Chapter 12 MGT 300 Exam 2 Notes PDF

CHAPTER 12: HUMAN RESOURCE MANAGEMENT STRATEGIC HUMAN RESOURCE MANAGEMENT Human resource management (HRM) includes all the activities managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organiza...

CHAPTER 12: HUMAN RESOURCE MANAGEMENT STRATEGIC HUMAN RESOURCE MANAGEMENT Human resource management (HRM) includes all the activities 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. Strategic human resource management is the process by which managers design the component's of an HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals. OVERVIEW OF THE COMPONENTS OF HRM o Managers use recruitment and selection, the first component of an HRM system, to attract and hire new employees who have the abilities, skills, and experiences that will help an organization achieve goals. o After recruiting and selecting employees, managers use the second component, training and development, to ensure that organizational members develop the skills and abilities that will enable them to perform their jobs eSectively in the present and the future.The third component, performance and feedback, serves two purposes in HRM. First, performance appraisal can give managers the information they need to make good human resource decisions- decisions about how to train, motivate, and reward organizational member. Thus, the performance appraisal and feedback component is kind of a control system, that can be used with management by objectives. Second, feedback from performance appraisal serves a developmental purpose for members of an organization. When managers regularly evaluate their subordinates’ performance, they can give employees valuable information about their strengths and weaknesses and the area in which they need to concentrate. o On the basis of performance appraisals, managers distribute pay to employees, which is part of the fourth component of an HRM system. By rewarding high-performing organizational members with pay raises, bonuses, and the like, managers increase the likelihood that an organization’s most valued human resources will be motivated to continue their high levels of contribution to the organization. o Last, labor relations encompass the steps that mangers take to develop and maintain good working relationships with the labor-unions that may represent their employees’ interest. o Managers must ensure that all five of these components git together and complement their company’s structure and control systems.  o Each of the five components of HRM influences the others. The kinds of people the organization attracts through recruitment and selection for example, determine The kinds of development that are necessary The way performance is appraised The appropriate levels of pay and benefits THE LEGAL ENVIRONMENT OF HRM The local, state, and national laws and regulations that managers and organizations must abode by add to the complexity of HRM. For example, the US government commitment to equal employment opportunity (EEO) has resulted in the creation and enforcement of a number of laws that managers must abide by. The goals of EEO is to ensure that all citizens have equal opportunity to obtain employment regardless of their gender, race, country of origin, religion, age, or disabilities. Major Equal Employment Opportunity Laws ASecting HRM Year Law Description 1963 Equal Pay Act Requires that workers be paid equally if they are performing equal work. 1964 The Title VII of the Civil Rights Act Prohibits employment discrimination on the basis of race, religion, sex, color, or national origin; covers a wide range of employment decisions, including hiring, firing, pay, promotion, and working conditions. 1967 Age Discrimination in Prohibits discrimination against workers over the age of 40 in Employment Act restricts mandatory retirement. 1978 Pregnancy Discrimination Act Prohibits Employment discrimination against women on the basis of pregnancy, childbirth, and related medical decisions. 1986 Immigration Reform and Control Prohibits Discrimination on the basis of natural origin or Act citizenship, except for unauthorized immigrants, by employers having four or more employees. 1990 Americans with Disabilities Act Prohibits discrimination against individuals 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 Leave Act Requires their employers with 50 or more employees provide 12 weeks of unpaid leave for medical and family reasons, including paternity and illness of a family member. 1994 Uniformed Services Employment Requires rehiring of employees who are absent for military and Reemployment Rights Act service, with training and accommodations as needed. 2009 Lilly Ledbetter Fair Pay Act Allows employees to claim discriminatory compensation within a set time after receiving a discriminatory the check. RECRUITMENT AND SELECTION Recruitment includes all the activities managers engage in to develop a pool of qualifies candidates for open positions Selection is the process by which managers determine the relative qualifications of job applicants and their potential for performing well in a particular job HUMAN RESOURCE PLANNING o Human Resource planning includes all the activities managers engage in to forecast their current and future human resource needs. o Current human resources are the employees an organization needs today to provide high-quality goods and services to customers. o As part of human resource planning, managers must make both demand forecasts and supply forecast. o Demand forecast estimate the qualifications and numbers of employees an organization will need, given its goals and strategies. Supply forecast estimate the availability and qualifications of current employees now and in the future, as well as the supply of qualified workers in the external labor markets. o As a result of their human resource planning, managers sometimes decide to outsource to fill some of their human resource needs. Instead of recruiting and selecting employees to produce goods and services, managers contract with people who are not members of their organization to produce goods and services. o Two reasons human resource planning sometimes leads managers to outsource are flexibility and cost. First, outsourcing can give managers increased flexibility, especially when accurately forecasting human resource needs