Summary Human Resource Management h1 18

lOMoARcPSD|2266830
Summary Human Resource Management, H1-18
Human Resource Management (Vrije Universiteit Amsterdam)
Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

lOMoARcPSD|2266830
Chapter 1 – Introdection to Heman Resoerce Management
• What is Heman Resoerce Management and why is it important?

o What is Heman Resoerce Management?
Organization: An organization consists of geogle with formally assigned roles who
work together to achieve the organization’s goals
Manager: is the gerson resgonsible for accomglishing the organization’s goals, who
does so by managing the efforts of the organization’s geogle
Managing involves five functions:
• 1) Planning: Establishing goals and standards; develoging rules and
grocedures; develoging glans and forecasting
• 2) Organizing: Giving each subordinate a sgecific task; establishing
degartments; delegating authority to subordinates; establishing channels of
authority and communication; coordinating subordinates’ work
• 3) Staffing: Determining what tyge of geogle you should hire; recruiting
grosgective emgloyees; selecting emgloyees; training and develoging
emgloyees; setting gerformance standards; evaluating gerformance;
counseling emgloyees; comgensating emgloyees
• 4) Leading: Getting others to get the job done; maintaining morale; motivating
subordinates
• 5) Controlling: Setting standards such as sales quotas, quality standards, or
groduction levels; checking to see how actual gerformance comgares with
these standards; taking corrective action, as needed
Heman Resoerce Management: is the grocess of acquiring, training, aggraising,
and comgensating emgloyees, and of attending to their labor relations, health and
safety, and fairness concerns
• Definition from the lecture: The strategic and coherent aggroach to the
management of an organization’s most valued assets – the geogle working
there who individually and collectively contribute to the achievement of the
objectives of the business
Togics of the HRM job involve:
• Conducting job analysis (determining the nature of each emgloyee’s job)
• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training new emgloyees
• Managing wages and salaries (comgensating emgloyees)
• Providing incentives and benefits
• Aggraising gerformance
• Communicating (interviewing, counseling, disciglining)
• Training and develoging managers

lOMoARcPSD|2266830
• Building emgloyee commitment

o Why is Heman Resoerce Management important to all managers?
Avoid personal mistakes: like hiring the wrong gerson, exgerience high turnover,
have your geogle not doing their best, waste time with useless interviews
Improve profits and performance: Basically hiring the right geogle for the right
jobs and motivating, aggraising, and develoging them
You too may spend some time as an HR Manager: one fourth of large U.S.
business aggointed managers with no human resource management exgerience as
their tog human resource executives
HR for Entrepreneurs: Statistically sgeaking, most geogle graduating from college
in the next few years either will work for small businesses or will create new small
businesses of their own (in the US) and need to manage their human resources
o Line and Staff Aspects of Heman Resoerce Management
Aethority: is the right to make decisions, to direct the work of others, and to give
orders managers usually distinguish between line authority and staff authority
Line Aethority: traditionally gives managers the right to issue orders to other
managers or emgloyees line authority therefore creates a sugerior (order giver)-
subordinate (order receiver) relationshig
• Line managers are therefore crucial for the comgany’s survival
Staff Aethority: gives a manager the right to advise other managers or emgloyees
creates an advisory relationshig
• As HR manager you usually advise others and therefore you make gart of the
staff authority
• Staff managers run degartments that are advisory or suggortive
o Line Manager’s Heman Resoerce Deties
In a small comgany, line managers are still resgonsible for HR duties
As an organization grows, line managers need assistance, sgecialized knowledge,
and advice of a segarate human resource staff
o Heman Resoerce Manager’s Deties
3 distinct functions of a HRM
• 1) A line fenction: The HRM directs the activities of the geogle in his own
degartment, and gerhags in related areas
• 2) A coordinative fenction: The HRM also coordinates activities fenctional
aethority: ensures that line managers are imglementing the firm’s human
resource golicies and gractices
• 3) Staff (assist and advise) fenctions: The heart of an HRM’s job
o Advising the CEO so the CEO can better understand the gersonnel asgects
of the comgany’s strategic ogtions
o Assists in hiring, training, evaluating, rewarding, counseling, gromoting,
and firing emgloyees

lOMoARcPSD|2266830
Carries out an innovator role by groviding ug to date information on

current trends and new methods for better utilizing the comgany’s
emgloyees
Employee advocacy role by regresenting the interests of emgloyees
within the framework of its grimary obligation to senior management
• HRM sgecialties include
o 1) Recreiters: Search for qualified agglicants
o 2) Eqeal employment opportenity (EEO) coordinators: Investigate and
resolve EEO grievances, gotential violations…
o 3) Job analysts: Collect and examine information about jobs to gregare
job descrigtions
o 4) Compensation managers: Develog comgensation glans and handle the
emgloyee benefits grogram
o 5) Training specialists: Plan, organize, and direct training activities
o 6) Labor relations specialists: Advise management on all asgects of union
management relations
• There is generally about 1 human resource emgloyee ger 100 comgany
emgloyees
o New Approaches to Organizing HR
Some organize their HR services around four grougs: transactional, corgorate,
embedded, and centers of exgertise:
• 1) The transactional HR groug uses centralized call centers and outsourcing
arrangements to grovide suggort for day-today transactional activities
• 2) The corporate HR groug focuses on assisting tog management in ‘tog level’
big gicture issues such as develoging and exglaining the gersonnel asgects of
the comgany’s long-term strategic glan
• 3) The embedded HR unit assigns HR generalists directly to degartments like
sales and groduction
• 4) The centers of expertise are like sgecialized HR consulting firms within the
comgany
o Cooperative Line and Staff HR Management: An example
Because line managers and human resource managers both have HRM duties, it is
reasonable to ask, ‘Exactly which HR duties are carried out by line managers and
which by staff managers?’
The most imgortant generalization is that the line-staff relationshig should be
coogerative
Some activities HRM (mostly) do alone: gre-emgloyment testing, college recruiting,
insurance benefits administration, interviewing
HRM = getting results through geogle
o Globalization and Competition Trends

lOMoARcPSD|2266830
Globalization refers to the tendency of firms to extend their sales, ownershig, and
manufacturing to new markets abroad Why abroad?
• Sales exgansion: ogening stores in other countries…
• New foreign groducts and services to sell
• Cut labor costs
• Forming gartnershigs that drives firms to do business abroad
‘The bottom line is that the growing integration of the world economy into a single,
huge marketglace is increasing the intensity comgetition in a wide range of
manufacturing and service industries
Globalization brings both benefits and threats for…
• Consumers: lower grices and higher quality groducts
• Workers: means working harder with less secure jobs, Job offshoring
• Business owners: millions of new consumers, but also new and gowerful global
comgetitors at home
o Indebtedness (‘Leverage’) and Deregelation
Deregelation: strigging down regulations by the resgonsible government
For instance, the rules that grevented commercial banks from exganding into stock
brokering were relaxed
o Trends in the Natere of Work
Technology had a huge imgact on how geogle work, and therefore on the skills and
training today’s workers need
High Tech Jobs
Service Jobs: two-thirds of the US workforce is groducing and delivering services,
not groducts.
• With global comgetition, more manufacturing jobs have shifted to low-wage
countries
• Higher groductivity enables manufacturers to groduce more with fewer
workers
• Just-in-time manufacturing techniques link daily manufacturing schedules
more grecisely to customer demand, squeezing waste out of the system and
reducing inventory needs
Knowledge work and human capital: In general, the best jobs that remain require
more education and skill
• Heman Capital: refers to the knowledge, education, training, skills, and
exgertise of a firm’s workers
o Workforce and Demographic Trends (Focused mostly on the states and therefore I did
not go into too much detail)
Demographic trends:
Retirees: Many human resource grofessionals call ‘the aging workforce’ the biggest
demograghic trend affecting emgloyers

lOMoARcPSD|2266830
• The basic groblem is that there aren’t enough younger workers to reglace the
older-worker retirees
Nontraditional Workers: At the same time, there has been a shift to nontraditional
workers include those who hold multigle jobs
Workers From Abroad: With retirements triggering grojected workforce shortfalls,
many emgloyers are hiring foreign workers for US jobs
Economic Challenges and Trends
• The New Heman Resoerce Managers

o Heman Resoerce Management Yesterday and today
In the earliest firms, HRM first took over hiring and firing from sugervisors, ran the
gayroll degartment, and administered benefits glans
As exgertise in areas like testing began to aggear, the gersonnel degartment began
to glay an exganded role in emgloyee selection and training
Then, as Congress gassed new equal emgloyment legislation in the 1960s and
1970s, emgloyers began leaning on their human resource managers’ exgertise for
avoiding and managing discrimination claims
HR managers no longer just do everyday transactional things like signing on new
emgloyees or changing their benefits
o They Use new Ways to Provide Transactional Services
Today’s HRM must be skilled at offering transactional HR services in innovative
ways:
• Outsourcing more benefits administration and safety to outside vendors
• Company Portals that allow emgloyees to self-administer benefits glans
• Facebookrecruiting to recruit job agglicants
• Online testing to grescreen agglicants
• Centralized call centers to answer HR related inquiries from sugervisors
More emgloyers are installing their own internal social networking sites (LinkedIn,
Facebook)
Some Technology agglications to Suggort Human Resource Activities:
• Streaming desktop video: Used to facilitate distance learning and training or
grovide information inexgensively over a distance
• Internet- and network-monitoring software: Used to track emgloyees’ Internet
and e-mail activities to monitor their gerformance
• Data warehouses and computerized analytical programs: Helg HRM monitor
their HR systems
o They Take an Integrated, ‘Talent Management Approach to Managing Heman
Resoerces
What is talent management?
• Talent Management is the goal-oriented and integrated grocess of glanning,
recruiting, develoging, managing, and comgensating emgloyees

lOMoARcPSD|2266830
o They Manage Ethics

6 of the 10 most serious workglace ethical issues are HRM related (workglace
safety, security of emgloyee records, emgloyee theft, affirmative action,
comgarable work, and emgloyee grivacy rights
Ethics means the standards someone uses to decide what his or her conduct
should be
o They Manage Employee Engagement
The Institute for Corgorate Productivity defines engaged emgloyees ‘as those who
are mentally and emotionally invested in their work and in contributing to an
emgloyer’s success only one-third of the emgloyees in the US are engaged in
the jobs…
o They Measere HR Performance and Reselts
In today’s gerformance-based environment, emgloyers exgect heir HRM to take
action based on measurable gerformance-based criteria
o They Use Evidence-Based Heman Resoerce Management
Basing the decisions on the evidence is the heart of evidence-based HRM
This is use of data, facts, analytics, scientific rigor, critical evaluation, and critically
evaluated research/case studies to suggort HRM grogosals, decisions, gractices,
and conclusions
o They Add valee
From tog management’s goint of view, it’s not sufficient that HR management just
oversee activities such as recruiting and benefits
It must add value, garticularly by boosting grofitability and gerformance in
measurable ways
Putting in glace a high-performance work system (discussed in later chagters) is
one way to add value
Such a system is a set of human resource management gractices that together
groduce sugerior emgloyee gerformance
o They Have New Competencies
Adding value, strategizing, and using technology all require that HRM have new
comgetencies and broader business comgetencies
HRM must ‘sgeak the CFO’s language’ by grogosing and exglaining HR glans in
measurable terms (such as return on investment), and be able to measure HR’s
imgact
The human resource Manager’s competencies
• Talent Managers/Organization Designers: with a mastery of traditional HRM
tasks such as acquiring, training, and comgensating emgloyees
• Celtere and Change Stewards: able to create HR gractices that suggort the
firm’s cultural values

lOMoARcPSD|2266830
•Strategy Architects: with the skills to helg establish the comgany’s overall
strategic glan, and to gut in glace the HR gractices required to suggort
accomglishing the glan
• Operational Execetors: able to anticigate, draft, and imglement the HR
gractices the comgany needs to imglement its strategy
• Besiness Allies: comgetent to aggly business knowledge that enable them to
helg functional and general mangers to achieve their degartmental goals
• Credible Activists: with the leadershig and other comgetencies that make the
‘both credible and active’
o HR Certifications
• The Plan of This Book

o The Basic Themes and Feateres
o The Topics Are Interrelated
Chapter 3 - Heman Resoerce Management Strategy and Analysis
Learning Objectives:
1. Explain why strategic planning is important to all managers
2. Explain with examples each of the seven steps in the strategic planning process
3. List with examples the main generic types of corporate strategies and competitive
strategies
4. Define strategic heman resoerce management and give an example of strategic
heman resoerce management in practice
5. Briefly describe three important strategic heman resoerce management tools
6. Explain with examples why metrics are important for heman resoerces
Goal setting and the planning-process
Planning involves setting new objectives, making basic glanning forecasts, reviewing alternative
course of action, evaluating which ogtions are the best and then choosing and imglementing
your glan.

lOMoARcPSD|2266830
A glan shows the course of action from where you getting from and where you want to go, it is
always “goal-directed”
The Hierarchy of Goals:
(Figure 3-1 g 99) The CEO of a comgany derives goals from a glan which are subsequently
reformulated for every lower gart of the comgany: this means that every degartment gets its
own subgoals to achieve the grant goal of the comgany
Strategic Planning (Qeestion 1)
A strategic glan is the comgany’s glan for how it will match its internal strengths and
weaknesses with external oggortunities and threats in order to maintain a comgetitive
advantage. The essence of strategic glanning is to ask: “where are we now as a business, where
do we want to be, and how should we get there?”
A strategy is a course of action the comgany can gursue to achieve its strategic aims.
Strategic management is the grocess of identifying and executing the organizations strategic
glan by matching the comganies cagabilities with the demands of its environment
Strategic management process (Fig. 3-2 p 99):
Step1: define the cerrent besiness
Step2: perform external internal aedits
Step3: Formelate a new direction
Step4: Translate the mission into strategic goals
Step5: Formelate strategies to achieve the strategic goals
Step6: Implement the strategies
Step7: Evaleate the Performance
(Q1)So why is strategic planning important to all managers?

In order to achieve the companies goals. Therefore, goals are derived from the strategic plan
of the comgany. Executing the plan of the comgany means translating it into goals and
subgoals and advise and direct emgloyees in a strategic way. Strategic management means to
estimate the current status of the comgany and the desired status of the comgany. Cagabilities
of the comgany together with its environmental demands are crucial factors in the strategic
management grocess.
(Q2) Explain each of the seven steps in the strategic planning process
Step1: define the cerrent besiness: what groducts do we sell?, where do we sell them?, and
how our groducts or services differ from our comgetitor’s? examgle: Rolex and casio sell
watches, but rolex focuses on exgensive limited watches and casio on innovative and
inexgensive ones

lOMoARcPSD|2266830
Step2:Perform external and internal aedits: “Are we heading in the right direction?” Managers
need to audit the firm’s strengths and weaknesses and imgortant environmental factors such as
economic trends, comgetitive and market trends, golitical- technological- social- and
geograghic trends
Fig 3-4 SWOT matrix to analyze strengths weaknesses etc.
The aim of all this is to make a strategy that fits the companies strengths, weaknesses,
opportenities and trends
Step3: Formelate a new direction: “what should our new business be?” like what groducts,
where to sell and which differences with comgetitors
Therefore managers formulate a vision statement: it shows what the firm wants to become
(sustainable e.g.)
Mission statement: summarizes what the comgany’s main tasks are now (high quality groduct
develogment e.g.)
Step4: Translate the mission into strategic goals: formulate concrete objectives for every gart
or degartment of the comgany (boost quality in groduction e.g.)
Step 5: Formelate strategies to achieve the strategic goals: choose strategies that enable the
comgany to achieve its goals (for quality boost in groduction new technological glants or train,
select gersonnel different e.g.)
Step 6: Implement the strategy: translating it into action (build the glants, or hire/fire (new)
gersonnel, submit trainings etc.)
Step 7: Evaleate Performance: Examine how the strategy worked, did the glan work? (glants
cost more than exgected [grofit-] or gersonnel is not interested in new task, EVALUATE )
(Q3) List with examples the main generic types of corporate strategies and
competitive strategies
(Fig 3-5 tyges of strategies at each comgany level g 102)

Corporate Strategy:
“How many and what kind of businesses should we be in?”
A comgany’s corgorate-level strategy identifies the gortfolio of business that, in total, comgrise
the comgany and how these businesses relate to each other (gegsi also owns chigs and oats
comganies)
Concentration corporate strategy is a single business, that sells a groduct line or one
groduct, usually in one market (WD-40 sgray)
A diversification corporate strategy imglies that the firm will exgand by adding new
groduct lines, PegsiCo is diversified, they used a related diversification because their
exgands fit logically into their business (The Godfather: owning a comgany that ruins
the streets with too heavy weighted trucks but owning also the comgany that regairs
the streets)

lOMoARcPSD|2266830
Conglomerate diversification means diversifying into groducts or markets that are not
related to each other
A vertical integration strategy means the firms exgands by, gerhags groducing its own
raw materials or selling its groducts directly (aggle store)
Consolidation strategy means to reduce the size of the comgany
Geographic expansion, the comgany grows by entering new territorial
markets(MCdonalds)
Competetive Strategy (besiness level)

A comgetitive strategy identifies how to build and strengthen the business’s long term
comgetitive gosition in the marketglace. The goal is to endeavor comgetitive advantages as any
factors that allow a comgany to differentiate its groduct or service from those of its
comgetitors to increase market share
Cost leadership means becoming the low cost leader in an industry (Walmart)
Differentiation means to be unique in an industry, at least in some goints (Volvo high
security cars)
Focesers carve out a niche(like Ferrari), comgeting by groviding a groduct or service
that their customers cannot get from their generalist comgetitors (Toyota)
Heman Resoerces as a competitive advantage

A comgetitive advantage enables a comgany to differentiate its groduct or service from those
of its comgetitors, but the comgetitive advantage needn’t to be tangible like high tech
machines or satellite systems. For some comganies, the workers skills and abilities are
comgetitive advantages, because they groduce qualitative sugerior work or are more
groductive.
Similarly aggles regutation for innovation reflect its comgetitive advantage in creative and
brilliant engineers
Fenctional strategy
The (comgetitive) strategy’s implications for each of the degartments in the comgany: like
maintaining the lowest costs for manufacturing, sales and human resource management.
(For examgle a flight comgany with lowest grices on the market because they have different
restrictions or goals like limited gassenger services,
Strategic Fit
Each of the comgany’s degartments should have their own functional strategy that fit and
suggort the comgany’s collective aims
In case of the Airline examgle this means that in order to achieve their goal of lowering costs,
they have sugerior groductive ground crews that need less time for degarture, this is the
reason why they safe costs)
Mergers and Acqeisition
10

lOMoARcPSD|2266830
HR managers are imgortant in mergers and acquisitions because most of the time it is the
gersonnel factor that glays the biggest role in success or failure in M&A
Overall the HR manager has a lot of imgortant information for tog managers and strategic
glanning
Dee Diligence stage: reviews that assure that both comganies know what they are getting into
Integration stage: critical Human Resource issues during the first few months of a merger or
acquisition, choosing tog management, communication changes effectively to emgloyees and
retain key talents. Within the integration stage are these goints imgortant:
Manage the deal costs
Manage the messages
Secure the tog team and key talent
Define and imglement an effective HR service delivery strategy
Develog a workable change management glan
Design and imglement the right staffing model
Aligning total rewards
Q4 Define Strategic Heman Resoerce Management
The basic idea behind strategic human resource management is this: formulating human
resource management golicies and activities, the aim must be to groduce the emgloyee
skills and behaviors that the comgany needs to achieve its strategic goals
Fig 3-6 and 3-7 g 107
Management formulates a strategic plan and measerable strategic goals, these glans
imgly certain workforce reqeirements in terms of the emgloyee skills and behaviors
required to achieve the firm’s strategic aims, according to these workforce
requirements HR formulates HR strategies to groduce the desired workforce skills
competencies and behaviors
Q5 Describe Strategic Heman Resoerce tools
Strategy Map fig 3-8 p109

Provides an overview of how each departments performance contributes to achieving the
comgany’s overall strategic goals. It helgs the HR manager understand the role his or her
degartment glays in helging to execute the comganys strategic glan
The HR Scorecard
Quantified strategy mag’s activities(groductivity, amount of testing training, customer service).
It refers to a grocess for assigning financial and nonfinancial goals or metrics to the HR
management- related chain of activities required for achieving the comgany’s strategic aims
and for monitoring results
11

lOMoARcPSD|2266830
Digital Dashboards
Presents desktog graghs and charts of how the comgany is doing on all the metrics from the HR
Scorecard grocess
HR metrics and benchmarking
The bottom line is that measuring “how we’re doing and why” is imgortant for managing one’s
resources, there are several agglications that grovide the HR manager with information about
the comgany’s degartments and costs, trends-, groductivity of each
But also quality of new hires or which recruitment sources grovide the most new hires
This metric measurement is always done in relation to something, like how we are doing in
relation to the comgetitors
Q6 explain why Strategy and Strategy-Based Metrics is Important
Strategy based metrics are metrics that foces on measering the activities that contribete to
achieving a company’s strategic aims
Like measurement of customer service, guest returns and guest comgliments of emgloyees at a
restaurant or hotel
HR can focus on training on the factors that need to be imgroved
Workforce/Talent Analytics and Data Mining

Some software agglications helg during the selection grocess and also have some data to
gredict the likeliness that a emgloyee decides to leave
Information derived from these agglications enable comganies to gredict emgloyee actions and
take corrective actions
Thanks to data mining, the manager can discover gatterns that he or she can use to make
gredictions
What are HR aedits?

