Hrm & Efective Workforce

Human Resource ManagementCHAPTER 120

Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.

*Learning ObjectivesExplain the role of human resource management in organizational strategic planning.Describe federal legislation and societal trends that influence human resource management.Explain what the changing social contract between organizations and employees means for workers and human resource managers.Show how organizations determine their future staffing needs through human resource planning.0


*Learning Objectives (contd.)Describe the tools managers use to recruit and select employees.Describe how organizations develop an effective workforce through training and performance appraisal.Explain how organizations maintain a workforce through the administration of wages and salaries, benefits, and terminations.0


*The Strategic Role of Human Resource ManagementAll managersare resourcemanagersEmployees areviewed as assetsMatching process,integrating theorganizationsgoals withemployees needsHow a company manages its workforce may be single more important factor in sustained competitive success0


*Current Strategic IssuesBecoming more competitive globallyImproving quality, productivity, & customer serviceManaging mergers & acquisitionsApplying new information technology for e-businessDetermine a companys need for skills and employees0


*Strategic Human Resource Management GoalsCompany StrategyHRM EnvironmentLegislationTrends in societyInternational eventsChanging technologyExhibit 12.10


*Environmental Influences on HRMCompetitive StrategyBuilding Human CapitalGlobalizationInformation TechnologyFederal Legislation0


*Globalization

IHRM = addresses the complexity that results from recruiting, selecting, developing, and maintaining a diverse workforce on a global scale

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*Information TechnologyHuman resource information technology = an integrated computer system designed to provide data and information used in HR planning and decision makingTraditional HR to e-HR significantly affected every area of human resource managementSome organizations are close to a paperless HRM system saves time, money, frees staff0


*Federal LegislationDiscrimination = hiring or promoting of applicants based on criteria that are not job relevantAffirmative action = policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups0


*Major Federal Laws - HRMEqual Opportunity/Discrimination LawsCompensation/Benefits LawsHealth/Safety LawsExhibit 12.30


*The Changing Social ContractNew ContractOld ContractEmployeeEmployerEmployability, personal responsibility Partner in business improvement LearningJob security A cog in the machine Knowing Continuous learning, lateral career movement, incentive compensation Creative development opportunities Challenging assignments Information and resourcesTraditional compensation package Standard training program Routine jobs Limited informationSOURCE: Based on Louisa Wah, The New Workplace Paradox Management Review, January 1998,7; and Douglas T. Hall and Jonathan B. Moss, The New Protean Career Contract: Helping Organizations and Employees Adapt, Organizational Dynamics, winter 1998, 22-37.Exhibit 12.40


*HR Issues in the New WorkplaceEmployer of choiceTeams and ProjectsTemporary EmployeesTechnologyWork-Life BalanceDownsizing

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*HR Issues in the New WorkplaceAn employer of choice is a company that is highly attractive to potential employees because its human resource practices focus on bothTangible benefits andIntangible benefitsEmployer of Choice0


*HR Issues in the New WorkplaceTeams and Projects major trend in todays workplaceWith emphasis on projects, distinctions between job categories and descriptions are collapsingMany of todays workers straddle functional & departmental boundaries; handle multiple tasks/responsibilitiesVirtual team = made up of members who are geographically or organizationally dispersed,rarely meet face to face, and do their work using advance information technologies.Teams and Projects0


*HR Issues in the New WorkplaceIn opening years of the 21st century, largest employer in U.S. was a temporary employment agency, Manpower, Inc.Temporary Employees do everything from data entry to interim CEOContingent workers = people who work for an organization, but not on a permanent or full-time basis, including temporary placements, contracted professionals, or leased employeesTemporary Employees0


*HR Issues in the New WorkplaceTelecommuting and virtual teams are related trendsTelecommuting = using computers and telecommunications equipment to perform work from home or another remote locationWork anywhere - wireless Internet devices, laptops, cell phones, fax machinesExtreme telecommuting = people live nd work in countries far away from the organizations physical location

Technology0


*HR Issues in the New WorkplaceTelecommuting is one way organizations help employees lead more balanced livesFlexible scheduling important in todays workplace 27% of workforce/flexible hoursBroad Work-Life Balance initiatives critical retention strategy on-site gym & childcare, paid leaves & sabbaticalsWork-Life BalanceMany European companies ahead of U.S. companies0


