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Human Resource Management. Organizational Effectiveness. Parallels the protection and treatment of workers Social Welfare Department 1880 – 1935 Helping injured workers and their families Company unions: parties and social events Worker health Labor Relations Department 1935 – 1950

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Human resource management

Human Resource Management

Organizational Effectiveness

Development of human resource management

Parallels the protection and treatment of workers

Social Welfare Department

1880 – 1935

Helping injured workers and their families

Company unions: parties and social events

Worker health

Labor Relations Department

1935 – 1950

Collective bargaining

Contract administration

Industrial Relations Department

1950 – 1970

Labor relations

Benefits and vacations

Testing and selection

Compensation systems

Personnel Department

1970 – 1990

Legal compliance


Performance evaluation

Compensation and benefits

Employee relations

Safety and health

Human Resource Management

Development of Human Resource Management

Staffing model
Staffing Model

Strategic Business Planning

Human Resource Planning

Long-range planning

Strategic Planning

Environmental Scanning

Human Resource Planning

Middle-range planning

Operational Planning


Short-range planning

Goals and Objectives

Projected Staffing Requirements

Recruitment Planning


Applicant Search

Preliminary Screening


Selection Decision


Forecasting employment needs
Forecasting Employment Needs

  • Budgeting

  • Work-load Analysis

  • Unit Demand

  • Expert Opinion

  • Trend Predictions

Typical steps in the selection process
Typical Steps in the Selection Process for a Hotel Chain

Placement on the job

Selection decision

Final interview

Drug testing

Reference checks

Employment testing


Application blanks

Preliminary screening

Reject applicant

Information that generally should not be used in employment decisions
Information that Generally Should Not Be Used in Employment Decisions

  • Height and weight

  • Marital Status/Number of Children/Child care

  • Educational level

  • English language skill

  • Names of friends or relatives working for the employer

  • Arrest records

  • Conviction records

  • Discharge from military service

  • Citizenship

  • Economic Status

  • Availability to work weekends/holidays

    Employers must show that there is a “business necessity” to use these criteria. For example, an employer would probably be able to discriminate in hiring a teller who had been convicted of embezzling.

3d model of an organization
3D Model of an Organization Decisions

Source: E.H. Schein, “The Individual, the Organization, and the Career: A Conceptual Scheme,” Journal of Applied Behavioral Science (1971): 401-426.)

Human resource management
Professional Career Stages: DecisionsCentral Activities, Relationships, and Psychological Issues in the Four Career Stages

A systems model for training
A Systems Model for Training Decisions

Assessment Phase

Assess training

needs and resources

Identify training


Training and Development Phase





Select training

methods and

learning principles

Evaluation Phase





Compare training

outcomes against



Solving performance problems
Solving Performance Problems Decisions

  • Describe the situation

  • Diagnose whether it’s an ability or motivation problem

  • Use joint problem solving to come up with solutions to the problem

  • Communicate consequences for the problem

  • Handle emergent problems (but don’t get deflected from the core problem)

  • Decide who will do what by when and follow up

Progressive discipline
Progressive Discipline Decisions

  • Verbal Warning

  • Verbal Reprimand

  • Written Reprimand

  • Suspension

  • Discharge

Solving the surplus personnel problem
Solving the ‘Surplus Personnel’ Problem Decisions

  • Layoffs

  • Attrition

  • Reduced Hours/Job Sharing

  • Unpaid Vacations

  • Early Retirements

High performance work practices financial performance
High Performance Work Practices – Financial Performance Decisions

Sample: 968 U.S. firms with 100 or more employees

Financial Data: 10-K reports with the SEC

High Performance Work Practices: What proportion of the workforce participates in:

  • Formal information sharing program

  • Formal job analysis

  • Hiring from within

  • Employee attitude surveys

  • Quality of Work Life Programs

  • Company incentive, profit-sharing, or gain-sharing plans

  • Formal grievance and complaint procedures

  • Pre-employment testing

  • Performance appraisals are used to determine promotion

  • Formal performance appraisals

  • Promotion by seniority or performance

  • Selection ratio for hiring

  • What is the average number of hours of training received per employee per year?

High performance work practices results
High Performance Work Practices - Results Decisions

A one standard deviation increase in high performance work practices is associated with:

  • 7.05% decrease in turnover

  • $27,044 increase in sales annually per employee

  • $18,641 increase in market value annually per employee

  • $3,814 increase in profits annually per employee

Source: Mark A. Huselid, “The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance.” Academy of Management Journal, vol 38 (1995): 635-672