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• Human Resource Management


  The process of planning, organizing, directing (motivating), and controlling the procurement, development, compensation, integration, maintenance, and separation of organizational human resources to the end that organizational, individual, and societal needs are satisfied
• HRM Includes


  • Recruitment & selection
  • Training and development
  • Performance appraisal and feedback
  • Pay and benefits
  • Labor relations
• Human Resource Planning


  1. Demand forecasts

  2. Supply forecasts
• Recruitment


  Develop a pool of qualified applicants
• Selection


  Determine relative qualifications & potential for a job
• Training & Development


  Ongoing process to develop worker's abilities and skills
• Performance Appraisal & Feedback

  1. Provides information about how to train, motivate, and reward workers

  2. Managers can evaluate and then give feedback to enhance worker performance
• Pay and Benefits


  • High performing employees should be rewarded with raises, bonuses
  • Increased pay provides additional incentive
  • Benefits, such as health insurance, reward membership in firm
• Labor Relations


  • Managers need an effective relationship with labor unions that represent workers
  • Unions help establish pay, and working conditions
• HRM Components


  • Must be consistent with the others, organization structure, and strategy
• External Recruiting


  • Managers look outside the firm for people who have not worked at the firm before
  • Advertise in newspapers, hold open houses, recruit at universities, and on the Internet
  • External recruitment is difficult since many new jobs have specific skill needs
  • A multi-prong approach to external recruiting works best
• Internal Recruiting


  • Positions filled within the firm
  • Workers know the firm's culture, may not have new ideas
  • Managers likely already know the candidates
  • Internal advancement can motivate employees
• Outsourcing


  • Managers can decide to contract with outside workers rather than hiring them
  • Outsourcing is more flexible for the firm
  • Outsourcing often provides human capital at a lower cost
• Outsourcing Problems


  • Managers lose control over output
  • Outsource contractors are not committed to the firm
  • Unions typically are against outsourcing that has potential to eliminate member's jobs
• Selection Tools


  • Structured interview
  • Unstructured interview
  • Physical ability test
  • Ability test
  • Personality test
  • Job performance test
  • Assessment Center
• Reliability


  The degree to which the tool measures the same thing each time it is used
• Validity


  Does the test measure what it is supposed to measure?
• Training


  • Teach organizational members how to perform current jobs
  • Help worker's acquire skills to perform effectively
• Development


  Build worker's skills to enable them to take on new duties
• Types of Development


  • Varied work experiences
  • Formal education
• Whatever training and development efforts used, results must be transferred to the workplace
• Labor Union


  An organization with legal authority to negotiate with the employer on behalf of employees
• Bonafide Occupational Qualification (BOQ)


  Individual characteristics necessary for performance of job requirements
• Employees Vs Independent Contractors

  • Union Shop - must be in the union
  • Right-to-work laws - can't force membership
• Contrast Error


  Interviewer bases judgement of a candidate upon a comparison with preceding interviewee
• Similarity Error


  Bias toward a candidate that is similar to the interviewee
• Situational Interviews


  Give scenarios to candidates and judge their responses
• Job Analysis


  The act of examining positions within an organization
• Job Characteristics


  • Tasks involved in a position
  • Personal characteristics necessary to fill a position
• Job Description


  Narrative explaining the scope of a position
• Job Requirements


  Individual characteristics necessary for performance of job requirements
• Performance Appraisal


  • Process of evaluating employee performance
  • Determine ways to improve performance
  • Pay and promotion decisions
• Types of Appraisal


  • Self Appraisal
  • Peer Appraisal
  • 360 Degree appraisal
• Pay Level


  • How the firm's pay incentives compare to other firms in the industry
  • Managers can decide to offer low or high relative wages
• Pay Structure


  Clusters jobs into categories based on importance, skills, and other issues
• Benefits


  • Some are required (social security, workers comp)
  • Others (health insurance, day care, and others) are provided at the employers option
  • Cafeteria-style plan: Employee can choose the best mix of benefits for them
• Pay


  • Base Wage
  • Job Based Pay
  • Competency Based Pay
  • Incentive Pay
• Individual Incentives


  • Piece-Rate
  • Commissions
  • Bonuses
  • Merit Pay
  • Seniority
• Team or Organizational Incentive

  • Gain Sharing
  • Profit Sharing
  • Stock Ownership
• Retention


  Involves keeping and motivating employees to stay with the organization