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HRM Final.docx

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Human Resources
MHR 523
Vikraman Baskaran

HRM Final Chapter 6: Selection -Selection Process: a series of specific steps used by an employer to decide which recruits should be hired -Process begins when recruits apply for employment and ends with the hiring decision -match employment needs of the applicant & org -Strategic significance:  Recruiting & selection > employment function  Small firms: Owner-manager does hiring, Large HRD: employment manager, Small HRD: HR manager  Success or org depends on: o quality and caliber of the employees they hire, qualifications/ skills of new hires need to closely match org culture/strategic requirement o Shapes internal/external realities of the org (i.e. company incompetence affects countries performance)  Must reflect job requirements o Tools used for selection : reliable & valid o Myths: conscientiousness > intelligence as a predictor of employee performance; integrity tests don’t work; integrity tests have adverse effects on racial minorities  Must be well integrated with Org’l priorities  Must recognize org’l constraints: o Cost-effective, budgets/policies can hinder the selection process  Must adapt to Labour mkt realities o Have large/qualified pool of recruits o Selection ratio: # of applicants hired/total number of applicants o # of applicants for a position is partially dependant on a firm’s salary & benefit pkg o Factors that affect selection strategy:  Results of Job analysis  HR Plans  Org’l policies & constraints  Quality/# of recruits  Ethical Guidelines -Steps in selection of HR  Computerized approach: matching process largely ignores other factors (Attitudes, personality)  Small org: Hiring decision is based upon a single interview by owner/manager  Selection system should be integrally related to the job descriptions/specs > should form basis of all selection decisions  Continuous job analysis ensures specs reflect changes in tasks/tech/job demands  Procedure depends on: size of org, stage of growth, jobs involved  Steps: 1. Preliminary Reception of Applicants- disappeared in most large orgs due to tech 2. Review of application Banks/Screening Interviews- a. Application blank: job application form b. Weighted application blank (WAB): a job application form in which various items are given differential weights to reflect their relationship to criterion measure c. Biographical information blank (BIB) : a type of application blank that uses a multiple-choice format to measure a job candidate’s education, experiences, opinions, attitudes, & interests 3. Administration of employment tests- Asses KSA (Knowledge, skill, attitudes)through standardized tests a. Employment tests: assess the probable match b/w applicants & job requirements b. Reliability: test yields consistent results c. Validity: “Is the test accurately measuring what it is purported to measure?” i. Empirical Approaches - Predictive validity &Concurrent validity: predictor & criterion scores ii. Rational Approaches- Content validity: extent to which the selection device includes elements of the job domain; construct validity: seeks to establish relationship to a construct/ attribute/quality related to job performance iii. Differential validity: test validation process aimed at discovering the validity of a test for various subgroups d. Types of tests: Personality Tests, knowledge tests (measures based off info/knowledge), Performance Tests (ability to perform specific components of job), Assessment Centres (standardized form of employee appraisal that relies on several types of evaluation & multiple assessors), computer-interactive performance tests, graphic response tests ( measure applicant’s honesty by measuring body responses), Polygraph (i.e. Lie detector), paper & pencil integrity tests (tests honesty), attitude tests , 4. Verification of References a. Use of employment references vs. Personal references 5. Employment Interview(s) 6. Realistic Job Previews (RJP) - showing the candidate the work before hiring decision, attempts to prevent job dissat. 7. Medical Evaluation 8. Hiring Decision a. Subjective approach (looks at the scores received by the various applicants on predictors & subjectively evaluates all of the information & comes to an overall judgement) b. Multiple cutoff approach (evaluated on a pass-fail basis) c. Compensatory approach (high score may compensate for a lower score)  Some variations may exist, companies might combine steps  Letters of reference & weighted application blanks are most popular for the selection of white- collar professional workers  Biographical info blanks are more frequently used for white-collar nonprofessional workers  Personality tests are popular for selecting middle-management  Selection for Self-Managed Teams> selection delegated to teams o Enhances validity due to multiple views & experiences; employees likely to choose those they believe they can “count on”; tendency to hire “People like us” >reduce diversity  After Selection: o Contact successful employees immediately o Good employment contract:  Specify probationary period if applicable; employees are not automatically subject to probationary periods  Specify start date & terms of employment clearly;  Specify reasonable restrictive covenants;  Ensure that termination procedures are legally enforceable  Disposition of applicants: o Not wanting some applicants, need to notify asap, PR reasons, rejection letter should be positive, Keep those with potential on record, reconstruct application process if employees are seen with unsatisfactory, employer wants to create good first impression on new hires  Employment Interview: formal, in-dept convo conducted to evaluate the applicant’s acceptability o Can the applicant do the job? & How does the applicant compare with others who are applying for the job? ,Two-way exchange