Human Resource Management

Sixteenth Edition, Global Edition

HRM
IMPROVE MANAGEMENT COMPETENCE

BUSINESS MANAGEMENT

TRADING PLANNING
INVESTING ORGANIZING

STAFFING
LEADING
CONTROLLING
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What Is Human Resource Management?
• The Management Process
– Planning
– Organizing
– Staffing
– Leading
– Controlling

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 PROCESS – FUNCTIONS – ACTIVITIES
1. Planning – involves establishing goals and standards; developing
rules and procedures; developing plans and forecasts.
2. Organizing – involves giving each subordinate a specific task;
establishing departments; delegating authority to subordinates;
establishing channels of authority and communication; coordinating
the work of subordinates.
3. Staffing – involves determining what type of people should be
hired; recruiting prospective employees; selecting employees;
setting performance standards; compensating employees;
evaluating performance; counseling employees; training and
developing employees.
4. Leading – involves getting others to get the job done; maintaining
morale, motivating subordinates.
5. Controlling – involves setting standards such as sales quotas, quality
standards, or production levels; checking to see how actual
performance compares with these standards; taking corrective
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HUMAN RESOURCE MANAGEMENT
• HRM falls under the staffing function of the
management process.

• Human resource management is the process

of acquiring, training, appraising, and
compensating employees, and
of attending to their labor relations, health
and safety, and fairness concerns.

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 5 TRENDS IN HRM
1. Workforce Demographics and Diversity Trends
2. Trends in Jobs People Do
3. Globalization Trends
4. Economic Trends
5. Technology Trends

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1. Workforce Demographics and
Diversity Trends
• Workforce Demographics and Diversity Trends.
The composition of the workforce will continue to
change over the next few years; specifically, it will
continue to become more diverse with more women,
minority group members, and older workers in the
workforce.

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 2. Trends in Jobs People Do
• Trends in Jobs People Do
A. First, work has shifted from manufacturing jobs to service jobs.
B. Second, in companies like Grab and Gojek, most workers are
freelancers and independent contractor-gig workers.

For managers, the challenge is that they have to manage such

workers differently.

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3. Globalization Trends
• Globalization Trends. These refer to companies
extending their sales, ownership, and/or manufacturing to
new markets abroad.
• For example, Toyota builds Camrys in Kentucky, while
Apple assembles iPhones in China. Free-trade areas—
agreements that reduce tariffs and barriers among trading
partners—further encourage international trade. NAFTA
(the North American Free Trade Agreement) and the EU
(European Union) are examples.

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4. Economic Trends
• Economic Trends. Although globalization supported a
growing global economy, the past 10 or so years were
difficult economically:

A. GDP fell.
B. Unemployment rate soon rose to more than 10%.
C. Furthermore, demand for workers is unbalanced.

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5. Technology Trends
• Technology Trends. It may be technology that
most characterizes the trends shaping human
resource management today.

• Let’s take a look at the six main types of digital

technologies that are driving this transfer of
functionality from HR professionals to automation.

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 5 TRENDS IN HRM
1. Workforce Demographics and Diversity Trends
2. Trends in Jobs People Do
3. Globalization Trends
4. Economic Trends
5. Technology Trends

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More on HR Technology Trends
• There are 6 main types of digital technologies driving
HR professionals to automation:
1. Social Media
2. Mobile Applications
3. Cloud Computing
4. Data Analytics
5. Artificial Intelligence
6. Augmented Reality

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 6 main types of Digital Technologies
1. Employers increasingly use social media—tools such as Twitter,
Facebook, and LinkedIn to recruit new employees.
2. Employers use mobile applications, to monitor employee location and
to provide digital photos at the facility clock-in location to identify
workers.
3. Employers use cloud computing which enable employers to monitor
and report on things like a team’s goal attainment and to provide real-
time evaluative feedback.
4. Employers also use data analytics, which use statistical techniques,
algorithms, and problem-solving to identify relationships among data for
the purpose of solving particular problems (such as what the ideal
candidate’s traits are, or how can I tell in advance which of my best
employees is likely to quit?)
5. Artificial intelligence (AI) basically means using computers to do tasks
in human-like ways.
6. Augmented reality (AR) transforms huge amounts of data and
superimposes digital summaries and images on the physical world.
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Human Resource Management
Sixteenth Edition, Global Edition

Personnel
Planning
and
Recruiting

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Introduction

The recruitment and selection process is a series of hurdles aimed at

selecting the best candidate for the job.

