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Chapter 18 Using advanced information system to increase performance
Factors Affecting the Usefulness of Information Quality : determined by accuracy and reliability Timeliness: real-time information Completeness: increased by IT Relevance Information technology –The set of methods or techniques for acquiring, organizing, storing, manipulating, and transmitting information. Management information system (MIS)- A specific form of IT that managers utilize to generate the specific, detailed information they need to perform their roles effectively. Three reasons why managers need information a. To make effective decisions, Managers need info both from external stakeholders( consumer surveys) and from inside the org( production costs). b. To control the activities of the organization Managers achieve control by:
- Establishing measurable goals
- Measuring actual performance
- Comparing actual performance with goals
- Evaluating results & taking any corrective action c. To coordinate the activities of the organization Managers face increasing coordination problems in managing their global supply chains to take advantage of national differences in production costs. As a result, managers have adopted sophisticated IT that helps them coordinate the flow of materials, semi-finished goods, and finished goods throughout the world.
Advances in IT -are both opportunities and threats - one of the most important determinants of the length of a product’s life cycle. The shorter the length of a product’s life cycle because of advancing IT the more important it is to innovate products quickly and continuously. A Product Life Cycle (4 stages) Embryonic stage Product has yet to gain widespread acceptance Customers are unsure what a product has to offer and demand for it is minimal. Growth stage Many consumers are buying the product for the first time Demand increases rapidly Mature stage Market peaks because most customers have already bought the product Demand is typically replacement demand Decline stage Advancing IT leads to the development of a more advanced product making the old one obsolete A Four-Tier Information System with Cloud Computing External PDAs—Clients PCs—A internal server—A mainframe computer Operating system software
-Expert system: employs human knowledge, embedded in a computer, to solve problems that ordinarily require human expertise. Minimum requirements for IT are to recognize formulate, and solve a problem; to explain the solution; to learn from experience. e. Enterprise Resource Planning Systems -Multi-module application software packages that coordinate the functional activities necessary to move products from the design stage to the final customer stage. -Improves quality, innovation and responsiveness to customers f. Types of E-Commerce -B2B: The goal is to increase profitability of making and selling goods and services by reducing cost & improving quality. The application is B2B marketplace, an internet-based trading platform. -B2C: avoid having to use intermediaries, e.g. wholesalers and retailer. Strategic Alliances An agreement in which managers pool or share their organization’s resources and know-how with a foreign company, and the two organizations share the rewards and risks of starting a new venture. B2B network structure- A series of global strategic alliances that an organization creates with suppliers, manufacturers, and distributors to produce and market a product. Flatter Structures and Horizontal Information Flows Boundaryless Organization -An organization whose members are linked by computers, faxes, computer-aided design systems, and video teleconferencing and who rarely, if ever, see one another face-to-face. Knowledge management system -A company-specific virtual information system that systematizes employee knowledge and facilitates sharing & integrating of expertise. Knowledge portal -a collection of web-based tools to share information among many people. -Bench Mark Knowledge, Collate “Best Practices”…
-How to design & use a knowledge portal http://www.youtube.com/watch?v=qnfYzKiW50Q&feature=related Questions http://www.youtube.com/watch?v=97i-JAyx1zY In the video, People Finder allows project managers to A. Evaluate the performance of an employee B. Find employees to work on a particular project C. Recruit new employees Leadership created a culture of sharing knowledge by A. Mandating participation in the knowledge portal B. Communicating expectations by example (modeling behavior) Challenges Time Participation Organization Sustainability Cost
-Example: Sexual Harassment creates a hostile work environment Three critical conditions for Sexual Harassment cases:
- The plaintiff cannot have "invited or incited" the advances
- Harassment must have been severe or repetitive
- The court must determine the liability of the organization for actions of its employees -Preventative steps for firms include development of a policy statement, training, development of a reporting mechanism and disciplinary policy. Major Equal Employment Opportunity Laws Affecting HRM Page Employee safety is regulated by both the federal and state governments. The Occupational Safety and Health Act (OSHA) authorizes the federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate commerce. The General duty clause of OSHA states that an employer has an overall obligation to furnish employees with a place of employment from recognized hazards. Employee Rights Under OSHA, they have a right to: 1. Request an inspection. 2. Have a representative present at an inspection. 3. Have dangerous substances identified. 4. By promptly informed about exposure to hazards and be given access to accurate records regarding exposures. 5. Have employer violations posted at the work-site.
