Human Resource Management (HRM) Final Exam

Human Resource Management (HRM)

Plays a role in company’s survival, effectiveness, and competitiveness.

Refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance.

Strategic HRM

Analysis and design of work

HR Planning

Recruiting

Selection

Training and Development

Compensation

Performance Management

Employee Relations

= Company Performance

High-Impact HR Functions

More integrated with the business

Skilled at attracting and retaining employees

Can adapt quickly

Identify and promote talent from within

Identify what motivates employees

Continuously building talent and skills.

HR Department Responsibilities

Outplacement

Labor law compliance

Record Keeping

Testing

Unemployment Compensation

Some aspects of benefits administration

Analysis and design of work

Job analysis, work analysis, job descriptions

Recruitment and selection

Recruiting, posting job descriptions, interviewing, testing, coordinating use of temporary employees.

Training and development

Orientation, skills training, development programs, career development

Performance management

Ensure employee activities are congruent with goals

Performance measures, preparation and administration of performance appraisals, feedback and coaching, discipline

Compensation and benefits

Wage and salary administration, incentive pay, insurance, vacation, retirement plans, profit sharing, health and wellness, stock plans.

Employee relations/labor relations

Attitude surveys, employee handbooks, labor law compliance, relocation and outplacement services

Personnel policies

Policy creation, policy communications

Employee data and information systems

Record keeping, HR information systems, workforce analytics, social media, intranet and Internet access.

Legal compliance

Policies to ensure lawful behavior; safety inspections, accessibility accommodations, privacy policies, ethics

Support for business strategy

Human resource planning and forecasting, talent management, change management, organization development

Administrative Services and Transactions

Compensation, hiring, and staffing

Emphasis: Resource efficiency and service quality

Business Partner Services

Developing effective HR systems and helping implement business plans, talent management

Emphasis: Knowing the business and exercising influence - problem solving designing effective systems to ensure needed competencies

Strategic Partner

Contributing to business strategy based on considerations of human capital, business capabilities, readiness, and developing HR practices as strategic differentiators

Emphasis: Knowledge of HR and of the business, competition, the market, and business strategies.

Shared service model

Central place for administrative and transactional tasks

Includes centers of expertise or excellence, service centers, and business partners.

Role of Technology

Reducing HRM role in administrative tasks, maintain records, and providing self-service to employees

Shift to self-service gives employees access to many HR functions.

HR managers have more time to work with managers on employee issues.

Outsourcing

Most commonly outsourced activities are benefits administration, relocation, and payroll

Most common reasons for outsourcing are cost savings, increased ability to recruit and manage talent, improved HR service quality, protection of the from potential lawsuits by standardizing processes such as selection and recruitment

Strategic Role

Lead efforts focused on talent management and performance management

Use and analyze data to make a business case for ideas and problem solutions.

Use people management skills across the business

Structure and responsibilities changing to ensure strategic role

HR can engage in

Evidence-based HR

Requires use of HR or workforce analytics

Big Data

Information merged from HR databases, corporate financial statements, employee surveys, and other data sources

Results in evidence-based HR decisions

Show that HR practices influence the organization’s bottom line, including profits and costs.

Senior HR role

Developing and supporting the company culture

Employee recruitment, retention, and engagement

Succession planning

Designing company’s overall HR strategy

Junior HR role

Handle transaction related to paperwork, benefits, and payroll administration

Answer employee questions

Data management

Sustainability

Company’s ability to meet its needs without sacrificing the ability of future generations to meet their needs

Company must meet stakeholders’ needs

ESG practices must be part of company’s business model to gain competitive advantage and reduce legal risks.

