Business a changing world 7e by ferrell chap011

Managing Human ResourcesHuman Resources Management – all the activities involved in determining the organization’s needs for human resources and acquiring, training, and compensating

Business in a Changing World

Chapter 11

Managing Human Resources

Amadeus Consulting : Where Employees are the Company

Lisa Calkins and John Basso have created a

company for which people are motivated to

work for the long term.

Managing Human Resources

Human Resources Management – all the

activities involved in determining the

organization’s needs for human resources and

acquiring, training, and compensating people to fill those needs.

Increasing in importance – Employee Concerns:

What is the Primary Reason you Accepted

Your Job?

Source: Snapshots, USA Today, March 13, 2008, p B1

•Job analysis – systematically determining pertinent

information about a job (tasks, abilities, knowledge, skills)

•Job description formal & written specifications of the job

(title, tasks, relationships, skills, duties, responsibilities).

•Job specification – description of the job qualifications

Planning – Human Resource Needs

•Recruiting – the formation of a pool of qualified job candidates

from which management selects employees.

•Online - Monster.com ; Hotjobs.com

Employee Recruiting & Selection

•Selection – the process of collecting information about

applicants and using information to make hiring decisions

•Application

•First stage of the selection process

•Name, address, telephone

•Education, previous work experience, references

•Qualifications for the position

Employee Recruiting & Selection

•Interview

•2nd phase of selection

•Detailed information on candidate (applicant)

•Attitudes toward job

Employee Recruiting & Selection

•Testing

•Ability and performance testing

•Aptitude, IQ, Personality tests

•Applicant assessment

•Goodness of “fit”

•Myers-Briggs Type Indicator

Employee Recruiting & Selection

Top 10 Interview Questions

Employee Recruiting & Selection

Recruiting & Selecting Employees

Top 10 Mistakes Made in Interviewing

1 Not taking the interview seriously

2 Not dressing appropriately (dressing down)

3 Not appropriately discussing experience and education

4 Being too modest about one’s accomplishments

5 Talking too much

6 Too much concern about compensation

7 Speaking negatively of a former employer

8 Not asking enough or appropriate questions

9 Not showing the proper enthusiasm level

10 Not engaging in appropriate follow-up to interview

Recruiting & Selecting Employees

Sampling of Psychological Tests

Legal Issues in Recruiting & Selection

Title VII of the Civil Rights Act

•Prohibits discrimination in employment

•Equal Employment Opportunity Commission (EEOC)

•Tests must be validated

Legal Issues in Recruiting & Selection

Training & Development

Training teaching employees to do specific job

tasks through classroom development or on-the-job experience

Development – training that augments the skills

Training & Development

HiPiHi , Novo King, UOneNet – Stimulate new training concepts

Performance Characteristics

Turnover – employees voluntarily leave (quit); involuntary leave

(fired) Management must replace workers.

Promotion – advancement to higher-level job with increased

authority, responsibility, and pay

Transfer – move to another job within the company usually at same or

similar level and wage rate

Compensating the Workforce

Reasons Employees Stay in Their Current Jobs

Compensating the Workforce

Designing fair compensation plans

Wage/salary survey – study indicating how much

compensation comparable firms are paying for specific jobs that firms have in common

Compensating the Workforce

Financial Compensation:

Wages – financial rewards based on hours worked and/or level of output achieved.

Managing the workforce: Costco Versus Wal-Mart

Element Costco Wal-Mart

# of Employees 100,000 U.S.

137,000 (International) 1,420,000 U.S.635,000 (International) Sales $64.4 billion $378.79 billion

Average hourly wage $17.25 $10.11

% of employees w/ health plans 82% 80%

Turnover (annually) 17% 40%

Piece wages – based on level of output

achieved Motivate employees to increase

output.

Commission – incentive system that pays a

fixed dollar amount or a percentage of the

employee’s sales Motivates employees to

sell as much as possible.

Salary – financial reward calculated on weekly,

monthly, or annual basis (White collar

employees, executives, professionals).

Bonuses – monetary rewards provided by firm for

exceptional performance or incentive to increase

productivity

Profit sharing – a percentage of company

profits distributed to employees, sometimes

in the form of stock

ESOP– Employee Stock Ownership Plan

Company distributes shares to employees as

a form of compensation

What are benefits?

Non-financial forms of compensation:

•Pension plans

•Insurance (health, disability, life)

•Child & elder care

Bureau of Labor Statistics (2008)

Total compensation = $28.11 per hour

•Wages/salaries = 69.8%

•Benefits = 30.2%

•Taxes, FICA, etc = 7.9%

EAP – Employee Assistance Program –

Counseling and assistance for employees’

personal problems that may negatively impact

job performance.

•Extra compensation (bonuses)

Soft Benefits Perks – work-life balance

•On-site child care

•Spas

•Food service

Fringe Benefits

Cafeteria Benefit Plans – a set financial amount

allocated to employees which allows for selection

of benefits most appropriate to each employee

Managing Unionized Employees

Labor union – employee organization formed to

deal with employers for achieving better pay,

hours, and working conditions

Managing Unionized Employees

Collective Bargaining – negotiation process where

management and unions reach agreement on

wages, hours, and working conditions for the

bargaining unit (employees represented by union)

Managing Unionized Employees

Labor contract – the formal, written document

that stipulates the relationship between union

and management for a specific time period The

outcome of collective bargaining

Unionized Employees

•12% of workforce

•Unionized workers earn more per hour

•Concentrated in certain industries

•automotive manufacturing

•steel production

•Construction

•Public-sector (government)

Collective

Bargaining

Process

Labor & Management Disputes

Pickets – public protests against the actions of the

company or management.

Strike – employee walkouts; work stoppage Most

efective economic weapon for unions in private

sector.

Boycott – attempt to keep people form purchasing the

company’s products.

Lockout – management’s version of the strike Worksite

is closed to prevent employees from working.

Outside Resolution of Disputes

Conciliation – 3rd party intervention so that

management & labor continue talks.

Mediation – 3rd party helps to bring labor

and management together to resolve

disputes

Arbitration – 3rd party settles dispute by

imposing solution that is legally binding

Workforce Diversity

Population by Race (in thousands)

Ethnic Group Total Increase 2000-04

Benefits of Valuing Workforce

Diversity

• More productive use of human

resources

• Reduced conflict among employees

• More productive working relationships

• Increased commitment to organizational

goals

• Increased innovation and creativity

• Increased ability to serve the needs of

diverse customers

Affirmative Action

Legally mandated plans that try to increase job

opportunities for minority groups by:

•Analyzing the current pool of workers

•Identifying areas where women and minorities are

underrepresented

•Establishing specific hiring and promotion goals to

resolve the discrepancy.

Prohibits organizations from setting hiring quotas