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ACQUIRING PROCESS:
RECRUIMENT & SELECTION
• 1. Decide what positions to fill, through
workforce/personnel planning and forecasting.
• 2. Build a pool of candidates for these jobs, by recruiting
internal or external candidates.
• 3. Have candidates complete application forms and
perhaps undergo initial screening interviews.
• 4. Use selection tools like tests, background investigations,
and physical exams to screen candidates.
• 5. Decide who to make an offer to by having the supervisor
and perhaps others interview the candidates.

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Workforce Planning and Forecasting
• Also known as employment or personnel planning.
• The process of deciding what positions the firm will have
to fill, and how to fill them.
• Workforce planning embraces all future positions, from
maintenance clerk to CEO. However, we’ll see that most
firms call the process of deciding how to fill executive jobs
succession planning.

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Internal Sources of Candidates

• Current employees
• Former employees

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 ADV VS. DISADV

knowledge of
ADVANTAGES

candidate’s strengths
and weaknesses
Inbreeding
may be more

DISADVANTAGES
committed

Discontentment of
engagement may
increase as others see
rejected insiders
rewards for loyalty

inside candidates
require less orientation

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Outside Sources of Candidates

• Employers can’t always get

all the employees they need
from their current staff,
and sometimes they just
don’t want to.

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ACQUIRING PROCESS:
RECRUIMENT & SELECTION
• 1. Decide what positions to fill, through
workforce/personnel planning and forecasting.
• 2. Build a pool of candidates for these jobs, by recruiting
internal or external candidates.
• 3. Have candidates complete application forms and
perhaps undergo initial screening interviews.
• 4. Use selection tools like tests, background
investigations, and physical exams to screen candidates.
• 5. Decide who to make an offer to by having the supervisor
and perhaps others interview the candidates.

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Human Resource Management
Sixteenth Edition, Global Edition

Employee
Testing
and
Selection

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Why Perform Background
Investigations and Reference Checks?

• TO AVOID HIRING MISTAKES:

1. Verify information
2. Uncover damaging information

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GRAPHOLOGY
HUMAN LIE DETECTORS
PHYSICAL EXAMS
INTERVIEW

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 GRAPHOLOGY
• The use of handwriting and
signature analysis to determine the
writer’s basic personality traits
(needs, desires, and psychology).

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 HUMAN LIE DETECTORS
Human lie detectors are experts who may be able to
identify lying just by watching candidates. Signs include:
• Pupils changing size (which often corresponds to
emotions, such as fear)
• Irregular breathing (may flag nervousness)
• Micro-expressions (quick transitory facial expressions
that may portray emotions such as fear)
• Crossing legs ("liars typically try to distance themselves
from an untruth")
• Quick verbal responses (possibly reflecting scripted
statements).

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 PHYSICAL EXAMS
1. to verify that the applicant meets the job’s
physical requirements
2. to discover any medical limitations you
should consider in placement
3. to establish a baseline for future workers’
compensation claims
4. To reduce absenteeism and accidents and
detect communicable diseases.

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Human Resource Management
Sixteenth Edition, Global Edition

Interviewing
Candidates

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Avoiding 7 Errors That Can Undermine
an Interview’s Usefulness
1. First Impressions (Snap Judgments)
2. Not Clarifying What the Job Requires
3. Candidate-Order (Contrast) Error
4. Pressure to Hire
5. Nonverbal Behavior
6. Impression Management
7. Effect of Personal Characteristics: Attractiveness,
Gender, and Race

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 Avoiding 7 Errors That Can Undermine
an Interview’s Usefulness
• First Impressions (Snap Judgments) – Interviewers tend to
jump to conclusions—make snap judgments—about
candidates during the first few minutes of the interview (or
even before the interview starts, based on test scores or
résumé data). First impressions are especially damaging
when the prior information is negative.

