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How can HR create a competitive advantage through people
-People create value -Talent is rare -A group of well-chosen, motivated people is difficult to imitate -People can be organized for success
HR planning
Having the right kind and number of people at the right time
HR planning goal
to avoid a surplus or shortage of labor
demand forecasting
Determining how many and what type of people are needed
supply of labor forecasting
Forecasting how many and what types of employees the organization will actually have
example of demand forecasting
To develop the iPhone, Apple had to determine how many engineers and designers it needed to develop and launch such a complex product
job analysis
Process to determine what is done on a given job and what should be done on that job: Not an evaluation of an employee's performance, Provides a foundation for all other HR activities
job description
tasks, duties, and responsibilities of the job
job specification
knowledge, skills, and abilities needed to do the job
advantage & disadvantage of internal recruiting
Ad:Firm knows applicants and vise versa, Dis: Not enough applicants and not enough development for the firm
advantage & disadvantage of external recruiting
Ad: bringing in applicants with knowledge, Dis: outside applicant unmotivating and uncertainty for firm
reliability (def)
the consistency of test scores over time and across alternative measurements.
reliability
if three different interviewers talked to the same job candidate but drew very different conclusions about the candidate's abilities, the interview's __________ is low
validity
degree to which a selection test predicts or correlates with job performance (goes beyond reliability to assess the test's accuracy)
criterion-related validity
the degree to which a test predicts job performance
content validity
the degree to which a selection test measures that actual knowledge, skills, and abilities required for the job (words per minute)
one selection test that is high in validity
Structured interviews- same interview with each applicant, Cognitive ability tests
one selection test that is low in validity
Applications and resumes, Reference checks, Background checks, Drug testing
why reference checks and recommendations aren't usually very useful for selection
they don't distinguish between candidates very much
performance test is in selection
sample of the job (admin job words per min for receptionist)
structured interviews are better than unstructured interviews
unstructured can lead to legal problems
layoffs
firing people due to a surplus of labor
termination
someone is fired for poor performance or misconduct
outplacement
is giving job assistance to laid off workers
example of outplacement
If Bob and his coworker gets laid off, but gets offered help with their new job search
that needs assessment is
an important first step in training
disparate treatment
Intentional, People are treated differently based on a protected class
disparate impact
Does not have to be intentional, People are treated the same, but the outcome is different, If the selection test is found to be valid, the employer has not violated the law
360-degree performance appraisal
delivers a fuller picture of the employee's strengths and weaknesses, and it often captures qualities other appraisal methods miss
pay level
the average pay of the firm in comparison to other organizations (high, medium, or low
which benefits are legally required
Workers compensation, Social Security, Unemployment Insurance
concept of collective bargaining process
the periodic ritual of negotiating that management and unions engage in discussing wages, benefits, hours, and working conditions. (happens every few years)
what is involved in affirmative action
special efforts to recruit and hire qualified members of groups that were discriminated against in the past (required by law) ; To correct the past exclusion of women and minorities
affirmative action applies to which organizations
government contractors and Title VII violators (targets recruitment)
advantages to the organization of managing diversity
Ability to attract and retain motivated employees, Better perspective on a differentiated market, Ability to leverage creativity and motivation in problem solving, Enhancement of organizational flexibility
challenges to overcome in diversity
Unexamined assumptions, Lower cohesiveness, Communication problems, Mistrust and tension, Stereotyping
monolithic organization
very little cultural integration; employee population is highly homogenous [little cultural integration and employee population is the same]
pluralistic organization
a more diverse employee population; takes steps to involve people from different backgrounds
multicultural organization
diversity exists and is valued; fully integrated formally and informally (focus not on visible differences) [managers don't focus on diverse traits)
mentoring
To help individuals enter the informal network that provides exposure to top management and access to information about organizational politics, many companies have implemented formal mentoring programs; Assigned someone (usually an elder) to guide you along on your new progress
global staffing
the ethnocentric approach, polycentric approach, and geocentric approach
ethnocentric approach
Managers from headquarters staff key positions, Ensures control over subsidiary locations, Eases transfer of policies from headquarters to subsidiaries
polycentric approach
Host-country nationals staff key positions, Reduces cultural mishaps and misunderstanding, Coordination with headquarters may be problematic
geocentric approach
An international cadre of skilled managers are assigned to, global subsidiaries regardless of nationality, Leverages technical and managerial expertise
dimensions of national culture
individualism, power distance, uncertainty avoidance, and masculinity
individualism
