HRM managemt - LEARNING OUTLINE Follow this Learning...

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Unformatted text preview: LEARNING OUTLINE Follow this Learning Outline as you read and study this chapter. Follow Why Human Resources Is Important: Why The HRM Process The • Explain how an organization’s human resources can be a Explain significant source of competitive advantage. significant • List eight activities necessary for staffing the organization List and sustaining high employee performance. and • Discuss the environmental factors that most directly affect Discuss the HRM process. the 12–1 L E A R N I N G O U T L I N E (cont’d) (cont’d) Follow this Learning Outline as you read and study this chapter. Follow Human Resource Planning; Recruitment/ Human Decruitment; Selection; Orientation; Training Decruitment; • Contrast job analysis, job description, and job Contrast specification. specification. • Discuss the major sources of potential job candidates. • Describe the different selection devices and which work Describe best for different jobs. best • Tell what a realistic job preview is and why it’s important. • Explain why orientation is so important. • Describe the different types of training and how that Describe training can be provided. training 12–2 L E A R N I N G O U T L I N E (cont’d) (cont’d) Follow this Learning Outline as you read and study this chapter. Follow Employee Performance Management; Employee Compensation/Benefits; Career Development Compensation/Benefits; • Describe the different performance appraisal methods. • Discuss the factors that influence employee Discuss compensation and benefits. compensation • Describe skill-based and variable pay systems. • Describe career development for today’s employees. Current Issues in Human Resource Management • Explain how managers can manage downsizing. • Discuss how managers can manage workforce diversity. 12–3 L E A R N I N G O U T L I N E (cont’d) (cont’d) Follow this Learning Outline as you read and study this chapter. Follow Current Issues in Human Resource Management Current (cont’d) (cont’d) • Describe how organizations are dealing with work-life Describe balances. balances. 12–4 The Importance of Human Resource The Management (HRM) Management • As a necessary part of the organizing function of As management management Selecting, training, and evaluating the work force • As an important strategic tool HRM helps establish an organization’s sustainable HRM competitive advantage. competitive • Adds value to the firm High performance work practices lead to both high High individual and high organizational performance. individual 12–5 The HRM Process • Functions of the HRM Process Ensuring that competent employees are identified and Ensuring selected. selected. Providing employees with up-to-date knowledge and Providing skills to do their jobs. skills Ensuring that the organization retains competent and Ensuring high-performing employees who are capable of high performance. performance. 12–6 Exhibit 12–2 Human Resource Management Process 12–7 Environmental Factors Affecting HRM • Employee Labor Unions Organizations that represent workers and seek to Organizations protect their interests through collective bargaining. protect Collective bargaining agreement – A contractual agreement between a firm and a union contractual elected to represent a bargaining unit of employees of the firm in bargaining for wage, hours, and working conditions. firm • Governmental Laws and Regulations Limit managerial discretion in hiring, promoting, and Limit discharging employees. discharging Affirmative Action: the requirement that organizations take Affirmative proactive steps to ensure the full participation of protected groups in its workforce. groups 12–8 Managing Human Resources • Human Resource (HR) Planning The process by which managers ensure that they The have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks. effectively Helps avoid sudden talent shortages and surpluses. Steps in HR planning: Assessing current human resources Assessing future needs for human resources Developing a program to meet those future needs 12–9 Current Assessment • Human Resource Inventory A review of the current make-up of the organization’s review current resource status current Job Analysis An assessment that defines a job and the behaviors An necessary to perform the job necessary – Knowledge, skills, and abilities (KSAs) Requires conducting interviews, engaging in direct Requires observation, and collecting the self-reports of employees and their managers. their 12–10 Current Assessment (cont’d) • Job Description A written statement of what the job holder does, how written it is done, and why it is done. it • Job Specification A written statement of the minimum qualifications that written a person must possess to perform a given job successfully. successfully. 