PowerPoint Presentation

to Accompany
Management, 9/e
John R. Schermerhorn, Jr.

Chapter 11:
Human Resource Management

Prepared by: Jim LoPresti

University of Colorado, Boulder
Published by: John Wiley & Sons, Inc.
Planning Ahead — Chapter 11 Study Questions

What is human resource management?

How do organizations attract a quality
workforce?

How do organizations develop a quality
workforce?

How do organizations maintain a quality
workforce?

Management 9/e - Chapter 11 2

Study Question 1: What is human resource
management?

Human capital is essential to any

organization’s long-term performance
success.

Social contract is the expectations of the
employer-employee relationship.

Organizations perform better when they
treat their employees better.

Human resources are key to organizational
success or failure.

Management 9/e - Chapter 11 3

Study Question 1: What is human resource
management?

Social contract is the expectations of the

employer-employee relationship.

Strategic human resource management
mobilizes human capital through the HRM
(human resource management) process to
best implement organizational strategies

Management 9/e - Chapter 11 4

Study Question 1: What is strategic human resource
management?

Major human resource management

responsibilities:
 Attracting a quality workforce
 Human resource planning, recruitment, and
selection
 Developing a quality workforce
 Employee orientation, training and
development, and performance appraisal.
 Maintaining a quality workforce
 Career development, work-life balance,
compensation and benefits, employee
retention and turnover, and labor-
management relations.
Management 9/e - Chapter 11 5
Study Question 1: What is human resource
management?

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

Management 9/e - Chapter 11 6

Study Question 1: What is human resource
management?

Affirmative action
 Setting goals and having plans to
ensure equal employment opportunity
for protected groups.

Bona fide occupational qualifications
 Setting goals and having plans to
ensure equal employment opportunity
for protected groups.

Management 9/e - Chapter 11 7

Study Question 1: What is human resource
management?

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

Management 9/e - Chapter 11 8

Figure 11.1 A sample of U.S. laws against
employment discrimination.

Management 9/e - Chapter 11 9

Study Question 1: What is human resource
management?

Current legal issues in HRM

 Sexual harassment

 Equal pay and comparable worth

 Legal status of independent contractors

 Workplace privacy

Management 9/e - Chapter 11 10

 Study Question 1: What is human resource
management?

Sampler of illegal/inappropriate interview

questions
 Age – How old are you? [OK: Are you over 18?]
 Religion – Do you practice a religion? [OK:
Nothing]
 National origin – What country are you from? [OK:
Are you authorized to work in the US?]
 Family – Are you married? [OK: Would you be
willing to relocate? Do you plan to have children?]

Management 9/e - Chapter 11 11

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.

Steps in the HR planning process:
 Step 1 — review organizational mission,
objectives, and strategies.
 Step 2 — review HR objectives and strategies.
 Step 3 — assess current HR needs.
 Step 4 — forecast HR needs.
 Step 5 — develop and implement HR plans.

Management 9/e - Chapter 11 12

Figure 11.2 Steps in strategic human resource planning.

Management 9/e - Chapter 11 13

Study Question 2: How do organizations attract a
quality workforce?

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

Management 9/e - Chapter 11 14

Study Question 2: How do organizations attract a
quality workforce?

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.

Management 9/e - Chapter 11 15

Study Question 2: How do organizations attract a
quality workforce?

Recruitment methods:
 External recruitment — candidates are
sought from outside the hiring
organization.
 Internal recruitment — candidates are
sought from within the organization.
 Traditional recruitment — candidates
receive information only on most
positive organizational features.
 Realistic job previews — candidates
receive all pertinent information.

Management 9/e - Chapter 11 16

Study Question 2: How do organizations attract a
quality workforce?

Selection
 Choosing from a pool of applicants the person
or persons who offer the greatest performance
potential.

Selection Steps
 Completion of a formal application form.
 Interviewing.
 Testing.
 Reference checks.
 Physical examination.
 Final analysis and decision to hire or reject.

