Human Resource Management

Management 11e John Schermerhorn
Chapter 12
Human Resource
Management
Planning Ahead — Chapter 12 Study Questions
1. What is human resource management?

2. How do organizations attract a quality
workforce?
3. How do organizations develop a quality
workforce?
4. How do organizations maintain a quality
workforce?
Management 11e Chapter 12 2

Study Question 1: What is human resource management?
 Human capital is the economic value of

people with job-relevant abilities,
knowledge, ideas, energies and
commitments

 Human Resource Management is a

process of attracting, developing, and
maintaining a talented work force

Study Question 1: What is strategic human resource management?
 Major human resource management

responsibilities:

 Person-job fit
 The individual’s skills, interests, and personal
characteristics are consistent with the
requirements of work
 Person-organization fit
 The individuals values, interests, and
behavior are consistent with the culture of
the organization

 Strategic human resource management

mobilizes human capital to implement
organizational strategies

 Discrimination in employment
 Occurs when someone is denied a job or job
assignment for reasons that are not job relevant

 Equal employment opportunity

 The right to employment without regard to race,
color, national origin, religion, gender, age, or
physical or mental ability
 Title VII of the Civil Rights Act of 1964
 Equal Employment Opportunity Act of 1972
 Civil Rights Act (EEOA) of 1991

Figure 12.1 A sample of U.S. laws against employment
discrimination

 Affirmative action
 An effort to give preference in employment to
women and minority group members
 Bona fide occupational qualifications
 employment criteria justified by capacity to
perform a job

 Additional laws against employment

discrimination:
 Americans With Disabilities Act of 1990
 Age Discrimination in Employment Act of
1967 as amended in 1978 and 1986
 Pregnancy Discrimination Act of 1978
 Family and Medical Leave Act of 1993

 Current legal issues in HRM

 Sexual harassment
 Equal pay and comparable worth
 Legal status of independent contractors
 Workplace privacy

Study Question 2: How do organizations attract a quality
workforce?
 Human resource planning analyzes an

organization’s HR needs and how to best
fill them

Figure 12.2 Steps in strategic human resource planning

workforce?
 The foundation of human resource planning is

job analysis
 The orderly study of job facts to determine just what
is done, when, where, how, why, and by whom in
existing or potential new jobs
 Job analysis provides information for
developing:
 Job descriptions
 Job specifications

workforce?
 Recruitment
 Activities designed to attract a qualified pool
of job applicants to an organization
 Steps in the recruitment process:
 Advertisement of a job vacancy
 Preliminary contact with potential
job candidates
 Initial screening to create
a pool of qualified applicants

workforce?

workforce?
 Selection
 Choosing from a pool of
applicants the person or
persons who offer the
greatest performance
potential

workforce?
 Selection process

Figure 12.3 Steps in the selection process: the case of a rejected job
applicant

workforce?
 Reliability means that a selection device

gives consistent results time after time
 Validity means that there is a clear
relationship between what the selection
device measures and job performance

workforce?
 Interviews
 Unstructured interviews do not follow a
formal and pre-established of questions
 Behavioral interviews ask job applicants
about past behaviors that relate to the job
 Situational interviews ask job applicants how
they would react in specific situations

workforce?
 Employment Tests
 Used to further screen applicants by
gathering additional job-relevant information
 Assessment centers examine how job
candidates handle
simulated work situations
 Work sampling
involves observing
applicants performing
actual work tasks
workforce?
 Employment Tests
 Biodata methods collect biographical
information that has been proven to correlate
with good job performance along with other
traits such as

Study Question 3: How do organizations develop a quality
workforce?
 Socialization
 Process of influencing the expectations,
behavior, and attitudes of a new employee in
a way considered desirable by the
organization
 Orientation
 Set of activities designed to familiarize new
employees with their jobs, coworkers, and
key aspects of the organization
workforce?
 Training
 Activities that provide the opportunity to
acquire and improve job-related skills

workforce?
 Performance management systems

ensure that
 Performance standards and objectives are
set
 Performance results are assessed regularly
 Actions are taken to improve future
performance potential

workforce?
 Performance appraisal
 Formally assessing someone’s work
accomplishments and providing feedback
 Purposes of performance appraisal:
 Evaluation — lets people know where they stand
relative to objectives and standards
 Development — assists in training and continued
personal development of people

workforce?
 Graphic rating scales

 A trait-based performance appraisal that
includes checklists of traits or characteristics
to evaluate performance
 Relatively quick and
easy to use
 Questionable reliability
and validity

workforce?
 Behaviorally anchored rating scales (BARS)

