HR- Functions-HO - Summarizes the different facets of Human Resources PDF

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Summarizes the different facets of Human Resources...

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PSY 241: CORRELATIONAL I/O PSYCHOLOGY: HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCES MANAGEMENT  

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Human resource management (HRM)  Facilitates the most effective use of people to achieve organizational and personal goals  Requires the involvement of every manager in every department Personnel, human resource management, industrial relations, employee development, and personnel department have all been used to describe the unit, department, or group concerned about people.  The most current term, human resource management, is used in this book because it reflects the increased concern society and organizations have for people. Human Resource Management (HRM) consists of numerous activities, including  Equal employment opportunity (EEO) compliance  Job analysis  Human resource planning  Employee recruitment, selection, motivation, and orientation  Performance evaluation and compensation  Training and development  Labor relations  Safety, health, and wellness The following four descriptions of the HRM unit should be stressed at the outset:  It is action-oriented  It is people-oriented  It is globally oriented  It is future-oriented A Brief History of Human Resource Management The history of HRM can be traced to England  Masons, carpenters, leather workers, and other craftspeople organized themselves into guilds.  They used their unity to improve their work conditions. The field further developed during the Industrial Revolution in the latter part of the 18th century  Working conditions, social patterns, and the division of labor were significantly altered.  A new kind of employee, a boss who wasn't necessarily the owner, became a power broker in the new factory system.  With these changes came a widening gap between workers and owners. During the era of the world wars, scientific management, welfare work, and industrial psychology merged.  Scientific management was an effort to deal with inefficiencies in labor and management primarily through work methods, time and motion study, and specialization.  Industrial psychology represented the application of psychological principles toward increasing the ability of workers to perform efficiently and effectively. Frederick W. Taylor, the father of scientific management, studied worker efficiency and attempted to discover the one best and fastest way to do a job.  He summarized scientific management as: (1) science, not rules of thumb; (2) harmony, not discord; (3) cooperation, not individualism; and (4) maximum output, not restricted output. Industrial psychology focused  The worker  Individual differences  The maximum well being of the worker. Hugo Munsterberg and his book Psychology and Industrial Efficiency initiated the field of industrial psychology in 1913  The book served as a stimulus and model for development of the field in the United States and Europe. Personnel departments were created to deal with:  Drastic changes in technology  The growth of organizations  The rise of unions  Government concern and intervention concerning working people Around the 1920s, more and more organizations took note of, and did something about, employee—management conflict. Early personnel administrators were called welfare secretaries.  Their job was to bridge the gap between management and operator (worker) Another early contributor to HRM was called the human relations movement.  Elton Mayo and Fritz Roelthisberger incorporated human factors into work.  This movement began as a result of studies conducted at the Hawthorne facility of Western Electric in Chicago between 1924 and 1933.  The purpose of the studies was to determine the effects of illumination on workers and their output.  The studies pointed out the importance of the social interaction and work group on output and satisfaction.

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PSY 241: CORRELATIONAL I/O PSYCHOLOGY: HUMAN RESOURCE MANAGEMENT

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Until the 1960s, the personnel function was concerned only with blue-collar or operating employees.  It was viewed as a record-keeping unit  Peter Drucker, a respected management scholar and consultant, stated that the job of personnel was "partly a file clerk's job, partly a housekeeping job, partly a social worker's job, and partly firefighting, heading off union trouble."

Who Performs HRM Activities 

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In most organizations two groups perform HRM activities:  HR manager-specialists  Operating managers – Involved in HRM activities because they are responsible for effective utilization of all the resources at their disposal. The effectiveness of the human resource declines more quickly than other resources.  In all but the most capital-intensive organizations, investment in people has more effect on organizational effectiveness than money, materials, or equipment. Managing people and overseeing their training, performance, and satisfaction means that a large part of an operating manager's day is spent:  In unscheduled and scheduled meetings  In telephone conversations  Solving problems that have a direct impact on people. – Use this constant contact with people to solve problems, reach decisions, and prevent future difficulties. Smaller organizations usually have no HR unit, so the operating managers have many HRM responsibilities, such as:  Scheduling work  Recruitment and selection  Compensating people As the organization increases in size, the operating manager's work is divided up, and some of it becomes specialized.  HR specialists are employed in organizations with about 100 to 150 employees  An HR department is typically created when the number of employees reaches 200 to 500, depending on the nature of the organization Outsourcing

The outsourcing of HRM activities is growing in popularity because of:  Downsizing  Rapid growth or decline of business  Globalization  Increased competition  Restructuring  Some executives assume that outsourcing can:  Reduce costs  Improve flexibility  Permit the hiring of specialized expertise  The choice to outsource some, all, or none of the HRM activities is being made with little empirical support. The Interaction of Operating and HR Managers  

