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Human Resource Management Chapter 6

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Page 1: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

Human Resource ManagementHuman Resource Management

Chapter 6Chapter 6

Page 2: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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.

Page 3: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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

Page 4: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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

Page 5: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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

Page 6: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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

Page 7: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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.

Page 8: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain 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.

Page 9: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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

Page 10: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

Selection ToolsSelection Tools

BackgroundInformation

BackgroundInformation

InterviewsInterviews ReferencesReferences

Paper testsPaper tests

PhysicalAbility tests

PhysicalAbility tests

Performance testsPerformance tests

SelectionSelectionSelectionSelection

Page 11: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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.

Page 12: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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

Page 13: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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.

Page 14: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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.

Page 15: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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.

Page 16: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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).

Page 17: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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

Page 18: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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.

Page 19: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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

Page 20: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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.

Page 21: Human Resource Management Chapter 6. Human Resource Management  Human Resource Management includes all activities used to attract and retain employees

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.