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MGT 350 Chapter 7: Managing Human Resources
Terms in this set (60)
Human Resources Management
The management function concerned with getting, training, and motivating, and keeping competent employees
8 Human Resource Management Activities
1. Strategic Human resource planning
2. Recruitment and Downsizing
5. Training and Development
6. Performance Management
7. Compensation and Benefits
8. Safety and Health
Exhibit 7-1 p. 184
the addition of staff through recruitment, the reduction of staff through downsizing, and selection. These steps lead to the identification and selection of competent, talented employees who can assist an organization in achieving its strategic goals.
orientation and training
helps new hires adapt to the organization and ensures that their job skills and knowledge are kept current.
performance appraisal, compensation, and benefits
help identify performance goals, correct performance problems, and help employees sustain a high level of performance over their worklife
Legal Environment of HRM
The legal environment is an EXTERNAL source that affects HRM
HRM practices are governed by laws which vary from country to country. State and local regs provide further guidance.
HRM laws are different across the glob
Primary US Laws affecting HRM
++See Exhibit 7-2 p. 185
Equal Employment Opportunity (EEO)
ensures that anyone has equal opportunity based on his or her qualifications.
Affirmative action programs
Programs that ensure that decisions and practices enhance the employment, upgrading, and retention of members of protected groups such as minorities and females.
Industrial -organizational psychology: defined as the scientific study of the workplace. Scientific principles and research-based designs are used to generate knowledge about workplace issues. Topics are studied like job performance, job analysis, performance appraisal, compensation, work/life balance, work sample tests, employee training, employment law, etc...
This research has contributed to much of what we know about HRM
- Hugo Munsterberg is credited with creating the field.
HRM Laws across the globe differ
see p. 186-187 for different countries:
The process by which managers ensure that they have the right number and kinds of people in the right places at the right times, people who are capable of effectively and efficiently completing those tasks that will help the organization achieve its goals.
The process can be condensed into 2 steps:
1). Assessing current human resources and future human resource needs
2). Developing a plan to meet those needs
Review current human resource status through:
+ human resource inventory
+ job analysis
Human resource inventory
A report listing important information about employees such as name, education, training, skills, languages spoken, and so on..
tells management what individual employees can do
An assessment that defines jobs and the behaviors necessary to perform them.
Ultimately used to determine the kinds of skills, knowledge, and attitudes needed to successfully perform each job.
A lengthy process that analyzes workflows and the skills and behaviors that are necessary to perform jobs are identified.
Ex: What does an international reporter that works for the Wall Street Journal do?
A written statement that describes the job -> what a job holder does, how it's done, and why it's done. Typically portrays job content, environment, and conditions of employment.
Important for when managers begin hiring. Can be used to describe the job to potential candidates.
States the minimum qualifications that a person must possess to perform a given job successfully. It focuses on the person and identifies the knowledge, skills, and attitudes needed to do the job effectively.
Important for when managers begin hiring. Helps manager determine whether candidates are qualified by keeping the manager's attention on the list of qualifications necessary.
Determining HR requirements
In most cases, the overall organizational goals and the resulting revenue forecast provide the major input in determining the organization's HR requirements.
Also demand for employees (human resources) is a result of demand for the organization's products and services.
After assessing current capabilities and future needs, managers can determine if they need more or less people.
Used when vacancies exist. The process of locating, identifying, and attracting capable clients.
+Pros: Low cost, builds emplyee morale; candidates familiar with org
+Cons: limited supply, may not increase proportion of protected group employees
+Pros: Wide distribution can be targeted to specific groups
+Cons: Generates many unqualified candidates
EMPLOYEE REFERRALS **
Produces Best Candidates
+Pros: Knowledge about the organization provided by current employees; can generate strong candidates because a good referral reflects on recommender
+Cons: May not increase diversity and mix of employees
PUBLIC EMPLOYMENT AGENCIES
+Pros: Free or nominal cost
+Cons: Candidates tend to be lower skilled, although some skilled employees available
PRIVATE EMPLOYMENT AGENCIES
+Pros: Wide contacts; careful screening; short-term guarantees often given
+Cons: High cost
+Pros: Large, centralized body of candidates
+Cons: Limited to entry-level positions
TEMPORARY HELP SERVICES
+Pros: Fill temporary needs
EMPLOYEE LEASING AND INDEPENDENT CONTRACTORS
+Pros: Fill temporary needs but usually for more specific, longer-term projects
+Cons: Little commitment to an organization other than current project
- Permanent involuntary termination
- Temporary involuntary termination; may last only a few days or extend to years
- Not filling openings created by voluntary resignations or normal retirements
- Moving employees either laterally or downward; usually does not reduce costs but can reduce intra-organizational supply-demand imbalances
- Having employees work fewer hours per week, share jobs, or through furloughs perform their jobs on a part-time basis.
