Prelim Flashcards
If there are not enough people in the ________ _______ with the required skills or background, then efforts to recruit and hire will fail, as well the overall growth strategy.
labor force
It is the process of forecasting the supply and demand for human resources within an organization and developing action plans for aligning the two.
HUMAN RESOURCE PLANNING
The Human Resource Planning Process
- Forecasting the Supply of Human Resources
- Forecasting the Demand of Human Resources
- Comparing Forecasted Labor Supply and Labor Demand
- Taking Appropriate Actions
Two major concepts in HR planning
o Labor Demand is the organization’s projected human resources requirement.
o Labor Supply is the organization’s source of workers to meet demand requirements.
It involves predicting the availability of current or potential employees with the skills, abilities, and motivation to perform jobs that the organization expects to have available.
FORECASTING THE SUPPLY OF HUMAN RESOURCES
Several mechanisms can help managers forecast the supply of human resources in regard to current employees.
o Looking at the internal records (201 files)
o Looking at the trends (Check the extent to which people leave their jobs voluntarily or involuntarily.)
An increasingly important element in the the HR planning process
human resource information system
It is an integrated and increasingly automated system for maintaining a database regarding the employees in an organization.
human resource information system
details of an employee in an human resource information system
- date of hire
- job history within the organization
- education
- performance ratings
- compensation history
- training and development profile
- various special skills and abilities.
9 Labor Trends and Issues
- Baby Boomer Gen ages
- Declining birthrates
- Improved health and medical care (productivity increase)
- Mandatory retirement age requirement increases
- More women entering workforce
- Shift on population
- Employee Diversity
- Mathematical trends model (Use of Data analytics)
- Executive succession - systematically planning for future promotions
One important ingredient in this assessment is the organization’s own strategic plans regarding anticipated growth, stability, or decline.
FORECASTING THE DEMAND FOR HUMAN RESOURCES
These are investments people make in themselves to increase their value in the workplace. These investments might take the form of additional education or training.
Human Capital Investments
The percentage of individuals looking for and available for work who are not currently employed.
Unemployment Rates
Prevailing wage rate for a give job in a given labor market.
Market Wage Rate/Minimum Wage
Labor Supply exceeds Labor Demand
- Layoffs
- Attrition and Hiring Freezes
- Early Retirement
- Promotions, Transfers, and Demotions
Labor Supply equals Labor Demand
Status Quo – maintain the firm’s employment levels
Labor Demand exceeds Labor Supply
- Employee Overtime
- Contingent Labor
- Employee Retention
- Promotion. Transfers, and Demotions
- New Hires
This refers to the process of gathering and organizing detailed information about various jobs.
JOB ANALYSIS
These are the fundamental requirements necessary to perform a job.
Knowledge, Skills, and Abilities (KSAs)
condition of being aware of something (facts or concepts).
Knowledge
feelings, emotions, beliefs, or values about something.
Attitudes
ability to perform tasks or activities measured in time and precision.
Skills
Job Analysis and Other Human Resource Functions
Selection process, Performance appraisal, Training and development, Compensation
Steps in Job Analysis
- Determining information needs
- Determining methods for obtaining information
- Determining who will collect information
Individuals who perform job analysis in an organization
Job analysts
Individual who is highly knowledgeable about a particular job
Subject matter expert (SME):
Database that provides both basic and advanced job-analysis information.
Occupational Information Network (O*NET)
It is simply having one or more SMEs prepare a written narrative or text description of the job.
Narrative Job Analysis
It defines abilities as the enduring attributes of individuals that account for differences in performance; it relies on the taxonomy of abilities that presumably represents all the dimensions relevant to work.
Fleishman Job Analysis System
This is a family of job-analysis methods, each with unique characteristics; each focuses on analyzing all the tasks performed in the focal job.
Task-Analysis Inventory
According to this approach, all jobs can be described in terms of the level of involvement with people, data, and things.
Functional Job Analysis
A standardized job-analysis instrument consisting of 194 items that reflect work behavior, working conditions, and job characteristics that are assumed to be generalizable across a wide variety of jobs.
Position Analysis Questionnaire
A standardized job-analysis instrument, similar in approach to the PAQ, that also contains 197 items.
