Management A Practical Introduction Third Edition Angelo Kinicki & Brian K Williams Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 9: Human Resource Management Getting the Right People for Managerial Success Strategic human resource management The legal requirements Recruitment & selection Orientation, training, & development Performance appraisal Compensation & benefits Promotions, transfers, disciplining, & dismissals Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9.1 Strategic Human Resource Management HOW DO MANAGERS MANAGE THEIR MOST IMPORTANT RESOURCE? The activities managers perform to plan for, attract, develop, and retain an effective workforce is human resource management The economic or productive potential of employee knowledge and actions is human capital Human capital is now seen as being important to a company’s competitive advantage The economic or productive potential of strong, trusting, and cooperative relationships is called social capital Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Two Important HR Concepts Human Capital: the economic or productive potential of employee knowledge Highly educated, knowledgeable workers are the hardest to find and the easiest to loose “smart people gap” McGraw-Hill/Irwin Social Capital: the economic or productive potential of strong, trusting and cooperative relationships This includes goodwill, mutual respect, trust, and cooperative relationships Good relationships within an organization outrank many other factors in importance for employees Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved 9.1 Strategic Human Resource Management Figure 9.1: The Strategic Human Resource Management Process Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9.1 Strategic Human Resource Management Predicting future employee needs means that the manager needs a good understanding of what personnel the organization might need and likely sources for the personnel Managers should assume that the organization will change, and so then will staffing needs, and that personnel might come from inside or outside the firm Some companies create a human resource inventory (tracks employees by name, education, training, languages, and other important information) which is used when considering inside employees for new positions Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9.1 Strategic Human Resource Management Companies that engage in strategic human resources planning develop a systematic, comprehensive strategy for understanding current employee needs and predicting future employee needs Because companies need to understand the current employee situation before they can plan for the future, they a job analysis (determine, by observation and analysis, the basic elements of a job) and write a job description (summary of what the holder of the job does and why), and a job specification (description of the minimum qualifications a person must have to a job successfully) Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9.2 The Legal Requirements Of Human Resource Management WHAT LEGAL ISSUES DO MANAGERS NEED TO BE AWARE OF? Managers need to be familiar with laws related to: Labor relations – especially laws relating to unions Compensation & benefits - the Fair Labor Standards Act of 1938 established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Determining HR Needs Prepare HR Inventory Prepare Job Analysis a) Job Description Objectives of job Type of work Duties & responsibilities b) Job Specifications Min qualifications required McGraw-Hill/Irwin Assess Future Demand Assess Future Supply Establish Strategic Plan recruiting, selecting, training, developing, appraising, compensating, etc Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved 9.2 The Legal Requirements Of Human Resource Management Health & safety - there is a growing body of law designed to protect employees from hazardous work conditions Equal employment opportunity - the Equal Employment Opportunity Commission covers discrimination, affirmative action, and sexual harassment -discrimination occurs when people are hired or promoted (or denied hiring or promotion) for reasons not relevant to the job -affirmative action focuses on achieving equality of opportunity within an organization -sexual harassment consists of unwanted sexual attention that creates an adverse work environment Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9.5 Performance Appraisal HOW SHOULD MANAGERS ASSESS THEIR EMPLOYEE’S PERFORMANCE? Performance appraisal consists of assessing an employee’s performance and providing him or her with feedback This provides employees with an understanding of how they are doing relative to the firm’s objectives and it helps with their development and training Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9.5 Performance Appraisal There are two types of appraisals: Objective appraisals are based on facts and are often numerical Subjective appraisals are based on a manager’s perceptions of an employee’s traits (attitudes, initiative, leadership) or behaviors (specific observable aspects of performance) Most performance appraisals are done by managers, but sometimes information comes from other sources like peers and subordinates Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9.5 