Chapter 12 Building and Managing Human Resources

1. Chapter 12 Building and Managing Human Resources My favorite!

2. Explain why strategic human resource management can help an organization gain a competitive advantage • Describe the steps managers take to recruit and select organizational members • Discuss the training and development options that ensure organizational members can effectively perform their jobs • Explain why performance appraisal and feedback are such crucial activities, and list the choices managers must make in designing effective performance appraisal and feedback procedures. • Understand the role that labor relations play in the effective management of human resources. Learning Objectives

3. Human resource management (HRM): activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals • Strategic human resource management: the process by which managers design the components of an HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals. Strategic Human Resource Management

4. Recruitment and selection • Training and development • Performance appraisal and feedback • Pay and benefits • Labor relations Overview of the components of HRM

5. Equal employment opportunity (EEOC): the equal right of all citizens to the opportunity to obtain employment regardless of their gender, age, race, country of origin, religion, or disabilities. • Equal Pay Act, 1963 • Title VII of the Civil Rights Act, 1964 • Age Discrimination in Employment Act, 1967 • Pregnancy Discrimination Act, 1978 • Americans with Disabilities Act, 1990, etc. • Civil Rights Act, 1991: added to Title VII, punitive and compensatory damages for intentional discrimination • Family and Medical Leave Act, 1993: up to 12 weeks of unpaid leave The legal environment of HRM

6. Recruitment: activities that managers engage in to develop a pool of qualified candidates for open positions. • Selection: the process that managers use to determine the relative qualifications of job applicants and their potential for performing well in a particular job. • Human Resource Planning: activities that managers engage in to forecast their current and future needs for human resources • Demand forecasts: estimate the qualifications and numbers of employees an organization will need given its goals and strategies. • Supply forecasts: estimate the availability and qualifications of current employees now and in the future Outsource: to use outside suppliers and manufacturers to produce goods and services Offshoring: outsourcing to other countries Recruitment and Selection

7. Job Analysis: identifying the tasks, duties, and responsibilities that make up a job and the knowledge, skills, and abilities needed to perform the job • External recruiting: when managers recruit external to fill open positions • Internal recruiting: recruiting is internal, managers turn to existing employees to fill open positions • Lateral moves: a job change that entails no major changes in responsibility Recruitment and Selection

8. Selection process: after developing a pool for open positions through recruitment process, they need to find out whether each applicant is qualified for the position and likely to be good performer. • Background information: degree, criminal, and not the internet • References: call off the list • Paper and pencil tests: personality • Physical ability tests • Performance tasks: can you type or do you know the law • Interviews • Reliability: the degree to which a tool or test measures the same thing each time it is used • Validity: the degree to which a tool or test measures what it purports to measure…Assessment Center information Recruitment and Selection

9. Training: teaching organizational members how to perform their current jobs and helping them acquire the knowledge and skills they need to be effective performers • Development: building the knowledge and skills of organizational members so they are prepared to take on new responsibilities and challenges • Needs assessment: an assessment of which employees need training or development and what type of skills or knowledge they need to acquire • On the job training: training that takes place in the work setting as employees perform their job tasks Training and Development

10. Types of Development: • Varied work experiences: managers need to develop understanding of and expertise in a variety of functions, products, services, and markets to broaden employee’s horizons and think the big picture. • Formal education: get that MBA • Transfer and training and development: can you apply your education and training to the actual work situation Training and Development

11. Performance appraisal: the evaluation of employees’ job performance and contributions to their organization Performance and appraisal and feedback

12. Types of performance appraisals • Trait appraisals: used when managers assess subordinates on personal characteristics that are relevant to job performance, such as skills, abilities, or personality. Can you use a computer or are you kind to people • Behavior appraisals: assess what workers do to see when how workers perform their jobs is important (Process) • Results appraisals: what they accomplish on the job, sales • Objective appraisal: an appraisal that is based on facts and is likely to be numerical • Subjective appraisal: an appraisal that is based on perceptions of traits, behaviors, or results Performance and appraisal and feedback

13. Who appraises Performance? • Self, peers, subordinates, supervisors, and clients • 360 Degree Performance Appraisals: a performance appraisal by peers, subordinates, superiors, and sometimes clients who are in a position to evaluate a manager’s performance Performance and appraisal and feedback

14. Effective performance feedback • Formal appraisal: an appraisal conducted at a set time during the year and based on performance dimensions and measures that were specified in advance. • Informal appraisal: an unscheduled appraisal of ongoing progress and areas for improvement • Appraisals: be specific and focus on behaviors or outcomes that are correctable and within a worker’s ability to improve, approach performance appraisal as an exercise in problem solving and solution finding, not criticizing, express confidence in a subordinate’s ability to improve • Provide performance feedback both formally and informally • Praise instances of high performance and areas of a job in which a worker excels • Avoid personal criticisms and treat subordinates with respect, and agree to a timetable for performance improvements. Performance and appraisal and feedback

15. Pay level: the relative position of an organization’s pay incentives in comparison with those of other organizations in the same industry employing similar kinds of workers. • Pay structures: the arrangement of jobs into categories reflecting their relative importance to the organization and its goals, levels of skill required, ad other characteristics • Benefits: legally must provide worker’s compensation, SS, and unemployment insurance..2014, if you have more than 50 employees, you will be fined if you don’t provide insurance. • Cafeteria style benefit plan: a plan from which employees can choose the benefits they want Pay and Benefits

16. Labor relations: the activities managers engage in to ensure that they have effective working relationships with the labor unions that represent their employees’ interests. • Union: exist to represent workers’ interests in organizations • Collective bargaining: negotiations between labor unions and managers to resolve conflicts and disputes about issues such as working hours, wages, benefits, working conditions, and job security Labor Relations