MANAGEMENT
RICHARD L. DAFT
Managing Human
Resources
CHAPTER 11
chapter11
Learning Outcomes
• Explain the strategic role of human resource management.
• Describe federal legislation and societal trends that influence
human resource management.
• Explain what the changing social contract between organizations
and employees means for workers and human resource managers.
• Show how organizations determine their future staffing needs
through human resource planning.
• Describe the tools managers use to recruit and select employees.
• Describe how organizations develop an effective workforce
through training and performance appraisal.
• Explain how organizations maintain a workforce through the
administration of wages and salaries, benefits, and terminations.
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chapter11
Getting the Right
People on the Bus
• Hiring and keeping quality employees is one of the
most urgent concerns for today’s organizations
• Talent management is a top priority for managers
• Human Resources is the design and application
of formal systems to ensure the effective and
efficient use of human talent
• Attracting, developing, and maintaining an effective
workforce
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The Strategic Role of HRM is to
Drive Organizational Performance
• Managers are involved in human resource management
• Employees are viewed as assets
• Employees provide the competitive edge
– Right people to become more competitive on a global basis
– Right people for improving quality, innovation, and customer
service
– Right people to retain during mergers and acquisitions
– Right people to apply new information technology for e-business
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Strategic Human
Resource Management
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Building Human Capital
to Drive Performance
• Human Capital refers to the economic value of the
combined knowledge, experience, skills and
capabilities of employees
– Strategies for finding the best talent
– Enhancing skills and knowledge with training programs
– Opportunities for personal and professional development
– Compensation and benefits that support knowledge
sharing
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The Role and Value of Human
Capital Investments
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Globalization
• Globalization requires international human
resource management (IHRM)
• Managing diverse people on a global scale
• HR practices and trends are converging globally
• IHRM Managers must be culturally sensitive
• Policies and practices must be culturally
sensitive
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Trends in International Human
Resource Management
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The Impact of Federal
Legislation on HRM
• Federal laws are enacted to ensure equal
employment opportunity
• The purpose of laws is to stop discriminatory
practices
• The Equal Employment Opportunity Commission
(EEOC) was created by the Civil Rights Act of
1964
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Major Federal Laws Related to
Human Resource Management
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The Changing
Social Contract
• Changes in the business environment have changed the
social contract, a bulletin board at a company
restructuring noted:
– We can’t promise you how long we’ll be in business
– We can’t promise you that we won’t be acquired
– We can’t promise that there’ll be room for promotion
– We can’t promise that your job will exist when you reach
retirement age
– We can’t promise that the money will be available for your
pension
– We can’t expect your underlying loyalty, and we aren’t even sure
we want it
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The New Contract vs.
The Old Contract
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Innovations in HRM
• Becoming an Employer of Choice
• Using Temporary and Part-Time Employees
• Promoting Work/Life Balance
• Rightsizing the Organization
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Attracting an
Effective Workforce
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Human Resource Planning
• What new technologies are merging, and how will these
affect the work system?
• What is the volume of the business likely to be in the
next five to ten years?
• What is the turnover rate, and how much, if any, is
avoidable?
• What types of engineers will we need, and how many?
• How many administrative personnel will we need to
support the additional engineers?
• Can we temporary, part-time, or virtual workers to handle
some tasks?
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Recruiting
• Assessing Organizational Needs
• Realistic Job Previews
• Legal Considerations
• E-cruiting
• Innovations in Recruiting
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Sample Corporate
Recruiting Policy
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Selecting
• Application Form
• Interview
• Employment Test
• Online Checks
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Applications and Interviews:
What Can You Ask?
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Managing Talent
 Training and Development
 On-the-job Training
 Corporate Universities
 Promotion from Within
 Mentoring and Coaching
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Methods and Goals
of Training
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Performance Appraisal
• Accurately assess performance through the
development and application of assessment
systems such as rating scales
• Training managers to effectively use the
performance appraisal interview so managers
can provide feedback that reinforces good
performance and motivate development
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Behavior Anchored
Rating Scale
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Maintaining An
Effective Workforce
chapter11
• Managers and HRM professionals must
maintain a workforce that has been recruited
and developed:
 Compensation
 Benefits
 Termination
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Benefits
• Compensation packages are more than money
• Some benefits are required by law
– Social Security, Unemployment Compensation,
Workers’ Compensation
• Other types of benefits are optional
– Health Insurance, Vacations, Daycare, Fitness Centers
– Employees are beginning to absorb more
health insurance costs
• Many organizations offer cafeteria-plan benefits to address
the diverse needs of employees
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Termination
• Retirement
• Voluntary Departure
• Mergers & Cutbacks
• Poor Performance
• Termination dismisses poor performers
• Opportunity to learn about dissatisfaction
through exit interview
28
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