Chapter 8

Organizing People

Objectives

• Outline the human resource planning process• Define job analysis, job description, job

specification, and skills inventory• Distinguish between different types of

employment interviews• Explain the difference between formal and

informal work groups• Define and Recognize groupthink• Discuss the concept of team building

Management Skills

• If you were publishing a list of the 10 best companies to work for in your town, what things would you take into consideration?

• Make a List! (Groups)Make a List! (Groups)

Meeting Personnel Needs

What kind of experiences have you had applying for

jobs?

Why is this important?

A “successful” manager must develop effective processes to

select, train, and maintain employees…

How Companies Select Employees

Human Resources (HR)• A department that

recruits employees, manages training and compensation, and plans for future personnel

Staffing

• All organizations run on the skills and efforts of people– Staffing involves securing and

developing people• To perform jobs created by

organization• Goals:

– Obtain the best available people– Develop the skills and abilities of those

people

Job Analysis

• Job Analysis is the process of determining, through observation and study, the pertinent information relating to the nature of a specific job– Leading to:

• Job Descriptions• Job Specifications

How Companies Select Employees

Job Description– Written statement

identifying the tasks, duties, activities, and performance results required for specific job

– Used to develop fair and comprehensive compensation and reward systems

– Used to help recruiters to attract candidates

How Companies Select Employees

Job Specification– Written statement

identifying the abilities, skills, traits, or attributes necessary for successful performance for specific job

– Used to identify the qualifications of an individual who could perform the job

How Companies Select Employees

• Skills Inventory– Contains basic information

about each employee– Gives a comprehensive

picture of the individual

Skills Inventory

• Six categories may be included– Skills

• Education, job experience, and training– Special Qualifications

• Memberships in professional groups, achievements– Salary and job history

• Present salary, past salary, dates of raises, jobs held– Company data

• Benefit plan, retirement information, & seniority– Capacity of person

• Scores on test and health information– Special preferences

• Location or job preferences

How Companies Select EmployeesTHINGS LISTED ON A

JOB DESCRIPTION:1) Essential job functions2) Knowledge and critical

skills3) Physical demands4) Environmental factors5) Any information that

may be necessary to clarify job duties or responsibilities

SAMPLE:Title: ReceptionistDuties and responsibilities:Receives and directs phone calls, greetsvisitors, receives and sorts mail andpackages, orders office and kitchen supplies, key documents when requiredQualifications: High school graduate. Needs good communication skills and ability to get along with people. Keying speed of 45 wordsper minute. Experience desirable but not necessary.Salary: $20,000- $25,000, depending on experience

Human Resource Planning

• Involves getting the right number of qualified people into the right job at the right time– Two Questions Addressed

•Where are we now?– Applying Job Analysis & Skills Inventories

•Where do we want to go?– FORECASTING- Attempts to answer this

question with regard to the organization’s HR needs.

» The process that attempts to determine future needs in light of objectives

Human Resource Planning

• FORECASTING- The process that attempts to determine future needs in light of objectives– Many Variables:

• Sales projections• Skills required• Composition of current workforce• Technology changes• Economic conditions

– Largely intuition: experience/judgment

Human Resource Planning

• TRANSITION- The final step of human resource planning– How the organization determines how it

can obtain the quantity and quality of employees its needs to meet objectives

– Several activities in transition• Recruiting and selecting• Training and developing• Promoting or transferring• Laying off or discharging

Recruiting

• Recruiting: involves seeking and attracting a supply of people from which qualified candidates for job vacancies can be selected– Effective recruiting is one of

the best resources in a company• Promotion from within is popular

in growing and expanding companies

Alternatives to Adding Alternatives to Adding StaffStaff

Freelancers*

Interns*

Temporary Workers

*Employee Leasing

FreelancersFreelancers

• Provide by hourly basis or by the job

• Used when full time employment is not needed– Examples: Bookkeepers,

accountants, lawyers, graphic designers, window display artists, advertising copywriters, and photographers

InternsInterns

• Often students, who will work for little or no pay in order to gain experience in a particular field

• Found in local colleges, and high schools– Paid Internships are possible!

