Ch 12: Human Resource Management

Strategic Human Resource Management

• Human Resource Management (HRM):

  • Activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals.

• Strategic Human Resource Management:

  • The process by which managers design the components of an HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals.

  • HRM is a critical component of strategic agendas.

The Legal Environment of HRM

• Equal Employment Opportunity (EEO):

  • The equal right of all citizens to the opportunity to obtain employment regardless of their gender, age, race, country of origin, religion, or disabilities.

• Equal Employment Opportunity Commission (EEOC):

  • Enforces employment laws.

Major Equal Employment Opportunity Laws Affecting HRM

Contemporary Challenges for Managers

• How to eliminate sexual harassment.

• How to make accommodations for employees with disabilities.

• How to ensure that LGBT employees are treated equally.

• How to address religious rights.

• How to minimize the wage gap between women and men.

• How to deal with employees with substance abuse problems and mental health issues.

• How to ensure inclusion for all employees.

Recruitment and Selection

• Recruitment:

  • Activities that managers engage in to develop a pool of candidates for open positions.

• Selection:

  • The process that managers use to determine the relative qualifications of job applicants and their potential for performing well in a particular job.

Human Resource Planning

• Human Resource Planning (HRP):

  • Activities that managers engage in to forecast their current and future needs for human resources.

• Demand Forecasts:

  • Estimates the qualifications and numbers of employees the firm will need given its goals and strategies.

• Supply Forecasts:

  • Estimates the availability and qualifications of current employees now and in the future, as well as the supply of qualified workers in the external labor market.

Outsourcing

• Outsourcing:

  • Using outside suppliers and manufacturers to produce goods and services.

  • Using contract workers rather than hiring them.

  • More flexible for the firm and provides human capital at a lower cost.

Job Analysis

• Job Analysis:

  • Job Description: Identifying the tasks, duties, and responsibilities that make up a job.

  • Job Specifications: Knowledge, skills, and abilities needed to perform the job. Should be done for each job in the organization.

  • Methods:

  • Observing what current workers do.

  • Having workers and managers fill out questionnaires.

  • Position Analysis Questionnaire (PAQ):

    • Six divisions:

    1. Information input.

    2. Mental processes.

    3. Work output.

    4. Relationships with others.

    5. Job context.

    6. Work pace.

Recruitment Methods

• External Recruiting:

  • Looking outside the organization for people who have not worked at the firm previously.

  • Methods include job postings on career websites, job fairs, and recruitment meetings with groups in the local community.

Advantages of External Recruiting

• Access to a potentially large applicant pool.

• Ability to attract people who have the skills, knowledge, and abilities the organization needs.

• Bringing in newcomers who may have a fresh approach to problems and are up to date on the latest technology.

Disadvantages of External Recruiting

• High costs.

• Additional training required.

• Uncertainty about the performance of new hires.

Internal Recruiting

• Internal Recruiting:

  • Managers turn to existing employees to fill open positions.

Benefits of Internal Recruiting

• Internal applicants are already familiar with the organization.

• Managers already know the candidates.

• Can help boost levels of employee motivation and morale.

Disadvantages of Internal Recruiting

• Limited pool of candidates.

• Candidates may be “set” in the organization’s ways.

• Lack of suitable internal candidates.

• External recruiting may bring new ideas and approaches.

Honest Recruitment

• Realistic Job Preview (RJP):

  • An honest assessment of the advantages and disadvantages of a job and organization.

  • Can reduce the number of new hires who quit when jobs and organizations fail to meet their unrealistic expectations.

The Selection Process

• Selection Process:

  • Managers find out whether each applicant is qualified for the position and likely to be a good performer through background checks, interviews, tests, and references.

Selection Tools

• Common Selection Tools:

  • Interviews

  • Performance tests

  • Background information checks

  • Physical ability tests

  • Paper-and-pencil tests

Reliability and Validity

• Reliability:

  • The degree to which the tool or test measures the same thing each time it is used.

• Validity:

  • The degree to which a tool or test measures what it purports to measure.

  • A test cannot be valid if it is not reliable.

Training and Development

• Training:

  • Teaching organizational members how to perform current jobs and helping them to acquire the knowledge and skills they need to be effective performers.

• Development:

  • Building the knowledge and skills of organizational members so they are prepared to take on new responsibilities and challenges.

  • Needs Assessment:

  • Assessment of which employees need training or development and what type of skills or knowledge they need to acquire.

Methods of Training and Development

• Methods Include:

  • Classroom instruction

  • On-the-job training

  • Apprenticeships (can include classroom instruction and on-the-job training)

  • Varied work experiences

  • Formal education

Performance Appraisal and Feedback

• Performance Appraisal:

  • The evaluation of employees’ job performance and contributions to their organization, focusing on the evaluation of traits, behaviors, and results.

  • Objective or subjective assessment.

• Performance Feedback:

  • The process through which managers share performance appraisal information with employees and develop plans for future improvement.

Types of Performance Appraisals

• Formal Appraisals:

  • Conducted at a set time during the year, based on performance dimensions specified in advance.

• Informal Appraisals:

  • Unscheduled appraisals of ongoing progress and areas for improvement.

Effective Performance Feedback Tips

1. Be specific and focus on correctable behaviors or outcomes.

2. Approach performance appraisal as an exercise in problem-solving, not criticizing.

3. Express confidence in the employee’s ability to improve.

4. Provide feedback both formally and informally.

5. Praise high performance and areas of excellence.

6. Avoid personal criticisms and treat employees with respect.

7. Agree on a timetable for performance improvements.

Pay and Benefits

• Pay:

  • Includes employees’ base salaries, pay raises, and bonuses, determined by organizational characteristics, job characteristics, and levels of performance.

• Pay Level:

  • The relative position of an organization’s incentives compared to other firms in the same industry consuming similar types of workers.

• Benefit Types:

  • Legally Required: Social Security, workers’ compensation, unemployment insurance, health insurance.

  • Voluntary: Retirement, daycare, flexible working hours.

  • Cafeteria-style benefits plans allow employees to choose their best mix of benefits, but can be hard to manage.

Labor Relations

• Labor Relations:

  • Activities managers engage in to ensure good working relationships with unions representing employee interests.

• Key Governmental Efforts:

  • Fair Labor Standards Act (1938)

  • Equal Pay Act (1963)

  • Occupational Safety and Health Act (1970)

Unions

• Represent workers’ interests to management in organizations, providing collective strength.

Collective Bargaining

• Collective Bargaining:

  • Negotiation between labor and management aimed at resolving conflicts and disputes on issues like hours, wages, benefits, working conditions, and job security.

  • Grievance procedures allow employees to voice issues and facilitate negotiations.

Example: Wonderlic

• Wonderlic:

  • Provides various tools for pre-screening employees, including cognitive, personality, and other tests, with demos available on their site.