Slide 1Human Resource ManagementComponents of a HRM SystemHRM ComponentsSlide 5HRM Legal EnvironmentHuman Resource PlanningRecruitment & SelectionHRM Planning: OutsourcingHRM Planning: Job AnalysisRecruitmentHonesty in HiringSelection ToolsSelection ProcessSlide 15Reliability & ValidityTraining & DevelopmentTypes of TrainingSlide 19Types of DevelopmentPerformance Appraisal & FeedbackWho Appraises Performance?Slide 23Effective Feedback:Pay and BenefitsLabor RelationsUnions10-1Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000Human Resource ManagementHuman Resource Management101010-2Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000Human Resource ManagementHuman Resource ManagementHuman Resource Management includes all activities used to attract & retain employees and to ensure they perform at a high level in meeting organizational goals.These activities are made up of1. Recruitment & selection.2. Training and development.3. Performance appraisal and feedback.4. Pay and benefits.5. Labor relations.10-3Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000Components of a HRM SystemComponents of a HRM SystemRecruitmentRecruitment& Selection& SelectionRecruitmentRecruitment& Selection& SelectionLabor Labor RelationsRelationsLabor Labor RelationsRelationsPay &Pay &RewardsRewardsPay &Pay &RewardsRewardsPerformancePerformanceAppraisal &Appraisal &FeedbackFeedbackPerformancePerformanceAppraisal &Appraisal &FeedbackFeedbackTraining &Training &DevelopmentDevelopmentTraining &Training &DevelopmentDevelopmentFigure 10.110-4Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000HRM ComponentsHRM ComponentsComponent should be consistent with the others, organization structure, and strategy. Recruitment: develop a pool of qualified applicants. Selection: determine relative qualifications & potential for a job. Training & Development: ongoing process to develop worker’s abilities and skills.Performance appraisal & feedback: provides information about how to train, motivate, and reward workers. Managers can evaluate and then give feedback to enhance worker performance.10-5Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000HRM ComponentsHRM ComponentsPay and Benefits: high performing employees should be rewarded with raises, bonuses. Increased pay provides additional incentive. Benefits, such as health insurance, reward membership in firm.Labor relations: managers need an effective relationship with labor unions that represent workers.Unions help establish pay, and working conditions. If management moves to a decentralized structure, HRM should be adjusted as well.10-6Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000HRM Legal EnvironmentHRM Legal EnvironmentManagement of HR is a complex area. There are many federal, state and local regulations. Equal Employment Opportunity (EEO): ensures all citizens have equal opportunity for employment without regard to sex, age, race, origin, religion, or disabilities.Makes effective management of diversity crucial.Equal Employment Opportunity Commission (EEOC) enforces laws.Managers must take steps to ensure discrimination does not occur.10-7Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000Human Resource PlanningHuman Resource PlanningHR Planning includes all activities managers do to forecast current and future HR needs.Must be done prior to recruitment and selectionDemand forecasts made by managers estimate the number & qualifications the firm will need.Supply forecasts estimate the availability and qualifications of current workers and those in the labor market.10-8Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000Recruitment & SelectionRecruitment & SelectionHuman ResourcesHuman ResourcesPlanningPlanningHuman ResourcesHuman ResourcesPlanningPlanningJob AnalysisJob AnalysisJob AnalysisJob AnalysisDetermine recruitmentDetermine recruitment& selection needs& selection needsDetermine recruitmentDetermine recruitment& selection needs& selection needsFigure 10.210-9Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000HRM Planning: OutsourcingHRM Planning: OutsourcingOutsourcing: managers can decide to contract with outside workers rather than hiring them.Outsourcing is more flexible for the firm.Outsourcing often provides human capital at a lower cost.Outsource problems: managers lose control over output.Outsource contractors are not committed to the firm.Unions typically are against outsourcing that has potential to eliminate member’s jobs.10-10Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000HRM Planning: Job AnalysisHRM Planning: Job AnalysisJob analysis determines the tasks, duties and responsibilities of the job.A job analysis should be done for each job in the organization.Job analysis can be done by:Observe current workers.Questionnaires filled out by worker and managers.Current trends are toward flexible jobs where duties are not easily defined in advance.10-11Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000RecruitmentRecruitmentExternal recruiting: managers look outside the firm for people who have not worked at the firm before.Managers advertise in newspapers, hold open houses, recruit at universities, and on the Internet.External recruitment is difficult since many new jobs have specific skill needs.A multi-prong approach to external recruiting works best.Internal Recruiting: positions filled within the firm.Internal recruiting has several benefits:Workers know the firm’s culture, may not have new ideas.Managers likely already know the candidates.Internal advancement can motivate employees.10-12Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000Honesty in HiringHonesty in HiringManagers may be tempted to over-rate the attractiveness of the job and firm.They feel if they are honest, person will not work there.Research indicates this is a poor strategy.Realistic Job Preview: provides an accurate overview of the job.Avoids having to hire, train and then lose workers.10-13Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000Selection ToolsSelection ToolsBackgroundInformationBackgroundInformationInterviewsInterviewsReferencesReferencesPaper testsPaper testsPhysicalAbility testsPhysicalAbility testsPerformance testsPerformance testsSelectionSelectionSelectionSelectionFigure 10.310-14Irwin/McGraw-Hill©The McGraw-Hill Companies, Inc., 2000Selection