Principles of Management - week # 9

Chapter 11 - Human Resource management --------------------------------------------

On this chapter we have discussed the following issues: - What does Human Resource management involve - Human Capital - The seven steps in the employee selection procedure - How can managers be more effective interviewers - Performance appraisals and their importance - Training programs - what is good training ? - Affirmative action - Equal employment opportunities - Dealing with sexual harrassment and alcohol and drug abuse at work.

Some personal thoughts......

I don't think people pay enough attention to the importance of human resources. After reading this chapter, I realized how important are the choices made by human resources personnelle. Say a manager interviews people for a certain position - and he does not follow a clear interviewing plan - like the seven steps we discussed on this chapter - he/she can easily choose all the wrong people for the job, while other people who are more suitable to do the job - are sent on their way with negative answers... A bit scary isn't it ?

My experience with human resources and bad interviewers...

I used to work for a travel agency in Israel, that nominated a very unqualified person to do the department manager role. This person lacked the professional experience, the knowledge, any managing skills and basically all the qualities she needed to have in order to manage our department successfully. I remember she hired two new employees, one of which did not speak English (an essential thing when you work at the Incoming tourism department ) , the other was just unexperienced and training her was a great burden during peak season. Bringing new people into our department was done in order to take off some of the work load in peak season - but it did the exact opposite... We had to train two new employees from scratch. The person who did not speak English quit a week later. The other person stayed around for a while but for a long time was working as an assistant and not as an independent tour operator. The whole thing was totally inefficient. ----------------------------------------------------------------------------------------------- There's something about the TJMAX .......

I love that store. in fact I like all of them, each branch with its own merchandise, sales etc' . I visit them frequently thinking I know where to look for the best bargains in each store... but what did I really know about TJMAX? I was very impressed to read the article about the TJX stores, hiring people who were unemployed and living on welfare. I think it's a great program, effective for both employer and employees. ------------------------------------------------------------------------------------------------

What is good training ?

When I started working as a tour operator, I was enrolled in the Authorized clerks program at the Israeli tourism school in Tel Aviv. I was training for my first job while actually already working ... My employer then - Peltours - paid half of my tuition in exchange to my commitment to work there for additional two years from the day I finish school. But the best training was actually working in the office... I learned alot from my mistake - the "school of hard knocks"... When I quit and started working for Unitours (that place with that horrible manager) I was thrown into deep water, because at Peltours I mainly worked as an assistant, and was less independent. This was the fastest and best way to learn the job. Tourism is a very dynamic field and there's no one-solution to every problem. You have to know how to improvise and you have to work fast. I learned to do that - I guess I had it in my blood, otherwise I wouldn't survive all the pressure. When I was fired and started working at Eshet Incoming (my last employer in Israel ) - I was well trained, completely independent, full of confidence and able to enjoy my work. ------------------------------------------------------------------------------------------------ Here's closing case # 6 - it discusses training methods and approach of Paychex.

Closing case # 6 – Training pays off at Paychex.

Summary: The case brings up the story of Paychex, a company that develops and supports the concept of “human capital” by training employees the old fashioned way, and reaping rewards for it. This case discusses the reasons for Paychex success, even in the internet-oriented world of today. Questions:

1. Is the concept of “human capital” evident in this case? Explain. By definition, the term human capital encircles all present and future workforce participants and emphasizes the need to develop their fullest potential for the benefit of the global economy. Human Capital involves a “thinking big” approach, and this concept is evident in this closing case because Paychex approach is based on the belief that if you train people properly to do their job – they will do a better job, therefore – no matter what you train people for – the global economy will benefit from that, and this is what “thinking big” is all about. Paychex success is in continual training and employee development – in other words “human capital” is the key to its success.

2. Would Jeffery Pfeffer likely call Paychex a people-centered company? why or why not? Pfeffer will likely call Paychex a people centered company but with some hesitation. Paychex provides comprehensive training and compensation linked to performance, it shares key information with trainers and trainees. It also empowers employees through decentralization and self-managed teams, all of which are characteristics of a people centered company. But Paychex does not offer other things that are included in Pfeffer’s seven people-centered practices, so it’s possible that he will define Paychex NOT as a classic people-centered company but as one with some exceptional qualities.

3. Why not just put the entire university of of Paychex curriculum online to eliminate all the travel and classroom time? The University of Paychex is based on a traditional old fashioned training method. It uses instructors, close mentoring, and personal contact, and this allows the company to get a better handle of the learning style of each individual. Paychex training methods allow trainees to learn their work on an “almost live” system, what makes the learning experience enjoyable and educational. The face-to-face sessions are a paramount to the overall success of Paychex. In addition the company operates in a highly regulated government business which means that every time the laws or regulations change – so must Paychex, what makes it inefficient to have a whole curriculum online as it will be time consuming and costly to constantly update it.

4. What are the keys to success for the University of Paychex? Paychex success is concealed in the personal contact that it offers its students. This approach allows the trainers to make sure all trainees understand the material studied, and in case the student need personal tutoring – the trainers are available to provide that. The trainers also follow up with managers to see if their teaching methods worked, thus allowing them to take corrective actions and improve training results.

5. How could Paychex improve the training program? I think that Paychex can improve the training program by adding to it some kind of a residency period after training has been completed, and before the trainees goes back to his workplace. Residents can be monitored carefully and guidance can be provided during that time in order to improve function.

Summation: I believe in the concept of “human capital” discussed in this case. I think that people are the key to a business’s success. Without well trained, carefully chosen, and motivated employees - a business is doomed to fail. I think motivating employees, training them and providing them with good feedbacks when they deserve it – is essential in order to develop loyalty and productivity. This case brings a classic example of a company that its whole existence is based on the concept of Human Capital. I think it is a positive and right thing, and I completely understand why it is so successful.

Paychex website: The company offers a vast and detailed description of all the services it offers. It makes it easier for clients to search for the needed assistance and it creates a sense of trust in the way it presents itself (“this is us, this is what we offer” – no hidden small letter exceptions, no misleading info). It also allows clients to maintain their accounts online in a friendly- easy to do - manner. It also allows employees to do all kinds of functions online. The whole website transmits a “people-centered” message, thus achieving the company’s goal and believes: to be a people centered company and support the concept of Human Capital.