1. Chapter 11: Human Resource Management
PowerPoint Presentation to Accompany Management, 10/e John R. Schermerhorn, Jr.
Chapter 11: Human Resource Management
Prepared by: Jim LoPresti
University of Colorado, Boulder
Published by: John Wiley & Sons, Inc.

2. Planning Ahead — Chapter 11 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 10/e - Chapter 11

3. Study Question 1: What is human resource management?
Human capital is essential to any organization’s long-term performance success.
Social contract is the expectations of the employer-employee relationship.
Organizations perform better when they treat their employees better.
Human resources are key to organizational success or failure.
Management 10/e - Chapter 11

4. Study Question 1: What is human resource management?
Social contract is the expectations of the employer-employee relationship.
Strategic human resource management mobilizes human capital through the HRM (human resource management) process to best implement organizational strategies
Management 10/e - Chapter 11

5. 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 10/e - Chapter 11

6. Study Question 1: What is human resource management?
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
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7. 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.
Management 10/e - Chapter 11

8. Study Question 1: What is human resource management?
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
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9. Figure 11.1 A sample of U.S. laws against employment discrimination.
Management 10/e - Chapter 11

10. Study Question 1: What is human resource management?
Current legal issues in HRM
Sexual harassment
Equal pay and comparable worth
Legal status of independent contractors
Workplace privacy
Management 10/e - Chapter 11

11. 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.
Steps in the HR planning process:
Step 1 — review organizational mission, objectives, and strategies.
Step 2 — review HR objectives and strategies.
Step 3 — assess current HR needs.
Step 4 — forecast HR needs.
Step 5 — develop and implement HR plans.
Management 10/e - Chapter 11

12. Figure 11.2 Steps in strategic human resource planning.
Management 10/e - Chapter 11

13. Study Question 2: How do organizations attract a quality workforce?
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 10/e - Chapter 11

14. 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 10/e - Chapter 11

15. 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 10/e - Chapter 11

16. 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.
Selection Steps
Completion of a formal application form.
Interviewing.
Testing.
Reference checks.
Physical examination.
Final analysis and decision to hire or reject.
Management 10/e - Chapter 11

17. Management 10/e - Chapter 11
Figure 11.3 Steps in the selection process: the case of a rejected job applicant.
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18. Study Question 2: How do organizations attract a quality workforce?
Step 1—Application Forms
Declares individual to be a job candidate.
Documents applicant’s personal history and qualifications.
Personal résumés may be included.
Applicants lacking appropriate credentials are rejected at this step.
Management 10/e - Chapter 11

19. Study Question 3: How do organizations attract a quality workforce?
Step 2—Interviews
Exchange of information between job candidate and key members of the organization.
Opportunity for job candidate and organizational members to learn more about each other.
Management 10/e - Chapter 11

20. Study Question 2: How do organizations attract a quality workforce?
Step 3 — Employment Tests
Used to further screen applicants by gathering additional job-relevant information.
Common types of employment tests:
Intelligence
Aptitude
Personality
Interests
Management 10/e - Chapter 11

21. Study Question 2: How do organizations attract a quality workforce?
How to succeed in a telephone interview
Be prepared ahead of time.
Take the call in private.
Dress professionally.
Practice your interview voice.
Have reference materials handy.
Have a list of questions ready.
Ask what happens next.
Management 10/e - Chapter 11

22. Study Question 2: How do organizations attract a quality workforce?
Criteria for selection devices:
Reliability
The selection device is consistent in measurement.
Validity
There is a demonstrable relationship between a person’s score or rating on a selection device and his/her eventual job performance.
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23. Study Question 2: How do organizations attract a quality workforce?
Behaviorally-oriented employment tests:
Assessment center
Evaluates a person’s performance in simulated work situations.
Work sampling
Evaluates a person’s performance on actual job tasks.
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24. Study Question 2: How do organizations attract a quality workforce?
Step 4 — Reference and Background Checks
Inquiries to previous employers, academic advisors, coworkers and/or acquaintances regarding applicant’s:
Qualifications.
Experience.
Past work records.
Can better inform potential employer.
Can enhance candidate’s credibility.
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25. Study Question 2: How do organizations attract a quality workforce?
Step 5 — Physical Examinations
Ensure applicant’s physical capability to fulfill job requirements.
Basis for enrolling applicant in life, health, and disability insurance programs.
Drug testing is done at this step.
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26. Study Question 2: How do organizations attract a quality workforce?
Step 6 — Final Decision to Hire or Reject
Best selection decisions will involve extensive consultation among multiple parties.
Selection decision should focus on all aspects of the candidate’s capacity to perform the designated job.
Management 10/e - Chapter 11

