Chapter 11              Human             Resource           Management:            Finding and           Keeping the     ...
Chapter Eleven                   LEARNING GOALS     1. Explain the importance of human resource        management, and des...
Chapter Eleven                  LEARNING GOALS     5. Outline the six steps in selecting employees.     6. Illustrate empl...
Chapter Eleven                  LEARNING GOALS     9. Demonstrate how managers use scheduling plans        to adapt to wor...
Profile          MARK PARKER                Nike            • Started as shoe designer,              rose to CEO in 2006. ...
Chapter Eleven                 NAME that COMPANY     This company is one of the largest U.S. steel        producers. It pa...
Working with            HUMAN RESOURCE MANAGEMENTPeople is Justthe Beginning     LG1                                      ...
Working withPeople is Justthe Beginning                 HUMAN RESOURCE     LG1         MANAGEMENT (HRM)     • Human Resour...
Working withPeople is Just                         UNCOVERING thethe Beginning     LG1                                    ...
Developing theFirm’s UltimateResource                  DEVELOPING the FIRM ’S     LG1           ULTIMATE RESOURCE     • Se...
The HumanResourceChallenge            CHALLENGES in FINDING    LG1      HIGH-LEVEL WORKERS    • A shortage of trained work...
Laws AffectingHuman ResourceManagement       CIVIL RIGHTS ACT of 1964    LG2     • Title VII prohibits discrimination in h...
Laws AffectingHuman ResourceManagement       1972 EQUAL EMPLOYMENT    LG2          OPPORTUNITY ACT (EEOA)     • Strengthen...
Laws AffectingHuman ResourceManagement CONTROVERSIAL PROCEDURES    LG2           of the EEOC     • Affirmative Action -- P...
Laws AffectingHuman ResourceManagement       CIVIL RIGHTS ACT of 1991    LG2                  and OFCCP     • Civil Rights...
Laws ProtectingEmployees withDisabilities andOlder Employees                       LAWS PROTECTING      LG2          EMPLO...
Laws ProtectingEmployees withDisabilities andOlder Employees                    AGE DISCRIMINATION in      LG2          EM...
Effects ofLegislation   MINDING the LAW in HRM     LG2     • Employers must know the law       and act accordingly.     • ...
The MILLION WOMAN SUIT         AGAINST WALMART                     (Legal Briefcase)• Over 1 million women filed suit agai...
ProgressAssessment   PROGRESS ASSESSMENT    • What’s human resource management?    • What did Title VII of the Civil Right...
Determining aFirm’s Human             HUMAN RESOURCE PLANNINGResource Needs     LG3             PROCESS     1) Preparing a...
Determining aFirm’s HumanResource Needs   WHAT’S a JOB ANALYSIS?     LG3     •Job Analysis – A study of what employees do ...
RecruitingEmployees froma DiversePopulation                 RECRUITING EMPLOYEES    LG4    •Recruitment -- The set of acti...
IT’S NOT EASY BEING SMALL                     (Spotlight on Small Business)• To survive, small businesses must recruit and...
RecruitingEmployees froma DiversePopulation                 EMPLOYEE SOURCES    LG4                                    11-25
SelectingEmployees WhoWill beProductive                    SELECTION    LG5    • Selection -- The       process of gatheri...
SelectingEmployees WhoWill beProductive                   STEPS in the    LG5         SELECTION PROCESS    1. Obtaining co...
SelectingEmployees WhoWill beProductive                                                 OOPS!    LG5                 Areas...
HiringContingentWorkers      HIRING CONTINGENT WORKERS    LG5     • Contingent Workers -- Include part-time and        tem...
HiringContingentWorkers                    WHY HIRE    LG5       CONTINGENT WORKERS?     • Companies hire contingent worke...
HiringContingentWorkers                STUDENTS and the    LG5      CONTINGENT WORKFORCE     • With temporary staffing age...
ARE UNPAID INTERNS            TOO INTERRED?                   (Making Ethical Decisions)• With few entry-level positions a...
ProgressAssessment   PROGRESS ASSESSMENT    • What are the five steps in human resource      planning?    • What factors m...
