Human Resource Management Chapter 4 PDF

Chapter 4 The Analysis and Design of Work LEARNING OBJECTIVES LO 4-1 Analyze an organization’s structure and work-flow process, identifying the output, activities, and inputs in the production of a product or service. LO 4-2 Understand the importance of job analysis in strategic human resource ma...

Chapter 4 The Analysis and Design of Work LEARNING OBJECTIVES LO 4-1 Analyze an organization’s structure and work-flow process, identifying the output, activities, and inputs in the production of a product or service. LO 4-2 Understand the importance of job analysis in strategic human resource management. LO 4-3 Choose the right job analysis technique for a variety of human resource activities. LO 4-4 Identify the tasks performed and the skills required in a given job. LO 4-5 Understand the different approaches to job design.  JOB ANALYSIS AND DESIGN OF WORK No “one best way” to design jobs and structure organizations. Organizations need to create a fit between environment, competitive strategy, philosophy and jobs and organizational design. Failing to design effective organizations and jobs has important implications for competitiveness.  WORK-FLOW DESIGN AND ORGANIZATION STRUCTURE Work-Flow Design is the process of analyzing tasks necessary for production of a product or service, prior to assigning tasks to a particular job category or person Organization Structure refers to the stable and formal network of vertical and horizontal interconnections among jobs that constitute the organization  WORK-FLOW ANALYSIS Work-Flow Analysis is useful in providing a means for managers to understand all tasks required to produce a high-quality product and the skills necessary to perform those tasks  First, analyze work output  Then, analyze work processes  Lastly, analyze work input TWO DIMENSIONS OF ORGANIZATION STRUCTURE Centralization: Departmentalization: the degree to which decision-making to the degree to which work units are authority resides at the top of the grouped based on functional organizational chart as opposed to similarity or similarity of work flow being distributed throughout lower levels  STRUCTURAL CONFIGURATION I Functional: functional departmentalization high level of centralization high efficiency; can lower costs effective under a stable and predictable environment inflexible towards changes members are specialized within their unit, but having a weak conceptualization of the overall organization mission insensitive to differences across products, regions and clients  STRUCTURAL CONFIGURATION II Divisional: workflow departmentalization low level of centralization, semi-autonomous flexible and innovative due to its work flow focus; suitable for differentiation strategy sensitive to differences across products, regions and clients can detect and exploit opportunities in their respective customer base not very efficient due to lack of coordination and redundancy among each group self-cannibalization if the gains achieved in one unit come at the expense of another unit  STRUCTURAL CONFIGURATION II Divisional: workflow departmentalization low level of centralization, semi-autonomous flexible and innovative due to its work flow focus; suitable for differentiation strategy sensitive to differences across products, regions and clients can detect and exploit opportunities in their respective customer base not very efficient due to lack of coordination and redundancy among each group self-cannibalization if the gains achieved in one unit come at the expense of another unit LEARNING OBJECTIVES LO 4-1 Analyze an organization’s structure and work-flow process, identifying the output, activities, and inputs in the production of a product or service. LO 4-2 Understand the importance of job analysis in strategic human resource management. LO 4-3 Choose the right job analysis technique for a variety of human resource activities. LO 4-4 Identify the tasks performed and the skills required in a given job. LO 4-5 Understand the different approaches to job design. JOB ANALYSIS Job analysis produces information for writing Job descriptions (a list of what the job entails) Job specifications (what kind of people to hire for the job) The steps in job analysis  IMPORTANCE OF JOB ANALYSIS TO LINE MANAGERS 1. Managers must have detailed information about all the jobs in their work group to understand work-flow process. 2. Managers need to understand job requirements to make intelligent hiring decisions. 3. Managers must clearly understand tasks required in every job. JOB ANALYSIS INFORMATION Job description list of tasks, duties and responsibilities (TDRs) tasks, duties and responsibilities JOB ANALYSIS INFORMATION Job specification  list of skills, knowledge, abilities and other characteristics  (KSAOs) knowledge, skills, abilities and other characteristics  Example: https://www.thebalance.c om/job-specification- sample-marketing- manager-1918560 LEARNING OBJECTIVES LO 4-1 Analyze an organization’s structure and work-flow process, identifying the output, activities, and inputs in the production of a product or service. LO 4-2 Understand the importance of job analysis in strategic human resource management. LO 4-3 Choose the right job analysis technique for a variety of human resource activities. LO 4-4 Identify the tasks performed and the skills required in a given job. LO 4-5 Understand the different approaches to job design. JOB ANALYSIS METHODS Job analysis is the process of getting detailed information about a job. Two recognized methods Position Analysis Questionnaire (PAQ): a standardized job-analysis questionnaire containing 194 items representing work behaviors, work conditions, or job characteristics that are generalizable across a variety of jobs. Occupational Information Network (O*NET): https://www.onetonline.org/  SIX SECTIONS OF PAQ Information input: Where and how a worker gets information needed to perform the job. Mental processes: The reasoning, decision making, planning, and information processing activities that are involved in performing the job. Work output: The physical activities, tools, and devices used by the worker to perform the job. Relationships with other persons: The relationships with other people required in performing the job. Job context: The physical and social contexts where the work is performed. Other characteristics: The activities, conditions, and characteristics other than those previously described that are relevant to the job. OCCUPATIONAL INFORMATION NETWORK (O*NET) O*NET uses a common language that generalizes across jobs to describe the abilities, work styles, work activities, and work context required for various occupations that are more broadly defined. https://www.onetonline.org/ LEARNING OBJECTIVES LO 4-1 Analyze an organization’s structure and work-flow process, identifying the output, activities, and inputs in the production of a product or service. LO 4-2 Understand the importance of job analysis in strategic human resource management. LO 4-3 Choose the right job analysis technique for a variety of human resource activities. LO 4-4 Identify the tasks performed and the skills required in a given job. LO 4-5 Understand the different approaches to job design. DYNAMIC ELEMENTS OF JOB ANALYSIS Job design is the Job redesign refers to process of defining how changing the tasks or the work will be performed way work is performed in and the tasks that will an existing job. be required in a given job. LEARNING OBJECTIVES LO 4-1 Analyze an organization’s structure and work-flow process, identifying the output, activities, and inputs in the production of a product or service. LO 4-2 Understand the importance of job analysis in strategic human resource management. LO 4-3 Choose the right job analysis technique for a variety of human resource activities. LO 4-4 Identify the tasks performed and the skills required in a given job. LO 4-5 Understand the different approaches to job design. FOUR APPROACHES TO JOB DESIGN 1. Mechanistic approach 2. Motivational approach 3. Biological approach 4. Perceptual/motor approach 1. MECHANISTIC APPROACH The focus of the mechanistic approach is identifying the simplest way to structure work that maximizes efficiency, making the work so simple that anyone can be trained quickly and easily to perform it. This approach focuses on designing jobs around the concepts of: Specialization Skill simplification & repetition Work methods autonomy 1. OUTCOMES OF MECHANISTIC APPROACH Positive Outcomes Decreased training time Higher utilization levels Lower likelihood of error Less chance of mental overload and stress Negative Outcomes Lower job satisfaction Lower motivation Higher absenteeism 2. MOTIVATIONAL APPROACH This approach focuses on the job characteristics that affect the psychological meaning and motivational potential, and it views attitudinal variables as the most important outcomes of job design. This approach focuses on designing jobs around the concepts of: Decision-making autonomy Task significance Interdependence 2. OUTCOMES OF MOTIVATIONAL APPROACH Positive Outcomes  Higher