Description
Organization Compensation (Paper 2)
Each student will write a 1500-word paper that evaluates a modern organization compensation package and how it is utilized to attract, retain, and promote employees. The organization can be an organization that the student is affiliated with or an organization in which the student desires to learn more about. The organization cannot be the same as the one previously evaluated in Assignment 1
Written exams grading criteria:
Systematic, comprehensive research (especially assigned texts — think in terms of
reference to a minimum of three different sources)
Write professionally.
Cite sources in text, correctly.
Logical, coherent, balanced argument
Well used tables/ graphs (bonus)
Follow instructions (debits)
Format:
Papers are to be double spaced with 1 inch margins.
Papers to be written using 12 pt. font (Arial or Times New Roman)
Papers need to be formatted and cited per APA, 6th Edition
Save paper. Do include your name, course number, assignment name, title of the paper and all that at the beginning of the paper, but you needn’t do this on a separate page.
o Especially if you submit the paper electronically, feel free to single space. I can use the comment function in MS Word to insert comments.
Write professionally.
Rule of thumb #1: identify the issue, state the question, identify the main theme, etc.
o Tell your reader in the first paragraph, if not the first line, your purpose: what is the central message of the paper. If you can’t identify a central message, rethink the paper!
Do this as clearly as possible, with a “This paper will…” statement, if necessary?
o Also, close the introduction with a brief summary of how the argument will proceed.
Rule of thumb #2: use a professional tone. Don’t force it. Some tips:
o Do not use first person (e.g. I, my, we, our), or second person (you, your). Use third person. In a professional context you most often are not writing for yourself, you are writing on behalf of an organization, to an impersonal audience.
o Learn the difference between there, they’re, and their; your and you’re; and its and it’s.
o Learn the difference between possessive apostrophes and plural.
o Beware singular/plural inconsistency (e.g. The student lost points for singular/plural consistency in their paper).
o Do not use contractions (e.g. don’t).
o Avoid rhetorical questions (e.g. Why is this the case?).
o Avoid starting a sentence with a conjunction (e.g. The paper was bad. And she started a sentence with and.).
o Get used to gender neutral usages.
Write for an informed lay person on the street, rather than for experts, the uninformed, or your class professor. So do not assume that your reader is in this class, and will know who Professor Harris is, or what we discussed in week three.
Use quotations sparingly. This is meant to be a paper by you, not a collection of selected quotes that you thought were especially relevant to the topic. As a rule of thumb, no more than 10% of your work should be direct quotations.
Otherwise: self explanatory. I have some writing sources listed at the end of the ‘Research’ page on the class website.
The paper must contain at least three references.
Please focus on all I attached you.
Please focus on this paper because the grade about this paper 35.
Thanks.
Unformatted Attachment Preview
Compensation
“Show Me the Money”
Why Important to SHRM???
• Design, implementation, and maintenance of compensation systems are
important parts of (SHRM)
• salaries, incentives, benefits, and quality-of-life issues are important in
attracting, retaining, and motivating employees
• pay levels, pay structures, job evaluation, and incentive pay systems
• influence the ability of an organization to compete in the marketplace
• attract the most qualified and competent applicants
• retain its most talented and productive employees
• employers use compensation to attract, retain, and motivate employees to
achieve organizational goals
• Employees expect fair pay for the services they perform
Employees’ expectations and perceptions of
fairness
Competitive labor market wages
Factors that
affect
Compensation
Other benefits provided to employees
Organization’s ability to pay
Federal, state, and local law
Individuals have expectations about what they will
be paid
Expectation for fair compensation
Equity
• based on perceptions of equity.
• Equity Theory
• employees compare their job inputs and outcomes to the
inputs and outputs of other employees performing similar
tasks.
• If they perceive their ratio of inputs to outputs to be equal
to those with whom they compare themselves, a state of
equity is said to exist.
• If the ratios are unequal, inequity exists, and employees will
believe that they are under rewarded.
• To develop compensation systems, employers rely on three
types of equity: external, internal, and employee.
