1. Management, 7e Schermerhorn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc

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3. Schermerhorn -- Chapter 123 Chapter 12 Human Resource Management  Planning ahead—study questions –Why do people make the difference? –What is strategic human resource management? –How do organizations attract a quality workforce? –How do organizations develop a quality workforce? –How do organizations maintain a quality workforce?

4. Schermerhorn -- Chapter 124 Why do people make the difference?  People drive the organizational system.  People are essential in realizing high performance aspirations.  Organizations that mange people well also succeed economically.  People are key to organizational success or failure.  Investing in people produces future returns.  Hiring and and retaining talented people are essential for competitiveness in the 21 st century.

5. Schermerhorn -- Chapter 125 Why do people make the difference?  Diversity provides an advantage by … –Enabling organizations to better respond to pressures for change and performance. –Securing the best talent. –Fully tapping the potential of the best talent.

6. Schermerhorn -- Chapter 126 Why do people make the difference?  Building high performance work environments depends on having people with the following qualities: –Work ethic –Ambition and energy –Knowledge –Creativity –Motivation –Sincerity –Outlook –Collegiality and collaborativeness –Curiosity –Judgment and maturity –Integrity

7. Schermerhorn -- Chapter 127 What is strategic human resource management?  Human resource management –Involves attracting, developing, and maintaining a talented and energetic workforce to support the organization’s mission, objectives, and strategies. –Is a strategic process.

8. Schermerhorn -- Chapter 128 What is strategic 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.  Affirmative action –Giving preference in hiring and promotion of women and minorities.

9. Schermerhorn -- Chapter 129 What is strategic human resource management?  Laws against employment discrimination –Title VII of the Civil Rights Act of 1964 –Equal Employment Opportunity Act of 1972 –Civil Rights Act (EEOA) of 1991 –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

10. Schermerhorn -- Chapter 1210 What is strategic human resource management?  Current legal issues in HRM –Sexual harassment –Equal pay and comparable worth –Legal status of independent contractors –Labor-management relations

11. Schermerhorn -- Chapter 1211 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 career planning and development –Maintaining a quality workforce Management of employee retention and turnover, performance appraisal, and compensation and benefits

12. Schermerhorn -- Chapter 1212 What is strategic human resource management?  Strategic human resource management –Applies the HRM process to ensure the effective accomplishment of organizational mission and strategies.  Human resource planning –The process of analyzing staffing needs and planning how to satisfy these needs in a way that best serves organizational mission, objectives, and strategies.

13. Schermerhorn -- Chapter 1213 What is strategic human resource management?  Steps in the human resource planning process: –Step 1—review organizational mission, objectives, and strategies. –Step 2—review human resource objectives and strategies. –Step 3—assess current human resource needs. –Step 4—forecast human resource needs. –Step 5—develop and implement human resource plans.

14. Schermerhorn -- Chapter 1214 What is strategic human resource management?  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

15. Schermerhorn -- Chapter 1215 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.

16. Schermerhorn -- Chapter 1216 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.

17. Schermerhorn -- Chapter 1217 How do organizations attract a quality workforce?  Selection –Choosing from a pool of applicants the person or persons who offer 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

18. Schermerhorn -- Chapter 1218 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.

19. Schermerhorn -- Chapter 1219 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.

20. Schermerhorn -- Chapter 1220 How do organizations attract a quality workforce?  Step 2—interviews –Exchange of information between job candidate and key members of the organization. –Guidelines for conducting interviews: Plan ahead. Create a good interview climate. Conduct a goal-oriented interview. Avoid questions that may imply discrimination. Answer the questions asked of you … and others that may not be asked. Take notes.

21. Schermerhorn -- Chapter 1221 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 Aptitudes Personality Interests

22. Schermerhorn -- Chapter 1222 How do organizations attract a quality workforce?  Step 3—employment tests –Assessment center Evaluates a person’s potential by observing his/her performance in simulated work situations. –Work sampling Evaluates a person’s performance on a set of tasks that replicate those required in the job under consideration.

23. Schermerhorn -- Chapter 1223 How do organizations attract a quality workforce?  Step 4—reference and background checks –Inquiries to previous employers, academic advisors, coworkers and/or acquaintances regarding: Qualifications Experience Past work records –Provides information that cannot be discovered elsewhere in selection process.

24. Schermerhorn -- Chapter 1224 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.

25. Schermerhorn -- Chapter 1225 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.

26. Schermerhorn -- Chapter 1226 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.

27. Schermerhorn -- Chapter 1227 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

28. Schermerhorn -- Chapter 1228 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.

29. Schermerhorn -- Chapter 1229 How do organizations develop a quality workforce?  Performance appraisal –Formally assessing someone’s work accomplishments and providing feedback. –Purposes of performance appraisal: Evaluation—let people know where they stand relative to objectives and standards. Development—assist in training and continued personal development of people.

30. Schermerhorn -- Chapter 1230 How do organizations develop a quality workforce?  Graphic rating scales –Checklists of traits or characteristics thought to be related to high performance in a given job. –Relatively quick and easy to use. –Questionable reliability and validity.

31. Schermerhorn -- Chapter 1231 How do organizations develop a quality workforce?  Behaviorally anchored rating scales (BARS) –Explicit descriptions of 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.

32. Schermerhorn -- Chapter 1232 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.

33. Schermerhorn -- Chapter 1233 How do organizations develop a quality workforce?  Multi-person comparisons –Formally compare one person’s performance with that of one or more others. –Types of multi-person comparisons: Rank ordering Paired comparisons Forced distributions

34. Schermerhorn -- Chapter 1234 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.

35. Schermerhorn -- Chapter 1235 How do organizations maintain a quality workforce?  Basic career development concepts … –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—process of systematically 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 work responsibility.

36. Schermerhorn -- Chapter 1236 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

37. Schermerhorn -- Chapter 1237 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 Termination

38. Schermerhorn -- Chapter 1238 How do organizations maintain a quality workforce?  Guidelines for handling a dismissal: –Dismissals can be personally devastating and managers should be appropriately sensitive. –Dismissals should be legally defensible and adhere to organizational policies. –Dismissals should not be delayed unnecessarily. –Dismissals should include offers of assistance.

39. Schermerhorn -- Chapter 1239 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

40. Schermerhorn -- Chapter 1240 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 aspects and conditions of employment

41. Schermerhorn -- Chapter 1241 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.

42. Schermerhorn -- Chapter 1242 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