HRM Flashcards
what is the HRM process
1) HR planning
2) recruitment
3) selection
4) orientation
5) training
6) performance evaluation
7) compensation and benefits
8) career development
all these are influenced by the external environment
what is HRM
managing the human capital of an organisation to achieve a specific purpose and gain a competitive advantage
in smaller firms, these functions are usually carried out by line managers rather than separate departments
importance of HRM
1) source of competitive advantage - developing human capital is the key to sustaining economic value and thus shareholder value
2) strategic tool - treat employees as partners to motivate them to work towards accomplishing goals and strategies
3) improve org performance - high individual performance means high org performance
functions of HRM process
1) identify and select competent employees
2) provide employees with up to date knowledge and skills to do jobs effectively
3) retain competent, highly skilled and high-performing employees
environmental factors afffecting the HRM process
1) trade unions - organisations representing workers’ rights and interested through collective bargaining
2) legislation and regulation
3) the economy
4) demography
trade unions
- collectively bargain aspects like recruitment criteria; promotions; pay; layoff and training + development
- collective bargaining for better pay, benefits, job security etc by unions tend to influence labour practices for non-union ones
- more prevalent in countries in Europe
legislation and regulation
- limit managerial discretion in hiring, promoting. developing and dismissing employees for e.g. no discrimination based on ___
- important as workplace lawsuits increasingly target supervisors
- affirmative action can stay within these limits - organisational programmes that enhance the status of members of protected groups
- representative participation may be required by law e.g. Germany : work councils and board representatives
work councils -
board representatives -
demography
1) changes in ethnic and racial composition of workforce - more Hispanics, Asians
2) aging baby-boomer population
3) growing millenial population
4) skill imbalances (supply and demand) e.g. digital literacy and soft skills like communication and teamwork
how do these affect HRM process?? ask chat gpt
the economy
- downturns: reduce staff, cut pay and reorganise work activities
- booms and tight labour markets: raise wages and benefits, seek out retirees, increase training and other aspects to attract and retain skilled employees
steeps of identifying and selecting
1) HR planning - ensuring right number and type of employees in the right places and time to avoid sudden shortages and surpluses
- current assessment: job analysis; job description and specification
- future HR needs - determined by (1) goals and strategies and (2) demand for product
problems with shortages and surpluses:
recruitment and decruitment
using info from job analysis:
1) recruit - locate, identify and attract capable applicants by referral or social media for e.g.
2) decruit - reduce a surplus of employees by firing, layoff, attrition, transfers, reduced workweeks, early retirement and job-sharing
pros and cons of referral
+ current employees can refer well-qualified applicants they know personally
+ strong referals as they reflect on the referee personally
- may not increase diversity - usually befriend and recomment people like themselves
pros and cons of social media
+ takes advantage of current employees’ connections
+ effective to reach younger candidates
- not as effective to reach older people
internet
company website
college recruiting
recruiting agencies
+ large reach
- many unqualified candidates apply
+ large pool to choose from
- limited to entry-level positions
+ good knowledge of industry requirements - match with and shortlist applicants
- low commitment to specific org
selection
screening applicants to hire the most appropriate one
hiring errors cost the company in many ways:
4 outcomes of selection decisions:
1) successfully accept
2) successfully reject
3) reject errors
4) accept errors
to avoid the last 2, valid and reliable selection devices must be used
use of realistic job previews
costs of mishires: (incl potential unfair dismissal claims and suits)
validity and reliability of selection devices
valid - proven relationship between device and some criterion, e.g. high test score means higher performance OTJ
reliable - measures the same thing consistently over time, provided characteristic being measured stays constant
types of selection tools
1) interviews
2) background checks - social media
3) written and performance simulation (work samples and assessment centres) tests
4) application forms
5) physical exams
work samples and assessment centres
performance sim tests - one of most reliable and valid selectiion tools
hands on simulations of part or all of the work that must be routinely done
performance sim tests designed to evaluate managerial potential
issues with job interviews
- not reliable
- too subjective - favour applicants they relate to, give undue weight to negative info and order of interview may matter
- unstructured - short, casual and random questions that may not relate to job suitability. structured interviews are more reliable
social media
screen potential employees but not useful for more detailed evaluation
realistic job previews
provide both positive and negative information about the job
if employees know what to expect, they will (1) self-select out of selection process and (2) not be as likely to be dissatisfied if they take the job
providing skills and knowledge
1) orientation and socialisation
2) training
orientation
introducing a new employee to the job and organisation, with 2 types:
1) work unit - goals of that work unit; how job contributes to org goals and intro to coworkers
2) organisation - org goals, history, values, rules and HR policies
socialisation
helping employees adapt to org culture, can be:
1) institutional practices - formal, fixed and collective socialisation programs emphasising divestiture and designed to strip away individual differences and promote standard, predictable behaviour
2) individual practices - informal, variable and individual, emphasising investiture and encouraging employees to be creative and independent (used when their unique talents are valued)
importance of effective orientation and socialisation
make them feel comfortable! reduces risk of poor performance and premature resignation
training
process of increasing knowledge and skills to enable more effective work, 2 types:
1) general - e.g. communication, computer skills, customer service, management
2) specific - e.g. change management; creativity, sensitivity training, presentation skills
training methods
traditional:
- on the job
- job rotation
- mentoring and coaching
- experiential
- workbooks and manuals
- lectures
tech based
- e-learning
- mobile learning
- virtual reality
- video/teleconferencing
- dvd/cd/podcast
first 3 tech methods most relevant
retaining competent and skilled employees
1) performance eval
2) compensation and benefits
3) career development
performance eval methods
1) written essay - on strengths and weaknesses
2) critical incident - critical behaviours
3) graphic rating scale - rate on several factors
4) BARS aka Behaviourally Anchored Rating Scale - rate on examples of actual job behaviour
5) multiperson comparison
6) MBO - how well specific goals are achieved
7) 360-degree appraisal - feedback from supervisors, employees and coworkers
electronic performance monitoring is a key development - track workflow in real time e.g. call handle time, time on breaks, objective data to imediately alert to performance issues (advantage over annual review! addressing problems that occurred long ago)
READ PROS AND CONS OF ALLL
3 contemporary compensation issues
1) skill-based vs variable pay - basis of skills vs performance
2) bonuses vs annual pay rise - spreading wealth may be seen as inequitable based on performance
3) pay secrecy vs transparency - transparency needed to judge equity. legislation may also require this
flexible pay needed:
Attract and Retain Talent: In fast-changing environments, firms need to attract skilled employees who value customized compensation packages (e.g., performance-based pay, bonuses).
Motivating Desired Behaviors: As business priorities shift, pay systems need to reward the specific skills and behaviors that drive success in that context, such as innovation or agility.
benefits options
must be based on what employees want
issues of career development
- change in trend from company’s responsibility to employee’s
- upskilling - e.g. reimburse for courses on work-related skills
- internship programmes - assess potential employee’s abilities and motivation without cost and legal issues of permanent employee
contemporary HRM issues
1) sexual harrassment
- legal costs of suits
- negative work environment not conducive to max productivity
- must lay down clear guidelines; training; culture to come forward; taking serious action
2) bullying - targeting negative behaviours at someone repeatedly over a period of time including a power imbalance that stops the victim from protecting themselves
- personal damage to employees - mental health
- firms - lower productivity, absence/turnover (higher re-recruitment costs)
