Understanding business 10th chapter 11 human resource management finding and keeping the best employees

HUMAN RESOURCE MANAGEMENT HRM• Human Resource Management -- The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compens

Chapter Eleven

Human Resource Management:

Finding and Keeping the Best

Employees

HUMAN RESOURCE MANAGEMENT (HRM)

• Human Resource Management The process

of determining human resource needs and then

recruiting, selecting, developing, motivating,

evaluating, compensating and scheduling employees

to achieve organizational goals

• HRM’s role has grown because:

1 Increased recognition of employees as a

resource.

HUMAN RESOURCE MANAGEMENT

HR & Legal Issues

CIVIL RIGHTS ACT of 1964

Title VII prohibits discrimination in hiring, firing,

compensation, apprenticeships, training, terms,

conditions or privileges of employment based on:

1972 EQUAL EMPLOYMENT OPPORTUNITY ACT (EEOA)

• Strengthened the Equal Employment Opportunity Commission (EEOC)

guidelines for acceptable employer conduct.

• EEOC could mandate specific recordkeeping

procedures

CONTROVERSIAL PROCEDURES

of the EEOC

• Affirmative Action Policy designed to “right past wrongs” by increasing opportunities for minorities and women in the workplace.

• Reverse Discrimination Discrimination against whites or males in hiring or promoting.

These policies have been at the center of many debates and lawsuits

CIVIL RIGHTS ACT of 1991

and OFCCP

• Civil Rights Act of 1991

- Amended Title VII and gave victims of

discrimination the right to a jury trial and possible damages.

• Office of Federal Contract Compliance Programs (OFCCP)

- Ensures that employers doing business with the

federal government comply with the

LAWS PROTECTING EMPLOYEES with DISABILITIES

Americans with Disabilities Act of 1990 (ADA)

- Requires employers to give applicants with physical or

mental disabilities the same consideration for employment as

people without disabilities.

- Passage in 2008 of Americans with

Disabilities Amendments Act

expanded protection.

- 2011 saw new regulations that widen

the range of disabilities covered by

the ADA and shift the burden of proof

of disability from employees to

employers.

AGE DISCRIMINATION in EMPLOYMENT ACT (ADEA)

Age Discrimination in Employment Act (ADEA)

Protects workers 40 and

older from employment and

MINDING the LAW in HRM

and act accordingly

HRM

• Court cases highlight that

sometimes it’s proper to go

beyond providing equal rights

• Changes in law and legislation

occur regularly

HUMAN RESOURCE MANAGEMENT

HR Must Plan for the Future

STEPS in the HUMAN RESOURCE

PLANNING PROCESS

1 Preparing a human resource

inventory of employees.

2 Preparing a job analysis

3 Assessing future human

WHAT’S a JOB ANALYSIS?

• Job Analysis A study of what employees

who holds various job titles do

• Job Description Specifies the objectives of the

job, the type of work, the responsibilities and duties, working conditions and relationship to other jobs

• Job Specifications A summary of the minimal

education and skills needed to do a particular job.

HUMAN RESOURCE MANAGEMENT (HRM)

The process of determining human resource needs

and then recruiting, selecting, developing,

motivating, evaluating, compensating and

scheduling employees to achieve organizational

goals

RECRUITING EMPLOYEES

• Recruitment The set of activities for obtaining the

right number of qualified people at the right time

• Human resource managers use both internal and

external sources to recruit employees.

recruit employees

EMPLOYEE SOURCES

THE HIRING PROCESS:

SELECTION

• Selection The process of gathering information

and deciding who should be hired, under legal

guidelines, to fit the needs of the organization and

individuals

STEPS in the SELECTION PROCESS

1 Obtaining complete application forms

2 Conducting initial and follow-up interviews

3 Giving employment tests

4 Conducting background investigations

5 Obtaining results from physical exams

6 Establishing trial (probationary) work

periods

CONTINGENT WORKERS

HIRING CONTINGENT WORKERS

• Contingent Workers Workers who do not have

an expectation of regular, full-time employment.

• Include part-time and temporary workers, seasonal

workers, independent contractors, interns and co-op students

• There are about 5.7 million contingent workers in the U.S

• Majority of contingent workers are under 25

WHY HIRE CONTINGENT WORKERS?

