HRM 501 - chapter1-2-5-6-7
Transcript of HRM 501 - chapter1-2-5-6-7
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
1/20
Chapter -1 Human Resource Management
Human Resource Management is the process of acquiring, training, appraising and
compensating employees, and attending to their labor relations, health and safety, and
fairness concerns.
Global Village: A concept in which telecommunication and transportation
technologies have essentially reduced time and distance effects to produce a single
worldwide community.
Multinational Corporations (MNCs): Corporations with significant operations in
more than one country (i.e. Coca-Cola, Pepsi, Sony)
Global Leadership and Organizational Behavior Effectiveness (GLOBE)
Research: An ongoing cross-cultural investigation of leadership and national culture.
NINE (9) Dimensions of GLOBE:
1. Assertiveness: Society encourages people to be tough, assertive Vs. modest
Greece
2. Future Orientation: Society encourages and rewards future oriented behavior such as planning and investing Canada
3. Gender Differentiation: maximize gender role differences South Korea
4. Uncertainty Avoidance: Societys reliance on social norms and procedures toalleviate unpredictable of future event Denmark
5. Power Distance: power to be unequally shared Russia
6. Individualism: encourage individuals Germany Hitler
7. In-Group Collectivism: Society take pride in membership in small groups family,close friends China
8. Performance Orientation: Group performance U.S.
9. Human Orientation: Fair, Generous, Caring Malaysia
Knowledge Workers: Individuals whose jobs are designed around the acquisition
and application of information.- Professional worker, floor to clerical and technical
Technology: Any equipment tools or operating methods designed to make work
more efficient.
How Technology affects HRM Practices
Recruiting: Website Vs. newspaper advertising
Employee Selection: Web-based questions
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
2/20
Training & Development: Online Materials/Online Video Conference Vs. to go
any training Center
Ethics and Employee Rights: Online survey
Motivating Knowledge Workers: Web checking stock prices
Paying Employees Market Values: Company Stock Market situation
Communication: mobile and internet Decentralization Work Sites: can work at home (technology)
Skill Levels: software or hardware manuals
A Legal Concern: sending emails to Authority for harassment/sexual or bias
Workforce Diversity: The varied personal characteristics that make workforce
heterogeneous Indian, Black , Disabilities, White people/ Asian-American-Hispanics
Work/Life Balance: Saturday to Thursday (8 to 9 Hours chunk ) . Friday or after
Office hour ??
Baby Boomers : Individuals born between 1946 and 1965 (U.S. Labor shortage )
Gen-Xers : Individuals born after 1965
Downsizing: An activity in an organization aimed at creating greater efficiency by
eliminating certain jobs.
Outsourcing: Sending work outside the organization to be done by individuals
not employed full-time in the organization. (Garments A to Garments B)
Contingent Workforce: The part time, temporary and contract workers used by
organization to fill peak staffing needs or perform work not done by core employees
Wedding program in winter period-Hotel staffs
Core employees: Full time employee
Quality Management / Continuous Improvement: constantly improving the
quality of products and services
Kaizen: The Japanese terms for an organizations commitment to continuous
improvement.
Components of Continuous Improvement
Intense focus on the customer: internal and external customers
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
3/20
Concern for Continuous Improvement - commitment to improve
Improvements (Broad way) rapid response to complaints
Accurate Measurement- measure every critical variable
Empowerment finding and solving problems
Work Process Engineering: Radical, quantum change in an organization
Ethics: A set of rules of principles that defines right and wrong conduct
Three Views of Ethics:
1. Utilitarian View of Ethics: Practical view
2. Right View of Ethics: Freedom, privacy
3. Theory of Justice View of Ethics: General country law
Code of Ethics: A formal document that states an organizations primary values
and the ethical rules it expects organizational members to follow.
Chapter 2: Fundamental of HRM
Management Essentials
Management is the process of efficiently achieving organization objectives withand through people.
