Chapter 12Human Resource Management

The Strategic Role of HRM

HR: design &application of formal systems in an orgz to ensure effective &efficient use of human talent to achieve orgz goals

HRM & HR strategies aligned with orgz strategic direction-Positive Performance

Matching process

• Integrate strategy

• HR builds culture

The right people: To become more competitive on a global basis

For improving quality, innovation, and customer service

To retain during mergers and acquisitions

To apply new information technology for e-businessCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 2

12.1 Strategic Human Resource Management

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Building Human Capital to Drive Performance

• Strategic decisions are related to human decisions

• More companies rely on information, creativity, and knowledge

Human Capital is the economic value of the combined knowledge, experience, skills, and

capabilities of employeesCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 4

The Changing Nature of Careers

Employees operate under a new social contract

Downsizing, outsourcing, rightsizing, and restructuring have left little stability

Subsidized benefits are decreasing

Employees are expected to be self-motivated

Organizations must be creative with training and development

New performance appraisal processes are requiredCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 6

Innovations in HRM

• Becoming an Employer of Choice

– Organizations that are highly attractive to potential employees because of HR practices

• Using Temporary and Part-Time Employees

– Contingent workers are not permanent, maintain flexibility, and keep costs low

• Promoting Work/Life Balance

– Critical retention strategies

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Promoting Work-Life Balance

Helping workers lead a balanced life

Part-time work and telecommuting

Flexible scheduling

Gen Y/Millennials demand more work-life balance

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12.5 Attracting an Effective Workforce

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Human Resource Planning

• What new technologies are emerging?• What is the volume of the business likely to be in the

next 5 to 10 years?• What is the turnover rate?

• What types of engineers will we need?• How many administrative personnel will we need to

support additional engineers?• Can we use temporary, part-time, or virtual workers?

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Recruiting (talent acquisition)

• Activities that define characteristics of applicants to whom selection procedures will be applied

Internal recruitingExternal recruiting

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• Assessing Organizational Needs:– Job Analysis-gather & interpret info about duties, task & responsibilities of

jobs (ask work flow, activities etc)

– Job Description-summary of specific task/duties/responsibilities

– Job Specification-outlines characteristics needed to perform job (skills, education etc.)

• Realistic Job Previews – provide pertinent information; positive and negative-about job &orgz to applicants

• Legal Considerations – recruiting practices must be legal

• Innovations in Recruiting:– E-Recruiting

– Twitter, LinkedIn, and other social media

Recruiting

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Application Form• Avoid irrelevant questions • Avoid questions w/

adverse impact

Interview; Structured interviewsNon directive InterviewsPanel Interviews

Selecting

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Employment Tests• Cognitive ability tests• Physical ability tests• Personality tests• Brainteasers

Assessment Center• Work sample tests

Online Checks

Select desired employees from pool of recruited applicants-Employers assess applicants for a “fit”

HR professionals us a combination of devices:

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Structured interviews• Biographical interviews-life &work Experiences• Behavioral interviews-describe the task/problem

performed• Situational Interviews-how handle hypothetical

situationNon-directive interviewsAllow freedom , broad and open ended questions,Panel Interviews-several interviewers

Interviews

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Managing Talent

• Training and Development-develop employees into effective workers– On-the-Job Training– Corporate Universities– Promotion from Within– Mentoring and Coaching

• Development involves teaching broader skills

• Performance Appraisal– Evaluating performance, recording assessment,

and providing feedbackCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved. 18