Management 9/e - Chapter 11 17

Figure 11.3 Steps in the selection process: the case
of a rejected job applicant.

Management 9/e - Chapter 11 18

Study Question 2: How do organizations attract a
quality workforce?

Step 1—Application Forms

 Declares individual to be a job
candidate.
 Documents applicant’s personal history
and qualifications.
 Personal résumés may be included.
 Applicants lacking appropriate
credentials are rejected at this step.

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Study Question 3: How do organizations attract a
quality workforce?

Step 2—Interviews
 Exchange of information between job
candidate and key members of the
organization.
 Opportunity for job candidate and
organizational members to learn more
about each other.

Management 9/e - Chapter 11 20

Study Question 2: How do organizations attract a
quality workforce?

Step 3 — Employment Tests

 Used to further screen applicants by
gathering additional job-relevant
information.
 Common types of employment tests:
 Intelligence
 Aptitude

 Personality

 Interests

Management 9/e - Chapter 11 21

Study Question 2: How do organizations attract a
quality workforce?

How to succeed in a telephone

interview
 Be prepared ahead of time.
 Take the call in private.
 Dress professionally.
 Practice your interview voice.
 Have reference materials handy.
 Have a list of questions ready.
 Ask what happens next.

Management 9/e - Chapter 11 22

Study Question 2: How do organizations attract a
quality workforce?

Criteria for selection devices:

 Reliability
 The selection device is consistent in
measurement.
 Validity
 There is a demonstrable relationship
between a person’s score or rating on a
selection device and his/her eventual job
performance.

Management 9/e - Chapter 11 23

Study Question 2: How do organizations attract a
quality workforce?

Behaviorally-oriented employment
tests:
 Assessment center
 Evaluates a person’s performance in
simulated work situations.
 Work sampling
 Evaluates a person’s performance on
actual job tasks.

Management 9/e - Chapter 11 24

Study Question 2: How do organizations attract a
quality workforce?

Step 4 — Reference and

Background Checks
 Inquiries to previous employers,
academic advisors, coworkers and/or
acquaintances regarding applicant’s:
 Qualifications.
 Experience.

 Past work records.

 Can better inform potential employer.

 Can enhance candidate’s credibility.

Management 9/e - Chapter 11 25

Study Question 2: How do organizations attract a
quality workforce?

Step 5 — Physical Examinations

 Ensure applicant’s physical capability to
fulfill job requirements.
 Basis for enrolling applicant in life,
health, and disability insurance
programs.
 Drug testing is done at this step.

Management 9/e - Chapter 11 26

Study Question 2: How do organizations attract a
quality workforce?

Step 6 — Final Decision to Hire or

Reject
 Best selection decisions will involve
extensive consultation among multiple
parties.
 Selection decision should focus on all
aspects of the candidate’s capacity to
perform the designated job.

Management 9/e - Chapter 11 27

Study Question 2: How do organizations attract 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.

Management 9/e - Chapter 11 28

Study Question 3: How do organizations develop a
quality workforce?

Training
On-the-job
 A set of activities training
that provides the  Job rotation
opportunity to  Coaching
acquire and
improve job-  Mentoring
related skills.  Modeling

Off-the-job
training
 Management
development

Management 9/e - Chapter 11 29

Study Question 3: How do organizations develop a
quality workforce?

Performance management systems

ensure that—
 Performance standards and objectives
are set.
 Performance results are assessed
regularly.
 Actions are taken to improve future
performance potential.

Management 9/e - Chapter 11 30

 Study Question 3: How do organizations develop a
quality workforce?

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 9/e - Chapter 11 31
Figure 11.4 Sample behaviorally anchored rating
scale for performance appraisal.

Management 9/e - Chapter 11 32

Study Question 4: How do organizations maintain a
quality workforce?

Graphic rating scales

 Uses checklists of traits or
characteristics to evaluate
performance.

 Relatively quick and easy to use.

