STRAYER UNIVERSITY

APPLICATION OF HUMAN RESOURCE MANAGEMENT

A RESEARCH PAPER SUBMITTED TO PROFESSOR FLOR CHIRINO-KLEVANS ADVANCED HUMAN RESOURCE MANAGEMENT BUS 530 SUMMER 2006

BY LATALA COFIELD

SUMMER 2006

Abstract What is human resource management? Human resource management (HRM) involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organization (Fisher, Schoenfeldt, and Shaw, 7). In a sense, the new view of human resource management has been referred to as strategic human resource management. According to Fisher, Schoenfeldt, and Shaw, the business factors that contribute to the increased importance of human resources as a source of a firms strategic competitive advantages (45-46). In todays extremely competitive global market, the importance of HRM should not be undervalued. So is international human resource management (IHRM). Broadly defined, IHRM is the process of procuring, allocating, and effectively utilizing human resources in a multi-national corporation. When compared to the domestic HRM, IHRM requires a much broader perspective on even the most common HR activities. In todays market, there is a very small margin for error. In the twenty-first century, a lot of emphasis is being placed on having a good human resource management department. Human resource management no longer entails just employing people or drafting laws and policies, it is also about being able to respond quickly and proficient to the needs of customers and competitors movements. Understanding HRM and IHRM is important to me because I plan on being a human resource specialist in the near future. This paper will examine issues such as diversity, ethics, laws, job search, the interview process, reward systems, and much more. The purpose of this research paper is to explore the range of practices that defines human resource management and how it applies to my organizational objectives.

Strategy and Skills of Human Resource Managements The workforce in the USA is becoming increasingly more diverse in national origin, race, gender, age, and status (Carr-Ruffino, 1996). Altering workforce demographics are bringing changes to the 21st century workplace. According to Carnevale and Stone, along racial lines, statistics have shown that the relative percentage of whites in the American workforce is dropping, while the percentages of African-Americans, Hispanics, and Asians are rising (1995). Neck and Smith states that statistics have also shown that the percentages of women (relative to men) in the workplace is rising and is projected to be 47.4 percent of the workforce by the year 2005 (1997). Diversity is a subject that is often misunderstood. As the continuation of the workforce changes, the people management issues are also changing. The increasing diversity of the workforce is one of the supreme management issues challenging American organizations today. So, what is diversity? In general, diversity refers to the ways that people in the workforce contrast. Center Point for Leaders state that diversity has come to be a term for a broad, systematic approach addressing ongoing discrimination, but more importantly, the major demographic and technological changes that have occurred in the last decades (2006). The word diversity is also defined as one of many terms used to explain how people differ by gender, age, ethnicity, physical abilities, religious affiliation, and sexual orientation (Dixon, Friedrich, and OHair, 2005). Center Point for Leaders states that, thinking of diversity simply in terms of underrepresented, or minority, racial/ethics groups limits individual and group potential, and creates tensions and divisiveness (2006). Therefore, it is vital to understand the terminology of diversity because we are all affected by our own culture as well as by the cultures of others (Dixon, Friedrich, and OHair, 2005). In the global

economy businesses, managers, supervisors, and employees need to know how to communicate and conduct business with diverse people. Diversity applies to my current position because I deal with an array of diverse people everyday. In order to fully understand decisions and behaviors of diverse employees I must be aware that their purpose is to enhance and make a variety of viewpoints and skills that come with a widely varied work force to better serve a set of customers. As diversity continues to grow in the United States, it is important to be able to understand ethical policy and behaviors. The HR professionals play a major role in ensuring fair treatment and promoting ethical policies to the organization and the organization employees. According to MerriamWebster online, ethics are, the discipline dealing with what is good and bad and with moral duty and obligation, a set of moral principles: a theory or system of moral values (1). In fact, an organization by the name of SHRM (Society of Human Resource

Management) has recognized this by adopting a Code of Ethics to aid in the activities of the HR professionals. It is important to promote ethics and positive behavior within the organization because employees do not make ethical choices entirely on the basis of their preexisting values and ethical up-bringing, instead, they behave with a context that includes organizational training, role models, formal rules and policies, and appraisal and reward systems (Fisher, Schoenfeldt, and Shaw,20). This applies to my current position as an administrative assistant because as a professional, I have the sole responsibility to protect consumers and employees, especially in the acquisition of information while ensuring truthful and respectful communication. Ethics are a very important aspect in the work-force but in order to promote ethical policies, one must acknowledge the laws and regulations that influence them.

