1

Importance of strategic HRM

Environmental considerations

HRM process - 8 steps

Current HRM Issues

Chapter 12 – Human Resource Management – Learning Objectives

2

HRM: Traditional vs. Strategic

HRM Process: Activities necessary for staffing the organization with competent people and sustaining high employee performance

Strategic HRM: Using HRM as a tool to achieve the organization’s strategic initiatives

3

Importance of People

In the century ahead, “skilled people become the only sustainable competitive advantage” (Lester Thurow – MIT Economist)

The traditional factors of production (land, labor, capital), have become secondary. Knowledge is the only meaningful resource today. (Peter Drucker – Management guru, Claremont)

“The organizations that will truly excel in the future will be the organizations that discover how to tap people’s commitment and capacity to learn at all levels of the organization” (Peter Senge - MIT)

“Empowerment is no longer a nice thing to do, some new-fangled notion. It is a business imperative.” (Murli Thirumale - HP)

4

CALIFORNIACompany City U.S. employees

Adobe Systems San Jose 2,368

Amgen Thousand Oaks 9,263

Cisco Systems San Jose 24,622

Genentech South San Francisco 6,110

Granite Construction Watsonville 4,110

Hot Topic City of Industry 5,471

Hyperion Solutions Sunnyvale 1,752

Intel Santa Clara 49,015

Intuit Mountain View 6,064

Men's Wearhouse Fremont 7,249

Network Appliance Sunnyvale 1,791

Nvidia Santa Clara 1,531

Qualcomm San Diego 5,382

Vision Service Plan Rancho Cordova 2,072

Xilinx San Jose 2,037

Best companies to work for in California (according to Fortune 2004 list)•http://www.fortune.com/fortune/bestcompanies/subs/2004/fulllist/

5

Examples of High-Performance Work Practices

• Self-Directed Work Teams • Job Rotation• Skills Training• Problem-Solving Groups• Total Quality Management• Innovation and Creativity• Employee Involvement

• Use of Employee Suggestions • Pay for Performance• Coaching and Mentoring• Information Sharing• Use of Attitude Survey• Cross-Functional Integration• Recruiting and Selection

6

High-PerformingCommittedEmployees

HumanResourcePlanning

Recruitmentand

Decruitment

Selection ofEmployees

Orientation CareerDevelopmentTraining

Compensationand Benefits

Human Resource Management Process

Performance Appraisal

Environment

Environment

7

Environmental Considerations

Labor unions

Federal laws and regulations

– BFOQ’s

8

Answer Question #1

9

Common Labor Unions

United Steelworkers of America (USWA) California Faculty Association (CFA) United Auto Workers (UAW) National Education Association (NEA) American Federation of Teachers (AFT) American Civil Liberties Union (ACLU) Screen Actors Guild (SAG) Teamsters Service Employees Industry Union (SEIU)

10

Selected Major U.S. Federal Laws and Regulations Related to HRM

1963 Equal Pay Act 1964 Civil Rights Act, Title VII 1967 Age Discrimination in Employment Act 1974 Privacy Act 1978 Mandatory Retirement Act 1988 Worker Adj. and Retrain. Notif. Act 1990 Americans with Disabilities Act 1993 Family and Medical Leave Act

11

Step 1 - Human Resource Planning

Assess current and future human resource needs– HR inventory

– Job analysis

– Job description

– Job specification

Develop a plan to meet future needs

PLEASE ANSWER QUESTIONS 2 & 3

12

Management Vacancy Announcement Manager University Cash Services

CSUNThe Position of Manager of University Cash Services: Under general supervision, the Manager of University Cash Services (UCS) is responsible for management of all cash receipt functions for the entire campus including the General Fund, Extended Learning, Parking, Housing, Lottery and Trust Accounts, disbursement of payroll, student refunds, and financial aid payments. Ensures integrity and accuracy of all cash transactions; maintains and/or develops internal accounting and operating controls to safeguard cash assets of the university; reviews existing internal controls to ensure effectiveness; identifies and corrects quality control issues to reduce risk of error; monitors and/or establishes business practices and procedures to maintain or improve customer service; establishes accountability, evaluates performance, and measures progress; interprets university and CSU policies and state and federal regulations for compliance purposes; plans and organizes utilization of resources in response to changes in volume; acts as liaison to other departments to identify and resolve common problems and issues; provides financial and statistical reports as necessary; and participates as a member of various committees and teams as they may affect changes in workload or functional requirements of UCS.

