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Human Resource Management 1.2.INTRODUCTION.The quality of an organization is, to a large degree, merely the summation of the quality of the people it hires and keeps.This chapter addrees the iues aociated with human resource management.WHY HUMAN RESOURCE MANAGEMENT IS IMPORTANT.Various studies have concluded that an organization’s human resources can be an important strategic tool and can help establish a firm’s sustainable competitive advantage.A.Whether or not an organization has a human resource department, every manager is involved with human resource management activities.B.Managers must see employees as partners, not just costs to be minimized C.Studies that have looked at the link between HRM policies and practices and organizational performance have found that certain ones have a positive impact on performance.1.These high-performance work practices are human resource
policies and practices that lead to high levels of performance at the individual and organizational levels.2.Examples of high-performance work practices are shown in
Exhibit 12.1
THE HUMAN RESOURCE MANAGEMENT PROCESS.A.The human resource management proce is defined as the eight activities neceary for staffing the organization and sustaining high employee performance.B.There are eight steps in the proce as shown in Exhibit 12.2.C.Important Environmental Considerations.There are numerous environmental forces that constrain human resource management activities.The two factors that most directly influence the HRM proce are employee labor unions and governmental laws and regulations.1.Unionization can affect a company’s human resource
management activities.a.A labor union is an organization that represents
workers and seeks to protect their interests through collective bargaining.b.Good labor-management relations, the formal
interactions between unions and an organization’s management, are important.c.Although only about 13.5 percent of the workforce in
the United States is unionized, that percentage is higher in other countries.2.Federal laws and regulations have greatly expanded the federal
government’s influence over HRM(See Exhibit 12.3.)a.Balance of the “should and should nots” for employers
often under the realm of affirmative action.Many firms have practices that enhance the employment,3.upgrading, and retention of employees from protected groups.4.HUMAN RESOURCE PLANNING.Human resource planning is the proce by which managers ensure that they have the right numbers and kinds of people in the right places and at the right times who are capable of effectively and efficiently performing aigned tasks to aure that the organization reaches its objectives.A.Current Aement.Managers begin with a current aement of the organization’s human resources and reviewing their status.1.This is typically done through a human resource inventory.2.Another part of the current aement is the job analysis,which is an aement that defines jobs and the behaviors neceary to perform them.3.From this information, management can draw up a job
description, which is a written statement of what a jobholder does, how it is done, and why it is done.4.Also, management can develop a job specification, which is a
statement of the minimum acceptable qualifications that a person must poe to perform a given job succefully.B.Meeting Future Human Resource Needs.Future aement involves a determination of future human resource needs by looking at the organization’s goals and strategies.1.Developing a future program involves matching estimates of
shortages—both in number and in type—and to highlight areas in which the organization will be overstaffed.RECRUITMENT AND DECRUITMENT.A.Recruitment is the proce of locating, identifying, and attracting capable applicants.B.Job candidates can be found using several sources(Exhibit 12.4).1.Job fairs 2.Web-based recruiting(e-recruiting)3.Employee referrals(usually produce the best candidates)C.Decruitment involves techniques for reducing the labor supply within an organization.Decruitment options include firing, layoffs, attrition, transfers, reduced workweeks, early retirements, and job sharing.(See Exhibit 12.5.)SELECTION.The selection proce is screening job applicants to ensure that the most appropriate candidates are hired.A.What is selection? It’s an exercise in prediction.1.Prediction is important because any selection decision can result
in four poible outcomes.(See Exhibit 12.6.)2.The major thrust of any selection activity should be to reduce
the probability of making reject errors or accept errors while increasing the probability of making correct decisions.5.6.B.C.D.Validity and Reliability.1.Validity describes the proven relationship that exists between a
selection device and some relevant criterion.2.Reliability is the ability of a selection device to measure the
same thing consistently.Types of Selection Devices.There are numerous and varied selection devices to choose from.Exhibit 12.7 lists the strengths and weaknees of each of these devices.1.The application form is used by almost all organizations for job
candidates.2.Written tests can include tests of intelligence, aptitude, ability,and interest.3.Performance-simulation tests involve having job applicants
