Human Resource Management
Day 4
Recruitment
Drafting how the job will contribute to the
company.
Selection Process
You are talking about the person who will do the
job.
Personnel Selection
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Process through which organizations make
decisions about who will or will not be allowed to
join the organization.
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Selection begins with candidates identified through
recruitment.
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It attempts to reduce number to individuals best
qualified to perform available jobs.
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You shortlist applicants
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It ends with selected individuals placed in jobs with
the organization.
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You have to scrutinize the applicants
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You have to discuss with the person ang
gagawin niya (If Work from Home/F2f),
Can he encode?)
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Dapat match expectations sa actual
gagawin
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For employees who work directly with customers,
companies should create a selection process that
measures employees’ interest in customers and
their ability to interact in a positive way.
•
Should have a pleasing personality
1.
2.
Selection typically begins with a review of
candidates’ employment applications and
résumés.
The organization administers tests to candidates
who meet basic requirements, and qualified
candidates undergo one or more interviews.
Organizations check references and conduct
background checks to verify the accuracy of
information provided by candidates.
A candidate is selected to fill each vacant position.
Candidates who accept offers are placed in the
positions for which they were selected.
Ask students: Have you ever had to take a
computerized or paper-and-pencil test in order to
get a job?
Have you ever had to interview in order to get a
job?
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Selection Process
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Figure 6.1: Steps in the Selection Process
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•
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The process of selecting employees varies
considerably from organization to organization.
Most organizations selection includes the steps
illustrated in Figure 6.1.
o
Get Resumes (Check mga potential
mabigay, skills, likes or dislikes, and if
familiar sa trabaho) – After that you will
get an initial impression if papasok sa
second Stage
o
Test – depends on the job. (Ex. If
Accounting, about numbers; If military,
physical)
o
Interview – Here, you could see if they
are potentially qualified.
o
Background checking – if holistic, you
want to get a background as well. Ex. Sa
bank, they check if you are related with
some criminal. However, if rank and file
employees, usually di na need ito
o
Making a selection
§
You should also have reserves
in case may mangyari sa
selected
First, a human resource professional reviews the
applications received to see which meet the basic
requirements of the job.
For candidates who meet the basic requirements,
the organization administers tests and reviews
work samples to rate the candidates’ abilities.
Those with the best abilities are invited to the
organization for one or more interviews. Often,
supervisors and team members are involved in this
stage of the process.
By this point, the decision makers are beginning to
form opinions about which candidates are most
desirable. For the top few candidates, the
organization should check references and conduct
background checks to verify that the organization’s
information is correct. Then supervisors, teams,
and other decision makers select a person to
receive a job offer. In some cases, the candidate
may negotiate with the organization regarding
salary, benefits, and the like. If the candidate
accepts the job, the organization places him or her
in that job.
•
•
A simple job posting online could generate
hundreds of résumés in one day.
Many employers are coping by automating much
of the selection process with an applicant- tracking
system.
Typically, the system starts by receiving the data
provided in electronically submitted résumés and
matching it against the company’s selection
criteria. The system might find that half the
résumés lack necessary keywords, so it sends
those applicants a polite “no thank you” e-mail.
The applications that survive the automated
screening go to a hiring manager, often ranked by
how well they meet preset criteria. The manager
reviews these applications and selects candidates
to contact for a telephone or face-to-face interview
and/or testing.
Organizations should create a selection process in
support of its job descriptions.
Selection process should be set up in a way that it
lets the organization identify people who have
necessary KASOs.
•
They need to understand what is
expected of them
This strategic selection approach requires ways to
measure effectiveness of selection tools.
A successful selection method
•
provides reliable information.
•
•
•
•
provides valid information.
can be generalized to apply to
candidates.
offers high utility.
uses legal selection criteria.
Reliability
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Validity
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One criterion is reliability, which
indicates the method is free from
random error, so that measurements are
consistent.
Extent to which a measurement is free
from random error.
A reliable measurement generates
consistent results.
Organizations use statistical tests to
compare results over time.
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Correlation coefficients
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A higher correlation coefficient
signifies a greater degree of
reliability.
You allow error pero few lang
Extent to which performance on a measure (such
as a test score) is related to what the measure is
designed to assess (such as job performance).
