Management Fundamentals - Chapter 121 Chapter 12 - Human Resources (HR)  HR is key to organizational success or failure.  Human capital (value of their employees) is essential to any org.’s long-term perf. success.  Org. perform better when they treat their employees better.

Management Fundamentals - Chapter 122 Who should HR Hire to Create a Hire Performance Work Environment?  people with the following qualities: –Work ethic –Ambition and energy –Knowledge –Creativity –Motivation –Sincerity –Outlook –Collegiality and collaborativeness –Curiosity –Judgment and maturity –Integrity

Management Fundamentals - Chapter 123 HR responsibilities  Attracting a quality workforce –planning, recruitment, and selection  Developing a quality workforce –Employee orientation, training and development, and performance appraisal.  Maintaining a quality workforce –Career development, work-life balance (WLB), compensation and benefits, employee retention and turnover, and labour-management relations.

Management Fundamentals - Chapter 124 Attracting a Quality Workforce  HR planning analyzes an organization’s HR needs and how to best fill them. Steps in the HR planning process: –Step 1 — review org. mission, object., and strategies. –Step 2 — review HR objectives and strategies. –Step 3 — assess current HR needs. –Step 4 — forecast HR needs. –Step 5 — develop and implement HR plans.

Management Fundamentals - Chapter 125 Figure 12.2 Steps in strategic human resource planning.

Management Fundamentals - Chapter 126 Attracting a Quality Workforce  Recruitment –Activities designed to attract a qualified pool of job applicants to an organization. –Steps in the recruitment process: Advertisement of a job vacancy. Preliminary contact with potential job candidates. Initial screening to create a pool of qualified applicants.

Management Fundamentals - Chapter 127 Recruitment Methods – External recruitment — candidates are sought from outside the hiring organization. –Internal recruitment — candidates are sought from within the organization.

Management Fundamentals - Chapter 128 Attracting a Quality Workforce  Selection –Choosing from a pool of applicants the person or persons who offer the greatest performance potential.  Selection Steps –Completion of a formal application form. –Interviewing. –Testing. (Intelligence, Aptitude, Personality, Interest) –Reference checks. –Physical examination. –Final analysis and decision to hire or reject.

Management Fundamentals - Chapter 129 Figure 12.3 Steps in the selection process: the case of a rejected job applicant.

Management Fundamentals - Chapter 1210 Developing a Quality Workforce  Socialization – Process of influencing the expectations, behavior, and attitudes of a new employee in a way considered desirable by the organization.  Orientation –Set of activities designed to familiarize new employees with their jobs, coworkers, and key aspects of the organization.

Management Fundamentals - Chapter 1211 Developing a Quality Workforce  Training –A set of activities that provides the opportunity to acquire and improve job- related skills.  On-the-job training –Job rotation –Coaching –Mentoring –Modeling  Off-the-job training –Management development

Management Fundamentals - Chapter 1212 Developing a Quality Workforce  Performance appraisal –Formally assessing someone’s work accomplishments and providing feedback. –Purposes of performance appraisal: Evaluation — lets people know where they stand relative to objectives and standards. Development — assists in training and continued personal development of people.

Management Fundamentals - Chapter 1213 Figure 12.4 Sample behaviorally anchored rating scale for performance appraisal.

Management Fundamentals - Chapter 1214 Types of Performance Appraisals 1. Graphic rating scales –Uses checklists of traits or characteristics to evaluate performance. –Relatively quick and easy to use. –Questionable reliability and validity.

Management Fundamentals - Chapter 1215 Types of Performance Appraisals 2. Behaviorally anchored rating scales (BARS) –Describes actual behaviors that exemplify various levels of performance achievement. –More reliable than graphic rating scales. –Helpful in training people to master important job skills.

Management Fundamentals - Chapter 1216 Types of Performance Appraisals 3. Critical-incident techniques –Keeping a running log of effective and ineffective behaviours. 4. Multiperson comparisons –Formally compare one person’s performance with that of one or more others.

Management Fundamentals - Chapter 1217 Types of Performance Appraisals 6. Peer appraisal Occurs when people who work regularly and directly with a jobholder are involved in the appraisal. 7. Upward appraisal Occurs when subordinates reporting to the jobholder are involved in the appraisal ° feedback Occurs when superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholder’s performance.

Management Fundamentals - Chapter 1218 Maintaining A Quality Workforce  Career development –Career — a sequence of jobs that constitute what a person does for a living. –Career path — a sequence of jobs held over time during a career. –Career planning —matching career goals and individual capabilities with opportunities for their fulfillment. –Career plateau — a position from which someone is unlikely to move to a higher level of responsibility. Progressive employers seek ways to engage plateaued employees.

Management Fundamentals - Chapter 1219 Maintaining a Quality Workforce  Work-life balance –How people balance career demands with personal and family needs. –Progressive employers support a healthy work-life balance. –Contemporary work-life balance issues: Single parent concerns Dual-career couples concerns Family-friendliness as screening criterion used by candidates

Management Fundamentals - Chapter 1220 Maintaining a Quality Workforce  Compensation and benefits –Base compensation - Salary or hourly wages –Fringe benefits Additional non-wage or non-salary forms of compensation –Flexible benefits Employees can select a set of benefits within a certain dollar amount

Management Fundamentals - Chapter 1221 Study Question 5: How do organizations maintain a quality workforce?  Compensation and benefits (cont.) –Family-friendly benefits Help in balancing work and nonwork responsibilities –Employee assistance programs Help employees deal with troublesome personal problems.

Management Fundamentals - Chapter 1222 Maintaining a Quality Workforce  Retention and turnover –Replacement is the management of promotions, transfers, terminations, layoffs, and retirements. –Replacement decisions relate to: Shifting people between positions within the organization. Retirement. Termination.

Management Fundamentals - Chapter 1223 Maintaining a quality workforce  Labor-management relations –Labor unions deal with employers on the workers’ behalf. – Labor contracts specify the rights and obligations of employees and management regarding wages, work hours, work rules, seniority, hiring, grievances, and other conditions of employment – Collective bargaining is the process of negotiating, administering, and interpreting a labour contract.

Management Fundamentals - Chapter 1224 Figure 12.5 The traditional adversarial view of labor-management relations.

Management Fundamentals - Chapter 1225 Maintaining a Quality Workforce  Unions can create difficulties for management by… –Striking –Boycotting –Picketing  Management can create difficulties for unions by… –Using lockouts –Hiring strike-breakers –Seeking injunctions

Management Fundamentals - Chapter 1226 Issues HR must also handle:  Discrimination in employment - Occurs when someone is denied a job or job assignment for reasons that are not job relevant.  Employment equity - preference in employment to Aboriginals, women, visible minorities, and people with physical/mental disability.  Sexual harassment - behaviour of a sexual nature that affects a person’s employment situation  Comparable worth - persons performing jobs of similar importance should be paid at comparable levels