HUMAN RESOURCE MANAGEMENT * * Working with People is Just the Beginning LG1 11-
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:
Increased recognition of employees as a valuable resource.
Changes in law that rewrote old workplace practices.
LG1 Working with People is Just the Beginning 11-
DEVELOPING the FIRM’S ULTIMATE RESOURCE * *
Service and high-tech manufacturing requires employees with highly technical job skills.
LG1 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.
CHALLENGES in FINDING HIGH-LEVEL WORKERS * *
A shortage of trained workers in key areas
Worker shortage in skilled trades
Changes in employee attitudes about work
A declining economy with fewer full-time jobs
Expanding global markets with low-wage workers
Increasing benefit demands and benefit costs
A decreased sense of employee loyalty
LG1 The Human Resource Challenge 11-
U.S. Equal Employment Laws 7- Table 7.1
U.S. Equal Employment Laws (cont.) 7- Table 7.1
CONTROVERSIAL PROCEDURES of 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.
This policy has been at the center of many debates and lawsuits.
LG2 Laws Affecting Human Resource Management 11-
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.
LG2 Effects of Legislation 11-
IMPLEMENTING EEOC WHICH STATEMENTS ARE T/F?
During interviews, it’s not appropriate to ask an applicant his/her age.
It’s not appropriate to ask an applicant about past work experience.
It’s OK to ask whether the applicant is physically able to lift heavy weights.
It’s appropriate to ask women questions about their children.
You have the right to ask an applicant for names of work-related and personal references.
It’s OK to ask any applicant whether he or she has an automobile.
HUMAN RESOURCE PLANNING PROCESS * * Determining a Firm’s Human Resource Needs LG3
Preparing a human resource inventory of employees.
Preparing a job analysis.
Assessing future human resource demand.
Assessing future labor supply.
Establishing a strategic plan.
WHAT’S a JOB ANALYSIS? * * Determining a Firm’s Human Resource Needs LG3
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.
RECRUITING EMPLOYEES * * Recruiting Employees from a Diverse Population LG4
Recruitment -- A ctivities for obtaining the right number of qualified people at the right time.
EMPLOYEE SOURCES * * LG4 Recruiting Employees from a Diverse Population 11-
SELECTION * * Selecting Employees Who Will be Productive LG5
Selection -- 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 * * Selecting Employees Who Will be Productive LG5
Obtaining complete application forms
Conducting initial and follow-up interviews
Giving employment tests
Conducting background investigations
Obtaining results from physical exams
Establishing trial (probationary) work periods
OOPS! Areas Where Job Applicants Make Mistakes * * Source: USA Today, www.usatoday.com . Selecting Employees Who Will be Productive LG5 11-
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.
WHY HIRE CONTINGENT WORKERS? * * Hiring Contingent Workers LG5
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 for Optimum Performance LG6
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.
THREE STEPS of TRAINING and DEVELOPMENT * * Training and Developing Employees for Optimum Performance LG6
Assessing organization needs and employee skills to develop appropriate training needs.
Designing training activities to meet identified needs.
Evaluating the training’s effectiveness.
MOST COMMONLY USED TRAINING and DEVELOPMENT ACTIVITIES * * Training and Developing Employees for Optimum Performance LG6
DEVELOPING EFFECTIVE MANAGERS * * Management Development LG6
Management Development -- Training and educating employees to become good managers and tracking the progress of their skills over time.
Management training includes:
Off-the-job courses and training
WHY GOOD EMPLOYEES QUIT * * LG6 Management Development Source: Robert Half International 11-
USING NETWORKS and MENTORING * * Networking LG6
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 Employee Performance to Get Optimum Results LG7
Performance Appraisal -- 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.
SIX STEPS of PERFORMANCE APPRAISALS * * Appraising Employee Performance to Get Optimum Results LG7
Establishing performance standards that are understandable, measurable and reasonable.
Clearly communicating those standards.
Evaluating performance against the standards.
Discussing the results with employees.
Taking corrective action .
Using the results to make decisions .
MAJOR USES of PERFORMANCE APPRAISALS * * LG7 Appraising Employee Performance to Get Optimum Results
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 worker
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.
Appraising Employee Performance to Get Optimum Results LG7 11-
COMPENSATION PROGRAMS * * Compensating Employees: Attracting and Keeping the Best LG8
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 fringe benefits.
TYPES of PAY SYSTEMS * * Pay Systems LG8
Hourly Wage/Day Work
Profit Sharing Plans
COMPENSATING TEAMS * * Compensating Teams LG8
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.)
FRINGE BENEFITS on the JOB * * Fringe Benefits LG8
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 LG8
Fringe benefits include incentives like:
Country club memberships
Special home mortgage rates
Paid and unpaid sabbaticals
Day-care and elder care services
Dental and eye care
Short or compressed work weeks
SPECIAL PERKS at DREAMWORKS * * LG8 Fringe Benefits
Free DVDs and screenings of current films.
Free breakfast and lunch plus dinner when working late.
Free snack rooms on every floor.
Ping-Pong and poker tournaments during work hours.
CAFETERIA-STYLE and SOFT BENEFITS * * Fringe Benefits LG8
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
Free meals at work
Onsite farmer’s markets
CHANGING TIMES, CHANGING EMPLOYEE BENEFITS * * LG8 Fringe Benefits Source: National Study of Emplyees (2008), Family & Work Institute. 11- Employer Benefits 1998 2008 Provide Pension Plans 48% 29% Offer Wellness Programs 51% 60% Retirement Plan Contribution 91% 81% Permit Some Flexible Work Hours 68% 80%
LET’S GO to the BEACH! Average Vacation Days by Country * * Fringe Benefits LG8 11-
FLEXIBLE SCHEDULING PLANS * * Scheduling Employees to Meet Organizational and Employee Needs LG9
Flextime Plan -- Gives employees some freedom to choose which hours to work as long as they work the required number.
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.
USING FLEXTIME PLANS * * Flextime Plans LG9
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.
Communication among employees can also be difficult under flextime and managers have to be alert to any system abuses.
A FLEXTIME CHART * * Flextime Plans LG9 11-
COMPRESSED WORK WEEKS * * Flextime Plans LG9
Employees enjoy long weekends after working long days.
Productivity is a concern.
Nurses and firefighters often work compressed work weeks.
JOB SHARING BENEFITS * * Job Sharing Plans LG9
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 peak demand periods.
MOVEMENT of EMPLOYEES * * Moving Employees Up, Over and Out LG9
Employees are promoted or reassigned.
Employees are terminated due to performance or economic situations.