- Provide incentives to older and more-senior employees for retiring before their normal retirement date
- Having employees, typically two part-timers, share one full-time position
Screening job applicants to ensure that the most appropriate candidate is hired.
Once the recruiting efforts have developed a pool of applicants, the next step is to select someone.
4 Possible outcomes of the selection process
1. Successfully accepted - when the applicant who was predicted to be successful was later proved to be successful on the job
2. Successfully rejected - when the applicant who was predicted to be unsuccessful and if hired would not have been able to do the job.
3. Accept error - Accepting an applicant who later turned out to be a bad choice
4. Reject error - rejecting an applicant who would have performed the job well.
Addresses whether a selection device measures the same characteristic consistently.
To be effective predictors, selection devices must possess an acceptable level of consistency
Validity is based on a proven relationship between the selection device used and some relevant measure.
An selection device that a manager uses- such as application forms, tests, interviews, or physical examinations- must also demonstrate validity.
Selection devices used to reduce accept and reject erros
include tests of intelligence, aptitude, ability, and interest.
Research shows that tests of intellectual ability, spatial and mechanical ability, perceptual accuracy, and motor ability are moderately valid predictors for many semiskilled and unskilled operative jobs in an industrial organization.
Criticism - A high score on an intelligence test does not necessarily indicate that the applicant will perform well in a certain position.
Made up of actual job behaviors rather than substitutes. The best-known performance-simulation tests are WORK SAMPLING ( a miniature replica of the job) and ASSESSMENT CENTERS (simulating real problems one may face on the job)
WORK SAMPLING - a miniature replica of the job. Suited to persons applying to routine jobs
ASSESSMENT CENTERS - simulate real problems one may face on the job. Suited for managerial personnel.
Can be reliable and valid selection tools, but not always.
To be effective predictors, should be:
+ well organized
+ interviewers should ask relevant questions
Behavior or situational interview
In this type of interview, applicants are observed not only for what they say, but also how they behave. Applicants are presented with situations - often complex problems involving role playing - and are asked to "deal" with the situation.
May better indicate an applicant's potential performance
Things that can happen if a company "inflates" the positive aspects of the company
1) Mismatched applicants are less likely to withdraw from the search process
2) Because inflated information builds unrealistic expectations, new employees are likely to become quickly dissatisfied and to resign prematurely
3) New hires are prone to become disillusioned and less committed to the organization when they face the unexpected harsh realities of the job.
4) Often, individuals feel that they were misled during the hiring process and may become problem employees.
Realistic job preview (RJP)
To increase job satisfaction among employees and reduce turnover, managers should consider RJP. RJP includes both positive and negative information about the job and the company.
When applicants are given a realistic job preview they can better cope with the frustrating elements of the job.
p. 193 - 194
Introducing new employees to the job and the organization.
Major goals of orientation:
+ reduce initial anxiety
+ familiarize new employees with the job, the work unit and the organization as a whole
+ facilitate the outsider-insider transition
(1) Expands on the information the employee obtained during the recruitment and selection stages
(2) Clarifies the new employee's specific duties and responsibilities as well as how his or her performance will be evaluated
(3) Corrects any unrealistic expectations new employees might hold about the job
Work Unit Orientation
(1) Familiarizes employee with goals of the work unit
(2) Clarifies how her job contributes to the unit's goals
(3) Provides and introduction to her coworkers
(1) Informs the new employee about the organization's goals, history, philosophy, procedures, and rules
(2) Clarifies relevant HR policies such as work hours, pay procedures, overtime requirements, and benefits; and
(3) May include a tour of the org's facilities
A learning experience that seeks a relatively permanent change in employees by improving their ability to perform on the job. Involves changing skills, knowledge, or behavior.
This change may involve what they know, how they work, or their attitudes toward their jobs, coworkers, managers, and the organization.
Signals that can warn a manager that training is needed
+ Decreased production numbers
+ Lower quality
+ More accidents
+ Higher scrap/rejection rates
+ Job redesign
+ New technology
Typical Training Methods
a) Job rotation:
Lateral transfers allow employees to work at different jobs. Provides good exposure to a variety of tasks
b) Understudy assignments:
Working with a seasoned veteran, coach, or mentor. Provides support and encouragement from an experienced worker. In the trades industry, this may be an apprenticeship.
