CH11-Managing Human Resources

CH11-Managing Human Resources

1. Human resource management (HRM) refers to the design and application of formal systems in an organization to ensure the effective and effi cient use of human talent to accomplish organizational goals.

2. THE STRATEGIC ROLE OF HRM IS TO DRIVE ORGANIZATIONAL PERFORMANCE

   • Human resources departments not only support strategic objectives but also actively pursue an ongoing, integrated plan for furthering the organization’s performance
   • The Strategic Approach. Recognizes 3 key elements
     • 1. All managers are involved in human resource management
     • 2. Employees are viewed as assets
     • 3. Human resource management is a matching process, integrating the organization’s strategy and goals with the correct approach to managing human capital.
   • Building Human Capital to Drive Performance
     • Human capital refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees.
   • Globalization
     • The success of a company’s global business strategies is closely tied to the effectiveness of the organization’s global HR strategies
       • International human resource management (IHRM) is a subfield of human resource management that addresses the complexity that results from recruiting, selecting, developing, and maintaining a diverse workforce on a global scale.
       • Discrimination: the hiring or promoting of applicants based on criteria that are not job relevant.
         • Remedies of discrimination include providing back pay and taking affirmative action
           • Affirmative action: a policy requiring employers to take positive steps to guarantee equal employment opportunities for people within protected groups.
             • The goal is to reduce or eliminate internal inequities among affected employee groups.

3. THE CHANGING NATURE OF CAREERS: Another current issue is the changing nature of careers and a shift in the relationship between employers and employees.

   • The Changing Social Contract
     • Downsizing, outsourcing, rightsizing, and restructuring have led to the elimination of many positions in organizations
       • Innovations in HRM
         • The rapid change and uncertainty in today’s business environment bring signifi cant new challenges for human resource management.
           • Becoming an Employer of Choice
             • An employer of choice is a company that is highly attractive to potential employees because of human resources practices that focus not just on tangible benefits but also on intangibles and that embraces a long-term view to solving immediate problems
           • Using Temporary and Part-Time Employees
             • Contingent workers: people who work for an organization, but not on a permanent or fulltime basis, including temporary placements, contracted professionals, or leased employees.
           • Promoting Work/Life Balance
             • Telecommuting means using computers and telecommunications equipment to do work without going to an office
           • Rightsizing the Organization
             • Rightsizing refers to intentionally reducing the company’s workforce to the point where the number of employees is deemed to be right for the company’s current situation
               • Also called downsizing, planned reductions in the size of the workforce are a reality for many of today’s companies.

4. FINDING THE RIGHT PEOPLE

   • Underlying the organization’s effort to attract employees is a matching model.
     • matching model: an employee selection approach in which the organization and the applicant attempt to match each other’s needs, interests, and values.
   • Human Resource Planning
     • Human resource planning is the forecasting of human resource needs and the projected matching of individuals with expected vacancies.
     • By anticipating future human resource needs, the organization can prepare itself to meet competitive challenges more effectively than organizations that react to problems only as they arise.
   • Recruiting
     • Recruiting is defined as “activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied.
     • Many organizations use internal recruiting, or promote-from-within policies, to fill their high-level positions
     • Assessing Organizational Needs
       • Basic building blocks of human resource management include job analysis, job descriptions, and job specifications.
         • job analysis: the systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job.
         • job description: a concise summary of the specific tasks and responsibilities of a particular job
         • job specification: an outline of the knowledge, skills, education, and physical abilities needed to adequately perform a job.
       • realistic job preview A recruiting approach that gives applicants all pertinent and realistic information about the job and the organization.
     • Legal Considerations
       • Organizations must ensure that their recruiting practices conform to the law
     • E-cruiting
       • E-cruiting, dramatically extends the organization’s recruiting reach, offering access to a wider pool of applicants and saving time and money
   • Selecting
     • Employers assess applicants’ characteristics in an attempt to determine the “fit” between the job and applicant characteristics.
       • The application form is used to collect information about the applicant’s education, previous job experience, and other background characteristics.
       • The interview serves as a two-way communication channel that allows both the organization and the applicant to collect information that otherwise might be difficult to obtain.
       • Employment tests may include intelligence tests, aptitude and ability tests, and personality inventories.
       • Assessment center is atechnique for selecting individuals with high managerial potential based on their performance on a series of simulated managerial tasks.

5. MANAGING TALENT

   • Training and Development
     • Represent a planned effort by an organization to facilitate employees’ learning of job-related skills and behaviors
   • On-the-Job Training
     • A type of training in which an experienced employee “adopts” a new employee to teach him or her how to perform job duties.
   • Corporate Universities
     • An inhouse training and education facility that offers broad-based learning opportunities for employees.
   • Mentoring: when an experienced employee guides and supports a less-experienced employee.
     • Coaching: A method of directing, instructing and training a person with the goal to develop specific management skills
   • Performance Appraisal
     • The process of observing and evaluating an employee’s performance, recording the assessment, and providing feedback to the employee.
       • 360-degree feedback: a process that uses multiple raters, including self-rating, as a way to increase awareness of strengths and weaknesses and guide employee development.
   • Performance Evaluation Errors
     • stereotyping: placing an employee into a class or category based on one or a few traits or characteritsics.
     • behaviorally anchored rating scale (BARS): A rating technique that relates an employee’s performance to specific job-related incidents.
     • halo effect: a type of rating error that occurs when an employee receives the same rating on all dimensions regardless of his or her performance on individual ones.

6. MAINTAINING AN EFFECTIVE WORKFORCE

   • Maintenance of the current workforce involves compensation, wage and salary systems, benefits, and occasional terminations
     • COMPENSATION: refers to 1. all monetary payments and 2. all goods or commodities used in lieu of money to reward employees
       • job-based pay: means linking compensation to the specific tasks an employee performs.
       • job evaluation: the process of determining the value of jobs within an organization through an examination of job content.
       • wage and salary surveys: surveys that show what other organizations pay incumbents in jobs that match a sample of “key” jobs selected by the organization
       • pay-for-performance: ties at least part of compensation to employee effort and performance.
     • BENEFITS: Some benefits are required by law, such as Social Security, unemployment compensation, and workers’ compensation. Other types of benefits, such as health insurance, vacations...
     • TERMINATION: The value of termination for maintaining an effective workforce is twofold
       • 1. employees who are poor performers can be dismissed
       • 2. employers can use exit interviews as a valuable HR tool, regardless of whether the employee leaves voluntarily or is forced out
       • An exit interview is an interview conducted with departing employees to determine why they are leaving.

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