2. Learning Objectives
L01: HRM & Competitive advantage
L02: Recruitment - internal and external
L03: Selection methods
L04: Training and development
L05: Appraisal methods
L06: Reward systems
L07: Unions and labor laws
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3. Strategic Human Resources Management
1. People create value
3. Talent is rare
5. A group of well-chosen, motivated people is
difficult to imitate
7. People can be organized for success
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4. The puzzle of HR
Attracting talent
Maintaining a well-trained, highly motivated and
loyal workforce
Managing diversity
Devising effective compensation systems
Managing layoffs
Containing health care and pension costs
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6. Job Analysis
Tools for determining what is done on a given job
and what should be done on that job
b Job description describes job itself
essential tasks, duties, and responsibilities involved in
performing job
Job specification prescribes
skills, knowledge, abilities, and other characteristics
needed to perform job
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7. Staffing the Organization
Recruitment
development of a pool of applicants for jobs in an
organization
Selection
choosing from among qualified applicants to hire into
an organization
Outplacement
process of helping people who have been dismissed
from the company to regain employment elsewhere
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8. Advantages & Disadvantages of
Internal Recruitment
Knowledge of company • Limited applicant pool
and employees • Inhibits company
Employee motivation changes – cultures,
Outsiders may goals, etc.
demoralize employees
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9. External Recruitment
Brings in new blood
Can inspire motivation
Sources
Internet job boards, company Web sites, employee
referrals, newspaper advertisements and college
campus recruiting
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11. Interviews
c Structured interviews
Interviewer asks all applicants the same questions
and compares responses to standardized set of
answers
Types
Situational (hypothetical)
Behavioral (SAR)
7 Unstructured interviews
interviewer asks different interviewees different
questions
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12. Hiring Checks
Reference
Contact references or former employers and
educational institutions
Background
SSN verification, past employment/ education
verification, criminal records and credit checks
Internet searches (e.g. Google, MySpace,
Facebook)
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13. Termination Methods
Downsizing
laying off large numbers of managerial and other
employees
Termination
dismissal of employees for poor performance or
other reasons
Employment-at-will
legal concept that an employee may be terminated
for any reason
Termination interview
discussion between a manager and an employee
about the employee’s dismissal.
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14. Termination Interview
Do’s Don’ts
-Give as much warning as -Leave room for confusion
possible for mass layoffs when firing
-Sit down one on one with -Allow time for debate
the individual, in a private during a termination
office session
-Complete a termination -Make personal comments
session within 15 when firing someone
minutes -Rush a fired employees
-Be sure the employee offsite unless security is
hears about his or her an issue
termination from a
manager, not a
colleague
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15. Training and Development
Training
Teaching lower-level employees how to perform their
present jobs.
Development
teaching managers and professional employees broad
skills needed for their present and future jobs.
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16. Types of Training
Orientation
familiarizes new employees with their jobs, work units,
and organization in general
Team training
teaches employees skills they need to work together
and helps them interact
Diversity training
identifying and reducing hidden biases against people
with differences and developing skills needed to
manage a diversified workforce
Management training
improving managers’ people skills
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17. Performance Appraisal
Assessment of employee’s job performance
Administrative
provides managers with information to make
salary, promotion, and dismissal decisions
helps employees understand and accept basis of
those decisions
Developmental
identify and plan training, experience, or other
improvement that employees require
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18. Types of Performance Appraisals
Trait appraisal
involves judgments about employee performance traits
such as initiative, leadership and attitude
Behavioral appraisal
focuses on observable aspects of performance
Results appraisal
focuses on quantitative data such as sales volume,
units produced or profits
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19. Guidelines for Performance Appraisals
Base performance standards on job analysis
Communicate performance standards to
employees
Evaluate employees on specific performance-
related behaviors rather than on a single global
or overall measure
Document the performance appraisal process
carefully
Use more than one rater
Take legal considerations into account
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20. Who should do the appraisal?
