BA 210: Human Resources Management

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BA 210 Human Resources Management
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Review Session (Mon Mar 31) and Exam 2 (Wed Apr
2)

• Review Session Monday
• Same as last time Take student questions.
  Optional attendance.
• Sample questions and study guide to be available
  after this class.
• Take questions at review session, office hours,
  TAs.
• Exam 2 Wednesday Oct 30 Covers Part 2 of course
• Last Name starting with A-T Right here
• Last Name starting with U-Z Lincoln 192
• Format 50 questions, mostly multiple choice
• 70 minutes maximum, can leave after 35 minutes
• Please bring Ids.
• Comments relative to first exam

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Part Two Organizations and Environment
Environment
Organization
Organizational Culture
Ethics
Strategy
Global Mgmt
Organizational Structure
Organizational Design
Human Resources Mgmt
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Why is Human Resources Management (HRM) important
to you?

• HRM will affect
• your ability to get and keep an job
• your salary and benefits
• your chances for promotion
• your chance to be treated fairly
• You need to understand the HRM policies of your
  organization
• HRM is a fundamental part of managers jobs
• Interview job candidates
• Evaluate work performance

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Todays Roadmap

• Objective To understand key issues in human
  resource management, particularly
• Human Resources Mgmt Competitive Advantage
• Human Resource Planning
• Recruitment and Selection
• Performance Appraisal and Feedback
• Very descriptive day today

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Human resource management and competitive
advantage

• Big trend in the past two decades to link human
  resource practices, strategy and performance
• Strategic HRM managing the HRM system to
  support the organizations strategy and goals
• Strategic HRM aims to enhance the organizations
  efficiency, quality, innovation, and
  responsiveness to customers.
• In contrast to HRM as personnel administering
  policies
• High performance work practices
• E.g., Cross-functional and self-managed work
  teams, TQM, employee involvement, training,
  information sharing

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HRM Systems and Market Value
410,000
Market Value in Dollars per Employee
390,000
370,000
350,000
330,000
310,000
290,000
270,000
250,000
Top Quintile
Lowest Quintile
Middle Quintile
Firms with excellent HRM Systems have greater
market value per employee
Quality of the HRM System
Source Adapted from M. A. Huselid and B. E.
Becker. The impact of human resource management
practices on turnover, productivity, and
corporate financial performance. Academy of
Management Journal, 38, 1995, pp. 635-672
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The HRM Process (Exh 12.2)
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Human Resource Planning
TB for defn

• Driven by organizations strategy and goals
• Forecasts of current and future staffing needs
• Both to meet and generate product demand
• At a high level and through individual job
  analysis
• Assessment of current staff capabilities
• Competency inventory
• Comparison to strategic requirements
• HRP drives recruitment and selection process

The right number and kind of people in the right
places and at the right time
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Human Resource Planning Outsourcing

• Outsourcing Using outside suppliers and
  contract workers for specific organizational
  functions formerly done internally
• Outsourcing should be a
• Taps cutting-edge expertise and capabilities
• Provides a source of new ideas
• Provides flexibility in resource and staffing
  levels
• Provides lower initial and ongoing costs
• Problems with Outsourcing
• Loss of control outsiders are not committed to
  the firm. On the other hand
• Unions are often against outsourcing.

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Recruitment A dizzying variety of sources (Exh
12.4)
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Pros Cons of Internal vs. External Recruitment

• External Recruiting seeking outside the firm
• Brings in new skills and ideas
• Must pay particular attention to evaluating
  (unknown) skills
• Emphasize employee referrals because of greater
  knowledge and incentives (reputation)
• Internal Recruiting moving people in the firm
• Job candidates, qualifications, and availability
  are known
• promotion from within can motivate employees
• Can be costly if job skills must be learned on
  the job
• A balance is typically most effective

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Selection The prediction exercise

• Selection Assessing applicants qualifications
  in order to hire the most appropriate candidates
• Success means good performance by the new hire
• rejection failure - reject candidates who would
  have performed the job successfully
• acceptance failure - hire candidates who perform
  poorly
• Tools for selection interviews, simulations,
  tests

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Each selection tool has strengths and weaknesses

• Resumes and application forms initial screening
• Interviews almost universal and
• Written tests - measure intelligence, ability,
  personality, interest, etc. popular validity
  varies
• Performance-simulation tests are most valid but
  most expensive
• Assessment center - simulate challenges of
  managerial jobs
• Work sampling - perform key tasks (non-managerial
  jobs)
• Reference checks tough to get negative
  information
• See text, figure 12.10 and strengths/weaknesses

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Suggestions For Interviewing

• Work hard to minimize bias
• Structured (same job-related questions)
  interviews in preference to unstructured
  (conversational) interviews.
• Train interviewers to avoid similar-to-me, halo
  effect etc. biases, as well issues regarding
  legality of questions
• Use multiple interviewers and in-depth interviews
• They are supposed to talk, not you!
• Practice active listening
• Get detailed answers about actual job behaviors.
• Take notes during the interview things blend
  together!

