Ch. 10 Outline HR Management

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Ch. 10 OutlineHR Management

1. Strategic HR Management
2. Staffing
3. Workforce Development
4. Performance Appraisals
5. Designing Reward Systems
6. Labor Relations

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Strategic Human Resources Management

• Human Resource Management deals with formal
  systems for managing people at work
• Strategic Human Resources Management
• Creates Value
• Is Rare people are a source of competitive
  advantage when their skills, knowledge, and
  abilities are not equally available to all
  competitors
• Is difficult to imitate
• Is organized

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The HR Planning Process

• Meeting an organizations staffing needs requires
  strategic human resources planning
• An activity with a strategic purpose derived from
  the organizations plans
• The HR planning process occurs in three stages
• Planning
• Programming
• Evaluating

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The HR Planning Process

• Demand Forecasts Determining how many and what
  type of people are needed to achieve
  organizational goals is perhaps the most
  difficult part of HR planning
• Labor Supply Forecasts estimate how many and what
  types of employees the organization will actually
  have

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Staffing the Organization

• Once the planning phase has been completed
  managers will focus on staffing the organization
• Staffing consists of three activities
• Recruitment
• Selection
• Outplacement

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Recruitment

• Recruitment activities help increase the pool of
  candidates that might be selected for a job
• Internal Recruiting
• External Recruiting

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Selection

• Selection builds on the recruiting process and
  involves decisions about whom to hire
• There are a number of selection instruments to
  chose from
• Regardless of the method used to select employees
  managers must ensure that the process is reliable
  and valid
• Reliability refers to the consistency of test
  scores every time and across alternative
  measurements
• Validity refers to the degree to which a test
  actually predicts or correlates with job
  performance

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Selection Methods

1. Applications and resumes provide basic
   information to prospective employers. Typically
   include information about the applicants name,
   educational background, citizenship, work
   experience, certifications, and the like.
2. Interviews are the most popular selection tool.
   Structured interviews conduct the same interview
   with each applicant.
3. a.      Situational interview focuses on
   hypothetical situations.
4. b.      Behavioral description interview explores
   what candidates have actually done in the past.

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Selection Methods

• 3 Reference checks are another commonly used
  screening device.
• 4 Personality tests are less popular for employee
  selection, largely because they are hard to
  defend in court.
• 5 Drug testing is done by 80 of U.S. Firms
  Genetic testing is among the most controversial
  screening instruments.
• 6 Genetic testing (for diseases) is among the
  most controversial screening instruments.

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Selection Methods

• 7. Cognitive ability tests measure a range of
  intellectual abilities, including verbal
  comprehension and numerical aptitude. (See
  Figure 10.3)
• 8.  Performance tests are procedures in which
  the test taker performs a sample of the job.
• 9. Integrity tests are used to assess job
  candidates honesty. Two forms are polygraphs
  and paper-and-pencil honesty tests.

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Workforce Reductions Layoffs

• Layoffs have occurred in organizations because of
  mergers and acquisitions, divestiture, and
  increased competition
• When laying off employees some firms have tried
  to help people find employment elsewhere through
  outplacement programs

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Workforce Reductions Termination

• People sometimes get fired for poor performance
  or other reasons
• Employment-at-will is the legal concept that an
  employee may be terminated for any reason
• To avoid pitfalls associated with dismissal
  employers should develop a progressive and
  positive disciplinary procedure
• A termination interview is a discussion between a
  manager and an employee about the employees
  dismissal

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Termination Advice

• Do
• Give as much warning as possible for mass layoffs
• Sit down one on one with the individual, in a
  private office
• Complete a termination session within 15 minutes
• Provide written explanations of severance
  benefits
• Provide outplacement services away from company
  headquarters
• Be sure the employee hears about his or her
  termination from a manager, not a colleague
• Express appreciation for what the employee has
  contributed, if appropriate

• Dont
• Dont leave room for confusion when firing Tell
  the individual in the first sentence that he or
  she is terminated
• Dont allow time for debate during a termination
  session
• Dont make personal comments when firing someone
  keep the conversation professional.
• Dont rush a fired employee offsite unless
  security is an issue
• Dont fire people on significant dates, like the
  25th anniversary of their employment or the day
  their mother died
• Dont fire employees when they are on vacation or
  have just returned

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Training and Development

• Training usually refers to teaching lower-level
  employees how to perform their present jobs
• Development involves teaching managers and
  professional employees broader skills needed for
  their present and future jobs
• Training is generally a four step process
• Assess the need
• Design the training program based upon the need
• Decide which training method should be used
• Evaluate the training programs effectiveness

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Types of Training

• Orientation training is designed to introduce new
  employees to the company and familiarize them
  with policies, procedures, culture, and the like
• Team training provides employees with the skills
  and perspectives they need to work in
  collaboration with others
• Diversity training focuses on identifying and
  reducing hidden biases against people with
  differences and developing the skills needed to
  manage a diversified workforce

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Designing Reward Systems

• Traditionally pay has been the primary monetary
  reward considered (regardless of its efficacy)
• In recent years benefits have received increased
  attention
• Benefits currently make up a far greater
  percentage of the total payroll than they did in
  the past
• The typical employer today pays nearly 40 of
  payroll costs in benefits

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Designing Reward Systems

• Reward systems serve the strategic purposes of
  attracting, motivating, and retaining people

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Designing Reward Systems

• Three types of decisions are crucial
• Pay level refers to the choice of whether to be a
  high-, average-, or low-paying company
• Pay structure is the choice of how to price
  different jobs within the organization
• Individual pay decisions concern different pay
  rates for jobs of similar worth within the same
  family

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Designing Reward Systems

• Individual incentive plans are the most common
  type of incentive plan and is based on the
  employees performance
• Gain-sharing plan concentrate on rewarding
  employees for increasing productivity or saving
  money in areas under their direct control
• Profit-sharing plans are usually implemented in
  the division or organization as a whole,
• Merit Pay Systems are based on the judgmental
  merit rating they receive from their boss

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Designing Reward Systems

• Individual Incentive plans are the most common
  type of incentive plan and is based on the
  individual employees performance
• Group Incentive Plans are based on group
  performance. They are becoming more popular

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Designing Reward SystemsTypes of Group Incentive
Plans

• Gain-sharing plan concentrate on rewarding
  employees for increasing productivity or saving
  money in areas under their direct control
• Profit-sharing plans are usually implemented in
  the division or organization as a whole,

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Employee Benefits

• Three basic required benefits
• Workers Compensation provides financial support
  to employees suffering a work-related injury
• Social Security provides financial support to
  retirees
• Unemployment Insurance provides financial support
  to employees who are laid off for reasons they
  cannot control
• Because of the wide variety of possible benefits
  and the considerable differences in employee
  preferences and needs companies often use
  cafeteria or flexible benefit programs