Management 11e
John Schermerhorn
Chapter 12
Human Resource
Management
Planning Ahead — Chapter 12 Study Questions
1. What is human resource management?
2. How do organizations attract a quality
workforce?
3. How do organizations develop a quality
workforce?
4. How do organizations maintain a quality
workforce?
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Study Question 1: What is human resource management?
 Human capital is the economic value of
people with job-relevant abilities,
knowledge, ideas, energies and
commitments
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Study Question 1: What is human resource management?
 Human Resource Management is a
process of attracting, developing, and
maintaining a talented work force
Human
Resource
Management
Management 11e Chapter 12
Attracting
talented
employees
Developing
talented
employees
Keeping
talented
employees
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Study Question 1: What is strategic human resource management?
 Major human resource management
responsibilities:
Attracting a
quality workforce
Human resource
planning,
recruitment, and
selection
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Developing a
quality workforce
Maintaining a
quality workforce
Employee
orientation, training
and development,
and performance
appraisal
Career
development, worklife balance,
compensation and
benefits, employee
retention and
turnover, and labormanagement
relations
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Study Question 1: What is human resource management?
 Person-job fit
 The individual’s skills, interests, and personal
characteristics are consistent with the
requirements of work
 Person-organization fit
 The individuals values, interests, and
behavior are consistent with the culture of
the organization
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Study Question 1: What is human resource management?
 Strategic human resource management
mobilizes human capital to implement
organizational strategies
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Study Question 1: What is human resource management?
 Discrimination in employment
 Occurs when someone is denied a job or job
assignment for reasons that are not job relevant
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Study Question 1: What is human resource management?
 Equal employment opportunity
 The right to employment without regard to race,
color, national origin, religion, gender, age, or
physical or mental ability
 Title VII of the Civil Rights Act of 1964
 Equal Employment Opportunity Act of 1972
 Civil Rights Act (EEOA) of 1991
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Figure 12.1 A sample of U.S. laws against employment
discrimination
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Study Question 1: What is human resource management?
 Affirmative action
 An effort to give preference in employment to
women and minority group members
 Bona fide occupational qualifications
 employment criteria justified by capacity to
perform a job
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Study Question 1: What is human resource management?
 Additional laws against employment
discrimination:
 Americans With Disabilities Act of 1990
 Age Discrimination in Employment Act of
1967 as amended in 1978 and 1986
 Pregnancy Discrimination Act of 1978
 Family and Medical Leave Act of 1993
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Study Question 1: What is human resource management?
 Current legal issues in HRM




Sexual harassment
Equal pay and comparable worth
Legal status of independent contractors
Workplace privacy
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Study Question 2: How do organizations attract a quality
workforce?
 Human resource planning analyzes an
organization’s HR needs and how to best
fill them
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Figure 12.2 Steps in strategic human resource planning
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Study Question 2: How do organizations attract a quality
workforce?
 The foundation of human resource planning is
job analysis
 The orderly study of job facts to determine just what
is done, when, where, how, why, and by whom in
existing or potential new jobs
 Job analysis provides information for
developing:
 Job descriptions
 Job specifications
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Study Question 2: How do organizations attract a quality
workforce?
 Recruitment
 Activities designed to attract a qualified pool
of job applicants to an organization
 Steps in the recruitment process:
 Advertisement of a job vacancy
 Preliminary contact with potential
job candidates
 Initial screening to create
a pool of qualified applicants
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Study Question 2: How do organizations attract a quality
workforce?
Recruitment methods
External
recruitment
Internal
recruitment
Traditional
recruitment
• candidates are
sought from
outside the hiring
organization
• candidates are
sought from within
the organization
• candidates receive • candidates receive
information only
all pertinent
on most positive
information
organizational
features
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Realistic job
previews
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Study Question 2: How do organizations attract a quality
workforce?
 Selection
 Choosing from a pool of
applicants the person or
persons who offer the
greatest performance
potential
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Study Question 2: How do organizations attract a quality
workforce?
 Selection process
Screening applicant information
Interview or site visit
Employment testing
Preemployment checks
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Figure 12.3 Steps in the selection process: the case of a rejected job
applicant
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Study Question 2: How do organizations attract a quality
workforce?
 Reliability means that a selection device
gives consistent results time after time
 Validity means that there is a clear
relationship between what the selection
device measures and job performance
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Study Question 3: How do organizations attract a quality
workforce?
 Interviews
 Unstructured interviews do not follow a
formal and pre-established of questions
 Behavioral interviews ask job applicants
about past behaviors that relate to the job
 Situational interviews ask job applicants how
they would react in specific situations
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Study Question 2: How do organizations attract a quality
workforce?
 Employment Tests
 Used to further screen applicants by
gathering additional job-relevant information
 Assessment centers examine how job
candidates handle
simulated work situations
 Work sampling
involves observing
applicants performing
actual work tasks
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Study Question 2: How do organizations attract a quality
workforce?
 Employment Tests
 Biodata methods collect biographical
information that has been proven to correlate
with good job performance along with other
traits such as
Value
judgments
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Aspirations
Motivations
Attitudes
Expectations
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Study Question 3: How do organizations develop a quality
workforce?
 Socialization
 Process of influencing the expectations,
behavior, and attitudes of a new employee in
a way considered desirable by the
organization
 Orientation
 Set of activities designed to familiarize new
employees with their jobs, coworkers, and
key aspects of the organization
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Study Question 3: How do organizations develop a quality
workforce?
