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Managing Human Managing Human ResourcesResourcesChapter Chapter 1313
1. Explain the strategic importance of managing human resources effectively
2. Describe several important laws and government regulations that affect how organizations manage their human resources
3. Explain the objective of human resources planning and describe how organizations respond to the unpredictability of future business needs
1. Explain the strategic importance of managing human resources effectively
2. Describe several important laws and government regulations that affect how organizations manage their human resources
3. Explain the objective of human resources planning and describe how organizations respond to the unpredictability of future business needs
(continued)
4. Describe the hiring process
5. Describe several types of training and development programs
6. Describe several principles for improving the accuracy of managers’ appraisals of employee performance
7. Describe the basic elements of a monetary compensation package
4. Describe the hiring process
5. Describe several types of training and development programs
6. Describe several principles for improving the accuracy of managers’ appraisals of employee performance
7. Describe the basic elements of a monetary compensation package
Strategic Importance
Human resources management (HRM): the philosophies, policies, and practices that an organization uses to affect the behaviors of people who work for the organization
Human resources management (HRM): the philosophies, policies, and practices that an organization uses to affect the behaviors of people who work for the organization
Strategic use of HRM activities can improve organizational effectiveness
Strategic use of HRM activities can improve organizational effectiveness
Include HRprofessionals inthe formulationand implementation of business strategy and discussions of its HR implications
Stay informed ofthe latest technical principles for managing human resources
Accept responsibility for managing their own behavior and careers in organizations
Line ManagersLine Managers HR ProfessionalsHR Professionals EmployeesEmployees
Help disseminate information about open positions to all potentially qualified internal applicants
Understand and abide by all legal regulations
Develop a recruiting plan to guarantee a diverse pool of applicants
Participate in recruiting by making referrals and answering questions about the organization
Line ManagersLine Managers HR ProfessionalsHR Professionals EmployeesEmployees
Work with employees to identify their training and development needs
Provide on-the-job socialization and training
Develop and administer training and development programs
Inform employees of opportunities for training and development
Identify own training and development needs
Actively seek out and participate inactivities that help build own competencies
Assist in socialization and training of other employees
Line ManagersLine Managers HR ProfessionalsHR Professionals EmployeesEmployees
Help develop performance measures
Conduct performance appraisals
Develop performance appraisal tools and train managers to use them
Train managers in how to conduct performance review sessions
Candidly appraise the performance of others when askedto participate in 360-degree appraisals
Line ManagersLine Managers HR ProfessionalsHR Professionals EmployeesEmployees
Use performance information to make decisions about pay raises, promotions, firing etc
Provide feedback to employees to help them improve future performance
Monitor managers’ decisions to be sure they are performance-based
Seek and use honest feedback to improve own performance
Line ManagersLine Managers HR ProfessionalsHR Professionals EmployeesEmployees
(cont’d)
Assist in developing incentive and bonus plans
Establish appropriate rates of base pay in compliance with legal requirements
Work with managers to design and develop incentives and bonus plans
Work with accounting and financial staff to monitor compensation costs
Develop an accurate understanding of all elements of the organization’s pay practices
Be alert to dysfunctional and possible unethical attempts to “game” performance-based pay practices
Line ManagersLine Managers HR ProfessionalsHR Professionals EmployeesEmployees
Competitors must not be able to easily copy the company’s approach to HRM
Employees must be “rare” or unique in some way
Employees mustbe a source ofadded value
Recruiting more managers from outside the company
Hiring more employees from the countries where GE sells its products and services
Setting goals for managers to develop creative new business ideas and tying compensation to meeting these goals
Rewarding managers for revenue growth and customer satisfaction
Urging people to stay in their jobs longer so they can develop deeper knowledge of their industry
Social Consequences of HRM: Snapshot
“Our aim is to treat our jobcandidates as well as we treat our customers,
to do something memorable for them. You can’t treat people shabbily, especially in a world where
there are far more open jobs than there is available talent to fill them. We strive to put the humanity
back into the recruiting experience.”
