POM CHAPTER 9

• Human Resources Management


  The design and application of formal systems to ensure the effective and efficient use of human talent

  
• Human Resource Management (HRM)


  • Attracting, developing, and maintaining an effective workforce
• Strategic role of HRM

  To drive organizational performance
• Key elements of strategic approach to HRM

  • Managers are involved in human resource management
  • Employees are viewed as assets; provide the competitive edge
  • HRM is a matching process - strategy vs. goals vs. managing human capital

  
• Current strategic issues for HRM

  • Right people for improving quality, innovation, and customer service
  • Right people to become more competitive on a global basis
  • Right people to retain during mergers and acquisitions
  • Right people to apply new information technology for e-business
• Human Capital


  The economic value of the combined knowledge, experiences, skills and capabilities of employees
• Building human capital to drive performance

  1. Find the best talent

  2. Enhance skills and knowledge with training programs

  3. Provide opportunities for personal and professional development

  4. Provide compensation and benefits that support knowledge sharing

  5. Reward people for their contribution to the organization
• Assessing human capital processes

  Increases human capital, which drives higher performance
• Old social contract


  Lifelong employment by an organization
• New social contract


  Based on the notion of employability and personal responsibility rather than lifelong employment
• Innovations in HRM


  • Becoming an employer of choice
  • Acquiring companies to obtain talent
  • Using temporary employees and part-time workers
• Employer brand


  Promotes the organization as a great place to work, rather than promoting a specific product or service
• Employer of choice


  Attractive to attract potential employees, not focus on tangible (pay) but also on intangible (work/life balance, trust-based, healthy corporate culture)
• Acqui-hiring


  Buying an early-stage start-up (and usually shutting it down) in order to obtain the creative talent
• Contingent workers


  People who work for an organization, but not on a permanent or full-time basis, including temporary placements, independent contractors, freelancers, and part-time employees
• Finding the right people

  1. Human resource planning

  2. Recruiting

  3. Selecting

  
• Human resource planning


  Forecasting of HR needs and the projected matching of individuals with expected vacancies
• Recruiting


  Activities or practices that define the desired characteristics of applicants for specific jobs
• Job analysis


  Systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job
• Job description


  Concise summary of the specific tasks and responsibilities of a job
• Job specification


  Outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform a specific job adequately
• Selection tools


  • Application Form
  • Interview
  • Employment Test (Aptitude, typing skills etc)
  • Online Checks
• Managing talent


  1. Training and development

  2. Performance appraisal
• Training and development programs

  Planned effort by an organization to facilitate employees' learning of job-related skills and behaviors
• Training methods


  • On-the-Job Training (OJT)
  • Social Learning
  • Corporate Universities
  • Promotion from Within
• Performance appraisal


  Observing and assessing employee performance, recording the assessment, and providing feedback to the employee
• Performance appraisal issues


  • Stereotyping
  • Halo effect
• Behaviorally anchored rating scale (BARS)


  Performance evaluation technique that relates an employee's performance to specific job-related incidents
• Maintaining an effective workforce

  1. Compensation (Wages/Salary)

  2. Benefits

  3. Termination
• Compensation packages


  More than just money
• Types of benefits


  • Required by law (Social Security, Unemployment Compensation, Workers' Compensation)
  • Optional (Health Insurance, Vacations, Daycare, Fitness Centers)
• Cafeteria-plan benefits


  Address the diverse needs of employees
• Reasons for employee termination

  • Retirement
  • Voluntary Departure
  • Mergers & Cutbacks
  • Poor Performance
• Exit interview


  Interview conducted with departing employees to determine reasons for their departure and learn about potential problems in the organization