Management 11e John Schermerhorn Chapter 12 Human Resource Management

Planning Ahead — Chapter 12 Study Questions What is human resource management? How do organizations attract a quality workforce? How do organizations develop a quality workforce? How do organizations maintain a quality workforce? Management 11e Chapter 12

Study Question 1: What is human resource management? Human Resource Management is a process of attracting, developing, and maintaining a talented work force Human capital is the economic value of people with job-relevant abilities, knowledge, ideas, energies and commitments Human Resource Management Attracting talented employees Developing talented employees Keeping talented employees Management 11e Chapter 12

Study Question 1: What is strategic human resource management? Major human resource management responsibilities: Attracting a quality workforce Human resource planning, recruitment, and selection Developing a quality workforce Employee orientation, training and development, and performance appraisal Maintaining a quality workforce Career development, work-life balance, compensation and benefits, employee retention and turnover, and labor-management relations Management 11e Chapter 12

Study Question 1: What is human resource management? Person-job fit The individual’s skills, interests, and personal characteristics are consistent with the requirements of work Person-organization fit The individuals values, interests, and behavior are consistent with the culture of the organization Management 11e Chapter 12

Study Question 1: What is human resource management? Strategic human resource management mobilizes human capital to implement organizational strategies Discrimination in employment Occurs when someone is denied a job or job assignment for reasons that are not job relevant Equal employment opportunity The right to employment without regard to race, color, national origin, religion, gender, age, or physical or mental ability Title VII of the Civil Rights Act of 1964 Equal Employment Opportunity Act of 1972 Civil Rights Act (EEOA) of 1991

Figure 12.1 A sample of U.S. laws against employment discrimination Management 11e Chapter 12

Study Question 1: What is human resource management? Affirmative action An effort to give preference in employment to women and minority group members Bona fide occupational qualifications employment criteria justified by capacity to perform a job Additional laws against employment discrimination: Americans With Disabilities Act of 1990 Age Discrimination in Employment Act of 1967 as amended in 1978 and 1986 Pregnancy Discrimination Act of 1978 Family and Medical Leave Act of 1993 Current legal issues in HRM Sexual harassment Equal pay and comparable worth Legal status of independent contractors Workplace privacy Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? Human resource planning analyzes an organization’s HR needs and how to best fill them The foundation of human resource planning is job analysis The orderly study of job facts to determine just what is done, when, where, how, why, and by whom in existing or potential new jobs Job analysis provides information for developing: Job descriptions Job specifications Management 11e Chapter 12

Figure 12.2 Steps in strategic human resource planning Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? Recruitment Activities designed to attract a qualified pool of job applicants to an organization Steps in the recruitment process: Advertisement of a job vacancy Preliminary contact with potential job candidates Initial screening to create a pool of qualified applicants Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? Recruitment methods External recruitment candidates are sought from outside the hiring organization Internal recruitment candidates are sought from within the organization Traditional recruitment candidates receive information only on most positive organizational features Realistic job previews candidates receive all pertinent information Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? Selection Choosing from a pool of applicants the person or persons who offer the greatest performance potential Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? Selection process Screening applicant information Interview or site visit Employment testing Preemployment checks Management 11e Chapter 12

Figure 12.3 Steps in the selection process: the case of a rejected job applicant Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? Reliability means that a selection device gives consistent results time after time Validity means that there is a clear relationship between what the selection device measures and job performance Interviews Unstructured interviews do not follow a formal and pre-established of questions Behavioral interviews ask job applicants about past behaviors that relate to the job Situational interviews ask job applicants how they would react in specific situations Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? Employment Tests Used to further screen applicants by gathering additional job-relevant information Assessment centers examine how job candidates handle simulated work situations Work sampling involves observing applicants performing actual work tasks Biodata methods collect biographical information that has been proven to correlate with good job performance along with other traits such as Value judgments Aspirations Motivations Attitudes Expectations Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? Socialization Process of influencing the expectations, behavior, and attitudes of a new employee in a way considered desirable by the organization Orientation Set of activities designed to familiarize new employees with their jobs, coworkers, and key aspects of the organization Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? Training Activities that provide the opportunity to acquire and improve job-related skills On-the-job training Job rotation Coaching Mentoring Modeling Off-the-job training Management development Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? Performance management systems ensure that Performance standards and objectives are set Performance results are assessed regularly Actions are taken to improve future performance potential Performance appraisal Formally assessing someone’s work accomplishments and providing feedback Purposes of performance appraisal: Evaluation — lets people know where they stand relative to objectives and standards Development — assists in training and continued personal development of people Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? Graphic rating scales A trait-based performance appraisal that includes checklists of traits or characteristics to evaluate performance Relatively quick and easy to use Questionable reliability and validity Behaviorally anchored rating scales (BARS) A behavior-based performance appraisal that describes actual behaviors that exemplify various levels of performance achievement in a job More reliable and valid than graphic rating scales Helpful in training people to master important job skills Management 11e Chapter 12

Figure 12.4 Sample behaviorally anchored rating scale for performance appraisal Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? Recency bias is the tendency for evaluators to focus on recent behaviors instead of behavior that occurred throughout the evaluation period Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? Critical-incident techniques Keeping a running log or inventory of effective and ineffective behaviors Documents success or failure patterns Results-based performance appraisals focus on accomplishments Usually qualitative and objective Determining what to measure may be difficult May create ethical problems Multiperson comparisons Formally compare one person’s performance with that of one or more others Types of multiperson comparisons: Rank ordering Paired comparisons Forced distributions Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? 360° feedback Occurs when superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholder’s performance Work-life balance How people balance career demands with personal and family needs Progressive employers support a healthy work-life balance Contemporary work-life balance issues: Single parent concerns Dual-career couples concerns Family-friendliness as screening criterion used by candidates Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? Compensation and benefits Base compensation: Salary or hourly wages Flexible benefits Employees can select a set of benefits within a certain dollar amount Pay for performance Paying people for performance is consistent with: Equity theory Expectancy theory Reinforcement theory Merit pay Awards a pay increase in proportion to individual performance contributions Provides performance contingent reinforcement Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? Bonus pay plans One-time payments based on the accomplishment of specific performance targets or some extraordinary contribution Profit-sharing plans Some or all employees receive a proportion of net profits earned by the organization Gain-sharing plans Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? Employee stock ownership plans Employees purchase company stock directly through employer, sometimes at a discount Stock options Employees have the right to purchase company stock at a fixed price in the future as a performance incentive Benefits: Non-monetary forms of compensation Required Social security Unemployment insurance Worker’s compensation Not required. Health insurance. Retirement plans And Paid time off Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? Flexible benefits Allow employees to choose from a set of benefits Family-friendly benefits Help in balancing work and nonwork responsibilities Employee assistance programs Help employees deal with troublesome personal problems Retention Keeping well trained and productive employees Turnover management of promotions, transfers, terminations, layoffs, and retirements Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? Early retirement Financial incentive offered to employees who retire early Termination Involuntary dismissal of an employee Labor-management relations Labor unions deal with employers on the workers’ behalf Collective bargaining Process of negotiating, administering and interpreting a labor contract Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? Employment-at-will Employees can be terminated at any time for any reason Wrongful discharge Workers have legal protection from discriminatory firings Labor-management relations Labor unions deal with employers on the workers’ behalf Collective bargaining Process of negotiating, administering and interpreting a labor contract Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? Labor contracts may determine Wages Work hours Work rules Seniority Hiring Grievances Other conditions of employment Management 11e Chapter 12

The traditional adversarial view of labor-management relations Management 11e Chapter 12

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