Fundamental of human resource management pdf

If you. For introductory courses in Human Resource Management. Foundations in. The text presents a wide range of HR topics within a. Fundamentals is also the first text of its. This Fourth Edition has been updated with practical personnel. MyManagementLab is an online homework, tutorial, and assessment program designed to work with this text to engage. Within its structured environment, students practice what they learn, test their understanding,.

The text presents a wide range of HR topics within asingle semester of material, and a wealth of functional examples and applications. Fundamentals is also the first text of itskind to make talent management processes a core study. Within its structured environment, students practice what they learn, test their understanding,and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts. Page 63 Negligent Hiring and Retention Page 64 Avoiding Discrimination Charges Page 66 Recap Page 69 Review Questions Page 71 3 The Employment Process Page 79 Recruitment Sources Page 82 Recruitment Strategy Page 90 Interview Questioning Techniques Page 91 Hypothetical Questions Page 92 Closed-Ended Questions Page 93 Objective and Subjective Language Page 94 Refer to Job-Related Facts Page 95 Orientation Programs Page 96 Organizational Orientation Programs Page 97 Recap Page 98 Review Questions Page 4 Testing Page Employment Testing Page Testing Advantages Page Testing Disadvantages Page Types of Validity Studies Page Test Takers Page Test Administrators Page Test Security Page Testing Policies Page Types of Tests Page Drug Testing Page Psychological Testing Page Personality Testing Page Recap Page Review Questions Page 5 Compensation Page Characteristics of an Effective Compensation Program Page Job Descriptions Page Generic and Specific Job Descriptions Page Guidelines for Writing Job Descriptions Page Position Evaluation Process Page Benchmarking Page Base Pay Page Merit Increase System Page Variable Pay Page Skill-Based Pay Page Broadbanding Page Long-Term Incentive Compensation Page 6 Performance Management Page Objectives and Uses Page Components of an Effective System Page Essay Evaluation Page Graphic Rating Scale Page Forced Distribution Page Allocation of Performance Management Responsibilities Page Coaching and Counseling Page Uses of Performance Management Forms Page Numerical Ratings Page Misuses of Performance Management Forms Page Performance Management Meetings Page Conducting the Performance Management Meeting Page Performance Management Meeting Pitfalls Page 7 Benefits Administration Page Benefits Trends Page Primary Objectives of Benefits Programs Page Social Security and Medicare Page Family and Medical Leave Page Different Types of Benefits Plans Page Flexible Benefits Plans Page Questions to Ask Carriers Page Funding Options Page 8 Employee Relations Page EAP Providers Page Confidentiality Page Grievances and Disciplinary Procedures Page Grievance Procedures Page Disciplinary Procedures Page Alternative Dispute Resolution Page Policies and Procedures Manuals Page Employee Handbooks Page What Employees Want Page 9 Training and Development Page Training Trends Page Types of Training Page Linking Learning with Performance Page The Role of HR Page Needs Assessment Page Types of Needs Assessment Page Directed Training Page Distance Learning Page Advantages and Disadvantages of Distance Learning Page Classroom Learning vs.

Distance Learning Page Evaluating the Effectiveness of Training Page Isolate Competencies Page Application of Learning Page Career Development Page Career Development Model Page Acceleration Pool Page Mentoring Programs Page Product Demonstrations Page Self-Service Applications Page Internal or External Development Page Business Impact Page Privacy and Security Issues Page Bibliography Page Post-Test Page C Page E Page I Page O Page S Page Z Page This document was uploaded by our user.

The uploader already confirmed that they had the permission to publish it. Report DMCA. E-Book Overview Key tools for developing a human resources plan based on organizational needs. Fundamentals of Human Resources Management, Fourth Edition is a comprehensive and up-to-date guide to virtually every aspect of human resources management from understanding the basic HR functions to using the Web for recruiting and selecting the latest HRIS.

Whether new to the profession or a newly promoted professional, students will find in this book all the information and skills they need to do their job and make a positive impact in their organization. All rights reserved. This material may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.

By providing practical, hands-on information and real-world scenarios addressing typical everyday issues that drive HR practitioners, this course gives managers the skills they need to maximize the role of HR in their organizations.

She has more than 25 years of experience as a consultant, course developer, and workshop leader, covering all facets of HR, including legal issues, the employment process, testing, compensation, performance management, benefits administration, employee relations, training and development, and HRMS.

