Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc. 1 Chapter 11 Human Resources Management
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 1
Chapter 11
Human Resources Management
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 2
LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter.
• Why Human Resources Is Important–Explain how an organization’s human resources can be a
significant source of competitive advantage.
–List the eight activities necessary for staffing the organization and sustaining high employee performance.
• The Human Resources Management Process–Discuss the environmental factors that most directly
affect the HRM process.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 3
LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter.
• Human Resources Planning–Contrast job analysis, job description, and job
specification.
• Staffing the Organization–Discuss the major sources of potential job candidates.
–Describe the different selection devices and discuss which ones work best for different jobs.
–Explain what a realistic job preview is and why it’s important.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 4
LEARNING OUTLINE (cont’d) Follow this Learning Outline as you read and study this chapter.
• Orientation and Skill Development– Describe the different types of training and how that training
can be provided.
• Managing and Rewarding Performance– Describe the different performance appraisal methods.
• Compensation and Benefits– Discuss the factors that influence employee compensation and
benefits.
– Describe skill-based pay systems.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 5
LEARNING OUTLINE (cont’d)Follow this Learning Outline as you read and study this chapter.
• Career Development– Describe career development for today’s employees.
• Current Issues in Human Resources Management– Explain how managers can manage downsizing.
– Discuss how managers can manage workforce diversity.
– Explain what sexual harassment is and what managers need to know about it.
– Describe how organizations are dealing with work-life balances.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 6
The Importance of Human Resources Management (HRM)
• Necessary part of the organizing function of management– Selecting, training, and evaluating the workforce
• An important strategic tool– HRM helps establish an organization’s sustainable
competitive advantage.
• Adds value to the firm– High performance work practices lead to both high
individual and high organizational performance.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 7
The HRM Process
• Functions of the HRM Process– Identifying and selecting competent employees
– Providing employees with up-to-date knowledge and skills to do their jobs
– Ensuring that the organization retains competent and high-performing employees
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 8
Exhibit 11.2 The Human Resources Management Process
Environment
Environment
Decruitment
RecruitmentHumanResourcePlanning
Selection
Orientation Training
PerformanceManagement
CareerDevelopment
CompensationandBenefits
Identification and Selectionof Competent Employees
Adapted and competentemployees with up-to-dateskills and knowledge
Competent and high-performing employees whoare capable of sustaining high performance over
the long term
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 9
Managing Human Resources
• Human Resources (HR) Planning– The process by which managers ensure that they have the
right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks
– Helps avoid sudden talent shortages and surpluses
– Steps in HR planning:• Assessing current human resources
• Assessing future needs for human resources and developing a program to meet those future needs
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 10
Current Assessment
• Human Resources Inventory– A review of the current makeup of the organization’s
resources status– HR Management Information Systems (HRMIS)
• Tracks employee information for policy and strategic needs
– Job analysis• An assessment that defines a job and the behaviours necessary
to perform the job:– Knowledge, skills, and abilities
• Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 11
Current Assessment (cont’d)
• Job Description– A written statement of what the jobholder does,
how it is done, and why it is done
• Job Specification– A written statement of the minimum
qualifications that a person must possess to perform a given job successfully
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 12
Staffing the Organization
• Recruitment– The process of locating, identifying, and
attracting capable applicants to an organization
• E-recruiting– Recruitment of employees through the Internet
• Organizational web sites• Online recruiters
• Decruitment– The process of reducing a surplus of employees
in the workforce of an organization
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 13
Exhibit 11.4 Major Sources of Potential Job Candidates
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 14
Exhibit 11.5 Decruitment Options
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 15
Selection
• Selection Process– The process of screening job applicants to ensure that the
most appropriate candidates are hired
• Selection– An exercise in predicting which applicants, if hired, will
be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance
– Selection errors:• Reject errors for potentially successful applicants
• Accept errors for ultimately poor performers
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 16
Exhibit 11.6 Selection Decision Outcomes
Correctdecision
Accepterror
Correctdecision
Rejecterror
Selection Decision
Accept Reject
Late
r Jo
b P
erf
orm
ance
Unsu
ccess
ful
Succ
ess
ful
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 17
Types of Selection Devices• Application Forms
• Written Tests
• Performance Simulations
• Interviews
• Background Investigations
• Physical Examinations
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 18
Exhibit 11.7 Selection Devices
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 19
Other Selection Approaches
• Situational Interviews– Interviews in which candidates are evaluated on how well
they handle role play in mock scenarios
• Background Investigations– Verification of application data
– Reference checks:• Lack validity because self-selection of references ensures only
positive outcomes
• Physical Examinations– Useful for physical requirements
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 20
Tips for Managers: Some Suggestions for Interviewing
• Structure a fixed set of questions for all applicants.
• Have detailed information about the job for which applicants are interviewing.
• Minimize any prior knowledge of applicants’ background, experience, interests, test scores, or other characteristics.
• Ask behavioural questions that require applicants to give detailed accounts of actual job behaviours.
• Use a standardized evaluation form.
• Take notes during the interview.
• Avoid short interviews that encourage premature decision making.