Three Types of Equity
•
•
External
•
standard that compares an employer’s wages with the rates prevailing in external markets for the employee’s position
•
markets are identified and defined by some combination of the following factors: education and technical background requirements
•
licensing or certification requirements
•
experience required by the job
•
occupational membership
•
geographical location, such as local, regional, or national labor markets
Internal
•
standard that requires employers to set wages for jobs within their organizations that correspond to the relative internal value of each job
•
positions determined to be more valuable to the organization receive higher wages
•
internal value of each position to the organization is determined by a procedure known as a job evaluation
•
Most common job evaluation methods
•
Ranking: job evaluated and arranged in order from highest to lowest according to their value to the organization
•
Job Classification: class descriptions reflect the differences among groups of jobs at various difficulty levels
•
Factor comparison: jobs are compared on several compensable factors to obtain a numerical value for each job position
•
Point method: involves rating each job on several compensable factors and adding the scores on each factor to obtain a point total for a job
Three Types of Equity Cont.
• Employee Equity
• comparison of pay across employees performing the same or similar work
• focuses on the contributions of an individual worker within a job classification
• issue is what coworkers performing the same job are paid
• Most compensation structures include pay ranges.
• pay range exists when one or more rates are paid to employees in the same job
• range permits organizations to pay different wages for differences in experience
• differences in performance.
• reflects the minimum and maximum that the employer will pay for the position.
Typical Compensable factors
Experience
•training and development acquired from previous work plus the training and development on the job that is necessary for
proficiency
Education
•Education refers to the basic ability, skill, and intellectual requirements the position demands, normally assumed to have
been acquired by attending high school, business school, trade school, college, or graduate school.
Complexity of Duties
•difficulty of the work performed and the degree of skill and judgment necessary
Supervision Received
•degree to which the work is supervised, guided by practice or precedent, and the requirements of the position for
problem solving and decision making
Supervision Exercised
•degree to which the work is supervised, guided by practice or precedent, and the requirements of the position for
problem solving and decision making
Mental Demands
•amount and continuity of mental demand required to perform the job
Physical demands
•amount and continuity of physical effort required to perform the job
Working Conditions
•elements in the job environment, ie noise heat, chemicals, hazard
Designing Pay Ranges
Employer needs to establish the current market rates for benchmark jobs
Once established
• Each salary range should have a midpoint, a minimum, and a maximum
• midpoint for each range is usually set to correspond to the external labor market
• minimums and maximums are usually based on a combination of the size of the range identified in survey
data and judgments about how the ranges fit the organization
• Judgement factors
• salaries paid by the organization’s competition
• organization’s culture
• standard salaries across an occupational classification
• employers must look at the degree of overlap (comparability of pay between pay grades)
• amount of overlap between pay grades signifies the similarities in the responsibilities, duties, and KSAOCs of
jobs whose pay ranges overlap
Compression & Grade Creep
• Results when salaries for jobs filled from outside the organization are increasing faster than incumbent
wages
• (i.e., when new employees are paid salaries that are comparable to those of more experienced
employees) or the salaries of jobs filled from within the organization
• Compression occurs in most public and nonprofit organizations???
• Grade Creep
• form of classification inflation
• supervisors and incumbents request that positions be reclassified to the next highest grade so that
the incumbent receives higher compensation despite no change in job tasks or responsibilities
• typically results when incumbents are at the top of their pay level and no other mechanism exists to
increase their pay
Pay Differentials
• Pay Differentials
• Employee equity addresses pay differentials within the same position
• Recognizes that employees who possess the same job title and
responsibilities often perform at different levels of productivity or
proficiency
• public sector, seniority is frequently used to differentiate pay
• senior employees receive higher wages regardless of their
performance
• Seniority a poison pill
Alternative Pay systems
Alternative
Pay
Systems
• Longevity Pay
• rewards employees who have reached pay grade maximums and are not
likely to move into higher grades
• purpose is to reduce turnover as well as reward employees for
continuous years of service
Broadbanding or Paybanding
• salary grades are collapsed into broader bands with wider ranges
• eliminates having to maintain many narrow salary grades
• grants managers the discretion to offer a variety of starting salaries and
reward employees with pay increases or different job assignments as
needed to fulfill the agency’s mission
Skill-Based Pay or Pay for Knowledge
pay plans, pay is determined by the number of tasks or jobs
or the amount of knowledge an employee masters
Alternative Pay Systems Cont.