the extent to which people act on their own or as a part of a group
power distance
the extent to which a society accepts the fact that power in organizations is distributed unequally
Uncertainty Avoidance
The extent to which people in a society feel threatened by uncertain and ambiguous situations
masculinity
the extent to which a society values quantity of life (e.g., accomplishment, money) over quality of life (e.g., compassion, beauty)
reasons that firms enter the global marketplace
Gain access to resources, Skills of foreign employees, Attract more customers
list the influences of generational differences
Life cycle effect, Cohort effect, Period effects
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
five sources of power
Legitimate, Reward, Expert, Referent, Coercive
Legitimate power
A leader with legitimate power has the right, or the authority, to tell others what to do; employees are obligated to comply with legitimate orders. For example, when a supervisor tells an employee to design a new social media marketing campaign, the direct report needs to get it done
Reward power
The leader who has reward power influences others by controlling valued outcomes; people comply with the leader's wishes in order to receive those rewards. For example, an employee works hard to earn an outstanding performance review, which results in a big pay raise from his boss
Coercive power
A leader with coercive power has control over punishments; people obey to avoid those punishments. For instance, a manager implements an absenteeism policy that administers disciplinary actions page 231to offending employees
Referent power
A leader with 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. For example, young, ambitious managers emulate the work habits and personal style of a successful, charismatic executive
Expert power
A leader who has expert power has useful expertise or knowledge; people comply because they believe in, can learn from, or can otherwise gain from that expertise. For example, a sales manager gives his salespeople some tips on how to close a deal
list traits that differentiate leaders (from the trait approach)
Drive, Leadership motivation, Integrity, Self-confidence, Knowledge of the business, Dark Traits
limitations of the trait approach
it ignores the followers and the situation
Know what leader-member exchange means (in your own words)
the importance of leader behaviors not just toward the group as a whole but toward individuals on a personal basis.
basic notion of the path-goal framework
how leaders influence subordinates' perceptions of their work goals and the paths they follow toward attainment of those goals
achievement-oriented leadership (from path-goal)
behaviors geared toward motivating people, such as setting challenging goals and rewarding good performance.
Vroom Model of Leadership says
the major determinant of leadership effectiveness is the ability to make decisions
in Hersey and Blanchard's Situational Theory
a manager should use performance related leadership with low maturity followers (and what it means to be a low maturity follower)
highly routine and highly interesting work
substitutes for leadership
transformational leadership
A leader who motivates people to transcend their personal interests for the good of the group
pseudo-transformational leadership
Leaders who talk about positive change but allow their self-interest to take precedence over followers' needs
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
Know the elements of expectancy theory
Expectancy, Instrumentality, Valence
instrumentality
The perceived likelihood that performance will be followed by a particular outcome (a consequence a person received for his or her performance)
expectancy
Employees' perception of the likelihood that their efforts will enable them to attain their performance goals
expectancy theory motivation is made up of
Expectancy, Instrumentality, Valence
need theories are limited in what they explain
but that they do explain people's valence, or what they will value
what is procedural justice
using a fair process in decision making and making sure others know that the process was as fair as possible; Even if people believe that their outcome was inequitable and unfair, they are more likely to view justice as having been served if the process was fair
what is stretch goal
targets that are particularly demanding, sometimes even thought to be impossible
positive reinforcement
Applying a consequence that increases the likelihood of a person repeating the behavior that led to it
negative reinforcement
Removing or withholding an undesirable consequence
punishment
Administering an aversive consequence
extinction
Withdrawing or failing to provide a reinforcing consequence
McClelland's three needs
Need for achievement, Need for affiliation, Need for power
extrinsic rewards
Rewards given to a person by the boss, the company, or some other person (raise, employee of the month)
intrinsic rewards
Reward a worker derives directly from performing the job itself (sense of accomplishment)
examples of hygiene factors
Characteristics of the workplace, such as company policies, working conditions, pay, and supervision, that can make people dissatisfied
core job characteristics from the Job Characteristics Model
skill variety, task identity, task significance, autonomy, feedback
Understand that the Job Characteristics Model does not work unless
an employee has high growth need strength
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
result from job dissatisfaction
More grievances and lawsuits; Strikes; Stealing, sabotage, vandalism; More injuries; Poor customer service; Lower productivity and profits
workplace program that enhances quality of work life
Adequate and fair compensation, A safe and healthy environment, Jobs that develop human capacities, A chance for personal growth and security
psychological contract
A set of perceptions of what employees owe their employers, and what their employers owe them