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With both operating managers and HR specialists making HRM decisions, there can be conflict.  They sometimes differ on who has authority for what decisions They also have different orientations (line and staff), which have different objectives.  A staff person supports primary functions, such as marketing and production by providing advice, counsel, and information.  Line managers have the authority to make final decisions concerning their operations Members of the HR unit have much to say about various programs and activities The conflict between HR employees and operating managers is most pressing when there must be joint decisions on such issues as:  Discipline  Physical working conditions  Termination  Transfer  Promotion  Employment planning Operating managers and HR specialists also differ on:  How much authority employees should have over job design  Labor relations

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PSY 241: CORRELATIONAL I/O PSYCHOLOGY: HUMAN RESOURCE MANAGEMENT

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 Organizational planning  Rewards, such as bonuses and promotions Sweeping changes in business, globalization, technology, and demography have changed the roles of HRM and operating managers.  Line managers now have greater responsibilities, managing more people and/or bigger projects.  In the past, line managers were masters of routine. Now they must be masters of change. Research shows that people don't leave companies, they leave managers.  HRM can help managers do a better job There is still tension and conflict between some HRM units and operating managers.  HRM is often viewed as a company policeman  It is also seen as inflexible and over-attentive to detail HRM specialists and departments are encouraged to:  Analyze every activity and prove its added value  Understand the business in order to become a strategic partner with line managers  Seek out operating managers  Help managers avoid problems  Be flexible and open to the ideas of others HRM's Place in Management

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More firms recognize that the HR department must be a proactive, integral component of management and the strategic planning process. To accomplish this new role, HRM must:  Ascertain specific organizational needs for the use of its competence  Evaluate the use and satisfaction among other departments  Educate management and employees about the availability and use of HRM services The long-range goal of any HRM strategic plan must be to build on the firm's strengths. Organizations can develop a competitive advantage over other firms only by creating value in a way that is rare and difficult for competitors to imitate.  An HRM system is an invisible asset that creates value when it is so embedded in the firm's operational systems that it enhances the organization's capabilities These things, among others, must become so important and effective that every unit within the firm knows they are needed for success  The compensation system  Training opportunities  Diversity management programs To educate other departments about the human resource implications of decisions, the HR executive must be familiar with other aspects of the organization, including:  Investments  Advertising  Marketing  Production control  Computer utilization  Research and development HR Department Operations

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HR units vary by size and sector, but most organizations keep them small.  At the largest headquarters unit there are about 150 people The number of HR specialists in relation to the number of operating employees, or the personnel ratio, varies in different industries.  The national average is 1 HR specialist per 100 employees  Construction, agriculture, retail and wholesale trade, and services have fewer personnel specialists than the average  Public utilities, durable goods manufacturing, banking, insurance, and governmenthave an above-average ratio HRM Strategy A firm's HRM strategy is the pattern or plan that integrates the major objectives, policies, and procedures into a cohesive whole. A well-formulated HRM strategy aggregates and allocates a firm's resources into a unique entity on the basis of:  The organization’s internal strengths and weaknesses  Changes in the environment  The anticipated actions of competitors HRM Policy

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PSY 241: CORRELATIONAL I/O PSYCHOLOGY: HUMAN RESOURCE MANAGEMENT

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A policy is a general guide that expresses limits within which action should occur. Policies:  Are developed from past problem areas or for potential problem areas.  Free managers from having to make decisions in areas in which they have less competence or on matters with which they do not wish to become involved.  Ensure some consistency in behavior and allow managers to concentrate on decisions in which they have the most experience and knowledge. After the broadest policies are developed, some organizations develop procedures and rules. HRM Procedures

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Procedures or rules are a specific direction to action. In large organizations, procedures are collected and put into manuals, usually called standard operating procedures (SOPs). Organizations must be careful to have consistent decision making that flows from a well-developed, but not excessive, set of policies and procedures. Procedures should be developed only for the most vital areas.

JOB ANALYSIS The Vocabulary of Job Analysis 

Many of the terms of job analysis are used interchangeably by people who are unfamiliar with job analysis  The expert uses them precisely, in order to avoid confusion and misinterpretation  Precision in term usage is required by federal and state legislation  Job analysis: a purposeful, systematic process for collecting information on the important work-related aspects of a job  Job description: the principal product of a job analysis. It represents a written summary of the job as an identifiable organizational unit  Job specification: a written explanation of the knowledge, skills, abilities, traits, and other characteristics (KSAOs) necessary for effective performance on a given job  Tasks: Coordinated and aggregated series of work elements used to produce an output (e.g., a unit of production or service to a client)  Position: consists of the responsibilities and duties performed by an individual. There are as many positions in an organization as there are employees  Job: group of positions that are similar in their duties, such as computer programmer or compensation specialist  Job family: group of two or more jobs that have similar duties The Steps in Job Analysis

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The job analysis process:  Step 1: Examine the total organization and the fit of each job  Step 2: Determine how job analysis information will be used  Step 3: Select jobs to be analyzed  Step 4: Collect data on the characteristics of the job, the required behaviors, and the characteristics an employee needs to perform the job  Step 5: Develop a job description  Step 6: Prepare a job specification The data collected is used as the foundation for virtually every other HRM activity:  Recruitment  Selection  Training  Performance evaluation  Compensation  Job design and redesign Job analysis provides the information necessary for organizing work in ways that allow employees to be both productive and satisfied  The data can also be used in follow-up evaluations of the job design