The Primary Functions of Management are:
1. Planning (establish goals and objectives)2. Organizing (determining what jobs are to be done, by whom,
where decisions are to be made and how to group
employees)3. Leading (ensuring that the right people are on the job with
appropriate skills and motivating them to high productivity
4. Controlling (monitoring activities to ensure goals are met
Importance of HRM in Organization
1. Focus on the Strategic Nature of HR
- Two primary responsibilities: a) assisting the organization for strategic decisions b)
Representing & advocating for the organizations employees
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
4/20
- HRM must be forward thinking
- HRM is a function of every
managers job, not just those whowork in human resources (HR)
2. Four HRM Internal Functions
1. Staffing: Recruitment, Selection, HR Planning
2. Maintenance: Safety & Health, communication, employee relations3. Training and Development: Orientation, employee training, employee
development, career development
4. Motivation: Performance appraisals, rewards and compensation and
employee benefits3. Four External Functions
1. HRM Strategic Environment: globalization, technology, workforce
diversity, changing skills requirements, decentralize work-sites
2. Government Legislation: Employee retirement act, Equal pay act,Disabilities act, Health & Safety Act, Immigration Act, Medical leave act
3. Labor Union: Third-Party Representative-work for its members to securewages, hours and other terms & conditions of employment. Grievance
Procedure or a specified process for resolving conflicts between workers
and management
4. Management Thought: Current Management Thought and Practice
Management Thought Theories:1. Frederick Taylor (Scientific Management)-to enhance worker productivity
2. Hugo Munsterberg: training, performance evaluations and job efficiency
3. Mark Parker Follet: teamwork concept and group cohesiveness4. Elton Mayo (Hawthorne Studies) a series of studies that provided new insights
into group behavior
1) Staffing Function
Activities in HRM concerned seeking and hiring qualified employees The goal of recruiting is to give enough information about the job to attract a large
number of qualified applicants and simultaneously discourage the unqualified from
applying.
Job Analyzes on specific skills, knowledge and abilities Many companies use a variety of steps to assess the applicants
2) Training & Development Function
1. Employee Training: Acquiring better skills for their current-job
2. Employee Development: Necessary talent internally available for future3. Career Development: To provide necessary information and assessment
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
5/20
4. Organization Developments: Change the attitude and values of employees
according to new strategic directions
3) The Motivation Function
Activities in HRM concerned with helping employees exert at high energy level A level of respect between management and workers
Two factors: Ability & Willingness to do job
Understand the implications of motivational theories (Exhibit 2-4, Page - 44)
Motivation Theory (Exhibit 2-4)
1. Adam Maslow
2. Douglas McGregor
3. Fredrick Herzberg
4. David McClelland5. Stacey Adams
6. Victor Vroom
1) Abraham Maslow's Hierarchy of Needs Motivational Model (1943):
1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.
2. Safety needs - protection from elements, security, order, law, limits, stability, etc.
3. Belongingness and Love needs - work group, family, affection, relationships, etc.
4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance,prestige, managerial responsibility, etc.
5. Self-Actualization needs - realizing personal potential, self-fulfillment, seekingpersonal growth and peak experiences.
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
6/20
Extended 8 Level Hierarchy of Needs (Abraham Maslow)-2000 :
1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.
2. Safety needs - protection from elements, security, order, law, limits, stability, etc.
3. Belongingness and Love needs - work group, family, affection, relationships, etc.4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance,
prestige, managerial responsibility, etc.
5. Cognitive needs - knowledge, meaning, etc.6. Aesthetic needs - appreciation and search for beauty, balance, form, etc.
7. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking
personal growth and peak experiences.
8. Transcendence needs - helping others to achieve self actualization.
Douglas McGregor - Theory x y
Theory x ('authoritarian management' style)
The average person dislikes work and will avoid it he/she can.
Therefore most people must be forced with the threat of punishment to worktowards organizational objectives.
The average person prefers to be directed; to avoid responsibility; is relatively
unambitious, and wants security above all else.
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
7/20
Theory y ('participative management' style)
Effort in work is as natural as work and play.
People will apply self-control and self-direction in the pursuit of organizationalobjectives, without external control or the threat of punishment.
Commitment to objectives is a function of rewards associated with their
achievement. People usually accept and often seek responsibility.
The capacity to use a high degree of imagination, ingenuity and creativity in
solving organizational problems is widely, not narrowly, distributed in thepopulation.
In industry the intellectual potential of the average person is only partly utilized.
Fredrick Herzberg's Motivation-Hygiene Theory (Two Factor Theory)
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
8/20
Leading to Dissatisfaction Leading to Satisfaction
Company policy
Supervision
Relationship w/Boss
Work conditions
Salary
Relationship w/Peers
Achievement
Recognition
Work itself
Responsibility
Advancement
Growth
David McClelland's needs-based Motivational Model
The need for achievement (n-ach)
The n-ach person is 'achievement motivated' and therefore seeks achievement,
attainment of realistic but challenging goals, and advancement in the job. There is a
strong need for feedback as to achievement and progress, and a need for a sense of
accomplishment.
The need for authority and power (n-pow)
The n-pow person is 'authority motivated'. This driver produces a need to be
influential, effective and to make an impact. There is a strong need to lead and fortheir ideas to prevail. There is also motivation and need towards increasing personal
status and prestige.
The need for affiliation (n-affil)
The n-affil person is 'affiliation motivated', and has a need for friendly relationships
and is motivated towards interaction with other people. The affiliation driver
produces motivation and need to be liked and held in popular regard. These people
are team players.