Federal government’s Uniform Guidelines on
Employee Selection Procedures accept three ways
of measuring validity:
o
Criterion-related
o
Content
o
Construct
§
Di mo pwde sabihing mahina
siya dito if hindi ka nag-bigay
ng exam
As with reliability, information about the validity of
selection methods often uses correlation
coefficients.
One way to determine whether a measure is valid
is to compare many people’s scores on that
measure with their job performance.
For example, suppose people who score above 60
words per minute on a keyboarding test
consistently get high marks for their performance
in data-entry jobs.
This observation suggests the keyboarding test is
valid for predicting success in that job. information
about the validity of selection methods often uses
correlation coefficients.
A strong positive (or negative) correlation between
a mea- sure and job performance means the
measure should be a valid basis for selecting (or
rejecting) a candidate.
This information is important not only because it
helps organizations identify the best employees
but also because organizations can demonstrate
fair employment practices by showing that their
selection process is valid.
Criterion-Related Validity- A measure of validity
based on showing a substantial correlation
between test scores and job performance scores.
Content Validity - Consistency between the test
items or problems and the kinds of situations or
problems that occur on the job.
Construct Validity - Consistency between a high
score on a test and high level of a construct such
as intelligence or leadership ability, as well as
between mastery of this construct and successful
performance of the job.
Criterion-related validity
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A measure of validity based on showing
a substantial correlation between test
scores and job performance scores.
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Two kinds of research are possible for
arriving at criterion-related validity:
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Predictive Validation
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Concurrent Validation
Predictive Validation
Research that uses test scores of all applicants and
looks for a relationship between scores and future
performance of applicants who were hired.
Predictive validation is more time consuming and
difficult, but
Concurrent Validation
Research that consists of administering a test to
people who currently hold a job, and then
comparing their scores to existing measures of job
performance.
Predictive validation is more time consuming and difficult,
but it is the best measure of validity.
: 1. Predictive validation—This research uses the test scores
of all applicants and looks for a relationship between the
scores and future performance. The
researcher administers the tests, waits a set period of time,
and then measures the
performance of the applicants who were hired.
2. Concurrent validation—This type of research administers
a test to people who currently hold a job, then compares
their scores to existing measures of job performance. If the
people who score highest on the test also do better on the
job, the test is assumed to be valid. Predictive validation is
more time consuming and difficult, but it is the best measure of validity.
Figure 6.2 shows, a company compares two measures—an
intelligence test and college grade point average—with
performance as sales representative. In the left graph, which
shows the relationship between the intelligence test scores
and job performance, the points for the 20 sales reps fall
near the 45-degree line. The correlation coefficient is near
.90 (for a perfect 1.0, all the points would be on the 45degree line). In the graph at the right, the points are
scattered more widely. The correlation between college GPA
and sales reps’ performance is much lower. In this
hypothetical example, the intelligence test is more valid than
GPA for predicting success at this job.
Content Validity
Consistency between test items or problems and kinds of
situations or problems that occur on the job.
Construct Validity
Consistency between a high score on a test and high level of
a construct (i.e., intelligence or leadership ability) as well as
between mastery of this construct and successful
performance of the job.
A selection method should also be valid, meaning that
performance on the measure (such as a test score) is related
to what the mea- sure is designed to assess (such as job
performance). Criterion-related validity shows a correlation
between test scores and job performance scores. Content
validity shows consistency between the test items or
problems and the kinds of situations or problems that occur
on the job. Construct validity establishes that the test actually
measures a specified construct, such as intelligence or
leadership ability, which is presumed to be associated with
success on the job.
Legal Standards for Selection
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All selection methods must conform to
existing laws and legal precedents.
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Three acts have formed the basis for a
majority of suits filed by job applicants:
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Civil Rights Act of 1964 and
1991
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Age Discrimination in
Employment Act of 1967
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Americans with Disabilities Act
of 1991
Example: Table 6.1 Permissible and Impermissible Questions
for Applications and Interviews 1 of 2
Ability to Generalize
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A generalizable selection method applies not only
to the conditions in which the method was
originally developed – job, organization, people,
time period, etc.
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Ex. If UST, magagaling.
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It also applies to other organizations, jobs,
applicants, etc.
