Management 11e John Schermerhorn

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


Study Question 1: What is strategic human resource management?

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 individuals values, interests, and

behavior are consistent with the culture of the organization



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



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


Figure 12.2 Steps in strategic human resource planning



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





Selection Choosing from a pool of

applicants the person or persons who offer the greatest performance potential



Selection process


Figure 12.3 Steps in the selection process: the case of a rejected job applicant



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


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


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



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 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


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 12.4 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

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


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


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



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

And Paid time offManagement 11e Chapter 12 28


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



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


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




The traditional adversarial view of labor-management relations


Chapter 12 Case

Netflix: Making Movie Magic

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