Three types of assets

Financial assets (cash and securities)

Physical assets (property, plant, equipment)

Intangible assets (human capital, customer capital, social capital, intellectual capital

Human Capital

Tacit knowledge

Education

Work-related know-how

Work-related competence

Social Capital

Corporate culture

Management philosophy

Management practices

Informal networking systems

Coaching/mentoring relationships

Customer Capital

Customer relationships

Brands

Customer loyalty

Distribution channels

Intellectual Capital

Patents

Copyrights

Trade secrets

Intellectual property

EVP

Employee Value Proposition

Manage Talent

Acquiring and assessing employees

Learning and development

Performance management

Compensation

Balanced Scorecard

Demonstrate performance to stakeholders

Being customer-focused

Improving quality

Emphasizing teamwork

Reducing new product and service development times

Managing for the long term

TQM (Total Quality Management)

Methods and processes are designed to meet internal and external customers’ needs

Every employee receives training in quality

Mangers measure progress with feedback based on data

Promote cooperation with vendors, suppliers, and customers

Quality designed into a product or service so that errors are prevented rather than being detected and corrected.

Six Sigma

Process of measuring, analyzing, improving, and controlling processes.

Internal labor force

External labor market

Average age of workforce will increase

Increased workforce diversity

Immigration will affect size and diversity

Ethics

The fundamental principles of right and wrong

Sarbanes-Oxley Act of 2002

Sets strict rules for corporate behavior and sets heavy fines and prison terms for noncompliance

Imposes criminal penalties for corporate governing and accounting lapses including retaliation against whistle-blowers reporting violations of Security and Exchange Commission rules

Social Networking

Facilitates communication, decentralized decision making, and collaboration

Artifical intelligence and robotics

Provide skills that are difficult to find

Perform some job tasks previously completed by employees

May eliminate some jobs

High-performance work systems

Maximize the fit between employees and technology

Employees, managers, vendors, customers, and suppliers work together

Virtual teams

Formed within one company or via partnerships with suppliers or competitors

HRIS

Stores large quantities of employee data

Mobile devices

Used increasingly to provide employees with anytime, anywhere access to HR applications.

Cloud Computing

Allows companies to lease software and hardware

HR dashboard

Provides to access important HR metrics for workforce analytics

Business Model

Story of how firm will create value for customers and how it will do so profitably

Accounting concepts

Fixed costs

Variable costs

Margins

Gross margin

Strategic Human Resource Management (SHRM)

A process where the approach to address competitive challenges organizations face.

Managing the “pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole.”

Developing strategies for achieving company’s goals in light of its current environment

Strategy formulation

Strategic planning groups decide on strategy

Strategy implementation

Organization follows through on strategy

Five major components of Strategy Formulation

Mission

Goals

External Analysis

Internal Analysis

Strategic Choice

Five Variables of Strategy Implementation

Organizational Structure

HRM tasks (task design, selection, training, and development of people, reward systems)
Types of information and information systems

Organizational Culture

A complex set of values, beliefs, assumptions, and symbols that define the way in which a firm confucts its business

Helps define relevant stakeholders (employees, customers, suppliers, and competitors) and how to interact with them

Both strategy and culture need to be aligned with the value they provide to customers.

Job analysis

Process of getting detailed information about jobs.

Job Design

Addresses what tasks should be grouped into a particular job.

Recruitment

Process through which the organization seeks applicants for potential employment

Selection

Process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics to help it achieve its goals.

Training

Planned effort to facilitate the learning of job-related knowledge, skills, and behavior

Development

Acquiring knowledge, skills, and behavior that improve employees’ ability to meet challenges of existing jobs or jobs that do not yet exist

Role Behaviors

Companies define the skills they require and invest in training employees in these skills areas

Concentration Strategies

Company must maintain current skills that exist in organization

Need for skill-based training and fair compensation

Appraisals are more behavioral, and behaviors are established through extensive experience

Internal Growth Strategies

Companies must constantly hire, transfer, and promote individuals

Compensation weighed towards achievement

Joint ventures require conflict resolution

Equal Employment Opportunity (EEO)

The federal government ensures that all individuals have an equal chance for employment, regardless of race, color, religion, sex, age, disability, or national origin.

Enforces through constitutional amendments, legislation, and executive orders, and court decisions.

13th Amendment

Abolished slavery

14th Amendment

Provides equal protection for all citizens and requires due process in state action

Only applicable to state actions

Reconstruction Civil Rights Acts (1866 and 1871)

Grants all citizens the right to make, perform, modify, and terminate contracts and enjoy all benefits, terms, and conditions of contractual relationship

Equal Pay Act of 1963

Requires men and women performing equal jobs to receive equal pay

Title VII of the Civil Rights Act of 1964

Forbids discrimination based on race, color, religion, sex, or national origin

Age Discrimination in Employment Act of 1967

Prohibits discrimination in employment against individuals 40 years of age and older.