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The other side of selection being chosen by the
candidate
BX

• Beware the temptation to over-rate and oversell
  the attractiveness of the job and firm.
• Managers may feel that if they are honest, an
  applicant may not be willing to work there.
• Research indicates this is a poor strategy.
• Realistic Job Preview Providing an honest
  assessment of the advantage and disadvantages of
  a job and organization.
• Avoids hiring, training and then losing an
  employee because they misperceived the job before
  agreeing to come to work.
• Right after selection Pay attention to
  orientation to make new member feel comfortable,
  know the ropes, get a strong start

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Training and Development
B

• Training (individual performers managers)
  Helping employees be effective performers, in
  their current jobs
• Learn technical, interpersonal, problem-solving
  skills.
• On-the-job vs. off-the-job instruction
• Development (usually managers or professionals)
  Enabling employees to take on new challenges
• Varied job experience is key developmentally
• Action learning
• Powerful technique that overcomes the traditional
  now what do I do with this knowledge on my real
  job problem.

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Employee Performance Management

• Employee Performance Management Establishing
  standards appraising and improving employee
  performance
• Performance appraisal and performance improvement
  are partially at odds
• Growth and development requires understanding and
  support
• Appraisal requires impersonal objectivity and
  making tough evaluation decisions
• Employees want to know how they are doing, but
  also want to maintain a positive self-image
• Performance appraisals are often put off or
  implemented poorly.
• Several reasons They are never necessary to meet
  todays crisis for a manager to being
  evaluative is stressful.
• High-performing organizations put enormous
  attention on performance management

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Doing performance appraisal well

• Subjective Evaluations (based on managers
  perceptions)
• Evaluate behaviors rather than traits. Saying
  someone has a bad attitude does little good
  identifying behaviors that indicate a bad
  attitude allows discussion and correction
• Describe specific, important job-related
  behaviors rather than making overall judgements
  or citing outlying incidents. For example, a
  behaviorally anchored rating scale (BARS) is far
  superior to a graphic rating scale
• Objective Evaluations (based on measurable
  results)
• Make sure the result is under the employees
  control.
• Work with employees to set goals for the future,
  and evaluate performance against those goals
  (MBO).
• Remember that difficult goals can drive out
  learning
• Aim for a mix of subjective and objective
  evaluations

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Graphic Rating Scale
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Behaviorally Anchored Rating Scale (BARS)
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Feedback examples from self-assessment

• 1 a. Describe the behavior b. Evaluate the
  behavior2. a. Focus on the feelings that the
  behavior evokes b. Tell the person what they
  should be doing differently 3. a. Give specific
  instances of the behavior b. Generalize4. a.
  Deal only with behavior that the person can
  control b. Sometimes focus on something the
  person can do nothing about5. a. Tell the person
  as soon as possible after the behavior b.
  Sometimes wait too long6. a. Focus on the effect
  the behavior has on me b. Try to figure out
  why the individual did what he or she did7. a.
  Balance negative feedback with positive feedback
  b. Sometimes focus only on the negative

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Getting valid information for promotion and
feedback

• Forced Rankings
• The problem Everyone gets rated as
  high-performing. So who do you promote? Where
  is the deadwood?
• Forced rankings create
• Employees are in competition with each other
• Doesnt allow for variation across departments
• Multiple evaluators (coworkers, subordinates)
• Especially useful when work is done largely in
  teams.
• 360 degree feedback everyone you come in contact
  with
• Often must be used developmentally rather
  evaluatively

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Compensation And Benefits

• Goal Attract and retain talent to improve
  performance
• Trends in Compensation
• Adapt to changing nature of work and the
  workplace
• Skill-based pay meshes with changing nature of
  jobs
• Increase flexibility of pay system
• Reduce number of pay levels bands instead of
  levels
• Benefits
• Legally required social security, workers
  compensation
• Voluntary health insurance, retirement, day care
• Cafeteria-style benefits plans allow employees to
  choose the best mix of benefits for them can be
  hard to manage.

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Legal and Regulatory Environment of HRM (U.S.)
Equal employment opportunity and
non-discrimination (EEO)
Compensation and benefits (FLSA)
Human resources management
Protecting employee health and safety (OSHA)
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Effective Feedback Tips

• Be specific and focus on correctable behavior.
  Provide a suggested improvement.
• Focus on problem-solving and improvement, not
  criticism.
• Express confidence in workers ability to
  improve.
• Use both formal (scheduled) and informal (as
  opportunity presents) feedback.
• Treat subordinates with respect and praise
  achievements.
• Set a timetable for agreed changes.

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Unions

• Unions Represent workers interests to
  management
• Managerial power over individual workers led
  workers to join together in unions to try to
  prevent this.
• Remember Charlie Chaplin.
• Unions are often (not always) associated with
  restrictive work rules that increase costs and
  reduce flexibility
• Especially when management has a history of not
  taking workers interests seriously
• Not all workers want unions, and membership is
  lower today than 40 years ago.
• Collective Bargaining Developing a multi-faceted
  contract between the organization and workers
  (collectively)

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HRM Major Points

• HRM adds to firm performance if utilized to build
  competitive advantage and high-performance work
  practices
• Recruitment Balance internal and external
  recruitment to gain advantages of each.
• Selection Consider validity of selection tools,
  use performance simulations if possible.
• Interviews Avoid biases, get detailed answers,
  listen actively.
• Performance Management Balance appraisal and
  improvement, blend subjective and objective
  measures.
• Feedback Focus on specific behaviors and
  problem-solve, be supportive not critical, set
  deadlines.

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Assignment for Mon Apr 7 Decision-Making

• Decision-Making Chapter 6 of textbook
• T123 Skip 9
• Mastering Management Decision-Making module
• Complete the introduction, concepts, exercises
  and resolution sections of the Decision-Making
  module
• Packet 3 at T.I.S.