CH 10 Ed 6

Exploring Management
John R. Schermerhorn, Jr., and Daniel G. Bachrach

Sixth Edition
Chapter 10
Human Resource Management

A Pew Research study reports
that 50% of working fathers and
56% of working mothers have a
“very” or “somewhat difficult”
time balancing work and family .
. . 50% of working fathers and
23% of working mothers believe
they “spend too little time with
kids.”
Copyright ©2018 John Wiley & Sons, Inc. 2

Your Chapter 10 Takeaways
• Understand the purpose and legal context
of human resource management (10.1)
• Identify essential human resource
management practices (10.2)
• Recognize current issues in human
resource management (10.3)

HRM PURPOSE AND LEGAL CONTEXT 10.1
Takeaway 10.1 – answers to come

• Human resource management attracts, develops, and
maintains a talented workforce
• Strategic human resource management aligns human
capital with organizational strategies
• Laws protect against employment discrimination.
• Laws can’t guarantee that employment
discrimination will never happen

Human Resource Management

1. Attracting a quality workforce—focus on employee
recruitment and selection
2. Developing a quality workforce—focus on
employee orientation, training and development,
and performance management
3. Maintaining a quality workforce—focus on career
development, work–life balance, compensation
and benefits, retention and turnover, and labor–
management relations

Strategic Human Resource Management

• Human capital
• skills, knowledge, innovation, creativity, energy and
commitment to offer to the organization
• Strategic human resource management
• aligns human capital with organizational strategies.
• Person-job fit
• the match between an individual's skills, interests and
abilities to the requirements of the position
• Person-culture fit
• the extent to which an individual’s values are consistent with
the culture of the organization.
• Employee value proposition
• packages of opportunities and rewards that make diverse and
talented people want to belong to and work hard for the
organization
Discrimination Laws to Protect

• Job discrimination
• Employment decisions made for reasons that
are not relevant to the job
• Equal employment opportunity (EEO)
• The right to employment without regard to
race, religion, color, national origin, gender
• Title VII of the Civil Rights Act of 11064 is
an important law that guarantees equal
employment opportunity

Discrimination Laws
• Affirmative Action
• Effort to give employment preference to women and minority
group members
• Affirmative Action plans
• Attempt to ensure that percentage of minorities within the
organization are a similar proportion to the labor market
availability
• Reverse discrimination
• Claims of discrimination by majority populations
• Bona fide occupational qualifications
• Criteria for employment is justified for ability to perform a job
• May seem discriminatory
• Example – female locker room attendant
Sample of U.S. Discrimination Laws
FIGURE 10.1 Sample of U.S. Laws Against Employment Discrimination.

Employee Rights
• Gender Identity Discrimination and Sexual Orientation
• Biased employment decisions based on gender
identity/sexual orientation
• Pay discrimination and comparable worth
• People w/similar jobs should receive comparable pay
• Lillie Ledbetter Fair Pay Act
• Pregnancy discrimination
• Penalizes women as applicants or employees for
being pregnant
• Age discrimination
• Penalizes employees 40 and over as applicants or
employees
Study Guide for Takeaway 10.1

Rapid Review:
• The human resource management process involves
attracting, developing, and maintaining a quality
workforce.
• Job discrimination occurs when someone is denied an
employment opportunity for reasons that are not job
relevant.
• Equal employment opportunity legislation guarantees
people the right to employment and advancement
without discrimination.
• Current legal issues in the work environment deal with
workplace privacy, pay, pregnancy, and age, among other
matters.

Questions for Discussion:
1. How might the forces of globalization affect
human resource management in the future?
2. Are current laws protecting American workers
against discrimination in employment
sufficient, or do we need additional ones?
3. What employee rights issues and concerns
would you add to those discussed here?

Be Sure You Can…for Takeaway 10.1

• explain the purpose of human resource
management.
• differentiate job discrimination, equal
employment opportunity, and affirmative action.
• identify major U.S. laws protecting against
employment discrimination.
• explain the issues of workplace privacy that
today’s college graduates should be prepared to
face.

