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Human Resource Management

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Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.

The Strategic Role of Human Resource Management

Human Resource management has shed its old personnel image and gained recognition as a vital player in corporate strategy

HRM departments not only support the organization’s strategic objective but actively pursue an ongoing, integrated plan for furthering the organization’s performance

●Higher employee productivity●Stronger financial results●Achieve organization’s strategic goals●Key players on management team

Manager’s Challenge: UPS Buffalo, New York

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Human Resource Management

All managersare resource

managers

Employees areviewed as

assets

Matching process,integrating theorganization’sgoals withemployees’ needs

How a company manages its workforce may be single more important factor in sustained competitive success

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Current Strategic Issues

Becoming more competitive globally

Improving quality, productivity, & customer service

Managing mergers & acquisitions

Applying new information technology for e-business

Determine a company’s need for skills and employees

Experiential Exercise: Do You Want to be an HR Manager?

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Human Resource Management Goals

Develop an Effective Workforce

TrainingDevelopmentAppraisal

Maintain an Effective Workforce

Wage and salaryBenefitsLabor relationsTerminations

HRM planningJob analysisForecastingRecruitingSelecting

Attract an Effective Workforce

Company StrategyHRM EnvironmentLegislationTrends in societyInternational eventsChanging technology

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Environmental Influences on HRM

Competitive Strategy

– Building Human Capital

– Information Technology

Federal Legislation

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Three Ways HR Is Changing

Development of global HR strategies

IHRM

Focus on building human capital

The using of information technology

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Human Capital - IHRM

Human Capital = economic value of the knowledge, experience, skills, and capabilities of employees

IHRM = addresses the complexity that results from recruiting, selecting, developing, and maintaining a diverse workforce on a global scale

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Information Technology

Human resource information technology = an integrated computer system designed to provide data and information used in HR planning and decision making

Traditional HR to e-HR significantly affected every area of human resource management

Some organizations are close to a paperless HRM system – saves time, money, frees staff

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Federal Legislation

Discrimination = hiring or promoting of applicants based on criteria that are not job relevant

Affirmative action = policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups

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Major Federal Laws - HRM

Equal Opportunity/Discrimination Laws

Compensation/Benefits Laws

Health/Safety Laws

Exhibit 12.3

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The Changing Social ContractNew Contract Old Contract

Employee

Employer

Employability, personal responsibility Partner in business improvement Learning

Job security A cog in the machine Knowing

Continuous learning, lateral careermovement, incentive compensationCreative development opportunitiesChallenging assignmentsInformation and resources

Traditional compensation package

Standard training program Routine jobs Limited information

SOURCE: Based on Louisa Wah, “The New Workplace Paradox “ Management Review, January 1998,7; and Douglas T. Hall and Jonathan B. Moss, “The New Protean Career Contract: Helping Organizations and Employees Adapt,” Organizational Dynamics, winter 1998, 22-37.

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HR Issues in the New Workplace

Teams and Projects

Temporary Employees

Technology

Work-Life Balance

Downsizing

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Teams and Projects – major trend in today’s workplace With emphasis on projects, distinctions between job

categories and descriptions are collapsing Many of today’s workers straddle functional &

departmental boundaries; handle multiple tasks/responsibilities

Virtual team = made up of members who – are geographically or organizationally dispersed,

– rarely meet face to face, and

– do their work using advance information technologies.

Teams and Projects

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In opening years of the 21st century, largest employer in U.S. was a temporary employment agency, Manpower, Inc.

Temporary Employees do everything from data entry to interim CEO

Contingent workers = people who work for an organization, but not on a permanent or full-time basis, including temporary placements, contracted professionals, or leased employees

Temporary Employees

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Telecommuting and virtual teams are related trends

Telecommuting = using computers and telecommunications equipment to perform work from home or another remote location

Work anywhere - wireless Internet devices, laptops, cell phones, fax machines

Extreme telecommuting = people live nd work in countries far away from the organization’s physical location

Technology

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Telecommuting is one way organizations help employees lead more balanced lives

Flexible scheduling important in today’s workplace – 27% of workforce/flexible hours

Broad Work-Life Balance initiatives – critical retention strategy – on-site gym & childcare, paid leaves & sabbaticals

Work-Life Balance

Many European companies ahead of U.S. companies

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Downsizing = intentional, planned reduction in the size of a company’s workforce

Managers can smooth the downsizing process

– Regularly communicating with employees

– Providing them with as much information as possible

– Providing assistance to workers who will lose their jobs

– Using training and development for remaining employees

Downsizing

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HR issues present many challenges for organizations and HR managers as they work toward the three primary HR goals

● Attracting● Developing● Maintaining an effective workforce

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Matching Model

An employee selection approach in which the organization

and the applicant attempt to match each other’s needs,

interests, and values

Attracting an Effective Workforce

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Attracting an Effective Workforce

