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Chapter 12HUMAN
RESOURCEMANAGEMENT
© 2003 Pearson Education Canada Inc. 12.112.1
© 2003 Pearson Education Canada Inc.
LEARNING OBJECTIVES• You should be able to:
– Explain the strategic importance of human resource management
– Describe the human resource management process
– Differentiate between job descriptions and job specifications
– Contrast recruitment and decruitment options– Describe the selection devices that work best
with various kinds of jobs
12.212.2
© 2003 Pearson Education Canada Inc.
LEARNING OBJECTIVES (continued)
• You should be able to:
– Identify the various training categories– Explain the various approaches to performance
appraisal– Describe what an organization’s compensation
system should include– Discuss the current issues affecting human
resource management
12.312.3
© 2003 Pearson Education Canada Inc.
WHY HUMAN RESOURCE MANAGEMENT IS IMPORTANT• All Managers Engage in Human Resource Management
Activities– interview job candidates– orient new employees– evaluate work performance
• Achieving competitive success through people requires a fundamental change in how manages think about employees
• High performance work practices--work practices that lead to both high individual and high organizational performance
12.412.4
© 2003 Pearson Education Canada Inc.
EXAMPLES OF HIGH-PERFORMANCE WORK PRACTICES
(Exhibit 12.1)
12.512.5
© 2003 Pearson Education Canada Inc.
HUMAN RESOURCE MANAGEMENT PROCESS
• Necessary for staffing the organization and sustaining high employee performance
– Identify and select competent employees– Provide up-to-date knowledge and skills– Retain competent, high performing employees
• Influenced by the external environment– Labour union - represents workers and protects their
interests through collective bargaining– Government regulations to assure equal employment
opportunities
12.612.6
© 2003 Pearson Education Canada Inc.
HUMAN RESOURCE MANAGEMENT PROCESS (Exhibit 12.2)
Compensationand
Benefits
CareerDevelopment
PerformanceManagement
HumanResourcePlanning
Recruitment
Decruitment
SelectionIdentification and selection
of competent employees
Orientation TrainingAdapted and competent
employees with up-to-dateskills and knowledge
Competent employees whoare capable of sustaining high
performance over the long term
Environment
Environment12.712.7
© 2003 Pearson Education Canada Inc.
HUMAN RESOURCE PLANNING
• Ensures:– That organization has the right number
and kind of people in the right places and at the right time
– Employees are capable of effectively and efficiently performing their assigned tasks
12.812.8
© 2003 Pearson Education Canada Inc.
HUMAN RESOURCE PLANNING (continued)
• Current Assessment– Job analysis - defines jobs and the behaviors
necessary to perform them– Job description - statement of what job holder
does, how it is done, and why it is done– Job specification - statement of the minimum
qualifications that a person must possess to perform a given job
12.912.9
© 2003 Pearson Education Canada Inc.
JOB ANALYSIS PROCESS
Employeediaries
Job ‘experts’ identify major
job characteristics
JobAnalysis
Direct observationof the worker
Structuredquestionnaire
Filming workerson the job
Interviewingemployeesin groups
Interviewingemployees
individually
12.1012.10
© 2003 Pearson Education Canada Inc.
HUMAN RESOURCE PLANNING (continued)
• Meeting Future Human Resource Needs– Determined by the organization’s goals and
strategies– Demand for employees is a result of demand
for the organization’s products and services– Comparison of current HR capabilities and
future needs determines areas of overstaffing or understaffing
12.1112.11
© 2003 Pearson Education Canada Inc.
RECRUITMENT AND DECRUITMENT
• Recruitment– Process of locating, identifying, and attracting
capable applicants– Choice of recruiting source determined by:
• local labour market• type or level of position• size of the organization
– Employee referrals typically produce the best applicants
12.1212.12
© 2003 Pearson Education Canada Inc.
MAJOR SOURCES OF POTENTIAL JOB CANDIDATES (Exhibit 12.4)
12.1312.13
© 2003 Pearson Education Canada Inc.
RECRUITMENT AND DECRUITMENT (continued)
• Decruitment– Process of reducing the size of the
organization’s workforce or restructuring its skill base
– Used to meet the demands of a dynamic environment
12.1412.14
© 2003 Pearson Education Canada Inc.
DECRUITMENT OPTIONS (Exhibit 12.5)
OPTION DESCRIPTION
FiringLayoffsAttritionTransfersReduced workweeksEarly retirements
Job sharing
Permanent involuntary terminationTemporary involuntary terminationNot filling openingsMoving employees to job openingsWorking fewer hours per weekProviding incentives for people to retire before normal retirementHaving employees share one full- time job
12.1512.15
© 2003 Pearson Education Canada Inc.
SELECTION• Selection Process
– Screening job applicants to ensure that the most appropriate candidates are hired
– Prediction exercise to determine which applicants will be successful if hired
– Selection decisions may be correct or incorrect
12.1612.16
CorrectDecision
AcceptError
CorrectDecision
RejectError
SELECTION DECISION OUTCOMES (Exhibit 12.6)
Accept Reject
Selection DecisionL
ater
Job
Per
form
ance
Un
succ
essf
ul
Su
cces
sfu
l
12.1712.17© 2003 Pearson Education Canada Inc.
© 2003 Pearson Education Canada Inc.
