Chapter 10 Human Resources Management Human Resources Management (HRM) formal systems for the management of people within

in an organization one of the fundamental aspects of organizational and managerial life Strategic impact of human resources 1. Create Value 2. Is rare 3. Is difficult to imitate 4. Is organized These 4 criteria highlight the importance of people and show the closeness of HRM to strategic management

Human capital the knowledge, skills, and abilities of employees that have economic value In the long run, organizations are best served when HR leaders are a strong advocate for at least 4 sets of values: strategic, ethical, legal, and financial Managing human capital to sustain a competitive advantage is perhaps the most important part of an organizations HR function The HR planning process occurs in 3 stages: planning, programming, and evaluating

Demand forecasts determining how many and what type of people are needed derived from organizational plans Supply of Labor how many and what types of employees the organization will actually have supply analysis Job analysis a tool for determining what is done on a given job and what should be done on that job Job description about the job itself: essential tasks, duties, etc Job specification describes the skills, knowledge needed, etc to perform the job The staffing function consists of 3 related activities: recruitment, selection, and outplacement

Recruitment the development of a pool of applicants for jobs in an organization Internal considering current employees for promotions and transfers (Many companies use a job-posting system a mechanism for advertising open positions, typically on a bulletin board or the companys internet External brings new blood to the business Selection choosing from among qualified applicants to hire into an organization

The most popular selection tool is interviewing, and every company uses some type of interview Unstructured interview the interviewer asks different questions Structured interview the interviewer conducts the same interview with each applicant comparing their answers to a standardized set of answers o Situational interview focuses on hypothetical situations o Behavior interview explores what candidates have actually done in the past Unstructured interviews can help establish rapport and provide a sense of the applicants personality, but they may not provide the manager with specific information about the candidates ability. Structured interviews tend to be more reliable predictors of job performance because they are based on the job analysis that has been done for the position Among the oldest employment selection devices are cognitive ability tests The most widely used performance test is the typing test Assessment center a managerial performance test in which candidates participate in a variety of exercises and situations

Reliability the consistency of test scores over time and across alternative measurements Validity the degree to which a selection test predicts or correlates with job performance o Criterion-related validity refers to the degree to which a test actually predicts or correlates with job performance o Content validity concerns the degree to which selection tests measure a representative sample of the knowledge, skills, and abilities required for the job (more subjective) Outplacement the process of helping people who have been dismissed from the company regain employment elsewhere Employment-at-will the legal concept that an employee may be terminated for any reason Termination interview a discussion between a manager and an employee about the employees dismissal Adverse impact when a seemingly neutral employment practice has a disproportionately negative effect on a protected group Training teaching lower-level employees how to perform their present jobs Development helping managers and professional employees learn the broad skills needed for their present and future jobs 4 Phrases of the training process 1. Needs Assessment an analysis identifying the jobs, people, and departments for which training is necessary 2. Design of training programs

3. Decisions about the training methods to be used and whether the training will be provided on or off the job 4. Evaluate the programs effectiveness Orientation training training designed to introduce new employees to the company and familiarize them with policies, procedures, culture, and the like Team training training that provides employees with the skills and perspectives they need to collaborate with others Diversity training programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce Coaching usually the most effective and direct management development tool Performance Appraisal assessment of an employees job performance Serves as an administrative purpose to make salary, dismissal, and promotion Serves as a developmental purpose identify and plan additional training Performance appraisals can assess 3 basic categories of employee performance: traits, behaviors, and results Trait appraisals involve subjective judgments about employee characteristics related to performance. Behavioral appraisals focus more on observable aspects of performance Critical incident manager keeps a log and record of each significant behavior Results appraisals tend to be more objective and can focus on production data such as sales volume (for a salesperson), units produced (for a line worker), or profits (for a manager). Management by objectives (MBO) a process in which objectives set by a subordinate and a supervisor must be reached within a given time period 360-degree appraisal process of using multiple sources of appraisal to gain a comprehensive perspective on ones performance Researchers found that the 360-degree appraisals were most effective with managers in cultures that were individualistic and had relatively low power distance Appraisal feedback works best when it is specific and constructive related to clear goals or behaviors and clearly intended to help the employee rather than simply criticize Factors that influence the wage mix:

