Human Resource Management

1. Human Resource Management Organizational Effectiveness

2. Parallels the protection and treatment of workers Social Welfare Department 1880 – 1935 Helping injured workers and their families Company unions: parties and social events Worker health Labor Relations Department 1935 – 1950 Collective bargaining Contract administration Industrial Relations Department 1950 – 1970 Labor relations Benefits and vacations Testing and selection Compensation systems Personnel Department 1970 – 1990 Legal compliance Staffing Performance evaluation Compensation and benefits Employee relations Safety and health Human Resource Management Development of Human Resource Management

3. Staffing Model Strategic Business Planning Human Resource Planning Long-range planning Strategic Planning Environmental Scanning Human Resource Planning Middle-range planning Operational Planning Forecasting Short-range planning Goals and Objectives Projected Staffing Requirements Recruitment Planning Recruitment Applicant Search Preliminary Screening Selection Selection Decision Placement

4. Forecasting Employment Needs • Budgeting • Work-load Analysis • Unit Demand • Expert Opinion • Trend Predictions

5. Example of Predicting Labor Supply and Required New Hires for a Hotel Chain

6. Typical Steps in the Selection Process Placement on the job Selection decision Final interview Drug testing Reference checks Employment testing Interviews Application blanks Preliminary screening Reject applicant

7. Information that Generally Should Not Be Used in Employment Decisions • Height and weight • Marital Status/Number of Children/Child care • Educational level • English language skill • Names of friends or relatives working for the employer • Arrest records • Conviction records • Discharge from military service • Citizenship • Economic Status • Availability to work weekends/holidays Employers must show that there is a “business necessity” to use these criteria. For example, an employer would probably be able to discriminate in hiring a teller who had been convicted of embezzling.

8. 3D Model of an Organization Source: E.H. Schein, “The Individual, the Organization, and the Career: A Conceptual Scheme,” Journal of Applied Behavioral Science (1971): 401-426.)

9. Methods of Socialization

10. Professional Career Stages:Central Activities, Relationships, and Psychological Issues in the Four Career Stages

11. A Systems Model for Training Assessment Phase Assess training needs and resources Identify training objectives Training and Development Phase Develop criteria Pretest trainees Select training methods and learning principles Evaluation Phase Conduct training Monitor training Compare training outcomes against criteria Feedback

12. Solving Performance Problems • Describe the situation • Diagnose whether it’s an ability or motivation problem • Use joint problem solving to come up with solutions to the problem • Communicate consequences for the problem • Handle emergent problems (but don’t get deflected from the core problem) • Decide who will do what by when and follow up

13. Progressive Discipline • Verbal Warning • Verbal Reprimand • Written Reprimand • Suspension • Discharge

14. Solving the ‘Surplus Personnel’ Problem • Layoffs • Attrition • Reduced Hours/Job Sharing • Unpaid Vacations • Early Retirements

15. High Performance Work Practices – Financial Performance Sample: 968 U.S. firms with 100 or more employees Financial Data: 10-K reports with the SEC High Performance Work Practices: What proportion of the workforce participates in: • Formal information sharing program • Formal job analysis • Hiring from within • Employee attitude surveys • Quality of Work Life Programs • Company incentive, profit-sharing, or gain-sharing plans • Formal grievance and complaint procedures • Pre-employment testing • Performance appraisals are used to determine promotion • Formal performance appraisals • Promotion by seniority or performance • Selection ratio for hiring • What is the average number of hours of training received per employee per year?

16. High Performance Work Practices - Results A one standard deviation increase in high performance work practices is associated with: • 7.05% decrease in turnover • $27,044 increase in sales annually per employee • $18,641 increase in market value annually per employee • $3,814 increase in profits annually per employee Source: Mark A. Huselid, “The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance.” Academy of Management Journal, vol 38 (1995): 635-672