12–11 Meeting Future Human Resource Needs Supply of Employees Demand for Employees Factors Affecting Staffing Strategic Goals Forecast demand for products and services Availability of knowledge, skills, and abilities 12–12 Recruitment and Decruitment • Recruitment The process of locating, identifying, and attracting The capable applicants to an organization capable • Decruitment The process of reducing a surplus of employees in The the workforce of an organization the • E-recruiting Recruitment of employees through the Internet Organizational web sites Online recruiters 12–13 Exhibit 12–4 Major Sources of Potential Job Candidates 12–14 Exhibit 12–5 Decruitment Options 12–15 Selection • Selection Process The process of screening job applicants to ensure The that the most appropriate candidates are hired. that • What is Selection? An exercise in predicting which applicants, if hired, An will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance. performance. Selection errors: Reject errors for potentially successful applicants Accept errors for ultimately poor performers 12–16 Exhibit 12–6 Selection Decision Outcomes 12–17 Validity and Reliability • Validity (of Prediction) A proven relationship between the selection device proven used and some relevant criterion for successful performance in an organization. performance High tests scores equate to high job performance; low scores High to poor performance. to • Reliability (of Prediction) The degree of consistency with which a selection The device measures the same thing. device Individual test scores obtained with a selection device are Individual consistent over multiple testing instances. consistent 12–18 Exhibit 12–7 Selection Devices • Application Forms • Written Tests • Performance Simulations • Interviews • Background Investigations • Physical examinations 12–19 Written Tests • Types of Tests Intelligence: how smart are you? Aptitude: can you learn to do it? Attitude: how do you feel about it? Ability: can you do it now? Interest: do you want to do it? • Legal Challenges to Tests Lack of job-relatedness of test items or interview Lack questions to job requirements questions Discrimination in equal employment opportunity Discrimination against members of protected classes against 12–20 Performance Simulation Tests • Testing an applicant’s ability to perform actual Testing job behaviors, use required skills, and demonstrate specific knowledge of the job. demonstrate Work sampling Requiring applicants to actually perform a task or set of tasks Requiring that are central to successful job performance. that Dedicated facilities in which job candidates undergo a series Dedicated of performance simulation tests to evaluate their managerial potential. potential. Assessment centers 12–21 Other Selection Approaches • Interviews Although used almost universally, managers need to Although approach interviews carefully. approach • Background Investigations Verification of application data Reference checks: Lack validity because self-selection of references ensures Lack only positive outcomes. only • Physical Examinations Useful for physical requirements and for insurance Useful purposes related to pre-existing conditions. purposes 12–22 Exhibit 12–8 Suggestions for Interviewing 1. Structure a fixed set of questions for all applicants. Structure fixed 2. Have detailed information about the job for which applicants Have detailed about are interviewing. are 3. Minimize any prior knowledge of applicants’ background, experience, interests, test scores, or other characteristics. experience, 4. Ask behavioral questions that require applicants to give detailed accounts of actual job behaviors. detailed 5. Use a standardized evaluation form. Use standardized 6. Take notes during the interview. 7. Avoid short interviews that encourage premature decision making. making. Source: Based on D.A. DeCenzo and S.P. Robbins, Human Resource Management, 7th ed. (New York Wiley: 2002, p. 200) 12–23 Exhibit 12–9 Examples of “Can’t Ask and Can Ask” Interview Questions Examples for Managers* for Can’t Ask • What’s your birth date? What’s or How old are you? or • What’s your marital What’s status? or Do you plan to have a family? to • What’s your native What’s language? language? • Have you ever been Have arrested? arrested? Can Ask • Are you over 18? • Would you relocate? • Are you authorized to Are work in the United States? States? • Have you ever been Have convicted of [fill in the blank]?—The crime must be reasonably related to the performance of the job. job. * Note: Managers should be aware that there are numerous other “can and can’t ask” questions. Be sure to always check with your HR department for specific guidance. 12–24 Exhibit 12–10 Quality of Selection Devices as Predictors 12–25 Other Selection Approaches (cont’d) • Realistic Job Preview (RJP) The process of relating to an applicant both the The positive and the negative aspects of the job. positive Encourages mismatched applicants to withdraw. Aligns successful applicants’ expectations with actual job Aligns conditions; reducing turnover. conditions; 12–26 Orientation • Transitioning a new employee into the Transitioning organization. organization. Work-unit orientation Familiarizes new employee with work-unit goals Clarifies how his or her job contributes to unit goals Introduces he or she to his or her coworkers Organization orientation Informs new employee about the organization’s objectives, Informs history, philosophy, procedures, and rules. history, Includes a tour of the entire facility 12–27 Exhibit 12–11 Types of Training Type General Includes Communication skills, computer systems application Communication and programming, customer service, executive development, management skills and development, personal growth, sales, supervisory skills, and technological skills and knowledge technological Basic life/work skills, creativity, customer education, Basic diversity/cultural awareness, remedial writing, managing change, leadership, product knowledge, public speaking/presentation skills, safety, ethics, sexual harassment, team building, wellness, and others Specific Source: Based on “2005 Industry Report—Types of Training,” Training, December 2005, p. 22. 