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Chapter 13

Chapter 13. Human Resource Management. Planning Ahead — Chapter 13 Study Questions. What is human resource management? How do organizations attract a quality workforce? How do organizations develop a quality workforce? How do organizations maintain a quality workforce?.

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Chapter 13

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  1. Chapter 13 Human Resource Management

  2. Planning Ahead — Chapter 13 Study Questions • What is human resource management? • How do organizations attract a quality workforce? • How do organizations develop a quality workforce? • How do organizations maintain a quality workforce?

  3. Chapter 13 Learning Dashboard • Human Resource Management • Human resource management process • Strategic human resource management • Legal environment of human resource management • Attracting a Quality Workforce • Human resource planning • Recruiting techniques • Selection techniques

  4. Chapter 13 Learning Dashboard • Developing a Quality Workforce • Orientation and socialization • Training and development • Performance management • Maintaining a Quality Workforce • Flexibility and work-life balance • Compensation and benefits • Retention and turnover • Labor-management relations

  5. Takeaway 1: Human resource management • Human capital is the economic value of people with job-relevant knowledge, abilities, ideas, energies, and commitments • Human Resource Management is a process of attracting, developing, and maintaining a talented work force

  6. Takeaway 1: Human resource management • Major human resource management responsibilities:

  7. Takeaway 1: Human resource management • Person-job fit • The individual’s skills, interests, and personal characteristics are consistent with the requirements of work • Person-organization fit • The individual’s values, interests, and behavior are consistent with the culture of the organization

  8. Takeaway 1: Human resource management • Strategic human resource management mobilizes human capital to implement organizational strategies • Indicator that HRM is truly strategic: When it is headed by a senior executive reporting directly to the chief executive officer.

  9. Takeaway 1: Human resource management • Equal employment opportunity • The right to employment without regard to race, color, national origin, religion, gender, age, or disability status • Title VII of the Civil Rights Act of 1964 • Equal Employment Opportunity Act of 1972 • Civil Rights Act (EEOA) of 1991

  10. Takeaway 1: Human resource management • Affirmative action • an effort to give preference in employment to women and minority group members, who have traditionally been underrepresented. • Bona fide occupational qualifications • employment criteria justified by capacity to perform a job

  11. Takeaway 1: Human resource management • Discrimination in employment • Occurs when someone is denied a job or job assignment for reasons that are not job relevant

  12. Figure 13.1 A sample of U.S. laws against employment discrimination

  13. Takeaway 1: Human resource management • Current legal issues in HRM • Sexual harassment • Equal pay and comparable worth • Legal status of independent contractors • Workplace privacy

  14. Takeaway 2: Attracting a Quality Workforce • Human resource planning analyzes an organization’s staffing needs and determines how to best fill them

  15. Figure 13.2 Steps in strategic human resource planning

  16. Takeaway 2: Attracting a Quality Workforce • The foundation of human resource planning is job analysis • the orderly study of job facets to determine what is done when, where, how, why, and by whom. • Job analysis provides information for developing: • Job descriptions • Job specifications

  17. Takeaway 2: Attracting 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

  18. Takeaway 2: Attracting a Quality Workforce

  19. Figure 13.3 Steps in the selection process: the case of a rejected job applicant Selection: Choosing individuals to hire from a pool of qualified job applicants

  20. Takeaway 2: Attracting 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

  21. Takeaway 2: Attracting 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

  22. Takeaway 2: Attracting 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

  23. Takeaway 2: Attracting a Quality Workforce • Employment Tests • Biodata methods collect biographical information that has been proven to correlate with good job performance

  24. Takeaway 3: Developing a Quality Workforce • Socialization • a process of learning and adapting to the organizational culture • Orientation • familiarizes new employees with jobs, coworkers, and organizational policies and services

  25. Takeaway 3: Developing a Quality Workforce • Training • Activities that provide the opportunity to acquire and improve job-related skills

  26. Takeaway 3: Developing 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

  27. Takeaway 3: Developing a Quality Workforce • Performance appraisal • Formally assessing someone’s 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

  28. Takeaway 3: Developing 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

  29. Takeaway 3: Developing 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

  30. Figure 13.4 Sample behaviorally anchored rating scale for performance appraisal

  31. Takeaway 3: Developing a Quality Workforce Recency bias is the tendency for evaluators to focus on recent behaviors instead of behavior that occurred throughout the evaluation period

  32. Takeaway 3: Developing a Quality Workforce • Critical-incident techniques • Keeping a running log or inventory of effective and ineffective behaviors • Documents success or failure patterns

  33. Takeaway 3: Developing 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

  34. Takeaway 3: Developing a Quality Workforce • Leniency error: • the tendency for supervisors to rate employees more favorably than they deserve in order to avoid the unpleasant task of giving negative feedback • Multiperson comparisons • Formally compare one person’s performance with that of one or more others • Types of multiperson comparisons: • Rank ordering • Forced distributions

  35. Takeaway 3: Developing a Quality Workforce 360° feedback • Occurs when superiors, subordinates, peers, and even internal and even customers are involved in the appraisal of a jobholder’s performance

  36. Takeaway 4: Maintaining a Quality Workforce • Work-life balance • How people balance career demands with personal and family needs • Progressive employers support a healthy work-life balance

  37. Takeaway 4: Maintaining a Quality Workforce Contemporary work-life balance issues: • Single parent concerns • Dual-career couples concerns • Family-friendliness as screening criterion used by candidates

  38. Takeaway 4: Maintaining a Quality Workforce • Compensation and benefits • Base compensation • Salary or hourly wages • Flexible benefits • Employees can select a set of benefits within a certain dollar amount

  39. Takeaway 4: Maintaining a Quality Workforce Merit pay • Awards a pay increase in proportion to individual performance contributions • Provides performance contingent reinforcement

  40. Takeaway 4: Maintaining a Quality Workforce • Bonus pay plans • One-time payments based on the accomplishment of specific performance targets or some extraordinary contribution • 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

  41. Takeaway 4: Maintaining 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

  42. Takeaway 4: Maintaining a Quality Workforce Benefits • Non-monetary forms of compensation • Required • Social security • Unemployment insurance • Worker’s compensation • Not required • Health insurance • Retirement plans • Paid time off

  43. Takeaway 4: Maintaining 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

  44. Takeaway 4: Maintaining a Quality Workforce • Early retirement • Financial incentive offered to employees who retire early • Termination • Involuntary dismissal of an employee • Employment-at-will • Employees can be terminated at any time for any reason • Wrongful discharge • Workers have legal protection from discriminatory firings

  45. Takeaway 4: Maintaining a Quality Workforce Labor-management relations • Labor unions deal with employers on the workers’ behalf • A labor contract is a formal agreement between a union and an employer about the terms of work for union members • Collective bargaining • Process of negotiating, administering and interpreting a labor contract

  46. Takeaway 4: Maintaining a Quality Workforce

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