3DE JAAR, SEMESTER 1
PRINCIPLES OF HUMAN RESOURCES
MANAGEMENT
, INHOUDSOPGAVE
CHAPTER 1: THE NEW HUMAN RESOURCES MANAGEMENT PROCESS ............................................................. 4
WHY STUDY HUMAN RESOURCES MANAGEMENT (HRM)? ......................................................................................... 4
WHY DO WE HATE HR? ...................................................................................................................................... 5
HR ROLES ....................................................................................................................................................... 6
BRIEF HISTORY OF HRM (THE DEVELOPMENT OF HRM) STUDY THIS TOPIC VERY WELL .................................................... 8
THE CHANGING WORLD OF HRM ........................................................................................................................ 16
UNDERSTANDING HR’S CRITICAL FACTORS ............................................................................................................. 17
HRM SKILLS .................................................................................................................................................. 19
LINE MANAGER ’S HRM RESPONSIBILITIES .............................................................................................................. 20
HR MANAGER’S RESPONSIBILITIES: DISCIPLINES WITHIN HRM .................................................................................... 21
RESOURCES FOR HRM CAREERS .......................................................................................................................... 22
PRACTIONER’S MODEL FOR HRM ........................................................................................................................ 23
TRENDS AND ISSUES IN HRM ............................................................................................................................. 24
FUTURE OF HRM ............................................................................................................................................ 24
CHAPTER 2: STRATEGY – DRIVEN HUMAN RESOURCE MANAGEMENT ........................................................... 27
1. RESOURCE – BASED VIEW ON HUMAN RESOURCES (= GRAND THEORY) ................................................................. 27
2. STRATEGY AND STRATEGIC PLANNING: THE ORGANIZATION AND THE ENVIRONMENT ................................................. 31
3. THE CONCEPT ALIGNMENT/ FIT ................................................................................................................... 33
4. STRATEGIC VISION AND MISSION ................................................................................................................. 33
5. STRATEGY TYPES AND ANALYSIS .................................................................................................................. 35
6. STRUCTURE ........................................................................................................................................... 40
7. ORGANIZATIONAL CULTURE ....................................................................................................................... 44
8. AN INTRODUCTION TO DATA ANALYTICS AND HR TECHNOLOGY ........................................................................... 47
9. HUMAN RESOURCE MANAGEMENT SYSTEMS (HRMS) ...................................................................................... 48
10. MEASUREMENT TOOLS FOR STRATEGIC HRM............................................................................................. 49
11. TRENDS AND ISSUES IN HRM ................................................................................................................. 52
12. HR TRIAD (= CHARACTERISTICS OF SHRM) ............................................................................................... 52
CHAPTER 4: WORKFORCE PLANNING: JOB ANALYSIS, DESIGN AND EMPLOYMENT FORECASTING ................. 53
1. WORKFORCE PLANNING: WORKFLOW ANALYSIS .............................................................................................. 53
2. JOB ANALYSIS ......................................................................................................................................... 54
3. TRADITIONAL APPROACHES OF JOB-ANALYSIS ................................................................................................. 58
3. JOB DESIGN/ REDESIGN ............................................................................................................................. 63
4. DESIGNING MOTIVATIONAL JOBS ................................................................................................................. 65
5. HR FORECASTING .................................................................................................................................... 67
6. RECONCILING INTERNAL LABOR SUPPLY AND DEMAND ...................................................................................... 68
7. 3 CHALLENGES........................................................................................................................................ 70
8. TRENDS AND ISSUES IN HRM ..................................................................................................................... 74
CHAPTER 5: RECRUITING JOB CANDIDATES .................................................................................................... 75
1. INTRODUCTION....................................................................................................................................... 75
2. THE RECRUITING PROCESS ......................................................................................................................... 77
3. ORGANIZATIONAL RECRUITING CONSIDERATIONS ............................................................................................. 82
4. INTERNAL OR EXTERNAL RECRUITING ? .......................................................................................................... 84
5. RECRUITMENT TODAY .............................................................................................................................. 88