Qualifications: Equivalent to a Bachelor’s Degree from an accredited college or university with an emphasis in business administration, accounting, finance, or related field. Minimum seven years fiscal service experience including four years operational management experience in a high volume, fast-paced organization. Demonstrated experience in the use of computerized accounting and information systems for financial analysis, reconciliations, and reporting. Experience in higher education, specifically in fiscal management preferred. Comprehensive knowledge of: accounting standards, practices, and procedures with demonstrated experience in development and implementation of internal accounting and operating controls. Ability to: work with and respond to a diverse customer base in a professional and flexible manner; organize and coordinate a multifunctional organization; meet deadlines; address growing needs and concerns of a large university; and analyze data, interpret policies, procedures, and regulations, and identify solution alternatives. Must possess a collaborative management style; the ability to establish and maintain effective working relationships with staff and management within and outside the department; and be skilled at team building and creating a positive and productive working environment.

JobDesc.

JobQual

13

Step 2: Recruit.Major Sources of Potential Job

Candidates

Exhibit 12.4Exhibit 12.4PLEASE ANSWER QUESTIONS 4 & 5

14

Step 2: Decruitment OptionsOPTION DESCRIPTION

Firing Permanent involuntary terminationLayoffs Temporary involuntary termination; may last

only a few days or extend to yearsAttrition Not filling openings created by voluntary

resignations or normal retirementsTransfers Moving employees either laterally or down-

ward; usually does not reduce costs but canreduce intraorganizational supply-demandimbalances

Reduced workweeks Having employees work fewer hours per week, share jobs, or perform their jobs ona part-time basis

Early retirements Providing incentives to older and more senior employees for retiring before theirnormal retirement date

Job sharing Employees share one full-time position

15

Step 3: Selection Issues

Prediction

Validity

Reliability

16

CorrectDecision

RejectError

CorrectDecision

AcceptError

Selection DecisionAccept Reject

Succ

essf

ulU

nsuc

cess

ful

Late

r Job

Per

form

ance

Selection Decision Outcomes

17

Selection Devices

Application Form Written Test Work Samples Performance Simulation Background Checks Physical Examination Personal Interviews

PLEASE ANSWER QUESTION 6

PLEASE ANSWER QUESTION 7

18

Suggestions for Interviewing

1. Structure fixed set of questions (e.g., standardized evaluation form) for all applicants.

2. Have detailed information about the job that applicants are interviewing for.

3. Minimize any prior knowledge of applicants’ background, experience, interests, test scores of other characteristics.

4. Ask behavioral questions that require applicants to give detailed accounts of actual job behaviors.

6. Take notes during the interview. 7. Avoid short interviews that encourage premature decision

making.

19

Examples of “Can’t Ask and Can Ask” Interview Questions for Managers

Can’t Ask– What’s your birth date?

or How old are you?– What’s your marital

status? or Do you plan to have a family?

– What’s your native language?

– Have you ever been arrested?

Can Ask– Are you over 18?– Would you relocate?– Are you authorized to

work in the United States?– Have you ever been

convicted of [fill in the blank]?—The crime must be reasonably related to the performance of the job.

20

Step 4 - Orientation

Reduce initial anxiety Familiarize new employees with job, work unit,

organization Facilitate outsider-insider transition

– Cover org’s objectives, history, etc.– Clarify how job contributes to goals– Cover policies (hours, pay, overtime, benefits)– Introduce co-workers– Tour

PLEASE ANSWER QUESTION 8

21

Step 5 - Training

Skill Categories

– Technical

– Interpersonal

– Problem-solving

Training Methods

– On-the-Job

– Off-the-Job

PLEASE ANSWER QUESTION 9

22

In the Past Today

OrganizationsDeveloped

Careers

IndividualsDevelopCareers

Step 6 - Career Development

PLEASE ANSWER QUESTION 10

23

Steps to a Successful Management Career

Select your first job judiciously

Do good work Present the right image Learn the power

structure Gain control of

organizational resources

Stay visible Don’t stay too long Find a mentor Support your boss Stay mobile Think laterally Continue upgrading your

skills Develop a network

24

Step 7 - Performance Appraisal - Methods

Written essays Critical incidents Graphic rating scales Behaviorally anchored rating scales (BARS) Multiperson comparisons Management By Objectives (MBO) 360 Degree feedback

25

Step 8 – Compensate – Components of a Comp. System

Base wages and salaries

Wage and salary add-ons

Incentive payments

Benefits and services

PLEASE ANSWER QUESTION 11

26

Tenure and Performance

Kind ofBusiness

UnionMembership

GeographicLocation

Size ofCompany

ManagementPhilosophy

Factors that Influence Compensationand Benefits Packages

Typeof Job

Labor orCapital

Intensive

CompanyProfitability

27

WorkforceDiversity

SexualHarassment

Work-LifeBalance

Downsizing

CurrentHRM Issues