Chapter 12 Human Resource Management PDF

CHAPTER 12 Human Resource...

CHAPTER 12 Human Resource Management ©G.LIUDMILA/Shutterstock ©McGraw-Hill Education. ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.  Learning Objectives (1 of 2) 1. Explain why strategic human resource management can help an organization gain a competitive advantage. 2. Describe the steps managers take to recruit and select organizational members. 3. Discuss the training and development options that ensure organization members can effectively perform their jobs. ©McGraw-Hill Education.  Learning Objectives (2 of 2) 4. Explain why performance appraisal and feedback are such crucial activities, and list the choices managers must make in designing effective performance appraisal and feedback procedures. 5. Explain the issues managers face in determining levels of pay and benefits. 6. Understand the role that labor relations play in the effective management of human resources. ©McGraw-Hill Education.  Strategic Human Resource Management (1 of 2) Human resource management (HRM) Activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals ©McGraw-Hill Education.  Strategic Human Resource Management (2 of 2) Strategic human resource management The process by which managers design the components of an HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals Jack Welch: Six Sigma saved GE, Whirlpool, Motorola ©McGraw-Hill Education.  Figure 12.1 Components of a Human Resource Management System Access the text alternative for these i mages. ©McGraw-Hill Education. Copyright © McGraw-Hill Education. Permission required for  The Legal Environment of HRM Equal employment opportunity (EEO) The equal right of all citizens to the opportunity to obtain employment regardless of their gender, age, race, country of origin, religion, or disabilities Equal Employment Opportunity Commission (EEOC) Enforces employment laws ©McGraw-Hill Education.  Major Equal Employment Opportunity Laws Affecting HRM Yea Law Description r 196 Equal Pay Act Requires that men and women be paid equally if they are 3 performing equal work 196 Title VII of the Civil Rights Prohibits employment discrimination on the basis of 4 Act race, religion, sex, color, or national origins--covers a wide range of employment decisions, including hiring, firing, pay, probation, and working conditions 196 Age Discrimination in Prohibits discrimination against workers over the age of 7 Employment Act 40 and restricts mandatory retirement 197 Pregnancy Discrimination Prohibits employment discrimination against women on 8 Act the basis of pregnancy, childbirth, and related medical decisions 199 Americans with Prohibits employment discrimination against individuals 0 Disabilities Act with disabilities and requires that employers make accommodations for such workers to enable them to perform their jobs 199 Civil Rights Act Prohibits discrimination (as does Title VII) and allows the 1 awarding of punitive and compensatory damages, in addition to back pay, in cases of intentional discrimination 199 Family and Medical Leave Requires that employers provide 12 weeks of unpaid ©McGraw-Hill Education. Copyright © McGraw-Hill Education. Permission required for reproduction or display.  Contemporary Challenges for Managers Eliminating sexual harassment Making accommodations for employees with disabilities Dealing with employees who have substance abuse problems Managing HIV-positive employees and employees with AIDs ©McGraw-Hill Education.  Recruitment and Selection Recruitment Activities that managers engage in to develop a pool of candidates for open positions Selection The process that managers use to determine the relative qualifications of job applicants and their potential for performing well in a particular job ©McGraw-Hill Education.  Figure 12.2 The Recruitment and Selection System ©McGraw-Hill Education. Copyright © McGraw-Hill Education. Permission required for reproduction or display.  Human Resource Planning (1 of 3) Human resource planning (HRP) Activities that managers engage in to forecast their current and future needs for human resources ©McGraw-Hill Education.  Human Resource Planning (2 of 3) Demand forecasts Estimates the qualifications and numbers of employees the firm will need given its goals and strategies Supply forecasts Estimates the availability and qualifications of current employees now and in the future, as well as the supply of qualified workers in the external labor market ©McGraw-Hill Education.  Human Resource Planning (3 of 3) Outsourcing Using outside suppliers and manufacturers to produce goods and services Using contract workers rather than hiring them More flexible for the firm Provides human capital at a lower cost ©McGraw-Hill Education.  Job Analysis (1 of 2) Job analysis Job description Identifying the tasks, duties and responsibilities that make up a job Job specifications Knowledge, skills, and abilities needed to perform the job Should be done for each job in the organization ©McGraw-Hill Education.  Job Analysis (2 of 2) Job analysis methods Observing what current workers do Having workers and manages fill out questionnaires PAQ: Position Analysis Questionnaire ©McGraw-Hill Education.  Recruitment (1 of 5) External recruiting Looking outside the organization for people who have not worked at the firm previously Job postings on career websites, job fairs and recruitment meetings with groups in the local community, career fairs at colleges, open houses, advertising in local newspapers ©McGraw-Hill Education.  Recruitment (2 of 5) Advantages of external recruiting Having access to a potentially large applicant pool Being able to attract people who have the skills, knowledge, and abilities an organization needs Bringing in newcomers who may have a fresh approach to problems and be up to date on the latest technology ©McGraw-Hill Education.  Recruitment (3 of 5) Disadvantages of external recruiting High cost Additional training Will they be good performers? ©McGraw-Hill Education.  