Understanding business 10th chapter 11b human resource mgt

Human Resource Management: Finding and Keeping the Best Employees Chapter 11... HUMAN RESOURCE MANAGEMENT HRM• Human Resource Management -- The process of determining human resource ne

Human Resource Management:

Finding and Keeping the

Best Employees

Chapter 11

1 Explain the importance of human resource

management, and describe current issues in managing human resources.

2 Illustrate the effects of legislation on human

resource management.

3 Summarize the five steps in human resource

planning.

4 Describe methods that companies use to recruit

new employees, and explain some of the issues that make recruitment challenging.

LEARNING GOALS

Chapter Eleven

5 Outline the six steps in selecting employees.

6 Illustrate employee training and development

methods.

7 Trace the six steps in appraising employee

performance.

8 Summarize the objectives of employee

compensation programs, and evaluate pay

LEARNING GOALS

Chapter Eleven

9 Demonstrate how managers use scheduling plans

to adapt to workers’ needs.

10 Describe how employees can move through a

company: promotion, reassignment, termination, and retirement.

LEARNING GOALS

Chapter Eleven

MARK PARKER

Nike

• Started as a shoe designer and rose to CEO in 2006

• The 7,000 workers at Nike’s

headquarters have access to two gyms, an Olympic-size pool, five restaurants, and have free on-site childcare

• Named one of the 100 Best Places to Work in 2006,

Profile

This company is one of the largest U.S steel

producers It pays its teams bonuses that are calculated on quality—tons of steel that go out the door with no defects There are no limits on bonuses a team can earn; they usually average around $20,000 per employee each year

Name that company!

NAME that COMPANY

Chapter Eleven

HUMAN RESOURCE MANAGEMENT

Working with

People is Just

the Beginning

LG1

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 of:

1 Increased recognition of employees as a

UNCOVERING the SECRETS of HRM

Things Your HR Manager Doesn’t Tell You

• We’re short-staffed and under pressure too

• We’re not always going to be able to help in the

way you hope

• We can help you move up the career ladder

• What you post on Facebook can get you fired

LG1

Working with

People is Just

the Beginning

DEVELOPING the FIRM’S ULTIMATE RESOURCE

• Service and high-tech manufacturing requires

employees with highly technical job skills

Developing the

Firm’s Ultimate

Resource

• Such workers are scarce,

making recruiting and retention more important and more difficult

• The human resource job is

now the job of all managers

in an organization

LG1

CHALLENGES in FINDING HIGH-LEVEL WORKERS

• A shortage of trained workers in key areas

• Worker shortage in skilled trades

• An increasing number of baby boomers who

delay retirement

• A declining economy with fewer full-time jobs

• Expanding global markets with low-wage workers

• Increasing benefit demands and benefit costs

The Human

Resource

Challenge

LG1

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)

• Gave EEOC the right to issue workplace

guidelines for acceptable employer conduct

• EEOC could mandate specific recordkeeping

CONTROVERSIAL PROCEDURES

of the EEOC

• Affirmative Action Policy designed to “right past

wrongs” by increasing opportunities for minorities and women.

• Reverse Discrimination Discriminating against

members of a dominant or majority group (e.g whites

or males) usually as a result of policies designed to correct previous discrimination against minority or disadvantaged groups.

• This policy has been at the center of many

debates and lawsuits

LG2

Laws Affecting

Human Resource

Management

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 nondiscrimination and affirmative action laws.

LG2

Laws Affecting

Human Resource

Management

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

- 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.

LG2

AGE DISCRIMINATION in EMPLOYMENT ACT (ADEA)

Age Discrimination in Employment Act (ADEA)

- Protects workers 40 and over from employment and workplace

discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments and

MINDING the LAW in HRM

• Employers must know the law

and act accordingly

• Legislation affects all areas of

HRM

• Court cases highlight that

sometimes it’s proper to go beyond providing equal rights

• Changes in law and legislation

occur regularly

Effects of

Legislation

LG2

The MILLION WOMAN SUIT

AGAINST WALMART

(Legal Briefcase)

• Over 1 million women filed suit against Walmart

for gender dominance in the store’s management

ranks

• The case charged that not only did the company

leapfrog over women for leadership roles, it

engaged in pay inequality and harassment

• The Supreme Court dismissed the class-action

suit

PROGRESS ASSESSMENT

• What’s human resource management?

• What did Title VII of the Civil Rights Act of 1964

achieve?

• What’s the EEOC and what was the intention of

affirmative action?

• What does accommodations mean in the

Americans with Disabilities Act of 1990?

Progress

Assessment

HUMAN RESOURCE PLANNING

2) Preparing a job analysis

3) Assessing future human

WHAT’S a JOB ANALYSIS?

• Job Analysis – A study of what employees do who

hold various job titles

• Job Description – A summary of 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 minimum

qualifications needed to do a particular job.

LG3

Determining a

Firm’s Human

Resource Needs

• 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.

• Small businesses often make use of web

sources like CareerBuilder and Monster to

recruit employees

LG4

IT’S NOT EASY BEING SMALL

(Spotlight on Small Business)

• To survive, small businesses must recruit and

retain qualified workers

• Unfortunately, they lack the resources of larger

companies to compete for employees

• Small businesses need innovations like:

- Letting staff help recruit and select candidates.

