Managing Human Resources Chapter 12 Managing Human Resources

The Strategic Role of HRM HR must drive organizational performance; it’s the competitive edge Matching process Integrate strategy HR builds culture The right people: To become more competitive on a global basis For improving quality, innovation, and customer service To retain during mergers and acquisitions To apply new information technology for e-business

12.1 Top Three Factors for Maintaining Competitive Success

12.2 Strategic Human Resource Management

Building Human Capital to Drive Performance Strategic decisions are related to human decisions More companies rely on information, creativity, knowledge, and service Human Capital is the economic value of the combined knowledge, experience, skills, and capabilities of employees

12.3 The Role and Value of Human Capital Investments

The Impact of Federal Legislation on HRM HR managers must stay on top of legal and regulatory environment Many laws exist to ensure equal opportunity and stop discrimination Discrimination – The hiring or promotion of applicants based on criteria that are not job relevant

The Impact of Federal Legislation on HRM Affirmative action – Requires employers to take positive steps to guarantee equal employment opportunities for people of protected groups Sexual harassment is a growing concern that is a violation of the Civil Rights Act

12.4 Major Federal Laws Related to Human Resource Management

The Changing Nature of Careers Employees operate under a new social contract Downsizing, outsourcing, rightsizing, and restructuring have left little stability Subsidized benefits are decreasing Employees are expected to be self-motivated Organizations must be creative with training and development New performance appraisal processes are required

12.5 The Changing Social Contract

Innovations in HRM Becoming an Employer of Choice Organizations that are highly attractive to potential employees because of HR practices Using Temporary and Part-Time Employees Contingent workers are not permanent, maintain flexibility, and keep costs low Acquiring Start-ups to Get the Talent Acqui-hiring- buying an early-age start-up

Finding the Right People Using the matching model, the organization and the individual attempt to match the needs, interests, and values that they offer each other

12.6 Attracting an Effective Workforce

Human Resource Planning What new technologies are emerging? What is the volume of the business likely to be in the next 5 to 10 years? What is the turnover rate? What types of engineers will we need? How many administrative personnel will we need to support additional engineers? Can we use temporary, part-time, or virtual workers?

Recruiting (Talent Acquisition) Assessing Organizational Needs: Job analysis: Systematic process of gathering information about the responsibilities of a job Job description: Summary of the duties of a job Job specification: Characteristics required to perform the job

Recruiting (Talent Acquisition) Realistic Job Previews – Provide pertinent information; positive and negative Legal Considerations – Recruiting practices must be legal Innovations in Recruiting: eRecruiting through Twitter, LinkedIn, and other social media Internships – Student exchanges low cost labor for valuable work experience

12.7 Sara Lee’s Required Skills for Finance Executives

Selecting Employers assess applicants for a “fit” HR professionals us a combination of devices: Application Form Avoid irrelevant questions Avoid questions with adverse impact Interview; cannot violate EEO guidelines Structured interviews Biographical interviews Behavioral interviews Situational interviews Panel interviews Employment Tests Cognitive ability tests Physical ability tests Personality tests Brain teasers Assessment Center Work sample tests Online Checks

12.8 Employment Applications and Interviews: What Can You Ask?

12.9 Interview Brain Teasers

Development involves teaching broader skills Developing Talent Training and Development On-the-Job Training Social Learning Corporate Universities Promotion from Within Mentoring and Coaching Performance Appraisal Evaluating performance, recording assessment, and providing feedback Development involves teaching broader skills

12.10 Methods and Goals of Training

Performance Appraisal Assessing Performance Accurately – system should evaluate relevant performance Performance-review ranking systems pit employees against each other 360-degree Feedback – Uses multiple raters, including self-rating to appraise employees and development

Performance Appraisal Performance Evaluation Errors Stereotyping – Placing an employee into a class or category based on a few characteristics Behaviorally Anchored Rating Scale (BARS) – Rating technique that relates an employee’s performance to specific job-related incidents

12.11 - Example of a Behaviorally Anchored Rating Scale

Compensation All monetary payments and all goods or commodities used to reward employees Wage and Salary Systems Job-based pay Skill-based pay Competency-based pay Compensation Equity – Fairness and equity Pay for Performance – Raise productivity and cut labor costs in competitive environment

Benefits Social security, unemployment compensation, and workers’ compensation are required by law Cafeteria-plan benefits packages allow employees to select benefits for themselves Benefits have been cut due to the recession Companies are not planning to renew benefits to prerecession levels

Rightsizing the Organization Reducing the company’s workforce to the “right” size; also called downsizing Makes company stronger and more competitive HR must effectively and humanely manage the process Many organizations use communication and provide assistance to address emotional needs

Termination Employees leave voluntarily, retire, are rightsized, and are fired for poor performance Poor performing employees can be disruptive and cause problems for morale Exit interviews can be used to learn about dissatisfaction and reason for departure