simulate job activities.Two well-known ones are: a.Work sampling is a selection device in which job
applicants are presented with a miniature model of a job and asked to perform a task or set of tasks that are central to that job.b.Aement centers are places in which job candidates
undergo performance simulation tests that evaluate managerial potential.4.Interviews are very popular as a selection device although there
are many concerns about their reliability and validity.Exhibit 12.8 lists some suggestions for making interviews more valid and reliable.Exhibit 12.9 lists examples of questions that interviewers should not ask.a.New approach is using situational interviews where
candidates role-play in mock scenarios.5.Background investigations can be done by verifying application
data and/or reference checks.6.Physical examinations are often used for jobs with physical
requirements.What Works Best and When? 1.Exhibit 12.10 provides a summary of the validity of these
various selection devices for particular types of jobs.2.A realistic job preview is a technique that provides job
applicants with both positive and negative information about the job and the company.Including an RJP can increase job satisfaction among employees and reduce turnover.7.ORIENTATION.Orientation is defined as the introduction of a new employee into his or her job and the organization.A.Types of Orientation.1.Work unit orientation familiarizes the employee with the goals
of the work unit, clarifies how his or her job contributes to the unit’s goals, and includes an introduction to his or her new coworkers.2.B.C.D.8.Organization orientation informs the new employee about the organization’s objectives, history, philosophy, procedures, and rules.The major objectives of orientation include: 1.Reduce initial anxiety.2.Familiarize new employees with the job, the work unit, and the
organization.3.Facilitate the outsider-insider transition.Formal orientation programs are quite prevalent in many organizations, particularly large ones.Managers have an obligation to new employees to insure that their integration into the organization is as smooth and anxiety-free as poible.EMPLOYEE TRAINING.Employee training is a critical component of the human resource management program.A.Skill categories fall into three types.1.Technical skills, which include basic skills(reading, writing,math)and job-specific competencies.2.Interpersonal skills, which involve the ability to interact
effectively with coworkers and boes.3.Problem-solving skills, which involve the ability to solve
problems that arise.B.Exhibit 12.11 describes the major types of training that organizations provide.1.On-the-job training is extremely common.It can involve job
rotation, which is on-the-job training that involves lateral transfers in which employees get to work at different jobs.It can also involve mentoring and coaching, experiential exercises and claroom training.2.Technology-driven training methods(see Exhibit 12.12).EMPLOYEE PERFORMANCE MANAGEMENT.A.Managers need to know whether their employees are performing their jobs efficiently and effectively or whether there is need for improvement.B.A performance management system is a proce of establishing performance standards and appraising employee performance in order to arrive at objective HR decisions and support those decisions with documentation.C.Performance Appraisal Methods(Exhibit 12.13 summarizes the advantages and disadvantages of each of these methods.)1.Written eays is an appraisal technique in which an evaluator
writes out a description of an employee’s strengths and weaknees, past performance, and potential.2.Critical incidents is a technique in which the appraiser writes
down anecdotes that describe what the employee did that was
9.3.4.5.6.7.10.especially effective or ineffective.The key is that only specific behaviors, not vaguely defined personality traits, are cited.Graphic rating scales is one of the oldest and most popular performance appraisal methods.This method lists a set of performance factors, and the evaluator goes down the list and rates the employee on each factor using an incremental scale.Behaviorally anchored rating scales(BARS)is an appraisal approach that combines major elements from the critical incident and graphic rating scale approaches.The appraiser rates an employee according to items along a scale, but the items are examples of actual behavior on the job rather than general descriptions or traits.Multiperson comparison methods compare one individual’s performance with that of one or more others.Objectives.MBO is also a mechanism for appraising performance.360-degree feedback is a performance appraisal method that utilizes feedback from supervisors, employees, and coworkers COMPENSATION AND BENEFITS.How do organizations decide on the compensation levels and benefits that employees will receive? A.The purpose of having an effective reward system is to attract and retain competent and talented individuals who can help the organization achieve its miion and goals.B.A compensation system can include base wages and salaries, wage and salary add-ons, incentive payments, and benefits and services.C.What factors determine the compensation and benefits packages for different employees?(See Exhibit 12.14.)1.One key factor is the kind of job an employee performs.a.Typically, the higher the skill level, the higher the pay.b.Many organizations have implemented skill-based pay