 Training
 Activities that provide the opportunity to
acquire and improve job-related skills
On-the-job training
Off-the-job training
•
•
•
•
• Management
development
Job rotation
Coaching
Mentoring
Modeling
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Study Question 3: How do organizations develop a quality
workforce?
 Performance management systems
ensure that
 Performance standards and objectives are
set
 Performance results are assessed regularly
 Actions are taken to improve future
performance potential
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Study Question 3: How do organizations develop a quality
workforce?
 Performance appraisal
 Formally assessing someone’s work
accomplishments and providing feedback
 Purposes of performance appraisal:
 Evaluation — lets people know where they stand
relative to objectives and standards
 Development — assists in training and continued
personal development of people
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Study Question 3: How do organizations develop a quality
workforce?
 Graphic rating scales
 A trait-based performance appraisal that
includes checklists of traits or characteristics
to evaluate performance
 Relatively quick and
easy to use
 Questionable reliability
and validity
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Study Question 3: How do organizations develop a quality
workforce?
 Behaviorally anchored rating scales (BARS)
 A behavior-based performance appraisal that
describes actual behaviors that exemplify
various levels of performance achievement in
a job
 More reliable and valid than graphic rating
scales
 Helpful in training people to master important
job skills
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Figure 12.4 Sample behaviorally anchored rating scale for
performance appraisal
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Study Question 3: How do organizations develop a quality
workforce?
 Recency bias is the
tendency for evaluators
to focus on recent
behaviors instead of
behavior that occurred
throughout the
evaluation period
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Study Question 3: How do organizations develop a quality
workforce?
 Critical-incident techniques
 Keeping a running log or inventory of
effective and ineffective behaviors
 Documents success or failure patterns
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Study Question 3: How do organizations develop a quality
workforce?
 Results-based performance appraisals
focus on accomplishments
 Usually qualitative and objective
 Determining what to measure may be difficult
 May create ethical problems
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Study Question 3: How do organizations develop a quality
workforce?
 Multiperson comparisons
 Formally compare one person’s performance
with that of one or more others
 Types of multiperson comparisons:
 Rank ordering
 Paired comparisons
 Forced distributions
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Study Question 3: How do organizations develop a quality
workforce?
 360° feedback
 Occurs when superiors, subordinates, peers,
and even internal and external customers are
involved in the appraisal of a jobholder’s
performance
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Study Question 4: How do organizations maintain a quality
workforce?
 Work-life balance
 How people balance career demands with
personal and family needs
 Progressive employers support a healthy
work-life balance
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Study Question 4: How do organizations maintain a quality
workforce?
 Contemporary work-life
balance issues:
 Single parent concerns
 Dual-career couples
concerns
 Family-friendliness as
screening criterion used by
candidates
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Study Question 4: How do organizations maintain a quality
workforce?
 Compensation and benefits
 Base compensation
 Salary or hourly wages
 Flexible benefits
 Employees can select
a set of benefits within a
certain dollar amount
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Study Question 4: How do organizations maintain a quality
workforce?
 Pay for performance
 Paying people for performance is consistent with:
 Equity theory
 Expectancy theory
 Reinforcement theory
 Merit pay
 Awards a pay increase in proportion to individual
performance contributions
 Provides performance contingent reinforcement
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Study Question 4: How do organizations maintain a quality
workforce?
 Bonus pay plans
 One-time payments based
on the accomplishment of
specific performance targets
or some extraordinary
contribution
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Study Question 4: How do organizations maintain a quality
workforce?
 Profit-sharing plans
 Some or all employees receive a proportion of
net profits earned by the organization
 Gain-sharing plans
 Groups of employees share in any savings
realized through their efforts to reduce costs and
increase productivity
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Study Question 4: How do organizations maintain a quality
workforce?
 Employee stock ownership plans
 Employees purchase company stock directly
through employer, sometimes at a discount
 Stock options
 Employees have the right to purchase
company stock at a fixed price in the future
as a performance incentive
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Study Question 4: How do organizations maintain a quality
workforce?
 Benefits
 Non-monetary forms of compensation
 Required
 Social security
 Unemployment insurance
 Worker’s compensation
 Not required
 Health insurance
 Retirement plans
 Paid time off
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Study Question 4: How do organizations maintain a quality
workforce?
 Flexible benefits
 Allow employees to choose from a set of benefits
 Family-friendly benefits
 Help in balancing work and nonwork
responsibilities
 Employee assistance programs
 Help employees deal with troublesome personal
problems
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Study Question 4: How do organizations maintain a quality
workforce?
 Retention
 Keeping well trained and productive
employees
 Turnover
 management of promotions,
transfers, terminations,
layoffs, and retirements
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Study Question 4: How do organizations maintain a quality
workforce?
 Early retirement
 Financial incentive offered to
employees who retire early
 Termination
 Involuntary dismissal of an
employee
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Study Question 4: How do organizations maintain a quality
workforce?
 Employment-at-will
 Employees can be terminated at any time for any
reason
 Wrongful discharge
 Workers have legal protection from discriminatory
firings
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Study Question 4: How do organizations maintain a quality
workforce?
 Labor-management relations
 Labor unions deal with employers on the
workers’ behalf
 Collective bargaining
 Process of negotiating, administering and
interpreting a labor contract
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Study Question 4: How do organizations maintain a quality
workforce?
Wages
Other
conditions
of
employment
Work hours
Labor
contracts
may
determine
Grievances
Hiring
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Work rules
Seniority
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The traditional adversarial view of labor-management relations
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Chapter 12 Case
 Netflix: Making Movie Magic
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