*

*
*
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Human Resource *

CHAPTER
Management:
Finding and
Keeping the Best
Employees
11
* *
Nickels McHugh McHugh

1-1
McGraw-Hill/Irwin
11-1
Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights
*
* The Nature of Human
*
Resources Management
(HRM)
• HRM:
HRM:
• The process of determining human
resources needs then recruiting ,
selecting d, developing and motivating ,
evaluating , compensating scheduling
employees to achieve organizational
objective
• All activities involved in determining an
organization’s human resource needs,
as well as acquiring, training, and
compensating people to fill those needs.
11-2
*
* develop the resources
*
•As shift from manufacturing to
service
•Technology oriented
•Retaining but not by doing the
same job
•Peoples idea – change the
organization
•More functional department
11-3
*
* HR Challenges
*
• Shortages • Attitudes Toward
Work
• Unskilled Workers
• Undereducated • Continued
Workers Downsizing
• Shift in Workforce • Overseas Labor
Composition Pools
• Laws & Regulations • Customized
Benefits
• Single-Parent &
Two-Income • Employees With
Families New Concerns
• Decreased Loyalty
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*
* Planning for HR Needs
*
•Typical HR Issues:
•How many employees?
•What skills are needed to
satisfy plans?
•Availability of people in the
workforce?
•What qualifications must
employees have?
•Cost of staffing?
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*
* Determining HR Needs
*
1.Prepare HR 3.Assess HR
Inventory Demand
2.Prepare Job 4.Assess HR
Analysis Supply
• Job 5.Establish
Description Strategic
• Job Plan
Specificatio
n
11-6
*
*
* Processes of Job Analysis
Job Analysis: The determination through
observation and study, of pertinent
information about a job, including specific
tasks and necessary abilities, knowledge, and
skills.
Job Description: The formal, written description
of a specific job, such as the job title, tasks to
be performed, physical and mental skills
required, duties, and responsibilities.
Job Specification:The written description of the
qualifications necessary for a specific job,
such as education, experience, personal
characteristics, and physical characteristics.
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*
* Recruitment
*
•The set of activities used to obtain
sufficient number of the right people
at right time
• Recruitment is very difficult for
several reasons
•Organization policies, union regulation,
Low wages, influence from outside
•Emphasis on corporate culture,
teamwork and participative management
•Necessary skills are not available

11-8
*
* Recruiting New
* Employees
Recruiting Pool

Internal Sources External Sources

“consultants”
Current Employees
Transfer , promotions , employee Universities
recommendations, retrained employee ,
department reorganization Classified adds

Less expensive , holds employee

morale
11-9
*
* Selection
*
•The process of gathering information and
deciding who should be hired , under legal
guidelines for the best interest of
individuals and the organization .
• the process is expensive because of
interview time , medical exam , training
cost unproductive time spent for learning
the jobs …..

11-10
*
* The Selection Process
*
Obtaining a complete Application Form
Conducting initial and follow up interview
Interview
Giving employment tests
Conducting background Investigation
Obtaining results from Physical exams
Establishing trial periods Probation

11-11
*
*
* contingent Workers
Contingent workers –
workers who do not have the expectations of regular
and full time employment
Why Companies Use contingent Workers
 Provide flexibility to meet demand fluctuations/
varying needs
 Fill-in for absentee workers
 Acquire specific expertise
 When quick service to customer is priority – and the
jobs requre minimum training
 Screen candidates for future employment
 Control increasing benefit cost
11-12
*
* Training & Development
*
All attempt to improve productivity by increasing an employees

ability to perform. Training focuses on short tem skill where

development focuses on long term abilities .

It includes three steps

1. Assess Needs of the organization and skill of the employees

2. Design Training activities to meet the identified need

3. Evaluate Effectiveness of the training

11-13
*
* Training Methods
*
1) Orientation – introduce new employees to the
organization, to fellow employees , their immediate
supervisor, policies , practices and objective of the
firm.
2) On-The-Job- training in which the employee
immediately begins his or her tasks and learns by
doing , or watches other for a while and then imitate
them , all right at the workplace
3) Apprenticeship- training program involving a period
during which a learner work alongside an experienced
employee to master the skill and procedure of a craft

11-14
*
* Training Methods
*
1) Off-The-Job- training that occurs away from the
workplace and consists of internal or external
programs to develop any of variety of skill or to foster
personal development
2) Online- training programs employee attend classes via
the internet
3) Vestibule- training done in school where employees
are taught on equipment similar to that used on job
4) Job Simulation- the use of equipment that duplicate
job conditions and tasks so that trainee can learn
skills before attempting them on job

