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Human Resource Management

Chapter 12

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Learning Objectives1. Explain the role of human resource management in organizational

strategic planning.

2. Describe federal legislation that affects human resource management.

3. Describe the type of information collected in a job analysis.

4. Describe activities of human resource planning and recruitment.

5. Define the concept of validity and describe the various measures used in selecting employees.

6. Describe measures used in performance appraisal.

7. Identify issues which managers must consider in establishing pay and benefits.

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Human Resource ManagementActivities which managers engage in to attract and retain employees and ensure their performance contributes to organizational goals effectively and efficiently.

Activities which managers engage in to attract and retain employees and ensure their performance contributes to organizational goals effectively and efficiently.

In strategic HRM, focus on designing components of the human resource system which

•are consistent with each other

•Recognize that employees are assets for competitive advantage

•Match the organization’s strategy and goals

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Components of an HRM System

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Federal Legislation The goal of legislation is to ensure all employees are treated fairly in the

workplace. EEO Legislation attempts to:

balance the pay given to men and women. provide employment opportunities without regard to race, religion, national

origin, and sex. ensure fair treatment for employees of all ages. avoid discrimination against disabled individuals.

Defines enforcement agencies for these laws.

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Title VII of the Civil Rights Act of 1964 Prohibits discrimination on the basis of sex, race, color,

religion or national origin in any employment condition Unlawful discrimination includes

Unequal treatment – apply different standards or treatment to different employees

Adverse impact – Practice that is applied the same to all groups but has a differential effect on certain groups. Use 80 percent rule to define adverse impact

Covers employers with ≥ 15 employees; federal, state, and local governments, unions, employment agencies.

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Civil Rights Act of 1991 Several court cases had changed accepted case law concerning

establishment of adverse impact as proof of discrimination Passed by Congress to return to standards accepted prior to

1989 court cases Employee must prove that specific practice discriminates

by adverse impact Employer must demonstrate that practice is job-related

and necessary for effective job performance Allows jury trials and compensatory as well as punitive

damages.

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Americans with Disabilities Act Prohibits discrimination based on physical or mental ability

by employers Requires that “reasonable accommodations” be provided for

employees to assist in performance of duties Encourages development of job descriptions focusing on what

needs to be accomplished rather than exactly how a duty is performed

Covers employers with ≥ 15 employees; federal contractors and federal government covered by Vocational Rehabilitation Act (1973)

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Recruitment and Selection

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Job Analysis

Information Collected about a Job• Duties and Tasks – what the worker does• Knowledge, skills and abilities – competencies the worker

must have to perform the job• Physical tasks and work conditions

Process of collecting information and making judgments about the essential duties, tasks and responsibilities of a job and the

knowledge, skills and abilities to perform the job.

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Job Analysis

Duty and Task statements include the following:What the worker does – use action verbTo what or whom it is done Any materials, tools or equipment used to perform the dutyAny procedures or guidelines that must be followed

Judgments of the importance of the duty and the amount of time spent on the duty are typically collected.

For ADA, essential duties of the job must be specified – those duties which cannot be reassigned to others.

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Job Analysis

Duty and Task statement example for Equipment Operator:

Equipment Operator

Build or maintain roadways through property by scraping roadways, knocking over timber, and spreading gravel using backhoe and medium sized dozer.

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Job Analysis

Knowledge, Skills and AbilitiesKnowledge – body of informationSkill – observable competence of psychomotor function (typing, shooting firearm)Ability – power to perform an activity (communicate in writing)

Include description of KSA and level of KSA (how it is used)

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Job Analysis

KSA example

Firefighter:

Knowledge of fire suppression agents such as foam, water, dry chemical, carbon dioxide, halon and pressurized water

as needed to determine which agent to apply in different fire situations.

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Job Analysis

Physical task and Work Condition example:

Equipment Operator

Physical Task: Stoop, crouch or crawl under equipment to dig mud out of dozer tracks and lay pipe in ditches.

Work condition: Works around high noise levels from equipment such as dozer and backhoe engines, chainsaws, and grinders.

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Recruiting

Internal recruiting or “promote-from-within.”

External recruiting is recruiting from outside the organization.

Realistic job previews give applicants all pertinent and realistic information.

Activities the organization engages in to develop a pool of qualified applicants.

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SelectionAssessing the skills, abilities, and other attributes of candidates for a job to determine if the candidate is qualified for the job and likely to be a good performer

Assessing the skills, abilities, and other attributes of candidates for a job to determine if the candidate is qualified for the job and likely to be a good performer

Attempt to predict job performance from characteristics which can be observed before hiring

The degree to which a selection measure is useful in predicting job performance is called validity.

Validity is measured by calculating the correlation between the selection measures and job performance measures.

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SelectionSome Measures used to assess Knowledge, Skills and Abilities

Background information such as application forms and biographical questionnaires

Paper-and-Pencil tests such as ability tests, job knowledge tests, personality tests, honesty and emotional intelligence tests

Performance tests (or work sample tests) such as assessment centers or work simulations

Interviews

Physical Ability Tests

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SelectionBackground Measures

Application Forms and Resumes collect information on education and work experience

Weighted Application Blanks and Biographical Questionnaires have moderate validity

•Example: length of time at current address found to be empirically related to turnover

•Need to review items for possible adverse impact

Job Knowledge Tests and Performance Tests

Moderate validity with job performance

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SelectionGeneral Ability Tests

Generally moderate to high validity

Tend to have adverse impact for some groups – need to show that they are job related.

Personality and Honesty Tests

Personality tests can have moderate validity if personality traits matched to job requirements

Honesty tests have moderate validity

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SelectionInterviews

Unstructured interviews tend to have low validity

Structured interviews generally can produce moderate validity

Interview questions are pre-determined based on job analysis information - questions to measure relevant knowledge, skills abilities and experience with duties.

Obtain consistent information from all applicants

May reduce rater errors – first impression, influenced by nonverbal behavior, stereotyping applicants

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Performance Appraisal

HRM professionals concentrate on two things: The accurate assessment of performance. Training managers to effectively use the

performance appraisal interview.

The steps of evaluating employees’ job performance and providing feedback to the employee to develop plans for their futures.

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Performance Appraisal

Objective appraisals Assesses performance based on facts (e.g., sales

figures).

Subjective appraisals Assessments based on a manager’s perceptions of

traits, behavior, or results.

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Performance AppraisalSome Performance Appraisal Measures Management by Objectives

• Supervisor and employees set goals and objectives for job• Performance is reviewed against progress toward goals

360-Degree Feedback• Ratings of performance from multiple sources – supervisor,

co-workers, subordinates, customers• Includes self-ratings

Rating Scales• Provide ratings along various dimensions – Quality of work

rated from unsatisfactory to outstanding

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Performance Appraisal

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Performance Appraisal

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Pay and BenefitsWage and salary systems

Most common approach is job-based pay – pay for specific duties Skill-based pay – employees with higher skills receive higher pay

Compensation equity Pay Level – salaries are competitive with other organizations; established

through salary surveys Pay Structure – salaries of jobs within organization are in hierarchy with

jobs requiring more responsibility and skill being paid more; established through job evaluation

Pay for performance Ties at least part of salary to performance – merit pay, bonuses,

commissions, profit-sharing, team incentives Gives employees incentives to align work behaviors with organizational

goals