Chapter 11
Human
Resource
Management:
Finding and
Keeping the
Best
Employees
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Working with
People is Just
the Beginning
LG1
HUMAN RESOURCE
MANAGEMENT
Human Resource Management (HRM) –
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. Law changes that rewrote old workplace practices.
11-7
Working with
People is Just
the Beginning
LG1
HUMAN RESOURCE MANAGEMENT
Roles
11-8
Working with
People is Just
the 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.
HR can both help and hurt your career
Source: Smart Money, www.smartmoney.com, accessed November 2012.
11-9
Working with
People is Just
the Beginning
LG1
What you post on Facebook
can get you fired
Was this termination justified?
Swiss Woman Caught Surfing Facebook
While 'Home Sick' From Work
According to Reuters, an employee of
Nationale Suisse called out sick from work,
claiming that "she could not work in front of a
computer as she needed to lie in the dark."
When she was discovered to be surfing
Facebook from home, she was terminated.
The woman maintained that she had used her
iPhone to check her Facebook page from bed;
however, Nationale Suisse issued a statement
saying explaining that the incident "had
destroyed its trust in the employee."
Source: Huffington Post, July 26, 2010
11-10
Developing the
Firm’s Ultimate
Resource
LG1
DEVELOPING the FIRM’
’S
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.
• Human resources is now the
job of all managers
11-11
Laws Affecting
Human Resource
Management
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
Federal government now involved in HR
11-13
Laws Affecting
Human Resource
Management
LG2
1972 EQUAL EMPLOYMENT
OPPORTUNITY ACT (EEOA)
Strengthened Equal Employment Opportunity
Commission (EEOC)
• Can issue workplace guidelines for acceptable conduct.
• Can mandate specific recordkeeping procedures.
• Was vested with the power of enforcement.
11-14
Laws Affecting
Human Resource
Management
LG2
CONTROVERSIAL PROCEDURES
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
like affirmative action
Reverse discrimination lawsuits are going to court:
Supreme Court upholds ban on affirmative action in college
admissions (April 2014)
11-15
Laws Affecting
Human Resource
Management
LG2
CIVIL RIGHTS ACT of 1991
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.
11-16
Laws Protecting
Employees with
Disabilities and
Older Employees
LG2
LAWS PROTECTING
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.
- Americans with Disabilities Amendments
Act (2008) expanded protection
- (2011) new regulations widened types of
disabilities covered by ADA and shifted
the burden of proof of disability from
employees to employers.
11-17
Laws Protecting
Employees with
Disabilities and
Older Employees
LG2
AGE DISCRIMINATION in
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.
11-18
Effects of
Legislation
MINDING the LAW in HRM
LG2
• Employers must know the law
and act accordingly.
• Legislation affects all HR areas
• Court cases highlight that
sometimes it’s proper to go
beyond providing equal rights
• Regular changes in law and
legislation
11-19
Determining a
Firm’s Human
Resource Needs
LG3
CAREER PLAN
Preparation & Analysis
In essence, this section is a job analysis
Conduct detailed research on your top ranked occupation:
1. Please go to the O*NET Online web page http://www.onetonline.org/
2. Type your top ranked occupation into the search field (top right of the page)
3. Click on the appropriate link, and then
4. Click on the Details tab for the Details Report.
This page will give sufficient detail for you to complete the following tables:
What is your Top Ranked Occupation?
Tasks
What are the 5 most important tasks?
1.
2.
3.
4.
5.
How can you build experience and skill doing these?
Determining a
Firm’s Human
Resource Needs
LG3
CAREER PLAN
Preparation & Analysis
Tools & Technology
Which 5 do you feel are most important?
1.
2.
3.
4.
5.
Knowledge
What are the 5 most important knowledge areas?
1.
2.
3.
4.
5.
Skills
What are the 5 most important skill areas?
1.
2.
3.
4.
5.
How can you build experience and skill doing these?
How can you build experience and skill doing these?
How can you build experience in these skills?
Determining a
Firm’s Human
Resource Needs
LG3
CAREER PLAN
Preparation & Analysis
Abilities
What are the 5 most important ability areas?
1.
2.
3.
4.
5.
Work Activities
What are the 5 most important work activities?
1.
2.
3.
4.
5.
Work Context
What are the 5 most common daily occurrences?
1.
2.
3.
4.
5.
How can you build experience in these abilities?
How can you build experience in these activities?
How can you build experience in these areas?
Determining a
Firm’s Human
Resource Needs
LG3
CAREER PLAN
Preparation & Analysis
Education - Based on the extent of preparation needed (education, experience, training),
What education is required?
