Chapter 17 Human Resource Policies and Practices Page
Chapter 17
Human Resource Policies
and Practices
LEARNING OBJECTIVES
After studying this chapter, students should be able to:
17-1. Describe the value of recruitment methods.
17-2. Specify initial selection methods.
17-3. Identify the most useful substantive selection methods.
17-4. Compare the main types of training.
17-5. List the methods of performance evaluation.
17-6. Describe the leadership role of human resources (HR) in organizations.
INSTRUCTOR’S RESOURCES
Instructors may wish to use the following resources when presenting this chapter.
Text Exercises
Career OBjectives: How Do I Fire Someone?
An Ethical Choice: HIV/AIDS and the Multinational Organization
Myth or Science?: “The 24-Hour Workplace Is Harmful”
MyLab Management
oPersonal Inventory Assessment: Positive Practices Survey
oWatch It!: Patagonia: Human Resource Management
Point/Counterpoint: Employers Should Check Applicant Criminal Backgrounds
Questions for Review
Experiential Exercise: Designing a Virtual Assessment Center Exercise
Ethical Dilemma: Can I Recruit from My Social Network?
Text Cases
Case Incident 1: Getting A Foot In The Door
Case Incident 2: You May Be Supporting Slavery
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Instructor’s Choice
This section presents an exercise that is NOT found in the student’s textbook. Instructor’s
Choice reinforces the text’s emphasis through various activities. Some Instructor’s
Choice activities are centered on debates, group exercises, Internet research, and student
experiences. Some can be used in class in their entirety, while others require some
additional work on the student’s part. The course instructor may choose to use these at
any time throughout the class—some may be more effective as icebreakers, while some
may be used to pull together various concepts covered in the chapter.
Web Exercises
and ideas for researching OB topics on the Internet. The exercises “Exploring OB Topics
on the Web” are set up so that you can simply photocopy the pages, distribute them to
your class, and make assignments accordingly. You may want to assign the exercises as
an out-of-class activity or as lab activities with your class.
Summary and Implications for Managers
An organization’s human resource (HR) policies and practices create important forces
that greatly influence organizational behavior (OB) and important work outcomes. HR
departments have become increasingly integral in shaping the composition of the
organization’s workforce. First, as more organizations have turned to internal recruitment
methods, HR departments have taken the lead in creating online portals and other
easy-access methods for candidates to learn about the organization and be attracted to
apply. Second, HR departments are involved in all phases of selection: initial selection,
substantive selection, and contingent selection. The greatest increase in the involvement
of HR in selection may be in the initial selection phase, wherein HR professionals
develop, monitor, and screen the great numbers of applications that are submitted.
However, HR involvement has increased in all areas of selection, and HR professionals
are responsible for understanding the applicable laws and guidelines to serve as an
informed, up-to-date resource for managers. In effective organizations, HR remains
present throughout an employee’s time with the organization. HR departments create and
administer training and development programs, and they set policies and practices with
top management that govern the performance evaluation system. HR serves in a
leadership capacity with responsibilities including the need to regularly communicate
practices to employees, design and administer benefit programs, manage work-life
conflicts, and conduct mediations, terminations, and layoffs. HR should bring an
awareness of ethical issues to all stages of an individual’s experience with the
organization. Knowledgeable HR professionals are therefore a great resource to all levels
of the organization, from top management to managers to employees. Specific
implications for managers are below:
An organization’s selection practices can identify competent candidates and
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accurately match them to the job and the organization. Consider assessment
methods that are most likely to evaluate the skills directly needed for jobs you
are looking to fill.
Use training programs for your employees to achieve direct improvement in
the skills necessary to successfully complete the job. Employees who are
motivated will use those skills for greater productivity.
Training and development programs offer ways to achieve new skill levels
and thus add value to your organization. Successful training and development
programs include an ethical component.
Use performance evaluations to assess an individual’s performance accurately
and as a basis for allocating rewards. Make sure the performance evaluations
are as fair as possible. As demonstrated in Chapter 7 in our discussion of
equity theory, evaluations perceived as unfair can result in reduced effort,
increases in absenteeism, or a search for another job.
Give your employees the opportunity to participate in their evaluations so they
understand the performance criteria and engage with the improvement
process.
This chapter begins with a discussion of benefits at Facebook and other Silicon Valley companies. The
message of this chapter is that human resource (HR) policies and practices—such as employee recruitment,
selection, training, and performance management—influence an organization’s effectiveness. Studies show
that managers—even HR managers—often don’t know which HR practices work and which don’t, so they
constantly experiment with techniques ranging from free tuition to stress-based interviews. Let’s discuss
both new and tried-and-true methods, and their effect on OB, beginning with the recruitment function.
