Human Resource Management Exploring Management Chapter 10 Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved. Human Resource Management

Learning Objectives Chapter 10 What are the purpose and legal context of human resource management? (10.1) What are the essential human resource management practices? (10.2) What are some of the current issues in human resource management? (10.3) Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PURPOSE AND LEGAL CONTEXT 10.1 Takeaway – answers to come Human resource management attracts, develops, and maintains a talented workforce Strategic human resource management aligns human capital with organizational strategies Government legislation is supposed to protect workers against employment discrimination Laws can’t guarantee that employment discrimination will never happen Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Maintaining a Talented Workforce Major responsibilities of Human Resource Management (HRM) include: Attracting a quality workforce Developing a quality workforce Maintaining a quality workforce Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Strategic HR Strategic human resource management aligns human capital with organizational strategies. Human capital skills, knowledge, innovation, creativity, energy and commitment to offer to the organization Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Discrimination Laws Job discrimination Employment decisions made for reasons that are not relevant to the job Equal employment opportunity (EEO) The right to employment without regard to race, religion, color, national origin, gender Title VII of the Civil Rights Act of 1964 is an important law that guarantees equal employment opportunity Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Discrimination Laws Affirmative Action Effort to give employment preference to women and minority group members Affirmative Action plans Attempt to ensure that percentage of minorities within the organization are a similar proportion to the labor market availability Reverse discrimination Claims of discrimination by majority populations Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Discrimination Laws Bona fide occupational qualifications Criteria for employment is justified for ability to perform a job May seem discriminatory Example – female locker room attendant Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Selected Discrimination Laws The Equal Pay Act of 1963 requires equal pay for women and men doing equal work. It describes equal work in terms of skills, responsibilities, and working conditions. The Age Discrimination in Employment Act of 1967 as amended in 1978 and 1986 protects workers against mandatory retirement ages. Age discrimination occurs when a qualified individual is adversely affected by a job action that replaces him or her with a younger worker. The Pregnancy Discrimination Act of 1978 protects female workers from discrimination because of pregnancy. A pregnant employee is protected against termination or adverse job action because of the pregnancy and is entitled to reasonable time off work. The Americans with Disabilities Act of 1990 as amended in 2008 prevents discrimination against people with disabilities. The law requires employment decisions be based on a person’s abilities and what he or she can do. The Family and Medical Leave Act of 1993 protects workers who take unpaid leaves for family matters from losing their jobs or employment status. Workers are allowed up to 12 weeks of leave for childbirth, adoption, personal illness, or illness of a family member. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Employee Rights Workplace privacy Right to privacy on the job Technology creates issues with employer and employee rights: social media, e-mail, Internet use Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Employee Rights Pay discrimination and comparable worth People with similar jobs should receive comparable pay Lillie Ledbetter Fair Pay Act Lengthened the time frame to file claims of pay discrimination Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Employee Rights Pregnancy discrimination Penalizes women as applicants or employees for being pregnant Hiring Promotions Leaves Job assignments Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Employee Rights Age discrimination Penalizes employees 40 and over as applicants or employees Average age in the workforce is increasing and so are claims of discrimination Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Study Guide for 10.1 Rapid Review: The human resource management process involves attracting, developing, and maintaining a quality workforce. Job discrimination occurs when someone is denied an employment opportunity for reasons that are not job relevant. Equal employment opportunity legislation guarantees people the right to employment and advancement without discrimination. Current legal issues in the work environment deal with workplace privacy, pay, pregnancy, and age, among other matters. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Study Guide for 10.1 Questions for Discussion: How might the forces of globalization affect human resource management in the future? Are current laws protecting American workers against discrimination in employment sufficient, or do we need additional ones? What employee-rights issues and concerns would you add to those discussed here? Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM Purpose and Legal Context 10.1 Be Sure You Can…for 10.1 explain the purpose of human resource management. differentiate job discrimination, equal employment opportunity, and affirmative action. identify major U.S. laws protecting against employment discrimination. explain the issues of workplace privacy that today’s college graduates should be prepared to face. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Takeaway – answers to come The Employee Value Proposition aligns people and organizations. Recruitment attracts qualified job applicants. Selection makes decisions to hire qualified job applicants. Socialization and orientation integrate new hires into an organization. Training continually develops employee skills and capabilities. Performance management appraises and rewards accomplishments. Retention and career development provide career paths. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Employee Value Proposition The Employee Value Proposition Aligns People and Organizations Employee Value Proposition (EVP) the exchange of value between what the individual and the employer offer each other as part of the employment relationship Person-job fit the match of individual skills, interests, and personal characteristics with the job Person-organization fit the match of individual values, interests, and behavior with the organizational culture Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Recruiting Recruitment Attracting a pool of qualified applicants to the organization Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Recruiting Realistic job preview Gives the candidate both the good and bad points of the job and organization Often highlights rewards and challenges of the position Traditional recruitment Emphasizes selling the job to the applicant; positives are played up while potential negatives are avoided or glossed over lightly. Emphasizes full and complete information; answers all questions fully and discusses both favorable and unfavorable aspects of job and organization Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Selection Choosing applicants with the greatest potential from the pool Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Selecting Reliability Employment test or selection device provides consistent measurement of applicant skills, time after time. Validity Employment test or selection device is a good predictor of future job performance. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Selecting Assessment centers Evaluates applicant abilities by observing performance in simulated work activities Work sampling Actual work is graded by observers Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Socialization and Orientation Process of influencing the expectations, behavior, and attitudes of new employees in a positive way Orientation Activities that familiarize new employees with the new job and the organization Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Training Improves employee skills and capabilities Coaching Experienced employees provide advice and motivation Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Training Mentoring Experienced employees share expertise with newer employees Reverse mentoring Newer employees share expertise with experienced employees Technology Social media Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Performance Management Performance Appraisal Process of assessing and providing feedback on employee work accomplishment Document performance Communicate performance Identify how to improve performance Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Performance Management Graphic rating scale Checklist or score card for rating employee traits or performance characteristics Quality of work Quantity of work Attendance Punctuality Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Performance Management Behaviorally Anchored Rating Scale (BARS) Describes actual behaviors that indicate various levels of performance Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved. Figure 10.1

