Human Resources Human Resources are any organization’s most important resource. Make people your top priority. Strategic Human Resource Management Process Establish the mission and the vision Establish the grand strategy Formulate the strategic plans Plan human resources needs Recruit and select people Orient, train, and develop Perform appraisals of people Purpose: Get optimum work performance to help realize organization's mission and vision Business Goals vs. HR Goals Increase market share Improve efficiencies Improve customer service Grow through acquisitions and alliances Reduce costs as % of revenues Attract new applicants Reduce staffing levels Empower lower level employees Provide employment stability and motivating reward structures Encourage employees to take on increasing job responsibilities Laws and Regulations Equal Employment Opportunity: laws which prohibit discrimination on the basis of race, color, religion, sex, national origin, age (over 40), physical or mental disabilities, pregnancy, etc. Compensation and Benefits: laws which provide for minimum wages and overtime payment, equal pay, family and medical leave, unemployment compensation, worker’s compensation, social security benefits, pension fund management, access to personnel files, etc. Laws and Regulations (cont.) Labor Relations: establishes procedures by which employees may establish labor unions and requires organizations to bargain with legally formed unions, also limits union power and specifies management rights during a union organizing attempt, etc. Health and Safety: mandates the provision of safe working conditions, etc. Human Resources The Old HR Approach Pay is based on salary grades and hourly rates Bonuses tied to unit and company performance Benefits are standard throughout organization Management strategy modeled on best practices at high-performing firms Career structures are predetermined The New HR Approach Pay is based on achieving goals Bonuses tied to individual performance Benefits tailored to employee groups Strategy based on internal analysis of employees Career structures are sculpted to individuals Traditional Recruiting Sources Internal searches Advertisements Employee referrals Public employment agencies Private employment agencies School placement Temporary help services Employee leasing and independent contractors Selection Devices Application form Written tests Performance-simulations work sampling assessment centers Interviews Background investigations Physical examination Typical Training Methods On-the-job training methods Job rotation Understudy assignments Off-the-job training methods Classroom lectures Films and videos Simulation exercises Vestibule training Typical Training Programs Basic Literacy Skills Technical Skills Interpersonal Skills Problem-Solving Skills Diversity Training Ethics Training Performance Appraisal The risks of rewarding A while hoping for B Establish clear criteria If end count rather than the means, evaluate task outcomes If it is difficult to identify specific outcomes to a specific individual, behaviors may be evaluated Members of teams where team output, but not individual output, can be measured Who should evaluate? Immediate superior, self-evaluation, immediate subordinates, peers, Comprehensive 360 Degree Performance Appraisal Appraisal Methods Written essays Critical incidents Graphic rating scales Behaviorally anchored rating scales Multiperson comparisons Group order ranking Individual ranking Paired comparison Performance Appraisal Improving Performance Appraisals Emphasize behaviors rather than traits Document performance behaviors in a diary Use multiple evaluators Evaluate selectively Train evaluators Provide employees with due process Don’t Forget Performance Feedback Performance Appraisal Team Performance Appraisals Tie the team’s results to the organization’s goals Begin with the team’s customers and the work process the team follows to satisfy their needs.Measure both team and individual performance. Train the team to create its own measures. Don’t forget cultural differences Management Development On the Job Understudy positions Coaching Job Rotation Special projects Committee/Team assignments Off the Job Classroom training Lectures Case studies Role playing In-basket exercises Business games Assessment centers Seven Practices of Successful Organizations Employment Security Selective Hiring Self-Managed Teams and Decentralization as Basic Elements of Organizational Design Comparatively high Compensation Contingent on Organizational Performance Provide Extensive Training Reduction of Status Differences Sharing Financial and Performance Information Current Issues Diversity Sexual harassment Family concerns Health issues, including AIDS, substance abuse, etc. Union relationships Workplace violence Layoff survivors John Knorek, reported in Pacific Business News October 2004 Local Top 10 HR Trends Rising cost of health care. Increasing use of technology in the workplace, especially with email, cell phones and hand-held devices. Increasing use of technology in the HR profession with online filing of benefits, paperwork and training programs. Managing talent and retaining employees. Increasing demand for all skills and shortage of labor. Top 10 HR Trends Pacific Business News, October 2004 Outsourcing of jobs to local and other companies. Increasing government regulation and complicated compliance issues. Increasing demand for ethics and transparency in business. Managing more security and safety systems in light of the Set. 11, 2001 terrorist attacks. Changing definition of quality-of-life issues based on generational demands. The Costs of Downsizing Massive layoffs can backfire after taking into account: Severance and rehiring costs Potential lawsuits from aggrieved workers Loss of institutional memory and trust in management Lack of staffers when economy rebounds Survivors who are risk-averse, paranoid, and political The Benefits of No-Layoffs Companies that avoid downsizing say they get: A fiercely loyal, more productive workforce Higher customer satisfaction Readiness to snap back with the economy A recruiting edge Workers who aren’t afraid to innovate, knowing their jobs are safe.