Don Hellriegel

Susan E. Jackson
John W. Slocum, Jr.

MANAGING: A COMPETENCY
BASED APPROACH
11th Edition

Chapter 13: Managing Human Resources

Prepared by
Argie Butler
Texas A&M University
 1. Explain the strategic importance of managing
human resources effectively
2. Describe several important laws and government
regulations that affect how organizations manage
their human resources
3. Explain the objective of human resources
planning and describe how organizations respond
to the unpredictability of future business needs

Chapter 13: PowerPoint 13.1 (continued)

 1. Describe the hiring process
2. Describe several types of training and development
programs
3. Describe several principles for improving the
accuracy of managers’ appraisals of employee
performance
4. Describe the basic elements of a monetary
compensation package

Chapter 13: PowerPoint 13.2

 Strategic Importance

 Human resources management (HRM): the

philosophies, policies, and practices that an
organization uses to affect the behaviors of
people who work for the organization

 Strategic use of HRM activities can improve

organizational effectiveness

Chapter 13: PowerPoint 13.3

 “I serve the board of directors, executive management, general
office employees, retirees, production and salespeople across
the country, every type of function—and they all view HR
slightly differently based on their backgrounds, their needs and
their histories. That has told me there isn’t a one-size-fits-all
solution. I’ve got to listen and ask questions, so that we can
ultimately do something that’s fair for everybody. HR can be
very challenging because what we do can affect people at the
most personal level and we can’t lose sight of that.”

Janet Brady, Vice President of Human Resources, The

Clorox Company
Chapter 13: PowerPoint 13.4
 Line Managers HR Professionals Employees

 Include HR  Stay informed of  Accept

professionals in the latest responsibility for
the formulation technical managing their
and implementation principles for own behavior
of business strategy managing human and careers in
and discussions of resources organizations
its HR implications

Chapter 13: PowerPoint 13.5 (Adapted from Table 13.1)

 Line Managers HR Professionals Employees

 Help disseminate  Develop a  Participate in

information about recruiting plan to recruiting by
open positions to all guarantee a making referrals
potentially qualified diverse pool of and answering
internal applicants applicants questions about
 Understand and the organization
abide by all legal
regulations

Chapter 13: PowerPoint 13.6 (Adapted from Table 13.1)

 (cont’d)

Line Managers HR Professionals Employees

 Interview applicants  Provide training to  May participate in

May administer line managers and selection process
some selection tests employees involved by interviewing
 May make final in recruitment and job applicants
selection decision selection
 Develop and
administer a
selection procedure

Chapter 13: PowerPoint 13.7 (Adapted from Table 13.1)

 Line Managers HR Professionals Employees
 Work with employees  Develop and  Identify own training
to identify their administer training and development
training and and development needs
development needs programs  Actively seek out and
 Provide on-the-job  Inform employees of participate in
socialization and opportunities for activities that help
training training and build own
development competencies
 Assist in socialization
and training of other
employees
Chapter 13: PowerPoint 13.8 (Adapted from Table 13.1)
 Line Managers HR Professionals Employees

 Help develop  Develop  Candidly appraise

performance performance the performance of
measures appraisal tools and others when asked
 Conduct performance train managers to to participate in
appraisals use them 360-degree
 Train managers in appraisals
how to conduct
performance review
sessions

Chapter 13: PowerPoint 13.9 (Adapted from Table 13.1)

 (cont’d)

Line Managers HR Professionals Employees

 Use performance  Monitor managers’  Seek and use

information to make decisions to be sure honest feedback to
decisions about pay they are improve own
raises, promotions, performance-based performance
firing etc
 Provide feedback to
employees to help
them improve future
performance

Chapter 13: PowerPoint 13.10 (Adapted from Table 13.1)

 Line Managers
 Assist in developing
incentive and bonus
plans
Chapter 13: PowerPoint 13.11 (Adapted from Table 13.1)
HR Professionals Employees
 Establish appropriate  Develop an accurate
rates of base pay in understanding of all
compliance with legal elements of the
requirements organization’s pay
 Work with managers practices
to design and develop  Be alert to
incentives and bonus dysfunctional and
plans possible unethical
 Work with accounting attempts to “game”
and financial staff to performance-based
monitor compensation pay practices
costs
 Competitors must not be able to easily copy the
company’s approach to HRM

