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HUMAN RESOURCE MANAGEMENT -known as personnel management -deals with formal systems for managing people at work STRATEGIC


creates value- People can increase value through their efforts to decrease costs and provides something unique to the customers rare People are a source of competitive advantage when their skills, knowledge and abilities are not equally available to all competitors. Difficult to Imitate People can be a source of competitive advantage when Their capabilities and contributions that employees possess cannot be easily copies by others Organized- People can be a source of competitive advantage when Their talents can be combined and deployed rapidly to work on new assignments at a moments notice

Human Capital intellectual capital strategic value of employee knowledge and abilities

Human Resources Managers concerns & activities of HR managers - attracting talents - maintaining a well-trained, highly motivated & loyal workforce - managing diversity - managing layoffs - containing healthcare and pension costs HUMAN PLANNING PROCESS Planning A. Demand Forecasts -determine how many and what type of people are needed b. Labor Supply Forecasts -actual number and types of employees that the organization have c. Reconciling Supply and Demand Labor Deficit -organizations need more people that they currently have Planning Programming Evaluating

-hire new employees -promote current employees to new positions -outsource work to contractors Labor Surplus -organization have more people than they need -attrition- normal turnover of employees -layoff workers d. Job Analysis -tool for determining what is done on a given job and what should be done on that job -assists with essential HR programs -recruitment -selection -reward systems Job Description -essential tasks, duties, responsibilities involved in performing the job Job Specification - skills, knowledge, abilities and other characteristics needed to perform the job Programming Staffing the Organization 1. Recruitment -the development of a pool of applicants forjobs in an organization Internal Recruiting -training -appraisal

Advantages: -employers know their employees -employees know their organization -Encourage employees to remain with the company, work hard & succeed Disadvantages: - poor selection decisions

Job Posting System -mechanism for advertising open positions, typically on a bulletin board or the companys intranet External Recruiting

Advantages: -can inspire innovation 2. Selection -builds on recruiting and involves decisions about whom to hire SELECTION INSTRUMENTS a. Applications and Resumes -provide basic information to prospective employers b. Interviews Unstructured or Nondirective Interview interviewees different questions

-the interviewer asks different Structured Interview

-interviewer conducts the same interview with each applicant -two types : Situational interview : Behavioral Description Interview c. Reference Checks -contact references of former employers and educational institutions listed by the candidates d. Background Checks -Types: Social Security verification Past Employment and Education Verification Criminal records Check e. Personality Tests -measure personality traits such as sociability, adjustment and energy f. Drug Testing

g. Cognitive Ability Tests

-measure a range of intellectual abilities, including verbal comprehension h. Performance Tests -the test taker performs a sample of the job i. Integrity Tests -two forms: Polygraphs or lie detector tests Paper-and-pencil honesty tests ISSUES IN CHOOSING SELECTION METHODS Reliability -the consistency of test scores over time and across alternative measurements. Validity -the degree to which a selection test predicts or correlates with job performance 3. Workforce Reductions Layoffs -staff reductions as a result of the current economic downturn. Outplacements - the process of helping people who have been dismissed from the company regain employment elsewhere. Effects of Layoffs To Separated Employees

-loss of self esteem -demoralizing job searches -stigma of being out of work To Surviving Employees

-disenchantment -distrust -lethargy

Termination Employment-at-will or Termination-at-will

The legal concept that an employee may be terminated for any reason

Termination Interview A discussion between a manager and an employee about the employees dismissal DEVEOPING THE WORKFORCE involves Training and Development activities, Appraising employeess performance and giving them Effective Feedback. TRAINING AND DEVELOPMENT

Competitive pressures require that companies consider the most efficient training methods. Overview of the Training Process Training refers to teaching lower-level employees how to perform their present jobs. Development- involves teaching managers and professional employees broader skills needed for their present and future jobs. Phase 1: Needs Assessment an analysis identifying the jobs, people & departments for which the training is necessary. Phase 2:Design of Training Programs Phase3: Training Methods -Lectures -Role playing -Business Simulation -Behavior Modeling -Conferences -Vestibule Training -Apprenticeships Phase4: Evaluate the Programs Effectiveness Types of Training Orientation Training designed to introduce new employees to the company and familiarize them with policies, procedures, culture. Benefits:-Lower Employee Turnover-Increased Morale-Better Productivity-Lower Recruiting and Training Costs Team Training provides employees with the skills and perspectives they need to collaborate with others. Diversity Training focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce.

Development Tools Management Training Program -widely used development tool -seek to improve managers people skill Coaching -trained by a superior PERFORMANCE APPRAISAL Performance Appraisal (PA) -the assessment of an employees job performance - Two basic Purposes a. Administrative Purpose -provides managers with the information they need to make salary, promotion and dismissal decisions b. Developmental Purpose -used to identify and plan the additional training, learning, experience or other improvement employees require WHAT DO YOU APPRAISE? Three Basic Categories of Employee Performance a. Trait Appraisals

-involve subjective judgments about employee characteristics ) related to performance b. Behavioral Appraisals

-focus more on observable aspects of performance -Approaches: 1. Scales 2. Critical Incident Technique -Manager keeps a regular log and records each significant behavior by the subordinate that reflects the quality of his performance. c. Results Appraisals More objective and can focus on production Approach: a. Management by Objectives (MBO) A process in which objectives set by a subordinate and a supervisor must be reached within a given time period -Advantages: -Avoids biases and measurement difficulties of Traits and behavioral Appraisals -The employee is more committed to the outcome; less chance of misunderstanding

-Disadvantages -Unrealistic objectives- frustrate employee and manager - Too rigid objectives - employee insufficient flexibility -focus too much on short term achievement

360-degree Appraisal process of using multiple sources of appraisal to gain a comprehensive perspective on ones performance HOW DO YOU GIVE EMPLOYEES FEEDBACK? -Appraisal Feedback works best when it is specific and constructive DESIGNING REWARD SYSTEM PAY DECISIONS Types of Decisions a. Pay Level Decisions -refers to the choice of whether to be a high, average or low-paying company b. Pay Structure Decisions -the choice of how to price different jobs within the organization c. Individual Pay Decisions -concern different pay rates for jobs of similar worth within the same family INCENTIVE SYSTEMS AND VARIABLE PAY Individual Incentive Plans -consists of an objective standard against which a workers performance is compared -used frequently in sales job Group Incentive Plans -based on group performance Gainsharing Plans -concentrate on rewarding employees for increasing productivity or saving money in areas under their direct control Profit-Sharing Plans -implemented in the division or

organization as a whole -allocate an annual amount to each employee if the company exceeds a specified profit target Merit Pay System -used when objective performance measures are not available but the company still wants to bas pay on performance LABOR RELATIONS The system of relations between workers and management. LABOR UNIONS -seek to present a collective voice for workers to make their needs and wishes known to the management. COLLECTIVE BARGAINING -process whereby the management and the union discuss and decide terms and conditions of employment