Temporary WorkersTemporary Workers

• Can be used for long periods of time – Alternative to full time hiring

• Paid a workers salary plus a fee to the agency who supplies the worker– Ex: Seasonal, substitute for injured or sick

workers on leave

• Fastest growing areas of recruitment– Biggest problem: Lack of

commitment

Employee LeasingEmployee Leasing

• Employee Leasing Companies and Professional Employer Organizations (PEOs)– Provide permanent staff at client companies

• Issue paychecks• Take care of personnel matters• Ensure compliance with regulations• Provide benefits

– Supply highly trained employees under contracts with company, not client

How Companies Recruit Employees

Get the readers attention Stimulate the reader’s interest Present a solid specific fact End ad with a call to action

Find employees for businesses and other institutionsTry to match people with jobs their looking for to the right businessCharge a fee when they are successful

Most college and universities have them and persons specifically to do itCollect info on career and employment opportunitiesMake them available to students or graduates for internshipsNo fee is chargedAsk colleges for a list of partnerships

How Companies Recruit Employees

Often businesses except referrals from reliable sources on a good applicant for a job their offering

On the world wide web mostly all companies use their business web sites to post job availability and have online applications

Also businesses can mention their location for people to apply

Online Job Search Databases

Post Classified Ads and Resumes

www.monster.com

www.careerpath.com

www.careerbuilder.com

Web Quest: Research and Find

• Find a Placement Center for the College or University of your choice– Printout the main webpage

with contact information– Printout their services and the

requirements for using their services•Printout: Any other opportunities

available from the center?

The Selection Process

Four Major Steps:

– 1. Preliminary Screening

– 2. Testing

– 3. Employment Interview

– 4. Personal Judgment

The Selection ProcessStandard Selection Procedures

1. Preliminary screening• HR Department will sort out hundreds of letters and

resumes in response to one classified ad

• I.E. – Southwest Airlines receives 129,000 resumes and hires approximately 3,411 people every two years

• Applicant pool is narrowed and input from team members is given (Undergraduate and Graduate GPA, Experience)

• Check applicant’s references and credentials

• Call for an interview

The Selection Process

2. TestingUsed to differentiate applicants with similar credentials

Provides a uniform evaluation of the qualifications of a prospective employee

The Selection ProcessPredictive Index (PI)

• 10-minute personality test is used for effectively hiring and working with employees

• Identifies an individual’s strengths and weaknesses

• Over 3,000 companies use it (IKEA, Budget Rent-A-Car, colleges, professional sports teams)

Validity and Reliability of Test

• Factors relevant to the job

• Group of people taking test under similar circumstances get similar results

• Remove the element of chance

The Selection ProcessCommon Employment Tests

Aptitude TestMeasures capacity to learn a particular subject or skill

Psychomotor TestMeasures strength, dexterity, and coordination

Job Knowledge TestMeasures knowledge related to a particular job

Proficiency TestMeasures performance on a sample of the work required in the job

Interest TestCategorizes applicant’s interests relative to the job

Psychological TestAttempts to define personality traits

Polygraph TestRecords changes in physical response as a person responds to questions to determine whether responses are truthful

The Selection Process Validity and Reliability of

Test

• Refers to the consistency or reproducibility of the result of a test

• Three major methods commonly used to test reliability of testing

1. Test-Retest

a) Testing degree of similarity in scores

2. Parallel forms

a) Giving two versions of the same test and looking at how scores coincide

The Selection Process

What affects it??•Civil Rights Act- Title VII

Title VII prohibits intentional discrimination based on race, color, religion, sex, or national origin. Title VII prohibits both “disparate treatment” and “disparate impact”

discrimination.

•The Americans with Disabilities Act (ADA) Use employment tests that screen out or tend to screen out an individual

with a disability or a class of individuals with disabilities unless the test, as used by the employer, is shown to be job-related and consistent with business necessity.

•The Age Discrimination in Employment Act (ADEA)• The ADEA prohibits disparate treatment discrimination, i.e., intentional

discrimination based on age. For example, the ADEA forbids an employer from giving a physical agility test only to applicants over age 50, based on a belief that they are less physically able to perform a particular job, but not testing younger applicants.

