Human Resource Management
Organizational Effectiveness
Development of Human
Resource Management
Parallels the protection and treatment of workers
Social Welfare Department
1.
a.
b.
c.
4.
1880 – 1935
Helping injured workers and their families
Company unions: parties and social events
Worker health
a.
b.
c.
d.
e.
f.
Labor Relations Department
2.
a.
b.
1935 – 1950
Collective bargaining
Contract administration
Industrial Relations Department
3.
a.
b.
c.
d.
1950 – 1970
Labor relations
Benefits and vacations
Testing and selection
Compensation systems
Personnel Department
5.
1970 – 1990
Legal compliance
Staffing
Performance evaluation
Compensation and benefits
Employee relations
Safety and health
Human Resource Management
Staffing Model
Human
Resource
Planning
Recruitment
Strategic
Business
Planning
Human
Resource
Planning
Long-range
planning
Strategic Planning
Environmental
Scanning
Middle-range
planning
Operational Planning
Forecasting
Short-range
planning
Goals and Objectives
Projected Staffing
Requirements
Recruitment Planning
Applicant Search
Selection
Preliminary Screening
Selection Decision
Placement
Forecasting Employment
Needs
1.
2.
3.
4.
5.
Budgeting
Work-load Analysis
Unit Demand
Expert Opinion
Trend Predictions
Example of Predicting Labor Supply and Required New
Hires for a Hotel Chain
Supply Analysis
Supply Demand Comparison
A
% Quit
(rounded)
(1996-1998)
B
Number of
Present
Employees
C
Projected
Turnover by
2000
D
Employees
Left by 2000
E
Projected
Labor Demand
in 2000
F
Projected New
Hires in 2000
General Manager
38
25
10
15
32
17
Resident Manager
77
9
7
2
12
10
Food/Beverage Director
47
23
11
12
29
17
Controller
85
25
21
4
32
28
Assistant Controller
66
14
9
5
18
13
Chief Engineer
81
24
16
8
31
23
Director of Sales
34
25
9
16
32
16
Sales Manager
68
45
30
15
58
43
Convention Manager
90
14
13
1
18
17
Catering Director
74
19
14
5
24
19
Banquet Manager
60
19
12
7
24
17
Personnel Director
43
15
6
9
19
10
Restaurant Manager
89
49
44
5
63
58
Executive Chef
70
24
17
7
31
24
Sous Chef
92
24
22
2
31
29
Executive Housekeeper
63
25
16
9
32
23
379
257
122
486
364
Key Positions
Total Employees
Typical Steps in the Selection Process
Placement on the job
Selection decision
Final interview
Drug testing
Reference checks
Employment testing
Interviews
Application blanks
Preliminary screening
Reject applicant
Information that Generally Should Not Be
Used in Employment Decisions
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Height and weight
Marital Status/Number of Children/Child care
Educational level
English language skill
Names of friends or relatives working for the employer
Arrest records
Conviction records
Discharge from military service
Citizenship
Economic Status
Availability to work weekends/holidays
Employers must show that there is a “business necessity” to use these
criteria. For example, an employer would probably be able to discriminate in
hiring a teller who had been convicted of embezzling.
3D Model of
an
Organization
Source: E.H. Schein, “The Individual, the
Organization, and the Career: A
Conceptual Scheme,” Journal of Applied
Behavioral Science (1971): 401-426.)
Methods of Socialization
Custodial Behavior
1.
2.
3.
4.
5.
6.
7.
Formal
Collective
Sequential
Variable
Serial
Tournament
Divestiture
Innovative Behavior
versus
versus
versus
versus
versus
versus
versus
Informal
Individual
Nonsequential
Fixed (Time)
Disjunctive
Contest
Investiture
Professional Career Stages:
Central Activities, Relationships, and
Psychological Issues in the Four Career Stages
Stage I
Stage II
Stage III
Stage IV
Central
Activity
Helping
Learning
Following
directions
Independent
contributor
Training
Interfacing
Shaping the
direction of
the
organization
Primary
Relationship
Apprentice
Colleagues
Mentor
Sponsor
Major
Dependence
Psychological
Issues
Independence Assuming
responsibility
for others
Exercising
power
Assessment Phase
Assess training
needs and resources
A Systems Model
for Training
Identify training
objectives
Develop
criteria
Training and Development Phase
Select training
Pretest
methods and
trainees
learning principles
Conduct
training
Feedback
Evaluation Phase
Compare training
Monitor
outcomes against
training
criteria
Solving Performance Problems
1.
2.
3.
4.
5.
6.
Describe the situation
Diagnose whether it’s an ability or motivation
problem
Use joint problem solving to come up with
solutions to the problem
Communicate consequences for the problem
Handle emergent problems (but don’t get
deflected from the core problem)
Decide who will do what by when and follow up
Progressive Discipline
1.
2.
3.
4.
5.
Verbal Warning
Verbal Reprimand
Written Reprimand
Suspension
Discharge
Solving the ‘Surplus Personnel’
Problem
1.
2.
3.
4.
5.
Layoffs
Attrition
Reduced Hours/Job Sharing
Unpaid Vacations
Early Retirements
High Performance Work
Practices – Financial
Performance
Sample: 968 U.S. firms with 100 or more employees
Financial Data: 10-K reports with the SEC
High Performance Work Practices: What proportion of the workforce participates in:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Formal information sharing program
Formal job analysis
Hiring from within
Employee attitude surveys
Quality of Work Life Programs
Company incentive, profit-sharing, or gain-sharing plans
Formal grievance and complaint procedures
Pre-employment testing
Performance appraisals are used to determine promotion
Formal performance appraisals
Promotion by seniority or performance
Selection ratio for hiring
What is the average number of hours of training received per employee per year?
High Performance Work
Practices - Results
A one standard deviation increase in high
performance work practices is associated
with:
7.05% decrease in turnover
 $27,044 increase in sales annually per employee
 $18,641 increase in market value annually per
employee
 $3,814 increase in profits annually per employee

Source: Mark A. Huselid, “The Impact of Human Resource Management Practices on Turnover,
Productivity, and Corporate Financial Performance.” Academy of Management Journal, vol 38 (1995): 635-672