Training andDevelopingEmployees forOptimum                TRAINING and DEVELOPINGPerformance     LG6               EMPLOYE...
Training andDevelopingEmployees forOptimum                THREE STEPS of TRAININGPerformance     LG6           and DEVELOP...
Training andDevelopingEmployees forOptimum                MOST COMMONLY USED TRAININGPerformance     LG6         and DEVEL...
ManagementDevelopment   DEVELOPING EFFECTIVE    LG6            MANAGERS    • Management Development -- The process of     ...
ManagementDevelopment       WHY GOOD EMPLOYEES QUIT    LG6          Source: Robert Half International                     ...
Networking               USING NETWORKS and     LG6           MENTORING     • Networking -- Establishing and maintaining  ...
AppraisingEmployeePerformance to GetOptimum Results                     APPRAISING PERFORMANCE      LG7                   ...
AppraisingEmployeePerformance to GetOptimum Results                     SIX STEPS of PERFORMANCE      LG7                 ...
AppraisingEmployeePerformance to GetOptimum Results                          MAJOR USES of      LG7            PERFORMANCE...
AppraisingEmployeePerformance to Get   PERFORMANCE APPRAISALOptimum Results      LG7                           MISTAKES   ...
ProgressAssessment   PROGRESS ASSESSMENT    • Name and describe four training techniques.    • What’s the primary purpose ...
CompensatingEmployees:Attracting andKeeping the Best                   COMPENSATION PROGRAMS      LG8      • A managed and...
Pay Systems               TYPES of PAY SYSTEMS    LG8    • Salary    • Hourly Wage/Day Work    • Piecework System    • Com...
CompensatingTeams          COMPENSATING TEAMS    LG8    • Team-based pay programs are more challenging      than individua...
Fringe Benefits                  FRINGE BENEFITS on the JOB     LG8     • Fringe Benefits -- Sick leave, vacation pay,    ...
Fringe Benefits               HEALTHCARE, a PERK NOT     LG8         to be TAKEN LIGHTLY     • Compare all the costs, not ...
Fringe Benefits                                WHO PAYS for     LG8                     EMPLOYEE BENEFITS?     • 74% of fu...
Fringe Benefits                   The RANGE of     LG8          FRINGE BENEFITS     • Fringe benefits include incentives l...
Fringe Benefits                  SPECIAL PERKS at     LG8            DREAMWORKS     • Free DVDs and screenings of       cu...
Fringe Benefits                  CAFETERIA-STYLE and     LG8             SOFT BENEFITS     • Cafeteria-Style Fringe Benefi...
Fringe Benefits                          LET’S GO to the BEACH!     LG8                              Average Vacation Days...
WORKING WORLDWIDE                (Reaching Beyond Our Borders)• Managers need to understand the business  needs of each co...
Flextime Plans             FLEXIBLE SCHEDULING PLANS     LG9     • Flextime Plan -- Gives employees some freedom        to...
Flextime Plans                 USING FLEXTIME PLANS     LG9     • Most flextime plans require Core Time -- When        all...
Flextime Plans                 A FLEXTIME CHART     LG9                                    11-58
Flextime Plans                 COMPRESSED WORK WEEKS     LG9     • Employees enjoy long       weekends after working long ...
Home-BasedWork           HOME-BASED WORK    LG9    • About 10 million Americans telecommute at least      several days a m...
Home-BasedWork                                 VIRTUALLY THERE    LG9                           Tools to Help You Work Fro...
Home-BasedWork                       GOING NOWHERE FAST    LG9                               Worst Commutes in the World  ...
Job SharingPlans         JOB SHARING BENEFITS    LG9     • Provides employment opportunities for many       people who can...
MovingEmployees Up,Over and Out                MOVING EMPLOYEES    LG10    • Employees are promoted or      reassigned.   ...
TerminatingEmployees     TERMINATING EMPLOYEES    LG10     • As the economic crisis grew, more and more       employers ha...
ProgressAssessment   PROGRESS ASSESSMENT    • Name and describe five alternative compensation      techniques.    • What a...
