Chapter 12 Human Resource Management

1. Chapter 12 Human Resource Management

2. Introduction to HRM • Human Resource Management • Is the management of people in an organization, including development, organization, and administration of the organization’s ‘people systems’. • Steps in human Resource Management • Identify what people needed to do (job analysis and planning) • Get the right people onboard (staffing) • Provide sufficient feedback and rewards for people (performance management) • Prepare and develop the people (training and development)

3. Mainstream HRM • Step 1: Job Analysis and planning • Job analysis: investigative process of gathering and interpreting information about a job and its required KSAO (knowledge, skills, abilities and other characteristics associated with specific positions). • The info in turn feeds into job design process to create job description that summarizes specific duties, tasks & responsibilities of a position. • Method of data gathering: 1) observation, interview, survey or subject matter expert’s opinion. • HRM Planning: process of using job analysis and design info to develop HR requirement forecast that identify the ‘people need’ of the organization in various dept/positions • Sometime rely on HR info system (HRIS) to track demand-based on job/specific skills against database of current supply of talents in organization. Identify future need of HR against current supply. • Contingent worker: hired hand, not considered formal employees, hire for specific time/project to meet gap in HR needs

4. Mainstream HRM (cont’d) • Step 2: Staffing • Staffing: process of identifying, attracting, hiring and retaining people with KSAO, to fulfill the responsibilities of current/future jobs in organization. • Two main components: recruitment and selection • Recruitment: the process of identifying and attracting people with the essential KSAO. Involved establishing channels • recruitment channels (means in which organization funnel potential members into selection process) ex. Newspaper ads, internet posting, employment agencies. • Selection: The process of choosing which people to hire from all the job applicants or recruits. • Selection validity: measure of relationship between the scores that applicants receive during assessment as part of the recruitment process and their subsequent job performance.

5. Mainstream HRM (cont’d) • Selection Methods: • graphology: analyze handwriting to determine characteristics and performance ability • Weighted application blank (WAB): include application form to collect info about educational background, previous job experience, and other job-related information. Weighting is based on an empirical measurement of the validity of each question. • References: a person to verify that the information given by an applicant is true • Personality tests: predict sought-after traits, such as agreeable, honesty , extraversion • Unstructured interviews: conversation based on interest and background of applicants • Work sample test: performing actual or simulated job tasks

6. Mainstream HRM (cont’d) • Step 3: Performance Management • Performance management: process to ensure that employee’s activities and outputs are aligned with the organization’s goals. Involves two components: performance appraisal and compensation. • Performance appraisal: process of specifying what performance is expected of a worker and then providing feedback on the member’s performance. Have two types: administrative (for pay and promotion decision) and developmental (for training and work improvement) • Appraisal problem: • leniency: give higher-than-deserved ratings • Halo/horn effect: use one piece of info (good or bad) to influence rating on unknown dimension • Representativeness: allow one prominent trait/impression to stereotype the employees • Availability: rely on memorable info (dramatic/recent) to make judgments • Attribution error: attribute poor performance to the person by ignoring for situational factors.

7. Mainstream HRM (cont’d) • Step 4: Step 3: Performance Management • Compensation: Refer to all monetary payments such as wages, salaries, and bonuses as well as other goods or commodities that are used to reward organizational members. • Benefits: subset of compensation, typically not directly contingent on performance. Ex. Health plan, daycare centre, gym, subsidized cafeteria foods. • Approaches to compensation: • job-based pay: receive pay based on jobs the employee holds • Merit-based pay: based on past performance captured by in appraisal • Skill-based pay: base on hourly wage and additional increments on other skills valuable to the organizations. • Pay-for-performance: pay are directly linked to individual, group, or organizational performance.

8. Mainstream HRM (cont’d) • Step 4: Training and development • Training: learning activities to improve individual’s skills or performance in a specific are or current position • On the job training: a more experienced members on the organization teaches a specific tasks to a newer member • Development: learning activities focus on broad growth for the person, including focus on larger career or beyond the scope of person’s current job. • Succession plan: process of identifying talented employees who have potential to succeed in jobs of increased responsibilities within the organization • Mentoring: coaching junior managers in which a senior mgr give specific directions, accurate feedback, expert advice, and support