1. Managing Human Resources
Chapter 12
Managing Human Resources

2. The Strategic Role of HRM
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

3. 12.1 Top Three Factors for Maintaining Competitive Success

4. 12.2 Strategic Human Resource Management

5. Building Human Capital to Drive Performance
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

6. 12.3 The Role and Value of Human Capital Investments

7. The Impact of Federal Legislation on HRM
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

8. The Impact of Federal Legislation on HRM
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

9. 12.4 Major Federal Laws Related to Human Resource Management

10. The Changing Nature of Careers
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

11. 12.5 The Changing Social Contract

12. Innovations in HRM 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

13. Finding the Right People
Using the matching model, the organization and the individual attempt to match the needs, interests, and values that they offer each other

14. 12.6 Attracting an Effective Workforce

15. Human Resource Planning
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?

16. Recruiting (Talent Acquisition)
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

17. Recruiting (Talent Acquisition)
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

18. 12.7 Sara Lee’s Required Skills for Finance Executives

19. Selecting Employers assess applicants for a “fit”
HR professionals us a combination of devices:
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
Employment Tests
Cognitive ability tests
Physical ability tests
Personality tests
Brain teasers
Assessment Center
Work sample tests
Online Checks

20. 12.8 Employment Applications and Interviews: What Can You Ask?

21. 12.9 Interview Brain Teasers

22. Development involves teaching broader skills
Developing Talent
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
Development involves teaching broader skills

23. 12.10 Methods and Goals of Training

24. Performance Appraisal
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

25. Performance Appraisal
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

26. 12.11 - Example of a Behaviorally Anchored Rating Scale

27. Compensation
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

28. Benefits
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

29. Rightsizing the Organization
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

30. Termination
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