In June of 2001, Wal-Mart was involved in a law suit in which they were alleged of gender discrimination. Wal-Mart denied the allegations but was summoned by Judge Jenkins to pay back pay for wage differences, and lost earnings to those that were actually denied promotions, and for punitive damages. Wal-Mart has already begun to change their policies but they have a long way to go in order to provide fair treatment to all employees. How can organizations prevent this type of situation from happening? An organization should develop HR practices that are consistent with equal employment opportunity (EEO) laws and regulation. What is EEO? EEO is defined as being used to represent a collection of legal and social policies stating that members of U.S. society should have equal access to and treatment in employment (Fisher, Schoenfeldt, and Shaw, 179). According to Fisher, Schoenfeldt, and Shaw, job analysis became even more important in selection thanks to a variety of equal employment opportunity laws, including the American Disability Act (ADA) that went into effect in 1992 (141). But what laws are out there that covers safety and health regulations? In 1970 the Occupational Safety and Health Act was implemented. The purpose of this act was to centralize the regulation of workplace safety and to expand coverage to include all organization in the United States (Fisher, Schoenfeldt, and Shaw, 607). This act applies to my current position because it makes me aware of the legislation that has implemented to keep me safe. Also, if I feel that my health is in danger, I can contact OSHA and file a claim. It is important to understand laws and regulations that apply to employment, but it is also important to understand the fundamentals of job analysis for employee transitions. Employees may transition from one position or location to another within the organization. These moves can be unplanned or the results of a carefully planned career

path. Careers are important to employees and encourage them to continue to stay and upgrade their skills for the future. Movements can be upwards (promotion), lateral (different set of responsibilities or different functions at the same level), or downward (demotion). Another type of transition is an exit from the organization. Departures from the organization can be classified as voluntary (makes the decision to leave) or involuntary (termination). With the aging of cohorts, this is an vital issue for the work force to plan and manage. By understanding the strategy of employment transition, this will aid me with proper procedures when it comes to changing career paths, career planning, or voluntary exit. In order for an individual to be a candidate for a position in an ethical, diverse workplace, knowing what duties a job requires and what skills are needed to perform these duties is critical in setting up an appropriate selection system. Being able to determine the critical skills, knowledge, and experience necessary to perform a particular job offers considerable advantages not only to the employee but also to the organization. Job analysis is defined as obtaining information about jobs (Black and Gregersen, 140). Job analysis can also be defined as a purposeful, systematic process for collecting information on the important work-related aspect of a job. The uses of job analysis are to produce job descriptions and specifications, recruitment and selection, performance standards, and training and development. The importance of job analysis is to understand the required tasks and employee specifications needed on the job, to meet legal obligations, troubleshoot performance problems, and to design effective training programs. The basic job analysis process consists of ten steps that are grouped into four major phases. The four major phases are the 1) Scope of the job analysis, 2) Choosing among methods of job analysis, 3) Data collection and analysis, and 4) Assessing job analysis methods. This

strategy can be applied because I am in the process of applying for another position within the company and in order to prepare myself I must understand the job analysis process. By me understanding the four major phases of the job analysis process, this could give me an advantage when it comes to the recruitment process and personnel selection system. Recruiting is the process by which organizations locate and attract individuals to fill job vacancies (Fisher, Schoenfeldt, and Shaw, 232). A good recruiting program will attract a large pool of well qualified candidates, and should have beneficial spillover effects. A firm can generate both external and internal applicants. For example, at Aflac, internal employees have a chance to be a candidate before the job posting is posted externally. By understanding the fundamentals of the recruiting process, this will enable me to acquire the needed skills and experience for the position, aid in the search of job openings, and also assist me with applying for jobs that match my qualifications. The recruitment process follows HR planning and is utilized with the selection process. The objective of a personnel selection system is to create an organization of individuals who will perform well on the job. A superior selection system also should be impartial to minorities and other safeguarded groups. According to Fisher, Schoenfeldt, and Shaw, in order to have an accurate and fair selection system, an organization must use reliable and valid measures of job applicant characteristics (283). In adjunct to validity and reliability, a high-quality selection system must combine information about applicants characteristics in a lucid way and fabricate accurate hire and no-hire decisions. Finally, the selection system should add to the overall effectiveness of the organization. The selection system applies because selection tests can be validated so that the results can be used to make hiring decisions. In order to see if I would be a superior candidate for the position, I could