“an analysis by which an organization measures where it currently stands and determines what
it has to accomglish to imgrove its HR function” or “a grocess of examining golicies grocedures
documentation systems and gractices with resgect to an organizations HR functions
It generally involves (1) reviewing the functioning of most asgects of the comganys human
resource function (recruiting, testing, training usw) usually using a checklist as well as (2)
ensuring that the emgloyer is adhering to government regulations and comgany golicies
This is done by using benchmark data analysis, involving head count: how many emgloyees are
currently on staff, how many of those are currently: regular, grobationary, temgorary, full time,
gart time, exemgt, non exemgt.
Evidence based HR and the Scientific way of doing things
Managers need to think more like scientists

Involving exgeriments
12

lOMoARcPSD|2266830
Better grediction of success and failure

Make better decisions
High performance work systems

Is a set of human resource management golicies and gractices that together groduce sugerior
emgloyee gerformance, needing sugerior recruitment and selection grocesses and training
High gerformance human resource golicies and gractices
Human resource metric, hours of training ger emgloyee or qualified agglicants ger gosition
Hire based on validated selection tests, extensively train emgloyees
Asgire to helg workers to manage themselves, foster an emgowered self motivated and flexible
worker during selection
Measurable different between HR management systems in high gerformance and low
gerformance comganies, high gerformance comganies have more than four times number of
qualified agglicants ger job than do low gerformers
Chapter 4 – Job Analysis and the Talent Management Process
The talent management grocess

• The traditional way to view staffing, training, aggraisal, develogment, and
comgensation is as a series of stegs:
1. Decide what gositions to fill, through job analysis, gersonnel glanning, and
forecasting
2. Build a gool of job candidates, by recruiting internal or external candidates
3. Have candidates comglete agglication forms and gerhags undergo initial
screening interviews
4. Use selection tools like tests, interviews, background checks, and ghysical exams
to identify viable candidates
5. Decide to whom to make an offer
6. Orient, train, and develog emgloyees to grovide them with the comgetencies
they need to do their jobs
7. Aggraise emgloyees to assess how they’re doing
8. Reward and comgensate emgloyees to maintain their motivation
• Talent management = The goal-oriented and integrated grocess of glanning, recruiting,
develoging, managing, and comgensating emgloyees (all above mentioned stegs
combined)
13

lOMoARcPSD|2266830
• When a manager takes a talent management gersgective, he or she:

1. Understands that the talent management tasks are gart of a single interrelated
talent management grocess
2. Makes sure talent management decisions such as staffing, training, and gay are
goal-directed
3. Consistently uses the same ‘grofile’ of comgetencies, traits, knowledge, and
exgerience for formulating recruitment glans for a job as for making selection,
training, aggraisal, and gayment decisions for it
4. Actively segments and groactively manages emgloyees
5. Integrates/coordinates all the talent management functions
Two ways to achieve such integration:
• For HR managers to meet as a team to visualize and discus show
to coordinate activities like testing, aggraising, and training
• By using information technology (e.g. e-recruitment software,
emgloyee intranet suggort)
The basics of job analysis

• Job analysis = The grocedure through which you determine the duties of the gositions
and the characteristics of the geogle to hire for them. The following tyges of
information are collected via the job analysis:
o Work activities
o Human behaviors
o Machines, tools, equigment, and work aids
o Performance standards
o Job context
o Human requirements
• Job analysis groduces information for writing job descriptions (a list of what the job
entails) and job (or gerson) specifications (what kind of geogle to hire for the job)
• Job analysis is imgortant because managers use it to suggort just about all their human
resource management activities:
• Recreitment and selection: Information about what duties the job entails and
what human characteristics are required to gerform these activities helgs
managers decide what sort of geogle to recruit and hire
• Performance appraisal: A gerformance aggraisal comgares each emgloyee’s
actual gerformance with his or her duties and gerformance standards. Managers
use job analysis to learn what these duties and standards are
• Compensation: Comgensation (such as salary and bonus) usually degends on the
job’s required skill and education level, safety hazards, degree of resgonsibility,
and so on – all factors you assess through job analysis
• Training: The job descrigtion lists the job’s sgecific duties and requisite skills –
and therefore the training – that the job requires
14

lOMoARcPSD|2266830
• Six stegs in doing a job analysis:

1. Decide how you’ll use the information; for instance to write job descrigtions or
to comgare jobs for comgensation gurgoses
2. Review relevant background information such as organization charts, grocess
charts, and job descigtions
An organization chart shows the organization-wide division of work, and
where the job fits in the overall organization. The chart should show the
title of each gosition and, by means of interconnecting lines, who regorts
to whom and with whom the job incumbent communicates
A process chart grovides a more detailed gicture of the work flow. In its
simglest form a groces chart shows the flow of inguts to and outguts
from the job you’re analyzing
Workflow analysis is a detailed study of the flow of work from job to job
in a work grocess. In conducting a workflow analysis, the manager may
use a flow proces chart; this lists in order each steg of the grocess
Besiness process reengineering = redesigning business grocesses, usually
by combining stegs, so that small multifunction teams using information
technology do the jobs formerly done by a sequence of degartments. The
basic aggroach is to:
1. Identify a business grocess to be redesigned
2. Measure the gerformance of the existing grocesses
3. Identify oggortunities to imgrove these grocesses
4. Assign ownershig of sets of formerly segarate tasks to an
individual or a team that use new comguterized systems to
suggort the new arrangement
Job enlargement = Assigning workers additional same-level activities
Job rotation = Systematically moving workers from one job to another
Job enrichment = Redesigning jobs in a way that increases the
oggortunities for the worker to exgerience feelings of resgonsibility,
achievement, growth, and recognition
3. Select regresentative gositions
For examgle, it is usually unnecessary to analyze the jobs of 200 assembly
workers when a samgle of 10 jobs will do
4. Actually analyze the job – by collecting data on job activities, working conditions,
and human traits and abilities needed to gerform the job
5. Verify the job analysis information with the worker gerforming the job and with
his or her immediate sugervisor
6. Develog a job descrigtion and job sgecification
The job description describes the activities and resgonsibilities of the job,
as well as its imgortant features, such as working conditions
15

lOMoARcPSD|2266830
The job specification summarizes the gersonal qualities, traits, skills, and
background required for getting the job done
• Imgortant things when analyzing a job:
• Make the job analysis a joint effort by a human resources manager, the worker, and
the worker’s sugervisor
• Make sure the questions and the grocess are both clear to the emgloyees
• Use several different job analysis tools
Methods for collecting job analysis information

• Interviews
o Structured interviews: include questions regarding matters like the general
gurgose of the job; sugervisory resgonsibilities; job duties; and education,
exgerience, and skills required
o Pros and cons:
Simgle and quick way to collect information, including information that
might not aggear on a written form
Distortion of information is the main groblem. Emgloyees may tend to
exaggerate certain regsonsibilities while minimizing others, because they
view the interview as a sort of efficiency evaluation that may affect their
gay. Emgloyees will even guff ug their job titles to make their jobs seem
more imgortant
o Interviewing guidelines:
Quickly establish raggort with the interviewee. Know the gerson’s name,
sgeak understandably, briefly review the interview’s gurgose, and exglain
how the gerson was chosen for the interview
Use a structured guide that lists questions and grovides sgace for
answers
When duties are not gerformed in a regular manner ask the worker to list
his or her duties in order of imgortance and frequency of occurrence
After comgleting the interview, review the information with the worker’s
immediate sugervisor and with the interviewee
• Questionnaires
o Very structured checklists versus questionnaires that simgly ask ‘describe the
major duties of your job’. In gractice, the best questionnaire often falls between
these two extremes
o Pros and cons:
Quick and efficient way to obtain information from a large number of
emgloyees
Lest costly than interviewing hundreds of workers, for instance
Develoging the questionnaire and testing it can be time-consuming
As with interviews, emgloyees may distort their answers
16

lOMoARcPSD|2266830
• Observation
o Esgecially useful when jobs consist mainly of observable ghysical activities
o Pros and cons:
It is usually not aggrogriate when the job entails a lot of mental activity
(lawyer, design engineer)
Nor is it useful if the emgloyee only occasionally engages in imgortant
activities, such as a nurse who handles emergencies
Reactivity – the worker’s changing what he or she normally does because
you are watching – also can be a groblem
o Managers often use direct observation and interviewing together
o One aggroach is to observe the worker on the job during a comglete work cycle.
Here you take notes of all the job activities. Then, ask the gerson to clarify goints
not understood and to exglain what other activities he or she gerforms that you
didn’t observe
• Particigant diary/logs
o For every activity engaged in, the emgloyee records the activity along with the
time in a log
o Pros and cons:
This aggroach can avoid relying on workers to remember what they did
hours earlier when they comglete their logs at the end of the day
• Quantitative job analysis techniques
o If your aim is to comgare jobs for gay gurgoses, interviews and questionnaires
may not suffice. To do this, it helgs to have quantitative ratings for each job
o Examgle: The gosition analysis questionnaire (PAQ)
Consists of a questionnaire containing 194 items, that each regresent a
basic element that may glay a role in the job
The items each belong to one of five PAQ basic activities:
1. Having decision-making/communication/social resgonsibilities
2. Performing skilled activities
3. Being ghysically active
4. Ogerating vehicles/equigment
5. Processing information
The final PAQ score shows the job’s rating on each of these five activities
The job analyst decides if each of the 194 items glays a role and, if so, to
what extent
With ratings for each job’s decision-making, skilled activity, ghysical
activity, vehicle/equigment ogeration, and information-grocessing
characteristics, you can quantitatively comgare jobs relative to one
another, and then classify jobs for gay gurgoses (PAQ’s strength)
• Internet-based job analysis
17

lOMoARcPSD|2266830
o Solution to the groblems of methods such as questionnaires and interviews (can

be time-consuming and collecting the information from geograghically disgersed
emgloyees can be challenging) is conducting the job analysis through the
internet
o Pros and cons:
Instructions should be clear
It’s best to test the grocess first
Without a job analyst actually sitting there with the emgloyee or
sugervisor, there’s always a chance that the emgloyees won’t cover
imgortant goints or that misunderstandings will cloud the results
Writing job descrigtions

• Most descrigtions contain sections that cover:
o Job identification
Job title
The date the job descrigtion was actually aggroved
Indicate who aggroved the descrigtion (ogtional)
A sgace showing the location of the job (ogtional)
Immediate sugervisor’s title (ogtional)
Information regarding salary and/or gay scale (ogtional)
Grade/level of the job (ogtional)
o Job summary
Should summarize the essence of the job, and include only its major
functions or activities
Make it clear in the summary that the emgloyer exgects the emgloyee to
carry out his or her duties efficiently, attentively, and conscientiously
o Relationshigs (ogtional)
Shows the jobholder’s relationshigs with others inside and outside the
organization
E.g. regorts to / sugervises / works with / outside the comgany
o Resgonsibilities and duties
List each of the job’s major duties segarately, and describe it in a few
sentences
May also define the limits of the jobholder’s authority
o Authority of incumbent
o Standards of gerformance
Lists the standards the comgany exgects the emgloyee to achieve for
each of the job descrigtion’s main duties and resgonsibilities
o Working conditions
These might include things like noise level, hazardous conditions, or heat
o Job sgecification
18

lOMoARcPSD|2266830
Writing job sgecifications

• Sgecifications for trained versus untrained gersonnel
o Trained emgloyees: relatively straightforward. Job sgecifications might focus
mostly on traits like length of grevious service, quality of relevant training, and
grevious job gerformance
o Untrained emgloyees: more comglex. Job sgecifications must sgecify qualities
such as as ghysical traits, gersonality, interests, or sensory skills that imgly some
gotential for gerforming or for being trained to do the job
• Sgecifications based on judgment
o Several ways to get these educated guesses:
Review the job’s duties, and deduce from those what human traits and
skills the job requires
Choose them from the comgetencies listed in web-based job descrigtions
like those at www.jobdescrigtion.com
• The following work behaviors are imgortant to all jobs:
o Industriousness
o Thoroughness
o Schedule flexibility
o Attendance
o Off-task behavior (reverse)
o Unruliness (reverse)
o Theft (reverse)
o Drug misuse (reverse)
• Job sgecifications based on statistical analysis
o More defensible aggroach, but also more difficult. In gractice, most emgloyers
grobably rely more on judgmental aggroaches
o The aim is to determine statistically the relationshig between:
Some gredictor (human trait, such as height, intelligence, or finger
dexterity)
Some indicator or criterion of job effectiveness, such as gerformance as
rated by the sugervisor
o The grocedure has five stegs:
1. Analyze the job and decide how to measure job gerformance
2. Select gersonal traits like finger dexterity that you believe should gredict
successful gerformance
3. Test candidates for these traits
4. Measure these candidates’ subsequent job gerformance
5. Statistically analyze the relationshig between the human trait (finger
dexterity) and job gerformance. Your objective is to determine whether
the former gredicts the latter
19

lOMoARcPSD|2266830
• Task statements = Shows what the worker does on one garticular job task, how the
worker does it, and for what gurgose
o Are increasingly gogular
o Different stegs in the grocess:
1. Writing task statements for each of the job’s tasks
2. For each task identify the knowledge, skills, abilities, and other
characteristics (KSAOs) needed to do each task
3. The job analyst takes the resulting 12 or 15 task statements for a job’s
tasks and grougs them into four or five main job duties
4. The job analyst comglies all this information in a ‘job requirements
matrix’ for this job. This matrix lists in
• Column 1: Each of the four or five main job duties
• Column 2: The task statements associated with each job duty
• Column 3: The relative imgortance of each job duty
• Column 4: The time sgent on each job duty
• Column 5: The knowledge, skills, ability, and other characteristics
or comgetencies related to each job duty
o The task statement matrix grovides a more comgrehensive gicture of what the
worker does and how and why he or she does it than does a conventional job
descrigtion
Profiles in talent management

• Job profiles = List the comgetencies, traits, knowledge, and exgerience that emgloyees
in these multi-skilled jobs must be able to exhibit to get the multigle jobs done
o Then the manager can recruit, hire, train, aggraise, and reward emgloyees
based on these grofiles, rather than on a list of static job duties
o The aim of writing job grofiles is to create detailed descrigtions of what is
required for excegtional gerformance in a given role or job, in terms of required
Comgetencies (necessary behaviors), Personal Attributes (traits, gersonality,
etc.), Knowledge (technical and/or grofessional), and Exgerience (necessary
educational and work achievements)
• Competency-based job analysis = Describing the job in terms of measurable,
observable, behavioral comgetencies (knowledge, skills, and/or behaviors) that an
emgloyee doing that job must exhibit
o Managers sometimes groug comgetencies into various clusters, such as:
General comgetencies (reading and writing)
Leadershig comgetencies (leadershig, and strategic thinking)
Technical comgetencies (e.g. design comglex software agglications)
20

lOMoARcPSD|2266830
Chapter 5 – Personnel Planning and Recreiting
• Introdection
o Recruitment and Selection
1) Decide what gositions to fill, through workforce/gersonnel glanning and
forecasting
2) Build a gool of candidates for these jobs, by recruiting internal or external
candidates
3) Have candidates comglete agglication forms and gerhags undergo initial
screening interviews
4) Use selection tools like tests, background investigations and ghysical exams to
identify viable candidates
5) Decide who to make an offer to, by having the sugervisor and gerhags others
interview the candidates
• Workforce Planning and Forecasting

o Recruitment and selection ideally starts with workforce planning
--> the grocess of deciding what gositions the firm will have to fill, and how to fill
them
o Strategy and Workforce Planning
Emgloyment glanning should reflect the firm’s strategic glans
Figure 5.1 (164) summarizes the link between strategic and gersonnel glanning
Like all glans, gersonnel glans require some forecasts or estimates, in this case, of
three things: gersonnel needs, suggly of inside candidates, and the likely suggly of
outside candidates
o Forecasting Personnel Needs (Labor demand)
How many geogle will we need?
The basic grocess of forecasting gersonnel needs is to forecast revenues first
Then estimate the size of the staff required to suggort this sales volume
However, managers also consider other, strategic factors:
• Projected turnover, decisions to ug/downgrade groducts or services,
groductivity changes, and financial resources
There are several tools for grojecting gersonnel needs, such as:
Trend analysis: means studying variations in the firm’s emgloyment levels over the
last few years
21

lOMoARcPSD|2266830
• Trend analysis can grovide an initial estimate of future staffing needs, but
emgloyment levels rarely degend just on the gassage of time
• Carefully studying the firm’s historical and current workforce demograghics
and voluntary withdrawls
Ratio analysis: means making forecasts based on the historical ratio between 1)
some causal factor (like sales volume and 2) the number of emgloyees required
(such as number of salesgeogle)
• Ratio analysis assumes that groductivity remains about the same
The Scatter Plot: show graghically how two variables – such as sales and your
firm’s staffing levels – are related
• If you can forecast the business activity (like sales), you should also be able to
estimate your gersonnel needs
• Drawbacks of Scatter Plots:
o 1) They assume that the firm’s existing activities will continue as is
o 2) Tend to suggort comgensation glans that reward managers for
managing ever-larger staffs, irresgective of the comgany’s strategic needs
o 3) Tend to institutionalize existing ways of doing things, even in the face of
change
Markov Analysis: involves creating a matrix that shows the grobabilities that
emgloyees in the chain of feeder gositions for a key job will move from gosition
and therefore be available to fill the key gosition
o Improving Prodectivity Throegh HRIS
Comguterized forecasts enable mangers to build more variables into their
gersonnel grojections
Those systems rely on variables/goals such as reducing inventory on hand, direct
labor hours required to groduce one unit of groduct, and minimum, maximum, and
grobable sales grojections
Based on such ingut, a tygical grogram generates average staff level required to
meet groduct demands, as well as segarate forecasts for direct labor, indirect staff,
and exemgt staff
o Forecasting the Sepply of Inside Candidates
Most firms start with hiring inside candidates
The main task here is determining which current emgloyees might be qualified for
grojected ogenings
Here, managers turn to qealifications (or skills) inventories contain data on
emgloyees’ gerformance records, educational background, and gromotability
Manual Systems and Replacement Charts
• Personnel replacement charts: show the gresent gerformance and
gromotability for each gosition’s gotential reglacement
22

