Transcript ©2013 Cengage Learning. All Rights Reserved. o re n pos t eed Lteoa ra n p u b .l i A c l y a.

15
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Human Resource
Management:
Building a Top-Quality
Workforce
LO1 Why is Human Resource important to
business success?
LO2 What are key human resources issues
in today’s economy?
LO3 What are the challenges and
opportunities that the human resource
function faces?
LO4 What is involved in human resource
planning and what are the core human
resource responsibilities?
LO5 What is key federal legislation that
impacts human resources?
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Human Resource Management
 Human Resource Management (HRM)
•
All the activities involved in acquiring, developing and maintaining an organization’s human resources
 HRM Activities
•
Acquiring Human Resources
–
–
–
–
–
•
Planning labor needs
Job Analysis
Recruiting
Selection
Orientation
Developing Human Resources
– Training and Development
– Performance Evals(Appraisals)
•
Maintaining Human Resources
– Financial Compensation
– Benefits
 Legal Issues Impacting HRM
3
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Humble Beginnings
Everybody starts somewhere:
• Steve Jobs was an assembly worker at
HP when he was 13.
• Rachel Ray was a dishwashing
machine operator at Howard
Johnson.
© JustASC/ Shutterstock.com
• Quentin Tarantino was an usher at an
adult movie theatre.
• Mark Burnett was a childcare worker.
4
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Human Resource Management
Challenges
• Layoffs and Outsourcing
• Wage Gap
• Older Workers
• Younger Workers
• Women Workers
• Work-Life Balance
• Lawsuits
5
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Human Resource Planning
 The development of strategies to meet a firm’s future human
resources needs
Demand > Supply
Hire – Bring in new employees
Promote – Put existing employees in new, “better” positions
Transfer – Moving an existing employee to a different position
Supply > Demand
Laid Off – termination for economic or business reason
Fire – terminating the employee for performance reasons
Attrition – normal reduction of the work force that occurs when
employees leave the firm on their own accord (retire, find another job)
Early Retirement – letting employees within a few years of retirement retire
early and allowing them to receive their full benefits
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Job Analysis




