HUMAN RESOURCE MANAGEMENTChapter 10

WHAT ARE THE PURPOSE AND LEGAL CONTEXT OF HUMAN RESOURCE MANAGEMENT? Human resource management attracts,

develops and maintains a talented workforce

Strategic human resource management aligns human capital with organizational strategies

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

Government legislation protects against employment discrimination

Job discrimination – someone is denied a job or job assignment for non-job relevant reasons

Equal Employment Opportunity (EEO) – the right to employment advancement without regard to race, sex, religion, color or national origin.

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

Laws can’t guarantee that employee discrimination won’t happen

Employee privacy – right to privacy on and off the job

Pay discrimination – occurs when women and men are paid differently for doing equal work

Pregnancy discrimination – penalizes a woman on the job or as a job applicant for being pregnant

Age discrimination – penalizes an employee in a job or as a job applicant for being over the age of 40

WHAT ARE THE ESSENTIAL HUMAN RESOURCE MANAGEMENT PRACTICES?

Person-job fit – match of individual skills, interests an personal characteristics with the job

Person-organization fit – is the match of individual values, interests and behavior with the organizational culture

Recruitment attracts qualified job applicants Recruitment – a set of activities designed to

attracts a qualified pool of applicants Realistic job previews – provide job

candidates with all pertinent information about a job and organization

Selection makes decisions to hire qualified job applicants

Selection – choosing whom to hire from a pool of qualified job applicants

Reliability – a selection device gives consistent results over repeated measures

Validity – the scores on a selection device have demonstrated links on job performance

Assessment center – examines how job candidates handle simulated work situations

Work sampling – evaluates applicants as they perform actual work talents

Socialization and organization integrate new employees into the organization

Socialization – systematically influences the expectations, behavior and attitudes of new employees

Orientation – familiarizes new employees with jobs, co-workers and organizational policies and services

Training continually develops employee skills and capabilities

Coaching – occurs as an experienced person offers performance advice to a less experienced person

Mentoring – assigns early-career employees as protégés to more senior ones

Reverse Mentoring – younger and newly-hired employees mentor senior executives often on latest developments with digital technologies

Performance management appraises and rewards accomplishments

Performance appraisal – process of formally evaluating performance and providing feedback to a job holder

Graphic rating scale – uses a checklist of traits or characteristics to evaluate performance

Behavior-anchored rating scale (BARS) – uses specific descriptions of actual behaviors to rate various levels of performance

Critical-incident technique – keeps a log of someone’s effective and ineffective job behaviors

360⁰ feedback – includes superiors, subordinates, peers and even customers in the appraisal process

Multiperson comparison – compares one person’s performance with that of others

Retention and career development provide career paths

Career development – process of managing how a person grows and progresses in a career

Career planning – process of matching career goals and individual capabilities with opportunities for their fulfillment

WHAT ARE THE CURRENT ISSUES IN HUMAN RESOURCE MANAGEMENT?

Today’s lifestyle increases demands for flexibly and work-life balance

Work-life balance - involves balancing career demands with personal and family needs

Organizations are using more independent contractors and party-time workers

Independent contractors – hired on temporary contracts and are not part of the organization’s permanent workforce

Contingency workers – work as needed and part-time, often on a longer-time basis

Compensation plans influence employee recruitment and retention

Merit pay – awards pay increases in proportion to performance contributions

Bonus pay – plans provide one-time payments based on performance accomplishments

Profit-sharing – distributes to employees a proportion of net profits earned by the organization

Gain sharing – allows employees to share in cost savings or productivity gains realized by their efforts

Stock options – give the right to purchase shares at a fixed price in the future

Fringe Benefits are an important part of employee compensation packages

Fringe benefits – non-monetary forms of compensation such as health insurance and retirement plans

Family-friendly benefits – help employees achieve better work-life balance

Flexible benefits – programs allow choice to personalize benefits within a set dollar allowance

Employee assistance programs – helps employees cope with personal stresses and problems

Labor relations and collective bargaining are closely governed by law

Labor union – an organization that deals with employers on the workers’ collective behalf

Labor contract – formal agreement between a union and an employer about the terms of work for union members

Collective bargaining – the process of negotiating, administering and interpreting a labor contract

Two-tie wager systems – pay new hires less than the workers already doing the same jobs with more seniority