hr m overview

8/13/2019 Hr m Overview

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CHAPTER 8

Managing Human Resources


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The Foundations of Human

Resource Management (HRM)

Human Resource Management (HRM)

Set of organizational activities directed at attracting,developing, and maintaining an effective workforce


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The Strategic Importance of HRM

HRMs importance has grown dramatically inthe last two decades. This new importance

stems from:

Increased legal complexities

The recognition that human resources are avaluable means for improving productivity

The awareness today of the costs associatedwith poor human resource management


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Human Resource Planning

HR planning involvesjob analysisandforecastingthedemand for and supply of labor.

Job Analysis

Systematic analysis of jobs in an organization

Job Description

Systematic evaluation of the duties, workingconditions, tools, materials, and equipment related to

the performance of a jobJob Specification

Description of the skills, abilities, and other credentialsrequired by a job


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The Human Resource Planning Process

Perform Job Analysis

Forecast Demand for Labor

Forecast Internal

Supply of Labor

Develop Plan to Match

Demand with Supply

Forecast External

Supply of Labor


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Forecasting HR Demand &

SupplyForecasting the supply of labor is really twotasks:

Forecasting Internal Supply

The number and type of employees who will be inthe firm at some future date

Forecasting External Supply

The number and type of people who will beavailable for hiring from the labor market at large


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Forecasting HR Demand & Supply

Replacement ChartsListing of each managerial position, who occupiesit, how long that person will likely stay in the job,and who is qualified as a replacement

Employee Information System (or SkillsInventory)

Computerized system containing information oneach employees education, skills, workexperiences, and career aspirations


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Matching HR Supply & Demand

After comparing future demand and internal supply,managers can make plans to manage predictedshortfalls or overstaffing.

If a shortfall is predicted:

New employees can be hired. Present employees can be retrained and

transferred into understaffed areas.

Individuals approaching retirement can be

convinced to stay on. Labor-saving or productivity-enhancing systems

can be installed .


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Staffing the

OrganizationExternal StaffingThe process of acquiring staff from outside the

company

Internal Staffing

The process of promoting staff from within thecompany


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Recruiting Human Resources

Recruiting

Process of attracting qualified persons to apply foropen jobs

Internal Recruiting

Practice of considering present employees ascandidates for job openings

External Recruiting

Practice of attracting people outside anorganization to apply for jobs


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Selecting Human Resources

Application Forms (Blanks)

Tests

Interviews

Other Techniques

Validation

Process of determining the predictive value ofinformation


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Developing Human

Resources

Orientation

Process of introducing new employees tothe organization so that they can becomeeffective contributors more quickly.


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Assessing Training &

Development Needs

Needs Analysis

Determines the organizations true needs and the

training programs necessary to meet them

What knowledge, skills, and abilities does the

organization need to compete?

What skills must its workforce possess in order to

perform the organizations work effectively?


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Training & Development

Techniques & MethodsWork-Based Program

Training technique that ties training and developmentactivities directly to task performance

On-the-Job Training:Work-based training, sometimes

informal, conducted while an employee is in actual work

situation

Vestibule Training:Worked-based training conducted in a

simulated environment away from the work site

Systematic Job Rotation & Transfer:Work-based training in

which employees are systematically moved from one job to

another so that they can learn a wider array of tasks and skills


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Techniques & MethodsInstructional-Based Program

Training designed to impart new knowledge andinformation

Lecture or Discussion Approach:Instructional-based training

in which knowledge and information are descriptively

presented

Computer-Assisted Training:Instruction-based training in

which is knowledge and information are presented via

computer


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Techniques & Methods

Training Technology

Video Teleconferencing

Trainers in centralized locations deliver material

live by satellite hookup to remote sites

Interactive Video

Material is presented via video technology on amonitor from a central serving mechanism, a

video disk, CD-ROM, or web site


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Techniques & Methods

Team Building & Group-Based Training

More and more organizations are using teams as abasis for doing their jobs.

Many of the same companies are developing

training programs specifically designed to facilitateintragroup cooperation among members of teams.


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Evaluating Employee

Performance

Performance Appraisal

Formal evaluation of an employees jobperformance in order to determine the

degree to which the employee isperforming effectively


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The Performance Appraisal

Process

Conducting the Performance AppraisalWho should conduct the performance appraisal?

What sources of information should be used?

