Chapter 12
Human Resource
Management
12-1
Learning Objectives
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Explain the role of human resource management in
organizational strategic planning.
Describe federal legislation that affects human resource
management.
Describe the type of information collected in a job analysis.
Describe activities of human resource planning and
recruitment.
Define the concept of validity and describe the various
measures used in selecting employees.
Describe measures used in performance appraisal.
Identify issues which managers must consider in establishing
pay and benefits.
12-2
Human Resource Management
Activities which managers engage in to attract and retain
employees and ensure their performance contributes to
organizational goals effectively and efficiently.
In strategic HRM, focus on designing components of the human
resource system which
•are consistent with each other
•Recognize that employees are assets for competitive advantage
•Match the organization’s strategy and goals
12-3
Components of an HRM System
12-4
Federal Legislation
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The goal of legislation is to ensure all employees are treated
fairly in the workplace.
EEO Legislation attempts to:
 balance the pay given to men and women.
 provide employment opportunities without regard to race,
religion, national origin, and sex.
 ensure fair treatment for employees of all ages.
 avoid discrimination against disabled individuals.
Defines enforcement agencies for these laws.
12-5
Title VII of the Civil Rights Act of 1964
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Prohibits discrimination on the basis of sex, race, color,
religion or national origin in any employment condition
Unlawful discrimination includes
 Unequal treatment – apply different standards or treatment
to different employees
 Adverse impact – Practice that is applied the same to all
groups but has a differential effect on certain groups.
 Use 80 percent rule to define adverse impact
Covers employers with ≥ 15 employees; federal, state, and
local governments, unions, employment agencies.
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Civil Rights Act of 1991
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Several court cases had changed accepted case law concerning
establishment of adverse impact as proof of discrimination
Passed by Congress to return to standards accepted prior to
1989 court cases
 Employee must prove that specific practice discriminates
by adverse impact
 Employer must demonstrate that practice is job-related and
necessary for effective job performance
Allows jury trials and compensatory as well as punitive
damages.
12-7
Americans with Disabilities Act
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Prohibits discrimination based on physical or mental ability by
employers
Requires that “reasonable accommodations” be provided for
employees to assist in performance of duties
Encourages development of job descriptions focusing on what
needs to be accomplished rather than exactly how a duty is
performed
Covers employers with ≥ 15 employees; federal contractors
and federal government covered by Vocational Rehabilitation
Act (1973)
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Recruitment and Selection
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Job Analysis
Process of collecting information and making judgments about the
essential duties, tasks and responsibilities of a job and the
knowledge, skills and abilities to perform the job.
Information Collected about a Job
• Duties and Tasks – what the worker does
• Knowledge, skills and abilities – competencies the worker
must have to perform the job
• Physical tasks and work conditions
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Job Analysis
Duty and Task statements include the following:
What the worker does – use action verb
To what or whom it is done
Any materials, tools or equipment used to perform the duty
Any procedures or guidelines that must be followed
Judgments of the importance of the duty and the amount
of time spent on the duty are typically collected.
For ADA, essential duties of the job must be specified –
those duties which cannot be reassigned to others.
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Job Analysis
Duty and Task statement example for Equipment
Operator:
Equipment Operator
Build or maintain roadways through property by
scraping roadways, knocking over timber, and
spreading gravel using backhoe and medium sized
dozer.
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Job Analysis
Knowledge, Skills and Abilities
Knowledge – body of information
Skill – observable competence of psychomotor function
(typing, shooting firearm)
Ability – power to perform an activity (communicate in
writing)
Include description of KSA and level of KSA (how it is
used)
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Job Analysis
KSA example
Firefighter:
Knowledge of fire suppression agents such as foam,
water, dry chemical, carbon dioxide, halon and
pressurized water
as needed to determine which agent to apply in
different fire situations.
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Job Analysis
Physical task and Work Condition example:
Equipment Operator
Physical Task: Stoop, crouch or crawl under
equipment to dig mud out of dozer tracks and lay pipe
in ditches.
Work condition: Works around high noise levels
from equipment such as dozer and backhoe engines,
chainsaws, and grinders.
12-15
Recruiting
Activities the organization engages in to develop a pool of
qualified applicants.
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Internal recruiting or “promote-from-within.”
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External recruiting is recruiting from outside the organization.
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Realistic job previews give applicants all pertinent and
realistic information.
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Selection
Assessing the skills, abilities, and other attributes of
candidates for a job to determine if the candidate is
qualified for the job and likely to be a good performer
Attempt to predict job performance from characteristics
which can be observed before hiring
The degree to which a selection measure is useful in
predicting job performance is called validity.
Validity is measured by calculating the correlation between
the selection measures and job performance measures.
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Selection
Some Measures used to assess Knowledge, Skills and
Abilities
Background information such as application forms and
biographical questionnaires
Paper-and-Pencil tests such as ability tests, job knowledge tests,
personality tests, honesty and emotional intelligence tests
Performance tests (or work sample tests) such as assessment
centers or work simulations
Interviews
Physical Ability Tests
12-18
Selection
Background Measures
 Application Forms and Resumes collect information on
education and work experience
Weighted Application Blanks and Biographical
Questionnaires have moderate validity
•Example: length of time at current address found to be
empirically related to turnover
•Need to review items for possible adverse impact
Job Knowledge Tests and Performance Tests
Moderate validity with job performance
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Selection
General Ability Tests
 Generally moderate to high validity
 Tend to have adverse impact for some groups – need to
show that they are job related.
Personality and Honesty Tests
 Personality tests can have moderate validity if personality
traits matched to job requirements
 Honesty tests have moderate validity
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Selection
Interviews
 Unstructured interviews tend to have low validity
 Structured interviews generally can produce moderate
validity
Interview questions are pre-determined based on job
analysis information - questions to measure relevant
knowledge, skills abilities and experience with duties.
Obtain consistent information from all applicants
May reduce rater errors – first impression, influenced
by nonverbal behavior, stereotyping applicants
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Performance Appraisal
The steps of evaluating employees’ job performance and
providing feedback to the employee to develop plans for their
futures.
HRM professionals concentrate on two things:
 The accurate assessment of performance.
 Training managers to effectively use the
performance appraisal interview.
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Performance Appraisal
Objective appraisals
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Assesses performance based on facts (e.g., sales
figures).
Subjective appraisals
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Assessments based on a manager’s perceptions of
traits, behavior, or results.
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Performance Appraisal
Some Performance Appraisal Measures
 Management by Objectives
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360-Degree Feedback
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Supervisor and employees set goals and objectives for job
Performance is reviewed against progress toward goals
Ratings of performance from multiple sources – supervisor,
co-workers, subordinates, customers
Includes self-ratings
Rating Scales
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Provide ratings along various dimensions – Quality of work
rated from unsatisfactory to outstanding
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Performance Appraisal
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Performance Appraisal
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Pay and Benefits
Wage and salary systems
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Most common approach is job-based pay – pay for specific duties
Skill-based pay – employees with higher skills receive higher pay
Compensation equity
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Pay Level – salaries are competitive with other organizations; established
through salary surveys
Pay Structure – salaries of jobs within organization are in hierarchy with
jobs requiring more responsibility and skill being paid more; established
through job evaluation
Pay for performance
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Ties at least part of salary to performance – merit pay, bonuses,
commissions, profit-sharing, team incentives
Gives employees incentives to align work behaviors with organizational
goals
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