John R. Schermerhorn, Jr.

13 Daniel G. Bachrach

Introduction to
Management
13th edition

CHAPTER 13
HUMAN RESOURCE
MANAGEMENT
PLANNING AHEAD — KEY TAKEAWAYS
 Explain the human resource management
process and the legal framework that
governs it.
 Identify how managers help organizations
attract a quality workforce.
 Identify how managers help organizations
develop a quality workforce.
 Identify how managers help organizations
maintain a quality workforce.

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 CHAPTER 13 OUTLINE
1. Human Resource Management
a) Human resource management process
b) Strategic human resource management
c) Legal environment of human resource
management
2. Attracting a Quality Workforce
a) Human resource planning
b) Recruitment process
c) Selection techniques

Copyright ©2015 John Wiley & Sons, Inc.

 CHAPTER 13 OUTLINE

3. Developing a Quality Workforce

a) Onboarding and socialization
b) Training and development
c) Performance management
4. Maintaining a Quality Workforce
a) Flexibility and work-life balance
b) Compensation and benefits
c) Retention and turnover
d) Labor-management relations

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HUMAN RESOURCE MANAGEMENT
 Human capital is the economic value of
people with job-relevant knowledge,
abilities, ideas, energies, and
commitments
 Human Resource Management is a
process of attracting, developing, and
maintaining a talented work force

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 HUMAN RESOURCE MANAGEMENT
 Major
human resource management
responsibilities:
Attracting a Developing a Maintaining a
quality quality quality
workforce workforce workforce
Career
development,
Employee
work-life balance,
Human resource orientation,
compensation and
planning, training and
benefits, retention
recruitment, and development, and
and turnover, and
selection performance
labor-
management
management
relations

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HUMAN RESOURCE MANAGEMENT
 Person-job fit
The individual’s skills, interests, and personal
characteristics are consistent with the
requirements of work
 Person-organization fit
The individual’s values, interests, and
behavior are consistent with the culture of the
organization

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HUMAN RESOURCE MANAGEMENT
 Strategic
human resource management
mobilizes human capital to implement
organizational strategies

 Indicatorthat HRM is truly strategic: When it is

headed by a senior executive reporting directly
to the chief executive officer.

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HUMAN RESOURCE MANAGEMENT

 Job discrimination
Occurs when someone is denied a job or job
assignment for reasons that are not job
relevant

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 HUMAN RESOURCE MANAGEMENT
 Equal employment opportunity
The right to employment without regard to
race, color, national origin, religion, gender,
age, or disability status
Title VII of the Civil Rights Act of 1964
Equal Employment Opportunity Act of 1972
Civil Rights Act (EEOA) of 1991

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 HUMAN RESOURCE MANAGEMENT
 Affirmative action
an effort to give preference in employment to
women and minority group members, who
have traditionally been underrepresented.

 Bona fide occupational qualifications

employment criteria justified by capacity to
perform a job

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 FIGURE 13.1 A SAMPLE OF U.S. LAWS
AGAINST EMPLOYMENT DISCRIMINATION

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 HUMAN RESOURCE MANAGEMENT
 Employment issues and controversies
Sexualharassment
Comparable worth
Independent contractors
Permatemps
Workplace privacy

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ATTRACTING A QUALITY WORKFORCE
 Human resource planning analyzes an
organization’s staffing needs and determines
how to best fill them

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FIGURE 13.2 STEPS IN STRATEGIC HUMAN
RESOURCE PLANNING

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ATTRACTING A QUALITY WORKFORCE
 Thefoundation of human resource
planning is job analysis
the orderly study of job facets to determine
what is done when, where, how, why, and by
whom.
 Job
analysis provides information for
developing:
Job descriptions
Job specifications

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ATTRACTING A QUALITY WORKFORCE
 Recruitment
Activitiesdesigned to attract a qualified pool
of job applicants to an organization
Steps in the recruitment process:
 Advertisement of a job vacancy
 Preliminary contact with potential job candidates

 Initial screening to create a pool of qualified

applicants

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ATTRACTING A QUALITY WORKFORCE

Recruitment
External Internal Traditional Realistic job
recruitment recruitment recruitment previews
• Candidates • Candidates • Focuses on • Candidates
are sought are sought selling the receive all
from outside from within job and pertinent
the hiring the organization information –
organization organization to applicants both positive
and negative

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FIGURE 13.3 STEPS IN THE SELECTION
PROCESS: THE CASE OF A REJECTED
JOB APPLICANT

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ATTRACTING A QUALITY WORKFORCE
 Selection involves choosing individuals to
hire from a pool of qualified job applicants.
 Reliability means that a selection device
gives consistent results time after time
 Validity means that there is a clear
relationship between what the selection
device measures and job performance

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ATTRACTING A QUALITY WORKFORCE
• Interviews
– Unstructured interviews do not follow a formal
and pre-established of questions
– Behavioral interviews ask job applicants
about past behaviors that relate to the job
– Situational interviews ask job applicants how
they would react in specific situations

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ATTRACTING A QUALITY WORKFORCE
 Employment Tests
Biodata methods collect biographical
information that has been proven to correlate
with good job performance

