management

1. 10
chapter
Business Essentials, 7th Edition
Ebert/Griffin
Human Resource Management
and Labor Relations
Instructor Lecture PowerPoints
PowerPoint Presentation prepared by
Carol Vollmer Pope Alverno College

2. Homework
Page 119 chapter 8
Answer the first 8 questions.
One week fro today.
We need some to prepare a
presentation in 5-10 minutes.
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3. What’s in It for Me?
• Why does effectively managing human
resources matter to you?
– By understanding the material in this chapter,
you’ll be better able to understand:
1. The importance of properly managing human
resources in a unit or business you own or supervise
2. Why and how your employer provides the working
arrangements that most directly affect you
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4. The Foundations of Human Resource Management
• Human Resource Management (HRM)
– Activities directed at attracting, developing, and
maintaining an effective workforce
• The Strategic Importance of HRM
– Human resources has a substantial impact on a
firm’s bottom-line performance
– Many firms are developing strategic HR plans
– Chief officer reports to CEO
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5. Who is responsible for HRD?

6. Figure 10.1 The HR Planning Process
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7. HR planning process
1.First the HR department will conduct a job
analysis.
2.Second, they will forecast a demand for
labor.
3.This forecast will address the internal and
external supplies of labor.
4.Finally they will develop a plan to match
demand with supply.
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8. HR Planning
Job Description
Lists the duties and
responsibilities of a
job; its working
conditions; and the
tools, materials
equipment, and
information used to
perform it
Job Specification
Lists the skills,
abilities, and other
credentials and
qualifications
needed to perform
the job effectively
• Job Analysis
A systematic analysis of jobs within an organization
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9. discussion
A. Why job description is necessary?

10. Forecasting Labor Supply
A. Forecasting the internal labor supply
means determining the number and
type of employees who will be in
the firm at some future date.
B. management tools:

11. Forecasting Labor Supply
management tools:
1. Replacement charts: List each key
management position, who occupies it, how
long that person will likely stay in the job,
and who (by name) is qualified as a
replacement.
2. Skills inventories: Computerized information
systems containing information about each
employee’s education, work experience, and
career aspirations.

12. HR Planning (cont’d)
• Forecasting HR Demand and Supply
–Forecasting external supply
(number/type of people who will be
available for hiring from the labor
market at large)
1.State employment commissions e.g. job
centers.
2.Government reports
3.College information regarding enrollment
and graduates in various majors
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13. HR Planning (cont’d)
• Matching HR Supply and Demand
–Alleviating Shortfalls by taking the
following steps:
1. Seeking new hires
2. Retraining and transferring present
employees
3. Retaining retirees
4. Installing more productive systems
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14. Managing a Projected Shortfall how?
A. Hire new employees, if people are indeed
available in the external market.
B. Retrain and transfer current employees into
understaffed areas, providing a morale boost to
strong employees.
C. Consider hiring temporary workers, especially if
the shortfall appears short-term or uncertain.
D. Convince older workers not to retire, which
usually requires strong financial incentives.
E. The creative solution: Develop and install
productivity enhancing systems