HRM PRACTICES 10.2 Performance Management Critical incident technique Keeps an actual record of employee behavior in certain circumstances Multi-person comparison Employees are rated relative to other employees Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Performance Management 360 degree feedback Input from those who work with the employee Direct report employees Direct supervisor Peers Multiperson Comparison Compares one person’s performance with that of others Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Retention and Career Development Process of career growth and progress Career Planning Matching career goals and individual abilities with opportunities Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Study Guide for 10.2 Rapid Review: Recruitment is the process of attracting qualified job candidates to fill vacant positions; realistic job previews try to provide candidates with accurate information on the job and organization. Assessment centers and work sampling that mimic real job situations are increasingly common selection techniques. Orientation is the process of formally introducing new employees to their jobs and socializing them to the culture and performance expectations. Training keeps workers’ skills up to date and job relevant; important training approaches include coaching and mentoring. Performance appraisal methods include graphic rating scales, behaviorally anchored rating scales, the critical-incidents technique, 360 feedback, and multi-person comparisons. Employee retention programs try to keep skilled workers in jobs and on career paths satisfying to them and beneficial to the employer. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Study Guide for 10.2 Questions for Discussion: Is it realistic to expect that you can get a realistic job preview during the interview process? If a new employer doesn’t formally assign someone to be your coach or mentor, what should you do? What are some of the possible downsides to receiving 360 feedback? Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

HRM PRACTICES 10.2 Be Sure You Can…for 10.2 list steps in the recruitment process. explain realistic job previews. illustrate reliability and validity in employment testing. illustrate how an assessment center might work. explain the importance of socialization and orientation. describe coaching and mentoring as training approaches. discuss strengths and weaknesses of alternative performance appraisal methods. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CURRENT ISSUES 10.3 Takeaway – answers to come Today’s lifestyles increase demands for flexibility and work-life balance. Organizations are using more independent contractors and part-time workers. Compensation plans influence employee recruitment and retention. Fringe benefits are an important part of employee compensation packages. Labor relations and collective bargaining are closely governed by law. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CURRENT ISSUES 10.3 Work-life balance Balancing career demands with personal and family needs Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CURRENT ISSUES 10.3 Employment Trends Independent contractors Hired with temporary contracts Not permanent employees Contingency workers Sometimes called permatemps Work regular or part-time hours on long-term basis Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CURRENT ISSUES 10.3 Compensation Merit pay Pay increase for good job performance Bonus pay One-time payment for performance or accomplishments Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CURRENT ISSUES 10.3 Compensation Profit sharing Distributes portion of profits to employees Gain sharing Distributes portion of cost savings to employees Stock options Right to purchase stock at a fixed price in the future Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CURRENT ISSUES 10.3 Benefits Fringe benefits Non-monetary compensation Health insurance, retirement plans, paid time off Family friendly benefits Help employees balance work, personal, and family life Flexible benefits Employees personalize benefits within a set allowance or dollar amount Employee assistance programs Help employees cope with personal stress and problems Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

Labor unions Labor contracts Deal with employers on worker’s behalf CURRENT ISSUES 10.3 Labor Labor unions Deal with employers on worker’s behalf Labor contracts Agreement between employees and employer Wages Hours Benefits Working conditions Seniority Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

Collective bargaining CURRENT ISSUES 10.3 Labor Collective bargaining Process that brings management and union representatives together for negotiating, administering and interpreting labor contracts Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved. Figure 10.2

CURRENT ISSUES 10.3 Study Guide for 10.3 Rapid Review: Complex job demands and family responsibilities have made work-life balance programs increasingly important in human resource management. Compensation and benefits packages must be attractive so that an organization stays competitive in labor markets. Labor unions are organizations to which workers belong and that deal with employers on the employees’ behalf. Collective bargaining is the process of negotiating, administering, and interpreting a labor contract. Labor relations and collective bargaining are closely governed by law and can be cooperative or adversarial in nature. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CURRENT ISSUES 10.3 Study Guide for 10.3 Questions for Discussion: Are we giving too much attention these days to issues of work-life balance? Can a good argument be made that merit pay just doesn’t work? Given economic trends, is it likely that unions will gain in future popularity? Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.

CURRENT ISSUES 10.3 Be Sure You Can…for 10.3 define work-life balance and discuss its significance for the human resource management process. explain why compensation and benefits are important in human resource management. differentiate bonuses and profit sharing as forms of performance-based pay. define the terms “labor union,” “labor contract,” and “collective bargaining.” compare the adversarial and cooperative approaches to labor-management relations. Schermerhorn, Exploring Management, Fourth Edition, © John Wiley & Sons, Inc. All rights reserved.