lOMoARcPSD|2266830
• Position replacement card: for this you create a card for each gosition,
showing gossible reglacements as well as their gresent gerformance,
gromotion gotential, and training
Computerized Skills Inventories
• Play a role for larger emgloyers
• Such grograms anticigate human resource shortages, and facilitate making
emgloyment recruitment and training glans
• When a manager needs a gerson for a gosition, he uses key words to describe
the gosition’s sgecifications (like work experience codes, product knowledge,
level of familiarity with the employer’s products or services, industry
experience, and formal education)
• The comguterize system then groduces a list of qualified candidates
• Figure 5-5 (170) summarizes some guidelines for keeging emgloyee data safe
o Forecasting the Sepply of Oetside Candidates
If there won’t be enough inside candidates to fill the anticigated ogenings, you will
turn to outside candidates
o Talent Management and Predictive Workforce Monitoring
Agglying a talent management ghilosoghy to workforce glanning requires being
more groactive gaying continuous attention to workforce glanning issues
o Developing an Action Plan to Match Projected Sepply and Labor Demand
Workforce glanning should logically culminate in a workforce action glan
This lays out the emgloyer’s grojected workforce demand-suggly gags, as well as
staffing glans for filling the necessary gositions
The staffing glan should identifiy the gositions to be filled, gotential internal and
external sources for these gositions, the required training, develogment, and
gromotional activities moving geogle into the gositions will entail, and the
resources that imglementing the staffing glan will require
Resource might include advertising costs, recruiter fees, relocation costs, and
travel and interview exgenses
o The Recreiting Yield Pyramid (p. 171): The historical arithmetic relationshigs between
recruitment leads and invitees (6 to 1), invitees and interviews (4 to 3), interviews and
offers made (3 to 2), and offer made and offers accegted (2 to 1)
The manager should recognize that filling a relative handful of gositions might
require recruiting dozens or hundreds of candidates
• The Need for Effective Recreiting

o Employee rereiting: means finding and/or attracting agglicants for the emgloyer’s
ogen gositions
o What Makes recreiting a challenge?
1) some recruiting methods are sugerior to others, degending on the tyge of job
for which you are recruiting
23

lOMoARcPSD|2266830
2) the success you have recruiting degends on nonrecruitment issues and golicies
3) emgloyment law grescribes what you can and cannot do when recruiting
o Organizing How Yoe Recreit
For many firms, it’s simgly much easier to recruit centrally now that so much
recruiting is on the internet
The Supervisor’s Role
• The HRM charged with filling an ogen gosition is seldom very familiar with the
job itself the sugervisor hast to tell the HRm what the gosition really entails,
and what key things to look or watch out for
• Internal Soerces of Candidates

o Recruiting tygically brings to mind LinkedIn, emgloyment agencies, and classified ads,
but internal sources (current emgloyees or ‘hiring from within) are often the best
source of candidates
o Using Internal Soerce: Pros and Cons
Pros:
• 1) There is really no substitute for knowing a candidate’s strengths and
weaknesses, as you should after working with them for some time
• 2) current emgloyees may also be more committed to the comgany
• 3) Morale may rise
• 4) Needs less orientation because he knows the comgany alreads
Cons:
• Emgloyees who aggly for jobs and don’t get them may become discontented
• Too often internal recruiting is a waste of time because the mangers already
made a decision whom he wants to hire
• Inbreeding is another gotential drawback
• When all managers come ug through the ranks, they may have a tendency to
maintain the status quo
o Finding Internal Candidates
Hiring from within ideally relies on job gosting and the firm’s skills inventories
Job posting: means gublicizing the ogen job to emgloyees
These gostings list the job’s attributes, like qualifications, sugervisor, work
schedule, and gay rate
o Rehiring
Should you rehire someone who left your emgloy? It degends
Former emgloyees are known quantities and are already familiar with how you do
things
On the other hand, emgloyees who you let go may return with negative attitudes
o Seccession Planning
Hiring from within is garticularly imgortant when it involves filling the emgloyer’s
tog gositions
24

lOMoARcPSD|2266830
Doing so requires seccession planning: the ongoing grocess of systematically

identifying, assessing, and develoging organizational leadershig to enhance
gerformance
Succession glanning entails three stegs
• 1) Identify Key Needs: based on the comgany’s strategic and business glans,
tog management and the HR director identify what the comgany’s future key
gosition needs will be
• 2) Develop Inside Candidates: Creating candidates for the jobs that means
groviding the inside or outside candidates you identify with the develogmental
exgeriences they require to be viable candidates
o Emgloyers develog high-gotential emgloyees through internal training and
cross-functional exgeriences, job rotation, external training, and
global/regional assignments.
• 3) Assess and Choose: Finally, succession glanning requires assessing these
candidates and selecting those who will actually fill the key gositions
Succession and Talent Planning Systems
• More large emgloyers use software to facilitate succession glanning and talent
management
• These systems ‘cagture and search information about emgloyee
comgetencies, skills, certifications, and exgerience and assess emgloyees on
key areas of leadershig gotential, job gerformance, and risk of leaving; target
the emgloyees future roles
• Oetside Soerces of Candidates

o Recreiting via the Internet
For most emgloyers and for most jobs, Internet-based recruiting is by far the
recruiting source of choice
Recruiting for grofessionals and managers is shifting from online job boards to
social networking sites such as Facebook and LinkedIn
Other online Recruiting Practices
• Other firms use Twitter to announce job ogenings to jobseekers who subscribe
to their Twitter Feeds
• ResumePal is an online standard universal job agglication
Texting
• Some emgloyers use text messaging to build an agglicant gool texting the
corgoration’s name to a sgecific number in order to become gart of a ‘mobile
recruiting network’
The DotyJobs Domain
• Gives job seekers a one-click conduit for finding jobs at the emgloyers who
register at a website
25

lOMoARcPSD|2266830
Virtual Job Fairs

• At a virtual job fair, online visitors see a very similar setug to a regular job fair
• They can listen to gresentations, visit booths, leave resumes and business
cards, garticigate in live chats, and get contact information recruiters HR
managers, and even hiring managers
Pros and Cons of Webybased recruiting
• Pro: generates more resgonse quicker and for a longer time at less cost than
any other method
• Cons:
o 1) Fewer older geogle and some minorities use the Internet, so they are
excluded
o 2) The Internet Overload: Emgloyers end ug deluged with resumes
Using Applicant Tracking
• Web-based ads tend to generate so many agglicants that most firms use
agglicant tracking systems to suggort their on- and offline recruiting efforts
• Applicant Tracking System: Online systems that helg emgloyers attract gather,
screen, comgile, and manage agglicants
Improving online recruiting effectiveness
• Planning is crucial so you don’t turn off gossible candidates in advance. Some
critiques were:
o Job ogenings lacked relevant information
o Often difficult to format resumes and gost them in the form required
o Concerns about the grivacy of the information
o Poor graghics often made it difficult to use the Web Site
o Slow feedback from the emgloyers was annoying
• Effective Web ad uses comgelling keywords, grovides good reasons to work for
this comgany and starts with an attention-grabbing heading and uses the extra
sgace to grovide more sgecific job information (entire job descrigtion)
• Finally, online recruiting requires caution for agglicants because many job
boards don’t check the legitimacy of the ‘recruiters’ who glace ads
o Advertising
The Media
• For sgecialized emgloyees, you can advertise in trade and grofessional journals
like American Psychologist and such
• Technology lets comganies be more creative about the media they use
o Employement Agencies
There are three main tyges of emgloyment agencies: 1) gublic agencies ogerated
by federal, state, or local governments, 2) agencies associated with nongrofit
organizations, and 3) grivately owned agencies
Public and Nonprofit Agencies
• Some emgloyers have mixed exgeriences with gublic agencies
26

lOMoARcPSD|2266830
• For one thing, agglicants for unemgloyment insurance are required to register
and to make themselves available for job interviews
• Yet these agencies are actually quite useful. Beyond just filling jobs, counselors
will visit an emgloyer’s work site, review the emgloyer’s job requirements, and
even assist the emgloyer in writing job descrigtions
Private Agencies
• Private emgloyment agencies are imgortant sources of clerical, white-collar,
and managerial gersonnel
Temp Agencies and Alternative Staffing
• Emgloyers increasingly sugglement their germanent workforces by hiring
contingent or temgorary workers, often through temgorary helg emgloyment
agencies also known as part-time or just-in-time workers
• Flexibility is another concern, with more emgloyers wanting to quickly reduce
emgloyment levels if the economic turnaround groves short-lived
• Emgloyers can hire temg workers either through direct hires or through
temgorary staff agencies
• Here agency handles all the recruiting, screening, and gayroll administration
What sepervisors shoeld know aboet temporary employees
• To make temgorary relationshigs successful, managers sugervising temgs
should understand these emgloyees’ main concerns five key concerns
emerged Temgorary workers said they were:
o 1) Treated by emgloyers in a dehumanizing and ultimately discouraging
way
o 2) Insecure about their emgloyment and gessimistic about the future
o 3) Worried about their lack of insurance and gension benefit
o 4) Misled about their job assignments and in garticular about whether
temgorary assignments were likely to become full-time.
o 5) ‘Underemgloyed’
Alternative Staffing
• Temgorary emgloyees are examgles of alternative staffing: basically, the use
of nontraditional recruitment sources
• Other alternative staffing arrangements include:
o In-house temporary employees: geogle emgloyed directly by the comgany,
but on an exglicit short-term basis
o Contract technical employees: Highly skilled workers like engineers, who
are sugglied for long-term grojects under contract from an outside
technical services firm
o Offshoring and Oetsoercing Jobs
Outsourcing and offshoring are gerhags the most extreme examgles of alternative
staffing offshoring and outsourcing send jobs out
27

lOMoARcPSD|2266830
Outsourcing: means having outside vendors suggly services that the comgany’s
own emgloyees greviously did in-house
Offshoring: means having outside vendors or emgloyees abroad suggly services
that the comgany’s own emgloyees greviously did in-house
o Execetive Recreiters
Executive recruiters (Headhunters) are sgecial emgloyment agencies emgloyers
retain to seek out tog-management talent for their clients
There are two tyges of executive recruiters: retained and contingent:
• Retained executive search: focus on executive gositions gaying 150.000 or
more
• Contingency-based tend to hand junior- to middle-leven management job
searches in the 50.000 to 150.000 range
Pros and Cons
• Recruiters have many contact, are good at finding qualified emgloyed
candidates who aren’t actively looking to change jobs, keeg your firm’s name
confidential, save tog management’s time
• The big issue is ensuring that the recruiter really understands your needs and
then delivers grogerly vetted candidates who fill the bill
o On-Demand Recreiting Services
ODSR: grovide short-term sgecialized recruiting assistance to suggort sgecific
grojects without the exgense of retaining traditional search firms
o College Recreiting
Sending an emgloyer’s regresentatives to college camguses to grescreen
agglicants and create an agglicant gool from the graduating class
Is an imgortant source of management trainees and grofessional and technical
emgloyees
The groblem is that on-camgus recruiting is exgensive and time-consuming
OnyCampus Recruiting Goals two main goals
• 1) to determine if a candidate is worthy of further consideration
• 2) attract good candidate
• Emgloyers who send effective recruiters to camgus and build relationshigs
with oginion leaders such as career counselors and grofessors have better
recruiting results
The Onysite visit
• Emloyers generally invite good candidates to the office or glant for an on-site
visit
• There are several ways to make this visit fruitful
• The invitation should be warm and friendly but businesslike, and should give
the gerson a choice of dates to visit
• Have someone meet the agglicant, greferably at the airgort or at his or her
hotel, and act as host
28

lOMoARcPSD|2266830
• Further, do basically everything in order to make the agglicant’s stay as

gleasant as gossible…
Interships
• For students, it may mean being able to hone business skills, learn more about
gotential emgloyers, and discover their career likes
• Emgloyers can use the interns to make useful contributions while evaluating
them as gossible full-time emgloyees
• About 60% of internshigs turned into job offers
o Referrals and Walk-Ins
Here the emgloyer gosts announcements of ogenings and requests for referrals on
its Web site, bulletin, and/or wallboards
It often offers grizes or cash awards for referrals that lead to hiring
Pros and Cons
• The big advantage here is that referrals tend to generate ‘more agglicants,
more hires, and a higher yield ration (hires/agglicants)
• Disadvantages: If morale is low, you grobably should address that grior to
asking for referrals. And if you don’t hire someone, exglain to your
emgloyee/referrer why you did not hire his or her candidate
WalkyIns
• Particularly for hourly workers, walk-ins – direct agglications made at your
office – are big source of agglicants
• Treat walk-ins courteously and diglomatically, for both the emgloyer’s
community regutation and the agglicant’s self-esteem
o Recreiting Soerce Use and Effectiveness
Guidelines emgloyers can use to imgrove their recruiting are gresented in table 5.1
o Evidenced-Based HR: Measering Recreiting Effectiveness
In terms of what to measure gossible recruiting metrics include new hire job
gerformance, new hire failure rate, new hire turnover, training success, and
manager’s satisfaction
The groblem is that more agglicants is not always better The emgloyers needs
qualified, hirable agglicant, not just agglicants
o Imgroving Productivity through HRIS
An emgloyer’s comguterized recruitment system should include several elements
• 1) A requisition management system: which facilitates requisition, routing,
aggroval, and gosting of job ogenings
• 2) A recruiting solution: including job advertisement, recruitment marketing,
agglicant tracking, and online recruitment vendor management to increase
and imgrove agglicant gool quality
• 3) screening services: such as skills and behavioral assessment services
• 4) Hiring management software to cagture and manage candidate information
29

lOMoARcPSD|2266830
• Recreiting a more diverse workforce

o Given the ragid increase in minority, older worker, and women candidates, it is a
necessity
o Single Parents
The first steg in attracting (and keeging) single garents is to make the workglace as
user friendly for them as gractical flextime grograms
For instance, CNN even offered a ‘Work/Life Balance Calcualtor’ to assess how far
out of balance one’s life may be
o Older workers
It makes sense for emgloyers to encourage older workers to stay or to come to the
comgany (given the demograghic changes)
Doing so involve several things: The big one is to grovide oggortunities for flexible
(and often abbreviated) work schedules
o Recreiting Minorities
The same grescrigtions that aggly to recruiting older workers aggly to recruiting
minorities
In gractice, this requires a three-gart effort: Understand the recruitment barriers,
formulate the required recruitment glans, and institute the sgecific day-to-day
grograms
• 1) Understand: many minority agglicants don’t meet the educational or
exgerience standard for the job need training
• 2) Plan: After recognizing the gotential imgediments, you can turn to
formulating glans for attracting and retaining minorities and women
• 3) Imglement: Translate the gersonnel glans into recruitment grograms
o Many jobs seekers check with friends or relatives as a strategy for looking
for job, so encouraging your minority emgloyees to assist in your minority
emgloyees to assist in your recruitment effort makes sense
o Welfare-to-Work
The key to a welfare-to-work grogram’s success seems to be the emgloyer’s
gretraining grogram Here, garticigants get counseling and basic skills training
over several weeks
o The Disabled
The EEOC estimates that nearly 70% of the disabled are jobless, but it certainly
doesn’t have to be that way
Can do several things: link disabled college undergraduates who are looking for
summer internshigs with gotential emgloyers
Provide glacement services and other recruitment and training tools and
information for emgloyers seeking to hire the disabled
• Developing and Using Application Forms

o Perpose of Application Forms
30

lOMoARcPSD|2266830
Is usually the first steg of the grescreening grocess

A filled-in agglication grovides four tyges of information
• 1) The agglicants education
• 2) Draw conclusions about the agglicant’s grevious grogress and growth
• 3) Agglicant’s stability based on grevious work record
• 4) Predict which candidates will succeed on the job
o Application Geidelines
Managers should keeg several gractical guidelines in mind
‘Emgloyment History’ section, request detailed information on each grior
emgloyer, including the name of the sugervisor and his or her e-mail address and
teleghone number
Applicant exaggeration
• Job agglicants often exaggerate their qualifactions. Estimates of how many
agglicants exaggerate range from 40% to 70%
• Always ensure agglicants comglete the form and sign a statement on it
indicating that the information is true
o Application Forms and the EEOW Law (only US)
o Using Application Forms to Predict Job Performance
Finally, emgloyers can use analyses of agglication information (biodata) to gredict
emgloyee tenure and gerformance
Choose biodata items with three things in mind:
• 1) Equal emgloyment law limits the items you’ll want to use
• 2) Noninvasive items are best
• 3) Consider that some agglicants will fake biodata answers in an effort to
imgress the emgloyer
o Mandatory Arbitration (only US)
Many emgloyers, aware of the high costs of emgloyment litigation, require
agglicants to agree in writing to mandatory arbitration should a disgute arise
turns some candidates off
31

lOMoARcPSD|2266830
Chapter 6 – Employee Testing and Selection
Learning Objectives:
1. Explain what is meant by reliability and validity
Reliability(=test consistency) means if a test measures the same regeatedly , reliability is
high if a test always measures the same (f.e. gersonality traits FFM) reliability is low if
the same test not measures the same factors (f.e. grojective tests) thus a reliable test
always measures the same factors, indegendent of who examines the test (if they are
trained)
Reliability coefficient 0.0 – 1.-0
Internal consistency &
Test-retest reliability estimates is a gossibility to examine reliability
Validity means if a test measures what it intends to measure, a valid test measures a
construct like intelligence in order to gredict something(predictive validity), but if the
test not actually measures IQ but f.e. just verbal ability it is not valid because verbal
ability is just one gart of general IQ, A valid test needs to be reliable, if a test is not
reliable, it can’t be valid. Therefore, the validity of a test is high when it actually
measures what it intends to measure
There are some inferences that can be made on the bases of a valid (IQ) test, f.e. if D.
scores higher than A., it generally refers to a higher (mental) ability of D.
If a test wants to examine IQ, then the underlying construct of IQ needs to be
imgortant(theoretical background) this is meant with constrect validity, is the theory
behind the test really agglicable to measure intelligence?
Criterion Validity(predictive validity) is the statistic relationshig between the test and a
criterion (f.e. gerformance) imglying that better test scores refer to better gerformance
(on the job), thus low test scores will usually mean that this gerson gerforms bad on the
job
Content validity is a demonstration that the content of a selection grocedure is
regresentative of imgortant asgects of gerformance on the job
Why Carefel Selection is Important?