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Chap011

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  • Company: Nucor Steel
  • See Learning Goal 1: Explain the importance of human resource management, and describe current issues in managing human resources. Human resource management is more than hiring employees. It involves a multitude of tasks and responsibilities. This slide gives some insight into the various roles the HRM department has now assumed. Business leaders in many companies now understand the effect management of human capital can have in creating a competitive advantage in the marketplace.
  • See Learning Goal 1: Explain the importance of human resource management, and describe current issues in managing human resources.
  • See Learning Goal 1: Explain the importance of human resource management, and describe current issues in managing human resources. Uncovering the Secrets of HRM This slide shows that the HR department can help or hurt your career. Some folks will approach HR with every little problem they encounter. However, with the decline in employment, HR departments are often under pressure to get more pressing things taken care of. If you want to succeed in a company, make sure the HR staff knows you and likes you. They can help you move up. Click the link on the slide and surf through various Facebook posts that have gotten people fired. This will help promote class discussion. Ask students: Do you think the terminations described in the stories link on the slide were justified?
  • See Learning Goal 1: Explain the importance of human resource management, and describe current issues in managing human resources.
  • See Learning Goal 1: Explain the importance of human resource management, and describe current issues in managing human resources. Demographic changes are creating a challenging environment for HR managers, requiring companies to come up with creative ways to attract, develop and retain employees.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management. The Civil Rights Act of 1964 was a significant piece of legislation and directly brought the federal government into human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management. Ask the students: Did Affirmative Action create reverse discrimination against whites and males by unfairly giving preference to females and minorities?
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management. Although the Supreme Court ruled in favor of Walmart, the court did not decide whether Walmart had, in fact, discriminated against the women, only that they could not proceed as a class.
  • Human resource management is the process of determining the needs of the organization and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals. Title VII prohibits discrimination in hiring, firing, compensating, apprenticeships, training, terms, conditions, or privileges of employment based on race, religion, creed, sex, or national origin. At a later date age discrimination was added to the act. The Equal Employment Opportunity Commission was created by the Civil Rights Act. The EEOC was permitted to issue guidelines for acceptable employer conduct in administering equal employment opportunity. Affirmative action is the most controversial policy of the EEOC and was designed to “right past wrongs” by increasing opportunities for minorities and women. Employers are required to make “reasonable accommodations” for employees with disabilities, such as modifying equipment or widening doorways.
  • See Learning Goal 3: Summarize the five steps in human resource planning.
  • See Learning Goal 3: Summarize the five steps in human resource planning.
  • See Learning Goal 4: Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging.
  • See Learning Goal 4: Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging.
  • See Learning Goal 4: Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging. Job candidates can come from internal and external sources. In order to attract qualified employees from external sources, many employers offer referral bonuses to employees who refer a new employee to the company.
  • See Learning Goal 4: Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging.
  • See Learning Goal 5: Outline the six steps in selecting employees.
  • See Learning Goal 5: Outline the six steps in selecting employees. OOPs! Applicants ’ Mistakes This slide presents the job application areas where the applicants make the most mistakes. The results are based on the survey of over 1,400 CFOs of U.S. companies with 20 or more employees. The top two areas where applicants make the most mistakes are interviews and resumes. Ask the students: What are your experiences with interviews or resume errors? How many of you follow up after an interview?
  • See Learning Goal 5: Outline the six steps in selecting employees.
  • See Learning Goal 5: Outline the six steps in selecting employees.
  • See Learning Goal 5: Outline the six steps in selecting employees.
  • See Learning Goal 5: Outline the six steps in selecting employees.
  • The five steps in human resource planning are: (1) preparing a human resource inventory of the organization ’s employees, (2) preparing a job analysis, (3) assessing future human resource demand, (4) assessing future labor supply, and (5) establishing a strategic plan. Some factors that make it difficult to recruit qualified employees include: organizational policies that demand promotions from within, union regulations, and low wages. The six steps in the selection process are: (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, and (6) establishing trial period . Contingent workers include part-time workers, temporary workers, seasonal workers, independent contractors, interns and co-op students. Contingent workers are sometimes hired in an uncertain economic climate, when full-time workers are on leave, when there is peak demand for labor or products and finally when quick service is necessary.