*HR Issues in the New WorkplaceDownsizing = intentional, planned reduction in the size of a companys workforceManagers can smooth the downsizing processRegularly communicating with employeesProviding them with as much information as possibleProviding assistance to workers who will lose their jobsUsing training and development for remaining employees Downsizing0


*HR Issues in Attracting an Effective WorkforceHR issues present many challenges for organizations and HR managers as they work toward the three primary HR goalsAttractingDevelopingMaintaining an effective workforce0


*Matching ModelAn employee selection approach in which the organization and the applicant attempt to match each others needs, interests, and valuesAttracting an Effective Workforce0


*Attracting an Effective WorkforceChoose RecruitingSourcesWant adsHeadhuntersInternetHR PlanningRetirementsGrowthResignationsSelect theCandidateApplicationInterviewTestsWelcome NewEmployeeEmployee ContributionsAbilityEducationCreativityCommitmentExpertiseCompany InducementsPay and benefitsMeaningful workAdvancementTrainingChallengeMatching ModelMatch withCompany NeedsStrategic goalsCurrent & future competenciesMarket changesEmployee turnoverCorporate cultureEmployee NeedsStage of careerPersonal valuesPromotion aspirationsOutside interestsFamily concernsMatch withExhibit 12.50


*Human Resource PlanningForecasting of human resource needs and the projected matching of individuals with expected vacancies? = New technologies emerging? = Volume of business likely next 5-10 years? = Turnover rate, how much is avoidable, if any

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*RecruitingRecruiting = activities or practices that define the desired characteristics of applicants for specific jobsInternal promote-from-within policies used by many to fill high-level positionsExternal = recruiting newcomers from outside has advantage of multiple sources E-cruiting = use of Internet - fastest-growing approach to recruiting 0


*Basic Building Blocks of HR ManagementJob AnalysisJob DescriptionJob Specification0


*SelectingSelection = process of determining the skills, abilities, and other attributes a person needs to perform a particular jobValidity = relationship between an applicants score on a selection device and his or her future job performance

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*Selecting (contd.)Application form - device used for collecting information about an applicants education, previous job experience, and other background characteristicsResearch = biographical information inventories can validly predict future job success0


*Interviewing An ApplicantKnow what you wantPrepare a road mapUse open-ended questionsDo not ask irrelevant questionsDo not rush interviewDo not rely on your memory0


*Reasons For Not Asking About Home OwnershipMight adversely affect applicants chances at the jobMinorities and women may be less likely to own a homeHome ownership is probably unrelated to job performance0


*Interview as Predictor of SuccessInterview is not generally a valid predictor of job performance has high face validity as a selection toolPanel interviews candidate meets with several interviewers who take turns asking questions increases interview validityComputer-based interviews - complement traditional interviewing information0


*Inappropriate or Illegal QuestionsRace-related questionsAgeReligionGenderNational originMarital/family statusEmployment Applications and Interviews0


*Testing and AssessmentEmployment Test = written or computer-based test designed to measure a particular attribute such as intelligence or aptitudeAssessment Center = technique for selecting individuals with high managerial potential based on their performances on a series of simulated managerial tasks0


*Developing an Effective WorkforceTraining and development = planned effort to facilitate employees learning of job-related skills and behaviors $ 51.1 billion spent in 2005On-the-job training = an experienced employee adopts a new employee to teach him or her how to perform job dutiesCross trainingMentoringFollowing selection, next goal of HRM is to develop employees0


*Performance AppraisalProcess of observing and evaluating an employees performance, recording the assessment, and providing feedback to the employeeStepsObserving and assessing performanceRecording the assessmentProviding feedback to employee0


*Making Performance Appraisals A Positive ForceThe accurate assessment of performance through the development and application of assessment systems such as a rating scaleTraining managers to effectively use the performance appraisal interview to provide feedback that reinforces good performance and motivate employee development0


*Assessing Performance Accurately360 Feedback ProcessPerformance Evaluation ErrorsStereotypingHalo effectBARS Behaviorally-anchored rating scale

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*Maintaining an Effective WorkforceCompensationWage and Salary SystemsCompensation EquityPay for PerformanceBenefitsTermination0


*Termination Employees who are poor performers can be dismissed Employers can use exit interviews in a positive mannerValue of termination for maintaining an effective workforce is two fold0

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