1. Human Resource Management Chapter 9

2. Human Resource Management Consists of the activities managers perform to plan for, attract, develop and retain an effective workforce. The old Personnel Department People are an organization’s most important resource Human resources has become part of he strategic-planning process.

3. Establish the mission and the vision Establish the grand strategy Formulate the strategic plans Plan human resources needed Recruit and select people Orient, train, and develop Perform appraisals of people Purpose: Get optimal work performance to help realize company’s mission and vision

4. Human Capital The economic or productive potential of employee knowledge and actions.

5. Knowledge Worker Someone whose occupation is principally concerned with generating or interpreting information, as opposed to manual labor.

6. Social Capital The economic or productive potential of strong, trusting, and cooperative relationships. J.M. Smucker: “Listen with your full attention, look for the good in others, have a sense of humor, and say thank you for a job well done.”

7. Strategic human resource planning Consists of developing a systematic, comprehensive strategy for Understanding current employee needs Predicting future employee needs

8. Understanding current employee needs Job analysis Job description and job specification

9. Job analysis The purpose of job analysis is to determine, by observation and analysis, the basic elements of a job

10. Job description and job specification Job description: summarizes what the holder of the job does and how and why he or she does it. Job specification: describes the minimum qualifications a person must have to perform the job successfully.

11. Predicting future employee needs You have to become knowledgeable about the staffing the organization might need and the likely sources for that staffing. Human resource inventory: a report listing your organization’s employees by name, education, training, languages, and other important information.

12. Recruiting The process of locating and attracting qualified applicants for jobs open in the organization.

13. Internal Recruiting Making people already employed by the organization aware of job openings. Job postings: placing information about job vacancies and qualifications on bulletin boards, in newsletters, and on the organization’s intranet

14. External Recruiting Attracting job applicants from outside the organization. Employee referrals E-recruitment

15. Realistic Job Preview Gives a candidate a picture of both positive and negative features of the job and the organization before he or she is hired.

16. Selection Process The screening of job applicants to hire the best candidate. Background Information Application Forms Resumes Reference Checks Interviewing Unstructured Situational Behavioral Description

17. Unstructured Interview Involves asking probing questions to find out what the applicant is like.

18. Structured Interview Type 1 – The Situational Interview Type 2 – The Behavioral – Description Interview

19. Type 1 Structured Interview – Involves asking each applicant the same questions and comparing their responses to a standardized set of answers. Situational Interview – the interviewer focuses on hypothetical situations.

20. Type 2 Behavioral-Description Interview – The interviewer explores what applicants have actually done in the past.

21. Employment Tests Legally considered to consist of any procedure used in the employment selection decision process, even application forms, interviews, and educational requirements.

22. Ability Tests Measure physical abilities, strength and stamina, mechanical ability, mental abilities, and clerical abilities.

23. Performance Tests Assessment Center – management candidates participate in activities for a few days while being assessed by evaluators.

24. Personality Tests Measure such personality traits as adjustment, energy, sociability, independence, and need for achievement.

25. Integrity Tests Assess attitudes and experiences related to a person’s honesty, dependability, trustworthiness, reliability, and prosocial behavior.

26. Reliability: the degree to which a test measures the same thing consistently Validity: the test measures what it purports to measure and is free of bias.

27. Compensation Wages or salaries Incentives Benefits

28. Base Pay The basic wage or salary paid employees in exchange for doing their jobs. Incentives: commissions, bonuses, profit-sharing plans, stock options

29. Benefits (Fringe Benefits) Additional nonmonetary forms of compensation. Health insurance, dental insurance, life insurance, disability protection, retirement plans, holidays off, accumulated sick and vacation days, recreation options, country club or health club memberships, family leave, discounts on merchandise, counseling, credit unions, legal advise, education reimbursement

30. Orientation Helping the newcomer fit smoothly into the job and the organization. Job routine Organization’s mission and operations Work rules and employee benefits

31. Five Steps in the Training Process 1. Assessment 2. Objectives 3. Selection 4. Implementation 5. Evaluation

32. Training – refers to educating technical and operational employees in how to better do their current jobs. Development – Educating professionals and managers in the skills they need to do their jobs in the future.

