Chapter 12

Human Resource
Management
Strategic Human Resource
Management
Human Resource Management (HRM)
–Activities that managers engage in to attract
and retain employees and to ensure that
they perform at a high
level and contribute
to the accomplishment
of organizational goals.

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Strategic Human Resource
Management
 Designing the components of a HRM system
to be consistent with:
– Each other
– Other elements of organizational architecture
– The organization’s strategy and goals
 “Six Sigma”
– Ensure that products and services are as free of
errors or defects as possible through a variety of
human resource-related initiatives

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Components of a Human Resource
Management System

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The Legal Environment of HRM
 Equal Employment Opportunity (EEO)
– The equal right of all citizens to the
opportunity to obtain employment
regardless of their gender, age, race,
country of origin, religion, or disabilities.
– Equal Employment Opportunity
Commission (EEOC) enforces employment
laws.

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The Legal Environment of HRM
 Contemporary challenges for managers
– How to eliminate sexual harassment
– How to make accommodations for
employees with disabilities
– How to deal with employees who have
substance abuse problems
– How to manage HIV-positive employees
and employees with AIDs

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The Recruitment and Selection
System

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Human Resource Planning
 Human Resource Planning (HRP)
– Forecasting current and future human
resourced needs.
 Demand forecasts
 Supply forecasts
 Outsourcing
– Loss of control over output
– Unions are against outsourcing
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Job Analysis
 Job Analysis
– Identifying the TDRs that make up a job
and the KSAs needed to perform the job.
– Should be done for each job
 Methods
– Observing what current workers do.
– Having workers and manages fill out
questionnaires

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Recruitment
 External Recruiting
– Looking outside the organization to fill open
positions
 Internal Recruiting
– Managers turn to existing employees to fill
open positions
 Realistic Job Preview
– Providing an honest assessment of the
advantages and disadvantages of a job
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Selection Tools

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Reliability and Validity
 Selection tools must be BOTH reliable
and valid
 Reliability
– The degree to which the tool measures the
same thing each time it is used
 Validity
– The degree to which the test measures
what it is supposed to measure

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Training and Development
 Training
– Teaching organizational members how to
perform their current jobs
– Helping them to acquire the knowledge and
skills they need to be effective performers
 Development
– Building the KSAs of organizational members
to enable them to take on new responsibilities

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Training and Development

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Performance Appraisal and
Feedback
 Performance Appraisal
– Evaluating employees’ job performance
and contributions to the organization
 Performance Feedback
– Sharing performance appraisal information
with subordinates and planning for the
future

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Types of Performance Appraisal
 Trait
– Personal characteristics that are relevant to
job performance
 Behavior
– The actual actions and behaviors exhibited on
the job.
 Results appraisals
– Actual outcomes of work behaviors
 Objective and Subjective appraisals
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Who Appraises Performance?

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Effective Feedback Tips
 Be specific
 Focus on correctable behaviors or outcomes
 Utilize a problem solving approach
 Express confidence in a subordinate’s ability
to improve.
 Provide feedback both formally and informally
 Praise instances of high performance
 Avoid personal criticisms
 Agree to a timetable for improvements

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Pay
 Includes employees’ base salaries, pay
raises, and bonuses
 Determined by:
– Characteristics of the organization and the
job
– Levels of performance
 Pay level
– The relative position of an organization’s
incentives compared to similar firms
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Pay
 Pay Structure CEO

– The arrangement
of jobs into VP VP VP

categories based
on their relative Director Director

importance to the
organization and its Dept Manager

goals, level of
skills, and other
characteristics.

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Benefits
 Legally required
– Social security
– Workers’ compensation
 Voluntary
– Health insurance
– Retirement
 Cafeteria-style benefits plans
– Allow employees to choose the best mix
– Can be hard to manage
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Labor Relations
 Ensuring effective working relationships with
the labor unions that represent their
employees
 Laws regulating areas of employment
– Fair Labor Standards Act (1938) prohibits child
labor, sets a minimum wage and maximum
working hours.
– Equal Pay Act (1963)
– Work Place Safety (1970) OSHA mandates
procedures for safe working conditions
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Unions
 Represent workers’ interests to management
 The power that management has over
individuals creates the need for unions
 Collective bargaining
– Negotiation between labor and management to
resolve conflicts and disputes regarding:
• Working hours and conditions
• Wages and benefits
• Job security

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