12–28 Exhibit 12–12 Employee Training Methods • Traditional Traditional Training Methods Training On-the-job Job rotation Mentoring and coaching Experiential exercises Workbooks/manuals Classroom lectures Classroom • Technology-Based Technology-Based Training Methods Training CD-ROM/DVD/videotapes/ CD-ROM/DVD/videotapes/ audiotapes audiotapes Videoconferencing/ Videoconferencing/ teleconferencing/ teleconferencing/ satellite TV E-learning 12–29 Employee Performance Management • Performance Management System A process of establishing performance standards and process appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions. in 12–30 Exhibit 12–13 Advantages and Disadvantages of Performance Appraisal Methods Method Written Written essays essays Critical Critical incidents incidents Graphic Graphic rating scales rating BARS Multiperson Multiperson comparisons comparisons MBO 360-degree 360-degree appraisals appraisals Advantage Simple to use Disadvantage More a measure of evaluator’s writing More ability than of employee’s actual performance performance Time-consuming; lack quantification Do not provide depth of job behavior Do assessed assessed Time-consuming; difficult to develop Unwieldy with large number of Unwieldy employees; legal concerns employees; Time-consuming Time-consuming Rich examples; behaviorally Rich based based Provide quantitative data; Provide less time-consuming than others others Focus on specific and Focus measurable job behaviors measurable Compares employees with Compares one another one Focuses on end goals; Focuses results oriented results Thorough 12–31 Compensation and Benefits • Benefits of a Fair, Effective, and Appropriate Benefits Compensation System Compensation Helps attract and retain high-performance employees Impacts on the strategic performance of the firm • Types of Compensation Base wage or salary Wage and salary add-ons Incentive payments Skill-based pay Variable pay 12–32 Exhibit 12–14 Factors That Influence Compensation and Benefits Sources: Based on R.I. Henderson, Compensation Management, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1994), pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1 12–33 Career Development • Career Defined The sequence of positions held by a person during The his or her lifetime. his The Way It Was Career Development – Provided for information, assessment, and training – Helped attract and retain highly talented people Now – Individuals—not the organization—are responsible for Individuals—not designing, guiding, and developing their own careers. designing, Boundaryless Career A career in which individuals, not organizations, define career career progression and organizational loyalty progression 12–34 Exhibit 12–15 What College Graduates Want From Jobs Top Factors for U.S. Top Students Students Work–life balance Work–life Annual base salary Job stability and security Recognition for a job done Recognition well well Increasingly challenging Increasingly tasks tasks Rotational programs Top Factors for U.K. Top Students Students International career International opportunities opportunities Flexible working hours Variety of assignments Paid overtime Sources: Based on S. Shellenbarger, “Avoiding the Next Enron: Today’s Crop of Soon-to-Be Grads Seeks Job Security,” Wall Street Journal Online, February 16, 2006; “MBAs Eye Financial Services and Management Consulting,”, June 7, 2005; and J. Boone, “Students Set Tighter Terms for Work,”, May 21, 2005. 12–35 Exhibit 12–16 Some Suggestions Some for a Successful Management Career Management 12–36 Current Issues in HRM • Managing Downsizing The planned elimination of jobs in an organization Provide open and honest communication. Provide assistance to employees being downsized. Reassure and counseling to surviving employees. • Managing Work Force Diversity Widen the recruitment net for diversity Ensure selection without discrimination Provide orientation and training that is effective 12–37 Current Issues in HRM (cont’d) • Work-Life Balance Employees have personal lives that they don’t leave Employees behind when they come to work. behind Organizations have become more attuned to their Organizations employees by offering family-friendly benefits: family-friendly On-site child care Summer day camps Flextime Job sharing Leave for personal matters Flexible job hours 12–38 Current Issues in HRM (cont’d) • Controlling HR Costs Employee health-care Encouraging healthy lifestyles – Financial incentives – Wellness programs – Charging employees with poor health habits more for Charging benefits benefits Employee pension plans Reducing pension benefits No longer providing pension plans 12–39 Terms to Know • high-performance work high-performance practices practices • human resource human management process management • labor union • affirmative action • human resource planning • job analysis • job description • job specification • recruitment • decruitment • • • • • • • • selection validity reliability work sampling assessment centers realistic job preview (RJP) orientation performance performance management system management • written essay • critical incidents • graphic rating scales 12–40 Terms to Know (cont’d) • behaviorally anchored behaviorally rating scales (BARS) rating • multiperson comparisons • 360 degree feedback • skill-based pay skill-based • variable pay • career • Downsizing • family-friendly benefits 12–41 ...
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