3 types of decisions are crucial for designing an effective pay plan: pay level, pay structure, individual pay. Pay level refers to the choice of weather to be a high-, average-, or low-paying company. Pay structure decision is the choice of how to price different jobs within the organization. Individual pay decisions concern different pay rates for jobs of similar worth within the same family. Incentive systems Individual incentive plans consists of an objective standard against which a workers performance is compared (most common type) Gainsharing plans concentrate on rewarding employees for increasing productivity or saving money in areas under their direct control Profit-sharing plans are usually implemented in the division or organization as a whole, although some incentives may still be tailored to unit performance 3 basic required employee benefits are: workers compensation, Social Security, and unemployment insurance. Workers compensation provides financial support to employees suffering a work-related injury or illness Social security provides financial support to retirees Unemployment insurance provides financial support to employees who are laid off for reasons they cannot control

Cafeteria benefit program an employee benefit program in which employees choose from a menu of options to create a benefit package tailored to their needs Flexible benefit programs benefit programs in which employees are given credits to spend on benefits that fit their unique needs Comparable worth principle of equal pay for different jobs of equal worth Labor relations system of relations between workers and management Arbitration the use of a neutral third party to resolve a labor dispute (avoid wildcat strikes) Union shop an organization with a union and a union security clause specifying that workers must join the union after a set period of time Right-to-work legislation that allows employees to work without having to join a union

Chapter 11 Managing the Diverse Workforce Managing Diversity managing a culturally diverse workforce by recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their difference to the organizations advantage

Diversity - differences that include religious affiliation, age, disability status, military experience, sexual orientation, economic class, educational level, lifestyle, gender, race, ethnicity, and nationality Diversity Programs

Employers are likely to outsource some work to factories and firms in developing nations where birthrates are high and the labor supply is more plentiful. Glass Ceiling - an invisible barrier making it difficult for women and minorities to move beyond a certain level in the corporate hierarchy Sexual harassment conduct of a sexual nature that has negative consequences for employment Quid pro quo harassment - submission to or rejection of sexual conduct is used as a basis for employment decisions

Hostile environment - occurs when unwelcome sexual conduct has the effect of unreasonably interfering with job performance or creating an intimidating or hostile, working environment One way managers can help their managers prevent harassment from arising, or avoid punitive damages if a lawsuit is filed, is to make sure their organizations have an effective and comprehensive policy on harassment in place. The largest unemployed minority population in the United States is people with disabilities. Affirmative action special efforts to recruit and hire qualified members of groups that have been discriminated against in the past Competitive Advantage through Diversity and Inclusion Ability to attract and retain motivated employees Better Perspective on a Differentiated Market Ability to Leverage Creativity and Innovation in Problem Solving Enhancement of Organizational Flexibility Challenges of Diversity and Inclusion Unexamined Assumptions Lower Cohesiveness o Cohesiveness refers to how tightly knit the group is and the degree to which group members perceive, interpret, and act on their environment in similar or mutually agreed-upon ways Communication Problems o Most negative effect on diversity Mistrust and Tension Stereotyping Martin Davidson Leveraging Difference This approach sees diversity not as a problem to be tolerated or solved, but as a resource the organization can capitalize on, even though doing so is sometimes difficult Starts with the recognition that we all bring something different to an organization Individuals must make the effort to understand the differences by asking questions and listening carefully Value the differences not only through the organizations recruitment and recognition programs but also through willingness to persist despite conflict and to incorporate new perspectives into ones own thinking

Monolithic Organization an organization that has a low degree of structural integration employing few women, minorities, or other groups that differ from the majorityand thus has a highly homogenous employee population Pluralistic organization an organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds Multicultural organization an organization that values cultural diversity and seeks to utilize and encourage it Awareness building is designed to increase awareness of the meaning and importance of valuing diversity. Skill building is designed to allow all employees and managers to develop the skills they need to deal effectively with one another and with customers in a diverse environment. Most of the skills taught are interpersonal, such as active listening, coaching, and giving feedback. Mentors higher-level managers who help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organizations Chapter 12 Leadership Leader one who influences others to attain goals; the greater number of followers, the greater the influence Two perspectives: what people want and what organizations need are neatly combined in a set of five key behaviors identified by James Kouzes and Barry Posner, two well-known authors and consultants

