Human Resource (HR) Management - Consists of the activities managers perform to plan for, attract, develop, and retain an effective workplace.

Strategic Human Resource Management Process:
Establish the mission & the vision.
Establish the grand strategy.
Formulate the strategic plans.
Plan human resources needed.
Recruit & select people.
Orient, train, & develop.
Perform appraisals of people.
Purpose: Get optimal work performance to help realize company’s mission & vision.



Human Capital: Potential of Employee Knowledge & Actions

Human Capital - The economic or productive potential of employee knowledge, experience, and actions.

Knowledge Workers: Potential of Brain Workers

Knowledge Worker - Someone whose occupation is principally concerned with generating or interpreting information, as opposed to manual labor.

Social Capital: Potential of Strong & Cooperative Relationships

Social Capital - The economic or productive potential of strong, trusting, and cooperative relationships.

Aspects of social capital include: goodwill, mutual respect, cooperation, trust, and teamwork.



Strategic Human Resource Planning - Consists of developing a systematic, comprehensive strategy for (a) understanding employee needs and (b) predicting future employee needs.




Understanding Current Employee Needs

Job Analysis - Used to determine, by observation and analysis, the basic elements of a job.

THEN:

Job Description - Summarizes what the holder of the job does and how and why he does it.
Job Specification - Describes the minimum qualifications a person must have to perform the job successfully.

Predicting Future Employee Needs

Become knowledgeable about the staffing the organization might need by understanding the organization’s vision and strategic plan.

Understand the likely sources for staffing, of which, include a human resource inventory.

Human Resource Inventory - A report listing your organization’s employees by name, education, training, languages, and other important information.



Recruiting

Recruiting - The process of locating and attracting qualified applicants for jobs open in the organization.

Internal Recruiting

Internal Recruiting - Means making people already employed by the organization aware of job openings.

Job Posting - Placing information about job vacancies and qualifications on bulletin boards, in newsletters, and on the organization’s intranet.

External Recruiting

The most effective sources are employee referrals.



Internal Recruiting

Advantages
Disadvantages
Employees tend to be inspired to greater effort and loyalty. Morale is enhanced because they realize that working hard and staying put can result in more opportunities.
The whole process of advertising, interviewing, and so on, is cheaper.
There are fewer risks. Internal candidates are already known and are familiar with the organization.

Internal recruitment restricts the competition for positions and limits the pool of fresh talent and fresh viewpoints.
It may encourage employees to assume longevity and seniority will automatically result in promotion.
Whenever a job is filled, it creates a vacancy elsewhere in the organization.







External Recruiting

Advantages
Disadvantages
Applicants may have specialized knowledge and experience.
Applicants may have fresh viewpoints.

The recruitment process is more expensive and takes longer.
The risks are higher because the persons hired are less well known.



How to Choose the Best Person for the Job

Methods:
Background Information: Application Forms, Resumes, & Reference Checks
Interviewing: Unstructured, Situational, & Behavioral-Description
Employment Tests: Ability, Personality, Performance, Integrity, & Others

Selection Process - The screening of job applicants to hire the best candidate.

Unstructured Interview - Involves asking probing questions to find out what the applicant is like.

Structured Interview - Involves asking each applicant the same questions and comparing their responses to a standardized set of answers.

Structured Interview Types:
Situational Interview
Behavioral-Description Interview

Situational Interview - The interviewer focuses on hypothetical situations.

Behavioral-Description Interview - The interviewer explores what applicants have actually done in the past.


Employment Tests - Legally considered to consist of any procedure used in the employment selection decision process, even application forms, interviews, and educational requirements.




Employment Tests:
Ability
Personality
Performance
Integrity
Others





Ability Tests - Measure physical abilities, strengths, and stamina, mechanical ability, mental abilities, and clerical abilities.

Performance Tests - Measure performance on actual job tasks - called job tryouts.

Assessment Center - Management candidates participate in activities for a few days while being assessed by evaluators.

Personality Tests - Measure such personality traits as adjustment, energy, sociability, independence, and need for achievement.

	Myers-Briggs Type Indicator

Integrity Tests - Assess attitudes and experiences related to a person’s honesty, dependability, trustworthiness, reliability, and prosocial behavior.



Reliability - The degree to which a test measures the same thing consistently.

Validity - The test measures what it purports to measure and is free of bias.



