HRM & Efective Workforce

Human Resource Management
CHAPTER 12
Learning Objectives
Explain 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.
Copyright 2008 by South-Western, a division of Thomson Learning. All rights reserved.
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.
The Strategic Role of Human Resource

Management
All managers
are resource
managers
Employees are
viewed as
assets
Matching process,
integrating the
organizations
goals with
employees needs
How a company manages its workforce may be single

more important factor in sustained competitive success
Current Strategic Issues

Determine a companys need for skills and employees
Becoming
more competitive globally
Improving
quality, productivity, &

customer service
Managing
mergers & acquisitions
Applying
new information technology for

e-business
Exhibit 12.1
Strategic Human Resource Management Goals

Company Strategy
Attract an Effective Workforce
HRM Environment
Legislation
Trends in society
International events
Changing technology
HRM planning
Job analysis
Forecasting
Recruiting
Selecting
Maintain an Effective Workforce
Wage and salary

Benefits
Labor relations
Terminations
6
Develop an Effective Workforce
Training
Development
Appraisal
Environmental Influences on HRM

Competitive
Building Human Capital
Globalization
Information Technology
Federal
Strategy
Legislation
Globalization
IHRM
= addresses the complexity that

results from recruiting, selecting,
developing, and maintaining a diverse
workforce on a global scale
Information Technology
Human resource information technology = an

integrated computer system designed to
provide data and information used in HR
planning and decision making
Traditional HR to e-HR significantly affected

every area of human resource management
Some organizations are close to a paperless

HRM system saves time, money, frees staff
Federal Legislation
Discrimination
= hiring or promoting of
applicants based on criteria that are not
job relevant
Affirmative
action = policy requiring

employers to take positive steps to
guarantee equal employment
opportunities for people within protected
groups
10
Major Federal Laws - HRM

Exhibit 12.3
Equal
Opportunity/Discrimination Laws
Compensation/Benefits
Health/Safety
11
Laws
Laws
The Changing Social Contract

Exhibit 12.4
New Contract
Old Contract
Employee
Employability, personal responsibility

Partner in business improvement
Learning
Job security
A cog in the machine
Knowing
Employer
Continuous learning, lateral career

movement, incentive compensation
Creative development opportunities
Challenging assignments
Information and resources
Traditional compensation package

Standard training program
Routine jobs
Limited information
SOURCE: 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.
12
HR Issues in the New Workplace

Employer
Teams
of choice
and Projects
Temporary
Employees
Technology
Work-Life
Balance
Downsizing
13
HR Issues in the New

Workplace
Employer of
Choice
An
employer of choice is a company that is

highly attractive to potential employees
because its human resource practices focus on
both
14
Tangible benefits and
Intangible benefits

Workplace
Teams and Projects major trend in todays workplace
With emphasis on projects, distinctions between job

categories and descriptions are collapsing
Many of todays workers straddle functional & departmental

boundaries; handle multiple tasks/responsibilities
Virtual team = made up of members who
are geographically or organizationally dispersed,
rarely meet face to face, and
15
Teams and
Projects
do their work using advance information technologies.

Workplace
Temporary
Employees
In
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 CEO
Contingent
workers = people who work for

an organization, but not on a permanent or
full-time basis, including temporary
placements, contracted professionals, or
leased employees
16

Workplace
17
Technology
Telecommuting and virtual teams are related

trends
Telecommuting = using computers and

telecommunications equipment to perform work
from home or another remote location
Work anywhere - wireless Internet devices,

laptops, cell phones, fax machines
Extreme telecommuting = people live nd work

in countries far away from the organizations
physical location

Workplace
Work-Life
Balance
Many European companies ahead of U.S. companies
Telecommuting
is one way organizations

help employees lead more balanced lives
Flexible
scheduling important in todays

workplace 27% of workforce/flexible hours
Broad
Work-Life Balance initiatives critical

retention strategy on-site gym & childcare,
paid leaves & sabbaticals
18

Workplace
Downsizing
Downsizing
= intentional, planned reduction in the

size of a companys workforce
Managers
19
can smooth the downsizing process
Regularly communicating with employees
Providing them with as much information as possible
Providing assistance to workers who will lose their jobs
Using training and development for remaining

employees
HR Issues in Attracting an Effective

Workforce
HR
issues present many challenges for

organizations and HR managers as they
work toward the three primary HR goals
Attracting
Developing
Maintaining an effective workforce
20
Matching Model
Attracting an Effective Workforce
An
employee selection approach in which the
organization and the applicant attempt to match

each others needs, interests, and values
21
Attracting an Effective Workforce

Exhibit 12.5
HR Planning
Retirements
Growth
Resignations
Choose
ChooseRecruiting
Recruiting
Sources
Sources
Want
Wantads
ads
Headhunters
Headhunters
Internet
Internet
Company Needs
Strategic goals
Current & future competencies
Market changes
Employee turnover
Corporate culture
Select the
Candidate
Application
Interview
Tests
Matching Model
Match with
Welcome New
Employee
Employee Contributions
Ability
Education
Creativity
Commitment
Expertise
Company Inducements
Employee Needs
Pay and benefits