Value
Aspirations Motivations Attitudes Expectations
judgments

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ATTRACTING A QUALITY WORKFORCE
 Employment Tests
Used to further screen applicants by
gathering additional job-relevant information
Assessment centers examine how job
candidates handle simulated work situations
Work sampling involves observing applicants
performing actual work tasks

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DEVELOPING A QUALITY WORKFORCE
 Onboarding/orientation
familiarizes
new employees with jobs,
coworkers, and organizational policies and
services
 Socialization
a process of learning and adapting to the
organizational culture

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DEVELOPING A QUALITY WORKFORCE
• Training
– Activities that provide the opportunity to
acquire and improve job-related skills
On-the-job training
Off-the-job training
• Job rotation • Management
• Coaching development
• Mentoring
• Reverse mentoring

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DEVELOPING A QUALITY WORKFORCE
 Performance management systems
ensure that
Performance standards and objectives are
set
Performance results are assessed regularly
Actions are taken to improve future
performance

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DEVELOPING A QUALITY WORKFORCE
 Performance appraisal
Formallyassessing someone’s work
accomplishments and providing feedback
Purposes of performance appraisal:
 Evaluation — lets people know where they stand
relative to objectives and standards
 Development — assists in training and continued

personal development of people

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DEVELOPING A QUALITY WORKFORCE
 Graphic rating scales
A trait-based performance appraisal that
includes checklists of traits or characteristics
to evaluate performance
Relatively quick and easy to use
Questionable reliability and validity

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DEVELOPING A QUALITY WORKFORCE
 Behaviorally anchored rating scales
(BARS)
A behavior-based performance appraisal that
describes actual behaviors that exemplify
various levels of performance achievement in
a job
More reliable and valid than graphic rating
scales

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FIGURE 13.4 SAMPLE BEHAVIORALLY ANCHORED
RATING SCALE FOR PERFORMANCE APPRAISAL

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DEVELOPING A QUALITY WORKFORCE

Recency bias is the tendency for

evaluators to focus on recent behaviors
instead of behavior that occurred
throughout the evaluation period

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DEVELOPING A QUALITY WORKFORCE

 Critical-incident techniques
Keeping a running log or inventory of effective
and ineffective behaviors
Documents success or failure patterns

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DEVELOPING A QUALITY WORKFORCE
 Results-basedperformance assessments
focus on accomplishments
Usuallyqualitative and objective
Determining what to measure may be difficult

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DEVELOPING A QUALITY WORKFORCE
 Leniency error:
the tendency for supervisors to rate
employees more favorably than they deserve
in order to avoid the unpleasant task of giving
negative feedback
 Multiperson comparisons
Formally compare one person’s performance
with that of one or more others
Types of multiperson comparisons:
 Rank ordering
 Forced distributions

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DEVELOPING A QUALITY WORKFORCE
 360° feedback
Occurs when superiors, subordinates, peers,
and even inside and outside customers are
involved in the appraisal of a jobholder’s
performance

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MAINTAINING A QUALITY WORKFORCE
 Work-life balance
How people balance career demands with
personal and family needs
Progressive employers support a healthy
work-life balance

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 MAINTAINING A QUALITY
WORKFORCE
 Compensation and benefits
Base compensation
 Salary or hourly wages

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MAINTAINING A QUALITY WORKFORCE

Merit pay
Awards a pay increase in proportion to
individual performance contributions
Provides performance contingent
reinforcement

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MAINTAINING A QUALITY WORKFORCE
• Bonus pay plans
– One-timepayments based on the
accomplishment of specific performance targets
or some extraordinary contribution
• Profit-sharing plans
– Some or all employees receive a proportion of
net profits earned by the organization
• Gain-sharing plans
– Groups of employees share in any savings
realized through their efforts to reduce costs and
increase productivity
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MAINTAINING A QUALITY WORKFORCE
 Employee stock ownership plans
Employees purchase company stock directly
through employer, sometimes at a discount
 Stock options
Employees have the right to purchase
company stock at a fixed price in the future as
a performance incentive

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MAINTAINING A QUALITY WORKFORCE
Benefits
Non-monetary forms of compensation
 Required
 Social security
 Unemployment insurance

 Worker’s compensation

 Not required
 Health insurance
 Retirement plans

 Paid time off

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MAINTAINING A QUALITY WORKFORCE
Flexible benefits
 Allow employees to choose from a set of benefits
Family-friendly benefits
 Help in balancing work and nonwork responsibilities
Employee assistance programs
 Help employees deal with troublesome personal
problems

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MAINTAINING A QUALITY WORKFORCE
Early retirement
 Financial incentive offered to employees who retire early
Termination
 Involuntary dismissal of an employee
Employment-at-will
 Employees can be terminated at any time for any reason
Wrongful discharge
 Workers have legal protection from discriminatory firings

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MAINTAINING A QUALITY WORKFORCE
Labor-management relations
Labor unions deal with employers on the
workers’ behalf
A labor contract is a formal agreement
between a union and an employer about the
terms of work for union members
Collective bargaining
 Process of negotiating, administering and
interpreting a labor contract

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MAINTAINING A QUALITY WORKFORCE

Wages

Other
conditions
Work hours
of
employment

Labor
contracts
may
Grievances determine Work rules

Hiring Seniority

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