CHAPTER 12 – Human Resource Management  Hiring the right people for improving

quality, innovation, and customer

Human Resource Management
service
- The design and application of formal  Knowing the right people to retain after
systems in an organization to ensure the
effective and efficient use of human
talent to accomplish organization goals.
- Includes activities undertaken to attract,
develop, and maintain an effective
workforce.
- Managers have to find the right people,
place them in positions where they can
be most effective, and develop them so
they contribute to the company’s
success.
Human Capital
- Top factor in maintaining competitive
success, which reflects the critical role
of managing talent.
- The economic value of the combined mergers, acquisitions, or downsizing
knowledge, experience, skills, and  Hiring the right people to apply new
capabilities of employees.
Three Key Elements in the Strategic
Approach to HRM
(1) All managers are involved in
managing human resources
(2) Employees are viewed as assets.
No strategy can be implemented
effectively without the right
people to put it into action.
Employees give a company its
competitive edge.
(3) HRM is a matching process,
integrating the organization’s
strategy and goals with the correct
approach to managing human
capital
Strategic Issues of Particular Concern to
Managers
 Hiring the right people to become
more competitive on a global basis information technology for e-business
Building Human Capital to Drive Performance

The Impact of Federal Legislation on HRM
- HR managers have to understand and
apply a variety of federal laws that
prohibit discrimination, establish safety
standards, or require organizations to
provide certain benefits.
Discrimination: when hiring and promotion
decisions are made based on criteria that are
not job relevant; for example, refusing to hire a
black applicant for a job he is qualified to fill
and paying a woman a lower wage than a man
for the same work are discriminatory acts.
Affirmative Action: requires that an employer
take positive steps to guarantee equal
employment opportunities for people within
protected groups.
The Changing Social Contract
Employer Brand: similar to a product brand
except that rather than promoting a specific
product, its aim is to make the organization
seem like a highly desirable place to work.
Contingent Worker: people who work for an
organization but not on a permanent or full-
time basis. Many of these workers are
‘involuntary’ temporary or part-time workers
who lost their jobs during the recession.
Telecommuting: using computers and
telecommunications equipment to do work
without going to an office.

^ The Changing Social Contract ^
Matching Model – where the organization and
the individual attempt to match the needs,
interests, and values that they offer each other.
Human Resource Planning
- The forecasting of HR needs and the
projected matching of individuals with
expected vacancies.
- What new technologies are emerging,
and how will these affect the work
system?
- What is the volume of the business
likely to be in the next five to ten years?
- What is the turnover rate and how
much, if any, is avoidable?
Recruiting – activities or practices that define
the characteristics of applicant to whom
selection procedures are ultimately applied. It
is sometimes referred to as talent acquisition to
reflect the importance of
the human factor in the
organization’s success.
Many organizations use
internal recruiting or
promote-from-within
policies, to fill their high-
level positions.
Internal Recruiting – less
costly than an external
search, and generates higher employee
commitment, development, and satisfaction
because it offers career advancement to
employees rather than outsiders.
External Recruiting –
recruiting newcomers from
outside the organization;
advantageous because
applicant are provided by a
variety of outside sources,
including advertising, state
employment services,
online recruiting services,
private employment
agencies (headhunters), job
fairs, and employee
referrals.
Job Analysis: a systematic process of gathering
and interpreting information about the
essential duties, tasks, and responsibilities of a
job, as well as about the context within which
the job is performed; managers or specialists
ask about the work activities and work flow, the
degree of supervision given and received in the
job, knowledge and skills needed, performance
standards, working conditions, and so forth.
Job Description: a clear and concise summary
of the specific tasks, duties, and responsibilities
and;
Job Specification: outlines the knowledge,
skills, education, physical abilities, and other
characteristics needed to perform the job concealed when answering structured
adequately questions.
- Panel interview: the candidate meets
Realistic Job Previews: gives applicants all
with several interviewers who take
pertinent and realistic information – positive
turns asking questions.
and negative – about the job and the
- Extreme interviewing: test job
organization
candidates’ ability to handle problems,
Internships: an arrangement whereby an cope with change, and work well with
intern, usually a high school or college student, others.
exchanges his or her services for the
opportunity to gain work experience
and see whether a particular career
is appealing.
Internships are an
increasingly popular approach to
recruiting because they provide a
way to ‘test-drive’ a potential
employee
Selection: process of assessing the
skills, abilities, and other attributes
of applicants in an attempt to
determine the fir between the job
and each applicant’s characteristics
Application Form: a selection device
that collects information about the
applicant’s education, previous work
experience, and other background
characteristics
Employment tests: assess candidates on
Interview various factors considered important for the
job to be performed and include cognitive
- Used as a selection technique in almost ability tests, physical ability tests, and
every job category in nearly every personality tests
organization.
- Structured interview: uses a set of Assessment center: used to select individuals
standardized questions that are asked of with high managerial potential based on their
every applicant so comparisons can be performance on a series of simulated
made easily. managerial tasks.
- Nondirective interview: the interviewer
Work sample tests: evaluate their performance
asks broad, open-ended questions and
in completing simulated tasks that are a part of
permits the applicant to talk freely with
the job
minimal interruption, in an attempt to
bring to light information, attitudes, and *One way in which HR managers gauge an
behavioral characteristics that might be applicant’s suitability for an open position is by
checking what the applicant says on social
media sites. Maryland was the first state to Behaviorally anchored rating scale (BARS):
pass a law making it illegal to ask job applicants performance evaluation technique that relates
for their social networking passwords. and employee’s performance to specific job-
related incidents.
Compensation: refers to all monetary
TRAINING AND DEVELOPMENT
payments and all nonmonetary goods or
Training and development programs represent benefits used to reward employees
a planned effort by an organization to facilitate
Job evaluation: process of determining the
employees’ learning of job-related skills and
value of jobs within an organization through an
behaviors. Training typically refers to teaching
examination of job content
people skills needed in their current job,
whereas development refers to teaching people Wage and salary surveys: show what other
broader career skills organizations pay incumbents in jobs that
match a sample of key jobs selected by the
On-the-job Training: most common method of
organization
training; in which an experienced employee is
asked to teach a new employee how to perform Pay-for-performance: also called incentive pay,
job duties. means tying at least a portion of compensation
to employee effort and performance benefits
Social learning: using social media tools to
make up a large portion of labor costs in the
network and lean informally
US. During recession, many organizations have
Corporate University: in-house training and cut benefits that are not required by law
development facility that offers broad-based
Rightsizing: also called downsizing, refers to
learning opportunities for employees
reducing the company’s workforce intentionally
Performance Appraisal: process of observing to the point where the number of employees is
and evaluating an employee’s performance, deemed right for the company’s current
recording the assessment, and providing situation. If not managed effectively and
feedback humanely, rightsizing can lead to decreased
morale and performance.
360-degree feedback: uses multiple raters,
including self-rating, to appraise employee Exit interview: interview conducted with
performance and guide development departing employees to determine reasons for
their departure and learn about potential
*Performance review ranking systems are problems in the organization.
increasingly being criticized because they tend
to pit employees against one another rather
than promoting cooperation and teamwork.
Stereotyping: a performance evaluation error
that occurs when a manager places an
employee into a class or category based on one
or a few traits or characteristics
Halo effect: when a manager gives an
employee the same rating on all dimensions of
the job, even though performance may be good
on some and poor on others.