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Along with validity in general, we need to know
whether a selection method is valid in the context
in which the organization wants to use it. A
selection method also should be generalizable, so
that it applies to more than one specific situation.
Each selection method should have utility,
meaning it provides economic value greater than
its cost. Finally, selection methods should meet the
legal requirements for employment decisions.
•
Ask students, “is a selection method that was valid
in one context also valid in other contexts?
Practical Value
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Being valid, reliable, and generalizable
adds value to a selection method.
Another consideration is the cost of
using the selection method.
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If anoa no mga ginamit mo.
Selection methods should cost
significantly less than the benefits of
hiring new employees.
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May value dapat selection
Methods that provide economic value
greater than the cost of using them are
said to have utility.
Not only should selection methods such
as tests and interview responses
accurately predict how well individuals
will perform, they should also produce
information that actually benefits the
organization.
Answer: C
Candidates’ Privacy Rights
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Information gathered during selection process may
include information that employees consider
confidential.
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Don’t share
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This is a particular concern when job applicants
provide information online.
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Employers should collect data only at secure Web
sites.
Employers may have to be understanding if online
applicants are reluctant to provide data such as
Social Security numbers, which hackers could use
for identity theft.
Candidates’ Privacy Rights continued
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Fair Credit Reporting Act requires
employers to obtain a candidate’s
consent before using a third party to
check candidate’s credit history or
references.
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If the employer decides not to hire
based on the report, employer must give
applicant a copy of the report and
summary of applicant’s rights before
taking action.
Immigration Reform and Control Act (1986): Federal law
requiring employers to verify and maintain records on
applicant’s legal rights to work in U.S.
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Applicants fill out Form I-9 and present
documents showing their identity and
eligibility to work.
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Law prohibits employer from
discriminating against the person on
basis of national origin or citizenship
status.
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To use the system E-Verify, employers
go online (www.everify.com) to submit
information on the applicant’s I-9.
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E-Verify is a system in which employers go online
(www.everify.com) to submit information on the
applicant’s I-9. The system compares it against
information in databases of the Social Security
Administration and Department of Homeland
Security. It then notifies the employer of the
candidate’s eligibility, usually within 24 hours.
candidates to a number it can afford to
test and interview.
Résumés
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Applicants control the information
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Inexpensive starting point
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Should be evaluated in terms of the
elements of the job description
References
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May be phone calls or written
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Biased, employees choose the people
who will say nice things about them
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Usually checked when candidate is a
finalist for the job
Background Checks
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EEOC has guidelines for doing criminal
background checks.
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Credit checks have drawn scrutiny, and
some states have banned it.
Aptitude tests: assess how well a person can
learn or acquire skills and abilities.
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Future skills
Achievement tests: measure a person’s
existing knowledge and skills.
Employment Tests and Work Samples 2 of 3
Job Applications and Résumés 1 of 4
Application Forms
― Low-cost way to gather basic data from
applicants.
― Ensures that the organization has certain
standard categories of information:
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Contact information
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Work experience
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Educational
background
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Applicant’s
signature
― Asking each applicant to fill out an
employment application is a low-cost
way to gather basic data from many
applicants. It also ensures that the
organization has certain standard
categories of information, such as
mailing address and employment
history, from each. HR can identify which
candidates meet minimum requirements
for education and experience. They may
be able to rank applicants—for example,
giving applicants with 10 years’
experience a higher ranking than
applicants with 2 years’ experience. In
this way, the applications enable the
organization to narrow the pool of
Employment Tests and Work Samples 3 of 3
Rules for Administering Drug Tests
1.
2.
3.
4.
Administer tests systematically to all applicants for
the same job.
Use drug testing for jobs that involve safety
hazards.
Have a report of results sent to applicant, along
with information about how to appeal results and
be retested if appropriate.
Respect applicants’ privacy by conducting tests in
an environment that is not intrusive and keeping
results confidential.
When interviewing candidates, it’s valid to ask about
willingness to travel if that is part of the job. Interviewers
might ask questions about previous business travel
experiences and/or how interviewees handled situations
requiring flexibility and self-motivation (qualities that would
be an asset in someone who is traveling alone and solving
business problems on the road).