6. CHALLENGES AND CONSTRAINTS IN RECRUITING .............................................................................................. 92
7. EVALUATION OF RECRUITING PROGRAMS....................................................................................................... 93
8. ALTERNATIVES TO RECRUITMENT ................................................................................................................. 94
9. TRENDS AND ISSUES IN HRM ..................................................................................................................... 94
CHAPTER 6: SELECTING NEW EMPLOYEES ...................................................................................................... 96
1
, 1. INTRODUCTION....................................................................................................................................... 96
2. THE SELECTION PROCESS ........................................................................................................................... 96
3. LOOKING FOR “FIT” ............................................................................................................................... 104
4. UNIFORM GUIDELINES ON EMPLOYEE SELECTION PROCEDURES .......................................................................... 105
5. APPLICATIONS AND PRELIMINARY SCREENING ............................................................................................... 108
6. TESTING AND LEGAL ISSUES ...................................................................................................................... 109
7. SELECTION INTERVIEWS .......................................................................................................................... 120
8. BACKGROUND CHECKS ............................................................................................................................ 126
9. HOW TO MAKE A DECISION? .................................................................................................................... 128
10. SELECTING THE CANDIDATE AND OFFERING THE JOB ................................................................................... 129
11. TRENDS AND ISSUES IN HRM ............................................................................................................... 130
CHAPTER 7: LEARNING AND DEVELOPMENT ................................................................................................ 132
1. INTRODUCTION..................................................................................................................................... 132
2. THE NEED FOR TRAINING AND DEVELOPMENT ............................................................................................... 132
3. THE TRAINING PROCESS AND NEEDS ASSESSMENT .......................................................................................... 135
4. LEARNING AND SHAPING BEHAVIOR ........................................................................................................... 138
5. DESIGN AND DELIVERY OF TRAINING ........................................................................................................... 141
6. ASSESSING TRAINING ............................................................................................................................. 151
7. TALENT MANAGEMENT AND DEVELOPMENT ................................................................................................. 154
8. INFORMAL LEARNING ............................................................................................................................. 158
9. TRENDS AND ISSUES IN HRM ................................................................................................................... 159
CHAPTER 8: PERFORMANCE MANAGEMENT AND APPRAISAL ...................................................................... 161
1. INTRODUCTION ......................................................................................................................................... 161
2. PERFORMANCE MANAGEMENT SYSTEMS .......................................................................................................... 162
3. WHY DO WE CONDUCT PERFORMANCE APPRAISALS? ...................................................................................... 165
4. WHAT DO WE ASSESS? BUILDING BLOCKS OF PERFORMANCE MANAGEMENT (THEORETICAL APPROACH) ...................... 166
5. PERFORMANCE APPRAISAL PROBLEMS/CAN WE TRAIN PEOPLE TO BECOME BETTER RATERS? .................................... 179
6. DEBRIEFING THE APPRAISAL ..................................................................................................................... 182
7. REALITY OF PERFORMANCE MANAGEMENT (OPPOSITE OF THEORETICAL APPROACH) ............................................... 185
8. TRENDS AND ISSUES IN HRM ................................................................................................................... 187
CHAPTER 9: COMPENSATION AND BENEFITS................................................................................................ 188
1. INTRODUCTION ......................................................................................................................................... 188
CHAPTER 11: COMPENSATION MANAGEMENT (AND PAY STRUCTURE) ....................................................... 190
1. COMPENSATION MANAGEMENT .................................................................................................................... 190
2. COMPENSATION STRATEGY ........................................................................................................................... 192
3. LEGAL AND FAIRNESS ISSUES IN CONVERSATION............................................................................................. 195
4. PAY EQUITY, COMPARABLE WORTH AND OTHER LEGAL ISSUES ............................................................................... 197
5. JOB EVALUATION................................................................................................................................... 198
