MGMT 5820 - HRM
The Container Store
1 great person = 3 good people rare and inimitable
Vacancy Characteristics
1. Pay 2. Core job characteristics 3. Job security 4. Advancement opportunities 5. Location 6. Benefits 7. Travel requirements
How to correct a surplus - speed/suffering
Downsizing - f/h Pay reduction - f/h Demotions - f/h Work sharing - f/m Hiring freeze - s/l Natural attrition - s/l Early retirement - s/l Retraining - s/l
Recruitment Sources
internal - promote from within; cheaper, but not practical in small firms external - ads, employment agencies, universities, electronic, referrals; bring in fresh ideas, but riskier (wide receiver vs. punter)
job description
list every dimension of the job, every task and prioritize ex. pass the ball, run the ball
Job Element Inventory (JEI)
list of 150 tasks & uses 3 questions to rank importance 1. Can a barely acceptable worker perform job well? 2. Can superior worker perform job well? 3. Likelihood of trouble from poor performance? scale of 1-5, no KSAOs addressed
Quantitative Studies
look at cos recognized for HRM quality and see if they have a competitive advantage find a "matched firm" - Publix & Piggly Wiggly
O*NET (Occupation Information Network)
online resource that describes the tasks involved in many jobs, along with KSAOs
Define Job Design
the process of defining the way work will be performed and the tasks that will be required in a given job Focus on jobs that will be created or changed 70% not engaged in work
Based on the article, Why We Hate HR, firms currently prioritize this over creating value
Efficiency
This recruitment tactic was used by "The Firm"
Lead-the-market pay, recruiter close to age, and university recruiting source
The result of a job having variety, identity, and significance according to the JCM
Meaningfulness of work
The mechanistic approach to job design that records employees doing jobs at fast speed
Memomotion
The perceptual motor approach to job design focuses on these capabilities
Mental capabilities
Recording employees doing their jobs at slow speeds to analyze the steps and redesign the work space
Micromotion Analysis
Supply Forecasting - Transitional Matrix
Row - go to (where they moved to) Column - come from use numbers to hone in on areas to improve - freeze hiring from outside, change training in anticipation for layoff
The core job characteristic that refers to the fact that jobs affect the lives of other people
Significance
KSAOs - S
Skills - knowing how trainable, not born with these
HRM used be referred to as a "cost center" but this is what you could call its new role
Strategic Partner
New HRM role
Strategic Partner: employee development integration with core operations of org change management results oriented
One of the downsides to downsizing
Takes 3 years to recover, down survivors, culture, climate
The new S (skill) that was introduced into J.D.'s job after it changed in "Scrubs"
Teaching
Tactic to correct a labor shortage that is fast and recoverable
Temporary workers, overtime, outsourcing
Changing Nature of Jobs
change in structure of work computerization automation mergers/acquisitions downsizing
Recruiter Characteristics
close to recruit's age, relatable, friendly, informative, honest/transparent (but how much is too much) small impact on job acceptance, but big impact on second interview rarely trained more effective if recruiting is separate from selection
job specification
come up with KSAOs needed to perform most important tasks
Case Studies
cos that do well financially - good job managing HR? cos that struggle financially - poor job managing HR?
Outsourcing
use outside firm to perform service shifted from being a strategy to a permanent fix, some offshoring pros: economies of scale, foreign labor and different wage standards cons: no control over performance & compensation (quality control); may have bad long term effect on economy
Conceptual Analysis - Resource Based View
value of resources depends on financial, physical and interpersonal RARE (physical), INIMITABLE (mental)
HR departments get new star power
how HR fits in sales/services hiring outside of HR dept cos want business people - becoming more important
Demand Forecasting - Benchmarking
how much labor does a business like ours use? any reason to change?
Supply Forecasting
how much labor will we have? anticipation for how people move up, through, and out of the company
Demand Forecasting
how much labor will we need?
