Employee Life Cycle: HR Management

HR Management in Organizations

• The 6 phases of the employee life cycle focus on the experience of an employee within a company
• ARO stands for attract, recruit, and onboard
• Drawing employees to work for a company is the attraction phase
• Recruiting is creating a talent pool from the company perspective
• Onboarding is creating a plan to smoothly incorporate new hires to the team after hiring
• DRO stands for develop, retain, and offboard
• Development in career development and ability to progress, training new employees
• Succession planning identifies a plan for the orderly replacement of key employees when they inevitably leave or are promoted, ensuring high-quality talent to carry out business strategies
• Planning on how to keep employees at the company and not let them leave for alternative jobs is to retain
• Offboarding manages the departure of of employees
  • There are two types of termination: Voluntary or Involuntary
  • Involuntary termination occurs when an employee is fired
  • Voluntary termination occurs when an employee chooses to leave
• HR has changed in the past with lots of paper pushing and files, now it is automated so HR has the ability to develop talent in house
• Being more strategic makes HR more productive, engaging, and less task-based

Prioritization in HR

• The prioritization of HR tasks in the past focused on:
  • Administrative duties
  • Being an operational and employee advocate
  • Strategic initiatives
• The prioritization of HR tasks in the future should focus on:
  • Strategic initiatives
  • Being an operational and employee advocate
  • Administrative duties
• Strategy is the plan an organization follows to succeed, achieve their goals, thrive, and grow
• Culture is the shared values and beliefs that give an organization meaning
• Strategy is a plan to create a culture; culture actually happens when the strategy is implemented
• Culture is created naturally (not forced); strategy is an implemented plan
• Form I-9 verifies citizenship eligibility to work in the US
• Important HR Roles:
  • Administrative
  • Operational (daily work)
  • Strategic (hierarchical)

AMO Model

• The AMO model (Ability, Motivation, and Opportunity) framework explains how employee performance is influenced by three key factors
• Ability is made up of skills, knowledge, and competencies employees possess that enable them to perform their tasks effectively, and it can be enhanced through recruitment, training, and development programs
• Motivation is the willingness of employees to perform, driven by intrinsic and extrinsic factors such as rewards, recognition, job satisfaction, and career growth opportunities
• Opportunity is the work environment and conditions that allow employees to apply their abilities and motivation effectively, including job design, leadership support, workplace culture, and access to necessary resources

Organizational Assets

• Four types of organizational assets are human capital, physical assets, and financial assets
• Financial asset is money
• Triple Bottom Line considers the organization's impact on three major areas: economic, social, and environmental
  • Economics: Won't be able to pay people, or anything else necessary without attention to economics
  • Social: Ethical standards, social media, company social media pages and engagements
  • environmental: waste, pollution, which pollutes the air, and pouring trash into lakes
• Intellectual property refers to ideas like patents and Mickey Mouse
• Global business models are used to increase productivity
• Outsourcing transfers the management and performance of a business function to an external service provider
  • Companies outsource to save costs, access special expertise, or supplement their own capabilities
  • It may involve partial ownership of the outsourcing firm or a contractual relationship
  • It is done both in the domestic and foreign marketplaces
• Offshoring is a company's relocation of a business process or operation from one country to another
  • This is a cost-saving strategy
  • This represents international ownership of the offshore firm with previously explained forms

