HRM, Blue Chips, and Integration

Human Resource Management (HRM)

• HRM involves strategically managing employment relations.

Blue Chip Companies

• These are large, stable, and financially secure companies.
• Their stock prices remain fairly stable, and they regularly pay dividends.
• General Electric is an example.

Vertical Integration

• Aims to align HR strategies with business planning.

Horizontal Integration

• Focuses on creating consistent and supportive HR policies across all HRM areas and systems.

Line Management

• Involves supervising employees to achieve business objectives.

Unitary Approach to Employee Relations

• Assumes no fundamental conflict exists between employers and employees.

HR Practitioner Tasks: Organizational Focus

• Organizational design and development are key activities.
• Job/role design and defining flexible working arrangements are important.

HR Practitioner Tasks: People Resourcing

• Includes HR planning, recruitment, and selection.
• Focus on retention and exit management.

Discipline Handling

• Involves managing processes to address unacceptable employee behavior or performance.

HR Practitioner Tasks: Performance Management

• Includes setting objectives and competence requirements.
• Performance monitoring, appraisal, and discipline handling are crucial.
• Also involves grievance handling and identifying learning and development needs.

HR Process Overview

• A strategic plan is the starting point
• Includes job analysis, demand forecasting, recruiting, selecting, and developing.

Basic Management Functions

• Planning, organizing, and leading are fundamental management processes.

Centralized Control in HR

• An HR officer or department has authority over all personnel management tasks.
• Decisions are made centrally by a specific group.

Authority Types in HR

• HR managers have line authority within the HR department.
• They have staff authority outside the HR department.

Decentralized Control in HR

• Authority for personnel management tasks is delegated to line managers and team leaders.

Advisory Role of HR

• HR provides information and perspectives to line managers on employment matters.

Guidance Role of HR

• HR offers recommendations and policy frameworks to guide line management decisions.

Service Role of HR

• HR provides administrative services like payroll, employee records, and reports to internal customers.

Control/Auditing Role of HR

• HR analyzes personnel metrics, monitors performance, and benchmarks against industry standards.

Line Managers

• Directly manage employees or teams.

Learning Organization Role of HR

• HR creates a culture that supports learning at both individual and organizational levels.

Education and Training Role of HR

• HR plans, implements, and evaluates learning opportunities to address skills gaps identified in the HR plan.

Industrial Relations

• Focuses on managing relationships with employee representatives, resolving disputes, and implementing consultative committees.

Human Capital

• Represents the knowledge and skills employees gain through education, training, and experience.

On-Demand Workers

• Freelancers and independent contractors who work when they can and on projects that fit their availability and the company's needs.

On-Boarding/Employee Orientation

• Provides new employees with basic information about the organization, its policies, and procedures.
• Aims to make the employee feel welcome and provide a general understanding of the work environment.

Job Instruction

• A trainer explains and demonstrates the job, and the trainee replicates the methods with feedback.

Coaching

• Managers provide daily feedback and advice to employees on improving their performance.

Informal Learning/Buddy System

• Employees learn from their peers through observation and interaction.

Action Learning/Project Teams

• Temporary teams from different areas work on projects, sharing their results with others.

Mentoring

• A junior employee develops a long-term relationship with a senior employee.

Mentor

• Offers career advice and guidance, typically 8-15 years older and 2-3 levels above the mentee.

Apprenticeship

• Involves on-the-job training for craft positions, lasting 2-5 years under an experienced person.

Business Game

• A training method using simulated business environments to teach trainees how to deal with various issues.

Case Studies

• In-depth descriptions of disguised organizations allow trainees to analyze and learn from managerial experiences.

Incident Method

• Involves small groups discussing short, controversial scenarios.

In-Basket Exercises

• Assess prioritization and time-management skills using specific tasks.

Sensitivity Training

• Aims to improve interpersonal relationships.

Lecture

• A cost-effective way to convey information to many trainees using few trainers.

Programmed Instruction

• Breaks down complex material into small steps that learners master at their own pace.

Vestibules

• Training that uses similar equipment to what will be used on the job.

Role Playing

• Simulations where trainees learn by doing.

Behavioral Modeling

• Trainees observe "model behavior" and practice the learned techniques.

Human Resource Development Principles

• Includes distributed learning, rewards, feedback, motivation, transfer of learning, opportunity to practice, and acknowledging individual differences.

Disadvantage of Programmed Instruction

• Trainees may cheat on self-tests to impress peers.