Adams Equity Theory Diagram
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
9/20
Victor Vroom Expectancy Theory
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
10/20
The Expectancy Theory of Motivation explains the behavioral process of why
individuals choose one behavioral option over another. It also explains how theymake decisions to achieve the end they value. Vroom introduces three variables
within the expectancy theory which are valence (V), expectancy (E) and
instrumentality (I).
Three components of Expectancy theory:
Expectancy, Instrumentality, and Valence
1. Expectancy: Effort Performance (EP)
2. Instrumentality: Performance Outcome (PO)
3. Valence- V(R)
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
11/20
Expectancy: Effort Performance (EP)
Expectancy is the belief that one's effort (E) will result in attainment of desiredperformance (P) goals. Usually based on an individual's past experience, self
confidence (self efficacy), and the perceived difficulty of the performance standard
or goal. Factors associated with the individual's Expectancy perception are selfefficacy, goal difficulty, and control. Self efficacy is the persons belief about their
ability to successfully perform a particular behavior.
Instrumentality: Performance Outcome (PO)
Instrumentality is the belief that a person will receive a reward if the performanceexpectation is met. This reward may come in the form of a pay increase, promotion,
recognition or sense of accomplishment. Instrumentality is low when the reward is
given for all performances given.
Valence- V(R)
Valence: the value the individual places on the rewards based on their needs, goals,
values and Sources of Motivation. Factors associated with the individual's valence
for outcomes are values, needs, goals, preferences and Sources of MotivationStrength of an individuals preference for a particular outcome.
4) Maintenance Function
Activities in HRM concerned with maintaining employees commitment and
loyalty to the organization. Communication Program: HRM programs designed to provide information to
employees.
Some programs help employees know what is occurring around them and ventfrustrations- through teleconferencing, intranet, bulletin boards and hall meetings
How are HRM Functions Translated into Practice?
Employment: activities surroundings the staffing and selection function
Training and Development helps employees and the organization to achieve
greater productivity Compensation & Benefits: paying employees and administering benefits packages
Employee Relations: ensuring open communication exists for all employees
Effective Communication Program Involve:
Top Management Commitment Effective upward communication
http://en.wikipedia.org/wiki/Self_efficacyhttp://en.wikipedia.org/wiki/Self_efficacy -
8/2/2019 HRM 501 - chapter1-2-5-6-7
12/20
Determining what to communicate
Allowing for feedback
Accurate information source
Chapter: 5 - Human Resource Planning and Job Analysis
Human Resource Planning: Process of determining an organizations
human resource needs.
An Organization Framework
SWOT Analysis
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
13/20
PESTEL Analysis
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
14/20
Human Resource Information System (HRIS): A computerized system
that assists in the processing of HRM information.
Exhibit 5-2: Information Categories of Human Resource Information
System (HRIS):
Group 1: Basic Non-confidential Information
Employee Nam
Organization Name
Work Location & Phone Number
Group 2: General Non-confidential Information
Info previous record
Social Security Number (Bangladesh TIN Number)
Other organization information (code, effective date)
Position info (code, title, effective date)
Group 3: General Information with Salary
Info previous wages record
Current Salary, effective date, amount of last change, type of
last change and reason for last change
Group 4: General Information with Salary
Info previous wages record + Education Data
Group 5: Extended Confidential Information with Salary
Bonus info Projected Salary increase info + performance record
Replacement Chart: HRM organization charts indicating position that
may become vacant in the near future and individuals who may fill the
vacancies. See the chart Exhibit 5-3
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
15/20
Job Analysis: Provides information about jobs currently being done and
the knowledge, skills and abilities that individuals need to perform the
job adequately.
Job Analysis Methods
1) Observation Method: A job analysis techniques in which data are
gathered by watching employers work.
2) Individual Interview Method: Meeting with an employee to
determine what his or her job entails
3) Group Interview Method: Meeting with a number of employees to
collectivity determines what their job entails.4) Structured Questionnaire Method: A specifically designed
questionnaire on which employees rate tasks they perform in their
jobs.
5) Technical Conference Method: A job analysis technique that
involves extensive input from the employees supervisor.
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
16/20
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
17/20
Focus Five (5) Specific Constraints:
1. Organization Image: The image of the organization , can be a potential
constraint2. Job Attractiveness: wide range of facilities
3. Internal Organization Policies: Promote from within wherever possible
(internal hiring)4. Government Influence: Bangladesh
5. Recruiting Costs: Recruiting efforts are expensive
Recruiting: A Global Prospective
Host-Country National (HCN): A citizen of the host country hired by an
organization based in another country.