HR Strategy and Planning

• There are 7 Steps to the Strategic Planning Process:
  • An organizational mission involves defining the core reason for the existence of the organization and what makes it unique
  • SWOT Analysis assesses internal strengths and weaknesses, as well as external opportunities and threats, to understand workforce capabilities and industry challenges
  • Clear, measurable targets for workforce planning, talent acquisition, retention, and development are set in Establish Goals and Objectives
  • Actionable strategies are developed based on the goals, ensuring alignment with the organization's needs and resources during the Formulation of Goals and Objectives
  • Specific HR and talent management strategies (e.g., leadership training, compensation, succession planning) are designed to support broader organizational goals in the Formulation of Supporting Functional Strategies
  • Execute the strategic plan, allocating proper resource and stakeholder engagement in Implement
  • Continuously monitor progress using key performance indicators (KPIs), making necessary adjustments to improve outcomes when Evaluating and Reassessing
• Forecasting uses information from the past and present to predict future conditions
  • There are two types of forecasting: qualitative and quantitative
  • Quantitative Forecasting Techniques is mathematical
• Managing Talent Shortages and Shortcomings:
  • Increase employee work hours through overtime
  • Outsource to a third party
  • Implement alternative work arrangements
  • Use contingent workers (temporary, independent, contractors)
  • Reduce employee turnover
• Managing Talent Surpluses:
  • Reduce employee work hours and compensation
  • Attrition
  • Hiring freeze
  • Voluntary separation programs
  • Workforce downsizing/reduction in force RIF
• Mergers are when companies combine, and Acquisitions are when one company takes over another

Before, During, Post Integration

• Before the deal, conduct due diligence, which is a comprehensive assessment of all aspects of the business being acquired
• Before the deal, assess risks and identify possible conflicts
• During integration, address key HR processes, retain key talent, and recognize cultural differences
• Post-integration, optimize workforce
• Post-integration, identify and establish new culture
• Benchmarking compares business results to the entire industry
• When determining how much to pay an employee, check to see what other companies pay the same type of position

Equal Employment Opportunity

• Equal Employment Opportunity (EEO) involves protective characteristics like age, gender, marital status, religion, and disability status
• Equal Employment Opportunity (EEO) started due to Title VII (Title 7) of the Civil Rights Act in 1964
  • This makes it illegal to discriminate in any way based on a person's sex, race, national origin, color and/or religion
• Equal Employment Opportunity Commission (EEOC) enforces the laws that were created by the government
• Disparate Treatment occurs when individuals with particular characteristics that are not job-related are treated differently from others
• This is overt, intentional, and follows a pattern or practice
• Disparate Impact occurs when an employment practice that does not appear discriminatory adversely affects individuals with a particular characteristic
  • This is unintentional
  • This occurs when lifting a certain amount of weight can impact the women differently
• Sexual harassment is unwanted/unwelcomed verbal, visual, or physical contact of a sexual nature that is severe and affects working conditions or creates a hostile work environment, and has two types: "quid pro quo" and "hostile work environment"
  • "Quid pro quo" links employment outcomes to the granting of sexual favors
  • Hostile work environment occurs when an individual's work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions
• Reasonable accommodation is a modification to a job or work environment that gives a qualified individual an equal employment opportunity to perform
  • With no undue hardship, which results in significant difficulty or expense imposed on an employer when making an accommodation for individuals with disabilities

Workforce, Jobs, Job Analysis

• The ADA (American Disabilities Act) provides the general guidelines but it is determined by a case-by-case basis
• The Labor Force Participation Rate calculates the percentage of the population working or seeking work
  • The Labor Force Participation Rate is at around 63.60% as of June 2024
• Labor Force is the total number of people who are actively working or seeking employment within an economy

Job Functions

• Essential Job functions include fundamental job duties that are core to successful job performance and are necessary, and non-negotiable
• Marginal Job functions involve job duties that are not fundamental to successful job performance, more specialized skills, and non-essential
• ADA and job requirements:
  • Discrimination is prohibited against individuals with disabilities who can perform the essential job functions
  • Employers must identify the essential job functions in the job description, not the marginal ones

Approaches to Job Design

• Job Simplification breaks a more complex job into relatively small subparts
• Job Enlargement broadens the scope of a job by expanding the number of different tasks that are performed
• Job Enrichment increases the depth of a job by adding responsibility for planning, organizing, controlling, and/or evaluation of the job
• Job Rotation is the process of shifting a person from job to job

