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CHAPTER 9HUMAN RESOURCE MANAGEMENTNOTESI. Introduction A. An organization needs to have people with the right skills and motivation in order to achieve its mission. Managing all of this and focusing everything on the overall strategy, and therefore the mission of the organization, is referred to as ...

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CHAPTER 9 HUMAN RESOURCE MANAGEMENT NOTES I. Introduction A. An organization needs to have people with the right skills and motivation in order to achieve its mission. Managing all of this and focusing everything on the overall strategy, and therefore the mission of the organization, is referred to as strategic human resource management. II. Human Resource Management (HRM) A. Analysis 1.

Job analysis refers to studying jobs to understand what knowledge, skills, abilities and attitudes are needed as a foundation for the behaviors that would help the jobholder perform that job successfully.

2. Job descriptions list the tasks, behaviors, responsibilities and other information that help explain a job. 3. Job specifications list the specific knowledge, skills, abilities, and other employee characteristics that are needed in order to perform a job successfully. B. Forecasting 1.

Demand forecasting involves 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.

2. Supply forecasting involves determining what human resources will be available both inside and outside of the organization. C. Recruiting

(Refer to Table 9.1) 1.

Recruitment is the process of finding and attracting job candidates who are qualified to fill job vacancies. a.

Internal recruitment involves identifying internal candidates and encouraging them to apply for and be willing to accept organizational jobs that are vacant. o

Methods of internal recruitment include job banks, employee referral systems, job postings and advertisements in company publications.

b. External recruitment involves advertising for and soliciting applicants from outside the organization. o

External

sources

include

walk-ins,

public

employment

agencies, temporary- help agencies, labor unions, educational institutions, referrals from current or past employees, recruiting employees from competitors, newspaper and trade publications, and the Internet. D. Selecting

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1.

Selection is the process of evaluating and choosing the best-qualified candidate from the pool of applicants available for the position. a.

Validity means that the method used to make employment decisions must accurately measure or predict what it is intended to measure or predict.

E. Selection Methods 1.

Application forms serve as prescreening devices to help determine whether an applicant meets the minimum requirements of a position and allow preliminary comparisons with the credentials of other candidates.

2. Employment tests are defined by the EEOC’s Uniform Guidelines on Employee Selection as any instrument, device or information used to make an employment decision. a.

Written tests are those that assess a candidate’s skills and abilities through some form of a “paper and pencil” test. Computerized tests are included in this category.

b. Performance tests require the job candidate to actually perform tasks that are some part, usually crucial parts, of a job. o

Work samples are performance tests that ask a job candidate to actually perform important tasks that are part of the job.

o

Assessment centers are usually more appropriate to judge a candidate’s predicted performance in managerial positions and other complex jobs.

c.

Personality tests are designed to judge whether a candidate possesses characteristics and attitudes that are in line with the organization’s core values and culture.

3. Interviews are relatively formal, in-depth conversations conducted for the purpose of assessing a candidate’s knowledge, skills, and abilities, as well as providing information to the candidate about the organization and potential jobs. a.

Refer to Table 9.2 for guidelines on appropriate interview questions.

F. Training 1.

Training is a planned effort to assist employees in learning job-related behaviors that will improve their performance.

2. Types of Training a.

Orientation is the process of familiarizing new employees with the organization, their job, and their work unit.

b. Technical training programs are designed to provide employees with specialized skills and knowledge in the methods, processes, and techniques associated with their jobs or trade. c.

Management development programs are designed to improve the

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technical,

interpersonal,

and conceptual

skills of supervisors,

managers, and executives. G. Appraising 1.

Performance appraisal is a systematic process of evaluating each employee’s job- related achievements, strengths, and weaknesses, as well as determining ways to improve performance. a.

Managers can use performance appraisal information to motivation employees, for personnel movement decisions, for determine training needs, and to provide feedback for improvement and personal development.

2. Appraisal Methods a.

Graphic rating scales assess employees on a series of performance dimensions, such as initiative, tardiness, and accuracy of work, using a five- or seven-point scale.

b. BARS (behavioral anchored rating scales) use more detailed examples of job behaviors to represent different levels of performance. c.

360-degree

feedback

includes

feedback

from

four

sources:

supervisor, subordinates, coworkers, and self-appraisal. 3. Problems with performance appraisal a.

Halo effect occurs when a manager rates an employee high or low on all items because of one characteristic.

b. Rater patterns refer to an evaluator tending to rate everyone based on a set pattern. 

Central tendency occurs when the rater judges all employees as average, even though their performance varies.



Leniency error occurs when the rater evaluates some in a group higher than they should be or when the rater is unjustifiably easy in evaluating performance.



Severity error occurs when a rater tends to be unjustifiably harsh in evaluating employee performance.



Contrast error refers to the tendency to rate employees relative to each other rather than to performance standards.



