: Why the Easter Bunny Got Stuck in San Francisco A lengthy labor dispute between West Coast dockworkers and the shipping companies created problems when a work slow-down created a backlog of merchandise and produce waiting to be shipped and dozens of ships floating off the west coast waiting to be unloaded. The President could not get involved because there was no strike or lockout. Industry pressure finally led to an agreement, but not before toys bound for children's Easter baskets and materials headed for manufacturers all over the U.S. missed important deadlines and produce meant for export rotted on the docks.

1.

How might labor disputes change if the Taft–Hartley Act is changed to allow the President to intervene in labor disputes that have not resulted in lockouts or strikes?

What criteria should determine whether the President or other governing group can take over labor negotiations? (LO 2, 3, 7) Any action to weaken the rights of unions would certainly undermine their power and reduce their influence.

Student opinions on the criteria that would trigger Presidential intervention will probably include significant business impact or threats to national security.

2.

Examine the "unfair labor practices" explained in the chapter. Discuss whether slowdowns should qualify as unfair labor practices like wildcat strikes. (LO 2, 6, 7) Slow-downs seem qualify as refusing to bargain collectively with representatives chosen by the employees.

3.

Research: Look for other examples of labor disputes that affected the local, national, or global economy. Explain the situations, effects, and how they were resolved. (LO 1, 2, 3, 6, 7, 8) Although labor disputes are less frequent in the U.S., they still exist. Students will also find that unions in Europe strike more often and do not have the limitations that U.S. unions do. Chinese workers are becoming more bold in their union protests.

Online Case Application 14 - A: TEAM FUN Questions: 1.

How accurate is Kenny’s description of the union organizing process? Explain where he is right and wrong. (LO 2, 4) P a g e 17

Chapter 14: Understanding Labor Relations and Collective Bargaining 2.

3.

4.

Explain to Norton the union activities he remembers from their Texas job. (LO 6) Examine the reasons employees join unions and evaluate the likelihood that TEAM FUN employees will begin the organizing process. (LO 1) Identify any unfair labor practices, past or future, mentioned in the case. (LO 2, 3, 4)

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