Chapter 13

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©2013 John Wiley & Sons, Inc. All rights reserved. 13-113-1©2013 John Wiley & Sons, Inc. All rights reserved.

JOHN R. SCHERMERHORN, JR.JOHN R. SCHERMERHORN, JR.

MANAGEMENTMANAGEMENT1212thth Edition Edition

Chapter 13Chapter 13

Human Resource Management


©2013 John Wiley & Sons, Inc. All rights reserved. 13-2

Planning Ahead — Chapter 13 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?



Chapter 13 Learning Dashboard

1. Human Resource Management1. Human resource management process2. Strategic human resource management3. Legal environment of human resource management

2. Attracting a Quality Workforce1. Human resource planning2. Recruiting techniques3. Selection techniques



Chapter 13 Learning Dashboard

3. Developing a Quality Workforce1. Orientation and socialization2. Training and development3. Performance management

4. Maintaining a Quality Workforce1. Flexibility and work-life balance2. Compensation and benefits3. Retention and turnover4. Labor-management relations



Takeaway 1: Human resource management

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

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




• 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 individual’s values, interests, and behavior

are consistent with the culture of the organization




• Strategic human resource management mobilizes human capital to implement organizational strategies

• Indicator that HRM is truly strategic: When it is headed by a senior executive reporting directly to the chief executive officer.




• Equal employment opportunity– The right to employment without regard to race,

color, national origin, religion, gender, age, or disability status

– Title VII of the Civil Rights Act of 1964– Equal Employment Opportunity Act of 1972– Civil Rights Act (EEOA) of 1991




• Affirmative action– an effort to give preference in employment to

women and minority group members, who have traditionally been underrepresented.

• Bona fide occupational qualifications– employment criteria justified by capacity to

perform a job




• Discrimination in employment– Occurs when someone is denied a job or job

assignment for reasons that are not job relevant



Figure 13.1 A sample of U.S. laws against employment discrimination




• Current legal issues in HRM– Sexual harassment– Equal pay and comparable worth– Legal status of independent contractors– Workplace privacy



Takeaway 2: Attracting a Quality Workforce

• Human resource planning analyzes an organization’s staffing needs and determines how to best fill them



Figure 13.2 Steps in strategic human resource planning




• The foundation of human resource planning is job analysis – the orderly study of job facets to determine what is done

when, where, how, why, and by whom.

• 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






Figure 13.3 Steps in the selection process: the case of a rejected job applicant

Selection:Choosing individuals to hire from a pool of qualified job applicants




• 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



Takeaway 3: Developing a Quality Workforce

• Socialization– a process of learning and adapting to the

organizational culture

• Orientation– familiarizes new employees with jobs, coworkers,

and organizational policies and services




• 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




• 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 13.4 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




• Leniency error:– the tendency for supervisors to rate employees more

favorably than they deserve in order to avoid the unpleasant task of giving negative feedback

• Multiperson comparisons– Formally compare one person’s performance with that of

one or more others – Types of multiperson comparisons:

• Rank ordering• Forced distributions




360° feedback– Occurs when superiors, subordinates,

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



Takeaway 4: Maintaining 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




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




– 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 – A labor contract is a formal agreement

between a union and an employer about the terms of work for union members

– Collective bargaining• Process of negotiating, administering and

interpreting a labor contract




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