Chapter 10 : Human Resource Management

Results-Oriented Approaches

• 360-degree Feedback ➢ Feedback from the supervisor, subordinates, coworkers, and self-appraisal gives a more complete picture. • Management-by-Objectives ➢ Managers and employees work together to establish mutually agreed-upon employee performance goals (targets).

Job Description and Specification

• A job description explains the job in terms of: ➢ Tasks ➢ Duties ➢ Responsibilities • A job specification lists what is needed to perform the job successfully. ➢ Knowledge ➢ Skills ➢ Abilities ➢ Employee characteristics

Selection Methods

• Application forms and resumes • Tests ➢ Work Samples ➢ Assessment Centers ➢ Personality Test • Interviews • Physical exams and drug tests

Assessment Centers

• Assessment centers are usually more appropriate to judge a candidate's predicted performance in a more complex job. ➢ The candidate typically is presented with a large number and varying types of tasks to do (sometimes more than can reasonably be done). ➢ The intent of the assessment center is to judge how a candidate would behave and perform in selected tasks to predict performance on the job.

Direct Compensation

• Base Pay ➢ Wages and salaries that employees receive directly in exchange for performing their jobs. • Incentives ➢ Compensation beyond base pay used to attract, retain, and motivate employees. • Bonuses, commissions, profit-sharing plans, stock options.

Behavior-Oriented Approaches

• Behavior-Oriented Approaches ➢ Performance appraisal focused on assessing employee behavior is based on the idea that certain behaviors will lead to successful performance on the job. • Commonly used methods are: ➢ Graphic rating scales ➢ Behaviorally-anchored rating scales

Appraisal Methods

• Behavior-oriented Approaches • Results-oriented Approaches

Indirect Compensation

• Benefits ➢ Rewards that employees receive indirectly as part of their employment relationship with the organization. • Benefit Categories ➢ Required and voluntary security ➢ Retirement ➢ Time-off ➢ Insurance and financial ➢ Social and recreational

Labor-Management Relations

• Collective Bargaining ➢ The formal process through which labor unions represent employees to negotiate terms and conditions of employment, including: • Pay • Hours of work • Benefits • Other important aspects of the working environment

Designing Equitable Reward Systems

• Compensation designers are concerned with three sources of fairness expectations: ➢ External Fairness: Is the pay for the job fair in one organization relative to the pay for the same job in other organizations? ➢ Internal Fairness: Is the pay for the job within the organization fair relative to the pay of other jobs in the same organization? ➢ Employee Fairness: Is the pay fair relative to what coworkers are making on the same job?

Forecasting/ Human Resource Planning

• Demand Forecasting ➢ Determining the number of employees that the organization will need at some point in the future as well as the knowledge, skills, and abilities that these employees must possess. • Supply Forecasting ➢ Determining what human resources will be available, both inside and outside the organization.

Union

• Formal association of worker that promotes the interests of its members through collective action. • Why employees unionize? ➢ Dissatisfaction with treatment by employers ➢ Believe that unions can improve work situations • Five main components to the discussion ➢ Employment Act 1955 ➢ Working hours management ➢ Trade Unions and members' rights ➢ Collective Bargaining ➢ Disputes and Settlements

Interviews

• Formal, in-depth conversations ➢ Assess a candidate's knowledge, skills and abilities. ➢ Provide the candidate with information about the organization and potential jobs. • Interviews tend to have low validity. ➢ While many people conduct interviews, few are trained in how to do them well. ➢ The comparability of interview results across individuals raises issues with reliability.

Problems with Performance Appraisal

• Halo Effect ➢ When a manager rates an employee high or low on all items because of one employee characteristic. • Central Tendency ➢ The rater judges all employees as average, even though their performance varies. • Leniency-Severity Error ➢ When the rater is unjustifiably easy or harsh in evaluating performance. • Contrast Error ➢ Rating employees relative to each other rather than to performance standards. • Recency Error ➢ When a rater bases an evaluation on an employee's most recent performance. Rewarding • Organizations must reward employees for doing good work, for helping achieve the goals and mission of the organization. ➢ Frequently, when the word reward is used, we think of money. ➢ However, there are very important non-monetary rewards the employees are also seeking from their work.

Safety & Health

• Health ➢ A general state of physical, mental and emotional well-being • Safety ➢ A condition in which the physical well-being of people is protected • Security ➢ The protection of employees and organization facilities Safety Management Issues ➢ Organizational commitment ➢ Policies, discipline and record keeping ➢ Training and communication ➢ Participation (safety committees) ➢ Inspection, investigation and evaluation ➢ Workplace violence ➢ Internet/ intranet security ➢ Business interruption/ disaster recovery ➢ Fraud/ white collar crime

Personality Tests

• Judge whether a person "fits" into the organization. ➢ The goal is to hire people who already have characteristics and attitudes that are line with the core values of the organization and its culture. ➢ It is assumed that it is easier to teach a person the details of a job than it is to change deeply-held attitudes or to change personality characteristics.