The Uses of Job Analysis  Some believe that there is no longer even a choice about whether job analysis should be conducted  The question has become how to conduct a legally defensible job analysis rather than whether such an analysis should be conducted  A set of policies designed to minimize or prevent workplace discrimination practices  Job analysis is:

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PSY 241: CORRELATIONAL I/O PSYCHOLOGY: HUMAN RESOURCE MANAGEMENT

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 Critical to assessments of discrimination under most employment-related laws  Linked to these laws through Supreme Court rulings If a job analysis is to be viewed favorable by the courts, it must:  Yield a thorough, clear job description  Assess the frequency and importance of job behaviors  Allow for an accurate assessment of the knowledge, skills, abilities, and other characteristics (KSAOs) required by the job  Clearly determine which KSAOs are important for each job duty Job analysis is used extensively in each of these areas:  Recruitment and selection  Training and career development  Compensation  Strategic planning

Who Should Conduct the Job Analysis?  Part of the planning process involves choosing the people who will conduct the analysis  Hire a temporary analyst from outside  Employ a full-time job analyst  Use supervisors, job incumbents, or some combination of these  Each choice has strengths and weaknesses:  Job incumbents know what work is actually being done, rather than what is supposed to be done  Involving incumbents might increase their acceptance of any work changes resulting from the analysis  Incumbents tend to exaggerate the responsibilities and importance of their work  The choice of an analyst depends on many factors, including:  The location and complexity of the jobs  How receptive incumbents are to an external analyst  The intended purpose of the analysis  Regardless of who collects the information, the individuals should:  Thoroughly understand people, jobs, and the total organizational system  Have knowledge about how work should flow within the organization The Use of Charts  Before selecting the methods and procedures to be used in the analysis, an overview of the organization and its jobs is required  This overview will provide a better understanding workflow through the organization  An organization chart presents the relationships among departments and units of the firm, as well as:  Line and staff functions  Number of vertical levels in the organization  Number of functional departments  Formal reporting relationships  A process chart shows how a specific set of jobs are related to each other  Rather than showing structural relationships among job titles, this chart shows the activities and work necessary to produce a desired product or service Methods of Data Collection 

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When collecting job analysis data, these basic methods can be use separately or in some combination:  Observation  Interview  Questionnaires  Job incumbent diaries or logs In each method, information about the job is collected and then studied in terms of:  Tasks completed by the job incumbent (job oriented analysis)  Behaviors, or what the job incumbent does to perform the job (work-oriented analysis) Because time and cost are considerations, managers must collect comparable, valid data  Core information is needed no matter which data collection method is used A job analysis information format (JAIF) can provide the core information for any job analysis method  This questionnaire provides a thorough picture of the job, job duties, and requirements  After job incumbents complete the JAIF, the answers are used to structure the data collection technique that will eventually be implemented Not all incumbents or their supervisors view a job the same way  Collect information from a variety of incumbents: young and old, male and female, high- and low-performing  Do not assume that all incumbents and supervisors have the same amount of knowledge about a job

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PSY 241: CORRELATIONAL I/O PSYCHOLOGY: HUMAN RESOURCE MANAGEMENT

Observation  Direct observation is used for jobs that require manual, standardized, and short-job-cycle activities (assembly-line worker, insurance filing clerk,)  Direct observation is not appropriate when the job involves significant mental activity (scientist, lawyer, mathematician)  This technique requires that the job analyst be trained to observe relevant job behaviors and to be as unobtrusive as possible Interviews  Interviewing job incumbents is often done in combination with observation  The most widely used technique  Allows the job analyst to talk with job incumbents face-to-face – The job incumbent can ask the analyst questions – Allows the analyst to explain how the information gained will be used  Interviews can be conducted with a single incumbent, a group of incumbents, or a supervisor who is familiar with the job  A structured set of questions is used so that answers from individuals or groups can be compared  Interviews are difficult to standardize  Different interviewers may ask different questions  The same interviewer might ask different questions of different respondents  Information may be unintentionally distorted by the interviewer  Interviewing costs can be high, especially if group interviews aren’t practical Questionnaires  Questionnaires are the least costly method for collecting information  It is an effective way to collect a large amount of information in a short period of time  A structured questionnaire includes specific questions about the job, working conditions, and equipment An openended format permits job incumbents to use their own words and ideas to describe the job  The format and structure of a questionnaire are debatable issues  There really is no best format  Hints for making a questionnaire easier to use:  Keep it as short as possible  Explain what the questionnaire is being used for  Keep it simple  Test the questionnaire before using it Job Incumbent Diary or Log  The diary or log is a recording by incumbents of:  Job duties  Frequency of the duties  When th...