6. DEVELOPING A PAY SYSTEM ..................................................................................................................... 200
7. PAY STRUCTURE .................................................................................................................................... 203
8. TRENDS AND ISSUES IN HRM ................................................................................................................... 207
CHAPTER 12: INCENTIVE PAY (= PAY FOR PERFORMANCE SYSTEMS) ........................................................... 208
1. INCENTIVE COMPENSATION .......................................................................................................................... 208
2. INDIVIDUAL OR GROUP BASED INCENTIVES ........................................................................................................ 209
3. OPTIONS FOR INDIVIDUAL INCENTIVES ............................................................................................................. 211
4. OPTIONS FOR GROUP INCENTIVES................................................................................................................... 216
5. FAILURES AND CHALLENGES IN CREATING INCENTIVE PAY SYSTEMS ..................................................................... 219
6. GUIDELINES FOR CREATING MOTIVATIONAL INCENTIVE SYSTEMS ............................................................................. 220
7. EXECUTIVE COMPENSATION .......................................................................................................................... 221
2
, 8. TRENDS AND ISSUES IN HRM ........................................................................................................................ 223
9. LESSONS LEARNED ................................................................................................................................. 224
CHAPTER 13: EMPLOYEE BENEFITS (FRINGE COMPENSATION) ..................................................................... 226
1. THE STRATEGIC VALUE OF BENEFITS PROGRAMS ................................................................................................. 226
2. COST AND EXPENSES ................................................................................................................................... 226
3. OLD AGE, SURVIVORS AND DISABILITY INSURANCE (OASDI).................................................................................. 227
4. OTHER STATUTORY BENEFITS ........................................................................................................................ 228
5. VOLUNTARY BENEFITS ................................................................................................................................. 231
6. ADMINISTRATION AND COMMUNICATION OF BENEFITS ........................................................................................ 234
7. TRENDS AND ISSUES IN HRM ................................................................................................................... 236
3
PRINCIPLES OF HUMAN RESOURCES
MANAGEMENT
, INHOUDSOPGAVE
CHAPTER 1: THE NEW HUMAN RESOURCES MANAGEMENT PROCESS ............................................................. 4
WHY STUDY HUMAN RESOURCES MANAGEMENT (HRM)? ......................................................................................... 4
WHY DO WE HATE HR? ...................................................................................................................................... 5
HR ROLES ....................................................................................................................................................... 6
BRIEF HISTORY OF HRM (THE DEVELOPMENT OF HRM) STUDY THIS TOPIC VERY WELL .................................................... 8
THE CHANGING WORLD OF HRM ........................................................................................................................ 16
UNDERSTANDING HR’S CRITICAL FACTORS ............................................................................................................. 17
HRM SKILLS .................................................................................................................................................. 19
LINE MANAGER ’S HRM RESPONSIBILITIES .............................................................................................................. 20
HR MANAGER’S RESPONSIBILITIES: DISCIPLINES WITHIN HRM .................................................................................... 21
RESOURCES FOR HRM CAREERS .......................................................................................................................... 22
PRACTIONER’S MODEL FOR HRM ........................................................................................................................ 23
TRENDS AND ISSUES IN HRM ............................................................................................................................. 24
FUTURE OF HRM ............................................................................................................................................ 24
CHAPTER 2: STRATEGY – DRIVEN HUMAN RESOURCE MANAGEMENT ........................................................... 27
1. RESOURCE – BASED VIEW ON HUMAN RESOURCES (= GRAND THEORY) ................................................................. 27
2. STRATEGY AND STRATEGIC PLANNING: THE ORGANIZATION AND THE ENVIRONMENT ................................................. 31
3. THE CONCEPT ALIGNMENT/ FIT ................................................................................................................... 33
4. STRATEGIC VISION AND MISSION ................................................................................................................. 33
5. STRATEGY TYPES AND ANALYSIS .................................................................................................................. 35
6. STRUCTURE ........................................................................................................................................... 40