Choose RecruitingSourcesWant adsHeadhuntersInternet

Choose RecruitingSourcesWant adsHeadhuntersInternet

HR PlanningRetirementsGrowthResignations

Select theCandidateApplicationInterviewTests

Welcome NewEmployee

Employee ContributionsAbilityEducationCreativityCommitmentExpertise

Company InducementsPay and benefitsMeaningful workAdvancementTrainingChallenge

Matching Model

Match with

Company NeedsStrategic goalsCurrent & future competenciesMarket changesEmployee turnoverCorporate culture

Employee NeedsStage of careerPersonal valuesPromotion aspirationsOutside interestsFamily concerns

Match with

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Human Resource Planning

Forecasting of human resource needs and the projected matching of individuals with expected vacancies

● ? = New technologies emerging

● ? = Volume of business likely next 5-10 years

● ? = Turnover rate, how much is avoidable, if any

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Recruiting

Recruiting = activities or practices that define the desired characteristics of applicants for specific jobs

● Internal – promote-from-within policies used by many to fill high-level positions

● External = recruiting newcomers from outside has advantage of multiple sources

● E-cruiting = use of Internet - fastest-growing approach to recruiting

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Basic Building Blocks of HR Management

Job Analysis

Job Description

Job Specification

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Selecting

Selection = process of determining the skills, abilities, and other attributes a person needs to perform a particular job

Validity = relationship between an applicant’s score on a selection device and his or her future job performance

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Selecting

Application form - device used for collecting information about an applicant’s education, previous job experience, and other background characteristics

Research = biographical information inventories can validly predict future job success

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Interviewing An Applicant

Know what you want

Prepare a road map

Use open-ended questions

Do not ask irrelevant questions

Do not rush interview

Do not rely on your memory

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Reasons For Not Asking About Home Ownership

● Might adversely affect applicants chances at the job

● Minorities and women may be less likely to own a home

● Home ownership is probably unrelated to job performance

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Interview as Predictor of Success

Interview is not generally a valid predictor of job performance – has high face validity as a selection tool

Panel interviews – candidate meets with several interviewers who take turns asking questions – increases interview validity

Computer-based interviews - complement traditional interviewing information

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Inappropriate or Illegal Questions

Race-related questions Age Religion Gender National origin Marital/family status

Employment Applications and Interviews

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Testing and Assessment

Employment Test = written or computer-based test designed to measure a particular attribute such as intelligence or aptitude

Assessment Center = technique for selecting individuals with high managerial potential based on their performances on a series of simulated managerial tasks

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Developing an Effective Workforce

Training and development = planned effort to facilitate employees’ learning of job-related skills and behaviors $100 billion/year On-the-job training = an experienced employee

“adopts” a new employee to teach him or her how to perform job duties

Cross training

Mentoring

Following selection, next goal of HRM is to develop employees

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Performance Appraisal

Process of observing and evaluating an employee’s performance, recording the assessment, and providing feedback to the employee

Steps● Observing and assessing performance● Recording the assessment● Providing feedback to employee

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Making Performance Appraisals A Positive Force

1. The accurate assessment of performance through the development and application of assessment systems such as a rating scale

2. Training managers to effectively use the performance appraisal interview to provide feedback that reinforces good performance and motivate employee development

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Assessing Performance Accurately

360° Feedback Process

Performance Evaluation Errors– Stereotyping– Halo effect– BARS – Behaviorally-anchored rating scale

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Behaviorally Anchored Rating Scale

1 2 3 4 5

Have no plan or schedule of work and no concept of realistic due dates

Have a sound plan but neglect to keep trace of target dates or to report schedule slippages or other problems as they occur

Usually satisfy time constraints, with time and cost overruns coming up infrequently

Develop a comprehensive schedule, observe target dates, and update the status of operations relative to plans, making schedule modifications as quickly as necessary

Make a list of due dates and revise them but are frequently surprised by unforeseen events

Job: Production Line Supervisor - Work Dimension: Work Scheduling

Sources: Based on J.P. Campbell, M.D. Dunnette, R.D. Arvey, and L.V. Hellervik, “The Development and Evaluation of behaviorally Based Rating Scales,”Journal of Applied Psychology 57 (1973), 25-22; and Francine Alexander, ‘performance Appraisals,” Small Business Reports (March 2989), 20-29.

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Maintaining an Effective Workforce

Compensation

– Wage and Salary Systems

– Compensation Equity

– Pay for Performance

Benefits

Termination

Ethical Dilemma: A Conflict of Responsibilities

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Termination

Employees who are poor performers can be dismissed Employers can use exit interviews in a positive manner

Value of termination for maintaining an effective workforce is two fold

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