Human resource management Assignment
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chap001.pptCopyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
1
Strategic Human
Resource Management
in a Changing Environment
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Human Resource Management
- Products and services of HRM for personnel
- organizational restructuring
- job designing
- personnel planning
- recruiting
- hiring
- evaluating
- training
- developing
- promoting
- compensating
- terminating
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
High-Performance Work Systems (HPWS)
- Characteristics of HPWS
- evaluate large numbers of highly qualified applicants for each strategic position
- use validated selection and promotion models/procedures
- implement extensive training and development of new employees
- use formal performance appraisal and management
- use multi-source (360 degree) performance appraisal and feedback
- link merit increases to formal appraisal processes
- offer above-market compensation for formal appraisal processes
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
High-Performance Work Systems (HPWS)
- Characteristics of HPWS
- offer incentive systems for high percentage of entire workforce
- set high differential in pay between high and low performers
- use high percentage of HR time for outsourcing activities
- sustain high percentage of employees working in self-managed, project-based work teams
- maintain low percentage of employees covered by union contract
- retain low number of employees per HR professional
- fill high percentage of jobs from within
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Sustained Competitive Advantage
- Keys to sustained competitive advantage
- building and sustaining core competencies within the organization
- maintaining flexibility
- react quickly to the changing global marketplace and the advances in technology
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Sample of Discrepancies Between Academic Research Findings and HRM Practice
Academic Research Findings
HRM Practice
RECRUITMENT
Quantitative analysis of recruitment sources using yield
ratios can facilitate efficiencies in recruitment
Less than 5% calculate yield ratios.
Less than 20% know how.
STAFFING
Realistic job previews can reduce turnover.
Weighted application blanks reduce turnover.
Structured, behavioral, or situational interviews are more valid.
Use actuarial model of prediction with multiple measures.
Graphology is invalid and should not be used.
Less than 5% of companies us RJPs in high-turnover jobs.
Less than 10%know what WAB is; less than 1% use WABs.
23% of companies us structured interviews
Less than 5% use actuarial model.
Use is on the increase in the United States.
PERFORMANCE APPRAISAL
Do not use traits on rating forms.
Train raters (for accuracy, observation bias).
Make appraisal process important element of managers job.
More than 75% still use traits.
Less than 30% train raters.
Less than 30% of managers are evaluated on performance
appraisal.
COMPENSATION
Merit-based systems should not be tied into a base salary.
Gainsharing is an effective PFP system
More than 75% tie merit pay into base.
Less than 5 % of companies use it where they could.
Source: H. J. Bernardin. “A Survey of Human Resource Practices,” Paper presented at the Annual Meeting of the Academy of Management,
Denver, Colorado, 2002.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Major Domains of HRM
- Four major domains of HRM
- acquiring human resource capability
- developing human resource capability
- rewarding and compensating human resources
- managing human resources and enhancing productivity and quality of worklife
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
HRM in Action
- Most commonly performed activities by HRM professionals
- organizational design
- human resource planning
- job analysis
- job design
- information systems
- staffing
- recruiting/interviewing/hiring
- affirmative action
- promotion/transfer/separation
- outplacement services
- induction/orientation
- employee selection methods
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
HRM in Action
- Most commonly performed activities by HRM professionals
- reward systems, benefits and compliance
- safety programs/OSHA compliance
- health/medical services
- complaint/disciplinary procedures
- compensation administration
- wage/salary administration
- insurance benefits administration
- unemployment compensation administration
- pension/profit-sharing plans
- labor relations/collective bargaining
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
HRM in Action
- Most commonly performed activities by HRM professionals
- employee and organizational development
- management/supervisory development
- career planning/development
- employee assistance/counseling programs
- attitude surveys
- training delivery options
- diversity programs
- performance management and appraisal
- management appraisal/management by objectives
- productivity/enhancement programs
- customer-focused performance appraisal
- multi-rater systems
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Major Trends Affecting HRM
- Five major trends enhancing the importance of HRM
- increased globalization of the economy
- technological changes, challenges, and opportunities
- need for flexible response to changing business environments
- increase in litigation related to HRM
- changing characteristics of the workforce
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
“Management by Measurement” System
- “Management by measurement” system—ensuring all functional business units subscribe to guidelines for sound, strategic measurement
- criteria to measure
- performance (e.g., individual, team, unit)
- quantity, quality, timeliness, cost-effectiveness, effects on others
- productivity
- customer satisfaction
- absenteeism
- turnover/retention/tenure/intentions to stay/leave
- employee theft
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
“Management by Measurement” System
- “Management by measurement” system—ensuring all functional business units subscribe to guidelines for sound, strategic measurement
- criteria to measure
- violence in the workplace
- job stress (e.g., role conflict, ambiguity)
- job satisfaction/motivation/attitudes/commitment
- creativity
- perceived fairness (procedural, interactional)
- error rates
- accidents, health-related variables (worker stress, injuries)
- organizational citizenship behavior
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competitive Advantage
- Competitive advantage—the ability of an organization to formulate strategies that place it at a favorable position relative to other companies in the industry
- two major principles determine the extent of a business’s competitive advantage
- customer value
- uniqueness
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competitive Advantage & Customer Value
- Customer value—customers feel that they receive more value from their transaction with an organization than from its competitors
- factors in understanding the customer’s needs and expectations
- particular product or service
- tangible variables—corporate responsibility, environmental impacts, diversity policies, political issues, and affiliation with other products or services
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Competitive Advantage & Uniqueness
- Uniqueness—offering a product or service that your competitor cannot easily imitate or copy
- four mechanisms for offering uniqueness
- financial or economic capability—a business receives special access to financial funding or is able to produce a good or service cheaper than someone else
- strategic or product capability—a business needs to offer a product or service that differentiates it from other products or services
- technological or operational capability—a business can have a distinct way of building or delivering its product or service
- organizational capability—the business’s ability to manage organizational systems and people in order to match customer and strategic needs
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
About Group Project
- A Group Project is assigned for the course.
- Utilize the framework offered in the article of Miles and Snow outlined in the syllabus.
- The Group Project will be divided into 3 segments:
- Assignment 1
- Assignment 2
- Assignment 3
Academic Research Findings
HRM Practice
RECRUITMENT
Quantitative analysis of recruitment sources using yield
ratios can facilitate efficiencies in recruitment
Less than 5% calculate
yield ratios.
Less than 20% know how.
STAFFING
Realistic job previews can reduce turnover.
Weighted application blanks reduce turnover.
Structured, behavioral, or
situational interviews are more valid.
Use actuarial model of prediction with multiple measures.
Graphology is invalid and should not be used.
Less than 5% of companies us
RJPs in high-turnover jobs.
Less than 10%know what WAB is; less than
1% use
WABs.
23% of companies us structured interviews
Less than 5% use actuarial model.
Use is on the increase in the United States.
PERFORMANCE APPRAISAL
Do not use traits on rating forms.
Train
raters (for accuracy, observation bias).
Make appraisal process important element of managers job.
More than 75% still use traits.
Less than 30% train
raters.
Less than 30% of managers are evaluated on performance
appraisal.
COMPENSATION
Merit-based systems should not be tied into a base salary.
Gainsharing is an effective PFP system
More than 75% tie merit pay into base.
Less than 5 % of companies use it where they could.
Source: H. J.
Bernardin. “A Survey of Human Resource Practices,” Paper presented at the Annual Meeting of the Academy of Management,
Denver, Colorado, 2002.