7. ORGANIZATIONAL CULTURE ....................................................................................................................... 44
8. AN INTRODUCTION TO DATA ANALYTICS AND HR TECHNOLOGY ........................................................................... 47
9. HUMAN RESOURCE MANAGEMENT SYSTEMS (HRMS) ...................................................................................... 48
10. MEASUREMENT TOOLS FOR STRATEGIC HRM............................................................................................. 49
11. TRENDS AND ISSUES IN HRM ................................................................................................................. 52
12. HR TRIAD (= CHARACTERISTICS OF SHRM) ............................................................................................... 52
CHAPTER 4: WORKFORCE PLANNING: JOB ANALYSIS, DESIGN AND EMPLOYMENT FORECASTING ................. 53
1. WORKFORCE PLANNING: WORKFLOW ANALYSIS .............................................................................................. 53
2. JOB ANALYSIS ......................................................................................................................................... 54
3. TRADITIONAL APPROACHES OF JOB-ANALYSIS ................................................................................................. 58
3. JOB DESIGN/ REDESIGN ............................................................................................................................. 63
4. DESIGNING MOTIVATIONAL JOBS ................................................................................................................. 65
5. HR FORECASTING .................................................................................................................................... 67
6. RECONCILING INTERNAL LABOR SUPPLY AND DEMAND ...................................................................................... 68
7. 3 CHALLENGES........................................................................................................................................ 70
8. TRENDS AND ISSUES IN HRM ..................................................................................................................... 74
CHAPTER 5: RECRUITING JOB CANDIDATES .................................................................................................... 75
1. INTRODUCTION....................................................................................................................................... 75
2. THE RECRUITING PROCESS ......................................................................................................................... 77
3. ORGANIZATIONAL RECRUITING CONSIDERATIONS ............................................................................................. 82
4. INTERNAL OR EXTERNAL RECRUITING ? .......................................................................................................... 84
5. RECRUITMENT TODAY .............................................................................................................................. 88
6. CHALLENGES AND CONSTRAINTS IN RECRUITING .............................................................................................. 92
7. EVALUATION OF RECRUITING PROGRAMS....................................................................................................... 93
8. ALTERNATIVES TO RECRUITMENT ................................................................................................................. 94
9. TRENDS AND ISSUES IN HRM ..................................................................................................................... 94
CHAPTER 6: SELECTING NEW EMPLOYEES ...................................................................................................... 96
1
, 1. INTRODUCTION....................................................................................................................................... 96
2. THE SELECTION PROCESS ........................................................................................................................... 96
3. LOOKING FOR “FIT” ............................................................................................................................... 104
4. UNIFORM GUIDELINES ON EMPLOYEE SELECTION PROCEDURES .......................................................................... 105
5. APPLICATIONS AND PRELIMINARY SCREENING ............................................................................................... 108
6. TESTING AND LEGAL ISSUES ...................................................................................................................... 109
7. SELECTION INTERVIEWS .......................................................................................................................... 120
8. BACKGROUND CHECKS ............................................................................................................................ 126
9. HOW TO MAKE A DECISION? .................................................................................................................... 128
10. SELECTING THE CANDIDATE AND OFFERING THE JOB ................................................................................... 129
11. TRENDS AND ISSUES IN HRM ............................................................................................................... 130
CHAPTER 7: LEARNING AND DEVELOPMENT ................................................................................................ 132
1. INTRODUCTION..................................................................................................................................... 132
2. THE NEED FOR TRAINING AND DEVELOPMENT ............................................................................................... 132
3. THE TRAINING PROCESS AND NEEDS ASSESSMENT .......................................................................................... 135
4. LEARNING AND SHAPING BEHAVIOR ........................................................................................................... 138
