assignment
faisal91
chapter_12.pptChapter 12
Human Resource Management
Human Resource Management
- Attracting & retaining employees
- Ensuring employees attain org. goals
- Strategic Human Resource Management
- When the components of HRM are coordinated
- When HRM is coordinated with strategy, structure, etc.
- When the HRM system contributes to org. performance
5 Components of HRM
- Recruitment & Selection
- Recruitment: Attract a pool of qualified candidates
- Selection: Choose the candidate who will perform the best on the job
5 Components of HRM
- Training & Development
- Develop employee’s skills & abilities
- Helps new employees integrate
- Ongoing process
- Example: Technology updates
5 Components of HRM
- Performance Appraisal & Feedback
- Control system – measure employee performance
- Used to distribute rewards to employees
- Used to determine motivational / training needs
- Developmental purpose
5 Components of HRM
- Compensation
- Should be related to performance
- Labor Relations
- Develop good working relationships with labor unions
The Legal Environment
- Equal Employment Opportunity (EEO)
- Laws that ensure that all citizens have equal opportunity to obtain employment regardless of gender, race, national origin, religion, etc.
- Based on Title VII of Civil Rights Act
- Equal Employment Opportunity Commission
- Enforces EEO laws
Recruitment & Selection
Human Resource Planning
- Forecasting current & future HR needs
- Performed prior to Recruitment & Selection
- Demand forecasts
- Estimates of the number and qualifications of employees the firm will need.
- Supply forecasts
- Estimates of the availability and qualifications of current workers and those in the labor market.
Human Resource Planning
- Outsourcing
- Using outside suppliers and manufacturers to produce goods and services
- More Flexible
- Cheaper
- Disadvantages
- Loss of control
- Less knowledge & commitment
- Angers unions
- Not appropriate for complex jobs
Job Analysis
- Job description – tasks, duties, responsibilities of the job
- Job Specification – knowledge, skills, & abilities need to perform the job
- Information is gathered from:
- Interviews with current employees
- Surveying current employees
Recruitment
- External Recruiting
- Look for people who have never worked for the company before
- College job fair, newspaper, websites, etc.
- Advantages
- Large applicant pool
- Access to people who have appropriate KSAs
- Fresh ideas
- Disadvantages
- Expensive
- Riskier
- Require more training
Recruitment
- Internal Recruiting
- Lateral moves or promotions
- Advantages
- Already familiar with the org.
- Managers know what to expect out of the candidate
- Boosts morale and motivation
- Cheaper
- Disadvantages
- Limited pool of applicants
Realistic Job Preview
- Managers have a tendency to overemphasize the positive aspects of the job
- Results in a poor fit
- Realistic job preview sets appropriate expectations
- More likely the new employee will be satisfied
Selection
- Determining an applicant’s qualifications related to the job requirements
- Background Information
- Education level, years of experience
- Interviews
- Structured interviews - managers ask each applicant the same job-related questions.
- Unstructured interviews - normal conversations.
- Usually structured interviews preferred; bias is more likely in unstructured interviews.
Selection
- Paper & Pencil tests
- Ability tests (math & reading skills)
- Personality Tests (Honesty)
- Physical Ability Tests
- for physically demanding jobs
Selection
- Performance Tests
- Applicant performs actual job task
- Example: Typing
- References
- People knowledgeable of applicants KSAs
- Often the final step
- Many employers are reluctant to say anything negative
Selection
Selection tools must be reliable and valid.
- Reliability is the degree to which the tool measures the same thing each time it is used.
- Example: scores should be similar for the same person taking the same test over time.
- Validity is the degree to which the test measures what it is supposed to measure
- Example: how well a physical ability test predicts the job performance of a firefighter.
Training
- How to perform your current job better
- Classroom Instruction
- Lectures, videos, role-play, etc.
- On-the-job Training
- Learning occurs in the work setting as new worker does the job.
- Training given by co-workers or supervisor
Development
- Preparing an individual to take on a more challenging job
- Varied work experience
- Top managers need expertise in a variety of areas
- International assignments, different departments, etc.
- Formal Education
- Executive MBA / Distance learning
Performance Appraisal
- The evaluation of employees’ job performance and contributions to their organization.
- Contributes to effective management by:
- Providing information on which HR decisions can be made
- Determine training & development needs
Types of Performance Appraisal
- Traits Appraisals
- Personal characteristics relevant to job performance are assessed
- Ex: personality
- Disadvantages
- Employees with a particular trait may choose not to use that particular trait on the job.
- Traits and performance are not always obviously linked
- Difficult to give feedback on traits
Types of Performance Appraisal
- Behavioral Appraisals
- The behaviors employees exhibit on the job are assessed.
- How employees perform their jobs
- Focuses on what a worker does right and wrong
- Provides good feedback for employees to change their behaviors
Types of Performance Appraisal
- Results Appraisals
- The results of employee behavior is assessed
- Often multiple behaviors can create the same results
- Allows employees freedom to do the job how they prefer
Types of Performance Appraisal
- Objective appraisals
- Assesses performance based on facts
- Example: sales figures
- Subjective appraisals
- Assessments based on a manager’s perceptions of traits, behavior, or results.
- Example: Behavior observation scales (BOS), Forced ranking systems
Subjective Appraisal
Who Appraises Performance?
- Manager
- Most common
- Self
- Self appraisals can supplement manager view
- Peer appraisal
- Common in team settings.
- 360 Degree
- Peers, subordinates, superiors, customers, etc.
Performance Feedback
- Be specific and focus on correctable behavior.
- Focus on problem-solving and improvement, not criticism.
- Express confidence in worker’s ability to improve.
- Treat subordinates with respect and praise achievements.
- Set a timetable for agreed changes.
Pay & Benefits
Pay level
- An organization’s compensation rates in comparison with those of similar companies
- Low, average or high relative wages.
- High wages attract and retain high performers but raise costs
- low wages can cause turnover and lack of motivation but provide lower costs.
- Should be consistent with strategy
Pay & Benefits
- Pay Structure
- Clusters jobs into categories based on their importance & level of skill required
- Determines why some jobs in the company are paid more than others
- Individual compensation also depends on performance, seniority, skill level.
Pay & Benefits
Benefits
- Legally required: social security, workers’ compensation
- Voluntary: health insurance, retirement, day care, etc.
- Cafeteria-style
- Choose the best mix of benefits for you
- Can be hard to manage
Labor Relations
- Managerial activities to ensure the organization & union have effective working relationships
- Unions
- Organizations designed to represent worker’s interests
- Elected by workers
Unions
- National Labor Relations Act (1935)
- Permits unions
- Created the NLRB to oversee the relationship between employers and unions
- Not all workers want unions
- membership costs money
- workers might not want to strike.
- Union membership is lower today than 40 years ago
Collective Bargaining
- Negotiation between management & union
- Issues include wages, benefits, job security, etc.
- Contract is signed by both sides
- Grievance procedure
- Procedure for employees who feel like they have been unfairly treated
- Arbitration
