13.managing Human Resources

Managing
Explain the importance of the human resource

Human management process and the external
Resources influences that might affect that process.
Discuss the tasks associated with identifying and
selecting competent employees.
Explain the different types of orientation and training.
Describe strategies for retaining competent, high-
performing employees.
Discuss contemporary issues in managing human
resources.
Copyright
Copyright © 2014 Pearson©Education,
2012 Pearson Education,
Inc. publishing as Prentice Hall 13-1 Copyright
Copyright © 2014 © Education,
Pearson 2012 PearsonInc.Education,
publishingInc.
as Prentice Hall 13-2
Inc. Publishing as Prentice Hall Publishing as Prentice Hall
Why Is HRM Important? Why Is HRM Important (cont.)?
• As a significant source of competitive advantage • High-performance work practices - work

– People-oriented HR creates superior shareholder practices that lead to both high individual and
value high organizational performance
• As an important strategic tool
– Achieve competitive success through people by
treating employees as partners
• To improve organizational performance
– High performance work practices lead to both high
individual and high organizational performance
Copyright
Inc. publishing as Prentice Hall 13-4
Inc. Publishing as Prentice Hall Inc. Publishing as Prentice Hall
Exhibit 13-1 Exhibit 13-2 HRM Process
High-Performance Work Practices
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External Factors That Affect the HRM External Factors That Affect the HRM
Process Process (cont.)
• The Economy’s Effect on HRM • Employee Labor Unions
– The global economic downturn has left what – Labor union - an organization that represents
many experts believe to be an enduring mark workers and seeks to protect their interests
on HRM practices worldwide through collective bargaining
– U.S. workers have dramatically lowered their – Work stops, labor disputes, and negotiations
career and retirement expectations for the between management and labor are just a
foreseeable future few of the challenges organizations and
managers face when their workforce is
unionized
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External Factors That Affect the HRM
Exhibit 13-3 Major HRM Laws
Process (cont.)
• Legal Environment of HRM
– Affirmative action - organizational programs
that enhance the status of members of
protected groups
– Two current U.S. laws that each have the
potential to affect future HRM practices
• Protection and Affordable Care Act (PPACA and
commonly called the Health Care Reform Act)
• Social Networking Online Protection Act (SNOPA)
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Exhibit 13-3 Major HRM Laws (cont.) Exhibit 13-3 Major HRM Laws (cont.)
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External Factors That Affect the HRM
Global HRM Laws
Process (cont.)
• Work councils - groups of nominated or elected • Demographic Trends
employees who must be consulted when – The oldest, most experienced workers (those born
management makes decisions involving before 1946) make up 6 percent of the workforce.
personnel – The baby boomers (those born between 1946 and
1964) make up 41.5 percent of the workforce.
• Board representatives - employees who sit on
– Gen Xers (those born 1965 to 1977) make up almost
a company’s board of directors and represent
29 percent of the workforce.
the interests of the firm’s employees
– Gen Yers (those born 1978 to 1994) make up almost
24 percent of the workforce
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Human Resource Planning Human Resource Planning (cont.)
• Human resource planning - ensuring that the • Job description - a written statement
organization has the right number and kinds of that describes a job
capable people in the right places and at the
right times
• Job specification - a written statement of
• Job analysis - an assessment that defines jobs
the minimum qualifications a person must
and the behaviors necessary to perform them possess to perform a given job
successfully
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Exhibit 13-4
Recruitment and Decruitment
Recruiting Sources
• Recruitment - locating, identifying, and
attracting capable applicants
• Decruitment - reducing an organization’s
workforce
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Exhibit 13-5
Selection
Decruitment Options
• Selection - screening job applicants to ensure
that the most appropriate candidates are hired
• A valid selection device is characterized by a
proven relationship between the selection device
and some relevant criterion
• A reliable selection device indicates that it
measures the same thing consistently
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Exhibit 13-6
Exhibit 13-7 Selection Tools
Selection Decision Outcomes
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Exhibit 13-7 Selection Tools (cont.) Exhibit 13-7 Selection Tools (cont.)
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Providing Employees with Needed
Selection (cont.)
Skills and Knowledge
• Realistic Job Preview (RJP) - a preview of a • Orientation - introducing a new employee to his
job that provides both positive and negative or her job and the organization
information about the job and the company • Employee Training is an important HRM activity.
• In 2011, U.S. business firms spent more than
$59 billion on formal employee training.
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Exhibit 13-8 Exhibit 13-9