• Companies hire contingent workers:

- When full-time workers are on leave

- During periods of peak demand

- In uncertain economic times

- To save on employee benefits

- To screen candidates for future employment

TRAINING and DEVELOPING

EMPLOYEES

TRAINING and DEVELOPING

EMPLOYEES

Training and Development All attempts to

improve productivity by increasing an employee’s

ability to perform.

• Training – short-term skill oriented.

• Development – long-term career oriented.

MOST COMMONLY USED TRAINING

and DEVELOPMENT ACTIVITIES

DEVELOPING EFFECTIVE

MANAGERS

• Management Development The process of

training and educating employees to become good

managers and tracking the progress of their skills

USING NETWORKS and

MENTORING

• Networking Establishing and maintaining

contacts with key managers in and out of the

organization and using those contacts to develop

relationships.

• Mentors Managers who supervise, coach and

guide selected lower-level employees by acting as

corporate sponsors.

• Networking and mentoring go beyond the work

environment

APPRAISING PERFORMANCE

ON THE JOB

APPRAISING PERFORMANCE

on the JOB

• Performance Appraisal An evaluation that

measures employee performance against established standards in order to make decisions about

promotions, compensation, training or termination.

APPRAISING PERFORMANCE

on the JOB

A 360-degree review gives

managers opinions from

people at different levels

to get a more accurate

idea of the worker’s ability

MAJOR USES of PERFORMANCE APPRAISALS

• Identify training needs

• Use as a promotion tool

• Recognize worker’s achievements

• Evaluate the firm’s hiring process

• Judge the effectiveness of the firm’s orientation

process

• Use as a basis for possible termination of a

COMPENSATION

COMPENSATION PROGRAMS

• A managed and competitive compensation

program helps:

- Attract the kinds of employees the business needs.

- Build employee incentive to work efficiently and

productively.

- Keep valued employees from going to competitors or

starting their own firm.

- Provide employee financial security through wages and fringe benefits.

TYPES of PAY SYSTEMS

COMPENSATING TEAMS

• Team-based pay programs are more challenging

than individual pay systems

FRINGE BENEFITS on the JOB

• Fringe Benefits Sick leave, vacation pay, pension

and health plans that provide additional

compensation to employees beyond base wages.

• In 1929, Fringe benefits accounted for less than 2% of payroll cost Today it’s about 30%

• Healthcare has been the

most significant increase

in fringe benefit cost

The RANGE of FRINGE BENEFITS

• Fringe benefits include incentives like:

- Company cars

- Country club memberships

- Recreation facilities

- Special home mortgage rates

- Paid and unpaid sabbaticals

- Day-care and elder care services

- Dental and eye care

SPECIAL PERKS at DREAMWORKS

• Free DVDs and screenings of

current films

• Free breakfast and lunch plus

dinner when working late

• Free snack rooms on every

floor

• Profit sharing

• Ping-Pong and poker

tournaments during work

CAFETERIA-STYLE and

SOFT BENEFITS

• Cafeteria-Style Fringe Benefits Allow

employees to choose the benefits they want (up to a certain dollar amount).

• Soft Benefits include :

- Onsite haircuts and shoe repair

- Concierge services

- Free meals at work

- Doggie daycare

FLEXIBLE SCHEDULING PLANS

USING FLEXTIME PLANS

• Flextime Plan Gives employees some freedom to choose which hours to work as long as they work the

required number of hours

• Most flextime plans require Core Time When all

employees are expected to be at their job stations.

• Flextime is hard to incorporate into shift work and

managers have to work longer hours.

COMPRESSED WORK WEEKS

• Employees enjoy long

weekends after working long

days

• Productivity is a concern

• Nurses and firefighters often

work compressed work

weeks

JOB SHARING

• Job Sharing Lets two or more part-time

employees share on a full-time job.

• Provides employment opportunities for many

people who cannot work full time

• Workers tend to be enthusiastic and productive

• Absenteeism and tardiness are reduced

• Employers can schedule part-time workers in

MOVEMENT of EMPLOYEES

• Employees are promoted

• Employees are reassigned.

• Employees are terminated due

to performance or economic

situations.

• Employees resign

• Employees retire.

TERMINATING EMPLOYEES

• As the economic crisis grew, more and more

employers have had to lay off employees

• Even when the economy is booming, employers

are hesitant to hire full-time workers because of

the cost of termination

• Firing employees is more

difficult for employers

because of laws preventing

termination for certain acts