HRM Revision2014

8/10/2019 HRM Revision2014

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Topic 1:

HRM: A Perspective


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What is HRM?

Refers to policies, practices, andsystems that influence

employees behavior, attitudes,and performance


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HRM Practices

Job Analysis- the process ofgetting detailed information

about jobs.

Recruitment- the processthrough which the organization

seeks applicants.

Training- a planned effort to

facilitate learning of job-relatedknowledge, skills, and

behavior.

Job design -making decisionsabout what tasks should be

grouped into a particular job.

Selection - identifying the

applicants with the appropriate

knowledge, skills, and ability.

Development - the acquisition

of knowledge, skills, andbehavior that improves

employees' ability to meet the

challenges of future jobs.

Performance management - helps ensure that employees activities andoutcomes are congruent with the organizations objectives.

Pay structure, incentives, and benefits. Labor and employee relations.


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Trend 1: Changing Characteristicsof the Workforce

Growing Workforce diversity, which complicates HRM

2010 only 15% of US workforce will be native-born white males

Greater proportion of women and minorities have entered male-

dominated positions Nearly 90% of the growth in the US workforce from 19952008

came from women, immigrants, African-Americans, Hispanic andAsians.

More dual-career couples in the labor force

Fewer than 20% of the workforce fit the male, white, single-earnerhousehold mold

May 2008: 11.6% of US population foreign bornabout half of theyoungest 100 million Americans are immigrants and their US bornchildren.


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Labor shortages/aging workforce vs. Millennials rising

Baby Boomers: expected to create a shortage of skilled workers and perhaps affect

economic output

increase social security and Medicare costs/contributions

some experts predict enough Boomers will remain in the workforce to make upfor any shortfall of workers and reduce the projected govt. unfunded obligations.

Age discrimination litigation is expected to increase: 2008 Supreme Court ruling

on age discrimination changed the burden of proof needed to prove age

discrimination and may further increase litigation

Generation Y/ Millennials / Net Generation: estimated in 2014 there will be almost63 million Gen Y in the workforce while Boomers will decline to 48 million

Expected to have greater career vs. personal demands / career vs. child/elder

care

More racially and ethnically diverse than Boomers and Gen Xers


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HRM must develop and implement programs

Diversity

more flexible work schedules

better training programs

child and elder care arrangements

and career development strategies

Can lead to greater probability of EEO legal actions


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Trend 3: Technological Changes,

Challenges, & Opportunities Great opportunities presented by Web-based systems

Products and services can be delivered more effectively through anoptimal combination of people, software and equipment; thereby,increasing productivity.

Maximize profit margins and sustained customer value

Electronic tracking of HR activities such as turnover and performancereviews. Software is easily customized to each organization.

What are some Opportunities of Internet/Computerization on HRMActivities?

New threats:

Privacy Confidentiality

Intellectual property


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The Strategic Management Process


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Type of Strategy at Each Company Level


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Strategic Human ResourceManagement

Strategic Human Resource Management

The linking of HRM with strategic goalsand objectives in order to improve

business performance and developorganizational cultures that fosterinnovation and flexibility.

Involves formulating and executing HR

systemsHR policies and activitiesthat produce the employee competenciesand behaviors that the company needsto achieve its strategic aims.


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Linking Company-Wide and HR Strategies


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Topic 2:

Job Analysis and HR Planning


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What is Talent Management?

The goal-oriented and integrated

process of planning, recruiting,developing, managing and

compensating employees.


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IntroductionJob analysis is vital to any HRM

programand answers such questions as

How long does it take to complete important tasks?

Which tasks are grouped together as a job?

Can a job be designed so that performance is enhanced?

What behaviors are needed to perform the job?

What traits and experience suit a person to the job?

Can job analysis information help develop HRM programs?


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Uses of Job Analysis Information

Job analysis

Job description

and specification

Recruiting

and selection

decisions

Performance

appraisal

Job evaluation

wage and salary

decisions(compensation)

Training

requirements


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Steps in Job Analysis

1

2

3

4

5

Steps in doing a job analysis:

Review relevant background information.