How to Take This Course This course consists of text material for you to read and three types of activities the pre- and post-test, in-text exercises, and end-of-chapter review questions for you to complete. These activities are designed to reinforce the concepts introduced in the text portion of the course and to enable you to evaluate your progress. Take the pre-test before you study any of the course material to determine your existing knowledge of the subject matter. Submit one of the scannable answer forms enclosed with this course for grading.

On return of the graded pre-test, complete the course material. Take the post-test after you have completed all the course material. By comparing results of the pre-test and the post-test, you can measure how effective the course has been for you.

To have your pre-test and post-test graded, please mail your answer forms to: Educational Services American Management Association P. Box Florida, NY All tests are reviewed thoroughly by our instructors and will be returned to you promptly.

If you would like to take the course for credit, you will need to either purchase a hard copy of the course from www. Reading each chapter twice will increase the likelihood of your understanding the text fully. We recommend that you work on this course in a systematic way. Reading the text and working through the exercises at a regular and steady pace will help ensure that you get the most out of this course and retain what you have learned.

In your first reading, concentrate on getting an overview of the chapter content. Read the learning objectives at the beginning of the chapter first. They will act as guidelines to the major topics of the chapter and identify the skills you should master as you study the text.

As you read the chapter, pay attention to the headings and subheadings. Find the general theme of each section and see how that theme relates to others. In your second reading, look for the details that underlie the themes. Read the entire chapter carefully and methodically, underlining key points, working out the details of examples, and making marginal notes as you go.

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Be sure to keep a copy of the completed answer form for your records. No photocopies will be graded. Box Natick, MA 1. Competency-based questions require specific examples concerning what the applicant has done in the past in relation to: a what he or she plans on doing in the future. Mentoring can: a b c d create hard feelings. Do you have questions? Need clarification? The validation method that pertains to selection procedures testing a sample of significant parts of a particular job is called: a content validity.

The financial arrangements and administrative services offered by different carriers vary, so the first step in selecting an insurance carrier is to determine which factors are: a typically sought by work environments similar to yours. Generic job descriptions are written in broad, general terms and may be used for: a determining salary increases. The Equal Pay Act of requires equal pay for men and women performing: a equal work.

Like a policies and procedures manual, an employee handbook may be considered: a an employment contract. The planning and preparation stage of a performance management review is an important responsibility of: a the employee. In considering external HRMS development, a technical member of your team should evaluate available products to determine how likely it is that they will be able to: a meet your needs.

A type of compensation program that clusters many different jobs and salary ranges into a few broad categories with no job titles is called: a skill-based. The best-known piece of civil rights legislation and the most widely used is the: a Civil Rights Act of A pitfall that managers should avoid when conducting performance management meetings with employees is: a asking the employee about long-term goals. The filing of a grievance is permitted: a for any condition of employment an employee believes to be inequitable.

The first step in conducting an HRMS needs assessment is: a b c d finding out how much money the organization is willing to spend. A procedure for guarding against lost productivity and continuity when a key member of management needs to be replaced is called: a career development.

The key to whether personality should be a consideration when making a hiring decision is: a a matter of law. There are two types of sexual harassment: quid pro quo and: a b c d prima facie. The denial of equal employment opportunity through an established business practice, such as recruitment, is called: a systemic discrimination. The key component of a retention environment is: a b c d motivation.

The nondirective approach to counseling: a b c d allows managers to control the course of the conversation. Prepare to address various human resources challenges. Determine when to establish a human resources function.

Differentiate between the HR function in small and mid-sized versus large organizations. Distinguish between the respective responsibilities of HR specialists and nonHR practitioners. Several years ago, I was introduced to Jake, a financial executive with a major oil company. Can you give me an abridged answer? When done right, the end result should be growth and prosperity for both the individual employees and the organization as a whole.

The composition and staffing of an HR department, as well as its areas of responsibilities, will vary somewhat, but every business needs to have an HR function. During that time, managers did their own hiring and firing, while selected office employees handled the few other necessary employee-related tasks. By the early s, the duties and responsibilities of managers were expanding, leaving them little time to focus on the employment process, so most were only too glad to have others recruit, screen, and refer applicants for hire.

Soon, other unwanted tasks, such as record keeping and ensuring compliance with government regulations, were relegated to this new, yet unnamed group in some places it was unofficially referred to as the central office. Gradually, the scope of responsibility expanded to encompass directing recreational and social programs, organizing athletic teams, and arranging company picnics and dinners. The department, now called Personnel, lacked organizational authority or cohesion.

