Chapter 9: Human Resources and Diversity

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Chapter 9Human Resources and Diversity
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Learning Objectives
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• Explain the role of human resource management in
  organizational strategic planning.
• Describe federal legislation and societal trends
  that influence human resource management.
• Explain what the changing social contract between
  organizations and employees means for workers and
  human resource managers.
• Describe the tools managers use to recruit and
  select employees.
• Explain how organizations maintain a workforce
  through the administration of wages and salaries,
  benefits, and terminations.
• Explain the dimensions of employee diversity and
  why ethnorelativism is the appropriate attitude
  for todays organizations.
• Explain affirmative action and why factors such
  as the glass ceiling have kept it from being more
  successful.
• Explain the importance of addressing sexual
  harassment in the workplace.

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Human Resource Management

• Activities undertaken to attract, develop, and
  maintain an effective workforce within an
  organization.

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Strategic Human Resource Management Goals
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Exhibit 9.1
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Current Strategic Issues
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• Becoming more competitive globally
• Improving quality, productivity, customer
  service
• Managing mergers acquisitions
• Applying new information technology for e-business

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Environmental Influences on HRM
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• Building Human Capital
• Globalization
• Information Technology
• Human Resource Information Systems
• Federal Legislation
• Discrimination
• Affirmative Action

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Globalization
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• HR must address the complexity that results from
  recruiting, selecting, developing, and
  maintaining a diverse workforce on a global scale

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Information Technology
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• Human resource information technology - an
  integrated computer system designed to provide
  data and information used in HR planning
• Traditional HR to e-HR - significantly affected
  every area of human resource management

Some organizations are close to a paperless HRM
system saves time, money, frees staff
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Federal Legislation
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• Discrimination - hiring or promoting of
  applicants based on criteria that are not job
  relevant
• Affirmative Action - policy requiring employers
  to take positive steps to guarantee equal
  employment opportunities for people within
  protected groups

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Major Federal Laws - HRM
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• Equal Opportunity/Discrimination Laws
• Compensation/Benefits Laws
• Health/Safety Laws

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The Changing Social Contract
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Exhibit 9.3
New Contract
Old Contract
Employee
Employability, personal responsibility Partner in
business improvement Learning
Job security A cog in the machine Knowing
Traditional compensation package Standard
training program Routine jobs Limited
information
Employer
Continuous learning, lateral careermovement,
incentive compensationCreative development
opportunitiesChallenging assignmentsInformation
and resources
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HR Issues in the New Workplace
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• Employer of choice
• Teams and Projects
• Temporary Employees
• Technology
• Work-Life Balance
• Downsizing

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HR Issues in the New Workplace
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• An employer of choice is a company that is highly
  attractive to potential employees because its
  human resource practices focus on both
• Tangible benefits and
• Intangible benefits

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Teams and Projects in the New Workplace
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• Major trend in todays workplace
• Growth in project management
• Job categories are collapsing
• Employees manage multiple tasks and
  responsibilities

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Temporary Employees in the New Workplace
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• At the start of the 21st century, largest
  employer in U.S. was a temporary employment
  agency, Manpower, Inc.
• Temporary Employees do everything from data entry
  to interim CEO
• Contingent workers - temporary, contract, lease
  employees.

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Technology in the New Workplace
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• Telecommuting and virtual teams are related
  trends
• Telecommuting - using computers and
  telecommunications equipment to perform work from
  home or another remote location
• Work anywhere - wireless Internet devices,
  laptops, cell phones, fax machines
• Extreme telecommuting - people live and work in
  countries far away from the organizations
  physical location

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Work/Life Balance in the New Workplace
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• Telecommuting is one strategy
• Flexible scheduling is important in todays
  workplace 27 of workforce has flexible hours
• Broad Work-Life Balance initiatives critical
  retention strategy on-site gym childcare, paid
  leaves sabbaticals

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Downsizing in the New Workplace
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• Intentional, planned reduction in the size of a
  companys workforce
• Smoothing the downsizing process
• Communicate with employees
• Provide information
• Provide assistance
• Use training and development

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Attracting an Effective Workforce
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• The first role of HR is to attract valued,
  productive and satisfied employees through
  planning

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Matching Model
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• An employee selection approach in which the
  organization and the applicant attempt to match
  each others needs, interests, and values

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Attracting an Effective Workforce
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Exhibit 9.4
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Human Resource Planning
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• Forecasting of human resource needs and the
  projected matching of individuals with expected
  vacancies

• What new technologies and emerging?
• What is the volume of business likely to be?
• What is turnover, is it avoidable?

