Management 11e John Schermerhorn

Management 11e John Schermerhorn

Chapter 12Chapter 12Human Resource Human Resource

ManagementManagement

Planning Ahead — Chapter 12 Study Questions

1. What is human resource management?

2. How do organizations attract a quality workforce?

3. How do organizations develop a quality workforce?

4. How do organizations maintain a quality workforce?

Management 11e Chapter 12 2

Study Question 1: What is human resource management?

Human capital is the economic value of people with job-relevant abilities, knowledge, ideas, energies and commitments



Human Resource Management is a process of attracting, developing, and maintaining a talented work force


Study Question 1: What is strategic human resource management?

Major human resource management responsibilities:



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



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



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


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


Figure 12.2 Steps in strategic human resource planning



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



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



Selection Choosing from a pool of

applicants the person or persons who offer the greatest performance potential



Selection process


Figure 12.3 Steps in the selection process: the case of a rejected job applicant



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



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



Employment Tests Biodata methods collect biographical

information that has been proven to correlate with good job performance along with other traits such as


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



Training Activities that provide the opportunity to

acquire and improve job-related skills



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



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


Figure 12.4 Sample behaviorally anchored rating scale for performance appraisal



Recency bias is the tendency for evaluators to focus on recent behaviors instead of behavior that occurred throughout the evaluation period



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



360° feedback Occurs when superiors, subordinates, peers,

and even internal and external customers are involved in the appraisal of a jobholder’s performance


Study Question 4: How do organizations maintain a quality workforce?

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



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



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



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 Paid time off



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



Early retirement Financial incentive offered to

employees who retire early

Termination Involuntary dismissal of an

employee



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


The traditional adversarial view of labor-management relations


Chapter 12 Case

Netflix: Making Movie Magic

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Management 11e John Schermerhorn

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