Performance Appraisal There are two types of feedback: Formal appraisals are conducted at specific times throughout the year and are based on performance measures that have been established in advance Informal appraisals are conducted on an unscheduled basis and consist of less rigorous indications of employee performance Kinicki/Williams, Management: A Practical Introduction 3e â2008, McGraw-Hill/Irwin Performance Appraisals Establish Standards • Understandable Measurable Reasonable Communicate Standards Discuss Results Take Action Corrective Reward Use Results to Make Decisions Evaluate Performance McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved Major Uses of Performance Appraisals Identify training needs Use as a promotion tool Recognize workers’ achievements McGraw-Hill/Irwin Evaluate hiring process Judge effectiveness of orientation process Use as a basis for terminating workers Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved How to Give Employees Feedback: Take a problem-solving approach, avoid criticism, and treat employees with respect Be specific in describing the employee’s present performance and the improvement you desire Get the employee’s input McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved How to Give Employees Feedback: If criticism is warranted, criticize the act, not the employee McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved 9.6 Managing An Effective Workforce: Compensation & Benefits WHAT ABOUT COMPENSATION & BENEFITS? Compensation has three parts: Wages or salaries - the basic wage or salary paid to employees in exchange for doing their jobs is called base pay Incentives - commissions, bonuses, profit sharing, and stock options are all examples of incentives that are paid to top performers to encourage repeat performances Benefits - non-monetary forms of compensation (health care, life insurances, and so on) are benefits that are designed to enrich the lives of employees Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9.6 Managing Promotions, Transfers, Disciplining, & Dismissals WHO SHOULD BE PROMOTED, WHO SHOULD BE DISMISSED? Deciding who to promote, transfer, or dismiss are all part of the manager’s responsibilities Managers can recognize an employee’s superior performance by giving the individual a promotion When an employee is moved to a different job with similar responsibility, the employee has been transferred Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9.6 Managing Promotions, Transfers, Disciplining, & Dismissals Employees that are not meeting expectations may be warned or reprimanded, and then disciplined There are three types of dismissals: -layoffs imply that the dismissal is temporary -downsizing is a permanent dismissal -firing implies that the dismissal is permanent and that there was cause for the dismissal Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Employee Replacement Promotion: moving an employee to a higher level position Transfer: movement of an employee to a different job with similar responsibility Disciplining & Demotion: poorly performing employees may be given a warning or reprimand and then disciplined May be temporarily removed from his or her regular job or demoted—having his or her position, pay, and prerequisites taken away Dismissal: Layoffs Downsizing FiringsKinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved McGraw-Hill/Irwin Reasons Why Employees are Transferred Solve organizational problems Broaden managers’ experience Retain manager’s interest and motivation Solve some employee problems McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved Practical Action: The Right Way to Handle a Dismissal Give the employee a chance first Don’t delay the dismissal, and make sure it’s completely defensible Be aware how devastating a dismissal can be—both for the individual and to those remaining Offer assistance in finding another job McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved Sexual Harassment Sexual Harassment: consists of unwanted sexual attention that creates an adverse work environment McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved Sexual Harassment Guidelines for preventing sexual harassment: Don’t uninvited touching, hugging, or patting of someone’s body Don’t request or suggest sexual favors for rewards related to work or promotion Don’t make suggestive jokes of a sexual nature, demeaning remarks, slurs, or obscene gestures Don’t create sexual pictures or displays or written notes of a sexual nature Don’t laugh at others’ sexually harassing words or behaviors McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3eMcGraw-Hill ©2008, McGraw-Hill/Irwin © 2006 The Companies, Inc All rights reserved ... ©2008, McGraw-Hill/Irwin 9.5 Performance Appraisal There are two types of appraisals: Objective appraisals are based on facts and are often numerical Subjective appraisals are based on a manager’s... peers and subordinates Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 9.5 Performance Appraisal There are two types of feedback: Formal appraisals are conducted... indications of employee performance Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Performance Appraisals Establish Standards • • • Understandable Measurable