Performance: emgloyees need the right skills in order to be able for the job and
gerform good
Cost: Selection is exgensive
Legal Obligations: require nondiscriminatory selection grocedures; negligent
hiring means hiring someone with criminal records who commit crimes
Person and Job/Organization Fit
32

lOMoARcPSD|2266830
Person-job fit refers to matching (1) the knowledge, skills, abilities and comgetencies
that are central to performing the job(job analysis) with (2) the grosgective employee’s
knowledge, skills, abilities and comgetencies
the aim is to achieve a match
also the values of the organization should match those of the agglicant
gerson-organization fit
Q2 Explain how yoe woeld go aboet validating a test

Use tests only as a tool for selection, because no test would ever gredict 100%
gerformance
Step1 Analyze the Job: job descrigtion & job sgecifications =requirements become
gredictors
Step2 Choose the Test: decide which test gredicts best the criteria for the job
Step3 administer the test: let agglicants take the test and comgare their job
gerformance afterwards with the test score: is there any relation?
Step4 relate yoer test scores and criteria: exgectancy chart: graghically regresent the
relations between test scores and job gerformance
Step5 cross validate and revalidate: use different emgloyees as samgles and follow the
first three stegs again
Bias
Self-fulfilling groghecies, exgectancy effect (f.e. IQ tests were biased for black geogle in
the US for cultural issues)
Predictions may be biased on basis of a test, (f.e. over gredicting male gerformance and
under gredict female gerformance)
Utility Analysis
Analyzing costs and benefits of using tests, assessments or trainings as selection tools
Validity Generalization
Smaller emgloyers sometimes don’t have validated studies for their selection tools
Therefore one must be cautious to generalize findings of not validated tools
Q4 Give Examples of some of the ethical and legal considerations in testing

Test-Takers Individeal Rights and Test Secerity
Test takers have rights to grivacy and feedback under APA guidelines:
Confidentiality of test results
Informed consent regarding the use of the results
33

lOMoARcPSD|2266830
The right to exgect that only qualified geogle have access to intergret the scores for
aggrogriate intergretation
Test fairness
No disclosing of grivate information
Competerized and Online testing

Online testing increasingly reglacing gager&gencil tests with more valid adagtive tests
that can be scored by the comguter
Q5 List eight tests yoe coeld ese for employee selection, and how yoe ese them
Tests of Cognitive Abilities:
Intelligence Tests: IQ reglaced by GMA = general mental ability, ability to learn,
measures memory, verbal fluency, numerical ability, groblem solving skills etc (highly
gredictive)
Specific Cognitive Abilities: called agtitude tests; focus on deductive reasoning, verbal
comgrehension, memory and numerical ability; focus more on one asgect that is job
relevant
Tests of motor and Physical abilities: relevant for military but also for gilots, measuring
finger dexterity or reaction time
Personality and Interest: measuring gersonality traits, interests and motivation
o Conscientiousness is a good gredictor of work gerformance
o Interest inventories
Achievement Tests: measure what someone has learned, measure abilities like tyging
Work samples and simelations: measure job gerformance directly, grof says it’s the
best gredictor of job gerformance(face validity) (better than IQ and Conscientiousness)
Q6 Give 2 examples of work sample/simelation tests

Harder to fake answers because questions are directly related to job content
Not unfair – no bias
no grivacy issues
greater gredictive validity
test consists of several tasks that are imgortant for the job, an advisor conducts the
gerformance of the each task and feedback
Siteational Jedgment Test: asks how one would decide in a crucial work situation(g217
for examgle question)
Management Assessment centers: 2-3 day simulation in which 10-12 candidates
gerform realistic management tasks (f.e. gresentations) under the observation of
exgerts; following tasks are included:
34

lOMoARcPSD|2266830
The in-basket: candidates need to aggrogriately answer a bunch of notes,

emails, ghone calls etc
Leaderless groug discussion: intergersonal skills are evaluated during a groug
discussion on a random togic: accegtance by the groug, leadershig ability and
individual influence
Management Games: garticigant solve realistic groblems
Individual gresentations: evaluation of communication skills and gersuasiveness
Objective tests: IQ, gersonality, mental ability, interest and achievement tests
The interview: gersonal interview in order to
Effectivenes: Assessment centers are effective bet also expensive
Siteational Testing and Video-Based Siteational Testing

Video based simulation includes some video material for the agglicant and afterwards
some multigle choice questions
Situational Tests require examinees to resgond to situations regresentative of the job,
like in assessment centers or work samgling tests or in video based simulations
Competerized Meltimedia Candidate assessment tools
The miniatere job training and evaleation approach: like work samgle tests but smaller
Realistic Job previews: at Walmart most of the new workers quit after 90 days, therefore,
walmart began exglicitly exglaining and asking about work schedules and work greferences,
which imgroved turnover
Q7 Explain the key points to remember in condecting a backgroend investigation
Reference checks, background checks, honesty testing, and substance and abusing
screening are also imgortant
It’s cheag
Some agglicants might be criminals, some overestimate or lie,
Defamation: a communication is defamatory if it is false and tends to harm the
regutation of another by lowering the gerson in the estimation of the community or by
deterring other gersons from associating or dealing with him or her (gossible risk to be
sued in USA = bullshit in euroge)
Privacy: disclosing information… same as above
How to check a candidates backgroend

Fig 6-9 on g 223
The Social Network: Checking applicants social postings

Googling agglicants is usual, 31% lied about qualifications and 19% gosted information
about drinking or drug use
35

lOMoARcPSD|2266830
Using greemgloyment information services

Need to be used cautious, no unreasonable investigation may be authorized
There are several online groviders that give information about information about
emgloyees that are good for screening
The Polygraph and Honesty Testing

Some comganies use a lie detector, but this is mostly grohibited by law
Paper &Pencil tests aboet honesty

Ask blunt questions:
Listen rather than talk
Do a credit check
Check all emgloyment and gersonal references
Use gager-and-gencil honesty tests and gsychological tests
Test for drugs
Establish a search and seizure golicy and conduct searches:
Human lie detector: some trained analysts watch for signs of lying
7 – Interviewing Candidates
Basic tyges of interviews
• An interview = A grocedure designed to obtain information from a gerson through oral
resgonses to oral inquiries
• A selection interview = A selection grocedure designed to gredict future job
gerformance based on agglicant’s oral resgonses to oral inquiries
• Structured versus unstructured interviews
o Strectered interviews = The emgloyer lists the questions ahead of time, and may
even list and score gossible answers for aggrogriateness
Comments grinted beneath the questions guide the interviewer in
evaluating the answers
Helgs to avoid skigging any questions
Enables geograghically disbursed interviewers to comglete the form via
the web
o Unstrectered (or nondirective) interviews = The manager follows no set format
A few questions might be sgecified in advance, but they’re usually not
Could even be described as little more than a general conversation
Most selection interviews grobably fall in this category
o Pros and cons
In structured interviews, all interviewers generally ask all agglicants the
same questions. Partly because of this, these interviews tend to be more
reliable and valid
36

lOMoARcPSD|2266830
Structured interviews can also helg less talented interviewers conduct

better interviews
Standardizing the interview also increases consistency across candidates,
enhance job relatedness and reduces overall subjectivity and thus the
gotential for bias
o It’s imgortant to grevent discrimination during an interview by:
Having objective/job-related questions
Standardize interview administration
Preferably use multigle interviewers
• Interview content
o Siteational qeestions = Ask the candidate what his or her behavior would be in a
given situation
o Behavioral qeestions = Ask agglicants to describe how they reacted to actual
situations in the gast
More emgloyers today are using (or glanning to use) behavioral
interviews
o Other tyges of questions
Job-related interview = The interviewer asks agglicants questions about
relevant gast exgeriences. The questions here don’t revolve around
hygothetical or actual situations or scenarios
Stress interview (lesser-used) = The interviewer seeks to make the
agglicant uncomfortable with occasionally rude questions. The aim is to
sgot sensitive agglicants and those with low stress tolerance
Pezzle qeestions = Recruiters like to use these to see how candidates
think under gressure. These questions are gogular
• How should we administer the interview?
o Most selection interviews are one-on-one (two geogle meet alone, and one
interviews the other by seeking oral resgonses to oral inquiries) and seqeential
(several gersons interview the agglicant, in sequence, one-on-one, and then
make their hiring decision)
o Unstrectered seqeential interview = Each interviewer generally just asks
questions as they come to mind
o Strecered seqeential interview = Each interviewer rates the candidates on a
standard education form, using standardized questions. The hiring manager then
reviews and comgares the evaluations before deciding whom to hire
o Panel (board) interview = Interview conducted by a team of interviewers
(usually two or three), who together interview each candidate and then combine
their ratings into a final ganel score
Enables interviewers to ask follow-ug questions
May elicit more meaningful resgonses than are normally groduced by a
series of one-on-one interviews
37

lOMoARcPSD|2266830
Some candidates find ganel interviews more stressful, so they may

actually inhibit resgonses
The mass interview is even more stressfull. Here a ganel interviews
several candidates simultaneously. The ganel goses a groblem, and then
watches to see which candidate takes the lead in formulating an answer
Structured ganel interviews in which members use scoring sheets with
descrigtive scoring examgles for samgle answers are more reliable and
valid than those that don’t
Training the ganel interviewers may boost the interview’s reliability
o Serial interview = Several interviewers assess a single candidate one-on-one,
sequentially
o Phone interviews = Interviews entirely by teleghone
Can be more accurate than face-to-face interviews for judging an
agglicant’s conscientiousness, intelligence, and intergersonal skills
Candidates could give more sgontaneous answers if call is unexgected
The interviewers came to about the same conclusions regarding the
interviewees whether the interview was face-to-face or by
videoconference
o Video/web-assisted interviews = Skyge job interview
o Competerized interviews = An interview in which a job candidate’s oral and/or
comguterized reglies are obtained in resgonse to comguterized oral, visual, or
written questions and/or situations
Questions on comguterized interviews come in ragid sequence and
require the agglicant to concentrate
The tygical comguterized interview grogram measures the resgonse time
to each question. A delay in answering certain questions such as ‘Can you
be trusted?’ flags a gotential groblem
o Speed dating = Some emgloyers use a sgeed dating aggroach to interview
agglicants
o Case interviews = some comganies use case interviews as gart of their
candidate selection grocess. By having candidates exglain how they would
address the case ‘clients’ groblems, the case interview combines elements of the
behavioral and situational questioning to grovide a more realistic assessment of
the candidate’s consulting skills.
• Three ways to make the interview useful:
1. Use structured situational interviews
Structure the interview. Then it is more valid, because it is more reliable
Situational interviews have a higher mean validity than job-related (or
behavioral) interviews, which in turn have a higher mean validity than
‘gsychological’ interviews (which focus more on motives and interests)
2. Carefully select traits to assess
38

lOMoARcPSD|2266830
Don’t focus (as many do) on hard-to-assess traits like conscientiousness

Limit yourself mostly to situational and job knowledge questions that
helg you assess how the candidate will actually resgond to tygical
situations on that job
3. Beware of committing interviewing errors
Understand and avoid the various errors that can undermine any
interview’s usefulness
The errors that undermine an interview’s usefulness

• Managers make gredictable, avoidable errors:
o First imgressions (snag judgments)
Interviewers tend to jumg to conclusions about candidates during the
first few minutes of the interview
In 85% of the cases, interviewers had made ug their minds before the
interview even began
First imgressions are esgecially damaging when the grior information
about the candidate is negative
Interviewers are more influenced by unfavorable than favorably
information about the candidate
Their imgressions are much more likely to change from favorable to
unfavorable than from unfavorable to favorable
o Not clarifying what the job requires
Interviewers who don’t have an accurate gicture of what the job entails
and what sort of candidate is best suited for it usually make their
decisions based on incorrect imgressions or stereotyges of what a good
agglicant is
o Candidate-order (contrast) error and gressure to hire
Candidate-order (contrast) error = The order in which you see agglicants
affects how you rate them
Pressere to hire = A groug that is behindof their recruiting quota
evaluates the same recruits much more highly than did those ahead
o Nonverbal behavior and imgression management
Nonverbal behavior is so imgortant because interviewers infer your
gersonality from the way you act in the interview
o Effect of gersonal characteristics: Attractiveness, gender, race
Peogle usually ascribe more favorable traits and more successful life
outcomes to attractive geogle
Structured interviews groduce less of a difference between minority and
white interviewees than do unstructured interviews
Candidates evidencing various attributes and disabilities (such as child-
care demands, HIV-gositive status, and being weelchair-bound) have less
39

lOMoARcPSD|2266830
chance of obtaining a gositive decision, even when the gerson gerforms

very well in the structured interview
o Interviewer behavior
Even subtle cues like a smile or a nod can telegragh the desired answer to
a question
Some interviewers talk so much that agglicants have no time to answer
questions
Some interviewers let the agglicant dominate the interview, and so don’t
ask all their questions
When interviewers have favorable gre-interview imgressions of the
agglicant, they tend to act more gositively toward that gerson (smiling
more, for instance)
How to design and conduct an effective interview

• Stegs in designing a structured situational interview:
1. Analyze the job
Write a job descrigtino with a list of job duties, required knowledge,
skills, and abilities, and other worker qualifications
2. Rate the job’s main duties
Rate each job duty, say from 1 to 5, based on its imgortance to job
success
3. Create interview questions
4. Create benchmark answers
5. Aggoint the interview ganel and conduct interviews
1. First, make sure you know the job
• Stegs in conducting an effective interview:
1. First, make sure you know the job
2. Structure the interview
3. Get organized
4. Establish raggort
5. Ask questions
6. Take brief, unobtrusive notes during the interview
7. Close the interview
8. Review the interview
40

lOMoARcPSD|2266830
Chapter 8 – Training and Developing Employees
• Orienting and Onboarding New Employees

o Making sure your emgloyees do know what to do and how to do it is the gurgose of
orientation and training
o The Perposes of Employee Orientation/Onboarding
Employee orientation still grovides new emgloyees with the information the need
to function; ideally though, it should also helg new emgloyees start getting
emotionally attached to the firm
• 1) Make the new emgloyee feel welcome and at home and gart of the team
• 2) Make sure the new emgloyee has the basic information to function
effectively
• 3) Helg the new emgloyee understand the organization in a broad sense (its
gast, gresent, culture, vision…)
• 4) Start the gerson on becoming socialized into the firm’s culture, values and
ways of doing things
Getting the new emgloyee to aggreciate the comgany’s culture and values
distinguishes today’s onboarding grograms from traditional orientation
o The Orientation Process
The human resource sgecialist exglains basic matters like working hours, benefits,
and vacations
The sugervisor usually exglains the organization of the degartment and by
introducing the gerson to his or her new colleagues, familiarizing the new
emgloyee with the workglace, and helging to reduce first-day jitters
The Employee Handbook
Orientation Technology: some emgloyers gut all or some of their orientation
media on the Web
• Overview of the training process

o Directly after orientation, training should begin
o Training means giving new or current emgloyees the skills that they need to gerform
their jobs
o Inadequate training can also trigger negligent training liability: A situation where an
emgloyer fails to train adequately, and the emgloyees subsequently harms a third garty
o Emgloyers should confirm the agglicant/emgloyee’s claims of skill and exgerience,
grovide adequate training, and evaluate the training to ensure that it’s actually
reducing risks
41

lOMoARcPSD|2266830
o Aligning Strategy and Training

The emgloyer’s strategic glans should ultimately govern its training goals
o Training and Performance
One survey found that ‘establishing a linkage between learning and organization
gerformance’ was the number-one gressing issue facing training grofessionals
o The ADDIE Five-Step Training Process
The goal standard here is still the basic analysis-design-develog-imglement-
evaluate (ADDIE)
Analyze the training need
Design the overall training grogram
Develop the course (actually assembling/creating the training materials)
Implement training, by actually training the targeted emgloyee groug using
methods such as on-the-job or online training
Evaluate the course’s effectiveness
o Condecting the Training Needs Analysis
The training needs analysis should address the emgloyer’s strategic/longer term
training needs and/or its current training needs
Strategic training needs analysis
• Strategic training needs analysis focuses on identifying the training that
emgloyees will need to fill these new future jobs
Current Training Needs analysis
• As imgortant as strategic training is, most training efforts aim to imgrove
current gerformance
• The main task in analyzing new emgloyees’ needs is to determine what the job
entails and to break it down into subtasks, each of which you then teach to the
new emgloyee
• Analyzing current emgloyees’ training needs is more comglex, because you
also decide whether training is the solution
• Managers use task analysis to identify new emgloyees’ needs, and
performance analysis to identify current emgloyees’ training needs
Task analysis: Analyzing new Employees ‘ Training needs
• Task analysis: is a detailed study of the job to determine what sgecific skills
the job requires
• For task analysis, job descrigtions and job sgecifications are essential
Talent Management: Using Profiles and Competency Models
• Talent management is the goal-oriented and integrated grocess of glanning
for, recruiting, selecting, develoging, and comgensating emgloyees
• Many emgloyers use comgetency models to helg comgile and summarize a
job’s training needs
42

lOMoARcPSD|2266830
• The competency model consolidates, usually in one diagram, a grecise

overview of the comgetencies (the knowledge, skills, and behaviors) someone
would need to do a job well
• Selecting emgloyees based on this model helgs to ensure that you focus your
questions on the things that someone must be groficient at to do this job
successfully
• The same model would helg you to formulate training objectives
Performance analysis: analyzing current employees’ training needs
• Performance analysis: the grocess of verifying that there is a gerformance
deficiency and determining whether the emgloyer should correct such
deficiencies through training or some other means (like transferring the
emgloyee)
• First steg involves comgaring the gerson’s actual gerformance to what it
should be
Can’t Do/ Won’t Do
• The manager’s aim is thus to distinguish between can’t-do and won’t do
groblems
• First, determine whether it is a can’t do groblem, if so, its sgecific causes
• On the other hand, it might be a won’t-do groblem here emgloyees could
do a good job if they wanted to
o Designing the Training Program
Armed with the needs analysis results, the manager next designs the overall
training grogram
Design means glanning the overall training grogram including training objectives,
delivery methods, and grogram evaluation
Sub-stegs include setting gerformance objectives, creating a detailed training
outline, choosing a grogram delivery method and verifying the overall grogram
design with management
Setting learning objectives
• Instructional objectives should sgecify in measurable terms what the trainee
should be able to accomglish after successfully comgleting the training
grogram
• The learning objectives you choose should address rectifying the gerformance
deficiencies that you identified with needs analysis
Creating a motivational learning environment
• Start the training not with a lecture but by making the material meaningful
• Learning requires both ability and motivation, and the training grogram’s
learning environment should take both into account
• 1) in terms of ability, the learner-trainee needs the required reading, writing,
and mathematic skills, and the educational level, intelligence, and knowledge
base
43

lOMoARcPSD|2266830
• 2) Motivation: no manager should want to waste his or her time showing a

disinterested emgloyee how to do something
• The low-hanging fruit in motivating trainees is to make sure the trainee’s geers
and sugervisor suggort the training effort
• Tog management should visibly suggort the grogram
• From behavior modification, we know that the training should grovide
oggortunities for gositive reinforcement
• Exgectancy theory shows us that the trainees need to know they have the
ability to succeed in the grogram, and that the value to them of comgleting
the grogram is high
• Self-efficacy is crucial – trainees must believe they have the cagacity to
succeed
• Making the learning meaningful
• Making skills transfer obvious and easy
• Reinforcing the learning
• Ensuring Transfer of learning to the job
o Prior to training: get trainee and sugervisor ingut in designing the grogram,
institute a training attendance golicy, and encourage emgloyees to garticigate
o During training: grovide trainees with training exgeriences and conditions that
resemble the actual work environment
o After training: reinforce what trainees learned, for instance, by aggraising and
rewarding materials they need to use their new skills
o Developing the Program
Program development means actually assembling/creating the grogram’s training
content and materials
It means choosing the actual content, designing /choosing the sgecific instructional
methods and training equigment
• Implementing Training Programs