A systematic procedure for studying jobs to
determine their various elements and
requirements
Job description
• A list of the elements that make up a
particular job
– Duties to be performed, working
conditions, the jobholder’s
responsibilities, the tools and
equipment used on the job
Job specification
• A list of the qualifications required to
perform a particular job
– Skills, abilities, education, and
experience
Used for recruiting, selecting, evaluation, and
compensation decisions
7
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Job Description and Job Analysis
8
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© The Studio Dog/Photodisc/Getty Images.
Job Analysis: Drawing the Map
Job Analysis
• What skills does the workforce already have?
• What skills do they need?
Job Description
Job Specifications
 Work with the music group to help  A bachelors degree in music
make major decisions regarding
management
the creative and business direction
of the band
 Negotiate recording contracts and
engagement fees
 A minimum of three years
experience managing a highprofile band
 Help band members understand
their rights and responsibilities
 Excellent communication and
networking skills
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9
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© The Studio Dog/Photodisc/Getty Images.
Recruitment: Finding the Right People
Internal Recruiting –
transferring or promoting
employees from within the
company
External Recruiting – looking for
employees outside the firm.
Recruiting Resources:
• Employment Websites
• Newspaper / Online Ads
Advantages:
• Boosts Morale
• Trade Associations
• Proven Track Record
• Colleges/Universities
• Lower Recruiting Costs
• Referrals
• Employment Centers
10
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Odd Ball Hiring Tactics
• Businesses are looking for creative people who can
think on their feet
"If you were shrunk to the size of a pencil and put in a
blender, how would you get out?“
"An apple costs 20 cents, an orange costs 40 cents, and a
grapefruit costs 60 cents, how much is a pear?"
• Other examples include “auditions” and cocktails
• Microsoft has a notorious interview process, there is
a wikipedia page dedicated to it
11
Source: Oddball Hiring Tactics, CNN Money Website, September 16, 2011, http://money.cnn.com/galleries/2011/smallbusiness/1109/gallery.hiring_tactics/index.html?section=money_smbusiness, accessed September 29, 2011;
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Selection: Making the Right Choice
Application / Resumes
Interviews
Employment and Drug Testing
References and Background Checks
12
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Structured Interviews
• Develop a list of questions prior to interview
• Focus questions on behaviors and experiences
Describe a time when you…
What would you do if…
If you realized that a co-worker…
13
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Sample Interview Questions
14
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Contingent Workers
Companies with fluctuating employment needs may opt
to hire contingent workers
 Temporary Full-Time
 Independent Contractors
 On-call Workers
Contingent workers comprise 10% of U.S. employment
Employers like contingent workers because there is a
cost savings but contingent workers may be less
committed
Source: “You’re Hired. At Least for Now,” by Anne Kates Smith, March 2010, Kiplinger website, http://www.kiplinger.com/magazine/archives/employers-choose-temps-contract-workers.html (accessed July 13, 2010); Special Report on Contingent Staffing—The
Future of Contingent Staffing Could Be Like Something Out of a Movie, By Irwin Speizer, October 19, 2009, Workforce Management website, http://www.workforce.com/section/recruiting-staffing/feature/special-report-contingent-staffingthe-futurecontingent/, accessed July 5, 2011.
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Orientation
 Effective orientations are the first
step in the development process
 Introduce employees to the
company culture
 Strong orientation programs reduce
employee turnover
 Formal or Informal, Long or Short
Source: Orientation: Not Just a Once-over-Lightly Anymore by Matt DeLuca HRO Today, April/May 2005, http://www.hrotoday.com/Magazine.asp?artID=928. New Emphasis on First Impressions by Leslie Gross Klaff, March 2008, Workforce Management
website, http://www.workforce.com/archive/feature/25/41/58/index.php?ht=, accessed April 7, 2009Show and Tell—Disney Institute’s Four-Day Seminar on HR Management by Leon Rubis, HR magazine, April 1998; New Employee Experience Aims for
Excitement Beyond the First Day by Daryl Stephenson, Boeing Frontiers Online, May 2002, http://www.boeing.com/news/frontiers/archive/2002/may/i_mams.html.
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© The Studio Dog/Photodisc/Getty Images.
Training and Development
•
•
Training
– The process of teaching employees new skills
– Training Programs
• On-the-job training
• Job simulation
• Off-the-job training
• Role Playing
• Classroom teaching and lectures
Developing Labor
– The process of enhancing or augmenting employees’
current skills
– Development Programs
• Conferences / Seminars
• Classroom teaching and lectures
• Role Playing
17
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Training and Development: Honing the
Competitive Edge
 Increase innovation
 Increase technology adoption
 Increase productivity
 Increase motivation
 Decrease liability
© Digital Vision/Jupiterimages
18
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On-the-Job Training
On-the-Job Training –
popular and low cost employees simply begin
working under the
guidance of experienced
employees
Apprenticeships –training
programs where beginners
serve as an assistant
prior to working
19
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Performance Evaluation (Appraisals)
