lecture 11 28th nov 2011
TRANSCRIPT
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11Chapter
Human ResourceManagement
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Learning Objectives
After studying the chapter, you should be able to:Explain why strategic human resource management
can help an organization gain a competitiveadvantage.
Describe the steps managers take to recruit andselect organizational members.
Discuss the training and development options thatensure organization members can effectively
perform their jobs.
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Learning Objectives (contd)
Explain why performance appraisal and feedback issuch a crucial activity, and list the choicesmanagers must make in designing effectiveperformance appraisal and feedback procedures.
Explain the issues managers face in determining indetermining levels of pay and benefits
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Chapter Outline
Strategic Human Resource ManagementAn Overview of the Components of HRM
The Legal Environment
Recruitment and SelectionHuman Resource Planning
Job Analysis
External and Internal Recruitment
The Selection Process
Training and Development
Types of Training
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Chapter Outline (contd)
Training and Development (contd)Types of Development
Transfer of Training and Development
Performance Appraisal and FeedbackTypes of Performance Appraisal
Who Appraises Performance
Effective Performance Feedback
Pay and Benefits
Pay Level
Pay Structure
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Chapter Outline (contd)
Pay and Benefits (contd)Benefits
Labor Relations
UnionsCollective Bargaining
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Strategic Human Resource Management
Human Resource Management (HRM)Activities that managers engage in to attract and
retain employees and to ensure that they performat a high level and contribute to theaccomplishment of organizational goals.
HRM activities
Recruitment and selection
Training and development
Performance appraisal and feedbackPay and benefits
Labor relations
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Strategic Human Resource Management
Strategic Human Resource ManagementThe process by which managers design the
components of a human resource system to beconsistent with each other, with other elements of
organizational structure, and with the organizationsstrategy and goals.
The objective of strategic HRM is the development of
an HRM system that enhances the organizations
efficiency, quality, innovation, and responsiveness to
customers.
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Components of aHuman Resource
Management System
Figure 11.1
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Overview of the Components of HRM
Recruitment and SelectionDeveloping a pool of qualified applicants.
Determining relative qualifications of applicants andand their potential for a job.
Training and Development
Developing, on an ongoing basis, employeesabilities and skills as necessitated by changes in
technology and the competitive environment.
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Overview of HRM Components (contd)
Performance Appraisal and FeedbackProviding information about how to train, motivate,
and reward workers such that managers canevaluate and then give feedback to enhance worker
performance. Pay and Benefits
Rewarding high performing employees with raises,bonuses and recognition.
Increased pay provides additional incentive.
Benefits, such as health insurance, reward
membership in firm.
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Overview of HRM Components (contd)
Labor relationsMaintaining an effective relationship with labor
unions that represent workers.
Unions seek to participate, through collective
bargaining, in the determination of pay rates and thesetting of working conditions.
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Recruitment and Selection
RecruitmentActivities that managers engage in to develop a
pool of candidates for open positions.
Selection
The process that managers use to determine therelative qualifications of job applicants and theirpotential for performing well in a particular job.
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Human Resource Planning
Human Resource Planning (HRP)Activities that managers engage in to forecast their
current and future needs for human resources.
HRP must be done prior to recruitment and
selection
Demand forecasts
Estimates of the number and qualifications of
employees the firm will need.
Supply forecasts
Estimates of the availability and qualifications of
current workers and those in the labor market.
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The Recruitment and Selection System
Figure 11.2
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Human Resource Planning: Outsourcing
OutsourcingUsing outside suppliers and manufacturers to
produce goods and services
Using contract workers rather than hiring them.
Outsourcing is more flexible for the firm.
Outsourcing provides human capital at a lower cost.
Problems with Outsourcing
Loss of control over output; outsource contractorsare not committed to the firm.
Unions are against outsourcing that has potential toeliminate members jobs.
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Job Analysis
Job analysisIdentifying the tasks, duties and responsibilities
that make up a job and the knowledge, skills, andabilities needed to perform the job.
