bateman chapter 10 human resource management

human resource management bateman book slide chaptyer 10

1. Human Resource Management CHAPTER 10 © 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.

2. Learning Objectives 10-1 Discuss how companies use human resource management to gain competitive advantage. 10-2 Give reasons companies recruit both internally and externally for new hires. 10-3 Identify various methods for selecting new employees. 10-4 Evaluate the importance of spending on training and development. 10-5 Discuss options for who appraises an employee’s performance. 10-6 Describe the fundamental aspects of reward systems. 10-7 Summarize how unions and labor laws influence human resources management. 2

3. Human Resource Management (HRM) T he formal systems for the management of people within an organization. A pervasive aspect of organizational and managerial life. It has historically been known as personnel management. 3

4. Strategic Human Resource Management Strategic impact of human resources: Creates value. Is rare. Is difficult to imitate. Is organized. H uman capital is the knowledge, skills, and abilities of employees that have economic value. 4

5. The HR Planning Process Demand Forecasts Determining how many and what types of people are needed. Labor Supply Forecasts Estimating the number and quality of current employees and the available external supply of workers. Reconciling Supply and Demand Balancing a labor deficit or a labor surplus. Job Analysis Determine what is done on a given job and what should be done on that job. 5

6. Exhibit 10.1 An Overview of the HR Planning Process Planning Programming Evaluating HR environmental scanning Labor markets Technology Legislation Competition Economy HR Planning Demand forecast Internal labor supply External labor supply Job analysis HR activities Recruitment Selection Diversity and inclusion Training and development Performance appraisal Reward systems Labor relations Results Productivity Quality Innovation Satisfaction Turnover Absenteeism Health 6

7. Social Entrepreneurship Is Social Enterprise Becoming Big Business? More social enterprises than ever are being created and brought to scale. Forty-two percent of existing social enterprises were created in the past ten years. Assume you are the manager of a social enterprise. How would you go about growing your business? To what degree do you see commercial businesses adopting the social enterprise model? 7

8. Staffing the Organization Recruitment The development of a pool of applicants for jobs in an organization. Internal and external. Selection Choosing from among qualified applicants to hire. Selection Practices Applications and résumés. Interviews. Reference checks. Background checks. Personality tests. Drug testing. Cognitive ability tests. Performance tests. Integrity tests. 8

9. Interviews Structured interview Selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers. Situational: uses hypothetical situations. Behavioral: explore what candidates have done in the past. 9

10. Reliability and Validity Reliability : the consistency of test scores over time and across alternative measurements. Validity : the degree to which a selection test predicts or correlates with job performance. 10

11. Workforce Reductions Outplacement The process of helping people who have been dismissed from the company regain employment elsewhere. Employment-at-will The legal concept that an employee may be terminated for any reason. A termination interview is a discussion between a manager and an employee about the employee’s dismissal. 11

12. Exhibit 10.3 Advice on Termination Do’s Don’ts Make termination the last step in a clear and fair process, being certain you have the facts. Don’t spring a termination on an employee as a total surprise. Be sure the person terminating the employee is the employee’s direct supervisor. Don’t start a meeting unprepared, causing the terminated employee to wait awkwardly while you find answers or call in an HR representative. Be prepared with answers to basic questions such as the official end date and any severance benefits. Don’t beat around the bush; state the termination simply and briefly. Consult with the human resource department to identify any benefits available; give the employee a written list of information about benefits and policies. Don’t get caught up in responding to the employee’s emotions or views about fairness; focus on practical realities including the need to move on. Invite a trained HR representative to attend the meeting. Don’t argue with the employee or apologize. Listen respectfully. Don’t offer to help the employee find another job, if you cannot honestly give a good reference. 12

13. Legal Issues and Equal Employment Opportunity Adverse impact When a seemingly neutral employment practice has a disproportionately negative effect on a protected group. 13

14. U.S. Equal Employment Laws Fair Labor Standards Act (1938) Equal Pay Act (1963) Title VII of Civil Rights Act (1964) Executive Orders 11246 and 11375 (1965) Age Discrimination in Employment Act (1967) Vocational Rehabilitation Act (1973) Americans with Disabilities Act Amendments Act (2008) Civil Rights Act (1991) Family and Medical Leave Act (1991) 14

15. Training and Development Training Teaching lower-level employees how to perform their present jobs. Development Helping managers and professional employees learn the broad skills needed for their present and future jobs. Needs assessment An analysis identifying the jobs, people, and departments for which training is necessary. 15

16. Types of Training Orientation training Training designed to introduce new employees to the company and familiarize them with policies, procedures, culture, and the like. Team training Training that provides employees with the skills and perspectives they need to collaborate with others. Diversity training Programs that focus on identifying and reducing biases against people with differences and developing the skills needed to manage a diversified workforce. 16

17. Performance Appraisal Performance appraisal (PA) is the assessment of an employee’s job performance. Generates information. Used for development. Assess three categories of performance: Traits. Behaviors. Results. 17