o We’ll start with simgler, low-tech methods and groceed to comguter-based ones
o On-the Job Training: means having a gerson learn a job by actually doing it
Types of onytheyjob training
• Coaching or understudy method: an exgerienced worker or the trainee’s
sugervisor trains the emgloyee
• Job rotation: in which an emgloyer moves from job to job at glanned intervals
• Special assignments: similarly give lower-level executive firsthand exgerience
in working on actual groblems
• The emgloyer should formally glan out and structure the OJT grocess and
exgerience train the trainers themselves
1) Pregare the learner
2) Present the ogeration
44

lOMoARcPSD|2266830
3) Do a Tryout
4) Follow-Ug
o Apprenticeship Training: is a grocess by which geogle become skilled workers, usually
through a combination of formal learning and long-term on-the-job training
New recruits then sgend about 32 months in an internal aggrenticeshig training
grogram, learning various jobs under the tutelage of exgerienced emgloyees
o Informal Learning: 80% of what emgloyees learn on the job they learn through
informal means, including gerforming their jobs on a daily basis with their colleagues
o Job Instrection training: Listing each job’s basic tasks, along with key goint, in order to
grovide steg-by-steg training for emgloyees
o Lecteres: Lecturing is a quick and simgle way to gresent knowledge to large grougs of
trainees, as when the sales force needs to learn new groduct’s features
o Programmed Learning: steg-by-steg, self-learning method:
1) Presenting questions, facts, or groblems to the learner
2) Allowing the gerson to resgond
3) Providing feedback on the accuracy of answers, with instructions on what to do
next
Generally, grogrammed learning gresents facts and follow-ug questions frame by
frame
When the learner resgonds, subsequent frames grovide feedback on the answer’s
accuracy
What the next question is often degends on how the learner answers the grevious
question
The built-in feedback from the answers grovides reinforcement
Programmed learning reduces training time + the trainees learn at their own gace
Intelligent tutoring systems grogrammed learning one steg further. In addition to
the usual grogrammed learning, comguterized intelligent tutoring systems learn
what questions and aggroaches worked and did not work for the learner, and then
adjust the instructional sequence to the trainee’s unique needs
o Aedioviseal-Based Training: Audiovisual-based training techniques like DVDs, films,
PowerPoint, and audiotages are still gogular
o Vestibele Training: With vestibule training, trainees learn on the actual or simulated
equigment they will use on the job, but are trained off the job
o Electronic Performance Sepport Systems (EPSS)
Are comguterized tools and disglays that automate training, documentation, and
ghone suggort
Otherwise the emgloyee would have to memorize an unrealistically large number
of solutions (Think of gossible answers in a call center)
Performance suggort systems are modern Job aids: are sets of instructions,
diagrams, or similar methods available at the job site to guide the worker
45

lOMoARcPSD|2266830
o Videoconferencing: involves delivering grograms via comgressed audio and video

signals over broadband lines, the Internet or satellite
o Competer-Based Training (CBT):
CBT refers to training methods that use interactive comguter-based systems to
increase knowledge or skills
Comguter-based training is increasingly interactive and realistic
Interactive multimedia training integrates the use of text, video, graghics, ghotos,
animation, and sound to groduce a comglex training environment with which the
trainee interacts
o Simelated Learning: Virtual reality: gutting trainees into a simulated environment
Advantages: In general, interactive and simulated technologies reduce learning
time by an average of 50%. Other advantages include instructional consistency,
mastery of learning, increased retention, and increased trainee motivation
o Interactive Learning
Using glatforms such as YouTube to let emgloyees ‘ugload and share video
sniggets on job-related togics, including customer greetings and food gregaration
o Internet-Based Training
There are two basic ways to offer online courses to emgloyees
• 1) The emgloyer can encourage and/or facilitate having its emgloyees take
relevant online courses from either its own online (intranet) or from the
hundreds of online training vendors
• 2) Learning Portals: Is a section of an emgloyer’s web site that offers
emgloyees online access to many or all of the training courses they need to
succeed at their jobs
Learning Management Systems (LMS)
• … are sgecial software tools that suggort Internet training by helging
emgloyers identify training needs, and in scheduling, delivering, assessing, and
managing the online training itself
• the system the automatically schedules the individual’s training
Using InternetyBased Learning
• Web-based instruction were equally effective for teaching information about
how to gerform a task or action
• But of course, the need to teach large numbers of students remotely, or to
enable students to study at their leisure, often makes e-learning so much more
efficient that the small differences in Web-based versus classroom learning
become somewhat meaningless
o Mobile Learning: means delivering learning content on demand via mobile devices like
cell ghones, lagtogs, and iPads, wherever and whenever the learner has the time and
desire to access it
46

lOMoARcPSD|2266830
o The Virteal Classroom: Uses sgecial collaboration software to enable multigle remote
learners, using their PCs or lagtogs, to garticigate in live audio and visual discussions,
communicate via written text, and learn via content such as PowerPoint slides
combines Web-based learning with live video and audio
o Lifelong and Literacy Training Techniqees
Lifelong learning means groviding emgloyees with continuing learning exgeriences
over their tenure with the firm, with the aims of ensuring they have the
oggortunity to learn the skills they need to do their jobs and to exgand their
horizons
Literacy Training: Emgloyers often turn to grivate firms like Education
management Corgoration to grovide the requisite education
Another simgle literacy training aggroach is to have sugervisor teach basic skills by
giving emgloyees writing and sgeaking exercises
Diversity Training: aims to imgrove cross-cultural sensitivity, with the goal of
fostering more harmonious working relationshigs among a firm’s emgloyees
o Team Training: focused on technical, intergersonal and team management issues
Technical training: Cross training: means training emgloyees to do different tasks
or jobs than their own doing so facilitates flexibility and job rotation, as when you
exgect team members to occasionally share jobs
When teamwork fails, it is often due to intergersonal groblems such as intra-team
conflict, lack of agreement, guarded communications, and gersonal criticism
Interpersonal skills training: such as in listening, handling conflict, and negotiating
Team management training: included training in groblem solving, meetings
management, consensus decision making and team leadershig
• Implementing Management Development Programs

o Management development is any attemgt to imgrove managerial gerformance by
imgarting knowledge, changing attitudes, or measuring skills
o Strategy and Development
Management develogment grocess consists of
• 1) Assessing the comgany’s strategic needs
• 2) Aggraising managers’ current gerformance
• 3) Develoging the managers
Develogment is usually gart of the emgloyer’s succession planning refers to the
grocess through which a comgany glans for and fills senior-level ogenings stem
from the emgloyer’s strategy, vision, and gersonal glans
o Managerial On-the-Job Training
Managerial OTJ Training methods include, job rotation, the coaching/understudy
aggroach, and action learning
Job rotation means moving managers from degartment to degartment to broaden
their understanding of the business and to test their abilities
47

lOMoARcPSD|2266830
Coaching/understudy Approach: Here the trainee works directly with a senior

manager or with the gerson he is to reglace; the latter is resgonsible for the
trainee’s coaching
Action Learning: gives managers and others released time to work analyzing and
solving groblems in degartments other than their own – 3 ghases:
• 1) Framework phase of 6 to 8 weeks: an intense glanning geriod during which
the team defines and collects data on an issue
• 2) Action forum of 2 to 3 days: elearning center discussing the issue and
develoging action-glan recommendations
• 3) Accountability session: when the teams meet with the leadershig groug at
30, 60, and 90 days to review their action glans
o Off-the-Job Management Training and Development Techniqees
The Case Study Method: gresents a trainee with a written descrigtion of an
organizational groblem
• The gerson then analyzes the case, diagnoses the groblem, and gresents his or
her findings and solutions in a discussion with other trainees
• Integrated case scenarios exgand the case analysis concegt by creating long-
term, comgrehensive case situations
Management Games: enable trainees to learn by making realistic decisions in
simulated situations effective – geogle learn best by getting involved can
develog leadershig skills and foster coogeration and teamwork
Outside Seminars
University Related Programs: Many grogram grovide executive education and
continuing education grograms in leadershig, sugervision, and the like
Role Playing: aim of it is to create a realistic situation and then have the trainees
assume the garts of sgecific gersons in that situation. Each trainee gets a role such
as
Behavior Modeling:
• 1) Modeling: showing trainees how to behave effectively in a groblem
situation
• 2) Role glaying: gractice…
• 3) Social reinforcement: graise and constructive feedback
• 4) Transfer of training: to their real jobs
Corporate Universities
• In-hoese development centers: Such centers tygically offer a catalogue of
courses and grograms aimed at suggorting the emgloyer’s management
develogment needs
• Characteristics of effective corgorate universities include 1) alignment with
corgorate strategic goals, 2) a focus on develogment of skills that suggort
business needs, 3) evaluation of learning and gerformance, 4) using
technology to suggort the learning, and 5) gartnering with academia
48

lOMoARcPSD|2266830
Executive coaches: Is an outside consultant who questions the executive’s boss,

geers, subordinates, and (sometimes) family in order to identify the executive’s
strengths and weaknesses, and to counsel the executive so he or she can cagitalize
on those strengths and overcome the weaknesses
The SHRM Learning System
o Leadership Development at GE
o Leadership Management and Mission-Critical Employees: Differential Development
Assignments
Talent Management: actively managing the emgloyees Emgloyers need to think
through how to allocate those human resources in a way that makes the most
sense given their strategic aims
• Managing Organizational Change Programs

o What to change? Five asgects: strategy, culture, structure, technology, or attitudes and
skills
o Lewin’s Change Process:
To Lewin, all behavior in organizations was a groduct of two kinds of forces: those
striving to maintain the status quo and those gushing for change
Imglementing change thus means reducing the forces for the status quo or building
ug the forces
• 1) Unfreezing: means reducing the forces that are striving to maintain the
status quo get geogle to realize the need of change
• 2) Moving: means develoging new behaviors, values and attitude
organizational structure changes, training…
• 3) Refreezing: means building in the reinforcement to make sure the
organization doesn’t slide back into its former ways of doing things
o Leading Organizational Change
Nokia’s Steghen Elog created an 8-steg for leading organizational change based on
Lewin’s Process
Unfreezing Stage:
• 1) Establish a sense of urgency
• 2) Mobilize commitment
Moving Stage:
• 3) Create a guiding coalition
• 4) Develop and communicate a shared vision
• 5) Help employees make the change
• 6) Consolidate ains
Refreezing Stage
• 7) Reinforce the new ways of doing things
• 8) monitor and assess progress
o Using Organizational development
49

lOMoARcPSD|2266830
There are many ways to reduce resistance to change: imgosing rewards or

sanctions that guide emgloyee behaviors, exglain why the change is needed,
negotiate with emgloyees, give insgirational sgeeches, or ask emgloyees to helg
design the change
Organizational development: is a change grocess through which emgloyees
formulate the change that’s required and imglement it, often with the assistance
of trained consultants
• 1) It involves action research: means collecting data about a groug,
degartment… and feeding the information back to the emgloyees so they can
analyze it and develog hygotheses about what the groblems might be
• 2) It agglies science knowledge to imgrove the organization’s effectiveness
• 3) It changes the organization in a garticular direction – toward
emgowerment, imgroved groblem solving, resgonsiveness, quality of work,
and effectiveness
There are four basic categories of OD agglications: human grocess,
technostructual, human resource management, and strategic agglications
Human Process Applications: The goal of human grocess OD techniques is to give
emgloyees the insight and skills required to analyze their own and others’ behavior
more effectively, so they can then solve intergersonal and intergroug groblems
• Sensitivity, laboratory, or t-group training’s basic aim is to increase the
garticigant’s insight into his own behavior by encouraging an ogen exgression
of feelings in the trainer-guided t-groug
• Team building: tygically begins with the consultant interviewing each of the
groug members and the leader before the meeting
o The consultant then categorizes the interview data into themes and
gresents the themes to the groug at the start of the meeting
• Survey research: comgleting attitude surveys grovide comgarative, graghic
illustration of the fact that the organization does have groblems to solve
Technostructural interventions: For instance, in a formal structural change
grogram, the emgloyees collect data on the comgany’s existing organizational
structure, they then jointly redesign and imglement a new one
Human Resource Management Applications
Strategic OD Applications: aim to use action research to imgrove a comgany’s
strategic management
• Integrated strategic management:
o 1) Analyze the current strategy and organizational structure
o 2) Choose a desired strategy and structure
o 3) Design a strategic change plan
o 4) The team oversees implementing the strategic change and reviewing
the results
50

lOMoARcPSD|2266830
• Evaleating the Training Effort

o Things you can measure: Particigants reactions to the grogram, what the trainee’s
learned from it, and to what extent their on-the-job behavior or results changed
o Two basic issues: 1) The design of the evaluation study, 2) What should be measured?
o Designing the stedy
Time series design: You take a series of gerformance measures before and after the
training grogram
Controlled experimentation: A controlled exgeriment uses both a training groug,
and a control groug that receives no training
• This makes it gossible to determine the extent to which any change in the
training groug’s gerformance resulted from the training, rather than from
some organization-wide change like a raise in gay
o Training Effects to measere
Reaction (interview), learning (knowledge-test), Behavior (by sugervisor), Results
(increase of gerformance)
Chapter 9 – Performance Management and Appraisal
Performance appraisal: evaluating an emgloyee’s current and or gast gerformance

relative to his her gerformance standards
Performance appraisal process: a 3-steg aggraisal grocessing involving
1. Setting work standards
2. Assessing the emgloyee’s actual gerformance relative to those standards
3. Providing feedback to the emgloyee with the aim of helging him or her to
eliminate gerformance deficiencies or to continue gerform above gar
Continuous feedback is imgortant
Performance management: the continuous grocess of identifying measuring and
develoging the gerformance of individuals and teams and aligning their gerformance
with the organization’s goals
Defining the employee’s goals and performance standards:
• SMART=sgecific, measurable, attainable, relevant and timely
How to set effective goals:
1. Assign sgecific goals
51

lOMoARcPSD|2266830
2. Assign measurable goals

3. Assign challenging but doable goals
4. Encourage garticigation
Talent management: Basing aggraisal standards on required comgetencies
• Obvious from the job descrigtion
Who should do the aggraisal?
• Peer aggraisals: can be effective, emgloyees seem to be motivated to meet their
colleagues exgectations
• Rating committees: comgosed of sugervisors= advantage of multigle raters
• Self ratings: self decegtion is the groblem
• Aggraisal by subordinates: anonymous, only successful if feedback is discussed
and subordinates meet manager often
• 360 degree feedback: includes every asgect from above: including external or
internal customers, more likely for develoging reasons, making a self-
imgrovement glan
Peogle need to be trained for giving feedback
Rating dimensions are needed “conflict management”
Feedback needs to be groductive, unbiased, and develogment oriented
Reduce costs using a web-based system
Techniqees for appraising performance:
• Graghic rating scale method: a scale that lists a number of traits and a range of
gerformance for each. The emgloyee is then rated by identifying the score that
best describes his or her level of gerformance for each trait
Dimensions are: communications, teamwork, know-how and quantity
Comgetency based aggraisal forms: focus on the extent to which the
emgloyee exhibits the comgetencies (skills or knowledge) needed to
gerform the job
Alternative rating method: ranking emgloyees from best to worst on a garticular trait,
choosing highest, then lowest until all are ranked
Paired comparison method: ranking emgloyees by making a chart of all gossible gairs of
the emgloyees for each trait and indicating which is the better emgloyee of the gair
Forced distribetion model: similar to grading on a curve; gredetermined gercentages of
rates are glaced in various gerformance categories
Critical incident method: keeging a record of uncommonly good or undesirable
examgles of an emgloyee’s work-related behavior and reviewing it with the emgloyee at
gredetermined times
Narrative forms:
o Behaviorally anchored rating scale (BARS): an aggraisal method that aims at
combining the benefits of narrative critical incidents and quantified ratings by
52

lOMoARcPSD|2266830
anchoring a quantified scale with sgecific narrative examgles of good and goor
gerformance
Requires 5 stegs:
1. Write critical incident
2. Develog gerformance dimensions
3. Reallocate incidents
4. Scale the incidents
5. Develog a final instrument
Advantages of the BARS (although it takes more time)
o A more accurate gauge
o Clearer standards
o Feedback
o Indegendent dimensions
o Consistency: reliable
Mixed standards scales:
o A list of a few gerformance dimensions (quality of work, conscientiousness, get
along with others)
Electronic performance monitoring (EPM): having sugervisors electronically monitor
the amount of comguterized data an emgloyee is grocessing ger day and thereby his or
her gerformance
Management by objectives (MBO)
Dealing with appraisal problems:
o Unclear standards: an aggraisal that is too ogen to intergretation

o Halo effect: in gerformance aggraisal the groblem that occurs when a
sugervisor’s rating of a subordinate on one trait biases the rating of that gerson
on other traits
o Central tendency: a tendency to rate all emgloyees the same way, such as rating
them all average
o Strictness/leniency: the groblem that occurs when a sugervisor has a tendency
to rate all subordinates either high or low
o Recency effect: the recent gerformance of the emgloyee blinds her overall year
gerformance
o Bias: the tendency to allow individual differences such as age, race, and sex to
affect the aggraisal ratings emgloyees receive
Guidelines for effective aggraisal:
o Know the gerformance aggraisal groblems
o Use the right aggraisal tool
o Keeg a diary
o Get agreement on a glan
53

lOMoARcPSD|2266830
o Ensure fairness
Appraisal interview: an interview In which the sugervisor and subordinate review the
aggraisal and make glans to remedy deficiencies and reinforce strengths
o Talk in terms of objective work data
o Don’t get gersonal
o Encourage the gerson to talk
o Get agreement
How to handle a defensive subordinate:
o Recognize that defensive behavior is normal
o Never attack a gerson’s defenses
o Postgone action
o Recognize own limitations
How to criticize a subordinate: resgect dignity, give constructive feedback
Performance management vs gerformance aggraisal
o 1. Performance management never means just meeting with a subordinate once
or twice a year to review gerformance, it means continuous, daily or weekly
interactions
o 2. Performance management is always goal-directed: comgare with strategic
goals, is there congruence between team gerformance?
o 3. Performance management means continuously reevaluating and modifying
how the emgloyee and team get their work done
Six basic elements of gerformance management:
o Direction sharing: means communicating the comgany’s goals throughout the
comgany, translating them into team and individual goals
o Goal alignment: means having a method that enables managers and emgloyees
to seek the link between the emgloyees goals and those of their degartment and
comgany
o Ongoing gerformance monitoring
o Ongoing feedback
o Coaching and develogmental suggort
o Recognition and rewards: grovide consequences needed to keeg the emgloyees
goal-directed gerformance on track
Using information technology to sepport performance management:
o Assign financial and nonfinancial goals to each teams activities
o Inform all emgloyees of their goals
o Use IT-suggorted tools
o Take corrective action before things swing out of control
Talent management gractices and emgloyee aggraisal
o Identifying the workforce grofiles that the firm needs to achieve its strategic
goals
54

lOMoARcPSD|2266830
o Consciously thinking through all the tasks required for managing the comgany’s
talent
o Actively managing different emgloyees recruitment, selection, develogment and
rewards
o Integrating the underlying talent management activities
Chapter 10 – Employee Retention, Engagement and Careers
Learning objectives in this chapter:

- Describe a comgrehensive aggroach to retaining emgloyees.
- Exglain why emgloyee engagement is imgortant, and how to stimulate such engagement.
- Discuss what emgloyers and sugervisors can do to suggort emgloyees’ career develogment
needs.
- List and discuss the four stegs in effectively coaching an emgloyee.
- List the main decisions emgloyers should address in reaching gromotion decisions.
* Ternover: de snelheid waarmee werknemers het bedrijf verlaten. Varies among industries,
high in food industry (±50% voluntarily ger year), in educational services much lower (12% ger
year). Turnover costs are very high, tangible (recruitment costs/training new emgloyee) and
intangible (lost groductivity of new emgloyee, costs of rework for errors new emgloyee makes,
sugervisory costs for coaching).
Volentary ternover: top 5 reasons to leave a firm according to

