Chapter 12
Managing Human Resources
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Learning Outcomes:
1. Understand how managing human resources well contributes to the success of the organization.
2. Discuss the tasks associated with identifying and selecting competent employees.
3. Explain the different types of orientation and training.
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Learning Outcomes:
4. Describe strategies for retaining competent, high-performing employees.
5. Discuss contemporary issues in managing human resources.
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The Human Resource Management Process
Why Human Resources Management is Important
• A necessary part of the organizing function of management Selecting, training, and evaluating the workforce.
• An important strategic tool HRM helps establish an organization’s sustainable competitive
advantage.
• Adds value to the firm High performance work practices lead to both high individual and high
organizational performance.
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The Human Resource Management Process
High-performance work practices:
Work practices that lead to both high individual and high organizational performance.
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Exhibit 12-1 Examples of High-Performance Work Practices
• Self-managed teams• Decentralized decision making• Training programs to develop knowledge, skills, and
abilities• Flexible job assignments• Open communication• Performance-based compensation• Staffing based on person–job and person–organization
fit
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Source: Based on W. R. Evans and W. D. Davis, “High-Performance Work Systems and Organizational Performance: The Mediating Role of Internal Social Structure,” Journal of Management, October 2005, p. 760.
Exhibit 12-2 The Human Resources Management Process
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Environment
Environment
Decruitment
RecruitmentHumanResourcePlanning
Selection
Orientation Training
PerformanceManagement
CareerDevelopment
CompensationandBenefits
Identification and Selectionof Competent Employees
Adapted and competentemployees with up-to-dateskills and knowledge
Competent and high-performing employees whoare capable of sustaining high performance over
the long term
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The Human Resource Management Process
External Factors That Affect the HRM Process
Labour Union• An organization that represents workers and seeks to
protect their interests through collective bargaining.
Collective Bargaining Agreement• A contractual agreement between an organization and a
union, covering:Wage, hours, and working conditions
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The Human Resource Management Process
Legislation Affecting Workplace Conditions
Canada Labour Code Occupational Health and Safety Act Workplace Hazardous Materials Information System
(WHMIS) Employment standards legislation
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The Human Resource Management Process
• Antidiscrimination Legislation The Charter of Rights and Freedoms and the Canadian
Human Rights Act The Employment Equity Act
• Demographic Trends Shortages of skilled workers More educated workforce Greater diversity in the labour market
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Human Resources (HR) Planning
• The process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks
• Helps avoid sudden talent shortages and surpluses• Steps in HR planning:
Assessing current human resourcesAssessing future needs for human resources and developing a
program to meet those future needs
Identifying and Selecting Competent Employees
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Human Resources Inventory
• A review of the current makeup of the organization’s resources status
• HR Management Information Systems (HRMIS)Tracks employee information for policy and
strategic needs
Identifying and Selecting Competent Employees
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Job Analysis:
An assessment that defines a job and the behaviours necessary to perform the job including knowledge, skills, and abilities.
• Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers
Identifying and Selecting Competent Employees
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Identifying and Selecting Competent Employees
Job Description:
A written statement of what the jobholder does, how it is done, and why it is done.
Job Specification:
A written statement of the minimum qualifications that a person must possess to perform a given job successfully.
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Identifying and Selecting Competent Employees
Recruitment:
The process of locating, identifying, and attracting capable applicants to an organization.
E-recruiting:
Recruitment of employees through the InternetOrganizational web sitesOnline recruiters
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Exhibit 12-4 Major Sources of Potential Job Candidates
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Identifying and Selecting Competent Employees
Decruitment:
The process of reducing a surplus of employees in the workforce of an organization.
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Exhibit 12-5 Decruitment Options
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Identifying and Selecting Competent Employees
Selection Process:
The process of screening job applicants to ensure that the most appropriate candidates are hired.
Selection:
• An exercise in predicting which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance.
• Selection errors: Reject errors for potentially successful applicants Accept errors for ultimately poor performers
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Validity (of Prediction):
A proven relationship between the selection device used and some relevant criterion for successful performance in an organization.
High test scores equate to high job performance; low scores to poor performance.
Identifying and Selecting Competent Employees
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Reliability (of Prediction):
The degree of consistency with which a selection device measures the same thing
Individual test scores obtained with a selection device are consistent over multiple testing instances
Identifying and Selecting Competent Employees
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Identifying and Selecting Competent Employees
Types of Selection Devices
• Application Forms• Written Tests• Performance Simulations• Interviews• Background Investigations• Physical Examinations
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Exhibit 12-7 Selection Devices
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What works Best and When?
Realistic Job Preview (RJP):
The process of relating to an applicant both the positive and the negative aspects of the job.
Encourages mismatched applicants to withdrawAligns successful applicants’ expectations with actual job
conditions, reducing turnover
Identifying and Selecting Competent Employees
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Identifying and Selecting Competent Employees
Tips for Managers: Some Suggestions for Interviewing
• Structure a fixed set of questions for all applicants.
