Chapter 16 Flashcards
An organizational level
approach to human resources
management with a concern
for the effects of HRM practices
on firm performance.
Strategic human resource management (SHRM)
The collective sum of the
attributes, life experience,
knowledge, inventiveness,
energy, and enthusiasm that its
people choose to invest in their
work.
human capital
The process of putting together
various elements to form a job,
bearing in mind organizational
and individual worker
requirements.
Job design
16.2 KT
Human resources management is becoming increasingly important in
organizations because today’s knowledge economy requires employees to
contribute ideas and be engaged in executing the company’s strategy. HR is
thus becoming a strategic partner by identifying the skills that employees
need and then providing employees with the training and structures needed
to develop and deploy those competencies. All the elements of
HR—selection, placement, job design, and compensation—need to be aligned
with the company’s strategy so that the right employees are hired for the
right jobs and rewarded properly for their contributions to furthering the
company’s goals.
Competition between
organizations to attract and
retain the most able
employees.
war for talent
Anticipating the need for
human capital and setting a
plan to meet it.
talent
management
A process whereby an
organization ensures that
employees are recruited and
developed to fill each key role
within the company.
succession planning
KT 16.3
The coming shortage of workers makes it imperative for managers to find,
hire, retain, and develop their employees. Managers first need to define the
skills that the company will need for the future. Then, they can “make or
buy”—that is, train or hire—employees with the needed skills. Retaining
these employees requires engaging them on the job. Good talent
management practices translate to improved financial performance for the
company as a whole.
A doctrine of American law
that defines an employment
relationship in which either
party can break the
relationship with no liability,
provided there was no express
contract for a definite term
governing the employment
relationship and that the
employer does not belong to a
collective bargaining unit (i.e.,
a union).
the at-will
employment doctrine
A job interview where
candidates are asked in-depth
questions about specific job
situations in the past or future.
situational interviews
16.4
Effective selection and placement means finding and hiring the right
employees for your organization and then putting them into the jobs for
which they are best suited. Providing an accurate and complete job
description is a key step in the selection process. An important
determination is whether the candidate’s personality is a good fit for the
company’s culture. Interviewing is a common selection method. Situational
interviews ask candidates to describe how they handled specific situations in
the past (experience-based situational interviews) and how they would
handle hypothetical questions in the future (future-oriented situational
interviews.) Other selection tools include cognitive tests, personality
inventories, and behavioral traits assessments. Specific personalities may be
best suited for positions that require sales, teamwork, or entrepreneurship,
respectively. In our increasingly global economy, managers need to decide
between using expatriates or hiring locals when staffing international
locations.
A form of variable pay where
the employee earns additional
compensation based on
achieved objectives.
bonus
An evaluation of the positions
in an organization to
understand job design
requirements and identify
positions critical to strategy
and firm performance.
job evaluation
When pay is tied directly to an
individual’s performance in
meeting specific business goals
or objectives.
pay for performance
When an organization shares
the financial gains with
employees, such that
employees receive a portion of
the profit achieved from their
efforts. (Sometimes called
profit sharing.
gainsharing