Managers and supervisors
Peers and team members
Subordinates
Internal and external customers
Self appraisals
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21. Designing Reward Systems
Effective reward systems take into account:
Organization
Position
Individual
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22. Pay Plan Factors
Internal
organization’s compensation policy, worth of each job,
employee’s relative worth, and employer’s ability to
pay
External
conditions of labor market, area wage rates, cost of
living, use of collective bargaining (union negotiations)
and legal requirements
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23. Employee Incentives
Individual incentive plan
Compares worker’s performance against objective
standard, with pay determined by employee’s
performance.
Group incentive plan
pay is based on group performance.
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24. Group Incentive Plans
Gainsharing plans
reward employees for increasing productivity or saving
money in areas under their direct control.
Profit-sharing plans
implemented in division or organization although some
incentives may be tailored to unit performance
Merit pay systems
pay raises and bonuses are based on the merit rating
received from their boss
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25. CEO Pay Controversy
CEOs earned 500 times the average worker’s pay
Median salary of $2.5 million for CEOs of companies
in the Standard and Poor’s stock index
Stock options are the fastest-growing part of
executive compensation
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26. What do You think?
Are CEOs paid too much? Why? Why not?
Should CEOs be given stock options as part of their
compensation package? Why? Why not?
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27. Employee Benefits
Benefits required by law Optional benefits
Worker’s Compensation - Pension plans
Social Security - Medical insurance
Unemployment - Hospital insurance
insurance
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28. Legal Requirements of Pay Systems
Equal Pay Act of 1963
prohibits unequal pay for men and women who
perform equal work.
Pregnancy Discrimination Act of 1978
Pregnancy is a disability and qualifies a woman to
receive the same benefits that she would with any
other disability
Employment Income Security Act of 1974
protects private pension programs from
mismanagement.
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29. What is OSHA?
Occupational Safety and Health Act of 1970
Requires employers to pursue workplace safety
Employers must maintain records of injuries and
deaths caused by workplace accidents and submit to
on-site inspection
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30. Labor Relations
The system of relations between workers and
management
Labor unions established to ensure that
employees are treated fairly with respect to
wages, working condition, and other issues
National Labor Relations Act – declared labor
organizations legal, established five unfair
employer labor practices, and creating the
National Labor Relations Board (NLRB)
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31. Other Labor Relations Laws
Labor-Management Relations Act protected
employers
Labor-Management Reporting and Disclosure
Act established a Bill of Rights for union members,
control over dues increases, and imposed reporting
requirements for unions.
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32. Four factors play a significant role
1. Economic factors
2. Job dissatisfaction
3. Belief that the union has power to obtain desired
benefits can generate a pro-union vote
4. The image of the union
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36. YOU should be able to
L01: Discuss how companies use human resources
management to gain competitive advantage
L02: Give reasons why companies recruit both
internally and externally for new hires
L03: Identify various methods for selecting new
employees
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37. YOU should be able to
L04: Evaluate the importance of spending on
training and development
L05: Explain alternatives for who appraises an
employee’s performance
L06: Describe the fundamental aspects of a reward
system.
L07: Summarize how unions and labor laws
influence human resources management
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38. Practice and apply your knowledge by going online at
www.mhhe.com/batemanM
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39. Test Your Knowledge
Which of these methods has been found to be
the way most job positions get filled?
A) Want ads
B) Employee referrals
C) Private employment agencies
D) Unions
E) None of the above.
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40. Test Your Knowledge
Hammond University requires all applicants to their Masters
of Business Administration Program to take the G.M.A.T.
exam. This exam measures the test taker's aptitude for
management by measuring things like verbal
comprehension, mathematical calculations, and other
necessary management skills. This type of test is
classified as a(n):
A) personality test.
B) performance test.
C) integrity test.
D) cognitive ability test.
E) none of the above.
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41. Test Your Knowledge
Companies invest in training to enhance
individual performance and organizational
productivity. Which of the following is NOT a
typical training exercise?
A) Orientation training
B) Team training
C) Personality training
D) Diversity training
E) All of the above
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44. Test Your Knowledge
Summarize how unions and labor laws
influence human resources management
What are the major labor laws that influence
human resources management?
How do unions influence human resources
management?
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