It was staffed initially by former teachers, who anticipated earning more money, and former supervisors, all of whom had no authority to make decisions. Personnel became known as a refuge for burned-out executives from every field, including sales, production, and accounting. The function had limited influence and provided little direction.

Gradually, however, the rise of big unions in the s brought with it a high demand for more sophisticated labor relations. Of necessity, personnel staff members became specialists in negotiating collective-bargaining agreements and handling matters requiring arbitration. World War II marked a turning point for the personnel function. Labor relations required increasing levels of expertise; psychological testing and training became important issues due to the shortage of skilled workers; compensation required monitoring as government wage and price controls were imposed; auditing of social legislation was needed; benefit plans increasingly became a subject of collective bargaining; and safety became a predominant need in plants.

All of these tasks fell into the laps of the people in personnel. As a result, the department slowly began to gain credibility and personnel staff began to receive some respect from their peers in other departments. The greatest period of growth for the personnel function occurred after World War II ended.

Due to the rapid industrial development and burst of technology, the need for college-educated and exempt-level employees increased exempt-level employees are, by definition, exempt from overtime compensation : specifically, engineers and technically trained workers were in demand.

When fully qualified people could not be found, personnel offered training and educational opportunities. With this increase in hiring came the need to expand wage and salary programs and benefits administration. Personnel also had to develop and monitor performance appraisal systems. In addition, workers, including those not unionized, were gaining a stronger collective voice, and management no longer had an unqualified upper hand.

A field that was originally marked by mediocrity and staffed by misfits, personnel now began to attract practitioners of a higher caliber. Up until now, managers had always made employee-related decisions as they went along. If a worker needed time off to tend to some personal need, managers would arbitrarily decide how much time off that worker could take. There was little concern for consistency within a department, and rarely, if ever, throughout the organization.

During the s, however, this began to change. In addition, it issued employee handbooks so that workers clearly understood what was expected of them and what they, in turn, could expect from their employers. This greatly altered the relationship between managers and personnel; whereas previously managers did as they pleased, they were now obliged to abide by uniform policies set by personnel.

The balance of power had begun to shift. The s and s brought major employment-related legislation. Businesses were forced to focus on multiple issues surrounding equal employment opportunity EEO and affirmative action, which had an impact on all aspects of employment from recruitment through termination. Not surprisingly, these often thorny issues were turned over to personnel. This was partially in recognition of the fact that personnel reflected a more traditional reactive function, primarily concerned only with employee utilization.

Human resources, on the other hand, suggested a concern for making the most of human resources potential and a commitment to management by anticipation. In addition, with the increased role of computers in the workplace, human resources information systems HRIS became an important area of HR focus, serving as an electronic filing system and providing information to nontechnical managers.

Add to the mix organizational development, career planning, employee grievances, and disciplinary proceedings, and it became clear that HR was emerging as an important function in any work setting.

HRIS grew in sophistication, and electronic recruitment took its place next to more conventional methods of recruitment. Midway into the first decade of the new millennium, HR continues to fine-tune its work in these areas while taking on still more tasks. Employee relations-related responsibilities continue to expand, e. Also, a tumultuous economy demands more focus on increased numbers of employees who are telecommuting, hiring more contingent workers, and combating illiteracy in the workplace.

They are developing a sound working knowledge of various business matters, such as how to impact revenue growth and productivity, and are learning to build organizational capabilities. While these two disciplines have very different areas of emphasis traditionally, a recent survey of CFOs conducted by CRO Research Services reports that HR and finance work better together than separately. As an example of how HR and finance can work together, consider the HR manager who wants to increase spending for improved staffing: He or she approaches finance for cost options; then, together, HR and finance analyze the findings and present a solid, joint plan reflecting the people and money side to senior management.

Organizations that have linked HR and financial operations include Delta Air Lines, where collaboration has resulted in a successful incentive plan for 16, employees targeted for downsizing, as well as a program that resulted in reduced benefits costs; SHI-APD Cryogenics, Inc.

Think About It Is human resources a business partner in your organization? Is it equal to that of other departments? If not, what can HR do to elevate its status? Additional desirable intangible competencies include a willingness to take risks, conviction, organizational skills, and resiliency. They went on to identify five key competencies HR managers need in order to stay current and make an impact on their organizations: 1.

