Transcript Chap011

Chapter 11
Human
Resource
Management:
Finding and
Keeping the
Best
Employees
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Eleven
LEARNING GOALS
1. Explain the importance of human resource
management, and describe current issues in
managing human resources.
2. Illustrate the effects of legislation on human
resource management.
3. Summarize the five steps in human resource
planning.
4. Describe methods that companies use to recruit
new employees, and explain some of the issues
that make recruitment challenging.
11-2
Chapter Eleven
LEARNING GOALS
5. Outline the six steps in selecting employees.
6. Illustrate employee training and development
methods.
7. Trace the six steps in appraising employee
performance.
8. Summarize the objectives of employee
compensation programs, and evaluate pay
systems and fringe benefits.
11-3
Chapter Eleven
LEARNING GOALS
9. Demonstrate how managers use scheduling plans
to adapt to workers’ needs.
10. Describe how employees can move through a
company: promotion, reassignment, termination,
and retirement.
11-4
Profile
MARK PARKER
Nike
• Started as shoe designer,
rose to CEO in 2006.
• The 7,000 workers at Nike’s
headquarters have access to
two gyms, an Olympic-size
pool, five restaurants, and
have free on-site childcare.
• Named one of the 100 Best
Places to Work in 2006,
2007 and 2008.
11-5
Chapter Eleven
NAME that COMPANY
This company is one of the largest U.S. steel
producers. It pays its teams bonuses that are
calculated on quality—tons of steel that go out
the door with no defects. There are no limits on
bonuses a team can earn; they usually average
around $20,000 per employee each year.
Name that company!
11-6
Working with
People is Just
the Beginning
HUMAN RESOURCE MANAGEMENT
LG1
11-7
Working with
People is Just
the Beginning
LG1
HUMAN RESOURCE
MANAGEMENT (HRM)
• Human Resource Management -- 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. Changes in law that rewrote old workplace
practices.
11-8
Working with
People is Just
the Beginning
LG1
UNCOVERING the
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.
• What you post on Facebook can get you fired.
Source: Smart Money, May 2010.
11-9
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.
• The human resource job is
now the job of all managers
in an organization.
11-10
The Human
Resource
Challenge
LG1
CHALLENGES in FINDING
HIGH-LEVEL WORKERS
• A shortage of trained workers in key areas
• Worker shortage in skilled trades
• An increasing number of baby boomers who
delay retirement
• A declining economy with fewer full-time jobs
• Expanding global markets with low-wage workers
• Increasing benefit demands and benefit costs
• A decreased sense of employee loyalty
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
11-12
Laws Affecting
Human Resource
Management
LG2
1972 EQUAL EMPLOYMENT
OPPORTUNITY ACT (EEOA)
• Strengthened the Equal Employment Opportunity
Commission (EEOC).
• Gave EEOC the right to issue workplace
guidelines for acceptable employer conduct.
• EEOC could mandate specific recordkeeping
procedures.
• EEOC was vested with the power of
enforcement.
11-13
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 designed to
correct previous discrimination against minority or
disadvantaged groups.
• This policy has been at the center of many
debates and lawsuits.
11-14
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.
11-15
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.
- Passage in 2008 of Americans with
Disabilities Amendments Act
expanded protection.
- 2011 saw new regulations that widen
the range of disabilities covered by
the ADA and shift the burden of proof
of disability from employees to
employers.
11-16
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.
11-17
Effects of
Legislation
MINDING the LAW in HRM
LG2
• Employers must know the law
and act accordingly.
• Legislation affects all areas of
HRM.
• Court cases highlight that
sometimes it’s proper to go
beyond providing equal rights.
• Changes in law and legislation
occur regularly.
11-18
The MILLION WOMAN SUIT
AGAINST WALMART
(Legal Briefcase)
• Over 1 million women filed suit against Walmart
for gender dominance in the store’s
management ranks.
• The case charged that not only did the company
leapfrog over women for leadership roles, it
engaged in pay inequality and harassment.
• The Supreme Court dismissed the class-action
suit.
11-19
Progress
Assessment
PROGRESS ASSESSMENT
• What’s human resource management?
• What did Title VII of the Civil Rights Act of 1964
achieve?
• What’s the EEOC and what was the intention of
affirmative action?
• What does accommodations mean in the
Americans with Disabilities Act of 1990?
11-20
Determining a
Firm’s Human
Resource Needs
LG3
HUMAN RESOURCE PLANNING
PROCESS
1) Preparing a human resource
inventory of employees.
