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    Chapter

    12© 2007 Prentice Hall, Inc.

     All rights reserved.

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     The Importance of Human

    Resource Management(HRM)As a necessary part of the organizing function of

    management

    Selecting, training, and evaluating the or! forceAs an important strategic tool

    HRM helps esta"lish an organization#s sustaina"lecompetitive advantage$

    Adds value to the %rmHigh performance or! practices lead to "oth

    high individual and high organizationalperformance$

    © 2007 Prentice Hall, Inc. All rights reserved. 12–2

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    &'hi"it * &'amples of High+erformance -or! ractices

    Self+managed teams

    .ecentralized decision ma!ing

     Training programs to develop !noledge,s!ills, and a"ilities

    /le'i"le 0o" assignments1pen communication

    erformance+"ased compensation

    Sta2ng "ased on person*0o" and person*organization %t

    © 2007 Prentice Hall, Inc. All rights reserved. 12–3

    Source: Based on W. R. vans and W. !. !avis, "High#Per$or%ance Wor&

    '(ste%s and )rgani*ational Per$or%ance+ he -ediating Role o$ Internal

    'ocial 'trctre,/ Journal of Management, )ctoer 200, . 70.

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     The HRM rocess/unctions of the HRM rocess

    &nsuring that competent employees areidenti%ed and selected$

    roviding employees ith up+to+date !noledgeand s!ills to do their 0o"s$

    &nsuring that the organization retainscompetent and high+performing employees hoare capa"le of high performance$

    © 2007 Prentice Hall, Inc. All rights reserved. 12–4

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–

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    &nvironmental /actors

    A3ecting HRM&mployee 4a"or 5nions1rganizations that represent or!ers and see! to

    protect their interests through collective "argaining$

    6ollective "argaining agreement A contractual agreement "eteen a %rm and a union

    elected to represent a "argaining unit of employees of the%rm in "argaining for age, hours, and or!ingconditions$

    7overnmental 4as and Regulations4imit managerial discretion in hiring, promoting, and

    discharging employees$ A2rmative Action8 the re9uirement that organizations ta!e

    proactive steps to ensure the full participation of protectedgroups in its or!force$

    © 2007 Prentice Hall, Inc. All rights reserved. 12–

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    153153 6al Pa( Act6al Pa( Act

    154154 ivil Rights Act, itle 8II 9a%ended in 1572:ivil Rights Act, itle 8II 9a%ended in 1572:

    157157  Age !iscri%ination in %lo(%ent Act Age !iscri%ination in %lo(%ent Act

    15731573 8ocational Rehailitation Act8ocational Rehailitation Act

    15741574 Privac( ActPrivac( Act

    157;157; -andator( Retire%ent Act-andator( Retire%ent Act15;15; I%%igration Re$or% and ontrol ActI%%igration Re$or% and ontrol Act

    15;;15;; Wor&er Adith !isailities Act

    15511551 ivil Rights Act o$ 1551ivil Rights Act o$ 1551

    15531553 ?a%il( and -edical @eave Act o$ 1553?a%il( and -edical @eave Act o$ 1553

    155155 Health Insrance Portailit( and Accontailit( Act o$ 155Health Insrance Portailit( and Accontailit( Act o$ 155

    20032003 ?air and Accrate redit ransactions Act?air and Accrate redit ransactions Act

    20042004 ?airPa( )verti%e Initiative?airPa( )verti%e Initiative

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    +4a"or 6ode of the hilippines

    +1ccupational Safety and Health Standards

    © 2007 Prentice Hall, Inc. All rights reserved. 12–;

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    Managing HumanResourcesHuman Resource (HR) lanning

     The process "y hich managers ensure that theyhave the right num"er and !inds of people in the

    right places, and at the right times, ho are capa"leof e3ectively and e2ciently performing their tas!s$

    Helps avoid sudden talent shortages and surpluses$

    Steps in HR planning8

    Assessing current human resources Assessing future needs for human resources

    .eveloping a program to meet those future needs

    © 2007 Prentice Hall, Inc. All rights reserved. 12–5

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    6urrent AssessmentHuman Resource Inventory

    A revie of the current ma!e+up of the

    organization#s current resource status :o" Analysis

    An assessment that de%nes a 0o" and the "ehaviorsnecessary to perform the 0o"

    ;noledge, s!ills, and a"ilities (;SAs)

    Re9uires conducting intervies, engaging in directo"servation, and collecting the self+reports ofemployees and their managers$

    © 2007 Prentice Hall, Inc. All rights reserved. 12–10

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    6urrent Assessment(cont#d) :o" .escription

    A ritten statement of hat the 0o" holderdoes, ho it is done, and hy it is done$

     :o" Speci%cation

    A ritten statement of the minimum9uali%cations that a person must possess to

    perform a given 0o" successfully$

    © 2007 Prentice Hall, Inc. All rights reserved. 12–11

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    Supply of Employees Demand for Employees

