Principles of Management

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Week 7 (PPT7)

CHAPTER 9 HUMAN RESOURCE

MANAGEMENT

Getting the Right People

for Managerial Success

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LEARNING OBJECTIVES

9-1 Discuss the importance of strategic human resource management.

9-2 Discuss ways to recruit and hire the right people.

9-3 Outline common forms of compensation.

9-4 Describe the processes used for onboarding and learning and development.

9-5 Discuss effective performance management and feedback techniques.

9-6 List guidelines for handling promotions, transfers, discipline, and dismissals.

9-7 Discuss legal considerations managers should be aware of.

9-8 Describe labor-management issues and ways to work effectively with labor unions.

9-9 Review the steps for becoming a better receiver of feedback.

HOW TO PREPARE FOR A JOB INTERVIEW

• Ace Your Virtual Screening

• Be Prepared

• Dress Right and Be on Time

• Practice What to Say and What to Ask

• Know What You Will Be Asked

• Plan for a Strong Closing

STRATEGIC HUMAN RESOURCE MANAGEMENT

Human Resource Management: Managing an

Organization’s Most Important Resource

Internal and External HR Fit Promote Strategic HR

Management

The Role of Human and Social Capital

What Is the Best Approach to Strategic Human

Resource Management?

HUMAN RESOURCE MANAGEMENT: MANAGING AN ORGANIZATION’S MOST IMPORTANT RESOURCE

• Regardless of industry, all organizations

use HR practices to some extent to

manage their workers.

• Companies listed among the best places

to work become famous by offering

progressive and valued programs,

policies, and procedures.

• Effective HRM means putting employees

first.

INTERNAL AND EXTERNAL HR FIT PROMOTE STRATEGIC HR MANAGEMENT

• Internal Fit

• External Fit

FIGURE 9.2 Strategic HRM: How HR practices support strategic implementation. Source: Figure based in part on: C. Ostroff, A. J. Kinicki, and R. S. Muhammad, “Organizational Culture and Climate,” Handbook of Psychology: Volume 12, Industrial and Organizational Psychology, 2nd ed. (Hoboken, NJ: John Wiley & Sons, 2013), Chapter 24, pp. 643–676

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THE ROLE OF HUMAN AND SOCIAL CAPITAL

• Human Capital

• Social Capital

• Strategic HRM gets the right people,

competencies, and connections into the right

places at the right time

WHAT IS THE BEST APPROACH TO STRATEGIC HUMAN RESOURCE MANAGEMENT?

Talent Management

• Attitudes—Workers singled out as “stars” experience increased

job satisfaction, engagement, and commitment to the

organization.

• Behaviors—Employees identified as high-potential respond with

greater effort, better job performance, and lower turnover.

• Cognitions—Workers respond to their organizations’ elevated

perceptions with higher self-efficacy and increased feelings of

fulfillment.

High Performance Work Systems

RECRUITMENT AND SELECTION: PUTTING THE RIGHT PEOPLE INTO THE RIGHT JOBS

Recruitment: How to Attract Qualified Applicants

Selection: How to Choose the Best Person for the Job

RECRUITMENT: HOW TO ATTRACT QUALIFIED APPLICANTS

• Internal Recruiting: Hiring from the Inside

• External Recruiting

• Hybrid Approaches: Referrals and Boomerangs

• Which Recruitment Approach Is Best?

• How Fit Figures into Recruitment

SELECTION: HOW TO CHOOSE THE BEST PERSON FOR THE JOB

Selection is the process of screening job applicants

and choosing the best candidate for a position.

• What Are Legally Defensible Selection Tools?

• Background Information: Application Forms, Résumés,

and Background Checks

• Interviews: Unstructured, Situational, and Behavioral-

Description

• Employment Tests: Ability, Performance, Personality,

Integrity, and Others

MANAGING AN EFFECTIVE WORKFORCE: COMPENSATION AND BENEFITS

Wages or Salaries

Incentives

Benefits

ONBOARDING AND LEARNING AND DEVELOPMENT

• Onboarding: Helping Newcomers Learn the

Ropes

• Learning and Development: Helping People

Perform Better

ONBOARDING: HELPING NEWCOMERS LEARN THE ROPES

• Effective onboarding programs generate a host of benefits.

• Onboarding Best Practices

POSITIVE ONBOARDING

EXPERIENCES GENERATE:

NEGATIVE ONBOARDING

EXPERIENCES GENERATE:

Increased commitment, job

satisfaction, and productivity

Decreased productivity and job

satisfaction

Higher customer satisfaction Lower customer satisfaction

Lower turnover Higher costs and turnover

TABLE 9.1 The Effects of Positive and Negative Onboarding Experiences. Source: Findings based on C.

Caldwell and R. Peters, “New Employee Onboarding—Psychological Contracts and Ethical

Perspectives,” Journal of Management Development, 2018, pp. 27-39.

