Human
Resource
Management
Chapter 10
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
LO 1 Discuss how companies use human resources
management to gain competitive advantage
LO 2 Give reasons why companies recruit both
internally and externally for new hires
LO 3 Identify various methods for selecting new
employees
LO 4 Evaluate the importance of spending on training
and development
10-2
Learning Objectives (cont.)
LO 5 Explain alternatives for who appraises an
employee’s performance
LO 6 Describe the fundamental aspects of a reward
system
LO 7 Summarize how unions and labor laws influence
human resources management
10-3
Human Resource Management
 Human resources
management (HRM)
 Formal systems for
the management of
people within an
organization.
10-4
Strategic Human Resources Management
 Human capital
 The knowledge,
skills, and abilities of
employees that have
economic value.
 Value as an asset
10-5
The HR Planning Process
 Demand forecasts
 determining how
many and what type
of people are
needed.
 Supply of labor
 how many and what
types of employees
the organization
actually will have.
 Future leaders
 Future managers
10-6
An Overview of the HR
Planning Process
Figure 10.1
10-7
Ex. 9.1
Strategic Human Resource Management
Company Strategy
Attract an Effective Workforce
HRM planning
Job analysis
Forecasting
Recruiting
Selecting
Maintain an Effective
Workforce
Wage and salary
Benefits
Labor relations
Terminations
© 2006 by South-Western, a division
Develop an Effective Workforce
Training
Development
Appraisal
9-8
The HR Planning Process
 Job analysis
 A tool for
determining what is
done on a given job
and what should be
done on that job.
10-9
Ex. 9.4
Attracting an Effective Workforce
HR Planning
Retirements
Growth
Resignations
Choose Recruiting
Sources
Want ads
Headhunters
Internet
Company Needs
Strategic goals
Current and future competencies
Market changes
Employee turnover
Corporate culture
Company Inducements
Pay and benefits
Meaningful work
Advancement
Training
Challenge
Matching
Select
the
Candidat
e
Application
Interview
Model
Tests
Match with
Match with
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Welcome New
Employee
Employee Contributions
Ability
Education and experience
Creativity
Commitment
Expertise and knowledge
Employee’s Needs
Stage of career
Personal values
Promotional aspirations
Outside interest
Family concerns
9-10
Staffing the Organization
 Recruitment
 The development of
a pool of applicants
for jobs in an
organization
 Internal, external
 Selection
 Choosing from
among qualified
applicants to hire
into an organization
10-11
Selection
Applications
and Résumés
Interviews
Reference
Checks
Background
Checks
Personality
Tests
Drug Testing
Cognitive
Ability Tests
Performance
Tests
Integrity
Tests
10-12
Interviewing a Job Applicant
Know what
you want.
Do not ask
questions that
are not relevant
to the job.
Prepare a
road map.
Listen--don’t
talk.
© 2006 by South-Western, a division
Use openended
questions in
which the right
answer is not
obvious.
Allow enough
time so that
the interview
will not be
rushed.
Avoid reliance
on your
memory.
9-13
Interviews
 Structured
interview
 Selection technique
that involves asking
all applicants the
same questions and
comparing their
responses to a
standardized set of
answers.
10-14
Use of Pre-employment
Selection Tools
Figure 10.2
10-15
Performance Tests
 Assessment center
 A managerial performance test in which
candidates participate in a variety of exercises and
situations.
 Data Dimensions
10-16
Training
 “the end in mind”
 Visualize
 Needs
 Orientation, team training, computer, DVD,
 Mentors, shadowing.
 Appraisals with methods to overcome
deficiencies.
10-17
Reliability and Validity
 Reliability
 The consistency of
test scores over time
and across
alternative
measurements.
 Validity
 The degree to which
a selection test
predicts or correlates
with job
performance
 Criterion, content
10-18
Workforce Reductions
 Outplacement
 The process of helping people who have been
dismissed from the company regain employment
elsewhere.
 Cost
 Agreement
10-19
Termination
 Employment-at-will
 The legal concept that an
employee may be
terminated for any
reason.
10-20
Advice on Termination
Table 10.1
10-21
Legal Issues and
Equal Employment Opportunity
 Adverse impact
 When a seemingly neutral employment practice
has a disproportionately negative effect on a
protected group.
 Competition
10-22
Performance Appraisal
 360-degree appraisal
 Process of using multiple sources of appraisal to
gain a comprehensive perspective on one’s
performance
10-23
Giving Feedback
1. Summarize the employee’s performance, and be
specific.
2. Explain why the employee’s work is important to
the organization.
3. Thank the employee for doing the job.
4. Raise any relevant issues, such as areas for
improvement.
5. Express confidence in the employee’s future good
performance.
10-24
Factors Affecting the Wage Mix
Figure 10.6
10-25
Pay Structure
Figure 10.7
10-26
Employee Benefits
 Cafeteria benefit
program
 An employee benefit
program in which
employees choose from
a menu of options to
create a benefit
package tailored to
their needs.
 Save 10%
 Flexible benefit
programs
 Benefit programs in
which employees are
given credits to spend
on benefits that fit their
unique needs.
comparable worth
10-27
Designing the “Right” Package of Benefits
Usually Mandatory
Social security
u Workers’ compensation
u Unemployment compensation
u
Group life insurance
u Retirement pensions
u Paid vacations
u
Optional but Frequently Offered
Disability insurance
u Paid sick leave
u Health insurance
u
Employee assistance program
u Paid rest breaks
u Tuition assistance
u
Optional but Less Frequently Offered
Wellness programs
u Credit unions
u Funeral leave
u
© 2006 by South-Western, a division
Vision-care plans
u Parental leave
u Retirement counseling
u
9-28
Adapted from Exhibit
10.10
Labor Relations
 Labor relations
 The system of
relations between
workers and
management.
10-29
Collective Bargaining
 Union shop
 An organization with
a union and a union
security clause
specifying that
workers must join
the union after a set
period of time.
 Right-to-work
 Legislation that
allows employees to
work without having
to join a union.
10-30
Determinants of Union
Voting Behavior
Figure 10.8
10-31
Managing Diversity
 History
 Laws
 Cultural
 Older
 Women
 Labor force
10-32
The Changing Workplace
 Cultural diversity & employee
attitudes
 Immigrants
 Many are
women
 People of color
 Globalization
 Average worker is older
now
© 2006 by South-Western, a division
9-33
Guidelines for Diversity Training
Table 11.8
11-34
Sexual Harassment
 Quid pro quo
harassment
 Submission to or
rejection of sexual
conduct is used as a
basis for
employment
decisions
 Hostile environment
 Occurs when
unwelcome sexual
conduct has the effect
of unreasonably
interfering with job
performance or
creating an
intimidating or hostile,
working environment
11-35
Basic Components of an Effective
Sexual Harassment Policy
Table 11.3
11-36
Five Proven Stress Busters
Take a brief break from a stressful situation and do something
small and constructive, like washing your car or getting a hair
cut.
Get help with a stressful task from a co-worker, boss, or friend.
Concentrate intensely on reading, surfing the Internet, a sport,
or hobby. Contrary to common sense, concentration is at the
heart of stress reduction.
Finish anything you have started. Accomplishing almost
anything reduces some stress.
Find somebody or something that makes you laugh, and have a
good laugh.
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9-37
Break task down
into smaller units
Make a
commitment to
others
Post a progress
chart in your
work area
Force yourself to
confront an
uncomfortable
task
Techniques to
Reduce and
Control
Procrastination
Use subliminal
messages
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Reward yourself
for achieving
milestones
Calculate the
cost of
procrastination
9-38