1. HUMAN RESOURCE MANAGEMENT
Chapter 12
HUMAN
RESOURCE
MANAGEMENT
© 2003 Pearson Education Canada Inc.
12.1 1

2. LEARNING OBJECTIVES You should be able to:
Explain the strategic importance of human resource management
Describe the human resource management process
Differentiate between job descriptions and job specifications
Contrast recruitment and decruitment options
Describe the selection devices that work best with various kinds of jobs
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3. LEARNING OBJECTIVES (continued)
You should be able to:
Identify the various training categories
Explain the various approaches to performance appraisal
Describe what an organization’s compensation system should include
Discuss the current issues affecting human resource management
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4. WHY HUMAN RESOURCE MANAGEMENT IS IMPORTANT
All Managers Engage in Human Resource Management Activities
interview job candidates
orient new employees
evaluate work performance
Achieving competitive success through people requires a fundamental change in how manages think about employees
High performance work practices--work practices that lead to both high individual and high organizational performance
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5. EXAMPLES OF HIGH-PERFORMANCE WORK PRACTICES (Exhibit 12.1)
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6. HUMAN RESOURCE MANAGEMENT PROCESS
Necessary for staffing the organization and sustaining high employee performance
Identify and select competent employees
Provide up-to-date knowledge and skills
Retain competent, high performing employees
Influenced by the external environment
Labour union - represents workers and protects their interests through collective bargaining
Government regulations to assure equal employment opportunities
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7. HUMAN RESOURCE MANAGEMENT PROCESS (Exhibit 12.2)
Compensation
and
Benefits
Career
Development
Performance
Management
Human
Resource
Planning
Recruitment
Decruitment
Selection
Identification and selection
of competent employees
Orientation
Training
Adapted and competent
employees with up-to-date
skills and knowledge
Competent employees who
are capable of sustaining high
performance over the long term
Environment
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8. HUMAN RESOURCE PLANNING
Ensures:
That organization has the right number and kind of people in the right places and at the right time
Employees are capable of effectively and efficiently performing their assigned tasks
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9. HUMAN RESOURCE PLANNING (continued)
Current Assessment
Job analysis - defines jobs and the behaviors necessary to perform them
Job description - statement of what job holder does, how it is done, and why it is done
Job specification - statement of the minimum qualifications that a person must possess to perform a given job
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10. JOB ANALYSIS PROCESS Job Analysis Employee diaries Job ‘experts’
identify major
job characteristics
Job
Analysis
Direct observation
of the worker
Structured
questionnaire
Filming workers
on the job
Interviewing
employees
in groups
individually
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11. HUMAN RESOURCE PLANNING (continued)
Meeting Future Human Resource Needs
Determined by the organization’s goals and strategies
Demand for employees is a result of demand for the organization’s products and services
Comparison of current HR capabilities and future needs determines areas of overstaffing or understaffing
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12. RECRUITMENT AND DECRUITMENT
Process of locating, identifying, and attracting capable applicants
Choice of recruiting source determined by:
local labour market
type or level of position
size of the organization
Employee referrals typically produce the best applicants
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13. MAJOR SOURCES OF POTENTIAL JOB CANDIDATES (Exhibit 12.4)
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14. RECRUITMENT AND DECRUITMENT (continued)
Process of reducing the size of the organization’s workforce or restructuring its skill base
Used to meet the demands of a dynamic environment
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15. DECRUITMENT OPTIONS (Exhibit 12.5)
DESCRIPTION
OPTION
Firing
Layoffs
Attrition
Transfers
Reduced workweeks
Early retirements
Job sharing
Permanent involuntary termination
Temporary involuntary termination
Not filling openings
Moving employees to job openings
Working fewer hours per week
Providing incentives for people to
retire before normal retirement
Having employees share one full-
time job
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16. SELECTION Selection Process
Screening job applicants to ensure that the most appropriate candidates are hired
Prediction exercise to determine which applicants will be successful if hired
Selection decisions may be correct or incorrect
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17. © 2003 Pearson Education Canada Inc.
SELECTION DECISION OUTCOMES (Exhibit 12.6)
Accept
Reject
Selection Decision
Later Job Performance
Unsuccessful
Successful
Correct
Decision
Reject
Error
Accept
Error
Correct
Decision
© 2003 Pearson Education Canada Inc.
12.17 17