Management Position Description Questionnaire
Focuses on critical behaviors that distinguish effective from ineffective performers
Critical Incidents Approach
It lists the tasks, duties, and responsibilities for a particular job.
JOB DESCRIPTION
It focuses on the individual who will perform the job and indicates the knowledge, abilities, skills, and other characteristics that an individual must have to be able to perform the job.
JOB SPECIFICATION
It consists of people with formally assigned roles who work together to achieve the organization’s goals.
organization
Someone who is responsible for accomplishing the organization’s goals, and who does so by managing the efforts of the organization’s people.
manager
These are the people an organization employs to carry out various jobs, tasks, and functions in exchange for wages, salaries, and other rewards.
human resources
It refers to the comprehensive set of managerial activities and tasks concerned with attracting, developing, and maintaining a qualified workforce—human resources—in ways that contribute to organizational effectiveness.
human resource management
The role of HRM has become quite important partly from a growing realization of the importance of people as a source of _____________ ______________.
competitive advantage
HRM function also came to require dedicated professionals who could balance ________ and _________ concerns with the need of organizations to survive and be profitable.
legal and ethical
Managers around the world have come to understand that properly managed ________ __________ can be an important source of competitive advantage in an increasingly competitive world.
human resources
It is the process of hiring outside firms to handle basic HRM functions, presumably more efficiently than the organization could.
outsourcing
At the same time that HR managers were taking on a more strategic role, many organizations began shrinking the more _____________ _______ played by HR managers.
traditional roles
It is one of the earliest approaches to management, was concerned with structuring individual jobs to maximize efficiency and productivity.
scientific management
The major proponents of scientific management
Frederick Taylor (father of scientific management)
Frank and Lillian Gilbreth (time and motion studies)
These are some of the businesses that grew into big companies during the scientific management era.
GM, Bethlehem Steel (1899), Ford Motor company (1903), Boeing (1916)
It was the first company to establish a corporate employment department to deal with employee concerns in 1900.
B.F. Goodrich
They set up a similar department in 1902 to deal with employee grievances, wages and salaries, and record keeping.
National Cash Register (NCR)
This instigated the human relations era and helped develop other theories to understand employee character.
Hawthorne studies
This grew from the recognition that human resources needed to be managed.
Personnel management
Specialized organizational units for hiring and administering human resources.
Personnel departments
The manager who ran the personnel department.
Personnel manager
Early Advocates of Organizational Behavior: Robert Owen (Late 1700s)
o Concerned about deplorable working conditions
o Proposed idealistic workplace
o Argued that money spent improving labor was smart investment
Early Advocates of Organizational Behavior: Chester Barnard (1930s)
o Actual manager who thought organizations were social systems that required cooperation
o Believed manager’s job was to communicate and stimulate employees’ high levels of effort
o First to argue that organizations were open systems
Early Advocates of Organizational Behavior: Hugo Munsterberg (Early 1900s)
o Pioneer in field of industrial psychology-scientific study of people at work
o Suggested using psychological tests for employee selection, learning theory concepts for employee training, and study of human behavior for employee motivation
Early Advocates of Organizational Behavior: Mary Parker Follett (Early 1900s)
o One of the first to recognize that organizations could be viewed from perspective of individual and group behavior
o Proposed more people-oriented ideas than scientific manage- ment followers
o Thought organizations should be based on group ethic
The Hawthorne study by Roethlisberger and Mayo revealed that..
individual and group behavior played an important role in organizations and that human behavior at work was something managers really needed to understand more fully.
The basic premise of this era was that if managers made their employees more satisfied and happier, then they would work harder and be more productive.
human relations era
HRM and the Electronic Era
Bigger, faster computers have allowed firms to compile large amounts of data and keep better track of employees, and new approaches to data analysis allow organizations to monitor patterns of behavior and preferences of those employees.
This system made it possible for an organizations to obtain the job analysis information they need from an online database.
O*NET OnLine system
Give examples on how technology has changed the HR function
- potential applicants search for jobs by accessing one of the many job-search websites
- The use of online testing for selection and interviews being conducted by SKYPE and other new technology
- Training programs can now be purchased from vendors and provided to employees online
- Information about benefits and the ability to change benefits are also available to employees online
- Computer monitoring allows organizations to collect real-time performance data from employees on various jobs.
These are employees whose jobs are primarily concerned with the acquisition and application of knowledge.