systems in which employees are rewarded for the job skills and competencies that they can demonstrate.2.Another factor is the kind of busine the organization is in
(private sector versus public sector).3.Flexibility is becoming a key consideration in the design of an
organization’s compensation system.11.CAREER DEVELOPMENT.A career is defined as the sequence of positions held by a person during his or her lifetime.A.We need to look first at career development the way it was.1.Career development programs were typically designed by
organizations to help employees advance their work lives within a specific organization.12.However, widespread internal changes have altered the idea of a traditional organizational career.3.Now, it’s the individual, not the organization, who is responsible
for his or her own career.B.You and Your Career Today.The idea of increased personal responsibility for one’s career has been described as a boundaryle career in which individuals rather than organizations define career progreion, organizational loyalty, important skills, and marketplace value.1.The challenge for individuals is that there are no norms and few
rules to guide them.2.The optimum career choice is one that offers the best match
between what a person wants out of life and his or her interests, abilities, and market opportunities.3.Exhibit 12.15 provides results of a survey of college graduates
regarding what is important to them in their first jobs.CURRENT ISSUES IN HUMAN RESOURCE MANAGEMENT.There are several contemporary human resource iues facing managers today.A.Managing Downsizing is a challenge for management in a tight economy.1.Downsizing is the planned elimination of jobs in an
organization.This can be due to the need to cut costs, declining market share, over aggreive organizational growth.B.Managing Workforce Diversity.One current HR iue is managing workforce diversity.As we’ve talked about previously, the makeup of the workforce is changing and will impact recruitment, selection, and orientation/training of employees.C.Sexual Harament.Sexual harament is behavior marked by sexually aggreive remarks, unwanted touching and sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature.It can occur between members of the opposite sex or of the same sex.D.Work-Life Balance.Family concerns, especially work-life balance, are another iue of current importance in human resource management.1.Organizations are beginning to realize that employees can’t just
leave their family needs and problems behind when they walk into work.They’re responding by developing programs to help employees deal with the family iues that may arise.2.Another family iue is that of dual-career couples, in which
both partners have a profeional, managerial, or administrative occupation.2.1.Are there limits on how far a prospective employer should delve into an applicant’s personal life by means of interviews or tests? Explain.2.3.The law defines the limits by requiring information to be job related.If the information meets the legality test, it is probably also legitimate from a moral perspective.Should an employer have the right to choose employees without governmental interference? Support your conclusion.Student responses to this question will vary.In fact, this would be an excellent question to set up as a debate with half of the cla supporting government legislation and regulations and the other half opposing it.Studies show that women’s salaries still lag behind men’s, and even with equal opportunity laws and regulations, women are paid about 73 percent of what men are paid.How would you design a compensation system that would addre this iue?
This is a very difficult question.Students will probably come up with different suggestions for addreing the inequities.However, be sure to remind them that there are many factors that influence an organization’s compensation system.In fact, this would be a good time to review these factors.What drawbacks, if any, do you see in implementing flexible benefits?(Consider this question from the perspective of both the organization and the employee.)This would be a good question to aign half of the cla to consider the question from the organization’s viewpoint and make a list of pros and cons, while the other half of the cla considers the question from the employee’s viewpoint and makes a list of pros and cons.What are the benefits and drawbacks of realistic job previews?(Consider this question from the perspective of both the organization and the employee.)Again, this question would be a good debate-type question, with half of the cla looking at RJPs from the organization’s viewpoint and the other half of the cla looking at RJPs from the employee’s viewpoint.Also, students should be encouraged to share incidents when they received an RJP during an interview setting.Students could also be encouraged to share aspects or characteristics of jobs they currently hold that would be good information to provide incoming employees during an RJP.4.5.
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