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LEARNING AND DEVELOPMENT: HELPING PEOPLE PERFORM BETTER

• The Learning and Development Process

• Different Types of Learning and Development

• Learning and Development Is Worth the

Investment

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PERFORMANCE MANAGEMENT

Performance Management in Human Resources

Performance Appraisals: Are They Worthwhile?

Two Kinds of Performance Appraisal: Objective and Subjective

Who Should Make Performance Appraisals?

Effective Performance Feedback

PERFORMANCE MANAGEMENT IN HUMAN RESOURCES

Performance management, can improve firm profitability as well as employee performance, productivity, motivation, and attitudes.

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Figure 9.4: Performance Management: Four steps.

Source: Adapted from A. J. Kinicki, K. J. L. Jacobson, S. J. Peterson, and G. E. Prussia, “Development and Validation of the Performance

Management Behavior Questionnaire,” Personnel Psychology, 66 (2013), pp. 1–45.

PERFORMANCE APPRAISALS: ARE THEY WORTHWHILE?

• A performance appraisal can sometimes consist

of a tense conversation that leaves both parties

feeling unsatisfied.

• Frequent feedback is best.

• Feedback should be future-oriented.

TWO KINDS OF PERFORMANCE APPRAISAL: OBJECTIVE AND SUBJECTIVE

Objective Appraisals

• They measure desired

results.

• They are harder to

challenge legally.

Subjective Appraisals

• Trait appraisals

• Behavioral appraisals

WHO SHOULD MAKE PERFORMANCE APPRAISALS?

• Peers, Subordinates, Customers, and Self

• 360-Degree Assessment: Appraisal by Multiple

Sources

• Forced Ranking: Grading on a Curve

EFFECTIVE PERFORMANCE FEEDBACK

• Most managers unintentionally inflate their

employees’ performance ratings.

• Take a problem-solving approach, avoid criticism,

and treat employees with respect.

• Be specific and direct in describing the

employee’s current performance and in

identifying the improvement you desire.

• Get the employee’s input.

• Follow up.

MANAGING PROMOTIONS, TRANSFERS, DISCIPLINING, AND DISMISSALS

Promotion: Moving Upward

Transfer: Moving Sideways

Disciplining and Demotion: The Threat of Moving Downward

Dismissal: Moving Out of the Organization

PROMOTION: MOVING UPWARD

• Fairness:

• It’s important that promotion be fair.

• Discrimination:

• Promotion decisions cannot and should not

discriminate on the basis of sexual orientation,

ethnicity, gender, age, physical ability, or any other

protected class.

• Others’ resentments:

• If someone is promoted, someone else may be

resentful about being passed over.

TRANSFER: MOVING SIDEWAYS

Employees might be transferred for four principal

reasons:

1. To solve organizational problems by using their skills at another

location.

2. To broaden their experience in being assigned to a different

position.

3. To retain their interest and motivation by being presented with a

new challenge.

4. To solve some employee problems, such as personal

differences with their bosses.

DISCIPLINING AND DEMOTION: THE THREAT OF MOVING DOWNWARD

Poorly performing

employees may be

demoted—that is, have

their current

responsibilities, pay, and

perquisites taken away.

Tips to manage the demotion process:

• Base demotion decisions on unbiased, well-documented evidence.

• Communicate the organization’s desire to retain the employee.

• Be honest about performance-related issues that led to the demotion

DISMISSAL: MOVING OUT OF THE ORGANIZATION

• Layoffs

• Downsizings

• Firings

• Exit Interviews, Nondisparagement Agreements,

and Employment at Will

THE LEGAL REQUIREMENTS of HUMAN RESOURCE MANAGEMENT

Labor Relations

Compensation and Benefits

Health and Safety

Equal Employment Opportunity

Workplace Discrimination, Affirmative Action, Sexual Harassment, and Bullying

TABLE 9.2 SOME IMPORTANT RECENT U.S. FEDERAL LAWS AND REGULATIONS PROTECTING

EMPLOYEES: LABOR RELATIONS

YEAR LAW OR REGULATION PROVISIONS

1975 Privacy Act Gives employees legal right to examine

letters of reference concerning them

1986 Immigration Reform &

Control Act

Requires employers to verify the eligibility

for employment of all their new hires

(including U.S. citizens)

2003 Sarbanes-Oxley Act Prohibits employers from demoting or firing

employees who raise accusations of fraud

to a federal agency

TABLE 9.2 SOME IMPORTANT RECENT U.S. FEDERAL LAWS AND REGULATIONS PROTECTING

EMPLOYEES: COMPENSATION AND BENEFITS

YEAR LAW OR REGULATION PROVISIONS

1974 Employee Retirement

Income Security Act

(ERIS)

Sets rules for managing pension plans;

provides federal insurance to cover

bankrupt plans

1993 Family and Medical

Leave Act

Requires employers to provide 12 weeks of

unpaid leave for medical and family

reasons, including for childbirth, adoption,

or family emergency

1996 Health Insurance

Portability and

Accountability Act

(HIPPA)

Allows employees to switch health

insurance plans when changing jobs and

receive new coverage regardless of

preexisting health conditions; prohibits

group plans from dropping ill employees

2007 Fair Minimum Wage Act Increased federal minimum wage to $7.25

per hour

COMPENSATION AND BENEFITS

• The Social Security Act of 1935 established the

U.S. retirement system.