Interviews 1 of 5
Supervisors and team members most often get involved in
the selection process at the stage of employment interviews.
Most organizations use interviewing as part of the selection
process.
There are several types of interviews: In a nondirective
interview, the interviewer has great discretion in choosing
questions. The candidate’s reply to one question may
suggest other questions to ask. Nondirective interviews
typically include open-ended questions about the candidate’s
strengths, weaknesses, career goals, and work experience.
Because these interviews give the interviewer wide latitude,
their reliability is not great, and some interviewers ask
questions that are not valid or even legal.
A structured interview establishes a set of questions for the
interviewer to ask. Ideally, the questions are related to job
requirements and cover relevant knowledge, skills, and
experiences. The interviewer is supposed to avoid asking
questions that are not on the list. Although interviewers may
object to being restricted, the results may be more valid and
reliable than with a nondirective interview.
A situational interview is a structured interview in which the
interviewer describes a situation likely to arise on the job
and asks the candidate what he or she would do in that
situation. This type of interview may have high validity in
predicting job performance.
A behavior description interview (BDI) is a situational
interview in which the interviewer asks the candidate to
describe how he or she handled a type of situation in the
past. These tend to be the most valid.
Panel interviews
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Several members of the organization
meet to interview each candidate
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Reduces biases
Computerized interviews
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Candidate enters response to questions
at a computer
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Useful for gathering objective data
Preparing to interview
1.
Be prepared
2.
Put applicant at ease
3.
Ask about past behaviors
4.
Listen – let candidate do most of the talking
5.
Take notes – write down notes during and
immediately after interview
6.
At the end of the interview, make sure candidate
knows what to expect next
Here are some tips for conducting interviews that identify the
best candidates:
Interviewing is one HR function that almost all managers are
involved with at some point Interviews should be narrow,
structured, and standardized. Interviewers should identify job
requirements and create a list of questions related to the
requirements. Interviewers should be trained to recognize
their own personal biases and conduct objective interviews.
Panel interviews can reduce problems related to interviewer
bias. In a panel interview, several members of the
organization meet to interview each candidate. A panel
interview gives the candidate a chance to meet more people
and see how people interact in that organization. It provides
the organization with the judgments of more than one
person, to reduce the effect of personal biases in selection
decisions .Interviewers should put candidates at ease in a
comfortable place that is free of distractions. Questions
should ask for descriptions of relevant experiences and jobrelated behaviors. The interviewers also should be prepared
to provide information about the job and the organization.
Structured Interview
A selection interview that consists of a predetermined set
of questions for the interviewer to ask.
Situational Interview - A structured interview in which the
interviewer describes a situation likely to arise on the job,
then asks the candidate what he or she would do in that
situation.
Behavior Description Interview (BDI)- A structured interview
in which the interviewer asks the candidate to describe how
he or she handled a type of situation in the past.
Nondirective Interview- A selection interview in which the
interviewer has great discretion in choosing questions to ask
each candidate.
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rather than relying solely on interviews or a single
type of testing.
Sources should be chosen carefully to relate to
characteristics identified in job description to
increase validity of decision criteria.
Organizations are more likely to make decisions
that are fair and unbiased and choose the best
candidate.
Selection Decisions 1 of 2
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Multiple-Hurdle Model
Process of arriving at a selection decision by eliminating
some candidates at each stage of the selection process.
Compensatory Model
Process of arriving at a selection decision in which a very
high score on one type of assessment can make up for a low
score on another.
When a candidate has been selected, the organization should
communicate the offer to the candidate. The offer should
include:
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Job responsibilities
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Work schedule
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Rate of pay
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Starting date
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Other relevant details
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The HR department is often responsible for
notifying applicants about the results of the
selection process.
When a candidate has been selected, the
organization should communicate the offer to the
candidate. The offer should include the job
responsibilities, work schedule, rate of pay, starting
date, and other relevant details. If placement in a
job requires that the applicant pass a physical
examination, the offer should state that
contingency. The person communicating the offer
should also indicate a date by which the candidate
should reply with an acceptance or rejection of the
offer. For some jobs, such as management and
professional positions, the candidate and
organization may negotiate pay, benefits, and work
arrangements before they arrive at a final
employment agreement.
