Copyright ©2011 Pearson Education 6 Chapter Managing Human Resources Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Learning Objectives Describe the key components of the HRM process and what influences it Discuss the tasks associated with identifying and selecting competent employees Explain how employees are provided with needed skills and knowledge Describe strategies for retaining competent, high-performing employees Discuss contemporary issues in managing human resources Copyright ©2011 Pearson Education

What Is the Human Resource Management Process? Human Resource Management (HRM) The management function concerned with getting, training, motivating, and keeping competent employees The quality of an organization is to a large degree determined by the quality of the people it employs. Success for most organizations depends on finding the employees with the skills to successfully perform the tasks required to attain the company’s strategic goals. Staffing and human resource management decisions and methods are critical to ensuring that the organization hires and keeps the right people. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Notice in Exhibit 6-1 that the entire process is influenced by the external environment. Many of the factors introduced in Chapter 2 directly affect all management practices, but their effect is felt the most in managing the organization’s human resources, because whatever happens to an organization ultimately influences what happens to its employees Copyright ©2011 Pearson Education

What Is the Legal Environment of HRM? Since the mid-1960s, the federal government in the United States has greatly expanded its influence over HRM by enacting a number of laws and regulations including: Affirmative Action Programs Programs that ensure that decisions and practices enhance the employment, upgrading, and retention of members of protected groups Since the mid-1960s, the federal government in the United States has greatly expanded its influence over HRM by enacting a number of laws and regulations (see Exhibit 6-2 for examples) Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education

Are HRM Laws the Same Globally? HRM laws aren’t the same globally. For example, German laws provide for worker representation in management decisions through Work Councils Groups of nominated or elected employees who must be consulted when management makes decisions involving personnel Board Representatives Employees who sit on a company’s board of directors and represent the interest of employees HRM laws aren’t the same globally. You need to know the laws and regulations that apply in your locale Copyright ©2011 Pearson Education

What Is Employment Planning? The process by which managers ensure they have the right numbers and kinds of people in the right places at the right timewho are capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. Human Resource Inventory A report listing important information about employees such as name, education, training, skills, languages spoken, and so forth Employment planning is the process by which managers ensure that they have the right number and kinds of people in the right places at the right times, people who are capable of effectively and efficiently completing those tasks that will help the organization achieve its overall goals. Employment planning, then, translates the organization’s mission and goals into an HR plan that will allow the organization to achieve those goals Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education What Is Job Analysis? Job Analysis An assessment that defines jobs and the behaviors necessary to perform them Job Description A written statement that describes a job (what a jobholder does, how it is done, and why) Job Specification A written statement of the minimum qualifications that a person must possess to perform a given job successfully It identifies the knowledge, skills, and attitudes needed to do the job effectively. Whereas the human resources inventory is concerned with telling management what individual employees can do, job analysis is more fundamental. It’s typically a lengthy process, one in which workflows are analyzed and skills and behaviors that are necessary to perform jobs are identified. Copyright ©2011 Pearson Education

HOW DO ORGANIZATIONS RECRUIT EMPLOYEES? Recruitment Locating, identifying, and attracting capable applicants Once managers know their current staffing levels—whether understaffed or overstaffed—they can begin to do something about it. If one or more vacancies exist, they can use the information gathered through job analysis to guide them in recruitment—that is, the process of locating, identifying, and attracting capable applicants. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Applicants can be found by using several sources, including the Internet. Exhibit 6-3 offers some guidance. The source that’s used should reflect the local labor market, the type or level of position, and the size of the organization. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Exhibit 6-4 summarizes a manager’s major downsizing options. Keep in mind that, regardless of the method chosen, employees may suffer. We discuss downsizing more fully—for both victims and survivors— later in this chapter. Copyright ©2011 Pearson Education

How Do Managers Select Job Applicants? Selection Process Screening job applicants to ensure that the most appropriate candidates are hired Reliability The degree to which a selection device measures the same thing consistently Validity The proven relationship between a selection device and some relevant criterion Once the recruiting effort has developed a pool of applicants, the next step in the HRM process is to determine who is best qualified for the job. In essence, then, the selection process is a prediction exercise: It seeks to predict which applicants will be “successful” if hired; that is, who will perform well on the criteria the organization uses to evaluate its employees. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Consider, for a moment, that any selection decision can result in four possible outcomes. As shown in Exhibit 6-5, two outcomes would indicate correct decisions, and two would indicate errors. Copyright ©2011 Pearson Education

Pre-Employment Testing One criticism of written tests is that they may measure characteristics which are not related to job performance. As a result, performance-simulation tests are gaining popularity Performance-Simulation Tests Selection devices based on actual job behaviors Managers can use a number of selection devices to reduce accept and reject errors. The best known devices include written and performance-simulation tests and interviews Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Closing the Deal Providing only details of positive aspects of a job may lead to satisfaction problems later. Realistic Job Preview (RJP) A preview of a job that provides both positive and negative information about the job and the company To increase job satisfaction among employees and reduce turnover, managers should consider a realistic job preview (RJP). An RJP includes both positive and negative information about the job and the company Copyright ©2011 Pearson Education

