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Chapter Objectives Explain what human resource management involves. Define the term human capital and identify at least four of Pfeffer’s people- centered practices. Identify and briefly explain the seven steps in the PROCEED model of employee selection. Distinguish among equal employment opportunity, affirmative action, and managing diversity. Explain how managers can be more effective interviewers. Discuss how performance appraisals can be made legally defensible. Contrast the ingredients of good training programs for both skill and factual learning and explain training program evaluation. Specify the essential components of an organization’s policies for dealing with sexual harassment, and alcohol and drug abuse. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2

Human Resource Strategy: A People-Centered Approach Human Resource Management (HRM) The acquisition, evaluation, retention, and development of human resources necessary for organizational success Moved from a support staff function (personnel) to a more strategic role in organizations Human Capital All present and future workforce participants who need to develop to their full potential as valuable assets to organizations © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

Human Resource Strategy: A People-Centered Approach (cont’d) People-centered organizations enjoy a competitive advantage because of people-centered practices: – Protection of job security – Rigorous hiring process – Employee empowerment – Compensation linked to performance – Comprehensive training – Reduction of status differences – Sharing of key information © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

Human Resource Strategy: A People-Centered Approach (cont’d) Recruitment and Selection The ultimate goal of recruiting is to generate a pool of qualified applicants for new and existing jobs. Recruiting for diversity To generate through many different sources a pool of qualified applicants who are demographically representative of the population at large Social networking via the Web is rapidly becoming the tool of choice for both recruiters and job seekers. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5

Human Resource Strategy: A People-Centered Approach (cont’d) The Selection Process HR analysts commonly compare the screening and selection process to a hurdle race. Job Analysis The process of identifying basic task and skill requirements for a specific job by studying superior performers Job Description A concise document that outlines the role expectations and skill requirements for a specific job © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

Equal Employment Opportunity (EEO) EEO and Title VII of the Civil Rights Act of 1964 In virtually all aspects of employment, it is unlawful to discriminate on the basis of race, color, sex, religion, age, national origin, disability, or veteran status. Selection and all other personnel decisions must be made solely on the basis of objective (job-related) criteria such as the ability to perform or seniority. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7

Recruitment and Selection Employment Selection Tests Any procedures used in the employment decision process such as: Pencil-and-paper tests Unscored application forms Informal and formal interviews Performance tests Physical, education, or experience requirements Must be unbiased, statistically valid, and reliable predictors of job success © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8

Effective Interviewing Interviews are the most common selection tool. Shortcomings of unstructured interviews: Highly susceptible to distortion and bias Highly susceptible to legal attack Legally indefensible if contested Apparent but no real validity Not totally job-related and possibly invasive of privacy Highly inconsistent in application as selection tool Subject to interviewer bias (e.g., cultural bias) No feedback about selection errors There is an unsubstantiated confidence in the traditional interview. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

Effective Interviewing (cont’d) Structured interviews: A set of job-related questions with standardized answers Question types used in structured interviews: Situational Job knowledge Job sample simulation Worker requirements Behavioral interviewing: Asking candidates detailed questions about specific behaviors in past job-related situations © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10

Performance Appraisal Evaluating individual job performance as a basis for making objective personnel decisions Making Performance Appraisals Legally Defensible Use job analysis to develop the appraisal system. Check that the appraisal system is behavior-oriented, not trait-oriented. Have evaluators follow specific written instructions when conducting appraisals. Have evaluators review results with the ratees. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11

Performance Appraisal (cont’d) Alternative Performance Appraisal Techniques Goal setting (MBO) Written essays Critical incidents Graphic rating scales Behaviorally anchored rating scales (BARS) Weighted checklists Rankings and comparisons Multirater appraisals 360-degree review © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12

Training Using guided experience to change employee behavior/attitudes Training facts The majority of today’s training is remarkably low-tech There is no one-best training technique Ideally, training content and delivery should be tailored to the individual © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

Skill Versus Factual Learning Effective skill learning ingredients Goal setting Modeling Practice Feedback Effective factual learning sequence Goal setting Meaningful presentation of materials Practice Feedback © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14

Summary Human resource management involves human resource acquisition, retention, and development. Both present and future employees are human capital that needs to be developed to its fullest potential. Managers need to recruit for diversity to increase their appeal to job applicants and customers alike. The hurdle-like selection process can be summed up in the seven- step PROCEED model. Federal equal employment opportunity laws require managers to make hiring and other personnel decisions on the basis of ability to perform rather than personal prejudice. All employment tests must be valid predictors of job performance. Legally defensible performance appraisals enable managers to make objective personnel decisions. Training programs should be designed with an eye toward maximizing the retention of learning and its transfer to the job. Sexual harassment and alcohol and drug abuse are contemporary human resource problems that require top-management attention and strong policies. © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15

Terms to Understand Human resource management Human capital Job analysis Job description Affirmative Action Program (AAP) Employment selection test Structured interview Behavior-based interview Performance appraisal Behaviorally Anchored Rating Scales (BARS) 306-degree review Training Sexual harassment Alcoholism © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16