OFF-THE JOB TRAINING
a) Classroom lectures:
Lectures designed to convey specific technical, interpersonal, or problem solving skills
b) Films and videos:
Uses media to explicitly demonstrate technical skills that are not easily presented by other training methods.
c) Simulation exercises
Learning a job by actually performing the work (or it's simulation). May include case analyses, experiential exercises, role-playing, and group interaction
d) Vestibule training
Learning tasks on the same equipment that one will actually sue on the job, but in a simulated work environment.
Ask workers their opinions about the training program,
evaluate training in how much the participants learned (how well are they using new skills on the job), and if the training program achieved its desired results (ex: was turnover reduced, customer service increase?)
The planned elimination of jobs in an organization.
Tips for managing downsizing
_ Communicate openly and honestly
= inform those being let go as soon as possible
= tell surviving employees the new goals/expectations
= explain impact of layoffs
_ Follow any laws regulating severance pay or benefits
_ Provide support/counseling for surviving employees
_ Reassign roles according to individual's talents/background
_ Focus on boosting morale:
= Offer individualized reassurance
= Continue to communicate, especially one-on-one
= Remain involved and available
Lay-off survivor sickness
A set of attitudes, perceptions, and behaviors of employees who survive involuntary staff reductions. Symptoms include job insecurity, perceptions of unfairness, guilt, depression, stress from increased workload, fear of change, loss of loyalty and commitment, reduced effort, and an unwillingness to do anything beyond the required minimum.
Increasing workforce diversity
+Widen recruiting net
+ Use non-traditional recruiting sources --> Women's job networks, over-50 clubs, urban job banks, disabled people's training centers, ethnic newspapers, gay rights orgs.
Any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual's employment, performance, or work environment
A spiritual culture where organizational values promote a sense of purpose through meaningful work that takes place in the context of community
p. 205 - 206
Characteristics of a spiritual organization
1. Strong sense of purpose - members know why the org exists and what it values
2. Focus on individual development - employees are valuable and need to be nurtured to help them grow. A sense of job security
3. Trust and openness - member relationships are characterized by trust, honesty, and openness
4. Employee empowerment - employees allowed to make decisions that affect them
5. Tolerance of employee expression - employees encouraged to be themselves and to express moods/feelings without fear
Health Care Costs
Biggest health care cost is obesity
Pension Plan costs
Another area where orgs are looking to control costs.
Have become too costly, an enormous burden
Many companies no longer provide pensions
2 Ways Organizations keep Great People (insert)
Pages 198 -202
1. Performance Management System
2. Compensating Employees
Performance management system
A system that establishes performance standards that are used to evaluate employee performance
- Desired employee performance levels determined by organizations
- Actual employee performance levels measured/appraised by managers
Specific Performance Appraisal Methods
Adjective rating scale
An appraisal device that seeks feedback from a variety or sources for the person being rated
- feedback from full circle of those who interact with employee.
3 Approaches to multiperson comparison
1. Group-order Ranking
Evaluator places employees into a particular classification (top fifth, second-fifth, etc, or top-third, middle third, etc.) Number of employees placed in each classification must be as equal as possible
2. Individual Ranking approach
Evaluator lists employees in order from highest to lowest performance levels. Note: Only one can be the "best." In the appraisal of whatever number of employees, the difference between first and second is the same as that between any other two employees. No "ties" allowed.
3. Paired Comparison Approach
Each employee is compared with every other employee in the comparison group and rated as either the superior or weaker member of the pair.
Note: Each employee is assigned a summary ranking based on the number of superior scores she achieved. Each employee is compared against every other employee - an arduous task when assessing a large # of employees
a process designed to help employees overcome performance-related problems
Actions taken by a manager to enforce and organization's standards and regulations
a pay system that rewards employees for the job skills they demonstrate
Pay is based on performance
Reasons an employee's performance is not up to par
Job mismatch (hiring error) --> reassign to better matched job
Inadequate training -->provide more training
Lack of desire to do job (discipline problem) --> Try employee counseling - or take disciplinary action
What effective and appropriate compensation will do:
Attract and retain competent and talented people
Impact strategic performance
Keep employees motivated
Membership-based rewards designed to enrich employees lives.
Non-cash compensation from employers.
legally required - Social security, unemployment compensation
Not req'd - paid time off from work, life and disability insurance, retirement programs, (health insurance?)
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