The best leaders: 1. Challenge the process 2. Inspire a shared vision 3. Enable others to act 4. Model the way 5. Encourage the heart Vision a mental image of a possible and desirable future state of the organization the best visions are both ideal and unique ideal communicates a stand of excellence and a clear choice of positive values Unique communicates and inspires pride in being different from other organizations Effective managers are not necessarily true leaders While managing requires planning and budgeting routines, leading includes setting the direction (creating a vision) for the firm. Supervisory leadership behavior that provides guidance, support, and corrective feedback for day-to-day activities Strategic leadership behavior that gives purpose and meaning to organizations, envisioning and creating a positive future Power the ability to influence others 5 Sources of Power French and Raven 1. Legitimate power has the right, or the authority, to tell others what to do; employees are obligated to comply with legitimate orders 2. Reward power influences others because she controls valued rewards; people comply with the leaders wishes to receive those rewards 3. Coercive power has control over punishments; people comply to avoid those punishments 4. Referent power has personal characteristics that appeal to others; people comply because of admiration, personal liking, a desire for approval, or a desire to be like the leader 5. Expert power has certain expertise or knowledge; people comply because they believe in, can learn from, or can otherwise gain from that expertise 3 traditional approaches to studying leadership Trait approach a leadership perspective that attempts to determine the personal characteristics that great leaders share Some traits leaders have: Drive set of characteristics that reflect a high level of effort Leadership motivation want to lead

Integrity the correspondence between actions and words Self-confidence allows a leader to overcome obstacles, make decisions despite uncertainty, and instill confidence in others Knowledge of the business An important personal skill: The ability to perceive the needs and goals of others and to adjust ones personal leadership approach accordingly. Behavioral approach a leadership attempts to identify what good leaders do what behaviors they exhibit 3 general categories of leadership behavior: Task performance behaviors actions taken to ensure that the work group or organization reaches its goals (referred to as concern for production, directive leadership, initiating structure, or closeness of supervision) Group maintenance behaviors actions taken to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group (concern for people, supportive leadership, or consideration) Leader-member exchange (LMX) highlights the importance of leader behaviors not just toward the group as a while but toward individuals on a personal bias Participation in decision making leader behaviors that managers perform in involving their employees in making decisions Autocratic leadership a form of leadership in which the leader makes decisions on his or her own and then announces those decisions to the group Democratic leadership a form of leadership in which the leader solicits input from subordinates Laissez-faire a leadership philosophy characterized by an absence of managerial decision making Black and Moutons Leadership Grid Concern for production (x axis) Concern for people (y axis)

Situational Approach leadership perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation The leader should first analyze the situation and then decide what to do. Vroom model a situational model that focuses on the participative dimension of leadership Decide, Consult individually, Consult the group, Facilitate, Delegate

Fielders contingency model of leadership a situational approach to leadership postulating that effectiveness depends on the personal style of the leader and the degree to which the situation gives the leader power, control, and influence over the situation. measured leadership styles with an instrument assessing the leaders least preferred coworker (LPC) Two leadership styles Task-motivated leadership leadership that places primary emphasis on completing a task Relationship-motivated leadership leadership that places primary emphasis on maintain good interpersonal relationships Hershey and Blanchards situational theory a life-cycle theory of leadership postulating that a manager should consider an employees psychological and job maturity before deciding whether task performance or maintenance behaviors are more important Job maturity the level of the employees skills and technical knowledge relative to the task being performed Psychological maturity an employees self-confidence and self-respect High mature the followers, the less the leader needs to engage in task performance behaviors. Path-goal theory a theory that concerns how leaders influence subordinates perceptions of their work goals and the paths they follow toward attainment of those goals (most generally useful situational model Robert House) 4 pertinent leadership behaviors: 1. Directive leadership a form of task performance-oriented behavior 2. Supportive leadership a form of group maintenance-oriented behavior 3. Participative leadership decision style 4. Achievement-oriented leadership behaviors geared toward motivating people, such as setting challenging goals and rewarding good performance