What is your plan to attain this level of education?
Credentials & Certification
What credentials/certification are required?
What is your plan to attain these?
Work Styles
What are the 5 most important work styles?
1.
2.
3.
4.
5.
How can you build these attitudes and attributes?
Related Occupations
Which of the related occupations would you like to examine in detail? Last as many as you wish (for future exploration)
Determining a
Firm’s Human
Resource Needs
LG3
CAREER PLAN
Preparation & Analysis
Wages and Employment Trends
What are the California wages?
(click for local)
High = $
Median = $
Low = $
Are the wage levels attractive to you?
What is your zip code?
Wages for your zip code?
High = $
Median = $
Low = $
Additional Information (click on the link for the Occupational Outlook Handbook – most recent year)
Please list additional tips provided that may help you to prepare for this occupation:
1.
2.
3.
4.
5.
Finding Jobs – next slide
Recruiting
Employees
from a Diverse
Population
FINDING JOBS ON LINKEDIN
LG4
Take Notes for each video:
1) Finding Jobs on LinkedIn - Video (7 min)
2) Finding Jobs on Indeed – Video (5 min)
3) Finding Jobs on Twitter – Video (6 min)
4) Finding Jobs on Monster – Video (5 min)
5) Finding Jobs on Glassdoor – Video (5 min)
Write: Which site(s) do you think might be the best for you?
Determining a
Firm’s Human
Resource Needs
LG3
HUMAN RESOURCE
PLANNING PROCESS
Inventory of
Employees
Prepare
Job Analysis
Assess
HR Demand
Assess Future
Labor Supply
Establish
Strategic Plan
11-27
Determining a
Firm’s Human
Resource Needs
WHAT’S a JOB ANALYSIS?
LG3
Job Analysis –
Study of what employees do who hold various job titles.
Job Description – A summary of 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 minimum
qualifications needed to do a particular job.
11-28
Recruiting
Employees
from a Diverse
Population
RECRUITING EMPLOYEES
LG4
• Recruitment -- The set of activities for obtaining the
right number of qualified people at the right time.
• Human resource managers use both internal
and external sources to recruit employees.
• Small businesses often make use of web
sources like CareerBuilder and Monster to
recruit employees.
11-29
Recruiting
Employees
from a Diverse
Population
EMPLOYEE SOURCES
LG4
When looking
for a job . . .
Which
have/would
you use?
11-31
Selecting
Employees
Who Will be
Productive
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.
11-32
Selecting
Employees
Who Will be
Productive
LG5
SELECTION
Companies with
best leadership (top 20)
Which companies do you think were
ranked in the Global Top 20 Best
Companies for Leadership?
Global survey:
2,100 organization
17,000 individuals
115 coutries
Source: http://www.haygroup.com/bestcompaniesforleadership/
11-33
Selecting
Employees
Who Will be
Productive
OOPS!
Areas Where Job Applicants Make Mistakes
LG5
Source: USA Today.
Any experiences with interviews or resume errors?
Do you follow up after an interview?
11-35
Hiring
Contingent
Workers
HIRING CONTINGENT WORKERS
LG5
Contingent Workers -- Includes part-time and
temporary workers, seasonal workers, independent
contractors, interns and co-op students
-
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
11-36
Training and
Developing
Employees for
Optimum
Performance
LG6
TRAINING and DEVELOPING
EMPLOYEES
Training and Development –
All attempts to improve productivity by
increasing an employee’s ability to perform.
Timeline
Training
focuses on
short-term
skills
Development
focuses on
long-term
abilities
11-40
Training and
Developing
Employees for
Optimum
Performance
LG6
Assess
organizational
needs
STEPS of TRAINING
and DEVELOPMENT
Assess
employee
skills
Develop
appropriate
training needs
Designing
training
activities
Evaluate
training
effectiveness
Training and
Developing
Employees for
Optimum
Performance
LG6
•
•
•
•
•
•
•
MOST COMMONLY USED TRAINING
and DEVELOPMENT ACTIVITIES
Orientation
On-the-Job Training
Apprenticeships
Off-the-Job Training
Online Training
Vestibule Training
Job Simulation
How many
of these
have you
experienced?
11-43
Networking
LG6
USING NETWORKS and
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.
How can you use sites like LinkedIn, Facebook, and Twitter to
establish and maintain contacts with key managers in and out
of the organization?
11-46
Appraising
Employee
Performance to Get
Optimum Results
LG7
APPRAISING PERFORMANCE
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.
