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Chapter Eleven

Chapter Eleven. Managing Human Resources. The Nature of Human Resources Management (HRM). HRM: All activities involved in determining an organization’s human resource needs, as well as acquiring, training, and compensating people to fill those needs. Planning for HR Needs. Typical HR Issues:

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Chapter Eleven

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  1. Chapter Eleven ManagingHuman Resources

  2. The Nature of Human Resources Management (HRM) • HRM: • All activities involved in determining an organization’s human resource needs, as well as acquiring, training, and compensating people to fill those needs.

  3. 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?

  4. 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. JobDescription: 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. JobSpecification: The written description of the qualifications necessary for a specific job, such as education, experience, personal characteristics, and physical characteristics.

  5. Recruiting Pool Internal Sources External Sources “Head Hunters” Current Employees Universities Classifieds Recruiting New Employees FAST FACT: Several years ago, 21% of companies said they recruited online. Experts say it over 80% today. Source: Bill Leonard, “Online and Overwhelmed,” HR, vol 45 (August 2000), no 8 from http[://www.shrm.org/hrmagazine/articles/default.asp?page=0800cov.htm (accessed May 16, 2001).

  6. Application Interview Testing ReferenceChecking Job? The Selection Process

  7. Legal Issues in Recruiting and Selecting New Employees • Fair Labor Standards Act (1938). Sets minimum 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.

  8. Legislation Regulating Hiring and Compensation Practices • Age Discrimination in Employment Act (1967). Outlaws employment practices that discriminate 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. FAST FACT: 40+ years after the Civil Rights Act was passed, corporate officers are only 8.2% African-American,5% Hispanic, and 12.5% women. Source: Annie Finnigan, “Different Strokes,” Working Woman, April 2001, p. 42.

  9. Affirmative Action Legally mandated plans that try to increase job opportunities for minority groups by analyzing the current pool of workers, identifying areas where women and minorities are underrepresented, and establishing specific hiring and promotion goals, with target dates, for addressing discrepancy.

  10. Steps in Developing the Workforce • Employee Orientation • Employee Training & Development • Assessing Employee Performance FAST FACT: Internet-based training is expected to grow to be a $14.5 billion market by 2004. Source: Karen Morrione, “Live and E-Learn,” Working Woman, April 2001, p. 34.

  11. Employee Turnover • Promotion • Transfer • Separation • Resignation • Retirement • Termination • Layoffs

  12. Compensating the Work Force 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

  13. 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

  14. Other Methods Companies Use to Retain Employees 66% Tuition Reimbursement 60% Better Pay and Benefits 53% Flexible Hours & Schedules 25% Mentoring Programs 22% Profit-Sharing 15% Exercise Facilities Source: Kemba J. Dunham, The Jungle,” Wall Street Journal, May 15, 2001, p. B12.

  15. Increasing Employee Satisfaction American Workers Prefer Happiness Over Money What American’s Value Most About Work: Job Satisfaction: 65% Being Paid Well: 34% Having an Important Title: 1% Source: USA Today Snapshots, September 20, 2001, D-1.

  16. Increasing Employee Satisfaction Benefits:% Offering • Child care assistance 91 • Elder care programs 49 • Flexible schedules 73 • Adoption benefits 32 • Personal/professional growth 78 • Financial security programs 41 • Group/discounted purchases 39 • On-site personal services 57 • Casual dress 66 Source: “Hewitt Study Shows Work/Life Benefits Continue to Grow Despite Slowing Economy,” Hewitt Associates LLC press release, April 23, 2001.

  17. Managing Unionized Labor • Labor Unions: • Employee organizations formed to deal with employers to achieve better pay, hours, and working conditions.

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

  19. Management prepares list ofdemands and concessions:SchedulingHiring and firingPay cutsProduction standardsDiscipline Union prepares list ofdemands and concessions:Pay raisesOvertime ratesBenefitsSecuritySeniority Negotiation teams establishrules and schedule meetings Negotiation and compromise Ratification of contract Rejection of contract Union represents workers atthat work facility Union tactics:Strikes, Boycotts, Picketing Management tactics:Lockouts, Strikebreakers Renegotiation of contract The Collective Bargaining Process

  20. Labor’s Tactics Strikes Picketing Boycott Lockout Strikebreakers/hiringreplacements Resolving Disputes:Pressure Tactics of Laborand Management Management’s Tactics

  21. Dispute Resolution • Conciliation • Mediation • Arbitration

  22. Diversity in the Workplace • Diversity: • The participation of different genders, races, ethnicities, nationalities, and abilities in the workplace.

  23. Primary Characteristics SexualOrientation Age Gender Race Ethnicity Abilities Characteristics of Diversity • Secondary Characteristics • Education • Work Background • Income • Marital Status • Parental Status • Military Experience • Religious Beliefs • Geographic Location

  24. Characteristics of Diversity 2000 Population 281,421,906 White Persons 75.1% African-American Persons 12.3% American Indian/Alaskan Persons 0.9% Asian Persons 3.6% Native Hawaiian/Pacific Islander 0.1% Hispanic/Latino Persons 12.5% Source: “USA QuickFacts from the US Census Bureau” from http://quickfacts.census.gov/qfd/states/00000.html (accessed June 8, 2001).

  25. 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.

  26. HRM Pays • The median annual income for various HR jobs: • Benefits Director $105,865 • Training Director 84,516 • HR Director 78,968 • Training Material Development Specialist 58,403 • Recruitment & Interviewing Specialist 51,669

  27. Solve the Dilemma 1. What did Medallion’s HRM department do right in dealing with the employees who were laid off? 2. What are some of the potential problems that must be dealt with after an organization experiences a major trauma such as massive layoffs? 3. What can Medallion do to make the team approach work more smoothly? What role do you think diversity training should play?

  28. 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?

  29. Additional Discussion Questions and Exercises 1. Where do most firms recruit qualified applicants? 2. Why has the use of physical examinations in the selection process become controversial for business? 3. Employee Assistance Programs (EAPs) add to company costs. Why should a firm bother with EAPs ? 4. Bring a copy of a local newspaper “Help Wanted” section to class. What qualifications (job specifications) do the ads request of applicants?

  30. Additional Discussion Questionsand Exercises 5. Bring a copy of a performance appraisal form to class. Copies may be secured from companies or examples may be presented in textbooks. Is the performance appraisal based on objective or subjective information? Is the performance appraisal based on preset objectives for the individual employee?

  31. Chapter 11 Quiz 1. Which of the following positions is most likely to be compensated through commissions? a. counter worker at a fast-food restaurant b. bricklayer c. automobile salesperson d. secretary 2. Which of the following is not an example of a benefit? a. bonuses b. retirement plans c. health insurance d. credit union membership

  32. Chapter 11 Quiz 3. Which of the following brings in a neutral third party to settle the dispute in which the decision made by the third party is legally binding and enforceable? a. boycott b. conciliation c. mediation d. arbitration 4. Which of the following is NOT a benefit of work-force diversity? a. more productive use of company's human resources b. reduced conflict among employees of different ethnicities c. increased conflict among employees of different ethnicities d. increased innovation and creativity

  33. Multiple Choice Questions about the Video 1. Why are some organizations providing on-site gyms or discounted memberships to outside health clubs? a. to improve employee health b. to reduce health care costs to the organization c. to reduce the number of work days lost due to health problems d. all of the above 2. Which of the following is the most likely reason that firms are offering innovative programs that target employees’ physical and emotional well-being? a. to reduce turnover b. because they just want to be nice c. to give in to employee demands d. because the union made them do it

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