3 Characteristics of followers 1. Authoritarianism degree to which individuals respect, admire, and defer to authority 2. Locus of control extent to which individuals see the environment as responsive to their own behavior a. internal what happens is because of their own doing b. external just luck or fate 3. Ability peoples beliefs about their own abilities to do their assigned jobs Substitutes for leadership factors in the workplace that can exert the same influence on employees as leaders would provide Charismatic leadership a person who is dominant, self-confident, convinced of the moral righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in followers Transformational leaders leaders who motivate people to transcend their personal interests for the good of the group Charismatic, give followers individualized attention, intellectually stimulating have a vision, communicate a vision, build trust, positive self-regard Transactional leaders leaders who manage through transactions, using their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered; it does not excite, transform, empower, or inspire people to focus on the interests of the group or organization Level 5 Leadership a combination of strong professional will (determination) and humility that builds enduring greatness Authentic Leadership a style in which the leader is true to himself or herself while leading Pseudotransformational leaders leaders who talk about positive change but allow their selfinterest to take precedence over followers needs (opposite of authentic) Servant-leader a leader who serves others needs while strengthening the organization (coined by Robert Greenleaf); a way of relating others to serve their needs and enhance their personal growth while strengthening the organization Bridge leaders a leader who bridges conflicting value systems or different cultures Shared leadership rotating leadership, in which people rotate through the leadership role based on which person has the most relevant skills at a particular time; most important when tasks are independent, complex, and require creativity

Lateral leadership style in which colleagues at the same hierarchal level are invited to collaborate and facilitate joint problem solving The most effective developmental experiences have three components: assessments, challenge, and support. Chapter 13 Motivating for Performance Motivation forces that energize, direct, and sustain a persons efforts Managers must motivate people to: 1. Join the Organization 2. Remain in the organization 3. Come to work regularly 4. Perform 5. Exhibit good citizenship Goal-setting theory a motivation theory stating that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end The most powerful goals are meaningful. Goals should be acceptable to employees. Motivating goals should be challenging but attainable. Microsoft uses the acronym SMART to create motivating goals: specific, measurable, achievable, results-based, time-specific Stretch goals targets that are particularly demanding, sometimes even thought to be impossible. Vertical current activities including productivity and financial Horizontal peoples professional development Law of effect a law formulated by Edward Thorndike in 1911 stating that behavior that is followed by positive consequences will likely be repeated Reinforcers positive consequences that motivate behavior Organizational behavior modification (OB mod) the application of reinforcement theory in organization settings 4 consequences of behavior either encourage or discourage peoples behavior 1. Positive reinforcement applying consequences that increase the likelihood that a person will repeat the behavior that led to it 2. Negative reinforcement removing or withholding an undesirable consequence

3. Punishment administering an aversive consequence 4. Extinction withdrawing or failing to provide a reinforcing consequence

Michael LeBoeuf The things that get rewarded get done Managers who overuse punishment or use it inappropriately create a climate of fear in the workplace. Expectancy Theory a theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome Expectancy employees perception of the likelihood that their efforts will enable them to attain their performance goals Higher expectancies create higher motivation Outcome a consequence a person receives for his or her performance Instrumentality the perceived likelihood that performance will be followed by a particular outcome Each outcome has an associated valence the value an outcome holds for the person contemplating it.

3 implications critical from the expectancy theory: 1. Increase expectancies 2. Identify positively valent outcomes 3. Make performance instrumental toward positive outcomes Maslows need hierarchy a conception of human needs organizing needs into a hierarchy of five major types

Physiological food, water, sex, and shelter Safety protection against threat and deprivation Social friendship, affection, belonging, and love Ego independence, achievement, freedom, status, recognition, and self-esteem Self-actualization realizing ones full potential, becoming everything one is capable of being People are motivated to satisfy the lower needs before they try to satisfy the higher needs. According to Maslow, the average person is only 10 percent self-actualized. Alderfers ERG theory a human needs theory postulating that people have three basic sets of needs that can operate simultaneously Existence needs are all material and physiological desires Relatedness needs involve relationships with other people and are satisfied through the process of mutually sharing thoughts and feelings Growth needs motivates people to productively or creativity change themselves or their environment ERG theory proposes that server different needs can be operating at once unlike Maslows. ERG has more scientific support but Maslows is better known to managers. McClellands Needs achievement, affiliation, and power Achievement characterized by a strong orientation toward accomplishment and an obsession with success and goal attainment