5. DESIGN AND DELIVERY OF TRAINING ........................................................................................................... 141
6. ASSESSING TRAINING ............................................................................................................................. 151
7. TALENT MANAGEMENT AND DEVELOPMENT ................................................................................................. 154
8. INFORMAL LEARNING ............................................................................................................................. 158
9. TRENDS AND ISSUES IN HRM ................................................................................................................... 159
CHAPTER 8: PERFORMANCE MANAGEMENT AND APPRAISAL ...................................................................... 161
1. INTRODUCTION ......................................................................................................................................... 161
2. PERFORMANCE MANAGEMENT SYSTEMS .......................................................................................................... 162
3. WHY DO WE CONDUCT PERFORMANCE APPRAISALS? ...................................................................................... 165
4. WHAT DO WE ASSESS? BUILDING BLOCKS OF PERFORMANCE MANAGEMENT (THEORETICAL APPROACH) ...................... 166
5. PERFORMANCE APPRAISAL PROBLEMS/CAN WE TRAIN PEOPLE TO BECOME BETTER RATERS? .................................... 179
6. DEBRIEFING THE APPRAISAL ..................................................................................................................... 182
7. REALITY OF PERFORMANCE MANAGEMENT (OPPOSITE OF THEORETICAL APPROACH) ............................................... 185
8. TRENDS AND ISSUES IN HRM ................................................................................................................... 187
CHAPTER 9: COMPENSATION AND BENEFITS................................................................................................ 188
1. INTRODUCTION ......................................................................................................................................... 188
CHAPTER 11: COMPENSATION MANAGEMENT (AND PAY STRUCTURE) ....................................................... 190
1. COMPENSATION MANAGEMENT .................................................................................................................... 190
2. COMPENSATION STRATEGY ........................................................................................................................... 192
3. LEGAL AND FAIRNESS ISSUES IN CONVERSATION............................................................................................. 195
4. PAY EQUITY, COMPARABLE WORTH AND OTHER LEGAL ISSUES ............................................................................... 197
5. JOB EVALUATION................................................................................................................................... 198
6. DEVELOPING A PAY SYSTEM ..................................................................................................................... 200
7. PAY STRUCTURE .................................................................................................................................... 203
8. TRENDS AND ISSUES IN HRM ................................................................................................................... 207
CHAPTER 12: INCENTIVE PAY (= PAY FOR PERFORMANCE SYSTEMS) ........................................................... 208
1. INCENTIVE COMPENSATION .......................................................................................................................... 208
2. INDIVIDUAL OR GROUP BASED INCENTIVES ........................................................................................................ 209
3. OPTIONS FOR INDIVIDUAL INCENTIVES ............................................................................................................. 211
4. OPTIONS FOR GROUP INCENTIVES................................................................................................................... 216
5. FAILURES AND CHALLENGES IN CREATING INCENTIVE PAY SYSTEMS ..................................................................... 219
6. GUIDELINES FOR CREATING MOTIVATIONAL INCENTIVE SYSTEMS ............................................................................. 220
7. EXECUTIVE COMPENSATION .......................................................................................................................... 221
2
, 8. TRENDS AND ISSUES IN HRM ........................................................................................................................ 223
9. LESSONS LEARNED ................................................................................................................................. 224
CHAPTER 13: EMPLOYEE BENEFITS (FRINGE COMPENSATION) ..................................................................... 226
1. THE STRATEGIC VALUE OF BENEFITS PROGRAMS ................................................................................................. 226
2. COST AND EXPENSES ................................................................................................................................... 226
3. OLD AGE, SURVIVORS AND DISABILITY INSURANCE (OASDI).................................................................................. 227
4. OTHER STATUTORY BENEFITS ........................................................................................................................ 228
5. VOLUNTARY BENEFITS ................................................................................................................................. 231
6. ADMINISTRATION AND COMMUNICATION OF BENEFITS ........................................................................................ 234
7. TRENDS AND ISSUES IN HRM ................................................................................................................... 236
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