Merit Pay or Pay
for Performance
• grounded in the belief that individuals should be paid according to their
contributions
• Increases are rewarded on the basis of performance rather than seniority,
equality, or need
Gainsharing
• a team bonus program that measures controllable costs, such as improved
safety records or decreases in waste or units of output
Goalsharing
• Payments are linked to the achievement of performance goals, which can also
include cost savings
Compensation and benefits provided to executives in public and nonprofit
organizations are often different from those other employees receive
Public sector executives are exempt from civil service protection and serve at the
discretion of elected officials
Executive
Compensation
and Benefits
common benefits found in executive employment contracts
•severance protection; moving expenses; health, retirement, and disability insurance; professional
association memberships and dues; and paid conference registration and associated expenses such as
travel and accommodations
Executives are hired for their professional experience and expertise
typically recruited from the national labor market and often relocate to accept a
position
In both the public and nonprofit sectors, salaries are determined by surveying what
relevant organizations in the external labor market pay for executive positions
Federal Laws Governing Compensation
• All public and nonprofit employers are required to comply with three federal laws:
• Fair Labor Standards Act
• minimum wage, overtime pay, equal pay, and child labor rules
• divides employees into exempt and nonexempt workers
• Exempt employees are not covered by the overtime provisions
• Non-exempt, can receive overtime
• Equal Pay Act
• prohibits unequal pay differences for men and women who are performing equal work on jobs requiring
equal skill, effort, and responsibility and performed in the same establishment under similar working
conditions
• Lilly Ledbetter Fair Pay Act.
• The act amends the Civil Rights Act of 1964 stating that the 180-day statute of limitations for filing an equalpay lawsuit regarding pay discrimination resets with each new discriminatory paycheck
State and Local Government Minimum Wages
• State and local governments are not bound by the federal minimum wage
• They cannot permit wages lower than the federal minimum wage, but they can require higher wages
• Living Wages
• often used by advocates to point out that the federal minimum wage is not high enough to support a family
• “The remuneration received for a standard workweek by a worker in a particular place sufficient to afford a
decent standard of living for the worker and her or his family. Elements of a decent standard of living include food,
water, housing, education, health care, transportation, clothing, and other essential needs including provision for
unexpected events”. (Globallivingwage, 2022)
• Comparable Worth
• is the idea that each job has an inherent value or worth that can be compared to different types of positions
across the organization: jobs of greater inherent value to the organization should be paid more
• defined as equitable compensation relationships for jobs that are not the same but have been evaluated as
equivalent based on the composite skill, effort, responsibility, and working conditions required
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The Instructor’s Guide for the third edition of Human Resources Management in
Public and Nonprofit Organizations includes several model syllabi for courses of
differing lengths, as well as additional class references. The Instructor’s Guide
is available free online. If you would like to download and print out a copy
of the Guide, please visit:
www.wiley.com/college/pynes
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EDUCATIONAL RESOURCES FOR NONPROFIT AND PUBLIC
MANAGEMENT
Bryson, Strategic Planning for Public and Nonprofit Organizations, 3e
Cohen, The Effective Public Manager, 4e
Condrey, Handbook of Human Resources Management in Government, 2e
Cooper, The Responsible Administrator, 5e
Dove, Conducting a Successful Capital Campaign, Revised and Expanded
Feinglass, The Public Relations Handbook for Nonprofits
Gastil and Levine, The Deliberative Democracy Handbook
Herman, The Jossey-Bass Handbook of Nonprofit Leadership and Management, 2e
Keehley and Abercrombie, Benchmarking in the Public and Nonprofit Sectors, 2e
Kotler et al., Museum Marketing and Strategy, 2e
Lewis, The Ethics Challenge in Public Service, 2e
Linden, Working Across Boundaries
Oster, Generating and Sustaining Nonprofit Earned Income
Pawlak, Designing and Planning Programs for Nonprofit and Government Organizations
Poister, Measuring Performance in Public and Nonprofit Organizations
Rea and Parker, Designing and Conducting Survey Research, 3e
Rainey, Understanding and Managing Public Organizations, 3e
Snow and Phillips, Making Critical Decisions
Tempel, Hank Rosso’s Achieving Excellence in Fundraising, 2e
Wholey et al., Handbook of Practical Program Evaluation, 2e
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Y
HUMAN RESOURCES
MANAGEMENT
FOR PUBLIC AND
NONPROFIT
ORGANIZATIONS
A STRATEGIC APPROACH
THIRD EDITION
Joan E. Pynes
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Copyright © 2009 by John Wiley & Sons, Inc. All rights reserved.
