Strategic Human Resource Management and its Components

1. Chapter 12 Human Resource Management

2. Strategic Human Resource Management • 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. MGMT 321 – Chapter 12

3. Strategic Human Resource Management • Designing the components of a HRM system to be consistent with: • Each other • Other elements of organizational architecture • The organization’s strategy and goals • “Six Sigma” • Ensure that products and services are as free of errors or defects as possible through a variety of human resource-related initiatives MGMT 321 – Chapter 12

4. Components of a Human Resource Management System MGMT 321 – Chapter 12

5. The Legal Environment of HRM • Equal Employment Opportunity (EEO) • 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 Employment Opportunity Commission (EEOC) enforces employment laws. MGMT 321 – Chapter 12

6. The Legal Environment of HRM • Contemporary challenges for managers • How to eliminate sexual harassment • How to make accommodations for employees with disabilities • How to deal with employees who have substance abuse problems • How to manage HIV-positive employees and employees with AIDs MGMT 321 – Chapter 12

7. The Recruitment and Selection System MGMT 321 – Chapter 12

8. Human Resource Planning • Human Resource Planning (HRP) • Forecasting current and future human resourced needs. • Demand forecasts • Supply forecasts • Outsourcing • Loss of control over output • Unions are against outsourcing MGMT 321 – Chapter 12

9. Job Analysis • Job Analysis • Identifying the TDRs that make up a job and the KSAs needed to perform the job. • Should be done for each job • Methods • Observing what current workers do. • Having workers and manages fill out questionnaires MGMT 321 – Chapter 12

10. Recruitment • External Recruiting • Looking outside the organization to fill open positions • Internal Recruiting • Managers turn to existing employees to fill open positions • Realistic Job Preview • Providing an honest assessment of the advantages and disadvantages of a job MGMT 321 – Chapter 12

11. Selection Tools MGMT 321 – Chapter 12

12. Reliability and Validity • Selection tools must be BOTH reliable and valid • Reliability • The degree to which the tool measures the same thing each time it is used • Validity • The degree to which the test measures what it is supposed to measure MGMT 321 – Chapter 12

13. Training and Development • Training • Teaching organizational members how to perform their current jobs • Helping them to acquire the knowledge and skills they need to be effective performers • Development • Building the KSAs of organizational members to enable them to take on new responsibilities MGMT 321 – Chapter 12

14. Training and Development MGMT 321 – Chapter 12

15. Performance Appraisal and Feedback • Performance Appraisal • Evaluating employees’ job performance and contributions to the organization • Performance Feedback • Sharing performance appraisal information with subordinates and planning for the future MGMT 321 – Chapter 12

16. Types of Performance Appraisal • Trait • Personal characteristics that are relevant to job performance • Behavior • The actual actions and behaviors exhibited on the job. • Results appraisals • Actual outcomes of work behaviors • Objective and Subjective appraisals MGMT 321 – Chapter 12

17. Who Appraises Performance? MGMT 321 – Chapter 12

18. Effective Feedback Tips • Be specific • Focus on correctable behaviors or outcomes • Utilize a problem solving approach • Express confidence in a subordinate’s ability to improve. • Provide feedback both formally and informally • Praise instances of high performance • Avoid personal criticisms • Agree to a timetable for improvements MGMT 321 – Chapter 12

19. Pay • Includes employees’ base salaries, pay raises, and bonuses • Determined by: • Characteristics of the organization and the job • Levels of performance • Pay level • The relative position of an organization’s incentives compared to similar firms MGMT 321 – Chapter 12

20. Pay • Pay Structure • The arrangement of jobs into categories based on their relative importance to the organization and its goals, level of skills, and other characteristics. MGMT 321 – Chapter 12

21. Benefits • Legally required • Social security • Workers’ compensation • Voluntary • Health insurance • Retirement • Cafeteria-style benefits plans • Allow employees to choose the best mix • Can be hard to manage MGMT 321 – Chapter 12

22. Labor Relations • Ensuring effective working relationships with the labor unions that represent their employees • Laws regulating areas of employment • Fair Labor Standards Act (1938) prohibits child labor, sets a minimum wage and maximum working hours. • Equal Pay Act (1963) • Work Place Safety (1970) OSHA mandates procedures for safe working conditions MGMT 321 – Chapter 12

23. Unions • Represent workers’ interests to management • The power that management has over individuals creates the need for unions • Collective bargaining • Negotiation between labor and management to resolve conflicts and disputes regarding: • Working hours and conditions • Wages and benefits • Job security MGMT 321 – Chapter 12