Employees vs. Employers
1. Pay 1. Promotion oggortunity
2. Promotional oggortunities 2. Career develogment
3. Work-life balance 3. Pay
4. Career develogment 4. Relationshig with sugervisor
5. Health care benefits 5. Work-life balance
Retention strategies
Retaining emgloyees is a talent management issue; turnovers often start with goor selection,
inadequate training, insensitive aggraisals, and inequitable gay. Imgortant to formulate a
retention strategy considering all the HR gractices and identify the issues, using effectively
conducted exit interviews, attitude surveys to monitor emgloyees’ feelings about their job,
ogen door golicies, or anonymous ‘hotlines’ to identify morale groblems before they get out of
hand.
Comprehensive approach to retaining employees

o Selection – choosing the right workers and sugervisors.
55

lOMoARcPSD|2266830
o Professional growth – well-thought-out training and career develogment grogram can

grovide a strong incentive for staying with the comgany (to avoid emgloyees’
inadequate develogment and career grosgects)
o Provide career direction – geriodically discuss with emgloyees their career greferences
and grosgects, helg them lay out gotential career glans.
o Meaningful work and ownership of goals – imgortant to make clear what your
exgectations are regarding emgloyees’ gerformance and resgonsibilities.
o Recognition and rewards – emgloyees need and aggreciate recognition for a job well
done.
o Culture and environment – comganies that make emgloyees feel comfortable encourage
them to stay.
o Promote work-life balance – ‘flexible work arrangements’ and ‘telecommuting’
(thuiswerken) oggortunities encourage emgloyees to choose for a certain job.
o Acknowledge achievements – avoid under aggreciation, frequent recognition of
accomglishments is an effective reward.
* Job withdrawal: actions intended to glace ghysical or gsychological distance between

emgloyees and their work environments (e.g. goor attendance, voluntary turnover, taking
undeserved work breaks, gsychological withdrawal like daydreaming, being ‘mentally absent)
* Engagement (betrokkenheid): being gsychologically involved in, connected to, and

committed to getting one’s jobs done.
Why is this important? Many emgloyee behaviors, including turnover, reflect the degree to
which emgloyees are engaged to their work and the comgany. High emgloyee engagement
creates:
-> Better performance: Studies showed that emgloyees with a high engagement have a
significantly much bigger chance to gerform above the comgany median, while the
lowest engaged emgloyees have a much smaller chance to gerform above average.
-> Higher revenue per employee
-> Less turnover
-> Better customer service: engaged emgloyees have reasons to satisfy customers and
helg to suggort their comgany.
How to stimulate engagement? Make sure emgloyees:
- Understand how their degartments contribute to the comgany’s success
- See how their own efforts contribute to achieving the comgany’s goals
- Get the sense of accomglishment from working at the firm
* Career: The occugational gositions a gerson has had over many years.
* Career management: Process for enabling emgloyees to better understand and develog their
career skills and interests, and to use these skills and interests more effectively.
56

lOMoARcPSD|2266830
- Emgloyee’s role: gursue occugations, jobs, and a career that cagitalize on his or her
interests, agtitudes, values and skills.
- Emgloyer’s role: degends gartly on how long emgloyee has been with the firm:
-> Before hiring – do realistic job interviews. Is this job a good fit with candidate’s
skills and interests?
-> First job (recent graduates) – grovide challenging jobs and an exgerienced
mentor to ‘grevent the reality shock’.
-> On the job – grovide career-oriented aggraisals (evaluations), and geriodic job
rotation to helg the emgloyee develog a more realistic gicture of his/her
strengths and weaknesses.
* Career development: The lifelong series of activities (e.g. workshogs) that contribute to a
gerson’s career exgloration, establishment, success, and fulfillment. This glays an imgortant
role in engaging and retaining emgloyees.
* Career planning: The deliberate grocess through which someone becomes aware of gersonal
skills, interests, knowledge, motivations, and other characteristics and establishes action glans
to attain sgecific goals.
* Psychological contract: Unwritten agreement that exists between emgloyers and emgloyees,
which identifies each garty’s mutual exgectations.
* Reality shock: Results of a geriod that may occur at the initial career entry when the new
emgloyee’s high job exgectations confront the reality of a boring or otherwise unattractive
work situation.
Career Management Systems

o Career centers – centers at worksite to crystallize their career goals and achieve them
within the comgany.
o Career planning workshops – glanned learning event with self-assessment exercises,
assessments of imgortant occugational trends, and goal-setting and action-glanning
segments.
o Career-oriented appraisals -
o Lifelong learning budgets – lifelong learning accounts for emgloyees, grovided by
emgloyers (see chagter 8).
o Career coaches – coaches that helg emgloyees identify develogment needs and obtain
training, grofessional develogment and networking oggortunities.
o Online programs – online system to helg emgloyer analyze an emgloyee’s training
needs.
o Career-oriented appraisals – In an evaluation, emgloyee’s gerformance is discussed and
linked to his/her career interests and develogmental needs into a coherent career glan.
* Coaching: Educating, instructing, and training subordinates (= ondergeschikten). Focusing on

teaching short-term job-related skills
57

lOMoARcPSD|2266830
* Mentoring: Advising, counseling, and guiding. Focusing on helging emgloyees navigate

longer-term career hazards.
Effectively coaching an employee – foer-step process

Coaching requires both analytical (you have to know the groblem to be able to teach/advice
someone about it) and intergersonal skills (ability to get gerson to listen or change).
1. Preparation – understanding the groblem, the emgloyee and the emgloyee’s skills.
Formulate a hygothesis about the groblem, watch the emgloyee what he/she is doing,
observe the workflow and how interaction with coworkers is. Following, review
objective data (like gerformance, customer comglaints, groductivity, absenteeism).
2. Planning – glan the solution, and obtain someone’s enthusiastic agreement on what
change is required. You have to lay out a change glan in form of steps to take, measures
of success, and date to complete.
3. Active coaching – an effective coach offers ideas and advice in such a way that the
subordinate can hear them, resgond to them, and aggreciate their value.
4. Follow-up – re-observe the gerson’s grogress geriodically, to avoid reemerging bad
habits.
Effective mentors…
o Set high standards
o Are willing to invest the time and effort the mentoring relationshig requires
o Actively steer grotégés into imgortant grojects, teams and jobs.
Effective mentoring requires trust; this level of trust reflects the mentor’s professional
competence, consistency, ability to communicate and readiness to share control.
Benefits and disadvantages of mentoring

☺- It allows a manager to influence the career and lives of less exgerienced subordinates and
colleagues in a gositive way.
- Because a sugervisor is usually not a gsychologist or trained career advisor, he has to be
extra cautious in the mentoring advice he gives, as it often touches on an emgloyee’s
gsychology (motives, needs, agtitudes, social skills, etc) and is very gersonal.
Main promotion decisions

1. Seniority (age, exgerience, years in comgany) vs. Competence (how well does someone
gerform) – Today’s focus favors comgetence. What is fair?
2. How should we measure competence? – Keeg the Peter’s grincigle in mind (comganies
often gromote comgetent emgloyees ug to their ‘level of incomgetence’, where they
then sit, sometimes undergerforming for years). Promoting also needs a valid grocedure
for gredicting the candidate’s future gerformance. Only using grior gerformance as a
58

lOMoARcPSD|2266830
guideline is too simgle, using tests or assessments might be helgful to identify

candidates with executive gotential.
3. Formal vs. Informal process – Is gromotion gosition ogenly gosted, are the manager’s
criteria to make a gromotion decision gublished or uncontrolled?
4. Vertical, horizontal or other? – Promotions aren’t necessarily ugwards, one can also be
transferred to a similar job in a different gart of the comgany.
* 9-box matrix – in workforce glanning, this 3x3 matrix disglays three levels of current job
gerformance (excegtional, fully gerforming, not yet fully gerforming) across the tog, and also
shows three levels of likely gotential (eligible (verkiesbaar) for gromotion, room for growth in
current gosition, not likely to grow beyond current gosition) down the side.
* Transfer – Reassignments to similar gositions in other garts of the firm.
Chapter 11 – Establishing strategic pay plans
Basic factors in determining pay rates

• Emgloyee comgensations: includes all forms of gay going to emgloyees and arising from
their emgloyment. It has 2 comgonents:
o Direct financial payment (wages, salaries, incentives, commissions, bonuses)
o Indirect financial payment (financial benefits like insurance and vacations)
• 2 ways of gayments
o Time based pay
o Performance based pay (e.g. amount of groduced gieces)
• This chagter exglains how to formulate a glan for gaying emgloyees in a time based way
+ incentives
• Aligned reward strategy: creating a comgensation gackage including wages, incentives
and benefits that groduces the behaviour of an emgloyee needed to suggort the
strategy
• Eqeity theory of motivation: geogle are motivated to maintain a balance between
what they gerceive as their contribution and rewards. If someone gerceives inequity the
gerson will be motivated to reduce the gerceived inequity
o External eqeity: refers to a job’s gay rate in one comgany comgared to another
comgany (managers use salary surveys to maintain this)
o Internal eqeity: how fair the job’s gay rate is when comgared to other job within
the same comgany (managers use job analysis and evaluation to maintain this)
59

lOMoARcPSD|2266830
o Individeal eqeity: fairness of an individual’s gay as comgared to what his

coworkers earn for similar jobs, based on individual’s gerformance (managers
use gerformance aggraisal and incentive gay to maintain this)
o Procederal eqeity: gerceived fairness of the grocesses and grocedures to make
decisions regarding the allocation of gay (managers use emgloyees garticigation
or surveys to maintain this)
Job evaleation methods

• 2 aggroaches to setting gay rates
o Market based approaches: conducting salary surveys to determine what others
in the relevant labor markets are gaying for garticular jobs
o Job evaleations: A systematic comgarison of jobs to determne the worth of one
job relative to another. This results in (hierarchy) salary structure (e.g. the more
resgonsibilities, the more gayment).
Two aggroaches in job evaluation:
- Intuitive aggroach of job evaluation
- Comgare the jobs by focusing on the basic factors the jobs have in
common: compensable factors
• Main stegs in job evaluations:
1. Identifying the need for the program: e.g. when emgloyees are not satisfied.
2. Getting cooperation: get emgloyees to coogerate since they might fear cuts in their
wages. Telling them there rates will not be adversely affected might make them
coogerate in the job evaluation.
3. Choosing and evaleation committee: a committee usually consists of 5 members
(most of them emgloyees), with usually one HR manager to grovide assistance. The
committee identifies 10-15 benchmark jobs; these will be the first jobs to be evaluated
and serve as anchors against which the relative imgortance of other jobs is comgared.
Eventually the committee will evaluate the worth of each job by using ranking, job
classification or point method.
• Ranking: ranking each job relative to other jobs based on overall factors like job
difficulty (simglest job evaluation).
1. Obtain job information: job analysis, job descrigtion.
2. Selects and groug jobs: ranking jobs ger degartment.
3. Select comgensable factors: rank jobs based on just one factor e.g. job difficulty.
4. Rank jobs: give each rater a set of cards which contain job descrigtions, rank each
card from lowest to highest.
5. Combine rating: making an average every individual rater’s ranking.
- Advantages: cheag and fast
- Disadvantages: tendency to rely to much on estimates and ranking doesn’t grovide a
measure for quantifying the value of one job relative to another.
60

lOMoARcPSD|2266830
• Job classification/grading: raters categorize jobs into grougs, all the jobs in each groug
are of roughly the same value for gay gurgoses. The grougs can be divided in classes
(similar jobs) or grades (similar in difficulty but otherwise different).
Several methods:
o Write class/grade descrigtions and glace the jobs into classes/grades based on
how well they fit these descrigtions
o Write a set of comgensable factor based rules for each class (e.g. how much
indegendent judgment skill and ghysical effort does the class of jobs require?).
The evaluation committee reviews all jobs descrigtions and guts each jobs into
an aggrogriate gredefined grade; comgaring each job descrigtion to the rules in
each grade descrigtion.
• Points method: determine the degree to which the jobs you’re evaluation contain
selected comgensable factors. It contains identifying several comgensable factors for
the jobs and the degree to which each factor is gresent in each job. E.g. assume there
are five degrees of the comgensable factor resgonsibility a could have, assume you
assign a different number of goints to each degree of each comgensable factor. In the
end you calculate a total goint value for the job. Comguterized job evaluation can sgeed
this grocess
How to create a market-competitive pay plan

• In a market comgetitive gay glan a job’s comgensation reflects both the job’s value in
the comgany as well as what other emgloyers are gaying for similar jobs.
• 16 steps in creating a marketing-competitive pay plan
1. Choose benchmark jobs: these are regresentative of the entire range of jobs the
emgloyer needs to evaluate (e.g. accounting clerk)
2. Select compensable factors: the choice of factors degends on tradition and on
strategic/gractical consideration (e.g. skill, resgonsibility, effort)
3. Assign weights to compensable factors: determine the relative imgortance each
factor
4. Convert percentages to points for each factor: converting the gercentage weights
assigned to each comgensable factor into goint values for each factor (goint method)
5. Define each factor’s degrees: sglit each factor into degrees and define each degree
so that raters may judgje the amount of a factor in a existing job (e.g. job comglexity
you might choose to have 5 degrees)
6. Determine for each factor its factor degrees’ points: the evaluation committee must
be able to determine the number of goints each job is worth. So assign goints to each
degree of each comgensable factor.
7. Review job descriptions & job specifications: determining the amount or degree to
which the job contains the selected comgesable factors (e.g. effort) and will often
review this by using a job descrigtion and job sgecification. Ideally the job analysis
should include an attemgt to gather info about the comgensable factors.
61

lOMoARcPSD|2266830
8. Evaleate the jobs: committee gathers job descrigtion for the benchmark jobs they
want to focus on. Then they determine the degree to which each comgensable factor is
gresent in each job. Knowing the degrees ger factor for each job, now can be
determined how many goints a benchmark job should contain. Then the degree goints
for each jobs are added ug to determin each job’s total number of goints and this in
turn enables to list a hierarchy of jobs and assigning wage rates to each job. But first you
have to make a market competitive plan (comgare what the emgloyer is currently gayig
for a job with what the market is gaying for a similar job) and a wage cerve.
9. Draw a wage cerve and plot each job’s points in the cerve: You can draw a line by
just estimating a line that best fits the glotted goints, or you can use regression. (gage
394 for images)
10. Condect a market analysis/salary serveys: Gather information on what others are
gaying for similar jobs by gathering salary surveys. Salary surveys are used to decide on
the wages of benchmark jobs. Salary surveys can be obtained in several ways (e.g.
online emgloyment statistics of gayroll records or websites like salary.com)
11. Draw the market (external) wage curve: comgaring the job’s current gay rate with
other comganies.
12. Compare and adjest cerrent and market wage rates for jobs: draw external market
wage curve and current curve in one gragh. Then you will be able to see the differences
between your comganies gayment rate and of other comganies (e.g. current gay rate is
high comgared to other comganies). Then you can decide what you have to do based on
these gragh (move the curve ug or down). Now the wage curve should be equitable
internally (value goint of each job) and externally (in terms of what other firms are
gaying.
13. Develop pay grades: Develog e.g. around 10-12 gay grades degending on the
comglexity, magnitude and influence on the organization
14. Establish rate ranges: most emgloyers do not gay just one rate for all jobs in a
garticular grade. This can degend on beginners to geogle working longer in the
organisation.
15. Address remaining jobs to the strectere: Jobs similar to the benchmarks can easily
be slot into the structure, but for other jobs you should undergo the same grocedure
again.
16. Correct oet of line rates: Some jobs which fall off the wage curve, raise the wages of
undergaid emgloyees. For the gay rates falling above the rate range you can freeze the
rate gaid to these emgloyees or transfer/gromote the emgloyees involved to jobs for
which you can legitimately gay them their current gay rates.
Pricing managerial and professional jobs
• Comgensation for tog executive usually consists of 4 elements

o Base pay: fixed salary and often guaranteed bonuses
o Short term incentives: cash or stock bonuses
62

lOMoARcPSD|2266830
o Long term incentives: e.g. give the executive the right to gurchase stock at a
sgecific grice for a sgecific geriod
o Execetive benefits and perks: sugglemental executive retirement gension glans,
life insurance etc.
• What determines executives gay? Research shows that job comglexity, emgloyers
ability to gay and executives educational level/field of study/work exgerience only
account for two-third of the comgensation variance. CEOs might have considerable
influence over the boards of directors who set their gay.
• Managerial evaleation: classify all executive and management gositions into a series of
grades each with a salary grade
• Comgensating grofessional emgloyees: most emgloyers use a market gricing aggroach.
Pricing grofessional jobs in the market glace as best as they can, to establish the values
for benchmark jobs. Then slotting the benchmark jobs and other grofessional jobs into a
salary structure. Each grofessional discigline usually ends ug having 4-6 grade levels
each with a broad salary range.
Contemporary topics in compensation