Decide how youll use the information.

Select representative positions.

Actually analyze the job.

Verify the job analysis information.

6 Develop a job description and job specification.


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HR Planning

Reacting quickly to opportunities

Rapid access to accurate information

Human resources

Businesssuccess

depends on

Assesses the future supply of, anddemand for, human resources

Provides mechanisms to eliminate

gaps between supply and demand

Requires periodic readjustment aslabor market conditions change

Human

resourceplanning


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The Human Resource PlanningProcess

StrategicPlanning

Technologicalforecasts

Economic forecasts

Market forecasts

Organizationalplanning

Investment planning

Annual operating

plans

Annual employment

requirementsNumbers

Skills

Occupationcategories

Human ResourceDemand

Existing employmentinventory

After application ofexpected loss and

attrition rates

Human ResourceSupply


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Analyzing Current Supply ofEmployees

How many and what kinds ofemployees do I currently have, interms of the skills and training

necessary for the future?

This involves more than simplycounting current employees


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The Skills Inventory

ManagementInventory

SkillsInventory

Identify the skills, abilities, experiences, and trainingemployees currently have

Useful for career planning, managementdevelopment, and related activities

In its simplest form, a list of names,characteristics, skills on index cards

Others involve expensive and complexcomputer databases


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Recruitment Sources

Internal Sourcesfaster, cheaper,

more certainty

External Sourcesnew ideas& approaches

Direct Applicants&Referrals-self selection, low cost

Newspaper Advertising-large volume, low qualityrecruits

Electronic Recruiting

Internet

Public & PrivateEmployment Agencies-

headhunters can beexpensive

Colleges& Universities-campus placement services

JOBSJOBS


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1. Provide timely feedback

2. Avoid rude behavior

3. Recruit in teams

2 Steps to EnhanceRecruiter Impact

1. Provide timely feedback

2. Recruit in teams


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Summary

HR planning uses labor supply and demandforecasts to anticipate labor shortages andsurpluses to enhance organizations success

and reduce human suffering.

HR recruiting creates an applicant pool should

a labor shortage occur.


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Internal Sources of Candidates

Foreknowledge of candidates

strengths

and weaknesses

More accurate view of

candidates skills

Candidates have a stronger

commitment

to the company

Increases employee morale

Less training and orientationrequired

Failed applicants become

discontented

Time wasted interviewing

inside candidates who will

not be considered

Advantages Disadvantages


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Finding Internal Candidates

Posting open

job positions

Rehiring former

employees

Hiring-from-Within Tasks

Succession

planning (HRIS)


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Outside Sources of Candidates

1

2

3

4

5

Advertising

Recruiting via the Internet

Employment Agencies

Temp Agencies and AlternativeStaffing

Offshoring/Outsourcing

6

7

8

9

On Demand Recruiting

Services (ODRS)

Executive Recruiters

College Recruiting

Referrals and Walk-ins

Locating Outside Candidates


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Recruiting via the Internet

Advantages

Cost-effective way to publicize job openings

More applicants attracted over a longer period

Immediate applicant responses

Online prescreening of applicants

Links to other job search sites

Automation of applicant tracking and evaluation

Disadvantages

Exclusion of older and minority workers

Unqualified applicants overload the system

Personal information privacy concerns of applicants


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Advertising for OutsideCandidates

The Media Choice

Selection of the best medium depends on the positions for which the firm isrecruiting.

Newspapers: local and specific labor markets

Trade and professional journals: specialized employees

Internet job sites: global labor markets

Constructing (Writing) Effective Ads

Create attention, interest, desire, and action (AIDA).

Create a positive impression (image) of the firm.


