L11 human resource management
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L11 human resource management Presentation Transcript

  • 1. The importance of human resource management (HRM) Chapter 11 Necessary part of the organising function of Human Resource Management management Selecting, training, and evaluating the work force As an important strategic tool HRM helps establish an organisation’s sustainable competitive advantage. Adds value to the firm High performance work practices lead to both high individual and high organisational performance. Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 2High-performance work practices The human resource management process Self-directed work teams Implementation of Job rotation employee suggestions High levels of skills Contingent pay based on training performance Problem-solving groups Coaching and mentoring Total quality management Significant amounts of procedures and processes information sharing Encouragement of Use of employee attitude innovative and creative surveys behavior Cross-functional Extensive employee integration involvement and training Comprehensive employee recruitment and selectionSources: Based on M. Huselid, “The Impact of Human ResourceManagement Practices on Turnover, Productivity, and Corporate proceduresFinancial Performance,” Academy of Management Journal, June 1995,p. 635; and B. Becker and B. Gerhart, “The Impact of Human ResourceManagement on organisational Performance: Progress and Prospects,”Academy of Management Journal, August 1996, p. 785. Figure 11.2 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 3 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 4 1
  • 2. Environmental factors affecting HRMEnvironmental factors affecting HRM (cont’d) Labour union Affirmative action An organisation that represents workers and seeks to The requirement that organisations take proactive steps protect their interests through collective bargaining. to ensure the full participation of protected groups in its workforce. Collective bargaining agreement A contractual agreement between a firm and a union Laws and regulations elected to represent a bargaining unit of employees of Limit managerial discretion in hiring, promoting, and the firm in bargaining for: discharging employees. Wage, hours, and working conditions. Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 5 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 6Managing human resources Current assessment Human resource (HR) planning Human resource inventory The process by which managers ensure that they have A review of the current make-up of the organisation’s the right number and kinds of people in the right places, current resource status and at the right times, who are capable of effectively and Job Analysis efficiently performing their tasks. An assessment that defines a job and the behaviors Helps avoid sudden talent shortages and surpluses. necessary to perform the job Steps in HR planning: Knowledge, skills, and abilities (KSAs) Assessing current human resources Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees Assessing future needs for human resources and their managers. Developing a program to meet those future needs Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 7 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 8 2
  • 3. Current assessment (cont’d) Meeting future human resource needs Job description Supply of Employees Demand for Employees A written statement of what the job holder does, how it is done, and why it is done. Job specification A written statement of the minimum qualifications that a person must possess to perform a given job successfully. Factors Affecting Staffing •Strategic Goals •Forecast demand for products and services •Availability of knowledge, skills, and abilities Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 9 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 10Recruitment and decruitment Major sources of potential job candidates Recruitment The process of locating, identifying, and attracting capable applicants to an organisation Decruitment The process of reducing a surplus of employees in the workforce of an organisation E-recruiting Recruitment of employees through the Internet organisational web sites Online recruiters Table 11.1 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 11 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 12 3
  • 4. Selection Selection decision outcomes Selection process The process of screening job applicants to ensure that the most appropriate candidates are hired. Selection An exercise in predicting which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organisation uses to evaluate performance. Selection errors: Reject errors for potentially successful applicants Accept errors for ultimately poor performers Figure 11.4 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 13 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 14Validity and reliability Types of selection devices Validity (of prediction) Application forms A proven relationship between the selection device used Written tests and some relevant criterion for successful performance in an organisation. Performance simulations High tests scores equate to high job performance; low scores to poor performance. Interviews Reliability (of prediction) Background investigations The degree of consistency with which a selection device Physical examinations measures the same thing. Individual test scores obtained with a selection device are consistent over multiple testing instances. Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 15 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 16 4
  • 5. Written tests Performance simulation tests Types of tests Testing an applicant’s ability to perform actual Intelligence: how smart are you? job behaviors, use required skills, and Aptitude: can you learn to do it? demonstrate specific knowledge of the job. Attitude: how do you feel about it? Work sampling Ability: can you do it? Requiring applicants to actually perform a task or set of Interest: do you want to do it? tasks that are central to successful job performance. Assessment centers Legal challenges to tests Dedicated facilities in which job candidates undergo a Lack of job-relatedness of test to job requirements series of performance simulation tests to evaluate their Discrimination in equal employment opportunity against managerial potential. members of protected classes Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 17 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 18Other selection approaches Suggestions for interviewing Situational interviews 1. Structure a fixed set of questions for all applicants. Interviews in which candidates are evaluated on how 2. Have detailed information about the job for which well they handle role play in mock scenarios. applicants are interviewing. Background investigations 3. Minimise any prior knowledge of applicants’ background, experience, interests, test scores, or other Verification of application data characteristics. Reference checks: Lack validity because self-selection of references ensures 4. Ask behavioural questions that require applicants to only positive outcomes. give detailed accounts of actual job behaviors. Physical examinations 5. Use a standardised evaluation form. Useful for physical requirements and for insurance 6. Take notes during the interview. purposes related to pre-existing conditions. 7. Avoid short interviews that encourage premature decision making. Source: Based on D.A. DeCenzo and S.P. Robbins, Human Resource Management, 7th ed. (New York Wiley: 2002, p. 200) Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 19 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia Figure 11.6 20 5
