Chapter 9

1. Chapter 9 Staffing and Human Resource Management

2. Human Resource Management and Business Strategy • Modern HR professional helps firm attain business strategy. • HRM strives to maximize human capital so workers achieve organizational goals. • HR helps build high-performance work practices. • HR practices should lead to sustainable competitive advantage.

3. Components of Staffing Contribute to Retention • Awareness of legal aspects • Strategic human resource planning • Recruitment • Selection • Orientation, training, and development • Performance evaluation • Compensation

4. Legal Aspects of Staffing • Federal, state, and local laws cover all aspects of staffing. Key federal laws: • Title VII of Civil Rights Act of 1964 • Equal Pay Act of 1963 • Age Discrimination in Employment Act of 1967 • American with Disabilities Act of 1990 • Civil Rights Act of 1991

5. Strategic Human Resource Planning Strategic human resource planning includes planning related to: • Future needs • Future turnover • Recruitment, selection, and layoffs • Training and development

6. Recruiting Sources • Present employees • Referrals by present and ex-employees • External sources other than online • Online sources, such as Monster and Career Builder, and company Websites • The two major sources are now referrals and the Internet

7. Steps in the Model for Selection Applicant is Recruited Preliminary Screening Interview Completion of Application Form Psychological Testing Physical Examination Reference Checking Job Interview

8. The Job Interview • Dual purpose is (a) to size up candidate, and (b) for candidate to size up the company. • Realistic job preview reveals all the negatives in the job. • Behavioral interviewing asks about relevant job behaviors. • Job simulations give work samples to candidates

9. Employee Training and Development • Employee orientation program helps explain the company and culture. • Training focuses on job skills. • E-learning is usually Web-based. • Development enhances knowledge and complex, unstructured, skills. • Informal learning takes place in casual interactions including employee chats.

10. Performance Evaluation • Performance components are task, citizenship, and counter-productivity. • Forced rankings places workers in several “baskets,” such as Top 20%. • 360-degree feedback uses many inputs. • Workers can be measured on the basis of traits, behavior, and results. • Performance evaluation is controversial.

11. Types of Pay • Wages and salary are the most common form of pay. • Job evaluation determines job worth. • Variable pay looks at performance, and is intended to be motivational. • Stack-ranking bases pay on ranking within the group from top to bottom.

12. Employee Benefits • Benefits are any non-cash payment—typically about 35% of salary. • Benefits should ideally be linked to strategy. • Flexible benefits packages give employee a choice in selecting a combination of benefits. • Consumer-driven health plan give employee a large deductible. • Many companies have reduced benefits to stay competitive, including use of defined contribution plan [401(k)].

13. Labor Unions and HRM • Labor union influences HR practices. • Loss of union membership in manufacturing but gain in government. • Threat of global outsourcing and bankruptcy weakens union power. • American Rights to Work Group fosters partnering between unions and management (e.g., Harley-Davidson).