1. Ryerson University, Toronto, Ontario
PowerPoint Presentation to Accompany Management Third Canadian Edition John R. Schermerhorn, Jr. Barry Wright
Prepared by: Jim LoPresti
University of Colorado, Boulder
Revised by: Dr. Shavin Malhotra
Ryerson University, Toronto, Ontario 1

2. Chapter 10: Human Resource Management
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3. Chapter 10 Learning Objectives
10.1 Describe human resource management.
10.2 Explain how organizations attract a quality workforce.
10.3 Explain how organizations develop a quality workforce.
10.4 Explain how organizations maintain a quality workforce.
10.5 Describe the links between organization culture and diversity.
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4. 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 labour-management relations.
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5. Human Resource Management
Strategic human resource management mobilizes human capital through the HRM (human resource management) process to best implement organizational strategies
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6. Human Resource Management
Challenges in managing a global workforce
Keeping track of expertise
Availability of visas for foreign workers
Discrimination in employment
Occurs when someone is denied a job or job assignment for reasons that are not job relevant.
Employment equity
The right to employment without regard to race, color, national origin, religion, gender, age, or physical or mental ability.
Canadian Human Rights Act of 1977
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7. Human Resource Management
Current legal issues in HRM
Sexual harassment
Equal pay and comparable worth
Pregnancy discrimination
Legal status of independent contractors
Workplace privacy
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8. Attracting 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.
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9. Figure 10.2 Steps in strategic human resource planning.
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10. Attracting 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
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11. Attracting 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.
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12. Attracting 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.
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13. Attracting 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.
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14. Figure 10.3 Steps in the selection process: the case of a rejected job applicant.
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15. Attracting 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.
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16. Attracting 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.
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17. Attracting 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
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18. Attracting 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.
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19. Attracting 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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20. Attracting a Quality Workforce
Behaviourally-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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21. Attracting 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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22. Attracting 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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23. Attracting 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.
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24. Developing a Quality Workforce
Orientation
Set of activities designed to familiarize new employees with their jobs, coworkers, and key aspects of the organization.
Socialization
Process of influencing the expectations, behaviour, and attitudes of a new employee in a way considered desirable by the organization.
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25. Developing 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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26. Developing 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.
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27. Developing 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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28. Developing 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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29. Developing a Quality Workforce
Behaviourally anchored rating scales (BARS)
Describes actual behaviours 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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30. Figure 10.6 Sample behaviourally anchored rating scale for performance appraisal.
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31. Developing a Quality Workforce
Critical-incident techniques
Keeping a running log or inventory of effective and ineffective behaviours.
Documents success or failure patterns.
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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32. Developing 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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33. Maintaining 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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34. Maintaining a Quality Workforce
Compensation and benefits: base compensation—salary or hourly wages
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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35. Maintaining 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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36. Maintaining 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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37. Maintaining a Quality Workforce
Compensation and benefits
Fringe benefits
Include non-monetary forms of compensation
Family-friendly benefits
Help in balancing work and non-work responsibilities
Employee assistance programs
Help employees deal with troublesome personal problems.
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38. Maintaining 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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39. Maintaining a Quality Workforce
Labour-management relations
Labour unions deal with employers on the workers’ behalf.
Labour 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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40. Maintaining a Quality Workforce
Labour-management relations
Collective bargaining – process of negotiating, administering, and interpreting a labour contract
Two-tier wage system – pays new hires less than workers already doing the same work with more seniority
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41. Figure 10.8 The traditional adversarial view of labour-management relations.
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42. Organizational Culture and Diversity
Organizational culture: “the way we do things here” – helps to distinguish them from one another and bind members together with some sense of collective identity
Socialization: builds strong cultures by acclimating new members
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43. Organizational Culture and Diversity
Strong cultures:
Commit members to do things that are in the best interests of the organization
Discourage dysfunctional work behaviour
Encourage functional work behaviour
The best organizations have strong cultures that:
Are performance-oriented
Emphasize teamwork
Allow for risk taking
Encourage innovation
Value the well being of people
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44. Figure 10.9 Levels of organizational culture—observable culture and core culture in the organizational “iceberg.”
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45. Organizational Culture and Diversity
What is observable culture?
What one sees and hears when walking around an organization.
Elements of observable culture:
Heroes
Stories
Rites and rituals
Symbols
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46. Organizational Culture and Diversity
What is the core culture?
Underlying assumptions and beliefs that influence behaviour and contribute to the observable culture.
Core culture and values:
Core values are beliefs and values shared by organization members
Strong cultures have a small but enduring set of core values.
Commitment to core values is a key to long- term success.
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47. Organizational Culture and Diversity
Diagnostic questions for assessing cultural differences:
How tight or loose is the structure?
Are decisions change oriented or driven by the status quo?
What outcomes or results are most highly valued?
What is the climate for risk taking, innovation?
How widespread is empowerment, worker involvement?
What is the competitive style, internal and external?
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48. Organizational Culture and Diversity
Value-based management:
Describes managers who actively help to develop, communicate, and enact shared values.
Criteria for evaluating core values:
Relevance
Integrity
Pervasiveness
Strength
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49. Organizational Culture and Diversity
Workplace spirituality:
Practices that create meaning and shared community among organizational members.
Sample values include:
Meaningful purpose
Trust and respect
Honesty and openness
Personal growth and development
Worker friendly practices
Ethics and social responsibility
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50. Organizational Culture and Diversity
Symbolic leadership
Symbolic leaders use symbols well to establish and maintain a desired organizational culture.
Symbolic leaders behave in ways that espouse organization’s values.
Symbolic leaders:
Use language metaphors
Highlight and dramatize core values and observable culture
Use rites and rituals to glorify performance
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51. Organizational Culture and Diversity
Multicultural organizations
Based on pluralism, operating with inclusion and respect for diversity
Multiculturalism
involves pluralism and respect for diversity
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52. Organizational Culture and Diversity
Characteristics of multicultural organizations:
Pluralism
Structural integration
Informal network integration
Absence of prejudice and discrimination
Minimum intergroup conflict
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53. Organizational Culture and Diversity
Organizational subcultures
Cultures based on shared work responsibilities and/or personal characteristics.
Ethnocentrism is the belief that one’s subculture is superior to all others
Common subcultures include:
Occupations and Functions
Ethnicity and National
Gender and Generations
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54. Organizational Culture and Diversity
Challenges faced by minorities and women:
Glass ceiling
Misunderstanding and lack of sensitivity
Sexual harassment
Pay discrimination
Job discrimination
Minorities may adapt by exhibiting biculturalism— adopting characteristics of the majority culture
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55. Figure 10.10 Glass ceilings as barriers to women and minority cultures in traditional organizations.
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56. Organizational Culture and Diversity
Diversity leadership approaches:
Managing diversity commits to building an organizational culture that allows all members to reach their full potential.
Affirmative action commits the organization to hiring and advancing minorities and women.
Valuing diversity commits the organization to education and training programs.
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57. COPYRIGHT
Copyright © 2014 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein. 57