Meaningful work
Advancement
Training
Challenge
Stage of career
Personal values
Promotion aspirations
Outside interests
Family concerns
22
Match with
Human Resource Planning

Forecasting
of human resource needs

and the projected matching of individuals
with expected vacancies
23
? = New technologies emerging
? = Volume of business likely next 5-10

years
? = Turnover rate, how much is avoidable, if

any
Recruiting
Recruiting
= activities or practices that

define the desired characteristics of
applicants for specific jobs
24
Internal promote-from-within policies used

by many to fill high-level positions
External = recruiting newcomers from outside

has advantage of multiple sources
E-cruiting = use of Internet - fastestgrowing approach to recruiting
Basic Building Blocks

of HR Management
Job Analysis
Job Description
Job Specification
25
Selecting
Selection
= process of determining the

skills, abilities, and other attributes a
person needs to perform a particular job
Validity
= relationship between an
applicants score on a selection device
and his or her future job performance
26
Selecting (contd.)
Application
form - device used for

collecting information about an
applicants education, previous job
experience, and other background
characteristics
Research
= biographical information
inventories can validly predict future job
success
27
Interviewing An Applicant
Know what you want

Prepare a road map
Use open-ended questions
Do not ask irrelevant questions
Do not rush interview
Do not rely on your memory
28
Reasons For Not Asking

About Home Ownership
29
Might adversely affect applicants chances at the job
Minorities and women may be less likely to own a

home
Home ownership is probably unrelated to job

performance
Interview as Predictor of Success

Interview
is not generally a valid predictor of

job performance has high face validity as a
selection tool
Panel
interviews candidate meets with

several interviewers who take turns asking
questions increases interview validity
Computer-based
interviews - complement
traditional interviewing information
30
Inappropriate or Illegal Questions

Employment Applications and Interviews
31
Race-related questions
Age
Religion
Gender
National origin
Marital/family status
Testing and Assessment

Employment
Test = written or computerbased test designed to measure a

particular attribute such as intelligence or
aptitude
Assessment
Center = technique for

selecting individuals with high
managerial potential based on their
performances on a series of simulated
managerial tasks
32
Developing an Effective Workforce

Following selection, next goal of HRM is to develop employees
Training
and development = planned

effort to facilitate employees learning of
job-related skills and behaviors $ 51.1
billion spent in 2005
On-the-job
training = an experienced
employee adopts a new employee to teach
him or her how to perform job duties
Cross
training
Mentoring
33
Performance Appraisal
Process
of observing and evaluating an

employees performance, recording the
assessment, and providing feedback to the
employee
Steps
34
Observing and assessing performance

Recording the assessment
Providing feedback to employee
Making Performance Appraisals A Positive Force

1.
2.
35
The accurate assessment of performance

through the development and application of
assessment systems such as a rating scale
Training managers to effectively use the
performance appraisal interview to provide
feedback that reinforces good performance
and motivate employee development
Assessing Performance Accurately

360
Feedback Process
Performance
36
Evaluation Errors
Stereotyping
Halo effect
BARS Behaviorally-anchored rating scale
Maintaining an Effective Workforce

Compensation
Wage and Salary Systems
Compensation Equity
Pay for Performance
Benefits
Termination
37
Termination
Value of termination for maintaining an effective
workforce is two fold
Employees who are poor
performers can be dismissed
Employers can use exit interviews
in a positive manner
38

HRM & Efective Workforce

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Human Resource Management

Explain the role of human resource

Learning Objectives (contd.)

Describe the tools managers use to recruit and

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

The Strategic Role of Human Resource

How a company manages its workforce may be single

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

Current Strategic Issues

more competitive globally

quality, productivity, &

mergers & acquisitions

new information technology for

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

Strategic Human Resource Management Goals

Attract an Effective Workforce

Wage and salary

Develop an Effective Workforce

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

Environmental Influences on HRM

Building Human Capital

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

= addresses the complexity that

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

Human resource information technology = an

Traditional HR to e-HR significantly affected

Some organizations are close to a paperless

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

action = policy requiring

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

Major Federal Laws - HRM

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

The Changing Social Contract

Employability, personal responsibility

Continuous learning, lateral career

Traditional compensation package

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

HR Issues in the New Workplace

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

HR Issues in the New

employer of choice is a company that is

Tangible benefits and

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

HR Issues in the New

Teams and Projects major trend in todays workplace

With emphasis on projects, distinctions between job

Many of todays workers straddle functional & departmental

Virtual team = made up of members who

are geographically or organizationally dispersed,

rarely meet face to face, and

do their work using advance information technologies.

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

HR Issues in the New

opening years of the 21st century, largest

Employees do everything from

workers = people who work for

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

HR Issues in the New

Telecommuting and virtual teams are related

Telecommuting = using computers and

Work anywhere - wireless Internet devices,

Extreme telecommuting = people live nd work

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