How Are New Hires Introduced to the Organization? Orientation Introducing a new employee to the job and the organization Employee Training A learning experience that seeks a relatively permanent change in employees by improving their ability to perform on the job Once a job candidate has been selected, he or she needs to be introduced to the job and organization. This introduction is called orientation Employee training is a learning experience that seeks a relatively permanent change in employees by improving their ability to perform on the job. Thus, training involves changing skills, knowledge, attitudes, or behavior Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education The leading questions in Exhibit 6-6 suggest the kinds of signals that can warn a manager when training may be necessary. The more obvious ones are related directly to productivity Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Many different types of training methods are available. For the most part, we can classify them as on-the-job or off-the-job training. The more popular training methods are summarized in Exhibit 6-7. Copyright ©2011 Pearson Education

What Is a Performance Management System? A system that establishes performance standards that are used to evaluate employee performance 360-degree appraisal An appraisal device that seeks feedback from a variety of sources for the person being rated It’s important for managers to get their employees to achieve performance levels that the organization considers desirable. How do managers ensure that employees are performing as well as they’re supposed to? In organizations, the formal means of assessing the work of employees is through a systematic performance appraisal process. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education We list specific appraisal techniques in Exhibit 6-8. Copyright ©2011 Pearson Education

What Happens If an Employee’s Performance Is Not Up to Par? Discipline Actions taken by a manager to enforce an organization’s standards and regulations Employee Counseling A process designed to help employees overcome performance-related problems If, for some reason, an employee is not meeting his or her performance goals, a manager needs to find out why. If the problem is associated with an employee’s lack of desire to do the job, not with his or her abilities, it becomes a discipline problem Copyright ©2011 Pearson Education

How Are Employees Compensated? Compensation Administration The process of determining a cost-effective pay structure that will attract and retain employees, provide an incentive for them to work hard, and ensure that pay levels will be perceived as fair Skill-based Pay A pay system that rewards employees for the job skills they demonstrate Developing an effective and appropriate compensation system is an important part of the HRM process. It can help attract and retain competent and talented individuals who help an organization accomplish its mission and goals. In addition, an organization’s compensation system has been shown to have an impact on its strategic performance Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Compensation (cont.) Variable Pay A pay system in which an individual’s compensation is contingent on performance Employee Benefits Nonfinancial rewards designed to enrich employees’ lives Many organizations use variable pay systems, in which an individual’s compensation is contingent on performance When an organization designs its overall compensation package, it has to look further than just an hourly wage or annual salary. It has to take into account another element, employee benefits, which are nonfinancial rewards designed to enrich employees’ lives. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education

How Can Managers Manage Downsizing? The planned elimination of jobs in an organization Layoff-Survivor Sickness A set of attitudes, perceptions, and behaviors of employees who survive layoffs Downsizing is the planned elimination of jobs in an organization. Because downsizing typically involves shrinking the organization’s workforce, it’s an important issue in HRM. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education

What Is Sexual Harassment? Any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual’s employment, performance, or work environment Sexual harassment is a serious issue in both public and private sector organizations. More than 12,000 complaints are filed with the EEOC each year, with more than 15 percent of the complaints filed by males. Settlements in some of these cases incurred a substantial cost to the companies in terms of litigation. It’s estimated that sexual harassment is the single largest financial risk facing companies today Copyright ©2011 Pearson Education

What Is Workplace Spirituality? A spiritual culture where organizational values promote a sense of purpose through meaningful work that takes place in the context of community Workplace spirituality is not about organized religious practices. It’s not about theology or about one’s spiritual leader. Rather, workplace spirituality is about recognizing that employees have an inner life that nourishes and is nourished by meaningful work that takes place in the context of an organizational community Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Although research is fairly new in this arena, several characteristics tend to be associated with a spiritual organization.73We list them in Exhibit 6-11. Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Career Module Managing Your Career Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Building Your Career Career The sequence of work positions held by a person during his or her lifetime Boundaryless Career When an individual takes personal responsibility for his or her own career Copyright ©2011 Pearson Education

How Can I Have a Successful Career? Assess Your Personal Strengths and Weaknesses Where do your natural talents lie? Identify Market Opportunities Where are tomorrow’s job opportunities? Take Responsibility for Managing Your Own Career Develop Your Interpersonal Skills Interpersonal skills, especially the ability to communicate, top the list of almost every employer’s “must have” skills Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Career Success (cont.) Practice Makes Perfect If you want to excel in any field, you should expect to have to put in a lot of deliberate practice Stay Up-to-Date To keep your career on track, you need to make learning a lifetime commitment Network Create and maintaining beneficial relationships with others in order to accomplish your goals Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Career Success (cont.) Stay Visible You increase your mobility and value in the marketplace by keeping visible Seek a Mentor Employees with mentors are likely to have enhanced mobility and increased knowledge of the organization Leverage Your Competitive Advantage Develop skills that will give you a competitive advantage in the marketplace Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education Career Success (cont.) Don’t Shun Risks It’s OK to Change Jobs To keep your skills fresh, your income increasing, and your job tasks interesting, it will be increasingly likely that you’ll need to change employers Opportunities, Preparation, and Luck = Success Copyright ©2011 Pearson Education

Copyright ©2011 Pearson Education