Busn 101 Chapter 11

1. Busn 101 Chapter 11 Human Resource Management

2. Goals • Explain the importance of human resource management • Describe current issues in managing human resources • 5 Steps in human resource planning • Methods used to recruit new employees • Recruitment challenges • Six steps in selecting employees • Types of employee training and developing methods • Six steps in appraising employee performance • Objectives of employee compensation programs • Pay systems and fringe benefits • Scheduling plans to adjust to worker’s needs • Promotion, reassignment, termination, retirement • Effects of legislation on human resource management

3. Wegmans Food Market (East Coast Grocery Chain) • No matter how much we invest in our people (employees), we get much more in return • Labor costs 16% of sales (industry average is 12%) • Profit sharing • Medical coverage • College scholarships • Paid trips to Europe and Napa Valley for research • Employee turnover 6% (industry average is 19%) • Employees empowered to make customers happy • Do not have to check with supervisors • Go to customer’s home • Cook turkey when customer’s oven is not big enough

4. 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

5. People are the Ultimate Resource New ideas solve problems New ideas can create new revenues and new jobs for a business People come up with new ideas Human resource management is an important and critical function in any business because hiring creative people with new ideas is key to success People with new ideas are the most important asset for any company

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

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

9. Human Resource Challenge • Shortages • Unskilled Workers • Undereducated Workers • Underemployed • Skills > Job Requires • Shift in Workforce Composition • Aging workers with knowledge • Laws & Regulations • Single-Parent & Two-Income Families • Demand for daycare & more • Attitudes Toward Work • More Leisure • Continued Downsizing • Overseas Labor Pools • Customized Benefits • Employees With New Concerns • Health care, Disabilities, Affirmative Action • Decreased Loyalty

10. Determining HR Needs • Prepare HR Inventory • Prepare Job Analysis • Job Description • Job Specification • Assess HR Demand • Assess HR Supply • Establish Strategic Plan

11. Prepare HR Inventory • Inventory (database) should include: • Ages • Names • Education • Capabilities • Training • Specialized Skills • Languages spoken • This helps to assess whether or not the employees are trained, technically up to date, etc.

12. Prepare Job Analysis • Job Analysis • A study of what is done by employees who hold various job titles and it results in these two documents: • Job Description • A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions • Job Specifications • A written summary of the minimum qualifications required of workers to do a particular job

13. Assess HR Demand HR managers anticipate the organization’s requirements (identified in the forecast process) and make sure that trained people are available when needed

14. Assess HR Supply • Labor force is continually shifting: • Getting older • Becoming more technically orientated • Shortages in future? • Engineers and Technology workers • Oversupply in future? • Assembly line workers • Recession

15. Establish Strategic Plan • Once you have prepared (1st 4 steps of determining Needs): • Inventory • Job Description & Specification • Demand • Supply • Strategic Plan: • Recruiting • Selecting • Training • Developing • Apprising • Compensating • Scheduling

16. Recruitment • The set of activities used to obtain a sufficient number of the right people at the right time

17. Difficulties in Recruiting • Policies that require that promotions come from within • Union Regulations • Offer low wages • Find employees that fit corporate culture • Teams, Participative management • Skilled workers are not available

18. Recruiting From A Diverse Population

19. HR Executives’ Recruiting Preferences Note: Multiple responses allowed Source: USA Today

20. Selection • The process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization

21. Select Employee Who Will Be Productive • Select • Application Form • Interview • Test • Investigate • Examine • Probation • Selection process can be very expensive • Hiring from within can be less expensive • Reducing employee turnover (getting happy employees to stay) can be less expensive

22. Application Form • Application form: • Legal guidelines limit the kinds of questions • Career objectives • Past work experiences • Educational background • Other qualifications • Smart Assessment program • Answer question by computer, and it decided whether you get an interview, what questions to ask and what position might be suitable • Reduces hiring time and perhaps employee turnover

23. Typical 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?

24. Questions to avoid: • Interview questions to avoid because they may show illegal bias. • 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)

25. Interviewing Mistakes Source: USA Today

26. Number Interviewed to Find Quality Hire Source: USA Today, January 24, 2005

27. Test • Must be related to the job • Can you use Excel? • Can you weld? • Can you use a nail gun? • Can you do the math?