15. HR Planning (cont’d)
• Matching HR Supply and
Demand
–Managing Overstaffing
1. Transferring extra employees
2. Not replacing employees who quit
(attrition)
3. Encouraging early retirement
4. Laying off personnel
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16. Staffing the Organization
• Recruiting
–Attracting qualified persons to apply
for the jobs that are open
–Internal Recruiting
•Considering present employees as
candidates for openings
1. Promotion from within
2. Union contracts and job bidding
inside the organization.
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17. Staffing the Organization
–External Recruiting
•Attracting people outside of the
organization to apply for jobs
1. State employment agencies
2. Private employment
agencies
3. Advertisements
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18. Discussion
Faculty of Commerce is looking to
recruit a manager to the faculty.
Think in internal and external
recruiting.
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19. Selecting Human Resources
Tools used.
- Application forms; however, make
sure the forms do not ask illegal
questions such as one’s age, marital
status, etc.
- Tests —ability, skills, aptitude /fitness,
knowledge, attitude
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20. Selecting Human Resources
Tools used.
- Interviews — interview people through a
committee. validity is increased by:
A.Training interviewers to reduce individual
bias
B.Using a structured interview format with
job-related questions to improve consistency,
reduce bias, and eliminate illegal questioning
of applicants
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21. Selecting Human Resources
Other techniques that can be used:
• Polygraph, or lie detector test. These are
not used that frequently anymore.
• Physical exams, but employers must be
aware with Disabilities Act, which forbids
denying someone employment based on
physical disability alone.
• Drug tests.
• Reference checks.
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22. Developing the Workforce
• Training
1.On-the-job training: Working side-by-side as the
employee learns the tasks required of the position.
2.Off-the-job training: training them away from
their jobs.
3.Vestibule/entrance training: Also called “the
teachable moment,” vestibule training occurs when
a supervisor or manager discusses a training issue
with an employee while they are walking in the
office after encountering a specific situation.
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23. Developing the Workforce (cont’d)
• Performance Appraisal
– Defining performance
standards
– Observing performance
– Writing up the
assessment
– Discussing the appraisal
Performance Appraisal
Evaluating job performance
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24. FIGURE 10.2 Sample Performance Evaluation Form
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25. Compensation and Benefits
•Compensation System
–The total package of rewards that a
company offers employees in return
for their labor
• Wages —money paid for time worked
• Salary —money paid to perform a job
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26. Compensation and Benefits
–Factors affecting compensation
1. Competitors’ wage offerings
2. Internal wage and salary
structure—includes: job value,
performance, and longevity
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27. Example of Salary Structure in PA
1. Basic Salary
2. Wife & children
3. Supervision
4. specialization
5. qualification
6. Annual increase.
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28. Compensation and Benefits (cont’d)
•Incentive programs: are Special pay
programs designed to motivate high
performance
–Individual incentives:
1. Bonuses
2. Merit /advantage salary systems: pay
rise linked to performance in non-sales
jobs.
3. Pay for performance (variable pay)
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29. Compensation and Benefits (cont’d)
•Incentive programs
–Company-wide incentives: to all
employees (group incentives)
1.Profit-sharing plans
1.Gain sharing plans, which reward groups for
their performance in reducing cost.
2.Pay-for-knowledge plans, which encourage
employees to gain new knowledge or skills. E.g,
extra payment for certain training hours.
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30. Compensation and Benefits (cont’d)
• Benefits Programs: can be mandatory
or discretionary.
–Mandatory (required by law)
1. Social Security retirement benefits
2. Workers’ compensation insurance
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31. Compensation and Benefits (cont’d)
–Discretionary (optional)
1. Health, life, and disability insurance
2. Vacations and holidays
3. Employee assistance programs
4. Retirement (pension) plans
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32. Compensation and Benefits (cont’d)
–Cafeteria benefits plans.
These plans set aside a certain
amount of money for benefits for
each employee, and those
employees choose how they wish
to spend those funds
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33. The Legal Context of HRM
• Equal Employment Opportunity
Laws
–Protect workers from unfair or
inappropriate (non-job-related)
discrimination in the workplace,
e.g, manager bias to employee’s
friend.
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34. The Legal Context of HRM
•Protected Classes in the
Workplace
–Individuals sharing common
characteristics as defined by law
•Race, color, religion, gender, age,
national origin, disability status,
and status as a military veteran