Appraising

• Performance Appraisal ➢ A systematic process of evaluating employee job-related achievements, strengths, weaknesses, as well as determining ways to improve performance. • Uses of performance appraisal information: ➢ Motivation ➢ Personnel movement ➢ Training ➢ Feedback for improvement and personal development

Performance Tests

• Performance tests require the job candidate to actually perform it the job, usually in a small part or for a short time. ➢ Work samples ➢ Assessment centers

Physical Examinations and Drug Tests

• Physical Examination ➢ Intended to ensure that a person is physically able to carry out certain job requirements. ➢ Can also be used to enroll employees in fringe benefits such as health, life, or disability insurance. • Drug tests ➢ Are used by many companies for both hiring and for continued employment. • Drug-Free Workplace Act

Implications for Leaders

• Recognize that SHRM is a critical element of the strategic planning process and is essential for long-term organizational success. • Keep in mind that job analysis is essential in order to understand what knowledge, skills, abilities, and attitudes each job requires. • Carefully evaluate both internal and external sources for recruiting people. • Base all SHRM decisions on job-related criteria and not on racial, gender or other unjustified bias. • To keep pace with rapid changes in technology, be sure to upgrade the knowledge and skill base of employees through training programs. • Develop equitable pay systems, unbiased performance appraisals, and equal access to training opportunities. • Be innovative in scheduling work, designing jobs, and rewarding employees so that you can respond effectively to the changing composition and needs of the work force.

Strategic Human Resource Management

• Strategic Human Resource Management (SHRM) ➢ Managing in such a way as to coordinate all human resource components and focus them on achieving organizational goals and overall strategy. • Other definition ➢ The design of formal systems in an organization to ensure effectiveness and efficient use of human talent to accomplish organizational goals. (Mathis) ➢ HRM is the management function that deals with recruitment, placement, training, and development of organizational members. (Stoner)

Written Tests

• Test the applicant in a variety of areas: ➢ Knowledge ➢ Ability ➢ Skill ➢ Intelligence ➢ Interest

Recruitment

• The process of finding and attracting job candidates who are qualified to fill job vacancies. ➢ Internal recruitment • Identifying candidates from inside the organization and encouraging them to apply for vacant jobs. ➢ External recruitment • Advertising for and soliciting applicants from outside the organization to vacant jobs.

Interview Guidelines

• To increase the validity and reliability of an interview: ➢ Base the interview questions on a complete and current job analysis. ➢ Ask precise, specific questions that are job related. ➢ Avoid biases, making snap judgments, stereotyping, or looking for only negative, or only positive, information. ➢ Be careful about having a perception, or stereotype, of what the "good" candidate is. • To increase the validity and reliability of an interview: ➢ Be careful about making up you mind about the applicant in the first several minutes, as is usually the case. ➢ Avoid questions that can lead to discrimination. ➢ Keep written records of the interview.

Validity and Reliability

• To select the right person for a job, any method used to make an employment decision must demonstrate validity and reliability. ➢ Validity requires that the method accurately measure or predict what it is intended to measure or predict. ➢ Reliability means that the method must measure, or predict, the same thing each time it is used. • Any selection method must be job-related. ➢ Test results must correlate with a criterion for success on the job.

Application Forms and Resumes

• Usually the first sources of information about a potential employee. • Usually record the applicant's desired position and job-related qualifications and experience. • Both serve as prescreening devices to help determine whether an applicant meets the minimum requirements of a position. • Both also allow for preliminary comparisons with the credentials of other candidates.

Work Samples

• Work samples are more appropriate for jobs that are more routine and/or more specific. ➢ If work samples are designed and selected well, then the person's performance in the work sample should accurately predict their performance on the job. ➢ Work samples do show high validity scores, especially when compared to written aptitude, personality or intelligence tests.

Training

➢ A planned effort to assist employees in learning job-related behaviors in order to improve performance. • Companies train employees in an effort to prepare them to work toward achieving the goals and objectives of the organization. • Types of Training Programs ➢ Orientation ➢ Technical training ➢ On-the-job training ➢ Management development programs

Behavioral-Anchored Rating Scales (BARS)

➢ Are similar to graphic rating scales, but use more detailed examples of job behaviors to represent different layers of performance. ➢ Rely on job analysis information to describe a range of desirable and undesirable behaviors for each performance dimension. ➢ Reduce subjective interpretation of performance because they are based on clearly stated job-related activities.

Graphic Rating Scales

➢ Assess employee's on a series of performance dimensions such as: • Initiative • Tardiness • Accuracy of work ➢ Performance dimensions tend to be general and relatively flexible which allows them to be used to evaluate individuals in a number of different jobs.

Job Analysis

➢ Studying a job in order to understand what is needed to help the job holder perform a job successfully. • Knowledge, skills, abilities, attitudes, and other characteristics • JA in a building block of all HR functions. Used for the following; ➢ Work redesign ➢ HR Planning ➢ Selection ➢ Training ➢ Performance Appraisal ➢ Job evaluation

Selection

➢ The process of evaluating and choosing the best qualified candidate from the pool of applicants recruited for the position. • Entails the exchange of accurate information between employers and job candidates to optimize the person-job match. • Although organizations usually make these decisions, applicants also self-select by choosing to join, not to join, or to leave, organizations according to their individual needs.