Principles of Management

1. Human Resource Management Principles of Management Chapter 8

2. Human Resource Management Principles of Management Why study HR?

3. Principles of Management Management is the art of getting things done through people, and things get done better with good people.

4. Principles of Management Payroll is one of the firm’s major expenses. Payroll $148,750

5. Principles of Management Payroll $75,000

6. Human Resource Strategy Principles of Management • Determine the correct mix of employees and skills needed to meet competitive conditions. • Develop an effective work force through good recruiting and training. • Keep costs down while improving efficiency and productivity.

7. Planning – what people will we need? Attracting – how do we get them? • Job Analysis • Forecasting • Recruiting • Selecting Developing–keep‘em up to speed? Maintaining –how do we keep them? • Training & Development • Performance Appraisals • Wages, Salary, Benefits • Job Enrichment Human Resource Management Goals

8. Human Resource Planning Principles of Management • The nature of the work activities. • Current technology. • Work productivity and product quality standards. • Results in Job Description. Job Analysis

9. Human Resource Planning Principles of Management • What new technologies are emerging? • What is the volume of business likely to be? • What is the employee turnover rate? • What is the labor market like? Forecasting

10. Human Resource Planning Principles of Management What is the state of the current labor market?

11. Human Resource Planning Principles of Management For the very best, the market is always tight!

12. The goal is the most talented, best fit. Principles of Management Ways to Recruit Sell Lifestyle Higher Pay Better Benefits Stock Options Signing Bonus Recruiting Bonus

13. When Labor is Scarce… Principles of Management Rethink Temp Agency Outsourcing Work House Job Sharing Telecommuting Flexible Schedules Internal Recruiting

14. Internal Recruiting Advantages Principles of Management • Less costly than an external search. • Higher employee commitment, development, and satisfaction. • Offers opportunities for internal career advancements.

15. Selection Principles of Management Selection devices • Job Description – Essential Functions • Application/Resume – work history • Education • References Which Candidates to Interview?

16. Prepare a road map. Know what you want. Use open-ended questions. Listen--don’t talk. Don’t ask questions that aren’t relevant to the job. Allow enough time so that the interview will not be rushed. The Interview

17. Principles of Management Interview Questions: • What has been a particularly demanding goal for you to achieve? • Can you think of a situation in which an innovative course of action was needed? What did you do in this situation? • What are the typical customer interactions you have in your present position? Can you think of a recent example of one of these? • Have you ever been in a situation where you have had to take on new tasks or roles? Describe this situation and what you did? • In your present position, what standards have you set for doing a good job? How did you determine them?

18. Questions to avoid: Principles of Management • Interview questions to avoid because they may show illegal bias. • Are you a U.S. citizen? (adversely impacts national origin) • Do you have a visual, speech, or hearing disability? • Are you planning to have a family? When? • Have you ever filed a workers’ compensation claim? • How many days of work did you miss last year due to illness? • What off-the-job activities do you participate in? • Would you have a problem working with a female partner? • Where did you grow up? • Do you have children? How old are they? • What year did you graduate from high school? (reveals age)

19. Federal Legislation Principles of Management Point of the laws is to stop discriminatory practices. • EEO Legislation Attempts to: • balance the pay given to men and women. • provide employment opportunities without regard to race, religion, national origin, and sex. • ensure fair treatment for employees of all ages. • avoid discrimination against disabled individuals

20. Laws Governing Employment Practices Principles of Management • Minimum Wage = $7.10. OT = 40+ hrs • Equal Pay in same job = same pay • Employing Minors • Anti-discrimination Laws • Americans with Disabilities Act • Immigration Law – and the I-9

21. Withholding Requirements Principles of Management • Federal Unemployment (FUTA) • State Unemployment Taxes ** • Social Security and Medicare (FICA) • Federal Income Tax Withholding • Workman’s Compensation (L&I) ** ** Employer pays based on experience rating.

22. Orientation Training • On the Job Training • Classroom Training • Cross Training • Seminars • Other Developing an Effective Workforce Principles of Management It is cheaper, less disruptive, and a better motivator to train current staff rather than to find new employees.

23. Performance Appraisal Principles of Management HRM professionals concentrate on two things: • The accurate assessment of performance. • Training managers to effectively use the performance appraisal interview. An opportunity to assess the performance of the employee, give feedback, and to perform Job Analysis.

24. Assessing Performance Accurately Principles of Management • 360-degree feedback: uses multiple raters to appraise employee performance. “Self rating.” • Halo error: error that occurs when an employee receives the same rating on all dimensions. No action steps emerge. • Homogeneity: rating error that occurs when a rater gives all employees a similar rating. • “Three is good!”

25. Points-based Rating Scale Principles of Management Performance Expectations & Feedback Review Employee’s Name Reviewing Manager’s Name Guide to rating and performance codes 5 - Outstanding - Consistently exceeds requirements of position. Clearly superior performance which is recognized by all. Demonstrates special capabilities & willingness to perform at the highest possible level.. 4 - Consistently Exceeds - Frequently exceeds job requirements. 3 - Satisfactory - Consistently meets job requirements and is doing what is expected of a good performer. 2 - Needs Improvement - Meets jobs requirements some of the time; needs noticeable improvement to achieve an overall acceptable level of performance and meet expectations 1 - Serious Problem - Does not meet job requirements; immediate and significant improvements needed to stay on the job.

26. Behaviorally Anchored Rating Scale

27. Maintaining an Effective Workforce Principles of Management • Compensation • Wage and salary structure • Benefits • When necessary, terminations

28. Planning – what people will we need? Attracting – how do we get them? • Job Analysis • Forecasting • Recruiting • Selecting Developing–keep‘em up to speed? Maintaining –how do we keep them? • Training & Development • Performance Appraisals • Wages, Salary, Benefits • Job Enrichment Human Resource Management Goals