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12-1
Human Resource Management
Chapter 12
12-2
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.
12-3
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
12-4
Components of an HRM System
12-5
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.
12-6
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.
12-7
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.
12-8
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)
12-9
Recruitment and Selection
12-10
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.
12-11
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.
12-12
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.
12-13
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)
12-14
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.
12-16
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.
12-17
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.
12-18
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
12-19
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
12-20
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
12-21
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
12-22
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.
12-23
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.
12-24
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
12-25
Performance Appraisal
12-26
Performance Appraisal
12-27
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