Relations and Retention

• Individual Performance can be evaluated through effort, ability, and organizational support
• Theories of Motivation: Herzberg's Theory of Two-Factor Motivation and Maslow's Hierarchy of Needs
• Herzberg's Theory of Two Factor Motivation features motivators:
  • Hygiene factors can cause dissatisfaction with work
• Psychological contract refers to unwritten expectations employees and employers have about the nature of their work relationships regarding contributions and provisions
  • Employees will contribute with continuous skill improvement, increased productivity, reasonable length of service, and extra efforts and results when needed
  • Employers will provide competitive compensation & benefits, career development opportunities, and flexibility to balance home and work life
• In order of top to bottom (you must have the basic ones first in order to get the others)
  • Basic Physiological Needs - (food, air, shelter) • Safety and security • Belonging and love • Esteem (self and others) •Self- actualization
• Turnover types are functional and dysfunctional

Turnover Types

• Functional turnover occurs when lower performing or disruptive employees leave, which is beneficial for the company
• Dysfunctional turnover occurs when key employees and/or high performers leave, which is not beneficial for the company
• Turnover involves Voluntary and involuntary termination
  • Voluntary termination occurs when an employee leaves by their own choice
  • Involuntary termination occurs when the employee is terminated by the organization
• Controllable turnover features employees leaving for reasons influenced by the organization (environment, strategy, culture)
• Uncontrollable turnover features employees leaving for reasons that are outside the organization's control (industry standards)

Recruiting Talent

• Talent Acquisition is the process of finding and hiring high-quality talent needed to meet the organization's workforce needs
• The two stages are recruiting and selection
  • Recruiting is the process of generating a pool of qualified applicants for organizational jobs
  • Selection involves picking the best supplier of talent and hiring them
• There are two types of candidates: Active and Passive
  • Active candidate: actively seeking employment
  • Passive candidate: not looking for the job, but may/may not entertain the option

Selecting HR

• Talent Selection is the process of choosing individuals with the correct qualifications needed to fill jobs in an organization
• The Logic of Prediction Theory states that the best predictor of future behavior is often past behavior
• ASA Theory (Attraction-Selection-Attrition Theory) is a framework in organizational psychology that proposes that job candidates are attracted to and selected by firms where similar types of individuals work
  • Individuals are drawn to organizations whose values, culture, and work environment align with their own personality, interests, and goals, which is Attraction
  • Organizations hire candidates who fit their culture and values, which is Selection
  • Employees who do not fit the organization's culture either voluntarily leave or are pushed overtime, which is Attrition
• Selection Criterion is a characteristic that a person must possess to successfully perform job duties
• 2 Selection Approaches combine predictors/approaches and include the multiple hurdles approach and compensatory approach
  • The multiple hurdles approach sets a minimum cutoff is set on each predictor, and each minimum level must be passed
  • By the Compensatory Approach, scores from individual predictors are combined into an overall score, and a higher score on one predictor can offset a lower score on another

Assessments & Interviews

• Assessments for Selection includes Big 5 Personality Characteristics (OCEAN)
  • Openness to Experience
  • Conscientiousness (dedication, drive, awareness)
  • Extroversion
  • Agreeableness
  • Neuroticism
• Emotional Intelligence Tests and Ability Tests
• Two Interview Types are Structured and unstructured
• In a Behavioral Interview (past), applicants give specific examples of how they have performed a certain task
  • They explain how they behaved and what they did in a given situation
• In a Situational Interview (future), applicants answer questions about how they might handle specific job situations and what they would do in the future
• Background Investigations, Negligent Hiring, and Negligent Retention
  • Negligent Hiring occurs when failing to check an employee's background and if the employee injures someone on the job
  • Negligent Retention occurs when still employing a person if they become unfit for work and if the person injures someone

Explore the 6 phases of the employee life cycle: attract, recruit, onboard, develop, retain, and offboard. Learn about attracting talent, succession planning and different types of employee termination. Discover how HR management shapes employee experience and organizational success.