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Published by soedito, 2018-07-12 12:58:15

041_MANAJEMEN_Meija_495

041_MANAJEMEN_Meija_495

Geographic-Based
Organization Structure

President

U.S. and Latin European Asian
Canada America Division Division
Division Division

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Advantages and Disadvantages of
the Divisional Approach

Advantages Disadvantages

 Coordination among different  Duplication of resources by
business functions two or more departments

 Improved and speedier  Reduced specialization in
service occupational skills

 Accountability for  Competition among divisions
performance

 Development of general
manager and executive skills

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Matrix Organization Structure

President

Vice President Vice President Vice President Vice President
Finance Operations Manufacturing Sales and
Marketing
Region A
Manager © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Region B
Manager

Region C
Manager

McGraw-Hill

Advantages and Disadvantages of
the Matrix Approach

Advantages Disadvantages

 Efficient utilization of scarce,  Employee frustration and
expensive specialists confusion as a result of the dual
chain of command
 Flexibility that allows new
projects to start quickly  Conflict between product and
functional managers over
 Development of cross- deadlines and priorities
functional skills by employees
 Too much time spent in
 Increased employee meetings to coordinate decisions
involvement in management
decisions affecting project or
product assignments

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Coordination Mechanisms

Meetings Organization-wide
Reward Systems

Task Forces and Teams

Liaison Roles

Organizational Culture Integrating Managers

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Organization Design

The selection of an organization structure that
best fits the strategic goals of the business.

 Basic organization designs:

 Mechanistic
 Organic
 Boundaryless

These designs incorporate vertical and horizontal
structural elements.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Organization Design (continued)

As business strategy changes, so do the structural
elements of organization design.

Strategic factors that affect the choices of
organization design:

 Organization capabilities
 Technology
 Organization size
 Environmental turbulence

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Mechanistic, Organic, and

Boundaryless Designs

Mechanistic Organic Boundaryless

Rigid hierarchical relationships Collaboration (both vertical and Collaboration (vertical, horizontal,

horizontal) customers, suppliers, competitors)

High formalization Low formalization Low formalization

Top-down communication Informal communication Informal communication

Centralized decision authority Decentralized decision authority Decentralized decision authority

Narrowly defined specialized Broadly defined flexible jobs Broadly defined flexible jobs
jobs
Emphasis on teams that also may
Emphasis on individuals working Emphasis on teams cross organization boundaries
independently

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Redesigning Organizations

Merger

Acquisition
Divestiture

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications of Management
Perspectives—For the Manager

Organization structure provides sources other than
formal authority for a manager to get things done.

One source of power is the recognition of how the
resources that a unit or department controls can
contribute to organization performance.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications of Management
Perspectives—For Managing Teams

One way to strengthen the culture of a team is to
organize a ceremony that exemplifies what the
team values.

Ceremonies reinforce specific values and create
bonds among employees by allowing them to
celebrate the achievements of the team or of
individual team members.

Ceremonies celebrate high-performing employees
and help build cohesion among team members.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications of Management
Perspectives—For Individuals

Make yourself indispensable by anticipating your
boss’s need for support and by providing it without
being asked.

Look for ways to show loyalty by speaking well of
your boss to others.

Develop a trusting relationship by being
dependable, consistent, and honest.

Keep your boss well informed.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

10

Human Resource Management

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

After reading this chapter, you should be able to:

 Determine appropriate responses to major changes in the
environment affecting human resources.

 Comply with the legal framework governing human resources.

 Develop tactics to implement desired human resource
strategies.

 Prepare a staffing program to recruit and select the best
applicants.

 Establish orientation, training, and career development
programs to enhance employees’ contributions to the firm.

 Implement an effective performance appraisal program to
capitalize on employees’ strengths and reduce employees’
weaknesses.

 Develop a reward system to attract, retain, and motivate
employees.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill Dealing effectively with
human resource (HR)
issues is essential for all
managers.
The human resource staff
supports managers in
carrying out HR
responsibilities.