of info, Varying reliability & validity o Widely used though, because:  Allows personal impression (Personality fit with org)  Offers firm opportunity to sell the job to a candidate (upsell)  Offers the org an opportunity to answer the candidate’s questions regarding the job, career opportunities, company policies  Effect PR tool (promote co) o Types **:  Panel interview (using several interviewers)  Unstructured interview (enable the interviewer to pursue in depth applicant responses  Structured interview (predetermined checklist of Qs> improves reliability)  Behaviourly description/oriented interviews (attempts to find out how job applicants responded to specific work situations in the past)  Situational interviews (assess a job applicant’s likely future response to specific situations)  Conduct a job analysis & develop critical incidents  Select criteria for job success based on the results of the job analysis  Select one/more incidents that indicate a specific performance criterion  “What did you do when..?” questions  Develop a scoring guide for what is considered good/acceptable  Evaluate the validity of the instrument & implement  Mixed interviews (combo of structured/unstructured interview)  Structured > allows for comparison, unstructured > allows for conversational  Stressed-Producing Interviews (use a series of harsh, rapid-fire W to upset the applicant & learn how they handle stress)  Computer assisted interviewing (use computers)  Video interview (uses solicited videos of a candidate’s answers to provided qs) o Interview Process  Interviewer Preparation  Creation of Rapport  Information Exchange  Termination  Evaluation  Interviewer errors: o Halo Effect (Use limited info about candidate to create a bias) o Leading Qs (trying to phrase question in certain way to get the desired answer) o Stereotypes o Interviewer Domination (interviewers who brag about success/oversell)  Interviewee errors: o Playing games (acting nonchalant), talking too much, boasting, not listening, being unprepared  Evaluation of the Selection, continuous monitoring Chapter 7: Training & Development -Training: the formal & planned efforts enacted by the org to help employees acquire knowledge, skills, & abilities required to improve their performance in their jobs -Development: long term focus, represents the org’s efforts to help employees fain the SKAs required to perform job responsibilities -Benefits  Organization: Strategy, Effectiveness, improved performance, employee recruitment & retention  Employees: intrinsic benefits, extrinsic benefits  Society: skilled & educated population, higher standards of living -Instructional system Design  Model of Training Design: Needs Analysis (needs assessment, most important, uncovers deficiencies within the org & causes; involves: indentifying concern & its importance, consult stakeholders, collect data), training design (determine/write training objectives> decided on whether to purchase/design> determine the content> determine the methods), training methods (On the Job Training –OJT: structured, job rotation, apprenticeships, coaching, mentoring; off the job: lectures, discussions, case studies & incidents, rp, sims & games)  Data collection: organization analysis (where is the training needed?), Tasks/Job analysis (what KSAOs are required to perform the job effectively), Person analysis (individual lvl, who needs to be trained?, observations/questionnaires/interviews) -Orientation: introduces the new employee to their job, their coworkers & the org as a whole; facilitates integration of new employees; purposes: increase productivity, reduce turnover/anxiety, improve morale, and develop realistic expectations  Orientation Topics o Organizational Issues: history, name, titles, layout, product/service, policies, disciple, safety o Employee benefits: pay, vacations… o Introductions: to personnel o Job Duties: overview, tasks, safety, objectives, relationship to other jobs Chapter 8: Performance Management -use of performance date to effect org’l culture, system, process, set goals, allocate resources, affect policies & programs, share results -performance appraisal: how org evaluates employee job performance -Performance measurement: appropriate process in place to measure performance -Performance Objective & goals -Output Measures: Quantity & quality assessments; Outcome measures: results of programs compared to preset targets -Performance Management System Goals:  Transform org’l objectives (measurable/understandable), Provide instruments for measuring/managing/improving health &success of org, include measures of quality/cost/speed/cust. Service/employee sat/motivation/skills, shift from prescriptive (audit- & compliance-based) management to ongoing/forward looking strategic partnership -Performance Management as part of managerial strategy:  Assessment of strength & weaknesses of the HR in the org > Significant impact to other HR functions  Uses of Performance appraisals o Performance improvement, compensation adjustment, placement decisions, training & development needs, career planning & development, deficiencies in staffing process, Informational inaccuracies, job design errors, avoidance of discrimination, uncover external challenges o W/o effective appraisal systems employee related decisions become subject to trail & error  Elements of Performance Appraisal (uniformity) o Performance measures & criteria o Performance appraisal & interview o Employee feedback o Employee records & HR decisions o Human Performance  Appraisal systems should be job related (evaluates critical behaviours that constitute job success), practical, have standards (performance standards: benchmark in which performance is compared), use dependable measure (rating used to evaluate employee performance)  Rater Biases: halo effect, error of central tendency (averaging employee performance, do not want to give high/low ratings), leniency &strictness