Chapter Thirteen

Human Resource Management (HRM) Systems • Human resources – all the people that a business employees • Human resource management • the set of activities designed to recruit high-quality employees and then improve their skills and capabilities

The Five Components of the HRM System Figure 13.1

Recruitment and Selection • Recruitment - the process of identifying and attracting a pool of qualified applicants • Selection – involves creating the set of criteria that determines which job applicants are the best match for a particular job

External and Internal Recruitment • Internal recruitment • a policy of promoting employees who already work for a company • External recruitment • a policy of filling advanced job positions with applicants from outside the company

The Selection Process Step 1: Screening applications and résumés Step 2: Applicant testing and reference checks Step 3: The interview process Step 4: Making the final selection Sample interview questions

The Four Steps in the Selection Process Figure 13.3

The Interview Process • Structured interview • all applicants are asked a series of standard questions • Nondirective interviews • questions are open ended to give applicants ample opportunity to reveal skills, abilities, strengths, and weaknesses

Types of Standardized Tests Figure 13.4

Training and Development • Training and Development • the process through which companies increase their employees’ work skills and knowledge to improve their job performance

Training-Needs Analysis • Training-needs analysis • a method of identifying the kinds of employee training that will result in the greatest performance gains • Training gap • a specific type training an employee needs to acquire

Training-Needs Analysis Figure 13.5

Types and Methods of Training and Development • On-the-job training • training employees receive in the course of doing their jobs

Methods of Training and Development Figure 13.6

The Components of a Human Resource Management System • Performance appraisal • the task of accurately identifying differences in the level and quality of work employees do and providing them with feedback that increases their performance levels

Performance Appraisal and Feedback • Performance appraisal • the process of evaluating the contributions an employee has made toward a company’s functional and corporate-wide goals • Performance feedback • the communication of performance appraisal information to employees to influence their future performance levels

Performance Appraisal Methods Managers can evaluate: • Results or outcomes of an employee’s activities • Specific employee actions or behaviors that produced those outcomes

Who Appraises Performance? Figure 13.7

Who Appraises Performance? • 360-degree performance appraisal • the process of using multiple sources of information to appraise an employee’s performance

Giving Performance Feedback • Formal appraisals • appraisals conducted on a regular basis to provide employees with ongoing performance feedback • Informal appraisals • appraisals that take place as managers and subordinates meet from time to time to discuss important work issues

Pay and Benefits • Pay • the monetary rewards, such as wages, bonuses, and salaries, associated with a particular job • Benefits • the monetary rewards, such as paid health care, life insurance, sick and vacation pay, and pensions, employees receive because they are a member of a company

Pay and Benefits • Pay structure • the relative pay and benefits received by employees doing different types of jobs or jobs at different levels in a company’s hierarchy • Pay level • the average salary a company chooses to pay its employees compared to other companies in its industry

Types of Incentive Pay • Incentive pay • the extra rewards employees receive when they achieve specific work goals

Individual Incentive Plans • Piecework plans • pay plans that link the pay employees receive to the number of units of a product an employee makes • Commission systems • pay plans that link the pay employees receive to the amount of revenue they earn by selling a company’s products

Individual Incentive Plans • Merit pay • a pay system that links superior performance directly to higher permanent rewards, such as a certain percentage increase in salary • Bonus pay • a one-time reward employees receive for accomplishing a specific goal

Group and Companywide Reward Systems • Profit sharing plans • pay plans that reward employees on the basis of the profit a company earns in a particular period • Employee stock ownership plan • a plan that allows employees to buy a company’s shares at below-market prices

Group and Companywide Reward Systems • Organization bonus systems • the one-time rewards employees receive if a company achieves cost savings, quality increases, and so on, in a specified time period

The Components of a Human Resource Management System • Labor relations • the process of working with employees, or the unions that represent them, to create work rules and a negotiation process to resolve disputes between them

Labor Relations • Labor relations • the process of establishing rules and practices between a company and its employees that specify how human resources should be employed and rewarded

Labor Relations • Trade unions • organizations that represent the interests of employees who hold similar types of jobs in a particular industry

Competition and Cooperation among Stakeholders Figure 13.8

Union-Management Relations • Industrial conflict • the clash that occurs when workers and unions attempt to obtain a greater share of a company’s profits at the expense of other stakeholders • Working-to-rule • when workers perform their jobs exactly as specified in their employment contracts but do no more

Union-Management Relations • Lockout • when managers decide to shut down a company’s operations until workers are willing to accept the employment conditions being offered to them • Strike • a situation that arises when workers refuse to do their jobs in an attempt to bring the work process to a halt

Collective Bargaining: Resolving the Conflict • Collective bargaining • the process through which union representatives and managers negotiate a binding labor agreement over work-related issues, such as pay, benefits, and grievance procedures

Collective Bargaining: Resolving the Conflict • Integrative bargaining solution • a “win-win” solution that allows both parties to benefit from the labor contract agreed upon • Attitudinal structuring • the attempt by negotiators on each side to influence each other’s attitudes during the bargaining process

Collective Bargaining: Resolving the Conflict • Grievance procedures • labor-contract rules used to resolve labor disputes between companies and their employees

Collective Bargaining: Resolving the Conflict • Mediation • a conflict resolution method that involves the use of a neutral third party, or mediator, to help labor and management resolve their differences and reach an agreement

Collective Bargaining: Resolving the Conflict • Arbitration • a conflict resolution method that involves the use of a third party to negotiate and impose a binding agreement on labor and management

Human Resource Planning • Human resource planning • the process of forecasting the type and number of employees a company will require in the future to meet the objectives of its business model

Human Resource Planning • Job analysis • the process of obtaining detailed information about the tasks and responsibilities involved in each job in a company

Human Resource Planning • Job description • a list of the specific tasks, duties, and responsibilities that make up a particular job • Job specifications • a written list of the required skills, abilities, and knowledge needed to do a particular job

Technical Sales Representative Figure 13.2

Chapter Thirteen