use the multiple cutoff tests and the profile matching test to see if I am a fit for the position. By understanding the recruitment process and applying the selection system tests, this will enable me to see whether I will be a possible candidate for an interview. All organizations use interviews as a selection device. Candidates are interviewed before being offered a job. There are three types of interviews based on the degrees of structure. The three types of interviews can be defined as: unstructured, semi-structured, and structured interviews. The type of structure used is depending upon the type of job the candidate is applying for and based on the interviewer. Clearly, the interview process can be a useful selection device if used properly. The interview process should entail, a thorough job analysis, be structured, contain either situational or behavior description items, and be conducted by a panel of interviewers who have been trained to avoid common error (Fisher, Schoenfeldt, and Shaw, 346). By understanding the basic fundamentals of the interview process, I can give myself an advantage above the competition. In other words, I will research interview questions and get a better understanding of the structure of the interview. Understanding this process will also assistant me when it comes to completing my application, resume, and testing for the position I am applying for with my company. If I get the job, then I will have to concentrate on developing my skills and performance. The training function, now often called human resource development or workplace learning and performance, coordinates the provision of training and development experiences in organizations (Fisher, Schoenfeldt, and Shaw, 375). Training development is intended to improve the present and future performance. Millions of dollars a year are spent on training and development. Training and development applies to my recent position

because I am in the transition of being a trainer specialist. In order for this to be done, I must become certified by taken 10 developmental classes offered by Aflacs Corporate Training and Development (CT&D) department. By being aware of the additional training that organizations provide, this will aid in increasing my skills and performance, my productivity, and allow my scores to be higher on my performance appraisal. What are performance appraisals? Performance appraisals are a part of the performance assessment and management process in which an employees contribution to the organization during a specified period of time is assessed (Fisher, Schoenfeldt, and Shaw, 423). This feedback allows employees to see there strengths and weaknesses and also to compare them with the standards of the organization. If used effectively, performance appraisals can improve employee motivation and performance. If used inappropriately, it can have adverse effects. By understanding the strategic approach of performance appraisals, I can make sure that my performance is up to par and examine the standards of my organization to make sure that I am meeting or exceeding expectations. The feedback will also indicate what areas I can improve in and what areas I can build more skills in. The performance appraisal is important in my organization because pay is related to performance. In order to understand how pay is related to performance, we must first examine the equity theory. People have no essential or intuitive need for money; it is important only to facilitate people to gratify the needs of others. Organizations recurrently overestimate the value workers place on monetary incentive. So what is the equity theory? The equity theory suggests that individuals determine whether they are being treated fairly by comparing their own outcomes/inputs ratio with the outcomes/inputs ratio of someone else. In other words,

if I am not making relatively the same as another administrative assistant with the same education and experience, this will cause a sense of inequity when the comparison process arises. Survey data regularly show compensation to be one of the areas of employment with which employees are least satisfied. A successful compensation system needs to incorporate the equity concerns of all participants in the employment relationship (Fisher, Schoenfeldt, and Shaw, 488). The equity theory applies because in my next position as a trainer, I will research to make sure that I am being compensated fairly when it comes to my pay. So how does pay link to performance? Employers think that reward systems in general and incentive systems in particular influence performance. In addition, employees would rather pay be linked to performance, emphasizing the motivation to utilize such reward systems. Some reasons to link pay to performance are: motivation, retention, productivity, cost savings, and organizational objectives. Vrooms expectancy theory proposes that a pay-performance link is critical for motivating performance. The expectancy theory has three major components, they are: expectancy, instrumentality, and valence. To generate maximum motivation, all three components must be high. So how does this apply to my current position? Knowing that organizations link pay to performance, this will aid me in making sure that I follow all guidelines to make sure that my performance is meeting expectations. So what is the role of benefits in the reward system? Once an essentially abandoned issue, the subject matter of benefits has become daily news, commonly heading the front page in the past decade. There are several types of benefits offered to employees such as: SSI, UCI, Workers compensation, pay for time not worked, health insurance, life and disability insurance, and retirement/pension plans. The most prominent required protection program is the Federal

Insurance Contribution Act (FICA) of 1935, better known as the Social Security Act. Fisher, Schoenfeldt, and Shaw states that, Social Security was designed to protect employees and their dependants by providing retirement income, disability income, health care (Medicare), and survivor benefits (577). Yet, Social Security is now the top concern of the future. So how does this apply to my current position? Knowing that Social Security might not be around when/if I turn 70, I have invested in a pension plan. The pension plan I have selected is the capital accumulation plan called the 401(K). Through this plan, I have the opportunity to establish an individual retirement account. This plan will enable me to retire even if Social Security has deceased. In conclusion, it is important to understand what human resource management is and it is also important to know the fundamentals that make up a human resource department. By understanding the terminology and concepts of HR it will provide a better understanding of decisions made in the organization and by HR. In order to enhance my performance, skills, and knowledge of my current job, applying all the skills I have learned in this class will definitely give me an advantage on my competition. I have thoroughly enjoyed this class and was able to apply a lot of concepts learned in this class to my current and future position.

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