Knowledge workers
Emerging Human Resource Challenges
- Determining how and when to initiate layoffs
- Managing the effect of world events on existing and potential employees
Human Resource Management Functions
- Recruitment and selection
- Training and development
- Compensation and benefits
- Performance appraisal and career management
- Managing Labor relations
Goals of Human Resource Management
- Facilitating organizational competitiveness
- Enhancing overall quality and productivity
- Complying with Legal and Social Obligations
- Promoting Individual Growth and Development
It is the measure of efficiency that summarizes and reflects the value of the outputs created by an individual, organization, industry, or economic system relative to the value of the inputs used to create them.
productivity
It is the total set of features and characteristics of a product or service that bears on its ability to satisfy stated or implied.
quality
Organizations historically divided their managers into two groups:
o Line managers are those directly responsible for creating goods and services.
o Staff managers are those responsible for an indirect or support function that would have costs but whose bottom-line contributions are less direct.
HRM in smaller organizations
- Require line managers to handle their basic HR functions
- Employees receive less training
- Exempt from many legal regulations
HRM in larger organizations
- Separate HR unit is a necessity
- Require one full-time manager and a secretary
- HR functions have specialized subunits
Trends in Jobs People Do
- Work has shifted from manufacturing to service
- On-demand workers: An on-demand workforce is a group of people that can be hired as and when needed
- Human capital: Some jobs always emphasized knowledge and education.
It refers to companies extending their sales, ownership, and/or manufacturing to new markets abroad.
Globalization
It is an interrelated set of elements functioning as a whole.
system
It is an integrated and interrelated approach to managing human resources that fully recognizes the interdependence among the various tasks and functions that must be performed
human resource management system
The basic premise of the HRM system
every element must be designed and implemented with full knowledge and understanding of, and integration with, the various other elements.
It attempts to measure the impact and effectiveness of HRM practices in terms of metrics such as a firm’s financial performance.
Utility analysis
ECONOMIC TRENDS
o Unemployment rates
o Economic performance of the country
o Labor force trends: Continuous lowering of the labor force growth and labor force participation rate.
o The unbalanced labor force: In some occupations, unemployment rates are low, while in others unemployment rates are still relatively high.
TECHNOLOGY TRENDS
o Employers use social media for recruiting employees
o New mobile applications for monitor location
o Gaming support
o Cloud computing
o Data analytics—talent analytics
CHARACTERISTICS OF A CONTEMPORARY HR MANAGER
- Understand the different HR functions
- Conceptual skill – ability to coordinate and integrates all of an organization’s interests and activities
- Diagnostic and analytical skills – ability to visualize the best response to a situation
It refers to an individual’s beliefs about what is right and wrong and what is good and bad.
Ethics
It is the process of monitoring and adjusting the composition of the organization’s workforce to its optimal size.
Rightsizing
Managing the workforce size involves:
o Layoffs or early-retirement programs
o Retention programs
o Using temporary workers as a bridge between the current state of affairs and growth or reduction
One of the more basic decisions an organization must make concerning human resources is the ____ of the workforce.
size
It refers to hours worked above the normal 40-hour workweek, for which there is usually a pay premium.
Overtime
An advantage of overtime
It gives employees the opportunity to earn extra income.
Is overtime required?
In general, an employer can request that an employee work overtime, but they cannot “force” an employee to do so against their will, except under certain circumstances defined as “emergency work” under Article 89 of the Labor Code.
The idea behind ____________ ________________ is that an organization can hire someone for only a specific period of time, and a major advantage to the organization is that such workers can usually be paid a lower rate.
temporary employment
It involves an organization paying a fee to a leasing company that provides a pool of employees who are available on a temporary basis.
Employee leasing
It refers to individuals who are regularly expected to work less than 40 hours a week. They typically do not receive benefits and afford the organization a great deal of flexibility in staffing.
Part-time workers
DEALING WITH DECLINING NEEDS FOR EMPLOYEES
- Cutting back on the contingent workforce and retaining only permanent members
- Early retirement and natural attrition
- Plans must be voluntary - Failure to do so could elicit legal actions
It refers to the severance of employment resorted to by management during the periods of business recession, industrial depression, or seasonal fluctuations.
Lay-off
Temporary and permanent lay-off
TEMPORARY: Maximum of six months.
