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 Resource Management is a process of attracting, developing, and maintaining a talented work force
Human capital is the economic value of people with job-relevant abilities, knowledge, ideas, energies and commitments
Management 11e Chapter 12 3
Study Question 1: What is strategic human resource management?
Major human resource management responsibilities:
Management 11e Chapter 12 4
Study Question 1: What is human resource management?
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
Management 11e Chapter 12 5
Study Question 1: What is human resource management?
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
6
Figure 12.1 A sample of U.S. laws against employment discrimination
Management 11e Chapter 12 7
Study Question 1: What is human resource management?
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 privacyManagement 11e Chapter 12 8
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
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
Management 11e Chapter 12 9
Figure 12.2 Steps in strategic human resource planning
Management 11e Chapter 12 10
Study Question 2: How do organizations attract a quality workforce?
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
Management 11e Chapter 12 11
Study Question 2: How do organizations attract a quality workforce?
Management 11e Chapter 12 12
Study Question 2: How do organizations attract a quality workforce?
Selection Choosing from a pool of
applicants the person or persons who offer the greatest performance potential
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Study Question 2: How do organizations attract a quality workforce?
Selection process
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Figure 12.3 Steps in the selection process: the case of a rejected job applicant
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Study Question 2: How do organizations attract a quality workforce?
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 situationsManagement 11e Chapter 12 16
Study Question 2: How do organizations attract a quality workforce?
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 Biodata methods collect biographical information that has been proven
to correlate with good job performance along with other traits such as
Management 11e Chapter 12 17
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
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Study Question 3: How do organizations develop a quality workforce?
Training Activities that provide the opportunity to
acquire and improve job-related skills
Management 11e Chapter 12 19
Study Question 3: How do organizations develop a quality workforce?
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 Management 11e Chapter 12 20
Study Question 3: How do organizations develop a quality workforce?
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
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Figure 12.4 Sample behaviorally anchored rating scale for performance appraisal
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Study Question 3: How do organizations develop a quality workforce?
Recency bias is the tendency for evaluators to focus on recent behaviors instead of behavior that occurred throughout the evaluation period
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Study Question 3: How do organizations develop a quality workforce?
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 distributionsManagement 11e Chapter 12 24
Study Question 3: How do organizations develop a quality workforce?
360° feedback Occurs when superiors, subordinates, peers, and even internal
and external customers are involved in the appraisal of a jobholder’s performance
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
Management 11e Chapter 12 25
Study Question 4: How do organizations maintain a quality workforce?
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
Management 11e Chapter 12 26
Study Question 4: How do organizations maintain a quality workforce?
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
Management 11e Chapter 12 27
Study Question 4: How do organizations maintain a quality workforce?
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
And Paid time offManagement 11e Chapter 12 28
Study Question 4: How do organizations maintain a quality workforce?
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
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Study Question 4: How do organizations maintain a quality workforce?
Early retirement Financial incentive offered to employees who retire
early Termination
Involuntary dismissal of an employee Labor-management relations
Labor unions deal with employers on the workers’ behalf
Collective bargaining Process of negotiating, administering and
interpreting a labor contractManagement 11e Chapter 12 30
Study Question 4: How do organizations maintain a quality workforce?
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
Management 11e Chapter 12 31
Study Question 4: How do organizations maintain a quality workforce?
Management 11e Chapter 12 32
The traditional adversarial view of labor-management relations
Management 11e Chapter 12 33
Chapter 12 Case
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