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Part 3 Organizing Challenges in the 21st Century

Chapter
9
Human
Resource
Management

PowerPoint Presentation by Wessex Press, Inc.

© 2016 Wessex Press, Inc. All rights reserved.


© 2016 Wessex Press, Inc. All rights reserved.
LEARNING OUTCOMES
When you have finished studying this chapter, you
should be able to explain:

1 2 3 4
The components Job analysis and The recruiting The major
of the human its importance. techniques used by employee selection
resource organizations. methods.
management
process.

5 6 7 8 9
The different The role of How The key factors The
types of performance compensation of the legal importance of
employee appraisals in and benefits environment in labor–
training. the are used in which human management
organization. organizations. resource relations.
management
functions.

9–2
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Human Resource Management
• Human Resource Management (HRM)
 The overall process of securing people with the
proper skills and helping to guide and manage them.
 This involves many other parts of overall
management, including motivation, leadership, and
communication
 Major HRM activities help the organization attract,
retain, and develop the quality and quantity of
employees needed to meet organizational goals.
 The organization’s strategy and goals both
influence human resources and are influenced by
them.

9–3
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Figure 9.1 Strategic Human Resource Management
Planning Process

Organizational Strategy

Strategic Human Resource Management


Analysis Forecasting Recruiting Selecting Training Appraising Rewarding

9–4
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Human Resource Management
(Cont’d)
• Job Analysis
 Studying a job in order to understand what is needed
to help the job holder perform a job successfully.
 Knowledge, skills, abilities, competences, and
attitudes.

9–5
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Job Description and Specification
• A job description explains the job in terms of:
 Tasks
 Behavior
 Responsibilities
• A job specification lists what is needed to
perform the job successfully.
 Specific knowledge
 Skills
 Abilities
 Employee characteristics

9–6
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Forecasting
• Demand Forecasting
 Determining the number of employees that the
organization will need at some point in the future as
well as the knowledge, skills, and abilities that these
employees must possess.
• Supply Forecasting
 Determining what human resources will be available,
both inside and outside the organization.

9–7
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Recruitment
• The process of finding and attracting job
candidates who are qualified to fill job
vacancies.
 Internal recruitment
 Identifying
candidates from inside the organization
and encouraging them to apply for vacant jobs.
 External recruitment
 Advertising for and soliciting applicants from
outside the organization to vacant jobs.

9–8
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Table 9.1 Internal versus External Recruitment

Internal Recruitment
Advantages Disadvantages
• Motivator for good performance • Strong personnel development, training needed
• Causes succession of promotions • Morale problems of those not promoted
• Better assessment of abilities • Political infighting for promotions
• Increased commitment, morale • Inbreeding
• Lower cost for some jobs
• Have to hire only at entry level

External Recruitment
Advantages Disadvantages
• New ideas, insights • Selected person may not fit job or organization
• Possibly cheaper than • Possible morale problems for internal
training a professional candidates not promoted
• No group of political • Long adjustment time may be needed
supporters in the organization
already

9–9
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Selection
• Selection
 The process of evaluating and choosing the best
qualified candidate from the pool of applicants
recruited for the position.
 Entails the exchange of accurate information
between employers and job candidates to optimize
the person-job match.
 Although organizations usually make these
decisions, applicants also self-select by choosing
to join, not to join, or to leave, organizations
according to their individual needs.

9–10
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Validity and Reliability
• To select the right person for a job, any method
used to make an employment decision must
demonstrate validity and reliability.
 Validity requires that the method accurately measure
or predict what it is intended to measure or predict.
 Reliability means that the method must measure, or
predict, the same thing each time it is used.

• Any selection method must be job-related.


 Test results must correlate with a criterion for success
on the job.

9–11
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Selection Methods
• Application forms
• Tests
• Interviews

9–12
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Application Forms
• Usually the first sources of information about a
potential employee.
• Usually record the applicant’s desired position
and job-related qualifications and experience.
• Both serve as prescreening devices to help
determine whether an applicant meets the
minimum requirements of a position.
• Both also allow for preliminary comparisons with
the credentials of other candidates.