HRM PRACTICES 10.2

• Psychological contracts set the exchange of value between
individuals and organizations
• Recruitment attracts qualified job applicants.
• Selection makes decisions to hire qualified job applicants.
• Onboarding introduces new hires to the organization
• Training continually develops employee skills and
capabilities.
• Performance reviews assess work accomplishments.
• Career development provides for retention and career
paths.
HRM PRACTICES 10.2
Psychological contracts
The exchange of value between the individual
and the organization in an employment
relationship
FIGURE 10.2 A Psychological Contract Links Individuals and Organizations

HRM PRACTICES 10.2
Recruitment
• Recruitment
• Attracting a pool of qualified applicants
• Online Recruitment
• Using the Web to disseminate job openings and
search for qualified applicants
• Realistic job preview
• Gives the candidate both the good and bad
• Often highlights rewards and challenges of the
position
• Traditional recruitment
• Emphasizes selling the job to the applicant; positives
are played up; negatives are avoided or glossed over

HRM PRACTICES 10.2
Online and Telephone Recruiting

Steps to Success in Telephone and Online Interviews
Prepare ahead of time—Study the organization; carefully list your strengths and
capabilities; have materials ready for note taking.
Interview in private—Make sure you are in a private place that is quiet and free of
interruptions; turn off phone and computer alerts.
Dress professionally—Don’t be casual, even if at home; dressing right increases confidence
and sets a professional tone.
Practice your “voice” and “screen presence”—Your impression will be made quickly; you
must sound and look right to succeed.
Have a list of questions ready—Don’t be caught unprepared; interject your best questions
during the interview.
Ask what happens next—Find out how to follow up; ask what other information you can
provide; clarify the time frame for a decision.
Follow up—Don’t forget to send a thank you email that reiterates your interest in the job.

HRM PRACTICES 10.2
Selection
Selection
• Choosing applicants with the greatest potential from the
pool
• Reliability
• Employment test or selection device provides consistent
measurement of applicant skills, time after time.
• Validity
• Employment test or selection device is a good predictor
of future job performance.
• Job audition
• trial hire where a job candidate is given a short-term
employment contract in order to demonstrate their
performance capability
HRM PRACTICES 10.2
Selecting
• Assessment centers
• Evaluates applicant abilities by observing
performance in simulated work activities
• Work sampling
• Actual work is graded by observers

HRM PRACTICES 10.2
Onboarding
• Socialization
• Process of influencing the expectations,
behavior, and attitudes of new employees in a
positive way
• Onboarding
• program of activities that introduce a new hire
to the policies, practices, expectations , and
culture of the organization and its teams
• Orientation
• Activities that familiarize new employees with
the new job and the organization
HRM PRACTICES 10.2
Training
• Training
• Improves employee skills and capabilities
• Coaching
• Experienced employees provide advice and
motivation
• Mentoring
• Experienced employees share expertise with
newer employees
• Reverse mentoring
• Newer employees share expertise (technology,
social media) with experienced employees

HRM PRACTICES 10.2
Performance Reviews
• Performance Review or Performance
Appraisal
• Process of assessing and providing
feedback on employee work
accomplishment
• Document performance
• Communicate performance
• Identify how to improve performance

HRM PRACTICES 10.2
Performance Reviews
• Graphic rating scale
• Checklist or score card for rating
employee traits or performance
characteristics
• Quality of work
• Quantity of work
• Attendance
• Punctuality

HRM PRACTICES 10.2
Performance Reviews
• Behaviorally Anchored Rating Scale (BARS)
• Describes actual behaviors that indicate various levels of
performance
Figure 10.3 Use of a Behaviorally Anchored

Rating Scale for Performance Appraisal.