Affiliation reflects a strong desire to be liked by other people Power a desire to influence or control other people Personalized Power expressed through the aggressive manipulation and exploitation of others Socialized Power can be channeled toward the constructive improvement of organizations and societies Extrinsic reward Reward given to a person by the boss, the company, or some other person Intrinsic reward reward a worker derives directly from performing the job itself Job rotation changing from one task to another to alleviate boredom Job enlargement giving people additional tasks at the same time to alleviate boredom (multiple tasks at the same time) Job enrichment Changing a task to make it inherently more rewarding, motivating, and satisfying Two-factor theory Fredrick Herzbergs theory describing two factors affecting peoples work motivation and satisfaction Hygiene factors characteristics of the workplace, such as company policies, working conditions, pay, and supervision that can make people dissatisfied Motivators factors that make a job more motivating, such as additional job responsibilities, opportunities for personal growth and recognition, and feelings of achievement (describe the job itself) Hackman and Oldham Model of Job Design

Skill variety different job activities involving several skills and talents Task identity the completion of a whole, identifiable piece of work

Task significance an important, positive impact on the lives of others Autonomy independence and discretion in making decisions Feedback information about job performance Growth need strength the degree to which individuals want personal and psychological development Empowerment the process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization Encourages the following beliefs: 1. Perceive meaning in their work 2. Feel competent 3. Sense of self-determination 4. They have an impact Equity theory a theory stating that people assess how fairly they have been treated according to two key factors: outcomes and inputs Outcomes - refer to the various things the person receives on the job: recognition, pay, benefits, satisfaction, security, job assignments, and punishments Inputs - refer to the contributions the person makes to the organization: effort, time, talent, performance, extra commitment, and good citizenship Procedural justice using fair process in decision making and making sure others know that the process was as fair as possible Quality of work life (QWL) programs programs designed to create a workplace that enhances employee well-being 8 categories of QWL 1. Adequate and fair compensation 2. A safe and healthy environment 3. Jobs that develop human capacities 4. A chance for personal growth and security 5. A social environment that fosters personal identity, freedom from prejudice, a sense of community, and upward mobility 6. Constitutionalism, or the rights of personal privacy, dissent, and due process 7. A work role that minimized infringement on personal leisure and family needs 8. Socially responsible organizational actions Psychological contract a set of perceptions of what employees owe their employers, and what their employers owe them

Chapter 15 Communication Communication the transmission of information and meaning from one party to another through the use of shared symbols 1. The sender initiates the process by conveying information to the receiver the person for whom the message is intended. 2. The sender has a meaning he or she wishes to communicate and encodes the meaning into symbols (the words chosen for the message). 3. Then the sender transmits, or sends, the message through some channel, such as a verbal or written medium. 4. The receiver decodes the message (e.g., reads it) and attempts to interpret the senders meaning. 5. The receiver may provide feedback to the sender by encoding a message in response to the senders message. Noise interference in the system, that blocks perfect understanding One-way communication a process in which information flows in only one direction from the sender to the receiver, with no feedback loop (email)

Two-way communication a process in which information flows in two directions the receiver provides feedback, and the sender is receptive to the feedback True two way communication means not only that the receiver provides feedback but also that the sender is receptive to the feedback. Perception the process of receiving and interpreting information Filtering the process of withholding, ignoring, or distorting information Oral communication includes face-to-face discussion, telephone conversations, and formal presentations and speeches Written communication includes e-mail. memos, letters, reports, computer files. and other written documents

Web 2.0 a set of internet-based applications that encourage user-provided content and collaboration Virtual office a mobile office in which people can work anywhere as long as they have the tools to communicate with customers and colleagues Media richness the degree to which a communication channel conveys information Reflection process by which a person states what he or she believes the other person is saying Downward communication information that flows from higher to lower levels in the organizations hierarchy

Coaching dialogue with a goal of helping another be more effective and achieve his or her full potential on the job Open-book management practice of sharing with employees at all levels of the organization vital information previously meant for managements eyes only Upward communication information that flows from lower to higher levels in the organizations hierarchy Horizontal communication information moving between people on the same hierarchical level

Grapevine informal communication network Boundary less organization organization in which there are no barriers to information flow