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  1. 1. Human Resource Management Chapter Twelve
  2. 2. High Performance Work Practices <ul><li>Lead to both high individual and high organizational performance. </li></ul><ul><li>Improving the knowledge, skills, and abilities of an organization’s employees. </li></ul><ul><li>Increasing employee motivation. </li></ul><ul><li>Reducing loafing on the job. </li></ul><ul><li>Enhancing the retention of quality employees while encouraging low performers to leave. </li></ul>
  3. 3. Examples of High Performance Work Practices <ul><li>Self-directed work teams </li></ul><ul><li>Job rotation </li></ul><ul><li>High levels of skills training </li></ul><ul><li>Problem-solving groups </li></ul><ul><li>Encouragement of innovative and creative behavior </li></ul><ul><li>Extensive employee involvement and training </li></ul><ul><li>Implementation of employee suggestions </li></ul><ul><li>Contingent pay based on performance </li></ul><ul><li>Coaching/mentoring </li></ul><ul><li>Info sharing </li></ul><ul><li>Use of employee attitude surveys </li></ul><ul><li>Comprehensive employee recruitment and selection procedures </li></ul>
  4. 4. Human Resource Management Process <ul><li>Activities necessary for staffing the organization and sustaining high employee performance. </li></ul>
  5. 5. Human Resource Management Process Human Resource Planning Recruitment Decruitment Selection Competent Employees Orientation Performance Management Training Compensation and Benefits Career Development Adapted, competent employees with current skills and knowledge High performing employees over the long term External Environment External Environment
  6. 6. External Environment <ul><li>Labor unions—an organization that represents workers and seeks to protect their interests through collective bargaining </li></ul><ul><li>Government laws and regulations </li></ul><ul><li>Unemployment rate </li></ul>
  7. 7. Human Resource Planning <ul><li>Assessing current human resources </li></ul><ul><li>Assessing future human resource needs </li></ul><ul><li>Developing a program to meet those future needs </li></ul>
  8. 8. Assessing Current Human Resources <ul><li>Human resource inventory </li></ul><ul><ul><li>Name, education, training, prior employment, languages spoken, special capabilities, and specialized skills </li></ul></ul><ul><li>Job analysis—defines jobs and behaviors necessary to perform them </li></ul><ul><ul><li>Direct observation, filming, interviewing employees and managers, questionnaires </li></ul></ul><ul><li>Job description—what a jobholder does, how it is done, and why it is done </li></ul><ul><li>Job specification—minimum qualifications </li></ul>
  9. 9. Meeting Future Human Resource Needs <ul><li>Future human resource needs are determined by an organization’s mission, goals, and strategies </li></ul><ul><li>Estimate HR shortages and overstaffing issues (number, type) </li></ul>
  10. 10. Recruitment and Decruitment
  11. 11. Recruitment <ul><li>Process of locating, identifying, and attracting capable applicants </li></ul>
  12. 12. Sources of Potential Job Candidates Might be limited to entry-level positions with undergrads Large centralized body of candidates College recruiting Generates many unqualified candidates Wide distribution; can be targeted to specific groups Company website May not increase diversity and mix of employees Can generate strong candidates b/c a referral reflects on the recommender Employee referrals Generates many unqualified candidates Reaches large number of people; can get immediate feedback Internet Disadvantages Advantages Source
  13. 13. Decruitment <ul><li>Techniques for reducing the labor supply within an organization </li></ul>
  14. 14. Decruitment Options Providing incentives to more senior employees to have them retire before their normal retirement date Early retirements Having employees work fewer hours or share jobs Reduced workweeks Moving employees laterally or downward Transfers Not filling openings created by voluntary resignations or normal retirements Attrition Temporary involuntary termination; may last only a few day or extend to years Layoffs Permanent involuntary termination Firing Description Option
  15. 15. Selection
  16. 16. Selection Process <ul><li>Screening job applicants to ensure that the most appropriate candidates are hired </li></ul><ul><li>Reject errors—rejecting candidates who would have performed well on the job </li></ul><ul><ul><li>Cost of ongoing screening, charges of discrimination </li></ul></ul><ul><li>Accept errors—accepting candidates who ultimately perform poorly </li></ul><ul><ul><li>Costs of training the employee, profits lost, severance, subsequent recruiting and screening </li></ul></ul>
  17. 17. Types of Selection Devices <ul><li>Application forms </li></ul><ul><li>Written tests—aptitude, intelligence, ability, personality, and Emotional Intelligence </li></ul><ul><li>Performance-simulation tests </li></ul><ul><ul><li>Work sampling—do the job </li></ul></ul><ul><ul><li>Assessment centers—simulate real problems candidates would encounter </li></ul></ul><ul><li>Interviews </li></ul><ul><li>Background investigations </li></ul><ul><li>Physical examinations </li></ul>
