1. Human Resource Management
Chapter 12

2. The Strategic Role of Human Resource Management
Human Resource management has shed its old personnel image and gained recognition as a vital player in corporate strategy
HRM departments not only support the organization’s strategic objective but actively pursue an ongoing, integrated plan for furthering the organization’s performance
Higher employee productivity
Stronger financial results
Achieve organization’s strategic goals
Key players on management team
Manager’s Challenge: UPS Buffalo, New York

3. Human Resource Management
Matching process,
integrating the
organization’s
goals with
employees’ needs
All managers
are resource
managers
Employees are
viewed as assets
How a company manages its workforce may be single more important factor in sustained competitive success

4. Current Strategic Issues
Determine a company’s need for skills and employees
Becoming more competitive globally
Improving quality, productivity, & customer service
Managing mergers & acquisitions
Applying new information technology for e-business
Experiential Exercise: Do You Want to be an HR Manager?

5. Human Resource Management Goals
HRM Environment
Legislation
Trends in society
International events
Changing technology
Company Strategy
HRM planning
Job analysis
Forecasting
Recruiting
Selecting
Attract an Effective Workforce
Maintain an Effective Workforce
Wage and salary
Benefits
Labor relations
Terminations
Develop an Effective Workforce
Training
Development
Appraisal

6. Environmental Influences on HRM
Competitive Strategy
Building Human Capital
Information Technology
Federal Legislation

7. Three Ways HR Is Changing1
Focus on building human capital 2
Development of global HR strategies IHRM 3
The using of information technology

8. Human Capital - IHRM
Human Capital = economic value of the knowledge, experience, skills, and capabilities of employees
IHRM = addresses the complexity that results from recruiting, selecting, developing, and maintaining a diverse workforce on a global scale

9. Information Technology
Human resource information technology = an integrated computer system designed to provide data and information used in HR planning and decision making
Traditional HR to e-HR significantly affected every area of human resource management
Some organizations are close to a paperless HRM system – saves time, money, frees staff

10. Federal Legislation
Discrimination = hiring or promoting of applicants based on criteria that are not job relevant
Affirmative action = policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups

11. Major Federal Laws - HRM
Exhibit 12.3
Equal Opportunity/Discrimination Laws
Compensation/Benefits Laws
Health/Safety Laws

12. The Changing Social Contract
New Contract
Old Contract
Employee
Employability, personal responsibility Partner in business improvement Learning
Job security A cog in the machine Knowing
Employer
Traditional compensation package Standard training program Routine jobs Limited information
Continuous learning, lateral career movement, incentive compensation Creative development opportunities Challenging assignments Information and resources
SOURCE: Based on Louisa Wah, “The New Workplace Paradox “ Management Review, January 1998,7; and Douglas T. Hall and Jonathan B. Moss, “The New Protean Career Contract: Helping Organizations and Employees Adapt,” Organizational Dynamics, winter 1998,

13. HR Issues in the New Workplace
Teams and Projects
Temporary Employees
Technology
Work-Life Balance
Downsizing

14. HR Issues in the New Workplace
Teams and Projects
Teams and Projects – major trend in today’s workplace
With emphasis on projects, distinctions between job categories and descriptions are collapsing
Many of today’s workers straddle functional & departmental boundaries; handle multiple tasks/responsibilities
Virtual team = made up of members who
are geographically or organizationally dispersed,
rarely meet face to face, and
do their work using advance information technologies.

15. HR Issues in the New Workplace
Temporary Employees
In opening years of the 21st century, largest employer in U.S. was a temporary employment agency, Manpower, Inc.
Temporary Employees do everything from data entry to interim CEO
Contingent workers = people who work for an organization, but not on a permanent or full-time basis, including temporary placements, contracted professionals, or leased employees

16. HR Issues in the New Workplace
Technology
Telecommuting and virtual teams are related trends
Telecommuting = using computers and telecommunications equipment to perform work from home or another remote location
Work anywhere - wireless Internet devices, laptops, cell phones, fax machines
Extreme telecommuting = people live nd work in countries far away from the organization’s physical location

17. HR Issues in the New Workplace
Work-Life Balance
Many European companies ahead of U.S. companies
Telecommuting is one way organizations help employees lead more balanced lives
Flexible scheduling important in today’s workplace – 27% of workforce/flexible hours
Broad Work-Life Balance initiatives – critical retention strategy – on-site gym & childcare, paid leaves & sabbaticals

18. HR Issues in the New Workplace
Downsizing
Downsizing = intentional, planned reduction in the size of a company’s workforce
Managers can smooth the downsizing process
Regularly communicating with employees
Providing them with as much information as possible
Providing assistance to workers who will lose their jobs
Using training and development for remaining employees

19. HR Issues in the New Workplace
HR issues present many challenges for organizations and HR managers as they work toward the three primary HR goals
Attracting
Developing
Maintaining an effective workforce