BRIEF CHAPTER OUTLINE
I. Recruitment Practices
A. The first stage in any HR program is recruiting, closely followed by selection.
1. A selection system can only be as good as the individuals who apply in the
first place.
system attracts candidates who are highly knowledgeable about the job and the
organization.
2. Consistent with these findings, some of the most effective recruiting
roles they may be occupying.
3. Companies are increasingly turning away from outside recruiting agencies
consideration and respect.
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1. In addition, it is very important that internal recruiters use fair and just
to job offer acceptance.
2. They also use a variety of online tools, including job boards and social media,
to bring in applications.
II. Selection Practices
A. Introduction
the requirements of the job.
2. When companies hire the right people, they increase their human capital
resources.
3. Human capital resources are the capacities available to an organization
through its employees.
a. The resources include specialized skills, collective knowledge, abilities,
and other resources available through an organization’s workforce.
C. Initial Selection
1. Initial selection devices are the first information applicants submit and are
used for preliminary rough cuts to decide whether the applicant meets the
basic qualifications for a job.
2. Application form
a. Not a good predictor of performance.
b. Good initial screen.
c. Apply online.
3. Background checks
a. 80 percent of employees check references.
b. Rarely is useful information gained.
c. Letters of recommendation are another form of background check.
d. Many employers will now search for candidates online through a general
III. Substantive and Contingent Selection
A. Introduction
1. Heart of the selection process.
2. Used after passing initial screening.
B. Written tests
and integrity.
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2. Long popular as selection devices, they declined in use because between the
were not validated.
3. Intelligence or Cognitive Ability Tests
a. Tests in intellectual ability, spatial and mechanical ability, perceptual
accuracy, and motor ability have shown to be moderately valid predictors
for many semiskilled and unskilled operative jobs.
cognitive complexity.
4. Personality Tests
has grown.
b. However, concern about applicants faking responses remain, partly
faking.
5. Integrity Tests
gained popularity.
b. These paper-and-pencil tests measure dependability, carefulness,
responsibility, and honesty.
6. Performance simulation tests
a. Although they are more complicated to develop and administer than
written tests, performance-simulation tests have higher face validity
(which measures whether applicants perceive the measures to be accurate),
and their popularity has increased.
assessment centers, and situational judgment tests.
c. Work sample tests
i. Hands-on simulations of part or the entire job that must be performed
by applicants.
ii. Work samples are increasingly used for all levels of employment.
d. Assessment centers
managerial potential.
ii. Assessment centers are good predictors of performance. However, it is
debatable how much of this is valid, as ratings may be confounded by
many factors.
(a) For example, assessment center exercises may be impacted by
e. Situational judgment tests
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i. To reduce the costs of job simulations, many organizations have
answers to those of high-performing employees.
f. Realistic job previews
i. These job tryouts are given as a way to assess talent versus experience.
ii. They decrease turnover because both employers and new hires know
what they are getting into ahead of time.
7. Interviews
a. The interview continues to be the device most frequently used.
b. It seems to carry a great deal of weight.
c. The candidate who performs poorly in the employment interview is likely
to be cut, regardless of his/her experience, test scores, or letters of
recommendation, and vice versa.
d. This is important because of the unstructured form of most selection
interviews.
i. The unstructured interview—short in duration, casual, and made up
of random questions—is an ineffective selection device.
ii. Without structure, interviewers tend to favor applicants who share
their attitudes, give undue weight to negative information, and allow
the order in which applicants are interviewed to influence their
evaluations.
iii. To reduce bias, managers should adopt a standardized set of questions,
a uniform method of recording information, and standardized ratings
of applicants’ qualifications.
e. Interview effectiveness also improves when employers use behavioral
structured interviews, probably because these assessments are less
influenced by interviewer biases.
i. They require applicants to describe how they handled specific
problems and situations in previous jobs, based on the assumption that
past behavior offer the best predictor of future behavior.
ii. Panel interviews also minimize the influence of individual biases and
have higher validity.
f. Most organizations use interviews as more than a prediction of
performance device.
C. Contingent Selection Tests
1. Once an applicant has passed substantive selection (such as background
checks, interviews, etc.), the person is ready to be hired subject to a final
check.
2. One common contingent method is a drug test.
3. Under the Americans with Disabilities Act, firms may not require employees
to pass a medical exam before a job offer is made.
