Human Resource Management

Human Resource ManagementHuman Resource Management

CHAPTER 12CHAPTER 12

2 Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved.

Learning ObjectivesLearning Objectives

Explain the role of human resource management in organizational strategic planning.

Describe federal legislation and societal trends that influence human resource management.

Explain what the changing social contract between organizations and employees means for workers and human resource managers.

Show how organizations determine their future staffing needs through human resource planning.


Learning Objectives (contd.)Learning Objectives (contd.)

Describe the tools managers use to recruit and select employees.

Describe how organizations develop an effective workforce through training and performance appraisal.

Explain how organizations maintain a workforce through the administration of wages and salaries, benefits, and terminations.


The Strategic Role of Human Resource Management

The Strategic Role of Human Resource Management

All managersare resource

managers

Employees areviewed as

assets

Matching process,integrating theorganization’sgoals withemployees’ needs

How a company manages its workforce may be single more important factor in sustained competitive success


Current Strategic IssuesCurrent Strategic Issues

Becoming more competitive globally

Improving quality, productivity, & customer service

Managing mergers & acquisitions

Applying new information technology for e-business

Determine a company’s need for skills and employees


Strategic Human Resource Management GoalsStrategic Human Resource Management Goals

Develop an Effective Workforce

TrainingDevelopmentAppraisal

Maintain an Effective Workforce

Wage and salaryBenefitsLabor relationsTerminations

HRM planningJob analysisForecastingRecruitingSelecting

Attract an Effective Workforce

Company StrategyHRM EnvironmentLegislationTrends in societyInternational eventsChanging technology

Exhibit 12.1


Environmental Influences on HRMEnvironmental Influences on HRM

Competitive Strategy

– Building Human Capital

– Globalization

– Information Technology

Federal Legislation


GlobalizationGlobalization

IHRM = addresses the complexity that results from recruiting, selecting, developing, and maintaining a diverse workforce on a global scale


Information TechnologyInformation Technology

Human resource information technology = an integrated computer system designed to provide data and information used in HR planning and decision making

Traditional HR to e-HR significantly affected every area of human resource management

Some organizations are close to a paperless HRM system – saves time, money, frees staff


Federal LegislationFederal Legislation

Discrimination = hiring or promoting of applicants based on criteria that are not job relevant

Affirmative action = policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups


Major Federal Laws - HRMMajor Federal Laws - HRM

Equal Opportunity/Discrimination Laws

Compensation/Benefits Laws

Health/Safety Laws

Exhibit 12.3


The Changing Social ContractThe Changing Social Contract

New Contract Old Contract

Employee

Employer

Employability, personal responsibility Partner in business improvement Learning

Job security A cog in the machine Knowing

Continuous learning, lateral careermovement, incentive compensationCreative development opportunitiesChallenging assignmentsInformation and resources

Traditional compensation package

Standard training program Routine jobs Limited information

SOURCE: Based on Louisa Wah, “The New Workplace Paradox “ Management Review, January 1998,7; and Douglas T. Hall and Jonathan B. Moss, “The New Protean Career Contract: Helping Organizations and Employees Adapt,” Organizational Dynamics, winter 1998, 22-37.

Exhibit 12.4


HR Issues in the New WorkplaceHR Issues in the New Workplace

Employer of choice

Teams and Projects

Temporary Employees

Technology

Work-Life Balance

Downsizing


HR Issues in the New Workplace


An employer of choice is a company that is highly attractive to potential employees because its human resource practices focus on both– Tangible benefits and

– Intangible benefits

Employer of Choice




Teams and Projects – major trend in today’s workplace With emphasis on projects, distinctions between job

categories and descriptions are collapsing Many of today’s workers straddle functional &

departmental boundaries; handle multiple tasks/responsibilities

Virtual team = made up of members who

– are geographically or organizationally dispersed,

– rarely meet face to face, and

– do their work using advance information technologies.

Teams and Projects




In opening years of the 21st century, largest employer in U.S. was a temporary employment agency, Manpower, Inc.

Temporary Employees do everything from data entry to interim CEO

Contingent workers = people who work for an organization, but not on a permanent or full-time basis, including temporary placements, contracted professionals, or leased employees

Temporary Employees




Telecommuting and virtual teams are related trends

Telecommuting = using computers and telecommunications equipment to perform work from home or another remote location

Work anywhere - wireless Internet devices, laptops, cell phones, fax machines

Extreme telecommuting = people live nd work in countries far away from the organization’s physical location

Technology




Telecommuting is one way organizations help employees lead more balanced lives

Flexible scheduling important in today’s workplace – 27% of workforce/flexible hours

Broad Work-Life Balance initiatives – critical retention strategy – on-site gym & childcare, paid leaves & sabbaticals

Work-Life Balance

Many European companies ahead of U.S. companies




Downsizing = intentional, planned reduction in the size of a company’s workforce

Managers can smooth the downsizing process– Regularly communicating with employees