HRM PRACTICES 10.2
Performance Reviews
• Critical incident technique
• Keeps an actual record of employee behavior in
certain circumstances
• 360 degree feedback
• Input from those who work with the employee
• Direct report employees
• Direct supervisor
• Peers
• Multiperson Comparison
• Compares one person’s performance with that of
others
HRM PRACTICES 10.2
Career Development and Retention
• Career Development
• Process of career growth and progress
• Career Planning
• Matching career goals and individual
abilities with opportunities

HRM PRACTICES 10.2

Rapid Review:
• Recruitment is the process of attracting qualified job candidates to fill vacant
positions; realistic job previews try to provide candidates with accurate
information on the job and organization.
• Assessment centers and work sampling that mimic real job situations are
increasingly common selection techniques.
• Orientation is the process of formally introducing new employees to their
jobs and socializing them to the culture and performance expectations.
• Training keeps workers’ skills up to date and job relevant; important training
approaches include coaching and mentoring.
• Performance appraisal methods include graphic rating scales, behaviorally
anchored rating scales, the critical-incidents technique, 360 feedback, and
multi-person comparisons.
• Employee retention programs try to keep skilled workers in jobs and on
career paths satisfying to them and beneficial to the employer.

HRM PRACTICES 10.2

1. Is it realistic to expect that you can get a
realistic job preview during the interview
process?
2. If a new employer doesn’t formally assign
someone to be your coach or mentor, what
should you do?
3. What are some of the possible downsides to
receiving 360 feedback?

HRM PRACTICES 10.2

• list steps in the recruitment process.
• explain realistic job previews.
• illustrate reliability and validity in employment
testing.
• illustrate how an assessment center might work.
• explain the importance of socialization and
orientation.
• describe coaching and mentoring as training
approaches.
• discuss strengths and weaknesses of alternative
performance appraisal methods.
CURRENT ISSUES 10.3

• Demands are increasing for job flexibility and
work–life balance.
• More people are working as independent
contractors and contingency employees.
• Compensation plans influence recruitment and
retention.
• Fringe benefits are an important part of
compensation.
• Labor relations and collective bargaining are
closely governed by law.
CURRENT ISSUES 10.3
Work-life balance
• Work-life balance
• Balancing career demands with personal and
family needs
• Fast-paced and complicated lifestyles raise
concerns about work-life balance
• Job candidates now use “family-friendliness”
as a screening criterion
• Also used as “best employer” rankings by
business magazines

CURRENT ISSUES 10.3
Employment Trends
• Independent contractors
• Hired with temporary contracts
• Not permanent employees
• Contingency workers
• Sometimes called permatemps
• Work regular or part-time hours on long-term
basis
• Not permanent employees

CURRENT ISSUES 10.3
Compensation Plans
• Merit pay
• Pay increase for good job performance
• Bonus pay
• One-time payment for performance or
accomplishments

CURRENT ISSUES 10.3
Compensation
• Profit sharing
• Distributes portion of profits to
employees
• Gain sharing
• Distributes portion of cost savings to
employees
• Stock options
• Right to purchase stock at a fixed price
in the future
CURRENT ISSUES 10.3
Fringe Benefits
• Fringe benefits
Non-monetary compensation
• Health insurance, retirement plans, paid time off
Family friendly benefits
• Help employees balance work, personal, and
family life
Flexible benefits
• Employees personalize benefits within a set
allowance or dollar amount
Employee assistance programs
• Help employees cope with personal stress and
problems
CURRENT ISSUES 10.3
Labor Relations
• Labor unions
• Deal with employers on worker’s behalf
• Labor contracts
• Agreement between employees and employer
• Wages
• Hours
• Benefits
• Working conditions
• Seniority

CURRENT ISSUES 10.3
Labor Relations
Collective bargaining
• Process that brings management and union
representatives together for negotiating,
administering and interpreting labor contracts
Figure 10.4 What Happens When Labor–Management

Relations Become Adversarial?

