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Intro Human Resource Management

by: Joanne Notetaker

Intro Human Resource Management 301

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Study Guide - Updated among the help of classmates For upcoming midterm - October 5, 2016 (Fall semester)
Introduction to Human Resources
Sargam Garg
Study Guide
humanresources, Rutgers
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This 14 page Study Guide was uploaded by Joanne Notetaker on Tuesday October 4, 2016. The Study Guide belongs to 301 at Rutgers University taught by Sargam Garg in Fall 2016. Since its upload, it has received 21 views. For similar materials see Introduction to Human Resources in 533 at Rutgers University.


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Date Created: 10/04/16
Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 Some information about the exam: o   40 questions o   All multiple choice     Example questions: 1. Your company is currently faced with a labor shortage. You need to correct the  situation, but want to choose an option that is fast, yet can be “undone” when the  shortage goes away (revocability). Of the following options, which one does NOT  meet both of these conditions?   A. Overtime B. New external hires C. Temporary workers D. Outsourcing   Answer: B. New external Hires   HRM Overview    Three methods to assess whether HRM matters ●  Conceptual Arguments ­ First Tactic: A Conceptual Analysis                  ­ Resource­based view (RBV) ­ focus on internal resources                  ­ Firm resources: ?                    Valuable ?                     Rare ?                     Inimitable  ?                     Non­substitutable  ● Case Studies ­ Examine companies that do well financially and see if they do a good job  managing HRM. ­ Examine companies that struggle financially and see if they do a poor job  managing HRM.  ● Quantitative Analysis  ­ Look at companies who have been recognized for their HRM quality, to  see if their practices have seemed to create a sustainable competitive advantage. ­ Example of companies: Zappos, Amazon Introduction to Human Resource Management  Professor. Sargam Garg  Section 05      The “resource­based view” of the firm o   What are some kinds of “resources”? ● Tangible (physical) and intangible (non­physical) Tangible resources: Land, buildings, machinery, equipment and  capital Intangible resources: Brand reputation, trademarks, intellectual  property  ­ Stay within company o   What is a competitive advantage? ● When a company implements a value creating strategy that  is not being implemented by current and potential competitors (Basically,  what makes you different from other companies and it’s not imitable) o   What factors contribute to making resources valuable and that, in turn, give  companies a competitive advantage? ● Rare, inimitable, non­substitutable, valuable   q  Study of 968 firms regarding their HRM practices conducted by Huselid (1995), Know the results ­ specific amounts/percentages. ● one standard deviation increase in high performance work  practices was associated with a 7.05% decrease in turnover ● $18,000 increase in stock market value ● $27,044 increase in sales per employee    q  What is psychological contract? ● expectations of employee contributions and what the  company will provide in return ■  Includes pay, benefits and training in  exchange for commitment and performance ■ Governs how employees evaluate company  decisions and how they act on the job Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 HR Challenges   q  The two general HR challenges that we discussed ● Organizational demands ● Environmental issues   q  Strategy as an organizational demand o   The two types of strategies ● Cost Leadership Strategy: offering lowest costs for  products / services Ex: Walmart ● Differentiation Strategy:  Providing something unique for  which customers are willing to pay Ex: The Container Store, Apple o   Their implications for managing employees       Cost leadership ● Jobs are narrow in focus and emphasize standardized and  repetitive actions ● Behaviors are fairly well understood ● Individuals are hired with basic skills ● Employees trained to understand expectations ● Employees paid based on jobs they perform      Differentiation ●  Jobs geared toward creativity or customer service ● Employees hired with specific skills and new perspectives ● Jobs require cooperation, creativity and knowledge sharing ● Pay based on individual potential or team accomplishments   Company characteristics as an organizational demand: Compare concerns between  companies in different stages of development (young versus old companies) Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 Young companies: tend to focus more on growth and wealth / survival Old companies: tend to focus more on career growth, training,  ●   Focus on customer retention / future  opportunities ●   Have more resources and established  policies  ●   Are more bureaucratic       Organizational culture as an organizational demand: o   Definition ● Assumptions, values and beliefs that affect  how companies behave o   Factors that shape culture ● Values / beliefs of a company’s founders ● Important decisions made in company’s  history ● HR practices that signal value, behavior ● Management practices and actions ● Mergers and acquisitions ● Strong cultures provide clear, consistent  signals ● Weak cultures are ambiguous and lack a  clear message ● Informal or unwritten ● Observed in how employees talk to one  another ● Seen in employees’ interaction with  customers  Possible responses to injustice ● Speaking up, silence, neglect, leaving,  destructive behaviors   What are the implications of conducting the business in an ethically and socially  responsible way   Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 ●  Ethics and social responsibility ■ Involves how companies behave toward  their stakeholders ■ Includes consistent monitoring of all facets  of operations ■ Can help foster positive reputation and  consumer support ■ Companies rated as best corporate citizens  financially outperform their counterparts     Job Analysis   The components that comprise job descriptions ● Dimensions of the job  ● task within each dimension ● Rate all of those tasks according to  importance  The components that comprise job specifications ● KSAO (Knowledge, Skills, Abilities, Other factors)      What is job analysis ●  The process of getting the TDR expected to be performed in the job as  well as the COMPETENCIES (KSAO) for the employees to have to perform in  the job.  ● The process to getting job information. Introduction to Human Resource Management  Professor. Sargam Garg  Section 05      Knowledge, Skills, Abilities, and Other characteristics o   Definitions ● Knowledge: Factual & procedural information (“know  what”) ● Skills: proficiency at performing a task  (“know how”) ● Abilities: Enduring capability (“can do”) ● Others: personality, experiences o   What characteristics are trainable and which ones are not (or, less trainable) ● Trainable: Knowledge and Skills ● Less trainable: Abilities and Other characteristics o   Be able to apply this information to an example about who to hire §I can know what is wrong with my computer but not have the skills to fix it  (knowledge or skill?) §I can be taught to read a map but still not have a good sense of direction (skill  or ability?)  Tools for job analysis o   Types of tools ­ Job Element Inventory  ­ Position Analysis Questionnaire  ­ Occupational Information Network (O*NET) ­ replaced DOT ­ Dictionary of Occupational Titles (DOT)   o   Pros and cons of each tool 1) Job Element Inventory Pro’s: ●  Inexpensive ●  Easy to use ●  Little­No Mistake. Con’s:  ● Does not include any special tools for identifying KSAOs 2) Position Analysis Questionnaire: Pro’s:  ● dimensions are linked to a general aptitude test  Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 ● Dimensions are broad (covers input, output, processes, and work context) Con’s: ● Requires a reading level of a college graduate to complete the test ● Standard format leads to an abstract characterization of jobs 3) O*Net & DOT  Pro’s:  ● Offer manager an online resource to help with job analysis process ● Online potential for enhancing the management the people across the  whole economy Con’s:  ● Much more research is needed ● Expensive ● Difficult to collect and update data.    Why is job analysis information important for example: compensation, training, etc.? To find the perfect fit for the job? In training:  ● design training to improve the Knowledge and Skills  inherent in important tasks ● Form basis of our evaluation for training success In compensation:  ● The KSAO’s become “compensable factors” used in Job  Evaluation to assign a base salary to a given job. The rarer the KSAO, the  more money the organization must pay for it. ● Fulfillment of important tasks becomes a key input into  merit­based pay plans. In selection: ● KSAO becomes the thing that we look for in resumes, iv,  references, ability test and etc In Legal Issues in Selection: Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 ● Important tasks become “essential job functions” under the  Americans with Disabilities Act.  Companies can refuse to hire disabled  applications if they cannot perform these functions (vs. “marginal job  functions”), with some exceptions. In Performance Management: ● Performance of the important tasks (& KSAOs) is what  gets measured with our evaluation instruments.    What is an organization chart? ●  a graphic representation of the structure of an organization, showing the  relationships of the positions or jobs within it.   Job Design     The four broad approaches to job design o   Goals of each o   How each is conducted   Motivational: maximize intrinsic enjoyment ­ jobs are designed to be intrinsically motivated: tasks are  challenging /                                          Fulfilling ­ Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 Mechanistic, Biological, Perceptual Motor: maximize efficiency & safety   Mechanistic­ Memomotion (fast speed, and change placement) ,  Micromotion (low speed, record employee doing the job) Biological­ structure, job or task, reduce fatigue or physical stress   Perceptual Motor­ similar to biological, but more about cognition/mental.    