Jason S. Warner, Director of North American Recruiting, Starbucks Corporation
Legal and Regulatory Environment:Equal Employment Opportunity [EEO]
Legal and Regulatory Environment:Equal Employment Opportunity [EEO]
Job applicants and employees should be: Job applicants and employees should be:
1. Judged on characteristics that are related to the work that they are being hired to do
1. Judged on characteristics that are related to the work that they are being hired to do
2. Judged on their job performance after being hired
2. Judged on their job performance after being hired
3. Protected from discrimination based on their personal background characteristics, such as gender, race, ethnicity, religion, and so forth
3. Protected from discrimination based on their personal background characteristics, such as gender, race, ethnicity, religion, and so forth
Prohibits discrimination by employers, employment agencies, and unions with 15 or more employees on the basis of:
RaceColorReligionSexNational originPregnancy (Pregnancy Discrimination Act, 1978)
Identifies pregnancy as a disability and entitles the woman to the same benefits as any other disability
1991 Amendment clarifies how cases brought under the act should proceed
Makes rules to implement and interpret EEO laws
Conducts investigations and may file lawsuits in
federal courts
Imposessanctions
Makes judgments about
guilt, which may be appealed to federal
courts
Equal EmploymentOpportunity
Commission (EEOC)
EEO in the Global Arena: Who’sProtected Where by Legislation?
Country
United States
India
Canada
China
United Kingdom
Mexico
Race or Color
Sex
Religion
Age
No
No
No
(continued)
EEO in the Global Arena: Who’sProtected Where by Legislation?
Country
United States
India
Canada
China
United Kingdom
Mexico
Disability
No
Sexual Orientation
No
No
No
PoliticalIdeology
No
No
No
No
NationalOrigin
No
Marital orFamily Status
No
No
No
Establishes a minimum wage, which may be raised by individual states
Controls hours through premium pay for overtime Controls working hours for children Applies to most nonmanagerial employees in private
industry
Establishes a minimum wage, which may be raised by individual states
Controls hours through premium pay for overtime Controls working hours for children Applies to most nonmanagerial employees in private
industry
Requires men and women to be paid equally when they are doing equal work (in terms of skill, effort, responsibility, and working conditions) in the same organization
Requires men and women to be paid equally when they are doing equal work (in terms of skill, effort, responsibility, and working conditions) in the same organization
Equal Pay Act (1963)
Fair Labor Standards Act (1938)
Some states extend the Equal Pay Act by requiring employers to assess the worth of all jobs and ensure that jobs of comparable worth are paid similarly
Involves forecasting the organization’s human resources needs and developing the steps to be taken to meet them
Contingent workers: employees who are hired by companies for specific tasks or short periods of time with the understanding that their employment may be ended atany time
Layoffs: a strategy of last resort. Potential negative effects of layoffs:
More gossipLower moraleMore resignationsLess employee loyaltyMore charges of discriminationMore workplace violence
Historical Trend in Historical Trend in Growth Rate of the U.S. Growth Rate of the U.S. Workforce Workforce (adapted from Figure 13.1)(adapted from Figure 13.1)
-60 -40 -20 0 20 40 60
PercentPercent reporting an increase or decrease after layoffs
Effects of Layoffs as Reported by Human Effects of Layoffs as Reported by Human Resource Managers in Companies That Reduce Resource Managers in Companies That Reduce Their WorkforceTheir Workforce (adapted from Figure 13.2)(adapted from Figure 13.2)
More gossip
More charges of discrimination
Less employee loyalty
More workplace violence
More resignations
Lower morale
More profits
Human Resource Planning (cont’d)Human Resource Planning (cont’d)
Competency inventory: a detailed file maintained for each employee that lists level of education, training, experience, length of service, current job title and salary, and performance history
Competency inventory: a detailed file maintained for each employee that lists level of education, training, experience, length of service, current job title and salary, and performance history
Purpose of competency modelsPurpose of competency models
To keep track of the talent in the organization so that it can be nurtured and used effectively
To keep track of the talent in the organization so that it can be nurtured and used effectively
Hiring Process
Activities related to the recruitment of applicants to fill open positions in an organization and the selection of the best applicants for a position
Vacancies stimulate the hiring process through:*
Vacancies Stimulate the Hiring Process
(adapted from Figure 13.3)
RecruitmentRecruitmentVacancyCreatedVacancyCreated SelectionSelection
OrganizationalGrowth
InternalMovement•Promotion•Demotion•Transfer
Exit fromOrganization(Turnover)
0
Percent reporting problemsPercent
10 20 30 40 50 60
Problems Encountered When Applying for Jobs on the Internet(adapted from Figure 13.4)
Difficult to navigate site
Difficult to use
Wanted more personal contact
Concerns about security of personal data
Lack of relevant information about the company
Not enough jobs listed to make it worth the effort
Slow feedback and follow-up
Organization web site
Internal job positions, paper-based and
Intranet
Announcementsin newspapers,magazines, employment websites, etc.