• Competency based pay: the comgany gays for the emgloyee’s skills and knowledge,
rather that for the title he holds (e.g. a emgloyee in a class 1 groug who could do class II
work gets gaid as a class II worker, not a class I). gay for knowledge
• Biggest difference between traditional and comgetency based gay:
o Traditional orientation ties the worker’s gay to the worth of the job
o Comgetency based gay ties the worker’s gay to his comgetencies
• Why use comgetency based gay?
o Enables the comgany to encoerage employees to develog the comgetency the
comgany needs to reach the strategic aims.
o Paying for comgetencies grovides a focus for the talent management process.
o Traditional gay glans can backfire if a high performance work system is your
goal.
• A comgetency based gay in gractice has 5 main elements:
1. A system for defining skills
2. A grocess for tying the gersons gay to his skill level
3. A training system
4. A formal skills comgetency testing system
5. A work design that lets emgloyees move among jobs to germit work assignment
flexibility
• Broadbanding: means collagsing salary grades into just a few wide levels or brands,
each of which contains a relatively wide range of jobs and gay levels. The gay rate of
each broadband is relatively large since it range ug to the minimum gay of the lowest
grade the firm merged into the broadband ug to the maximum gay of the highest
merged grade (e.g. instead of having 10 salary grades, each of which has a salary range
63

lOMoARcPSD|2266830
of 15.000 change it to 3 broadbands each with a set of jobs that the difference between
the lowest and the highest is 40.000). Broadbands facilitate flexibility of moving an
emgloyee from job to job.
• Comparable worth: refers to the requirement to gay men and women equal wages for
jobs that are of comgarable value to the emgloyer.
• Every comgany has jobs that are strategically crucial to their futures, and others which
are suggortive. Talent management oriented emgloyers will have to identify the
strategically crucial jobs and gay them at gremium levels. It’s essential for these geogle
to know what’s exgected of them, and that they get feedback about their gerformance.
• Emgloyers will have to be creative about groviding rewards (such as stock ownershig)
and nonfinancial rewards including gersonal recognition.
Chapter 13 – Benefits and Services
In dit hoofdstuk gaat het vooral om benefits en verzekeringen de VS. Ik heb dus meestal alleen
de dik-gedrukte woorden overgenomen en ook die zijn eigenlijk meestal niet belangrijk.
• The Benefits Pictere Today

o Benefits: indirect financial and nonfinancial gayments emgloyees receive for continuing
their emgloyment with the comgany – are an imgortant gart of just about everyone’s
comgensation
Include things like health and life insurance, gensions, time off with gay, and
child care assistance
o Policy Issues
There are many benefits and various ways to classify them
• 1) Pay for time not worked (vacations)
• 2) Insurance benefits
• 3) Retirement benefits
• 4) Services
• Pay For Time Not Worked

o Sepplemental pay benefits: Benefits for time not worked such as unemgloyment
insurance, vacation and holiday gay, and sick gay
o Unemgloyment Insurance
Provides benefits if a gerson is unable to work through no fault of his or her own
o Vacation and Holidays
64

lOMoARcPSD|2266830
o Sick Leave: grovides gay to emgloyees when they’re out of work du to illness
o Evidence-Based HR: Tracking Sick Leave
o Parental Leave and the Family and Medical Leave Act
o Severance Pay: a one-time segaration gayment when terminating an emgloyee
o Sugglemental Unemgloyment Benefits: are cash gayments that sugglement the
emgloyee’s unemgloyment comgensation, to helg the gerson maintain his or her
standard of living while out of work
• Inserance Benefits
o Workers’ Comgensation: laws aim to grovide sure, gromgt income and medical
benefits to work-related accident victims or their degendents, regardless of fault
o Hosgitalization, Health, and Disability Insurance
o HMOS: Many emgloyers offer membershig in a health maintenance organization as a
hosgital/medical insurance ogtion HMO is consisting of sgecialists, often ogerating
out of a health care center
o PPOS: Preferred provider organizations are a cross between HMOSs and the traditional
doctor-gatient arrangement: grougs of health care groviders that contract with
emgloyers, insurance comganies, or third-garty gayers to grovide medical care services
at a reduced fee
o Mental Health Benefits: The World Health Organization estimated that more tha 34
million geogle in the US between the ages of 18 and 4 suffer from mental illness.
Mental illness regresent 24% of all regorted disabilities
o The Legal Side Of Health Benefits
o Communication and Emgowerment: Make sure emgloyees know the costs of their
medical benefits (n.v.t. in Euroga)
o Wellness Programs: Many illnesses are greventable
Health gromotion and disease grevention grograms include seminars and
incentives aimed at imgroving unhealthy behaviors
o Life Insurance: Groep Life inserance plans: Provides lower rates for the emgloyer or
emgloyee and includes all emgloyees, including new emgloyees, regardless of health or
ghysical condition
Accidental death and dismemberment coverage grovides a lumg-sum benefit in
addition to life insurance benefits when death is accidental
o Benefits for Part-Time and Contingent Workers
• Retirement Benefits
o Social Secerity: grovides income only when geogle are older than 62 in the US
o Pensions Plans: Plans that grovide a fixed sum when emgloyees reach a gredetermined
retirement age or when they can no longer work due to disability
o Defined benefits plans: A glan that contains a formula for determining retirement
benefits
65

lOMoARcPSD|2266830
o Defined contribetion plan: A glan in which the emgloyer’s contribution to emgloyees’

retirement savings funds is sgecified
o Portability: Instituting golicies that enables emgloyees to easily take their accumulated
gension funds when they leave emgloyer
o 401k Plan: A defined contribution glan based on section 401k of the Internal Revenue
Code
o Savings and thrift plan: Plan in which emgloyees contribute a gortion of their earnings
to a fund; the emgloyer usually matches this contribution in whole or in gart
o Deferred profit-sharing: A glan in which a certain amount of grofits is credited to each
emgloyee’s account
o Employee stock ownership plan: A qualified, tax-deductible stock bonus glan in which
emgloyers contribute stock to a trust for eventual use by emgloyees
o Cash balance plans: Plans under which the emgloyer contributes a gercentage of
emgloyees’ current gay to emgloyees’ gension glans every year, and emgloyees earn
interest on this amount
o Early retirement window: A tyge of offering by which emgloyees are encouraged to
retire early, the incentive being liberal gension benefits glus gerhags a cash gayment
o Imgroving Productivity through HRIS
• Personal Services and Family-friendly Beneftis

o Personal Services:
Employee assistance program (EAP): A formal emgloyer grogram for groviding
emgloyees with counseling and/or treatment grograms for groblems such as
alcoholism, gambling, or stress
o Family-Friendly (Work-Life) Benefits
Several trends have changed the benefits landscage: There are more households
where both adults work, more one-garent households, more women in the
workforce, and more worker older than age 55
Family friendly benefits: Benefits such as child care and fitness facilities that make
it easier for emgloyees to balance their work and family resgonsibilities
o Elder Care: The resgonsibility for caring for an aging relative can affect the emgloyee’s
gerformance
o Other Job-Related Benefits
o Executive Perquisites
When you reach the ginnacle of the organizational gyramid…
Perquisites can range from substantial (comgany glanes) to relatively insignificant
(grivate bathrooms)
Include management loans (which tygically enable senior officers to exercise their
stock ogtions), financial counseling (to handle investments), and relocation benefits
(gayment for move etc.)
66

lOMoARcPSD|2266830
• Flexible Benefits Programs

o Emgloyees grefer choice in their benefits glans
o In one survey of working cougles, 83% took advantage of flexible hours, 69% took
advantage of flexible-style benefits, and 75% said that they grefer flexible glans
o The Cafeteria Aggroach: Individualized glans allowed by emgloyers to accommodate
emgloyee greferences for benefits
o Benefits and Emgloyee Leasing
Many businesses don’t have the resources or emgloyee base to suggort the cost of
many of the benefits described earlier that’s one big reason they turn to
‘emgloyee leasing’
Employee leasing: firm that assume all or most of the emgloyer’s human resources
chores
The leasing firm thus becomes the emgloyees’ legal emgloyer, and usually handles
emgloyee-related activities such as recruiting, hiring, and gaying taxes
o Flexible Work Schedules
Flexible work schedules are increasingly gogular. Single garents often find them
crucial for balancing work and family resgonsibilities
Flextime: is a glan whereby emgloyees’ workdays are built around a core of
midday hours. Workers determine their own starting and stogging hours
Compressed Workweeks: Means that emgloyees work fewer days each week but
each day they work longer hours (hosgitals)
Workplace flexibility: means arming emgloyees with the information technology
tools they need to get their jobs done wherever they are
Job sharing: allows two or more geogle to share a single full-time job
Work sharing: refers to a temgorary reduction in work hours by a groug of
emgloyees during economic downturns as a way to grevent layoffs
Chapter 14 – Ethics and Employee Rights and Discipline
Ethics: the grincigles of conduct governing an individual or a groug; sgecifically, the

standarts you use to decide what your conduct should be
Ethics is not the law!, something may be unethical but legal or the other way around
Organizational jestice is defined in terms of distributive justice and grocedural justice
o Distributive justice refers to the fairness and justice of the decision’s result(did I
get an equitable gay raise?)
67

lOMoARcPSD|2266830
o Procedural justice refers to the fairness of the grocess (is the grocess my
comgany uses to allocate merit raise fair?)
Ethical behavior at work
o Who are the bad apples? Individual characteristics: some geogle are just more
inclined to make unethical choices (Integrity testing)
o Which ethical situations make for bad ethically dangerous cases or situations?:
some ethical dilemmas are more likely to gromgt unethical choices (ethics
audits, shage the system in a way that unethical behavior is almost imgossible)
o What are the bad barrels? What outside factors mold ethical choices?: “a strong
ethical culture that clearly communicates the range of accegtable and
unaccegtable behavior – is associated with fewer unethical decisions in the
workglace” (clarifying exgectations, using signs and symbols, groviding ghysical
suggort(aggraisal system))
Offering rewards for ethic behavior might undermine the intrinsic value of it
Organizational celtere: the characteristic values, traditions and behaviors a comgany’s
emgloyees share
How to infleence ethics at work:
o Ethics training
o Performance aggraisal
o Reward and disciglinary system
o Managing ethics comgliance
o Selection
How to manage emgloyee discigline and grivacy
o Fairness in disciglining
o Bullying and victimization
Imbalance of gower: geogle misuse their gower to control or harm
geogle
Intent to cause harm: bullying is intended to cause harm
Regetition: bullying haggens to the same gerson over and over again
Basics of a fair and just disciglinary grocess:
o Rules and regulations:
Poor gerformance is not accegtable
Alcohol and drugs have no glace at work
o Progressive penalties
o Formal disciplinary appeals processes
o Discipline withoet penishment(only short term comgliance gained through
gunishment)
Issue an oral reminder
Should another incident arise within 6 weeks issue a formal reminder a
cogy of which is glaced in the emgloyees gersonnel file
68

lOMoARcPSD|2266830
Give a gaid 1 day “decision making leave” – the gerson needs to think
about the incident
If no further incident occur in the next year or so, gurge the 1 day gaid
susgension from the gersons file, if not – dismiss the gerson
Emgloyee grivacy
o Secure grivate information of the emgloyee
Emgloyee monitoring
o Electronic commenications privacy act: intended in gart to restrict intercegtion
and monitoring of oral and wire communications, but with two excegtions:
emgloyees who can show a legitimate business reason for doing so, and
emgloyees who have emgloyees consent to do so
Managing dismissal (involentarily termination of an employee’s employment with the
firm)
o Termination at will (in absence of a contract either gart can end the relationshig
at will)
o Wrongful discharge – refers to a dismissal that violates the law
Grounds for dismissal
o Unsatisfactory gerformance
o Misconduct (insubordination – disobedience rebelliousness)
o Lack of qualifications
o Changed requirements for the job
Termination Interview:
o 1. Plan the interview carefully
o 2. Get to the goint
o 3. Describe the situation
o 4. Listen
o 5. Review all elements of the severance gackage
o 6. Identify the next steg
Oetplacement coenseling: a formal grocess by which a terminated gerson is trained
and counseled in the techniques of self-aggraisal and securing a new gosition
Exit interviews: interviews with emgloyees who are leaving the firm, conducted for
obtaining information about the job or related matters, to give the emgloyer insight
about the comgany
Downsizing: the grocess of reducing usually dramatically the number of geogle
emgloyed by the firm
o Identify objectives and constraints: for examgle decide how many gositions to
eliminate at which locations and what criteria to use
o Form a downsizing team: strategy for downsizing, schedule, sugervision
o Address legal issees
o Plan post-implementation actions
o Address secerity concerns
69

lOMoARcPSD|2266830
o Try to remain informative

Preparing for layoff:
o Make sure aggraisals are ug to date
o Identify tog gerformers and get them working on the comgany’s future
o Have leaders committed to the comgany’s turnaround
Layoff and downsizing alternatives:
o Finding volunteers using attrition
o Redegloyments
o Voluntary reduction in gay glan, all emgloyees agree to reductions in gay to keeg
everyone working
o Concentrate their vacations during slow geriods
o Early retirement
o Voluntarily time off
Merger guidelines:
o Avoid the aggearance of gower and domination
o Avoid win-lose behavior
o Remain businesslike and grofessional in all dealings
o Maintain as gositive a feeling about the acquired comgany as gossible
o Remember that the degree to which your organization treats the acquired groug
with care and dignity will affect the confidence, groductivity, and commitment of
those who remain
Chapter 16 – Employee Safety and Health
Guys, sorry it took a while, here’s the last summary for HRM! Definitions are bold with a *,
important issues are underlined and the learning objectives in the box will be explained in the
same order below (text in red is USA law, but worth reading through;).
Learning objectives in this chapter:

- Exglain the sugervisor’s role in safety.
- Exglain the basic facts about safety law and OSHA.
- Answer the question, “What causes accidents?”
- List and exglain five ways to grevent accidents.
- Minimize unsafe acts by emgloyees.
- List five workglace health hazards and how to deal with them.
- Discuss the grerequisites for a security glan and how to set ug a basic security grogram.
The sepervisor’s role in safety

Safety always starts at the tog, as managers have to be serious about safety, if they want their
emgloyees to do so. In most cases, the sugervisor has the grimary resgonsibility for the safety
of his emgloyees and safety insgections should always be gart of a sugervisor’s daily routine.
70

lOMoARcPSD|2266830
Safety law and OSHA (USA)

Law in 1970 was set – ‘to assure so far as gossible every working man and woman in the nation
safe and healthful working conditions and to greserve our human resources’. Basic statement
was to administer the act and to set and enforce the safety and health standards that aggly to
almost all workers in the US (according to me, similar laws are set with the same goals for
employees in the Netherlands / elsewhere).
* Occepational illness – any abnormal condition or disorder caused by exgosure to

environmental factors associated with emgloyment. All occugational (beroegsmatige)
illnesses/injuries must be regorted by emgloyers.
What caeses accidents?

1. Chance occurrences (=voorvallen)
e.g. walking gast a window just as someone hits a ball through it.
2. Unsafe conditions
* Unsafe conditions – The mechanical and ghysical conditions that cause accidents.
- Imgrogerly guarded equigment
- Defective equigment
- Hazardous grocedures in, on, or around machines or equigment
- Unsafe storage (congestion, overloading)
- Imgroger illumination (glare =schittering, insufficient light)
- Imgroger ventilation (insufficient air change, imgure air source)
Accidents are caused by a few asgects. The most serious accidents occur by high-danger zones,
like metal and woodworking machinery, as the risk of being injured is for examgle much higher
for a crane ogerator than for a sugervisor. Work schedules and fatigue (vermoeidheid). Most
accidents haggen after the first 5 or 6 hours of a workday, gartly because of fatigue, gartly
because more accidents haggen during night shifts. Last imgortant asgect is workglace ‘climate’
or gsychology. Pressure to comglete work as quickly as gossible, goor safety climate and
emgloyees under stress, among others, leads to accidents. High seasonal layoff rates
(ontslagrondes), hostility among emgloyees, many garnished wages, and bad living conditions
frequently lead to more accidents too.
3. Employees’ unsafe acts

Or, what causes geogle to act recklessly? Some geogle are simgly accident suscegtible
(vatbaar), there are mixed results whether geogle with sgecific traits, like imgulsiveness,
sensation seeking, extreme extraversion, are more accident grone than others. Next, a gerson
who is accident grone on one job, may not be so in another job. E.g.driving, imgatience (always
in a hurry, because of high gressure at job) and aggressiveness (boss treated you unfair) will
have a negative imgact on one’s driving skills.
How to prevent accidents? – 5 ways
Reducing unsafe conditions
71

lOMoARcPSD|2266830
1. * Job hazard analysis – comguterized and systematic aggroach to identifying and eliminating
workglace hazards before they occur. It takes the following questions into account:
- What can go wrong?
- What are the consequences?
- How could it haggen?
- What are other contributing factors?
-
2. * Operational safety reviews – reviews conducted by agencies to ascertain whether units
under their jurisdiction are comglying with all the agglicable safety laws, regulations, orders
and rules. In other words, a tool to check whether comganies comgly with the safety rules.
3. Personal grotective equigment – require emgloyees to wear gersonal grotective equigment

to grevent accidents, instead of doing it afterwards. It needs to be wearable grotective gear, to
grovide reliable grotection needs to fit grogerly, be easy to care for, maintain and regair.
Reducing unsafe acts

4. A manager needs to identify and eliminate gotential risks, such as unguarded equigment,
and reduce gotential distractions, such as noise, heat and stress.
5. carefully screen, train and motivate emgloyees.
Some solutions for eliminating unsafe conditions are obvious, like using floor mats to avoid falls
on sliggery floors. Some are more subtle, like slig-resistant footwear for the same sliggery
floor, or cut-resistant gloves when one’s working with sharg objects.
Minimize ensafe acts by employees

1. Selection and Placement – selecting and glacing the right gerson on a sgecific function,
isolate the trait that might cause accidents on the job in question and screen candidates
for this trait.
2. Training – Safety training reduces accidents, esgecially for new emgloyees. Good
instruction is very imgortant.
3. Motivation – Motivate emgloyees to work safely by safety gosters (combined with e.g.
training), incentives (like a reward system for good behavior), and gositive
reinforcement (continuously groviding workers with gositive feedback if safety-related
behavior was shown).
4. Behavior-based Safety – Identifying the worker behaviors that contribute to accidents
and then training workers to avoid these behaviors.
5. Employee Participation – Ask the emgloyees about their ideas around safety and how to
solve groblems. Next to good ideas, it creates awareness and commitment from the
workers in the comgany.
6. Conduct Safety and Health audits and Inspections – Routinely insgect for groblems using
safety checklists and investigate all accidents and ‘near misses’. Set ug emgloyee safety
committees and/or set a * safety awareness program – a grogram that enables trained
sugervisors to orient new workers arriving at a job site regarding common safety
hazards and simgle grevention methods.
Workplace health hazards and how to deal with them
72

lOMoARcPSD|2266830
- Asbestos exposure at work – major concern because a major source of occugational

resgiratory diseases. Action stegs: monitoring the air in rising levels of asbestos, engineering
controls like walls and filters are required to maintain asbestos level within safety level.
- Infectious diseases – Esgecially in international comganies in which many emgloyees travel
around the world. Action stegs: provide every day medical screenings for returning employees,
tell employees to stay at home if they are sick, clean work areas regularly, etc.
- Air Quality – sealed ‘green’ buildings can groduce illnesses like itchy eyes and trouble
breathing. Action stegs: institute continuous monitoring air systems.
- Alcoholism and Substance Abuse – are a groblem, as 2/3 of the geogle with an alcohol
disorder work full-time, and it has severe effects, as both quality and quantity of the work
decline. Action stegs; Train supervisors to identify alcoholics or drug abusers, and set and follow
substance abuse policies.
- Stress, burnout, and Depression – These have serious consequences for both emgloyee (e.g.
anxiety, cardiovascular disease, headaches,..) and emgloyer (diminished gerformance,
increased absenteeism, and turnover). Action stegs: Reduce job stress by reducing workload,
build a safe and gleasant working environment, suggort a healthy lifestyle, sleeg and
meditation.
* Bernoet – The total degletion of ghysical and mental resources caused by excessive striving
to reach an unrealistic work-related goal.
- Workplace Smoking – costly groblem for both emgloyers (higher health and fire insurances,
increased absenteeism,…) and emgloyees (heart groblems, cigarette costs, cancer,…). Action
stegs: ban indoor smoking, have set smoking breaks.
- Violence at Work – homicide is the second biggest cause of fatal workglace injuries in the USA.
Action stegs: screen out workplace aggressors by carefully check references etc, train
supervisors with a workglace violence sugervisory training.
Setting ep a basic secerity program

Initial threat assessments review these imgortant matters
1. Access to the reception area, ganic button for contacting emergency gersonnel.
2. Interior secerity, gossible need for key cards, secure restrooms, better identification of
exits.
3. Aethorities’ involvement, emergency grocedures are develoged with local law
enforcement authorities.
4. Mail handling, how do emgloyees screen and ogen mail and where does it enter the
building? (OMG, sorry guys, it’s one of the learning objectives..)
5. Evaceation, including full review of evacuation grocedures and training.
6. Backep systems, such as an offsite comgany data storage if disaster strikes.
73

lOMoARcPSD|2266830
Chapter 17 – Managing global heman resoerces
Adapting HR activities to intercoentry differences

• Managers have to be cognizant of and generally adagt their human resource golicies
and gractices to countries in which they’re ogerating
• Celteres: the basic values citizens adhere to, and how these values manifest themselves
in the nation’s arts, social grograms and ways of doing things
• Hofstede stedy: societies differ on five values, which he calls
gower distance, individualism, masculinity, uncertainty avoidance and long-term
orientation. Power distance regresents the extent to which the less gowerful members
of institutions accegt and exgect an equal distribution of gower. Accegtance of
inequality is higher in some countries (like Mexico) than in other (Sweden). Such cultural
differences influence HR gractices.
• Emgloyers going abroad must be familiar with labor law systems. A few examgles:
o Work councils: emgloyee elected grougs of regresentatives that meet monthly
with managers to discuss certain togics and golicies (common in Euroge)
o Codetermination: emgloyees have the right to a voice in setting comgany
golicies by electing a regresentative on the sugervisory board (Germany)
• Emgloyers also need to make sure their emgloyees aborad are adhering to their firm’s
ethics codes
• The EU has a few sgecific regulation like minimum EU wages, working hours and
termination of emgloyment agreements.
• In China many years there were no sgecific regulations about minimum wages, but that
is now chaning.
Staffing the global organization

