Management Chapter 9 Homework Many Employees Are Not Prepared For New

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CHAPTER 9

MANAGING HUMAN RESOURCES AND DIVERSITY

CHAPTER OUTLINE

Are You Ready to Be a Manager?

I. The Strategic Role of HRM is to Drive Organizational Performance

A. The Strategic Approach

B. Building Human Capital to Drive Performance

II. The Impact of Federal Legislation on HRM

III. The Changing Nature of Careers

A. The Changing Social Contract

B. Innovations in HRM

IV. Finding the Right People

A. Human Resource Planning

B. Recruiting

C. Selecting

V. Managing Talent

A. Training and Development

B. Performance Appraisal

VI. Maintaining an Effective Workforce

A. Compensation

VII. The Changing Workplace

A. Diversity in the United States

B. Diversity on a Global Scale

VIII. Managing Diversity

A. What is Diversity?

B. Dividends of Workplace Diversity

IX. Factors Shaping Personal Bias

A. Prejudice, Discrimination, and Stereotypes

B. Ethnocentrism

X. Factors Affecting Women’s Careers

A. The Glass Ceiling

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B. The Opt-Out Trend

C. The Female Advantage

XI. Cultural Competence

XII. Diversity Initiatives and Programs

A. Changing Structures and Policies

XIII. New Diversity Initiatives

A. Multicultural Teams

B. Employee Network Groups

ANNOTATED LEARNING OBJECTIVES

After studying this chapter, students should be able to:

1. Explain the strategic role of human resource management.

The term human resource management (HRM) refers to activities undertaken to attract an

effective workforce, develop the workforce to its potential, and maintain the workforce over the

2. Explain what the changing social contract between organizations and employees means for

workers and human resource managers.

Not since the advent of mass production and modern organizations has a redefinition of work

and career been so profound. Under the emerging social contract, each person must take care of

3. Show how organizations determine their future staffing needs through human resource

planning.

Human resource planning is the forecasting of human resource needs and the projected matching

4. Describe how organizations develop an effective workforce through training and

performance appraisal.

Training and development represent a planned effort by an organization to facilitate employees’

5. Understand the pervasive demographic changes occurring in the domestic and global

marketplace and how corporations are responding.

The importance of cultural diversity and employee attitudes that welcome cultural differences

will result from the inevitable changes taking place in the workplace, in our society, and in the

6. Recognize the complex attitudes, opinions, and issues that employees bring to the workplace,

including prejudice, discrimination, stereotypes, and ethnocentrism.

Prejudice is the tendency to view people who are different as being deficient. Discrimination

occurs when people act out their prejudicial attitudes toward other people who are targets of their

prejudice. Although blatant discrimination is not as widespread as in the past, bias in the

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7. Recognize the factors that affect women’s opportunities, including the glass ceiling, the opt–

out trend, and the female advantage.

The glass ceiling is an invisible barrier that separates women and minorities from top

management positions. They can look up through the ceiling and see top management, but

prevailing attitudes and stereotypes are invisible obstacles to their own advancement. Women

8. Explain the five steps in developing cultural competence in the workplace.

A successful diversity plan leads to a workforce that demonstrates cultural competence in the

long run. Cultural competence is the ability to interact effectively with people of different

cultures. There are five steps to implementing a diversity plan.

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• Uncover diversity problems in the organization. Organizations can’t assess their progress

LECTURE OUTLINE

Are You Ready to Be a Manager?

This questionnaire helps students determine their understanding of human resources practices

and attitudes toward diversity.

INTRODUCTION

The term human resource management (HRM) refers to the design and application of formal

systems in an organization to ensure the effective and efficient use of human talent to accomplish

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I. THE STRATEGIC ROLE OF HRM IS TO DRIVE ORGANIZATIONAL

PERFORMANCE

INSTRUCTOR’S NOTES_________________________________________________________

______________________________________________________________________________

____________________________________

Exhibit 9.1: Strategic Human Resource Management

A. The Strategic Approach

1. All managers are human resource managers.

2. Employees are viewed as assets. In today’s brutally competitive business

4. Current strategic issues of concern to managers include:

a. The right people to become more competitive on a global basis.

New Manager Self-Test: Getting the Right People on the Bus

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As new managers, students must learn to get the right people into their organizations. Most new

5. The three broad activities of HRM are as follows:

a. Find the right people.

