Organizational Behaviour
Canadian Edition
Schermerhorn, Hunt, Osborn, Currie
Prepared by: Joan Condie
Chapter 7
Human Resource
Management Systems
Questions
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What are the essential aspects of human resource
strategy and practice?
What are training and career planning and
development?
What is performance appraisal?
What are rewards and reward systems?
How is pay managed as an extrinsic reward?
How are intrinsic rewards managed?
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Human Resource Strategic Planning
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Is the process of providing capable and motivated
people who will carry out the organization’s
mission and strategy
Key processes include:

Staffing
Training and career development
Performance appraisal
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Rewards
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Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Staffing
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Begins with job analysis to understand the positions
for which people are needed
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Process of job analysis yields information to define a
job, how it relates to other jobs, and what characteristics
are needed by incumbents
Used for:
•
•
•
•
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job descriptions
job evaluation and classification (how much is it worth)
performance appraisal
determining training & development needs
Used to create job specifications: job requirements and
minimum qualifications
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Staffing – Three Key Parts
1. Recruiting
2. Selection
3. Socialization
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Recruitment
Recruitment = attracting qualified applicants
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Three steps
1. Advertise vacancy
2. Initial contact with potential candidates
3. First screening
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Internal versus external
Use of realistic job preview
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Selection
1. Application materials
•
E.g., resumes, application forms
2. Employment interviews
•
Commonly used yet open to perceptual distortions
3. Tests
•
•
E.g., intelligence, honesty, mechanical, performance
tests, assessment centres
Must be valid in terms of job requirements
4. Background investigation
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E.g., reference check, verification of education
5. Decision to hire
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Socialization
Socialization = orienting new
employees to the organization
and its work units
 E.g., get to know policies and
procedures, meet co-workers,
learn company’s history
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Training
Training = activities aimed at providing opportunity
to acquire and improve job-related skills
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On-the-job training:
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Internships
 Apprenticeships
 Job rotation
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Off-the-job training:
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Lectures
 Videos
 Simulations
 E-training
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Career Planning and Development
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Five-step process in formal career planning:
1.
2.
3.
4.
5.
Personal assessment
Analysis of opportunities
Selection of career objectives
Selection and implementation of plan
Evaluation of results and revision of
plan as necessary
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Career Stages Linked with Sheehy’s
Adult Life Cycle
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In traditional career path:
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Entry and establishment is like provisional
adulthood
•

Advancement is like first adulthood
•
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Seek growth and responsibility
Maintenance, withdrawal, retirement similar to
second adult stage
•
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Development of skills, socialization, mentoring
May change or stabilize, reach career plateau
But traditional route no longer typical
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Performance Appraisal
Performance appraisal = process of systematically
evaluating an employee’s performance and providing
feedback on which performance adjustments can be
made
Why do it?
 Define specific criteria against which performance
measured
 Accurate measurement of past performance
 Justify rewards
 Determine development needed to improve performance
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Performance Appraisal (cont’d)
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Uses
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Evaluative decisions
Feedback and development decisions
Done by:
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Traditionally - supervisor
Potentially - anyone in a position to observe the
person’s performance
•
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E.g., 360 degree evaluation
Appraisal dimensions
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Output measures
Activity measures
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Performance Appraisal Methods
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Comparative methods
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Ranking
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•
Paired comparison
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•
Rank order employees from best
to worst
Each employee directly compared
to each other
Forced distribution

Forces certain proportion of
employees into each performance
category
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Performance Appraisal Methods

Absolute methods
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Graphic rating scales
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•
Critical incident diaries
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Incidents of unusual success or failure are tracked
Behaviourally anchored rating scales
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•
Dimensions thought relevant to performance are
scored
Observable job behaviours evaluated
Management by objectives
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Joint goal-setting between supervisor and
subordinate focused on subordinate’s job
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Measurement Errors in Appraisals
Halo error
 Leniency/strictness error
 Central tendency error
 Recency error
 Personal bias error
 Cultural bias error

Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Improving Performance Appraisals
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For improved usefulness
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Train raters
Regular ongoing observation of employees
Limit number appraised by one supervisor
Clear standards
Avoid ambiguous terms like “average”
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Improving Performance Appraisals
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For legal defensibility
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Dimensions based on accurate job
analysis
Expectations clearly understood by
employees
Based on observable evidence and
documentation, avoiding abstract
concepts open to interpretation
System validated
Appeal process in place
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Rewards
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Extrinsic or intrinsic
Pay is the most common extrinsic reward
Pay can attract people to organization and
motivate high performance
But dissatisfaction with pay can lead to major
problems
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Rewards

Merit pay can motivate high performance if:
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Based on accurate measures of individual
performance
It clearly discriminates between high and low
performers in terms of pay received
Merit is handled separately from cost-of-living
adjustments
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
Creative Pay Practices
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Skill-based pay
Gain-sharing plans
Profit-sharing plans
Employee stock ownership plans
Lump-sum pay increases
Flexible benefit plans
Schermerhorn, Hunt, Osborn, Currie Organizational Behaviour, Canadian Edition Copyright 2005 John Wiley & Sons Canada, Ltd.
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