IV. Training and Development Programs
A. Introduction
1. Skills deteriorate and can become obsolete.
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2. U.S. corporations with 100 or more employees spent more than $125 billion
on formal training in a recent year.
B. Types of Training
1. Introduction
a. There are four general skill categories for training—basic, technical,
interpersonal, and problem solving skills—and civility and ethics training.
2. Basic skills
reading comprehension, writing, and math.
b. Organizations find they must provide basic reading and math skills for
their employees.
3. Technical skills
a. Most training is directed at upgrading and improving an employee’s
technical skills.
structural designs.
c. Indian companies have faced a dramatic increase in demand for skilled
workers in areas like engineering for emerging technologies, but many
recent engineering graduates lack up-to-date knowledge required to
perform these technical tasks.
operates.
4. Problem-solving skills
a. Problem-solving training for managers and other employees can include
activities to sharpen their logic, reasoning, and problem defining skills as
well as their abilities to assess causation, develop and analyze alternatives,
and select solutions.
programs.
5. Interpersonal skills
a. Almost all employees belong to a work unit.
b. Their work performance depends on their ability to effectively interact
with their coworkers and bosses.
6. Civility training
organizations.
i. Examples of incivility include being ignored, being excluded from
social situations, having your reputation undermined in front of others,
and experiencing other actions meant to demean or disparage.
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withdrawal from the workplace.
c. Managers can try to minimize incivility, bullying, and abusive supervision
using specifically targeted training.
d. Following a training intervention based on these principles, coworker
civility, respect, job satisfaction, and management trust have increased,
while supervisor incivility, cynicism, and absences decreased.
of incivility.
7. Ethics training
a. It is common for employees to receive ethics and values guidance
incorporated in new-employee orientations, developmental programs, or
as periodic reinforcements of ethical principles.
at an early age.
c. Supporters of ethics training argue that values can be learned and changed
after early childhood.
d. Even if it could not, it helps employees to recognize ethical dilemmas,
become more aware of the ethical issues underlying their actions, and
reaffirms an organization’s expectations.
will act ethically.
C. Training Methods
1. Historically, training meant formal training. It is planned in advance and has a
structured format.
2. Organizations are increasingly relying on informal training.
out.
3. Job Training. On-the-job training includes job rotation, apprenticeships,
understudy assignments, and formal mentoring programs.
4. The most popular is live classroom lectures.
5. Computer-Based Training. Recently, e-training (computer-based training) is
the fastest growing training delivery mechanism.
D. Evaluating Effectiveness
training.
2. The success of training also depends on the individual.
3. The climate also is important: when trainees believe there are opportunities
and resources to let them apply their newly learned skills, they are more
motivated and do better in training programs.
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V. Performance Evaluation
A. What Is Performance?
1. In the past, most organizations assessed only how well employees performed
the tasks listed on a job description, but today’s less hierarchical and more
service-oriented organizations require more.
performance at work:
a. Task performance
b. Citizenship
c. Counter productivity
3. Most managers believe good performance means doing well on the first two
dimensions and avoiding the third.
B. Purposes of Performance Evaluation
promotions, transfers, and terminations.
2. Evaluations identify training and development needs.
3. They pinpoint employee skills and competencies needing development.
4. They provide feedback to employees on how the organization views their
performance and are often the basis for reward allocations including merit
pay increases.
C. What Do We Evaluate?
1. Introduction
a. The criteria or criterion used to evaluate performance has a major
influence on performance.
i. The three most popular sets of criteria are individual task outcomes,
behaviors, and traits.
2. Individual task outcomes
employee’s task outcomes.
3. Behaviors
a. It is difficult to attribute specific outcomes to the actions of employees in
advisory or support positions or employees whose work assignments are
part of a group effort.
evaluate the employee’s behavior.
c. Measured behaviors needn’t be limited to those directly related to
individual productivity.
4. Traits
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used in organizations for assessing performance.
D. Who Should Do the Evaluating?
1. By tradition, the task has fallen to managers, because they are held responsible
for their employees’ performance.
2. But others may do the job better.
ratings.
5. Any individual performance rating may say as much about the rater as about
the person being evaluated.
6. The latest approach to performance evaluation is 360-degree evaluations.
a. These provide performance feedback from the employee’s full circle of
(Exhibit 17-2)
7. Some allow employees to choose the peers and subordinates who evaluates
them, which can artificially inflate feedback.
a. There is clear evidence that peers tend to give much more lenient ratings
that supervisors or subordinates, and peers also tend to make more errors
in appraising performance.
behaviors towards coworkers.
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