A job analysis should be done for each job in theorganization.
Job analysis methods:
Observing what current workers do.
Having workers and manages fill out questionnaires.
Current trend is toward flexible jobs where tasksand duties are not easily defined in advance.
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Recruitment
External RecruitingSeeking outside the firm for people who have not
worked at the firm previously.
Newspapers advertisements, open houses, on-
campus recruiting, employee referrals, and throughthe Internet.
External recruitment is difficult since many newjobs have specific skill needs.
A multi-prong approach to external recruiting worksbest.
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Recruitment
Internal RecruitingSeeking to fill open positions with current
employees from within the firm.
Benefits of internal recruiting:
Job candidates, their qualifications, and availability
are already known.
Current employees know the firms culture and are
familiar with the organization.
Internal advancement (promotion from within) canserve to motivate employees.
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Honesty in Hiring
The temptation to over-rate and oversell theattractiveness of the job and firm.
Managers may feel that if they are honest, anapplicant may not be willing to work there.
Research indicates this is a poor strategy.
Realistic Job Preview
Providing an honest assessment of the advantage
and disadvantages of a job and organization.Avoids hiring, training and then losing an employee
because as applicants, they misperceived the job
before agreeing to come to work.
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Selection Tools
Figure 11.3
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The Selection Process
Determining an applicants qualificationsrelated to the job requirements
Background information
Education, prior employment, and college major
Interviews
Structured interviews where managers ask each
applicant the same job-related questions.
Unstructured interviews that resemble normal
conversations.
Usually structured interviews preferred; bias is
possible in unstructured interviews.
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The Selection Process (contd)
Determining an applicants qualificationsrelated to the job requirements (contd)
Physical ability tests
Measures of dexterity, strength, and stamina for
physically demanding jobs
Measures must be job related to avoid discrimination.
Paper-and-Pencil Tests
Ability tests assess if applicants have the right skills
for the job.
Personality tests seek to determine if applicants
possess traits relevant to job performance.
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Selection Process
Determining an applicants qualificationsrelated to the job requirements (contd)
Performance Tests
Tests that measure an applicants current ability to
perform the job or part of the job such as requiring anapplicant to take typing speed test.
Assessment centers are facilities where managerial
candidates are assessed on job-related activities over
a period of a few days.References
Obtaining relevant information can be difficult to due
to legal liability and privacy issues
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Reliability and Validity
Selection tools must be reliable and valid.Reliability is the degree to which the tool measures
the same thing each time it is used.
Example: scores should be similar for the same
person taking the same test over time.
Validity is the degree to which the test measureswhat it is supposed to measure
Example: how well a physical ability test predicts the
job performance of a firefighter.
Managers have both an ethical obligation and alegal duty to develop good selection tools.
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Training and Development
TrainingTeaching organizational members how to perform
current jobs and helping them to acquire theknowledge and skills they need to be effective
performers. Development
Building the knowledge and skills of organizationalmembers to enable them to take on new duties and
challenges.
Training is used more often at lower levels of
firm; development is common with managers.
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Training and Development: Needs Assessment
Needs AssessmentAn assessment of which employees need training or
development and what type of skills or knowledge they needto acquire.
Figure 11.4Source:
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Types of Training
Classroom InstructionEmployees acquire skills in a classroom setting.
Includes use of videos, role-playing, and simulations.
On-the-Job Training
Employee learning occurs in the work setting asnew worker does the job.
Training is given by co-workers and can be done
continuously to update the skills of current employees.
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Types of Development
Varied Work ExperiencesTop managers have need to and must build
expertise in many areas.
Employees identified as possible top managers are
assigned different tasks and a variety of positions inan organization.
Formal Education
Tuition reimbursement is common for managers
taking classes for MBA or job-related degrees.
Long-distance learning can also be used to reduce
travel and other expenses for managerial training.
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Performance Appraisal and Feedback
Performance AppraisalThe evaluation of employees job performance and
contributions to their organization.