Strategic contribution. Survey respondents determined that strategic con- 2. Personal credibility. Business knowledge. Why or why not? Organizations view diversity differently. Workplace Illiteracy The statistics are staggering: the Department of Labor reveals that some 2. The impact of illiteracy on business is far-reaching, including a loss of billions of dollars in profits each year; lowered productivity; declining international competitiveness; and reduced promotability.

For example, the Long Island Works Coalition, a not-for-profit membership organization in New York, strives to bridge gaps and enhance working relationships between employment and education.

Officers include elected volunteers from both the employment and educational communities. MRCC analyses clearly point to the need for an educated workforce and local public school test scores for reading and math reflect the need for improvement. Concluding that the future of businesses depends on a strong, well-educated workforce, the MRCC is committed to ongoing collaboration between the local business community and school districts, including higher education institutions, to achieve goals of mutual interest.

Telecommuting and Virtual Management According to the London-based Sulzer Infrastructure Services, by the year more than half of all American workers will spend more than two days a week working from home, from a remote location, or at several different offices Workforce, June Technology and telecommuting enables increasing numbers of employees on both a national and international level to form virtual teams to work on a variety of tasks without physically meeting.

Recruiters and employment specialists work with managers to identify specific positions and staff best suited for telecommuting, while HR practitioners whose main area of focus is employment law address the legal and tax ramifications connected with telecommuting work arrangements. Integrating a Contingent Workforce Contingent workers are noncompany employees who work in jobs structured to last a specified period of time.

Most contingent workers hold from one to two assignments within a six-month period, although assignments can last as long as five years. Contingent assignments are available in virtually every field and profession. According to the Bureau of Labor Statistics, employment of contingent workers is expected to increase by nearly 1. Cendant Mobility Services Corp. In addition, personal and sick time use decreased more than 70 percent among program participants.

Among its most popular offerings is an employee garden at company headquarters; the garden is in such great demand that Cendant must hold a lottery for available planting space. Duties typically performed by human resources practitioners are initially managed by staff from other departments in addition to their other tasks.

For example, managers may fill their own job openings, set starting salaries, and decide when to grant increases. Consequently, there is rarely any uniformity or consistency between the different units of an organization in the early stages of its development. Programs such as performance evaluation, tuition reimbursement, career planning, and other areas commonly associated with human resources usually do not exist at all. Processing the paperwork necessary to place new employees on payroll, assigning benefits, and maintaining necessary employee records are the most common tasks defined early on as human resources functions.

Since these duties are clerical, the employees chosen to perform them usually have a clerical background. HR Staff Ratios Establishing a human resources function because managers simply have too much to do may work—for a while. Even when it operates at an optimum level, however, a human resources function based on clerical responsibilities discarded by management is going to make a limited contribution to the organization. More important, as the organization continues to grow, the HR department will be unable to grow along with it.

A far more logical and proven approach to determining when it is appropriate to establish a human resources function is to think in terms of HR staff ratios.

This number represents the total HR staff size, including professional, technical, secretarial, and clerical employees. HR practitioners do not worry about slight deviations in HR staff ratios, as seen during the past decade see Exhibit 1—2. Workforce expansions and reductions-in-force have been met with commensurate adjustments in human resources staff levels. That is, HR department staff tend to expand and contract proportionally with the rest of the workforce, though probably with some lag time.

Human resources staff ratios are not identical across industry classifications. Typically, the numbers tend to be higher in banking and financial institutions, transportation, communication, utilities, and manufacturing sectors, as opposed to health care, education, government, and nonprofit arenas.

The size of an organization also affects the ratio between HR staff and total number of workers: the smaller the organization, the higher the ratio. In addition, the professional and technical staff ratios drop as organizational size increases. HR Budgets and Operating Costs Once an organization decides to establish a separate HR function, it needs to focus its attention on budgets and operating costs total operating expenses include labor, materials and equipment, overhead, sales costs, and administration.

In previous years, HR department costs ranged from a low of 0. They should consider their own environment, present needs, projected growth, and budget, and then proceed accordingly. Think About It How many employees are in your organization? If you currently have an HR function, how many HR staff members do you have? How do your ratios compare with the statistics described? If your numbers greatly exceed or fall short of the statistics, what changes could you realistically make?

As you can see from Exhibit 1—4, human resources professionals go by many different titles. Trying to select the most appropriate titles for human resources employees from these lists can make one dizzy. First, make certain that the title selected accurately reflects the duties to be performed. At the same time, allow room for expansion, so that, as the job grows, it does not become necessary to change the title. Second, make certain that the title is consistent with the titles of other positions of comparable skill and responsibility within the company.

