The New Employment EnvironmentChapter 25

In the late 20th century globalization of many of the world markets took place. • Many companies had to face new competitive

pressure that they were unaccustomed to.

• Many American companies were forced to downsize their operations by cutting the number of employees, reducing product offerings, or cutting costs in other ways.– Some companies restructured their operations to

work and use resources more efficiently.

Job Security

• Job security is the likelihood an employee will continue to be employed by the same company in the future.

• Many former employees who lost their jobs when businesses cut back have been unable to find satisfying employment.–Many employees have had to accept lower-level

jobs or jobs that pay less of offer fewer benefits then they help previously.

Two major changes have emerged for the human resource department due to

the change in the business climate.

• Organization Development

• Career Development – is a program that matches the career plans of employees with the employment needs of the business.

Organizational Development

• Organization Development – refers to carefully planned changes in the structure and operation of a business to adjust to a competitive business environment.

• Employees pay a major role in product quality, customer satisfaction, equipment maintenance, and efficient use of material to limit waste.

• Companies pay attention to the way in which they structure their organization, how work flows through the business, and how employees work together and with their managers.

Two important elements of an effective organizational development program.• Improving Work Possesses– Improving the way work is accomplished in a

business.– The goal of work process improvement is to eliminate

errors, improve quality, and reduce costs.• Building Effective Relationships.– Focuses on the people who complete the work.– Studies have shown that employees who believe they

are an important part of the organization will be committed to its success and will work to achieve the company’s goals.

Improving Work Processes

• One of the focuses of organization development is to improve the way work is accomplished. – Includes

• Materials and resources used.• The organizational structure.• Relationship among work units.• Job duties assigned to individuals and groups.• Work procedures and operations.

• Most of the emphasis on improving work processes is directed inside the company.

• Improving work processes also involved the way businesses work with each other as a part of the product development and distribution.

Identifying the need for change.• If the market changes and a business does not,

the business will eventually fail.

• The reason for the failure of a previously successful business is most likely to the inability to change.

External Environment Problems

• Some external environment changes that can become problematic for a company include:– A change in workforce demographics

– The nature of competition

– Customer expectations

– Technology

Internal Environment Problems

• Some internal environment factors that can become problematic for a company include.– Changes in the company’s workforce

demographics

– Employee expectations

– Outdated work processes.

– Outdated technology

Planning an Organizational Development Program

• The major steps in planning and implementing and organizational development program are the following:

Affirm the mission and goals of the organization.

• There needs to be agreement within the company about the purpose of the business and the criteria to be used to determine if the company is successful.

Identify the important markets that will be the company’s primary focus and the

products and services needed to serve those markets.

• The company uses customer service standards to judge if it is meeting its expected objectives in markets.

Determine the organizational changes required to achieve the company’s mission, goals, and customer service standards, and

prepare a plan for implementing the changes.

• This plan should include performance standards.

• Most organization development changes require a long time to achieve success.

Build commitment within the organization for the changes.

• Successful organizational change requires the understanding and support of managers and employees.

Follow thorough on the organizational development plans.

• Employees are more likely to support the plans if they see the organization is committed to them and that the change is occurring.

Make the new process part of the organization’s culture.

• When the new process is implemented and supported, the organization has changed, and the old procedures are no longer appropriate, the organization development program is complete.

Customer Service Standards

• Customer Service Standards - measures against which the company judges its performance in meeting customer expectations.– These standards may include the minimum

acceptable levels of product quality, delivery speed, order fulfillment accuracy, and customer support and follow-up.

Performance Standards

• Performance standards – specific statements for the expected results from critical business activities.

Improving the Work Environment

• Today employees are concerned about a variety of factors related to their work, including the work schedule and working conditions.

• Satisfied workers are more productive, have fewer absences, and are more likely to want to stay with the company.

Studies have found employees are more satisfied with their work when

they:• Perform interesting work.

• Feel responsible for their work.

• Receive recognition for good work.

• Have a feeling of achievement.

Job design

• Job design – refers to the kinds of tasks that make up a job and the way workers perform these tasks in doing their jobs.

Job enlargement

• Job enlargement – making the job more interesting by adding variety to the tasks.– Employees also need training and adequate time

and practice to develop the new skills.

– Companies should not enlarge jobs just to reduce the number of employees or to get employee to do more work.• If employees believe these are the reasons for enlarging

their jobs, they will not accept the changes willingly.

Cross Training

• Cross training – is when employees are trained to perform more than one job in the company, even though they typically perform only one.– Cross training makes an employee more valuable

to the company since that person can perform a broader set of work tasks.

– Employees learn more about the work performed in the organization as they learn multiple jobs and increase their skills.

Job Enrichment

• Job enrichment – meaning giving employees the authority to make meaningful decisions about their work.– Job responsibilities may be changed so employees

can solve problems themselves, without checking with their supervisor.

Career Development

• Successful companies realize that it is not easy to find employees with the qualifications required.– It very expensive to

hire and train a new employee.