 Performance Evaluation
•
The evaluation of employees’ current and
potential levels of performance to allow
managers to make objective human resource
decisions
 Uses of performance appraisal
•
Let workers know how they are doing and how
they can do better
•
Provide the basis for distributing rewards
•
Help the organization monitor employee
selection, training, and development activities
20
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Evaluation: Assessing Employee
Performance
Performance Appraisals
• Straightforward, frequent feedback is a powerful tool
• Every six months or once a year
• Compare actual results to expected results
• Related to compensation, promotions, training, transfers,
and terminations
Evaluation should be a feedback PROCESS
• Create evaluation tool related to objectives
• Managers should be trained
• Employees should be informed of the process
21
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Performance Appraisal GOOFS
Gotcha!
The Once-a-Year-Wonder
Straight from the Gut
What Have You Done for Me Lately?
The “Me” Filter (Bias)
22
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Compensation and Benefits
 2 Basic Ways to Compensate Employees
 1) Financial Compensation
–
The payment employees receive in return for their labor
 2) Benefits
–
Rewards in addition to regular compensation that are provided indirectly to the
employee
 Effective employee reward systems must:
•
•
•
•
Enable employees to satisfy their basic needs
Provide rewards comparable to those offered
by other firms
Be distributed fairly in the organization
Recognize that different people have different needs
23
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Compensation: Show Me the Money
Compensation – the combination of pay and benefits
Hourly
Wages – pay
in exchange for
the number of
hours or days that
an employee
works
Salary – the pay
that employees
receive over a
fixed period,
regardless of
hours worked
Benefits –
noncash
compensation like
health care and
vacation
24
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Performance Pay Options
Commission
Bonuses
Profit Sharing
Stock Options
Pay for Knowledge
©Arkady/ Shutterstock.com
25
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Benefits: From Birthday Cakes
to Death Benefits
Legally Mandated Benefits
•
•
•
•
•
Social Security
Medicare Contributions
Unemployment Payments
Workers’ Compensation
Federal Family and Medical
Leave
Optional Benefits
•
•
•
•
•
•
Paid Vacation & Holidays
Paid Sick Days
Health Insurance
Retirement Programs
Product Discounts
Tuition Reimbursement
26
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Wacky Benefits
©Poulsons Photography/ Shutterstock.com
• Zappos offers a full-time, on site life coach
who helps employees balance life and
discover higher purpose
• Chesapeake Energy offers on-site medical
services including Botox
• NetApp supports volunteer work and allowed
one employee five weeks off to train to be a
firefighter
• DPR Construction features a wine bar in all 17
offices where employees can toast
accomplishments
27
Source: Perking Up: Some Companies Offer Surprising New Benefits by Sue Shellenbarger, March 18, 2009, Wall Street Journal website, http://online.wsj.com/article/SB123733195850463165.html, accessed April 9, 2009.
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Benefits: Cafeteria Style
• Providing employees a set dollar amount
that they spend on company benefits
• Allows employees to tailor their benefits
to their individual needs
28
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Flexible Scheduling
Compressed
Workweek
Flextime
Telecommuting
Many workers have begun to give up flexible schedules
or to stop asking for them since the economic downturn
and massive layoffs.
Source: Questions and Answers about Flexible Work Schedules: A Sloan Work and Family Research Network Fact Sheet, updated September 2008,Sloan Work and Family Research Network website, http://wfnetwork.bc.edu/pdfs/flexworksched.pdf,
accessed April 9, 2009; Work-life benefits fall victim to slow economy by Andrea Shim, April 4, 2009, Los Angeles Times website, http://www.latimes.com/business/la-fi-flexible4-2009apr04,0,4344887.story, accessed April 4, 2009.; Flexible Hours and
Telecommuting—Not the Ticket to the Top of Corporate America, Five Questions for Susan DePhillips, Workforce Management, September 2005, http://www.workforce.com/section/02/article/24/14/66.html
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Commuting at Zero Gallons per Mile
• Telecommuting can offer real benefits
• We could save 1.35 billion gallons of fuel per year if
everyone able would telecommute just 1.6 days per
week
• Employees use less energy at home than they do at
the office
• Telecommuting can go a long way toward reducing
the overall carbon footprint of many businesses
Source: Home Sweet Office: Telecommute Good for Business, Employees, and Planet by Brendan I. Koerner, September 22, 2008, Wired website, http://www.wired.com/culture/culturereviews/magazine/16-10/st_essay, accessed April 11, 2009; Give telecommuting the green light by Ted Samson, June 2, 2007, InfoWorld website, http://www.infoworld.com/d/greenit/give-telecommuting-green-light-628, accessed April 11, 2009; Sun, employees find big savings from Open Work telecommuting program by Ted Samson, June 19, 2008, InfoWorld website, http://www.infoworld.com/d/green-it/sun-employees-find-big-savings-open-work-telecommuting-program-821, accessed April 11, 2009. “National Study Finds Electronics
Significantly Reduce Energy,” Press Release, September 19, 2007, Telecommute Connecticut! website, http://www.telecommutect.com/employers/pr_9_27_07.php (accessed July 2, 2010).
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Separation: Breaking Up is Hard to Do
Employees will leave for a variety of reasons