11-15
* Management
*
* Development
• The process of training and educating
employees to become good manager and then
monitoring the progress of the managerial skill
over time
• On-The-Job Coaching- senior mg will assist a
lower level manager by teaching him or her
needed skills and generally providing direction
advice and helpful feedback
• Understudy position – selected employees work
as assistant to higher level manager and
participate in planning and other managerial
functions .
• Job Rotation- to learn about different function ,
managers are often given assignment in a
variety of departments
• Off-The-Job – periodically go to school or
seminars for a week or more Courses & Training-

11-16
*
* Network and mentor
*
•Network- - is the process of
establishing and maintaining contacts
with key managers in ones own
organization and other organization
and using these contacts to weave
strong relation ship that serve as a
informal development system
•Mentor- an experienced employee who
supervises coaches and guides lower
level employee by introducing them to
the right people and generally being
their organizational behavior

11-17
*
* Workforce Diversity
*
Diversity-Theparticipation of different genders,
races, ethnicities, nationalities, and abilities
in the workplace.

The Benefits of Workforce Diversity

• More productive use of a company’s human resources.
• Reduced conflict among employees of different
backgrounds as they learn to respect each other’s
differences.
• More productive working relationships.
• Increased commitment to and sharing of
organizational goals among diverse employees at all
organizational levels.
• Increased innovation and creativity.
• Increased ability to serve the needs of an increasingly
diverse customer base.

11-18
*
* Performance Appraisal
*
• An evaluation in which the performance level of employee
is measured against established standard to make
decisions about –promotion , compensation, additional
training or firing
• six steps
1. Establish Standards
2. Communicate Standards
3. Evaluate Performance
4. Discuss Results
5. Take Corrective Action
6. Use Results to Make Decisions

11-19
*
* Major Uses of
* Performance Appraisals
Identify Evaluate
training needs hiring process
Use as a Judge
promotion tool effectiveness
of orientation
Recognize process
workers’
achievements Use as a basis
for terminating
workers

11-20
*
* Compensation & Benefits
* Program Objectives
•Attract the right people
•Employee incentives
•Retain valued employees
•Maintain competitiveness
•Financial security for
employees

11-21
*
*
Compensating the
* Workforce
Salary Financial award calculated on a weekly,
monthly, or annual basis
Bonus An addition to regular compensation for
exceptional performance or in appreciation for
good work
Profit sharing Distribution of percentage of company
profit to employees; sometimes distribution is in
the form of company stock
Time Wages Financial award based on number of
hours worked
Piece Wages Financial award based on the output
attained by the employee
Commission Payment to an employee of a fixed
amount or a percentage of the employee’s sales

11-22
*
* Unusual Benefits
*
Offered to Workers
Steelcase- 1,200 acre camping and
recreational area
SYNOVUS- $50 bonus to take physical exam,
$200 reward if vital signs are OK
Los Angeles Dodgers- free ice cream for staff
if team is in first place
XEROX- Life Cycle Account or $1,000 to help
employees with major thresholds (buying
home, college)

11-23
*
* Employee
*
Retention
 Compensation  Flextime
- Individual - Core Time
- Team - Compressed
Fringe Benefits Workweek
Job-Sharing Home-Based
& Mobile Work

11-24
*
* Scheduling To Meet
* Employee Needs
•Flextime Plans
•Home-Based &
Other Mobile
Work

•Job-Sharing Plans

11-25
*
* HR Laws
*
• Civil Rights Act (1964)
• Age Discrimination Act (1967)
• Equal Employment Opportunity Act (1972)
• Affirmative Action
• Reverse Discrimination
• Civil Rights Act (1991)
• Americans with Disabilities Act (1990)
• Social Security Act (1935)
• Occupational Safety and Health Act (1970)
• Employment Retirement Income Security Act (1974)
11-26
*
*
Legal Issues in
* Recruiting
and Selecting New
• Fair Labor Standards Act (1938). Sets minimum
Employees
wages and overtime rates (for any time over 40
hours per week).
• Equal Pay Act (1963). Requires that men and
women who do equal work be paid equally.
• Title VII of the Civil rights Act (1964). Created
the Equal Employment Opportunity Commission
and mandates affirmative action programs.
Outlaws employment practices that discriminate
on the basis of sex, race, color, or national
origin.
• Equal Employment Opportunity Act (1972)
• Affirmative Action
• Reverse Discrimination

