1. Management 11e John Schermerhorn
Chapter 12 Human Resource Management

2. Planning Ahead — Chapter 12 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 11e Chapter 12

3. Study Question 1: What is human resource management?
Human Resource Management is a process of attracting, developing, and maintaining a talented work force
Human capital is the economic value of people with job-relevant abilities, knowledge, ideas, energies and commitments
Human Resource Management
Attracting talented employees
Developing talented employees
Keeping talented employees
Management 11e Chapter 12

4. 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 11e Chapter 12

5. Study Question 1: What is human resource management?
Person-job fit
The individual’s skills, interests, and personal characteristics are consistent with the requirements of work
Person-organization fit
The individuals values, interests, and behavior are consistent with the culture of the organization
Management 11e Chapter 12

6. Study Question 1: What is human resource management?
Strategic human resource management mobilizes human capital to implement organizational strategies
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

7. Figure 12.1 A sample of U.S. laws against employment discrimination
Management 11e Chapter 12

8. 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
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
Current legal issues in HRM
Sexual harassment
Equal pay and comparable worth
Legal status of independent contractors
Workplace privacy
Management 11e Chapter 12

9. 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
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 11e Chapter 12

10. Figure 12.2 Steps in strategic human resource planning
Management 11e Chapter 12

11. 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 11e Chapter 12

12. 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 11e Chapter 12

13. 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
Management 11e Chapter 12

14. Study Question 2: How do organizations attract a quality workforce?
Selection process
Screening applicant information
Interview or site visit
Employment testing
Preemployment checks
Management 11e Chapter 12

15. Figure 12.3 Steps in the selection process: the case of a rejected job applicant
Management 11e Chapter 12

16. Study Question 2: How do organizations attract a quality workforce?
Reliability means that a selection device gives consistent results time after time
Validity means that there is a clear relationship between what the selection device measures and job performance
Interviews
Unstructured interviews do not follow a formal and pre-established of questions
Behavioral interviews ask job applicants about past behaviors that relate to the job
Situational interviews ask job applicants how they would react in specific situations
Management 11e Chapter 12

17. Study Question 2: How do organizations attract a quality workforce?
Employment Tests
Used to further screen applicants by gathering additional job-relevant information
Assessment centers examine how job candidates handle simulated work situations
Work sampling involves observing applicants performing actual work tasks
Biodata methods collect biographical information that has been proven to correlate with good job performance along with other traits such as
Value judgments
Aspirations
Motivations
Attitudes
Expectations
Management 11e Chapter 12

18. 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 11e Chapter 12

19. Study Question 3: How do organizations develop a quality workforce?
Training
Activities that provide 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 11e Chapter 12

20. 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
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 11e Chapter 12

21. Study Question 3: How do organizations develop a quality workforce?
Graphic rating scales
A trait-based performance appraisal that includes checklists of traits or characteristics to evaluate performance
Relatively quick and easy to use
Questionable reliability and validity
Behaviorally anchored rating scales (BARS)
A behavior-based performance appraisal that 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 11e Chapter 12

22. Figure 12.4 Sample behaviorally anchored rating scale for performance appraisal
Management 11e Chapter 12

23. Study Question 3: How do organizations develop a quality workforce?
Recency bias is the tendency for evaluators to focus on recent behaviors instead of behavior that occurred throughout the evaluation period
Management 11e Chapter 12

24. 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
Results-based performance appraisals focus on accomplishments
Usually qualitative and objective
Determining what to measure may be difficult
May create ethical problems
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 11e Chapter 12

25. Study Question 3: How do organizations develop a quality workforce?
360° feedback
Occurs when superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholder’s performance
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 11e Chapter 12

26. Study Question 4: How do organizations maintain a quality workforce?
Compensation and benefits
Base compensation: Salary or hourly wages
Flexible benefits
Employees can select a set of benefits within a certain dollar amount
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
Management 11e Chapter 12

27. Study Question 4: How do organizations maintain a quality workforce?
Bonus pay plans
One-time payments based on the accomplishment of specific performance targets or some extraordinary contribution
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
Management 11e Chapter 12

28. Study Question 4: How do organizations maintain a quality workforce?
Employee stock ownership plans
Employees purchase company stock directly through employer, sometimes at a discount
Stock options
Employees have the right to purchase company stock at a fixed price in the future as a performance incentive
Benefits: Non-monetary forms of compensation
Required
Social security
Unemployment insurance
Worker’s compensation
Not required. Health insurance. Retirement plans
And Paid time off
Management 11e Chapter 12

29. Study Question 4: How do organizations maintain a quality workforce?
Flexible benefits
Allow employees to choose from a set of benefits
Family-friendly benefits
Help in balancing work and nonwork responsibilities
Employee assistance programs
Help employees deal with troublesome personal problems
Retention
Keeping well trained and productive employees
Turnover
management of promotions, transfers, terminations, layoffs, and retirements
Management 11e Chapter 12

30. Study Question 4: How do organizations maintain a quality workforce?
Early retirement
Financial incentive offered to employees who retire early
Termination
Involuntary dismissal of an employee
Labor-management relations
Labor unions deal with employers on the workers’ behalf
Collective bargaining
Process of negotiating, administering and interpreting a labor contract
Management 11e Chapter 12

31. Study Question 4: How do organizations maintain a quality workforce?
Employment-at-will
Employees can be terminated at any time for any reason
Wrongful discharge
Workers have legal protection from discriminatory firings
Labor-management relations
Labor unions deal with employers on the workers’ behalf
Collective bargaining
Process of negotiating, administering and interpreting a labor contract
Management 11e Chapter 12

32. Study Question 4: How do organizations maintain a quality workforce?
Labor contracts may determine
Wages
Work hours
Work rules
Seniority
Hiring
Grievances
Other conditions of employment
Management 11e Chapter 12

33. The traditional adversarial view of labor-management relations
Management 11e Chapter 12

34. Netflix: Making Movie Magic
Chapter 12 Case
Netflix: Making Movie Magic