1. Staffing and Leading a Growing Company

2. What is strategic human resource management?
Involves attracting, developing, and maintaining a talented and energetic workforce to support the organization’s mission, objectives, and strategies.
Is a strategic process.
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3. HRM main responsibilities
Attracting a quality workforce
Human resource planning, recruitment, and selection
Developing a quality workforce
Employee orientation, training and development, and career planning and development
Maintaining a quality workforce
Management of employee retention and turnover, performance appraisal, and compensation and benefits
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4. What is strategic human resource management?
Applies the HRM process to ensure the effective accomplishment of organizational mission and strategies.
Human resource planning
The process of analyzing staffing needs and planning how to satisfy these needs in a way that best serves organizational mission, objectives, and strategies.
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5. Choosing HR strategies
Organizational Strategies
Organizational Capabilities
HR Strategies
Organizational Characteristics
Environments
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6. What is strategic human resource management?
Steps in the human resource planning process:
Step 1—review organizational mission, objectives, and strategies.
Step 2—review human resource objectives and strategies.
Step 3—assess current human resource needs.
Step 4—forecast human resource needs.
Step 5—develop and implement human resource plans.
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7. What is strategic human resource management?
The foundation of human resource planning is job analysis.
The orderly study of job facts to determine just what is done, when, where, how, why, and by whom in existing or potential new jobs.
Work flow
Organizational structure
Job analysis provides information for developing:
Job descriptions
Job specifications
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8. Trait or Characteristic
Table Linking Tasks from a Job Description to the Traits Needed to Perform the Job.
Job Task
Trait or Characteristic
Generate and close new sales
Outgoing, persuasive, friendly
Make 15 “cold calls” per week
Self-starter, determined, optimistic,independent, confident
Analyze customers’ needs and recommend proper equipment
Good listener, patient, empathetic
Counsel customers about options and features needed
Organized, polished speaker, “other” oriented
Prepare and explain financing methods
Honest, mathematically oriented,” comfortable with numbers, understands basics of finance, computer literate
Retain existing customers
Relationship builder, customer-focused

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Job Design Strategies
Job simplification - breaks work down into its simplest form and standardizes each task.
Job enlargement (horizontal job loading) - adds more tasks to a job to broaden its scope.
Job rotation - cross-trains workers so they can move from one job in a company to others, giving them a greater number and variety of tasks to perform. Often used with a skill-based pay system.
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10. Copyright 2006 Prentice Hall Publishing Company
Job Design Strategies
(Continued)
Job enrichment (vertical job loading) - builds motivators into a job by increasing the planning, decision making, organizing and controlling functions (which traditionally were managerial tasks).
Five core characteristics:
Skill variety
Task identity
Task significance
Autonomy
Feedback
Enriched
Job
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11. Copyright 2006 Prentice Hall Publishing Company
Job Design Strategies
(Continued)
Flextime - an arrangement under which employees build their work schedules around a set of “core hours” - such as 11 a.m.. to 2 p.m. - but have flexibility about when they start and stop work.
Job sharing - a work arrangement in which two or more people share a single full-time job.
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12. Copyright 2006 Prentice Hall Publishing Company
Job Design Strategies
(Continued)
Flexplace - a work arrangement in which employees work at a place other than the traditional office, such as a satellite branch closer to their homes or, in some cases, at home.
Telecommuting - an arrangement in which employees have employees working from their homes use modern communications equipment to hook up to their workplaces.
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13. How do organizations attract 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.
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14. How do organizations attract a quality workforce?
Recruitment methods
External recruitment—candidates are sought from outside the hiring organization.
Internal recruitment—candidates are sought from within the organization.
Traditional recruitment—candidates receive information only on most positive organizational features.
Realistic job previews—candidates receive all pertinent information.
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15. How do organizations attract a quality workforce?
Selection
Choosing from a pool of applicants the person or persons who offer greatest performance potential.
Selection Steps
Completion of a formal application form
Interviewing
Testing
Reference checks
Physical examination
Final analysis and decision to hire or reject
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16. Trait or Characteristic
Table 19.3 Interview Questions for Candidates for a Sales Representative Position
Trait or Characteristic
Question
Outgoing, persuasive, friendly
How do you persuade reluctant prospects to buy? Can you give an example?
Good listener, patient, empathetic
What would you say to a fellow salesperson who was getting more than her share of rejections and was having difficulty getting appointments?
Honest, mathematically oriented,” comfortable with numbers, understands basics of finance, computer literate
How do you feel when someone questions the truth of what you say? Can you give an example of successfully overcoming this situation?
Other questions:
If you owned a company, why would you hire yourself?
How do you acknowledge the contributions of others in your department?

