Chapter 12 Human Resource Management

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

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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

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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

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EXAMPLES OF HIGH-PERFORMANCE WORK PRACTICES

(Exhibit 12.1)

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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

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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


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

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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

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JOB ANALYSIS PROCESS

Employeediaries

Job ‘experts’ identify major

job characteristics

JobAnalysis

Direct observationof the worker

Structuredquestionnaire

Filming workerson the job

Interviewingemployeesin groups

Interviewingemployees

individually

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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

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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

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MAJOR SOURCES OF POTENTIAL JOB CANDIDATES (Exhibit 12.4)

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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

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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

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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

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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.


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

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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

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QUALITY OF SELECTION DEVICES AS PREDICTORS (Exhibit 12.10)

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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

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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

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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

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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

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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

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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

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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


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

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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

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SOME SUGGESTIONS FOR A SUCCESSFUL MANAGEMENT

CAREER (Exhibit 12.14)

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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

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(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

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(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

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Business

Chapter 12 Human Resource Management