• Not Clarifying What the Job Requires – Interviewers who

don’t have an accurate picture of what the job entails and what
sort of candidate is best for it usually make their decisions
based on incorrect impressions or stereotypes of what a good
applicant is.
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 Avoiding 7 Errors That Can Undermine
an Interview’s Usefulness
• Candidate-Order (Contrast) Error means that the
order in which we see applicants affects how we rate
them. We scored the average candidate more
favorably than he might otherwise because, in
contrast to the unfavorable candidates, the average
one looked better than he actually was.

• Pressure to hire: Managers behind the recruiting

quota have a tendency to rate candidates more
favorably.
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 Avoiding Errors That Can Undermine
an Interview’s Usefulness
• The applicant’s nonverbal behavior (smiling, avoiding your gaze, and so
on) can also have a surprisingly large impact on his or her rating.
Interviewers infer your personality from your nonverbal behaviors in the
interview.

• Clever candidates capitalize on nonverbal behavior and impression

management. Some candidates used ingratiation to persuade interviewers
to like them. Psychologists call using techniques like ingratiation and self-
promotion “impression management.”

• Effect of Personal Characteristics: Attractiveness, Gender, Race –

Unfortunately, physical attributes such as applicants’ attractiveness,
gender, disability, or race also may distort an interviewer’s assessments.
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Human Resource Management
Sixteenth Edition, Global Edition

Orienting,
Training and
Developing
Employees

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 Orienting & Onboarding New Employees

• Carefully selecting employees doesn’t guarantee they’ll

perform effectively. Even high-potential employees can’t
do their jobs if they don’t know what to do or how to do it.
Making sure your employees do know what to do and how
to do it is the purpose of orientation and training.
• Employee orientation
– or onboarding
– a procedure for providing new employees with basic
background information about the firm
• Every manager should know how to orient and train
employees

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 The Purposes of Employee
Orientation/Onboarding
1. Make the new employee feel welcome, at home, and
part of the team.
2. Make sure the new employee has the basic
information to function effectively, such as e-mail
access, personnel policies and benefits, and
expectations in terms of work behavior.
3. Help the new employee understand the organization
in a broad sense.
4. Start the process of a person becoming socialized
into the firm’s culture, values, and ways of doing
things.
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Overview of the Training Process

• Training means giving new or

current employees the skills that
they need to perform their jobs.

• Training fosters engagement.

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The A D D I E Five-Step Training Process
1. Analyze the training need

2. Design the overall training program

3. Develop the course

4. Implement training by actually training

the targeted employee group

5. Evaluate the course effectiveness

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14 TRAINING TECHNIQUES
• Apprenticeship Training – a structured process
by which people become skilled workers through
a combination of classroom instruction and on-
the-job training.
• Lecturing – a quick and simple way to present
knowledge to large groups of trainees
• Role-playing – the trainees get roles to play in a
simulated situation; here they are to practice the
effective behaviors demonstrated by the models.
• On-the-job-training (OJT) – having a person learn
a job by actually doing it.
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 14 TRAINING TECHNIQUES
• Coaching or Understudy method: an
experienced worker or the trainee’s supervisor
trains the employee. This may involve simply
observing the supervisor, or (preferably) having
the supervisor or job expert show the new
employee the ropes, step-by-step.
• Job rotation: an employee (usually a
management trainee) moves from job to job at
planned intervals.
• Job instruction training (JIT): Trainers list each
job’s basic tasks, along with key points, in order
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 14 TRAINING TECHNIQUES
• Online/ Internet-Based Training: Trainers
increasingly employ Internet-based learning to
deliver programs.

• Learning management systems (LMS): Special

software tools that support Internet training by
helping employers identify training needs and
schedule, deliver, assess, and manage the online
training itself.