job satisfaction  Higher motivation  Greater job involvement  Lower absenteeism Negative Outcomes  Increased training time  Lower utilization levels  Greater likelihood of error  Greater chance of mental overload and stress  3. BIOLOGICAL APPROACH The biological approach has been applied in redesigning equipment used in jobs that are physically demanding. Such redesign is often aimed at reducing the physical demands of certain jobs so that anyone can perform them. This approach focuses on designing jobs around the concepts of: Physical demand Ergonomics Work conditions 3. OUTCOMES OF BIOLOGICAL APPROACH Positive Outcomes  Less physical effort  Less physical fatigue  Fewer health complaints  Fewer medical incidences  Lower absenteeism  Higher job satisfaction Negative Outcomes  Higher financial costs because of changes in equipment or job environment 4. PERCEPTUAL/MOTOR APPROACH The goal is to design jobs in a way that ensures that they do not exceed people’s mental capabilities. This approach, similar to the mechanistic approach, generally has the effect of decreasing the job's cognitive demands, and it focuses on designing jobs around the concepts of: Job complexity Information processing Equipment use  4. OUTCOMES OF PERCEPTUAL-MOTOR APPROACH Positive Outcomes  Lower likelihood of error  Lower likelihood of accidents  Less chance of mental overload and stress  Lower training time  Higher utilization levels Negative Outcomes  Lower job satisfaction  Lower motivation  SUMMARY Job analysis and design is a key component for a competitive advantage and strategy Managers need to understand the entire work-flow process to ensure efficiency and effectiveness and have clear, detailed job information. Managers can redesign jobs so the work unit is able to achieve its goals while individuals benefit from motivation, satisfaction, safety, health and achievement.  Chapter 5 Human Resource Planning and Recruitment  LEARNING OBJECTIVES LO 5-1 Discuss how to align a company’s strategic direction with its human resource planning. LO 5-2 Determine labor demand for workers in various job categories. LO 5-3 Discuss advantages and disadvantages of various ways of eliminating a labor surplus and avoid a labor shortage. LO 5-4 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive. LO 5-5 List the various sources from which job applicants can be drawn, their relative advantages and disadvantages and the methods for evaluating them. OVERVIEW OF THE HUMAN RESOURCE PLANNING PROCESS 1 1 2 3 4  Demand forecasts Labor supply forecasts Determining how many Forecasting how many and what type of people and what types of are needed employees the organization actually will have Demand forecasts Labor supply forecasts Reconcile demand and Current workforce Labor market forecasts For a 10 engineers 8 engineers 40 engineers Hire 2 new 2 designers 2 designers engineers phone 10 factory workers 8 factory workers 0 factory worker 4 sales people 3 sales people 10 sales people Hire 1 sales 1 customer service 2 customer Layoff representative service 1customer representative service representative  FORECASTING AND LEADING INDICATORS ▪Forecasting: The attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be future labor short- ages or surpluses. ▪Leading Indicators: An objective measure that accurately predicts future labor demand.  LEARNING OBJECTIVES LO 5-1 Discuss how to align a company’s strategic direction with its human resource planning. LO 5-2 Determine labor demand for workers in various job categories. LO 5-3 Discuss advantages and disadvantages of various ways of eliminating a labor surplus and avoid a labor shortage. LO 5-4 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive. LO 5-5 List the various sources from which job applicants can be drawn, their relative advantages and disadvantages and the methods for evaluating them.  FORECASTING STAGE OF HR PLANNING Subjective judgements with statistical methods 1. Determine labor demand ▪Derived from product/service demands external in nature 2. Determine labor supply ▪Internal movements caused by transfers, promotions, turnover, retirements, etc. ▪Transitional matrices identify employee movements in different job categories over time 3. Determine labor surplus or shortage ▪Compare forecasts and demand TRANSITIONAL MATRIX  LEARNING OBJECTIVES LO 5-1 Discuss how to align a company’s strategic direction with its human resource planning. LO 5-2 Determine labor demand for workers in various job categories. LO 5-3 Discuss advantages and disadvantages of various ways of eliminating a labor surplus and avoid a labor shortage. LO 5-4 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive. LO 5-5 List the various sources from which job applicants can be drawn, their relative advantages and disadvantages and the methods for evaluating them. OPTIONS FOR REDUCING EXPECTED LABOR SURPLUS Option Speed Human Suffering Downsizing FAST High Pay reductions FAST High Demotions FAST High Transfers FAST Moderate Work sharing FAST Moderate Hiring Freeze SLOW Low Natural attrition SLOW Low Early retirement SLOW Low Retraining SLOW Low  OPTIONS FOR AVOIDING EXPECTED LABOR SHORTAGE Option Speed Revocability Overtime FAST High Temporary employees FAST High Outsourcing FAST High Retrained transfers SLOW High Turnover reductions SLOW Moderate New external hires SLOW Low Technological innovation SLOW Low AFFIRMATIVE ACTION PLANNING Workforce utilization review is a comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents. used to determine whether any subgroups may be underutilized AFFIRMATIVE ACTION PLANNING Workforce utilization review is a comparison of the proportion of workers in protected subgroups with the proportion that each subgroup represents. used to determine whether any subgroups may be underutilized  LEARNING OBJECTIVES LO 5-1 Discuss how to align a company’s strategic direction with its human resource planning. LO 5-2 Determine labor demand for workers in various job categories. LO 5-3 Discuss advantages and disadvantages of various ways of eliminating a labor surplus and avoid a labor shortage. LO 5-4 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive. LO 5-5 List the various sources from which job applicants can be drawn, their relative advantages and disadvantages and the methods for evaluating them. ORGANIZATIONAL RECRUITMENT PROCESS PERSONNEL POLICIES Personnel policies are organizational decisions that affect the nature of the vacancies for which people are recruited. They impact the organization’s ability to recruit. Characteristics of the vacancy are more important than recruiters or recruiting sources. Sample Personal Policies: https://eli.ctas.tennessee.edu/reference/sample-personnel-policies https://hr.berkeley.edu/policies/policies-procedures/ppsm  TYPES OF PERSONNEL POLICIES Internal versus external recruiting ▪Example: Every job vacancy will be advertised within the organization before any external advertising takes place. Extrinsic (monetary) versus intrinsic (motivational) rewards ▪Extrinsic rewards example: Any employees who are promoted to the managerial level will receive free vehicles. Employment-at-will policies  Either party can terminate the relationship vs. Due process policies  Employee takes steps to appeal a termination Image advertising  Promote company as a good place to work  LEARNING OBJECTIVES LO 5-1 Discuss how to align a company’s strategic direction with its human resource planning. LO 5-2 Determine labor demand for workers in various job categories. LO 5-3 Discuss advantages and disadvantages of various ways of eliminating a labor surplus and avoid a labor shortage. LO 5-4 Describe the various recruitment policies that organizations adopt to make job vacancies more attractive. LO 5-5 List the various sources from which job applicants can be drawn, their relative advantages and disadvantages and the methods for evaluating them.  