HRM

Question 1

what is the HRM process

Answer 1

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

Question 2

what is HRM

Answer 2

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

Question 3

importance of HRM

Answer 3

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

Question 4

functions of HRM process

Answer 4

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

Question 5

environmental factors afffecting the HRM process

Answer 5

1) trade unions - organisations representing workers’ rights and interested through collective bargaining
2) legislation and regulation
3) the economy
4) demography

Question 6

trade unions

Answer 6

• 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

Question 7

legislation and regulation

Answer 7

• 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 -

Question 8

demography

Answer 8

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

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Question 9

the economy

Answer 9

• 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

Question 10

steeps of identifying and selecting

Answer 10

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:

Question 11

recruitment and decruitment

Answer 11

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

Question 12

pros and cons of referral

Answer 12

+ 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

Question 13

pros and cons of social media

Answer 13

+ takes advantage of current employees’ connections
+ effective to reach younger candidates

• not as effective to reach older people

Question 14

internet

company website

college recruiting

recruiting agencies

Answer 14

+ 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

Question 15

selection

Answer 15

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)

Question 16

validity and reliability of selection devices

Answer 16

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

Question 17

types of selection tools

Answer 17

1) interviews
2) background checks - social media
3) written and performance simulation (work samples and assessment centres) tests
4) application forms
5) physical exams

Question 18

work samples and assessment centres

Answer 18

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

Question 19

issues with job interviews

Answer 19

• 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

Question 20

social media

Answer 20

screen potential employees but not useful for more detailed evaluation

Question 21

realistic job previews

Answer 21

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

Question 22

providing skills and knowledge

Answer 22

1) orientation and socialisation
2) training

Question 23

orientation

Answer 23

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

Question 24

socialisation

Answer 24

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)

Question 25

importance of effective orientation and socialisation

Answer 25

make them feel comfortable! reduces risk of poor performance and premature resignation

Question 26

training

Answer 26

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

Question 27

training methods

Answer 27

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

Question 28

retaining competent and skilled employees

Answer 28

1) performance eval
2) compensation and benefits
3) career development

Question 29

performance eval methods

Answer 29

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

Question 30

3 contemporary compensation issues

Answer 30

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.

Question 31

benefits options

Answer 31

must be based on what employees want

Question 32

issues of career development

Answer 32

• 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

Question 33

contemporary HRM issues

Answer 33

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)