Management Chapter 12

Front 1

Human Resource Management

Back 1

Human Resource Management (HRM)
Activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals.

HRM activities
Recruitment and selection
Training and development
Performance appraisal and feedback
Pay and benefits
Labor relations

Front 2

Strategic Human Resource Management

Back 2

The process by which managers design the components of a HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals.

Front 3

components of HRM

Back 3

Recruitment and Selection
Used to attract and hire new employees who have the abilities, skills, and experiences that will help an organization achieve its goals.
Training and Development
Ensures that organizational members develop the skills and abilities that will enable them to perform their jobs effectively in the present and the future
Changes in technology and the environment require that organizational members learn new techniques and ways of working
Performance Appraisal and Feedback
Provides managers with the information they need to make good human resources decisions about how to train, motivate, and reward organizational members
Feedback from performance appraisal serves a developmental purpose for members of an organization
Pay and Benefits
Rewarding high performing organizational members with raises, bonuses and recognition.
Increased pay provides additional incentive.
Benefits, such as health insurance, reward membership in firm.
Labor relations
Steps that managers take to develop and main

Front 4

Equal Employment Opportunity (EEO)

Back 4

The equal right of all citizens to the opportunity to obtain employment regardless of their gender, age, race, country of origin, religion, or disabilities.
Equal Employment Opportunity Commission (EEOC) enforces employment laws.

Front 5

Contemporary challenges for managers

Back 5

How to eliminate sexual harassment
How to make accommodations for employees with disabilities
How to deal with employees who have substance abuse problems
How to manage HIV-positive employees and employees with AIDs

Front 6

Human Resource Planning (HRP)

Back 6

Activities that managers engage in to forecast their current and future needs for human resources.


Demand forecasts
Estimates the qualifications and numbers of employees the firm will need given its goals strategies.

Supply forecasts
Estimates the availability and qualifications of current employees now and in the future, as well as the supply of qualified workers in the external labor market.

Front 7

Outsourcing

Back 7

Using outside suppliers and manufacturers to produce goods and services
Using contract workers rather than hiring them.
More flexible for the firm.
Provides human capital at a lower cost.

Problems with Outsourcing
Loss of control over output; outsource contractors are not committed to the firm.
Unions are against outsourcing that has potential to eliminate member’s jobs.

Front 8

Job Analysis

Back 8

Identifying the tasks, duties and responsibilities that make up a job and the knowledge, skills, and abilities needed to perform the job.
Should be done for each job in the organization.

Front 9

External Recruiting

Back 9

Looking outside the organization for people who have not worked at the firm previously.
Newspapers advertisements, open houses, on-campus recruiting, employee referrals, and through the Internet.

Advantages of External Recruiting
Having access to a potentially large applicant pool
Being able to attract people who have the skills, knowledge, and abilities an organization needs
Bringing in newcomers who may have a fresh approach to problems and be up to date on the latest technology

Disadvantages of External Recruiting
Relatively high costs
Candidates may lack knowledge about the inner workings of the organization
May need to receive more training
Uncertainty concerning whether they will actually be good performers

Front 10

Internal Recruiting

Back 10

Managers turn to existing employees to fill open positions
Benefits of internal recruiting:
Internal applicants are already familiar with the organization
Managers already know candidates
Can help boost levels of employee motivation and morale

Front 11

The selection Process

Back 11

Managers find out whether each applicant is qualified for the position and likely to be a good performer





Background Information
Helpful to screen out applicants who are lacking key qualifications
Determine which qualified applicants are more promising than others
Interviews
Structured interviews where managers ask each applicant the same job-related questions.
Unstructured interviews that resemble normal conversations.
Usually structured interviews preferred; bias is possible in unstructured interviews.
Paper-and-Pencil Tests
Ability tests assess the extent to which applicants possess the skills necessary job performance
Managers must have sound evidence that the tests are good predictors of performance
Physical ability tests
Measures of dexterity, strength, and stamina for physically demanding jobs
Measures must be job related to avoid discrimination.
Performance tests
Tests that measure an applicant’s current ability to perform the job or part of the job such as requiring an applicant to take t

Front 12

Reliability

Back 12

the degree to which the tool measures the same thing each time it is used

Front 13

Validity

Back 13

the degree to which the test measures what it is supposed to measure

Front 14

Training

Back 14

Teaching organizational members how to perform current jobs and helping them to acquire the knowledge and skills they need to be effective performers.

Front 15

Development

Back 15

Building the knowledge and skills of organizational members to enable them to take on new responsibilities and challenges.

Front 16

Needs Assessment

Back 16

An assessment of which employees need training or development and what type of skills or knowledge they need to acquire.



..
Classroom Instruction
Employees acquire skills in a classroom setting.
Includes use of videos, role-playing, and simulations.
On-the-Job Training
Employee learning occurs in the work setting as new worker does the job.
Training is given by co-workers and can be done continuously to update the skills of current employees.
Varied Work Experiences
Top managers have need to and must build expertise in many areas.
Employees identified as possible top managers are assigned different tasks and a variety of positions in an organization.
Formal Education
Tuition reimbursement is common for managers taking classes for MBA or job-related degrees.
Long-distance learning can also be used to reduce travel and other expenses for managerial training.

Front 17

Pay

Back 17

Includes employees’ base salaries, pay raises, and bonuses
Determined by characteristics of the organization and the job and levels of performance
Benefits are based on membership in an organization

Front 18

Benefits

Back 18

Legally required: social security, workers’ compensation, unemployment insurance
Voluntary: health insurance, retirement, day care
Cafeteria-style benefits plans allow employees to choose the best mix of benefits for them; can be hard to manage.

Front 19

Unions

Back 19

Represent worker’s interests to management in organizations.
The power that a manager has over an individual worker causes workers to join together in unions to try to prevent this.

Front 20

Collective bargaining

Back 20

Negotiation between labor and management to resolve conflicts and disputes about issues such as working hours, wages, benefits, working conditions, and job security.

Front 21

Formal appraisals

Back 21

An appraisal conducted at a set time during the year and based on performance dimensions that were specified in advance

Front 22

Informal appraisals

Back 22

An unscheduled appraisal of ongoing progress and areas for improvement