Ch 12

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Ch 12

  1. 1. Human Resource Management Chapter 12
  2. 2. The Strategic Role of Human Resource Management  Human Resource management has shed its old personnel image and gained recognition as a vital player in corporate strategy  HRM departments not only support the organization’s strategic objective but actively pursue an ongoing, integrated plan for furthering the organization’s performance ●Higher employee productivity ●Stronger financial results ●Achieve organization’s strategic goals ●Key players on management team Manager’s Challenge: UPS Buffalo, New York Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.2
  3. 3. Human Resource Management Matching process, All managers Employees are integrating the are resource viewed as organization’s managers assets goals with employees’ needs How a company manages its workforce may be single more important factor in sustained competitive success Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.3
  4. 4. Current Strategic Issues Determine a company’s need for skills and employees  Becoming more competitive globally  Improving quality, productivity, & customer service  Managing mergers & acquisitions  Applying new information technology for e-business Experiential Exercise: Do You Want to be an HR Manager? Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.4
  5. 5. Human Resource Management Goals HRM Environment Company Strategy Legislation Trends in society International events Changing technology Attract an Effective Workforce HRM planning Job analysis Forecasting Recruiting SelectingMaintain an Effective Workforce Develop an Effective Workforce Wage and salary Benefits Training Labor relations Development Terminations Appraisal Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.5
  6. 6. Environmental Influences on HRM  Competitive Strategy – Building Human Capital – Information Technology  Federal Legislation Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.6
  7. 7. Three Ways HR Is Changing 1 Focus on building human capital 2 Development of global HR strategies 3 IHRM The using of information technology Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.7
  8. 8. Human Capital - IHRM  Human Capital = economic value of the knowledge, experience, skills, and capabilities of employees  IHRM = addresses the complexity that results from recruiting, selecting, developing, and maintaining a diverse workforce on a global scale Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.8
  9. 9. Information Technology  Human resource information technology = an integrated computer system designed to provide data and information used in HR planning and decision making  Traditional HR to e-HR significantly affected every area of human resource management  Some organizations are close to a paperless HRM system – saves time, money, frees staff Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.9
  10. 10. Federal Legislation  Discrimination = hiring or promoting of applicants based on criteria that are not job relevant  Affirmative action = policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.10
  11. 11. Major Federal Laws - HRM Exhibit 12.3  Equal Opportunity/Discrimination Laws  Compensation/Benefits Laws  Health/Safety Laws Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.11
  12. 12. The Changing Social Contract New Contract Old Contract Employee Employability, personal responsibility Job security Partner in business improvement A cog in the machine Learning Knowing Employer Continuous learning, lateral career Traditional compensation package movement, incentive compensation Creative development opportunities Challenging assignments Standard training program Information and resources Routine jobs Limited information SOURCE: Based on Louisa Wah, “The New Workplace Paradox “ Management Review, January 1998,7; and Douglas T. Hall and Jonathan B. Moss, “The New Protean Career Contract: Helping Organizations and Employees Adapt,” Organizational Dynamics, winter 1998, 22-37. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.12
  13. 13. HR Issues in the New Workplace  Teams and Projects  Temporary Employees  Technology  Work-Life Balance  Downsizing Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.13
  14. 14. HR Issues in the Teams and New Workplace Projects  Teams and Projects – major trend in today’s workplace  With emphasis on projects, distinctions between job categories and descriptions are collapsing  Many of today’s workers straddle functional & departmental boundaries; handle multiple tasks/responsibilities  Virtual team = made up of members who – are geographically or organizationally dispersed, – rarely meet face to face, and – do their work using advance information technologies. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.14
  15. 15. HR Issues in the Temporary New Workplace Employees  In opening years of the 21st century, largest employer in U.S. was a temporary employment agency, Manpower, Inc.  Temporary Employees do everything from data entry to interim CEO  Contingent workers = people who work for an organization, but not on a permanent or full-time basis, including temporary placements, contracted professionals, or leased employees Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.15
  16. 16. HR Issues in the New Workplace Technology  Telecommuting and virtual teams are related trends  Telecommuting = using computers and telecommunications equipment to perform work from home or another remote location  Work anywhere - wireless Internet devices, laptops, cell phones, fax machines  Extreme telecommuting = people live nd work in countries far away from the organization’s physical location Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.16
  17. 17. HR Issues in the Work-Life New Workplace Balance Many European companies ahead of U.S. companies  Telecommuting is one way organizations help employees lead more balanced lives  Flexible scheduling important in today’s workplace – 27% of workforce/flexible hours  Broad Work-Life Balance initiatives – critical retention strategy – on-site gym & childcare, paid leaves & sabbaticals Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.17
  18. 18. HR Issues in the Downsizing New Workplace  Downsizing = intentional, planned reduction in the size of a company’s workforce  Managers can smooth the downsizing process – Regularly communicating with employees – Providing them with as much information as possible – Providing assistance to workers who will lose their jobs – Using training and development for remaining employees Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.18
  19. 19. HR Issues in the New Workplace  HR issues present many challenges for organizations and HR managers as they work toward the three primary HR goals ● Attracting ● Developing ● Maintaining an effective workforce Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.19