If placement in a job requires that the applicant
pass a physical examination, the offer should state
that contingency.
Summary 1 of 4
•
Selection typically begins with a review of
candidates’ applications and résumés.
•
The organization administers tests to candidates
who meet basic requirements, and qualified
candidates undergo one or more interviews.
•
Organizations check references and conduct
background checks.
•
A candidate is selected to fill each vacant position.
Organizations need to measure success of selection methods.
Criteria used include:
1.
Validity
2.
Reliability
3.
Utility
4.
Legality
5.
Generalizable
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An important principle of selection is to combine
several sources of information about candidates,
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Selection process must be conducted in a way that
avoids discrimination and provides access to
persons with disabilities.
Selection methods must be valid for job
performance, and scores may not be adjusted to
discriminate against or give preference to any
group.
Focus on finding the person who will be best fit
with job and organization. This includes an
assessment of ability and motivation.
High-Performance Work Systems 1 of 4
High-performance work system
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Right combination of people,
technology, and organizational structure
that makes full use of the organization’s
resources and opportunities in achieving
its goals.
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Each of these elements must fit well with
the others in a smoothly functioning
whole.
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The challenge facing managers today is
how to make their organizations into
high-performance work systems.
Organizations need to determine what
kinds of people fit their needs, and then
locate, train, and motivate those special
people. Organizations that introduce
integrated high-performance work
practices usually experience increases in
productivity and long-term financial
performance. Success depends on how
well all the elements work together.
5 Pillars in Academe
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Academic
Manpower
Technical Support
Physical Support
Financial Support
Figure 9.1 Elements of a High-Performance
Work System
Outcomes of a high-performance work system include higher
productivity and efficiency which contribute to higher profits,
high product quality, great customer satisfaction, and low
employee that may lead to higher profits (see Figure 9.2). For
example, high quality contributes to customer satisfaction,
and customer satisfaction contributes to growth of the
business. Likewise, improving productivity lets the
organization do more with less, which satisfies priceconscious customers and may help the organization win over
customers from its competitors. Other ways to lower cost and
improve quality are to reduce absenteeism and turnover.
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Left:
Organization’s Goal – objective
Information Systems – IT
Org Structure – mga higher ups
Reward System – Compensation
Task Design – job description, specification, etc
People – performance eval, selection, training, etc.
Performance of the whole company
As shown in Figure 9.1, in a high-performance work system,
the elements that must work together include:
1.
Organizational structure
2.
Task design
3.
People (the selection, training, and development of
employees)
4.
Reward systems
5.
Information systems
HRM plays an important role in establishing all of these.
Elements of a High-Performance Work System
1.
Organizational structure: way organization groups
its people into useful divisions, departments, and
reporting relationships.
2.
Task design: determines how details of the
organization’s necessary activities will be grouped,
whether into jobs or team responsibilities.
3.
People: well suited and well prepared for their jobs.
4.
Reward systems: encourage people to strive for
objectives that support organization’s overall goals.
5.
Information systems: enable sharing information
widely.
Organizational structure promotes cooperation, learning, and
continuous improvement. The right people are a key element
of high-performance work systems; HR recruits, selects,
trains and develops them and provides performance
measures by which employees are judged, the methods of
measuring performance, and the incentive pay and other
rewards linked to success.
High-Performance Work Systems 3 of 4
In a high-performance work system, all the elements –
people, technology, and organizational structure – work
together for success.
Outcomes of a High-Performance Work System
1.
Higher productivity and efficiency that contribute
to higher profits
2.
High product quality
3.
Great customer satisfaction
4.
Low employee turnover
LO 9-2 Summarize the outcomes of a high-performance
work system.
Outcomes of a high-performance work system include higher
productivity and efficiency. These outcomes contribute to
higher profits. A high-performance work system may have
other outcomes, including:
•
High product quality
•
Great customer satisfaction
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Low employee turnover.
When the organization adds or changes goals, people are
flexible and make changes as needed to meet the new goals.
Conditions that Contribute to High Performance 1 of 7
1.
2.
3.
Teams perform work.
Employees participate in selection.
Employees receive formal performance feedback
and are involved in performance improvement
process.
4.
Ongoing training is emphasized and rewarded.