• Have detailed information about the job for which applicants are interviewing.
• Minimize any prior knowledge of applicants’ background, experience, interests, test scores, or other characteristics.
Copyright © 2012 Pearson Education Canada Inc.
Source: Based on D.A. DeCenzo and S.P. Robbins, Human Resource Management, 7th ed. (New York, Wiley: 2002, p. 200)
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Identifying and Selecting Competent Employees
• Ask behavioural questions that require applicants to give detailed accounts of actual job behaviours.
• Use a standardized evaluation form.
• Take notes during the interview.
• Avoid short interviews that encourage premature decision making.
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Source: Based on D.A. DeCenzo and S.P. Robbins, Human Resource Management, 7th ed. (New York, Wiley: 2002, p. 200)
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Providing Employees with Needed Skills and Knowledge
Bringing a new employee into the organization
• Work-unit orientation
Familiarizes new employee with work-unit goalsClarifies how his or her job contributes to unit goalsIntroduces employee to his or her co-workers
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Providing Employees with Needed Skills and Knowledge
Organization Orientation:
Informs new employee about the organization’s objectives, history, philosophy, procedures, and rules
Includes a tour of the entire facility
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Exhibit 12-10 Employee Training Methods
Traditional Training Methods:
• On-the-job
• Job rotation
• Mentoring and coaching
• Experiential exercises
• Workbooks/manuals
• Classroom lectures
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Exhibit 12-10 Employee Training Methods
Technology-based Training Methods:
• CD-ROM/ DVD/videotapes/ audiotapes
• Videoconferencing/ teleconferencing/satellite TV
• E-learning or other interactive modules.
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Performance Management System:
A process establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions.
Retaining Competent and High Performance Employees
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Exhibit 12-11 Advantages and Disadvantages of Performance Appraisal Methods
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Employee Job Counselling:
A process designed to help employees overcome performance-related problems.
Discipline:
Actions taken by a manager to enforce an organization’s standards and regulations.
Retaining Competent and High Performance Employees
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What Happens When Performance Falls Short?
Retaining Competent and High Performance Employees
Benefits of a Fair, Effective, and Appropriate Compensation System
• Helps attract and retain high-performance employees• Impacts on the strategic performance of the firm
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Retaining Competent and High Performance Employees
Types of Compensation
• Base wage or salary• Wage and salary add-ons• Incentive payments• Skill-based pay
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Exhibit 12-12 Factors That Influence Compensation and Benefits
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Sources: Based on R.I. Henderson, Compensation Management, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1994), pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1
Level ofCompensationand Benefits
Employee’s Tenureand Performance
Size ofCompany
Kind ofJob Performed
CompanyProfitability
Kind ofBusiness
GeographicalLocation
Unionization
ManagementPhilosophy
Labour- orCapital-Intensive
How long has employeebeen with company and
how has he or she performed?
Does job requirehigh levels of skills?
What industry is job in?
Is business unionized?
Is business labour- orcapital-intensive?
How large is thecompany?
How profitable is thecompany?
Where is organizationlocated?
What is management’sphilosophy toward pay?
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Retaining Competent and High Performance Employees
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Skill-based Pay:
A pay system that rewards employees for the job skills and competencies they can demonstrate.
Tips for Managers:
Some Suggestions
for a Successful
Management Career
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Managing Workforce Diversity
• Recruitment for diversity• Selection without discrimination• Orientation and training that is effective
Contemporary Issues in Managing Human Resources
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Sexual Harassment
• An unwanted activity of a sexual nature that affects an individual’s employment
There continues to be disagreement as to what specifically constitutes sexual harassment.
• An offensive or hostile environment
An environment in which a person is affected by elements of a sexual nature
Contemporary Issues in Managing Human Resources
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Workplace Romances
• Common in today’s organizations, given mixed gender work teams and long working hours.
• Potentially troublesome – conflicts/sexual harassment• Necessarily to have some policy regarding workplace
romances
Contemporary Issues in Managing Human Resources
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Managing Work-Life Balance
Some examples of Work-Life Balance Issues:
Is it okay for someone to bring his baby to work because of an emergency crisis with normal child care arrangements?
Is it okay to expect an employee to work 60 or more hours a week?
Should an employee be given the day off to watch her child perform in a school event?
Contemporary Issues in Managing Human Resources
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Contemporary Issues in Managing Human Resources
Work-Life Balance• Employees have personal lives that they don’t leave behind
when they come to work.• Organizations have become more attuned to their employees
by offering family-friendly benefits:On-site child careSummer day campsFlextimeJob sharingLeave for personal mattersFlexible job hours
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Helping Survivors Respond to Downsizing
The planned elimination of jobs in an organization.
• Provide open and honest communication• Reassure survivors
Contemporary Issues in Managing Human Resources
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