Chapter 11

Human Resources Management

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter.

• Why Human Resources Is Important
– Explain how an organization’s human resources can be a significant source of competitive advantage. – List the eight activities necessary for staffing the organization and sustaining high employee performance.

• The Human Resources Management Process
– Discuss the environmental factors that most directly affect the HRM process.

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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LEARNING OUTLINE (cont’d)
Follow this Learning Outline as you read and study this chapter.

• Human Resources Planning
– Contrast job analysis, job description, and job specification.

• Staffing the Organization
– Discuss the major sources of potential job candidates. – Describe the different selection devices and discuss which ones work best for different jobs. – Explain what a realistic job preview is and why it’s important.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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LEARNING OUTLINE (cont’d)
Follow this Learning Outline as you read and study this chapter.

• Orientation and Skill Development
– Describe the different types of training and how that training can be provided.

• Managing and Rewarding Performance
– Describe the different performance appraisal methods.

• Compensation and Benefits
– Discuss the factors that influence employee compensation and benefits. – Describe skill-based pay systems.
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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LEARNING OUTLINE (cont’d)
Follow this Learning Outline as you read and study this chapter.

• Career Development
– Describe career development for today’s employees.

• Current Issues in Human Resources Management
– Explain how managers can manage downsizing. – Discuss how managers can manage workforce diversity. – Explain what sexual harassment is and what managers need to know about it. – Describe how organizations are dealing with work-life balances.

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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The Importance of Human Resources Management (HRM)
• Necessary part of the organizing function of management
– Selecting, training, and evaluating the workforce

• An important strategic tool
– HRM helps establish an organization’s sustainable competitive advantage.

• Adds value to the firm
– High performance work practices lead to both high individual and high organizational performance.

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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The HRM Process
• Functions of the HRM Process
– Identifying and selecting competent employees – Providing employees with up-to-date knowledge and skills to do their jobs – Ensuring that the organization retains competent and high-performing employees

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Exhibit 11.2 The Human Resources Management Process
Environment Human Resource Planning Identification and Selection of Competent Employees Recruitment Selection

Decruitment

Orientation

Training

Adapted and competent employees with up-to-date skills and knowledge Competent and high-performing employees who Career are capable of sustaining high performance over Development the long term

Performance Management

Compensation and Benefits

Environment

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Managing Human Resources
• Human Resources (HR) Planning
– The process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks – Helps avoid sudden talent shortages and surpluses – Steps in HR planning:
• Assessing current human resources • Assessing future needs for human resources and developing a program to meet those future needs

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Current Assessment
• Human Resources Inventory
– A review of the current makeup of the organization’s resources status – HR Management Information Systems (HRMIS)
• Tracks employee information for policy and strategic needs

– Job analysis
• An assessment that defines a job and the behaviours necessary to perform the job:
– Knowledge, skills, and abilities

• Requires conducting interviews, engaging in direct observation, and collecting the self-reports of employees and their managers
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Current Assessment (cont’d)
• Job Description
– A written statement of what the jobholder does, how it is done, and why it is done

• Job Specification
– A written statement of the minimum qualifications that a person must possess to perform a given job successfully

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Staffing the Organization
• Recruitment
– The process of locating, identifying, and attracting capable applicants to an organization

• E-recruiting
– Recruitment of employees through the Internet
• Organizational web sites • Online recruiters

• Decruitment
– The process of reducing a surplus of employees in the workforce of an organization
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Exhibit 11.4 Major Sources of Potential Job Candidates

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Exhibit 11.5 Decruitment Options

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Selection
• Selection Process
– The process of screening job applicants to ensure that the most appropriate candidates are hired

• Selection
– An exercise in predicting which applicants, if hired, will be (or will not be) successful in performing well on the criteria the organization uses to evaluate performance – Selection errors:
• Reject errors for potentially successful applicants • Accept errors for ultimately poor performers
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Exhibit 11.6 Selection Decision Outcomes
Selection Decision Accept Reject Reject error

Unsuccessful Successful

Later Job Performance

Correct decision

Accept error

Correct decision

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Types of Selection Devices
• • • • • • Application Forms Written Tests Performance Simulations Interviews Background Investigations Physical Examinations

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Exhibit 11.7 Selection Devices

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Other Selection Approaches
• Situational Interviews
– Interviews in which candidates are evaluated on how well they handle role play in mock scenarios

• Background Investigations
– Verification of application data – Reference checks:
• Lack validity because self-selection of references ensures only positive outcomes

• Physical Examinations
– Useful for physical requirements
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Tips for Managers: Some Suggestions for Interviewing
• • • • • • • Structure a fixed set of questions for all applicants. Have detailed information about the job for which applicants are interviewing. Minimize any prior knowledge of applicants’ background, experience, interests, test scores, or other characteristics. Ask behavioural questions that require applicants to give detailed accounts of actual job behaviours. Use a standardized evaluation form. Take notes during the interview. Avoid short interviews that encourage premature decision making.
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Source: Based on D.A. DeCenzo and S.P. Robbins, Human Resource Management, 7th ed. (New York, Wiley: 2002, p. 200)
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