Recency error means focusing only on an employee’s most recent performance rather than considering the employee’s performance over the entire appraisal period.

H. Rewarding 1.

Compensation consists of monetary payments and rewards that go to employees. a.

Base pay includes the wages and salaries that employees receive for performing their jobs.

b. Incentives refer to such things as bonuses, commissions, profitsharing and stock options. Refer to Table 9.3 for examples. c.

Indirect compensation includes many forms of benefits.

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2. Benefits are indirect compensation beyond wages or salaries that are given to employees as a reward for organizational membership. Refer to Table 9.4 for examples. 3. External fairness refers to expectations that pay for a job in one organization is fair relative to the pay for the same job in other organizations. 4. Internal fairness refers to expectations that the pay for the job the individual is performing within the organization is fair relative to the pay of higher- and lower- level jobs in the same organization. 5. Employee fairness refers to expectations that individuals on a given job are paid fairly relative to coworkers on the same job. III. Legal Environment of Strategic Human Resource Management A. Important Laws Refer to Table 9.5 1.

The Civil Rights Act of 1964, the Civil Rights Restoration Act of 1988, and the Civil Rights Act of 1991 are equal employment opportunity (EEO) laws that prohibit the consideration of race, color, religion, national origin, or gender in employment decision making. a.

The Civil Rights Act of 1964 established the Equal Employment Opportunity Commission (EEOC) as the organization responsible for enforcing federal laws related to job discrimination.

2. The Age Discrimination in Employment Act of 1967 prohibits employment decisions based on biases against the elderly. 3. The Americans with Disabilities Act of 1990 (ADA) prohibits employment decisions based on biases against people with disabilities. 4. A bona fide occupational qualification is an exception. That is, if a qualification is a necessary part of the job, then it is not necessarily illegal to base employment decisions on that criterion, even if it tends to discriminate against a class of people protected by the laws. 5. The Family and Medical Leave Act of 1993 (FMLA) allows individuals to take up to 12 weeks of unpaid leave per year for the birth or adoption of a baby or the illness of a family member. 6. Affirmative action refers to the legal requirement that federal contractors, some public employees, and private organizations under court order for short-term remedies must actively recruit, hire, and promote members of minority groups and other protected classes. a.

The organization’s workforce should reflect the diversity of the local community.

7. Workforce diversity refers to the variety of people with different backgrounds, characteristics, perspectives, etc. in an organization. 8. Sexual harassment refers to actions that are sexually directed, are unwanted, and subject an employee to adverse employment conditions. a.

“Quid pro quo” harassment means that sexual compliance is required for job- related benefits and opportunities such as pay and

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promotions. b. Hostile environment harassment refers to sexual harassment in which the victim does not suffer tangible economic injury, but workplace conduct is sufficiently severe to create an abusive working environment.

IV. Labor–Management Relations A. Labor–management relations refers to the formal process through which labor unions represent employees to negotiate terms and conditions of employment, including pay, hours of work, benefits, and other important aspects of the working environment. 1.

The National Labor Relations Board (NLRB) is the government agency that oversees this process in the private sector by enforcing the provisions of the Wagner Act of 1935 and the Taft-Hartley Act of 1947.

V. Implications for Leaders A. In making decisions involving human resources, managers should keep the following things in mind. 1.

HRM is a critical element of the strategic planning process and is essential for long- term organizational success.

2. Job analysis is essential to understand what knowledge, skills, abilities, and attitudes each job requires. 3. Carefully evaluate both internal and external sources for recruiting people. 4. Base all HRM decisions on job-related criteria and not on racial, gender, or other unjustified biases. 5. Keep pace with rapid changes in technology and be sure to upgrade the knowledge and skill base of employees through training programs. 6. Develop unbiased appraisal and reward systems that are effective and equitable. 7. 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. By managing human resources well, the organization will have the right people in the right jobs. The right people, guided and motivated to achieve the organization’s goals and overall strategy, are the most important assets of the organization. The right people include managers who are successful leaders.

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REVIEW QUESTIONS AND SUGGESTED ANSWERS 1. (LEARNING OUTCOME 1) Identify the components of the strategic human resource management planning process. 

The primary components of the human resource planning process are shown in Figure 9.1. These components include analysis, forecasting, recruiting, selecting, training, appraising, and rewarding.

2. (Learning outcome 2) Explain the importance of job analysis. 

Job analysis is extremely important because it results in understanding what knowledge, skills, abilities and attitudes are needed by a jobholder for that jobholder to be successful. Without job analysis, one would not know what is required to do the job properly. Therefore, the right person could not be hired nor guided properly to be successful. Ultimately, the mission and vision of the organization could not be achieved.

3. (Learning outcome 3) Discuss the different recruiting techniques used by organizations. 