Within the motivational approach, the Job Characteristics Model (JCM) o   The five core job characteristics (VISAF) ● Variety, Identity, Autonomy, Significance,  Feedback o   The three critical psychological states ● Meaningfulness of work, responsibility for  work, knowledge of results o   The goal of the motivational approach ● maximize intrinsic enjoyment o   Trade­offs of the motivational approach Negative outcomes: training time, likelihood of errors, overload & stress o   The name of the survey used to compute a “satisfaction” score using the  JCM ● Job diagnostic survey       From the article “Why Silicon Valley is Rethinking the Cubicle Office,” what job design  is MOST applicable to Intel’s switch from cubicles to an open office design ●  Mechanistic approach­ memomotion analysis      Planning   q  Planning process Definition: Making sure individuals with the right skills sets are where they need to be at  the right time to meet current and future needs Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 ● Forecasts of labor demands ● Forecasts of labor supply ● Forecasts of labor surplus or shortage ● Goal setting and strategic planning ● Program implementation and evaluation       Definition of labor demand and labor supply ● Labor demand: number and types of employees the company needs. ● Labor supply: current or potential employees to perform jobs.  What is transition matrix ● Tracks movement of employees throughout an organization    What is productivity ratio ● Number of employees needed to achieve output level   q  Specific options for how to correct a surplus o  Which options are faster ­ Downsizing  ­ Pay reduction ­ Demotions ­ Work sharing o  Which options result in human suffering ­ Hiring freeze ­ Natural attrition ­ Early retirement  ­ Retraining        High human suffering: Downsizing, Pay reduction, Demotion (reduction in  status).   q  Specific options for how to correct a shortage o   Which options are faster ­ Overtime ­ Temporary workers ­ Outsourcing o   Which options are revocable (can be “undone” when the shortage is  corrected) ­ Overtime ­ Temporary workers Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 ­ Outsourcing ­ Retrained transfers ­ Turnover reduction (?) ­ Moderately revocable      Recruitment   q  Four factors that make organizations more or less attractive to candidates ● Vacancy characteristics Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 ● Personnel policies ● Recruitment sources ● Recruiter characteristics      q  With regard to vacancy characteristics, three potential decision­making strategies that  candidates might use to decide which job to accept ● Compensatory Strategy  ● Noncompensatory Strategy ● The “Implicit” favorite     q  The three policies that affect vacancy desirability ● Promoting from within ● Lead­the­market pay ● Image advertising q  The outcome upon which recruiter characteristics has an impact ●  Decision to accept second interview q  What are advantages and disadvantages of using internal and external recruitment  sources ● Advantage of using internal sources: cheaper, internal employees have  more knowledge about organization, get up to speed more quickly to their new  role ● Disadvantage of using internal sources: not practical in small firms, may  not be a good fit for the position ● Advantage of using external sources: brings in fresh ideas ● Disadvantage of using external sources: risky to use as they will need  more time to adapt to new role (decline in performance at first), need training q  Realistic job previews o   What are they  are devices used in the early stages of personnel selection to provide potential  applicants with information on both positive and negative aspects of the job o   What can they help improve Perception of employee fairness Initial turnover   Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 q    What is succession management ● is the process of identifying those jobs considered to be at the core of the  organization­­ too critical to be left vacant or filled by any but the best qualified  persons—and then creating a strategic plan to fill them with experienced and  capable employees.  ● On going process of preparing employees to assume other positions in the  organization   Things you need to know for Exam: What makes HR lead to competitive advantages? Rare resources and other three  things that make it lead to competitive advantage. What are different ways we assess if HR matters? Quantitative analysis other  What is appreciation strategy? Different job characteristics  TDR (task, duties, responsibilities) Dictionary of occupational titles: what is it replaced by? O*NET micromotion, memomotion, process engineering Read: why silicon valley is rethinking cubicles and boeing   Benchmarking ­  Labor surplus/demands ­ What does it mean? Different ways of shortage Outsourcing Article ­ Read it goals of recruitment (the three main goals) Introduction to Human Resource Management  Professor. Sargam Garg  Section 05 disadvantage of external recruitment? *What is the thing recruiters have the greatest impact on?  ● Second interview   Three different compensation strategies  Workforce Planning  ● Forecasting tools ● Dealing with a labor shortage + surplus  Goals of recruitment


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