9–13
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Tests
Test Category What It Measures Example

Written Knowledge Driver’s license exam

Performance Ability, skills for a Assessment center,


specific job work sample

Personality Characteristics, personality Locus of control measure

9–14
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Written Tests
• Test the applicant in a variety of areas:
 Knowledge
 Ability
 Skill
 Intelligence
 Interest

9–15
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Performance Tests
• Performance tests require the job candidate to
actually perform it the job, usually in a small part
or for a short time.
 Work samples
 Assessment centers

9–16
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Work Samples
• Work samples are more appropriate for jobs that
are more routine and/or more specific.
 If work samples are designed and selected well, then
the person’s performance in the work sample should
accurately predict their performance on the job.
 Work samples do show high validity scores,
especially when compared to written aptitude,
personality or intelligence tests.

9–17
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Assessment Centers
• Assessment centers are usually more
appropriate to judge a candidate’s predicted
performance in a more complex job.
 The candidate typically is presented with a large
number and varying types of tasks to do (sometimes
more than can reasonably be done).
 The intent of the assessment center is to judge how a
candidate would behave and perform in selected
tasks to predict performance on the job.

9–18
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Personality Tests
• Judge whether a person “fits” into the
organization.
 The goal is to hire people who already have
characteristics and attitudes that are line with the core
values of the organization and its culture.
 It is assumed that it is easier to teach a person the
details of a job than it is to change deeply-held
attitudes or to change personality characteristics.

9–19
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Physical Examinations and
Drug Tests
• Physical Examination
 Intended to ensure that a person is physically able to
carry out certain job requirements.
 ADA requires job offer before exam.
 Can also be used to enroll employees in fringe
benefits such as health, life, or disability insurance.
• Drug tests
 Are used by many companies for both hiring and for
continued employment.
 Drug-Free Workplace Act

9–20
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Interviews
• Formal, in-depth conversations
 Assess a candidate’s knowledge, skills and abilities.
 Provide the candidate with information about the
organization and potential jobs.
• Interviews tend to have low validity.
 While many people conduct interviews, few are
trained in how to do them well.
 The comparability of interview results across
individuals raises issues with reliability.

9–21
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Interview Guidelines
• To increase the validity and reliability of an
interview:
 Base the interview questions on a complete and
current job analysis.
 Ask precise, specific questions that are job related.
 Avoid biases, making snap judgments, stereotyping,
or looking for only negative, or only positive,
information.
 Be careful about having a perception, or stereotype,
of what the “good” candidate is.

9–22
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Interview Guidelines (cont’d)
• To increase the validity and reliability of an
interview:
 Be careful about making up you mind about the
applicant in the first several minutes, as is usually the
case.
 Avoid questions that can lead to discrimination.
 Keep written records of the interview.

9–23
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Table 9.2 Interview Questions That Can Lead to
Discrimination

Don’t Ask Ask This Instead


Are you married? Do you have any responsibilities that
Do you have children? might conflict with job attendance or
Do you have child-care arrangements? your availability for shift work?
What is your spouse’s name?
What is your race? No acceptable question.
What is your religion? Are you available for weekend work?
Which church do you attend?
What are your religious holidays?
Are you male or female? No acceptable question.
How old are you? If hired, can you prove that you are
What is your birth date? at least 18?
Have you ever been arrested? Have you ever been convicted of a crime?
Are you a U.S. citizen? Can you show proof that you are eligible
Where were you born? to work in the United States?
Are you disabled? Are you able to perform the essential
In your condition, do you think functions of this job with or without
you can do the job? reasonable accommodation?

9–24
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Realistic Job Preview
• The interviewer explains to the applicant what
the job “really” requires rather than giving just
the positive points of a job or company and
avoiding the negative.