5.
Employees’ rewards and compensation relate to
company’s financial performance.
6.
Equipment, work processes and technology
encourage maximum flexibility and interaction
among employees.
7.
Employees participate in planning changes in
equipment, layout, and work methods.
8.
Work design allows employees to use variety of
skills.
9.
Employees understand how their jobs contribute to
finished product or service.
10. Ethical behavior is encouraged.
Ten conditions underlie the formation of a high-performance
work system as listed. Practices involving rewards, employee
empowerment, and jobs with variety con-tribute to high
performance by giving employees skills, incentives,
knowledge, autonomy—and satisfaction, another condition
associated with high performance.
Ethical behavior is a necessary condition of high performance
because it contributes to good long-term relationships with
employees, customers, and the public. Also, teamwork and
empowerment contribute to high performance when they
improve job satisfaction and give the organization fuller use
of employees’ ideas and expertise.
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•
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Teamwork and Empowerment
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Design work so it is performed by teams
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Managers coordinate roles and provide
resources
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It’s important for companies to capture
and share the knowledge of workers who
have had years to learn their specialty.
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Knowledge Sharing
Key Features of Learning Organizations
1.
Continuous learning
2.
Shared knowledge
3.
Critical, systematic thinking
4.
Learning culture
5.
Valued employees
Ultimately, people are the essential ingredients in a learning
organization. They must be committed to learning and willing
to share what they have learned. A learning organization has
five key features as listed. Employees must understand the
entire work system they participate in, the relationships
among jobs, their work units, and the organization as a
whole. Employees who continuously learn about their work
system are adding to their ability to improve performance.
Training increases employees’ value to the organization. HR
can help create face-to-face and electronic systems for
employee collaboration to create, capture, and share
knowledge. Reward systems can be set up to encourage
employees and teams to think in new ways.
Job Satisfaction and Employee Engagement
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Employee engagement
•
Degree to which employees
are fully involved in their work
and the strength of their
commitment to their job and
company.
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Brand alignment
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HR policies, practices, and
programs support or are
congruent with an
organization’s overall culture
or brand, including its
products and services.
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A condition underpinning any high-performance
organization is that employees be fully engaged
with their work. Being fully engaged tends to
require that employees experience their jobs as
fulfilling or allowing them to fulfill important
values. Research supports the idea that
employees’ job satisfaction and job performance
are related. Higher performance at the individual
level should contribute to higher performance for
the organization as a whole practices that do most
to promote employee engagement are
opportunities for career progress, recognition for
accomplishments, and brand alignment.
Employers have the most impact on brand
alignment by providing career opportunities, using
effective performance management systems, and
maintaining a positive reputation.
Passionate people are fully engaged with
something so that it becomes part of their sense of
who they are.
Feeling this way about one’s work has been called
occupational intimacy.
HR has a significant role in creating these
conditions.
In a recent survey, only about half of employees
said they love their job and that their company
cares about them. In spite of a slow economy,
almost four in ten said they intended to look for a
new job. But whether or not they intend to stay,
solid majorities said they would work harder if
their employer better recognized and appreciated
their efforts. Some organizations are moving
beyond concern with mere job satisfaction and are
trying to foster employees’ passion for their work.
Feeling this way about one’s work has been called
occupational intimacy. People experience
occupational intimacy when they love their work,
when they and their co-workers care about one
another, and when they find their work meaningful.
HR managers have a significant role in creating
these conditions. For example, they can select
people who care about their work and customers,
provide methods for sharing knowledge, design
work to make jobs interesting, and establish
policies and programs that show concern for
employees’ needs, increasingly important for
employee empowerment, teamwork, and
knowledge sharing to build flexible organizations.
Charlotte is a manager overseeing the work of a team. Which
of the following behaviors would empower the team the
least?
a.
Opening lines of communication
between the team and other groups
within the organization.
b.
Directing the team and monitoring their
day-to-day activities.
c.
Ensure the team has the resources they
need.
d.
Keep the team informed as strategy
changes or new, relevant information
becomes available.
Answer - B
Kamran has worked for the same company for 3 years,
hasn’t missed work in two years, and has several close
friends he enjoys working with. Which of the following best
describes Kamran?
a.
