Human Resource Management

1
Human Resource Management

• Chapter 12

2
Strategic Human Resource Management

• Human Resource Management (HRM)
• Activities that managers engage in to attract and
  retain employees and to ensure that they perform
  at a high level and contribute to the
  accomplishment of organizational goals.
• The components of a human resource system need to
  be consistent with each other, with other
  elements of organizational structure, and with
  the organizations strategy and goals.

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The Human Resource Management Process
Determining Human Resource Needs
Human Resource Planning
Recruiting
Attracting Qualified Employees
Selection
Training
Developing Qualified Employees
Performance Appraisal
Compensation
Keeping Qualified Employees
Employee Separation
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Human Resource Planning
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Forecasting Demand and Supply
Work Force Forecasting
ForecastingMethods

• Internal forecasts
• External forecasts

• Direct managerial input
• Best guess
• Statistical / historicalratios

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Internal Forecast Factors

• Transfers
• Deaths
• Promotions
• Organizations mission
• Productivity of current employees
• Skills/education of current employees

• New positions
• New equipment and technology
• Eliminated positions
• Terminations
• Retirements
• Resignations
• Turnover

7
External Forecast Factors

• Unemployment rate
• Labor unions
• Availability of applicants
• Technological advances
• Competitors
• Growth of businesses

• Demographics of labor supply
• Geographic population shifts
• Manufacturing-to service-to information-based
  economy shift
• Economic conditions

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Human Resource Information Systems
HRIS
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Federal Employment Laws
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Federal Employment Laws (cont.)
Civil Rights Act of 1991
strengthened the Civil Rights Act of 1964
Family Medical Leave Act of 1993
permits workers to take up to 12 weeksof unpaid
leave for pregnancy, etc.
States also have employment laws that employers
need to be aware of
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Recruiting
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Job Analysis and Recruiting
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Job Analysis and Recruiting
ONethttp//online.onetcenter.org/
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Internal Recruiting

• A pool of applicants who already work for the
  company
• Promotion from within
• Improves employee morale and motivation
• Reduces employer time and cost
• Job posting is the procedure for internal
  advertising
• Career path is a planned sequence of jobs

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External Recruiting

• Advertising
• Employee referrals
• Walk-ins
• Outside organizations
• Employment services
• Special events
• Internet job sites

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Selection
Application Formsand Résumés
References andBackground Checks
Interviews
SelectionTests
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Avoid questions in these areas
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References and Background Checks

• References or background checks are not always
  provided by previous employers
• Making background checks more effective
• dig deeper for more information
• get permission in writing
• document all checks
• consider hiring private investigators

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Selection Tests
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Interviews

• Unstructured Interviews
• free-flow of questions
• Structured Interviews
• interviewer uses standard set of prepared
  questions
• Semi-structured Interviews
• some structure combined with interviewer judgement

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Good Questions to ask in Structured Interviews
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Use of Drug Testing as a Pre-Employment Test

• What are the pros and cons of using drug testing
  as a pre-employment test?
• Does drug testing violate privacy rights of the
  individual?

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Training
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Determining Training Needs
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Training Methods
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Evaluating Training
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Performance Appraisal
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Measuring Job Performance Common Rating Errors

• Central tendency
• all workers are rated as being average
• Halo error
• all workers are rated as performing at the same
  level in all parts of their jobs
• Leniency error
• all workers are rated as performing at a high
  level

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Improving Performance Appraisal Measures

• Objective performance measures
• quantifiable outcomes (output, scrap,
  sales,customer complaints, or rejection rates)
• Subjective performance measures
• trait rating scales
• behavioral observation scales (BOS)

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Rater Training

• Teach raters how to avoid errors
• Improve rating accuracy
• Video training and role playing often used

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360 degree Performance Reviews
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Performance Feedback
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Compensation
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Pay-Level Decisions

• Should workers be paid at, below, or above
  current market wage?
• above market pay makes it easier for managers to
  attract and retain employees
• Job evaluation is used to determine the worth of
  jobs
• pay the going rate

35
Pay-Variability Decisions

• Piecework
• Commission
• Profit sharing
• Employee stock ownership plans (ESOPs)
• Stock options

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Pay-Structure Decisions

• Hierarchical pay structures
• big differences in pay among pay levels
• work best for independent work
• Compressed pay structures
• fewer pay levels with smaller differences in pay
  among pay levels
• work best for interdependent work

37
Employee Benefits

• Compensation other than direct wages
• Employee benefits are legally mandated
• Social Security
• workers compensation
• unemployment insurance
• Cafeteria benefit plans
• employees can select from optional benefits

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Employee Separations
Terminations
Downsizing
Turnover
Retirements
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Terminating Employees

• Often mismanaged
• Minimize problems in firing employees
• firing should not be the first option
• firing should be for a good reason
• employment at will
• wrongful discharge
• firing should be done in private

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Downsizing

• Provide clear reasons for the layoffs.
• Get information to avoid laying off employees
  with critical skills.
• Training managers in how to tell employees.
• Give employees the bad news early in the day.
• Provide outplacement services and counseling.
• Communicate with survivors.

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Retirement
Early Retirement Incentive Programs

• Offer financial benefits to encourage employees
  to retire
• Are attractive to many employees
• Are difficult to predict which or how many
  employees will use the program
• May cause the company to lose valuable employees

42
Employee Turnover

• Loss of employees who voluntarily choose to leave
  the company
• Functional turnover (encouraged)
• the loss of poor-performing employees
• Dysfunctional turnover (discouraged)
• the loss of high performing employees