Study Question 1: What is human resource management?

Human capital is the economic value of people with job-relevant abilities, knowledge, ideas, energies and commitments

Study Question 1: What is human resource management?

Human Resource Management is a process of attracting, developing, and maintaining a talented work force
Human Resource Management Attracting talented employees Developing talented employees Keeping talented employees

Study Question 1: What is strategic human resource management?

Major human resource management responsibilities:

Attracting a quality workforce Developing a quality workforce
Employee orientation, training and development, and performance appraisal

Maintaining a quality workforce

Career development, work-life balance, compensation and benefits, employee retention and turnover, and labormanagement relations

Human resource planning, recruitment, and selection

Study Question 1: What is human resource management?

Person-job fit
The individuals skills, interests, and personal characteristics are consistent with the requirements of work

Person-organization fit
The individuals values, interests, and behavior are consistent with the culture of the organization
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Study Question 1: What is human resource management?

Equal employment opportunity

The right to employment without regard to race, color, national origin, religion, gender, age, or physical or mental ability Title VII of the Civil Rights Act of 1964 Equal Employment Opportunity Act of 1972 Civil Rights Act (EEOA) of 1991

Study Question 1: What is human resource management?

Current legal issues in HRM

Sexual harassment Equal pay and comparable worth Legal status of independent contractors Workplace privacy

Study Question 2: How do organizations attract a quality workforce?

Human resource planning analyzes an organizations HR needs and how to best fill them
Meeting Future Human Resource Needs Supply of Employees

Demand for Employees

Factors Affecting Staffing

Strategic Goals Forecast demand for products and services Availability of knowledge, skills, and abilities
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Figure 12.2 Steps in strategic human resource planning

Study Question 2: How do organizations attract a quality workforce?

The foundation of human resource planning is job analysis

The orderly study of job facts to determine just what is done, when, where, how, why, and by whom in existing or potential new jobs

Job analysis provides information for developing:

Job descriptions Job specifications

Study Question 2: How do organizations attract a quality workforce?

Recruitment
Activities designed to attract a qualified pool of job applicants to an organization Steps in the recruitment process:
Advertisement of a job vacancy Preliminary contact with potential job candidates Initial screening to create a pool of qualified applicants
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Study Question 2: How do organizations attract a quality workforce?

Recruitment methods
External recruitment
candidates are sought from outside the hiring organization

Internal recruitment
candidates are sought from within the organization

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Study Question 2: How do organizations attract a quality workforce?

Selection
Choosing from a pool of applicants the person or persons who offer the greatest performance potential

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Study Question 2: How do organizations attract a quality workforce?

Selection process
Screening applicant information

Interview or site visit Employment testing

Preemployment checks
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Study Question 2: How do organizations attract a quality workforce?

Reliability means that a selection device gives consistent results time after time Validity means that there is a clear relationship between what the selection device measures and job performance

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Study Question 3: How do organizations attract a quality workforce?

Interviews
Unstructured interviews do not follow a formal and pre-established of questions Behavioral interviews ask job applicants about past behaviors that relate to the job Situational interviews ask job applicants how they would react in specific situations

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Study Question 2: How do organizations attract a quality workforce?

Employment Tests
Used to further screen applicants by gathering additional job-relevant information Assessment centers examine how job candidates handle simulated work situations Work sampling involves observing applicants performing actual work tasks
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Study Question 3: How do organizations develop a quality workforce?

Socialization
Process of influencing the expectations, behavior, and attitudes of a new employee in a way considered desirable by the organization

Orientation
Set of activities designed to familiarize new employees with their jobs, coworkers, and key aspects of the organization
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Study Question 3: How do organizations develop a quality workforce?

Training
Activities that provide the opportunity to acquire and improve job-related skills
On-the-job training
Job rotation Coaching Mentoring Modeling

Off-the-job training
Management development

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Study Question 3: How do organizations develop a quality workforce?

Performance management systems ensure that

Performance standards and objectives are set Performance results are assessed regularly Actions are taken to improve future performance potential

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Study Question 3: How do organizations develop a quality workforce?