 A behavior-based performance appraisal that
describes actual behaviors that exemplify
various levels of performance achievement in
a job
 More reliable and valid than graphic rating
scales
 Helpful in training people to master important
job skills
Figure 12.4 Sample behaviorally anchored rating scale for
performance appraisal

workforce?
 Recency bias is the

tendency for evaluators
to focus on recent
behaviors instead of
behavior that occurred
throughout the
evaluation period

workforce?
 Critical-incident techniques
 Keeping a running log or inventory of
effective and ineffective behaviors
 Documents success or failure patterns

workforce?
 Results-based performance appraisals

focus on accomplishments
 Usually qualitative and objective
 Determining what to measure may be difficult
 May create ethical problems

workforce?
 Multiperson comparisons
 Formally compare one person’s performance
with that of one or more others
 Types of multiperson comparisons:
 Rank ordering
 Paired comparisons
 Forced distributions

workforce?
 360° feedback
 Occurs when superiors, subordinates, peers,
and even internal and external customers are
involved in the appraisal of a jobholder’s
performance

Study Question 4: How do organizations maintain a quality
workforce?
 Work-life balance
 How people balance career demands with
personal and family needs
 Progressive employers support a healthy
work-life balance

workforce?
 Contemporary work-life
balance issues:
 Single parent concerns
 Dual-career couples
concerns
 Family-friendliness as
screening criterion used by
candidates

workforce?
 Compensation and benefits

 Base compensation
 Salary or hourly wages
 Flexible benefits
 Employees can select
a set of benefits within a
certain dollar amount

workforce?
 Pay for performance

 Paying people for performance is consistent with:
 Equity theory
 Expectancy theory
 Reinforcement theory
 Merit pay
 Awards a pay increase in proportion to individual
performance contributions
 Provides performance contingent reinforcement

workforce?
 Bonus pay plans

 One-time payments based
on the accomplishment of
specific performance targets
or some extraordinary
contribution

workforce?
 Profit-sharing plans
 Some or all employees receive a proportion of
net profits earned by the organization
 Gain-sharing plans
 Groups of employees share in any savings
realized through their efforts to reduce costs and
increase productivity

workforce?
 Employee stock ownership plans

 Employees purchase company stock directly
through employer, sometimes at a discount
 Stock options
 Employees have the right to purchase
company stock at a fixed price in the future
as a performance incentive

workforce?
 Benefits
 Non-monetary forms of compensation
 Required
 Social security
 Unemployment insurance
 Worker’s compensation
 Not required
 Health insurance
 Retirement plans
 Paid time off

workforce?
 Flexible benefits
 Allow employees to choose from a set of benefits
 Family-friendly benefits
 Help in balancing work and nonwork
responsibilities
 Employee assistance programs
 Help employees deal with troublesome personal
problems

workforce?
 Retention
 Keeping well trained and productive
employees
 Turnover
 management of promotions,
transfers, terminations,
layoffs, and retirements

workforce?
 Early retirement
 Financial incentive offered to
employees who retire early
 Termination
 Involuntary dismissal of an
employee

workforce?
 Employment-at-will
 Employees can be terminated at any time for any
reason
 Wrongful discharge
 Workers have legal protection from discriminatory
firings

workforce?
 Labor-management relations
 Labor unions deal with employers on the
workers’ behalf
 Collective bargaining
 Process of negotiating, administering and
interpreting a labor contract

workforce?

The traditional adversarial view of labor-management relations

Chapter 12 Case
 Netflix: Making Movie Magic

For activities and assessments, please visit…
 www.wiley.com/college/schermerhorn

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Management 11e John Schermerhorn

1. What is human resource management?

Management 11e Chapter 12 2

 Human capital is the economic value of

Management 11e Chapter 12 3

 Human Resource Management is a

Management 11e Chapter 12 4

 Major human resource management

Management 11e Chapter 12 5

Management 11e Chapter 12 6

 Strategic human resource management

Management 11e Chapter 12 7

Management 11e Chapter 12 8

 Equal employment opportunity

Management 11e Chapter 12 9

Management 11e Chapter 12 10

Management 11e Chapter 12 11

 Additional laws against employment

Management 11e Chapter 12 12

 Current legal issues in HRM

Management 11e Chapter 12 13

 Human resource planning analyzes an

Management 11e Chapter 12 14

Management 11e Chapter 12 15

 The foundation of human resource planning is

Management 11e Chapter 12 16

Management 11e Chapter 12 17

Management 11e Chapter 12 18

Management 11e Chapter 12 19

Management 11e Chapter 12 20

Management 11e Chapter 12 21

 Reliability means that a selection device

Management 11e Chapter 12 22

Management 11e Chapter 12 23

Management 11e Chapter 12 25

Management 11e Chapter 12 27

 Performance management systems

Management 11e Chapter 12 28

Management 11e Chapter 12 29

 Graphic rating scales

Management 11e Chapter 12 30

 Behaviorally anchored rating scales (BARS)

Management 11e Chapter 12 32

 Recency bias is the

Management 11e Chapter 12 33

Management 11e Chapter 12 34

 Results-based performance appraisals

Management 11e Chapter 12 35

Management 11e Chapter 12 36

Management 11e Chapter 12 37

Management 11e Chapter 12 38

Management 11e Chapter 12 39

 Compensation and benefits

Management 11e Chapter 12 40

 Pay for performance

Management 11e Chapter 12 41

 Bonus pay plans

Management 11e Chapter 12 42

Management 11e Chapter 12 43

 Employee stock ownership plans

Management 11e Chapter 12 44

Management 11e Chapter 12 45