He is satisfied with his job.
b.
He is empowered.
c.
He is experiencing occupational
intimacy.
d.
He is probably going to quit soon.
Answer - C
Ethics
•
Ethical systems include
–
a written code of ethics
–
reinforcement of ethical
behavior
–
performance measures that
include ethical standards
–
channels for employees to
seek help
–
training in ethical decision
making
-
•
A high-performance organization meets high
ethical standards. Organizations and their
employees must meet these standards if they are
to maintain positive long-term relationships with
their customers and their community. Ethical
behavior is most likely to result from values held
by the organization’s leaders combined with
systems that promote ethical behavior. Ethical
behavior is a HRM concern. Systems that promote
ethical behavior include such HRM functions as
training, performance management, and discipline
policies. A reputation for high ethical standards
can help a company attract workers—and
customers— who share those high standards
Many efforts can be started or be supported by
HR. Creating a climate of trust provides a strong
foundation for all kinds of business relationships,
including purchase contracts, labor-management
agreements, and employees’ confidence in the
fairness of supervisors’ decisions. People are more
likely to trust an organization, manager, or
employee when they see evidence of competence,
openness and honesty, concern for stakeholders
including employees and the community, reliability
in keeping commitments, and identification with
the organization so that an individual’s values
match up with the values expressed by the
organization.
HR professionals can provide performance
feedback, training, coaching, and rewards to foster
the development of many of these drivers of trust.
Job design in which employees are empowered to
deliver excellent customer care, make well-crafted
products, or deliver valued outcomes helps to align
individual practices with an organization’s highest
Values. To maintain an ethical culture, ethical
conduct should be defined and ethical abuses
responded to and punished when detected.
Ethical conduct should be rewarded. Employee
development programs should include goals for
trust-building. HR professionals can support these
objectives with performance measures and pay
policies that reward ethical conduct, never ethical
lapses.
Management HR plays a critical role in determining
companies’ success in meeting the challenges of a rapidly
changing, highly competitive environment. Table 9.1 list
examples of HRM practices that contribute to high
performance.
•
HRM contributes most to building highperformance organizations when HR professionals
understand the goals of the business and clearly
demonstrate how they can help achieve those
goals. As provided in text’s HR How To box, six
other ways that HR professionals can collaborate
better with line managers and top executives
include:
1.
Learn about the organization’s business.
2.
Follow and analyze the trends affecting
the business.
3.
Avoid using HRM jargon when talking to
the organization’s leaders.
4.
If HR professionals have not been
included in strategy or planning
meetings, identify specific contributions
the profession can make to achieving
strategic goals.
5.
Communicate honestly and respectfully.
6.
Be assertive in expressing the value of
effective HRM.
HRM’s Contribution to High Performance 1 of 2
HRM Practices
–
–
–
–
–
Job design
•
Enable the organization to
benefit from teamwork and
employee empowerment
Recruitment and Selection
•
Employees who contribute to
teamwork, empowerment, and
knowledge sharing
Training
•
Teach employees the specific
skills they need to perform the
duties of their job
Performance Management
•
Ensure that employees’ work
contributes to achieving the
organization’s goals
Compensation
To set up a performance management system that supports
the organization’s goals, managers need to understand the
process of employee performance. As shown in Figure 9.3,
individual employees bring a set of skills and abilities to the
job, and by applying a set of behaviors, they use those skills
to achieve certain results. The organization’s goals influence
each step of the process. The organization’s culture and
other factors influence the employee’s abilities, behaviors,
and results.
Guidelines for performance management
1.
Define and measure performance in
precise terms.
2.
Link performance measures to meeting
customer needs.
3.
Measure and correct for the effect of
situational constraints.
Organizations can reinforce the impact of this kind of
performance management by linking compensation in part
to performance measures. Organizations can increase
empowerment and job satisfaction by including employees in
decisions about compensation and by communicating the
basis for decisions about pay.
In recent years, HRM at some organizations has responded
to the quest for total quality management by taking a
customer-oriented approach. Taking this customer-oriented
approach, HRM defines its customer groups, customer needs,
and the activities required to meet those needs. This slide is
adapted from Table 9.2 in the text. These definitions give an
organization a basis for defining goals and measures of
success.
