Understand the strategic role of human resource management ❖ Describe the federal legislation and societal trends that influence human resource management ❖ Understand the changing social contract between organizations and employees and what it means for both ❖ 2 Understand how organizations determine their future staffing needs through human resource planning ❖ Describe the tools that managers use to recruit and select the right employees ❖ Describe how organizations develop an effective workforce through training, development, and performance appraisals ❖ 3 ❖ Explain how organizations maintain a workforce through the administration of wages and salaries, benefits, and terminations 4 ❖ HR must drive organizational performance; it’s the competitive edge ❖ Matching process ❖ Integrate strategy ❖ HR builds culture ❖ The right people: ❖ To become more competitive on a global basis ❖ For improving quality, innovation, and customer service ❖ To retain during mergers and acquisitions ❖ To apply new technology for e-business 5 6 Strategic decisions are related to human decisions ❖ More companies rely on information, creativity, knowledge, and service ❖ ❖ Human Capital is the economic value of the combined knowledge, experience, skills, and capabilities of employees 7 8 HR managers must stay on top of legal and regulatory environment ❖ The Equal Employment Opportunity Commission (EEOC) is a federal law enforcement agency that enforces equal employment and laws against workplace discrimination ❖ 9 10 ❖ ❖ ❖ ❖ ❖ ❖ Employees operate under a new social contract Downsizing, outsourcing, rightsizing, and restructuring have left little stability Subsidized benefits are decreasing Employees are expected to be self-motivated Organizations must be creative with training and development New performance appraisal processes are required 11 ❖ Branding the company employer of choice ❖ Using temporary and part-time employees ❖ Acquiring start-ups to get the talent 12 ❖ Using the matching model, the organization and the individual attempt to match the needs, interests, and values that they offer each other 13 14 ❖ ❖ ❖ ❖ ❖ ❖ What new technologies are emerging? What is the volume of the business likely to be in the next 5 to 10 years? What is the turnover rate? What types of employees will we need? How many? How many administrative personnel will we need to support additional employees? Can we use temporary, part-time, or virtual workers? 15 ❖ Job analysis ➢ Subject matter expert Job description ❖ Job specification ❖ Realistic job previews ❖ Internal recruiting ❖ ➢ Advantages ➢ Disadvantages ❖ External recruiting ➢ Advantages ➢ Disadvantages 16 ❖ Application Form ❖ ❖ Avoid irrelevant ❖ Cognitive ability tests ❖ Physical ability tests ❖ Personality tests ❖ Other tests questions ❖ Avoid questions with adverse impact ❖ Interview; cannot violate EEO guidelines ❖ Structured interviews ❖ Biographical interviews ❖ Behavioral interviews ❖ Situational interviews ❖ Panel interviews Employment Tests ❖ Assessment Center ❖ Work sample tests ❖ Online Checks 17 ❖ Training and Development ➢ On-the-job training ➢ Social learning ➢ Corporate universities ➢ Promotion from within ➢ Mentoring and coaching 18 ❖ Performance Appraisal ➢ Evaluating performance accurately, recording assessment, and providing feedback ➢ Performance-review ranking system ➢ 360-degree Feedback ➢ Behaviorally Anchored Rating Scale (BARS) 19 20 ❖ Wage and Salary Systems ❖Job-based pay ❖Skill-based pay ❖Competency-based pay Compensation Equity – Fairness and equity ❖ Pay for Performance – Raise productivity and cut labor costs in competitive environment ❖ 21 Social security, unemployment compensation, and workers’ compensation are required by law ❖ Cafeteria-plan benefits packages allow employees to select benefits for themselves ❖ 22 Reducing the company’s workforce to the “right” size; also called downsizing ❖ Makes company stronger and more competitive ❖ HR must effectively and humanely manage the process ❖ Many organizations use communication and provide assistance to address emotional needs ❖ 23 Employees leave voluntarily, retire, are rightsized, and are fired for poor performance ❖ Poor performing employees can be disruptive and cause problems for morale ❖ Exit interviews can be used to learn about dissatisfaction and reason for departure ❖ 24 Team Members’ Names: Mohamed Al Rawahi, Khalid Al Barwani MGT 330: In-Class Team Assignment #8 “Five Star” Case Study Questions 1. What do you see as the major strengths and weaknesses in the feedback control system used in the schools in this case study? Come up with two strengths and two weaknesses. The CIO has a super team of graduates with creativity, intellect, and creativity. If the is lined up, you would see the `wow` factor. I would consider the team dysfunctional since it lacks respect, trust, and genuine communication with each other. The team complains a lot, as they think more about themselves and less about sharing information, work, and accomplishing collective outcomes for the company. Cite two example “What I’m seeing looks like team dysfunction to me.” "The CEO also said that I was inheriting "a super team with a disappointing performance." 