introduction to management 11e john schermerhorn chapter 12 human resource management
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Introduction to Management 11e John Schermerhorn
Chapter 12Chapter 12Human Resource Human Resource
ManagementManagement
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Planning Ahead — Chapter 12 Study Questions
1. What is human resource management?
2. How do organizations attract a quality workforce?
3. How do organizations develop a quality workforce?
4. How do organizations maintain a quality workforce?
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Study Question 1: What is human resource management?
Human capital is the economic value of people with job-relevant abilities, knowledge, ideas, energies and commitments
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Study Question 1: What is human resource management?
Human Resource Management is a process of attracting, developing, and maintaining a talented work force
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Study Question 1: What is strategic human resource management?
Major human resource management responsibilities:
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Study Question 1: What is human resource management?
Person-job fit The individual’s skills, interests, and personal
characteristics are consistent with the requirements of work
Person-organization fit The individuals values, interests, and
behavior are consistent with the culture of the organization
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Study Question 1: What is human resource management?
Strategic human resource management mobilizes human capital to implement organizational strategies
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Study Question 1: What is human resource management?
Discrimination in employment Occurs when someone is denied a job or job
assignment for reasons that are not job relevant
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Study Question 1: What is human resource management?
Equal employment opportunity The right to employment without regard to race,
color, national origin, religion, gender, age, or physical or mental ability
Title VII of the Civil Rights Act of 1964 Equal Employment Opportunity Act of 1972 Civil Rights Act (EEOA) of 1991
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Figure 12.1 A sample of U.S. laws against employment discrimination
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Study Question 1: What is human resource management?
Affirmative action An effort to give preference in employment to
women and minority group members
Bona fide occupational qualifications employment criteria justified by capacity to
perform a job
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Study Question 1: What is human resource management?
Additional laws against employment discrimination: Americans With Disabilities Act of 1990 Age Discrimination in Employment Act of
1967 as amended in 1978 and 1986 Pregnancy Discrimination Act of 1978 Family and Medical Leave Act of 1993
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Study Question 1: What is human resource management?
Current legal issues in HRM Sexual harassment Equal pay and comparable worth Legal status of independent contractors Workplace privacy
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Study Question 2: How do organizations attract a quality workforce?
Human resource planning analyzes an organization’s HR needs and how to best fill them
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Figure 12.2 Steps in strategic human resource planning
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Study Question 2: How do organizations attract a quality workforce?
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
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Study Question 2: How do organizations attract a quality workforce?
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
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Study Question 2: How do organizations attract a quality workforce?
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Study Question 2: How do organizations attract a quality workforce?
Selection Choosing from a pool of
applicants the person or persons who offer the greatest performance potential
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Study Question 2: How do organizations attract a quality workforce?
Selection process
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Figure 12.3 Steps in the selection process: the case of a rejected job applicant
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Study Question 2: How do organizations attract a quality workforce?
Reliability means that a selection device gives consistent results time after time
Validity means that there is a clear relationship between what the selection device measures and job performance
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Study Question 3: How do organizations attract a quality workforce?
Interviews Unstructured interviews do not follow a
formal and pre-established of questions Behavioral interviews ask job applicants
about past behaviors that relate to the job Situational interviews ask job applicants how
they would react in specific situations
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Study Question 2: How do organizations attract a quality workforce?
Employment Tests Used to further screen applicants by
gathering additional job-relevant information Assessment centers examine how job
candidates handle simulated work situations
Work sampling involves observing applicants performing actual work tasks
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Study Question 2: How do organizations attract a quality workforce?
Employment Tests Biodata methods collect biographical
information that has been proven to correlate with good job performance along with other traits such as
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Study Question 3: How do organizations develop a quality workforce?
Socialization Process of influencing the expectations,
behavior, and attitudes of a new employee in a way considered desirable by the organization
Orientation Set of activities designed to familiarize new
employees with their jobs, coworkers, and key aspects of the organization
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Study Question 3: How do organizations develop a quality workforce?
Training Activities that provide the opportunity to
acquire and improve job-related skills
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Study Question 3: How do organizations develop a quality workforce?
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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Study Question 3: How do organizations develop a quality workforce?
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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Study Question 3: How do organizations develop a quality workforce?
Graphic rating scales A trait-based performance appraisal that
includes checklists of traits or characteristics to evaluate performance
Relatively quick and easy to use
Questionable reliability and validity
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Study Question 3: How do organizations develop a quality workforce?
Behaviorally anchored rating scales (BARS)
A behavior-based performance appraisal that describes actual behaviors 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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Figure 12.4 Sample behaviorally anchored rating scale for performance appraisal
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Study Question 3: How do organizations develop a quality workforce?
Recency bias is the tendency for evaluators to focus on recent behaviors instead of behavior that occurred throughout the evaluation period
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Study Question 3: How do organizations develop a quality workforce?
Critical-incident techniques Keeping a running log or inventory of
effective and ineffective behaviors Documents success or failure patterns
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Study Question 3: How do organizations develop a quality workforce?
Results-based performance appraisals focus on accomplishments Usually qualitative and objective Determining what to measure may be difficult May create ethical problems
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Study Question 3: How do organizations develop a quality workforce?
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
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Study Question 3: How do organizations develop a quality workforce?
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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Study Question 4: How do organizations maintain a quality workforce?
Work-life balance How people balance career demands with
personal and family needs Progressive employers support a healthy
work-life balance
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Study Question 4: How do organizations maintain a quality workforce?
Contemporary work-life balance issues: Single parent concerns Dual-career couples
concerns Family-friendliness as
screening criterion used by candidates
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Study Question 4: How do organizations maintain a quality workforce?
Compensation and benefits Base compensation
Salary or hourly wages
Flexible benefits Employees can select
a set of benefits within a certain dollar amount
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Study Question 4: How do organizations maintain a quality workforce?
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
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Study Question 4: How do organizations maintain a quality workforce?
Bonus pay plans One-time payments based
on the accomplishment of specific performance targets or some extraordinary contribution
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Study Question 4: How do organizations maintain a quality workforce?
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
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Study Question 4: How do organizations maintain a quality workforce?
Employee stock ownership plans Employees purchase company stock directly
through employer, sometimes at a discount
Stock options Employees have the right to purchase
company stock at a fixed price in the future as a performance incentive
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Study Question 4: How do organizations maintain a quality workforce?
Benefits Non-monetary forms of compensation
Required Social security Unemployment insurance Worker’s compensation
Not required Health insurance Retirement plans Paid time off
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Study Question 4: How do organizations maintain a quality workforce?
Flexible benefits Allow employees to choose from a set of benefits
Family-friendly benefits Help in balancing work and nonwork
responsibilities
Employee assistance programs Help employees deal with troublesome personal
problems
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Study Question 4: How do organizations maintain a quality workforce?
Retention Keeping well trained and productive
employees
Turnover management of promotions,
transfers, terminations, layoffs, and retirements
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Study Question 4: How do organizations maintain a quality workforce?
Early retirement Financial incentive offered to
employees who retire early
Termination Involuntary dismissal of an
employee
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Study Question 4: How do organizations maintain a quality workforce?
Employment-at-will Employees can be terminated at any time for any
reason
Wrongful discharge Workers have legal protection from discriminatory
firings
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Study Question 4: How do organizations maintain a quality workforce?
Labor-management relations Labor unions deal with employers on the
workers’ behalf Collective bargaining
Process of negotiating, administering and interpreting a labor contract
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Study Question 4: How do organizations maintain a quality workforce?
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The traditional adversarial view of labor-management relations
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Chapter 12 Case
Coca-Cola: Staying Focused on Talent