8th edition

Steven P. Robbins
Mary Coulter
The Importance of Human Resource
Management (HRM)
• Necessary part of the organizing function of
management
 Selecting, training, and evaluating the work force
• As an important strategic tool
 HRM helps establish an organization’s sustainable
competitive advantage.
• Adds value to the firm
 High performance work practices lead to both high
individual and high organizational performance.

12–2
High-Performance Work Practices

Exhibit 12.1
12–3
The HRM Process
• Functions of the HRM Process
 Ensuring that competent employees are identified and
selected.
 Providing employees with up-to-date knowledge and
skills to do their jobs.
 Ensuring that the organization retains competent and
high-performing employees who are capable of high
performance.

12–4
The Human Resource Management Process

Exhibit 12.2
12–5
Environmental Factors Affecting HRM
• Labor Union
 An organization that represents workers and seeks to
protect their interests through collective bargaining.
• Collective Bargaining Agreement
 A contractual agreement between a firm and a union
elected to represent a bargaining unit of employees of
the firm in bargaining for:
 Recruitment sources, criteria for hiring, promotions,
layoffs and working conditions.

12–6
Environmental Factors Affecting HRM
(cont’d)
• Affirmative Action
 The requirement that organizations take proactive
steps to ensure the full participation of protected
groups in its workforce.
• Laws and Regulations
 Limit managerial discretion in hiring, promoting, and
discharging employees.

12–7
Managing Human Resources
• Human Resource (HR) Planning
 The process by which managers ensure that they
have the right number and kinds of people in the right
places, and at the right times,
 who are capable of effectively and efficiently
performing their tasks.
 Helps avoid sudden talent shortages and surpluses.
 Steps in HR planning:
 Assessing current human resources
 Assessing future needs for human resources
 Developing a program to meet those future needs
12–8
Current Assessment
• Human Resource Inventory
 A review of the current make-up of the organization’s
current resource status
 Job Analysis
 Anassessment that defines a job and the behaviors
necessary to perform the job
– Knowledge, skills, and abilities (KSAs)
 Requiresconducting interviews, engaging in direct
observation, and collecting the self-reports of
employees and their managers.

12–9
Current Assessment (cont’d)
• Job Description
 A written statement of what the job holder does, how
it is done, and why it is done.
• Job Specification
 A written statement of the minimum qualifications that
a person must possess to perform a given job
successfully.

12–10
Meeting Future Human Resource Needs

Supply of Employees Demand for Employees

Forecast demand for products and services

12–11
Recruitment and Decruitment
• Recruitment
 The process of locating, identifying, and attracting
capable applicants to an organization

• Decruitment
 The process of reducing a surplus of employees in
the workforce of an organization

12–12
Recruiting Sources

Exhibit 12.4
12–13
Decruitment Options

Exhibit 12.5
12–14
Selection
• Selection Process
 The process of screening job applicants to ensure
that the most appropriate candidates are hired.

 Selection errors:
 Rejecterrors for potentially successful applicants
 Accept errors for ultimately poor performers

12–15
Selection Decision Outcomes

Exhibit 12.6
12–16
Validity and Reliability
• Validity (of Prediction)
 A proven relationship between the selection device
used and some relevant criterion.
 Hightests scores equate to high job performance; low
scores to poor performance.
• Reliability (of Prediction)
 The degree of consistency with which a selection
device measures the same thing.
 Individual
test scores obtained with a selection device
are consistent over multiple testing instances.

12–17
Types of Selection Devices
• Application Forms
• Written Tests
• Performance Simulations
• Interviews
• Background Investigations
• Physical examinations

12–18
12–19
12–20
Other Selection Approaches (cont’d)
• Realistic Job Preview (RJP)
 The process of relating to an applicant both the
positive and the negative aspects of the job.

 Encourages mismatched applicants to withdraw.

12–21
Providing needed Skills & Knowledge
Orientation

 Work-unit orientation
 Familiarizes new employee with work-unit goals
 Clarifies how his or her job contributes to unit goals
 Introduces he or she to his or her co-workers

 Organization orientation
 Informs new employee about the organization’s
objectives, history, philosophy, procedures, and rules.
 Includes a tour of the entire facility

12–22
Employee Training

Exhibit 12.8
12–23
Training Methods (Traditional)

12–24
12–25
Retaining Competent high performing employees

• Performance Management System

12–26
Performance Appraisal Methods

12–27
12–28
12–29
Compensation and Benefits

 Helps attract and retain high-performance employees

12–30
What Determines Pay and Benefits

Exhibit 12.11
12–31
Contemporary HRM Issues
• Downsizing
 The planned elimination of jobs in an organization
 Provideopen and honest communication.
 Reassure survivors.

• Managing Work Force Diversity

12–32
Tips of Downsizing

12–33
Contemporary HRM Issues (cont’d)
• Sexual Harassment
 An unwanted activity of a sexual nature that affects
an individual’s employment, performance or work
environment.

12–34
Contemporary HRM Issues (cont’d)
• Work-Life Balance
 Employees have personal lives that they don’t leave
behind when they come to work.

 On-site child care

12–35