Contemporary Challenges for Managers How to eliminate sexual harassment How to make accommodations for employees with disabilities How to deal with employees who have substance abuse problems How to manage HIV-positive employees and employees with AIDs 5 Basic Components of a Human Resource Management System 1. The Recruitment and Selection System -Recruitment: Activities that -Selection: -Human resource planning and Job analysis determine recruitment and selection needs Human Resource Planning Demand forecasts -Estimates the qualifications & numbers of employees the firm will need given its goals strategies. Supply forecasts -Estimates the availability & qualifications of current employees now and in the future, as well as the supply of qualified workers in the external labor market. Outsourcing -Using outside suppliers and manufacturers to produce goods and services -Using contract workers rather than hiring them. -More flexible for the firm. -Provides human capital at a lower cost.
Job analysis methods Observing what current workers do. Having workers and manages fill out questionnaires. If new job – benchmark other organizations with similar needs Recruitment What skills/knowledge do we need? Where are these people? How do we attract them? Internal Recruiting Managers turn to existing employees to fill open positions Benefits of internal recruiting: -Internal applicants are already familiar with the organization -Managers already know candidates -Can help boost levels of employee motivation and morale Disadvantages External Recruiting Looking outside the organization for people who have not worked at the firm previously. Newspapers advertisements, open houses, on-campus recruiting, employee referrals, and through the Internet. Advantages of External Recruiting
-Access to a potentially large applicant pool -Attract people who have the skills, knowledge, and abilities an organization needs -Bring in newcomers who may have a fresh approach to problems and be up to date on the latest technology Disadvantages of External Recruiting -Relatively high costs -Candidates may lack knowledge about the inner workings of the organization -May need to receive more training -Uncertainty concerning whether they will actually be good performers Selection The process that managers use to determine the relative qualifications of job applicants & potential for performing well in a particular job. Selection Tools Background Information Helpful to screen out applicants who are lacking key qualifications Determine which qualified applicants are more promising than others Interviews Structured interviews where managers ask each applicant the same job-related questions. Unstructured interviews that resemble normal conversations. Usually structured interviews preferred; bias is possible in unstructured interviews. Paper-and-Pencil Tests Ability tests assess the extent to which applicants possess the skills necessary job performance Managers must have sound evidence that the tests are good predictors of performance
Realistic Job Preview -An honest assessment of the advantage and disadvantages of a job and organization. -Can reduce the number of new hires who quit when jobs and organizations fail to meet their unrealistic expectations -Managers may be tempted to paint overly rosy pictures of both the open positions and the organization as a whole. Managers may feel that if they are honest, an applicant may not be willing to work there. Research indicates this is a poor strategy. 2. Training and Development Needs Assessment -what type of skills or knowledge they need to acquire? -training or development? Classroom Instruction Employees acquire skills in a classroom setting. Includes use of videos, role-playing, and simulations. On-the-Job Training Employee learning occurs in the work setting as new worker does the job. Training is given by co-workers and can be done continuously to update the skills of current employees. Varied Work Experiences Top managers have need to and must build expertise in many areas. Employees identified as possible top managers are assigned different tasks and a variety of positions in an organization. Formal Education Tuition reimbursement is common for managers taking classes for MBA or job-related degrees.
Long-distance learning can also be used to reduce travel and other expenses for managerial training. 3. Performance Appraisal & Feedback Performance Appraisal -The formal evaluation of employees’ job performance & contributions to their organization. Performance Feedback -Ongoing specific communication as to how an employee is performing - The process through which managers share performance appraisal information, give subordinates an opportunity to reflect on their own performance, and develop with subordinates, plans for the future. Types of Performance Appraisal Trait Appraisals -Assessing subordinates on personal characteristics that are relevant to job performance.
