mangt hrm chapter 10

8/8/2019 MangT HRM Chapter 10

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Some people talk intheir sleep, lecturers talk

while other people

sleep


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HRM

Activities undertaken to attract, develop and

maintain an effective workforce within an

Organization


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Human Resource Management

Management of the organizations

employees; consists of all the activities

required to enhance the effectivenessof an organizations workforce in

achieving organizational goals and

objectives.


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HRM

All managers are HRmanagers Manager pay attention to development & satisfaction

subordinates

Employees are viewed as assets Employees, not buildings & machinery give a

Co. a competitive advantage

HRM is a matching process integrating Org Goals with employees needs


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Strategic Goals ofHRM

Attract

Develop

Maintain an Effective Workforce

HR PlanningHRM Forecasting Tech

RecruitmentSelecting

T&D

Performance Appraisal

Wage & SalaryBenefits

Labor Relation

Termination


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Goals are to attract an effective workforce to

the Org, develop the workforce to itspotential & maintain the workforce over the

long term

How do we achieve these goals

what is the difference between

HRspecialists & HRgeneralists


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HRspecialists : Focuses on one of the HRM

areas, such as recruitment of employees oradministration of wage, benefit programs

HRgeneralists : have responsibility in more

than oneHRM

area


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Environmental Influences On HRM

Mergers & Acquisitions

Downsizing

International Operation

EEO

Discrimination

Globalization, Workforce Diversity

Labor supply functions,

Employment at will, Unionization

Competitive Strategy

Social Trends

Federal Legislation


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Downsizing : the systematic reduction in the number ofmanagers & employees to make a company more cost

efficient & competitive EEO: the equal right of all citizens to the opportunity to

obtain employment regardless of their gender, age, race,country of origin, religion, color, disabilities

Discrimination : the hiring or promoting of applicants basedon criteria that are not job relevant

AffirmativeAction: A policy requiring employers to takepositive steps to guarantee equal employment opportunitiesfor people with in protected groups


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Competitive Strategy

Org competitive strategy include mergers &

acquisition, downsizing to increaseefficiency, internal operations or the

acquisition of automated production

technology

These strategic decisions determine the

demand for skills & employees


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Federal Legislation

Federal laws have been passed to ensure EEO

The point of the laws is to stop discriminatorypractices that are unfair to specific groups & todefine enforcement agencies for these laws

EEO legislation attempts to balance pay given tomen & women; provide employment opportunitieswithout regard to race, religion, national origin:ensure fair treatment for employees of all ages;avoid discrimination against disable individuals


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Trends In Society

Trends that surface raise new problems for staffingthe firm include

Globalization

Workforce Diversity

Labor Supply Fluctuations

Employee at Will Employee Flexibility

Unionization


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Globalization

As companies of every size enter the global

market place and expand operations, HRexecutives must deal with such staffing

concerns as whether to send expatriate

managers or hire local managers for foreign

operations


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Workforce Diversity

The ethnic & gender makeup of the people

Diversity ? Diversity also brings creativity to the Org

How ?

Women Seeking employment

Diversity through Immigration


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Labor Supply Fluctuations

Changing demographic & economic

conditions affect labor supply Labor shortages

Political Conditions of a country can increase

or decrease the demand for labor

War labor boosts in ammunition & fire

arms industry

MMA banning functions at public

places / Catering firms suffered


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E

mployment at Will

Rule traditionally permitted an employer to fire

an employee for just cause or even no cause Employers no longer enjoy the undisputed right

to fire employees

Employees filing lawsuits

Employers avoiding terms such as PermanentEmployment .. Why?

Termination accepted by the

courts when employers can

show employee incompetence

or changing businessrequirements


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E

mployee Flexibility

Obtain quality employees & the same time

reduce excess employee costs so that firmscan remain competitive in the global

marketplace

Making greater use of P/T

employees Reduce costs without having to

lay off valued employees

Contingent workforce


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Unionization

Unions exist to represent workers in the ORG

Employee & labor sign a Labor agreement

Unions can be a positive force, negative force ?

HOW ?

Compensation, hours, WC


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Attracting An Effective Workforce

(a) HRPlanning : forecasting ofHRneeds & theprojected matching of individuals with expected job

vacancies

HRplanning begins with several questions what new technologies are emerging & how will these affect the work

system?

what is the volume of the business likely to be in the next 10 yrs

What is the turnover rate & how much if any is avoidable ?