Types of Training Traditional Training Methods
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Exhibit 13-9 Retaining Competent, High-Performing
Traditional Training Methods (cont.) Employees
• Performance management system -
establishes performance standards used to
evaluate employee performance.
• Skill-based pay - a pay system that rewards
employees for the job skills they can
demonstrate
• Variable pay - a pay system in which an
individual’s compensation is contingent on
performance
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Exhibit 13-10 Exhibit 13-10

Performance Appraisal Methods Performance Appraisal Methods (cont.)
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Exhibit 13-11 Contemporary Issues in Managing
What Determines Pay and Benefits Human Resources
• Downsizing - the planned elimination of jobs in
an organization
• Sexual harassment - any unwanted action or
activity of a sexual nature that explicitly or
implicitly affects an individual’s employment,
performance, or work environment
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Exhibit 13-12 Contemporary Issues in Managing

Tips for Managing Downsizing Human Resources (cont.)
• Family-friendly
benefits - benefits
that accommodate
employees’ needs
for work–life balance
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Contemporary Issues in Managing
Review Learning Outcome 13.1
Human Resources (cont.)
• Employee Health Care Costs - since 2002, • Explain the importance of the human resource
health care costs have risen an average of 15 management process and the external
percent a year and are expected to double by influences that might affect that process.
the year 2016 from the $2.2 trillion spent in 2007 – HRM is important for three reasons
• Employee Pension Plan Costs - pension 1. It can be a significant source of competitive
commitments have become such an enormous advantage.
burden that companies can no longer afford 2. It’s an important part of organizational strategies
them. In fact, the corporate pension system has 3. the way organizations treat their people has been
found to significantly impact organizational
been described as “fundamentally broken
performance
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Review Learning Outcome 13.2 Review Learning Outcome 13.2 (cont.)
• Discuss the tasks associated with identifying and • Major sources of potential job candidates
selecting competent employees include
– A job analysis is an assessment that defines a – The Internet
job and the behaviors necessary to perform it – Employee referrals
– A job description is a written statement – Company Web site
describing a job – College recruiting
– A job specification specifies the minimum – Professional recruiting organizations.
qualifications a person must possess to
successfully perform a given job
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Review Learning Outcome 13.2 (cont.) Review Learning Outcome 13.3
• Different selection devices include; • Explain the different types of orientation and
application forms, written tests, work training
sampling, assessment centers, – Orientation results in an outsider-insider
background investigations, reference transition that makes the new employee feel
comfortable and fairly well-adjusted
checks, and physical exams
– The two types of training are general and
• A realistic job preview gives an applicant specific
more realistic expectations about the job,
and should increase employee job
satisfaction and reduce turnover
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Review Learning Outcome 13.4 Review Learning Outcome 13.5
• Describe strategies for retaining competent, • Discuss contemporary issues in managing

high-performing employees human resources.
– Performance appraisal methods are written essays, – Managers can manage downsizing by communicating
critical incidents, graphic rating scales, BARS, openly and honestly
multiperson comparisons, MBO, and 360-degree – Sexual harassment is any unwanted action or activity
appraisals. of a sexual nature that explicitly or implicitly affects an
– Skill-based pay systems reward employees for individual’s employment, performance, or work
demonstrated job skills and competencies. environment
– Variable pay system, an employee’s compensation is – Organizations are dealing with work–family life
contingent on performance balance issues
– Organizations are controlling HR costs by controlling
employee health care costs and pensions
Copyright
Copyright
Copyright © 2014 © Education,
Pearson 2012 PearsonInc.Education,
publishingInc.
as Prentice Hall 13-45
Publishing as Prentice Hall

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Managing

Explain the importance of the human resource

Why Is HRM Important? Why Is HRM Important (cont.)?

• As a significant source of competitive advantage • High-performance work practices - work

Human Resource Planning Human Resource Planning (cont.)

Exhibit 13-8 Exhibit 13-9

Exhibit 13-10 Exhibit 13-10

Exhibit 13-12 Contemporary Issues in Managing

Review Learning Outcome 13.2 Review Learning Outcome 13.2 (cont.)

Review Learning Outcome 13.4 Review Learning Outcome 13.5

• Describe strategies for retaining competent, • Discuss contemporary issues in managing

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