Background/Reference Checks

• Background and Reference Checks– Fall into 3 categories:

• Personal• Academic• Past-employment

– Contacting personal and academic is generally of limited value

• Few people will list someone who will give a bad reference

– Best is past employers• Beware!! Limited information will be divulged

The Selection Process

Standard Selection Procedures

3. Employment interview Allow the employer to learn more

about the applicant than can be conveyed in a resume or cover letter

Preparing for an Interview• Setting aside space - Privacy

• Putting the applicant at ease – Small talk, Refreshment, Interviewer should be outgoing trained in interviewing skills

• Taking control over the interview – take notes to record important points, encourage applicant to talk, but control the direction of discussion

The Selection ProcessStandard Selection Procedures

3. Employment interview Structured Interview

Prepare a list of questions when interviewing many applications for one position

Provides uniform information for each applicant

Remind the applicant to cover each question

• Where do you want to be in five years?

• What are your strengths in working with others?

The Selection ProcessStandard Selection Procedures

3. Employment interview Unstructured Interview

A conversation between employer and applicant in a relaxed environment

Ask open-ended questions Why did you leave your previous job?

Tell me about yourself

Applicant has the opportunity to ask questions about the organization

Not always reliable interviews

Pertinent questions may not be covered and bias is a possibility

The Selection ProcessStandard Selection Procedures

3. Employment interview First Impressions on personal

attributes can be taken into consideration

Halo Effect Single characteristic dominates the

interviewer’s impression of the applicant

(I.E.) - Pleasant Personality dominates the perception of the applicant and other concerns are overlooked

Doesn’t indicate if the candidate is qualified

Applicant with a pleasant personality in an interview is common

The Selection Process

Standard Selection Procedures

4. Personal judgment Choosing which individual gets the

job

Employer must make a value judgment as to which applicant would be most successful

Follow the selection procedures for effective decision

What if no applicants are qualified? Offer a higher salary or better benefits to

attract more applicants

Re-advertise in a different newspaper or Web site

Legal Considerations in Selection

The Wrong Questions Due to federal law, certain questions cannot be asked

of job candidates.

Questions to avoid when interviewing candidates include:

1. Age (may ask if they are older than a certain age if it is a requirement to of the job [i.e.-school bus driver, forklift operator]

2. Date of birth

3. Religion or church affiliation

4. Father's surname or mother's maiden name

5. Marital status

Legal Considerations in Selection

The Wrong Questions Questions to avoid when interviewing

candidates include: 6. What languages they speak (unless it is a job

requirement)

7. How many children they have, their children's ages and who will care for the children while applicant is working

8. Financial information not related to compensation

9. If they served in the military of any foreign

country 10. If they have ever been arrested? (may ask if

they have been convicted of a felony/misdemeanor)

Web Quest: Legal Cases

• Research Online the following cases:– Summarize your findings– Use the handout

Griggs v. Duke Power Companyand

Albemarle Paper Company v. Moody

Legal Considerations in Selection

Griggs v. Duke Power Company African American employees at a power-generating

plan objected to the requirement of a high-school diploma or passing an intelligence test as conditions of employment in or transfer to jobs at the plant

Court decided if a test negatively impacts female or minority group applicants, then company must prove validity and prevalence to job requirements

Even if a company does not mean to discriminate, if may unintentionally select an unfair test

Findlaw.com source: GRIGGS v. DUKE POWER CO., 401 U.S. 424 (1971)

Legal Considerations in Selection

Albemarle Paper Company v. Moody North Carolina paper mill was seeking the reversal of a Court of

Appeals decision that eliminated its testing program and awarded back pay to a group of African American employees

Managers argued that in addition to creating diversity programs, they had statistical proof that their testing was job-related

Lower court noted that they had made efforts to deal with segregation

Supreme Court agreed with Court of Appeals that the intentions of the company were not the main issue

It held that it was not enough to show that the best workers did well on the tests, or that a testing program improved the overall quality of the work force.

Any tests had to be specifically related to performing the job in question.

Findlaw.com source: ALBEMARLE PAPER CO. v. MOODY, 422 U.S. 405 (1975)

Interview Questions: Groups

• Write out 15 questions to ask a potential employee.