INTERNAL SOURCES Someone already employed by the organization Advantages Disadvantages ▪ Organization has a good idea of strengths and ▪ Intense infighting for weaknesses of its employees promotions can have a ▪ Performance evaluations of employees are negative effect on available morale and ▪ More accurate data are available concerning performance of current employees employees not ▪ Employees know more about organization and promoted how it operates ▪ Inbreeding of ideas ▪ Recruitment from within can have a significant, positive effect on employee motivation and morale when it creates promotion opportunities or prevents layoffs ▪ Most organizations have a sizable investment in the workforce  INTERNAL SOURCES Someone already employed by the organization Advantages Disadvantages ▪ Organization has a good idea of strengths and ▪ Intense infighting for weaknesses of its employees promotions can have a ▪ Performance evaluations of employees are negative effect on available morale and ▪ More accurate data are available concerning performance of current employees employees not ▪ Employees know more about organization and promoted how it operates ▪ Inbreeding of ideas ▪ Recruitment from within can have a significant, positive effect on employee motivation and morale when it creates promotion opportunities or prevents layoffs ▪ Most organizations have a sizable investment in the workforce  INTERNAL SOURCES Someone already employed by the organization Advantages Disadvantages ▪ Organization has a good idea of strengths and ▪ Intense infighting for weaknesses of its employees promotions can have a ▪ Performance evaluations of employees are negative effect on available morale and ▪ More accurate data are available concerning performance of current employees employees not ▪ Employees know more about organization and promoted how it operates ▪ Inbreeding of ideas ▪ Recruitment from within can have a significant, positive effect on employee motivation and morale when it creates promotion opportunities or prevents layoffs ▪ Most organizations have a sizable investment in the workforce  EXTERNAL SOURCES Advantages Disadvantages ▪ Pool of talent much larger in ▪ Attracting, contacting, and comparison to internal sources evaluating potential ▪ Bring new insights and employees is more difficult perspectives ▪ Employees hired from ▪ Cheaper and easier to hire outside need a longer technical, skilled, or managerial adjustment or orientation people from outside than to period train and develop internally ▪ Recruiting from outside may cause morale problems among current employees  EXTERNAL SOURCES Advantages Disadvantages ▪ Pool of talent much larger in ▪ Attracting, contacting, and comparison to internal sources evaluating potential ▪ Bring new insights and employees is more difficult perspectives ▪ Employees hired from ▪ Cheaper and easier to hire outside need a longer technical, skilled, or managerial adjustment or orientation people from outside than to period train and develop internally ▪ Recruiting from outside may cause morale problems among current employees  EXTERNAL SOURCES Advertising Job advertising: Placement of help-wanted advertisements in daily newspapers, in trade and professional publications, or on radio and television Employment Headhunter: Type of private employment agency that seeks agencies candidates for high-level, or executive, positions Temporary help People working for employment agencies who are agencies subcontracted out to businesses at an hourly rate for a period of time specified by the businesses Employee Provide permanent staffs at customer companies leasing companies Employee Organizations involve their employees in the recruiting process referrals and Corporate image has an impact on the number and quality of walk-ins people who apply to an organization Campus Recruitment activities of employers on college and university recruiting campuses Internet Job candidates and managers searching for qualified job recruiting applicants are increasingly relying on the Internet  SUMMARY HR planning uses labor supply and demand forecasts to anticipate labor shortages and surpluses to enhance organization’s success and reduce human suffering. HR recruiting creates an applicant pool should a labor shortage occur. Organizations can use recruiters to influence an individuals’ perceptions of jobs.  Chapter 6 Selection and Placement LEARNING OBJECTIVES LO 6-1 Establish the basic scientific properties of personnel selection methods, including reliability, validity and generalizability. LO 6-2 Discuss how the particular characteristics of a job, organization or applicant affect the utility of any test. LO 6-3 Describe the government’s role in personnel selection decisions, particularly in areas of constitutional law, federal laws, executive orders and judicial precedent. LO 6-4 List common methods used in selecting human resources. LO 6-5 Describe the degree to which each of the common methods used in selecting human resources meets the demands of reliability, validity, generalizability, utility and legality.  SELECTION METHOD STANDARDS Several generic standards should be met in any selection process. We focus on the following five standards: 1. Reliability 2. validity 3. generalizability 4. utility 5. legality  1. RELIABILITY Reliability is the degree to which a measure of physical or cognitive abilities or traits is free from random error. Correlation coefficient is a measure of the degree to which two sets of numbers are related. A perfect positive relationship equals +1.0 A perfect negative relationship equals - 1.0 Test-retest reliability is knowing how scores on the measure at one time relate to scores on the same measure at another time.  1. RELIABILITY Reliability is the degree to which a measure of physical or cognitive abilities or traits is free from random error. Correlation coefficient is a measure of the degree to which two sets of numbers are related. A perfect positive relationship equals +1.0 A perfect negative relationship equals - 1.0 Test-retest reliability is knowing how scores on the measure at one time relate to scores on the same measure at another time.  1. RELIABILITY Reliability is the degree to which a measure of physical or cognitive abilities or traits is free from random error. Correlation coefficient is a measure of the degree to which two sets of numbers are related. A perfect positive relationship equals +1.0 A perfect negative relationship equals - 1.0 Test-retest reliability is knowing how scores on the measure at one time relate to scores on the same measure at another time.  1. RELIABILITY Reliability is the degree to which a measure of physical or cognitive abilities or traits is free from random error. Correlation coefficient is a measure of the degree to which two sets of numbers are related. A perfect positive relationship equals +1.0 A perfect negative relationship equals - 1.0 Test-retest reliability is knowing how scores on the measure at one time relate to scores on the same measure at another time.  2. VALIDITY Validity is the extent to which a performance measure assesses all and only the relevant aspects of job performance Criterion-related validation is a method of establishing validity of a personnel selection method by showing a substantial correlation between test scores and job-performance scores.  Predictive validation  Concurrent validation Content validation  2.1 PREDICTIVE VALIDATION Measure all job applicants on attribute Hire some applicants and reject others Predictive Wait for some period of time validation is a Measure all newly hired job incumbents’ performance criterion-related validity study that Finally, obtain correlation between these two sets of numbers seeks to establish an empirical relationship between applicants’ test scores and their eventual performance on the job.  2.1 PREDICTIVE VALIDATION Measure all job applicants on attribute Hire some applicants and reject others Predictive Wait for some period of time validation is a Measure all newly hired job incumbents’ performance criterion-related validity study that Finally, obtain correlation between these two sets of numbers seeks to establish an empirical relationship between applicants’ test scores and their eventual performance on the job. 2.2 CONCURRENT VALIDATION Concurrent validation is a criterion-related validity study in which Measurea test is administered all current to on job incumbents allattribute the people currently on the job and Measure then correlating all current testperformance job incumbents’ scores with existing measures of each person’s performance. Finally, obtain correlation between these two sets of numbers 2.2 CONCURRENT VALIDATION Concurrent validation is a criterion-related validity study in which Measurea test is administered all current to on job incumbents allattribute the people currently on the job and Measure then correlating all current testperformance job incumbents’ scores with existing measures of each person’s performance. Finally, obtain correlation between these two sets of numbers 2.3 CONTENT VALIDATION Content validation is a test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that occur on the job. ▪Best for small samples ▪Achieved primarily through expert judgment 2.3 CONTENT VALIDATION Content validation is a test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that occur on the job. ▪Best for small samples ▪Achieved primarily through expert judgment  3. GENERALIZABILITY Generalizability is the degree to which the validity of a selection method established in one context extends to other contexts.  Different situations  Different samples of people  Different time periods LEARNING OBJECTIVES LO 6-1 Establish the basic scientific properties of personnel selection methods, including reliability, validity and generalizability. LO 6-2 Discuss how the particular characteristics of a job, organization or applicant affect the utility of any test. LO 6-3 Describe the government’s role in personnel selection decisions, particularly in areas of constitutional law, federal laws, executive orders and judicial precedent. LO 6-4 List common methods used in selecting human resources. LO 6-5 Describe the degree to which each of the common methods used in selecting human resources meets the demands of reliability, validity, generalizability, utility and legality.  