Human resource management
design and application of formal systems to ensure effective and efficient use of human talent to accomplish org goals
activities to attract, develop, and maintain effective workforce
Key elements of strategic approach to hrm
all managers involved in hrm
employees viewed as assets
hrm is matching process, integrating org's strategy and goals with correct approach to managing human capital
Human capital
economic value of the combined knowledge, experience, skills, and capabilities of employees
Point of laws with HRM
stop discriminatory practices are unfair to specific groups and to define enforcement agencies for these laws
What created Equal Employment Opportunity Commission
Civil Rights Act of 1964
Discrimination
hiring or promoting of applicants based on criteria that are not job relevant
Affirmative action
requires employees take positive steps to guarantee equal employment opps for people within protected groups
refers to use of goals, timetables, or other methods in recruiting to promote the hiring, development, and retention of protected groups
goal: to reduce or eliminate internal inequities among affected employee groups
Title VII of the Civil Rights Act (and EEOC)
legislation that outlaws sexual harassment
Idea of new social contract
Self motivated workers
Younger employees like expectation of responsibility and mobility embedded
No longer lifetime employement
Individuals responsible for developing their own skills and abilities to meet employer's needs
Employer of choice
company that is highly attractive to potential employees because of human resource practices that focus not just on tangible benefits such as pay and profit sharing, also on intangibles, embrace long-term view to solving problems
Contingent workers
people who work for an org, not on full time
include temp, independent contractors. freelancers, part time
Telecommuting
using computers and telecommunications equipment to work from home or another remote location
Three goals of HRM
finding, developing, and maintaining an effective workforce
Three steps if HRM
1. find right people
2. recruit
3. select from applicants
Matching model
human resources approach in which the org and the individual attempt to match each other's needs, interests, and values
Human resource planning
forecasting of hr needs and projected matching of individuals with anticipated job vacancies
Recruiting
activities or practices that define desire traits of applicants for specific jobs
aka talent acquisition
Job analysis
systematic approach of gathering and interpreting info about the duties, tasks, and responsibilities of a job
Job description
a clear and concise summary of specific tasks, duties, and responsibilities
Job specification
outlines the knowledge, skills, education, physical abilities and other traits needed to adequately perform a specific job
Realistic job previews
in recruiting to give applicants all pertinent and realistic info, both positive and negative, about a job and the org
contributes to greater employee satisfaction and lower turnover bc they facilitate matching individuals, jobs and org
Americans with Disabilities Act
need for well-written job descriptions and specifications that accurately reflect the mental and physical dimensions of the job
Passive candidates
people who are highly qualified and aren't looking for jobs but might be the best for a company's opening
Selection
process of assessing the skills, abilities, and other attributes of applicants in an attempt to determine the fit between the job and each applicant's characterisitcs
Structured interviews
uses a set of standardized questions that are asked of every applicant so comparisons can be made easily
Biological interviews
asks about previous life and work experience
Behavioral interviews
ask people to describe how they have performed a certain task or handled a particular problem
Situational interview
require people to describe how they might handle a hypothetical
Nondirective interviews
interviewer asks broad, open-ended questions and permits applicant to talk freely with minimal interruption
in attempt to bring to light info, attitudes, and behavioral characteristics that might be concealed when answering structure questions
Panel interview
an interview in which the candidate meets with several interviewers who take turns asking questions
Employment test
assess candidates on various factors considered important for the job to be performed and include cognitive ability tests, physical ability tests, and personality test
Cognitive ability test
measure an applicant's thinking, reasoning, verbal, and math abilities
Physical ability test
measure qualities such as strength, energy, and endurance may be used for jobs such as delivery drives and other positions that involve physical tasks
Personality tests
used to assess such traits as openness to learning, agreeableness, responsibility, creativity, and emotional stability
Brain teaser
used by companies that put a premium on innovativeness and problem solving
Assessment center
used to select individuals with high managerial potential based on their performance on a series of simulated managerial skills
In-basket simulation
requires applicant to play the role of a manager who must decide how to respond to ten memos in his or her in-basket within a two-hour period
Work sample test
managers administer these to applicants for front-line positions to evaluate their performance in completing simulated tasks that are a part of the job
Training
teaching people skills needed in their current hob
Development
teaching people broader career skills
On the job training
an experienced employee is asked to teach a new employee how to perform job duties
Cross training
involves moving people to various types of jobs within the org, where they work with experienced employees to learn different tasks
Corporate university
in house training and development facility that offers broad based learning opportunities for employees
Mentoring
refers to when an experience employee or manager guides and supports a newcomer or less experienced employee
Coaching
method of directing, instructing, and training a person with the goal of developing specific management goals
Performance appraisal
comprises the steps of observing and assessing employee performance, recording the assessment and providing feedback to the employee
360-degree feedback
process that uses multiple raters, including self rating, as a way to increase awareness of strengths and weakness and guide employee development
Performance review ranking system
method increasingly under fired because it essentially evaluates employees by pitting them against one another
Performance evaluation errors
Stereotyping, halo effect
Stereotyping
a performance evaluation effor that occurs when a amanager places an employee into a class of strategy based on one or a few traits
Halo effect
occurs when a manager gives an employee the same rating on all dimensions off the job even though performance may be good on some dimensions and poor on others
Behaviorally anchored rating scale
one approach to overcome performance evaluation errors
performance evaluation technique that relates an employee's performance to specific job-related incidents
Compensation
refers to all monetary payments and all nonmonetary goods or benefits used to reward employees
wages, salaries, health insurance, paid vacations, employee fitness centers
helps attract and retain talent
impact on strategic performance
Job based pay
most common approach to employee compensation
linking compensation to specific tasks an employee performs
may fail to reward type or learning behavior needed for org to survive in turbulent environment
reinforce org hierarchy and centralized decisions
Skill based pay system
increasingly popular in both large and small companies
employees with more skill receive greater pay
Competency based pay
skill based pay systems encourage people to develop skills and competencies, thus making them more valuable to the org as well as more employable if they leave current job
Job evaluation
process of determining the value of jobs within an org through an examination of job content
Wage and salary surveys
show what org pay incumbents in jobs that match a sample of key jobs selected by the org
Pay for performance
aka incentive pay
tying at least a portion of compensation to employee effort and performance
Benefits required by law
social security, unemployment compensation, worker's compensation
Cafeteria-plan benefit packages
allow employees to select the benefits of greatest value to them
Righsizing (downsizing)
intentionally reducing the company's workforce to the point where number of employees is deemed right for the company's current situation
Exit interview
an interview conducted with departing employees to determine reasons for their departure and learn about potential problems in the org