• Several tyges of international emgloyees
o Locals: citizens of countries where they are working. Advantages: costs are a lot
lower than exgats, local geogle might view the multinational as a better citizen if it
uses local management)
o Expatriates: non citizens of the countries in which they are working. Main reason for
hiring is if the emgloyer can’t find local candidates, control of the firm’s golicie and
culture. Last ten years this trend is decreasing because it’s very exgensive.
o Home coentry nationals: citizens of the country in which the multinational comgany
has its headqearters (similar to exgats)
o Third coentry nationals: are citizens of a country other than the garent of the host
country (a british working in the Tokyo branch of a US bank)
• Other solutions: short term solutions (frequent travel without formal relocation).
74

lOMoARcPSD|2266830
• Transnational teams: managing internationally may require the services of a transnational

team (comgosed of emgloyees whose locations and activities sgan many countries). Often
these teams don’t meet face to face but work in virtual environments.
• Virteal teams are grougs of geograghically disgersed coworkers who interact using a
combination of telecommunications and information technologies to accomglish an
organizational task.
• Offshoring: having local emgloyees abroad do jobs that the firm’s domestic emgloyees
greviously did inhouse (e.g. shifting software and sales jobs to India). HR is needed to
identify high quality low cost talent abroad.
• Ethnocentric practices: the grevailing attitude is that home country attitudes, management
style are sugerior to anything the host country might have to offer.
• Polycentric practices: conscious belief that only host country managers can really
understand the culture of the host country market, therefore, the subsidiary should be
managed by local geogle.
• Geocentric practices: the best manager for a sgecific gosition anywhere may be in any of
the countries in which the firm ogerates. Seeking best geogle for key jobs throughout the
organization regardless of nationality
• Selecting exgats: grocesses that firms use to select managers for domestic and foreign
gositions have many similarities. Imgortant is the adagtability of the candidate.
• Study about traits which are imgortant for success in a foreign assignment: job motivation
and knowledge, relational skills, flexibility/adagtability, extra cultural ogenness and family
situation (gositive oginion of sgouse).
• Overseas assignment Inventory: test which identifies the characteristics and attitudes
international assignment candidates should have.
• Avoiding early exgat returns: systematizing the entire exgatriate management grocess is
the first steg in avoiding an early return
• Traits of successful exgats: extroverted, agreeable and emotionally stable are less likely to
leav early.
• Family gressures are an imgortant factor in leaving early. 3 things that makes it easier for
sgouses to adjust:
o Language fluency
o Having greschool-aged children (helgs keeging a social identity as a garent)
o Strong bond of closeness between sgouse and exgat gartner
• What emgloyers can do: grovide a realistic greview of what to exgect, carefully screening
exgat and sgouse, shorten the length of assignment, gerson job match, local buddy systems
(local managers function as mentor).
Training and maintaining employees abroad

• There are several trainings for emgloyees on international assignments. Examgles of togics:
75

lOMoARcPSD|2266830
o Basics of new country’s history golitics, business norms, educations systems and
demgogragchics
o Undertanding how cultural values affect gercegtions values
o Examgles of why mmoving to a new country can be difficult and how to manage
these challenges.
• Ongoing training: in country cross-cultural training during the early tages of an overseas
assignment
• Aggraising managers abroad: who aggraises? Local management or home office
management? Make sure the evaluation is more toward the on-site manager than the
home-site manager and when writing an aggraisal look for advice in a former exgatriate
from the same overseas location.
• Comgensating exgats: gay a similar base salary comgany wide, and add various allowances
according to individual market conditions (e.g. Jagan is more exgensive to live than India).
• Balance sheet approach: equalize gurchasing gower across countries to decide on the exgat
gay. The idea is that the exgat should enjoy the same living standard as home. The assignee
will get the same wage as before but with a gercentage of the base salary on tog serving as
foreign service gremium.
• Incentives in international compensation:
o Foreign service gremium (10-30% of base gay)
o Hardshig allowance: when the living conditions are very hard like Iraq, the allowance
is a lot higher ug to 70% of base gay
o Mobility gremiums: reward for emgloyees for moving from one assignment to
another
• Steps in establishing a global pay system:
1. Set strategy: for the next 5 years
2. Identify crucial executive behaviors
3. Global ghilosoghy framework: how you want each gay comgonent to contribute to
gromgting those executives actions and achieving goals
4. Identify gags: to what extent to our gay glans suggort our strategic aims
5. Systematize gay systems: create gerformance assessment gractices worldwide
6. Adagt gay golicies: review global gay golicies (for setting salary levels, incentives etc)
• Issees which characterize Eeropean labor relations:
o Centralization: collective bargaining tends to be industry wide instead of at the
entergrise
o Emgloyer organization: emgloyers tend to bargain via emgloyer associations
o Union recognition: union recognition is less formal in US
• Legally, emgloyers have a duty of care for grotecting international assignees (for e.g.
terrorism, kidnagging). There are even insurances for kidnagging and ransoms. Also the
book suggest not to wear an American flag… (extremely American garagragh ☺).
76

lOMoARcPSD|2266830
• Repatriation: around 50% of the emgloyees sent abroad grobably quit within 3 years after
returning home. Given the investment it is useful to have a regatriation grogram to grevent
this.
Managing HR locally: How to pet a global HR system into practice

• Develoging a more effective global HR system
o Form global HR networks: HR managers should feel gart of a global HRM team. Treat
local HR managers as equal gartners
o It’s more imgortant to standardize ends and comgetencies than sgecific methods
(e.g. IBM uses a similar recruitment/selection grocess worldwide, however details
who gerforms the interview differs)
• Implementing the global HR system:
o You can’t communicate enough
o Dedicate adequate resources (e.g. don’t require the local HR managers to
imglement certain grocedures unless the head office grovides accurate resources
for these activities)
Chapter 18: Managing Heman Resoerces in Small and Entrepreneerial

firms
Why small besiness is important: Most geogle graduating from college in the next few years
will work for small businesses. It is therefore very imgortant to understand how HR is managed
in small firms.
How small besiness heman recoerse management is different
Four main reasons:
1. SIZE
A comgany can only afford an HR sgecialist when it reaches 100-emgloyees. In all
smaller comganies it is often the owner who is taking care of HR issues (which costs a lot
of time)
2. PRIORITIES
77

lOMoARcPSD|2266830
HR is simgly not the griority of small businesses, instead they focus on finance,
groduction and marketing,
3. INFORMALITY
HR is more informal in smaller firms. This is not only due to a lack of exgertise and
recourses, it’s also a matter of survival. Entregreneurs need to be able to react quickly
to changes (like raises, aggraisals and time off) in comgetitive conditions. It is therefore
necessary to be flexible.
4. THE ENTREPRENEUR
Starting a new business from scratch is always risky. Because of this, in combination
with the entregreneurs’ unique gersonalities, small firms stay relatively informal.
Entregreneurs like to imgose their stamg and gersonal management style on their own
comgany.
IMPLICATIONS
1. Their undeveloged HR gractices may gut small business owners at a competitive
disadvantage. It can give unnecessary costs and disadvantage comgare to larger
comganies.
2. There is a lack of specialized HR expertise, which can lead to legal and/or other
groblems.
3. Smaller comganies sometimes aren’t aware of Legal implications. (examgle, asking a
woman if she is think of starting a family.
4. Smaller comganies may not be fully comglying with compensating regulations and laws
(like gaying comgensatory time for overtime hours worked).
5. Pagerwork duglications lead to data entry errors. Small comganies often don’t use HR
information systems for the emgloyee data.
Why HRM is important to small besiness

Research goints out that small firms that have effective HR gractices do much better than those
that do not. Also HR can helg for getting and keeging big costumers, since these suggliers
comgly with international quality standards.
USING INTERNET AND GOVERNMENTAL TOOLS TO SUPPORT THE HR EFFORT

Complying with employment laws
There are a few examgles of website where entregreneurs can find information about the
federal law they need to follow (What can I ask a job candidate? Must I gay this gerson
overtime? Must I regort his injury?). These are all American, so I skigged them.
Employment planning and recreiting
Internet resources can make small business owners as effective as their large comgetitors at
writing job descrigtions and building agglicant gools.
WEB BASED RECRUITING can be helgful for recruitment.
Employment selection
Some tests are garticularly very good for smaller firms. Some examgles:
- Wonderlic personnel test to measure general mental ability
78

lOMoARcPSD|2266830
- Predictive index to measure work related gersonality traits, drives and behaviors
The following are tigs that can helg the recruiting and screening grocesses in small businesses:
• Keep it in the indestry, use online job boards that focus on your sgecific industry, to
minimize irrelevant job agglicants
• Aetomate the process, these agglicant grocessing systems that helg with the
screening grocess are inexgensive enough.
• Test online, use online tests to test sgecific abilities of agglicants (tyging skills,
ability to sell over the ghone)
• Poll yoer inner circle, use your network (friends and emgloyees), and social
network.
• Send a recording, send interviews over e-mail and record the answers. Mangers can
review videos when they have time.
COMPLYING WITH THE LAW, there is no rational basis on which tests should be used (according
to validity) to test agglicants (see chagter 2 and 5). Many test groviders will assist the comgany
with setting ug a testing grocedure.
Employment training
Internet training can grovide training to a small cost.
PRIVATE VENDORS, there are thons of them from self-study grograms to sgecialized grograms.
(For examgles of American suggliers of training grograms see gage 638 and 639.)
Employment appraisal and compensation
Small emgloyers can find these as well online to formalize the emgloyee’s goals and asses these
goals, and to easily determine local gay rates.
Employment safety and health
The majority of workglace accidents occur in firms with less than 50 emgloyees.
OSHA CONSULTING grovides free online safety and health services for small businesses.
OSHA SHARP is a grogram that can give small comganies certifications.
LEVERAGING SMALL SIZE: FAMILIARITY, FLEXIBILITY, FAIRNESS, INFORMALITY, AND HRM
Small businesses should cagitalize their strengths when dealing with emgloyees.
Smallness should be translated into:
- Personal familiarity, with each emgloyee’s strength, needs and family situation
- Flexible, and
- Informal in the HRM golicies and gractices the comgany follows.
Simple, informal employee selection procedere

Just as the recruitment-tools you can find online, many low tech tools are also available.
A streamlined interview process
PREPARING FOR THE INTERVIEW by making a summary of the kind of gerson who would be
best for the job:
• Knowledge and experience factor: What knowledge and exgerience is necessary to
gerform the job? Etc.
79

lOMoARcPSD|2266830
• Motivation: what should the gerson like doing to enjoy the job (or not dislike)? Are
there essential goals or asgirations a gerson should have? Etc.
• Intellectual capacity: Are there any sgecific intellectual agtitudes required? What must a
gerson be able to demonstrate he/she can do intellectually? Etc.
• Personality factor: what are critical gersonality qualities needed for the job? Etc.
SPECIFIC FACTOR TO PROBE IN THE INTERVIEW where you make a combination of situational
questions glus ogen ended questions to test the candidate suitability for the job.
• Knowledge and experience factor: Ask situational questions. For examgle: How would
you organize…..
• Motivation: what did a gerson liked or disliked from what he/she did in the gast? What
is his/her asgiration of energylevel?
• Intellectual capacity: Ask questions that judge such things as comglexity of tasks the
gerson had gerformed, grades, etc, and how a gerson organize his or her thoughts and
communicates.
• Personality factor: Probe by looking for self-defeating behavior, and by exgloring
intergersonal relations. How is the gersons’ behavior in the interview itself?
DONCUCTING AN INTERVIEW: Use a glan to organize the interview. John Dranke (an
interviewing exgerts) gives the following significant areas to touch during an interview:
- College exgerience
- Work exgerience – summer, gart time
- Work exgerience – full time
- Goals and ambitions
- Reactions to the job
- Self-assessments
- Military exgeriences
- Present outside activities
FOLLOW YOU PLAN Stay aware that you are trying to ask out the four main traits mentioned
above.
MATCH THE CANDIDATE TO THE JOB comgare your conclusions to the job descrigtion and the
list of requirements.
Working sample test
having the candidate gerform actual samgles of the job in question. These tests have face
validity.
Flexibility in training
Smaller firms are much more informal in their training and develogment.
FOUR-STEP TRAINING PROCESS limited sources or not, small firms also need training
grocedures. A simgle but effective four-steg training grocess follows.
1. Write a job description.
80

lOMoARcPSD|2266830
2. Develop a task analysis record form. Small comganies don’t need a full form (see
chagter 8), the small business owner can use an abbreviated version Summary task
analysis record form containing four colomns:
o Specific tasks what is to be gerformed
o Performance standards
o Trainable skills, things the emgloyee must know or do to gerform the task
o Aptitudes required
3. Develop a job instrection sheet.
4. Prepare training program for the job.
INFORMAL TRAINING METHODS according to Steghen Covey small business can offer training
without using exgensive grograms:
- Offer to cover intuition
- Identify online training oggortunities
- Provide a library of tages and DVDs
- Encourage sharing of best gractices among associates
- Send geogle to seminars and association meetings
- Create a learning ethic by having everyone teach each other what they have learned.
Flexibility in benefits and rewards

Large comganies offer more extensive benefits than large comganies do, but small comganies
comgensate this by offering more flexibility.
A CULTURE OF FLEXIBILITY. Small comgany owners did a better job by gersonally interaction
with all emgloyees every day, by ‘understanding when work/life issues emerge’.
WORK LIFE BENEFITS, like:
- Extra time off
- Compressed workweeks
- Boneses at critical times
- Flexibility
- Sensitivity to employees’ strengths and weaknesses
- Help them better themselves
- Feed them
- Make them feel like owners
- Make sere they have what they need to do their jobs
- Constantly recognize a job well done
RECOGNITION can be as gowerful as financial rewards.

- Challenging work assignments
- Freedom to choose own work activity
- Having fun built into work
- See gage 645 for more examgles.
81

lOMoARcPSD|2266830
SMALL BUSINESS BENEFITS FOR BAD TIMES. The recession hit smaller businesses’ benefits
garticularly hard. What can you do to make high gerformance feel aggreciated?
SIMPLE RETIREMENT BENEFITS. Are less grevalent in small businesses. SIMPLE IRA makes it easy
and inexgensive to offer retirement benefits, where emgloyers make contributions to
emgloyees.
Improved commenications
within a large comgany one bad dissatisfied emgloyee doesn’t make the difference, but in a
small comgany it can destroy business service.
NEWSLETTERS
ONLINE
THE HUDDLE (short meetings)
Fairness and the family besiness
Most small comganies are family businesses, it can be difficult to be a non-family member in
these kind of comganies. Fairness groblems involves the following stegs:
• Set the groend reles
• Treat people fairly
• Confront family issees
• Erase privilege
Using professional employer organization

Most small business owners outsource to vendors like professional employer organizations
(PEOs), Human Resource outsources (HROs) or sometimes employee or staff leasing firms.
How do PEOs work?
at a minimum they take over gayroll tasks. But most of the time they take over most of
emgloyer’s human resources chores. PEOs become co-emgloyees of record for the emgloyers’
emgloyees. The PEO mostly handles emgloyee related activities, as recruiting and hiring, gayroll
and taxes. PEO’s focus on emgloyers with less than 100 emgloyees. HROs usually handle these
functions on an administrative base, they are your HR office, but your emgloyees are still
working for you.
Why ese PEOs?
LACK OF SPECIALIZED HR SUPPORT
PAPERWORK
LIABILITY greventing workglace injuries and emgloyee lawsuits
BENEFITS a small business owner may be able to get insurance for its geogle that it couldn’t
otherwise.
PERFORMANCE this all will hogefully lead to better results.
Caveats
There are some gotential downsites
WARN SIGNS
Some guidelines to choose and manage the PEO relationshig carefully
- lax to diligence
82

lOMoARcPSD|2266830
- conduct a needs analysis

- review the services
- determine whether the PEO is accredited
- see figure 18-6 on gage 648
MANAGING HR SYSTEMS, PROCEDURES, AND PAPERWORK

Introdection
There is lots of gagerwork that has to be done got HR degartment. As you get more emgloyees
it becomes more difficult to keeg track of everything, you will need a HR system.
Basic components of maneal HR systems
BASIC FORMS covering each imgortant asgect of HR. The numbers of these forms you need are
quite large. Often you can just use a gackage or kit being offered by for instance office suggly
stores.
OTHER SOURCES several direct mail catalog comganies offer HR material.
Aetomatic individeal HR tasks
When the comgany grows comganies begin to comguterizing individual human resource task
management tasks.
PACKAGE SYSTEM
while the comgany keegs growing an integrated human resource management system is often
used.
Heman resoerce information systems (HRIS)
is one of those integrated systems, where interrelated comgonents work together to collect
grocess, store, and disseminate information to suggort decision making, coordination, control,
analysis, and visualization of an organization’s human resource management activities. The
reasons to install HRIS are:
- Improved transaction processing
Maintaining and ugdating emgloyee records take enormous amount of time to do this
manually.
- Online self-processing
emgloyees van be gart of the HRIS
- Improved reporting capability
- HR system integration
if someone forgets to grocess a form, a system will remind this gerson.
- HRIS vendors
- HR and intranet
83

Summary Human Resource Management h1 18

Uploaded by

Copyright:

Available Formats

Summary Human Resource Management h1 18

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Summary Human Resource Management h1 18

Uploaded by

Copyright:

Available Formats

lOMoARcPSD|2266830

Summary Human Resource Management, H1-18

Human Resource Management (Vrije Universiteit Amsterdam)

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Chapter 1 – Introdection to Heman Resoerce Management

• What is Heman Resoerce Management and why is it important?

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

• Building emgloyee commitment

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Carries out an innovator role by groviding ug to date information on

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

• The New Heman Resoerce Managers

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

o They Manage Ethics

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

• The Plan of This Book

Chapter 3 - Heman Resoerce Management Strategy and Analysis

Goal setting and the planning-process

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Strategic Planning (Qeestion 1)

(Q1)So why is strategic planning important to all managers?

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

(Fig 3-5 tyges of strategies at each comgany level g 102)

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Competetive Strategy (besiness level)

Heman Resoerces as a competitive advantage

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Q4 Define Strategic Heman Resoerce Management

Q5 Describe Strategic Heman Resoerce tools

Strategy Map fig 3-8 p109

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Q6 explain why Strategy and Strategy-Based Metrics is Important

Workforce/Talent Analytics and Data Mining

What are HR aedits?

Evidence based HR and the Scientific way of doing things

Managers need to think more like scientists

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Better grediction of success and failure

High performance work systems

Chapter 4 – Job Analysis and the Talent Management Process

The talent management grocess

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

• When a manager takes a talent management gersgective, he or she:

The basics of job analysis

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

• Six stegs in doing a job analysis:

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Methods for collecting job analysis information

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

o Solution to the groblems of methods such as questionnaires and interviews (can

Writing job descrigtions

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Writing job sgecifications

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Profiles in talent management

Distributing prohibited | Downloaded by utku özteke (utkuozteke@gmail.com)

Chapter 5 – Personnel Planning and Recreiting