Human Resource

Management
Organizational Effectiveness
Development of
Human Resource
Management
Parallels the protection and treatment of
workers
4. Personnel Department
1. Social Welfare Department 1970 1990
1880 1935 a. Legal compliance
a. Helping injured workers and their
b. Staffing
families
b. Company unions: parties and social c. Performance evaluation
events d. Compensation and benefits
c. Worker health e. Employee relations
2. Labor Relations Department f. Safety and health
1935 1950 5. Human Resource Management
a. Collective bargaining
b. Contract administration
3. Industrial Relations Department
1950 1970
a. Labor relations
b. Benefits and vacations
c. Testing and selection
d. Compensation systems
 Staffing Model
Strategi Human
c Resourc
Busines e
Long- s Plannin
Strategic
Plannin Environmenta
g
range Planning l Scanning
planning g
Human
Resourc Middle-
Operational Forecasting
e range
Planning
Planning planning
Short- Goals and Projected
range Objectives Staffing
planning Requirements
Recruitme Recruitment
nt Planning
Applicant Search

Selectio Preliminary
n Screening
Selection
Decision
Placement
Forecasting
Employment Needs
1. Budgeting
2. Work-load Analysis
3. Unit Demand
4. Expert Opinion
5. Trend Predictions
 Example of Predicting Labor Supply and
Required New Hires for a Hotel Chain
Supply Analysis Supply Demand
Comparison
A B C D E F
% Quit Number of Projected Employees Projected Projected
(rounded) Present Turnover Left by Labor New Hires
(1996- Employees by 2000 2000 Demand in in 2000
Key Positions 1998) 2000
General Manager 38 25 10 15 32 17
Resident Manager 77 9 7 2 12 10
Food/Beverage 47 23 11 12 29 17
Director
Controller 85 25 21 4 32 28
Assistant Controller 66 14 9 5 18 13
Chief Engineer 81 24 16 8 31 23
Director of Sales 34 25 9 16 32 16
Sales Manager 68 45 30 15 58 43
Convention Manager 90 14 13 1 18 17
Catering Director 74 19 14 5 24 19
Banquet Manager 60 19 12 7 24 17
Personnel Director 43 15 6 9 19 10
Restaurant Manager 89 49 44 5 63 58
Executive Chef 70 24 17 7 31 24
Sous Chef 92 24 22 2 31 29
Typical Steps in the
Selection Process Placement on the job

Selection decision

Final interview

Drug testing

Reference checks

Employment
testing
Interviews

Application
blanks
Preliminary screening Reject applicant
Information that Generally
Should Not Be Used in
Employment Decisions
1. Height and weight
2. Marital Status/Number of Children/Child care
3. Educational level
4. English language skill
5. Names of friends or relatives working for the
employer
6. Arrest records
7. Conviction records
8. Discharge from military service
9. Citizenship
10. Economic Status
11. Availability to work weekends/holidays

Employers must show that there is a business necessity

to use these criteria. For example, an employer would
probably be able to discriminate in hiring a teller who had
been convicted of embezzling.
3D Model
of an
Organizati
on

Source: E.H. Schein, The

Individual, the Organization,
and the Career: A Conceptual
Scheme, Journal of Applied
Behavioral Science (1971): 401-
426.)
Methods of
Socialization
Custodial Innovative
Behavior Behavior
1. Formal versus Informal
2. Collective versus Individual
3. Sequential versus Nonsequential
4. Variable versus Fixed (Time)
5. Serial versus Disjunctive
6. Tournament versus Contest
7. Divestiture versus Investiture
Professional Career Stages:
Central Activities, Relationships,
and Psychological Issues in the Four
Career Stages
Stage I Stage II Stage III Stage IV
Central Helping Independe Training Shaping
Activity Learning nt Interfacing the
contributo direction
Following
r of the
directions
organizati
on
Primary Apprentic Colleagues Mentor Sponsor
Relations e
hip
Major Dependen Independe Assuming Exercising
Psycholog ce nce responsibil power
ical Issues ity for
others
Assessment Phase A Systems
Assess training
needs and resources Model for
Identify training
Training
objectives

Training and Development Phase

Select training
Develop Pretest
methods and
criteria trainees
learning principles
Evaluation Phase
Compare training
Conduct Monitor
outcomes against
training training
criteria

Feedback
Solving Performance
Problems
1. Describe the situation
2. Diagnose whether its an ability or
motivation problem
3. Use joint problem solving to come up with
solutions to the problem
4. Communicate consequences for the
problem
5. Handle emergent problems (but dont get
deflected from the core problem)
6. Decide who will do what by when and
follow up
Progressive Discipline

1. Verbal Warning
2. Verbal Reprimand
3. Written Reprimand
4. Suspension
5. Discharge
Solving the Surplus
Personnel Problem
1. Layoffs
2. Attrition
3. Reduced Hours/Job Sharing
4. Unpaid Vacations
5. Early Retirements
High Performance Work
Practices Financial
Performance
Sample: 968 U.S. firms with 100 or more employees
Financial Data: 10-K reports with the SEC
High Performance Work Practices: What proportion of the
workforce participates in:
1. Formal information sharing program
2. Formal job analysis
3. Hiring from within
4. Employee attitude surveys
5. Quality of Work Life Programs
6. Company incentive, profit-sharing, or gain-sharing plans
7. Formal grievance and complaint procedures
8. Pre-employment testing
9. Performance appraisals are used to determine promotion
10. Formal performance appraisals
11. Promotion by seniority or performance
12. Selection ratio for hiring
13. What is the average number of hours of training received per
employee per year?
 High Performance
Work Practices -
Results
A one standard deviation increase in
high performance work practices is
associated with:
7.05% decrease in turnover
$27,044 increase in sales annually per

employee
$18,641 increase in market value annually

per employee
$3,814 increase in profits annually per
employee
Source: Mark A. Huselid, The Impact of Human Resource Management Practices
on Turnover, Productivity, and Corporate Financial Performance. Academy of
Management Journal, vol 38 (1995): 635-672