Recruitment (4 of 5) Internal recruiting Managers turn to existing employees to fill open positions. Benefits of internal recruiting Internal applicants are already familiar with the organization. Managers already know candidates. It can help boost levels of employee motivation and morale. ©McGraw-Hill Education.  Recruitment (5 of 5) Disadvantages of Internal recruiting Limited pool of candidates Candidates “set” in organization’s ways External recruiting: new ideas and approaches ©McGraw-Hill Education.  Honesty in Recruiting Realistic job preview An honest assessment of the advantage and disadvantages of a job and organization Can reduce the number of new hires who quit when jobs and organizations fail to meet their unrealistic expectations ©McGraw-Hill Education.  The Selection Process Selection process Managers finding out whether each applicant is qualified for the position and likely to be a good performer Background, interviews, tests, references ©McGraw-Hill Education.  Figure 12.3 Selection Tools Access the text alternative for these image s. ©McGraw-Hill Education. Copyright © McGraw-Hill Education. Permission required for  Reliability and Validity Reliability The degree to which the tool or test measures the same thing each time it is used Validity The degree to which a tool or test measures what it purports to measure ©McGraw-Hill Education.  Training and Development (1 of 3) Training Teaching organizational members how to perform current jobs and helping them to acquire the knowledge and skills they need to be effective performers Home Depot’s “Pocket Guide” ©McGraw-Hill Education.  Training and Development (2 of 3) Development Building the knowledge and skills of organizational members so they are prepared to take on new responsibilities and challenges Needs assessment An assessment of which employees need training or development and what type of skills or knowledge they need to acquire ©McGraw-Hill Education.  Training and Development (3 of 3) Access the text alternative for these image s. ©McGraw-Hill Education. Copyright © McGraw-Hill Education. Permission required for  Performance Appraisal and Feedback (1 of 2) Performance appraisal The evaluation of employees’ job performance and contributions to their organization Focuses on the evaluation of traits, behaviors, results Objective or subjective assessment ©McGraw-Hill Education.  Subjective Measures of Performance (1 of 2) Access the text alternative for these images. ©McGraw-Hill Education. Copyright © McGraw-Hill Education. Permission required for  Subjective Measures of Performance (2 of 2) Access the text alternative for these ima ges. ©McGraw-Hill Education. Copyright © McGraw-Hill Education. Permission required for  Figure 12.6 Who Appraises Performance? Access the text alternative for these image s. ©McGraw-Hill Education. Copyright © McGraw-Hill Education. Permission required for  Performance Appraisal and Feedback (2 of 2) Performance feedback The process through which managers share performance appraisal information with subordinates, give subordinates an opportunity to reflect on their own performance, and develop—with subordinates —plans for the future ©McGraw-Hill Education.  Effective Performance Feedback Formal appraisals An appraisal conducted at a set time during the year and based on performance dimensions that were specified in advance Informal appraisals An unscheduled appraisal of ongoing progress and areas for improvement ©McGraw-Hill Education.  Effective Feedback Tips (1 of 2) Be specific and focus on behaviors or outcomes that are correctable and within a worker’s ability to improve. Approach performance appraisal as an exercise in problem solving and solution finding, not criticizing. Express confidence in a subordinate’s ability to improve. Provide performance feedback both formally and informally. ©McGraw-Hill Education.  Effective Feedback Tips (2 of 2) Praise instances of high performance and areas of a job in which a worker excels. Avoid personal criticisms and treat subordinates with respect. Agree to a timetable for performance improvements. ©McGraw-Hill Education.  Pay and Benefits (1 of 3) Pay Includes employees’ base salaries, pay raises, and bonuses Determined by characteristics of the organization and the job and levels of performance Benefits based on membership in an organization ©McGraw-Hill Education.  Pay and Benefits (2 of 3) Pay level The relative position of an organization’s incentives in comparison with those of other firms in the same industry employing similar kinds of workers Four Seasons Hotels and Resorts: “100 Best Companies to Work For” (Fortune) ©McGraw-Hill Education.  Pay Structure Pay structure The arrangement of CEO jobs into categories based on their relative VP VP importance to the Direct Direct Direct organization and its or or or goals, level of skills, Dept Mgr and other Dept characteristics Mgr ©McGraw-Hill Education.  Pay and Benefits (3 of 3) Benefits Legally required: Social Security, workers’ compensation, unemployment insurance, health insurance for employers with 50 or more employees Voluntary: Retirement, day care, flexible working hours Cafeteria-style benefits plans. Employees choose the best mix of benefits for them, but can be hard to manage ©McGraw-Hill Education.  Labor Relations Labor relations The activities managers engage in to ensure they have effective working relationships with the labor unions that represent their employees interests Governmental efforts 1938: Fair Labor Standards Act 1963: Equal Pay Act 1970: Occupational Safety and Health Act ©McGraw-Hill Education.  Unions Unions Represent workers’ interests to management in organizations United group inevitably wields more power than individual, and this type of power especially helpful to employees in some organizations ©McGraw-Hill Education.  Collective Bargaining Collective bargaining Negotiation between labor and management to resolve conflicts and disputes about issues such as working hours, wages, benefits, working conditions, and job security Grievance procedure ©McGraw-Hill Education.  Example - Wonderlic Wonderlic provides many tools for pre- screening employees. One example is the Wonderlic Personnel Test. ©McGraw-Hill Education.