Human Resource Management

Chapter Twelve

High Performance Work Practices

Lead to both high individual and high organizational performance.

Improving the knowledge, skills, and abilities of an organization’s employees.

Increasing employee motivation. Reducing loafing on the job. Enhancing the retention of quality employees

while encouraging low performers to leave.

Examples of High Performance Work Practices

Self-directed work teams Job rotation High levels of skills

training Problem-solving groups Encouragement of

innovative and creative behavior

Extensive employee involvement and training

Implementation of employee suggestions

Contingent pay based on performance

Coaching/mentoring Info sharing Use of employee

attitude surveys Comprehensive

employee recruitment and selection procedures

Human Resource Management Process

Activities necessary for staffing the organization and sustaining high employee performance.

Human Resource Management Process

Human ResourcePlanning

Recruitment

Decruitment

Selection Competent Employees

Orientation

Performance Management

Training

Compensationand

Benefits

CareerDevelopment

Adapted, competent employees with current skills and knowledge

High performing employees over

the long term

External Environment

External Environment

External Environment

Labor unions—an organization that represents workers and seeks to protect their interests through collective bargaining

Government laws and regulationsUnemployment rate

Human Resource Planning

1. Assessing current human resources

2. Assessing future human resource needs

3. Developing a program to meet those future needs

Assessing Current Human Resources

Human resource inventory Name, education, training, prior employment,

languages spoken, special capabilities, and specialized skills

Job analysis—defines jobs and behaviors necessary to perform them Direct observation, filming, interviewing employees

and managers, questionnaires Job description—what a jobholder does, how it

is done, and why it is done Job specification—minimum qualifications

Meeting Future Human Resource Needs

Future human resource needs are determined by an organization’s mission, goals, and strategies

Estimate HR shortages and overstaffing issues (number, type)

Recruitment and Decruitment

Recruitment

Process of locating, identifying, and attracting capable applicants

Sources of Potential Job Candidates

Source Advantages Disadvantages

Internet Reaches large number of people; can get immediate feedback

Generates many unqualified candidates

Employee referrals

Can generate strong candidates b/c a referral reflects on the recommender

May not increase diversity and mix of employees

Company website

Wide distribution; can be targeted to specific groups

Generates many unqualified candidates

College recruiting

Large centralized body of candidates

Might be limited to entry-level positions with undergrads

Decruitment

Techniques for reducing the labor supply within an organization

Decruitment Options

Option Description

Firing Permanent involuntary termination

Layoffs Temporary involuntary termination; may last only a few day or extend to years

Attrition Not filling openings created by voluntary resignations or normal retirements

Transfers Moving employees laterally or downward

Reduced workweeks

Having employees work fewer hours or share jobs

Early retirements

Providing incentives to more senior employees to have them retire before their normal retirement date

Selection

Selection Process

Screening job applicants to ensure that the most appropriate candidates are hired

Reject errors—rejecting candidates who would have performed well on the job Cost of ongoing screening, charges of

discrimination Accept errors—accepting candidates who

ultimately perform poorly Costs of training the employee, profits lost,

severance, subsequent recruiting and screening

Types of Selection Devices

Application forms Written tests—aptitude, intelligence, ability,

personality, and Emotional Intelligence Performance-simulation tests

Work sampling—do the job Assessment centers—simulate real problems

candidates would encounter Interviews Background investigations Physical examinations

Suggestions for Interviewing

1. Structure a fixed set of questions for all applicants

2. Have detailed info about the job

3. Ask questions that require applicants to give details of actual job behaviors

4. Take notes during the interview

5. Role play in mock scenarios

Human Resource Management Process

Human ResourcePlanning

Recruitment

Decruitment

Selection Competent Employees

Orientation

Performance Management

Training

Compensationand

Benefits

CareerDevelopment

Adapted, competent employees with current skills and knowledge

High performing employees over

the long term

External Environment

External Environment

Microsoft Interview Questions

“Tell me about your most intellectually challenging and difficult problem. Why was it difficult? How did you work through it? How did it work out?”

“Tell me about one of the most high potential people you have had the opportunity to work with. What did you do to support that person’s development?”

“Tell me about a time that you had to discipline an employee. What was your approach to the conversation? What was your strategy? What was the outcome?”

Orientation

Orientation

Introduction of a new employee to his or her job, the organization, and the culture

May be formal or informal Example of intense orientation—Trilogy’s

Trilogy University

Work Unit Orientation

Familiarizes the employee with the goals of the work unit, clarifies how his/her job contributes to the work unit, and includes an introduction to coworkers

Organization Orientation

Informs the new employee about the organization’s objectives, history, philosophy, procedures, and rules.

Employee Training

Types of Training

Type Includes

Interpersonal skills Leadership, coaching, communication, conflict resolution, team building, diversity

Technical Product training and knowledge, sales process, information technology, job specific

Business Finance, marketing, quality, strategic planning, project management, sales

Mandatory Safety, health, sexual harassment

Problem solving Defining problems, analyzing alternatives

Personal Career planning, time management, wellness, personal financial planning

Employee Training Methods

Traditional Training Methods On-the-job Job rotation Mentoring and coaching Experiential exercises Workbooks and manuals

Technology-based Training Methods CD-ROM, DVD, videotape Videoconference E-learning

Employee Performance Management

Performance Management System

A process of establishing performance standards and evaluating performance in order to arrive at objective human resource decisions as well as to provide documentation to support those decisions.

Performance Appraisal Methods

Method Advantage DisadvantageWritten essays

Simple to use Dependent upon the evaluator’s writing skills

Graphic rating scales

Quantitative; less time consuming

No depth about job behaviors

BARS Focus on specific and measurable job behaviors

Time consuming; difficult to develop

Multi-person comparisons

Compares employees Unwieldy with large numbers of employees

MBO Results-oriented Time consuming

360-degree appraisals

Thorough Time consuming

Compensation and Benefits

Factors that Influence Compensation and Benefits

Employee tenure and performance

Kind of job performed

Management philosophy

Unionization

Industry Company size Geographical

location Company profitability

Skill-based Pay

A pay system that rewards employees for the job skills they can demonstrate.

Current Issues in Human Resource Management

Managing Downsizing

Open and honest communication Inform people being let go as soon as

possible Inform survivors about the company’s new

goals, impact on their jobs, and future plansSeverance pay and benefitsJob search assistanceSupport for survivors

Managing Workforce Diversity

Recruitment Widen recruitment net to include non-traditional

sources such as women’s job networks, over-50 clubs, and ethnic newspapers.

Selection Make sure selection process does not discriminate. Make sure applicants are comfortable with the

organization’s culture.

Orientation and Training Mentoring programs; required diversity training