SELECTION (continued)
• Validity– Degree to which there is a proven relationship between the
selection device and some relevant criterion– Law prohibits the use of selection devices unless there is
evidence that, once on the job, individuals with high test scores outperform those with low test scores
– Organization has burden to provide evidence of validity
• Reliability– Degree to which a selection device provides consistent
measures– No selection device can be effective if it has low reliability
12.1812.18
© 2003 Pearson Education Canada Inc.
SUGGESTIONS FOR INTERVIEWING (Exhibit 12.8)
1. Structure a fixed set of questions for all applicants
2. Have detailed information about the job 3. Minimize any prior knowledge about the applicant
4. Ask questions that require detailed answers about actual job behaviors
5. Use a standardized evaluation form
6. Take notes during he interview
7. Avoid short interviews that encourage premature decision making
12.1912.19
© 2003 Pearson Education Canada Inc.
QUALITY OF SELECTION DEVICES AS PREDICTORS (Exhibit 12.10)
12.2012.20
© 2003 Pearson Education Canada Inc.
ORIENTATION• Work Unit Orientation
– Familiarizes new employee with goals of the work unit
• Organization orientation– Informs new employee about the organization’s
objectives, history, procedure, and rules• Successful orientation
– May be formal or informal– Makes new member feel comfortable, lowers
likelihood of poor performance and resignations
12.2112.21
© 2003 Pearson Education Canada Inc.
TRAINING• Skill Categories
– As jobs change, employee skills have to be updated
– Technical skills - basic and job-specific competencies
– Interpersonal skills - ability to interact effectively
– Problem-solving skills - useful in non-routine jobs
12.2212.22
© 2003 Pearson Education Canada Inc.
PERFORMANCE• Performance Management System
– Process of establishing standards and appraising employee performance
• Performance Appraisal Methods– Each method has advantages and disadvantages– Written essay - written description of
employee’s strengths and weaknesses– Critical incidents - focus is behaviour that
defines effective and ineffective performance
12.2312.23
© 2003 Pearson Education Canada Inc.
PERFORMANCE (continued)
• Performance Appraisal Methods (continued)– Graphic rating scale - list of performance
factors– Behaviourally anchored rating scale (BARS) -
critical incident and graphic rating scale approaches combined
– Multiple comparisons - compares one person’s performance with that of one or more others
12.2412.24
© 2003 Pearson Education Canada Inc.
PERFORMANCE (continued)
• Performance Appraisal Methods (continued)
– Objectives - employees evaluated by how well they accomplish a specific set of goals
– Management By Objectives (MBO) - preferred method of appraising managers and professional employees
– 360 degree feedback - utilizes feedback from supervisors, employees, and coworkers
12.2512.25
© 2003 Pearson Education Canada Inc.
COMPENSATION (WAGES AND BENEFITS)
• Goals of Compensation Programs– Attract and retain competent and talented individuals– Positively impact organization’s strategic performance
• Skill-based pay– Rewards employees for their job skills and competencies– Job title doesn’t define pay category– Mesh nicely with the changing nature of jobs
• Trends in compensation – Make pay systems more flexible– Reduce the number of pay levels
12.2612.26
FACTORS THAT INFLUENCE COMPENSATION/BENEFITS
(Exhibit 12.13)
Unionization
Level ofCompensation
and Benefits
Employee’stenure and
performance Kind of jobperformed
Size ofcompany
Managementphilosophy
Kind ofbusiness
Geographicallocation
Labour orcapital-intensive
Companyprofitability
© 2003 Pearson Education Canada Inc. 12.2712.27
© 2003 Pearson Education Canada Inc.
CAREER DEVELOPMENT• Career
– Sequence of positions held by a person during her or his lifetime
• The Way It Was– Employees advanced their work lives within a
single organization– Career development was a way to attract and
retain quality employees– Uncertainty brought organizational changes
that undermine principles of traditional career development
12.2812.28
© 2003 Pearson Education Canada Inc.
CAREER DEVELOPMENT (continued)
• You and Your Career Today
– Boundaryless career - individual, not organization, responsible for career
– Career choice - optimally offers the best match between person’s aspirations and her or his abilities and market opportunities
12.2912.29
SOME SUGGESTIONS FOR A SUCCESSFUL MANAGEMENT
CAREER (Exhibit 12.14)
12.3012.30© 2003 Pearson Education Canada Inc.
© 2003 Pearson Education Canada Inc.
CURRENT ISSUES IN HUMAN RESOURCE MANAGEMENT
• Managing Workforce Diversity– Recruitment - recruiting net must be widened
• Use nontraditional recruitment sources
• Outreach will broaden applicant pool
– Selection - process must not discriminate• Must accommodate needs of diverse applicants
– Orientation and training - transition often more challenging for some groups
• Workshops to raise diversity awareness issues
12.3112.31
© 2003 Pearson Education Canada Inc.
CURRENT ISSUES IN HUMAN RESOURCE MANAGEMENT
(continued)• Sexual Harassment
– Any unwanted activity of a sexual nature that affects an individual’s employment
– Harassment creates an unpleasant work environment and undermines workers’ ability to perform their jobs
– Illegal behaviour includes verbal or physical conduct toward an individual
12.3212.32
© 2003 Pearson Education Canada Inc.
CURRENT ISSUES IN HUMAN RESOURCE MANAGEMENT
(continued)• Work-life Balance
– Employees can’t (and don’t) leave their families and personal lives when they walk into work
– Managers can’t be sympathetic with every detail of an employee’s family life
– Family-friendly benefits - provide some help in dealing with family problems
– Dual-career couples - both partners have occupations
12.3312.33
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