is diSicult, human resource needs fluctuate over time, or finding skilled workers in a particular area is diSicult. Second, outsourcing can sometime allow managers to use human resources at a lower cost. o When work is outsourced, managers may lose some control over quality of goods and services. JOB ANALYSIS  o Job analysis is the process of identifying the tasks, duties, and responsibilities that make up a job (the job description) and the knowledge, skills, and abilities needed to perform the job (the job specifications) o The position Analysis Questionnaire (PAQ) is a comprehensive, standardized questionnaire that many managers rely on to conduct job analyses, It focuses on behaviors jobholders perform, working conditions, and job characteristics and can be used for a variety of jobs. o The PAQ contains 194 items organized into six divisions: Information input- Where and how the jobholder acquires information to perform the job) Mental processes - Reasoning, decision making, planning, and information processing activities that are part of the job Work output - Physical activities performed on the job and machines and devices used Relationships with others - Interactions with other people that are necessary to perform the job Job context - The physical and social environment of the job The other job characteristics - Such as work place TRAINING AND DEVELOPMENT Training and development help ensure that organizational members have knowledge and skills needed to perform jobs eSectively, take on new responsibilities, and adapt to changing conditions Training focuses primarily on teaching organizational members how to perform their current jobs and helping them acquire the knowledge and skills they need to be eSective performers o Classroom instruction o On the job training o Apprenticeships Development focuses on building the knowledge and skills of organizational members so they are prepared to take on new responsibilities and challenges. o Classroom instruction o On the job training o Varied work experiences o Formal education Before creating training and development programs, managers should perform a needs assessment to determine which employees need training and development and what skills or knowledge they need to acquire TYPES OF TRAINING o Classroom Instruction Employees acquire knowledge and skills in a classroom setting This instruction may take place within the organization pr outside it, such a through courses at local colleges and universities or through online classes  Simulations also can be part of classroom instruction, particularly for complicated jobs that require an extensive amount of learning and in which errors carry high cost. o On the Job Training On the job training learning occurs in the work setting as employees perform their job tasks. Can be provided by coworkers or supervisors or can occur simply as jobholders gain experience and knowledge from doing the work. TYPES OF DEVELOPMENT o Varied Work Experiences Top managers need to develop an understanding of, and expertise in, a variety of functions, products and services, and markets. To develop executives who will have this expertise, managers often make sure that employees with high potential have a wide variety of job experiences, some in line positions and some in staS positions. Varied work experiences broaden employee’s horizons and help them think about the big picture. For example, one to three years stints overseas are being used increasingly to provide managers with international work experiences. With organizations becoming more global, managers need to understand the diSerent values, beliefs, cultures, regions, and ways of doing business in diSerent countries. o Formal Education Many large corporations reimburse employees for tuition expenses they incur while taking college courses and obtaining advanced degrees. TRANSFER OF TRAINING AND DEVELOPMENT o Whenever training and development take place oS the job or in a classroom setting, it is vital for managers to promote the transfer of the knowledge and skills acquired to the actual work situation. Trainees should be encouraged and expected to use their newfound expertise on the job. PERFORMANCE APPRAISAL AND FEEDBACK Performance appraisal is the evaluation of employees’s job performance and contributions to the organization. Performance feedback is the process through which managers share performance appraisal information with their employees, give them an opportunity to reflect on their own performance, and develop, with employees’ input, plans for the future. TYPES OF PERFORMANCE APPRAISAL o Trait Appraisal o Behavior Appraisal o Results Appraisal o Objective and Subjective Appraisal  Whether manager appraise performance in terms of traits, behaviors, or results, the information they assess is wither objective or subjective. Objective appraisals are based on facts and are likely to be numerical - the number of cars sold, the number of meals prepared, the number of times alter, the numbers of audits completed. Managers often use objective appraisal when results are being appraised because results tend to be easier to quantify than traits or behaviors. When how workers perform their jobs is important, however, subjective behavior appraisal are more appropriate than results appraisals. Subjective appraisals are based on managers perceptions of traits, behaviors, or results. Because subjective appraisals rest on managers perceptions, there is always the chance that they are inaccurate. o Graphing Rating Scale 1 - Very low quality 2 - Low quality 3 - Neither low quality nor high quality 4 - High quality 5 - Very high quality o Behaviorally Anchored Rating Scale (BARS) o Behavioral Observation Scale (BOS) WHO APPRAISES PERFORMANCE? o Managers are responsible for not only motivating their employees to perform at a high level but also making decisions hinging on performance appraisals, such as pay raises or promotions. o Self, Peers, Employees, and Clients o 360 Degree Performance Appraisals To improve motivation and performance, some organization include 360 degree appraisals and feedback in their performance appraisal systems, especially for managers. In a 360 degree appraisal a variety of people, beginning with the manager and including peers or coworkers, employees, superiors, and sometimes even customers or clients, appraise a mangers’ performance. The manager receives feedback based on evaluations from these multiple sources. EFFECTIVE PERFORMANCE FEEDBACK o Formal appraisal are conducted at set times during the year and are based on performance dimensions and measures that have been specified in advance. o Informal appraisals, for which managers and their employees meet as the need arises to discuss ongoing progress and areas for improvement.  