– Providing them with as much information as possible

– Providing assistance to workers who will lose their jobs

– Using training and development for remaining employees

Downsizing


HR Issues in Attracting an Effective Workforce

HR Issues in Attracting an Effective Workforce

HR issues present many challenges for organizations and HR managers as they work toward the three primary HR goals

● Attracting● Developing● Maintaining an effective workforce


Matching ModelMatching Model

An employee selection approach in which the

organization and the applicant attempt to match each

other’s needs, interests, and values

Attracting an Effective Workforce


Attracting an Effective WorkforceAttracting an Effective Workforce

Choose RecruitingSourcesWant adsHeadhuntersInternet

Choose RecruitingSourcesWant adsHeadhuntersInternet

HR PlanningRetirementsGrowthResignations

Select theCandidateApplicationInterviewTests

Welcome NewEmployee

Employee ContributionsAbilityEducationCreativityCommitmentExpertise

Company InducementsPay and benefitsMeaningful workAdvancementTrainingChallenge

Matching Model

Match with

Company NeedsStrategic goalsCurrent & future competenciesMarket changesEmployee turnoverCorporate culture

Employee NeedsStage of careerPersonal valuesPromotion aspirationsOutside interestsFamily concerns

Match with

Exhibit 12.5


Human Resource PlanningHuman Resource Planning

Forecasting of human resource needs and the projected matching of individuals with expected vacancies

● ? = New technologies emerging

● ? = Volume of business likely next 5-10 years

● ? = Turnover rate, how much is avoidable, if any


RecruitingRecruiting

Recruiting = activities or practices that define the desired characteristics of applicants for specific jobs

● Internal – promote-from-within policies used by many to fill high-level positions

● External = recruiting newcomers from outside has advantage of multiple sources

● E-cruiting = use of Internet - fastest-growing approach to recruiting


Basic Building Blocks of HR Management

Basic Building Blocks of HR Management

Job Analysis

Job Description

Job Specification


SelectingSelecting

Selection = process of determining the skills, abilities, and other attributes a person needs to perform a particular job

Validity = relationship between an applicant’s score on a selection device and his or her future job performance


Selecting (contd.)Selecting (contd.)

Application form - device used for collecting information about an applicant’s education, previous job experience, and other background characteristics

Research = biographical information inventories can validly predict future job success


Interviewing An ApplicantInterviewing An Applicant

Know what you want

Prepare a road map

Use open-ended questions

Do not ask irrelevant questions

Do not rush interview

Do not rely on your memory


Reasons For Not Asking About Home OwnershipReasons For Not Asking About Home Ownership

● Might adversely affect applicants chances at the job

● Minorities and women may be less likely to own a home

● Home ownership is probably unrelated to job performance


Interview as Predictor of SuccessInterview as Predictor of Success

Interview is not generally a valid predictor of job performance – has high face validity as a selection tool

Panel interviews – candidate meets with several interviewers who take turns asking questions – increases interview validity

Computer-based interviews - complement traditional interviewing information


Inappropriate or Illegal QuestionsInappropriate or Illegal Questions

Race-related questions Age Religion Gender National origin Marital/family status

Employment Applications and Interviews


Testing and AssessmentTesting and Assessment

Employment Test = written or computer-based test designed to measure a particular attribute such as intelligence or aptitude

Assessment Center = technique for selecting individuals with high managerial potential based on their performances on a series of simulated managerial tasks


Developing an Effective WorkforceDeveloping an Effective Workforce

Training and development = planned effort to facilitate employees’ learning of job-related skills and behaviors $ 51.1 billion spent in 2005 On-the-job training = an experienced

employee “adopts” a new employee to teach him or her how to perform job duties

Cross training

Mentoring

Following selection, next goal of HRM is to develop employees


Performance AppraisalPerformance Appraisal

Process of observing and evaluating an employee’s performance, recording the assessment, and providing feedback to the employee

Steps● Observing and assessing performance● Recording the assessment● Providing feedback to employee


Making Performance Appraisals A Positive ForceMaking Performance Appraisals A Positive Force

1. The accurate assessment of performance through the development and application of assessment systems such as a rating scale

2. Training managers to effectively use the performance appraisal interview to provide feedback that reinforces good performance and motivate employee development


Assessing Performance AccuratelyAssessing Performance Accurately

360° Feedback Process

Performance Evaluation Errors– Stereotyping– Halo effect– BARS – Behaviorally-anchored rating scale


Maintaining an Effective WorkforceMaintaining an Effective Workforce

Compensation

– Wage and Salary Systems

– Compensation Equity

– Pay for Performance

Benefits

Termination


TerminationTermination

Employees who are poor performers can be dismissed Employers can use exit interviews in a positive manner

Value of termination for maintaining an effective workforce is two fold

Human Resource Management

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effective

effective

information

organizations

describe