Contemporary Management Chapter 12: Human Resource Management PDF

Because learning changes everything. ® Chapter 12 Human Resource Management © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further d...

Because learning changes everything. ® Chapter 12 Human Resource Management © 2022 McGraw Hill. 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.  Learning Objectives 1 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 2  Learning Objectives 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 3  Strategic Human Resource Management 1 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 4  Strategic Human Resource Management 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. HRM is now a critical component of strategic agendas. © McGraw Hill 5  Figure 12.1 Components of a Human Resource Management System Access the text alternative for slide images. © McGraw Hill 6  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 7  Table 12.1 Major Equal Employment Opportunity Laws Affecting HRM 1 Year Law Description 1963 Equal Pay Act Requires that men and women be paid equally if they are performing equal work 1964 Title VII of the Civil Prohibits employment discrimination on the basis of Rights Act race, religion, sex, color, or national origins--covers a wide range of employment decisions, including hiring, firing, pay, probation, and working conditions 1967 Age Discrimination in Prohibits discrimination against workers over the age of Employment Act 40 and restricts mandatory retirement 1978 Pregnancy Prohibits employment discrimination against women on Discrimination Act the basis of pregnancy, childbirth, and related medical decisions 1986 Immigration Reform Prohibits discrimination on the basis of natural origin or and Control Act citizenship, except for illegal immigrants, by employers having four or more employees. © McGraw Hill 8  Table 12.1 Major Equal Employment Opportunity Laws Affecting HRM 2 Year Law Description 1990 Americans with Prohibits employment discrimination against individuals Disabilities Act with disabilities and requires that employers make accommodations for such workers to enable them to perform their jobs. 1991 Civil Rights Act Prohibits discrimination (as does Title VII) and allows the awarding of punitive and compensatory damages, in addition to back pay, in cases of intentional discrimination. 1993 Family and Medical Requires that employers provide 12 weeks of unpaid Leave Act leave for medical and family reasons, including paternity and illness of a family member. 1994 Uniformed Services Requires rehiring of employees who are absent for Employment and military service, with training and accommodations as Reemployment needed. Rights Act 2009 Lilly Ledbetter Fair Allows employees to claim discriminatory compensation Pay Act within a set time after receiving a discriminatory paycheck. © McGraw Hill 9  Contemporary Challenges for Managers How to eliminate sexual How to minimize the harassment. wage gap between women and men How to make accommodations for How to deal with employees with employees with disabilities. substance abuse problems, mental How to ensure that LGBT health issues. employees are treated equally. How to ensure the inclusion for all How to address religious employees. rights. © McGraw Hill 10  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 11  Figure 12.2 The Recruitment and Selection System © McGraw Hill 12  Human Resource Planning 1 Human resource planning (HRP): Activities that managers engage in to forecast their current and future needs for human resources. © McGraw Hill 13  Human Resource Planning 2 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 14  Human Resource Planning 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 15  Job Analysis 1 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 16  Job Analysis 2 Job analysis PAQ: Position Analysis methods: Questionnaire: Observing what Six divisions: current workers do. Information input. Having workers and Mental processes. manages fill out questionnaires. Work output. Relationships with others. Job context. Work pace. © McGraw Hill 17  Recruitment 1 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 18  Recruitment 2 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 19  Recruitment 3 Disadvantages of external recruiting: High cost. Additional training. Will they be good performers? © McGraw Hill 20  Recruitment 4 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 21  Recruitment 5 Disadvantages of internal recruiting: Limited pool of candidates. Candidates “set” in organization’s ways. Lack of suitable internal candidates. External recruiting may bring new ideas and approaches. © McGraw Hill 22  Honesty in Recruiting Realistic job preview (RJP): 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 23  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 24  Figure 12.3 Selection Tools Access the text alternative for slide images. © McGraw Hill 25  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 26  Training and Development 1 Training: Teaching organizational members how to perform current jobs and helping them to acquire the knowledge and skills they need to be effective performers. © McGraw Hill 27  Training and Development 2 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 28  Figure 12.4 Training and Development Access the text alternative for slide images. © McGraw Hill 29  Performance Appraisal and Feedback 1 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 30  Figure 12.5 Subjective Measures of Performance 1 Access the text alternative for slide images. © McGraw Hill 31  Figure 12.5 Subjective Measures of Performance 2 Access the text alternative for slide images. © McGraw Hill 32  Figure 12.6 Who Appraises Performance? Access the text alternative for slide images. © McGraw Hill 33  Performance Appraisal and Feedback 2 Performance feedback: The process through which managers share performance appraisal information with employees, give employees an opportunity to reflect on their own performance, and develop— with subordinates—plans for the future. © McGraw Hill 34  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 35  Effective Feedback Tips 1 1. Be specific and focus on behaviors or outcomes that are correctable and within a worker’s ability to improve. 2. Approach performance appraisal as an exercise in problem solving and solution finding, not criticizing. 3. Express confidence in an employee’s ability to improve. 4. Provide performance feedback both formally and informally. © McGraw Hill 36  Effective Feedback Tips 2 5. Praise instances of high performance and areas of a job in which a worker excels. 6. Avoid personal criticisms and treat employees with respect. 7. Agree to a timetable for performance improvements. © McGraw Hill 37  Pay and Benefits 1 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 38  Pay and Benefits 2 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 39  Pay Structure The arrangement of jobs into categories based on their relative importance to the organization and its goals, level of skills, and other characteristics. © McGraw Hill 40  Pay and Benefits 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 41  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 42  Unions Represent workers’ interests to management in organizations. A united group inevitably wields more power than individual, and this type of power especially helpful to employees in some organizations. © McGraw Hill 43  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 44  Example: Wonderlic Wonderlic provides many tools for pre- screening employees. Visit the WonScore page at the Wonderlic site where demos are available for their cognitive, personality and other tests. © McGraw Hill 45 Because learning changes everything. ® www.mheducation.com © 2022 McGraw Hill. 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.