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35. The Legal Context of HRM (cont’d)
• Contemporary Legal Issues in
HRM
–Employee safety and health: was
addressed with Occupational
Safety and Health Act of 1970
(OSHA): work place free from
hazard.
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36. The Legal Context of HRM (cont’d)
–Emerging areas of discrimination law
include areas:
1. AIDS in the workplace
2. Sexual harassment
–Hostile work environment (a subtler
/indirect form of sexual harassment,
such as off-color jokes, but has
been expanded to include age,
ethnicity and religion as well).
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37. The Legal Context of HRM (cont’d)
• Contemporary Legal Issues in HRM
• Employment-at-will
This concept holds that an
employee or employer can terminate
an employment contract at any time
for any reason.
• In recent years, increasing numbers
of employees have challenged their
dismissals, citing wrongful discharge.
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38. The Legal Context of HRM (cont’d)
• Contemporary Legal Issues in HRM
•The Patriot Act
–Developed in response to 9/11/2001
–Grants government investigators rights to
what was privileged/ confidential
information.
–Bars certain “restricted” individuals (i.e., ex
convicts, aliens/ foreign) from working with
restricted biological agents
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39. New Challenges in the Changing Workplace
• Managing Workforce Diversity
–Workforce diversity: includes, The range of
workers’ attitudes, values, beliefs, and
behaviors that differ by gender, race, age,
ethnicity, physical ability, and other relevant
characteristics
–Organizations are recognizing that diversity
can be a competitive advantage
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40. FIGURE 10.3a Distribution of the Labor Force by Race
1990 – 2050 in USA
FIGURE 10.3b Hispanic Share of Civilian Labor
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41. New Challenges in the Changing Workplace (cont’d)
• Managing Knowledge Workers
– Knowledge workers add value because of what
they know, they include:
• Computer scientists
• Physical scientists
• Engineers
Hiring and retaining
knowledge workers is a
critical HR challenge
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42. Discussion
please give two examples of knowledge
workers who might be employed by a
large ice-cream manufacturer.
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43. New Challenges in the Changing Workplace (cont’d)
•Contingent Workers
–A person who works for an organization on
something other than a permanent or full-
time basis. These can include:
1. Independent contractors
2. On-call workers
3. Temporary employees, e.g, employing
through agencies.
4. Contract and leased employees
5. Part-time workers
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44. New Challenges in the Changing Workplace (cont’d)
• Managing Contingent and Temporary Workers. Some
of these challenges include:
1. Careful planning for coordinated use of
temporary workers
2. Understanding the advantages and
disadvantages of contingent workers
3. Assessing the true cost of using contingent
workers
4. Developing a strategy for integrating contingent
workers into the organization
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45. Dealing with Organized Labor
• Labor Union
– A group of individuals working together to achieve
shared job-related goals, such as higher pay, shorter
working hours, more job security, greater benefits, or
better working conditions
• Labor Relations
– The process of dealing with employees who are
represented by a union.
• Collective Bargaining
– The process by which union leaders and managers
negotiate common terms and conditions of employment
for the workers represented by unions
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46. Collective Bargaining
• Collective Bargaining
– An ongoing process involving both the drafting
and the administering of the terms of a labor
contract.
• Contract Issues, include:
– Compensation
• Cost-of-living adjustment (COLA) clauses
• Wage reopener clauses/sections
– Benefits
– Job security
– Management rights
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47. Collective Bargaining (cont’d)
• Union Tactics When Bargaining sometimes
Fails. What they use?
1. Strike
2. Picketing/ protest, e.g., go on the media
3. Boycott: Union members will not buy
products from a specific firm.
4. Work slowdown e.g., call in sick
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48. Collective Bargaining (cont’d)
• Management Tactics When Bargaining Fails
1.Lockouts: Workers are locked out of
company facilities.
2.Hiring strikebreakers who cross the
picket/ strike lines.
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49. Mediation
Voluntary Arbitration
Compulsory Arbitration
Collective Bargaining (cont’d)
Resolving Disputes
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50. Resolving Disputes
Resolving union disputes includes:
1.Mediation, where the parties sit down at the
bargaining table to try to work things out with a
mediator or a third party.
2.Arbitration, either voluntary or compulsory,
which calls for a third party to judge the
situation and make a decision on the
appropriate solution.
3.Some arbitration is binding, which means that
both sides agree to abide by the arbitrator’s
decision as law.
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51. Homework
Answer questions 1-5 in page 147
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