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Skills for Managing Human Resources

Congruency
Skills

Performance Hiring Skills
Appraisal Skills

Pay Allocation Training Skills
Skills

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Environment of Human Resources

Workforce Globalization
Diversity

Unions Legislation

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Key Federal Legislation and Regulations
Affecting Human Resources

 Social Security Act (1935)  Occupational Safety and Health Act
 Wagner Act (1935) (1970)
 Fair Labor Standards Act (1938)
 Taft-Hartley Act (1947)  Vocational Rehabilitation Act (1973)
 Landrum-Griffin Act (1959)
 Equal Pay Act (1963)  Health Maintenance Organization Act
 Title VII of Civil Rights Act (1964) (1973)
 Executive Order 11246 (1965)
 Age Discrimination in Employment  Employee Retirement Income
Security Act (1974)
Act (1967)
 Wage Garnishment Act (1968)  Vietnam-Era Veterans Readjustment
Act (1974)

 Privacy Protection Act (1974)

 Pregnancy Discrimination Act (1978)

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Key Federal Legislation and Regulations
Affecting Human Resources (continued)

 Job Training Partnership Act  Family and Medical Leave Act (1993)
(1982)  Health Insurance Portability and

 Consolidated Omnibus Budget Accountability Act (1996)
Reconciliation Act (1985)  Small Business Job Protection Act

 Immigration Reform and Control (1996)
Act (1986)  Fair Credit Reporting Act (1970,

 Worker Adjustment and 1996)
Retraining Act (1988)
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
 Drug-Free Workplace Act (1988)
 Employee Polygraph Protection

Act (1988)
 Americans with Disabilities Act

(1990)
 Civil Rights Act (1991)

McGraw-Hill

Discrimination

Employment Key HR Protected
at Will Legislative Issues Class

Sexual Affirmative
Harassment Action

BFOQ Disparate
Treatment

Adverse Impact

Job
Relatedness

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Unions

Membership has been declining steadily (13% in
2003)

Factors contributing to this decline:

 Strong employer challenges to unions
 Plant closures
 International competition
 Shrinking manufacturing sector

Labor Contract: Written agreement between union
and management that specifies pay schedule, fringe
benefits, COLA, and the like.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Unions (continued)

 Union-related legislations:

 The Wagner Act (1935) – created the NLRB
 The Taft-Hartley Act (1947) – specified a set of unfair labor

practices by unions along with the remedies
 The Landrum-Griffin Act (1959) – requires each union to report its

financial activities and the financial interests of its leaders to the
Department of Labor

 In the U.S., labor relations are characterized by:

 Business unionism
 Job-based unionism
 Collective bargaining
 Voluntary contracts
 Adversarial relationships

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Human Resource Management Process

Strategic HR
Planning

HR Tactics

Staffing Orientation Training Career
Development
Performance
Appraisal Compensation
and Benefits

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Strategic Human Resource Planning

(SHRP)

 The development of a
vision about where the
company wants to be and
how it can use human
resources to get there.

 The ultimate objective of
SHRP is a sustained
competitive advantage.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Human Resource Planning

Product Labor Internal Labor External Labor
Demand Productivity Market Market

Labor Demand Labor Supply

Conditions and Select Responses

1. Labor demand exceeds labor supply 2. Labor supply exceeds labor demand

 Training or retraining  Pay cuts
 Succession planning  Reduced hours
 Promotion from within  Work sharing
 Recruitment from outside  Voluntary early retirements
 Subcontracting  Inducements to quit
 Use of contingent workers  Layoffs
 Use of overtime 3. Labor demand equals labor supply

 Replacement of quits from
inside or outside

 Internal transfers and
redeployment

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Staffing Process

 Recruitment – the process of
generating a pool of qualified
candidates for a particular job.

 An effective recruitment effort
should create a pool of qualified
applicants.

 Selection – the screening
process used to decide which of
the applicants to hire.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Validity and Reliability of Selection Tools

 Validity is how well a technique used to assess
candidates is related to performance on the job.

 Validity can be demonstrated by:

 Content Validity
 Empirical Validity

 Reliability is a measure of the consistency of results
of the selection method.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Application Letters of Ability Tests
Forms Recommendation

Performance SELECTION Personality
Simulation Tests TOOLS Tests

Psychological Honesty Tests
Tests

Interviews Physical Exams

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Orientation

 Helps new employees to:

 Learn more about the company
 Learn what is expected of them in the job
 Reduce the initial anxiety of a transition
 Become familiar with co-workers
 Learn about work rules and personnel policies

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Employee Training

 Training is a planned effort to
provide employees with
specific skills to improve their
performance.