2) Preparing a job analysis.
3) Assessing future human
resource demand.
4) Assessing future labor
supply.
5) Establishing a strategic plan.
11-21
Determining a
Firm’s Human
Resource Needs
WHAT’S a JOB ANALYSIS?
LG3
• Job Analysis – A 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.
11-22
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.
11-23
IT’S NOT EASY BEING SMALL
(Spotlight on Small Business)
• To survive, small businesses must recruit and
retain qualified workers.
• Unfortunately, they lack the resources of larger
companies to compete for employees.
• Small businesses need innovations like:
- Letting staff help recruit and select candidates.
- “Test-drive” an employee.
- Seek out publicity through local media.
11-24
Recruiting
Employees from
a Diverse
Population
EMPLOYEE SOURCES
LG4
11-25
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.
11-26
Selecting
Employees Who
Will be
Productive
LG5
STEPS in the
SELECTION PROCESS
1. Obtaining complete application forms
2. Conducting initial and follow-up interviews
3. Giving employment tests
4. Conducting background investigations
5. Obtaining results from physical exams
6. Establishing trial (probationary) work periods
11-27
Selecting
Employees Who
Will be
Productive
LG5
OOPS!
Areas Where Job Applicants Make Mistakes
Source: USA Today, www.usatoday.com.
11-28
Hiring
Contingent
Workers
HIRING CONTINGENT WORKERS
LG5
• Contingent Workers -- Include part-time and
temporary workers, seasonal workers, independent
contractors, interns and co-op students.
• There are about 5.7
million contingent
workers in the U.S.
• Majority of contingent
workers are under 25.
11-29
Hiring
Contingent
Workers
LG5
WHY HIRE
CONTINGENT WORKERS?
• Companies hire contingent workers:
- 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
11-30
Hiring
Contingent
Workers
LG5
STUDENTS and the
CONTINGENT WORKFORCE
• With temporary staffing agencies, companies
have easier access to screened workers.
• Worker information is entered into their
databases.
• When students come back
to town, they can call the
agency and ask them to
put their names into the
system for work.
11-31
ARE UNPAID INTERNS
TOO INTERRED?
(Making Ethical Decisions)
• With few entry-level positions available, interns
can end up in an unpaid position for as long as
six months with no chance of advancement.
• Some businesses give interns lots of
responsibility; a Toronto paper fired all paid staff
and replaced them with unpaid interns.
• Is it ethical for companies to use unpaid interns if
they know they don’t have jobs to offer or if the
unpaid internships replace paid jobs?
11-32
Progress
Assessment
PROGRESS ASSESSMENT
• What are the five steps in human resource
planning?
• What factors make it difficult to recruit qualified
employees?
• What are the six steps in the selection process?
• Who is considered a contingent worker, and why
do company hire such workers?
11-33
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.
• Training focuses on short-term skills.
• Development focuses on long-term abilities.
11-34
Training and
Developing
Employees for
Optimum
Performance
LG6
THREE STEPS of TRAINING
and DEVELOPMENT
1. Assessing organization needs and employee
skills to develop appropriate training needs.
2. Designing training activities to meet identified
needs.
3. Evaluating the
training’s
effectiveness.
11-35
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
11-36
Management
Development
LG6
DEVELOPING EFFECTIVE
MANAGERS
• Management Development -- The process of
training and educating employees to become good
managers and monitoring the progress of their skills
over time.
• Management training includes:
- On-the-job coaching
- Understudy positions
- Job rotation
- Off-the-job courses and training
11-37
Management
Development
WHY GOOD EMPLOYEES QUIT
LG6
Source: Robert Half International
11-38
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.
• Networking and mentoring go beyond the work
environment.
11-39
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.
11-40
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.
11-41
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
11-42
Appraising
Employee
Performance to Get
Optimum Results
LG7
PERFORMANCE APPRAISAL
MISTAKES
Common Problems Made While Reviewing Employees
• Contrast Effect - Comparing one employee to
another.
• Halo/Horn Effect - Allowing performances in specific
areas to unfairly influence overall performance
evaluation.
• Similar-to-Me Effect - Generosity to those you feel
are more like you.
11-43
Progress
Assessment
PROGRESS ASSESSMENT
• Name and describe four training techniques.
• What’s the primary purpose of a performance
appraisal?
• What are the six steps in a performance
appraisal?
11-44
Compensating
Employees:
Attracting and
Keeping the Best
COMPENSATION PROGRAMS
LG8
• A managed and competitive compensation
program helps:
- Attract the kinds of employees the business needs.
