Human Resource Management Chapter Twelve

High Performance Work Practices Lead to both high individual and high organizational performance. Improving the knowledge, skills, and abilities of an organization’s employees. Increasing employee motivation. Reducing loafing on the job. Enhancing the retention of quality employees while encouraging low performers to leave.

Examples of High Performance Work Practices Self-directed work teams Job rotation High levels of skills training Problem-solving groups Encouragement of innovative and creative behavior Extensive employee involvement and training Implementation of employee suggestions Contingent pay based on performance Coaching/mentoring Info sharing Use of employee attitude surveys Comprehensive employee recruitment and selection procedures

Human Resource Management Process Activities necessary for staffing the organization and sustaining high employee performance.

Human Resource Management Process External Environment Recruitment Selection Competent Employees Human Resource Planning Decruitment Adapted, competent employees with current skills and knowledge Orientation Training Career Development High performing employees over the long term Performance Management Compensation and Benefits External Environment

External Environment Labor unions—an organization that represents workers and seeks to protect their interests through collective bargaining Government laws and regulations Unemployment rate

Human Resource Planning Assessing current human resources Assessing future human resource needs Developing a program to meet those future needs

Assessing Current Human Resources Human resource inventory Name, education, training, prior employment, languages spoken, special capabilities, and specialized skills Job analysis—defines jobs and behaviors necessary to perform them Direct observation, filming, interviewing employees and managers, questionnaires Job description—what a jobholder does, how it is done, and why it is done Job specification—minimum qualifications

Meeting Future Human Resource Needs Future human resource needs are determined by an organization’s mission, goals, and strategies Estimate HR shortages and overstaffing issues (number, type)

Recruitment and Decruitment

Recruitment Process of locating, identifying, and attracting capable applicants

Sources of Potential Job Candidates Advantages Disadvantages Internet Reaches large number of people; can get immediate feedback Generates many unqualified candidates Employee referrals Can generate strong candidates b/c a referral reflects on the recommender May not increase diversity and mix of employees Company website Wide distribution; can be targeted to specific groups College recruiting Large centralized body of candidates Might be limited to entry-level positions with undergrads

Decruitment Techniques for reducing the labor supply within an organization

Decruitment Options Option Description Firing Permanent involuntary termination Layoffs Temporary involuntary termination; may last only a few day or extend to years Attrition Not filling openings created by voluntary resignations or normal retirements Transfers Moving employees laterally or downward Reduced workweeks Having employees work fewer hours or share jobs Early retirements Providing incentives to more senior employees to have them retire before their normal retirement date

Selection

Selection Process Screening job applicants to ensure that the most appropriate candidates are hired Reject errors—rejecting candidates who would have performed well on the job Cost of ongoing screening, charges of discrimination Accept errors—accepting candidates who ultimately perform poorly Costs of training the employee, profits lost, severance, subsequent recruiting and screening

Types of Selection Devices Application forms Written tests—aptitude, intelligence, ability, personality, and Emotional Intelligence Performance-simulation tests Work sampling—do the job Assessment centers—simulate real problems candidates would encounter Interviews Background investigations Physical examinations

Suggestions for Interviewing Structure a fixed set of questions for all applicants Have detailed info about the job Ask questions that require applicants to give details of actual job behaviors Take notes during the interview Role play in mock scenarios

Human Resource Management Process External Environment Recruitment Selection Competent Employees Human Resource Planning Decruitment Adapted, competent employees with current skills and knowledge Orientation Training Career Development High performing employees over the long term Performance Management Compensation and Benefits External Environment

Microsoft Interview Questions “Tell me about your most intellectually challenging and difficult problem. Why was it difficult? How did you work through it? How did it work out?” “Tell me about one of the most high potential people you have had the opportunity to work with. What did you do to support that person’s development?” “Tell me about a time that you had to discipline an employee. What was your approach to the conversation? What was your strategy? What was the outcome?”

Orientation

Orientation Introduction of a new employee to his or her job, the organization, and the culture May be formal or informal Example of intense orientation—Trilogy’s Trilogy University

Work Unit Orientation Familiarizes the employee with the goals of the work unit, clarifies how his/her job contributes to the work unit, and includes an introduction to coworkers

Organization Orientation Informs the new employee about the organization’s objectives, history, philosophy, procedures, and rules.

Employee Training

Types of Training Type Includes Interpersonal skills Leadership, coaching, communication, conflict resolution, team building, diversity Technical Product training and knowledge, sales process, information technology, job specific Business Finance, marketing, quality, strategic planning, project management, sales Mandatory Safety, health, sexual harassment Problem solving Defining problems, analyzing alternatives Personal Career planning, time management, wellness, personal financial planning

Employee Training Methods Traditional Training Methods On-the-job Job rotation Mentoring and coaching Experiential exercises Workbooks and manuals Technology-based Training Methods CD-ROM, DVD, videotape Videoconference E-learning

Employee Performance Management

Performance Management System A process of establishing performance standards and evaluating performance in order to arrive at objective human resource decisions as well as to provide documentation to support those decisions.

Performance Appraisal Methods Advantage Disadvantage Written essays Simple to use Dependent upon the evaluator’s writing skills Graphic rating scales Quantitative; less time consuming No depth about job behaviors BARS Focus on specific and measurable job behaviors Time consuming; difficult to develop Multi-person comparisons Compares employees Unwieldy with large numbers of employees MBO Results-oriented Time consuming 360-degree appraisals Thorough

Compensation and Benefits

Factors that Influence Compensation and Benefits Employee tenure and performance Kind of job performed Management philosophy Unionization Industry Company size Geographical location Company profitability

Skill-based Pay A pay system that rewards employees for the job skills they can demonstrate.

Current Issues in Human Resource Management

Managing Downsizing Open and honest communication Inform people being let go as soon as possible Inform survivors about the company’s new goals, impact on their jobs, and future plans Severance pay and benefits Job search assistance Support for survivors

Managing Workforce Diversity Recruitment Widen recruitment net to include non-traditional sources such as women’s job networks, over-50 clubs, and ethnic newspapers. Selection Make sure selection process does not discriminate. Make sure applicants are comfortable with the organization’s culture. Orientation and Training Mentoring programs; required diversity training