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College Recruiting On-campus recruiting goals

To determine if the candidate isworthy of further consideration

To attract good candidates

On-site visits

Invitation letters

Assigned hosts

Information packages

Planned interviews

Timely employment offer Follow-up

Internships


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Sources of Outside

Applicants

Employee

referralsWalk-ins Telecommuters

Other Sources of Outside Applicants

Military

personnel


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The Selection Process

In the past, hiring decisions were based on

subjective likes and dislikes of the boss

Selection tools were designed to aid gut

reactions The selection decision is a series of

steps through which applicants pass

At each step, more applicantsare screened out


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The Selection Process


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Step 1: Preliminary Screening

Nearly all ask for enough information todetermine minimal qualifications

The application eliminates the need forinterviewers to gather basic information

Application blanks vary in length and sophistication

Application blanks are subject to the same legalstandards as any other selection method

They generally limit questions that imply somethingabout the applicants physical health

The first step in most selection processes

involves completing an application form


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Step 1: Preliminary Screening

Applicants who are judged minimally qualifiedproceed to the next phase of the selection process

The weighted application blank is designed to be

scored more systematically and is more like the BIB

The weights aretotaled for eachapplicant, and

the one with thehighest score is

the preferredchoice

Current high and

low performersare compared on

a variety ofcharacteristicsknown at the

time they appliedfor the job

Weights are thenassigned to the

degree ofdifference on

eachcharacteristic


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Step 2: Employment Interview

The interview is the selection technique

most often encountered by persons

applying for jobs

Structure the interview to be reliable andvalid

Train mana ers to use ood interviewin


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Types of Interviews

Interviews Vary Along Two Dimensions

1. How structured it is

2. Whether it focuses on historical information or

hypothetical situations

An unstructured interview has no

predetermined script or protocol

1. Structured interviews are more reliable and valid thanunstructured interviews

2. Standardization lowers the possibility that biases havebeen introduced by the interviewer


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Training for Interviewing

Training programs can reduce many of the

errors found in traditional, unstructured

interviews

Knowing how to ask questions

Understanding how to take behaviorallyoriented notes during the interview

Being aware of potential biases


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Step 4: Employment Tests

Employment tests attempt to measure

Some cost as little as $1 per applicant

The Mental Measurements Yearbooksummarizesthe tests and their effectiveness

It can be expensive to develop an employment test,so many employers purchase existing tests

AttitudesManual

dexterityIntelligence Personality


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Cognitive Ability Tests 3 Dimensions Cognitive Ability Tests:

1. Verbal Comprehension

2. Quantitative Ability

3. Reasoning Ability

Verbal Comprehension -a persons capacity to understandand use written and spoken language.

Quantitative Ability - the speed and accuracy with whichone can solve arithmetic problems.

Reasoning Ability - a persons capacity to invent solutions

to diverse problems.


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Psychomotor Ability Simulations

These psychomotor

ability tests are not

as popular as they

once were

Choice reaction time

Speed of limbmovement

Finger dexterity


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Personality Inventories

Agreeableness

ExtroversionInquisitiveness

Adjustment

Conscientiousness


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Emotional Intelligence

Empathy

Self- awarenessSelf- regulation

Self- motivation

Social Skills


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Polygraph and Honesty Tests

Exemptions

The Employee Polygraph Protection Act of 1988made it illegal for most private organizations to use

the polygraph as a selection device

Polygraph use is legal during an ongoing investigation ofdishonesty if employee rights are safe-guarded

Government agencies

Certain Dept. of Defense and

Dept. of Energy contractors

Private employers whose business involvessecurity and controlled substances


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Polygraph and Honesty Tests

Organizations searching for an alternative to thepolygraph are turning to paper-and-pencil tests

Overt integrity tests ask direct questions andgather

a history of theft and other illegal activities

Personality-based integrity tests assess apredisposition toward deviant and disruptivebehavior

Honesty tests have acceptable levels of validity

and reliability

They can also be used to predict future job

erformance


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Step 4: Reference Checks When applying for a job, you may be

asked for

a list of references

Rarely does someone knowingly include the

nameof a reference who will give a negativeimpression

This built-in bias is why references arecriticized

Equally important are concerns over

the legality


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Step 5: Reference Checks

Fear of being sued led many managers to refuse to providereferences for former employees

