The Environmental Context of HRM: Human Resource Management (HRM)

The Environmental Context of HRM
Human Resource Management (HRM)

The set of organizational activities directed at
attracting, developing, and maintaining an effective work force.
The Strategic Importance of HRM

HRM is increasingly important as firms realize the
value of their human capital in improving productivity.

HRM is critical to bottom-line performance of the firm. HR planning is now part of the strategic planning
process.
141
Selecting Human Resources (contd)

Interviews
Interviews can be poor predictors of job success due to
interviewer biases. Interview validity can be improved by training interviewers and using structured interviews.
142
Selecting Human Resources (contd)

Assessment Centers
Are a popular method for selecting that is particularly
good for selecting current managers for promotion. Provides content validation for major parts of the managerial job.
Other Techniques
Polygraphs have declined in popularity due to passage
of the Polygraph Protection Act. Employers now use physical exams, drug tests, and credit checks to screen prospective employees.
143
Developing Human Resources

Training and Development
Training
Teaching operational or technical employees how to do the job for which they were hired. Teaching managers and professionals the skills need for both present and future jobs.
Development
144
14.2 The Training Process

Assess training needs Who needs to be trained? What do they need to know? What do they already know? Set training objectives Specific Measurable
Plan training evaluation Did trainees like the training? Can they meet the training objectives? Do they perform better on the job?
Develop training program Content Location Methods Trainers Duration
Conduct training
Evaluate training
Modify training program based on evaluation
145
Developing Human Resources (contd)

Assessing Training Needs
Determining what needs exist is the first step in
developing a training plan.

Common Training Methods
Lectures
Role play and case studies
On-the-job and vestibule training
Web-based and electronic training
146
Developing Human Resources

Evaluation of training
Training and development programs should always be
evaluated. Approaches include measuring relevant job performance criteria before (pretest) and after the training (post-test) to determine the effect of training.
147

Performance Appraisal
A formal assessment of how well workers do their jobs.
Reasons for performance appraisal

Validates the selection process and the effects of
training.
Aids in making pay raise, promotion, and training
decisions.
Provides feedback to workers to improve their
performance and plan future careers.
148

Objective Measures of Performance
Can be actual output (units produced), scrap rate,
dollar volume of sales, and claims processed.

Can become contaminated by outside factors resulting
in opportunity bias where some have a better chance to perform than others.
Special performance tests assess each employee
under standardized conditions.

Performance tests measure ability and not motivation.
149

Judgmental Methods of Appraisal
Rankingcompares employees to each other.

Difficult to do with large numbers of employees. Difficult to make comparisons across work groups. Employees are ranked only on overall performance. Do not provide useful information for employee feedback.
Ratingcompares employee to a fixed standard.

Graphic rating scales Behaviorally-anchored rating scale (BARS)
1410
14.3 Graphic Rating Scales for a Bank Teller
1411
14.4 Behaviorally Anchored Rating Scale
1412
Rater Errors in Performance Appraisal
Recency error
Errors of leniency and strictness
Halo error
1413

Performance Feedback
Is best given in a private meeting between the
employee and immediate supervisor.

Discussion should focus on the facts:

The assessed level of performance How and why the assessment was made. How the employees performance can be improved.
Properly training managers can help them conduct
more effective feedback interviews.
1414

360 degree Feedback
Managers are evaluated by everyone around them:

Boss Subordinates Peers
Provides a richer array of performance
information on which to base an appraisal.
1415
Maintaining Human Resources

Determining Compensation
Compensation
The financial remuneration given by the organization to its employees in exchange for their work. Wages Salary Incentives Provide means to maintain a reasonable standard of living. Provide a tangible measure of the value of the individual to the organization.
Purposes of compensation

1416
Compensation Decisions
Wage-level Decision
Is a management policy decision to pay above, at, or
below the going rate for labor in an industry or geographic area.
Factors affecting the wage-level decision:

The size and current success of the firm. The level of unemployment in the labor force.
Area wage surveys

Provide information about maximum, minimum, and
average wages for a particular job in a labor market.

