Part III Organizing Chapter 7 Human Resource Management

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Part III OrganizingChapter 7 Human
Resource Management
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Learning Objectives

• After studying the chapter, you should be able
  to
• 1.Explain why strategic human resource
• management can help an organization
• gain a competitive advantage.
• 2.Describe the steps managers take to recruit
• and select organizational members.
• 3.Discuss the training and development options
• that ensure organization members can
• effectively perform their jobs.

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Learning Objectives (contd)

• 4.Explain why performance appraisal and
• feedback is such a crucial activity, and list
• the choices managers must make in
• designing effective performance appraisal
• and feedback procedures.
• 5.Explain the issues managers face in
• determining in determining levels of pay
• and benefits

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Chapter Outline
I. Strategic Human Resource Management????????
II. Recruitment and Selection ?????
III. Training and Development ?????
Human Resource Management
IV. Performance Appraisal and Feedback ???????

• Pay and Benefits
• ?????

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Chapter Outline

• I. Strategic Human Resource Management
• An Overview of the Components of HRM
• The Legal Environment
• II. Recruitment and Selection
• Human Resource Planning
• Job Analysis
• External and Internal Recruitment
• The Selection Process

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Chapter Outline (contd)

• III. Training and Development
• Types of Training
• Types of Development
• Transfer of Training and Development
• IV. Performance Appraisal and Feedback
• Types of Performance Appraisal
• Who Appraises Performance
• Effective Performance Feedback

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Chapter Outline (contd)

• V. Pay and Benefits
• Pay Level
• Pay Structure
• Benefits

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I. Strategic Human Resource Management

• 1. Human Resource Management (HRM)
• Activities that managers engage in to attract and
  retain employees and to ensure that they perform
  at a high level and contribute to the
  accomplishment of organizational goals.
• HRM activities
• Recruitment and selection
• Training and development
• Performance appraisal and feedback
• Pay and benefits
• Labor relations

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I. Strategic Human Resource Management

• 2. Strategic Human Resource Management
• The process by which managers design the
  components of a human resource system to be
  consistent with each other, with other elements
  of organizational structure, and with the
  organizations strategy and goals.
• The objective of strategic HRM is the development
  of an HRM system that enhances the organizations
  efficiency, quality, innovation, and
  responsiveness to customers.

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Figure 7.1Components of a Human Resource
Management System
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3. Overview of the Components of HRM

• 3.1 Recruitment and Selection ?????
• Developing a pool of qualified applicants.
• Determining relative qualifications of applicants
  and their potential for a job.
• 3.2 Training and Development ?????
• Developing, on an ongoing basis, employees
  abilities and skills as necessitated by changes
  in technology and the competitive environment.

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3. Overview of the Components of HRM

• 3.3 Performance Appraisal and Feedback
• ???????
• Providing information about how to train,
  motivate, and reward workers such that managers
  can evaluate and then give feedback to enhance
  worker performance.
• 3.4 Pay and Benefits ?????
• Rewarding high performing employees with raises,
  bonuses and recognition.
• Increased pay provides additional incentive.
• Benefits, such as health insurance, reward
  membership in firm.

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3. Overview of the Components of HRM

• 3.5 Labor relations ????
• Maintaining an effective relationship with labor
  unions that represent workers.
• Unions seek to participate, through collective
  bargaining, in the determination of pay rates and
  the setting of working conditions.

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The Legal Environment of HRM

• Equal Employment Opportunity (EEO)
• ??????
• The equal right of all citizens to the
  opportunity to obtain employment regardless of
  their gender, age, race, country of origin,
  religion, or disabilities.
• Equal Employment Opportunity Commission (EEOC)
  enforces employment laws.
• Management of diversity is crucial
• Managers must take steps to ensure discrimination
  does not occur.

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II. Recruitment and Selection ?????

• Recruitment ??
• Activities that managers engage in to develop a
  pool of candidates for open positions.
• Selection ??
• The process that managers use to determine the
  relative qualifications of job applicants and
  their potential for performing well in a
  particular job.

