Chapter 12

Chapter 12
Human Resource
Management
Strategic Human Resource
Management
Human Resource Management (HRM)
–Activities that managers engage in to attract
and retain employees and to ensure that
they perform at a high
level and contribute
to the accomplishment
of organizational goals.
MGMT 321 – Chapter 12

Strategic Human Resource
Management
 Designing the components of a HRM system
to be consistent with:
– Each other
– Other elements of organizational architecture
– The organization’s strategy and goals
 “Six Sigma”
– Ensure that products and services are as free of
errors or defects as possible through a variety of
human resource-related initiatives

Components of a Human Resource
Management System

The Legal Environment of HRM
 Equal Employment Opportunity (EEO)
– The equal right of all citizens to the
opportunity to obtain employment
regardless of their gender, age, race,
country of origin, religion, or disabilities.
– Equal Employment Opportunity
Commission (EEOC) enforces employment
laws.

The Legal Environment of HRM
 Contemporary challenges for managers
– How to eliminate sexual harassment
– How to make accommodations for
employees with disabilities
– How to deal with employees who have
substance abuse problems
– How to manage HIV-positive employees
and employees with AIDs

The Recruitment and Selection
System

Human Resource Planning
 Human Resource Planning (HRP)
– Forecasting current and future human
resourced needs.
 Demand forecasts
 Supply forecasts
 Outsourcing
– Loss of control over output
– Unions are against outsourcing
Job Analysis
 Job Analysis
– Identifying the TDRs that make up a job
and the KSAs needed to perform the job.
– Should be done for each job
 Methods
– Observing what current workers do.
– Having workers and manages fill out
questionnaires

Recruitment
 External Recruiting
– Looking outside the organization to fill open
positions
 Internal Recruiting
– Managers turn to existing employees to fill
open positions
 Realistic Job Preview
– Providing an honest assessment of the
advantages and disadvantages of a job
Selection Tools

Reliability and Validity
 Selection tools must be BOTH reliable
and valid
 Reliability
– The degree to which the tool measures the
same thing each time it is used
 Validity
– The degree to which the test measures
what it is supposed to measure

Training and Development
 Training
– Teaching organizational members how to
perform their current jobs
– Helping them to acquire the knowledge and
skills they need to be effective performers
 Development
– Building the KSAs of organizational members
to enable them to take on new responsibilities

Training and Development

Performance Appraisal and
Feedback
 Performance Appraisal
– Evaluating employees’ job performance
and contributions to the organization
 Performance Feedback
– Sharing performance appraisal information
with subordinates and planning for the
future

Types of Performance Appraisal
 Trait
– Personal characteristics that are relevant to
job performance
 Behavior
– The actual actions and behaviors exhibited on
the job.
 Results appraisals
– Actual outcomes of work behaviors
 Objective and Subjective appraisals
Who Appraises Performance?

Effective Feedback Tips
 Be specific
 Focus on correctable behaviors or outcomes
 Utilize a problem solving approach
 Express confidence in a subordinate’s ability
to improve.
 Provide feedback both formally and informally
 Praise instances of high performance
 Avoid personal criticisms
 Agree to a timetable for improvements

Pay
 Includes employees’ base salaries, pay
raises, and bonuses
 Determined by:
– Characteristics of the organization and the
job
– Levels of performance
 Pay level
– The relative position of an organization’s
incentives compared to similar firms
Pay
 Pay Structure CEO
– The arrangement
of jobs into VP VP VP
categories based
on their relative Director Director
importance to the
organization and its Dept Manager
goals, level of
skills, and other
characteristics.

Benefits
 Legally required
– Social security
– Workers’ compensation
 Voluntary
– Health insurance
– Retirement
 Cafeteria-style benefits plans
– Allow employees to choose the best mix
– Can be hard to manage
Labor Relations
 Ensuring effective working relationships with
the labor unions that represent their
employees
 Laws regulating areas of employment
– Fair Labor Standards Act (1938) prohibits child
labor, sets a minimum wage and maximum
working hours.
– Equal Pay Act (1963)
– Work Place Safety (1970) OSHA mandates
procedures for safe working conditions
Unions
 Represent workers’ interests to management
 The power that management has over
individuals creates the need for unions
 Collective bargaining
– Negotiation between labor and management to
resolve conflicts and disputes regarding:
• Working hours and conditions
• Wages and benefits
• Job security

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Chapter 12

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Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

MGMT 321 – Chapter 12

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