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 HR must drive organizational performance; it’s the competitive edge  Matching process  Integrate strategy  HR builds culture  The right people:  To become more competitive on a global basis  For improving quality, innovation, and customer service  To retain during mergers and acquisitions  To apply new information technology for e- business 2

© 2016 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

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 Strategic decisions are related to human decisions  More companies rely on information, creativity, knowledge, and service  Human Capital is the economic value of the combined knowledge, experience, skills, and capabilities of employees 5

© 2016 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

 HR managers must stay on top of legal and regulatory environment  Many laws exist to ensure equal opportunity and stop discrimination  Discrimination – The hiring or promotion of applicants based on criteria that are not job relevant 7

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Affirmative action – Requires employers to take positive steps to guarantee equal employment opportunities for people of protected groups  Sexual harassment is a growing concern that is a violation of the Civil Rights Act 8

© 2016 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

 Employees operate under a new social contract  Downsizing, outsourcing, rightsizing, and restructuring have left little stability  Subsidized benefits are decreasing  Employees are expected to be self-motivated  Organizations must be creative with training and development  New performance appraisal processes are required 10

© 2016 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

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Becoming an Employer of Choice  Organizations that are highly attractive to potential employees because of HR practices  Using Temporary and Part-Time Employees  Contingent workers are not permanent, maintain flexibility, and keep costs low  Acquiring Start-ups to Get the Talent  Acqui-hiring- buying an early-age start-up 12

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Using the matching model, the organization and the individual attempt to match the needs, interests, and values that they offer each other 13

© 2016 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

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  What new technologies are emerging?  What is the volume of the business likely to be in the next 5 to 10 years?  What is the turnover rate?  What types of engineers will we need?  How many administrative personnel will we need to support additional engineers?  Can we use temporary, part-time, or virtual workers? 15

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Assessing Organizational Needs:  Job analysis : Systematic process of gathering information about the responsibilities of a job  Job description : Summary of the duties of a job  Job specification : Characteristics required to perform the job 16

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Realistic Job Previews – Provide pertinent information; positive and negative  Legal Considerations – Recruiting practices must be legal  Innovations in Recruiting :  eRecruiting through Twitter, LinkedIn, and other social media  Internships – Student exchanges low cost labor for valuable work experience 17

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Employment Tests  Cognitive ability tests  Physical ability tests  Personality tests  Brain teasers  Assessment Center  Work sample tests  Online Checks 19  Application Form  Avoid irrelevant questions  Avoid questions with adverse impact  Interview ; cannot violate EEO guidelines  Structured interviews  Biographical interviews  Behavioral interviews  Situational interviews  Panel interviews Employers assess applicants for a “fit” HR professionals us a combination of devices:

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Training and Development  On-the-Job Training  Social Learning  Corporate Universities  Promotion from Within  Mentoring and Coaching  Performance Appraisal  Evaluating performance, recording assessment, and providing feedback 22 Development involves teaching broader skills

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Assessing Performance Accurately – system should evaluate relevant performance  Performance-review ranking systems pit employees against each other  360-degree Feedback – Uses multiple raters, including self-rating to appraise employees and development 24

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Performance Evaluation Errors  Stereotyping – Placing an employee into a class or category based on a few characteristics  Behaviorally Anchored Rating Scale (BARS) – Rating technique that relates an employee’s performance to specific job-related incidents 25

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. All monetary payments and all goods or commodities used to reward employees  Wage and Salary Systems  Job-based pay  Skill-based pay  Competency-based pay  Compensation Equity – Fairness and equity  Pay for Performance – Raise productivity and cut labor costs in competitive environment 27

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Social security, unemployment compensation, and workers’ compensation are required by law  Cafeteria-plan benefits packages allow employees to select benefits for themselves  Benefits have been cut due to the recession  Companies are not planning to renew benefits to prerecession levels 28

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Reducing the company’s workforce to the “right” size; also called downsizing  Makes company stronger and more competitive  HR must effectively and humanely manage the process  Many organizations use communication and provide assistance to address emotional needs 29

© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.  Employees leave voluntarily, retire, are rightsized, and are fired for poor performance  Poor performing employees can be disruptive and cause problems for morale  Exit interviews can be used to learn about dissatisfaction and reason for departure 30