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Chapter 11: Human Resource Management

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1 Chapter 11: Human Resource Management
PowerPoint Presentation to Accompany Management, 9/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 9/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 9/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 9/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 9/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 Management 9/e - Chapter 11

7 Study Question 1: What is human resource management?
Affirmative action Setting goals and having plans to ensure equal employment opportunity for protected groups. Bona fide occupational qualifications Management 9/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 Management 9/e - Chapter 11

9 Figure 11.1 A sample of U.S. laws against employment discrimination.
Management 9/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 9/e - Chapter 11

11 Study Question 1: What is human resource management?
Sampler of illegal/inappropriate interview questions Age – How old are you? [OK: Are you over 18?] Religion – Do you practice a religion? [OK: Nothing] National origin – What country are you from? [OK: Are you authorized to work in the US?] Family – Are you married? [OK: Would you be willing to relocate? Do you plan to have children?] Management 9/e - Chapter 11

12 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 9/e - Chapter 11

13 Figure 11.2 Steps in strategic human resource planning.
Management 9/e - Chapter 11

14 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 9/e - Chapter 11

15 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 9/e - Chapter 11

16 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 9/e - Chapter 11

17 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 9/e - Chapter 11

18 Management 9/e - Chapter 11
Figure 11.3 Steps in the selection process: the case of a rejected job applicant. Management 9/e - Chapter 11

19 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 9/e - Chapter 11

20 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 9/e - Chapter 11

21 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 9/e - Chapter 11

22 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 9/e - Chapter 11

23 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. Management 9/e - Chapter 11

24 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. Management 9/e - Chapter 11

25 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. Management 9/e - Chapter 11

26 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. Management 9/e - Chapter 11

27 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 9/e - Chapter 11

28 Study Question 2: How do organizations attract 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 9/e - Chapter 11

29 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 Management 9/e - Chapter 11

30 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 9/e - Chapter 11

31 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. Management 9/e - Chapter 11

32 Management 9/e - Chapter 11
Figure 11.4 Sample behaviorally anchored rating scale for performance appraisal. Management 9/e - Chapter 11

33 Study Question 4: How do organizations maintain 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. Management 9/e - Chapter 11

34 Study Question 4: How do organizations maintain 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. Management 9/e - Chapter 11

35 Study Question 4: How do organizations maintain a quality workforce?
Critical-incident techniques Keeping a running log or inventory of effective and ineffective behaviors. Documents success or failure patterns. Management 9/e - Chapter 11

36 Study Question 4: How do organizations maintain 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 Management 9/e - Chapter 11

37 Study Question 4: How do organizations maintain 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. Management 9/e - Chapter 11

38 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. Management 9/e - Chapter 11

39 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 Management 9/e - Chapter 11

40 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 Management 9/e - Chapter 11

41 Study Question 4: How do organizations maintain a quality workforce?
Compensation and benefits (cont.) Family-friendly benefits Help in balancing work and nonwork responsibilities Employee assistance programs Help employees deal with troublesome personal problems. Management 9/e - Chapter 11

42 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. Termination. Management 9/e - Chapter 11

43 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. Management 9/e - Chapter 11

44 Management 9/e - Chapter 11
Figure 11.5 The traditional adversarial view of labor-management relations. Management 9/e - Chapter 11

45 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. Management 9/e - Chapter 11

46 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 9/e - Chapter 11

47 COPYRIGHT Copyright 2008 © John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that named in Section 117 of the United States Copyright Act without the express written permission of the copyright owner is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.


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