Chapter Twelve Human Resource Management Mc GrawHillIrwin Copyright

Chapter Twelve Human Resource Management Mc. Graw-Hill/Irwin Copyright © 2009 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Strategic Human Resource Management ØHuman 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. § MNGT 341, MNGT 408, MNGT 441 12 -2

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Strategic Human Resource Management Ø Strategic Human Resource Management ≈ The process by which managers design the components of a HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals. 12 -8

Components of a Human Resource Management System Figure 12. 1 12 -9

“We think of work as fun, and by that we mean thoroughly engaging, challenging, rewarding, and enjoyable. ” 12 -10

The Legal Environment of HRM Ø 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. 12 -11

The Legal Environment of HRM Ø National Labor Relations Act (1935) ≈ Right to unionize, bargain, and strike Ø Fair Labor Standards Act (1938) ≈ Minimum wage, overtime Ø Equal Pay Act of 1963 Ø Civil Rights Act of 1964 ≈ Disparate treatment and adverse impact (note recent S. Ct. decision involving New Haven, CT firefighters) Ø Ø Ø Age Discrimination in Employment Act Occupational Safety and Health Act (1970) Pregnancy Discrimination Act Americans with Disabilities Act Family and Medical Leave Act 12 -12

The Legal Environment of HRM Ø 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 12 -13

Recruitment and Selection Ø Recruitment ≈ Activities that managers engage in to develop a pool of candidates for open positions. Ø Selection ≈ The process that managers use to determine the relative qualifications of job applicants and their potential for performing well in a particular job. 12 -14

Human Resource Planning Ø Human Resource Planning (HRP) ≈ Activities that managers engage in to forecast their current and future needs for human resources. § Demand, supply forecast 12 -15

Human Resource Planning Ø Outsourcing ≈ Using outside suppliers and manufacturers to produce goods and services ≈ Using contract workers rather than hiring them. § More flexible for the firm. § Provides human capital at a lower cost. 12 -16

Job Analysis Ø Job Analysis ≈ Identifying the tasks, duties and responsibilities that make up a job and the knowledge, skills, and abilities needed to perform the job. 12 -17

Recruitment Ø External Recruiting ≈ Looking outside the organization for people who have not worked at the firm previously. § Newspapers advertisements, open houses, oncampus recruiting, employee referrals, and through the Internet. • Note Career. Fest presentation 12 -18

Recruitment Ø Internal Recruiting ≈ Managers turn to existing employees to fill open positions ≈ Benefits of internal recruiting: § Internal applicants are already familiar with the organization § Managers already know candidates § Can help boost levels of employee motivation and morale 12 -19

Honesty in Hiring Ø Realistic Job Preview ≈ Providing an honest assessment of the advantages and disadvantages of a job and organization. § Can reduce the number of new hires who quit when their jobs and organizations fail to meet their unrealistic expectations 12 -20

The Selection Process Ø Selection process ≈ Managers find out whether each applicant is qualified for the position and likely to be a good performer 12 -21

Selection Tools Figure 12. 3 12 -22

Interviews and Tests Ø Clarification (pp. 436 -37) ≈ Mngrs should not ask questions that are irrelevant to job in question (may expose Co to legal liability and may be invalid) § However, employment in U. S. is “at will” • Er decisions can be based on good reasons, bad reasons, or no reasons whatsoever provided they are not based on reasons made illegal by statute (race, gender, religion, etc. ) § While gender discrimination is illegal under Civil Rights Act, questions about spouse’s background or family plans don’t necessarily involve gender discrimination • Note state law may go beyond federal law (E. g. , in IN Er cannot discriminate on basis of smoking, Er in MI can do so) ≈ Use of invalid paper-and-pencil test is not grounds for lawsuit, but if test results in adverse impact then it must be shown to be valid 12 -23

Reliability and Validity Ø Reliability ≈ the degree to which the tool measures the same thing each time it is used (consistency) Ø Validity ≈ the degree to which the test measures what it is supposed to measure (accuracy) § Note that no test predicts perfectly, so objective should be to use tests with greatest validity (so as to maximize correct predictions) 12 -24

Training and Development Ø Training ≈ Teaching organizational members how to perform current jobs and helping them to acquire the knowledge and skills they need to be effective performers. Ø Development ≈ Building the knowledge and skills of organizational members to enable them to take on new responsibilities and challenges. 12 -25

Training and Development Ø Needs Assessment ≈ An assessment of which employees need training or development and what type of skills or knowledge they need to acquire. 12 -26

Training and Development Figure 12. 4 12 -27

Performance Appraisal and Feedback Ø Performance Appraisal ≈ The evaluation of employees’ job performance and contributions to their organization. ≈ Traits, behaviors, results ≈ Clarification re: lawsuit against Ford concerning forced distribution (p. 444) – issue wasn’t simply that system was unfair, but that it was used in discriminatory fashion (i. e. , age discrimination) § Ford discontinued system • Hard to validate system based on subjective appraisals 12 -28

Subjective Measures of Performance: Graphic and Behaviorally Anchored Rating Scales Figure 12. 5 12 -29

Subjective Measures of Performance: Behavioral Observation Scale Figure 12. 5 12 -30

Who Appraises Performance? Figure 12. 6 12 -31

Effective Feedback Tips Ø Be specific and focus on behaviors or outcomes that are correctable and within a worker’s ability to improve. Ø Approach performance appraisal as an exercise in problem solving and solution finding, not criticizing. Ø Express confidence in a subordinate’s ability to improve. Ø Provide performance feedback both formally and informally. 12 -32

Pay and Benefits Ø Pay ≈ Includes employees’ base salaries, pay raises, and bonuses ≈ Determined by characteristics of the organization and the job and levels of performance ≈ Benefits are based on membership in an organization (although vacation days often linked to seniority) 12 -33

Pay and Benefits Ø Pay level ≈ The relative position of an organization’s incentives in comparison with those of other firms in the same industry employing similar kinds of workers 12 -34

Pay and Benefits Ø 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. § Pay grades and pay ranges 12 -35

Pay and Benefits Ø Benefits ≈ Legally required: social security, workers’ compensation, unemployment insurance (and FMLA leave) ≈ Voluntary (discretionary): health insurance, pension plans, vacations and holidays, etc. ≈ Cafeteria-style benefit plans allow employees to choose the best mix of benefits for them; can be hard to manage. 12 -36

Labor Relations Ø Labor Relations ≈ The activities managers engage in to ensure they have effective working relationships with the labor unions that represent their employees’ interests. 12 -37

Unions Ø Unions ≈ Represent worker’s interests to management in organizations. ≈ The power that a manager has over an individual worker causes workers to join together in unions to try to restrict this. ≈ Correction (p. 451): several unions (constituting ~1/3 of membership) withdrew from AFL-CIO in 2005 to form the Change-to. Win coalition 12 -38

Unions Ø Collective bargaining ≈ Negotiation between labor and management to resolve conflicts and disputes about issues such as working hours, wages, benefits, working conditions, and job security. 12 -39