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Employment Tests
Valid test – one that measures what it is intended to measure (e.g. aptitude for selling)
Reliable test – one that measures consistently over time.
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18. Copyright 2006 Prentice Hall Publishing Company
Socialization
Socialization is important to retain and maximize the human resource. Socialization can be divided into three phases.
Settling – in
Encounter
Anticipatory
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19. How do organizations develop 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
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20. How do organizations develop a quality workforce?
Performance management systems ensure that—
Performance standards and objectives are set.
Performance results are assessed regularly.
Actions are taken to improve future performance potential.
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21. How do organizations develop a quality workforce?
Performance appraisal
Formally assessing someone’s work accomplishments and providing feedback.
Purposes of performance appraisal:
Evaluation—let people know where they stand relative to objectives and standards.
Development—assist in training and continued personal development of people.
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22. How do organizations develop a quality workforce?
Graphic rating scales
Behaviorally anchored rating scales (BARS)
Critical-incident techniques
Multi-person comparisons
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23. How do organizations develop a quality workforce?
Alternatives to supervisory appraisal:
Peer appraisal
Occurs when people who work regularly and directly with a jobholder are involved in the appraisal.
Upward appraisal
Occurs when subordinates reporting to the jobholder are involved in the appraisal.
360° feedback
Occurs when superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholder’s performance.
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24. How do organizations maintain a quality workforce?
Basic career development concepts …
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—process of systematically 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 work responsibility.
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25. How do organizations maintain 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
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26. How do organizations maintain 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
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27. Copyright 2006 Prentice Hall Publishing Company
Company Culture
Distinctive, unwritten, informal code of conduct that governs the behavior, attitudes, relationships, and style of an organization.
“The way we do things around here.”
In small companies, culture plays as important a part in gaining a competitive edge as strategy does.
See Amy’s Ice Creams example.
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28. Characteristics of Positive Company Culture
Respect for work and life balance
Sense of purpose
Sense of fun
Diversity
Integrity
Participative management
Learning environment
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29. Copyright 2006 Prentice Hall Publishing Company
Communication
Managers spend about 80 percent of their time in some form of communication:
30% talking
25% listening
15% reading
10% writing
Many problems in the workplace arise because of poor communication.
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30. Communicating Effectively
Clarify your message before communicating it.
Use face-to-face communication whenever possible.
Be empathetic.
Match your message to your audience.
Be organized.
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31. Communicating Effectively
Encourage feedback.
Tell the truth.
Don’t be afraid to tell employees about the business, its performance, and the forces that affect it.
Be a good listener.
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32. The Challenge of Motivating Workers
Empowerment
Job design
Rewards and compensation
Feedback
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33. Copyright 2006 Prentice Hall Publishing Company
Empowerment
Involves giving workers at every level of the organization the power, the freedom, and the responsibility to control their own work, to make decisions, and to take action to meet the company’s objectives.
Requires a different style of management from that of the traditional manager.
Is built on sharing information, authority, and power.
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34. Copyright 2006 Prentice Hall Publishing Company
Open-Book Management
Employees:
See and learn to understand a company’s financial statements and its critical numbers.
Learn that a significant part of their jobs is moving those critical numbers in the right direction.
Have a direct stake in the company’s success through profit sharing, ESOPs, or performance-based bonuses.
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35. Rewards and Compensation
The key to using rewards to motivate workers is tailoring them to the needs and characteristics of individual workers.
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36. Rewards and Compensation
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
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37. Rewards and Compensation
Money is an effective motivator - up to a point.
Pay-for-performance systems
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38. Copyright 2006 Prentice Hall Publishing Company
Pay-for-Performance
Employees’ incentive pay must be clearly and closely linked to their performances.
Employees must be able to see the connection between what they do every day on the job and the rewards they receive.
The system must be simple enough so that employees understand and trust it.
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39. Copyright 2006 Prentice Hall Publishing Company
Pay-for-Performance
Employees must believe the system is fair.
The system should be inclusive, rewarding all employees, no matter what their jobs might be.
The system should make frequent payouts to employees.
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40. Rewards and Compensation
Intangible rewards such as praise, recognition, celebrations, and others can be very powerful, yet inexpensive, motivators.
How do generational differences influence the types of rewards to which employees respond?
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41. The Feedback Loop Deciding What to Measure Taking Action How to
Comparing
Actual Performance
Against
Standards
Deciding
What to
Measure
How to
Taking
Action
to Improve
Performance
Actual

42. Guidelines for Successful Performance Appraisals
Link the employee’s performance to the job description.
Establish meaningful, job-related, observable, measurable, and fair performance criteria.
Prepare for the appraisal by outlining the key points you want to cover with the employee.
Invite the employee to provide an evaluation of his own job performance based on the criteria.
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43. Guidelines for Successful Performance Appraisals
(Continued)
Be specific.
Keep a record of employees’ critical incidents - both positive and negative.
Discuss the employee’s strengths and weaknesses.
Incorporate employees’ goals into the appraisal.
Keep the evaluation constructive.
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44. Guidelines for Successful Performance Appraisals
(Continued)
Praise good work.
Focus on behaviors, actions, and results.
Avoid surprises (for both the employee or the business owner).
Plan for the future.
Smart business owners spend about 20% of a performance appraisal discussing past performance and 80% developing goals, objectives, and a plan for improving performance in the future.
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45. Human Resource Management
Issues for Entrepreneurs in Vietnam
Overview
The Labor Pool
Labor Laws
Inexpensive Labor: Vietnam’s Most Valuable Resource
Organized Labor
Recruiting
Wages and Benefits
Cultural Considerations
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46. Copyright 2006 Prentice Hall Publishing Company
How is your HR plan?
Organization structure
Work flow
Job description
Hiring
Compensation
Performance appraisal
Rewarding
Training (if needed)
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