  • See Learning Goal 6: Illustrate employee training and development methods.
  • See Learning Goal 6: Illustrate employee training and development methods.
  • See Learning Goal 6: Illustrate employee training and development methods. An example of orientation: At Zappos every new employee in the online retailer ’s Henderson, Nevada headquarters must spend two weeks answering customer calls, two weeks learning in a classroom, and a week shipping boxes in the company’s Kentucky fulfillment center.
  • See Learning Goal 6: Illustrate employee training and development methods.
  • See Learning Goal 6: Illustrate employee training and development methods. Why Good Employees Quit This slide presents some of the reasons why good employees quit. Ask the students: Why is it important for managers to understand why employees leave a company? (It translates directly into the bottom line of the organization. The higher the turnover, the higher the costs for recruiting, selecting, training and development, etc.) Ask the students: What are other reasons why employee retention is important? (Some other reasons may be morale of the workers, ability to recruit, reputation and image of the company, etc.) Ask the students: Would you like to work at a place that feels like it has a revolving door?
  • See Learning Goal 6: Illustrate employee training and development methods. Many students are familiar with social networking, but are unfamiliar with career networking. Ask the students: How can you use sites like Facebook, YouTube, and Twitter to establish and maintain contacts with key managers in and out of the organization?
  • See Learning Goal 7: Trace the six steps in appraising employee performance.
  • See Learning Goal 7: Trace the six steps in appraising employee performance.
  • See Learning Goal 7: Trace the six steps in appraising employee performance. Major Uses of Performance Appraisals This slide gives students insight as to the importance of regular performance appraisals. To start a discussion on performance appraisals, ask students to discuss the 360-degree review. After the discussion use the next slide to walk students through some of the problems associated with performance appraisals.
  • See Learning Goal 7: Trace the six steps in appraising employee performance. Performance Appraisal Mistakes This slide highlights some of the problems made while reviewing employees. Ask the students: How can managers avoid some of the issues discussed in this slide? To start a discussion about performance appraisals and teams ask students: Do you think it is fair to have your own performance appraised based on the work of others on your team?
  • Off-the-job training occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development. An apprenticeship program involves a student or apprentice working alongside an experienced employee to master the skills and procedures of a craft. Vestibule training or near-the-job training is done in a classroom with equipment similar to that used on the job so employees learn proper methods and safety procedures before assuming a specific job assignment. Job simulation is the use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job. The primary purpose of a performance appraisal is to determine whether workers are doing an effective and efficient job, with a minimum of errors and disruptions. The six steps in a performance appraisal are: (1) establishing performance standards, (2) communicating those standards, (3) evaluating performance, (4) discussing results with employees, (5) taking corrective action, and (6) using the results to make decisions.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. Students should be aware when accepting a job offer to consider not just the salary but the entire compensation package.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. Skill-based pay is increased when teams learn and apply new skills. Gain sharing bases team bonuses on improvements over previous performance. Nucor Steel calculates bonuses 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.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. The rising cost of healthcare and the cost of employer provided health insurance is unsustainable in the long term. This requires both management and employees to create systems that keep cost down, but still provide meaningful coverage. This could include employee wellness programs and/or higher deductibles.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. Healthcare, a Perk Not to be Taken Lightly Many companies now ask their employees to pitch in for healthcare costs. This slide shows students how to cope with those costs and find what ’s best for them.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. Who Pays for Employee Benefits? Entrepreneur used statistics from the Bureau of Labor Statistics to create this list. Ask students: Did you think more Americans had retirement plans sponsored by their employer? What about healthcare?
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. Special Perks at Dreamworks Employee perks can take different shapes. Companies like Dreamworks try to offer benefits to keep the work environment loose and creative. Have students read this article from Entrepreneur.com (http://www.entrepreneur.com/humanresources/compensationandbenefits/article171630.html) with ideas for twenty low-cost employee perks.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. The name of the game today regarding employee benefits is creativity!