Exhibit 11.9 Quality of Selection Devices as Predictors

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Orientation and Skill Development
• Bringing a new employee into the organization
– Work-unit orientation
• Familiarizes new employee with work-unit goals • Clarifies how his or her job contributes to unit goals • Introduces employee to his or her co-workers

– Organization orientation
• Informs new employee about the organization’s objectives, history, philosophy, procedures, and rules • Includes a tour of the entire facility
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Exhibit 11.10 Types of Training
• • • • • • • Interpersonal skills Technical Business Mandatory Performance management Problem solving/decision making Personal
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Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

Exhibit 11.11 Employee Training Methods
• Traditional Training Methods
– On-the-job – Job rotation – Mentoring and coaching – Experiential exercises – Workbooks/manuals – Classroom lectures

• Technology-based Training Methods
– CD-ROM/ DVD/videotapes/ audiotapes – Videoconferencing/ teleconferencing/ satellite TV – E-learning or other interactive modules.

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Exhibit 11.12a Occupations of Employees Who Receive Training
100 90 80 70 60 50 40 30 20 10 0

Professional and managerial white collar occupations Clerical, sales, and service white collar occupations Blue collar occupations

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Exhibit 11.12b How Employees Train Themselves
100 90 80 70 60 50 40 30 20 10 0

Sought advice from someone Used the Internet or computer software Observed someone perform a task Consulted books/manuals/other documents Taught themselves by trying different methods

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Managing and Rewarding Performance
• Performance Management System
– A process establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and to provide documentation in support of those decisions

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Performance Appraisal Methods
• • • • Written Essays Critical Incidents Graphic Rating Scales Behaviourally Anchored Rating Scales (BARS) • Multiperson Comparisons • Management by Objectives (MBO) • 360-Degree Feedback
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Exhibit 11.13 Advantages and Disadvantages of Performance Appraisal Methods

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Compensation and Benefits
• Benefits of a Fair, Effective, and Appropriate Compensation System
– Helps attract and retain high-performance employees – Impacts on the strategic performance of the firm

• Types of Compensation
– – – – Base wage or salary Wage and salary add-ons Incentive payments Skill-based pay
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Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

Exhibit 11.14 Factors That Influence Compensation and Benefits
How long has employee been with company and how has he or she performed? Does job require high levels of skills? How large is the company?

Employee’s Tenure and Performance Size of Company

How profitable is the company?

Kind of Job Performed

What industry is job in?

Company Profitability Geographical Location
Where is organization located?

Level of Compensation and Benefits

Kind of Business Unionization

Management Philosophy

Labour- or Capital-Intensive

Is business unionized?

What is management’s philosophy toward pay?

Is business labour- or capital-intensive?

Sources: Based on R.I. Henderson, Compensation Management, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1994), pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Career Development
• Career Defined
– A sequence of positions held by a person during his or her lifetime

• Career Development
– Provides for information, assessment, and training – Helps attract and retain highly talented people

• Boundaryless Career
– A career in which individuals, not organizations, define career progression, organizational loyalty, important skills, and marketplace value
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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(ranked in order of importance) 1. Enjoying what they do 2. Opportunity to use skills and abilities 3. Opportunity for personal development 4. Feeling what they do matters 5. Benefits 6. Recognition for good performance 7. Friendly co-workers 8. Job location 9. Lots of money 10. Working on teams

Top 10 Job Factors for College Graduates

Source: Based on V. Frazee. “What’s Important to College Grads in Their First Jobs?” Personnel Journal, July 1996, p. 21.

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Tips for Managers: Some Suggestions for a Successful Management Career

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Contemporary HRM Issues
• Managing Downsizing
– The planned elimination of jobs in an organization
• Provide open and honest communication • Reassure survivors

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Contemporary HRM Issues (cont’d)
• Managing Workforce Diversity
– Recruitment for diversity – Selection without discrimination – Orientation and training that is effective

Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Contemporary HRM Issues (cont’d)
• Sexual Harassment
– An unwanted activity of a sexual nature that affects an individual’s employment
• The Supreme Court of Canada definition: Unwelcome behaviour of a sexual nature in the workplace that negatively affects the work environment or leads to adverse job-related consequences for the employee • There continues to be disagreement as to what specifically constitutes sexual harassment.

– An offensive or hostile environment
• An environment in which a person is affected by elements of a sexual nature
Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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Contemporary HRM Issues (cont’d)
• Work-Life Balance
– Employees have personal lives that they don’t leave behind when they come to work. – Organizations have become more attuned to their employees by offering family-friendly benefits:
• • • • • • On-site child care Summer day camps Flextime Job sharing Leave for personal matters Flexible job hours
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Chapter 11, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Eighth Canadian Edition. Copyright © 2005 Pearson Education Canada Inc.

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