    Factors Affecting Staffing

    Strategic Goals

    Forecast demand for products and services

    Availability of knowledge, skills, and abilities

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    Recruitment and.ecruitmentRecruitment

     The process of locating, identifying, andattracting capa"le applicants to an organization

    .ecruitment

     The process of reducing a surplus of employeesin the or!force of an organization

    &+recruitingRecruitment of employees through the Internet1rganizational e" sites

    1nline recruiters

    © 2007 Prentice Hall, Inc. All rights reserved. 12–13

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–14

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–1

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    SelectionSelection rocess

     The process of screening 0o" applicants to ensurethat the most appropriate candidates are hired$

    -hat is Selection<

    An e'ercise in predicting hich applicants, if hired,ill "e (or ill not "e) successful in performingell on the criteria the organization uses to

    evaluate performance$Selection errors8 Re0ect errors for potentially successful applicants

    Accept errors for ultimately poor performers

    © 2007 Prentice Hall, Inc. All rights reserved. 12–1

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–17

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    =alidity and Relia"ility=alidity (of rediction)

    A proven relationship "eteen the selectiondevice used and some relevant criterion forsuccessful performance in an organization$High tests scores e9uate to high 0o" performance>

    lo scores to poor performance$

    Relia"ility (of rediction)

     The degree of consistency ith hich aselection device measures the same thing$ Individual test scores o"tained ith a selection

    device are consistent over multiple testing instances$

    © 2007 Prentice Hall, Inc. All rights reserved. 12–1;

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–15

     Alication ?or%s Alication ?or%s Written estsWritten ests

    Per$or%ance 'i%lationsPer$or%ance 'i%lations

    Intervie>sIntervie>s

    Bac&grond InvestigationsBac&grond Investigations

    Ph(sical ea%inationsPh(sical ea%inations

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    -ritten Tests Types of Tests

    Intelligence8 ho smart are you<

    Aptitude8 can you learn to do it<

    Attitude8 ho do you feel a"out it<

    A"ility8 can you do it no<

    Interest8 do you ant to do it<

    4egal 6hallenges to Tests

    4ac! of 0o"+relatedness of test items or intervie9uestions to 0o" re9uirements

    .iscrimination in e9ual employment opportunityagainst mem"ers of protected classes

    © 2007 Prentice Hall, Inc. All rights reserved. 12–20

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    erformance Simulation Tests Testing an applicant#s a"ility to perform actual 0o" "ehaviors, use re9uired s!ills, anddemonstrate speci%c !noledge of the 0o"$

    -or! sampling

    Re9uiring applicants to actually perform a tas! or setof tas!s that are central to successful 0o"performance$

    Assessment centers

    .edicated facilities in hich 0o" candidates undergoa series of performance simulation tests to evaluatetheir managerial potential$

    © 2007 Prentice Hall, Inc. All rights reserved. 12–21

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    1ther SelectionApproachesIntervies

    Although used almost universally, managers needto approach intervies carefully$

    ?ac!ground Investigations

    =eri%cation of application data

    Reference chec!s8 4ac! validity "ecause self+selection of references ensures

    only positive outcomes$

    hysical &'aminations

    5seful for physical re9uirements and for insurancepurposes related to pre+e'isting conditions$

    © 2007 Prentice Hall, Inc. All rights reserved. 12–22

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–23

    1.1. Structure aStructure a fixed set of questionsfixed set of questions for all applicants.for all applicants.

    .. !ave!ave detailed informationdetailed information about the jobabout the job for w"ic" applicantsfor w"ic" applicants

    are interviewing.are interviewing.

    3.3. Minimize any prior knowledgeMinimize any prior knowledge of applicants# background,of applicants# background,

    e$perience, interests, test scores, or ot"er c"aracteristics.e$perience, interests, test scores, or ot"er c"aracteristics.

    4.4.  Ask behavioral questions Ask behavioral questions t"at re%uire applicants to givet"at re%uire applicants to give

    detailed accounts of actual &ob be"aviors.detailed accounts of actual &ob be"aviors.

    '.'. (se a(se a standardized evaluation formstandardized evaluation form..

    .. !ake notes!ake notes during t"e interview.during t"e interview.

    ".".  Avoid short interviews Avoid short interviews t"at encourage premature decisiont"at encourage premature decision

    making.making.

