Ch 12

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 organization’s strategic
objective but actively pursue an ongoing, integrated plan for
furthering the organization’s performance

●Higher employee productivity
●Stronger financial results
●Achieve organization’s strategic goals
●Key players on management team

Manager’s Challenge: UPS Buffalo, New York

Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
2

Human Resource Management

Matching process,
All managers Employees are integrating the
are resource viewed as organization’s
managers assets goals with
employees’ needs

How a company manages its workforce may be single
more important factor in sustained competitive success
3

Current Strategic Issues
Determine a company’s 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?

4

Human Resource Management Goals
HRM Environment
Company Strategy Legislation
Trends in society
International events
Changing technology
Attract an Effective Workforce
HRM planning
Job analysis
Forecasting
Recruiting
Selecting
Maintain an Effective Workforce
Develop an Effective Workforce
Wage and salary
Benefits Training
Labor relations Development
Terminations Appraisal

5

Environmental Influences on HRM

 Competitive Strategy
– Building Human Capital
– Information Technology
 Federal Legislation

6

Three Ways HR Is Changing

1
Focus on building human capital

2
Development of
global HR strategies
3 IHRM

The using of
information technology
7

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
8

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

9

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 Laws
 Health/Safety Laws

11

The Changing Social Contract
New Contract Old Contract

Employee Employability, personal responsibility Job security
Partner in business improvement A cog in the machine
Learning Knowing

Employer Continuous learning, lateral career Traditional compensation package
movement, incentive compensation
Creative development opportunities
Challenging assignments Standard training program
Information and resources 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

 Teams and Projects
 Temporary Employees
 Technology

 Work-Life Balance
 Downsizing

13

HR Issues in the Teams and
New Workplace Projects

 Teams and Projects – major trend in today’s workplace
 With emphasis on projects, distinctions between job
categories and descriptions are collapsing
 Many of today’s 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.
14

HR Issues in the Temporary
New Workplace 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

15

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 organization’s physical
location

16

HR Issues in the Work-Life
New Workplace Balance
Many European companies ahead of U.S. companies

 Telecommuting is one way organizations
help employees lead more balanced lives
 Flexible scheduling important in today’s
workplace – 27% of workforce/flexible hours
 Broad Work-Life Balance initiatives – critical
retention strategy – on-site gym & childcare,
paid leaves & sabbaticals
17

HR Issues in the Downsizing
New Workplace

 Downsizing = intentional, planned reduction in the size
of a company’s 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
18

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

19

Matching Model
Attracting an Effective Workforce

 An employee selection approach in
which the organization and the applicant
attempt to match each other’s needs,
interests, and values

20

Attracting an Effective Workforce
HR Planning Choose Recruiting
Choose Recruiting Select the Welcome New
Retirements Sources
Sources Candidate Employee
Growth Want ads Application
Want ads
Resignations Headhunters Interview
Headhunters
Internet Tests
Internet
Company Needs Employee Contributions
Strategic goals Matching Model Ability
Current & future competencies Education
Market changes Creativity
Employee turnover Match with Commitment
Corporate culture Expertise

Company Inducements Employee Needs
Pay and benefits Stage of career
Meaningful work Match with Personal values
Advancement Promotion aspirations
Training Outside interests
Challenge Family concerns
21

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

22

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

23

Basic Building Blocks
of HR Management

Job Analysis

Job Description

Job Specification

24

Selecting

 Selection = process of determining the skills,
abilities, and other attributes a person needs
to perform a particular job
 Validity = relationship between an applicant’s
score on a selection device and his or her
future job performance

25

Selecting

 Application form - device used for collecting
information about an applicant’s education,
previous job experience, and other
background characteristics
 Research = biographical information
inventories can validly predict future job
success

26

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
27

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

28

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
29

Inappropriate or Illegal Questions
Employment Applications and Interviews
 Race-related questions
 Age
 Religion
 Gender
 National origin
 Marital/family status

30

Testing and Assessment

 Employment Test = written or computer-
based 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

31

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

32

Performance Appraisal

 Process of observing and evaluating an
employee’s performance, recording the
assessment, and providing feedback to the
employee
 Steps
● Observing and assessing performance
● Recording the assessment
● Providing feedback to employee
33

Making Performance Appraisals A
Positive Force

1. The accurate assessment of performance
through the development and application of
assessment systems such as a rating scale
2. Training managers to effectively use the
performance appraisal interview to provide
feedback that reinforces good performance
and motivate employee development

34

Assessing Performance Accurately

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

35

Behaviorally Anchored Rating Scale
Job: Production Line Supervisor - Work Dimension: Work Scheduling

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

1 2 3 4 5
Have a sound plan but
Usually satisfy time
neglect to keep trace of
constraints, with time and
target dates or to report
cost overruns coming up
schedule slippages or other
infrequently
problems as they occur
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.
36

Maintaining an Effective Workforce

 Compensation

– Wage and Salary Systems
– Compensation Equity
– Pay for Performance
 Benefits

 Termination

Ethical Dilemma: A Conflict of Responsibilities

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

Ch 12

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