- Build employee incentive to work efficiently and
productively.
- Keep valued employees from going to competitors or
starting their own firm.
- Maintain a competitive market position by keeping costs
low due to high productivity from a satisfied workforce.
- Provide employee financial security through wages and
fringe benefits.
11-45
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
11-46
Compensating
Teams
COMPENSATING TEAMS
LG8
• Team-based pay programs are more challenging
than individual pay systems.
• The two most common methods for teams
involve:
- Skill-Based: Pay is increased as skill increases.
(Eastman Chemical uses this system.)
- Gain-Sharing: Pay is increased as performance
increases. (Nucor Steel uses this system.)
11-47
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.
11-48
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.
11-49
Fringe Benefits
LG8
WHO PAYS for
EMPLOYEE BENEFITS?
• 74% of full-time workers
have employee-provided
retirement plans.
• 39% of part-time workers
have employee-provided
retirement plans.
• 71% of workers have
medical care benefits.
Source: Entrepreneur, May 2011.
11-50
Fringe Benefits
LG8
The RANGE of
FRINGE BENEFITS
• Fringe benefits include incentives like:
- Company cars
- Country club memberships
- Recreation facilities
- Special home mortgage rates
- Paid and unpaid sabbaticals
- Day-care and elder care services
- Dental and eye care
- Legal counseling
- Short or compressed work weeks
11-51
Fringe Benefits
LG8
SPECIAL PERKS at
DREAMWORKS
• Free DVDs and screenings of
current films.
• Free breakfast and lunch plus
dinner when working late.
• Free snack rooms on every
floor.
• Profit sharing.
• Ping-Pong and poker
tournaments during work
hours.
11-52
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 include:
- Onsite haircuts and shoe repair
- Concierge services
- Free meals at work
- Doggie daycare
- Onsite farmer’s markets
11-53
Fringe Benefits
LET’S GO to the BEACH!
LG8
Average Vacation Days by Country
Source: Reuters, June 24, 2010.
11-54
WORKING WORLDWIDE
(Reaching Beyond Our Borders)
• Managers need to understand the business
needs of each country they operate in.
- Compensation: Conversion to foreign currencies and
special allowances often are needed.
- Health and Pension Standards: Benefits are different
country-by-country.
- Paid Time Off: Vacation time, sick and personal leave
vary.
- Taxation: Tax policies vary.
- Communication: Employees can feel disconnected in
other countries.
11-55
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.
• Compressed Work Week -- Employees work the
full number of work hours, but in fewer than the
standard number of days.
• Job Sharing -- Lets two or more part-time
employees share on a full-time job.
11-56
Flextime Plans
USING FLEXTIME PLANS
LG9
• Most flextime plans require Core Time -- When all
employees are expected to be at their job stations.
• Flextime is difficult to incorporate into shift work
and managers have to work longer hours.
• Communication among employees can also be
difficult under flextime and managers have to be
alert to any system abuses.
11-57
Flextime Plans
A FLEXTIME CHART
LG9
11-58
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.
11-59
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.
11-60
Home-Based
Work
LG9
VIRTUALLY THERE
Tools to Help You Work From Home
• Communication:
- Google Apps
- Skype
- Yammer
• Collaboration:
- Google Docs
- GoToMeeting
- Dropbox
Source: Entrepreneur, January 2011.
11-61
Home-Based
Work
LG9
GOING NOWHERE FAST
Worst Commutes in the World
Source: Bloomberg Businessweek, December 20, 2010.
11-62
Job Sharing
Plans
JOB SHARING BENEFITS
LG9
• Provides employment opportunities for many
people who cannot work full time.
• Workers tend to be enthusiastic and productive.
• Absenteeism and tardiness are reduced.
• Employers can schedule part-time workers in
peak demand periods.
11-63
Moving
Employees Up,
Over and Out
MOVING EMPLOYEES
LG10
• Employees are promoted or
reassigned.
• Employees are terminated due
to performance or economic
situations.
• Employees retire.
11-64
Terminating
Employees
TERMINATING EMPLOYEES
LG10
• As the economic crisis grew, more and more
employers have had to lay off employees.
• Even when the economy is booming, 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.
11-65
Progress
Assessment
PROGRESS ASSESSMENT
• Name and describe five alternative compensation
techniques.
• What advantages do compensation plans such
as profit sharing offer an organization?
• What are the benefits and challenges of flextime?
Telecommuting? Job sharing?
11-66