human resource management
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Human Resource ManagementHuman Resource Management
CHAPTER 12CHAPTER 12
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Learning ObjectivesLearning Objectives
Explain the role of human resource management in organizational strategic planning.
Describe federal legislation and societal trends that influence human resource management.
Explain what the changing social contract between organizations and employees means for workers and human resource managers.
Show how organizations determine their future staffing needs through human resource planning.
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Learning Objectives (contd.)Learning Objectives (contd.)
Describe the tools managers use to recruit and select employees.
Describe how organizations develop an effective workforce through training and performance appraisal.
Explain how organizations maintain a workforce through the administration of wages and salaries, benefits, and terminations.
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The Strategic Role of Human Resource Management
The Strategic Role of Human Resource Management
All managersare resource
managers
Employees areviewed as
assets
Matching process,integrating theorganization’sgoals withemployees’ needs
How a company manages its workforce may be single more important factor in sustained competitive success
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Current Strategic IssuesCurrent Strategic Issues
Becoming more competitive globally
Improving quality, productivity, & customer service
Managing mergers & acquisitions
Applying new information technology for e-business
Determine a company’s need for skills and employees
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Strategic Human Resource Management GoalsStrategic Human Resource Management Goals
Develop an Effective Workforce
TrainingDevelopmentAppraisal
Maintain an Effective Workforce
Wage and salaryBenefitsLabor relationsTerminations
HRM planningJob analysisForecastingRecruitingSelecting
Attract an Effective Workforce
Company StrategyHRM EnvironmentLegislationTrends in societyInternational eventsChanging technology
Exhibit 12.1
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Environmental Influences on HRMEnvironmental Influences on HRM
Competitive Strategy
– Building Human Capital
– Globalization
– Information Technology
Federal Legislation
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GlobalizationGlobalization
IHRM = addresses the complexity that results from recruiting, selecting, developing, and maintaining a diverse workforce on a global scale
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Information TechnologyInformation Technology
Human resource information technology = an integrated computer system designed to provide data and information used in HR planning and decision making
Traditional HR to e-HR significantly affected every area of human resource management
Some organizations are close to a paperless HRM system – saves time, money, frees staff
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Federal LegislationFederal Legislation
Discrimination = hiring or promoting of applicants based on criteria that are not job relevant
Affirmative action = policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups
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Major Federal Laws - HRMMajor Federal Laws - HRM
Equal Opportunity/Discrimination Laws
Compensation/Benefits Laws
Health/Safety Laws
Exhibit 12.3
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The Changing Social ContractThe Changing Social Contract
New Contract Old Contract
Employee
Employer
Employability, personal responsibility Partner in business improvement Learning
Job security A cog in the machine Knowing
Continuous learning, lateral careermovement, incentive compensationCreative development opportunitiesChallenging assignmentsInformation and resources
Traditional compensation package
Standard training program Routine jobs Limited information
SOURCE: Based on Louisa Wah, “The New Workplace Paradox “ Management Review, January 1998,7; and Douglas T. Hall and Jonathan B. Moss, “The New Protean Career Contract: Helping Organizations and Employees Adapt,” Organizational Dynamics, winter 1998, 22-37.
Exhibit 12.4
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HR Issues in the New WorkplaceHR Issues in the New Workplace
Employer of choice
Teams and Projects
Temporary Employees
Technology
Work-Life Balance
Downsizing
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HR Issues in the New Workplace
HR Issues in the New Workplace
An employer of choice is a company that is highly attractive to potential employees because its human resource practices focus on both– Tangible benefits and
– Intangible benefits
Employer of Choice
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HR Issues in the New Workplace
HR Issues in the New Workplace
Teams and Projects – major trend in today’s workplace With emphasis on projects, distinctions between job
categories and descriptions are collapsing Many of today’s workers straddle functional &
departmental boundaries; handle multiple tasks/responsibilities
Virtual team = made up of members who
– are geographically or organizationally dispersed,
– rarely meet face to face, and
– do their work using advance information technologies.
Teams and Projects
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HR Issues in the New Workplace
HR Issues in the New Workplace
In opening years of the 21st century, largest employer in U.S. was a temporary employment agency, Manpower, Inc.