Published by Jossey-Bass
A Wiley Imprint
989 Market Street, San Francisco, CA 94103-1741—www.josseybass.com
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form
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Readers should be aware that Internet Web sites offered as citations and/or sources for further
information may have changed or disappeared between the time this was written and when it is read.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best
efforts in preparing this book, they make no representations or warranties with respect to the accuracy
or completeness of the contents of this book and specifically disclaim any implied warranties of
merchantability or fitness for a particular purpose. No warranty may be created or extended by sales
representatives or written sales materials. The advice and strategies contained herein may not be suitable
for your situation. You should consult with a professional where appropriate. Neither the publisher nor
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Library of Congress Cataloging-in-Publication Data
Pynes, Joan.
Human resources management for public and nonprofit organizations : a strategic approach /
Joan E. Pynes.—3rd ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-470-33185-9 (cloth/website)
1. Nonprofit organizations—United States—Personnel management. 2. Public
administration—United States—Personnel management. I. Title.
HF5549.2.U5P96 2009
658.3—dc22
2008032854
Printed in the United States of America
THIRD EDITION
HB Printing
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CONTENTS
Figures, Tables, and Exhibits xi
Exercises xiii
Preface
xv
Acknowledgments
The Author
xxiii
xxiv
PART ONE: HUMAN RESOURCES MANAGEMENT IN CONTEXT 1
1 Introduction to Human Resources Management
in the Public and Nonprofit Sectors 3
The Public Sector
5
The Nonprofit Sector
11
The New Public Service
22
Today’s Context for Human Resources Management
Conclusion
23
27
v
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vi
Contents
2 Strategic Human Resources Management and Planning 31
The Changing Role of Human Resources Management
Human Resources Outsourcing
36
Strategic Human Resources Management
Human Resources Planning
33
38
39
Evaluating the Effectiveness of Strategic Human Resources Management
46
Problems and Implications of Strategic Human Resources Management
47
Conclusion
49
3 The Legal Environment of Human Resources Management
Federal Equal Employment Opportunity Laws
Proving Employment Discrimination
56
66
Affirmative Action: Executive Orders and Other Federal Laws
Affirmative Action
68
71
Constitutional Rights
73
Additional Protections for Employees
Conclusion
55
78
80
4 Managing a Diverse Workforce
Glass Ceilings
88
91
Why Diversity Is Important
Sexual Harassment
96
Employer Liability
99
Sexual Orientation
99
92
What Does It Mean to Be Transgendered?
Changes in the Nonprofit Landscape
101
102
The Difference Between Compliance with Laws and Managing Diversity
105
Strategic Human Resources Management Implications
for Managing Diversity 107
Conclusion
110
5 Volunteers in the Public and Nonprofit Sectors 115
Use of Volunteers
117
Volunteer Motivation
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119
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Contents
vii
Barriers to Volunteer Recruitment
Recruitment
120
The Prerecruitment Process
Managing Volunteers
Volunteer Recognition
128
129
130
Volunteer Protection Act
Service Initiatives
131
Governing Boards
132
Conclusion
122
126
Orientation and Training
Evaluation
120
131
139
PART TWO: METHODS AND FUNCTIONS OF
HUMAN RESOURCES MANAGEMENT 145
6 Job Analysis 149
Legal Significance of Job Analysis Data
151
Job Analysis Information and Methods
153
Designing a Job Analysis Program
Strategic Job Analysis
164
Competency Modeling
166
Job Analysis Techniques
171
Contextual Performance
174
Conclusion
158
175
7 Recruitment and Selection in the Public and
Nonprofit Sectors 180
Recruitment
181
Screening Applicants
189
Executive and Managerial Recruitment and Selection
Conclusion
207
209
8 Performance Management 215
Motivation
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218
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viii
Contents
Developing an Evaluation Program
Rater Training
223
224
Who Should Rate?
