1. Chapter 12 Human Resource Management

2. The Strategic Role of HRM HR: design &application of formal systems in an orgz to ensure effective &efficient use of human talent to achieve orgz goals HRM & HR strategies aligned with orgz strategic direction-Positive Performance Matching process Integrate strategy HR builds culture The right people: To become more competitive on a global basis For improving quality, innovation, and customer service To retain during mergers and acquisitions To apply new information technology for e-business Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.2

3. 12.1 Strategic Human Resource Management Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 3

4. Building Human Capital to Drive Performance Strategic decisions are related to human decisions More companies rely on information, creativity, and knowledge Human Capital is the economic value of the combined knowledge, experience, skills, and capabilities of employees Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.4

5. 12.2 The Role and Value of Human Capital Investments Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 5

6. The Changing Nature of Careers Employees operate under a new social contract Downsizing, outsourcing, rightsizing, and restructuring have left little stability Subsidized benefits are decreasing Employees are expected to be self-motivated Organizations must be creative with training and development New performance appraisal processes are required Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.6

7. Innovations in HRM Becoming an Employer of Choice – Organizations that are highly attractive to potential employees because of HR practices Using Temporary and Part-Time Employees – Contingent workers are not permanent, maintain flexibility, and keep costs low Promoting Work/Life Balance – Critical retention strategies Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.7

8. Promoting Work-Life Balance Helping workers lead a balanced life Part-time work and telecommuting Flexible scheduling Gen Y/Millennials demand more work-life balance Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.8

9. Using the matching model, the organization and the individual attempt to match the needs, interests, and values that they offer each other Finding the Right People Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.9

10. 12.5 Attracting an Effective Workforce Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 10

11. Human Resource Planning What new technologies are emerging? What is the volume of the business likely to be in the next 5 to 10 years? What is the turnover rate? What types of engineers will we need? How many administrative personnel will we need to support additional engineers? Can we use temporary, part-time, or virtual workers? Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.11

12. Recruiting (talent acquisition) Activities that define characteristics of applicants to whom selection procedures will be applied  Internal recruiting  External recruiting Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.12

13. Assessing Organizational Needs: – Job Analysis-gather & interpret info about duties, task & responsibilities of jobs (ask work flow, activities etc) – Job Description-summary of specific task/duties/responsibilities – Job Specification-outlines characteristics needed to perform job (skills, education etc.) Realistic Job Previews – provide pertinent information; positive and negative-about job &orgz to applicants Legal Considerations – recruiting practices must be legal Innovations in Recruiting: – E-Recruiting – Twitter, LinkedIn, and other social media Recruiting Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 13

14. 12.6 Sara Lee’s Required Skills for Finance Executives Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 14

15.  Application Form Avoid irrelevant questions Avoid questions w/ adverse impact  Interview;  Structured interviews  Non directive Interviews  Panel Interviews Selecting Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.15  Employment Tests Cognitive ability tests Physical ability tests Personality tests Brainteasers  Assessment Center Work sample tests  Online Checks Select desired employees from pool of recruited applicants- Employers assess applicants for a “fit” HR professionals us a combination of devices:

16.  Structured interviews Biographical interviews-life &work Experiences Behavioral interviews-describe the task/problem performed Situational Interviews-how handle hypothetical situation  Non-directive interviews Allow freedom, broad and open ended questions,  Panel Interviews-several interviewers Interviews Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 16

17. 12.9 Interview Brain Teasers Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.17

18. Managing Talent Training and Development-develop employees into effective workers – On-the-Job Training – Corporate Universities – Promotion from Within – Mentoring and Coaching Development involves teaching broader skills Performance Appraisal – Evaluating performance, recording assessment, and providing feedback Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.18

19. Performance Appraisal Assessing Performance Accurately – system should evaluate relevant performance – Performance-review ranking systems pit employees against each other 360-degree Feedback – uses multiple raters, including self-rating to appraise employees and development Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.19

20. Reducing the company’s workforce to the “right” size; also called downsizing Make company stronger and more competitive HR must effectively and humanely manage the process Many organizations use communication and provide assistance to address emotional needs Rightsizing the Organization Copyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.20