1. PowerPoint Presentation to Accompany Management, 2/e John R. Schermerhorn, Jr. and Barry Wright Prepared by: Jim LoPresti University of Colorado, Boulder Revised by: Dr. Shavin Malhotra Ryerson University, Toronto, Ontario Published by: John Wiley & Sons Canada, Ltd. Chapter 10: Human Resource Management

2.  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?  What are the links between organization culture and diversity? Planning Ahead — Chapter 10 Study Questions Management 2e - Chapter 102

3.  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. Study Question 1: What is human resource management? Management 2e - Chapter 103

4.  Strategic human resource management mobilizes human capital through the HRM (human resource management) process to best implement organizational strategies Study Question 1: What is human resource management? Management 2e - Chapter 104

5.  Challenges in managing a global workforce Keeping track of expertise Availability of visas for foreign workers Study Question 1: What is human resource management? Management 2e - Chapter 105

6.  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, or physical or mental ability. Canadian Human Rights Act of 1977 Study Question 1: What is human resource management? Management 2e - Chapter 106

7. Figure 10.1 A sample of prohibited grounds of employment discrimination in Canadian provinces and territories. Management 2e - Chapter 107

8.  Current legal issues in HRM Sexual harassment Equal pay and comparable worth Pregnancy discrimination Legal status of independent contractors Workplace privacy Study Question 1: What is human resource management? Management 2e - Chapter 108

9.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 109

10. Figure 10.2 Steps in strategic human resource planning. Management 2e - Chapter 1010

11.  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 Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1011

12.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1012

13.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1013

14.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1014

15. Figure 10.3 Steps in the selection process: the case of a rejected job applicant. Management 2e - Chapter 1015

16.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1016

17.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1017

18.  Step 3 — Employment Tests Used to further screen applicants by gathering additional job-relevant information. Common types of employment tests: Intelligence Aptitude Personality Interests Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1018

19.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1019

20.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1020

21.  Behaviourally-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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1021

22.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1022

23.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1023

24.  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. Study Question 2: How do organizations attract a quality workforce? Management 2e - Chapter 1024

25.  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, behaviour, and attitudes of a new employee in a way considered desirable by the organization. Study Question 3: How do organizations develop a quality workforce? Management 2e - Chapter 1025

26. 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 2e - Chapter 1026

27.  Performance management systems ensure that— Performance standards and objectives are set. Performance results are assessed regularly. Actions are taken to improve future performance potential. Study Question 3: How do organizations develop a quality workforce? Management 2e - Chapter 1027

28.  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. Study Question 3: How do organizations develop a quality workforce? Management 2e - Chapter 1028

29.  Graphic rating scales Uses checklists of traits or characteristics to evaluate performance. Relatively quick and easy to use. Questionable reliability and validity. Study Question 3: How do organizations develop a quality workforce? Management 2e - Chapter 1029

30.  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. Study Question 3: How do organizations develop a quality workforce? Management 2e - Chapter 1030

31. Figure 10.4 Sample behaviourally anchored rating scale for performance appraisal. Management 2e - Chapter 1031

32.  Critical-incident techniques Keeping a running log or inventory of effective and ineffective behaviours. Documents success or failure patterns. Study Question 3: How do organizations develop a quality workforce? Management 2e - Chapter 1032

33.  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 Study Question 3: How do organizations develop a quality workforce? Management 2e - Chapter 1033

34.  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. Study Question 3: How do organizations develop a quality workforce? Management 2e - Chapter 1034

35.  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 Study Question 4: How do organizations maintain a quality workforce? Management 2e - Chapter 1035

36.  Compensation and benefits Base compensation Salary or hourly wages Study Question 4: How do organizations maintain a quality workforce? Management 2e - Chapter 1036

37.  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. Study Question 4: How do organizations maintain a quality workforce? Management 2e - Chapter 1037

38. Study Question 4: How do organizations maintain a quality workforce?  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. Management 2e - Chapter 1038

39.  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. Study Question 4: How do organizations maintain a quality workforce? Management 2e - Chapter 1039