B. Building Human Capital to Drive Performance

1. Human capital refers to the economic value of the combined knowledge, experience,

skills, and capabilities of employees. To build human capital, HRM develops

Exhibit 9.2: The Role and Value of Human-Capital Investments

II. THE IMPACT OF FEDERAL LEGISLATION ON HRM

INSTRUCTOR’S NOTES_________________________________________________________

______________________________________________________________________________

____________________________________

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Several federal laws have been passed to insure equal employment opportunity (EEO). The

purpose of these laws is to stop discriminatory practices that are unfair to specific groups and

Discrimination occurs when some applicants are hired or promoted based on criteria that are not

job relevant. When discrimination is found, remedies include back pay and affirmative action.

Exhibit 9.3: Major Federal Laws Related to Human Resource Management

III. THE CHANGING NATURE OF CAREERS

INSTRUCTOR’S NOTES_________________________________________________________

______________________________________________________________________________

A. The Changing Social Contract

1. In the old social contract, the employee contributed ability, education, loyalty, and

commitment in return for the company providing wages and benefits, work,

advancement, and training.

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a. Volatile changes in the environment have disrupted this contract.

b. Organizations have downsized and careers no longer necessarily progress up a

vertical hierarchy.

Spotlight on Skills: What Is Your HR Work Orientation?

The HR department typically is responsible for monitoring compliance with federal laws, and it

Exhibit 9.4: The Changing Social Contract

2. The new social contract is based on the concept of employability rather than lifetime

employment.

3. Many employees are not prepared for new levels of cooperation or responsibility on

the job.

a. Employment insecurity is stressful, and it is harder to gain employee

Business Blooper: Walmart

Imagine getting a minimum-wage job at Walmart, and a temporary one at that. It is the day after

Thanksgiving, often the heaviest retail day of the year. You are standing, ready to greet all the

enthusiastic customers. Instead, you get trampled to death. This happened to Jdimytai Damour

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B. Innovations in HRM

1. Becoming an Employer of Choice

a. An employer of choice is a company that is highly attractive to employees

2. Using Temporary and Part-Time Employees

a. Contingent workers are becoming a larger part of the workforce both in the

3. Promoting Work–Life Balance

a. Telecommuting is one way organizations are helping employees lead more

IV. FINDING THE RIGHT PEOPLE

INSTRUCTOR’S NOTES_________________________________________________________

______________________________________________________________________________

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______________________________________________________________________________

____________________________________

Exhibit 9.5: Attracting an Effective Workforce

The first goal of HRM is to attract individuals who show signs of becoming valued, productive,

and satisfied employees. The first step in attracting a workforce is planning, predicting the need

for new employees based on the types of vacancies that exist. The second step is to

communicate with potential applicants. The third step is to select those with the best potential.

Finally, the new employee is welcomed to the organization.

In the matching model, the organization and the individual attempt to match the needs, interests,

and values they offer each other. The idea is that people can fulfill deep-seated needs and

interests on the job, which will induce them to stay with the organization.

A. Human Resource Planning

1. Human resource planning is the forecasting of human resource needs and the

projected matching of individuals with expected job vacancies. Human resource

planning begins with several questions.

a. What new technologies are emerging, and how will these affect the work system?

2. The responses to these questions are used to formulate specific HR questions

pertaining to HR activities such as the following.

a. What types of engineers will we need, and how many?

B. Recruiting

1. Recruiting, sometimes referred to as talent acquisition, is defined as activities or

practices that define the characteristics of applicants to whom selection procedures

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2. Assessing Jobs

a. Job analysis is a systematic process of gathering and interpreting information

Exhibit 9.6: Sara Lee’s Required Skills for Finance Executives

3. Realistic Job Previews

4. Legal Considerations

a. EEO laws require that recruiting and hiring decisions cannot discriminate on the

basis of race, national origin, religion, and gender.

Exhibit 9.7: PAIRE’s Recruitment and Hiring Policy

5. E-cruiting

6. Innovations in Recruiting

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a. Managers sometimes have to find innovative approaches to recruit the right

people. One highly effective method is getting referrals from current employees,

C. Selecting

1. In the selection process, employers assess applicants’ characteristics to determine the

“fit” between the job and applicant characteristics.

