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Managing Human
Principles of Management
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Learning Outcomes
• Providing Employees with Needed Skills and Knowledge
Explain why orientation is so important.
Describe the different types of training and how that training can
be provided.
• Retaining Competent, High Performing Employees
Describe the different performance appraisal methods.
Discuss the factors that influence employee compensation and
benefits.
Describe skill-based and variable pay systems.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Learning Outcomes
Principles of Management
The Importance of Human Resource
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Examples of High-Performance Work Practices
• Self-managed teams
• Decentralized decision making
• Training programs to develop knowledge, skills and
abilities
• Flexible job assignments
• Open communication
• Performance-based compensation
• Staffing based on person–job and person–organization
fit
Source: Based on W. R. Evans and W. D. Davis, “High-Performance Work
Systems and Organizational Performance: The Mediating Role of Internal
Social Structure,” Journal of Management, October 2005, p. 760.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
The HRM Process
• The HRM process is an ongoing procedure that
tries to keep the organization supplied with the
right people in the right positions, when they
are needed.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
The HRM Process: A Traditional View
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Human Resource Management Process
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Environmental Factors Affecting HRM
• Employee Labor Unions
Organizations that represent workers and seek 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 wage, hours and working conditions.
• Governmental Laws and Regulations
Limit managerial discretion in hiring, promoting and
discharging employees.
Affirmative Action: Organizational programs that enhance the
status of members of protected groups.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Environmental Factors Affecting HRM
• Demographic Trends
By 2020, children below 15 years who are 35 percent
of the population would enter the workforce.
More women and disabled are entering the
workplace.
The directive principles of the constitution require that
the scheduled caste and scheduled tribe should be
given special treatment.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Employment of Women–Protective Legal Provisions
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Employment of Women–Protective Legal Provisions
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Employment of Women–Protective Legal Provisions
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Employment of Women–Protective Legal Provisions
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Managing Human Resources
• Human Resource (HR) Planning
Planning for the future personnel needs of an
organization, taking into account both internal
activities and factors in external environment.
Basic aspects in HR planning:
Planning for future needs
Planning for future balance
Planning for recruiting or laying off employees
Planning for the development of employees
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Recruitment
• Recruitment: The purpose of recruitment is to
provide a group of candidates that is large
enough to let managers select the qualified
employees they need.
• Steps before recruitment
• Job Description
• A written description of a non management job,
covering title, duties and responsibilities, and including
its location on the organization chart.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Recruitment
•Job Specification
A written description of a management position,
covering title, duties, and responsibilities, and
including its location on the organization chart.
•Hiring specification:
A written description of the education, experience and
skills needed to perform a job or fill a position
effectively.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Sources of Recruitment
• Outside Recruitment for Managers and
Professionals
• Major sources for entry level jobs: College
and graduate school campuses are a major
source of entry-level jobs.
• For middle level positions: Placement
agencies or the purchase of expensive ads
• For top level positions: Executive search firms
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Recruitment from Within
• Major advantages
• Individuals are familiar with the organization and its
members.
• Promotion-from-within policy fosters loyalty and inspires
greater effort among organization members.
• Less expensive.
• Disadvantages
• Limits the pool of available talent.
• Reduces the chance that fresh viewpoints will enter the
organization.
• May encourage complacency among employees who
assume seniority ensures promotion.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Selection
• The organization decides whether to make a job
offer and how attractive the offer should be, and
the job candidate decides whether the
organization and the job offer fit his or her needs
and goals.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Steps in the Selection Process
Sr Procedures Purposes Actions and
no Trends
1 Completed job Indicates applicant’s desired Requests only
application position; provides information information that
for interviews. predicts success in the
job.*
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Steps in the Selection Process
Sr Procedures Purposes Actions and Trends
no
4 Background Checks truthfulness of Calls the applicant’s previous
investigation applicant’s resume or application supervisor (with permission)
form. and confirms information from
applicant.
5 In-depth selection Finds out more about the Conducted by the manager to
interview applicant as an individual. whom the applicant will report.
7 Job offer Fills a job vacancy or position. Offers a salary plus benefit
package.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Other Selection Approaches (cont.)
• 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.
Aligns successful applicants’ expectations with actual job
conditions, reducing turnover.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Orientation or Socialization
• Orientation or Socialization is designed to provide new
employees with the information needed to function
organization comfortably and effectively.
• It basically conveys.
General information about the daily work routine
A review of the organization’s history, purpose, operations and
products or services.
A detailed presentation of the organization’s policies, work rules
and employee benefits.
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Training and Development
• Training programs are directed toward maintaining and
improving current job performance while development
programs seek to develop skills for future jobs.
• Employee Training
Types of training
Training Method
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Training Methods
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Employee Performance Management
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Advantages and Disadvantages of
Performance Appraisal Methods
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Compensation and Benefits
• Benefits of a Fair, Effective and Appropriate
Compensation System
Helps attract and retain high-performance employees.
Impacts the strategic performance of the firm.
• Types of Compensation
Base wage or salary
Wage and salary add-ons
Incentive payments
Skill-based pay
Variable pay
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Factors That Influence Compensation and Benefits
Sources: Based on R.I. Henderson, Compensation Management, 6th ed. (Upper Saddle River, NJ: Prentice Hall,
1994), pp. 3–24; and A. Murray, “Mom, Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1
Principles of Management
Contemporary Issues in
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Exhibit 10–12 Tips for Managing Downsizing
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Current Issues in HRM (cont.)
• Sexual Harassment
An unwanted activity of a sexual nature that affects an
individual’s employment.
Unwanted sexual advances, requests for sexual favors and
other verbal or physical conduct of a sexual nature when
submission or rejection of this conduct explicitly or implicitly
affects an individual’s employment.
An offensive or hostile environment
An environment in which a person is affected by elements of a
sexual nature.
• Workplace Romances
Potential liability for harassment
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Current Issues in HRM (cont.)
• Work-Life Balance
Employees have personal lives that they don’t leave
behind when they come to work.
Organizations have become more attuned to their
employees by offering family-friendly benefits:
On-site child care
Summer day camps
Flextime
Job sharing
Leave for personal matters
Flexible job hours
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Current Issues in HRM (cont.)
• Controlling HR Costs
Employee health care
Encouraging healthy lifestyles
– Financial incentives
– Wellness programs
– Charging employees with poor health habits more for benefits
Employee pension plans
Reducing pension benefits
No longer providing pension plans
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Terms to Know
• high-performance work • selection
practices • validity
• human resource • reliability
management process • work sampling
• labor union • assessment centers
• affirmative action • realistic job preview (RJP)
• human resource planning • orientation
• job analysis • performance
• job description management system
• job specification • written essay
• recruitment • critical incidents
• decruitment • graphic rating scales
Principles of Management
Copyright © 2011 Dorling Kindersley India Pvt Ltd
Terms to Know (cont.)
• behaviorally anchored
rating scales (BARS)
• multiperson comparisons
• 360 degree feedback
• skill-based pay
• variable pay
• career
• downsizing
• sexual harassment
• family-friendly benefits
Principles of Management