 Effective training can also
improve morale and increase
an organization’s potential.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

The Training Process

Needs Assessment Develop and
Conduct Training
• Organization Needs
• Task Needs • Location
• Person Needs • Presentation
• Type

McGraw-Hill Evaluation

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Training Presentation Techniques

Slides and Computer-
Videotapes Assisted
Instruction (CAI)

Classroom
Lectures

Simulations

Cross-functional Vestibule Virtual Reality
Training Training

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Career Development

 Long-term effort in which the
organization helps employees
utilize their full potential.

 Involves three major phases:

 Assessment
 Direction
 Development

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

The Career Development Process

Assessment Direction

• Promotability forecasts
• Succession planning

• Individual career counseling
• Job posting systems
• Career resource centers

McGraw-Hill Development

• Mentoring
• Coaching
• Job rotation
• Tuition assistance programs

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill Performance Appraisal

 Performance appraisal has
three important objectives:

 Two-way communication
between supervisors and
employees.

 Constructive feedback to
employees in order to capitalize
on strengths and reduce
weaknesses.

 Help managers decide who
should be paid more based on
contribution.

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Approaches to Performance Appraisal

Judgment Approaches Measure Approaches
 Relative judgments  Traits
 Absolute judgments  Behaviors
 Behavioral anchored

rating scales
 Outcomes

 MBO

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Compensation

 Employees are paid for their
contributions to the company.

 The three key objectives of the
compensation system are to:

 Attract high-quality workers from
the labor market.

 Retain the best employees the
company already has.

 Motivate employee performance.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Components of Total Compensation

Total Compensation

Base Compensation Pay Incentives Indirect Compensation /
Benefits

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Compensation System Should:

Fit the firm’s strategic objectives
Fit with the firm’s characteristics and environment
Achieve internal equity (perception of fairness)
Achieve external equity
Be based on employee contributions

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications of Management
Perspectives—For the Manager

 Most management problems are a result of poor
human resource practices.

 Indicators that something is wrong with HR practices:

 Inability to recruit top talent
 Loss of key employees to competitors
 Costly lawsuits
 Low innovation by employees afraid of taking risks or with

outdated skills
 Little concern for quality

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications of Management
Perspectives—For Managing Teams

 Employees working in teams often take over HR
functions that have traditionally come under the
purview of supervisors.

 Evaluation of team members
 Allocation of rewards
 Staffing decisions
 Organizing work flow of the team

 The firm needs to provide adequate support so
that teams are able to perform these HR functions.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Applications of Management
Perspectives—For Individuals

 Your success depends on your ability to take
advantage of the HR opportunities the firm offers.

 It is your responsibility to make the ―right moves‖
to position yourself well.

 Use appraisal feedback constructively
 Take courses to keep your skills current
 Learn the key criteria for promotion and pay allocation

decisions
 Join teams that best complement your interests

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter

11

Managing Employee Diversity

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives

After reading this chapter, you should be able to:

 Monitor labor force trends and their implications.
 Recognize the advantage and challenge of diversity in the

workforce.
 Resolve the unique problems and issues confronted by

different employee.
 Capitalize on employee diversity as a source of competitive

advantage.
 Develop and implement human resource management

programs that best use the talents of a diverse employee
population.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Effective management of diversity is good as
well as necessary for business because:

 Changes in technology and competition
make diverse thinking a necessity.

 Minorities make up a majority of the
labor market in many parts of the
country.

 To be competitive, firms need to retain
and motivate minority employees.

 Global expansion and increased global
customers means firms need the help of
executives who can function in different
cultures.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Diversity

 It describes a wide spectrum differences
between people.

 Groups of individuals share
characteristics that distinguish them from
other groups.

 The differences between groups are
smaller than the differences within
groups.

 Classifying people into group types often
leads to false stereotypes because it
incorrectly assumes that group averages
apply to all individuals in the group.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Skills for Managing
Employee Diversity

Heterogeneous team
skills

Interpersonal
flexibility skills

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Advantages of Employee Diversity

Market Access International
Competition

Team Performance Multiplicity of Points
of View

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.


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