227
Executive Evaluation
Documentation
228
231
Evaluation Review
232
Ethical Issues in Performance Appraisal
Performance Appraisal Techniques
233
234
Team-Based Performance Techniques
241
Employee and Management Motivations: Public and
Nonprofit Organizations Versus For-Profit Organizations
Conclusion
245
246
9 Compensation 251
Equity
252
Executive Compensation and Benefits
269
Federal Laws Governing Compensation
271
State and Local Government Minimum Wages
Living Wages
274
Comparable Worth
Conclusion
10 Benefits
276
280
284
Required Benefits
285
Discretionary Benefits
289
Quality-of-Work and Quality-of-Life Issues
Conclusion
274
297
303
11 Training and Development 308
The Training Process
311
Career Development
325
Managerial and Executive Development
Conclusion
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327
334
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Contents
ix
12 Labor-Management Relations: Collective Bargaining
in the Public and Nonprofit Sectors 339
The History of Private Sector Collective Bargaining
340
Collective Bargaining in Nonprofit Organizations
343
Collective Bargaining in the Federal Government
344
Collective Bargaining in State and Local Governments
Concepts and Practices of Collective Bargaining
Public Sector Distinctions
346
358
Nonprofit Sector Distinctions
362
Privatization of Public Services
366
Conclusion
346
367
13 Strategic Human Resource Management and Technology
Information Systems Technology
Organizational Change
375
376
Types of Information Systems
378
Information Systems Design
380
Information Technology Resource Policies
Human Resource Information Systems
381
383
Electronic Human Resources Management
388
Strategic Human Resources Management
389
Conclusion
373
390
14 Conclusion: Challenges for Public and
Nonprofit Organizations 395
What to Expect
395
Challenges of Strategic Human Resources Management
Change in Skill Requirements
Conclusion
References
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398
399
400
401
Name Index
431
Subject Index
437
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FIGURES, TABLES, AND EXHIBITS
Figures
4.1
13.1
Change Model for Work on Diversity 109
Uses of Human Resources Information Systems
384
Tables
1.1
1.2
1.3
5.1
6.1
9.1
9.2
9.3
IRS Organization Reference Chart 12
Number of Nonprofit Organizations in the United States, 1996–2006 17
National Taxonomy of Exempt Entities: Broad Categories 19
Grid for Matching Incumbent and Potential Board Members 136
Department of Labor Worker Functions 172
General Schedule Pay Scale: Annual Rates by Grade and Step 259
City-County Library District Salary and Wage Schedule 260
Comparable Municipal Market Study for Select Local
Government Positions 263
xi
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xii
Figures, Tables, and Exhibits
Exhibits
5.1
6.1
6.2
6.3
6.4
6.5
7.1
8.1
8.2
8.3
8.4
8.5
8.6
9.1
11.1
11.2
12.1
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Information Sheet on Prospective Appointee for Citizen
Board or Commission 125
Job Analysis Questionnaire 154
Structured Task Questionnaire 156
Example Job Descriptions 160
Competencies of Canadian Public Managers 167
American Cancer Society Competencies 169
Resources for Job Seekers 186
Common Rating Errors 225
Trait Rating Scale 236
Behaviorally Anchored Rating Scale 238
Management by Objectives Rating Scale 239
Sample Critical Incidents Report 240
Questions to Consider When Developing a
Performance Evaluation System 244
Typical Compensable Factors 256
Montgomery County, Maryland, Leadership Competencies 328
Leadership Competencies Expected of
Senior Executive Service Executives 330
National Labor Relations Board Jurisdictional Standards in
Effect as of July 1990 342
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EXERCISES
1.1
2.1
2.2
3.1
3.2
4.1
4.2
5.1
5.2
6.1
6.2
7.1
7.2
8.1
8.2
9.1
Art Museums Are Looking for Leaders 29
Nature Conservancy’s Leader Abruptly Steps Down 52
Travis County, Texas, Facing a Brain Drain 53
A Muslim Woman’s Right to Wear a Head Scarf at Work 84
State and Local Laws on Human Resources Management 85
Susan-Steve Stanton 112
Tattoos and Piercing: Are They Acceptable in Public Safety
Positions? 113
Voluntourism 141
Screening for Terrorists 142
General Manager and Chief Executive of the Walter E. Washington
Convention Center Resigns 177