9–25
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Training
• Training
 A planned effort to assist employees in learning job-
related behaviors in order to improve performance.
 Companies train employees in an effort to prepare
them to work toward achieving the goals and
objectives of the organization.
• Types of Training Programs
 Orientation
 Technical training
 On-the-job training
 Management development programs

9–26
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Appraising
• Performance Appraisal
 A systematic process of evaluating employee job-
related achievements, strengths, weaknesses, as well
as determining ways to improve performance.
• Uses of performance appraisal information:
 Motivation
 Personnel movement
 Training
 Feedback for improvement and personal
development

9–27
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Appraisal Methods
• Behavior-oriented Approaches
• Results-oriented Approaches

9–28
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Behavior-Oriented Approaches
• Behavior-Oriented Approaches
 Performance appraisal focused on assessing
employee behavior is based on the idea that certain
behaviors will lead to successful performance on the
job.
• Commonly used methods are:
 Graphic rating scales
 Behaviorally-anchored rating scales

9–29
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Graphic Rating Scales
• Graphic Rating Scales
 Assess employee’s on a series of performance
dimensions such as:
 Initiative
 Tardiness
 Accuracy of work
– using a 5- or 7-point scale, for example, a typical rating scale
ranges from 1 to 5, with 1 representing poor performance and 5
representing outstanding performance.
 Performance dimensions tend to be general and
relatively flexible which allows them to be used to
evaluate individuals in a number of different jobs.

9–30
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Behavioral-Anchored Rating
Scales (BARS)
 Are similar to graphic rating scales, but use more
detailed examples of job behaviors to represent
different layers of performance.
 Rely on job analysis information to describe a range
of desirable and undesirable behaviors for each
performance dimension.
 Reduce subjective interpretation of performance
because they are based on clearly stated job-related
activities.
 Costly to construct and both subordinates and
supervisors require training in their use.
9–31
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Results-Oriented Approaches
• Establish goals, targets, or results expected, and
a person’s performance is judged against.
 360-degree Feedback
 Feedback from the supervisor, subordinates,
coworkers, and self-appraisal gives a more
complete picture.
 This requires trust and communication skills.
People need to understand how to give
constructive feedback, and they must be
comfortable with appraising their supervisor.

9–32
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Problems with Performance
Appraisal
• Halo Effect
 When a manager rates an employee high or low on
all items because of one employee characteristic.
• Central Tendency
 The rater judges all employees as average, even
though their performance varies.
• Leniency-Severity Error
 When the rater is unjustifiably easy or harsh in
evaluating performance.

9–33
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Problems with Performance
Appraisal (cont’d)
• Contrast Error
 Rating employees relative to each other rather than to
performance standards.
• Recency Error
 When a rater bases an evaluation on an employee’s
most recent performance.

9–34
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Rewarding
• Organizations must reward employees for doing
good work, for helping achieve the goals and
mission of the organization.
 Frequently, when the word reward is used, we think of
money.
 However, there are very important non-monetary
rewards the employees are also seeking from their
work.

9–35
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Direct Compensation
• Base Pay
 Wages and salaries that employees receive directly in
exchange for performing their jobs.
• Incentives
 Compensation beyond base pay used to attract,
retain, and motivate employees.
 Bonuses, commissions, profit-sharing plans, stock
options.

9–36
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Indirect Compensation
• Benefits
 Rewards that employees receive indirectly as part of
their employment relationship with the organization.
• Benefit Categories
 Required and voluntary security
 Retirement
 Time-off
 Insurance and financial
 Social and recreational

9–37
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Table 9.3 Examples of Benefits

9–38
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Designing Equitable Reward
Systems
• Compensation designers are concerned with
three sources of fairness expectations:
 External Fairness: Is the pay for the job fair in one
organization relative to the pay for the same job in
other organizations?
 Internal Fairness: Is the pay for the job within the
organization fair relative to the pay of other jobs in the
same organization?
 Employee Fairness: Is the pay fair relative to what
coworkers are making on the same job?

