Managing Human Resources in Organizations: Organizing
Managing Human Resources in Organizations: Organizing
Managing Human Resources in Organizations: Organizing
Organizing
CHAPTER 8
Managing Human
Resources in
Organizations
• Human capital
– Reflects the organization’s investment in attracting,
retaining, and motivating an effective workforce
• Job analysis
– A systemized procedure for collecting and recording
information about jobs within an organization
• Job description
– A listing of the job’s duties; its working conditions; and
the tools, materials, and equipment used to perform
the job
• Job specification
– A listing of the knowledge, skills, abilities, and other
credentials the incumbent jobholder will need to do a
job
• Internal supply
– Anticipated personnel changes
– Replacement chart
• Lists each important managerial position in the organization,
who occupies it, how long he or she will probably remain in
the position, and who is or will be a qualified replacement
– Employee information system (skills inventory)
• Contains information on each employee’s education, skills
experience, and career aspirations; usually computerized
• External supply
– State employment commissions
– government reports
– College graduation records
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8-2b Recruiting Human Resources (slide 1 of 2)
• Recruiting
– The process of attracting individuals to apply for
jobs that are open
• Internal recruiting (Promotion from Within)
– Considering current employees as applicants for
higher-level jobs in the organization
– Can help build morale and reduce turnover of high-
quality employees.
– Can create a “ripple effect”—the disadvantage of
having to successively fill vacated positions.
• Tests
– Ability, skill, aptitude, or knowledge tests are usually
the best predictors of job success.
– Tests must be validated, administered, and scored
consistently.
– The testing process must be the same for all
candidates.
• Interviews
– Interviewer biases can be overcome and interview
consistency and validity can be improved by training
interviewers and using structured interviews.
• Assessment Centers
– Used to select managers from current employees for
promotion.
• Other Techniques
– Polygraph testing, physical exams, drug tests, and
credit checks are used to screen prospective
employees.
• Performance appraisal
– A formal assessment of how well an employee is
doing his or her job
• Reasons for performance appraisal
– Validates the selection process and
the effects of training
– Aids in making decisions about pay raises,
promotions, and training
– Provides feedback to employees to improve their
performance and plan future careers
• Bias Errors
– Recency Error
• Basing judgments on the subordinate’s most recent
performance because it is the most easily recalled
– Errors of Leniency and Strictness
• Being too lenient, too strict, or tending to rate all employees
as “average”
– Halo Error
• Allowing the assessment of the employee on one dimension
to spread to that employee’s ratings on other dimensions
• 360-degree feedback
– A performance appraisal system in which managers
are evaluated by everyone around them–their boss,
their peers, and their subordinates
– Provides a richer array of performance information
on which to base an appraisal
• Performance Feedback
– Best given in a private meeting between the employee
and immediate supervisor
– More effective if managers are properly trained to
conduct feedback interviews
• Focus of Appraisal Discussion
– Assessed level of performance
– How and why the assessment was made
– How the employee’s performance can be improved in
the future
• Compensation
– The financial remuneration given by the organization
to its employees in exchange for their work
• Forms of compensation
– Wages are hourly compensation paid to operating
employees.
– Salary is paid for the total contribution of an employee
and is not based on total hours worked.
– Incentives are special compensation opportunities that
are usually tied to performance.
• Purposes of compensation
– Provide a reasonable standard of living
– Provide a tangible measure of an individual’s value to
the organization
• Benefits
– Things of value other than compensation that an
organization provides its workers
• Types of employee benefits
– Pay for time not worked
– Life, health, and other insurance
– Service benefits
– Cafeteria benefit plans
• Diversity
– A characteristic of a group or organization whose
members differ from one another along one or more
important dimensions, such as age, gender, or
ethnicity
• Diversity as a Competitive Advantage
– Higher productivity; lower turnover and absenteeism
– Increased reputation as “good place to work”
– Better understanding of different market segments
– Increased creativity and innovation
• Labor Relations
– The process of dealing with employees who are
represented by a union.
– Organizations prefer that employees remain nonunion
because unions limit management’s freedom.
– The best way to avoid unionization is to practice good
employee relations by:
• Providing fair treatment with clear standards in pay,
promotions, layoffs, and discipline.
• Providing a complaint and appeal system and
avoiding favoritism.
• Collective bargaining
– The process of agreeing on a satisfactory labor
contract between management and a union
• Grievance procedure
– The means by which a labor contract is enforced