Expatriate: An individual who lives and works in a country of which he or she is
not a citizen
BMW Car German parts plant, China assembly operations, U.S. Marketing Team
Recruiting Sources
1. Internal Search2. Employee Referrals/Recommendations
3. External Search
4. Alternatives
1) Internal Search
A promotion-from-within concept
Advantages:
It is good public relations
It builds morale
It encourages good individuals who are ambitious
It is less costly than outside recruitment
Training Devices for developing middle top level
A good selection : individual performance is available
2) Employee Referrals & Recommendation
A recommendation from a current employee regarding of a job applicant
Employee referrals are an excellent means of locating potential employees for hard
to fill positions (i.e. IT professionals, Computer Programmer, Engineers)
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
18/20
3) External Search
1. Advertisements : Newspaper Blind box ad: An advertisement that does not identify the advertising
organization (i.e. pls send your CV to P.O. Box 1234)
2. Employment Agencies3. School, College and Universities4. Professional Organization: Labour Union, Professional Clubs/Association
5. Unsolicited Applicants: Letter/e-mail/phone
6. Cyberspace Recruiting Websumes: Web Pages that are used as resume
4) Alternatives
1. Temporary Help Services : 6 month2. Employee Leasing: Individuals hired by one firm and sent to work in another for a
specific time3. Independent Contractors: Consultant
Getting into the Organization
Getting a job Full-Time
Start Early
Prepare Your Resume
Hard Copy
Soft Copy
Mini-Compact Disk
Website Blog Research Copy
Chapter 7: Foundation of Selection
The Selection Process:
The Selection Process consists 8 -Steps:
1. Initial Screening Interview2. Completing the Application Form3. Employment Tests
4. Comprehensive Interview
5. Back-ground Investigation6. Conditional Job Offer
7. Medical or Physical Examination
8. Permanent Job-Offer
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
19/20
The Selection Process
1. Initial Screening Interview: The first steps in the selection Process whereby job
inquiries are sorted. Two Steps Procedure:
Screening Inquiries Screening Interview
2. Completing the Application Form: Company specific employment form used togenerate specific information the company wants; name, address, telephone number
Weighted Application Form: A special type of application form that usesrelevant applicant information to determine the likelihood of Job success
3. Employment Tests: intelligence, aptitude, ability and interest tests
Performance Simulation Tests: Work sampling and assessment centers
evaluation abilities in actual job activities
Work Sampling: A selection device requiring the job applicant to actually
perform a small segment of the job Assessment Center: A facility where performance simulation tests are
administered.
Testing in a Global Arena: U.K. Honesty Tests
4) Comprehensive Interview: A selection device used to obtain in-depth information
about a candidate.
a. Impression Management: Influencing performance evaluations by
portraying an image desired by the appraiser.b. Behavioral Interviews: Observing job candidates not only for what they say
but for how they behave.
c. Realistic Job Previews (RJP): A selection device that allows job candidatesto learn negative as well as positive information about the job & org.
5) Background Investigation: The process of verifying information job candidates
provide, USA-Employment Eligibility Verificationa. Qualified Privilege: The ability for organizations to speak candidly to one
another about employees. Good-Faith Reference
6) Conditional Job Offer: A tentative job offer that becomes permanent after certain
conditions are met.7) Medical/Physical Examination: An examination to determine an applicants
physical fitness for essential job performance
8) Job Offers: completing 7 steps offer job.
a. Comprehensive Selection: Applying all steps in the selection process beforerendering a decision about a job candidate
Key Elements for Successful Predictors
Reliability: A selection devices consistency of measurement. i.e. IQ Test
Validity: The proven relationship of a selection device to relevant criterion.
-
8/2/2019 HRM 501 - chapter1-2-5-6-7
20/20
Content Validity: The degree to which test content, as a sample, represents all
situations that could have been included, i.e. Computer Test
Construct Validity: The degree to which a particular trait relates to successful job
performance.
Criterion-related validity: The degree to which a particular selection device
accurately predicts the important elements of work behavior, as in the relationshipbetween a test score and job performance
Predictive Validity: Validating tests by using prospective applicants as the studygroup
Concurrent Validity: Validating tests by using current employees as the study group
Cut score: A scoring point below which applicants are rejected.
Validity Coefficients: The statistical relationships existing between an individuals
test score and his/her performance. The range 1 to + 1 in magnitude
Validity Generalization: A test valid for screening applicants for a variety of jobs
and performance factor many occupations Meta-Analysis: What distinguishes validity generalization is its use of a statistical
technique. i.e. numerous variables and correct or adjust any variances
Effectiveness of Interviews
Most appropriate for high-turnover jobs
Most effective when they are structured and measure job-related factors
Most valuable when they are used to assess level of motivation and interpersonal
skills