2. What two changes would you recommend to overcome the weaknesses and improve the feedback control system? The two main problems with the team are; it lacks a lack of respect and trust and genuine communication with each other; also, they lack cohesion with each other. They think more about themselves plus less about sharing information and work and accomplishing collective outcomes for the organization/company. 3. Do you believe using a “1–5” grading system by principals and master teachers a valuable part of a feedback control system for teachers? Why or why not? What I deliberate that evolved the low level of cohesiveness and cooperation within the team is the lack of clear communication that made team members not trust and respect each other. Also, the lack of trust for the new CIO made the team members not comfortable with their leader. They made a step for even seeking advice from other team leaders. 4. How might the state control the accuracy of principals who are conducting teacher evaluations? Make one suggestion. I would recommend to the CIO to inspire more than drive, the team., the high-performance team is more of a push than a pull. I would suggest that the team leader create a stretched goal involving the group since togetherness forms a unity. Also, I would be available to the raised concerns, build trust within the team, and establish a good line of communication, communicating the direction and vision for the team. Are We a Team Case Study Questions 1. What type of team does the new CIO have? Would you consider the team functional or dysfunctional? Cite two examples from the case study to support your answer. The key strengths that I concede in the feedback control system used in graduate school would be an evaluated system that is set to the teachers. This is consenting to the teachers responsible for student’s education process in the teaching space. The weakness that I concede is the personal aspects that will decide in imprecise feedback. The variations that I could acclaim to overwhelm the weakness could be that the state board of education sees to assess themselves rather than consenting the principle to be the one providing the assessment. Hence, I have confidence that the outcomes would be correct. 2. What do you see as two key problems with the team? If you were Jenny McConnell, how would you address these problems? I would consider that the 1 -5 grading scheme by the master teachers and principals forms an appreciated part of a feedback control system for teachers. To be good teachers and offer better learning progression for students, I enquire that being capable of assessing teacher's performance plus providing feedback offers every teacher the support to progress in the teaching space. Nonetheless, principles are responsible for making sure that every teacher is liable for their job and should continually assess at best two times annually. 3. How do you think that the team evolved to this low level of cooperation and cohesiveness? Explain. I don’t consider the 1 – 5 grading system because, as Joey said, how could a principal measure and grade and enactment in a subject outside of his extent of proficiency such as math’s. “If the guy has a phobia about math, anything the teacher says or does is going to look brilliant—thus a 5.” It is an unfair grading system since some principles may favor various schools or, due to uncertainty, grade a school unknowingly. 4. What three suggestions would you make to the CIO to help her turn this collection of individual regional and department heads into a top-performing team? The state controls the accuracy of principals by the first assessment. It will consent principal efficiency and, by significance, improve results for every teacher and student. In the state, there were reports assumed that display principle efficiency and aspects that can't say and had to do with the signs of progress of students` and teachers' scores. I feel that they would comprehend the significance of the teacher's proficient development. The state would also deliberate the equivalent to principles, principally in this State "Five Stars." ❖ ❖ ❖ ❖ Define organizational change and understand how the need for change can come from external and/or internal forces Identify reasons employees frequently resist change Explain disruptive innovation and the ambidextrous approach as possible responses to the forces that drive innovation and change Describe the three innovation strategies that managers implement for changing products and/or technologies 2 ❖ ❖ ❖ ❖ ❖ Explain the value of creativity