- “Test-drive” an employee.

- Seek out publicity through local media.

Selection The process of

gathering information and

deciding who should be

hired, under legal guidelines,

to serve the best interest of

the individual and the

organization

LG5

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

HIRING CONTINGENT WORKERS

Hiring

Contingent

Workers

Contingent Workers 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

LG5

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

LG5

Hiring

Contingent

Workers

STUDENTS and the CONTINGENT WORKFORCE

• With temporary staffing agencies, companies

have easier access to screened workers

• Worker information is entered into their

• When students come back

to town, they can call the agency and ask them to put their names into the system for work

ARE UNPAID INTERNS

TOO INTERRED?

(Making Ethical Decisions)

• With few entry-level positions available, interns

can end up in an unpaid position for as long as

six months with no chance of advancement

• Some businesses give interns lots of

responsibility; a Toronto paper fired all paid staff

and replaced them with unpaid interns

• Is it ethical for companies to use unpaid interns if

they know they don’t have jobs to offer or if the

unpaid internships replace paid jobs?

• What are the six steps in the selection process?

• Who is considered a contingent worker, and why

do company hire such workers?

TRAINING and DEVELOPING

Training and Development All attempts to

improve productivity by increasing an employee’s ability

to perform.

•Training focuses on short-term skills

•Development focuses on long-term abilities

LG6

THREE STEPS of TRAINING

and DEVELOPMENT

1 Assessing organization needs and employee

skills to develop appropriate training needs

2 Designing training activities to meet identified

needs

3 Evaluating the

training’s effectiveness

MOST COMMONLY USED TRAINING and DEVELOPMENT ACTIVITIES

DEVELOPING EFFECTIVE

MANAGERS

Management

Development

Management Development The process of

training and educating employees to become good

managers and monitoring the progress of their skills

WHY GOOD EMPLOYEES QUIT

Source: Robert Half International

LG6

Management

Development

USING NETWORKS and

MENTORING

Networking

• 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

LG6

Performance Appraisal An evaluation that

measures employee performance against established

standards in order to make decisions about promotions,

compensation, training or termination.

• A 360-degree review

gives managers opinions from people at different levels to get a more accurate idea of the worker’s ability

LG7

SIX STEPS of PERFORMANCE

APPRAISALS

1 Establishing performance standards that are

understandable, measurable and reasonable

2 Clearly communicating those standards

3 Evaluating performance against the standards

4 Discussing the results with employees

5 Taking corrective action

6 Using the results to make decisions

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

PERFORMANCE APPRAISAL

MISTAKES

Common Problems Made While Reviewing Employees

• Contrast Effect - Comparing one employee to

another.

• Halo/Horn Effect - Allowing performances in

specific areas to unfairly influence overall performance evaluation.

• Similar-to-Me Effect - Generosity to those you feel

are more like you.

PROGRESS ASSESSMENT

Progress

Assessment

• Name and describe four training techniques

• What’s the primary purpose of a performance

appraisal?

• What are the six steps in a performance

appraisal?

COMPENSATION PROGRAMS

Compensating

Employees:

Attracting and

Keeping the Best

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.

- Maintain a competitive market position by keeping costs

low due to high productivity from a satisfied workforce.

- Provide employee financial security through wages and

LG8

TYPES of PAY SYSTEMS

COMPENSATING TEAMS

Compensating

Teams

• Team-based pay programs are more challenging

than individual pay systems

• The two most common methods for teams

involve:

- Skill-Based: Pay is increased as skill increases

(Eastman Chemical uses this system.)

- Gain-Sharing: Pay is increased as performance increases (Nucor Steel uses this system.)

LG8

FRINGE BENEFITS on the JOB

Fringe Benefits

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

LG8

HEALTHCARE, a PERK NOT

to be TAKEN LIGHTLY

• Compare all the costs, not

just premiums

• Take part in wellness

programs The average wellness bonus is $386!

• Order generic drugs when

you need prescriptions filled

LG8

Fringe Benefits

WHO PAYS for EMPLOYEE BENEFITS?

• 74% of full-time workers

have employee-provided retirement plans

• 39% of part-time workers

have employee-provided retirement plans

• 71% of workers have

medical care benefits

LG8

Fringe Benefits

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

- Legal counseling

LG8

Fringe Benefits

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 hours

LG8

Fringe Benefits

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

LET’S GO to the BEACH!

Average Vacation Days by Country

LG8

Fringe Benefits

WORKING WORLDWIDE

(Reaching Beyond Our Borders)

• Managers need to understand the business

needs of each country they operate in

- Compensation: Conversion to foreign currencies and

special allowances often are needed.

- Health and Pension Standards: Benefits are different

country-by-country.

- Paid Time Off: Vacation time, sick and personal leave

vary.

- Taxation: Tax policies vary.

- Communication: Employees can feel disconnected in

FLEXIBLE SCHEDULING PLANS

• Flextime Plan Gives employees some freedom to choose which hours to work as long as they work the required number of hours or complete their tasks.

• Compressed Work Week Employees work the

full number of work hours, but in fewer than the standard number of days.

• Job Sharing Lets two or more part-time

employees share on a full-time job.

LG9

Flextime Plans