28. Investigate • Investigate: • Work record • School record • Credit history • References

29. Physical Examine • Medical tests cannot be given to screen out individuals • In some states physical examines can be given only after someone has been accepted • In states that allow preemployment physical examines, the test must be given to everyone

30. Probation • Hire employee, then evaluate, then decide if employee will be permanently hired • Highline does this

31. Applicants’ Mistakes Source: USA Today

32. Contingent Workers • Contingent Workers • Workers who do not have the expectation of regular, full-time employment • Part-time workers • Seasonal workers • Few benefits • Flexibility for employee

33. Training And Development • All attempts to improve productivity by increasing an employee’s ability to perform. • Training • Short-term skills • Development • Long-term abilities • Training And Development is usually money well spent • Higher retention • Increased productivity • Higher job satisfaction • Increase stock value

34. Training And Development 3 steps • Assess Firm Needs: • Needs of organization • Skills of employees • Design activities to train and develop to meet needs • Evaluate effectiveness of training and developing

35. Training And Development • Employee Orientation • The activity that introduces new employees: • To the organization • To fellow employees • To their immediate supervisors • To the policies, practices, and objectives of the firm • On-the-job-training • Employee immediately begins his or her tasks and learns by: • Doing • Watching others for a while and then imitating them • Apprentice Programs • Training programs involving a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft

36. Training And Development • Off-the-job Training • Training that occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development • Here at Highline, some people leave for a few years to get their Ph. D. • Online Training • Training programs in which employees attend classes via the internet • Vestibule Training • Training done in schools where employees are taught on equipment similar to that used on the job • Auto Repair • Computer Hardware

37. Training And Development • Job Simulation • The use of equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting then on the job • Airline training • Tank training • Management Development • The process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time • Learn to: • Be good communicators • Listen and have empathy • Manage time well

38. Networking • Networking • The process to establishing and maintaining contacts with key managers in one’s own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems • Building a network of contacts that you can call on at a later time • Mentor • An experiences employee that supervises, coaches, and guides lower-level employees by introducing then to the right people and generally being their organizational sponsor

39. Diversity In Management Development • Supreme Court ruled that is illegal to bar women from clubs where business activity flows • Groups that help with Networking: • Black Enterprise magazine networking forums • Monte Jade association

40. Performance Appraisals • An evaluation in which the performance level of the employee is measured against the established standards to make decisions about promotions, compensation, additional training, or firing • Which is it? • Performance Level < Established Standards • Performance Level = Established Standards • Performance Level > Established Standards

41. Six Steps For Performance Appraisals • Establish Standards • Communicate Standards • Evaluate Performance • 360-degree review • Discuss Results With Employees • Most of us are not perfect at our jobs at first • Good time to get employee feedback • Take Corrective Action • Can we improve • Use Results to Make Decisions • Fire? • Promotion?

42. Effective Appraisal Don’t Do • Rush the process • Attack employee personally • Evaluate in front of others (not after humiliation, but improvement) • Let problems build • End on negative note • Allow sufficient time • Evaluate work critically • Evaluate in private (not after humiliation, but improvement) • Address problems early on • End on positive note

43. Compensation & Benefit Plan Objectives: • Attract quality workers • Provide incentive to work efficiently (productively) • Prevent employees from leaving • Maintain low costs (because Labor Costs as a percentage of Sales can be high) • Achieve by using policies that create happy productivity workers • Provide a sense of security through benefits such as insurance and retirement plans

44. Team Pay • Think of Football (individual and team pay) • Methods: • Profit sharing • Gain-sharing • Stock Options (team and time pay) • Excel examples of Compensation 

45. Fringe Benefits • Fringe Benefits • Benefits such as sick-leave pay, pension plans, and health plans that represent additional compensation to employees beyond base wages/salary • Cafeteria-fringe Benefits • Fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount

46. Scheduling • Flextime Plan • Work schedules that gives employees some freedom to choose when to work, as long as they work the required number of hours • Core Time • In a flextime plan, the period when all employees are expected to be at their job stations • Flextime not for all businesses • Assembly lines, managers worker longer, communication may suffer

47. Scheduling with Flex Time & Core Time

48. Scheduling • Compressed Work • Work schedule that allows an employee to work a full number of hours per week but in fewer days • Job Sharing • An arrangement whereby two part-time employees share one full-time job • Helps people who want to work part-time • Managers have to train and supervise twice as many people

49. Home-based work • Individual: • Reduces expense of transpiration and work clothes • Avoid company politics • Must have discipline to stay focused • Company • Can be a cost saver • Can create happier workers • Difficult to appraise or build teams

50. Moving Up, Over and Out • With Flatter Corporate Structures • Moving Over to a new position may be more common then moving Up to a new position • Layoffs and Firings • Firms must be careful when firing