Effectiveness of Human Resource Management 1 of 2
Human Resource Management Audits
–
Formal review of the outcomes of HRM
functions
•
Staffing, compensation,
benefits, training, appraisal
and development, and overall
effectiveness
•
Compliance with equal
employment opportunity laws,
succession planning,
maintaining a safe workplace,
and positive labor relations
Table 9.3 lists six business indicators with examples of key
customer satisfaction measures of success for a variety of
HRM functions:
1.
Staffing
2.
Compensation
3.
Benefits
4.
Training
5.
Employee appraisal and development
6.
Overall effectiveness
An HRM audit is a formal review of the outcomes of HRM
functions. To conduct the audit, the HR department identifies
key functions and the key measures of business performance
and customer satisfaction that would indicate each function
is succeeding. Table 9.3 lists examples of these measures for
a variety of HRM functions: staffing, compensation, benefits,
training, appraisal and development, and overall
effectiveness. The audit may also look at any other HRM
measure—for instance, compliance with equal employment
opportunity laws, succession planning, maintaining a safe
workplace, and positive labor relations. An HRM audit using
customer satisfaction measures supports the customeroriented approach to HRM.
Analyzing the Effect of HRM Programs
–
HR analytics
•
Measures HRM efficiency and
effectiveness and a program’s
success
–
Economic approach
•
Measures the dollar value of
the program’s costs and
benefits
Computing power available to today’s organizations, coupled
with people who have skills in HR analytics, enables
companies to find more ways than ever to identify practices
associated with greater efficiency and effectiveness. For
example, organizations can measure patterns in employees’
social networks—who is talking to whom, how often—and
combine that with performance data. Analysis can measure a
measure the dollar value of the program’s costs and benefits
and it’s success in terms of whether it: achieved its objectives
and delivered value in an economic sense. Successful
programs should deliver value that is greater than the
program’s costs. HR analytics, a process that measures a
program’s success in terms of whether it achieved its
objectives and whether it delivered value in an economic
sense. For example, if the organization sets up a training
program, it should set up goals for that program, such as the
training’s effects on learning, behavior, and performance
improvement (results). Analysis would then measure whether
it achieved preset goals.
The HR director of a medium-sized corporation spends 90%
of his time meeting and working with fellow HR staff. He is
primarily concerned with ensuring the company meets all
legal requirements with regard to HR activities. This HR
director:
a.
Is a major contributor to a highperformance organization
b.
Has a strategic focus
c.
Is concerned with customer satisfaction
d.
Has limited the utility and value he could
bring to the organization
Answer - D
Summary 1 of 2
•
•
•
A high-performance work system is the right
combination of people, technology, and
organizational structure that makes full use of the
organization’s resources and opportunities in
achieving its goals.
A high-performance work system achieves the
organization’s goals, typically including growth,
productivity and high profits.
Elements of a high-performance work system are
organizational structure, task design, people,
reward systems, and information systems. These
elements must work together in a smoothly
functioning whole. High performance work system
meets such intermediate goals as high quality,
innovation, customer satisfaction, job satisfaction,
and reduced absenteeism and turnover. Many
conditions contribute to high-performance work
systems by giving employees skills, incentives,
knowledge, autonomy, and employee satisfaction.
In a high-performance organization, employees
experience job satisfaction or even “occupational
intimacy.” For long-run high performance,
organizations and employees must be ethical as
well.
Organizations can improve performance
by creating a learning organization, in which
•
•
•
•
people constantly learn and share knowledge so
that they continually expand their capacity to
achieve the results they desire.
By taking a customer-oriented approach, HRM can
improve quality by defining internal customers
who use its services and determining whether it is
meeting those customers’ needs.
Auditing HRM and measuring HRM effectiveness to
analyze specific programs or activities can
determine if a program met its objectives and
whether it delivered value in an economic sense.
HRM’s potential to affect employees’ well-being
and the organization’s performance makes HRM
an exciting field. Every HRM function calls for
decisions that have the potential to help individuals
and organizations achieve their goals. For HR
managers to fulfill that potential, they must ensure
that their decisions are well grounded. The field
HRM provides tremendous opportunity to future
researchers and managers who want to make a
difference in many people’s lives.