- Disadvantages of trait appraisals o Employees with a particular trait may choose not to use that particular trait on the job. o Traits and performance are not always obviously linked o It is difficult to give feedback on traits. Behavior Appraisals -Assesses how workers perform their jobs—the actual actions and behaviors that exhibit on the job. -Focuses on what a worker does right and wrong and provides good feedback for employees to change their behaviors. Results appraisals -Managers appraise performance by the results or the actual outcomes of work behaviors Objective appraisals
Approach performance appraisal as an opportunity to problem solve, & opportunity to improve - not just to criticize. Express confidence in a subordinate ability to improve. Provide performance feedback both formally & informally. Praise instances of high performance and areas of a job in which a worker excels. Avoid personal criticisms and treat subordinates with respect. Agree to a timetable for performance improvements. Getting Past No, Getting to Yes! From: Separate the people from the problem Focus on interests & needs, not positions or demands Start with goals that both parties already agree to Tackle other issues by inventing options for mutual gain Use objective criteria to evaluate success When we deal with people from different cultures, we too often we let our triggers and current paradigms take over our judgment, take over our objectivity. We assume a person will act a certain way, or we forget that there may be good solutions not yet thought of. We focus on the current limitation of the person, instead of focusing on how to find a new solution to the current situation. So the first step if managing conflict is to focus on the problem, not on the person. But we can’t forget there are real people involved. We must get past positions and focus on interests and needs.
Which of the following is NOT a reason for this problem? a. Employees want to maintain positive self-images. b. Performance appraisals can be put off due to “today’s crisis.” c. The goals of performance appraisal and feedback often conflict with each other. d. Managers tend to pay more attention to appraisals than to development. The in-between “noise” affects perception! - noise” refers to the distractors the prevent us from hearing a message as the sender intended. -E.g. stress level, educational background, past & current experiences, physical (dis)comfort, needs, values, nature of relationship How can your message get decoded incorrectly? a. You are rushed, and don’t take the time to be specific in your feedback. b. Employee feels defensive and “hears” your feedback as a personal attack c. You get angry at your employee for not accepting your feedback in the way you intended. d. All of the above 4. Pay and Benefits Pay -Includes employees’ base salaries, pay raises, and bonuses -Determined by characteristics of the organization and the job and levels of performance -Benefits are based on membership in an organization
-The power that a manager has over an individual worker causes workers to join together in unions to try to prevent this. - Unions are permitted by the National Labor Relations Act (1935) which also created the NLRB to oversee the relationship between employers and unions. -Not all workers want unions. Union membership costs money in dues and workers might not want to strike. -Union membership is lower today than 40 years ago. Collective bargaining -Negotiation between labor and management to resolve conflicts and disputes about issues such as working hours, wages, benefits, working conditions, and job security. -Mediator & Arbitrator Video Case: Multigenerational Offices Teaching Objective: To gain an appreciation of the value of diversity in the workplace and to understand some of the challenges diversity presents for human resource managers Summary: At the New York City office of Randstad, a large temporary employment agency, the youngest and oldest employees work side-by-side, surprisingly well. The young workers value from the experience and knowledge of their senior colleagues, while at the same time they bring excitement and energy to the veterans. This arrangement may work because the large difference in age actually creates a comfort level with no jealousy of competitiveness. Questions: What challenges do human resource managers face when mixing three different generations in the workplace? Workers of different ages may result in communication barriers between employees when they are from consecutive generations. The so-called generation Y’s, for instance, have different experiences, attitudes, work habits, and motivations than baby boomers or even generation X. Blending these personalities can pose a challenge.
What accounts for the fact that at Randstad the youngest generation works better with the oldest generation rather than people in the middle? The difference in age is so large it seems to remove jealousy and competitiveness. Two employees at Randstad describe their relationship much like a grandmother and granddaughter; perhaps these two generations don’t experience the friction of a parent and a child. Studies in fact have shown that the World War II generation and generation Y have much in common. Could this mixing of generations work in all circumstances? According to expert Michael Feiner of Columbia Business School, it takes a special organization where the 60-year olds are comfortable and don’t feel threatened by the youngest employees. On the other hand, the young have to understand the benefits their seniors have to offer.
