chapter 12 human resource management

Human Resource Management

Chapte

r 12

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

2

The Strategic Role of Human Resource Management

Human Resource management has shed its old personnel image and gained recognition as a vital player in corporate strategy

HRM departments not only support the organization’s strategic objective but actively pursue an ongoing, integrated plan for furthering the organization’s performance

●Higher employee productivity

●Stronger financial results

●Achieve organization’s strategic goals

●Key players on management team

Manager’s Challenge: UPS Buffalo, New York


3

Human Resource Management

All managers

are resource

managers

Employees are

viewed as

assets

Matching process,

integrating the

organization’s

goals with

employees’ needs

How a company manages its workforce may be single

more important factor in sustained competitive success


4

Current Strategic Issues

Becoming more competitive globally

Improving quality, productivity, &

customer service

Managing mergers & acquisitions

Applying new information technology for

e-business

Determine a company’s need for skills and employees

Experiential Exercise: Do You Want to be an HR Manager?


5

Human Resource Management Goals

Develop an Effective Workforce

Training

Development

Appraisal

Maintain an Effective Workforce

Wage and salary

Benefits

Labor relations

Terminations

HRM planning

Job analysis

Forecasting

Recruiting

Selecting

Attract an Effective Workforce

Company Strategy

HRM Environment

Legislation

Trends in society

International events

Changing technology


6

Environmental Influences on HRM

Competitive Strategy

– Building Human Capital

– Information Technology

Federal Legislation


7

Three Ways HR Is Changing

Development of

global HR strategies

IHRM

Focus on building human capital

The using of

information technology

1

2

3


8

Human Capital - IHRM

Human Capital = economic value of the

knowledge, experience, skills, and

capabilities of employees

IHRM = addresses the complexity that

results from recruiting, selecting, developing,

and maintaining a diverse workforce on a

global scale


9

Information Technology

Human resource information technology =

an integrated computer system designed to

provide data and information used in HR

planning and decision making

Traditional HR to e-HR significantly affected

every area of human resource management

Some organizations are close to a paperless HRM

system – saves time, money, frees staff


10

Federal Legislation

Discrimination = hiring or promoting of

applicants based on criteria that are not job

relevant

Affirmative action = policy requiring

employers to take positive steps to

guarantee equal employment opportunities

for people within protected groups


11

Major Federal Laws - HRM

Equal Opportunity/Discrimination Laws

Compensation/Benefits Laws

Health/Safety Laws

Exhibit 12.3


12

The Changing Social Contract

New Contract Old Contract

Employee

Employer

Employability, personal responsibility

Partner in business improvement

Learning

Job security

A cog in the machine

Knowing

Continuous learning, lateral career

movement, incentive compensation

Creative development opportunities

Challenging assignments

Information and resources

Traditional compensation package

Standard training program

Routine jobs

Limited information

SOURCE: Based on Louisa Wah, “The New Workplace Paradox “ Management Review, January 1998,7; and Douglas T. Hall and Jonathan B. Moss, “The New Protean Career Contract:

Helping Organizations and Employees Adapt,” Organizational Dynamics, winter 1998, 22-37.


13

HR Issues in the New Workplace

Teams and Projects

Temporary Employees

Technology

Work-Life Balance

Downsizing


14


Teams and Projects – major trend in today’s workplace

With emphasis on projects, distinctions between job categories and descriptions are collapsing

Many of today’s workers straddle functional & departmental boundaries; handle multiple tasks/responsibilities

Virtual team = made up of members who

– are geographically or organizationally dispersed,

– rarely meet face to face, and

– do their work using advance information technologies.

Teams and

Projects


15


In opening years of the 21st century, largest employer in U.S. was a temporary employment agency, Manpower, Inc.

Temporary Employees do everything from data entry to interim CEO

Contingent workers = people who work for an organization, but not on a permanent or full-time basis, including temporary placements, contracted professionals, or leased employees

Temporary

Employees


16


Telecommuting and virtual teams are related trends

Telecommuting = using computers and telecommunications equipment to perform work from home or another remote location

Work anywhere - wireless Internet devices, laptops, cell phones, fax machines

Extreme telecommuting = people live nd work in countries far away from the organization’s physical location