Employee referrals
Commonrecruitment
methods
Tests Interviews
Résumés Reference checks
Commoninformation
sources
A process that involves deciding which of these recruits should actually be hired and for which positions
Competency Being Assessed: Teamwork Competency Being Assessed: Teamwork
1. Sketch out two or three key strengths you have in working as part of a work team. Can you illustrate the first strength with a recent example? [repeat this question and the following probes for each strength]:
Probes: When did this example take place? What possible negative outcomes were avoided
by the way you handled the situation? How often do situations like this happen? What happened in the next time it came up?
(continued)
Competency Being Assessed: Teamwork Competency Being Assessed: Teamwork
2. Tell me about a time when you used your teamwork competency to solve a problem with a customer
Probes:
Where did this take place? What did the customer say? What did you tell your teammates? Did the team have any problems dealing with
the situations? Explain How did the customer respond?
(cont’d)
E-learning Team training
Orientation training
Basic skills training
Commontraining
approaches
Training: activities that help employees overcome limitations and improve performance in their current jobs
Coredevelopmentapproaches
Career development
Coaching Mentoring
Development: practices that help employees gain the competencies they will need in the future in order to advance in their careers
A formal, structured system for evaluating an employee’s job performance
A formal, structured system for evaluating an employee’s job performance
Common uses of performance appraisal Common uses of performance appraisal
To make decisions about who will be promoted, demoted, transferred, or dismissed
To make decisions about pay raises
To improve future performance of employees
Managers and their subordinates meet to exchange performance information and discuss how to improve future performance
Managers and their subordinates meet to exchange performance information and discuss how to improve future performance
Performance information increasingly includes:
Performance information increasingly includes:
Employee’s own assessment of performance
Assessment by teammates
Information from customers
Difficult for managers to accurately assess performance of subordinates
Two approaches to improve accuracy:
Use appropriate rating scales that provide specific descriptions of what each level of performance means
Use multiple ratersOne example. 360-degree appraisal—measures
performance by obtaining assessments of the employee from a variety of sources: supervisors, subordinates, colleagues inside the company, people outside the organization with whom the employee does business, and even a self-appraisal by the employee
Some teams may have full responsibility for constructing and conducting their own performance appraisals of each other
Team self-appraisal of each member is difficult
Manager to whom the team reports is often responsible for collecting performance information from the team and discussing it with each team member privately
Nonmonetary compensation: the many forms of social and psychological rewards, such as recognition and respect from others and opportunities for self-development
Monetary compensation: the direct payments such as salary, wages, and bonuses, as well as benefits such as covering the costs of insurance plans
bonus
What people believe they deserve to be paid in relation to what others deserve to be paid
However, compensation must be externally competitive to attract qualified applicants
Components of pay system employees consider in evaluating fairness
Base pay—perceived fairness increases if at or above market average
Incentive pay—such as commissions, bonuses, and profit sharing
Employee benefits—some required by law and others are voluntary
Base pay—perceived fairness increases if at or above market average
Incentive pay—such as commissions, bonuses, and profit sharing
Employee benefits—some required by law and others are voluntary
Average Annual Monetary Benefits and Earnings(adapted from Figure 13.6)
714.5
9
268
Legally Required Benefits
Voluntary Payments for Private Pensions, Insurance, etc.
Paid Vacations, Breaks, and Rest Periods
Other
Pay for Actual Time Worked (w ages and salaries)
Vacationing Around the World(adapted from Figure 13.7)
Italy
France
Germany
Brazil
Britain
Canada
South Korea
Japan
U.S.
Average annual vacation daysDays
0 5 10 15 20 25 30 35 40 45