4. UTILITY Utility is the degree to which information provided by selection methods enhances the effectiveness of selecting personnel. Utility is impacted by:  Reliability  Validity  Generalizability In other words, a selection method with high reliability, low validity, and low generalizability has low utility as well. LEARNING OBJECTIVES LO 6-1 Establish the basic scientific properties of personnel selection methods, including reliability, validity and generalizability. LO 6-2 Discuss how the particular characteristics of a job, organization or applicant affect the utility of any test. LO 6-3 Describe the government’s role in personnel selection decisions, particularly in areas of constitutional law, federal laws, executive orders and judicial precedent. LO 6-4 List common methods used in selecting human resources. LO 6-5 Describe the degree to which each of the common methods used in selecting human resources meets the demands of reliability, validity, generalizability, utility and legality.  5. LEGALITY All selection methods should adhere to existing laws and legal precedents. 5. AVOIDING LITIGATION Predictors of whether a firm becomes truly diverse and avoids litigation include: ▪There is a specific person whose sole job is to monitor hiring statistics ▪This person has the power to change hiring practices ▪This person is held strictly accountable in their own performance appraisal for achieving quantifiable results LEARNING OBJECTIVES LO 6-1 Establish the basic scientific properties of personnel selection methods, including reliability, validity and generalizability. LO 6-2 Discuss how the particular characteristics of a job, organization or applicant affect the utility of any test. LO 6-3 Describe the government’s role in personnel selection decisions, particularly in areas of constitutional law, federal laws, executive orders and judicial precedent. LO 6-4 List common methods used in selecting human resources. LO 6-5 Describe the degree to which each of the common methods used in selecting human resources meets the demands of reliability, validity, generalizability, utility and legality. TYPES OF SELECTION METHODS 1. Interviews 2. References, Application Blanks, Background Checks 3. Physical Ability Tests 4. Cognitive Ability Tests 5. Personality Inventories 6. Work Samples 7. Honest Tests and Drug Tests  1. INTERVIEWS Selection Interviews dialogue initiated by one or more persons to gather information and evaluate the applicant’s qualifications for employment ▪Interviews should be structured, standardized, and focused on goals oriented to skills and observable behaviors. ▪Interviewers should be able to quantitatively rate each interview. ▪Interviewers should have a structured note-taking system that will aid recall to satisfying ratings.  1. SITUATIONAL INTERVIEW Situational Interview  Confronts applicants on specific issues, questions, or problems likely to arise on the job. Interview consists of:  Experience-based questions e.g., Can you tell me an event where you solved conflicts effectively?  Future-oriented questions e.g., How would you solve conflicts in your workplace? ▪Research suggests that both experience-based and future-oriented items used in situational interviews show validity but that experience-based items often outperform future-oriented items. 2. CHARACTERISTICS OF OTHER SELECTION METHODS ▪Individuals should manage their digital identity the same way they manage their resume ▪Many employers search social networking sites ▪References and applications are weak predictors of job success ▪Criterion-related validities for physical ability tests can have a disparate impact 3. PHYSICAL ABILITY TESTS Is physical ability essential to perform the job? Is it mentioned prominently in the job description? Physical tests measure:  Muscular tension, power, endurance  Flexibility  Balance  Cardiovascular endurance  Coordination  4. COGNITIVE ABILITY TESTS Cognitive ability has many different facets, although we will focus only on three dominant ones: Verbal comprehension Quantitative ability Reasoning ability  4. COGNITIVE ABILITY TESTS Cognitive ability has many different facets, although we will focus only on three dominant ones: Verbal comprehension Quantitative ability Reasoning ability  5. PERSONALITY INVENTORIES: “THE BIG FIVE” There are five dimensions of personality Conscientiousness Agreeableness Neuroticism/adjustment Extroversion Openness to experience Evaluate your big five personality: https://www.truity.com/test/big-five-personality-test https://www.arealme.com/big-five-personality-traits- test/ko/  5. PERSONALITY INVENTORIES: “THE BIG FIVE” There are five dimensions of personality Conscientiousness Agreeableness Neuroticism/adjustment Extroversion Openness to experience Evaluate your big five personality: https://www.truity.com/test/big-five-personality-test https://www.arealme.com/big-five-personality-traits- test/ko/  5. PERSONALITY INVENTORIES: “THE BIG FIVE” There are five dimensions of personality Conscientiousness Agreeableness Neuroticism/adjustment Extroversion Openness to experience Evaluate your big five personality: https://www.outofservice.com/bigfive/  5. EMOTIONAL INTELLIGENCE Describes a person who is especially effective and fluid in socially intensive contexts. Five aspects: ▪Self-awareness: knowledge of one’s strengths and weakness ▪Self-regulation: the ability to keep disruptive emotions in check ▪Self-motivation: how to motivate oneself and persevere in the face of obstacles ▪Social skills: the ability to manage the emotions of other people ▪Empathy: the ability to sense and read emotions in others  5. EMOTIONAL INTELLIGENCE Describes a person who is especially effective and fluid in socially intensive contexts. Five aspects: ▪Self-awareness: knowledge of one’s strengths and weakness ▪Self-regulation: the ability to keep disruptive emotions in check ▪Self-motivation: how to motivate oneself and persevere in the face of obstacles ▪Social skills: the ability to manage the emotions of other people ▪Empathy: the ability to sense and read emotions in others 6. WORK-SAMPLE TESTS ▪Work-sample tests attempt to simulate the job in a pre-hiring context to observe how the applicant performs. ▪Assessment center is a process in which multiple raters evaluate employees’ performance on exercises. 7. HONESTY TESTS ▪Polygraph Act of 1988 banned the use of polygraph tests for private companies except pharmaceutical and security guard suppliers: https://www.dol.gov/whd/regs/compliance/wh dfs36.htm ▪Paper-and-pencil honesty testing attempts to assess the likelihood that employees will steal.  Do you keep secrets from your spouse? Are you secretive in general?  Can you give me an example of when you paid a price to maintain integrity?  If a waitress does not claim tips on their tax return is that ethical? If a large corporation avoided the tax in the same way is that ethical? Is working a cash job to avoid taxes or to garner some type of government payment ethical?  Do you speed? (If someone says “no,” that would be very questionable in an interview.) 7. DRUG TESTS Drug-use tests tend to be reliable and valid. ▪Tests should be administered systematically to all applicants applying for the same job. ▪Testing is likely to be more defensible with safety hazards associated with failure to perform. ▪Test results should be reported to applicants, who should have an avenue to appeal.  SUMMARY Job applicants and an organization’s viability are affected by decisions regarding who is accepted and rejected for positions Five standards should conform: reliability, validity, generalizability, utility and legality Managerial assessment centers use many different forms of tests to learn about candidates Validity associated with judicious use of multiple tests is higher than for tests used in isolation Chapter 7 Training  LEARNING OBJECTIVES LO 7-1 Discuss how training, informal learning, and knowledge management can contribute to continuous learning and companies’ business strategy. LO 7-2 Explain the role of the manager in identifying training needs and supporting training on the job. LO 7-3 Conduct a needs assessment. LO 7-4 Evaluate employees’ readiness for training. LO 7-5 Discuss the strengths and weaknesses of presentation, hands-on, and group training methods. LO 7-6 Choose appropriate evaluate design and training outcomes based on the training objectives and evaluation purpose. LO 7-7 Design a cross-cultural preparation program. LO 7-8 Develop a program for effectively managing diversity.  INTRODUCTION Companies are in business to make money, and every business function is under pressure to show how it contributes to business success or face spending cuts and even outsourcing.  Training activities should help the company achieve its business strategy.  Training can help employees develop skills needed to perform their jobs, which directly affects the business.  INTRODUCTION Companies are in business to make money, and every business function is under pressure to show how it contributes to business success or face spending cuts and even outsourcing.  