PERMANENT LAYOFF: also known as retrenchment. It is the termination of employment initiated by the employer through no fault of the employees.
A critical determinant of an employee’s reaction to being laid off is his or her perceptions of the _________ involved in the layoff process.
justice
Refers to perceptions that the outcomes a person faces are fair when compared to the outcomes faced by others.
DISTRIBUTIVE JUSTICE
Refers to perceptions that the process used to determine the outcomes was fair.
PROCEDURAL JUSTICE
The perception that the person had some control over the outcome or some voice in the decision.
Voice
The perception that the rules were applied the same way to everyone involved.
Consistency
The perception that the person applying the rules had no vested interest in the outcome of the decision.
Free from bias
The perception that the information used to make the decision was accurate and complete
Information accuracy
The perception that some mechanism exists to correct flawed or inaccurate decisions.
Possibility of correction
The perception that the decision rules conform to personal or prevailing standards of ethics and morality.
Ethicality
The perception that the opinions of the various groups affected by the decision have been considered in the decision.
Representativeness
Refers to the quality of the interpersonal treatment people receive when a decision is implemented.
INTERACTIONAL JUSTICE
EFFECTIVENESS OF DOWNSIZING
- Most studies suggest that downsizing is an ineffective strategy
- Strategy preferred by stockholders
- Downsizing results in negative effects on stock prices and other financial indexes
- Survivor syndrome
- Existing employees’ morale and commitment drop dramatically
- Alternatives to layoffs may result in job loss
Terminating employees whose services are no longer desired
Involuntary turnover
This help employees and reduce the costs associated with lost workdays and poor productivity
Employee assistance programs (EAPs)
Designed to try to improve performance through the use of punishment and discipline
PROGRESSIVE DISCIPLINE
Severity of punishment increases over time or across the problem.
Progressive disciplinary plans
Steps in progressive disciplinary plans include:
verbal warnings, written warnings, suspension, and termination
TYPICAL DISCIPLINARY PROBLEMS: PERFORMANCE
- Failure to complete work on time
- Errors in work products
- Work products that do not meet the standard
TYPICAL DISCIPLINARY PROBLEMS: ATTENDANCE
- Repeated unexcused problems
- Tardiness
- Leaving work early
TYPICAL DISCIPLINARY PROBLEMS: OTHER BEHAVIOR PROBLEMS
- Gambling
- Vandalism
- Use of drugs and alcohol
- Sexual harassment
TYPICAL DISCIPLINARY PROBLEMS: ETHICS AND HONESTY
- Taking credits for the work of others
- Falsifying records
- Soliciting or accepting bribes and kickbacks
TYPICAL DISCIPLINARY PROBLEMS: TERMINABLE PROBLEMS
- Major theft
- Sleeping on the job
- Selling narcotics
It means employer can terminate any employee, at any time, for any reason, or for no reason at all
EMPLOYMENT AT WILL
It refers to the ways of reducing the voluntary turnover of desired employees.
EMPLOYEE RETENTION
Model of the Turnover Process
Job dissatisfaction - Thinking about leaving - Looking for alternatives - Intention to quit - Actual turnover
One resignation can make it more probable for others to quit by 7%-25%. This phenomenon is known as
“TURNOVER CONTAGION”
The degree to which an employee identifies with an organization and is willing to exert effort on behalf of the organization.
Organizational commitment
EFFECTS OF JOB DISSATISFACTION
- It leads to increased voluntary turnover.
- It is also predictive of other types of withdrawal behavior.
- Dissatisfied employees are also more likely to join unions.
- Reduction of commitment to the organization.
- Dissatisfied employees are less likely to engage in behaviors on the job known broadly as organizational citizenship behaviors.
It includes those behaviors that are beneficial to the organization but are not formally required as part of an employee’s job.
Organizational citizenship behavior
Assesses satisfaction with specific job aspects
Job descriptive index (JDI)
Making work meaningful and giving more autonomy and opportunity to use skills
Job enrichment
Pre-employment previews that provide accurate and realistic information to the job applicant
Realistic job previews
Rights given to employees to purchase a certain number of shares of stock at a given price
Stock options
Mergers vs. Acquisitions
o Mergers – two businesses of similar size and scale of operations combine into one new company
o Acquisitions – one business buys another, often smaller, business.