Organizations must also be wary of any policy

suggesting that all references be neutral

Many organizations includestatements in employee

handbooks about referencechecking policies

Managers often give outonly verifiable kinds of

information, such as date ofemployment and job title

They could be sued for a negligent referral


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Step 6: Physical Examinations

Physical ability tests include:muscular tension, power, and

endurancecardiovascular endurance

flexibilitybalance

coordination

Ph i l E i i


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Physical Examinations

Reasons for preemployment medicalexaminations:

To verify that the applicant meets the physical

requirements of the position. To discover any medical limitations to be taken

into account in placing the applicant.

To establish a record and baseline of theapplicants health for future insurance orcompensation claims.

To reduce absenteeism and accidents.

To detect communicable diseases that may be


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Step 7: Selection Decision

Put offer in writing

Include salary, benefits, start date, jobresponsibilities

Communicate decision to winner

Set deadline for offer acceptance


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Topic 4:

Interviewing


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Interviews

Selection interviews-a dialogue initiated by one ormore persons to gather information and evaluate thean applicants qualifications for employment.

To increase an interviews utility:

Interviews should be structured, standardized, andfocused on goals oriented to skills and observablebehaviors.

Interviewers should be able to quantitatively rate eachinterview.

Interviewers should have a structured note-takingsystem that will aid recall to satisfying ratings.


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Situational Interview

A situational interview confrontsapplicants on specific issues, questions

or problems likely to arise on the job.

Situational interviews consist of:

experience-based questions

future-oriented questions.

Examples of Questions That Provide Structure


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Examples of Questions That Provide Structure

Situational Questions

1. Suppose a more experienced coworker was not following standard work procedures andclaimed the new procedure was better. Would you use the new procedure?

2. Suppose you were giving a sales presentation and a difficult technical question arose thatyou could not answer. What would you do?

Past Behavior Questions

3. Based on your past work experience, what is the most significant action you have ever takento help out a coworker?

4. Can you provide an example of a specific instance where you developed a salespresentation that was highly effective?

Background Questions

5. What work experiences, training, or other qualifications do you have for working in ateamwork environment?

6. What experience have you had with direct point-of-purchase sales?

Job Knowledge Questions

7. What steps would you follow to conduct a brainstorming session with a group of employeeson safety?

8. What factors should you consider when developing a television advertising campaign?


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What Can Undermine An


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What Can Undermine AnInterviews Usefulness?

Nonverbal behavior

and impression

management

Applicants personalcharacteristics

Interviewers

inadvertent behavior

Factors Affecting

An InterviewsUsefulness

First impressions (snap

judgments)

Interviewers

misunderstanding

of the job

Candidate-order

(contrast) error and

pressure to hire


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Rater Problems

Horn EffectCentral

tendency error

Leniency orharshness

Halo effect


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The Halo Effect

Hard to eliminate when it does occur

To reduce the possibility, evaluate allsubordinates on one dimension beforeproceeding to the next

Not as common

as oncebelieved

Occurs when rater assigns values on thebasis of an overall impression of the ratee

Can be positive or negative

True halo occurs when high or low ratingsare justified by the ratees performance

Halo Error


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Leniency or Harshness Error

Consequently,leniency or

harshness errorsmay occur

Asking raters todistribute ratings

can force a normaldistribution

Raters can assesstheir tendencies by

examining their

ratings

Being objective ishard for everyone


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Topic 5:

Compensation and Benefits


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Objective of Compensation

Adequate

Acceptable to

employees

Provides

incentive

Secure

Cost effective

Balanced

Equitable

Effectivecompensation


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Determination of Individual Pay

Changed emphasis on job roles, skills, knowledge

Emphasizes the norms of enterprisewithout having employees change jobs

Employees performing the same job make substantiallydifferent contributions to goals

Satisfies the internal equity norms of employees

Recognizes market changes between jobs in thesame grade without overhauling the whole system

Reasons to pay different rates for the same job


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Methods of Payment

Time worked

Output produced Skills

Knowledge

Competencies A combination of these

factors

Introduction


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Introduction

Employers View:

Pay is critical inattaining strategicgoals.