18. SELECTION (continued)
Validity
Degree to which there is a proven relationship between the selection device and some relevant criterion
Law prohibits the use of selection devices unless there is evidence that, once on the job, individuals with high test scores outperform those with low test scores
Organization has burden to provide evidence of validity
Reliability
Degree to which a selection device provides consistent measures
No selection device can be effective if it has low reliability
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19. SUGGESTIONS FOR INTERVIEWING (Exhibit 12.8)
1. Structure a fixed set of questions for all applicants
2. Have detailed information about the job
3. Minimize any prior knowledge about the applicant
4. Ask questions that require detailed answers about actual job
behaviors
5. Use a standardized evaluation form
6. Take notes during he interview
7. Avoid short interviews that encourage premature decision
making
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20. QUALITY OF SELECTION DEVICES AS PREDICTORS (Exhibit 12.10)
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21. ORIENTATION Work Unit Orientation
Familiarizes new employee with goals of the work unit
Organization orientation
Informs new employee about the organization’s objectives, history, procedure, and rules
Successful orientation
May be formal or informal
Makes new member feel comfortable, lowers likelihood of poor performance and resignations
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22. TRAINING Skill Categories
As jobs change, employee skills have to be updated
Technical skills - basic and job-specific competencies
Interpersonal skills - ability to interact effectively
Problem-solving skills - useful in non-routine jobs
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23. PERFORMANCE Performance Management System
Process of establishing standards and appraising employee performance
Performance Appraisal Methods
Each method has advantages and disadvantages
Written essay - written description of employee’s strengths and weaknesses
Critical incidents - focus is behaviour that defines effective and ineffective performance
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24. PERFORMANCE (continued)
Performance Appraisal Methods (continued)
Graphic rating scale - list of performance factors
Behaviourally anchored rating scale (BARS) - critical incident and graphic rating scale approaches combined
Multiple comparisons - compares one person’s performance with that of one or more others
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25. PERFORMANCE (continued)
Performance Appraisal Methods (continued)
Objectives - employees evaluated by how well they accomplish a specific set of goals
Management By Objectives (MBO) - preferred method of appraising managers and professional employees
360 degree feedback - utilizes feedback from supervisors, employees, and coworkers
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26. COMPENSATION (WAGES AND BENEFITS)
Goals of Compensation Programs
Attract and retain competent and talented individuals
Positively impact organization’s strategic performance
Skill-based pay
Rewards employees for their job skills and competencies
Job title doesn’t define pay category
Mesh nicely with the changing nature of jobs
Trends in compensation
Make pay systems more flexible
Reduce the number of pay levels
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27. © 2003 Pearson Education Canada Inc.
FACTORS THAT INFLUENCE COMPENSATION/BENEFITS (Exhibit 12.13)
Employee’s
tenure and
performance
Company
profitability
Kind of job
performed
Size of
company
Level of
Compensation
and
Benefits
Kind of
business
Geographical
location
Unionization
Management
philosophy
Labour or
capital-intensive
© 2003 Pearson Education Canada Inc.
12.27 27

28. CAREER DEVELOPMENT Career
Sequence of positions held by a person during her or his lifetime
The Way It Was
Employees advanced their work lives within a single organization
Career development was a way to attract and retain quality employees
Uncertainty brought organizational changes that undermine principles of traditional career development
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29. CAREER DEVELOPMENT (continued)
You and Your Career Today
Boundaryless career - individual, not organization, responsible for career
Career choice - optimally offers the best match between person’s aspirations and her or his abilities and market opportunities
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30. © 2003 Pearson Education Canada Inc.
SOME SUGGESTIONS FOR A SUCCESSFUL MANAGEMENT CAREER (Exhibit 12.14)
12.30
© 2003 Pearson Education Canada Inc. 30

31. CURRENT ISSUES IN HUMAN RESOURCE MANAGEMENT
Managing Workforce Diversity
Recruitment - recruiting net must be widened
Use nontraditional recruitment sources
Outreach will broaden applicant pool
Selection - process must not discriminate
Must accommodate needs of diverse applicants
Orientation and training - transition often more challenging for some groups
Workshops to raise diversity awareness issues
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32. CURRENT ISSUES IN HUMAN RESOURCE MANAGEMENT (continued)
Sexual Harassment
Any unwanted activity of a sexual nature that affects an individual’s employment
Harassment creates an unpleasant work environment and undermines workers’ ability to perform their jobs
Illegal behaviour includes verbal or physical conduct toward an individual
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33. CURRENT ISSUES IN HUMAN RESOURCE MANAGEMENT (continued)
Work-life Balance
Employees can’t (and don’t) leave their families and personal lives when they walk into work
Managers can’t be sympathetic with every detail of an employee’s family life
Family-friendly benefits - provide some help in dealing with family problems
Dual-career couples - both partners have occupations
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