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 2

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 companys 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 3

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

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

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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4

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 5

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 6

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 do 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 do a job successfully)

Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 7

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: 1. Labor relations especially laws relating to unions 2. 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 8

Determining HR Needs
1. Prepare HR Inventory 2. Prepare Job Analysis
a) Job Description
Objectives of job Type of work Duties & responsibilities

3. Assess Future Demand 4. Assess Future Supply 5. Establish Strategic Plan

recruiting, selecting, training, developing, appraising, compensating, etc.

b) Job Specifications
Min qualifications required

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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 9

9.2 The Legal Requirements Of Human Resource Management

3. Health & safety - there is a growing body of law designed to protect employees from hazardous work conditions 4. 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 10

9.3 Recruitment & Selection: Putting The Right People Into The Right Jobs
HOW DO MANAGERS CHOOSE THE BEST PERSON FOR A JOB? The process of locating and attracting qualified applicants for jobs open in the organization is referred to as recruitment

There are two types of recruitment: internal and external

Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 12

9.3 Recruitment & Selection: Putting The Right People Into The Right Jobs
1. Making people already employed by the organization aware of job openings is called internal recruiting Companies use job postings where information about job vacancies and qualifications is posted on bulletin boards, in newsletters, and on the organizations intranet to find internal personnel 2. Attracting job applicants from outside the organization is external recruiting The most effective source of external employees is referrals
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 13

Internal Recruiting: Advantages/Disadvantages Advantages:

Employees tend to be inspired to greater effort and loyalty 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

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

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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 14

External Recruiting: Advantages/Disadvantages

Advantages:
Applicants have specialized knowledge and experience Applicants have fresh viewpoints

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

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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 15

9.3 Recruitment & Selection: Putting The Right People Into The Right Jobs
Because people are often disillusioned after taking a job, some companies provide realistic job previews where candidates are given both positive and negative features of the jobs and the organization before being hired The process of screening job applicants and hiring the best candidate is the selection process There are three types of selection tools: background information, interviewing, and employment tests
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 16

9.3 Recruitment & Selection: Putting The Right People Into The Right Jobs
1. Background Information - application forms and resumes are basic sources of information about job applicants 2. Interviewing - can be unstructured (asks probing questions to find out what the applicant is like), or structured (asks each applicant the same questions and compares responses to a standardized set of answers)

Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 17

9.3 Recruitment & Selection: Putting The Right People Into The Right Jobs
3. Employment Tests - legally considered to consist of any procedure used in the employment selection decision process Three common employment tests are: -ability tests - measure physical abilities, strength, stamina, and so on -performance tests - measure performance on actual job tasks -personality tests - measure personality traits like adjustment, energy, sociability, independence, and so on using tests like the Myers-Briggs assessment
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 19

9.4 Orientation, Training, & Development

HOW DO MANAGERS HELP NEW HIRES BE SUCCESSFUL? Helping newcomers fit smoothly into the job and the organization is referred as orientation Orientation should provide information on: -the job routine -the organizations mission and operations -the organizations work rules and employee benefits
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 20

9.4 Orientation, Training, & Development

Managers can also improve employee performance by providing training and development Training refers to educating technical and operational employees in how to better do their current jobs
Short-Term skills oriented

Development refers to educating professionals and managers in the skills they need to do their jobs in the future
Long-Term career oriented
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 21

Typical Areas for Which Employee Training and Development are Given
Communications

Computer skills
Customer service Diversity

Ethics
Human relations Quality initiatives

Safety
Sexual harassment
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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 22

On-the-Job and Off-the-Job Training Methods

On-the-Job Methods 1) Coachinga subordinate is taken under the wing of an experienced employee 2) Training positionstrainees are given positions as assistants to experienced managers 3) Job rotationemployees are given lateral transfers to allow them to work at different jobs 4) Planned work activities trainees are given important work assignments
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Off-the-Job Methods 1) Classroom programsused by 91% of companies 2) Videotapesused by 79% 3) Workbooks or manuals77%

4) Overhead/opaque transparencies56%
5) Business books55% 6) Role playing55% 7) Other: audiotapes, self-testing instruments, case studies, slides

Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 23

9.4 Orientation, Training, & Development

Figure: 9.2: Five Steps in the Training Process

Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 24

9.4 Orientation, Training, & Development

Training that takes place at work is called on-thejob-training Training that takes place using classroom programs, videotapes, and so on is off-the-job training When computers are used to provide additional help or reduce instructional time, there is computerassisted instruction

Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 26

9.5 Performance Appraisal

HOW SHOULD MANAGERS ASSESS THEIR EMPLOYEES PERFORMANCE? Performance appraisal consists of assessing an employees performance and providing him or her with feedback This provides employees with an understanding of how they are doing relative to the firms objectives and it helps with their development and training
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 27

9.5 Performance Appraisal

There are two types of appraisals: 1. Objective appraisals are based on facts and are often numerical 2. Subjective appraisals are based on a managers perceptions of an employees 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 28

9.5 Performance Appraisal

There are two types of feedback: 1. Formal appraisals are conducted at specific times throughout the year and are based on performance measures that have been established in advance 2. Informal appraisals are conducted on an unscheduled basis and consist of less rigorous indications of employee performance

Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 29

Performance Appraisals

Establish Standards
Understandable Measurable Reasonable

4. Discuss Results
5. Take Action
1. Corrective 2. Reward

Communicate Standards Evaluate Performance

6. Use Results to Make Decisions

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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 30

Major Uses of Performance Appraisals

Identify training needs Use as a promotion tool Recognize workers achievements

Evaluate hiring process Judge effectiveness of orientation process Use as a basis for terminating workers

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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 31

How to Give Employees Feedback:

Take a problem-solving approach, avoid criticism, and treat employees with respect Be specific in describing the employees present performance and the improvement you desire Get the employees input
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 32

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How to Give Employees Feedback:

If criticism is warranted, criticize the act, not the employee

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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 33

9.6 Managing An Effective Workforce: Compensation & Benefits WHAT ABOUT COMPENSATION & BENEFITS? Compensation has three parts:
1. Wages or salaries - the basic wage or salary paid to employees in exchange for doing their jobs is called base pay 2. Incentives - commissions, bonuses, profit sharing, and stock options are all examples of incentives that are paid to top performers to encourage repeat performances 3. 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 35

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 managers responsibilities Managers can recognize an employees 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 37

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 38

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 demotedhaving his or her position, pay, and prerequisites taken away. Dismissal:

Layoffs
Downsizing Firings
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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 39

Reasons Why Employees are Transferred Solve organizational problems Broaden managers experience Retain managers interest and motivation Solve some employee problems

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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 40

Practical Action: The Right Way to Handle a Dismissal Give the employee a chance first Dont delay the dismissal, and make sure its completely defensible Be aware how devastating a dismissal can be both for the individual and to those remaining Offer assistance in finding another job

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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 41

Sexual Harassment

Sexual Harassment: consists of unwanted sexual attention that creates an adverse work environment.

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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 42

Sexual Harassment
Guidelines for preventing sexual harassment: Dont do uninvited touching, hugging, or patting of someones body. Dont request or suggest sexual favors for rewards related to work or promotion.

Dont make suggestive jokes of a sexual nature, demeaning remarks, slurs, or obscene gestures.
Dont create sexual pictures or displays or written notes of a sexual nature. Dont laugh at others sexually harassing words or behaviors.
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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 43