Compensation:
Wages / Salaries
Incentives
Benefits

Wages / Salaries
Base Pay - Consists of the basic wage or salary paid employees in exchange for doing their jobs.

Incentives
Used to induce employees to be more productive or to attract and retain top performers.

Incentives include: commissions, bonuses, profit-sharing plans, and stock options.

Benefits
Benefits (Fringe) - Additional nonmonetary forms of compensation.


Orientation - Helping the newcomer fit smoothly into the job and the organization.

Information from Orientation:
The Job Routine - What is required in the Job
The Organization’s Mission and Operations - Know the Organization’s  purpose, products or services, operations, and history.
The Organization’s Work Rules and Employee Benefits


Steps In Training Process:
Assessment
Objectives

Selection
Implementation
Evaluation

Training - Refers to educating technical and operational employees in how to better do their current jobs.

Development - Refers to educating professionals and managers in the skills they need to do their jobs in the future.

On-the-Job Training - This training takes place in the work setting while employees are performing job-related tasks.

Off-the-Job Training - This training consists of classroom programs, videotapes, workbooks, and the like.

	Computer-Assisted Instruction (CAI) - Computers are used to provide additional help or to
reduce instructional time.



Performance Management - A set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations.

Performance Management Steps:
Define Performance
Monitor & Evaluate Performance
Review Performance
Provide Consequences

Performance Appraisal - Consists of (a) assessing an employee’s performance and (b) providing him or her with feedback.

Objective Appraisals - Are based on facts and are often numerical.

Subjective Appraisals - Based on a manager’s perceptions of an employee’s traits or behaviors.
Traits Appraisals - Ratings of subjective attributes such as attitude, initiative, and leadership.

Behavioral Appraisals - Measure specific, observable aspects of performance, such as promptness.

	Behaviorally Anchored Rating Scale (BARS) - Which rates employee gradations in
performance according to scales of specific behaviors.



360-Degree Assessment - Employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients.

Forced Ranking Performance Review Systems - All employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve.

Formal Appraisals - Conducted at specific times throughout the year and are based on performance measures that have been established in advance.

Informal Appraisals - Conducted on an unscheduled basis and consist of less rigorous indications of employee performance.



THREE Concerns of Promotion:
Fairness
Nondiscrimination
Others’ Resentments

Reasons for Transfer:
To solve organizational problems by using their skills at another location.
To broaden their experience in being assigned to a different position.
To retain their interest and motivation by being presented with a new challenge.
To solve some employee problems, such as personal differences with their bosses.

Types of Dismissals:
Layoffs
Downsizings
Firings

Layoffs - Tends to suggest that a person has been dismissed temporarily - as when a carmaker doesn’t have enough orders to justify keeping its production employees - and may be recalled later when economic conditions improve.

Downsizings - Permanent dismissal; there is no rehiring later. For example, when an automaker discontinues a line of cars.

Firings - The phrase being fired tends to mean that a person was dismissed permanently “for cause.”



Labor Relations

National Labor Relations Board - Enforces procedures whereby employees may vote to have a union and for collective bargaining.

Collective Bargaining - Consists of benefits, working conditions, and job security.

Compensation & Benefits

Fair Labor Standards Act (FLSA) - Established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage and a maximum workweek, along with banning products from child labor.

Health & Safety

Occupational Safety and Health Act (OSHA) - Requires that companies provide employees with non-hazardous working conditions.

Equal Employment Opportunity

Equal Employment Opportunity Commission (EEO) - Enforces antidiscrimination and other employment-related laws.





YEAR
LAW OR REGULATION
PROVISIONS
Labor Relations




1974
Privacy Act
Right for employees to examine letters of reference about them.
1986
Immigration Reform & Control Act
Requires employers to verify the eligibility for employment of all their new hires.
2003
Sarbanes-Oxley Act
Prohibits employers from demoting or firing employees who raise accusations of fraud to  a federal agency.
Compensation & Benefits




1974
Employee Retirement Income Security Act (ERISA)
Sets rules for managing pension plans; provides federal insurance to cover bankrupt plans.
1993
Family & Medical Leave Act
Requires employers to provide 12 weeks of unpaid leave for medical and family reasons, including for childbirth, adoption, or family emergency.
1996
Health Insurance Portability & Accountability Act (HIPPA)
Allows employees to switch health insurance plans when changing jobs and receive new coverage regardless of preexisting health conditions; prohibits group plans from dropping ill employees.
2007
Fair Minimum Wage Act
Increase federal minimum wage to $7.25 per hour on July 24, 2009.
Health & Safety




