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Human

Resource
Manageme
nt
Chapter Ten

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objectives
LO 1 Discuss how companies use human
resources management to gain
competitive advantage.
LO 2 Give reasons companies recruit both
internally and externally for new hires.
LO 3 Identify various methods for selecting
new employees.
LO 4 Evaluate the importance of spending
on training and development.
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Learning Objectives (cont.)


LO 5 Explain alternatives for who appraises
an employees performance.
LO 6 Describe the fundamental aspects of a
reward system.
LO 7 Summarize how unions and labor laws
influence human resources
management.

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Human Resource
Management
Human
resources
management
(HRM)

Formal systems
for the
management of
people within an
organization.
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Strategic Human Resources


Management

Creates
value

Is rare

Is
difficult
to
imitate

Is
organize
d
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Strategic Human Resources


Management

Human capital
The knowledge,
skills, and
abilities of
employees that
have economic
value.

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The HR Planning Process


Demand
forecasts

determining how
many and what
type of people
are needed.

Supply of labor
how many and
what types of
employees the
organization
actually will
have.

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An Overview of the HR
Planning Process
Figure 10.1

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Question
What tool is used for determining
what is done on a given job and what
should be done on that job?
A.Job description
B.Job specification
C.Job analysis
D.Occupation breakdown

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The HR Planning Process


Job analysis
A tool for
determining
what is done on
a given job and
what should be
done on that job.

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Staffing the Organization


Recruitment
The
development of
a pool of
applicants for
jobs in an
organization
Internal, external

Selection
Choosing from
among qualified
applicants to hire
into an
organization

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Selection
Applicatio
ns and
Rsums

Intervie
ws

Referenc
e Checks

Backgrou
nd
Checks

Personali
ty Tests

Drug
Testing

Cognitive
Ability
Tests

Performa
nce Tests

Integrity
Tests
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Interviews
Structured
interview

Selection
technique that
involves asking
all applicants the
same questions
and comparing
their responses
to a
standardized set
of answers.

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Screening Tools Used Most Often


Figure 10.2

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Performance Tests
Assessment center

A managerial performance test in


which candidates participate in a
variety of exercises and situations.

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Reliability and Validity


Reliability
The consistency
of test scores
over time and
across
alternative
measurements.

Validity
The degree to
which a selection
test predicts or
correlates with
job performance
Criterion,
content

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Workforce Reductions
Outplacement

The process of helping people who


have been dismissed from the
company regain employment
elsewhere.

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Termination
Employmentat-will

The legal
concept that an
employee may
be terminated
for any reason.

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Advice on Termination
Table 10.1

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Legal Issues and


Equal Employment Opportunity

Adverse impact

When a seemingly neutral employment


practice has a disproportionately
negative effect on a protected group.

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U.S. Equal Employment


Laws
Table 10.2

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U.S. Equal Employment Laws (cont.)


Table 10.2

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Training and Development


Training
Teaching lowerlevel employees
how to perform
their present
jobs.

Development
Helping
managers and
professional
employees learn
the broad skills
needed for their
present and
future jobs.

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Training and Development


Needs
assessment

An analysis
identifying the
jobs, people, and
departments for
which training is
necessary.

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Training Delivery Methods:


Percent of Total Hours
Figure 10.4

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Types of Training
Orientation training

Training designed to introduce new


employees to the company and
familiarize them with policies,
procedures, culture, and the like

Team training

Training that provides employees with


the skills and perspectives they need to
collaborate with others.
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Types of Training
Diversity training

Programs that focus on identifying and


reducing hidden biases against people
with differences and developing the
skills needed to manage a diversified
workforce.

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Performance Appraisal
Performance
appraisal (PA)

Assessment of
an employees
job performance.

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Types of Appraisals
Trait

Behav
ior

Result
s
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Performance Appraisal
Management by objectives
(MBO)

A process in which objectives set by a


subordinate and a supervisor must be
reached within a given time period.

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Question
___________ is the process of using multiple
sources of appraisal to gain a
comprehensive perspective on ones
performance.

A.360-degree appraisal
B.Peer appraisal
C.Content appraisal
D.Equity appraisal
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Performance Appraisal
360-degree appraisal

Process of using multiple sources of


appraisal to gain a comprehensive
perspective on ones performance

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Giving Feedback
1. Summarize the employees performance,
and be specific.
2. Explain why the employees work is
important to the organization.
3. Thank the employee for doing the job.
4. Raise any relevant issues, such as areas
for improvement.
5. Express confidence in the employees
future good performance.
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Factors Affecting the Wage


Mix
Figure 10.6

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Pay Structure
Figure 10.7

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Employee Benefits
Cafeteria benefit Flexible benefit
program

programs

An employee

Benefit programs

benefit program in
which employees
choose from a
menu of options
to create a benefit
package tailored
to their needs.

in which
employees are
given credits to
spend on benefits
that fit their
unique needs.

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Labor Relations
Labor relations
The system of
relations
between workers
and
management.

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Collective Bargaining
Union shop
An organization
with a union and
a union security
clause specifying
that workers
must join the
union after a set
period of time.

Right-to-work
Legislation that
allows
employees to
work without
having to join a
union.

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Determinants of Union
Voting Behavior
Figure 10.8

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Video: SAS
Why is SAS rated as a top company
to work for by Forbes?
How does SAS attract and keep top
talent?

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