  20. 20. Matching Model Attracting an Effective Workforce  An employee selection approach in which the organization and the applicant attempt to match each other’s needs, interests, and values Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.20
  21. 21. Attracting an Effective Workforce HR Planning Choose Recruiting Choose Recruiting Select the Welcome New Retirements Sources Sources Candidate Employee Growth Want ads Application Want ads Resignations Headhunters Interview Headhunters Internet Tests InternetCompany Needs Employee ContributionsStrategic goals Matching Model AbilityCurrent & future competencies EducationMarket changes CreativityEmployee turnover Match with CommitmentCorporate culture Expertise Company Inducements Employee Needs Pay and benefits Stage of career Meaningful work Match with Personal values Advancement Promotion aspirations Training Outside interests Challenge Family concerns Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.21
  22. 22. Human Resource Planning  Forecasting of human resource needs and the projected matching of individuals with expected vacancies ● ? = New technologies emerging ● ? = Volume of business likely next 5-10 years ● ? = Turnover rate, how much is avoidable, if any Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.22
  23. 23. Recruiting  Recruiting = activities or practices that define the desired characteristics of applicants for specific jobs ● Internal – promote-from-within policies used by many to fill high-level positions ● External = recruiting newcomers from outside has advantage of multiple sources ● E-cruiting = use of Internet - fastest-growing approach to recruiting Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.23
  24. 24. Basic Building Blocks of HR Management Job Analysis Job Description Job Specification Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.24
  25. 25. Selecting  Selection = process of determining the skills, abilities, and other attributes a person needs to perform a particular job  Validity = relationship between an applicant’s score on a selection device and his or her future job performance Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.25
  26. 26. Selecting  Application form - device used for collecting information about an applicant’s education, previous job experience, and other background characteristics  Research = biographical information inventories can validly predict future job success Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.26
  27. 27. Interviewing An Applicant Know what you want Prepare a road map Use open-ended questions Do not ask irrelevant questions Do not rush interview Do not rely on your memory Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.27
  28. 28. Reasons For Not Asking About Home Ownership ● Might adversely affect applicants chances at the job ● Minorities and women may be less likely to own a home ● Home ownership is probably unrelated to job performance Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.28
  29. 29. Interview as Predictor of Success  Interview is not generally a valid predictor of job performance – has high face validity as a selection tool  Panel interviews – candidate meets with several interviewers who take turns asking questions – increases interview validity  Computer-based interviews - complement traditional interviewing information Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.29
  30. 30. Inappropriate or Illegal Questions Employment Applications and Interviews  Race-related questions  Age  Religion  Gender  National origin  Marital/family status Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.30
  31. 31. Testing and Assessment  Employment Test = written or computer- based test designed to measure a particular attribute such as intelligence or aptitude  Assessment Center = technique for selecting individuals with high managerial potential based on their performances on a series of simulated managerial tasks Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.31
  32. 32. Developing an Effective Workforce Following selection, next goal of HRM is to develop employees  Training and development = planned effort to facilitate employees’ learning of job-related skills and behaviors $100 billion/year  On-the-job training = an experienced employee “adopts” a new employee to teach him or her how to perform job duties Cross training Mentoring Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.32
  33. 33. Performance Appraisal  Process of observing and evaluating an employee’s performance, recording the assessment, and providing feedback to the employee  Steps ● Observing and assessing performance ● Recording the assessment ● Providing feedback to employee Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.33
  34. 34. Making Performance Appraisals A Positive Force 1. The accurate assessment of performance through the development and application of assessment systems such as a rating scale 2. Training managers to effectively use the performance appraisal interview to provide feedback that reinforces good performance and motivate employee development Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.34
  35. 35. Assessing Performance Accurately  360° Feedback Process  Performance Evaluation Errors – Stereotyping – Halo effect – BARS – Behaviorally-anchored rating scale Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.35
  36. 36. Behaviorally Anchored Rating Scale Job: Production Line Supervisor - Work Dimension: Work Scheduling Have no plan or Make a list of due dates Develop a comprehensive schedule of work and revise them but are schedule, observe target dates, and no concept of frequently surprised by and update the status of realistic due dates unforeseen events operations relative to plans, making schedule modifications as quickly as necessary 1 2 3 4 5 Have a sound plan but Usually satisfy time neglect to keep trace of constraints, with time and target dates or to report cost overruns coming up schedule slippages or other infrequently problems as they occur Sources: Based on J.P. Campbell, M.D. Dunnette, R.D. Arvey, and L.V. Hellervik, “The Development and Evaluation of behaviorally Based Rating Scales,”Journal of Applied Psychology 57 (1973), 25-22; and Francine Alexander, ‘performance Appraisals,” Small Business Reports (March 2989), 20-29. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.36
  37. 37. Maintaining an Effective Workforce  Compensation – Wage and Salary Systems – Compensation Equity – Pay for Performance  Benefits  Termination Ethical Dilemma: A Conflict of Responsibilities Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.37
  38. 38. Termination Value of termination for maintaining an effective workforce is two fold  Employees who are poor performers can be dismissed  Employers can use exit interviews in a positive manner Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.38

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