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. Vacation Days Per Year This slide presents a comparison of number of vacation days given and used per year in different countries. France leads with an average of 38 vacation days given per year whereas the U.S. ties for last with just 17 days. Even though the U.S. comes in last with only 17 days, an interesting fact to share with the students is that most Americans don ’t even use these 17 days. Ask the students: What impact does this benefit of number of days of vacation have on recruiting at an international level? (Most should be able to identify that domestically, it may not have much of an impact. However internationally, potential candidates would be comparing between different countries, especially if they are from one of the countries that offer a much higher number of vacation days, such as Italy, France, or Germany. This may have an impact on the ability of an organization to recruit.)
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits.
  • See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs.
  • See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs.
  • See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs. Flextime gives employees some freedom and empowers them to work when it best meets their schedule. The benefits are obvious and often lead to a more motivated workforce.
  • See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs.
  • See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs. BoA ’s program adds up to a $100 million a year saving and employees in the program work remotely about 60 percent of the time.
  • See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs. Virtually There Click on these links to visit pages containing useful tools for working outside of the office.
  • See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs. Going Nowhere Fast IBM ranked cities from 1 to 100 (100 being the worst). Factors included traffic, road rage and gridlock. 69% of commuters in Beijing have said traffic has been so bad some days, they turned around and went home. New York and LA ranked rather low on the list considering they ’re notorious in U.S. traffic problems. Those in Moscow have to normally spend 2.5 - 3 hours in their cars. Ask students: Would you travel 2.5 hours just to get to and from work? Would flextime be more beneficial for these workers?
  • See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs.
  • See Learning Goal 10: Describe how employees can move through a company: promotion, reassignment, termination, and retirement.
  • See Learning Goal 10: Describe how employees can move through a company: promotion, reassignment, termination, and retirement.
  • Alternative compensation techniques include: (1) commission Plans - rewarding employees with a percentage of sales, (2) bonus plans - rewarding employees with payment based on achievement of a predetermined goal, (3) profit sharing plans - giving employees the ability to share in a percentage of the company ’s profit, (4) gain-sharing plans - bonus is based on improvements over previous performance, and (5) stock options - granting employees shares of stocks based on performance. The hope is that profit sharing plans will motivate employees to think like owners. Flextime benefits include allowing employees to adjust to work/life demands. Challenges of flextime include not being applicable for all businesses, making communication more difficult, and creating the possibility of resentment if employees abuse the system. Telecommuting benefits include cost saving for employers and allows employees to manage work/life demands. Challenges of telecommuting include that it requires disciplined employees to stay focused and communication with employees may suffer. Job sharing benefits include employment opportunities for those who cannot (or prefer not to) work full-time, reduced absenteeism and tardiness, retention of experienced workers and ability to schedule workers during peak times. Challenges of job sharing include the need to hire, train, motivate, and supervise at least twice as many employees.
  • Chap011

    1. 1. Chapter 11 Human Resource Management: Finding and Keeping the Best EmployeesMcGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
    2. 2. Chapter Eleven LEARNING GOALS 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. 11-2
    3. 3. Chapter Eleven LEARNING GOALS 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 systems and fringe benefits. 11-3
    4. 4. Chapter Eleven LEARNING GOALS 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. 11-4
    5. 5. Profile MARK PARKER Nike • Started as shoe designer, 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, 2007 and 2008. 11-5
    6. 6. Chapter Eleven NAME that COMPANY 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! 11-6
    7. 7. Working with HUMAN RESOURCE MANAGEMENTPeople is Justthe Beginning LG1 11-7