Explain the bottom-up approach to exploration Understand the characteristics of creative people and organizations Distinguish between the internal, external, and the horizontal linkage approaches of coordination Understand the importance of innovation roles 3 ❖ ❖ ❖ ❖ ❖ Describe the common approaches for changing people and culture Describe the organizational development (OD) process and the types of problems it typically addresses Describe the steps in the OD process Describe common OD activities and approaches to change Understand the ways and tactics to implement change 4 ❖ The adoption of a new idea or behavior by an organization ❖ Change and innovation can come from external forces ❖ Change and innovation can come from internal forces 5 Self-interest ❖ Lack of understanding and trust ❖ Uncertainty ❖ Different assessments and goals ❖ 6 ❖ Disruptive innovation ➢ Typically starts small and ends up completely replacing existing product or service technology ❖ Reverse innovation ➢ Creation of innovative, low-cost products for emerging markets 7 ❖ Ambidextrous approach - incorporating structures and processes that are appropriate for: ➢ Creative impulse ➢ Systematic implementation ➢ Flexibility and freedom to innovate 8 Product change – a change in the organization’s product or service outputs ❖ Technology change – a change in the organization’s production process ❖ 9 10 ❖ Creativity – novel ideas that meet perceived needs or offer opportunities ➢ Idea incubator ➢ Bottom-up approach – encouraging the flow of ideas from lower levels to upperlevel executives ➢ Innovation contests 11 Internal coordination - requires expertise from several departments ❖ External coordination - organizations look ❖ outside their company to find and develop new ideas ➢Open innovation ➢Crowdsourcing ➢Innovation by acquisition 12 13 ❖ Managers should create structural mechanisms to make sure that new ideas are carried forward ➢ Idea champion ➢ New-venture teams ➢ Skunkworks ➢ New-venture fund 14 ❖ ➢ ❖ ➢ People change Training and development Culture change Organizational development 15 ❖ Team-building activities ❖ Survey-feedback activities ❖ Large-group interventions ❖ Steps in the organizational development process ➢ Unfreezing ▪ Change agent ➢ Changing ➢ Refreezing 16 17 18 19 MGT 330: In-Class Team Assignment #5 Netflix Human Resource Practices Enhance Employee Retention Case Study Recently, an internal Netflix file found its way onto the Internet. The 128 Power-Point slides set out the company’s culture and talent management strategy. Observers speculated how leaders at the usually guarded Netflix had let such a document leak. As the commentary-pro and con-continues to flow, Reed Hastings, Netflix’s chief executive officer, concedes that corporate leaders leaked the document intentionally “to allow job candidates to self-select.” Netflix has a controversial tough love approach to human capital management. It features a culture governed by few rules and zero tolerance for poor or average performers. Workers can earn top-of-market pay but no bonuses or long-term incentives, and they are responsible for their own development. “It’s not the Bible, it’s just our documentation of what’s working for us,” Patricia J. McCord, chief talent officer and one of the architects of the company, says of the approach…. Today the company delivers movies by mail and video streaming. Netflix gross profit for the twelve months ending December 31, 2019 was $7.716B, a 32.43% increase year-over-year. Netflix annual gross profit for 2019 was $7.716B, a 32.43% increase from 2018. Netflix annual gross profit for 2018 was $5.827B, a 59.21% increase from 2017. At Netflix, HR professionals serve on the top management team, and McCord and Allison Hopkins, vice president for human resources set the tone. Software engineers, who make up the majority of the professional staff, are the creative lifeline of the organization, and McCord is obsessive about attracting and recruiting the best. Engineers, she observes, have little patience for bureaucracy…. Hastings and McCord recognized that elite talent in the Silicon Valley could pick and choose where they worked; many other employers also pay top dollar. What else could Netflix do to recruit? The key to differentiation, they concluded, was to deliver a culture that attracted people who identified with and understood the business, who yearned for a flexible work environment with few con-straits, and who-more than anything-wanted to be rubbing elbows with the best talent. At Netflix’s modern headquarters in Los Gatos, California, there are no badges or security checkpoints. There is also no dress code. People, most of whom are casually dressed, come and go continuously…. The “creative employee we compete for thrives on freedom,” Hastings says. “We’re more focused on the absence of procedure-managing through talented people rather