Realistic Job Previews (RJP)
improves perceptions of employer fairness and reduce initial turnover ex. pics of compound in Iraq, going to airport, bugs - show recruits what they're getting into first
Trade offs in Job Design
includes increased training time, likelihood of errors, overload of stress
Downsides of Downsizing
wrong people may be let go many cut too deep, have to replace workers effects on "survivors" can be severe significantly alter culture and climate of organization
Outside hires are less risky for these types of jobs
Independent jobs
Labor supply is greater than the demand
Labor surplus
Why we hate HR
"people person" is great, but need economics and financial knowledge to be successful CFO henchman
Of the most highly rated vacancy characteristics, job security is actually ranked
#3
Personnel Policies
*second biggest factor behind vacancy characteristics Lead the market pay- offer most $$ Promoting from within- look inside first Image advertising- sell brand/culture, not nitty gritty tasks
Position Analysis Questionnaire
194 tasks that fall under overall dimensions - extent of use, amount of time, importance to job, possibility of occurrence, applicability to job pros: linked to aptitude test, broad dimensions, compares different jobs cons: college grad reading level, standard format=abstract characteristics
Overall employment in HR is expected to grow by ___% over the next five years
22%
_____% of the workforce is made up of temporary employees
5-10%
Fleishman System
52 abilities with behavioral benchmark samples pros: measures abilities directly, helpful in distinguishing S & A cons: leaves out K, S, O
Studies show that a 1 unit improvement in HR practices lead to a ____% decreases in turnover
7%
One result that demonstrates that the 100 best firms outperform their "match" in a quantitative analysis of HRM practices
7% decrease in turnover, $27,000 sales increase/employee, $18,000 increase in stock price
___% of Fortune 1000 firms downsized between 1987 and 2001
85%
Downsizing Effectiveness
85% of profitable Fortune 1000 downsized, results revealed that profitability declined in following years, took 3 years to get back to previous profitability
KSAOs - A
Abilities - can do less trainable, born with these and change happens slowly
The job analysis term for a more general enduring capability that an individual possesses
Ability
Motivational, Job Characteristics Model 2
Autonomy: job holder has freedom of expression LEADS TO - Responsibility for work: worker controls the outcome Feedback: jo itself provides feedback on performance LEADS TO - Knowledge of results: worker is aware of job outcome
A method of forecasting that compares your business to others in the industry
Benchmarking
The approach to job design to structure job tasks and the work environment to reduce fatigue and health problems
Biological approach
What's an advantage to external sources?
Brings in fresh ideas
A way of prioritizing vacancy characteristics by rating strengths and weaknesses
Compensatory strategy
These are two of the three methods we can use to answer the question "does HRM matter"
Conceptual Arguments, Case Studies, Quantitative Analysis
This HRM function takes care of pay, promotions, and benefits for employees
Cost Center (old)
Old HRM role
Cost Center: keep track of forms, policy enforcement payroll and insurance cost reduction oriented
This activity answers the question, "How much labor will we need?"