This will help establish the credibility and importance of the HR function from the outset. You might want to narrow your list to the following most commonly used titles for first-time human resources positions: director of HR; HR administrator; HR manager; HR officer; and HR representative.

Generally speaking, titles bearing the words director, administrator, and officer carry the most weight, with manager following closely behind. Identify three of them in the space provided. Do they accurately reflect the duties performed? Are they consistent with the titles of other positions of comparable skill and responsibility within the company?

If not, what titles would be more suitable? But there are several major factors that differentiate small up to employees and mid-sized up to 1, employees from large organizations. These factors may impact the respective responsibilities of HR and non-HR practitioners.

HR generalists well versed in several areas of the field are usually sufficient for very small companies, and a handful of specialists in such broad human resources categories as employment, compensation, employee relations, and training are generally adequate for mid-sized companies.

However, large organizations require specialists in many more aspects of human resources, such as career planning, employee assistance programs, employee attitude surveys, and suggestion programs. Although organizations with fewer than 1, employees usually do not require specialists in these areas, growing companies would do well to consider incorporating some of these categories into their human resources functions.

For example, career development and human resources planning can help an organization build a solid foundation of employee skills and talents as well as create a highly motivating environment in which to work; employee assistance programs can often prevent minor employee concerns from blossoming into more serious problems; employee attitude surveys can help workers feel that their opinions are valuable as well as revealing correctable problems management may not have been aware of; and suggestion programs can result in creative, cost-effective ways for companies to expand and develop.

Number of Geographic Locations Most large organizations have more than one location. Some have one central human resources department responsible for the HR activities of all the different locations. A handful of specialists in areas such as employment, compensation, employee relations, and training Large Organizations Generally well-versed in several areas of HR; and.

The responsibilities of these satellite departments range from records maintenance to the full scope of HR responsibilities, such as recruiting, interviewing, compensation, benefits administration, and employee relations. Accordingly, even though everyone is working for the same parent company, some of these units operate quite independently. Indeed, simply monitoring the workflow from the several different human resources units of some large companies can be a full-time job.

Unionization Generally, the larger an organization is, the more likely it is to be unionized. In fact, many large companies must contend with several unions. The existence of unions within a company automatically means added responsibilities for those in the human resources arena. For example, labor relations experts skilled in the art of contract negotiations and preventing further unionization are essential.

Employee relations experts capable of handling union-related grievances and disciplinary matters are needed. Recruiters and interviewers must be aware of the union status of various openings and be prepared to describe accompanying union responsibilities to applicants, exercising care not to express any personal opinions about unions. And training and development specialists must be prepared to train nonunion personnel in the specific tasks ordinarily performed by union employees in the event of a walkout or strike.

Small and mid-sized organizations are less likely to be similarly affected. Variety of Jobs Not surprisingly, large organizations have the greatest number and variety of jobs. An increase in both generic and specialized positions means that more job descriptions are needed. It also means that grades and salary ranges must be established for more jobs.

Of course, there are also more openings to fill. In addition, more employees must be trained, supervised, and dealt with in all HR-related matters. Hence, there is an increase of responsibilities in the areas of compensation, employment, training, and employee relations.

Hierarchy of Reporting Relationships The larger the organization, the more layers of reporting relationships there are between the bottom and top positions. Numerous signatures are often required before a seemingly simple matter is resolved. Employees near the lower end of the hierarchy in human resources often hesitate to express their views to those higher up.

Rather, an executive in charge of several different functions will rely on the expertise of lower-level human resources experts reporting to him or her and make decisions accordingly. Instead of being trained, counseled, or terminated, employees who cannot perform adequately at their jobs are placed in HR.

Consequently the management appointed Kat as the CEO with a request to gear up the company under his able leadership in Kat took the challenge and recruited a few smart line managers within three months of his joining.

Then team building was developed, professionalism was ensured and the company was digitalized within a year. It got super connectivity locally and globally that enhanced tremendous productivity of the company. It started generating profit from In , it became the market leader and generated net income of USD 20 million in At this stage, the Chairman of the Company got information from a top level executive secretly that Kat submitted fake vouchers of USD 11, related to his foreign trips during The fact was also supported by an Inquiry Committee that recommended terminating CEO from the position because of dishonesty.

The Chairman referred the agendum to the next Board meeting for appropriate decision. What should be the role of Head of HR as an invited Board member in such a case?