Human Resource Management

Chapter 12

The Strategic Role of Human Resource Management

Human Resource management has shed its old personnel image and gained recognition as a vital player in corporate strategy HRM departments not only support the organizations strategic objective but actively pursue an ongoing, integrated plan for furthering the organizations performance
Higher

employee productivity Stronger financial results Achieve organizations strategic goals Key players on management team
Managers Challenge: UPS Buffalo, New York

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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
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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
Experiential Exercise: Do You Want to be an HR Manager?

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Human Resource Management Goals

Company Strategy
HRM Environment Legislation Trends in society International events Changing technology

Attract an Effective Workforce

HRM planning Job analysis Forecasting Recruiting Selecting

Maintain an Effective Workforce

Wage and salary Benefits Labor relations Terminations

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Develop an Effective Workforce

Training Development Appraisal

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Environmental Influences on HRM

Competitive Strategy

Building Human Capital Information Technology

Federal Legislation

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Three Ways HR Is Changing

1 Focus on building human capital 2 3 Development of global HR strategies IHRM

The using of information technology

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Human Capital - IHRM

Human Capital = economic value of the knowledge, experience, skills, and capabilities of employees IHRM = addresses the complexity that results from recruiting, selecting, developing, and maintaining a diverse workforce on a global scale

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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

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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

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Major Federal Laws - HRM

Exhibit 12.3

Equal Opportunity/Discrimination Laws Compensation/Benefits Laws Health/Safety Laws

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The Changing Social Contract

New Contract
Employee
Employability, personal responsibility Partner in business improvement Learning

Old Contract
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.

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HR Issues in the New Workplace

Teams and Projects Temporary Employees

Technology
Work-Life Balance Downsizing

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HR Issues in the New Workplace

Teams and Projects

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 do their work using advance information technologies.

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HR Issues in the New 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

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HR Issues in the New Workplace

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

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HR Issues in the New 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

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HR Issues in the New Workplace

Downsizing

Downsizing = intentional, planned reduction in the size of a companys workforce Managers 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

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HR Issues in the New Workplace

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

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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

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Attracting an Effective Workforce

HR Planning
Retirements Growth Resignations

Choose Recruiting Sources

Want ads Headhunters Internet

Select the Candidate

Application Interview Tests

Welcome New Employee

Company Needs
Strategic goals Current & future competencies Market changes Employee turnover Corporate culture

Matching Model
Match with

Employee Contributions
Ability Education Creativity Commitment Expertise

Company Inducements
Pay and benefits Meaningful work Advancement Training Challenge
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Employee Needs

Match with

Stage of career Personal values Promotion aspirations Outside interests Family concerns

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Human Resource Planning

Forecasting of human resource needs and the projected matching of individuals with expected vacancies

? = New technologies emerging ? = Volume of business likely next 5-10 years

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

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Recruiting

Recruiting = activities or practices that define the desired characteristics of applicants for specific jobs

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 - fastest-growing approach to recruiting

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Basic Building Blocks of HR Management

Job Analysis Job Description

Job Specification

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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

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Selecting

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

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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
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Reasons For Not Asking About Home Ownership

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

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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

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Inappropriate or Illegal Questions

Employment Applications and Interviews

Race-related questions Age Religion Gender National origin Marital/family status

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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

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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 $100 billion/year

On-the-job training = an experienced employee adopts a new employee to teach him or her how to perform job duties
Cross

training

Mentoring

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Performance Appraisal

Process of observing and evaluating an employees performance, recording the assessment, and providing feedback to the employee Steps

Observing and assessing performance Recording the assessment Providing feedback to employee

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Making Performance Appraisals A Positive Force

1.

2.

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

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Assessing Performance Accurately

360 Feedback Process Performance Evaluation Errors Stereotyping Halo effect BARS Behaviorally-anchored rating scale

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Behaviorally Anchored Rating Scale

Job: Production Line Supervisor - Work Dimension: Work Scheduling
Have no plan or schedule of work and no concept of realistic due dates Make a list of due dates and revise them but are frequently surprised by unforeseen events Develop a comprehensive schedule, observe target dates, and update the status of operations relative to plans, making schedule modifications as quickly as necessary

Have a sound plan but neglect to keep trace of target dates or to report schedule slippages or other problems as they occur
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Usually satisfy time constraints, with time and cost overruns coming up infrequently

Sources: Based on J.P. Campbell, M.D. Dunnette, R.D. Arvey, and L.V. Hellervik, The Development and Evaluation of behaviorally Based Rating Scales,Journal of Applied Psychology 57 (1973), 25-22; and Francine Alexander, performance Appraisals, Small Business Reports (March 2989), 20-29.

Maintaining an Effective Workforce

Compensation

Wage and Salary Systems

Compensation Equity
Pay for Performance

Benefits Termination
Ethical Dilemma: A Conflict of Responsibilities

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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
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