C9 HRM

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Human Resource Management (HRM)

The process of planning for, attracting, developing, and retaining an effective workforce.

Human Capital

The economic or productive potential of employee knowledge, experience, and actions.

Social Capital

The economic or productive potential of strong, trusting, and cooperative relationships among employees.

Talent Management

A strategic HRM approach that matches high-potential employees with the organization’s most valuable positions.

Strategic Human Resource Management

Designing and implementing HR systems that align human capital with organizational strategy.

Internal Fit

When HR policies and practices reinforce and support one another.

External Fit

When HR systems align with organizational culture and structure to support strategy.

Role of Human Capital in Strategic HRM

Ensures the right people and competencies are in the right positions at the right time.

Role of Social Capital in Strategic HRM

Creates value through employee relationships, trust, and collaboration.

High-Performance Work Systems

Bundles of HR practices designed to improve employee ability, motivation, and opportunity.

Internal Recruiting

Making current employees aware of job openings within the organization.

Internal Recruiting Advantages

1. Employees tend to be inspired to greater effort and loyalty. Morale is enhanced because they realize that working hard and staying put can result in more opportunities. 

2. The whole process of advertising, interviewing, and so on is cheaper.

3. There are fewer risks. Internal candidates are already known and are familiar with the organization.

Internal Recruiting Disadvantages

1. Internal recruitment restricts the competition for positions and limits the pool of fresh talent and fresh viewpoints.

2. It may encourage employees to assume that longevity and seniority will automatically result in promotion.

3. Whenever a job is filled, it creates a vacancy elsewhere in the organization.

External Recruiting

Attracting job applicants from outside the organization.

External Recruiting Advantages

1. Applicants may have specialized knowledge and experience.

2. Applicants may have fresh viewpoints.

External Recruiting Disadvantages

1. The recruitment process is more expensive and takes longer.

2. The risks are higher because the persons hired are less well known.

Hybrid Recruiting Approaches

Recruiting methods such as employee referrals and boomerangs that combine internal and external sources.

Employee Referrals

Using current employees’ social networks to find job candidates.

Boomerangs

Former employees who return to the organization.

Person–Job Fit (P–J Fit)

The extent to which an employee’s skills and needs match a specific job.

Legal Defensibility

The extent to which a selection method is job-related and free from bias.

Reliability

The degree to which a selection test produces consistent results over time.

Validity

The degree to which a test measures what it claims to measure.

Unstructured Interviews

Interviews with few standardized questions and high interviewer discretion.

Structured Interviews

Interviews with standardized questions and scoring systems.

Situational Interviews

Structured interviews that ask how candidates would respond to hypothetical situations.

Behavioral-Description Interviews

Structured interviews that ask candidates about past behavior.

Employment Tests

Standardized tools used to measure skills, abilities, personality, or integrity.

Ability Tests

Tests measuring cognitive or physical abilities needed for a job.

Performance Tests

Tests measuring how well applicants perform actual job tasks.

Personality Tests

Tests measuring traits that predict job performance.

Integrity Tests

Tests measuring honesty and ethical behavior.

Compensation

All financial and nonfinancial rewards employees receive for their work.

Base Pay

The basic wage or salary paid to employees.

Incentives

Variable rewards such as bonuses, commissions, profit sharing, or stock options.

Benefits

Nonmonetary compensation such as insurance, paid time off, and retirement plans.

Onboarding

Programs designed to integrate new employees into jobs and organizations.

Onboarding Best Practices

Involving a team, clarifying expectations, assembling resources, and allowing time.

Learning and Development (L&D)

Processes designed to close gaps between current employee skills and required skills.

What are the learning and development process steps?

1. Assessment: Determine the needs or skill gaps that need to be improved.

2. Objectives: Identify learning goals that will reduce skill gaps.

3. Selection: develop learning and development materials to be used in achieving learning goals.

4. Implementation: execute learning and development programs.

5. Evaluation: evaluate the implemented programs.

Performance Management

Processes that define, measure, evaluate, and improve employee performance.

What are the performance management steps?

1. define performance

2. monitor and evaluate performance

3. review performance

4. provide consequences.

Performance Appraisal

A formal evaluation of employee performance with feedback.

360-Degree Assessment

Performance appraisal using feedback from supervisors, peers, subordinates, and sometimes customers.

Forced Ranking

A performance appraisal system that ranks employees relative to one another.

Effective Performance Feedback

Specific, respectful, future-oriented feedback focused on problem solving.

Promotion

Moving an employee upward in the organizational hierarchy.

Transfer

Moving an employee to a different position at the same organizational level.

Reasons transfers may occur

1. To solve organizational problems by deploying their skills at another location.

2. To broaden employees’ experience by assigning them to a different position.

3. To retain employees’ interest and motivation by presenting them with new challenges.

4. To solve some employee problems, such as personal conflicts with co-workers or supervisors.

Dismissal

Removing an employee from the organization through layoffs, downsizing, or termination.

Labor Relations

The management of relationships between employers and labor unions.

National Labor Relations Board (NLRB)

Government agency that oversees union elections and collective bargaining.

Collective Bargaining

Negotiations between management and employees over wages, benefits, and working conditions.

Occupational Safety and Health Act (OSHA)

Law requiring organizations to provide safe and nonhazardous working conditions.

Equal Employment Opportunity (EEO)

Efforts to eliminate discrimination in employment decisions.

Equal Employment Opportunity Commission (EEOC)

Agency that enforces laws against workplace discrimination.