• Diversity training: Aims to improve cross-cultural

sensitivity, so as to foster more harmonious
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 14 TRAINING TECHNIQUES
• Stretch assignments: “Push employees beyond their
Comfort zone” – place them in jobs and
assignments different from and more demanding
than those to which they are accustomed.
• Case study: A development method in which the
manager is presented with a written description of
an organizational problem to diagnose and solve.
• Computerized management Games – Enable
trainees to learn by making realistic decisions in
simulated situations.
• Outside Seminars – Numerous companies offer
Web-based and traditional seminars and
conferences for employees.
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Human Resource Management
Sixteenth Edition, Global Edition

PERFORMANCE
APPRAISAL

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PERFORMANCE APPRAISAL PROCESS

1. Sets work standards

2. Assesses performance
3. Provides feedback to the employee

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5 APPRAISAL ERRORS
1.UNCLEAR STANDARDS
2.THE HALO EFFECT
3.RECENCY EFFECTS
4.CENTRAL TENDENCY
5.LENIENCY OR STRICTNESS

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 5 APPRAISAL ERRORS
The Halo Effect Recency Effects
occurs when a means letting what
Unclear Standards
supervisor’s rating of the employee has
occurs when an
a subordinate on 1 done recently blind
appraisal is too open
trait biases the rating you to what his
to interpretation.
of that person on performance has
other traits. been over the year.

Central Tendency Leniency/Strictness

is a tendency to rate is the problem that
all employees the occurs when a
same way, such as supervisor has a
rating them all tendency to rate all
subordinates either
average. high or low.

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Human Resource Management
Sixteenth Edition, Global Edition

Managing
Careers and
Retention

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5 MAIN DISMISSAL REASONS

1. Unsatisfactory Performance
2. Misconduct
3. Insubordination
4. Lack of Qualifications for the Job
5. Changed Requirements of the Job

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 5 MAIN DISMISSAL REASONS
1. Unsatisfactory performance – a persistent failure
to perform assigned duties or to meet prescribed
standards on the job (excessive absenteeism,
tardiness, persistent failure to meet normal job
requirements, or an adverse attitude).
2. Misconduct – deliberate and willful violation of
the employer’s rules; may include stealing and
rowdy behavior.
3. Insubordination – a form of misconduct:
unwillingness to carry out the manager’s orders, or
disrespectful behavior toward the manager.
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5 MAIN DISMISSAL REASONS

4. Lack of qualifications for the job –

employee’s inability to do the assigned
work, although he is diligent.
5. Changed requirements of the job –
employee’s incapability of doing the job
after the nature of the job has changed.

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Human Resource Management
Sixteenth Edition, Global Edition

COMPENSATION

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Employee compensation includes
all forms of pay or rewards
going to employees and
arising from their employment.
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 Employee Compensation
has 2 main Components:
1. Direct financial payments:
▪wages, salaries, incentives,
commissions, and bonuses

2. Indirect financial payments:

▪(1) pay for time not worked,
(2) insurance benefits,
(3) retirement benefits,
(4) personal services benefits, and
(5) flexible benefits
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Introduction: The Benefits Picture
Today
• Benefits
– the indirect financial and nonfinancial
payments employees receive for
continuing their employment with the
company and which employers use to
attract, recognize, and retain workers
– Employee benefits account for about
31% of total compensation

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Pay for Time Not Worked

• Include holidays, vacations, jury duty, funeral leave,

military duty, personal days, sick leave, sabbatical leave,
maternity leave, and unemployment insurance payments
for laid-off or terminated employees

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Flexible Work Schedules
• Flextime
• Telecommuting
• Compressed Workweek
• Job Share

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Flexible Work Schedules
• Flextime is a work plan in which employees’ workdays are built
around a core of midday hours, and employees determine, within
limits, what other hours they will work.

• Telecommuting uses technology to work away from the office.

• Compressed Workweeks –they work fewer days each week, but

each day they work longer hours.

• Job sharing – Allows two or more people to share a single full-time

job.

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Human Resource Management
Sixteenth Edition, Global Edition

Building
Positive
Employee
Relations

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What is Employee Relations?
• Employee Relations is the activity that
involves establishing and maintaining
the positive employee – employer
relationships that contribute to
satisfactory productivity, motivation,
morale, and discipline, and to
maintaining a positive, productive, and
cohesive work environment.

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• Employers can do many things to build positive
employee relations. Some examples include providing
good training, fair appraisals, and competitive pay and
benefits (all of which we discussed in previous chapters).
However, most employers also institute special “employee
relations programs” to maintain positive employee
relations. These include employee fair treatment programs,
improving employee relations through improved
communications, developing employee
recognition/relations programs, and having fair and
predictable disciplinary procedures.

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