1. Organizational Behaviour Canadian Edition
Schermerhorn, Hunt, Osborn, Currie
Prepared by: Joan Condie

2. Human Resource Management Systems
Chapter 7
Human Resource Management Systems

3. Questions
What are the essential aspects of human resource strategy and practice?
What are training and career planning and development?
What is performance appraisal?
What are rewards and reward systems?
How is pay managed as an extrinsic reward?
How are intrinsic rewards managed?
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

4. Human Resource Strategic Planning
Is the process of providing capable and motivated people who will carry out the organization’s mission and strategy
Key processes include:
Staffing
Training and career development
Performance appraisal
Rewards
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

5. Staffing
Begins with job analysis to understand the positions for which people are needed
Process of job analysis yields information to define a job, how it relates to other jobs, and what characteristics are needed by incumbents
Used for:
job descriptions
job evaluation and classification (how much is it worth)
performance appraisal
determining training & development needs
Used to create job specifications: job requirements and minimum qualifications
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

6. Staffing – Three Key Parts
Recruiting
Selection
Socialization
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

7. Recruitment Recruitment = attracting qualified applicants Three steps
Advertise vacancy
Initial contact with potential candidates
First screening
Internal versus external
Use of realistic job preview
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

8. Selection Application materials Employment interviews Tests
E.g., resumes, application forms
Employment interviews
Commonly used yet open to perceptual distortions
Tests
E.g., intelligence, honesty, mechanical, performance tests, assessment centres
Must be valid in terms of job requirements
Background investigation
E.g., reference check, verification of education
Decision to hire
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

9. Socialization
Socialization = orienting new employees to the organization and its work units
E.g., get to know policies and procedures, meet co-workers, learn company’s history
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

10. Training
Training = activities aimed at providing opportunity to acquire and improve job-related skills
On-the-job training:
Internships
Apprenticeships
Job rotation
Off-the-job training:
Lectures
Videos
Simulations
E-training
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

11. Career Planning and Development
Five-step process in formal career planning:
Personal assessment
Analysis of opportunities
Selection of career objectives
Selection and implementation of plan
Evaluation of results and revision of plan as necessary
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

12. Career Stages Linked with Sheehy’s Adult Life Cycle
In traditional career path:
Entry and establishment is like provisional adulthood
Development of skills, socialization, mentoring
Advancement is like first adulthood
Seek growth and responsibility
Maintenance, withdrawal, retirement similar to second adult stage
May change or stabilize, reach career plateau
But traditional route no longer typical
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

13. Performance Appraisal
Performance appraisal = process of systematically evaluating an employee’s performance and providing feedback on which performance adjustments can be made
Why do it?
Define specific criteria against which performance measured
Accurate measurement of past performance
Justify rewards
Determine development needed to improve performance
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

14. Performance Appraisal (cont’d)
Uses
Evaluative decisions
Feedback and development decisions
Done by:
Traditionally - supervisor
Potentially - anyone in a position to observe the person’s performance
E.g., 360 degree evaluation
Appraisal dimensions
Output measures
Activity measures
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

15. Performance Appraisal Methods
Comparative methods
Ranking
Rank order employees from best to worst
Paired comparison
Each employee directly compared to each other
Forced distribution
Forces certain proportion of employees into each performance category
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

16. Performance Appraisal Methods
Absolute methods
Graphic rating scales
Dimensions thought relevant to performance are scored
Critical incident diaries
Incidents of unusual success or failure are tracked
Behaviourally anchored rating scales
Observable job behaviours evaluated
Management by objectives
Joint goal-setting between supervisor and subordinate focused on subordinate’s job
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

17. Measurement Errors in Appraisals
Halo error
Leniency/strictness error
Central tendency error
Recency error
Personal bias error
Cultural bias error
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

18. Improving Performance Appraisals
For improved usefulness
Train raters
Regular ongoing observation of employees
Limit number appraised by one supervisor
Clear standards
Avoid ambiguous terms like “average”
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

19. Improving Performance Appraisals
For legal defensibility
Dimensions based on accurate job analysis
Expectations clearly understood by employees
Based on observable evidence and documentation, avoiding abstract concepts open to interpretation
System validated
Appeal process in place
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

20. Rewards Extrinsic or intrinsic Pay is the most common extrinsic reward
Pay can attract people to organization and motivate high performance
But dissatisfaction with pay can lead to major problems
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

21. Rewards Merit pay can motivate high performance if:
Based on accurate measures of individual performance
It clearly discriminates between high and low performers in terms of pay received
Merit is handled separately from cost-of-living adjustments
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

22. Creative Pay Practices
Skill-based pay
Gain-sharing plans
Profit-sharing plans
Employee stock ownership plans
Lump-sum pay increases
Flexible benefit plans
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright John Wiley & Sons Canada, Ltd.

23. Copyright
Copyright © 2005 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.