20. Attracting an Effective Workforce
Matching Model
Attracting an Effective Workforce
An employee selection approach in which the organization and the applicant attempt to match each other’s needs, interests, and values

21. Attracting an Effective Workforce
Choose Recruiting
Sources
Want ads
Headhunters
Internet
Select the
Candidate
Application
Interview
Tests
HR Planning
Retirements
Growth
Resignations
Welcome New
Employee
Company Needs
Strategic goals
Current & future competencies
Market changes
Employee turnover
Corporate culture
Employee Contributions
Ability
Education
Creativity
Commitment
Expertise
Matching Model
Match with
Company Inducements
Pay and benefits
Meaningful work
Advancement
Training
Challenge
Employee Needs
Stage of career
Personal values
Promotion aspirations
Outside interests
Family concerns
Match with

22. Human Resource Planning
Forecasting of human resource needs and the projected matching of individuals with expected vacancies
? = New technologies emerging
? = Volume of business likely next 5-10 years
? = Turnover rate, how much is avoidable, if any

23. Recruiting
Recruiting = activities or practices that define the desired characteristics of applicants for specific jobs
Internal – promote-from-within policies used by many to fill high-level positions
External = recruiting newcomers from outside has advantage of multiple sources
E-cruiting = use of Internet - fastest-growing approach to recruiting

24. Basic Building Blocks of HR Management
Job Analysis
Job Description
Job Specification

25. Selecting
Selection = process of determining the skills, abilities, and other attributes a person needs to perform a particular job
Validity = relationship between an applicant’s score on a selection device and his or her future job performance

26. Selecting
Application form - device used for collecting information about an applicant’s education, previous job experience, and other background characteristics
Research = biographical information inventories can validly predict future job success

27. Interviewing An Applicant
Know what you want
Prepare a road map
Use open-ended questions
Do not ask irrelevant questions
Do not rush interview
Do not rely on your memory

28. Reasons For Not Asking About Home Ownership
Might adversely affect applicants chances at the job
Minorities and women may be less likely to own a home
Home ownership is probably unrelated to job performance

29. Interview as Predictor of Success
Interview is not generally a valid predictor of job performance – has high face validity as a selection tool
Panel interviews – candidate meets with several interviewers who take turns asking questions – increases interview validity
Computer-based interviews - complement traditional interviewing information

30. Inappropriate or Illegal Questions
Employment Applications and Interviews
Race-related questions
Age
Religion
Gender
National origin
Marital/family status

31. Testing and Assessment
Employment Test = written or computer-based test designed to measure a particular attribute such as intelligence or aptitude
Assessment Center = technique for selecting individuals with high managerial potential based on their performances on a series of simulated managerial tasks

32. Developing an Effective Workforce
Following selection, next goal of HRM is to develop employees
Training and development = planned effort to facilitate employees’ learning of job-related skills and behaviors $100 billion/year
On-the-job training = an experienced employee “adopts” a new employee to teach him or her how to perform job duties
Cross training
Mentoring

33. Performance Appraisal
Process of observing and evaluating an employee’s performance, recording the assessment, and providing feedback to the employee
Steps
Observing and assessing performance
Recording the assessment
Providing feedback to employee

34. Making Performance Appraisals A Positive Force
The accurate assessment of performance through the development and application of assessment systems such as a rating scale
Training managers to effectively use the performance appraisal interview to provide feedback that reinforces good performance and motivate employee development

35. Assessing Performance Accurately
360° Feedback Process
Performance Evaluation Errors
Stereotyping
Halo effect
BARS – Behaviorally-anchored rating scale

36. Behaviorally Anchored Rating Scale
Job: Production Line Supervisor - Work Dimension: Work Scheduling
Develop a comprehensive schedule, observe target dates, and update the status of operations relative to plans, making schedule modifications as quickly as necessary
Have no plan or schedule of work and no concept of realistic due dates
Make a list of due dates and revise them but are frequently surprised by unforeseen events 1 2 3 4 5
Have a sound plan but neglect to keep trace of target dates or to report schedule slippages or other problems as they occur
Usually satisfy time constraints, with time and cost overruns coming up infrequently
Sources: Based on J.P. Campbell, M.D. Dunnette, R.D. Arvey, and L.V. Hellervik, “The Development and Evaluation of behaviorally Based Rating Scales,”Journal of Applied Psychology 57 (1973), 25-22; and Francine Alexander, ‘performance Appraisals,” Small Business Reports (March 2989),

37. Maintaining an Effective Workforce
Compensation
Wage and Salary Systems
Compensation Equity
Pay for Performance
Benefits
Termination
Ethical Dilemma: A Conflict of Responsibilities

38. Termination
Value of termination for maintaining an effective workforce is two fold
Employees who are poor performers can be dismissed
Employers can use exit interviews in a positive manner