Source: Based on D.A. DeCenzo and S.P. Robbins, Human Resource Management, 7th ed. (New York, Wiley: 2002, p. 200)
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 21
Exhibit 11.9 Quality of Selection Devices as Predictors
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 22
Orientation and Skill Development
• Bringing a new employee into the organization– Work-unit orientation
• Familiarizes new employee with work-unit goals
• Clarifies how his or her job contributes to unit goals
• Introduces employee to his or her co-workers
– Organization orientation• Informs new employee about the organization’s
objectives, history, philosophy, procedures, and rules
• Includes a tour of the entire facility
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 23
Exhibit 11.10 Types of Training
• Interpersonal skills
• Technical
• Business
• Mandatory
• Performance management
• Problem solving/decision making
• Personal
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 24
Exhibit 11.11 Employee Training Methods
• Traditional Training Methods
– On-the-job
– Job rotation
– Mentoring and coaching
– Experiential exercises
– Workbooks/manuals
– Classroom lectures
• Technology-based Training Methods
– CD-ROM/ DVD/videotapes/ audiotapes
– Videoconferencing/ teleconferencing/satellite TV
– E-learning or other interactive modules.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 25
Exhibit 11.12a Occupations of Employees Who Receive Training
0
10
20
30
40
50
60
70
80
90
100
Professional and managerial white collar occupations
Clerical, sales, and service white collar occupations
Blue collar occupations
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 26
Exhibit 11.12b How Employees Train Themselves
0
10
20
30
40
50
60
70
80
90
100
Sought advice from someone
Used the Internet or computer software
Observed someone perform a task
Consulted books/manuals/other documents
Taught themselves by trying different methods
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 27
Managing and Rewarding Performance
• Performance Management System– A process establishing performance standards
and appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 28
Performance Appraisal Methods
• Written Essays
• Critical Incidents
• Graphic Rating Scales
• Behaviourally Anchored Rating Scales (BARS)
• Multiperson Comparisons
• Management by Objectives (MBO)
• 360-Degree Feedback
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 29
Exhibit 11.13 Advantages and Disadvantages of Performance
Appraisal Methods
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 30
Compensation and Benefits
• Benefits of a Fair, Effective, and Appropriate Compensation System– Helps attract and retain high-performance employees
– Impacts on the strategic performance of the firm
• Types of Compensation– Base wage or salary
– Wage and salary add-ons
– Incentive payments
– Skill-based pay
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 31
Exhibit 11.14 Factors That Influence Compensation and Benefits
Sources: Based on R.I. Henderson, Compensation Management, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1994), pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1
Level ofCompensationand Benefits
Employee’s Tenureand Performance
Size ofCompany
Kind ofJob Performed
CompanyProfitability
Kind ofBusiness
GeographicalLocation
Unionization
ManagementPhilosophy
Labour- orCapital-Intensive
How long has employeebeen with company and
how has he or she performed?
Does job requirehigh levels of skills?
What industry is job in?
Is business unionized?
Is business labour- orcapital-intensive?
How large is thecompany?
How profitable is thecompany?
Where is organizationlocated?
What is management’sphilosophy toward pay?
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 32
Career Development
• Career Defined– A sequence of positions held by a person during his or her
lifetime
• Career Development– Provides for information, assessment, and training
– Helps attract and retain highly talented people
• Boundaryless Career– A career in which individuals, not organizations, define
career progression, organizational loyalty, important skills, and marketplace value
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 33
Top 10 Job Factors for College Graduates
(ranked in order of importance)1. Enjoying what they do2. Opportunity to use skills and abilities3. Opportunity for personal development4. Feeling what they do matters5. Benefits6. Recognition for good performance7. Friendly co-workers8. Job location9. Lots of money10. Working on teams Source: Based on V. Frazee.
“What’s Important to College Grads in Their First Jobs?” Personnel
Journal, July 1996, p. 21.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 34
Tips for Managers: Some Suggestions for a Successful Management Career
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 35
Contemporary HRM Issues
• Managing Downsizing– The planned elimination of jobs in an
organization• Provide open and honest communication
• Reassure survivors
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 36
Contemporary HRM Issues (cont’d)
• Managing Workforce Diversity– Recruitment for diversity
– Selection without discrimination
– Orientation and training that is effective
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 37
Contemporary HRM Issues (cont’d)
• Sexual Harassment– An unwanted activity of a sexual nature that affects an
individual’s employment• The Supreme Court of Canada definition: Unwelcome
behaviour of a sexual nature in the workplace that negatively affects the work environment or leads to adverse job-related consequences for the employee
• There continues to be disagreement as to what specifically constitutes sexual harassment.
– An offensive or hostile environment• An environment in which a person is affected by elements of a
sexual nature
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition.Copyright © 2005 Pearson Education Canada Inc. 38
Contemporary HRM Issues (cont’d)
• Work-Life Balance– Employees have personal lives that they don’t leave
behind when they come to work.
– Organizations have become more attuned to their employees by offering family-friendly benefits:
• On-site child care
• Summer day camps
• Flextime
• Job sharing
• Leave for personal matters
• Flexible job hours