Fired

Laid Off

Transfers

Career Aspirations

Personal Reasons
Employers should proceed carefully to avoid
wrongful termination lawsuits
31
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Legal Issues Impacting HRM
•
Civil Rights Act (1964, 1991), Title VII
–
–
–
–
–
–
–
Prohibits discrimination based on sex, race,
color, religion, or national origin
Enforced by EEOC (Equal Employment
Opportunity Commission), 1972
Disparate Treatment – intentional
discrimination
Disparate Impact – unintentional
discrimination
Affirmative Action – plan that increases
minorities and women in workforce
Reverse Discrimination
Sexual Harassment
• Quid Pro Quo
• Hostile Work Environment
•
Age Discrimination Act (1967)
–
•
Americans with Disabilities Act (1990)
–
–
•
Prevents discrimination against qualified
individuals with disabilities, and requires
employers to make reasonable accommodations
AIDS
Fair Labor Standards Act (1938)
–
–
•
Prevents discrimination against individuals aged
40 or above
Establishes a minimum wage and overtime for
employees working over 40 hours per week
Most managers and other professionals are
exempt
Unemployment Compensation (1930’s)
–
–
Requires employers to maintain insurance to
protect workers when laid off
37 weeks (prev 26 weeks)
32
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Legal Issues: HR and the
Long Arm of the Law
TITLE VII: CIVIL RIGHTS ACT OF 1964
• Prohibits discrimination in hiring, firing,
compensation or privileges of employment based
on race, color, religion, sex or national origin
Supplemented with legislation to cover age,
disability and pregnancy
• Created the Equal Employment Opportunity
Commission (EEOC)
33
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Sexual Harassment:
Eliminating Hostility
• Discrimination based on gender (his or her)

From requests for sexual favors to the presence of a hostile
work environment
• Unwelcome conduct by anyone
• The number of cases in the last decade have
dropped but the number of charges filed by
men rose from 12.9 to 15.9%
• Employers may share accountability if they
did not take “reasonable care”
34
Source: Sexual Harassment Charges, EEOC & FEPAs Combined: FY 1997–FY 2008, EEOC website, updated March 11, 2009, http://www.eeoc.gov/stats/harass.html, accessed April 10, 2009.
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Legal Issues: HR and the
Long Arm of the Law
Fair Labor Standards
Act of 1938
Immigration Reform
and Control Act of 1986
Equal Pay Act
of 1963
Americans with
Disabilities Act of 1990
Occupational Safety
and Health Act of 1970
Family and Medical
Leave Act of 1996
35
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© The Studio Dog/Photodisc/Getty Images.
Affirmative Action: The Active Pursuit
of Equal Opportunity
• Affirmative action seeks to make up for systematic discrimination of
the past, creating more opportunities in the present
• Affirmative action has become increasingly controversial


Opponents have raised concerns about reverse discrimination
Supporters believe that those who benefit have relevant and valid
qualifications
• Recent Supreme Court decisions have supported affirmative action
but they rejected mechanistic programs
• The long-term fate of affirmative action is unclear
36
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Affirmative Action (cont.)
• Affirmative Action (a series of executive orders)
– Applies to all employers with 50 or more employees holding federal
contracts in excess of $50,000
– Such employers must actively encourage job applications from
members of minority groups and hire qualified employees from
minority groups not fully represented in the organization
• Valid Affirmative Action Program
1)
2)
3)
4)
Identify racial/gender imbalance
Plan doesn’t unnecessarily trammel rights of majority
No bar is created (no quotas)
Must be temporary
37
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15
Looking Back
• Why is Human Resource important to business success?
• What are key human resources issues in today’s economy?
• What are the challenges and opportunities that the human
resource function faces?
• What is involved in human resource planning and what are the
core human resource responsibilities?
• What is key federal legislation that impacts human resources?
38
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