2. The application form collects information about the applicant’s education, previous

Exhibit 9.8: Employment Applications and Interviews: What Can You Ask?

Spotlight on Skills: Top Interview Blunders; Hint: Don’t Bring a Date

Understanding common blunders that tick off interviewers can make you more successful as

both a job candidate and an interviewer. According to CareerBuilder.com, most interview

blunders fall into five key categories:

Communication skills. Managers often cite poor communication skills, such as inappropriate

body language, talking too much or too little, not making eye contact, or using profanity or

street slang.

Performance. Professionalism during the interview plays an important part in the hiring decision

for most managers.

Attitude. People who show arrogance and disrespect toward the interviewer are a huge turn-off.

Appearance. In most cases, people should wear traditional, professional attire for an interview.

Proper grooming, cleanliness, and good manners are also essential.

Honesty. Candidates who lie or give the impression that they are dishonest don’t get a callback.

5. Assessment centers present simulated managerial situations to groups of applicants

6. Online checks. One of the newest ways of gauging whether a candidate is right for

the company is by seeing what the person has to say about him- or herself on social

Exhibit 9.9: Try Your Hand at Some Interview Brain Teasers

V. MANAGING TALENT

INSTRUCTOR’S NOTES_________________________________________________________

______________________________________________________________________________

____________________________________

A. Training and Development

1. Training and development represents a planned effort by an organization to help

employees learn job-related skills and behaviors.

2. In on-the-job training (OJT), an experienced employee “adopts” a new employee

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B. Performance Appraisal

1. Performance appraisal comprises the steps of observing and assessing employee

performance, recording the assessment, and providing feedback to the employee.

a. Performance appraisal can reward high performers with merit pay, recognition,

2. Assessing Performance Accurately

a. The appraisal system should require the rater to assess each relevant performance

dimension.

Exhibit 9.10: Example of a Behaviorally Anchored Rating Scale

3. Performance Evaluation Errors

a. Stereotyping occurs when a rater places an employee into a class or category

based on one or a few traits or characteristics.

VI. MAINTAINING AN EFFECTIVE WORKFORCE

INSTRUCTOR’S NOTES_________________________________________________________

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______________________________________________________________________________

____________________________________

A. Compensation

1. Compensation refers to all monetary payments and all goods or commodities used in

2. Wage and Salary Systems

a. Job-based pay links compensation to the specific tasks that an employee

Discussion Question #5: As a manager, how would you draw up a telecommuting contract with

a new employee? Include considerations such as job description, compensation and benefits,

performance measures, training, and grounds for dismissal.

3. Compensation Equity

a. Job evaluation determines the worth of jobs in the organization through an

4. Pay for performance

a. Pay-for-performance, also called incentive pay, ties part of the compensation to

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B. Benefits

1. Benefits make up 40 percent of labor costs in the U.S. because of rising health care

C. Rightsizing the Organization

1. Rightsizing refers to intentionally reducing the company’s workforce to the point

3. Unless HRM departments carefully manage downsizing, layoffs can lead to decreased

D. Termination

1. Terminations are valuable in maintaining an effective workforce in two ways.

a. Employees who are poor performers can be dismissed. Productive employees

Discussion Question #6: What purpose do exit interviews serve for maintaining an effective

workforce?

VII. THE CHANGING WORKPLACE

INSTRUCTOR’S NOTES_________________________________________________________

______________________________________________________________________________

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______________________________________________________________________________

A. Managers are learning that the differences people bring to the workplace enable their

Spotlight on Skills: CNN en Español

Trying to entice more Hispanic viewers in the United States, CNN’s Spanish-language branch is

adding new programs, new sets, a spiffy new studio in Miami, and a new logo. Though CNN en

Español boasts that it broadcasts from “Alaska to Patagonia,” the new focus will help North

American operations. Some estimates show the Latin population doubling again by mid-century.

New programs include a personal investment show called “CNN Dinero,” a light-night

“Conclusiones” with a news wrap-up, and three hours of news in the morning.

1. Three-generation workforce. Today’s workforce is in a state of flux as a blend of

3. Growth in Hispanic and Asian workers. The number of Hispanics in the workforce

4. Women outnumbering men. As of 2010, women outnumbered men in the workplace.

5. Growth in foreign-born population. Almost one in eight people currently living in