Pay impacts

employee attitudesand behaviors.

Employeecompensation is

significantorganizational cost.

Employees View:

Policies having to dowith wages, salaries,and other earningsaffect their overall

income and thus theirstandard of living.

Both level of pay andfairness compared with

others pay areimportant.

CURRENT TRENDS IN


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CURRENT TRENDS INCOMPENSATION

CompetencySkill-Based Pay employee is paid for the range, depth, and

types of skills and knowledge he is

capable of Competencies- demonstrable

characteristics of the person, includingknowledge, skills, and behaviors, thatenable performance

CURRENT TRENDS IN


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Skill-based pay programs

employer defines specific skills,

and has a method fordetermining the persons paybased on his or her skillcompetencies.

CURRENT TRENDS IN


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Broadbanding- collapsingsalary grades and ranges into

just a few wide levels or bands,each of which contains arelatively wide range of jobs andsalary levels.

CURRENT TRENDS IN


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emphasis on rewarding individuals for theirskills and competencies, and to definingsalary grades much more broadly.

emphasis on performance-based variablepay.

emphasis on giving individuals a choice inthe rewards they receive


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Piecework - Pay is tied directly to whatthe worker produces


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Stock option- the right to purchase aspecific number of shares of companystock at a specific price during a period of

time

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Incentives for Salespeople

Most companies pay their salespeople acombination of salary and commissions

Typically a 70% base salary/30% incentivemix


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Employee stock ownership plan(ESOP), a corporation contributes sharesof its own stockor cash to be used to

purchase such stockto a trustestablished to purchase shares of thefirms stock for employees


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Gainsharingplans - want toencourage improved employeeproductivity by sharing resulting

financial gains with employees

Types of Compensation


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Types of Compensation

Base Pay, Commissions, Overtime Pay Bonuses, Profit Sharing, Merit Pay, Stock Options

Benefits: dental, insurance, medical, vacation,leaves, retirement

Travel, meal, housing allowance

C ti


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Compensation

Direct Indirect Non-financial

WagesSalary

Bonuses

Commissions

InsuranceVacationChildcare

PraiseSelf-esteemRecognition


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What is the purpose ofcompensation?


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Topic 6:

Performance Appraisal

Performance Management System


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Performance Management System

DefiningPerformance

EvaluatingPerformance

ProvidingFeedback onPerformance

The process by which executives, managers,and supervisors work to align employee

performance with the firms goals

An effective performance management process

Has a precise definition of

excellent performanceUses measurements of

performance

Provides feedback to

employees

What?


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What?

Performance

Management

An integrated

approach to ensuring

that an employees

performance supports

and contributes to the

organizations

strategic aims.

Aim is to improve organizational, functional,unit and individual performance by linking theobjectives of each. It is done through defininggoals, developing skills, appraisingperformance, provide feedback and rewarding

employees.

Incorporate job design, recruitment andselection, training and development, careerplanning and compensation and benefits, inaddition to performance appraisal.

What?


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What?

Performance Appraisal

Setting work

standards, assessing

performance, and

providing feedback to

employees to

motivate, correct, and

continue their

performance.

Concerned with determining how wellemployees are doing their jobs against setof criteria, communicating that informationto employees and establishing a plan for

performance improvement.

3 Purposes of Performance


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pManagement

Strategic

DevelopmentalAdministrative

Recommendations - Developing anEffective Performance Management


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Effective Performance ManagementSystem

Mirror the corporate culture and values

Have visible CEO and senior management support.

Focus on the right company performance measures.

Link job descriptions to the performance managementsystem.

Differentiate performance fairly and effectively. Train managers in performance management.

Communicate the total rewards system.

Require managers to search, offer and acquire regularperformance feedback.

Set clear expectations for employee development. Track effectiveness of the performance management

system.