1970
Occupational Safety & Health Act (OSHA)
Establishes minimum health and safety standards in organizations.
1985
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Requires extension of health insurance benefits after an employee is terminated.
2010
Patient Protection & Affordable Care Act
Employers with more than 50 employees must provide health insurance.
Equal Employment Opportunity




1963
Equal Pay Act
Requires men and women be paid equally for performing equal work.
1964 / Amended 1972
Civil Rights Act / Title VII
Prohibits discrimination on basis of race, color, religion, national origin, or sex.
1967 / Amended 1978 & 1986
Age Discrimination in Employment Act (ADEA)
Prohibits discrimination in employees over 40 years old; restricts mandatory retirement.
1990
Americans with Disabilities Act (ADA)
Prohibits discrimination against essentially qualified employees with physical or mental disabilities or chronic illness; requires “reasonable accommodation” be provided so they can perform duties.
1991
Civil Rights Act
Amends and clarifies the Title VII, ADA, and other laws; permits suits against employers for punitive damages in cases of intentional discrimination.






Workplace Discrimination

Workplace Discrimination - Occurs when people are hired or promoted - or denied hiring or promotion - for reasons not relevant to the job.

Adverse Impact - Occurs when an organization uses an employment practice or procedure that results in unfavorable outcomes to a protected class (such as Hispanics) over another group of people (such as non-Hispanic whites).

E.g. Requiring workers to have a college degree can inadvertently create adverse impact against Hispanics because few Hispanics graduate from college than whites. This would not be a problem, however, if a college degree was required to do the job.

Disparate Treatment - Results when employees from protected groups (such as disabled individuals) are intentionally treated differently.

E.g. Making a decision to give all international assignments to people without disabilities because of the assumption they they won’t need any special accommodations related to travel.

Affirmative Action

Affirmative Action - Focuses on achieving equality of opportunity within an organization.

Sexaul Harassment

Sexual Harassment - Consists of unwanted sexual attention that create an adverse work environment.

Two Types = Quid Pro Quo Harassment & Hostile Environment

Quid Pro Quo Harassment - The person who unwanted attention is directed to, is put in the position of jeopardizing being hired for a job or obtaining job benefits or opportunities unless she implicitly or explicitly acquiesces.

Hostile Environment - The person being sexually harassed doesn’t risk economic harm, but experiences an offensive or intimidating work environment. This type of sexual harassment is more typical.

Bullying

Bullying - Repeated mistreatment of one or more persons by one or more perpetrators.



Worker Organization

Labor Unions - Organizations of employees formed to protect and advance their members’ interests by bargaining with management over job-related issues.

Authorization Card - Designates a certain union as the workers’ bargaining agent.
Union Security Clause - The part of the labor-management agreement that states that employees who receive union benefits must join the union, or at least pay dues to it.

Types of Unions


WORKPLACE
DEFINITION
STATUS
Closed Shop
Employer may hire only workers for a job who are already in the union.
Illegal
Union Shop
Workers aren’t required to be union members when hired for a job but must join the union within a specified time.
Not allowed in 22 states (right-to-work states)
Agency Shop
Workers must pay equivalent of union dues, but aren’t required to join the union.
Applies to public-sector teachers in some states, prohibited in others.
Open Shop
Workers may choose to join or not join a union.
Applies in 22 states (right-to-work states)




Right-To-Work Laws - Statutes that prohibit employees from being required to join a union as a condition of employment.

Two-Tier Wage Contracts - New employees are paid less or receive lesser benefits than veteran employees have.

Cost-of-Living Adjustment Clause (COLA) - The period of the contract ties future wage increase to the increases in the cost of living.

Givebacks - The union agrees to give up previous wage or benefit gains in return for something else. Usually the union seeks job security, as in a no-layoff policy.

Grievance - A complaint by an employee that management has violated the terms of the labor-management agreement.

Mediation - Process in which a neutral third party, a mediator, listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution.

Arbitration - The process in which a neutral third party, an arbitrator listens to both parties in a dispute and makes a decision that the parties have agreed will be binding on them.