11-47
Appraising
Employee
Performance to Get
Optimum Results
LG7
SIX STEPS of PERFORMANCE
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.
11-48
Appraising
Employee
Performance to Get
Optimum Results
LG7
•
•
•
•
•
•
MAJOR USES of
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
Were you ever evaluated? Did you see the results?
What was the evaluation outcome? (get to keep your job?)
11-49
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
11-53
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.
11-55
Fringe Benefits
LG8
HEALTHCARE, a PERK NOT
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.
11-56
Fringe Benefits
LG8
CAFETERIA-STYLE and
SOFT BENEFITS
Cafeteria-Style Fringe Benefits –
Allow employees to choose the benefits they want (up
to a certain dollar amount).
Soft Benefits –
- Onsite haircuts and shoe repair
- Concierge services
- Free meals at work
- Doggie daycare
- Onsite farmer’s markets
11-60
Fringe Benefits
LET’
’S GO to the BEACH!
Average Vacation Days by Country
LG8
Source: Reuters, June 24, 2010.
11-61
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.
Most flextime plans require Core Time -- When all employees are
expected to be at their job stations
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.
11-66
Home-Based
Work
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.
11-67
Home-Based
Work
GOING NOWHERE FAST
Worst Commutes in the World (minutes)
LG9
IBM ranked cities from 1 to 100 (100 being the worst).
Factors included traffic, road rage and gridlock
Source: Bloomberg Businessweek, December 20, 2010.
Connecting
through Social
Media
HR on the GO
• Technology allows people to work anywhere.
• 94% of remote workers use smartphones and
41% use tablets.
• ADP Mobile Solutions created an app that allows
employees to check HR, payroll and benefits.
• Employees can also clock in/out, manage their
401(k) and check timesheets without going into
the office.
11-70
Terminating
Employees
TERMINATING EMPLOYEES
LG10
• Many lay-offs during recent recession
• 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.
11-73
Chapter 12
Dealing with
Union and
EmployeeManagement
Issues
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Connecting
with…
DAVID STERN
National Basketball Association (NBA)
• Started with the NBA as an
outside legal counselor in
1966.
• Spearheaded settlements
between players and coaches
that led to free agency, salary
caps and revenue sharing .
• Commissioner since 1984,
he’s led the league to
unprecedented growth .
12-78
Employee Management
Issues
ORGANIZED LABOR
LG1
• Unions -- Employee organizations whose main goal
is to represent members in employee-management
negotiations of job-related issues.
• Labor unions were responsible for:
-
Minimum wage laws
Overtime rules
Workers’ compensation
Severance pay
Child-labor laws
Job-safety regulations
12-80
Union
Organizing
Campaigns
LG2
FORMING a UNION in the
WORKPLACE
• The National Labor Relations Board (NLRB) was
created to oversee labor-management issues and
provide guidelines for unionization.
• Certification -- The formal process by which a
union is recognized by the NLRB as the bargaining
agent for a group of employees.
• Decertification -- The process whereby employees
take away a union’s right to represent them.
12-91
Union
Organizing
Campaigns
WHY JOIN a UNION?
LG2
• Pro-union attitudes
• Poor management &
employee relations
• Negative organizational
climate
• Poor work conditions
• Union’s reputation
• Job security
12-92
Objectives of
Organized Labor
Over Time
UNION SECURITY AGREEMENTS
LG3
• Closed Shop Agreement -- Specified workers had to
be members of a union before being hired for a job.
• Union Shop Agreement -- Declares workers don’t
have to be members of a union to be hired, but must
agree to join the union within a specific time period.
• Agency Shop Agreement -- Allows employers to hire
nonunion workers who don’t have to join the union, but
must pay fees.
• Open Shop Agreement -- Agreement that gives
workers the right to join or not join a union, if one exists
in their workplace.
12-94
Union Tactics
STRIKES and BOYCOTTS
LG4
Strikes –
Workers refuse to go to work.
Primary Boycott –
Encourages both union members and the general public not
to buy the products of a firm in a labor dispute.
Secondary Boycott –
Attempt by labor to convince others to stop doing business
with a firm that is the subject of a primary boycott.
12-100
Management
Tactics
LG4
LOCKOUTS, INJUNCTIONS and
STRIKEBREAKERS
Lockout -- An attempt by
management to put pressure on
workers by closing the business, thus
cutting off workers’ pay.
Injunction -- A court order directing
someone to do something or refrain
from doing something.
Strikebreakers -- Workers hired to
do the work of striking workers until the
labor dispute is resolved; called ‘scabs’
by unions.
12-102