Chapter 8: Human Resource Management

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Chapter 8: Human Resource Management

Developing a Quality Workforce

Performance management system - sets standards, assesses results, and plans for performance improvements

Performance appraisal methods - Graphic rating scale - uses a checklist of traits or characteristics evaluate performance (quick and easy, but poor reliability and validity) - Behaviourally anchored rating scale (BARS) - uses specific descriptions of actual behaviours to rate various levels of performance (more reliable and valid) - Critical-incident technique - keeps a log of someone’s effective and ineffective job behaviours - Multi-person comparisons - compares one person’s performance to others—done in different ways such as rank ordering, paired comparisons, forced distributions - Peer appraisals - people who work regularly and directly with a job holder - Upward appraisals - subordinates reporting to the job holder - 360º feedback - when superiors, subordinates, peers, and customers are involved in the appraisal process

Performance appraisal purposes - Performance appraisal - the process of formally evaluating performance and providing feedback to a job holder—serves evaluation and development purposes

Training and development

Off-the-job training - accomplished outside the work setting - Management development - training to improve knowledge and skills in the management process

On-the-job training - accomplished in the work setting while someone is doing a job - Job rotation - people switch tasks to learn multiple jobs - Coaching - when an experienced person offers performance advice to a less-experienced person - Mentoring - a form of coaching—assigns early career employees as proteges to more senior ones - Modeling - another form of coaching—uses personal behaviour to demonstrate the performance expected of others Sample training goals and options - Acquire information - Improve analytical skills - Learn job behaviours

Orientation and socialization - Orientation - a set of activities to familiarize new employees with jobs, co-workers, and organizational policies and services - Socialization - the process of learning and adapting to the organizational culture through casual interactions with coworkers

Human Resource Management (HRM)

Legal environment of HRM

Current legal issues in HRM - Sexual harassment - behaviour of a sexual nature that affects a person’s employment situation - Comparable worth - the notion that persons with jobs of similar importance should be paid at comparable levels - Pregnancy discrimination - penalizes a pregnant woman in a job or as a job applicant - Independent contractors - hired as needed and not a part of the organization’s permanent workforce - Workplace privacy - the right to privacy at work

Laws against employment discrimination - Discrimination - when someone is denied a job or job assignment for reasons not job relevant - Canadian Human Rights Act - Employment Equity Act - Employment equity - the right to employment and advancement without regard to race, sex, religion, colour, or national origin.

Global HRM

Challenges of managing a global workforce: keeping track of expertise, and legality—the availability of visas for foreign workers

Human resource management - the process of attracting, developing, and maintaining a high-quality workforce. HRM process: attracting, developing, and maintaining a quality workforce

Maintaining a Quality Workforce

Labour-management relations - Labour union - an organization that deals with employers on the workers’ collective behalf - Collective bargaining - the process of negotiating, administering, and interpreting a labour contract - Labour contract - a formal agreement between a union and employer about the terms of work for union members - Two-tier wage systems - pay new hires less than workers with more seniority already doing the same jobs

Retention and turnover - Early retirement incentive programs - offer workers financial incentives to retire early - Termination - the involuntary dismissal of an employee - Wrongful dismissal - a doctrine giving workers legal protections against discriminatory firings

Compensation and benefits Base compensation - a salary or hourly wage paid to an individual

Fringe benefits - Fringe benefits - non-monetary forms of compensation such as retirement plans and dental insurance - Flexible benefits - programs that allow employees to choose from a range of benefit options - Family-friendly benefits - help employees achieve better work-life balance - Employee assistance programs - help employees cope with personal stresses and problems

Stock ownership and stock options - Employee stock ownership plan - help employees purchase stock in their employing companies - Stock options - give the right to purchase shares at a fixed price in the future

Bonuses and profit-sharing plans - Bonus pay - plans that provide one-time payments based on performance accomplishments - Profit-sharing - plans that distributes to employees a proportion of net profits earned by the organization - Gain-sharing - plans that allow employees to share in cost savings and productivity gains by their efforts

Merit pay systems Merit pay - pay increases based on your performance contributions

Flexibility and work-life balance Work-life balance - involves balancing career demands with personal and family needs

Attracting a Quality Workforce

Selection techniques

Applications and interviews - Application: declares an individual as a job candidate and records their background and qualifications - Interview: the selection process of when the applicant and employer can get to know each other. Employment tests - should meet the criteria of reliability and validity Reference and background checks - verifies resume material and better inform potential employer Physical examination - a health check to ensure the person is physically capable of fulfilling job requirements Final decisions to hire or reject - involves extensive consultation among an applicant, future employer, new co-workers, and human resources staff

Selection - choosing to hire individuals from a pool of job applicants Steps in selection process → reasons for rejection: Step 1: completion of a formal application → deficient qualifications Step 2: interviewing → insufficient ability or ambition, or poor interpersonal skills Step 3: testing → poor test scores Step 4: reference checks → poor references Step 5: physical examination → physically unfit for the job Step 6: final analysis and decision to hire or reject → overall potential is low

Recruiting techniques

Realistic job previews - Traditional recruitment - focuses on selling the job and organization to applicants - Realistic job previews - provide job candidates with all pertinent information about a job and organization

External and internal recruitment - External - seeks job applicants outside the organization - Internal - seeks job applicants inside the organization

Recruitment - a set of activities designed to attract a qualified pool of job applicants Three steps in recruitment process: Step 1: advertisement of a job vacancy Step 2: preliminary contact with potential job candidates Step 3: Initial screening to create a pool of qualified applicants

Human resource planning - analyzes staffing needs and identifies actions to fill those needs

Foundations of human resource planning Job analysis Job description Job specifications

Steps in strategic human resource planning: Step 1: review organization mission, objectives, strategies Step 2: review human resource objectives and strategies Step 3: assess current human resources Step 4: forecast human resource needs Step 5: develop and implement human resource plans to match people and job openings