6

Chapter

Managing Human Resources

Copyright 2013 Pearson Education 7-1

Learning Outcomes
After studying this chapter, you will be able to:

Describe the key components of the human resource management process and the important influences on that process. Discuss the tasks associated with identifying and selecting competent employees. Explain how employees are provided with needed skills and knowledge.

And
Copyright 2013 Pearson Education 7-2

Learning Outcomes (cont.)

Describe strategies for retaining competent, high-performing employees. Discuss contemporary issues in managing human resources.

Copyright 2013 Pearson Education

7-3

6.1 What Is the Human Resource Management Process and What Influence it?
Human Resource Management (HRM)
The management function concerned with getting, training, motivating, and keeping competent employees

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Human resource management process

1. Identification and selection of competent employees - strategic HR planning - recruitment & downsizing - selection 2. Adapted & competent Skills, Knowledge & abilities - orientation - training & development 3. Sustaining high performance LT - Performance management (appraisal) -compensation & benefits -safety & health Legal env. main influence on HRM process

How Do Managers Identify and Select Competent Employees? Employment Planning

The process by which managers ensure they have the right numbers and kinds of people in the right places at the right time

Employee Assessment reviewing current human resource status

Human Resource Inventory - A report listing important information about employees such as name, education, training, skills, languages spoken, and so forth
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

 Job Analysis An assessment that defines jobs and the behaviors necessary to perform them Job Description A written statement that describes a job Job Specification A written statement of the minimum qualifications that a person must possess to perform a given job successfully
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

HOW DO ORGANIZATIONS RECRUIT EMPLOYEES?

Recruitment
Locating, identifying, and attracting capable applicants

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

How Does a Managers Handle Layoffs

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

How Do Managers Select Job Applicants?

Selection Process
Screening job applicants to ensure that the most appropriate candidates are hired

Reliability
The degree to which a selection device measures the same thing consistently

Validity
The proven relationship between a selection device and some relevant criterion
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Pre-Employment Testing
One criticism of written tests is that they may measure characteristics which are not related to job performance. As a result, performancesimulation tests are gaining popularity Performance-Simulation Tests
Selection devices based on actual job behaviors

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Closing the Deal

Providing only details of positive aspects of a job may lead to satisfaction problems later. Realistic Job Preview (RJP)
A preview of a job that provides both positive and negative information about the job and the company

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

How Are Employees Provided with Needed Skills and Knowledge?

How Are New Hires Introduced to the Organization? Orientation
Introducing a new employee to the job and the organization

Employee Training
A learning experience that seeks a relatively permanent change in employees by improving their ability to perform on the job
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

How Do Organizations Retain Competent, High-Performing Employees?

Performance Management System
A system that establishes performance standards that are used to evaluate employee performance

360-degree appraisal
An appraisal device that seeks feedback from a variety of sources for the person being rated

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

What Happens If an Employees Performance Is Not Up to Par?

Discipline
Actions taken by a manager to enforce an organizations standards and regulations

Employee Counseling
A process designed to help employees overcome performance-related problems

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

How Are Employees Compensated?

Compensation Administration
The process of determining a cost-effective pay structure that will attract and retain employees, provide an incentive for them to work hard, and ensure that pay levels will be perceived as fair

Skill-based Pay
A pay system that rewards employees for the job skills they demonstrate
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

 Variable Pay
A pay system in which an individuals compensation is contingent on performance

Employee Benefits
Nonfinancial rewards designed to enrich employees lives -- life and disability insurance, retirement programs, health insurance

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Determinants for pay and benefits

1. 2. 3. 4. 5. 6. 7. 8. 9. Tenure & performance Kind of job performed Kind of business Size of co. co. profitability Geo. Location Union Labor or capital intensive Management philosophy

Contemporary HRM issues

1. 2. 3. 4. 5. Downsizing Workforce diversity Sexual harassment Workplace spirituality Controlling Health care cost & pension plan cost

6.5 What Contemporary HRM Issues Face Managers?

How Can Managers Manage Downsizing?

Downsizing
The planned elimination of jobs in an organization

Layoff-Survivor Sickness
A set of attitudes, perceptions, and behaviors of employees who survive layoffs job insecurity, depression, reduced effort
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

What Is Sexual Harassment?

Sexual Harassment
Any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individuals employment, performance, or work environment

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

What Is Workplace Spirituality?

Workplace Spirituality
A spiritual culture where organizational values promote a sense of purpose through meaningful work that takes place in the context of community

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall.