Management 11e John Schermerhorn

Management 11e John Schermerhorn Chapter 12Human Resource Management

Planning Ahead — Chapter 12 Study Questions • What is human resource management? • How do organizations attract a quality workforce? • How do organizations develop a quality workforce? • How do organizations maintain a quality workforce? Management 11e Chapter 12

Study Question 1: What is human resource management? • Human Resource Management is a process of attracting, developing, and maintaining a talented work force • Human capital is the economic value of people with job-relevant abilities, knowledge, ideas, energies and commitments Management 11e Chapter 12

Study Question 1: What is strategic human resource management? • Major human resource management responsibilities: Management 11e Chapter 12

Study Question 1: What is human resource management? • Person-job fit • The individual’s skills, interests, and personal characteristics are consistent with the requirements of work • Person-organization fit • The individuals values, interests, and behavior are consistent with the culture of the organization Management 11e Chapter 12

Study Question 1: What is human resource management? • Strategic human resource management mobilizes human capital to implement organizational strategies • Discrimination in employment • Occurs when someone is denied a job or job assignment for reasons that are not job relevant • Equal employment opportunity • The right to employment without regard to race, color, national origin, religion, gender, age, or physical or mental ability • Title VII of the Civil Rights Act of 1964 • Equal Employment Opportunity Act of 1972 • Civil Rights Act (EEOA) of 1991

Figure 12.1 A sample of U.S. laws against employment discrimination Management 11e Chapter 12

Study Question 1: What is human resource management? • Affirmative action • An effort to give preference in employment to women and minority group members • Bona fide occupational qualifications • employment criteria justified by capacity to perform a job • Additional laws against employment discrimination: • Americans With Disabilities Act of 1990 • Age Discrimination in Employment Act of 1967 as amended in 1978 and 1986 • Pregnancy Discrimination Act of 1978 • Family and Medical Leave Act of 1993 • Current legal issues in HRM • Sexual harassment • Equal pay and comparable worth • Legal status of independent contractors • Workplace privacy Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? • Human resource planning analyzes an organization’s HR needs and how to best fill them • The foundation of human resource planning is job analysis • The orderly study of job facts to determine just what is done, when, where, how, why, and by whom in existing or potential new jobs • Job analysis provides information for developing: • Job descriptions • Job specifications Management 11e Chapter 12

Figure 12.2Steps in strategic human resource planning Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? • Recruitment • Activities designed to attract a qualified pool of job applicants to an organization • Steps in the recruitment process: • Advertisement of a job vacancy • Preliminary contact with potential job candidates • Initial screening to create a pool of qualified applicants Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? • Selection • Choosing from a pool of applicants the person or persons who offer the greatest performance potential Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? • Selection process Management 11e Chapter 12

Figure 12.3 Steps in the selection process: the case of a rejected job applicant Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? • Reliability means that a selection device gives consistent results time after time • Validity means that there is a clear relationship between what the selection device measures and job performance • Interviews • Unstructured interviews do not follow a formal and pre-established of questions • Behavioral interviews ask job applicants about past behaviors that relate to the job • Situational interviews ask job applicants how they would react in specific situations Management 11e Chapter 12

Study Question 2: How do organizations attract a quality workforce? • Employment Tests • Used to further screen applicants by gathering additional job-relevant information • Assessment centers examine how job candidates handle simulated work situations • Work sampling involves observing applicants performing actual work tasks • Biodata methods collect biographical information that has been proven to correlate with good job performance along with other traits such as Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? • Socialization • Process of influencing the expectations, behavior, and attitudes of a new employee in a way considered desirable by the organization • Orientation • Set of activities designed to familiarize new employees with their jobs, coworkers, and key aspects of the organization Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? • Training • Activities that provide the opportunity to acquire and improve job-related skills Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? • Performance management systems ensure that • Performance standards and objectives are set • Performance results are assessed regularly • Actions are taken to improve future performance potential • Performance appraisal • Formally assessing someone’s work accomplishments and providing feedback • Purposes of performance appraisal: • Evaluation — lets people know where they stand relative to objectives and standards • Development — assists in training and continued personal development of people Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? • Graphic rating scales • A trait-based performance appraisal that includes checklists of traits or characteristics to evaluate performance • Relatively quick and easy to use • Questionable reliability and validity • Behaviorally anchored rating scales (BARS) • A behavior-based performance appraisal that describes actual behaviors that exemplify various levels of performance achievement in a job • More reliable and valid than graphic rating scales • Helpful in training people to master important job skills Management 11e Chapter 12

Figure 12.4 Sample behaviorally anchored rating scale for performance appraisal Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? • Recency bias is the tendency for evaluators to focus on recent behaviors instead of behavior that occurred throughout the evaluation period Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? • Critical-incident techniques • Keeping a running log or inventory of effective and ineffective behaviors • Documents success or failure patterns • Results-based performance appraisals focus on accomplishments • Usually qualitative and objective • Determining what to measure may be difficult • May create ethical problems • Multiperson comparisons • Formally compare one person’s performance with that of one or more others • Types of multiperson comparisons: • Rank ordering • Paired comparisons • Forced distributions Management 11e Chapter 12

Study Question 3: How do organizations develop a quality workforce? • 360° feedback • Occurs when superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholder’s performance • Work-life balance • How people balance career demands with personal and family needs • Progressive employers support a healthy work-life balance • Contemporary work-life balance issues: • Single parent concerns • Dual-career couples concerns • Family-friendliness as screening criterion used by candidates Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? • Compensation and benefits • Base compensation: Salary or hourly wages • Flexible benefits • Employees can select a set of benefits within a certain dollar amount • Pay for performance • Paying people for performance is consistent with: • Equity theory • Expectancy theory • Reinforcement theory • Merit pay • Awards a pay increase in proportion to individual performance contributions • Provides performance contingent reinforcement Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? Bonus pay plans • One-time payments based on the accomplishment of specific performance targets or some extraordinary contribution • Profit-sharing plans • Some or all employees receive a proportion of net profits earned by the organization • Gain-sharing plans • Groups of employees share in any savings realized through their efforts to reduce costs and increase productivity Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? • Employee stock ownership plans • Employees purchase company stock directly through employer, sometimes at a discount • Stock options • Employees have the right to purchase company stock at a fixed price in the future as a performance incentive • Benefits: Non-monetary forms of compensation • Required • Social security • Unemployment insurance • Worker’s compensation • Not required. Health insurance. Retirement plans And Paid time off Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? • Flexible benefits • Allow employees to choose from a set of benefits • Family-friendly benefits • Help in balancing work and nonwork responsibilities • Employee assistance programs • Help employees deal with troublesome personal problems • Retention • Keeping well trained and productive employees • Turnover • management of promotions, transfers, terminations, layoffs, and retirements Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? • Early retirement • Financial incentive offered to employees who retire early • Termination • Involuntary dismissal of an employee • Labor-management relations • Labor unions deal with employers on the workers’ behalf • Collective bargaining • Process of negotiating, administering and interpreting a labor contract Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? • Employment-at-will • Employees can be terminated at any time for any reason • Wrongful discharge • Workers have legal protection from discriminatory firings • Labor-management relations • Labor unions deal with employers on the workers’ behalf • Collective bargaining • Process of negotiating, administering and interpreting a labor contract Management 11e Chapter 12

Study Question 4: How do organizations maintain a quality workforce? Management 11e Chapter 12

The traditional adversarial view of labor-management relations Management 11e Chapter 12

Chapter 12 Case • Netflix: Making Movie Magic

Management 11e John Schermerhorn