Performance appraisal
Formally assessing someones work accomplishments and providing feedback Purposes of performance appraisal:
Evaluation lets people know where they stand relative to objectives and standards Development assists in training and continued personal development of people

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Study Question 3: How do organizations develop a quality workforce?

Graphic rating scales

A trait-based performance appraisal that includes checklists of traits or characteristics to evaluate performance Relatively quick and easy to use Questionable reliability and validity

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Study Question 3: How do organizations develop a quality workforce?

Behaviorally anchored rating scales (BARS)

A behavior-based performance appraisal that describes actual behaviors that exemplify various levels of performance achievement in a job More reliable and valid than graphic rating scales Helpful in training people to master important job skills

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Figure 12.4 Sample behaviorally anchored rating scale for performance appraisal

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Study Question 3: How do organizations develop a quality workforce?

Recency bias is the tendency for evaluators to focus on recent behaviors instead of behavior that occurred throughout the evaluation period

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Study Question 3: How do organizations develop a quality workforce?

Critical-incident techniques
Keeping a running log or inventory of effective and ineffective behaviors Documents success or failure patterns

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Study Question 3: How do organizations develop a quality workforce?

Results-based performance appraisals focus on accomplishments

Usually qualitative and objective Determining what to measure may be difficult May create ethical problems

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Study Question 3: How do organizations develop a quality workforce?

Multiperson comparisons
Formally compare one persons performance with that of one or more others Types of multiperson comparisons:
Rank ordering Paired comparisons

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Study Question 3: How do organizations develop a quality workforce?

360 feedback
Occurs when superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholders performance

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Study Question 4: How do organizations maintain a quality workforce?

Work-life balance
How people balance career demands with personal and family needs Progressive employers support a healthy worklife balance

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Study Question 4: How do organizations maintain a quality workforce?

Compensation and benefits

Base compensation
Salary or hourly wages

Flexible benefits
Employees can select a set of benefits within a certain amount

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Study Question 4: How do organizations maintain a quality workforce?

Pay for performance

Paying people for performance is consistent with:
Equity theory Expectancy theory

Merit pay
Awards a pay increase in proportion to individual performance contributions Provides performance contingent reinforcement

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Study Question 4: How do organizations maintain a quality workforce?

Bonus pay plans

One-time payments based on the accomplishment of specific performance targets or some extraordinary contribution

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Study Question 4: How do organizations maintain a quality workforce?

Profit-sharing plans
Some or all employees receive a proportion of net profits earned by the organization

Gain-sharing plans
Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity

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Study Question 4: How do organizations maintain a quality workforce?

Employee stock ownership plans

Employees purchase company stock directly through employer, sometimes at a discount

Stock options
Employees have the right to purchase company stock at a fixed price in the future as a performance incentive

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Study Question 4: How do organizations maintain a quality workforce?

Benefits
Non-monetary forms of compensation
Required
Social security Unemployment insurance Workers compensation

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Study Question 4: How do organizations maintain a quality workforce?

Flexible benefits
Allow employees to choose from a set of benefits

Family-friendly benefits
Help in balancing work and nonwork responsibilities

Employee assistance programs

Help employees deal with troublesome personal problems

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Study Question 4: How do organizations maintain a quality workforce?

Retention
Keeping well trained and productive employees

Turnover
management of promotions, transfers, terminations, layoffs, and retirements

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Study Question 4: How do organizations maintain a quality workforce?

Early retirement
Financial incentive offered to employees who retire early

Termination
Involuntary dismissal of an employee

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Study Question 4: How do organizations maintain a quality workforce?

Employment-at-will
Employees can be terminated at any time for any reason

Wrongful discharge
Workers have legal protection from discriminatory firings

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Study Question 4: How do organizations maintain a quality workforce?

Labor-management relations
Labor unions deal with employers on the workers behalf Collective bargaining
Process of negotiating, administering and interpreting a labor contract

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Study Question 4: How do organizations maintain a quality workforce?

Wages Other conditions of employment

Work hours

Grievances

Labor contracts may determine

Work rules

Hiring

Seniority 41

The traditional adversarial view of labor-management relations

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