Caseworkers Often Face Tremendous Difficulties 178
Recruiting Medical Personnel in Southwest Florida 211
Boomerang Database Used to Recruit Retirees Back to
the Labor Force 213
The HR Director Resigns Immediately 248
Why Executive Directors Get Fired 249
Compensation and Retirement Benefits from the United Way
of Metropolitan Atlanta 281
xiii
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xiv
Exercises
9.2
10.1
10.2
11.1
11.2
12.1
12.2
13.1
13.2
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Are There Too Few Troopers for Safety? 282
Supporting Adoption in Carmel, Indiana 304
Depression Reported by 7 Percent of the Workforce 305
Improving Leadership Prospects for Women at Jewish Charities
Training First Responders in Water Rescue 337
No Union-Related E-Mail 370
Teachers at New York City Catholic Schools Strike 371
No-E-Mail Fridays 392
Tracking Workers Through Technology 393
336
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PREFACE
S
trategic human resources management (SHRM) is the integration
of human resources management (HRM) with the strategic mission
of the organization. It adapts human resources policies and practices to
meet the challenges that agencies face today, as well as those they will face
in the future. What was written in the previous editions of this book is
just as important today. Human resources management departments must
take a proactive role in guiding and supporting agency efforts to meet the
changing demands of their external and internal environments.
Government and nonprofit organizations are facing many challenges:
the tight budgets brought about by declines in tax revenues, declines in
consumer spending, increases in unemployment, and federal government
obligations in Iraq have reduced the federal dollars flowing to programs
in state and local government programs. President Bush has proposed
reducing Community Development Block Grants, Child Care Development Block Grants, Social Services Block Grants, the Low-Income Home
Energy Assistance Program, and other programs. Also proposed are cuts
to Medicare and Medicaid, as well as a reduction in funding for the Corporation for Public Broadcasting and the National Endowment for the
Arts ( Jensen & Perry, 2008). Reductions in public dollars and private donations have required public and nonprofit organizations to lay off staff,
even as demands for many services continue to increase. These changes
xv
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xvi
Preface
have occurred simultaneously with increasing demands for efficient and
effective services.
The new public service has become more diverse. Changing demographics have resulted in an increase in the number of employees who are
women, members of ethnic and racial minorities, persons with disabilities, and employees from different generations with different knowledge,
skills, abilities, and other characteristics (KSAOCs). Graduates of schools
of public policy and administration are likely to take jobs in the nonprofit
sector and show a greater interest in seeking employment opportunities in
the private sector. Today’s graduates are moving across the three sectors,
looking for challenging work and the opportunity to learn new skills. Master of business administration graduates are also looking for challenging
work. This presents an opportunity and challenge for public and nonprofit
organizations to design an HRM system that will recruit individuals wanting a challenge, keep them motivated, and enable them to make a difference through their work.
Changes in information technology and automation have led to the
restructuring of many public and nonprofit agencies. Advances in technology have enabled employees to work from their homes, provided opportunities for more flexible work hours, and increased the employment
options for disabled individuals. Computer networks, videoconferencing,
and streaming video have changed communication patterns. Information technology is increasingly being used not only to automate routine
tasks, but also to restructure and integrate service delivery procedures and
programs.
Organizations must do more than just adapt to internal changes. They
must also seek better ways to meet the expectations of citizens, clients,
funding sources, foundations, elected officials, boards of directors, interest
groups, and the media.
