Chapter 12

Human Resource Management

The Strategic Role of HRM

HR must drive organizational performance; its
the competitive edge

Matching process

Integrate strategy

HR builds culture

The right people:

To become more competitive on a global basis
For improving quality, innovation, and customer
service
To retain during mergers and acquisitions
To apply new information technology for e-business
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12.1 Strategic Human Resource Management

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Building Human Capital to Drive

Performance
Strategic decisions are related to
human decisions
More companies rely on information,
creativity, and knowledge

Human Capital is the economic value of

the combined knowledge, experience,
skills, and capabilities of employees
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12.2 The Role and Value of Human Capital

Investments

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The Impact of Federal Legislation on

HRM
HR managers must stay on top of legal and
regulatory environment
Many laws exist to ensure equal opportunity and
stop discrimination
Discrimination the hiring or promotion of
applicants based on criteria that are not job related
Affirmative action requires employers to take
positive steps to guarantee equal employment
opportunities for people of protected groups
Sexual harassment is a growing concern that is
a violation of the Civil Rights Act
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12.3 Major Federal Laws Related to Human-Resource

Management

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The Changing Nature of Careers

Employees operate under a new social
contract
Downsizing, outsourcing, rightsizing, and
restructuring have left little stability
Subsidized benefits are decreasing
Employees are expected to be self-motivated
Organizations must be creative with training
and development
New performance appraisal processes are
required
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12.4 The Changing Social Contract

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Innovations in HRM
Becoming an Employer of Choice
Organizations that are highly attractive to
potential employees because of HR
practices

Using Temporary and Part-Time

Employees
Contingent workers are not permanent,
maintain flexibility, and keep costs low

Promoting Work/Life Balance

Critical retention strategies
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Promoting Work-Life Balance

Helping workers lead a balanced life

Part-time work and telecommuting
Flexible scheduling
Gen Y/Millennials demand more work-life
balance (work hard & work smart; want
to accommodate jobs & personal lives)

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Finding the Right People

Using the matching model, the

organization and the individual attempt
to match the needs, interests, and values
that they offer each other

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12.5 Attracting an Effective Workforce

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Human Resource Planning

What new technologies are emerging?
What is the volume of the business likely to be in
the next 5 to 10 years?
What is the turnover rate?

What types of engineers will we need?

How many administrative personnel will we need
to support additional engineers?
Can we use temporary, part-time, or virtual
workers?
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Recruiting (talent acquisition)

Assessing Organizational Needs:
Job Analysis
Job Description
Job Specification

Realistic Job Previews provide

pertinent information; positive and
negative
Legal Considerations recruiting
practices must be legal
Innovations in Recruiting:
eRecruiting
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Twitter,
other
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12.6 Sara Lees Required Skills

for Finance Executives

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12.7 PAIREs Recruitment and

Hiring Policy

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Selecting
Employers assess applicants for a fit
HR professionals us a combination of
devices:

Application Form

Avoid irrelevant questions

Avoid questions w/ adverse
impact

Interview; cannot
violate EEO (Equal
Employment
Opportunity) guidelines

Employment
Tests

Cognitive ability
tests
Physical ability
tests
Personality tests
Brainteasers

Structured interviews
Biographical interviews
Assessment
Behavioral interviews
Situational interviews
Center
Panel interviews
Work sample
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12.8 Employment Applications and Interviews: What

Can You Ask?

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12.9 Interview Brain Teasers

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Managing Talent
Training and Development
On-the-Job Training
Corporate Universities
Promotion from Within
Mentoring and Coaching

Development involves teaching

broader skills
Performance Appraisal
Evaluating performance, recording
assessment, and providing feedback

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12.10 Methods and Goals of

Training

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Performance Appraisal
Assessing Performance Accurately
system should evaluate relevant
performance
Performance-review ranking systems pit
employees against each other

360-degree Feedback uses multiple

raters, including self-rating to appraise
employees and development
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Performance Evaluation Errors

Example: Stereotyping placing an

employee into a class or category based
on a few characteristics
To Overcome: Behaviorally Anchored
Rating Scales (BARS) rating technique
that relates an employees performance to
specific job-related incidents (kerja yg
berkaitan rujuk Exhibit 12.11 pg 354)
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12.11 Example of a Behaviorally Anchored Rating

Scale

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Compensation
Compensation all monetary payments and all
goods or commodities used to reward employees
Wage and Salary Systems
Job-based pay (linked to specific tasks
done/completed)
Skill-based pay (linked to skills acquired/needed)
Competency-based pay (linked to expertise/being
expert)

Compensation Equity fairness and equity

Pay for Performance raise productivity and
cut labor costs in competitive environment

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Benefits
Social security, unemployment
compensation, and workers
compensation are required by law
Cafeteria-plan benefits packages allow
employees to select benefits for
themselves
Benefits have been cut due to the
recession
Companies are dropping employer-

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Rightsizing the Organization

Reducing the companys workforce to
the right size; also called downsizing
Make company stronger and more
competitive
HR must effectively and humanely
manage the process
Many organizations use communication
and provide assistance to address
emotional needs

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Termination
Employees leave voluntarily, retire,
are rightsized, and are fired for poor
performance
Poor performing employees can be
disruptive and cause problems for
morale
Exit interviews can be used to
learn about dissatisfaction
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The Changing Workplace

Demographic changes
have transformed society
Good organizations take
steps to attract and
maintain workers
Diversity is no longer just
the right thing to do
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Globalization
Organizations must compete on a
global basis
Success is determined by global HR
strategies
International human-resource
management addresses the added
complexity of managing diverse people
globally
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