o Managers often dislike providing performance feedback, especially when the feedback is negative, but doing so is an important managerial activity. There are some guidelines for giving eSective performance feedback that contributes to employee motivation and performance. Be specific and focus on behaviors or outcomes that are correctable and within a workers’ ability to improve Approach performance appraisals as an exercise in problem solving and solution finding, not criticizing Express confidence in an employee’s ability to improve Provide performance feedback both formally and informally Praise instances of high performance and areas of a job in which a worker excels Avoid personal criticisms and treat employees with respect Agree to a timbale for performance improvements o RECENT TRENDS IN PERFORMANCE APPRAISAL Performance reviews have always been a source of stress for both managers and employees. It’s diSicult to look back on an entire year’s performance and come up with constructive feedback when situation or behaviors happened so far in the past. When performance reviews take place on an annual basis, some employees are surprised and dismayed at some of the less than positive feedback they receive from supervisors, which may not have a positive impact on future employee performance. In a recent Gallup survey, on 14% of respondents agreed that performance reviews motivated them to improve. PAY AND BENEFITS Pay includes employees’ base salaries, pay raises, and bonuses and is determines by a number of factors such as the characteristics of the organization and the job levels of performance. PAY LEVEL o Pay level is a broad, comparative concept that refers to how an organization’s pay incentives compare, in general to those of other organizations in the same industry employing similar kinds of workers. PAY STRUCTURE o A pay structure clusters job into categories, reflecting their relative importance to the organization and its goals, levels of skill required, and other characteristics managers consider important. BENEFITS o Other organizations, realizing that employees’ needs and desires might diSer, oSer cafeteria-style benefit plans that let employees choose the benefits they want. o Cafeteria-style benefit plans sometimes help managers deal with employees who feel unfairly treated because they cannot take advantage of certain  benefits available to other employees who, for example, have children. Some organizations have success with cafeteria-style benefit plans; other finds them diSicult to manage. LABOR RELATIONS Labor relations are the activates managers engage in to ensure that they have eSective working relationships with the labor unions that represent their employee’s interest. Although the US government has responded to the potential for unethical and unfair treatment of workers by creating and enforcing laws regulating employment (including the EEO laws), some workers believe a union will ensure that their interest are fairly represented in their organizations. Examples of important employment legislation. In 1938, the federal government passed the fair Labor Standards act, which prohibited child labor and provided for minimum wages, overtime pay, and maximum working hours to protect workers the right. In 1963, the equal pay act mandated that workers performing equal work (work requiring the same levels of skill, responsibility, and eSort performed in the same kind of working conditions) receive equal pay. In 1970, the Occupational Safety and Health Act mandated procedures for managers to follow to ensure workplace safety. These are just a few of the US governments eSorts to protect workers rights. State legislators also have been active in promoting safe, ethical, and fair workplaces. UNIONS o Unions exist to represent workers interests in organizations. Given that managers have more power than workers in that organizations have multiple stakeholders, there is always the potential for managers to take steps that benefit one set of stakeholders, such as shareholders, while herding another, such as employees. o For example, managers may decide to speed up a production line to lower cost and increase production in the hopes of increasing returns to shareholders. Speeding up the line, however, could hurt employees forced to work at a rapid pace it may increase the risk of injuries. Also, employees receive no additional pay for the extra work they are performing. Unions would represent workers interest in a scenario such as this one. o Congress acknowledged the role that unions could play in ensuring safe and fair workplaces when it passed the National Labor Relations act of 1935. This act made it legal for workers to organize into unions to protect their rights and interest and declared certain unfair or unethical organizational practices to be illegal. The act also established the National Labor Relations board to oversee union activity. COLLECTIVE BARGAINING o Collective bargaining is negotiation between labor unions managers to resolve conflicts and disputes about important issues such as working hours, wages, working conditions, and job security. Sometimes union members go on strike to drive home their concerns to managers. Once an  agreement that union members support has been reached (sometimes with the help of a neutral third party called a mediator), union leaders and manager signed a contract spelling out the terms of the collective bargaining agreement. o Disagreements and conflicts can arise over the interpretation of the contract. In such cases, a neutral third party called an arbitrator is usually called and to resolve the contract. o An important component of a collective bargaining agreement is a grievance procedure through which workers who believe they are not being fairly treated are allowed to voice their concerns and have their interests represented by the union.