Instructional System

• Includes problem diagnosis, program design, delivery, and evaluation.
• Emphasizes establishing objectives and evaluation criteria.

Sleeper Effect

• Results of training may take time to manifest on the job.

Job Rotation

• A job enrichment strategy where employees move from one job to another.

On the Job Training(OJT)

• Employee training at the actual work location while performing the job.

Strategic Training Needs Analysis

• Identifies the training required for employees to fill future job roles.

Employee Engagement

• The level of commitment workers have toward their employer.

Performance Management

• A goal-oriented process to maximize employee, team, and organizational productivity.

Performance Appraisal

• A formal system for reviewing and evaluating individual or team task performance.

Human Resource Planning

• Data is needed to identify employees with potential for promotion or internal opportunities.

Succession Planning

• Identifying and tracking high-potential employees for future top management positions.

Career Planning

• The ongoing process of studying careers, self-assessment, and making career decisions.

Career Development

• A formal organizational approach to ensure qualified individuals are available when needed.

Compensation Programs

• Performance appraisal results inform decisions about pay adjustments.

Traits

• Characteristics like adaptability, judgment, and appearance; subjective traits such as loyalty should be avoided

Competencies

• Encompass knowledge, skills, traits, and behaviors, including technical, interpersonal, and business-oriented attributes.

Strategic Contribution

• Aligning employee behaviors with organizational needs and markets.

Business Knowledge

• Understanding business operations and applying that understanding to action.

Personal Credibility

• Demonstrating value and participating in executive teams.

HR Delivery

• Providing effective and efficient programs to customers.

HR Technology

• Tools used to attract, hire, retain, support, and manage talent.

Upward Feedback

• Subordinates anonymously rate their superiors.

Management by Objectives (MBO)

• Managers set specific, measurable goals with each employee and discuss progress periodically.

Electronic Performance Monitoring

• Appraisal conducted via online or intranet within the organization.

Leniency Effect

• Managers give favorable ratings even when improvement is needed.

Halo Effect

• Positive characteristics influence assessments of other behaviors.

Strictness Error

• Raters consistently rate employees low on the evaluation scale.

Alternation Ranking

• Jobs are ranked from lowest to highest by alternately identifying the jobs of lowest and highest worth.

Forced Distribution Method

• Employees are placed into performance levels: top 20%, middle 70%, and bottom 10%.

Behaviorally Anchored Rating Scale (BARS)

• Rates behavior using specific statements that describe different levels of performance.

Essay Method

• Rater writes a narrative describing the employee's performance.

Work Standards Method

• Employee performance is compared to a predetermined standard or expected output.

Appraiser Discomfort

• Occurs if the appraisal system is poorly designed or administered.

Horn Error

• A negative characteristic influences the evaluation of other attributes.

Central Tendency Error

• Raters choose a middle point on the scale, avoiding extreme ratings.

Recent Behavior Bias

• Rater relies on recent data, not the complete range of behavior over time.

Personal Bias

• An outlook influenced by personal likes and dislikes.

Job-Related Criteria

• Performance review criteria should be directly related to the job.

Standardization

• Using the same evaluation instrument for employees in the same job category under the same supervisor.

Trained Appraisers

• Evaluators should receive training on rating employees and conducting appraisal interviews.

Continuous Open Communication

• Regular feedback on performance should be provided.

Results-Based System

• Manager and subordinate jointly agree on objectives for the next appraisal period.

Rating Scales Method

• Employees are rated according to defined factors.

360-Degree Feedback

• Evaluations from a manager, peers, direct reports, and possibly customers.

Customer Appraisal

• Performance evaluation obtained from internal and external customers.

People that can Rate Employee

• Immediate supervisors, subordinates, peers, team members, self, and customers.

Learning and Development

• An approach to help people learn and develop.

Learning

• The process of gaining and developing knowledge, skills, capabilities, behaviors, and attitudes.

Development

• Growth and realization of a person's ability and potential through learning and educational experiences.

Training

• Systematic application of formal processes to impart knowledge and skills for successful job performance.

Education

• Development of knowledge, values, and understanding required in all aspects of life.

Management Development

• Improving the performance of managers.

Learning Organization

• An organization that continually improves by creating capabilities for future success.

Organizational Learning

• Improving organizational effectiveness through knowledge acquisition, understanding, insights, techniques, and practices
• Involves investing in people to develop human capital.

Individual Learning

• Increasing the capabilities of individual employees.

Reinforcement Theory

• Changes in behavior occur due to an individual's response to events.