    #our$e% Based on !.A. !een*o and '.P. Roins, Human

    Resource Management, 7th ed. 9=e> Cor& Wile(+ 2002, . 200:

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–24

    )an#t Ask)an#t Ask

    *"at#s your birt" date+*"at#s your birt" date+

    or !ow old are you+or !ow old are you+

    *"at#s your marital*"at#s your marital

    status+ or Do you planstatus+ or Do you planto "ave a family+to "ave a family+

    *"at#s your native*"at#s your native

    language+language+

    !ave you ever been!ave you ever been

    arrested+arrested+

    )an Ask)an Ask

    Are you over 1+Are you over 1+

    *ould you relocate+*ould you relocate+

    Are you aut"ori-ed toAre you aut"ori-ed to

    work in t"e (nitedwork in t"e (nited

    States+States+

    !ave you ever been!ave you ever been

    convicted of fill in t"econvicted of fill in t"e

    blank/+0"e crime mustblank/+0"e crime must

    be reasonably related tobe reasonably related to

    t"e performance of t"et"e performance of t"e

     &ob. &ob.2 3ote4 5anagers s"ould be aware t"at t"ere are numerous

    ot"er 6can and can#t ask7 %uestions. 8e sure to always

    c"eck wit" your !9 department for specific guidance.

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–2

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    1ther SelectionApproaches (cont#d)Realistic :o" revie (R:)

     The process of relating to an applicant "oth thepositive and the negative aspects of the 0o"$ &ncourages mismatched applicants to ithdra$

    Aligns successful applicants# e'pectations ithactual 0o" conditions> reducing turnover$

    © 2007 Prentice Hall, Inc. All rights reserved. 12–2

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    1rientation Transitioning a ne employee into the

    organization$

    -or!+unit orientation

    /amiliarizes ne employee ith or!+unit goals

    6lari%es ho his or her 0o" contri"utes to unit goals

    Introduces he or she to his or her coor!ers

    1rganization orientation Informs ne employee a"out the organization#s

    o"0ectives, history, philosophy, procedures, and rules$

    Includes a tour of the entire facility

    © 2007 Prentice Hall, Inc. All rights reserved. 12–27

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–2;

    ypeype :ncludes:ncludesDeneralDeneral o%%nication s&ills, co%ter s(ste%s alicationo%%nication s&ills, co%ter s(ste%s alication

    and rogra%%ing, csto%er service, eectiveand rogra%%ing, csto%er service, eective

    develo%ent, %anage%ent s&ills and develo%ent,develo%ent, %anage%ent s&ills and develo%ent,

    ersonal gro>th, sales, servisor( s&ills, andersonal gro>th, sales, servisor( s&ills, and

    technological s&ills and &no>ledgetechnological s&ills and &no>ledge

    'eci$ic'eci$ic Basic li$eE>or& s&ills, creativit(, csto%er edcation,Basic li$eE>or& s&ills, creativit(, csto%er edcation,

    diversit(Ecltral a>areness, re%edial >riting, %anagingdiversit(Ecltral a>areness, re%edial >riting, %anaging

    change, leadershi, rodct &no>ledge, licchange, leadershi, rodct &no>ledge, lic

    sea&ingEresentation s&ills, sa$et(, ethics, sealsea&ingEresentation s&ills, sa$et(, ethics, seal

    harass%ent, tea% ilding, >ellness, and othersharass%ent, tea% ilding, >ellness, and others

    Source: Based on "200 Indstr( ReortF(es o$ raining,/ Training, !ece%er 200, . 22.

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–25

    raditionalraditionalraining 5et"odsraining 5et"ods

    ;nmanuals

    )lassroom lectures)lassroom lectures

    ec"nology

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    &mployee erformanceManagementerformance Management System

    A process of esta"lishing performancestandards and appraising employeeperformance in order to arrive at o"0ective HRdecisions and to provide documentation insupport of those decisions$

    © 2007 Prentice Hall, Inc. All rights reserved. 12–30

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–31

    5et"od5et"od AdvantageAdvantage DisadvantageDisadvantage

    *ritten*rittenessaysessays

    'i%le to se'i%le to se -ore a %easre o$ evalatorGs >riting-ore a %easre o$ evalatorGs >ritingailit( than o$ e%lo(eeGs actalailit( than o$ e%lo(eeGs actaler$or%anceer$or%ance

    )ritical)riticalincidentsincidents

    Rich ea%les ehaviorall(Rich ea%les ehaviorall(asedased

    i%e#cons%ing lac& 6anti$icationi%e#cons%ing lac& 6anti$ication

    Grap"icGrap"icrating scalesrating scales

    Provide 6antitative dataProvide 6antitative dataless ti%e#cons%ing thanless ti%e#cons%ing thanothersothers

    !o not rovide deth o$ ith large n%er o$n>ield( >ith large n%er o$

    e%lo(ees legal concernse%lo(ees legal concerns

    58;58; ?ocses on end goals?ocses on end goalsreslts orientedreslts oriented

    i%e#cons%ingi%e#cons%ing

    @B

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    6ompensation and?ene%ts?ene%ts of a /air, &3ective, and Appropriate