 Questionable reliability and validity.

Management 9/e - Chapter 11 33

Study Question 4: How do organizations maintain a
quality workforce?

Behaviorally anchored rating scales

(BARS)
 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.

Management 9/e - Chapter 11 34

Study Question 4: How do organizations maintain a
quality workforce?

Critical-incident techniques

 Keeping a running log or inventory of

effective and ineffective behaviors.

 Documents success or failure patterns.

Management 9/e - Chapter 11 35

Study Question 4: How do organizations maintain a
quality workforce?

Multiperson comparisons
 Formally compare one person’s
performance with that of one or more
others.
 Types of multiperson comparisons:
 Rank ordering
 Paired comparisons
 Forced distributions

Management 9/e - Chapter 11 36

Study Question 4: How do organizations maintain a
quality workforce?

Alternatives to supervisory appraisal:

 Peer appraisal
 Occurs when people who work regularly and
directly with a jobholder are involved in the
appraisal.
 Upward appraisal
 Occurs when subordinates reporting to the
jobholder are involved in the appraisal.
 360° feedback
 Occurs when superiors, subordinates, peers,
and even internal and external customers are
involved in the appraisal of a jobholder’s
performance.
Management 9/e - Chapter 11 37
Study Question 4: How do organizations maintain a
quality workforce?

Career development
 Career — a sequence of jobs that constitute
what a person does for a living.
 Career path — a sequence of jobs held over
time during a career.
 Career planning —matching career goals and
individual capabilities with opportunities for
their fulfillment.
 Career plateau — a position from which
someone is unlikely to move to a higher level
of responsibility.
 Progressive employers seek ways to engage
plateaued employees.
Management 9/e - Chapter 11 38
Study Question 4: How do organizations maintain a
quality workforce?

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

Management 9/e - Chapter 11 39

Study Question 4: How do organizations maintain a
quality workforce?

Compensation and benefits

 Base compensation
 Salary or hourly wages
 Fringe benefits
 Additional non-wage or non-salary forms of
compensation
 Flexible benefits
 Employees can select a set of benefits
within a certain dollar amount

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 Study Question 4: How do organizations maintain a
quality workforce?

Compensation and benefits (cont.)

 Family-friendly benefits
 Help in balancing work and nonwork
responsibilities
 Employee assistance programs
 Help employees deal with troublesome
personal problems.

Management 9/e - Chapter 11 41

Study Question 4: How do organizations maintain a
quality workforce?

Retention and turnover

 Replacement is the management of
promotions, transfers, terminations,
layoffs, and retirements.
 Replacement decisions relate to:
 Shifting people between positions within
the organization.
 Retirement.
 Termination.

Management 9/e - Chapter 11 42

Study Question 4: How do organizations maintain a
quality workforce?

Labor-management relations
 Labor unions deal with employers on the
workers’ behalf.
 Labor contracts specify the rights and
obligations of employees and management
regarding:
 Wages.

 Work hours.

 Work rules.

 Seniority.

 Hiring.

 Grievances.

 Other conditions of employment.

Management 9/e - Chapter 11 43

Figure 11.5 The traditional adversarial view of labor-
management relations.

Management 9/e - Chapter 11 44

Study Question 4: How do organizations maintain a
quality workforce?

Legislation governing labor-management

relations
 National Labor Relations Act of 1935
 Recognizes employees’ right to unionize and
engage in union activities.
 Taft-Hartley Act of 1947
 Protects employers from unions’ unfair labor
practices and permits union decertification.
 Civil Services Reform Act of 1978
 Clarifies rights of civil servants to unionize.

Management 9/e - Chapter 11 45

Study Question 4: How do organizations maintain a
quality workforce?

Unions can create
Management can

difficulties for create difficulties
management by… for unions by…
 Striking  Using lockouts

 Boycotting  Hiring strike-

 Picketing breakers

 Seeking injunctions

Management 9/e - Chapter 11 46

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