biases (Too easy/too harsh), personal prejudice, recency effect (ratings affected by employee’s most recent action)  Characteristics of an effective performance appraisal system *** o Validity (relevance) o Reliability (consistency o Input into System Development (Employee participation, encourages acceptance of appraisal system) o Acceptable Performance Standards (Job analysis>Unilateral standards become> management standards >no commitment from employees) o Acceptable Goals (derive from strategic business plans, set achievable goals; too high> Self-fulfilling prophecy “That’s too high for me, I can’t do it”) o Control of standards (standards where employee have no control of are not valid) o Frequency Feedback o Rater Training (Frame-of-reference training > FORT> aims at improving observation techniques and categorization of skills; be familiar with rating errors) o Ratee Training o Input into Interview process o Appraisal consequences o Different Sources (Raters, have multiple to decrease rating errors)  Nurturing Org’l environment: Two way communication, trusting relationship  Legal aspects: validity & consistency(relevancy), time frame  Past-Oriented Appraisal methods (evaluating past performances) o Noncomparative evaluation methods: uses scales/reports w/ performance criteria developed by supervisors/ committee  Rating scale: oldest & most widely used method, Subjective (based on opinions), responses may be given numerical values  Critical incident: rater records performance statements, describes effective/ineffective behaviors  Behaviourally anchored (BARS): rating scales based on specific behaviour examples, performance-related categories, cites specific behaviours  Tests & Observations: appraisal bead upon a test, test may be pen/pencil/demonstration o Comparative Evaluation Methods: compare one person’s performance w/a coworker’s  Ranking Method: employee ranked from best to worst, subject to halo & recency effects  Forced distributions: categories are designed, employees assigned to categories, vitality curve >20-70-10 rules (top 20, vital 70, bottom10> GE gets rid of all bad employees)  Future-oriented appraisal methods: focus on future performance o Self appraisals: useful to further self-development, can be used with any evaluation approach o Management-by-objectives (MBO): employee & supervisor jointly establish goals, employee is later evaluated on the objectives o Assessment centre: standardized, usually used to evaluate future potential, multiple types of evaluation & raters, usually used for high-potential managers  Other Developments o 360-deg performance appraisal: in line with the trend toward flatter org, combo of perspectives (peer self, supervisor, subordinate) o Balanced scorecard: combines performance measures of the total org  Evaluation Interviews: performance review sessions that give employees feedback about their past performance/future potential  Effective Evaluation Interviews: o Emphasize positive aspects of employee performance o Tell e/ employee the evaluation session is to IMPROVE o Conduct performance review session in private (w/o interruptions) o Review performance formally at least annually o Make criticisms specific o Focus criticisms on performance o Stay calm and do not argue with person being evaluated o Identify specific actions to improve performance o Emphasize willingness to assist the employee’s efforts to improve performance o End of evaluation by stressing positive aspects & reviewing plans to improve Chapter 9: Compensation Management: -improve employee performance, motivation, & satisfaction, contribution -inappropriate compensation lead to dissatisfaction (employee needs are affected by absolute/total & relative/comparison to others lvls of pay) -help to maintain an org’s HR, lose lots of money if wages/salaries not administered properly -Objectives:  Acquire qualified personnel, retain present employees, ensure equity, reward desired behaviour, control costs, comply with legal regulations, further administrative efficiency -Compensation Management (steps) ******  Phase 1: job analysis- Identify and study jobs (position descriptions, job descriptions, job standards)  Phase 2: job evaluation: determine relative worth/ value of the jobs, provides for internal o Job evaluations: systematic process of assessing job content and ranking jobs according to a consistent set of job characteristics & worker traits  Job Ranking: jobs are ranked subjectively according to importance to org  Job Grading: assigns jobs to predetermined job classifications according to their relative worth to the org.  Point system: assesses the relative importance of the job’s key factors in order to arrive at the relative worth of jobs  Phase 3: salary surveys: discover what other employers are paying for specific key jobs, provides for external equity, sources of data (labour Canada, HRSDC offices, employer /professional associations, self-conducted surveys)  Phase 4: establishing appropriate pay levels for each job: combines previous stesps and other considerations, wage-trend line developed (scatterplot)  Match: grouping the different pay levels into a structure that van be managed; job classes & rate ranges -Wages & Salary Surveys:  Internal equity: equity of pay system in an org; external equity: fairness in pay relative to what other employers are paying  Use wage & salary survey: study made of wages & salaries paid by other orgs within the employer’s labour mkt  Sources of data: HR & skills development CAN, Can’n HR centres, Employee/professional associations, private consultants -Pricing Jobs: establishing appropriate pay lvl, grouping the diff pay lvls into a structure that can be managed effectively  Pay Levels: relative/absolute worth determined through job evaluation  Key Jobs: jobs that are similar & common in the org and it’s labour mkt  Compensation structur
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