1. HUMAN RESOURCE MANAGEMENT
Chapter 10

2. WHAT ARE THE PURPOSE AND LEGAL
CONTEXT OF HUMAN RESOURCE
MANAGEMENT?
 Human resource management attracts, develops
and maintains a talented workforce

3.  Strategic human resource management aligns human
capital with organizational strategies
 Human capital – the economic value of people with job-
relevant abilities, knowledge, ideas, energies and
commitments.
 Government legislation protects against employment
discrimination
 Job discrimination – someone is denied a job or job
assignment for non-job relevant reasons

4.  Equal Employment Opportunity (EEO) – the right to
employment advancement without regard to race, sex,
religion, color or national origin.
 Affirmative action – an effort to give preference in
employment to women and minority group members
 Bona fide occupational qualifications – employment
criteria justified by capacity to perform a job

6.  Laws can’t guarantee that employee discrimination won’t
happen
 Employee privacy – right to privacy on and off the job
 Pay discrimination – occurs when women and men are
paid differently for doing equal work
 Pregnancy discrimination – penalizes a woman on the
job or as a job applicant for being pregnant
 Age discrimination – penalizes an employee in a job or
as a job applicant for being over the age of 40

7. WHAT ARE THE ESSENTIAL HUMAN RESOURCE
MANAGEMENT PRACTICES?
 Person-job fit – match of individual skills, interests
an personal characteristics with the job
 Person-organization fit – is the match of individual
values, interests and behavior with the
organizational culture

8.  Recruitment attracts qualified job applicants
 Recruitment – a set of activities designed to attracts
a qualified pool of applicants
 Realistic job previews – provide job candidates with
all pertinent information about a job and
organization

9.  Selection makes decisions to hire qualified job applicants
 Selection – choosing whom to hire from a pool of
qualified job applicants
 Reliability – a selection device gives consistent results
over repeated measures
 Validity – the scores on a selection device have
demonstrated links on job performance
 Assessment center – examines how job candidates
handle simulated work situations
 Work sampling – evaluates applicants as they perform
actual work talents

11.  Socialization and organization integrate new
employees into the organization
 Socialization – systematically influences the
expectations, behavior and attitudes of new
employees
 Orientation – familiarizes new employees with jobs,
co-workers and organizational policies and services

12.  Training continually develops employee skills and
capabilities
 Coaching – occurs as an experienced person offers
performance advice to a less experienced person
 Mentoring – assigns early-career employees as protégés
to more senior ones
 Reverse Mentoring – younger and newly-hired
employees mentor senior executives often on latest
developments with digital technologies

13.  Performance management appraises and rewards
accomplishments
 Performance appraisal – process of formally evaluating
performance and providing feedback to a job holder
 Graphic rating scale – uses a checklist of traits or
characteristics to evaluate performance
 Behavior-anchored rating scale (BARS) – uses specific
descriptions of actual behaviors to rate various levels of
performance

15.  Critical-incident technique – keeps a log of someone’s
effective and ineffective job behaviors
 360⁰ feedback – includes superiors, subordinates, peers
and even customers in the appraisal process
 Multiperson comparison – compares one person’s
performance with that of others

16.  Retention and career development provide career
paths
 Career development – process of managing how a
person grows and progresses in a career
 Career planning – process of matching career goals
and individual capabilities with opportunities for
their fulfillment

17. WHAT ARE THE CURRENT ISSUES IN HUMAN
RESOURCE MANAGEMENT?
 Today’s lifestyle increases demands for flexibly and
work-life balance
 Work-life balance - involves balancing career
demands with personal and family needs
 Organizations are using more independent
contractors and party-time workers
 Independent contractors – hired on temporary
contracts and are not part of the organization’s
permanent workforce

18.  Contingency workers – work as needed and part-time,
often on a longer-time basis
 Compensation plans influence employee recruitment and
retention
 Merit pay – awards pay increases in proportion to
performance contributions
 Bonus pay – plans provide one-time payments based on
performance accomplishments

19.  Profit-sharing – distributes to employees a proportion of
net profits earned by the organization
 Gain sharing – allows employees to share in cost savings
or productivity gains realized by their efforts
 Stock options – give the right to purchase shares at a
fixed price in the future

20.  Fringe Benefits are an important part of employee
compensation packages
 Fringe benefits – non-monetary forms of compensation such
as health insurance and retirement plans
 Family-friendly benefits – help employees achieve better work-
life balance
 Flexible benefits – programs allow choice to personalize
benefits within a set dollar allowance
 Employee assistance programs – helps employees cope with
personal stresses and problems

21.  Labor relations and collective bargaining are closely governed
by law
 Labor union – an organization that deals with employers on
the workers’ collective behalf
 Labor contract – formal agreement between a union and an
employer about the terms of work for union members
 Collective bargaining – the process of negotiating,
administering and interpreting a labor contract
 Two-tie wager systems – pay new hires less than the workers
already doing the same jobs with more seniority