• The Job:– Entry Level College

graduate position in a large corporation

as a ManagerManager

Transfers, Promotions, and Separations

HR Department must account for employees leaving positions, as well as new employees being hired

Transfers Moves an employee into another

position within the company Generally maintains the same

level of responsibility and pay Employee can learn different

functions within organization

Transfers, Promotions, and Separations

Promotions Moving to a position of greater responsibility with

higher status and pay Merit-based and encourage performance

Considerations: Merit, seniority, or length of service Performance in current job How they will adapt to new job (aptitudes and interest)

Peter Principle – possible for employees to be promoted until they reach a level at which they can no longer perform Employee has “risen to her level of incompetence” Will gain a mediocre employee and lose a competent one

through inappropriate promotion

Transfers, Promotions, and SeparationsSeparations - Final way in which an employee leaves a position

Voluntary – employee resignso Exit Interview – pinpoints reasons why an employee is

leaving Involuntary – employee is laid-off or terminated

o Layoffs – there is not enough work for all employeeso Result of downsizing to increase efficiencyo Employee can be called back

o Termination – employee is asked to leave because of poor performance or failure to follow company rules

o Failures from previous actions of training, counseling, and/or disciplinary action

o Last resulto Possible reassignment to a less stressful job will eliminate

the waste of company resources and time invested in hiring and training that individual

UNDERSTAND WORKS GROUPS AND TEAMS

Mr. Sherpinsky

How Groups Behave

• Brainwrite/Brainstorm:– What are the pros and cons of group work?– What kinds of group work have you

experienced?

Why is this important?

“To supervise groups effectively, managers must understand the dynamics of group

behavior”

Groups Within Organizations

• What is a group?– Two or more people who interact to meet

a shared goal– A shared sense of purpose sets a group

apart from just a gathering of people

Types of Groups

1. Formal Work Groups Exist for short or long period of

time Task Force

A single goal to resolve a problem or design a new product

Functional Group (Command) Consists of manager and all the

employees he or she supervises in an ongoing manner

Types of Groups

2. Informal Work Groups Formed voluntarily by members of an organization Develop from personal contact and interactions

among people Groups can form around something like lunch

Interest Groups Share a purpose or concern Women executives form a group to share ideas about

issues facing women in management

The workplace is where socialization takes place and friendships emerge

Affects of Informal Work Groups Productivity Morale Success of Managers Sense of Loyalty Work for or against organizational goals

Group Norms Informal rules a group adopts to regulate the

behavior of group members Expectations of group members to improve:

Productivity levels Operating procedures Other work-related activities

Group norms can be written, spoken, or acted out by group members to show new members how to behave

Group Behavior

Group Cohesiveness– Degree of attraction among group members, or who tightly knit a group

is

– More Cohesiveness = Greater likelihood that Group Norms will be followed

Factors affecting cohesiveness of informal work groupSize Small work groups

Success High Success

Status High Status

Outside PressuresConflicts with management increase group cohesiveness (Us Against Them)

Stability of Membership

Long-Standing Members

Communication Easy lines of communication in social Areas

Physical IsolationForces workers into close contact with each other and strengthens bonds

Group Behavior• Group Conformity

– Degree to which group members accept and follow group norms

– Group seeks to control members’ behavior for two reasons:

• Independent behavior can cause disagreements that threaten a group’s survival

• Consistent behavior creates an atmosphere of trust that allows members to work together and socialize comfortably

– Individuals conform to group norms when they are:

• Similar to personal attitudes, beliefs, and behavior

• Do not agree with the group’s norms but feel pressure to accept them

Group Behavior

Group Pressure and Conformity

• Group pressure can break-down a group when one member goes above and beyond the rest of the group

– (Case Study) A textile employee began to produce more than the group norm of 50 units per day. After two weeks, the group started to pressure this worker to produce less, and she quickly dropped to the group’s level. After three weeks, all the members of the group were moved to other jobs except for this worker. Once again, her production quickly climbed to double the group norm.

– Why would the other workers try to slow their co-worker down?

– Was it fair for other workers to try to slow her down?

Group Behavior• Groupthink

– When group members lose their ability to think as individuals and conform at the expense of their good judgment

• Members become unwilling to say anything against the group or any member

• Groupthink members will justify any action, stereotype outsiders as enemies of the group, and pressure unwilling members to conform

– Groupthink is disruptive because it affects employees’ ability to make logical decisions

– Imagine that you are the new manager of a department that has succumbed to groupthink. What steps would you take to encourage individual thinking?