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1. Human Resource Planning ??????

• Human Resource Planning (HRP)
• Activities that managers engage in to forecast
  their current and future needs for human
  resources.
• HRP must be done prior to recruitment and
  selection
• Demand forecasts
• Estimates of the number and qualifications of
  employees the firm will need.
• Supply forecasts
• Estimates of the availability and qualifications
  of current workers and those in the labor market.

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Figure 7.2 The Recruitment and Selection System
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? 7.2 ???????
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2. Job Analysis ????

• 2.1 Job analysis
• Identifying the the tasks, duties and
  responsibilities that make up a job and the
  knowledge, skills, and abilities needed to
  perform the job.
• A job analysis should be done for each job in the
  organization.
• Job analysis methods
• Observing what current workers do.
• Having workers and manages fill out
  questionnaires.
• Current trend is toward flexible jobs where tasks
  and duties are not easily defined in advance.

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2.2 Recruitment ??

• External Recruiting ????
• Seeking outside the firm for people who have not
  worked at the firm previously.
• Newspapers advertisements, open houses, on-campus
  recruiting, employee referrals, and through the
  Internet.
• External recruitment is difficult since many new
  jobs have specific skill needs.
• A multi-prong approach to external recruiting
  works best.

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2.2 Recruitment

• Internal Recruiting ????
• Seeking to fill open positions with current
  employees from within the firm.
• Benefits of internal recruiting
• Job candidates, their qualifications, and
  availability are already known.
• Current employees know the firms culture and are
  familiar with the organization.
• Internal advancement (promotion from within) can
  serve to motivate employees.

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Figure 7.3 Selection Tools
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?7.3 ????
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4. The Selection Process ????

• 4.1 Determining an applicants qualifications
• related to the job requirements
• Background information ????
• Education, prior employment, and college major
• Interviews ??
• Structured interviews where managers ask each
  applicant the same job-related questions.
• Unstructured interviews that resemble normal
  conversations.
• Usually structured interviews preferred bias is
  possible in unstructured interviews.

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4. The Selection Process

• Physical ability tests ????
• Measures of dexterity, strength, and stamina for
  physically demanding jobs
• Measures must be job related to avoid
  discrimination.
• Paper-and-Pencil Tests ??
• Ability tests assess if applicants have the right
  skills for the job.
• Personality tests seek to determine if applicants
  possess traits relevant to job performance.

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4. The Selection Process

• Performance Tests ??????
• Tests that measure an applicants current ability
  to perform the job or part of the job such as
  requiring an applicant to take typing speed test.
• Assessment centers are facilities where
  managerial candidates are assessed on job-related
  activities over a period of a few days.
• References ???
• Obtaining relevant information can be difficult
  to due to legal liability and privacy issues

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4.2 Reliability and Validity ?????

• Selection tools must be reliable and valid.
• Reliability is the degree to which the tool
  measures the same thing each time it is used.
• Example scores should be similar for the same
  person taking the same test over time.
• Validity is the degree to which the test measures
  what it is supposed to measure
• Example how well a physical ability test
  predicts the job performance of a firefighter.
• Managers have both an ethical obligation and a
  legal duty to develop good selection tools.

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III. Training and Development ?????

• Training ??
• Teaching organizational members how to perform
  current jobs and helping them to acquire the
  knowledge and skills they need to be effective
  performers.
• Development ??
• Building the knowledge and skills of
  organizational members to enable them to take on
  new duties and challenges.
• Training is used more often at lower levels of
  firm development is common with managers.

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Figure 7.4 Training and Development Needs
Assessment

• Needs Assessment An assessment of which
  employees need training or development and what
  type of skills or knowledge they need to acquire.