27. 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 10/e - Chapter 11

28. Study Question 3: How do organizations develop a quality workforce?
Training
A set of activities that provides the opportunity to acquire and improve job-related skills.
On-the-job training
Job rotation
Coaching
Mentoring
Modeling
Off-the-job training
Management development
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29. 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.
Management 10/e - Chapter 11

30. Study Question 3: How do organizations develop a quality workforce?
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.
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31. Study Question 3: How do organizations develop a quality workforce?
Graphic rating scales
Uses checklists of traits or characteristics to evaluate performance.
Relatively quick and easy to use.
Questionable reliability and validity.
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32. Study Question 3: How do organizations develop a quality workforce?
Behaviorally anchored rating scales (BARS)
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.
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33. Management 10/e - Chapter 11
Figure 11.4 Sample behaviorally anchored rating scale for performance appraisal.
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34. 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.
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35. Study Question 3: How do organizations develop a quality workforce?
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
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36. Study Question 3: How do organizations develop a quality workforce?
Alternatives to supervisory appraisal:
Peer appraisal
Occurs when people who work regularly and directly with a jobholder are involved in the appraisal.
Upward appraisal
Occurs when subordinates reporting to the jobholder are involved in the appraisal.
360° feedback
Occurs when superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholder’s performance.
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37. Study Question 4: How do organizations maintain a quality workforce?
Career development
Career — a sequence of jobs that constitute what a person does for a living.
Career path — a sequence of jobs held over time during a career.
Career planning —matching career goals and individual capabilities with opportunities for their fulfillment.
Career plateau — a position from which someone is unlikely to move to a higher level of responsibility.
Progressive employers seek ways to engage plateaued employees.
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38. Study Question 4: How do organizations maintain a quality workforce?
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
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39. Study Question 4: How do organizations maintain a quality workforce?
Compensation and benefits
Base compensation
Salary or hourly wages
Fringe benefits
Additional non-wage or non-salary forms of compensation
Flexible benefits
Employees can select a set of benefits within a certain dollar amount
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40. Study Question 4: How do organizations maintain a quality workforce?
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.
May not succeed due to weakness in performance appraisal system or lack of consistency in application.
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41. Study Question 4: How do organizations maintain a quality workforce?
Incentive compensation systems:
Skill-based pay.
Links pay to the number of job-relevant skills an employee masters.
Bonus pay plans.
One-time or lump-sum payments based on the accomplishment of specific performance targets or some extraordinary contribution.
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42. Study Question 4: How do organizations maintain a quality workforce?
Incentive compensation systems:
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.
Employee stock ownership plans.
Employees own stock in the company that employs them.
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43. Study Question 4: How do organizations maintain a quality workforce?
Compensation and benefits
Family-friendly benefits
Help in balancing work and nonwork responsibilities
Employee assistance programs
Help employees deal with troublesome personal problems.
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44. Study Question 4: How do organizations maintain a quality workforce?
Retention and turnover
Replacement is the management of promotions, transfers, terminations, layoffs, and retirements.
Replacement decisions relate to:
Shifting people between positions within the organization.
Retirement.
Early retirement incentive programs
Termination.
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45. Study Question 4: How do organizations maintain a quality workforce?
Labor-management relations
Labor unions deal with employers on the workers’ behalf.
Labor contracts specify the rights and obligations of employees and management regarding:
Wages.
Work hours.
Work rules.
Seniority.
Hiring.
Grievances.
Other conditions of employment.
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46. Study Question 4: How do organizations maintain a quality workforce?
Labor-management relations
Collective bargaining – process of negotiating, administering, and interpreting a labor contract
Two-tier wage system – pays new hires less than workers already doing the same work with more seniority
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47. Management 10/e - Chapter 11
Figure 11.5 The traditional adversarial view of labor-management relations.
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48. Study Question 4: How do organizations maintain a quality workforce?
Legislation governing labor-management relations
National Labor Relations Act of 1935
Recognizes employees’ right to unionize and engage in union activities.
Taft-Hartley Act of 1947
Protects employers from unions’ unfair labor practices and permits union decertification.
Civil Services Reform Act of 1978
Clarifies rights of civil servants to unionize.
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49. Study Question 4: How do organizations maintain a quality workforce?
Unions can create difficulties for management by…
Striking
Boycotting
Picketing
Management can create difficulties for unions by…
Using lockouts
Hiring strike-breakers
Seeking injunctions
Management 10/e - Chapter 11

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