18. Exhibit 10.5 Example of BARS for Evaluating Team Member Effectiveness Outstanding 5 Made critical contributions to the team’s final product. Came to all team meetings prepared. Completed work in a timely and high-quality manner. Offered to help teammates. Took on extra work. 4 Made important contributions to the team’s final product. Came to all team meetings prepared. Completed work in a timely and high-quality manner. Average 3 Made a solid contribution to the team’s final product. Came to all team meetings prepared. Completed work in a generally timely and acceptable-quality manner. 2 Made a moderate contribution to the team’s final product. Missed some team meetings and was inadequately prepared for many. Completed work sporadically and it lacked quality. Poor 1 Made no meaningful contribution to the team’s final product. Missed most team meetings and deadlines. Did low-quality work. Team member effectiveness includes several areas, including how much each member contributes to the team’s work. SOURCE: Adapted from Ohland , M., Loughry, M. and Woehr , D., et al., “The Comprehensive Assessment of Team Member Effectiveness: Development of a Behaviorally Anchored Rating Scale for Self- and Peer Evaluation,” Academy of Management Learning & Education 11 (2012), pp. 609–30. 18

19. MBO Management by objectives (MBO) A process in which objectives set by a subordinate and a supervisor must be reached within a given time period. Avoids biases and measurement difficulties of trait and behavioral appeals. Employee likely to understand and be more committed to reaching objectives. 19

20. Who Should Do the Appraisal? 360-degree appraisal Process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance. Provides a more complete picture of employee’s strengths and weaknesses. Employee motivated to improve their ratings. Employees not always willing to rate their colleagues harshly. imtmphoto /Shutterstock 20

21. Exhibit 10.6 A PA Interview for Underperforming Employees Step Action 1. Summarize the employee’s performance. Describe the performance in behavioral or outcome terms, such as sales or absenteeism. Don’t say the employee has a poor attitude; rather, explain which employee behaviors indicate a poor attitude. 2. Describe the expectations and standards and be specific. 3. Determine the causes for the low performance; get employee’s input. 4. Discuss solutions to the problem with the employee playing a major role. 5. Agree to a solution. As a supervisor, you have input into the solution. Raise issues and questions but also provide support. 6. Agree to a timetable for improvement. 7. Document the meeting. 8. Follow up with meetings if needed. 21

22. Pay Decisions Three types of decisions: Pay level: high, average, or low. Pay structure: pricing different jobs within organization. Individual pay: different pay rates for different people holdings jobs of similar worth. 22

23. Exhibit 10.7 Factors Affecting the Wage Mix Internal Factors External Factors Compensation policy of organization Conditions of labor market Worth of job Cost of living Employee's relative worth Collective bargaining Employer's ability to pay Legal requirements Snell, S. A. and Bohlander , G. W., Managing Human Resources, 16th ed. Boston, MA: Cengage Learning, 2012 23

24. Exhibit 10.8 Pay Structure Sherman, A., Bohlander , G. and Snell, S., Managing Human Resources, 11th ed. Boston, MA: South-Western, 1998. Access the text alternative for slide image 24

25. Incentive Systems and Variable Pay Various incentive systems have been devised to encourage and motivate employees to be more productive. Individual incentive plans. Group incentive plans. Profit-sharing plans. 25

26. Executive Pay and Stock Options Stock options are the fastest-growing part of executive compensation. Gives holder right to purchase shares at a specified price. Aligns managers’ interests with that of shareholders. 26

27. Employee Benefits Three required benefits: Workers’ compensation. Social Security. Unemployment insurance. Cafeteria benefit program: Allows employees to choose from a menu of options to create a benefit package tailored to their needs. 27

28. Legal Issues in Compensation and Benefits Fair Labor Standards Act. Equal Pay Act (EPA) of 1963. Equal vs. comparable work. Pregnancy Discrimination Act of 1978. Employee Retirement Income Security Act (ERISA) of 1974. Occupational Safety and Health Act (OSHA) of 1970. 28

29. Labor Relations Labor relations The system of relations between workers and management. National Labor Relations Act, or Wagner Act (1935). Labor-Management Relations Act, or Taft-Hartley Act (1947). Labor-Management Reporting and Disclosure Act, or Landrum-Griffin Act (1959). 29

30. Exhibit 10.9 Determinants of Union Voting Behavior Access the text alternative for slide image 30

31. Collective Bargaining Union shop An organization with a union and a union security clause specifying that workers must join the union after a set period of time. Arbitration Use of a neutral third party to resolve a labor dispute. Right-to-work Legislation that allows employees to work without having to join a union. 31

32. Exhibit 10.10 Decline in Union Membership, 1983-2018 SOURCE: Data adapted from the Bureau of Labor Statistics, “Union Membership Rate 10.5 Percent in 2018, Down from 21.1 Percent in 1983,” press release, January 25, 2019, https://www.bls.gov/opub/ted/2019/union-membership-rate-10-point-5-percent-in-2018-down-from-20-point-1-percent-in-1983.htm?view_full. Access the text alternative for slide image 32

33. Management in Action Google: Hiring for Change Google is focused on creation and innovation. Projects and roles at Google are fluid and dynamic, which requires a workforce that is able to adapt and change according to ever-evolving demands. HR specialists look to hire generalists, not specialists. What are your thoughts about the preference of generalists over specialists? What benefits and drawbacks do you see in this approach? Do you think Google’s HR strategy will enable it to maintain a competitive advantage? Why or why not? 33

34. In Review 1. Discuss how companies use human resource management to gain competitive advantage. 2. Give reasons companies recruit both internally and externally for new hires. 3. Identify various methods for selecting new employees. 4. Evaluate the importance of spending on training and development. 5. Discuss options for who appraises an employee’s performance. 6. Describe the fundamental aspects of reward systems. 7. Summarize how unions and labor laws influence human resource management. 34

35. End of Main Content © 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.