    6ompensation System

    Helps attract and retain high+performance employees

    Impacts on the strategic performance of the %rm

     Types of 6ompensation

    ?ase age or salary

    -age and salary add+onsIncentive payments

    S!ill+"ased pay

    =aria"le pay

    © 2007 Prentice Hall, Inc. All rights reserved. 12–32

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–33

    Sources4 Based on R.I. Henderson, o%ensation -anage%ent, th ed. 9er 'addle River, =J+ Prentice Hall,

    1554:, . 3–24 and A. -rra(, "-o%, Ale Pie, and '%all Bsiness,/ Wall 'treet Jornal, Agst 1, 1554, . A1

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    6areer .evelopment6areer .e%ned The se9uence of positions held "y a person during his

    or her lifetime$

     The -ay It -as 6areer .evelopment

    rovided for information, assessment, and trainingHelped attract and retain highly talented people

    @o

    Individualsnot the organizationare responsi"le fordesigning, guiding, and developing their on careers$

    ?oundaryless 6areer A career in hich individuals, not organizations, de%ne

    career progression and organizational loyalty

    © 2007 Prentice Hall, Inc. All rights reserved. 12–34

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    &'hi"it *B -hat 6ollege 7raduates -ant /rom :o"s

     Top /actors for 5$S$Students

    -or!*life "alance

    Annual "ase salary

     :o" sta"ility and security

    Recognition for a 0o"done ell

    Increasingly challengingtas!s

    Rotational programs

     Top /actors for 5$;$Students International career

    opportunities

    /le'i"le or!ing hours

    =ariety of assignmentsaid overtime

    © 2007 Prentice Hall, Inc. All rights reserved. 12–3

    Sources: Based on '. 'hellenarger, "Avoiding the =et nron+ oda(Gs ro o$ 'oon#to#Be Drads 'ee&s Jo 'ecrit(,/

    Wall Street Journal Online, ?erar( 1, 200 "-BAs (e ?inancial 'ervices and -anage%ent onslting,/

    HRMarketer.com, Jne 7, 200 and J. Boone, "'tdents 'et ighter er%s $or Wor&,/ FinancialTimes.com, -a( 21, 200.

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    © 2007 Prentice Hall, Inc. All rights reserved. 12–3

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    6urrent Issues in HRMManaging .onsizing

     The planned elimination of 0o"s in anorganization rovide open and honest communication$

    rovide assistance to employees "eing donsized$

    Reassure and counseling to surviving employees$

    Managing -or! /orce .iversity

    -iden the recruitment net for diversity

    &nsure selection ithout discrimination

    rovide orientation and training that is e3ective

    © 2007 Prentice Hall, Inc. All rights reserved. 12–37

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    6urrent Issues in HRM

    (cont#d)Se'ual HarassmentAn unanted activity of a se'ual nature that a3ects

    an individual#s employment$

    5nanted se'ual advances, re9uests for se'ual favors,and other ver"al or physical conduct of a se'ual naturehen su"mission or re0ection of this conduct e'plicitly orimplicitly a3ects an individual#s employment$

    An o3ensive or hostile environment An environment in hich a person is a3ected "y

    elements of a se'ual nature$

    -or!place Romances

    otential lia"ility for harassment

    © 2007 Prentice Hall, Inc. All rights reserved. 12–3;

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    6urrent Issues in HRM

    (cont#d)-or!+4ife ?alance&mployees have personal lives that they don#t

    leave "ehind hen they come to or!$

    1rganizations have "ecome more attuned to theiremployees "y o3ering family-friendly benets81n+site child care

    Summer day camps

    /le'time :o" sharing

    4eave for personal matters

    /le'i"le 0o" hours

    © 2007 Prentice Hall, Inc. All rights reserved. 12–35

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    6urrent Issues in HRM

    (cont#d)6ontrolling HR 6osts&mployee health+care &ncouraging healthy lifestyles

    /inancial incentives

    -ellness programs

    6harging employees ith poor health ha"its more for"ene%ts

    &mployee pension plans Reducing pension "ene%ts

    @o longer providing pension plans

    © 2007 Prentice Hall, Inc. All rights reserved. 12–40

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     Terms to ;no

    high+performance or!

    practiceshuman resource

    management process

    la"or union

    a2rmative actionhuman resource

    planning

     0o" analysis

     0o" description 0o" speci%cation

    recruitment

    decruitment

    selection

    validityrelia"ility

    or! sampling

    assessment centers

    realistic 0o" previe(R:)

    orientation

    performance

    management systemritten essay

    critical incidents

    graphic rating scales

    © 2007 Prentice Hall, Inc. All rights reserved. 12–41

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     Terms to ;no (cont#d)

    "ehaviorally anchored

    rating scales (?ARS)multiperson

    comparisons

    CDE degree feed"ac!

    s!ill+"ased pay

    varia"le pay

    career

    donsizing

    se'ual harassment

    family+friendly"ene%ts