Adjust the system as required.

Ethics and Fair Treatment at


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Work The Meaning of Ethics

The principles of conduct governing an individual or a group.

The standards you use to decide what your conduct should be.

Ethical behavior depends ona persons frame of reference.

Ethical Decisions

Normative judgments

Morality

Ethics and the Law


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Ethics and the Law

A behavior may be legal

but unethical.

A behavior may be illegal

but ethical.

A behavior may be both

legal and ethical.

A behavior may be bothillegal and unethical.

Ethics and

Behaviors

Ethics, Fair Treatment,d J ti


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and Justice

Distributive justice

Components of Organizational Justice

Procedural justice

How Managers Use PersonnelMethods To Promote Ethics


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Methods To Promote Ethics

and Fair Treatment

Emphasizing

ethics and

fairness inpersonnel

selection

Disciplining

all instances

of unethical

conduct

Providing

mandatory

employee ethics

training

Ensuring fair and

objective

performance

appraisals

HRM Practices that

Promote Ethics

HRM Related Ethics Activities


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HRM-Related Ethics Activities Selection

Fostering the perception of fairness in the processes

of recruitment and hiring of people: Formal hiring procedures that test job competencies

Respectful interpersonal treatment of applicants

Feedback provided to applicants

Training Employees

How to recognize ethical dilemmas

How to use ethical frameworks to resolve problems

How to use HR functions in ethical ways

HRM-Related Ethics Activities


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(contd) Performance Appraisal Appraisals that make it clear that the company adheres to high ethical

standards by measuring and rewarding employees who follow thosestandards.

Standards are clearly defined.

Employees understand the basis for appraisals.

Appraisals are objective.

Reward and Disciplinary Systems The organization swiftly and harshly punishes unethical conduct.

HRM-Related Ethics Activities


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(contd) HRs Ethics Compliance Activities

Complying with the Sarbanes-Oxley Act of 2002

Requires that CEOs and CFOs of publicly traded companiespersonally attest to accuracy of their companies financial

statements and that their internal controls are adequate. Increased the need for ethics training and verification of

training.

Firms are using online ethics training programs to comply withthe acts requirements.

Managing EmployeeDi i li


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Discipline

Clear rules

and regulations

A system of

progressive penalties

Fair and Just Discipline Process

A formal unbiased

appeals process

Employee Privacy


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Employee Privacy

Employee privacy violations upheld by courts: Intrusion or surveillance

Publication of private matters

Disclosure of medical records

Appropriation of an employees name or likeness Actions triggering privacy violations:

Background checks

Monitoring off-duty conduct and lifestyle

Drug testing

Workplace searches

Monitoring of workplace

Managing Dismissals


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Managing Dismissals Dismissal

Involuntary termination of an employees employment

with the firm. Terminate-at-Will Rule

Without a contract, the employee can resign for any reason, at will, andthe employer can similarly dismiss the employee for any reason (or noreason), at will.

Wrongful Discharge

An employee dismissal that does not comply with the law or does notcomply with the contractual arrangement stated or implied by the firm viaits employment application forms, employee manuals, or other promises.

Managing Dismissals (contd)


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Managing Dismissals (cont d)

Statutory exceptionsCommon law

exceptions

Protections Against

Wrongful Discharge

Public policy

exceptions

Grounds for Dismissal


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Grounds for Dismissal

Unsatisfactoryperformance

Misconduct

Lack of qualifications

Changed requirements of

(or elimination of) the job

Bases forDismissal

Managing Dismissals (contd)


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Managing Dismissals (cont d) Fostering Perceptions of Fairness in Dismissals

Provide the employee with full explanations of why and how termination

decisions were made. Institute a formal multi-step procedure (including warning) and establish

a neutral appeal process.

Have the employees direct supervisor inform

the employee of the dismissal decision.

Security Measures Disable employee passwords and network access.

Collect all company property and keys.

Escort employee from company property.

HRM Revision2014

Documents

Transcript of HRM Revision2014