A Career Development Program

• A career development plan - a plan for meeting the company’s future employment needs by systematically preparing current employees for future positions in the company.

• A career development program requires:– A long term organizational plan.– Career paths– Effective employee performance reviews.– Career counseling– Training.– Development for employees.

Long Term Plans

• Companies need to determine:–What jobs will be available in the future.

– How many people will be needed in each job.

– The knowledge and skills the employees will require to complete their jobs.

Career Paths

• A career path – a progression of related jobs with increasing skill requirement and responsibility.

• Career paths provide opportunities for employees to advance within the company, to make additional contributions, and to receive increased satisfaction from their work.

• Traditionally, career paths move and employee from an entry level position into management.

Performance Reviews

• When employees know how well they are performing they can determine what skills they need to improve to meet current job requirements or to qualify for anther job in a career path.

Career Counseling

• For career development to be effective, employees must be aware of opportunities and plan their career paths.

• Managers are often trained to provide career information to the employees they supervise.

Career Plan

• A career plan – identifies – The jobs that are part of the employee’s career

path.

– The training and development needed to advance along the career path.

– The training and development needed to advance along the career path.

– A tentative schedule for the plan’s activities.

Career Centers• Career centers – are facilities where human

resources employee manage career development activities.

• Employees can visit the center to obtain career information.

Training and development

• The final part of a career development program is training employees in the skills needed for changing job requirements and new jobs.

Implementing a Career Development Program

• Responsibility for organizing and managing the career development program must be assigned.–Most companies assign the program to the human

resource department.

• Everyone in the business must be educated about the career development program and his or her role in career planning.

Special Career Development Programs

• Companies that offer career development programs should make the service available to all employees from the newest to the most experienced.

• Most companies offer career, planning, training, and consulting to employees selected to be managers.

• Companies may make extra effort to encourage and prepare people from underrepresented demographics for specific jobs.

Improving Employee Performance.

• Companies depend of effective and satisfied employees.

• Employees must have up-to-date skills.

Performance Review and Procedures.

• Companies must make sure employees are performing as well as they possibly can.

Performance Review

• A performance review is the process of assessing how well employees are doing their jobs.

• Companies use the information obtained in performance reviews for career planning, determining increases in wages and salaries, and planning training programs.

Steps for making performance reviews effective.

• First determine what to evaluate.– Use the job description to form a list of duties and

performance expectations.

• Human resources department prepares forms designed to make the review as easy and objective as possible.

• Managers should conduct formal performance reviews of all employees usually once or twice a year.

Planning Training and Development

• Studies estimate the U.S. companies spend between $50-$60 billion dollars each year on formal training programs.– Informal training may cost companies in the area

of $200 billion each year.

• On average, companies spend several hundred dollars on every employee.

Determining the Need for Training

• An important activity for a company is determining the need for employee training.

• Some training needs are obvious.– Training on new equipment.– New operations– Improved procedures.

• Some training needs are not so obvious– Poor work performance.– Conflict between employees.– Customer dissatisfaction.– Work hazards, and employee injuries.

Career Opportunities in Business

• Because common areas of knowledge and skills are important to many types of business, you are not limited to one career path, one type of business, or one geographic area.

• If job prospects are not particularly good in one part of the country or field, a skilled businessperson can probably find employment in anther field or region.

Levels of Employment

• Entry Level–Most people start at an entry level position.

– Entry level positions involve routine activities and require little training.

Levels of Employment (Continued)

• Career Level– People in career level occupations have the

authority to control some of their work and make some decisions.

– To be successful they should have a basic understanding of business and skill in the areas in which they are working.

Levels of Employment (Continued)

• Specialist Occupations– Requires a variety of skills in one of more business

functions and extensive understanding of the operation of a specific company or industry.

– Specialists are the people considered the most skilled or expert in the activates they complete on the job.

Levels of Employment (Continued)

• Supervisors / managers – Hold the first levels of management in the

companies.

• Executives / entrepreneurs– Perform all of the management tasks associated

with owning a business or managing a major function, a large unit in a company, or the entire company.

Careers in International Business

• Due to the fact it has never been easier to travel to other countries, communicating with people around the world, buy products produced in other places, and sell products and services abroad.– To be successful in international business you need

to know something about the culture of the country in which the business will operate or to which the company’s products and service are directed.

Preparing for a Business Career

• Today a person is less likely to enter a business career without specific preparation.

• Experience in business is always an advantage.

• Most employers value experience when they hire employees.

Developing a Career Plan

• The following steps to provide an outline to follow in developing a career plan.– Develop an understanding of business concepts and the types of

business careers.– Complete a self-assessment of your knowledge, skills, and

attitudes that are related to those needed in business careers.– Identify the education and experience requirements for business

careers.– Discuss the education and experience you will need with people

(counselors or businesspeople) who are familiar with education programs and employment opportunities.

– Develop a career plan that identifies the knowledge and skills needed for the career you have chosen and how you will develop them through a combination of education and experience.

Preparing a Career Portfolio

• A portfolio is an organized collection of information and materials developed to represent yourself, your preparation, and you accomplishments.