MANAGEMENT RICHARD L. DAFT. Managing Human Resources CHAPTER 11

MANAGEMENT

RICHARD L. DAFT

Managing Human Resources

CHAPTER 11

Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved.

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Learning Outcomes

• Explain the strategic role of human resource management.

• Describe federal legislation and societal trends that influence human resource management.

• Explain what the changing social contract between organizations and employees means for workers and human resource managers.

• Show how organizations determine their future staffing needs through human resource planning.

• Describe the tools managers use to recruit and select employees.

• Describe how organizations develop an effective workforce through training and performance appraisal.

• Explain how organizations maintain a workforce through the administration of wages and salaries, benefits, and terminations.


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Getting the Right People on the Bus

• Hiring and keeping quality employees is one of the most urgent concerns for today’s organizations

• Talent management is a top priority for managers

• Human Resources is the design and application of formal systems to ensure the effective and efficient use of human talent

• Attracting, developing, and maintaining an effective workforce


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The Strategic Role of HRM is to Drive Organizational

Performance

• Managers are involved in human resource management

• Employees are viewed as assets

• Employees provide the competitive edge

– Right people to become more competitive on a global basis

– Right people for improving quality, innovation, and customer service

– Right people to retain during mergers and acquisitions

– Right people to apply new information technology for e-business


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Strategic Human Resource Management


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Building Human Capital to Drive Performance

• Human Capital refers to the economic value of the combined knowledge, experience, skills and capabilities of employees

– Strategies for finding the best talent

– Enhancing skills and knowledge with training programs

– Opportunities for personal and professional development

– Compensation and benefits that support knowledge sharing


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The Role and Value of Human Capital

Investments


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Globalization

• Globalization requires international human resource management (IHRM)

• Managing diverse people on a global scale

• HR practices and trends are converging globally

• IHRM Managers must be culturally sensitive

• Policies and practices must be culturally sensitive


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Trends in International Human Resource

Management


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The Impact of Federal Legislation on HRM

• Federal laws are enacted to ensure equal employment opportunity

• The purpose of laws is to stop discriminatory practices

• The Equal Employment Opportunity Commission (EEOC) was created by the Civil Rights Act of 1964


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Major Federal Laws Related to Human

Resource Management


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The Changing Social Contract

• Changes in the business environment have changed the social contract, a bulletin board at a company restructuring noted:

– We can’t promise you how long we’ll be in business

– We can’t promise you that we won’t be acquired

– We can’t promise that there’ll be room for promotion

– We can’t promise that your job will exist when you reach retirement age

– We can’t promise that the money will be available for your pension

– We can’t expect your underlying loyalty, and we aren’t even sure we want it


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The New Contract vs. The Old Contract


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Innovations in HRM

• Becoming an Employer of Choice

• Using Temporary and Part-Time Employees

• Promoting Work/Life Balance

• Rightsizing the Organization


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Attracting an Effective Workforce


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Human Resource Planning

• What new technologies are merging, and how will these affect the work system?

• What is the volume of the business likely to be in the next five to ten years?

• What is the turnover rate, and how much, if any, is avoidable?

• What types of engineers will we need, and how many?

• How many administrative personnel will we need to support the additional engineers?

• Can we temporary, part-time, or virtual workers to handle some tasks?


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Recruiting

• Assessing Organizational Needs

• Realistic Job Previews

• Legal Considerations

• E-cruiting

• Innovations in Recruiting


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Sample Corporate Recruiting Policy


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Selecting

• Application Form

• Interview

• Employment Test

• Online Checks


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Applications and Interviews: What Can You

Ask?


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Managing Talent

Training and Development

On-the-job Training

Corporate Universities

Promotion from Within

Mentoring and Coaching


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Methods and Goals of Training


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Performance Appraisal

• Accurately assess performance through the development and application of assessment systems such as rating scales

• Training managers to effectively use the performance appraisal interview so managers can provide feedback that reinforces good performance and motivate development


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Behavior Anchored Rating Scale


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Maintaining An Effective Workforce

• Managers and HRM professionals must maintain a workforce that has been recruited and developed:

Compensation

Benefits

Termination


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Benefits

• Compensation packages are more than money

• Some benefits are required by law

– Social Security, Unemployment Compensation, Workers’ Compensation

• Other types of benefits are optional

– Health Insurance, Vacations, Daycare, Fitness Centers

– Employees are beginning to absorb more health insurance costs

• Many organizations offer cafeteria-plan benefits to address the diverse needs of employees


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Termination

• Retirement

• Voluntary Departure

• Mergers & Cutbacks

• Poor Performance

• Termination dismisses poor performers

• Opportunity to learn about dissatisfaction through exit interview

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MANAGEMENT RICHARD L. DAFT. Managing Human Resources CHAPTER 11