Training activities should help the company achieve its business strategy.  Training can help employees develop skills needed to perform their jobs, which directly affects the business.  INTRODUCTION Companies are in business to make money, and every business function is under pressure to show how it contributes to business success or face spending cuts and even outsourcing.  Training activities should help the company achieve its business strategy.  Training can help employees develop skills needed Korea companies spent $84 per learner in 2017. to perform their jobs, which directly affects the business. 47% of employee in South Korea received training.  INTRODUCTION Companies are in business to make money, and every Korea companies business functionspent $84 perpressure is under learner in to 2017 show (vs. $267toinbusiness how it contributes EU vs. $1,286 in USA). success or face spending cuts and even outsourcing. Each employee spent 6.5 hours of training per year (vs. 10 hours in EU vs. 42 hours in USA)  Training activities should help the company achieve its business Participation strategy. rate in education and training fully supported  Training canbyhelp employers, Southdevelop employees Korea recorded 8.6%, skills needed to performlower than their the OECD jobs, whichaverage of 21.2%. directly affects the business.  INTRODUCTION A teammoney, Companies are in business to make that is well andtrained saves every business function is under an average pressure to of $70,000 show how it contributes to businessannually successand increases their or face productivity by 10%. spending cuts and even outsourcing. Teams receiving 40 hours of  Training activities should help the company training per member met achieve its business strategy. their significant project  Training can help employees objectives three times develop skills neededas often as teams to perform their jobs, which directly that affects received the business. 30 hours of training or less.  ASPECTS OF TRAINING ▪Ensure basic skills to work with new technology ▪Ensure employment security ▪Prepare employees to accept and work with each other ▪Increase understanding of working effectively in teams ▪Ensure that culture emphasizes innovation and learning ▪Increase knowledge of foreign competitors and cultures  CONTINUOUS LEARNING & HIGH-LEVERAGE TRAINING Continuous learning requires employees to understand the entire work process, acquire and apply new skills and share what they have learned. High-leverage training is: ▪linked to strategic business goals and objectives, ▪supported by top management, ▪relies on an instructional design model, and is ▪benchmarked to programs in other organizations. KEY FEATURES OF CONTINUOUS LEARNING  KNOWLEDGE Knowledge management  design and implement systems for the use of knowledge  contributes to informal learning Explicit knowledge  well documented, easily articulated and transferred person to person Tacit knowledge  is personal knowledge based on individual experience difficult to codify  CONTINUOUS & HIGH-LEVERAGE TRAINING Continuous learning requires employees to understand the entire work process, acquire and apply new skills and share what they have learned. High-leverage training is: ▪linked to strategic business goals and objectives, ▪supported by top management, ▪relies on an instructional design model, and is ▪benchmarked to programs in other organizations.  ADDIE MODEL The ADDIE model (analysis, design, development, implementation, evaluation) is a systematic approach for developing training programs.  LEARNING OBJECTIVES LO 7-1 Discuss how training, informal learning, and knowledge management can contribute to continuous learning and companies’ business strategy. LO 7-2 Explain the role of the manager in identifying training needs and supporting training on the job. LO 7-3 Conduct a needs assessment. LO 7-4 Evaluate employees’ readiness for training. LO 7-5 Discuss the strengths and weaknesses of presentation, hands-on, and group training methods. LO 7-6 Choose appropriate evaluate design and training outcomes based on the training objectives and evaluation purpose. LO 7-7 Design a cross-cultural preparation program. LO 7-8 Develop a program for effectively managing diversity.  THE SIX-STEP TRAINING PROCESS 1. Needs assessment 2. Ensuring employee’s readiness for training 3. Creating a learning environment 4. Ensure transfer of training 5. Selecting training methods 6. Evaluating training programs  LEARNING OBJECTIVES LO 7-1 Discuss how training, informal learning, and knowledge management can contribute to continuous learning and companies’ business strategy. LO 7-2 Explain the role of the manager in identifying training needs and supporting training on the job. LO 7-3 Conduct a needs assessment. LO 7-4 Evaluate employees’ readiness for training. LO 7-5 Discuss the strengths and weaknesses of presentation, hands-on, and group training methods. LO 7-6 Choose appropriate evaluate design and training outcomes based on the training objectives and evaluation purpose. LO 7-7 Design a cross-cultural preparation program. LO 7-8 Develop a program for effectively managing diversity.  THE SIX-STEP TRAINING PROCESS 1. Needs assessment 2. Ensuring employee’s readiness for training 3. Creating a learning environment 4. Ensure transfer of training 5. Selecting training methods 6. Evaluating training programs TRAINING NEEDS ASSESSMENT (TNA) NEEDS ASSESSMENT PROCESS  TASK ANALYSIS This identifies the conditions in which tasks are performed 1. Identify jobs 2. Develop task list 3. Validate tasks 4. Identify knowledge, skills, abilities, and other characteristics (KSAOs) to perform tasks  LEARNING OBJECTIVES LO 7-1 Discuss how training, informal learning, and knowledge management can contribute to continuous learning and companies’ business strategy. LO 7-2 Explain the role of the manager in identifying training needs and supporting training on the job. LO 7-3 Conduct a needs assessment. LO 7-4 Evaluate employees’ readiness for training. LO 7-5 Discuss the strengths and weaknesses of presentation, hands-on, and group training methods. LO 7-6 Choose appropriate evaluate design and training outcomes based on the training objectives and evaluation purpose. LO 7-7 Design a cross-cultural preparation program. LO 7-8 Develop a program for effectively managing diversity.  THE SIX-STEP TRAINING PROCESS 1. Needs assessment 2. Ensuring employee’s readiness for training 3. Creating a learning environment 4. Ensure transfer of training 5. Selecting training methods 6. Evaluating training programs  READINESS FOR TRAINING Readiness for Training includes the employee characteristics that provide them with the desire, focus, and energy to learn. Motivation to Learn is the desire to learn the content of a training program. Self-efficacy reflects the employee belief that they can learn content of training program.  READINESS FOR TRAINING Readiness for Training includes the employee characteristics that provide them with the desire, focus, and energy to learn. Motivation to Learn is the desire to learn the content of a training program. Self-efficacy reflects the employee belief that they can learn content of training program. FACTORS THAT INFLUENCE MOTIVATION TO LEARN 1/2 FACTORS THAT INFLUENCE MOTIVATION TO LEARN 2/2  THE SIX-STEP TRAINING PROCESS 1. Needs assessment 2. Ensuring employee’s readiness for training 3. Creating a learning environment 4. Ensure transfer of training 5. Selecting training methods 6. Evaluating training programs  CONDITIONS FOR LEARNING ▪Need to know why they should learn. ▪Meaningful training content. ▪Opportunities for practice. ▪Feedback. ▪Observe, experience, and interact with training content, other learners, and instructor. ▪Good program coordination and administration. ▪Commit training content to memory.  THE SIX-STEP TRAINING PROCESS 1. Needs assessment 2. Ensuring employee’s readiness for training 3. Creating a learning environment 4. Ensure transfer of training 5. Selecting training methods 6. Evaluating training programs WORK ENVIRONMENT CHARACTERISTICS INFLUENCING TRANSFER OF TRAINING ▪Opportunity to use learned capability ▪Technological support ▪Manager support ▪Peer support ▪Self-management skills  LEARNING OBJECTIVES LO 7-1 Discuss how training, informal learning, and knowledge management can contribute to continuous learning and companies’ business strategy. LO 7-2 Explain the role of the manager in identifying training needs and supporting training on the job. LO 7-3 Conduct a needs assessment. LO 7-4 Evaluate employees’ readiness for training. LO 7-5 Discuss the strengths and weaknesses of presentation, hands- on, and group training methods. LO 7-6 Choose appropriate evaluate design and training outcomes based on the training objectives and evaluation purpose. LO 7-7 Design a cross-cultural preparation program. LO 7-8 Develop a program for effectively managing diversity.  