Chapter 12 - Human Resources (HR)

1. Chapter 12 - Human Resources (HR) • HR is key to organizational success or failure. • Human capital (value of their employees) is essential to any org.’s long-term perf. success. • Org. perform better when they treat their employees better. Management Fundamentals - Chapter 12

2. Who should HR Hire to Create a Hire Performance Work Environment? • people with the following qualities: • Work ethic • Ambition and energy • Knowledge • Creativity • Motivation • Sincerity • Outlook • Collegiality and collaborativeness • Curiosity • Judgment and maturity • Integrity Management Fundamentals - Chapter 12

3. HR responsibilities • Attracting a quality workforce • planning, recruitment, and selection • Developing a quality workforce • Employee orientation, training and development, and performance appraisal. • Maintaining a quality workforce • Career development, work-life balance (WLB), compensation and benefits, employee retention and turnover, and labour-management relations. Management Fundamentals - Chapter 12

4. Attracting a Quality Workforce • HR planning analyzes an organization’s HR needs and how to best fill them. Steps in the HR planning process: • Step 1 — review org. mission, object., and strategies. • Step 2 — review HR objectives and strategies. • Step 3 — assess current HR needs. • Step 4 — forecast HR needs. • Step 5 — develop and implement HR plans. Management Fundamentals - Chapter 12

5. Figure 12.2Steps in strategic human resource planning. Management Fundamentals - Chapter 12

6. Attracting a Quality Workforce • Recruitment • Activities designed 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. Management Fundamentals - Chapter 12

7. Recruitment Methods • External recruitment — candidates are sought from outside the hiring organization. • Internal recruitment — candidates are sought from within the organization. Management Fundamentals - Chapter 12

8. Attracting a Quality Workforce • Selection • Choosing from a pool of applicants the person or persons who offer the greatest performance potential. • Selection Steps • Completion of a formal application form. • Interviewing. • Testing. (Intelligence, Aptitude, Personality, Interest) • Reference checks. • Physical examination. • Final analysis and decision to hire or reject. Management Fundamentals - Chapter 12

9. Figure 12.3Steps in the selection process: the case of a rejected job applicant. Management Fundamentals - Chapter 12

10. Developing a Quality Workforce • Socialization • Process of influencing the expectations, behavior, and attitudes of a new employee in a way considered desirable by the organization. • Orientation • Set of activities designed to familiarize new employees with their jobs, coworkers, and key aspects of the organization. Management Fundamentals - Chapter 12

11. Training A set of activities that provides the opportunity to acquire and improve job-related skills. On-the-job training Job rotation Coaching Mentoring Modeling Off-the-job training Management development Developing a Quality Workforce Management Fundamentals - Chapter 12

12. Developing a Quality Workforce • Performance appraisal • Formally assessing 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. Management Fundamentals - Chapter 12

13. Figure 12.4 Sample behaviorally anchored rating scale for performance appraisal. Management Fundamentals - Chapter 12

14. Types of Performance Appraisals 1. Graphic rating scales • Uses checklists of traits or characteristics to evaluate performance. • Relatively quick and easy to use. • Questionable reliability and validity. Management Fundamentals - Chapter 12

15. Types of Performance Appraisals 2. Behaviorally anchored rating scales (BARS) • Describes actual behaviors that exemplify various levels of performance achievement. • More reliable than graphic rating scales. • Helpful in training people to master important job skills. Management Fundamentals - Chapter 12

16. Types of Performance Appraisals • Critical-incident techniques • Keeping a running log of effective and ineffective behaviours. 4. Multiperson comparisons • Formally compare one person’s performance with that of one or more others. Management Fundamentals - Chapter 12

17. Types of Performance Appraisals 6. Peer appraisal • Occurs when people who work regularly and directly with a jobholder are involved in the appraisal. 7. Upward appraisal • Occurs when subordinates reporting to the jobholder are involved in the appraisal. 8. 360° feedback • Occurs when superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholder’s performance. Management Fundamentals - Chapter 12

18. Maintaining A Quality Workforce • Career development • Career — a sequence of jobs that constitute what a person does for a living. • Career path — a sequence of jobs held over time during a career. • Career planning —matching career goals and individual capabilities with opportunities for their fulfillment. • Career plateau — a position from which someone is unlikely to move to a higher level of responsibility. • Progressive employers seek ways to engage plateaued employees. Management Fundamentals - Chapter 12

19. 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. • Contemporary work-life balance issues: • Single parent concerns • Dual-career couples concerns • Family-friendliness as screening criterion used by candidates Management Fundamentals - Chapter 12

20. Maintaining a Quality Workforce • Compensation and benefits • Base compensation - Salary or hourly wages • Fringe benefits • Additional non-wage or non-salary forms of compensation • Flexible benefits • Employees can select a set of benefits within a certain dollar amount Management Fundamentals - Chapter 12

21. Study Question 5: How do organizations maintain a quality workforce? • Compensation and benefits (cont.) • Family-friendly benefits • Help in balancing work and nonwork responsibilities • Employee assistance programs • Help employees deal with troublesome personal problems. Management Fundamentals - Chapter 12

22. Maintaining a Quality Workforce • Retention and turnover • Replacement is the management of promotions, transfers, terminations, layoffs, and retirements. • Replacement decisions relate to: • Shifting people between positions within the organization. • Retirement. • Termination. Management Fundamentals - Chapter 12

23. Maintaining a quality workforce • Labor-management relations • Labor unions deal with employers on the workers’ behalf. • Labor contracts specify the rights and obligations of employees and management regarding wages, work hours, work rules, seniority, hiring, grievances, and other conditions of employment • Collective bargaining is the process of negotiating, administering, and interpreting a labour contract. Management Fundamentals - Chapter 12

24. Figure 12.5The traditional adversarial view of labor-management relations. Management Fundamentals - Chapter 12

25. Unions can create difficulties for management by… Striking Boycotting Picketing Management can create difficulties for unions by… Using lockouts Hiring strike-breakers Seeking injunctions Maintaining a Quality Workforce Management Fundamentals - Chapter 12

26. Issues HR must also handle: • Discrimination in employment - Occurs when someone is denied a job or job assignment for reasons that are not job relevant. • Employment equity - preference in employment to Aboriginals, women, visible minorities, and people with physical/mental disability. • Sexual harassment - behaviour of a sexual nature that affects a person’s employment situation • Comparable worth - persons performing jobs of similar importance should be paid at comparable levels Management Fundamentals - Chapter 12