Demand forecasting
One disadvantage to online recruiting
Equity issues or self-selection
A recent trend in online is posting ads here
Downsizing
Firing: permanent involuntary separation Layoff: temporary involuntary termination Attrition: workers voluntarily resign, not replaced Transfer: lateral, downward job change Reduced workweek: fewer hours/week or part time work Early retirement: incentive offered to resign Job sharing: multiple employees share one full time position
The job analysis technique lists the abilities associated with each job
Fleishman System
Motivational, Job Characteristics Model 1
HRM is easier if jobs are intrinsically enjoyable Variety: job has different activities, uses different skills Identity: results in whole, identifiable pieces of work Significance: job affects the lives of other people LEADS TO - Meaningfulness of work: belief that job has meaningful outcome
An article cited this trend when it comes to appointing HR executives
Hiring execs from outside HR
The application of organizational behavior principles with the goal of improving employee behavior and attitudes
Human Resource Management
In terms of JCM, this is a motivational implication of "invisible work"
Identity
The trade-off in the motivational job design approach includes _______
Increased training time, likelihood of errors, overload & stress
Realistic job previews have the potential to reduce _____ and increase ____
Initial turnover, employee fairness
The process of getting detailed info about jobs in organizations
Job Analysis
Process that defines the way that tasks are given and performed
Job Design
This job analysis tech asks whether a Barely Acceptable worker could perform the task in order to rank its importance
Job Element Inventory
Stages of HRM
Job analysis and design Planning and recruiting Selection and legal issues Training and Development Performance Management Compensation Retention and separation
These job analysis initials refer to the two characteristics that are more trainable
K, S
KSAOs - K
Knowledge - what you know trainable, not born with these
Mechanistic
Micromotion: record employees at slow speeds, analyze to eliminate/combine steps or redesign work space Memomotion: record employees at fast speeds, analyze to orient placement of equipment in room Process Engineering: identifies sequence of steps needed to fulfill a job; seeks to discover which steps could be performed be machines or eliminated
The job design approach that maximizes intrinsic employment
Motivational
Job Design Approaches
Motivational (max intrinsic enjoyment) Mechanistic Biological Perceptual Motor (max efficiency and safety)
Vacancy Characteristics Strategies
Noncompensatory: if not $60k, forget it; if not in Atlanta, forget it Compensatory: rate according to strengths/weaknesses in all categories Implicit Favorite: compare other jobs to this example
This is the only job analysis technique that breaks jobs down by all KSAOs
O*NET
KSAOs - O
Other - personality, experience, etc. less trainable, born with these and change happens slowly
How to correct a shortage - speed/revocability
Overtime - f/h Temp workers - f/h Outsourcing - f/h Retrained transfers - s/h Turnover reduction - s/m New external hires - s/l Technology change - s/l
Biological
structure job tasks and the work environment to reduce physical fatigue and health problems
Second biggest factor in successful recruiting process
Personnel policies
The Resource Based View claims that resources are valuable when they have these two traits
Rare and inimitable
Showing job applicants about the inhospitable nature of the work environment is an example of this
Realistic Job Preview
Practices and activities used to identify and attract potential employees
Recruitment
Job Analysis Tools Use
Recruitment: impt tasks grouped into description for job, include KSAOs Selection: KSAOs are things to look for in resume/interview Legal Issues: impt tasks become essential job function; cos can refuse disabled if can't perform function Training: design training to improve K,S; perform basis for evaluation Performance: performance of tasks is measured Compensation: fulfillment of key tasks, more rare KSAOs = more $
The Container Store demonstrated that employees are rare and inimitable supported this theory
Resource Based View
Labor Surplus
supply is greater than demand
Labor Shortage
supply is less than demand
Define HRM
The application of organizational behavior principles to organizations with the goal of improving attitudes and behavior of employees
The supply forecasting method:
The transitional matrix
Does HRM matter?
Yes, need it for competitive advantage
A company we studied whose employees exemplify the components of the Job Characteristics Model
Zappos
Demand Forecasting - Educated Guesses
take other factors into account - product launches, change in competitors)
Recruitment
practices and activities firms use to identify and attract potential employees Achievement Indicators: Number of applicants Quality of applicants Likelihood of acceptance
Define Job Analysis
process of getting detailed information about jobs in an organization before recruit, select, train, evaluate and compensate; understand job Jobs that already exist
Online Recruiting
pros: efficiency (applicants do all the work), data collection (demographics) cons: equity issues (equal chance for recognition), self selection (company may get lots of unqualified apps) informed self-selection: people who fit apply to the job, if they don't, they don't
Temporary employees
pros: saves benefit costs; decrease need for selection; decrease need for training; unhindered by existing culture cons: friction with regular employees; 2 tier system; no more extra role behaviors
Demand Forecasting - Statistical Methods
sales this year correlate with labor demand next year
Perceptual Motor
similar to biological, but focus on mental capacities and limitation rather than physical