The public sector is becoming less involved in direct service delivery. Government at all levels is increasingly relying on nonprofit and private sector organizations to provide services. Government work is being
implemented through a network of contracting, intergovernmental
grants, vouchers, tax credits, regulations, and other indirect administrative approaches. While the federal government in particular is reducing
the number of individuals it directly employs, it continues to need a sizable
“shadow” to accomplish its mission (Light, 1999). These employees are
part of the shadow that is created when public goods and services are provided through private, nonprofit, or state and local entities. According to
Light, many of the nation’s most challenging public service jobs are now
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Preface
xvii
found outside the federal government, not inside it. Kettl (2002, p. 120)
notes the following:
Government has come to rely heavily on for-profit and nonprofit
organizations for delivering goods and services ranging from antimissile
systems to welfare reform. These changes have scarcely obliterated the
role of Congress, the president and the courts. State and local governments have become even livelier. Rather, these changes have layered
new challenges on top of the old ones, under which the system already
mightily struggles. New process-based problems have emerged as well:
How can hierarchical bureaucracies, created with the presumption that
they directly deliver services, cope with services increasingly delivered
through multiple (often nongovernmental) partners? Budgetary control
processes that work well for traditional bureaucracies often prove less
effective in gathering information from nongovernmental partners
or in shaping their incentives. Personnel systems designed to insulate
government from political interference have proven less adaptive to
these new challenges, especially in creating a cohort of executives skilled
in managing indirect government.
Declining revenues combined with demographic changes, changes
in employees’ values, and the need to retain effective workers are some
of the forces that have compelled public and nonprofit organizations
to become concerned with their very survival. These changes require
a more flexible and skilled workforce. To survive, organizations need
employees with new skills. Hard Truths/Tough Choices (National Commission on the State and Local Public Service, 1993) identified five skill areas
that the public manager needs: competency in team building, competency in communication, competency in involving employees, commitment to cultural awareness, and commitment to quality. These skills have
HRM implications for employee recruitment, selection, and training.
Public and nonprofit sector jobs are increasingly professional in nature,
requiring higher levels of education. At the same time, there is a decrease
in jobs that are physically demanding. Employees in public and nonprofit
agencies often deal with a variety of people, many of whom have a stake
in the agency. Taxpayers, clients, customers, elected officials, donors,
contractors, board members, and special interest groups are just some
of the stakeholders concerned about agency performance. Employers
must ask themselves how to meet the public’s objectives and satisfy the
organization’s stakeholders.
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More recently there has been an emphasis on human capital: a
recognition that employees are an agency’s most important organizational asset. Workers define its character, affect its capacity to perform, and
represent the knowledge base of the organization. Despite this acknowledgment, it has been noted that there is little strategic human capital
management being executed in federal agencies. Reports indicate that the
following activities are lacking: (1) leadership, continuity, and succession
planning; (2) strategic human capital planning and organizational alignment; (3) acquiring and developing staffs whose size, skills, and use meet
agency needs; and (4) creating results-oriented organizational cultures. All
have been identified as challenges facing the federal government (General
Accounting Office 2001a, 2001b, 2002a). State and local governments and
nonprofit and for-profit organizations are facing these same human capital challenges (Adams, 2006; Kunreuther, 2005; Cornelius, Corvington,
& Ruesga, 2008; Hall, 2006a; Halpern, 2006; Light, 1998, 2000a,
2000b; Partnerships for Public Service, 2005; Brockbank, Johnson, &
Ulrich, 2008).
To be strategic partners, HRM departments must possess high levels of professional and business knowledge. HRM must establish links to
enhancing organizational performance and be able to demonstrate on a
continuing basis how its activities contribute to the organization’s success
and effectiveness.
Public and nonprofit agencies must be flexible and attuned to the
needs of society. They must seek to improve the quality of their services by
engaging in SHRM. Recruitment and selection strategies must be innovative, career development opportunities must be provided, work assignments
must be flexible, and policies must reward superior performers and hold
marginal employees accountable. These policies must be developed and
administered according to the principles of equity, efficiency, and effectiveness. Performance standards must be designed to promote the goals and
values of organizations.
Historically, HRM has been seen as Cinderella—on the periphery, not
integrated into the core of agency functions. Fitz-enz (1996, p. 3) notes
that historically personnel departments were either dumping grounds for
“organizational casualties”—likable employees who were not proficient
in other tasks—or staffed with employees from line functions, neither of
whom had any formal education in personnel administration. He also attributes the peripheral relationship of HRM departments to other functional
departments to the fact that for years, it was believed that organizations
could not measure or quantify what the HRM department accomplished
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or contributed to the organization’s bottom line. HRM departments did
not speak in financial terms, the common denominator of business language, and were not very good at communicating the relationship between
successful H