9–39
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Legal Environment of HRM
• Legal Environment
 Federal and state laws specifying required,
acceptable and prohibited employment practices
place constraints on recruitment, selection,
placement, training and other human resource
activities.
• Legal Issues Related to HRM
 Federal, state and local laws
 Affirmative action
 Workforce diversity
 Sexual harassment

9–40
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Table 9.4 Major Employment Laws

Law or Regulation Year


Fair Labor Standards Act 1938
Equal Pay Act 1963
Civil Rights Act, Title VII 1964, amended 1972
Age Discrimination in Employment Act (ADEA) 1967, amended 1978 and 1986
Occupational Safety and Health Act 1970
Vocational Rehabilitation Act 1973
Pregnancy Discrimination Act 1978
Americans with Disabilities Act (ADA) 1990
Civil Rights Act 1991
Family and Medical Leave Act 1993
Federal Minimum Wage Bill 2007
Lilly Ledbetter Fair Pay Act 2009

9–41
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Important Laws
• Equal Employment Opportunity (EEO) Laws
 Prohibit consideration of race, color, religion, national
origin, or gender in employment decision-making.
 Prohibit employment decisions based on biases
against qualified individuals with disabilities and the
elderly.
 Bona Fide Occupational Qualification (BFOQ)
– An exception to protected-class discrimination as long as
the determination not to hire is based on job analysis, not
personal attitude, opinion, bias or stereotype.

9–42
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Affirmative Action
• Affirmative Action
 The legal requirement that federal contractors, some
public employers and private organizations under
court order for short-term remedies must actively
recruit, hire, and promote members of minority groups
and other protected classes if such individuals are
underrepresented in the organization.

9–43
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Workforce Diversity
• Demographic changes in the work force will
necessitate that organizations to develop
introduce SHRM programs focused on recruiting
and hiring diverse individuals.
 Diversity can be a competitive advantage if people in
an organization are accepting of diverse perspectives
and issues and are taught to work well together.

9–44
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Sexual Harassment
• Sexual Harassment Defined
 Actions that are sexually directed, are unwanted, and subject the
worker to adverse employment conditions.

• Major Forms of Sexual Harassment


 Quid pro quo

 Conditions where sexual compliance is required for job-


related benefits and opportunities such as pay and promotion.
 Hostile environment

 Conditions where the victim does not suffer tangible


economic injury but workplace conduct is sufficiently severe
to create an abusive working environment.

9–45
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Table 9.5 EEOC Guidelines for Preventing Sexual
Harassment
• Establish a policy on sexual harassment and distribute a copy to all
employees.
• Develop mechanisms for investigating complaints. The organization needs a
system for complaints that ensures that they are satisfactorily investigated
and acted upon.
• Develop mechanisms for handling accused people so that they are assured of
a fair and thorough investigation that protects their individual rights.
• Communicate to all employees, especially to supervisors and managers,
concerns and regulations regarding sexual harassment and the importance of
creating and maintaining a work environment free of sexual harassment.
• Discipline offenders by using organizational sanctions up to and including
firing the offenders.
• Train all employees, especially supervisors and managers, about what
constitutes sexual harassment, and alert employees to the issues and
behaviors involved.

9–46
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Labor-Management Relations
• Labor–management relations
 The formal process through which labor unions
represent employees to negotiate terms and
conditions of employment, including:
 Pay
 Hours of work
 Benefits
 Other important aspects of the working
environment

9–47
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Implications for Leaders
• HRM is a critical element of the management process
and is essential for long-term organizational success.
• Job analysis is essential to understand what knowledge,
skills, abilities, and attitudes each job requires.
• Evaluate both internal and external sources for recruiting
people.
• Base all HRM decisions on job-related criteria and not
on racial, gender, or other unjustified biases.

9–48
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Implications for Leaders (cont’d)
• To keep pace with rapid changes in global environment,
be sure to upgrade employees’ knowledge and skill base
through training programs.
• Develop unbiased appraisal and reward systems that
are effective and equitable.
• Be innovative in scheduling work, designing jobs, and
rewarding employees so that you can respond effectively
to the changing composition and needs of the workforce.

9–49
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