Performance Feedback
The process through which managers shareperformance appraisal information, givesubordinates and opportunity to reflect on theirown performance, and develop, with subordinates,
plans for the future.
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Performance Appraisal and Feedback
Trait AppraisalsAssessing subordinates on personal characteristics
that are relevant to job performance.
Disadvantages of trait appraisals
Employees with a particular trait may choose not to
use that particular trait on the job.
Traits and performance are not always obviously
linked
It is difficult to give feedback on traits.
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Performance Appraisal and Feedback
Behavior AppraisalsAssesses how workers perform their jobsthe
actual actions and behaviors that exhibit on the job.
Focuses on what a worker does right and wrong
and provides good feedback for employees tochange their behaviors.
Results appraisals
Assesses what a worker accomplishes or the resultsthey obtain from performing their jobs.
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Performance Appraisal and Feedback
Objective appraisalsAssesses performance based on facts (e.g., sales
figures).
Subjective appraisals
Assessments based on a managers perceptions oftraits, behavior, or results.
Graphic rating scales
Behaviorally anchored rating scales (BARS) Behavior observation scales (BOS)
Forced ranking systems
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Subject Measures of Performance:Graphic Rating Scale
Figure 11.5a
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Subject Measures of Performance:Behaviorally Anchored Rating Scale (BARS)
Figure 11.5b
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Subject Measures of Performance:Behavioral Observation Scale (BOS)
Figure 11.5c
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Who Appraises Performance?
SelfSelf appraisals can supplement manager view.
Peer appraisal
Coworkers provide appraisal; common in teamsettings.
360 Degree
A performance appraisal by peers, subordinates,
superiors, and clients who are in a position toevaluate a managers performance
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Effective Performance Feedback
Formal appraisalsAn appraisal conducted at a set time during the
year and based on performance dimensions thatwere specified in advance
Informal appraisalsAn unscheduled appraisal of ongoing progress and
areas for improvement
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Effective Feedback Tips
Be specific and focus on correctable behavior.Provide a suggested improvement.
Focus on problem-solving and improvement,
not criticism.
Express confidence in workers ability to
improve.
Use both formal and informal feedback.
Treat subordinates with respect and praise
achievements.
Set a timetable for agreed changes.
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Pay and Benefits
Pay levelThe relative position of an organizations incentives
in comparison with those of other firms in the sameindustry employing similar kinds of workers
Managers can decide to offer low, average or highrelative wages.
High wages attract and retain high performers but
raise costs; low wages can cause turnover and lack
of motivation but provide lower costs.
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Pay and Benefits (contd)
Pay StructureThe arrangement of jobs into categories based on
their relative importance to the organization and itsgoals, level of skills, and other characteristics.
BenefitsLegally required: social security, workers
compensation
Voluntary: health insurance, retirement, day care
Cafeteria-style benefits plans allow employees tochoose the best mix of benefits for them; can behard to manage.
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Labor Relations
Labor RelationsThe activities managers engage in to ensure they
have effective working relationships with the laborunions that represent their employees interests.
Laws regulating areas of employment. Fair Labor Standards Act (1938) prohibits child labor,
sets a minimum wage and maximum working hours.
Equal Pay Act (1963) men and women doing equal
work will get equal pay. Work Place Safety (1970) OSHA mandates
procedures for safe working conditions.
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Unions
UnionsRepresent workers interests to management in
organizations.
The power that managers has over an individual
worker causes workers to join together in unions totry to prevent this.
Unions are permitted by the National Labor Relations
Act (1935) which also created the NLRB to oversee
the relationship between employers and unions. Not all workers want unions. Union membership costs
money in dues and workers might not want to strike.
Union membership is lower today than 40 years ago.
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Unions (contd)
Collective bargainingNegotiation between labor and management to
resolve conflicts and disputes about issues such asworking hours, wages, benefits, working conditions,
and job security.The process that unions and management go
through to negotiate work agreements that areincluded in a contract which spells out agreed-upon
terms such as the grievance procedure for resolvingdifferences between the union and managementover managements administration of the contract.