Source
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1. Types of Training

• 1.1 Classroom Instruction
• Employees acquire skills in a classroom setting.
• Includes use of videos, role-playing, and
  simulations.
• 1.2 On-the-Job Training
• Employee learning occurs in the work setting as
  new worker does the job.
• Training is given by co-workers and can be done
  continuously to update the skills of current
  employees.

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2. Types of Development

• 2.1 Varied Work Experiences
• Top managers have need to and must build
  expertise in many areas.
• Employees identified as possible top managers are
  assigned different tasks and a variety of
  positions in an organization.
• 2.2 Formal Education
• Tuition reimbursement is common for managers
  taking classes for MBA or job-related degrees.
• Long-distance learning can also be used to reduce
  travel and other expenses for managerial training.

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IV. Performance Appraisal and Feedback
???????

• Performance Appraisal ????
• The evaluation of employees job performance and
  contributions to their organization.
• Performance Feedback ????
• The process through which managers share
  performance appraisal information, give
  subordinates and opportunity to reflect on their
  own performance, and develop, with subordinates,
  plans for the future.

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Types Performance Appraisal and Feedback

• 1.1 Trait Appraisals ????
• Assessing subordinates on personal
  characteristics that are relevant to job
  performance.
• Disadvantages of trait appraisals
• Employees with a particular trait may choose not
  to use that particular trait on the job.
• Traits and performance are not always obviously
  linked
• It is difficult to give feedback on traits.

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1. Types Performance Appraisal and Feedback

• 1.2 Behavior Appraisals ????
• Assesses how workers perform their jobsthe
  actual actions and behaviors that exhibit on the
  job.
• Focuses on what a worker does right and wrong and
  provides good feedback for employees to change
  their behaviors.
• 1.3 Results Appraisals ????
• Assesses what a worker accomplishes or the
  results they obtain from performing their jobs.

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1. Types Performance Appraisal and Feedback

• 1.4 Objective Appraisals ????
• Assesses performance based on facts (e.g., sales
  figures).
• 1.5 Subjective Appraisals ????
• Assessments based on a managers perceptions of
  traits, behavior, or results.
• Graphic rating scales
• Behaviorally anchored rating scales (BARS)
• Behavior observation scales (BOS)
• Forced ranking systems

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2. Who Appraises Performance? ??????
Figure 7.5 Who Appraises Performance?
Figure 11.6
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2. Who Appraises Performance?

• 2.1 Self
• Self appraisals can supplement manager view.
• 2.2 Peer appraisal
• Coworkers provide appraisal common in team
  settings.
• 2.3 360 Degree
• A performance appraisal by peers, subordinates,
  superiors, and clients who are in a position to
  evaluate a managers performance

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3. Effective Performance Feedback

• Formal appraisals
• An appraisal conducted at a set time during the
  year and based on performance dimensions that
  were specified in advance
• Informal appraisals
• An unscheduled appraisal of ongoing progress and
  areas for improvement

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3.1 Effective Feedback Tips ???????

• - Be specific and focus on correctable
  behavior. Provide a suggested improvement.
• - Focus on problem-solving and improvement, not
  criticism.
• - Express confidence in workers ability to
  improve.
• - Use both formal and informal feedback.
• - Treat subordinates with respect and praise
  achievements.
• - Set a timetable for agreed changes.

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V. Pay and Benefits ?????

• 1. Pay level ????
• The relative position of an organizations
  incentives in comparison with those of other
  firms in the same industry employing similar
  kinds of workers.
• Managers can decide to offer low, average or high
  relative wages.
• High wages attract and retain high performers but
  raise costs low wages can cause turnover and
  lack of motivation but provide lower costs.

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V. Pay and Benefits

• 2. Pay Structure ????
• The arrangement of jobs into categories based on
  their relative importance to the organization and
  its goals, level of skills, and other
  characteristics.
• 3. Benefits ??
• Legally required social security, workers
  compensation
• Voluntary health insurance, retirement, day care
• Cafeteria-style benefits plans allow employees to
  choose the best mix of benefits for them can be
  hard to manage.