Technology


17


Telecommuting is one way organizations

help employees lead more balanced lives

Flexible scheduling important in today’s

workplace – 27% of workforce/flexible hours

Broad Work-Life Balance initiatives – critical

retention strategy – on-site gym & childcare,

paid leaves & sabbaticals

Work-Life

Balance

Many European companies ahead of U.S. companies


18


Downsizing = intentional, planned reduction in the size of a company’s workforce

Managers can smooth the downsizing process

– Regularly communicating with employees

– Providing them with as much information as possible

– Providing assistance to workers who will lose their jobs

– Using training and development for remaining employees

Downsizing


19


HR issues present many challenges for

organizations and HR managers as they

work toward the three primary HR goals

● Attracting

● Developing

● Maintaining an effective workforce


20

Matching Model

An employee selection approach in

which the organization and the applicant

attempt to match each other’s needs,

interests, and values

Attracting an Effective Workforce


21

Attracting an Effective Workforce

Choose Recruiting

SourcesWant ads

Headhunters

Internet

HR PlanningRetirements

Growth

Resignations

Select the

CandidateApplication

Interview

Tests

Welcome New

Employee

Employee ContributionsAbility

Education

Creativity

Commitment

Expertise

Company InducementsPay and benefits

Meaningful work

Advancement

Training

Challenge

Matching Model

Match with

Company NeedsStrategic goals

Current & future competencies

Market changes

Employee turnover

Corporate culture

Employee NeedsStage of career

Personal values

Promotion aspirations

Outside interests

Family concerns

Match with


22

Human Resource Planning

Forecasting of human resource needs and

the projected matching of individuals with

expected vacancies

● ? = New technologies emerging

● ? = Volume of business likely next 5-10 years

● ? = Turnover rate, how much is avoidable, if any


23

Recruiting

Recruiting = activities or practices that define the

desired characteristics of applicants for specific jobs

● Internal – promote-from-within policies used by

many to fill high-level positions

● External = recruiting newcomers from outside has

advantage of multiple sources

● E-cruiting = use of Internet - fastest-growing

approach to recruiting


24

Basic Building Blocks of HR Management

Job Analysis

Job Description

Job Specification


25

Selecting

Selection = process of determining the skills,

abilities, and other attributes a person needs

to perform a particular job

Validity = relationship between an applicant’s

score on a selection device and his or her

future job performance


26

Selecting

Application form - device used for collecting

information about an applicant’s education,

previous job experience, and other

background characteristics

Research = biographical information

inventories can validly predict future job

success


27

Interviewing An Applicant

Know what you want

Prepare a road map

Use open-ended questions

Do not ask irrelevant questions

Do not rush interview

Do not rely on your memory


28

Reasons For Not Asking About Home Ownership

● Might adversely affect applicants chances at

the job

● Minorities and women may be less likely to

own a home

● Home ownership is probably unrelated to job

performance


29

Interview as Predictor of Success

Interview is not generally a valid predictor of

job performance – has high face validity as a

selection tool

Panel interviews – candidate meets with

several interviewers who take turns asking

questions – increases interview validity

Computer-based interviews - complement

traditional interviewing information


30

Inappropriate or Illegal Questions

Race-related questions

Age

Religion

Gender

National origin

Marital/family status

Employment Applications and Interviews


31

Testing and Assessment

Employment Test = written or computer-

based test designed to measure a particular

attribute such as intelligence or aptitude

Assessment Center = technique for selecting

individuals with high managerial potential

based on their performances on a series of

simulated managerial tasks


32

Developing an Effective Workforce

Training and development = planned effort to facilitate employees’ learning of job-related skills and behaviors $100 billion/year

On-the-job training = an experienced employee “adopts” a new employee to teach him or her how to perform job duties

Cross training

Mentoring

Following selection, next goal of HRM is to develop employees


33

Performance Appraisal

Process of observing and evaluating an

employee’s performance, recording the

assessment, and providing feedback to the

employee

Steps

● Observing and assessing performance

● Recording the assessment

● Providing feedback to employee


34

Making Performance Appraisals A Positive Force

1. The accurate assessment of performance

through the development and application of

assessment systems such as a rating scale

2. Training managers to effectively use the

performance appraisal interview to provide

feedback that reinforces good performance

and motivate employee development


35

Assessing Performance Accurately

360° Feedback Process

Performance Evaluation Errors

– Stereotyping

– Halo effect

– BARS – Behaviorally-anchored rating scale


36

Behaviorally Anchored Rating Scale

1 2 3 4 5

Have no plan or

schedule of work

and no concept of

realistic due dates

Have a sound plan but

neglect to keep trace of

target dates or to report

schedule slippages or other

problems as they occur

Usually satisfy time

constraints, with time and

cost overruns coming up

infrequently

Develop a comprehensive

schedule, observe target dates,

and update the status of

operations relative to plans,

making schedule modifications

as quickly as necessary

Make a list of due dates

and revise them but are

frequently surprised by

unforeseen events

Job: Production Line Supervisor - Work Dimension: Work Scheduling

Sources: Based on J.P. Campbell, M.D. Dunnette, R.D. Arvey, and L.V. Hellervik, “The Development and Evaluation of behaviorally Based Rating Scales,”Journal of Applied

Psychology 57 (1973), 25-22; and Francine Alexander, ‘performance Appraisals,” Small Business Reports (March 2989), 20-29.


37

Maintaining an Effective Workforce

Compensation

– Wage and Salary Systems

– Compensation Equity

– Pay for Performance

Benefits

Termination

Ethical Dilemma: A Conflict of Responsibilities


38

Termination

Employees who are poor performers

can be dismissed

Employers can use exit interviews in a

positive manner

Value of termination for maintaining an effective

workforce is two fold

chapter 12 human resource management

Leadership & Management