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