CHapter 11 Mgmt 371 Human resources
Human capital is
is a key competitive advantage to companies, and those who utilize their human resource partners effectively to drive their human capital strategy will reap the benefits.
KSAO stans for
knowledge, skills, abilities and other characteristics
as stated in the book the authors broke the evolution of HR into waves: wave 1 focused on the administrative work of HR personnel, which consisted of
terms and conditions of work, delivery of HR services, and regulatory compliance.
Jack wlech created this model to deal with the long standing concern that supervisors failed to label real differences in performance
the forced ranking system
hiring top level executives steps in the process
- anticipate - specify the jpb - develop a pool - assess the candidates - hire the choice - integrate the new hire - review the process
the total rewards model looks at:
- compensation - benefits - work-life -performance and recognition - career development and advancement want to adress as many of employees concerns possibilities to make them want to perform better (total rewards package)
a selection measure has these qualities:
- individualization - relevance - measurability - variance
Methods for selection include
- interviews -tests (ability, aptitude, mental) - job simulations - bio-data and forms - various assessments
performance appraisal: annual
Annual: •Pro: Establishes link between employee performance and employee's standing in the company •Con: Allows managers to avoid addressing issues until end of year •Con: Disconnects actions from feedback
HR outcomes
Attraction Performance Retention Attendance Satisfaction Other
projected staffing requirements
HR look through to make sure a company isnt overstaffed, understaffed, but is fully staffed
In Wave 4, HR continues to be a partner to the business, but has also become a competitive practice for responding to external business conditions.
HR looks outside their organizations to customers, investors, and communities to define success—in the form of customer share, investor confidence, and community reputation
•the measure should generate differences among workers assessed (not everyone gets an A not everyone gets an F)
variance
a firm will not want to perform in which circle:
vicious circle
a firm will want to perform in which circle:
virtuous circle
The 4 waves in regards to the time HR evolution diagram are:
wave 1 HR administration wave 2 HR practices wave 3 HR strategy wave 4 HR outside in
performance predictors and performance measures must be coorelated
when trying to find the right canidate for the position
the employee life cycle includes:
•Human resources compliance •Employee selection (making hiring decisions) , hiring, and onboarding •Performance management •Compensation rewards and benefits •Talent development and succession planning
the general rule
•When hiring, promoting, and firing decisions are made using a reasonable process the company made in advance, the company will be ok. - •Caveat - Take Selection and Placement, Regulations in New Ventures, and Compensation Management for the full answer.
•how can HR help the business create positions and organizational structures that achieve the business's strategy AND how can HR recruit and hirer the right people for those positions?
Perspective employees
performance appraisal: weekly or monthly
Weekly or monthly: •Pro: Brings feedback closer to the action or behavior •Pro: Can avoid litigation (real-time documentation and action) •Con: Takes time •Con: Can result in micro-managing
Job Analysis
a purposeful, systematic process for collecting information on the important work-related aspects of a job
the recruitment process goes from
applicant population to hires - the pipe line becomes more and more singuous as they decide on the hire
Jack welch created the force ranking system which (shows an extreme rank of performance appraisals)
each cycle all employees are ranked as: A tier: rewarded B Tier: accomodated (told to keep trying hard) C Tier: Dismissed (let go) - Pros: clear understanding of ones status - Con: internal competition, undermined collaboration, and ignored potential growth in mid-performing employees
Challenges of performance management
goal alignment: •Linking organization goals to specific of project or individual goals is challenging •Both organizational and project/individual goals change over time How to reward performance? : pay for performance, adress employees holistic needs (work life balance)
as stated in the book the authors broke the evolution of HR into waves: wave three
has focused on the integration of HR strategy with the overall business strategy. Human resources appropriately began to look at the business strategy to determine what HR priorities to work on and how to best use resource
•the performance being measured is under the person's control
individualization
Question 3: •How does HR insure the company is operating within the correct legal frameworks?
legal compliance
•the measure should be a number that reflects the quality or amount of work performed
measurability
the goal of selection is
necessary knowledge, skills, abilities and other characterstics (KSAOs)
•the measure should related to a critical aspect(s) of the job
relevance
systematic collection of information about an individual
selection
as stated in the book the authors broke the evolution of HR into waves: Wave 2 focused on the design of innovative HR practice areas
such as compensation, learning, communication, and sourcing. The HR professionals in these practice areas began to interact and share with each other to build a consistent approach to human resource management. The HR credibility in Wave 2 came from the delivery of bestpractice HR solutions.
design a merit matrix which
ties employee annual pay increases to performance
3 steps HR goes through when looking for staffing:
1. Recruitment: (identification and attraction) 2. Selection (assessment and evaluation) 3. Employment (decision making and final match)
HR in 3 questions
1. perspective employees 2. current employees 3. legal compliance
An evaluation tool that collects feedback from manager, peers, direct reports, and customers.
360 assessment
question 2: •How can HR help the business create a process to fairly evaluate performance and enhance employee development while not burdening the business with undue bureaucracy and non-value-added activities?
Current employees
Pay for performance
Direct Methods: pay per piece, commission on sale, pay for good safety record Indirect methods: bonuses, promotion, stock options or revenue share
this model collectively define an organizations strategy to attract, motivate, retain and engage employees
Total Rewards model