Chapter 12 Human Resource Management Strategic Human Resource

Chapter 12 Human Resource Management

Strategic Human Resource Management n. 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. MGMT 321 – Chapter 12

Strategic Human Resource Management n Designing the components of a HRM system to be consistent with: – Each other – Other elements of organizational architecture – The organization’s strategy and goals n “Six Sigma” – Ensure that products and services are as free of errors or defects as possible through a variety of human resource-related initiatives MGMT 321 – Chapter 12

Components of a Human Resource Management System MGMT 321 – Chapter 12

The Legal Environment of HRM n 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. MGMT 321 – Chapter 12

The Legal Environment of HRM n Contemporary challenges for managers – How to eliminate sexual harassment – How to make accommodations for employees with disabilities – How to deal with employees who have substance abuse problems – How to manage HIV-positive employees and employees with AIDs MGMT 321 – Chapter 12

The Recruitment and Selection System MGMT 321 – Chapter 12

Human Resource Planning n Human Resource Planning (HRP) – Forecasting current and future human resourced needs. n Demand forecasts n Supply forecasts n Outsourcing – Loss of control over output – Unions are against outsourcing MGMT 321 – Chapter 12

Job Analysis n Job Analysis – Identifying the TDRs that make up a job and the KSAs needed to perform the job. – Should be done for each job n Methods – Observing what current workers do. – Having workers and manages fill out questionnaires MGMT 321 – Chapter 12

Recruitment n External Recruiting – Looking outside the organization to fill open positions n Internal Recruiting – Managers turn to existing employees to fill open positions n Realistic Job Preview – Providing an honest assessment of the advantages and disadvantages of a job MGMT 321 – Chapter 12

Selection Tools MGMT 321 – Chapter 12

Reliability and Validity n Selection tools must be BOTH reliable and valid n Reliability – The degree to which the tool measures the same thing each time it is used n Validity – The degree to which the test measures what it is supposed to measure MGMT 321 – Chapter 12

Training and Development n Training – Teaching organizational members how to perform their current jobs – Helping them to acquire the knowledge and skills they need to be effective performers n Development – Building the KSAs of organizational members to enable them to take on new responsibilities MGMT 321 – Chapter 12

Training and Development MGMT 321 – Chapter 12

Performance Appraisal and Feedback n Performance Appraisal – Evaluating employees’ job performance and contributions to the organization n Performance Feedback – Sharing performance appraisal information with subordinates and planning for the future MGMT 321 – Chapter 12

Types of Performance Appraisal n Trait – Personal characteristics that are relevant to job performance n Behavior – The actual actions and behaviors exhibited on the job. n Results appraisals – Actual outcomes of work behaviors n Objective and Subjective appraisals MGMT 321 – Chapter 12

Who Appraises Performance? MGMT 321 – Chapter 12

Effective Feedback Tips n n n n Be specific Focus on correctable behaviors or outcomes Utilize a problem solving approach Express confidence in a subordinate’s ability to improve. Provide feedback both formally and informally Praise instances of high performance Avoid personal criticisms Agree to a timetable for improvements MGMT 321 – Chapter 12

Pay n Includes employees’ base salaries, pay raises, and bonuses n Determined by: – Characteristics of the organization and the job – Levels of performance n Pay level – The relative position of an organization’s incentives compared to similar firms MGMT 321 – Chapter 12

Pay n Pay Structure CEO – The arrangement of jobs into categories based on their relative importance to the organization and its goals, level of skills, and other characteristics. VP VP Director MGMT 321 – Chapter 12 VP Dept Manager

Benefits n Legally required – Social security – Workers’ compensation n Voluntary – Health insurance – Retirement n Cafeteria-style benefits plans – Allow employees to choose the best mix – Can be hard to manage MGMT 321 – Chapter 12

Labor Relations Ensuring effective working relationships with the labor unions that represent their employees n Laws regulating areas of employment n – Fair Labor Standards Act (1938) prohibits child labor, sets a minimum wage and maximum working hours. – Equal Pay Act (1963) – Work Place Safety (1970) OSHA mandates procedures for safe working conditions MGMT 321 – Chapter 12

Unions Represent workers’ interests to management n The power that management has over individuals creates the need for unions n Collective bargaining n – Negotiation between labor and management to resolve conflicts and disputes regarding: • Working hours and conditions • Wages and benefits • Job security MGMT 321 – Chapter 12