1. Chapter 8: human resource management
Business Leadership: Management Fundamentals John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest
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2. Planning Ahead — Chapter 8 Learning Goals
Describe human resource management
Explain how organizations attract a quality workforce
Explain how organizations develop and maintain a quality workforce
Planning Ahead — Chapter 8 Learning Goals

3. 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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4. Global 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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5. Global Human Resource Management (cont’d)
Challenges in managing a global workforce
Keeping track of expertise
Availability of visas for foreign workers
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6. Legal Environment of Human Resource Management
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, sexual orientation, pregnancy or physical or mental ability
Canadian Human Rights Act of 1977
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7. Table 8.2 A sample of prohibited grounds of employment discrimination in CANADA
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8. Current Legal Issues in HR Management
Sexual harassment
Equal pay and comparable worth
Pregnancy discrimination
Legal status of independent contractors
Workplace privacy
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9. Human Resource Planning
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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10. Figure 8.3 Steps in strategic human resource planning
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11. Human Resource Planning (Cont’d)
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: details the duties and responsibilities of a job holder
Job specifications: lists the qualifications required of a job
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12. Recruitment Techniques
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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13. Recruitment Techniques (cont’d)
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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14. Selection Techniques 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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15. Figure 8.4 Steps in the selection process: the case of a rejected job applicant
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16. Steps in the Selection Process
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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17. Steps in the Selection Process (cont’d)
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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18. Steps in the Selection Process (cont’d)
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. Steps in the Selection Process (cont’d)
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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20. Steps in the Selection Process (cont’d)
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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21. Steps in the Selection Process (cont’d)
Behaviourally-oriented employment tests:
Assessment centre:
Evaluates a person’s performance in simulated work situations
Work sampling:
Evaluates a person’s performance on actual job tasks
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22. Steps in the Selection Process (cont’d)
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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23. Steps in the Selection Process (cont’d)
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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24. Steps in the Selection Process (cont’d)
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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25. 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, behaviours, and attitudes of a new employee in a way considered desirable by the organization
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26. Training and Development
A set of activities that provides the opportunity to acquire and improve job-related skills
On-the-job training:
Job rotation
Coaching
Mentoring
Modelling
Off-the-job training:
Management development
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27. Performance Management
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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28. Performance Management (cont’d)
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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29. Performance Appraisal Methods
Graphic rating scales:
Uses checklists of traits or characteristics to evaluate performance
Relatively quick and easy to use
However, issue of questionable reliability and validity
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30. Performance Appraisal Methods (cont’d)
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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31. Figure 8.7 Sample behaviourally anchored rating scale for performance appraisal
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32. Performance Appraisal Methods (cont’d)
Critical-incident techniques:
Keeping a running log or inventory of effective and ineffective behaviours
Documents success or failure patterns
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33. Performance Appraisal Methods (cont’d)
Multi-person comparisons:
Formally compare one person’s performance with that of one or more others
Types of multi-person comparisons:
Rank ordering
Paired comparisons
Forced distributions
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34. Other Appraisals 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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35. Maintaining a Quality Workplace
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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36. Maintaining a Quality Workplace (cont’d)
Compensation and benefits:
Base compensation:
Salary or hourly wages
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37. Compensation and Benefits
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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38. Compensation and Benefits (cont’d)
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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39. Compensation and Benefits (cont’d)
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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40. Compensation and Benefits (cont’d)
Fringe benefits:
Include non-monetary forms of compensation
Flexible Benefits:
Help in choosing a set of benefits within a dollar amount
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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41. 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
Including early retirement incentive programs
Termination
Wrongful dismissal
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42. 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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43. Labour-management Relations (cont’d)
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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44. Figure 8.9 The traditional adversarial view of labour-management relations
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45. COPYRIGHT
Copyright © 2013 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.
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