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Recruiting
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External
Internal
E-Recruiting
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Assessing Organizational Needs
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Job Analysis
Job Description
Job Specification
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Sara Lee Required Skillsfor Finance Executives
Exhibit 9.5
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Realistic Job Preview

• A recruiting approach that gives applicants all
  pertinent and realistic information about the job
  and the organization

Organizations must ensure that their recruiting
practices conform to the law.
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Selecting
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• Selection - assess desired employees
• Determine of there is a fit
• Validity - relationship between an applicants
  score on a selection device and his or her future
  job performance

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Application Form
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• Collect information about applicant
• Education
• Job experience
• Background characteristics

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Interviewing An Applicant
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Know what you want
Prepare a road map
Use open-ended questions
Do not ask irrelevant questions
Do not rush interview
Do not rely on your memory
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Interview as Predictor of Success
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• Interview is not a valid predictor of job
  performance has high face validity as a
  selection tool
• Panel interviews candidate meets with several
  interviewers - increases interview validity
• Computer-based interviews - complement
  traditional interviewing information

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Testing and Assessment
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• Employment Test - measure a particular attribute
  such as intelligence or aptitude
• Assessment Center - selecting individuals with
  high managerial potential based on performances
  on a series of simulated tasks

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Developing an Effective Workforce
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• Training and development - effort to facilitate
  employees learning of job-related skills and
  behaviors
• On-the-job training - an experienced employee
  adopts a new employee to teach him or her how
  to perform job duties
• Cross training
• Mentoring

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Other Training and Development Methods

• Orientation Training
• Classroom Training
• Computer-based Training

• Corporate Universities
• Promotion from Within
• Workforce Optimization

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Performance Appraisal
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• Process of observing and evaluating an employees
  performance, recording the assessment, and
  providing feedback to the employee

• Observing and assessing performance
• Recording the assessment
• Providing feedback to employee

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Making Performance Appraisals A Positive Force
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• The accurate assessment of performance through
  the development and application of assessment
  systems
• Use the performance appraisal to provide feedback
  that reinforces good performance and motivate

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Assessing Performance Accurately
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• 360 Feedback Process
• Performance Evaluation Errors
• Stereotyping
• Halo effect
• BARS
• Behaviorally-anchored rating scale

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Behaviorally AnchoredRating Scale
Exhibit 9.9
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Maintaining an Effective Workforce
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• Compensation
• Wage and Salary Systems
• Job-based pay
• Skill-based pay
• Competency based-pay
• Compensation Equity
• Job evaluation
• Wage and salary surveys
• Pay for Performance
• Benefits
• Cafeteria-plan benefit packages

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Termination
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Value of termination for maintaining an effective
workforce is two fold

• Employees who are poor performers can be
  dismissed
• Employers can use exit interviews in a positive
  manner

Exit interview interview with departing
employees to identify reason for termination
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Top Managers Value Diversity
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• To give organization access to broader range of
  opinions and viewpoints
• To spur greater creativity and innovation
• To reflect an increasingly diverse customer base
• To obtain the best talent in a competitive
  environment
• To more effectively compete in the global
  marketplace

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Valuing Diversity
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• Job seekers value diversity
• 91 of job seekers think diversity programs make
  a company a better place to work
• Survey commissioned by The New York Times

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Attitudes Toward Diversity
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• Ethnocentrism - belief that ones own group or
  subculture is inherently superior to other groups
  or cultures
• Enthnorelativism - belief that groups and
  subcultures are inherently equal
• Pluralism - an organization accommodates several
  subcultures

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The Changing Workplace
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Globalization Competition is intense
Changing Composition of Workforce There are more
women, people of color, and immigrants seeking
opportunities
Dramatic Changes in the Customer Base
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Challenges Minorities Face
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• Lack of choice assignments
• Disregard by a subordinate of a minority
  managers direction
• Ignoring of comments made by women and minorities
  at meetings
• A need to become Bicultural

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Challenges For Management
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Exhibit 9.11
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Affirmative Action Current Debate
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• Affirmative action was developed in response to
  conditions 40 years ago.
• Today more then half the U.S. workforce consists
  of women and minorities.
• It is not the same as diversity.
• Research shows that full integration of women and
  racial minorities into organizations is still at
  least a decade away.

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Glass Ceiling
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• An invisible barrier separates women and
  minorities from top management positions
• Fortune 500 Women Corporate Officers
• 2004 15.7
• 2000 12.5
• 1995 8.7
• Only eight Fortune 500 companies have female CEOs
  in 2006

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The Wage Gap
Exhibit 9.12
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The Opt-Out Trend

• 37 of highly qualified women report that they
  voluntarily left the workforce at some point in
  their career.

but some people think women might actually be
better managers, partly because they have a more
collaborative approach
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Responses to Diversity
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• Building a corporate culture that values
  diversity
• Changing structures, policies, and systems to
  support diversity
• Recruitment
• Career advancement
• Providing diversity awareness training

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Organizational Relationships
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• Emotional Intimacy
• Sexual Harassment
• Generalized
• Inappropriate/offensive
• Solicitation with promise of reward
• Coercion with threat of punishment
• Sexual crimes and misdemeanors

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Global Diversity
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• Globalization is a reality for todays companies
• The rest of the world matters to a degree that
  it never did in the past.
• Workforce 2020