. 1417
Compensation Decisions (contd)

Wage-structure decision
Job evaluations Wage surveys data and the wage structure
Individual wage decision

Factors such as seniority, initial qualifications,
individual merit, and labor market conditions influence wage decisions.
1418
Maintaining Human Resources (contd)

Determining Benefits
Benefits (Indirect compensation)
Things of value other than compensation that an organization provides to its workers. The average company spends an amount equal to more than one-third of its cash payroll on employee benefits. A good benefit plan encourages employees to stay with the company and attracts new employees. Benefits do not necessarily stimulate high performance.
1419
Managing Benefits Effectively
Shop carefully for best-cost providers Avoid redundant coverage Provide only benefits that employees want
1420

Determining Benefits (contd)
Types of benefits

Pay for time not worked Insurance Employee service benefits Flexible plans that provide basic coverage and allow employees to choose the additional benefits they want up to the cost limit set by the organization. On-site childcare, mortgage assistance, and paid-leave programs.
1421
Cafeteria benefit plans
Other benefits
Managing Labor Relations

Labor Relations
The process of dealing with employees when they
are represented by a union. Organizations prefer employees remain nonunion because unions limit managements freedom.
Why Unions Have Declined

Increased standards of living made union
membership less important. Unionized manufacturing industries have declined. Globalization of business has caused many unionized jobs to be lost overseas.
1422
Managing Labor Relations (contd)
Avoiding Unionization
Provide fair treatment with clear standards
Provide a complaint and appeal system
Avoid favoritism
1423
14.5 The Union-Organizing Process
1424
Managing Labor Relations (contd)

Collective Bargaining
The process of agreeing on a satisfactory labor
contract between management and labor.
The contract contains agreements about wage, hours, and working conditions and how management will treat employees.
Grievance Procedure
The step-wise means by which a labor contract is
enforced.
Grievances are filed on behalf of an employee by the union when it believes the employees have not been treated fairly under the contract.
1425
Managing Knowledge Workers

Knowledge Workers
Contribute to an organization based on what they know
(e.g., computer scientists, engineers, and physical scientists).
Characteristics of Knowledge Workers

Tend to work in high-technology areas. Are abstract knowledge experts. Like to work independently and identify strongly with
their professions. Have skills that require continual updating and additional training.
1426
Managing Knowledge Workers (contd)

Knowledge Worker Labor Markets
Current demand is strong for knowledge workers.

External labor market pressures Internal labor market pressures
1427
Contingent and Temporary Workers

Trends in Contingent and Temporary Workers
Consistent increases in contingent workers10% of
the U.S. workforce is either contingent or temporary.
Challenges in Managing Contingent Workers

Integrating contingent workers into the organization in
a coordinated fashion.
Understanding their advantages and disadvantages. Calculating labor-cost savings of contingent workers. Deciding how similarly contingent employees will be
treated relative to permanent employees.

1428

The Environmental Context of HRM: Human Resource Management (HRM)

Uploaded by

Copyright:

Available Formats

The Environmental Context of HRM: Human Resource Management (HRM)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

The Environmental Context of HRM: Human Resource Management (HRM)

Uploaded by

Copyright:

Available Formats

The Environmental Context of HRM

Human Resource Management (HRM)

attracting, developing, and maintaining an effective work force.

The Strategic Importance of HRM

value of their human capital in improving productivity.

Selecting Human Resources (contd)

Selecting Human Resources (contd)

Developing Human Resources

14.2 The Training Process

Develop training program Content Location Methods Trainers Duration

Modify training program based on evaluation

Developing Human Resources (contd)

developing a training plan.

Role play and case studies

On-the-job and vestibule training

Web-based and electronic training

Developing Human Resources

Developing Human Resources (contd)

Reasons for performance appraisal

performance and plan future careers.

Developing Human Resources (contd)

dollar volume of sales, and claims processed.

under standardized conditions.

Developing Human Resources (contd)

Ratingcompares employee to a fixed standard.

Graphic rating scales Behaviorally-anchored rating scale (BARS)

14.3 Graphic Rating Scales for a Bank Teller

14.4 Behaviorally Anchored Rating Scale

Developing Human Resources (contd)

Rater Errors in Performance Appraisal

Errors of leniency and strictness

Developing Human Resources (contd)

employee and immediate supervisor.

Properly training managers can help them conduct

more effective feedback interviews.

Developing Human Resources (contd)

Boss Subordinates Peers

Provides a richer array of performance

information on which to base an appraisal.

Maintaining Human Resources

below the going rate for labor in an industry or geographic area.

Factors affecting the wage-level decision:

Area wage surveys

average wages for a particular job in a labor market.

Compensation Decisions (contd)

Individual wage decision

individual merit, and labor market conditions influence wage decisions.

Maintaining Human Resources (contd)

Maintaining Human Resources (contd)

Managing Benefits Effectively

Maintaining Human Resources (contd)

Cafeteria benefit plans

Managing Labor Relations

Why Unions Have Declined

Managing Labor Relations (contd)

Provide fair treatment with clear standards

Provide a complaint and appeal system

14.5 The Union-Organizing Process

Managing Labor Relations (contd)