THE SIX-STEP TRAINING PROCESS 1. Needs assessment 2. Ensuring employee’s readiness for training 3. Creating a learning environment 4. Ensure transfer of training 5. Selecting training methods 6. Evaluating training programs OVERVIEW OF USE OF TRAINING METHODS  PRESENTATION METHODS Presentation methods are methods in which trainees are passive recipients of information. These are ideal for presenting new facts, information, different philosophies, and alternative problem-solving solutions or processes. ▪Instructor-led classroom: one of the least expensive, least time- consuming ways to present information on a specific topic to many trainees ▪Teleconferencing and webcasting ▪Audiovisual training ▪Mobile technology  HANDS-ON METHODS (1/2) Hands-on methods are training methods that require the trainee to be actively involved in learning. These methods are ideal for developing specific skills, understanding how skills and behaviors can be transferred to the job, experiencing all aspects of completing a task, and dealing with interpersonal issues that arise on the job. ▪On-the-job training, apprenticeship, internship ▪Simulations, avatars ▪Business games and case studies ▪Behavior modeling: one of the most effective techniques for teaching interpersonal skills  HANDS-ON METHODS (2/2) ▪E-learning ▪Social media ▪Blended learning: combines online learning, face-to-face instruction or other methods  LEARNING OBJECTIVES LO 7-1 Discuss how training, informal learning, and knowledge management can contribute to continuous learning and companies’ business strategy. LO 7-2 Explain the role of the manager in identifying training needs and supporting training on the job. LO 7-3 Conduct a needs assessment. LO 7-4 Evaluate employees’ readiness for training. LO 7-5 Discuss the strengths and weaknesses of presentation, hands-on, and group training methods. LO 7-6 Choose appropriate evaluate design and training outcomes based on the training objectives and evaluation purpose. LO 7-7 Design a cross-cultural preparation program. LO 7-8 Develop a program for effectively managing diversity.  THE SIX-STEP TRAINING PROCESS 1. Needs assessment 2. Ensuring employee’s readiness for training 3. Creating a learning environment 4. Ensure transfer of training 5. Selecting training methods 6. Evaluating training programs EVALUATING TRAINING PROGRAMS EVALUATION DESIGNS  LEARNING OBJECTIVES LO 7-1 Discuss how training, informal learning, and knowledge management can contribute to continuous learning and companies’ business strategy. LO 7-2 Explain the role of the manager in identifying training needs and supporting training on the job. LO 7-3 Conduct a needs assessment. LO 7-4 Evaluate employees’ readiness for training. LO 7-5 Discuss the strengths and weaknesses of presentation, hands-on, and group training methods. LO 7-6 Choose appropriate evaluate design and training outcomes based on the training objectives and evaluation purpose. LO 7-7 Design a cross-cultural preparation program. LO 7-8 Develop a program for effectively managing diversity.  CROSS-CULTURAL PREPARATION An expatriate is an employee sent by the company to manage operations in a different country Expatriate characteristics: ▪Competent in area of expertise ▪Able to communicate in host country ▪Culturally sensitive ▪Motivated to succeed ▪Supported by family  PHASES OF CROSS-CULTURAL PREPARATION Pre- On-site Repatriation departure training receive continued prepares language orientation expatriates training to the host for return and an country and to the orientation its customs parent to the new and company country’s cultures and country culture and through from a customs. formal foreign programs assignment or through a mentoring relationship  LEARNING OBJECTIVES LO 7-1 Discuss how training, informal learning, and knowledge management can contribute to continuous learning and companies’ business strategy. LO 7-2 Explain the role of the manager in identifying training needs and supporting training on the job. LO 7-3 Conduct a needs assessment. LO 7-4 Evaluate employees’ readiness for training. LO 7-5 Discuss the strengths and weaknesses of presentation, hands-on, and group training methods. LO 7-6 Choose appropriate evaluate design and training outcomes based on the training objectives and evaluation purpose. LO 7-7 Design a cross-cultural preparation program. LO 7-8 Develop a program for effectively managing diversity.  MANAGING DIVERSITY AND INCLUSION Diversity: a dimension that differentiates a person from another. Managing Diversity: process of creating an environment that allows all employees to contribute to organizational goals and experience personal growth; supported by top management Types of Diversity Training: attitude awareness and change programs and behavior-based programs Goals of Diversity Training and Inclusion: 1. Eliminate values, stereotypes, and managerial practices that inhibit 2. Allow employees to contribute to organizational goals  ONBOARDING AND SOCIALIZATION: 4 STEPS Compliance Clarificatio Culture Connection n understa understa understa understa nd nd job nd nd and company and company develop policies, performa history, relations rules, and nce traditions hips regulatio expectati , values, ns ons norms, mission  SUMMARY Technological innovations, new product markets, and a diverse workforce have increased the need for companies to reexamine how their training practices contribute to learning. Training can contribute to effectiveness through establishing a link with the company’s strategic direction and demonstrating through cost–benefit analysis how training contributes to profitability. The key to successful training is choosing the most effective training method. Managing diversity and cross-cultural preparation are two training issues relevant to capitalize on a diverse workforce and global markets. Strategic Human Resource Management Chapter 1. Human Resource Management: Gaining a Competitive Advantage TEXTBOOK CHAPTERS  LEARNING OBJECTIVES LO 1-1 Discuss the roles and activities of a company’s human resource management function. LO 1-2 Discuss the implications of the economy, the makeup of the labor force, and ethics for company sustainability. LO 1-3 Discuss what companies should do to compete in the global marketplace. LO 1-4 Identify how new technology, such as social networking, is influencing human resource management. LO 1-5 Discuss human resource management practices that support high-performance work systems. LO 1-6 Provide a brief description of human resource management practices.  HUMAN RESOURCE MANAGEMENT Activities designed to provide for and coordinate human resources of an organization Traditionally referred to as personnel administration or personnel management  HRM GAINING A COMPETITIVE ADVANTAGE Competitiveness is a Human resource company’s ability to management (HRM) – maintain and gain market the policies, practices, share in its industry. and systems that influence employees’ behavior, attitudes and performance HUMAN RESOURCE MANAGEMENT PRACTICE  HR AS A BUSINESS WITH 3 PRODUCT LINES 1. Administrative Services and Transactions: e.g., compensation, hiring, and staffing 2. Business Partner Services: know the business and exercising influences e.g., developing HR systems, talent management 3. Strategic Partner; contribute to business strategy based on considerations of human capital and business capabilities e.g., contributing to business strategy by human capital, developing HR practices as strategic differentiators  HR PLAYS A STRATEGIC ROLE 1. What is HR doing to provide value-added services to internal clients? 2. Do the actions of HR support and align with business priorities? 3. How are you measuring the effectiveness of HR? 4. How can we reinvest in employees? 5. What HR strategy will get business from point A to B? 6. What should HR do to improve our marketplace position? 7. What’s the best change to prepare for the future? 8. Do we react to business problems or anticipate them in advance? HRM FUNCTION CHANGES? HR can engage in evidence-based HR Evidence-based HR – demonstrating that HR practices have a positive influence on the company’s bottom line or key stakeholders. HR or Workforce Analytics is the practice of using big data from HR databases and other data sources to make evidence-based HR decisions. HRM FUNCTION CHANGES? HR can engage in evidence-based HR Evidence-based HR – demonstrating that HR practices have a positive influence on the company’s bottom line or key stakeholders. (p.41) HR or Workforce Analytics is the practice of using big data from HR databases and other data sources to make evidence-based HR decisions.  Weekly TEAM CHALLENGE: Activity JUSTIFYING YOUR HUMAN RESOURCE DEPARTMENT Assume you work in the human resource department of a medium- sized manufacturing company (annual sales of $300 million). The company has unionized for many years but has never had a strike. The president of the company has just requested that all departments develop a budget for the coming fiscal year and be prepared to justify their budget requests. As part of this justification, your boss, the director of human resources, has just asked you to prepare a list of at least 10 reasons why the human resource department and its performance are important to the success of the entire company. Be prepared to present your list in class and submit it with the name of team members to earn the credit.  