11-27
 *
* Legislation Regulating
* Hiring and
Compensation
• Age Discrimination in Employment Act (1967).
Outlaws employment practices that discriminate
Practices
on the basis of age, particularly mandatory
retirement before age 70.
• Americans with Disabilities Act. Prevents
discrimination against disabled persons.
Classifies AIDS as a handicap and prohibits using
a positive AIDS test as reason to deny
employment.
• Family Medical Leave Act (1993)

AST FACT:
Source: Annie
+ years after the Civil Rights Act was passed, Finnigan, “Different
corporate officers Strokes,”
areWorking Woman, April 2001, p. 42.
ly 8.2% African-American,5% Hispanic, and 12.5% women. 11-28
*
*
*
Managing Unionized
Labor
• Labor Unions:
• Employee
organizations
formed to deal
with
employers to
achieve better
pay, hours,
and working
conditions.

11-29
*
*
* Increasing Employee
Satisfaction
Benefits: % Offering
1. Child care assistance 91
2. Elder care programs 49
3. Flexible schedules 73
4. Adoption benefits 32
5. Personal/professional growth 78
6. Financial security programs 41
7. Group/discounted purchases 39
8. On-site personal services 57
9. Casual dress 66

Source: “Hewitt Study Shows Work/Life Benefits Continue to Grow Despite

Slowing Economy,” Hewitt Associates LLC press release, April 23, 2001.

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*
* Dispute Resolution
*
•Conciliation
•Mediation
•Arbitration

11-31
*
*
* Resolving Disputes:
Pressure Tactics of Labor
and Management

• Strikes
Labor’s Tactics • Picketing
• Boycott

Management’s • Lockout
Tactics • Strikebreakers/hirin
g
replacements

11-32
* The Collective Bargaining
* Process
*
Union prepares list of Management prepares list of
demands and concessions: demands and concessions:
Pay raises Scheduling
Overtime rates Hiring and firing
Benefits Pay cuts
Security Production standards
Seniority Discipline

Negotiation teams establish

rules and schedule meetings

Negotiation and compromise

Ratification of contract Rejection of contract

Union represents workers at Union tactics: Management tactics:

that work facility Strikes, Boycotts, Picketing Lockouts, Strikebreakers

Renegotiation of contract

11-33
*
*
* Managing Unionized
Labor
Collective Bargaining: Labor Contract:
• The negotiation process • The formal, written
through which document that spells
management and out the relationship
unions reach agreement between the union and
about compensation, management for a
working hours, and specified period of time
working conditions for a – usually two or three
bargaining unit. years.

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*
*
*
Employee Movement
oPromotion/Reassignment

oTermination

oRetirement

oResignation
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*
*
* Employee
• Promotion
Turnover
• Transfer
• Separation
• Resignation
• Retirement
• Termination
• Layoffs

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*
*
Comparing HR
* Approaches
Old HR Approach
New HR Approach
• Pay based on salary
grades & hourly rates • Pay based on achieving
goals
• Bonuses tied to unit &
company performance • Bonuses tied to
individual performance
• Benefits standard
throughout organization. • Benefits tailored to
• Mgmt. strategy modeled employee groups
on best practices at • Strategy based on
high-performing internal analysis of
companies. employees
• Career structures • Career structures
predetermined sculpted to individuals

Source: BusinessWeek, December 16, 2002

11-37
*
*
* Explore Your Career
Options

What are some of the factors

you consider most important in
deciding which job to accept
after graduation? Is your
decision about your college
major most influenced by
salary, hiring potential in
particular areas, or quality of
life issues?
11-38
*
* Implementing EEOC
* Which statements are T/F?
It’s OK to ask any applicant whether he or
she has an automobile.
she has an automobile.
It appropriate to ask applicants to attach
photographs.
photographs.
During interviews, it’s appropriate to
ask an applicant his/her age.
aIt’s appropriate to ask if an applicant is
naturalized citizen.
It’s not appropriate to ask an applicant
about post work experience.

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*
* Implementing EEOC (Cont’d)
* Which statements are T/F?
You may ask an applicant to indicate
what foreign languages he/she can
read, write or speak fluently.
It’s appropriate to ask an applicant if
he/she has an arrest record.
It’s OK to ask whether the applicant is
physically able to lift heavy weights.
It’s appropriate to ask women
questions about childcare
arrangements.
You have the right to ask an applicant
for names of work-related and personal
references.
11-40