40.  Compensation and benefits Fringe benefits Include non-monetary forms of compensation Family-friendly benefits Help in balancing work and nonwork responsibilities Employee assistance programs Help employees deal with troublesome personal problems. Study Question 4: How do organizations maintain a quality workforce? Management 2e - Chapter 1040

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. Early retirement incentive programs Termination. Study Question 4: How do organizations maintain a quality workforce? Management 2e - Chapter 1041

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. Study Question 4: How do organizations maintain a quality workforce? Management 2e - Chapter 1042

43.  labour-management relations 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 Study Question 4: How do organizations maintain a quality workforce? Management 2e - Chapter 1043

44. Figure 10.5 The traditional adversarial view of labour- management relations. Management 2e - Chapter 1044

45.  Organizational culture “the way we do things here” – helps to distinguish them from one another and bind members together with some sense of collective identity.  Socialization builds strong cultures by acclimating new members Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1045

46.  Strong cultures : Commit members to do things that are in the best interests of the organization. Discourage dysfunctional work behaviour. Encourage functional work behaviour.  The best organizations have strong cultures that: Are performance-oriented. Emphasize teamwork. Allow for risk taking. Encourage innovation. Value the well being of people. Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1046

47. Figure 10.6 Levels of organizational culture—observable culture and core culture in the organizational “iceberg.” Management 2e - Chapter 1047

48.  What is observable culture? What one sees and hears when walking around an organization.  Elements of observable culture: Heroes Stories Rites and rituals Symbols Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1048

49.  What is the core culture? Underlying assumptions and beliefs that influence behaviour and contribute to the observable culture.  Core culture and values: Core values are beliefs and values shared by organization members Strong cultures have a small but enduring set of core values. Commitment to core values is a key to long- term success. Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1049

50.  Diagnostic questions for assessing cultural differences: How tight or loose is the structure? Are decisions change oriented or driven by the status quo? What outcomes or results are most highly valued? What is the climate for risk taking, innovation? How widespread is empowerment, worker involvement? What is the competitive style, internal and external? Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1050

51.  Value-based management: Describes managers who actively help to develop, communicate, and enact shared values. Criteria for evaluating core values: Relevance Integrity Pervasiveness Strength Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1051

52.  Workplace spirituality : Practices that create meaning and shared community among organizational members. Sample values include: Meaningful purpose Trust and respect Honesty and openness Personal growth and development Worker friendly practices Ethics and social responsibility Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1052

53.  Symbolic leadership Symbolic leaders use symbols well to establish and maintain a desired organizational culture. Symbolic leaders behave in ways that espouse organization’s values. Symbolic leaders: Use language metaphors. Highlight and dramatize core values and observable culture. Use rites and rituals to glorify performance. Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1053

54.  Multicultural organizations Based on pluralism, operating with inclusion and respect for diversity  Multiculturalism involves pluralism and respect for diversity Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1054

55.  Characteristics of multicultural organizations: Pluralism Structural integration Informal network integration Absence of prejudice and discrimination Minimum intergroup conflict Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1055

56.  Organizational subcultures Cultures based on shared work responsibilities and/or personal characteristics. Ethnocentrism is the belief that one’s subculture is superior to all others  Common subcultures include: Occupational Functional Ethnic or national Gender Generational Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1056

57.  Challenges faced by minorities and women: Glass ceiling Misunderstanding and lack of sensitivity Sexual harassment Pay discrimination Job discrimination  Minorities may adapt by exhibiting biculturalism - adopting characteristics of the majority culture Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1057

58. Figure 10.7 Glass ceilings as barriers to women and minority cultures in traditional organizations. Management 2e - Chapter 1058

59.  Diversity leadership approaches: Managing diversity commits to building an organizational culture that allows all members to reach their full potential. Affirmative action commits the organization to hiring and advancing minorities and women. Valuing diversity commits the organization to education and training programs. Study Question 5: What are the links between organization culture and diversity? Management 2e - Chapter 1059

60. Figure 10.8 Leadership approaches to diversity—from affirmative action to managing diversity. Management 2e - Chapter 1060 Source: Developed from R. Roosevelt Thomas, Jr., Beyond Race and Gender (New York: AMACOM, 1991), p. 28.

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