LEARNING OBJECTIVES LO 1-1 Discuss the roles and activities of a company’s human resource management function. LO 1-2 Discuss the implications of the economy, the makeup of the labor force, and ethics for company sustainability. LO 1-3 Discuss what companies should do to compete in the global marketplace. LO 1-4 Identify how new technology, such as social networking, is influencing human resource management. LO 1-5 Discuss human resource management practices that support high-performance work systems. LO 1-6 Provide a brief description of human resource management practices. 3 COMPETITIVE CHALLENGES ON HRM Sustainability HRM Technology Globalization Challenge HRM INCREASES COMPANY VALUE ❖Intangible Assets: A type of company asset including human capital, customer capital, social capital, and intellectual capital. ❖Knowledge Workers: Employees who own the intellectual means of producing a product or service.  HRM HELPS EMPOWERMENT & CONTINUOUS LEARNING Empowering - Giving employees responsibility and authority to make decisions Employee Engagement - Learning Organization degree to which employees - A culture of lifelong are fully involved in their HRM learning in which work and the strength of employees are their job and company continually trying to commitment. Change - learn new things. adoption of a new idea or behavior by a company. 25 TALENT MANAGEMENT Talent management is the systematic planned strategic effort to use bundles of HRM practices acquiring and assessing employees, learning and development, performance management and compensation to attract, retain, develop and motivate highly-skilled employees and managers. COMPETING THROUGH SUSTAINABILITY Starbucks Employees Go to School: As the U.S. economy recovers and the labor market tightens, employers have to do more to attract and retain talent. McDonald’s Corp. will raise wages for many employees by more than 10%, Wal-Mart Stores Inc. is raising hourly pay to $10 for 500,000 workers next year, and Starbucks Corp. will pay for its employees’ college tuition. Starbucks’ tuition program is the next step in a partnership with Arizona State University, in which it will reimburse employees who work at least 20 hours a week for their tuition expenses to receive an online bachelor’s degree from ASU. The catch? Starbucks will only reimburse the cost of classes for which employees receive passing grades and can only be used to pay for the last two years of a bachelor’s degree. Starbucks expects that by 2025 this program will cost $250 million and have helped 25,000 employees receive their degrees. It hopes this program will help it to retain the 144,000 people it employs in the United States while also giving back to its employees. Individuals who participate may stop the program and/or terminate their employment with Starbucks at any time with no penalty. As the market improves for job seekers, companies must take action to become an employer of choice to retain their human talent.  LEARNING OBJECTIVES LO 1-1 Discuss the roles and activities of a company’s human resource management function. LO 1-2 Discuss the implications of the economy, the makeup of the labor force, and ethics for company sustainability. LO 1-3 Discuss what companies should do to compete in the global marketplace. LO 1-4 Identify how new technology, such as social networking, is influencing human resource management. LO 1-5 Discuss human resource management practices that support high-performance work systems. LO 1-6 Provide a brief description of human resource management practices. 3 COMPETITIVE CHALLENGES ON HRM Sustainability HRM Technology Globalization Challenge GLOBAL CHALLENGES Offshoring- exporting jobs from less developed countries Companies must compete in and develop global markets and prepare employees for global Reshoring- moving jobs from assignments. overseas to U.S. 31 GLOBAL CHALLENGES Offshoring- exporting jobs from less developed countries Companies must compete in and develop global markets and prepare employees for global Reshoring- moving jobs from assignments. overseas to U.S. 32 GLOBAL CHALLENGES Offshoring- exporting jobs from less developed countries Companies must compete in and develop global markets and prepare employees for global Reshoring- moving jobs from assignments. overseas to U.S. 33 GLOBAL CHALLENGES Offshoring- exporting jobs from less developed countries Companies must compete in and develop global markets and prepare employees for global Reshoring- moving jobs from assignments. overseas to U.S. 34  LEARNING OBJECTIVES LO 1-1 Discuss the roles and activities of a company’s human resource management function. LO 1-2 Discuss the implications of the economy, the makeup of the labor force, and ethics for company sustainability. LO 1-3 Discuss what companies should do to compete in the global marketplace. LO 1-4 Identify how new technology, such as social networking, is influencing human resource management. LO 1-5 Discuss human resource management practices that support high-performance work systems. LO 1-6 Provide a brief description of human resource management practices. 3 COMPETITIVE CHALLENGES ON HRM Sustainability HRM Globalization Technology Challenge TECHNOLOGY CHALLENGE Advance Technologies HRM Social Networking Internet  LEARNING OBJECTIVES LO 1-1 Discuss the roles and activities of a company’s human resource management function. LO 1-2 Discuss the implications of the economy, the makeup of the labor force, and ethics for company sustainability. LO 1-3 Discuss what companies should do to compete in the global marketplace. LO 1-4 Identify how new technology, such as social networking, is influencing human resource management. LO 1-5 Discuss human resource management practices that support high-performance work systems. LO 1-6 Provide a brief description of human resource management practices.  HIGH-PERFORMANCE WORK SYSTEMS High-performance work systems maximize the fit between the company’s employees and technology. It changes skill requirements, new technology, company structure and reporting relationships. Support high-performance work systems through staffing, work design, training, compensation and performance management increases competitive advantage.  HIGH-PERFORMANCE WORK SYSTEMS High-performance work systems maximize the fit between the company’s employees and technology. It changes skill requirements, new technology, company structure and reporting relationships. Support high-performance work systems through staffing, work design, training, compensation and performance management increases competitive advantage.  LEARNING OBJECTIVES LO 1-1 Discuss the roles and activities of a company’s human resource management function. LO 1-2 Discuss the implications of the economy, the makeup of the labor force, and ethics for company sustainability. LO 1-3 Discuss what companies should do to compete in the global marketplace. LO 1-4 Identify how new technology, such as social networking, is influencing human resource management. LO 1-5 Discuss human resource management practices that support high-performance work systems. LO 1-6 Provide a brief description of human resource management practices. COMPETITIVE CHALLENGES THROUGH HRM  Chapter 2 Strategic Human Resource Management WHAT IS STRATEGIC MANAGEMENT? Strategic management is Strategic HRM is the a process to address the pattern of planned HR organization’s competitive activities and challenges by integrating deployments intended to goals, policies and action enable an organization to sequences into a cohesive achieve its goals whole. WHAT IS STRATEGIC HRM?  LEARNING OBJECTIVES LO 2-1 Describe the differences between strategy formulation and strategy implementation. LO 2-2 List the components of the strategic management process. LO 2-3 Describe the linkages between HRM and strategy formulation. LO 2-4 Discuss the more popular typologies of generic strategies and the various HRM practices associated with each. LO 2-5 Describe the different HRM issues and practices associated with various directional strategies. TWO PHASES OF STRATEGIC MANAGEMENT Strategy Formulation  Strategic planning groups decide on strategy Strategy Implementation  Organization follows through on the strategy TWO PHASES OF STRATEGIC MANAGEMENT Strategy Formulation  Strategic planning groups decide on strategy Strategy Implementation  Organization follows through on the strategy  LEARNING OBJECTIVES LO 2-1 Describe the differences between strategy formulation and strategy implementation. LO 2-2 List the components of the strategic management process. LO 2-3 Describe the linkages between HRM and strategy formulation. LO 2-4 Discuss the more popular typologies of generic strategies and the various HRM practices associated with each. LO 2-5 Describe the different HRM issues and practices associated with various directional strategies. DECISIONS ABOUT COMPETITION Where? How? With What?  