  • 6. Examples of “can’t ask and can ask” interview questions for managers* Other selection approaches (cont’d) Can’t Ask Can Ask Realistic job preview (RJP) What’s your birth date? Are you over 18? The process of relating to an applicant both the positive or How old are you? Would you relocate? and the negative aspects of the job. What’s your marital Are you authorised to Encourages mismatched applicants to withdraw. status? or Do you plan work in Australia Aligns successful applicants’ expectations with actual job to have a family? Have you ever been conditions; reducing turnover. What’s your native convicted of [fill in the language? blank]?—The crime Have you ever been must be reasonably arrested? related to the performance of the job.* Managers should be aware that there arenumerous other “can and can’t ask”questions. Be sure to always check withyour HR department for specific guidance. Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia Figure 11.7 21 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 22 Selection decision outcomes Quality of selection devices as predictors Selection Decision Accept Reject Successful Later Job Performance Correct Reject Decision Error Unsuccessful Accept Correct Error Decision Table 11.3 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia Figure 11.4 23 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 24 6
  • 7. Decruitment options Orientation The introduction of a new employee into his or her job and the organisation. Orientation objectives Orientation objectives Reduce Reduce Introduce Get to know Introduce Get to know Transition Learn job Learn job Transition anxiety anxiety work unit company work unit company Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia Table 11.2 25 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 26Orientation Types of training Transitioning a new employee into the Interpersonal skills organisation. Technical Work-unit orientation Familiarises new employee with work-unit goals Business Clarifies how his or her job contributes to unit goals Mandatory Introduces he or she to his or her coworkers Organisation orientation Performance management Informs new employee about the organisation’s objectives, Problem solving/Decision making history, philosophy, procedures, and rules. Includes a tour of the entire facility Personal Table 11.4 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 27 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 28 7
  • 8. Employee training methods Training Traditional Technology-Based skill categories skill categories Training Methods Training Methods On-the-job CD- Job rotation ROM/DVD/Videotapes/ Problem Problem Audiotapes Technical Technical Interpersonal Interpersonal Mentoring and Videoconferencing/ solving solving coaching teleconferencing/ Experiential exercises Satellite TV Workbooks/manuals E-learning or other training methods training methods interactive modules. Classroom lectures On-the-job On-the-job Off-the-job Off-the-job Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 29 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 30Employee performance management Performance appraisal methods Performance management system Written essays Critical incidents A process establishing performance standards Graphic rating scales and appraising employee performance in order to arrive at objective HR decisions and to Behaviorally anchored rating scales provide documentation in support of those (BARS) decisions. Multiperson comparisons Management By Objectives (MBO) 360 Degree feedback Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 31 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 32 8
  • 9. Factors that influence compensation andCompensation and benefits benefits Benefits of a fair, effective, and appropriate compensation system 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 Figure 11.8 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 33 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 34Career development Top 10 job factors for university graduates 1. Enjoying what they do Career defined 2. Opportunity to use skills and abilities The sequence of positions held by a person during his or her lifetime. 3. Opportunity for personal development Career development 4. Feeling what they do matters Provides for information, assessment, and training 5. Benefits Helps attract and retain highly talented people 6. Recognition for good performance Boundaryless career 7. Friendly co-workers A career in which individuals, not organisations, define 8. Job location career progression and organisational loyalty 9. Lots of money Source: Based on V. Frazee. 10. Working on teams “What’s Important to College Grads in Their First Jobs?” Personnel (ranked in order of importance) Journal, July 1996, p. 21. Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 35 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 36 9
  • 10. Contemporary HRM issues Contemporary HRM issues (cont’d) Downsizing Sexual harassment The planned elimination of jobs in an organisation An unwanted activity of a sexual nature that affects an Provide open and honest communication. individual’s employment. Reassure survivors. Unwanted sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature Managing work force diversity when submission or rejection of this conduct explicitly or Recruitment for diversity implicitly affects an individual’s employment. Selection without discrimination An offensive or hostile environment Orientation and training that is effective An environment in which a person is affected by elements of a sexual nature. Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 37 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 38Contemporary HRM issues (cont’d) Compensation and benefits packages Work-life balance Factors that Influence Compensation Employees have personal lives that they don’t leave and Benefits Packages behind when they come to work. organisations have become more attuned to their Size of Tenure and Type employees by offering family-friendly benefits: Company Performance of Job On-site child care Summer day camps Kind of Labor or Flextime Unionisation Capital Job sharing Business Leave for personal matters Intensive Flexible job hours Management Geographic Company Philosophy Location Profitability Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 39 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 40 10
  • 11. Industrial relations Career development Career Development Why employees join unions Why employees join unions Wage and In the Past Today Influence rules Influence rules In the Past Today outcomes Organisations Organisations Individuals Individuals Political power Security Security Political power Developed Developed Develop Develop Careers Careers Careers Careers Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 41 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 42 Some suggestions for a successfulCurrent issues in HRM management career Managing work Managing work force diversity force diversity Orientation and Orientation andRecruitmentRecruitment Selection Selection training training Work-Life balance Work-Life balance Sexual harassment Sexual harassment Occupational health and safety Occupational health and safety Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 43 Robbins, Bergman, Stagg, Coulter: Management 4e © 2006 Pearson Education Australia 44 11