CURRENT ISSUES 10.3

Rapid Review:
• Complex job demands and family responsibilities have
made work-life balance programs increasingly important
in human resource management.
• Compensation and benefits packages must be attractive
so that an organization stays competitive in labor markets.
• Labor unions are organizations to which workers belong
and that deal with employers on the employees’ behalf.
• Collective bargaining is the process of negotiating,
administering, and interpreting a labor contract.
• Labor relations and collective bargaining are closely
governed by law and can be cooperative or adversarial in
nature.
CURRENT ISSUES 10.3

1. Are we giving too much attention these days to
issues of work-life balance?
2. Can a good argument be made that merit pay
just doesn’t work?
3. Given economic trends, is it likely that unions
will gain in future popularity?

CURRENT ISSUES 10.3

• define work-life balance and discuss its
significance for the human resource management
process.
• explain why compensation and benefits are
important in human resource management.
• differentiate bonuses and profit sharing as forms
of performance-based pay.
• define the terms “labor union,” “labor contract,”
and “collective bargaining.”
• compare the adversarial and cooperative
approaches to labor-management relations.

Copyright
Copyright © 2018 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that permitted in
Section 117 of the 11076 United States Act without the express written permission of the
copyright owner is unlawful. Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up
copies for his/her own use only and not for distribution or resale. The Publisher assumes
no responsibility for errors, omissions, or damages, caused by the use of these programs
or from the use of the information contained herein.
Copyright ©2018 John Wiley & Sons, Inc.

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Exploring Management

John R. Schermerhorn, Jr., and Daniel G. Bachrach

Human Resource Management

Copyright ©2018 John Wiley & Sons, Inc. 2

Copyright ©2018 John Wiley & Sons, Inc. 3

Takeaway 10.1 – answers to come

Copyright ©2018 John Wiley & Sons, Inc. 4

Human Resource Management

Copyright ©2018 John Wiley & Sons, Inc. 5

Strategic Human Resource Management

Discrimination Laws to Protect

Copyright ©2018 John Wiley & Sons, Inc. 7

Sample of U.S. Discrimination Laws

FIGURE 10.1 Sample of U.S. Laws Against Employment Discrimination.

Copyright ©2018 John Wiley & Sons, Inc. 9

Study Guide for Takeaway 10.1

Study Guide for Takeaway 10.1

Copyright ©2018 John Wiley & Sons, Inc. 12

Be Sure You Can…for Takeaway 10.1

Copyright ©2018 John Wiley & Sons, Inc. 13

Takeaway 10.2 – answers to come

FIGURE 10.2 A Psychological Contract Links Individuals and Organizations

Copyright ©2018 John Wiley & Sons, Inc. 15

Copyright ©2018 John Wiley & Sons, Inc. 16

Online and Telephone Recruiting

Copyright ©2018 John Wiley & Sons, Inc. 17

Copyright ©2018 John Wiley & Sons, Inc. 19

Copyright ©2018 John Wiley & Sons, Inc. 21

Copyright ©2018 John Wiley & Sons, Inc. 22

Copyright ©2018 John Wiley & Sons, Inc. 23

Figure 10.3 Use of a Behaviorally Anchored

Copyright ©2018 John Wiley & Sons, Inc. 24

Copyright ©2018 John Wiley & Sons, Inc. 26

Study Guide for Takeaway 10.2

Copyright ©2018 John Wiley & Sons, Inc. 27

Study Guide for Takeaway 10.2

Copyright ©2018 John Wiley & Sons, Inc. 28

Be Sure You Can…for Takeaway 10.2

Takeaway 10.3 – answers to come

Copyright ©2018 John Wiley & Sons, Inc. 31

Copyright ©2018 John Wiley & Sons, Inc. 32

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Copyright ©2018 John Wiley & Sons, Inc. 36

Figure 10.4 What Happens When Labor–Management

Copyright ©2018 John Wiley & Sons, Inc. 37

Study Guide for Takeaway 10.3

Study Guide for Takeaway 10.3

Copyright ©2018 John Wiley & Sons, Inc. 39

Be Sure You Can…for Takeaway 10.3

Copyright ©2018 John Wiley & Sons, Inc. 40

Copyright ©2018 John Wiley & Sons, Inc.

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