Employees must be “rare” or unique

in some way

Employees must
be a source of
added value

Chapter 13: PowerPoint 13.12

  Recruiting more managers from outside the
company
 Hiring more employees from the countries where
GE sells its products and services
 Setting goals for managers to develop creative new
business ideas and tying compensation to meeting
these goals
 Rewarding managers for revenue growth and
customer satisfaction
 Urging people to stay in their jobs longer so they can
develop deeper knowledge of their industry
Chapter 13: PowerPoint 13.13
 Social Consequences of HRM: Snapshot
“Our aim is to treat our job
candidates as well as we treat our customers,
to do something memorable for them. You can’t
treat people shabbily, especially in a world where
there are far more open jobs than there is available
talent to fill them. We strive to put the humanity
back into the recruiting experience.”

Jason S. Warner, Director of North American Recruiting,

Starbucks Corporation
Chapter 13: PowerPoint 13.14
 Legal and Regulatory Environment:
Equal Employment Opportunity [EEO]

 Job applicants and employees should be:

1. Judged on characteristics that are related to

the work that they are being hired to do

2. Judged on their job performance after being

hired
3. Protected from discrimination based on their
personal background characteristics, such as
gender, race, ethnicity, religion, and so forth
Chapter 13: PowerPoint 13.15
  Prohibits discrimination by employers, employment agencies,
and unions with 15 or more employees on the basis of:
 Race
Color
Religion
Sex
National origin
Pregnancy (Pregnancy Discrimination Act, 1978)
 Identifies pregnancy as a disability and entitles the woman to
the same benefits as any other disability
 1991 Amendment clarifies how cases brought under the act
should proceed
Chapter 13: PowerPoint 13.16
 Makes rules to Conducts investigations
implement and and may file lawsuits in
interpret EEO laws federal courts

Equal Employment
Opportunity
Imposes Commission (EEOC) Makes
sanctions judgments about
guilt, which may be
appealed to federal
courts

Chapter 13: PowerPoint 13.17

 EEO in the Global Arena: Who’s
Protected Where by Legislation?

Country Race or Color Sex Religion Age

United States    

India    No

Canada    

China    No

United Kingdom    No

Mexico    

Chapter 13: PowerPoint 13.18 (Adapted from Table 13.3) (continued)

 EEO in the Global Arena: Who’s
Protected Where by Legislation?

Country Disability Sexual Political National Marital or

Orientation Ideology Origin Family
Status

United States  No No  No

India  No No No No

Canada   No  

China No No No  No

United Kingdom     

Mexico     

Chapter 13: PowerPoint 13.19 (Adapted from Table 13.3)

  Fair Labor Standards Act (1938)
 Establishes a minimum wage, which may be raised
by individual states
 Controls hours through premium pay for overtime
 Controls working hours for children
 Applies to most nonmanagerial employees in private
industry

 Equal Pay Act (1963)

 Requires men and women to be paid equally when
they are doing equal work (in terms of skill, effort,
responsibility, and working conditions) in the
same organization
Chapter 13: PowerPoint 13.20
  Some states extend the Equal
Pay Act by requiring employers
to assess the worth of all jobs and
ensure that jobs of comparable
worth are paid similarly

Chapter 13: PowerPoint 13.21

  Involves forecasting the organization’s human resources
needs and developing the steps to be taken to meet them
 Contingent workers: employees who are hired by companies
for specific tasks or short periods of time with the
understanding that their employment may be ended at
any time
 Layoffs: a strategy of last resort. Potential negative
effects of layoffs:
More gossip
Lower morale
More resignations
Less employee loyalty
More charges of discrimination
More workplace violence
Chapter 13: PowerPoint 13.22
 Human Resource Planning (cont’d)
 Competency inventory: a detailed file maintained
for each employee that lists level of education,
training, experience, length of service, current job
title and salary, and performance history

 Purpose of competency models

 To keep track of the talent in the organization

so that it can be nurtured and used effectively

Chapter 13: PowerPoint 13.23

 Hiring Process
 Activities related to the recruitment of applicants
to fill open positions in an organization and the
selection of the best applicants for a position
 Vacancies stimulate the hiring process through:*
Organization
Growth
Internal
Movement
 Promotion Vacancy
 Demotion Recruitment Selection
Created
 Transfer
Exit from
Organization
(Turnover)
Chapter 13: PowerPoint 13.24 (*Adapted from Figure 13.3)
 Organization Internal job positions,
web site paper-based and
Intranet

Common
recruitment
Announcements methods Employee
in newspapers, referrals
magazines,
employment
websites, etc.