    8. 8. Working withPeople is Justthe Beginning HUMAN RESOURCE LG1 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 resource. 2. Changes in law that rewrote old workplace practices. 11-8
    9. 9. Working withPeople is Just UNCOVERING thethe Beginning LG1 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. Source: Smart Money, May 2010. 11-9
    10. 10. Developing theFirm’s UltimateResource DEVELOPING the FIRM ’S LG1 ULTIMATE RESOURCE • Service and high-tech manufacturing requires employees with highly technical job skills. • 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. 11-10
    11. 11. The HumanResourceChallenge CHALLENGES in FINDING LG1 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 • A decreased sense of employee loyalty 11-11
    12. 12. Laws AffectingHuman ResourceManagement CIVIL RIGHTS ACT of 1964 LG2 • Title VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions or privileges of employment based on: - Race - Religion - Creed - Sex - Age - National Origin 11-12
    13. 13. Laws AffectingHuman ResourceManagement 1972 EQUAL EMPLOYMENT LG2 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 procedures. • EEOC was vested with the power of enforcement. 11-13
    14. 14. Laws AffectingHuman ResourceManagement CONTROVERSIAL PROCEDURES LG2 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. 11-14
    15. 15. Laws AffectingHuman ResourceManagement CIVIL RIGHTS ACT of 1991 LG2 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. 11-15
    16. 16. Laws ProtectingEmployees withDisabilities andOlder Employees LAWS PROTECTING LG2 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. 11-16
    17. 17. Laws ProtectingEmployees withDisabilities andOlder Employees AGE DISCRIMINATION in LG2 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 training. 11-17
    18. 18. Effects ofLegislation MINDING the LAW in HRM LG2 • 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. 11-18
    19. 19. 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. 11-19
    20. 20. ProgressAssessment 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? 11-20
    21. 21. Determining aFirm’s Human HUMAN RESOURCE PLANNINGResource Needs LG3 PROCESS 1) Preparing a human resource inventory of employees. 2) Preparing a job analysis. 3) Assessing future human resource demand. 4) Assessing future labor supply. 5) Establishing a strategic plan. 11-21
    22. 22. Determining aFirm’s HumanResource Needs WHAT’S a JOB ANALYSIS? LG3 •Job Analysis – A study of what employees do who •Job Description – A summary of the objectives of •Job Specifications -- A summary of the minimum 11-22
    23. 23. RecruitingEmployees froma DiversePopulation RECRUITING EMPLOYEES LG4 •Recruitment -- The set of activities for obtaining •Human resource managers use both internal and •Small businesses often make use of web sources 11-23
    24. 24. 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. 11-24
    25. 25. RecruitingEmployees froma DiversePopulation EMPLOYEE SOURCES LG4 11-25
    26. 26. SelectingEmployees WhoWill beProductive SELECTION LG5 • 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. 11-26
    27. 27. SelectingEmployees WhoWill beProductive STEPS in the LG5 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 11-27
    28. 28. SelectingEmployees WhoWill beProductive OOPS! LG5 Areas Where Job Applicants Make Mistakes Source: USA Today, www.usatoday.com. 11-28
    29. 29. HiringContingentWorkers HIRING CONTINGENT WORKERS LG5 • 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. 11-29
    30. 30. HiringContingentWorkers WHY HIRE LG5 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 11-30
    31. 31. HiringContingentWorkers STUDENTS and the LG5 CONTINGENT WORKFORCE • With temporary staffing agencies, companies have easier access to screened workers. • Worker information is entered into their databases. • When students come back to town, they can call the agency and ask them to put their names into the system for work. 11-31
    32. 32. 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? 11-32
    33. 33. ProgressAssessment PROGRESS ASSESSMENT • What are the five steps in human resource planning? • What factors make it difficult to recruit qualified employees? • What are the six steps in the selection process? • Who is considered a contingent worker, and why do company hire such workers? 11-33
    34. 34. Training andDevelopingEmployees forOptimum TRAINING and DEVELOPINGPerformance LG6 EMPLOYEES • 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. 11-34
    35. 35. Training andDevelopingEmployees forOptimum THREE STEPS of TRAININGPerformance LG6 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. 11-35
    36. 36. Training andDevelopingEmployees forOptimum MOST COMMONLY USED TRAININGPerformance LG6 and DEVELOPMENT ACTIVITIES • Orientation • On-the-Job Training • Apprenticeships • Off-the-Job Training • Online Training • Vestibule Training • Job Simulation 11-36