33. Computer-Assisted Instruction (CAI) Computers are used to provide additional help or to reduce instructional time.

34. Performance Management A set of processes and managerial behaviors that involve: Defining Monitoring Measuring Evaluating Providing consequences for performance expecations

35. Performance Appraisal Performance Review Consists of Assessing an employee’s performance Providing him or her with feedback

36. Objective Appraisals Objective Appraisals: Also called results appraisals are based on facts and are often numerical They measure results They are harder to challenge legally

37. Subjective Appraisals Based on a manager’s perception of an employee’s Traits Behaviors

38. Behaviorally anchored rating scale Rates employee gradations in performance according to scales of specific behaviors.

39. 360-degree assessment 360-degree feedback appraisal Employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients.

40. Forced Ranking Performance Review Systems All employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve.

41. Formal Appraisals Conducted at specific times throughout the year and are based on performance measures that have been established in advance.

42. Informal Appraisals Conducted on an unscheduled basis and consist of less rigorous indications or employee performance.

43. Who should make performance appraisals? Peers and subordinates Customers and clients Self-appraisals

44. Forced Ranking Performance Review Systems All employees within a business unit are ranked against one another and grades are disbributed along some sort of bell curve.

45. Promotion Moving an employee to a higher-level position Fair Nondiscrimination Others’ resentments

46. Transfer Moving sideways Similar responsibility

47. Disciplining and Demotion Moving downward

48. Dismissal – Moving out of the organization Layoff Downsizing Firing

49. The Legal Requirements of Human Resource Management Labor Relations: National Labor Relations Board: enforces procedures whereby employees may vote to have a union and for collective bargaining. Collective Bargaining: consists of negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security.

50. Compensation and Benefits Social Security Act (1935) established the U.S. Retirement System Fair Labor Standards Act (1938): established minimum living standards for workers engaged in interstate commerce, including providing a federal minimum wage. ($7.25/hour)

51. Health and Safety Occupational Safety and Health Act (OSHA) 1970 A body of law requiring organizations to provide employees with nonhazardous working conditions

52. Equal Employment Opportunity Equal Employment Opportunity Commission Enforces antidiscrimination and other employment-related laws.

53. Three important concepts covered by EEO Discrimination Affirmative Action Sexual Harassment

54. Discrimination Occurs when people are hired or promoted – or denied hiring or promotion – for reasons not relevant to the job

55. Adverse Impact – occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class over another group of people. Disparate Treatment – Results when employees from protected groups are intentionally treated differently.

56. Affirmative Action Focuses on achieving equality of opportunity within an organization. It tries to make up for past discrimination in employment by actively finding, hiring, and developing the talents of people from groups traditionally discriminated against.

57. Sexual Harassment Consists of unwanted sexual attention that creates an adverse work environment Two Types Quid pro quo – tangible economic injury (person to whom the unwanted sexual attention is directed is put in the position of jeopardizing being hired for a job or obtaining job benefits or opportunities unless he or she implicitly or explicitly complies.) Hostile environment – offensive work environment (the person being sexually harassed doesn’t risk economic harm but experiences an offensive or intimidating work environment.)

58. Bullying Repeated mistreatment of one or more persons by one or more perpetrators Abusive physical, psychological, verbal, or nonverbal behavior that is threatening, humiliating, or intimidating.

59. Labor Unions Organizations of employees formed to protect and advance their members’ interests by bargaining with management over job-related issues.

60. Union Security Clause The part of the labor-management agreement that states that employees who received union benefits must join the union, or at least pay dues to it.

61. Right to Work Laws Statues that prohibit employees from being required to join a union as a condition of employment.

62. Two-Tier Wage Contracts New employees are paid less or receive lesser benefits than veteran employees have. Cost of Living Adjustment Clause – during the period of the contract ties future wage increases to increases in the cost of living. Givebacks – the union agrees to give up previous wage or benefit gains in return for something else.

63. Grievance – A complaint by an employee that management has violated the terms of the labor- management agreement. Mediation – the process in which a neutral third party (a mediator) listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution. Arbitration – the process in which a neutral third party (an arbitrator) listens to both parties in a dispute and makes a decision that the partiers have agreed will be binding on them.

64. Realistic Job Preview Gives a candidate a picture of both positive and negative features of the job and organization before he or she is hired. People with realistic expectations tend to quit less frequently and be more satisfied than those with unrealistic expectations.

65. Effective Performance Feedback Formal Appraisals: are conducted at specific times throughout the year and are based on performance measures that have been established in advance. Informal Appraisals: are conducted on an unscheduled basis and consist of less rigorous indications of employee performance.