Answers to these questions help define the directionfor the Org HRM strategy

The activities managers engage in to forecast their currentand future needs

for Human resources


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(b) HRM Forecasting Techniques

Expert Forecasts

Trend Projection

Other forecasting

methods

1. Informal & Instant decisions

2. Formal expert survey

3. NGT

4. Delphi

1. Extrapolation

2. Indexation

3. Statistical analysis

1. Budget & Planning Analysis

2. New-Venture analysis

3. Computer model


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R

ecruiting

The process of attracting individuals to apply for jobs that areopen/finding & attaining capable applicant for employment

Internal Recruitment : considering current employees asapplicants for high level jobs in the Org

Benefits : less costly, generates higher employee commitment,development & satisfaction- offers opportunities for CD toemployees rather than outsiders

External Recruitment: Getting people from outside the Org toapply for jobs

Applicants are provided by variety of sources: newspaper,advertising, private employment agencies, referrals (cheapest &

reliable method)


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Realistic Job Previewshows the employee job & the job setting before the hiring

decision is made

An honest assessment of the advantages &

disadvantages of a job & organization enhance employee satisfaction and reduce turnover

without RJPs, unmet expectations may cause

initial job dissatisfaction and increased turnover

Medical vaccination natural resistance to that disease


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Selecting

Next step is to select desired employees from

the pool of recruited applicants / Series of stepsused to decide which recruit should be hired

SKA match with required job requirement


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Job descriptions

list of duties as well as desirable

qualifications for a particular job HRprofessionals or Line managers should

read the JD before they review applications

Job summary

Job duties

Working Conditions


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Selection devices

Used for assessing applicant qualifications

Use a combination of these devices to obtain avalid prediction of employee job performance

Application form

Interview

Paper pencil test

Assessment center


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Application Form

Interview

Paper & Pencil test

Assessment Center

A device for collection info about an applicants

Education, previous job experience & other

backgroundcharacteristics

Serves as two way communication

not a valid predictor of job performance

Awritten test designed to measure a particular

attribute

Such as intelligence or aptitude

Technique for selecting individuals with high

managerial potential based on their performance

on a series of Simulated managerial tasks

In basket exercise: to play role of manager


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Develop An Effective Workforce

Training & development

planned effort by an Org to facilitateemployees learning of job related behaviors

Training

Development

Teaching low level or technical employees

How to do their present jobs

Teaching managers and professionals the

Skills needed for both present and future jobs


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On-the-job training (OJT)

A type of training in which an experiencedemployee adopts a new employee to teachhim/her how to perform job duties

o Adv: save costs for training facilities, materials or instructor fee

Orientation Training

Classroom Training Computer assisted Instruction

Conference & case discussions groups

Videos: sales person dealing with loud &

angry customer

Role play: McDonalds hamburger uni

help franchisees acquire the SKA need tomanage restaurants


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Help Companies retain and developproductive employees

Job Posting: positions are announced onbulletin boards or in company publications asopenings occurs. Interested employees notify

the HRdept Employee Resource chart: identify likely

successors for each management position


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Performance Appraisal

The process of observing and evaluating anemployees performance, recording theassessment & providing feedback to theemployees

A formal assessment of how well an

employee is doing his/her job The process by which organizations

evaluate individual job performance


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Accessing Performance Accurately 360-degree feedback

Rating problems Halo error

Homogeneity

Technique to overcome performance evaluation errors BARS (Behaviorally anchored rating scale)

By relating employee performance to specific incidentsraters can more accurately evaluate an employees

performance

A performance appraisal by peers, subordinates,

Superiors, clients thus appraising the employee

from a variety of perspectives


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Halo error: means the error of judging the wholepersonality or performance of a person based on a single few

traits of his personality. Hallo effect/error distort performanceevaluation if for example a supervisor likes or dislikes a person &

rates him good or bad accordingly

Homogeneity : occurs when a rater rate all employees asimilar rating even if their performances are not equally good


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Specific behaviors are ranked along a scale For example

BES for Bartenders Customers Relations:

Extremely Out Standing 7 you can expect this bartender

Performance to help customers in need.

Good performance 6 you can expect this bartender to calmdown arguments before they erupt intofires

Poor performance 2 you can expect this bartenderto check identification ofcustomers on their first time in

the bars. Extremely poor 1 you can expect this bartender

Performance to pick up customers drinksfinished or not with littleor no warning at close time.


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Performance appraisal interview

Number of steps suggested by research into

the performance appraisal interview

Assignment


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Compensation Strategy

Pay for performance systems

Compensation Equity

Job evaluation

(Skills, responsibilities, WCs are involved in the job)

Wage & Salary Structure Point System

Pay Survey

Pay trend line

Determine the relevant worth of jobs

With this knowledge jobs are out into

Hierarchy according to their relative worth

Job Ranking, Grading, factor comparison

and Point system methods used

Design compensation structure

to fit company strategy

Use a merit pay system than system based on

Seniority criteria

What other employees in the same labor market

Are paying for specific key job


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Termination :

Org will lose employees

Value of termination for maintaining WF is

two fold

Some will retire, others will depart

voluntarily for other jobs and still others

will be forced out through mergers or forpoor performance

Employees who are poor performers can bedismissed

an exit interview conducted with departing

employees to determine why they are

leaving; also excellent tool to reduce future

turnover


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Summary

Discussion

mangt hrm chapter 10

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