Recruitment is the process of finding and attracting job candidates who are

qualified to fill job vacancies. Internal recruitment involves identifying internal candidates and encouraging them to apply for and be willing to accept organizational jobs that are vacant. Methods of internal recruitment include job banks, employee referral systems, job postings and advertisements in company publications. 

External recruitment involves advertising for and soliciting applicants from

outside the organization. External sources include walk-ins, public employment agencies, temporary- help agencies, labor unions, educational institutions, referrals from current or past employees, recruiting employees from competitors, newspaper and trade publications, and the Internet. 4. (Learning outcome 4) Clarify the major selection methods. What format is considered most appropriate? 

Application forms serve as prescreening devices to help determine whether an

applicant meets the minimum requirements of a position and allow preliminary comparisons with the credentials of other candidates. 

Employment tests are defined by the EEOC’s Uniform Guidelines on Employee

Selection as any instrument, device or information used to make an employment decision. Written tests are those that assess a candidate’s skills and abilities through some form of a “paper and pencil” test. Computerized tests are included in this category. 

Performance tests require the job candidate to actually perform tasks that are

some part, usually crucial parts, of a job. Work samples are performance tests that ask a job candidate to actually perform important tasks that are part of the job.

6

Assessment centers are usually more appropriate to judge a candidate’s predicted performance in managerial positions and other complex jobs. 

Personality tests are designed to judge whether a candidate possesses

characteristics and attitudes that are in line with the organization’s core values and culture. 

Interviews are relatively formal, in-depth conversations conducted for the

purpose of assessing a candidate’s knowledge, skills, and abilities, as well as providing information to the candidate about the organization and potential jobs. 

Typically, a structured interview format works best. A specific list of topics and

the order in which they will be covered should be determined in advance. This helps interviewer(s) get more accurate information and increases the validity of the interview. 5. (Learning outcome 5) Discuss different types of training. How does an organization identify the need for training of its employees? 

Training is a planned effort to assist employees in learning job-related behaviors that will improve their performance. Orientation is the process of familiarizing new employees with the organization, their job, and their work unit. Technical training programs are designed to provide employees with specialized skills and knowledge in the methods, processes, and techniques associated with their jobs or trade. Management development programs are designed to improve the technical, interpersonal, and conceptual skills of supervisors, managers, and executives.



An organization’s training needs can be identified through three types of needs assessment:

organizational,

task,

and

individual.

Organizational

assessment

determines where in the organization the training is needed; task assessment determines what is to be trained; and individual assessment determines who needs to be trained based on actual versus desired skills. 6. (Learning outcome 6) Why are performance appraisals considered valuable in the organization? 

Performance appraisals are valuable aids in making many HRM decisions; they are essential for distinguishing between good and poor performers. Managers can use performance appraisal information in four ways: motivation, personnel movement, training, and feedback.

7. (Learning outcome 7) Explain the different ways the organization rewards employees. What are some of the common types of benefits used in organizations? 

Compensation refers to wages paid directly for time worked, incentives for

better performance, and indirect benefits that employees receive as part of their employment relationship with the organization. As a result, benefits are typically considered to be a part of an employee’s compensation. Benefits themselves are an indirect type of compensation, which are typically payments beyond wages or salaries that are given to employees as a reward for organizational membership and no performance. Examples of various benefits by category are shown in Table 9.4.

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8. (Learning outcome 8) Explain the key factors of the legal environment in which human resource management functions. 

The Civil Rights Act of 1964, the Civil Rights Restoration Act of 1988, and the Civil Rights Act of 1991 are equal employment opportunity (EEO) laws that prohibit the consideration of race, color, religion, national origin, or gender in employment decision making.



The Age Discrimination in Employment Act of 1967 prohibits employment decisions based on biases against the elderly.



The Americans with Disabilities Act of 1990 (ADA) prohibits employment decisions based on biases against people with disabilities.



A bona fide occupational qualification is an exception to all of the above. That is, if a qualification is a necessary part of the job, then it is not necessarily illegal to base employment decisions on that criterion, even if it tends to discriminate against a class of people protected by the laws.



The Family and Medical Leave Act of 1993 (FMLA) allows individuals to take up to 12 weeks of unpaid leave per year for the birth or adoption of a baby or the illness of a family member.



Affirmative action refers to the legal requirement that federal contractors, some public employees, and private organizations under court order for short-term remedies must actively recruit, hire, and promote members of minority groups and other protected classes.



Workforce diversity refers to the variety of people with different backgrounds, characteristics, perspectives, etc. in an organization. The organization’s workforce should reflect the diversity of the local community.



Sexual harassment refers to actions that are sexually directed, are unwanted, and subject an employee to adverse employment conditions. “Quid pro quo” harassment means that sexual compliance is required for job-related benefits and opportunities such as pay and promotions. H...