Human Resource ManagementHuman Resource Management
Chapter 6Chapter 6
Human Resource ManagementHuman Resource Management
Human Resource Management includes all activities used to attract and retain employees and to ensure they perform at a high level in meeting organizational goals.
These activities are made up of: 1. Recruitment and selection.2. Training and development.3. Performance evaluation and feedback.4. Pay and benefits.5. Labor relations.
Components of a HRM SystemComponents of a HRM System
RecruitmentRecruitment& Selection& Selection
RecruitmentRecruitment& Selection& Selection
work work RelationsRelations
work work RelationsRelations
Pay &Pay &RewardsRewards
Pay &Pay &RewardsRewards
PerformancePerformanceevaluation &evaluation &
FeedbackFeedback
PerformancePerformanceevaluation &evaluation &
FeedbackFeedback
Training &Training &DevelopmentDevelopment
Training &Training &DevelopmentDevelopment
HRM Functions HRM Functions HRM Functions should be consistent with the others,
organization structure, and strategy. Main functions are: 1. Recruitment and Selection : Used to attract and hire new employees who have the
abilities, skills, and experiences that will help an organization achieve its goals.
2. Training & Development: – Ensures that organizational members develop the skills
and abilities that will enable them to perform their jobs effectively in the present and the future
– Changes in technology and the environment require that organizational members learn new techniques and ways of working
3. Performance Appraisal and feedback: – Provides managers with the information they need to make
good human resources decisions about how to train, motivate, and reward organizational members
– Feedback from performance appraisal serves a developmental purpose for members of an organization
4. Pay and Benefits: high performing employees should be rewarded with
salaries raises, bonuses. – Increased pay provides additional motivation. – Benefits, such as health insurance, reward membership in
firm.
HRM Functions HRM Functions
HRM ComponentsHRM Components
5. Labor relations: Managers need an effective relationship with work
unions that represent workers.
– Unions help establish pay, and working conditions.
If management moves to a decentralized structure,
HRM should be adjusted as well.
HRM Functions HRM Functions
1.1 Recruitment1.1 Recruitment1. External recruiting: managers look outside the firm for
people who have not worked at the firm before. Managers advertise in newspapers, hold open houses,
recruit at universities, and on the Internet.– External recruitment is difficult since many new jobs
have specific skill needs.2. Internal Recruiting: positions filled within the firm.
Internal recruiting has several benefits:–Workers know the firm’s culture, may not have new
ideas.–Managers likely already know the candidates.– Internal advancement can motivate employees.
1.2. Selection Process1.2. Selection Process
After a pool of applicants are identified, qualifications related to the job requirements are determined:
1. Background Information: includes education, prior employment, college major, etc.
2. Interview: almost all firms use one of two types:– Structured interview: managers ask each person
the same job-related questions.– Unstructured interview: held like a normal
conversation. 3. Physical Ability Test: measure strength & endurance.– Good for physically demanding jobs.
4. Paper & Pencil Tests: Either an ability and personality test.– Ability test: assess if applicant has right skills for the
job.– Personality test: seek traits relevant to job
performance.– Be sure test is a good predictor of job performance.
5. Performance Tests: measure job performance.– Typing speed test is one example.– Assessment Center: candidates assessed on job-
related activities over a period of a few days.6. References: outside people provide honest information
about candidate. – Can be hard to get accurate information.
1.2. Selection Process1.2. Selection Process
Selection ToolsSelection Tools
BackgroundInformation
BackgroundInformation
InterviewsInterviews ReferencesReferences
Paper testsPaper tests
PhysicalAbility tests
PhysicalAbility tests
Performance testsPerformance tests
SelectionSelectionSelectionSelection
2. Training & Development2. Training & Development
Training: Teach organizational members how to perform current jobs.– Help worker’s acquire skills to perform effectively.
Development: build worker’s skills to enable them to take on new duties.– Training used more often at lower levels of firm,
development is common with managers.– An Assessment should be taken first to determine who
needs which program and what topics should be stressed.
Types of TrainingTypes of Training
TrainingTrainingTrainingTraining DevelopmentDevelopmentDevelopmentDevelopment
Apprentice-Apprentice-shipsships
Apprentice-Apprentice-shipsships
On-the-jobOn-the-jobTrainingTraining
On-the-jobOn-the-jobTrainingTraining
ClassroomClassroomInstructionInstruction
ClassroomClassroomInstructionInstruction
On-the-jobOn-the-jobTrainingTraining
On-the-jobOn-the-jobTrainingTraining
ClassroomClassroomInstructionInstruction
ClassroomClassroomInstructionInstruction
FormalFormalEducationEducation
FormalFormalEducationEducation
VariedVariedworkwork
experiencesexperiences
VariedVariedworkwork
experiencesexperiences
Needs Needs AssessmentAssessment
Needs Needs AssessmentAssessment
Types of TrainingTypes of Training
1. Classroom Instruction: workers acquire skills in classroom. Includes use of videos, role-playing,.
2. On-the-Job Training: learning occurs in the work setting as worker does the job.
– Training given by co-workers and can be done continuously.
3. Apprenticeships: worker engages with a leading worker to learn a skill.
3. Performance Appraisal and Feedback
• Performance Appraisal: – The evaluation of employees’ job performance and
contributions to their organization.
• Performance Feedback: – The process through which managers share
performance appraisal information, give subordinates an opportunity to reflect on their own performance, and develop with subordinates, plans for the future.
3.1 Types of Performance Appraisal
1. Trait Appraisals: – Assessing subordinates on personal characteristics
that are relevant to job performance.– Disadvantages of trait appraisals:• Employees with a particular trait may choose not to use
that particular trait on the job.• Traits and performance are not always obviously linked• It is difficult to give feedback on traits.
3.1. Types of Performance Appraisal
2. Behavior Appraisals: Assesses how a worker does the job.– Focuses on what a worker does and provides good
feedback options.
3. Results appraisals: Assessments based on what a worker achieves.– Sales reps are usually evaluated on what they sell.
4. Objective appraisals:– Assesses performance based on facts (e.g., sales
figures).
Who Appraises Performance?Who Appraises Performance?
SupervisorsSupervisorsSupervisorsSupervisors
PeersPeersPeersPeers Customers &Customers &ClientsClients
Customers &Customers &ClientsClients
SubordinatesSubordinatesSubordinatesSubordinatesSelfSelfSelfSelf
Sources of Sources of performanceperformance
appraisalsappraisals
Sources of Sources of performanceperformance
appraisalsappraisals
3.2 Effective Feedback Guidelines3.2 Effective Feedback Guidelines
1. Be specific and focus on correct behavior. Provide a suggested improvement.
2. Focus on problem-solving and improvement, not criticism.
3. Express confidence in worker’s ability to improve.4. Use formal and informal feedback.5. Treat subordinates with respect and praise
achievements.6. Set a timetable for agreed changes.
4. Pay and Benefits
• Pay: – Includes employees’ base salaries, pay raises, and
bonuses– Determined by characteristics of the organization
and the job and levels of performance– Benefits are based on membership in an
organization
4. Pay and Benefits
• Pay level:
– The relative position of an organization’s incentives in
comparison with those of other firms in the same
industry employing similar kinds of workers
• Managers can decide to offer low, average or high
relative salaries.
• High salaries attract and retain high performers but raise
costs; low salaries can cause turnover and lack of
motivation but provide lower costs.
5. Labor Relations5. Labor Relations
Labor Relations: – Considers all activities managers perform to ensure
there is a good relationship with labor unions.
Unions: Represent worker’s interests to management in
organizations. The power that a manager has over an individual
worker causes workers to join together in unions to try to prevent this.
