Human Resource Management

Human Resource Management Chapter 12

The Strategic Role of Human Resource Management • Human Resource management has shed its old personnel image and gained recognition as a vital player in corporate strategy • HRM departments not only support the organization’s strategic objective but actively pursue an ongoing, integrated plan for furthering the organization’s performance • Higher employee productivity • Stronger financial results • Achieve organization’s strategic goals • Key players on management team Manager’s Challenge: UPS Buffalo, New York

What is Human Resource Management? • Application of __________in an organization to ensure effective and efficient use of __________ to accomplish goals • Activities taken to _____, ______ and ______effective workforce

3 Elements of Human Resource Management __________ process, integrating the organization’s goals with employees’ needs All managers are resource managers Employees are viewed as _________ How a company manages its workforce may be the single most important factor in sustained competitive success

Current Strategic Issues Determine a company’s need for skills and employees • Becoming more competitive globally • Improving quality, productivity, & customer service • Managing mergers & acquisitions • Applying new information technology for e-business Experiential Exercise: Do You Want to be an HR Manager?

_____an Effective Workforce HRM planning Job analysis Forecasting Recruiting Selecting ________ an Effective Workforce _______ an Effective Workforce Wage and salary Benefits Labor relations Terminations Training Development Appraisal Human Resource Management Goals HRM Environment Legislation Trends in society International events Changing technology Company Strategy

Environmental Influences on HRM: Competitive Strategy • Building __________ Capital • the economic value of the knowledge, experience, skills, and capabilities of employees • HRM develops strategies for ensuring a workforce with superior knowledge and skills • Includes recruiting best talents, enhancing their skills and knowledge with training programs and opportunities for personal and professional development • Providing compensation and benefits that enhance sharing of knowledge and appropriately reward people for their contributions • __________ Capital • Refers to the quality of interactions among employees and whether they share common perspectives • High level of social capital – relationships are based on honesty, trust, and respect – people cooperate to achieve shared goals

Environmental Influences on HRM: Globalization • ___________________ (_____) – addresses the complexity that results from recruiting, selecting, developing and maintaining a diverse workforce on a global scale • Need a high level of cultural sensitivity and the ability to tailor and communicate policies and practices for different cultures • What works in one country may not translate well to another

Environmental Influences on HRM: Information Technology • HRM function becoming computerized: recruiting, training and retention • Human resource information system – integrated computer system designed to provide data and information used in HR planning and decision-making

Environmental Influences on HRM: Federal Legislation • ____________________ – to stop discriminatory practices that are unfair to specific groups • E.g. balance pay, EEO regardless of gender, religion, race, and national origin. • Fair treatment for employees of all ages and disabled • Affirmation action – requires employer to take positive steps to guarantee EEO

The Changing Nature of Careers: The Changing Social Contract New Contract Old Contract Employee Employability, personal responsibility Partner in business improvement Learning Employment insecurity Job security – lifetime employment cogs in machines – routine functions Traditional compensation package Standard training program Routine jobs Limited information Employer Continuous learning, lateral careermovement, incentive compensationCreative development opportunitiesChallenging assignmentsInformation and resources 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.

The Changing Nature of Careers:HR Issues in the New Workplace • Teams and Projects • Temporary Employees • Technology • Work-Life Balance • Downsizing

HR Issues in the New Workplace 1. Teams and Projects 1. 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 • Workers act as their own managers – responsible for quality standards, scheduling, etc. • 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.

HR Issues in the New Workplace 2. Temporary Employees • Temporary Employees do everything from data entry to interim CEO • ____________ = people who work for an organization, but not on a permanent or full-time basis, including temporary placements, contracted professionals, or leased employees

HR Issues in the New Workplace 3. Technology • Telecommuting and virtual teams are related trends • __________ = using computers and telecommunications equipment to perform work from home or another remote location – away from the office • Work anywhere - wireless Internet devices, laptops, cell phones, fax machines • Extreme telecommuting = people live and work in countries far away from the organization’s physical location

HR Issues in the New Workplace 4. Work-Life Balance Many European companies ahead of U.S.companies • __________ is one way organizations help employees lead more balanced lives • __________important in today’s workplace – flexible hours • _______________ initiatives – critical retention strategy – on-site gym & childcare, paid leaves & sabbaticals

HR Issues in the New Workplace 5. 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

HR Issues in the New Workplace • HR issues present many challenges for organizations and HR managers as they work toward the three primary HR goals • __________ • __________ • __________ an effective workforce

Basic Building Blocks of HR Management • ____________ : systematic process of gathering and interpreting information about the essential duties, tasks, job responsibilities, and the job context • ____________ : a clear and concise summary of the specific tasks, duties and responsibilities • ____________ : knowledge, skills, education, physical abilities and other characteristics needed to adequately perform the job.