Temporary Employees do everything from data entry to interim CEO
Contingent workers = people who work for an organization, but not on a permanent or full-time basis, including temporary placements, contracted professionals, or leased employees
Temporary Employees
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HR Issues in the New Workplace
HR Issues in the New Workplace
Telecommuting and virtual teams are related trends
Telecommuting = using computers and telecommunications equipment to perform work from home or another remote location
Work anywhere - wireless Internet devices, laptops, cell phones, fax machines
Extreme telecommuting = people live nd work in countries far away from the organization’s physical location
Technology
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HR Issues in the New Workplace
HR Issues in the New Workplace
Telecommuting is one way organizations help employees lead more balanced lives
Flexible scheduling important in today’s workplace – 27% of workforce/flexible hours
Broad Work-Life Balance initiatives – critical retention strategy – on-site gym & childcare, paid leaves & sabbaticals
Work-Life Balance
Many European companies ahead of U.S. companies
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HR Issues in the New Workplace
HR Issues in the New Workplace
Downsizing = intentional, planned reduction in the size of a company’s workforce
Managers can smooth the downsizing process– Regularly communicating with employees
– Providing them with as much information as possible
– Providing assistance to workers who will lose their jobs
– Using training and development for remaining employees
Downsizing
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HR Issues in Attracting an Effective Workforce
HR Issues in Attracting an Effective Workforce
HR issues present many challenges for organizations and HR managers as they work toward the three primary HR goals
● Attracting● Developing● Maintaining an effective workforce
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Matching ModelMatching Model
An employee selection approach in which the
organization and the applicant attempt to match each
other’s needs, interests, and values
Attracting an Effective Workforce
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Attracting an Effective WorkforceAttracting an Effective Workforce
Choose RecruitingSourcesWant adsHeadhuntersInternet
Choose RecruitingSourcesWant adsHeadhuntersInternet
HR PlanningRetirementsGrowthResignations
Select theCandidateApplicationInterviewTests
Welcome NewEmployee
Employee ContributionsAbilityEducationCreativityCommitmentExpertise
Company InducementsPay and benefitsMeaningful workAdvancementTrainingChallenge
Matching Model
Match with
Company NeedsStrategic goalsCurrent & future competenciesMarket changesEmployee turnoverCorporate culture
Employee NeedsStage of careerPersonal valuesPromotion aspirationsOutside interestsFamily concerns
Match with
Exhibit 12.5
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Human Resource PlanningHuman Resource Planning
Forecasting of human resource needs and the projected matching of individuals with expected vacancies
● ? = New technologies emerging
● ? = Volume of business likely next 5-10 years
● ? = Turnover rate, how much is avoidable, if any
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RecruitingRecruiting
Recruiting = activities or practices that define the desired characteristics of applicants for specific jobs
● Internal – promote-from-within policies used by many to fill high-level positions
● External = recruiting newcomers from outside has advantage of multiple sources
● E-cruiting = use of Internet - fastest-growing approach to recruiting
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Basic Building Blocks of HR Management
Basic Building Blocks of HR Management
Job Analysis
Job Description
Job Specification
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SelectingSelecting
Selection = process of determining the skills, abilities, and other attributes a person needs to perform a particular job
Validity = relationship between an applicant’s score on a selection device and his or her future job performance
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Selecting (contd.)Selecting (contd.)
Application form - device used for collecting information about an applicant’s education, previous job experience, and other background characteristics
Research = biographical information inventories can validly predict future job success
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Interviewing An ApplicantInterviewing An Applicant
Know what you want
Prepare a road map
Use open-ended questions
Do not ask irrelevant questions
Do not rush interview
Do not rely on your memory
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Reasons For Not Asking About Home OwnershipReasons For Not Asking About Home Ownership
● Might adversely affect applicants chances at the job
● Minorities and women may be less likely to own a home
● Home ownership is probably unrelated to job performance
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Interview as Predictor of SuccessInterview as Predictor of Success
Interview is not generally a valid predictor of job performance – has high face validity as a selection tool
Panel interviews – candidate meets with several interviewers who take turns asking questions – increases interview validity
Computer-based interviews - complement traditional interviewing information
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Inappropriate or Illegal QuestionsInappropriate or Illegal Questions
Race-related questions Age Religion Gender National origin Marital/family status
Employment Applications and Interviews
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Testing and AssessmentTesting and Assessment
Employment Test = written or computer-based test designed to measure a particular attribute such as intelligence or aptitude
Assessment Center = technique for selecting individuals with high managerial potential based on their performances on a series of simulated managerial tasks
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Developing an Effective WorkforceDeveloping an Effective Workforce
Training and development = planned effort to facilitate employees’ learning of job-related skills and behaviors $ 51.1 billion spent in 2005 On-the-job training = an experienced
employee “adopts” a new employee to teach him or her how to perform job duties
Cross training
Mentoring
Following selection, next goal of HRM is to develop employees
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Performance AppraisalPerformance Appraisal
Process of observing and evaluating an employee’s performance, recording the assessment, and providing feedback to the employee
Steps● Observing and assessing performance● Recording the assessment● Providing feedback to employee
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Making Performance Appraisals A Positive ForceMaking Performance Appraisals A Positive Force
1. The accurate assessment of performance through the development and application of assessment systems such as a rating scale
2. Training managers to effectively use the performance appraisal interview to provide feedback that reinforces good performance and motivate employee development
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Assessing Performance AccuratelyAssessing Performance Accurately
360° Feedback Process
Performance Evaluation Errors– Stereotyping– Halo effect– BARS – Behaviorally-anchored rating scale
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Maintaining an Effective WorkforceMaintaining an Effective Workforce
Compensation
– Wage and Salary Systems
– Compensation Equity
– Pay for Performance
Benefits
Termination
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TerminationTermination
Employees who are poor performers can be dismissed Employers can use exit interviews in a positive manner
Value of termination for maintaining an effective workforce is two fold