Chapter 11
Managing Human Resource
Systems
Dr. Ellen A. Drost
1
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The Human Resource Management Process
Attracting Qualified
Employees
Developing Qualified
Employees
Recruiting
Selection
Training
Performance Appraisal
Keeping Qualified
Employees
Compensation
Employee Separation
2
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Beyond the Book
Human Resource Planning
Supply and Demand
of
Human Resources
Human Resource
Information
Systems
Internal and External
3
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Beyond the Book
Internal Forecast Factors
 New positions

 New equipment and 
technology

 Eliminated positions 
 Terminations
 Turnover
Deaths
Promotions
Organization’s mission

Productivity of current
employees

Skills/education of
current employees
 Retirements
 Resignations
Transfers
4
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Beyond the Book
External Forecast Factors
•
Demographics of
labor supply

Unemployment rate
•

Labor unions
Geographic
population shifts

•
Availability of
applicants
Manufacturing-to
service-to
information-based
economy shift

Technological
advances

Competitors

Growth of businesses
•
Economic conditions
5
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HRM Process: Recruiting
Job Analysis
and
Recruiting
Internal
Recruiting
External
Recruiting
2
6
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Job Analysis and Recruiting
Recruiting
Selection
Training
Performance
Separation
Appraisal
HR Subsystems
Job Description
tasks, duties, responsibilities
2.1
Job Specification
qualifications, skills.
Job Analysis
information on work-related
aspects of the job
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7
Internal Recruiting
2.2
• A pool of applicants who already
work for the company
• “Promotion from within”
• Improves employee morale and
motivation
• Reduces employer time and cost
• Job posting is the procedure for
internal advertising
• Career path is a planned
sequence of jobs
8
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Methods for External
Recruiting
•
•
•
•
•
•
•
Advertising
Employee referrals
Walk-ins
Outside organizations
Employment services
Special events
Internet job sites
2.3
9
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HRM PROCESS: Selection
Application Forms
and Résumés
References and
Background Checks
Selection
Tests
Interviews
3
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References and Background Checks
• References or background checks are not always
provided by previous employers
• Making background checks more effective
–
–
–
–
dig deeper for more information
get permission in writing
document all checks
consider hiring private investigators
11
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Selection Tests
Specific
Ability
Assessment
Centers
Cognitive
Ability
Selection
Tests
Biographical
Data
Work
Sample
Personality
3.3
12
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Interviews
• Unstructured Interviews
– free-flow of questions
• Structured Interviews
– interviewer uses standard set of prepared
questions
• Semi-structured Interviews
3.4
– some structure combined with interviewer
judgement
13
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Topics Employers Should Avoid
1. Children
2. Age
3. Disabilities
4. Physical Characteristics
5. Name
6. Citizenship
7. Lawsuits
8. Arrest records
9. Smoking
10. AIDS/HIV
3.1
14
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Questions in Structured Interviews
Situational Questions
Behavioral Questions
Background Questions
Job-Knowledge Questions
3.4
15
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HRM PROCESS: Training
Training
Needs
Training
Methods
Training
Evaluation
4
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Determining Training Needs
Identify
Performance
Deficiencies
Listen to
Customer
Complaints
Conducting
Needs
Assessments
Survey
Employers
and Managers
Test Employee
Skills and
Knowledge
4.1
17
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Training Methods
Impart Information
and Knowledge
• films and videos
• lecture
• planned readings
Develop Analytical
and Problem-Solving
Skills
• case studies
• coaching and mentoring
• group discussions
Practice, Learn, or
Change Job
Behaviors
•
•
•
•
All of the above
• Computer-based learning
on-the-job training
role-playing
simulations and games
vestibule training
4.2
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Evaluating Training
Reactions
how satisfied trainees were
with the program
Learning
how much employees improved
their knowledge or skills
Behavior
how much employees actually changed
their on-the-job behavior
Results
how much training improved
job performance
4.3
19
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HRM PROCESS:
Performance Appraisal
Measuring
Job
Performance
5
20
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Measuring Job Performance:
Common Rating Errors
• Central tendency
– all workers are rated as being “average”
• Halo error
– all workers are rated as performing at
the same level in all parts of their jobs
• Leniency error
– all workers are rated as performing at a
high level
5.1
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Performance
Appraisal Measures
• Objective performance measures
– quantifiable outcomes (output, scrap, waste, sales,
customer complaints, or rejection rates)
• Subjective performance measures
– trait rating scales
– behavioral observation scales (BOS)
5.1
22
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Subjective Performance Appraisal Scales
5.1
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HRM PROCESS:
Compensation
Compensation
Decisions
Employment
Benefits
6
24
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Pay-Level Decisions
• Job evaluation is used to determine the worth of jobs
– pay the “going rate”
• Should workers be paid at, below, or above current
market wage?
– attracts a larger, more qualified pool of applicants
– increases the rate of job acceptance
– decreases the time it takes to fill positions
– increases the time that employees stay
6.1
25
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Pay-Structure Decisions
 Hierarchical pay structures
 big differences from one pay level to another
 work best for independent work
 Compressed pay structures
 fewer pay levels with smaller differences in pay
between pay levels
 work best for interdependent work
6.1
26
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Beyond the Book
Employment Benefits
• Compensation other than direct wages
• Employee benefits are legally mandated:
– Social Security
– worker’s compensation
– unemployment insurance
• Cafeteria benefit plans
– employees can select from optional benefits
• Payroll deductions
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