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Course: HRM390

Basic Concepts of Human


Resource Management and
Strategy

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–1
Chapter Objectives

1. Explain what human resource management involves.


2. Define the term human capital and identify at least four
of Pfeffer’s people-centered practices.
3. Identify and briefly explain the seven steps in the
PROCEED model of employee selection.
4. Distinguish among equal employment opportunity,
affirmative action, and managing diversity.
5. Explain how managers can be more effective
interviewers.
6. Discuss how performance appraisals can be made
legally defensible.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–2
Chapter Objectives (cont’d)

7. Compare and contrast the ingredients of good training


programs for both skill and factual learning.
8. Specify the essential components of an organization’s
policies for dealing with sexual harassment, and
alcohol and drug abuse.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–3
Human Resource Strategy: A People-
Centered Approach

• Human Resource Management (HRM)


• The proactive acquisition, retention, and development
of human resources necessary for organizational
success.
• HRM has moved from a support staff function
(personnel) to a more strategic role in organizations.
• Human Capital
• All present and future workforce participants who
need to develop to their full potential as valuable
assets to organizations.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–4
Figure 11.1
A General Model
for Human
Resource
Management
Human Resource Strategy: A People-
Centered Approach (cont’d)

• Recruitment and Selection


• “Getting the right people on the bus.”
• Recruiting for diversity
• Goal is to generate a pool of qualified applicants
through many different sources that are
demographically representative of the population
at large.
• Networking appears to be the most successful job-
hunting method.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–6
Human Resource Strategy: A People-
Centered Approach (cont’d)

• The Selection Process: An Overview


• Steps in the PROCEED model
• Prepare
• Review
• Organize
• Conduct
• Evaluate
• Exchange
• Decide

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–8
Human Resource Strategy: A People-
Centered Approach (cont’d)

• Job analysis
• The process of identifying basic task and skill
requirements for a specific job by studying superior
performers.
• Job description
• A concise document that outlines the role
expectations and skill requirements for a specific job.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–11
Human Resource Strategy: A People-
Centered Approach (cont’d)

• Equal Employment Opportunity (EEO)


• EEO and Title VII of the Civil Rights Act of 1964
• In virtually all aspects of employment, it is unlawful
to discriminate on the basis of race, color, sex,
religion, age, national origin, disability, or veteran
status.
• Affirmative Action
• A plan for actively seeking out, employing, and
developing the talents of those groups traditionally
discriminated against in employment.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–12
Recruitment and Selection

• Employment Selection Tests


• Any procedures used in the employment decision
process such as
• Pencil-and-paper tests
• Unscored application forms
• Informal and formal interviews
• Performance tests
• Physical, education, or experience requirements
• Tests must be unbiased, statistically valid, and
reliable predictors of job success.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–13
Recruitment and Selection (cont’d)
• Effective Interviewing (cont’d)
• Structured interviews: a set of job-related questions with
standardized answers.
• Question types used in structured Interviews
• Situational
• Job knowledge
• Job sample simulation
• Worker requirements
• Behavioral Interviewing
• Asking detailed questions about specific behavior in past job-
related situations.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–16
Performance Appraisal
• Performance Appraisal
• Evaluating individual job performance as basis for
making objective personnel decisions.
• Making Performance Appraisals Legally
Defensible
• Use job analysis to develop the appraisal system.
• Check that the appraisal system is behavior-oriented,
not trait-oriented.
• Have evaluators follow specific written instructions
when conducting appraisals.
• Have evaluators review results with the ratees.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–18
Performance Appraisal (cont’d)

• Alternative Performance Appraisal Techniques


• Goal setting (MBO)
• Written essays
• Critical incidents
• Graphic rating scales
• Behaviorally anchored rating scales (BARS)
• Rankings and comparisons
• 360-degree review

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–19
Training Methods & Types

• Methods:
• On the Job Training
• Off the Job Training

• Types:
• Basic Training
• Advanced Training

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–20
Contemporary Human Resource
Challenges and Problems

• Discouraging Sexual Harassment


• Sexual harassment: unwanted attention that creates
an offensive or intimidating work environment.
• Unwanted physical contact
• Gestures, displays, joking, and language
• It is the manager’s job to be aware of and to correct
cases of harassment. Ignorance of such activity is not
a valid legal defense.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–21
Contemporary Human Resource
Challenges and Problems (cont’d)

• Controlling Drug and Alcohol Abuse


• Alcoholism: a disease in which alcohol disrupts one’s
normal life.
• Drug abuse costs employers $100 billion each year.
• The Legal Side of Workplace Substance Abuse
• Drug addicts and alcoholics are covered by
Vocational Rehabilitation Act of 1973.
• Employers with federal contracts exceeding $25,000
must comply with the Federal Drug-Free Workplace
Act of 1988.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–22
Contemporary Human Resource
Challenges and Problems (cont’d)

• Referral and Rehabilitation


• How to assist an abusing employee
• Don’t accuse the employee; offer help after the
employee self-admits the problem.
• Don’t “play doctor.”
• Refer the employee to an employee assistance
program (EAP) or community resources for
rehabilitation.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–23
Strategic Management = Strategic Planning +
Implementation + Control (cont’d)

• Strategy
• An integrated externally-oriented perception of how to
achieve the organization’s mission.
• Strategic Planning
• The process of determining how to pursue the
organization’s long-term goals with resources
expected to be available.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–24
Thinking Strategically
• Synergy
• The concept that the whole is greater than the sum of
the parts.
• Types of synergy
• Market synergy: extending products to new markets.
• Cost synergy: savings from combinations of common-
base operations, resources, and facilities.
• Technological synergy: the transfer and application of
technologies to new markets.
• Management synergy: complementary skills that
make for more effective overall management.

Copyright © Houghton Mifflin Company. All rights reserved. Lecture Outline and Line Art Presentation, 11–25

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