© 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter Thirteen Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Introduction to Business

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Describe five components of a human resource system and its interaction for a competitive advantage. Appreciate issues in the recruiting process for qualified people and the selection process. Explain training and development activities help to build abilities, skills and knowledge of company employees. Understand the process of appraising employee’s performance is a major factor influencing the way they wish to contribute to achieving a company’s goals and objectives. Explain why linking pay to performance in a fair and equitable manner is an important source of employee motivation and commitment to a company. Appreciate the importance of good labor relations and the importance of collective bargaining in aligning the goals of employees and companies.

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities HRM Systems Acquire and build employees’ skills and capabilities Skills and abilities create the value in the company products

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities HRM Systems Human resources include all the people company employs – CEO and top managers Middle managers Non-managerial employees who perform the tasks and jobs necessary to create valuable goods and services

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Human resource management (HRM) Activities designed to acquire quality human resources Build employees skills and capabilities Employees perform jobs efficiently and effectively

Develops an HRM system for: Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities The HRM function Develops an HRM system for: Recruitment and selection Training and development Performance appraisal/feedback Pay and benefits Labor relations

Determines how a decision is made about: Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities The HRM system Determines how a decision is made about: Recruitment and selection Training and development Performance appraisal/feedback Pay and benefits Labor relations

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities HRM System Performance appraisal accurately identifies differences in the level and quality of employees’ work performance To provide them with feedback that helps raise their performance level

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities The HRM system Labor Relations -- working with employees, or the unions that represent To create work rules define company and employee work responsibilities Managing negotiation process necessary to resolve problems or disputes

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities The HRM system Recruitment -- developing and using a company-specific set of rules and SOP”S to identify and attract the best pool of qualified job applicant

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities The HR Planning Forecasting employees a company will require to meet the objectives of its business model HRM managers first analyze skills of current workforce, what kinds of human resource will be needed in the next two years to meet its objectives

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Workflow Analysis Identifies jobs will be required to allow each value chain function to perform efficiently and effectively in the future

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Job analysis Obtaining detailed information about the tasks/responsibilities in each job in a company One method of conducting job analysis is use of the Position Analysis Questionnaire (PAQ) and asks jobholders and their managers detailed questions

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Job description List of specific tasks, duties and responsibilities of a particular job Job Specification A list of the required skill, abilities and knowledge needed to perform that particular job

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Recruitment May be external or internal—a policy of promoting from within (internal) the organization Both methods facilitate finding qualified applicants

Training and development Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Training and development A process companies use to build their employees’ skills, abilities, and knowledge

Training and development Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Training and development T&D allows employees to perform their jobs with increased efficiency, quality, innovation, and customer responsiveness Training analysis is a method of discovering which kinds of employees need training and development

Performance Appraisal Methods Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Performance Appraisal Methods Results-based Forced choice Behavior Designed to improve a company’s competitive advantage and may be linked to pay

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Trade unions Organizations represent the interest of workers who perform a similar type of job in a company or industry

Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Industrial conflict The clash that occurs when the attempts of workers and the union To secure a greater share of the profits a company thwarts the attempts of managers to use that profit to benefit other stakeholders

Collective bargaining Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Collective bargaining Process through which union representatives and manager negotiate a binding labor agreement or contract

Collective bargaining Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities Collective bargaining Issues such as pay/benefits, and work rules An underlying theme in labor relations and collective bargaining it to create and maintain a fair and equitable relationship between a company and its employees

A New perspective in HRM Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities A New perspective in HRM Not yet adopted by the vast majority of management The individual is the most important resource in the organization As any other resource, they are an asset, not only limited in supply but also increase in value over time

A New Perspective in HRM Chapter 13 Human Resource Management: Acquiring and Building Employees’ Skills and Capabilities A New Perspective in HRM In addition people make the “just noticeable difference” between any two similar companies Wal-Mart’s management used superior customer service as their competitive advantage and were able to overtake K-Mart!