Selecting • ____________= process of determining the skills, abilities, and other attributes a person needs to perform a particular job • Employers assess applicants’ characteristics in an attempt to determine the “fit” between job and applicant characteristics • Most frequently used – application form, interview, employment test, and assessment center – may use a combination to obtain valid prediction • ____________ = relationship between an applicant’s score on a selection device and his or her future job performance

Selecting • ____________ • 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 • ____________ • two-way communication channel that allows both the organization and the applicant to collect information that is hard to obtain • Not a valid predictor of job performance • Panel interviews – candidates meet several interviewers who take turns asking questions to increase interview validity

Interviewing 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

Inappropriate or Illegal Questions Employment Applications and Interviews • Race-related questions • Age • Religion • Gender • National origin • Marital/family status

Testing and Assessment • ____________ = written or computer-based test designed to measure a particular attribute such as intelligence, aptitude or personality (IQ/EQ) • ____________ = technique for selecting individuals with high managerial potential based on their performances on a series of simulated managerial tasks • ____________ : applicant play the role of manager responding to a number of memos in his/her in-basket • Panel assess applicant’s interpersonal, communication and problem-solving skills

Developing an Effective Workforce Following selection, next goal of HRM is to develop employees • _____________________ = planned effort to facilitate employees’ learning of job-related skills and behaviors $100 billion/year • ________________ : an experienced employee “adopts” a new employee to teach him or her how to perform job duties • ____________ : places employees in a new position for as short as a few hours or for as long as a year to develop new skills and give organization flexibility • ____________ : more experienced employee is paired with a newcomer/ less-experienced worker to provide guidance, support, and learning opportunity

Training and development • ____________ Training: introduces newcomers to organization culture, standards and goals • __________ Training: includes lectures, films and simulation • ____________ Training: books, manuals, computers • ____________ Training: computer assisted instruction. • ______________ : in-house training and education facility that offers broad-based learning opportunities for employees and also for outsiders • ______________ : Provides challenging assignments and new responsibilities – helps employee grow. Retain valuable employees

Performance 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 Force • The accurate assessment of performance through the development and application of assessment systems such as a rating scale - multidimensional • Training managers to effectively use the performance appraisal interview to provide feedback that reinforces good performance and motivate employee development

Assessing Performance Accurately • ______________________ • Multiple raters: supervisors, co-workers, customers, as well as the worker. • ______________________ • Stereotyping: rater places an employee into a class/category based on one or a few traits/characteristics • Halo effect: employee receives the same rating on all dimensions regardless of his/her performance on individual ones • ______________________ ____ : A rating technique that relates an employee’s performance to specific job-related incidents

Behaviorally Anchored Rating Scale Job: Production Line Supervisor - Work Dimension: Work Scheduling Develop a comprehensive schedule, observe target dates, and update the status of operations relative to plans, making schedule modifications as quickly as necessary Make a list of due dates and revise them but are frequently surprised by unforeseen events Have no plan or schedule of work and no concept of realistic due dates 1 2 3 4 5 Have a sound plan but neglect to keep trace of target dates or to report schedule slippages or other problems as they occur Usually satisfy time constraints, with time and cost overruns coming up infrequently Sources: Based on J.P. Campbell, M.D. Dunnette, R.D. Arvey, and L.V. Hellervik, “The Development and Evaluation of behaviorally Based Rating Scales,”Journal of Applied Psychology 57 (1973), 25-22; and Francine Alexander, ‘performance Appraisals,” Small Business Reports (March 2989), 20-29.

Maintaining an Effective Workforce A. ___________________ (all monetary payments): Helps to attract and retain talented workers • _____________________ • Job-based pay: links compensation to specific tasks that an employee performs • Skilled-based pay: encourage employees to develop skills and competencies • ______________________ • Managers wish to maintain a sense of fairness and equity within the pay structure – maintain employee morale • Job evaluation: a process of determining the worth of jobs within the organization • Wage and salary surveys: show what other organizations pay in jobs that match selected key jobs

Maintaining an Effective Workforce ______________________ties compensation to employee effort and performance • Incentives are aligned with the behaviors needed to help the organization achieve its strategic goals B. ______________________ • Required by law: social security (KWSP), SOCSO • Health • Cafeteria-plan benefit package

Maintaining an Effective Workforce C. _________________ • Valuable in maintaining effective workforce • Employees who are poor performers can be dismissed/downsizing • ___________________ : conducted with departing employees to determine why they are leaving • Companies try to find smooth transition for departing employees: employment center, workshop to enhance job hunting, advertising – promotes positive corporate culture

Human Resource Management