Rehabilitation Act of 1973

Requires affirmative action in employment of individuals with disabilities

Vietnam Era Veteran’s Readjustment Assistance Act of 1974

Requires federal contractors and subcontractors to take affirmative action toward employing Vietnam veterans.

Pregnancy Discrimination Act

Prohibits discrimination on basis of pregnancy, childbirth, or related medical conditions

Civil Rights Act of 1991

Prohibits discrimination (Same as Title VII)

Americans with Disabilities Act (ADA) of 1990

Prohibits discrimination against individuals with disabilities

Executive Order 11246

Prohibits government contractors and subcontractors from discrimination based on race, color, religion, sex, and national origin

Executive Order 11478

Requires the federal government to base all its employment polices on merit and fitness, and specifies that race, color, sex, religion, and national origin should not be considered

Office of Federal Contract Compliance Programs (OFCCP)

Agency responsible for enforcing executive orders that cover companies doing business with federal government

Must have written affirmative action plan consisting of

Utilization analysis

Goals and timetables

Action steps

Types of Discrimination

Disparate Treatment

Disparate Impact

Reasonable Accommodation

Disparate Treatment

When individuals are treated differently because of race, sex, or the like.

Disparate Impact

Occurs when a neutral employment practice disproportionately excludes a protected group from employment opportunities.

Reasonable Accommodation

Employees must demonstrate a legitimate religious belief and provide the employer with notice of the need to accommodate, and that adverse consequences occurred due to employer’s failure to accommodate.

Plaintiff must show that they are a qualified applicant with a disability and that an adverse action was taken by a covered entity.

Title VII for Facing Retaliation

States that employers cannot retaliate against employees for opposing a perceived illegal employment practice or participating in a proceeding related to alleged illegal employment practice.

Occupational Safety and Health Act (OSHA)

Authorizes federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate commerce.

Employee rights under OSHA

Work in safe and healthful workplace

Know about hazardous chemicals in their workplaces

Receive information about injuries and illnesses in their workplaces

Complain or request hazard correction from their employers

Receive training about work place hazards

Examine hazard exposure and medical records

File a complaint with OSHA

Participate in an OSHA inspection

Be free from retaliation for exercising rights

Work-flow Analysis

A means to understand all tasks required to produce high-quality products, and the skills necessary to perform those tasks.

Functional Structure

High levels of centralization

Very efficient with little redundancy

Divisional structure

Low levels of centralization

More flexible and innovative

Not efficient

Importance of Job Analysis

Work Redesign

Human Resource Planning

Selection

Training and development

Performance appraisal

Career Planning

Job evaluation

Job Descriptions

Tasks, duties and responsibilities (TDR)

Need effective balance between breadth and specificity.

Job Specifications

Knowledge, skills, abilities, and other characteristics (KSAOs)

Not directly observable

Job Design

Process of defining how work will be performed and tasks required in a given job

Job Redesign

Changing tasks or way work is performed in existing job.

Four Basic Approaches of Job Redesign

Mechanistic - Identify simplest way to structure work to maximize efficiency

Motivational - Focuses on psychological and motivational potential of a job

Biological - Minimize physical strain by structing the physical work environment around how the body works (ergonomics)

Perceptual-Motor - Design jobs that don’t exceed people’s mental capabilities and limitations.

Forecasting

Ascertain supply of and demand for various types of human resources

Predict areas within organization that will have future labor shortages or surpluses

Can use statistical or judgmental methods

Leading Indicator

Predicts future labor demand

Transitional Matrices

Show proportion (or number) of employees in different job categories at different times.

Downsizing

Reduce labor costs

Technological changes reduce need for labor

Organizations change business location for economic reasons

Immediate success on reducing costs but negative effects on long-term organizational effectiveness

Outsourcing

Uses outside organizations for a broad set of services

Generic Labs

HRM tasks