Chapter 13: PowerPoint 13.25

  A process that involves deciding which of these recruits
should actually be hired and for which positions

Résumés Reference checks

Common
information
Tests sources Interviews

Chapter 13: PowerPoint 13.26

 “If you’re being considered as a pilot, one of your
interviews is with a pilot. The interviewer keeps notes
and the interview is scored. The pilot, along with the
recruiter and someone from the line leadership, all
put their scores together and, as a group, decide if a
person is going to be hired or take the next step. Our
posture in this is to help [employees] get people [they]
would want to work with.”

Vincent Stabile, Vice President of People, Jet Blue Airways

Chapter 13: PowerPoint 13.27
  Competency Being Assessed: Teamwork
1. Sketch out two or three key strengths you have in
working as part of a work team. Can you illustrate
the first strength with a recent example? [repeat this
question and the following probes for each strength]:
Probes:
 When did this example take place?
 What possible negative outcomes were avoided
by the way you handled the situation?
 How often do situations like this happen?
 What happened in the next time it came up?
(continued)
Chapter 13: PowerPoint 13.28 (Adapted from Table 13.4)
 (cont’d)

 Competency Being Assessed: Teamwork

2. Tell me about a time when you used your teamwork
competency to solve a problem with a customer
Probes:
 Where did this take place?
 What did the customer say?
 What did you tell your teammates?
 Did the team have any problems dealing with
the situations? Explain
 How did the customer respond?

Chapter 13: PowerPoint 13.29 (Adapted from Table 13.4)

  Training: activities that help employees overcome
limitations and improve performance in their current jobs

Orientation Basic skills

training training

Common
training
E-learning approaches Team
training

Chapter 13: PowerPoint 13.30

  Development: practices that help employees gain the competencies
they will need in the future in order to advance in their careers

Career development

Core
development
Coaching approaches Mentoring

Chapter 13: PowerPoint 13.31

  A formal, structured system for evaluating
an employee’s job performance

 Common uses of performance appraisal

 To make decisions about who will be promoted,
demoted, transferred, or dismissed
 To make decisions about pay raises
 To improve future performance of employees

Chapter 13: PowerPoint 13.32

  Managers and their subordinates meet to
exchange performance information and
discuss how to improve future performance

 Performance information increasingly

includes:
 Employee’s own assessment of performance
 Assessment by teammates
 Information from customers

Chapter 13: PowerPoint 13.33

  Difficult for managers to accurately assess
performance of subordinates
 Two approaches to improve accuracy:
 Use appropriate rating scales that provide specific
descriptions of what each level of performance means
 Use multiple raters
One example. 360-degree appraisal—measures
performance by obtaining assessments of the employee
from a variety of sources: supervisors, subordinates,
colleagues inside the company, people outside the
organization with whom the employee does business,
and even a self-appraisal by the employee
Chapter 13: PowerPoint 13.34
  Some teams may have full responsibility
for constructing and conducting their own
performance appraisals of each other
 Team self-appraisal of each member is
difficult
 Manager to whom the team reports is often
responsible for collecting performance
information from the team and discussing
it with each team member privately
Chapter 13: PowerPoint 13.35
  Nonmonetary compensation: the many forms
of social and psychological rewards, such as
recognition and respect from others and
opportunities for self-development

 Monetary compensation: the direct payments

such as salary, wages, and bonuses, as well as
benefits such as covering the costs of insurance bonus
plans

Chapter 13: PowerPoint 13.36

  What people believe they deserve to be paid in
relation to what others deserve to be paid
 However, compensation must be externally
competitive to attract qualified applicants
 Components of pay system employees consider
in evaluating fairness
 Base pay—perceived fairness increases if at or
above market average
 Incentive pay—such as commissions, bonuses,
and profit sharing
 Employee benefits—some required by law and
others are voluntary
Chapter 13: PowerPoint 13.37