than a rule book.” But the dearth of rules does not mean that it’s a free-for all environment: the few rules are reviewed by counsel and are “in compliance of federal laws,” Hastings says. “We try to manage by strong ethics; we’re strong on fairness and equity.” You won’t see Netflix recruiters on college campuses or at entry-level career fairs. “We get a different kind of person than other software companies,” McCord says…. In contrast, new hires at Netflix typically have 7 to 15 years of experience. “They’re accomplished deliverers,” McCord says. “You need to be mature, with enough experience to be able to make independent decisions.” And you need to be drawn to the business; Netflix’s ranks overflow with film aficionados. People who are not interested in “the context” of the business need not apply…. In other companies, Hopkins says, “policies are written for the lowest common denominator. Here, we don’t have to do that. You don’t have to write things down. When someone does something wrong, we tell them it was wrong. After that, either they get it or they’re out.” Hopkins contrasts Netflix with Hewlett-Packard, where, she says, “Everything was done by policy.”… “We are a performance culture based on intellectual prowess,” Hastings says. “We try to be fair, but [the length of an employee’s Netflix career] is not our primary concern. If someone is not extraordinary, we let them go.” Based on personal observations, he says the payoff from an extraordinary performer vs. an average one in creative fields is tenfold. Here then, is perhaps the characteristic that distinguishes Netflix from others recruiting top talent: Leaders are unwavering in their quest for quality and results. If even one person is assessed as mediocre or average during the annual review process but permitted to continue working for Netflix, the elite aura surrounding the workforce will be compromised. Loyalty to people not producing or facing minor setbacks or personal distractions is tolerated, but not for long. “Keeping the house clean is essential to who we are,” Hopkins says. “Too often, really good workers are frustrated at having to work with others who they perceive as average or worse performers. When we ask people why they chose us, they tell us it’s not for the money. It’s the other stuff. [It’s] ‘the places we worked didn’t fire people they should have fired.’”… Voluntary employee turnover at Netflix is low. The top six executives have been with the company from the beginning. When it comes to terminations, managers follow two rules: No surprises. Employees must know where they stand. Annual 360-degree reviews provide “direct and honest feedback,” Stokes says. “It tough to get used to doing them, but when they’re done right, they’re better than top-down evaluations.”… No-fault divorces. Wherever possible, an amicable departure is engineered. “We want them to keep their dignity,” McCord says. “In many companies, once I want you to leave, my job is to prove you’re incompetent. I have to give you all the documentation and fire you for poor performance. It can take months. Here, I write a check. We exchange severance for a release. To make Netflix a great company, people have to be able to leverage it when they leave” by subsequently getting good jobs. The line manager delivers the news with coaching from HR professionals. “We don’t coddle, it’s not about asking how does someone feel,” Hopkins says. “Usually, people find new jobs quickly.” To date, no one who has been terminated has sued…. “There’s no road map that plots out your career,” Stokes adds. “I’ve been here three years, and so far my job and responsibilities have changed every six months.” Hastings says people should manage their own career paths and not rely on the company. “The way you develop yourself is to be surrounded by stunning colleagues. We surround people and let them develop themselves,” he explains. Formal training, except where mandated by law, is not offered. Hastings and HR leaders conclude that most training materials are not useful. “I used to worry we didn’t do training and developing, but then we previewed some training videos and supporting materials,” McCord recalls. “It was awful. Reed said, ‘This stuff is nauseating and waste of time.’”… Netflix salaries are based on market conditions but not on company performance- a practice shareholders could find vexing if the company experiences a downturn. For now, the rationale- comparing top talent to major-league pitchers who receive star-level pay weather the team wins or loses- prevails. To be promoted, a person has to be a superstar in his or her current role and often be willing to take a reduction in pay to take on the new assignment. Executives want people to move up for the challenge, with the expectation that they will earn more once they have proved themselves.
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