Providing Feedback360 Feedback:Performance appraisal system inwhich information is provided from all sourcessupervisors, employees, peers, and so forth


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The Performance Appraisal

Process

Methods for Appraising Performance

Ranking MethodsSimple Ranking Method:Performance appraisal method that ranks

employees from best to worstForced Distribution Method:Performance appraisal method thatclassifies employees into different performance categories based on a

predetermined distribution

Rating MethodsGraphic Rating Scale:Performance rating method using a numericalscale to rate performance along a set of dimensions

Critical Incident Method:Performance rating method based on statedexamples that reflect especially good or poor performance


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Providing Compensation

& Benefits

Compensation

Set of rewards that organizationsprovide to individuals in return fortheir willingness to perform various

jobs and tasks


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Determining Basic Compensation

Basic CompensationThe base level of wages or salary paid to anemployee

Wages:Compensation in the form of money paidfor time worked

Salary:Compensation in the form of money paid

for discharging the responsibilities of a job


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Determining Basic Compensation

Pay Surveys in CompensationMethod used to obtain information aboutcompensation paid to employees by other employers

Job EvaluationMethods for determining the relative worth of jobs inorder to set compensation levels

Establishing a Pay Structure

Compensation for different jobs is based on theorganizations assessment of the relative value to theorganization of each job class.


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Performance-Based Compensation

Merit Pay Plan

Performance-based pay plan basing part of

compensation on employee merit

Skill-Based or Knowledge-Based Pay

Performance-based pay plan rewarding employees foracquiring new skills or knowledge


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Incentive Compensation

Systems

Piece-Rate Incentive Plan

Incentive-based pay plan that provides payment for each unitproduced

Individual Incentive Plan

Incentive-based pay plan that rewards individual performanceon a real-time basis

Sales Commission

Individual incentive plan rewarding employees with apercentage of sales volume that they generate


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Team & Group Incentive

SystemsGainsharing Program

Group-based incentive plan that gives rewards for

productivity improvements

Profit Sharing

Group-based incentive plan in which employees are paida share of company profits


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Indirect Compensation &

Benefits

Benefits

Compensation other than wages andsalaries


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Mandated Protection Plans

Unemployment Insurance:Mandated coverage protectingemployees who are laid off

Social Security:Mandated federal retirement program

Workers Compensation Insurance: Legally requiredinsurance covering workers who are injured or become ill onthe job

Protect employees when their income isthreatened or reduced by illness, disability,

death, unemployment, or retirement.


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Optional Protection Plans

Private Pension Plan:Prearranged company pensionsprovided to retired employees

Protect employees in the same manner asmandatory plans, except companies can

choose whether or not to provide them.


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Paid Time Off

Paid holidays, paid vacations, sick leave, & personal

leave

Other Types of Benefits

Wellness Program:Benefit in the form of programs

designed to help employees from becoming sickChildcare:These plans might include scheduling help,referrals to various types of services, or reimbursementaccounts for childcare expenses. In many cases, they

actually include company-paid day care.Cafeteria Benefit Plan: Benefit plan that sets limits onbenefits per employee, each of whom may choosefrom a variety of alternative benefits


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The Legal Context of Human

Resource Management

Equal Employment Opportunity

Legally mandated nondiscrimination in employment on the

basis of race, creed, sex, or national originIllegal Discrimination

Discrimination against protected classes that causes them tobe unfairly differentiated from others

Protected ClassSet of individuals who by nature of one or more commoncharacteristics are protected by law from discrimination on thebasis of any of those characteristics


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Enforcing Equal Employment

OpportunityEqual Employment Opportunity Commission (EECO)

Agency created by Title VII to enforce discrimination-related laws

Affirmative Action Program

Practice of recruiting qualified employees belonging to racial,gender, or ethnic groups who are underrepresented in anorganization

Reverse Discrimination

Practice of discriminating against well-represented groups by over-hiring members of underrepresented groups


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Legal Issues in Compensation

Laws Affecting Total Compensation

Fair Labor Standards Act:Federal law settingminimum-wage and over-time pay requirements

Laws Affecting Other Forms of Compensation

Employee Retirement Income Security Act of 1974

(ERISA):Federal law regulating private pension plans


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Contemporary Legal Issues in

HR ManagementOccupational Safety and Health Act of 1970 (OSHA)

Federal law setting and enforcing guidelines for protecting

workers from unsafe conditions and potential health hazards inthe workplace

Emerging Areas of Discrimination Law

AIDS in the Workplace

Sexual Harassment

Quid Pro Quo Harassment

Hostile Work Environment

Employment-at-Will


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New Challenges in the

Changing Workplace

Managing Workforce

DiversityRange of workers attitudes,values, and behaviors thatdiffer by gender, race, and

ethnicity


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Changing Workplace

Managing Knowledge

WorkersEmployee who is of valuebecause of the knowledge thathe or she possesses


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Changing Workplace

Contingent Worker

Employee hired on somethingother than a full-time basis tosupplement an organizationspermanent work force

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