    37. 37. ManagementDevelopment DEVELOPING EFFECTIVE LG6 MANAGERS • Management Development -- The process of training and educating employees to become good managers and monitoring the progress of their skills over time. • Management training includes: - On-the-job coaching - Understudy positions - Job rotation - Off-the-job courses and training 11-37
    38. 38. ManagementDevelopment WHY GOOD EMPLOYEES QUIT LG6 Source: Robert Half International 11-38
    39. 39. Networking USING NETWORKS and LG6 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. 11-39
    40. 40. AppraisingEmployeePerformance to GetOptimum Results APPRAISING PERFORMANCE LG7 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. • A 360-degree review gives managers opinions from people at different levels to get a more accurate idea of the worker’s ability. 11-40
    41. 41. AppraisingEmployeePerformance to GetOptimum Results SIX STEPS of PERFORMANCE LG7 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. 11-41
    42. 42. AppraisingEmployeePerformance to GetOptimum Results MAJOR USES of LG7 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 worker 11-42
    43. 43. AppraisingEmployeePerformance to Get PERFORMANCE APPRAISALOptimum Results LG7 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. 11-43
    44. 44. ProgressAssessment 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? 11-44
    45. 45. CompensatingEmployees:Attracting andKeeping the Best COMPENSATION PROGRAMS 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. 11-45
    46. 46. Pay Systems TYPES of PAY SYSTEMS LG8 • Salary • Hourly Wage/Day Work • Piecework System • Commission Plans • Bonus Plans • Profit Sharing Plans • Gain-Sharing Plans • Stock Options 11-46
    47. 47. CompensatingTeams 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.) 11-47
    48. 48. Fringe Benefits FRINGE BENEFITS on the JOB 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. 11-48
    49. 49. Fringe Benefits HEALTHCARE, a PERK NOT LG8 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. Source: Kiplinger’s Personal Finance, November 2010. 11-49
    50. 50. Fringe Benefits WHO PAYS for LG8 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. Source: Entrepreneur, May 2011. 11-50
    51. 51. Fringe Benefits The RANGE of LG8 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 - Short or compressed work weeks 11-51
    52. 52. Fringe Benefits SPECIAL PERKS at LG8 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. 11-52
    53. 53. Fringe Benefits CAFETERIA-STYLE and LG8 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 - Onsite farmer’s markets 11-53
    54. 54. Fringe Benefits LET’S GO to the BEACH! LG8 Average Vacation Days by Country Source: Reuters, June 24, 2010. 11-54
    55. 55. 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 other countries. 11-55
    56. 56. Flextime Plans FLEXIBLE SCHEDULING PLANS LG9 • 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. 11-56
    57. 57. Flextime Plans USING FLEXTIME PLANS LG9 • Most flextime plans require Core Time -- When all employees are expected to be at their job stations. • Flextime is difficult 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. 11-57
    58. 58. Flextime Plans A FLEXTIME CHART LG9 11-58
    59. 59. Flextime Plans COMPRESSED WORK WEEKS LG9 • Employees enjoy long weekends after working long days. • Productivity is a concern. • Nurses and firefighters often work compressed work weeks. 11-59
    60. 60. Home-BasedWork HOME-BASED WORK LG9 • About 10 million Americans telecommute at least several days a month. • 12% of U.S. businesses use some home-based work. • Bank of America has My Work that saves an estimated $5,500 per enrolled employee every year. 11-60
    61. 61. Home-BasedWork VIRTUALLY THERE LG9 Tools to Help You Work From Home • Communication: - Google Apps - Skype - Yammer • Collaboration: - Google Docs - GoToMeeting - Dropbox Source: Entrepreneur, January 2011. 11-61
    62. 62. Home-BasedWork GOING NOWHERE FAST LG9 Worst Commutes in the World Source: Bloomberg Businessweek, December 20, 2010. 11-62
    63. 63. Job SharingPlans JOB SHARING BENEFITS 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. 11-63
    64. 64. MovingEmployees Up,Over and Out MOVING EMPLOYEES LG10 • Employees are promoted or reassigned. • Employees are terminated due to performance or economic situations. • Employees retire. 11-64
    65. 65. TerminatingEmployees TERMINATING EMPLOYEES LG10 • 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. 11-65
    66. 66. ProgressAssessment PROGRESS ASSESSMENT • Name and describe five alternative compensation techniques. • What advantages do compensation plans such as profit sharing offer an organization? • What are the benefits and challenges of flextime? Telecommuting? Job sharing? 11-66

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