  18. 18. Suggestions for Interviewing <ul><li>Structure a fixed set of questions for all applicants </li></ul><ul><li>Have detailed info about the job </li></ul><ul><li>Ask questions that require applicants to give details of actual job behaviors </li></ul><ul><li>Take notes during the interview </li></ul><ul><li>Role play in mock scenarios </li></ul>
  19. 19. Human Resource Management Process Human Resource Planning Recruitment Decruitment Selection Competent Employees Orientation Performance Management Training Compensation and Benefits Career Development Adapted, competent employees with current skills and knowledge High performing employees over the long term External Environment External Environment
  20. 20. Microsoft Interview Questions <ul><li>“ Tell me about your most intellectually challenging and difficult problem. Why was it difficult? How did you work through it? How did it work out?” </li></ul><ul><li>“ Tell me about one of the most high potential people you have had the opportunity to work with. What did you do to support that person’s development?” </li></ul><ul><li>“ Tell me about a time that you had to discipline an employee. What was your approach to the conversation? What was your strategy? What was the outcome?” </li></ul>
  21. 21. Orientation
  22. 22. Orientation <ul><li>Introduction of a new employee to his or her job, the organization, and the culture </li></ul><ul><li>May be formal or informal </li></ul><ul><li>Example of intense orientation—Trilogy’s Trilogy University </li></ul>
  23. 23. Work Unit Orientation <ul><li>Familiarizes the employee with the goals of the work unit, clarifies how his/her job contributes to the work unit, and includes an introduction to coworkers </li></ul>
  24. 24. Organization Orientation <ul><li>Informs the new employee about the organization’s objectives, history, philosophy, procedures, and rules. </li></ul>
  25. 25. Employee Training
  26. 26. Types of Training Career planning, time management, wellness, personal financial planning Personal Defining problems, analyzing alternatives Problem solving Safety, health, sexual harassment Mandatory Finance, marketing, quality, strategic planning, project management, sales Business Product training and knowledge, sales process, information technology, job specific Technical Leadership, coaching, communication, conflict resolution, team building, diversity Interpersonal skills Includes Type
  27. 27. Employee Training Methods <ul><li>Traditional Training Methods </li></ul><ul><ul><li>On-the-job </li></ul></ul><ul><ul><li>Job rotation </li></ul></ul><ul><ul><li>Mentoring and coaching </li></ul></ul><ul><ul><li>Experiential exercises </li></ul></ul><ul><ul><li>Workbooks and manuals </li></ul></ul><ul><li>Technology-based Training Methods </li></ul><ul><ul><li>CD-ROM, DVD, videotape </li></ul></ul><ul><ul><li>Videoconference </li></ul></ul><ul><ul><li>E-learning </li></ul></ul>
  28. 28. Employee Performance Management
  29. 29. Performance Management System <ul><li>A process of establishing performance standards and evaluating performance in order to arrive at objective human resource decisions as well as to provide documentation to support those decisions. </li></ul>
  30. 30. Performance Appraisal Methods Time consuming Thorough 360-degree appraisals Time consuming Results-oriented MBO Unwieldy with large numbers of employees Compares employees Multi-person comparisons Time consuming; difficult to develop Focus on specific and measurable job behaviors BARS No depth about job behaviors Quantitative; less time consuming Graphic rating scales Dependent upon the evaluator’s writing skills Simple to use Written essays Disadvantage Advantage Method
  31. 31. Compensation and Benefits
  32. 32. Factors that Influence Compensation and Benefits <ul><li>Employee tenure and performance </li></ul><ul><li>Kind of job performed </li></ul><ul><li>Management philosophy </li></ul><ul><li>Unionization </li></ul><ul><li>Industry </li></ul><ul><li>Company size </li></ul><ul><li>Geographical location </li></ul><ul><li>Company profitability </li></ul>
  33. 33. Skill-based Pay <ul><li>A pay system that rewards employees for the job skills they can demonstrate. </li></ul>
  34. 34. Current Issues in Human Resource Management
  35. 35. Managing Downsizing <ul><li>Open and honest communication </li></ul><ul><ul><li>Inform people being let go as soon as possible </li></ul></ul><ul><ul><li>Inform survivors about the company’s new goals, impact on their jobs, and future plans </li></ul></ul><ul><li>Severance pay and benefits </li></ul><ul><li>Job search assistance </li></ul><ul><li>Support for survivors </li></ul>
  36. 36. Managing Workforce Diversity <ul><li>Recruitment </li></ul><ul><ul><li>Widen recruitment net to include non-traditional sources such as women’s job networks, over-50 clubs, and ethnic newspapers. </li></ul></ul><ul><li>Selection </li></ul><ul><ul><li>Make sure selection process does not discriminate. </li></ul></ul><ul><ul><li>Make sure applicants are comfortable with the organization’s culture. </li></ul></ul><ul><li>Orientation and Training </li></ul><ul><ul><li>Mentoring programs; required diversity training </li></ul></ul>