• The Fair Labor Standards Act of 1938 (FLSA)

established minimum living standards for workers

engaged in interstate commerce, including

provision of a federal minimum wage and a

maximum workweek before overtime must be

paid, along with banning child labor.

TABLE 9.2 SOME IMPORTANT RECENT U.S. FEDERAL LAWS AND REGULATIONS PROTECTING

EMPLOYEES: HEALTH AND SAFETY

YEAR LAW OR REGULATION PROVISIONS

1970 Occupational Safety

and Health Act (OSHA)

Establishes minimum health and safety

standards

1985 Consolidation Omnibus

Budget Reconciliation

Act (COBRA)

Requires an extension of health insurance

benefits after termination

2010 Patient Protection and

Affordable Care Act

Employers with more than 50 employees

must provide health insurance

HEALTH AND SAFETY

• Beginning with the Occupational Safety and

Health Act (OSHA) of 1970, a body of law has

grown that requires organizations to provide

employees with nonhazardous working

conditions.

• Later laws extended health coverage, including

2010 health care reform legislation, which

requires employees with more than 50

employees to provide health insurance or pay a

penalty.

TABLE 9.2 SOME IMPORTANT RECENT U.S. FEDERAL LAWS AND REGULATIONS PROTECTING

EMPLOYEES: EQUAL EMPLOYMENT OPPORTUNITY

YEAR LAW OR REGULATION PROVISIONS

1963 Equal Pay Act Requires men and women be paid equally for

performing equal work

1964,

amended

1972

Civil Rights Act, Title VII Prohibits discrimination on basis of race, color, religion,

national origin, sex, or sexual orientation

1967,

amended

1978 and

1986

Age Discrimination in

Employment Act (ADEA)

Prohibits discrimination in employees over 40 years old;

restricts mandatory retirement

1990 Americans with Disabilities

Act (ADA)

Prohibits discrimination against essentially qualified

employees with physical or mental disabilities or chronic

illness; requires “reasonable accommodation” be

provided so

1991 Civil Rights Act Amends and clarifies Title VII, ADA, and

other laws; permits suits against employers

for punitive damages in cases of intentional

discrimination

EQUAL EMPLOYMENT OPPORTUNITY

• The effort to reduce discrimination in employment based on racial, ethnic, and religious bigotry and gender stereotypes began with Title VII of the Civil Rights Act of 1964.

• This established the Equal Employment Opportunity Commission (EEOC), whose job is to enforce antidiscrimination and other employment- related laws.

• Title VII applies to all organizations or their agents engaged in an industry affecting interstate commerce that employs 15 or more employees.

WORKPLACE DISCRIMINATION, AFFIRMATIVE ACTION, SEXUAL HARASSMENT, and BULLYING

• Workplace

Discrimination

• Affirmative Action

• Sexual Harassment

• Bullying

LABOR–MANAGEMENT ISSUES

How Workers Organize

How Unions and Management Negotiate a Contract

The Issues Unions and Management Negotiate About

Settling Labor–Management Disputes

HOW WORKERS ORGANIZE

• When workers decide to form a union, they first

must get other workers to sign an authorization

card, which designates a certain union as the

workers’ bargaining agent.

• Usually the employer refuses, at which point the

union can petition the National Labor Relations

Board (NLRB) to decide which union should

become the bargaining unit that represents the

workers.

HOW UNIONS AND MANAGEMENT NEGOTIATE A CONTRACT

• Once a union is recognized as an official

bargaining unit, its representatives can then

meet with management’s representatives to do

collective bargaining—to negotiate pay and

benefits and other work terms.

• When agreement is reached with management,

the union representatives take the collective

bargaining results back to the members for

ratification.

THE ISSUES UNIONS AND MANAGEMENT NEGOTIATE ABOUT

• Union Security and Types of Workplaces

• The union security clause

• Types of unionized and nonunionized workplaces

• Right-to-work laws

FIGURE 9.5 STATES WITH RIGHT-TO-WORK LAWS • What kind

of state do

you live in?

• (Alaska and

Hawaii are

non-right-

to-work

states.)

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SETTLING LABOR–MANAGEMENT DISPUTES

• Grievance Procedures

• Mediation

• Arbitration

CAREER CORNER: MODEL OF CAREER READINESS

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BECOMING A BETTER RECEIVER

• Identify Your Tendencies.

• Learn How To Listen.

• Try Self-compassion Instead of Defensiveness.

• Ask for Feedback.

• Practice Being Mindful.

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