LEARNING OBJECTIVES LO 2-1 Describe the differences between strategy formulation and strategy implementation. LO 2-2 List the components of the strategic management process. LO 2-3 Describe the linkages between HRM and strategy formulation. LO 2-4 Discuss the more popular typologies of generic strategies and the various HRM practices associated with each. LO 2-5 Describe the different HRM issues and practices associated with various directional strategies. STRATEGIC PLANNING AND HRM STRATEGY FORMULATION SWOT ANALYSIS FOR GOOGLE, INC. WEAKNESSES STRENGTHS Minimal physical Simplified approach presence Unique algorithms Limited profitability Globally recognized Improvements to search brand result accuracy is drastically needed OPPORTUNITIES THREATS More mobile users Competition from Increase investor companies such as Bing interest and Limited product life commitment through cycle for technology in advertising the market Penetrate markets with Imitation of some consumer electronics products PERSONAL SWOT ANALYSIS (5-6 ON EACH) STRENGTHS WEAKNESSES OPPORTUNITIES THREATS  LEARNING OBJECTIVES LO 2-1 Describe the differences between strategy formulation and strategy implementation. LO 2-2 List the components of the strategic management process. LO 2-3 Describe the linkages between HRM and strategy formulation. LO 2-4 Discuss the more popular typologies of generic strategies and the various HRM practices associated with each. LO 2-5 Describe the different HRM issues and practices associated with various directional strategies. TWO PHASES OF STRATEGIC MANAGEMENT Strategy Formulation  Strategic planning groups decide on strategy Strategy Implementation  Organization follows through on the strategy STRATEGY IMPLEMENTATION VARIABLES STRATEGY IMPLEMENTATION VARIABLES Three main implementation variables STRATEGY IMPLEMENTATION  PAY STRUCTURE, INCENTIVES, & BENEFITS Pay has an important role in strategies. High pay and/or benefits relative to competitors can help company attract and retain high-quality employees, but might have a negative impact on overall labor costs. Tying pay to performance can elicit specific activities and levels of performance from employees.  LABOR AND EMPLOYEE RELATIONS  Companies can choose to treat employees as an asset or as an expense.  HRM must make choices about how much employees participation in decision making, what rights employees have, and what company’s responsibility is to them.  The approach a company takes in making these decisions can result in it either successfully achieving its short and long-term goals or ceasing to exist.  LABOR AND EMPLOYEE RELATIONS  Companies can choose to treat employees as an asset or as an expense.  HRM must make choices about how much employees participation in decision making, what rights employees have, and what company’s responsibility is to them.  The approach a company takes in making these decisions can result in it either successfully achieving its short and long-term goals or ceasing to exist.  EVIDENCE-BASED HR A study of HRM among steel minimills in the United States found that mills pursuing different strategies used different systems of HRM. Mills seeking cost leadership tended to use control-oriented HRM systems that were characterized by high centralization, low participation, low training, low wages, low benefits, and highly contingent pay, whereas differentiator mills used commitment HRM systems, characterized as the opposite on each of those dimensions. A later study from the same sample revealed that the mills with the commitment systems had higher productivity, lower scrap rates, and lower employee turnover than those with the control systems. STRATEGY IMPLEMENTATION PORTER’S STRATEGIES Cost Differentiation PORTER’S STRATEGIES  LEARNING OBJECTIVES LO 2-1 Describe the differences between strategy formulation and strategy implementation. LO 2-2 List the components of the strategic management process. LO 2-3 Describe the linkages between HRM and strategy formulation. LO 2-4 Discuss the more popular typologies of generic strategies and the various HRM practices associated with each. LO 2-5 Describe the different HRM issues and practices associated with various directional strategies. FIVE CATEGORIES OF DIRECTIONAL STRATEGIES FIVE CATEGORIES OF DIRECTIONAL STRATEGIES FIVE CATEGORIES OF DIRECTIONAL STRATEGIES FIVE CATEGORIES OF DIRECTIONAL STRATEGIES FIVE CATEGORIES OF DIRECTIONAL STRATEGIES HR’S ROLE – STRATEGIC COMPETITIVE ADVANTAGE Strategic Competitive Advantage Emergent Strategies: Strategic analysis, strategy development and strategy implementation are interrelated and developed together with emphasize on continuous review and prioritizing of investment HR’S ROLE – STRATEGIC COMPETITIVE ADVANTAGE Strategic Competitive Advantage Enhancing Competitiveness  SUMMARY ▪ HR – most important asset and single largest most controllable cost within the business model. ▪ HR professionals must develop business, professional-technical, change management and integration competencies. ▪ HRM has a profound impact on strategic plan implementation by developing and aligning HRM practices that ensure the company has motivated employees with necessary skills.  Envision optimistically, plan critically, and execute optimistically again.  Chapter 3 The Legal Environment Equal Employment Opportunity and Safety  IMPORTANT KOREAN LABOR LAW IN 2023 ✓ Severance pay (퇴직금): If you receive work instructions from the employer, you can receive severance pay regardless of a contract; only when you work more than 15 hours a week & more than 1 year; the amount is based on your average wage ✓ Minimum wage (최저임금): 9,620 won applied to all regardless of working hours and the size of business; 2,010,580 won for 40 hours per week (including paid weekly holidays, based on 209 hours per month); the employer must give the paycheck statement every month to avoid a fine  IMPORTANT KOREAN LABOR LAW IN 2023 ✓ Paid weekly holidays(주휴수당): Must be paid regardless of the size of the workplace; limited to workers who work 15 hours a week ✓ Overtime (초과근무): Applied to a business with 5 or more employees; more than 40 hours a week or nighttime work (9:00 p.m. to 6:00 a.m.) or work on statutory holidays; 1.5 times the hourly wage; in the case of a monthly wage system, 1.5 times the normal wage per day calculated based on the number of working hours and days worked  IMPORTANT KOREAN LABOR LAW IN 2023 ✓ Annual leave (연차휴가): Applied to a business with 5 or more employees; the attendance rate must be 80% or higher, and in the first year of employment, one day per month of attendance, so 11 days of annual leave in the first year; from the 2nd year onwards, it is 15 days, increasing by one day every 2 years to a maximum of 25 days; if not used, it will be paid as an allowance; within 1 year, you can use annual leave or receive an allowance ✓ Holidays (공휴일): Businesses with 5 or more employees; legal holidays and substitute holidays should be secured  IMPORTANT KOREAN LABOR LAW IN 2023 ✓ Industrial accident compensation insurance (산재보험): Accidents occurring while commuting to and from work are also covered by industrial accident compensation insurance; employers automatically sign up for membership, so workers can apply directly to the Korea Worker's Compensation & Welfare Service (근로복지공단) ✓ Mandatory law (강행법): Workers and employers cannot arbitrarily change it regardless of their consent  DO A QUICK RESEARCH AND TALK IN CLASS What is the common practice of severance pay in your country? What is your country’s minimum wage? What is the common practice of vacation/paid leave in your country? What about overtime? Any extra compensation?  SEXUAL HARASSMENT Quid Pro Quo Harassment Hostile Working Environment when some type of benefit or occurs when someone’s behavior punishment is made contingent in the workplace creates an upon the employee submitting to environment that makes it sexual advances. difficult for someone of a The Bundy v. Jackson case particular sex to work. (1981) facts showed that the plaintiff repeatedly received sexual propositions from her fellow employees and supervisor. She rejected these advances and was eventually passed over for promotion without reason. FOUR STEPS TO ENSURE A WORKPLACE FREE OF SEXUAL HARASSMENT 1. Policy Statement 2. Training 3. Reporting mechanism 4. Prompt disciplinary action  SAFETY AWARENESS PROGRAMS Safety awareness programs attempt to instill symbolic and substantive changes to a safety program. 3 components of safety awareness program ▪Identify and communicate job hazards ▪Reinforces safe practices ▪Promote safety internationally  SAFETY AWARENESS PROGRAMS Safety awareness programs attempt to instill symbolic and substantive changes to a safety program. 3 components of safety awareness program ▪Identify and communicate job hazards ▪Reinforces safe practices ▪Promote safety internationally  SUMMARY One of HRM’s major challenges is the legal constraints imposed by the government. HR and line managers need to understand legal requirements and prohibitions to manage in ways that are financially and ethically sound, and in so doing create a competitive advantage.