The Importance of Teams

• Important part in helping an organization meet its goals

• Groups have more knowledge and information than individuals

• Ease the process of communicating and solving problems

• Creates more efficiency and effective company

Influencing Work Groups

Hawthorne Effect – giving special attention to a group of employees changes the employees’ behavior

• Job factor variance– Employee pay– Supervision– Lighting– Length of rest periods– Number of hours worked

Building Effective Teams“Managers are responsible for

developing shared values and group loyalty in formal work groups”

• Linchpin Concept

– Since managers are members of overlapping groups, they link formal work groups to the total organization

– Managers improve communication and ensure that organizational and group goals are met

– Managers themselves are the “linchpins”

• Usually when members are assigned a team, instead of volunteering, they don’t have the same loyalty

Building Effective Teams

Team Building

– Process of establishing a cohesive group that works together to achieve its goals

• Managers can encourage teamwork by:

– Selecting group members carefully

– Creating a positive work environment

– Building Trust

– Increasing Group Cohesiveness

Building Effective Teams

Creating Groups• Identify qualified people• Make the group attractive to these

individuals– Increase of pay– Job Satisfaction– Benefits that are provided just like an

informal work group

• Consider office layout and physical factors affecting group’s ability to work together successfully

Building Effective Teams“You’ve got to pick a few people and really trust them.”

- Bill Gates, Microsoft

Building Trust •Sharing responsibility and making decisions together•Trust enables members to stick to the group norms•Managers must:

– Have faith in employees– Recognize the interests of the organization, the group,

and the employees– Become personally involved, take a real interest in group

members, share information, and exhibit honesty

What kinds of managerial problems might arise if employees lose confidence or trust in a manager?

Building Effective Teams

Influencing Group Cohesiveness and Conformity

• Managers can affect formal group performance levels to those individuals who are highly competitive and eager to succeed by:– Keeping groups small– Selecting group members carefully– Finding a good personality fit between new and old

employees– Developing an office layout that improves communication– Creating clear goals– Inspiring group competition– Rewarding groups rather than individuals– Isolating groups from each other

Building Effective Teams

Phases in the life of Teams:

• Four Basic Phases– Forming

• Occurs when they first come together• Uncertainty and anxiety are common• Focused on getting to know each other

– Storming• Often involves a period of disagreement and intense discussion as

members attempt to impose their views on the rest of the group

– Norming• Team develops the informal rules that enable regulation of

behavior

– Performing• Team becomes an effective and high-performing group

Quality Circles• Type of formal work group• Defined: A group of employees

from a single work unit (such as a department) who share ideas on how to improve quality– Goals:

• Involve employees in decision making• Membership is usually voluntary• Members share a common bond –

performing similar tasks• Encourages communication and trust

among members and managers

Self-Directed Work Teams• Another type of formal work group• Self-directed work team (SDWT)• Defined: A group of employees

empowered to control the work they do without formal supervision.– Process:

• Self-selected leadership from group• Control their own schedule• Make operational and personnel decisions• Solve problems• Set priorities

Virtual Work Teams• Another type of formal work

group• Newer development• Defined: A group of employees

working through technology, living in different locations– Group responsible for making

decisions– Mainly using technology-supported

communications

• Growing use of this concept

Groups and Leaders

• Informal groups select a leader most capable of satisfying the group’s needs

• This gives leader authority• Can be taken away anytime• Imagine a shipwreck!!!

– 1st Goal: Find food, water, and shelter

– Best individual for this task becomes the leader

– As group’s goals change so can leadership

Groups and Leaders

Gaining Acceptance• Managers assigned to formal

work groups must work to gain acceptance as leaders

• What makes a good teacher, makes a good manager?– Know their subject well– Communicate information

effectively– Treat students with respect– Make fair judgments

Groups and Leaders

Encouraging Participation• Managers encourage

participation and shared responsibility, acting more like a coach than a manager

• How does one encourage team spirit?– Provide the group with a shared vision– Lead by example (Attitude and

Performance)– Encourage group to listen and support

all members– Function within a cohesive group