Chapter 11 Managing Human Resources

2. Chapter 11 Managing Human Resources

4. Amadeus Consulting: Where Employees are the Company Lisa Calkins and John Basso have created a company for which people are motivated to work for the long term.

5. Managing Human Resources Human Resources Management – all the activities involved in determining the organization’s needs for human resources and acquiring, training, and compensating people to fill those needs.

6. Managing Human Resources HRM Increasing in importance – Employee Concerns: Compensation Job satisfaction Personal performance Leisure Environment Opportunities for advancement

7. What is the Primary Reason you Accepted Your Job? 11-7

8. Planning – Human Resource Needs Job analysis – systematically determining pertinent information about a job (tasks, abilities, knowledge, skills) Job description -- formal & written specifications of the job (title, tasks, relationships, skills, duties, responsibilities). Job specification – description of the job qualifications (education, experience, personal/physical characteristics).

9. Employee Recruiting & Selection Recruiting – the formation of a pool of qualified job candidates from which management selects employees. Internal Sources Current employees Promotion from within External Sources advertising Employment agencies Online - Monster.com; Hotjobs.com

10. Employee Recruiting & Selection Selection – the process of collecting information about applicants and using information to make hiring decisions. Application Interviewing Testing Reference Checking

11. Employee Recruiting & Selection Application -- First stage of the selection process Name, address, telephone Education, previous work experience, references Qualifications for the position

12. Employee Recruiting & Selection Interview -- 2nd phase of selection Detailed information on candidate (applicant) Attitudes toward job

13. Employee Recruiting & Selection Testing -- Ability and performance testing Aptitude, IQ, Personality tests Applicant assessment Goodness of “fit” Myers-Briggs Type Indicator

14. Employee Recruiting & Selection Top 10 Interview Questions

15. Recruiting & Selecting Employees

16. Employee Recruiting & Selection Reference Checking -- Verifying education Previous work experience Privacy issues

17. Recruiting & Selecting Employees Sampling of Psychological Tests

18. Legal Issues in Recruiting & Selection Title VII of the Civil Rights Act -- Prohibits discrimination in employment Equal Employment Opportunity Commission (EEOC) Tests must be validated

19. Legal Issues in Recruiting & Selection Laws affecting HRM -- Americans with Disabilities Act (ADA) Age Discrimination in Employment Act Equal Pay Act

20. Training & Development Training-- teaching employees to do specific job tasks through classroom development or on-the-job experience. Development – training that augments the skills and knowledge of managers and professionals.

21. Training & Development HiPiHi, Novo King, UOneNet – Stimulate new training concepts

22. Assessing Performance • Performance Assessment – • Strengths • Weaknesses • Provides feedback • Objective or subjective • Quantitative or qualitative

23. Performance Characteristics

24. Turnover Turnover – employees voluntarily leave (quit); involuntary leave (fired). Management must replace workers. Promotion – advancement to higher-level job with increased authority, responsibility, and pay Transfer – move to another job within the company usually at same or similar level and wage rate Separations – employment changes involving resignation, retirement, termination, or layoff

25. Compensating the Workforce Reasons Employees Stay in Their Current Jobs

26. Compensating the Workforce Designing fair compensation plans Wage/salary survey – study indicating how much compensation comparable firms are paying for specific jobs that firms have in common

27. Compensating the Workforce Financial Compensation: Wages– financial rewards based on hours worked and/or level of output achieved.

28. Managing the workforce: Costco Versus Wal-Mart

29. Compensation Piece wages – based on level of output achieved. Motivate employees to increase output. Commission – incentive system that pays a fixed dollar amount or a percentage of the employee’s sales. Motivates employees to sell as much as possible.

30. Compensation Salary – financial reward calculated on weekly, monthly, or annual basis. (White collar employees, executives, professionals). Bonuses – monetary rewards provided by firm for exceptional performance or incentive to increase productivity

31. Compensation Profit sharing – a percentage of company profits distributed to employees, sometimes in the form of stock. ESOP– Employee Stock Ownership Plan. Company distributes shares to employees as a form of compensation.

32. Best Entry-Level Salaries

33. Benefits What are benefits? Non-financial forms of compensation: Pension plans Insurance (health, disability, life) Child & elder care

34. Benefits Bureau of Labor Statistics (2008) Total compensation = $28.11 per hour Wages/salaries = 69.8% Benefits = 30.2% Taxes, FICA, etc = 7.9%

35. Benefits EAP – Employee Assistance Program – Counseling and assistance for employees’ personal problems that may negatively impact job performance.

36. Fringe Benefits Traditional Fringe Benefits Sick leave Pension plans Health plans Extra compensation (bonuses) Soft Benefits Perks – work-life balance On-site child care Spas Food service Hair salons

37. Fringe Benefits Cafeteria Benefit Plans – a set financial amount allocated to employees which allows for selection of benefits most appropriate to each employee

38. Managing Unionized Employees Labor union – employee organization formed to deal with employers for achieving better pay, hours, and working conditions.

39. Managing Unionized Employees Collective Bargaining – negotiation process where management and unions reach agreement on wages, hours, and working conditions for the bargaining unit (employees represented by union).

40. Managing Unionized Employees Labor contract – the formal, written document that stipulates the relationship between union and management for a specific time period. The outcome of collective bargaining.

41. Unionized Employees 12% of workforce Unionized workers earn more per hour Concentrated in certain industries automotive manufacturing steel production Construction Public-sector (government)

42. Collective Bargaining Process

43. Labor & Management Disputes Pickets – public protests against the actions of the company or management. Strike – employee walkouts; work stoppage. Most effective economic weapon for unions in private sector. Boycott – attempt to keep people form purchasing the company’s products. Lockout – management’s version of the strike. Worksite is closed to prevent employees from working.

44. Outside Resolution of Disputes Conciliation – 3rd party intervention so that management & labor continue talks. Mediation – 3rd party helps to bring labor and management together to resolve disputes Arbitration – 3rd party settles dispute by imposing solution that is legally binding

45. Workforce Diversity

46. Population by Race (in thousands)

47. Benefits of Valuing Workforce Diversity • More productive use of human resources • Reduced conflict among employees • More productive working relationships • Increased commitment to organizational goals • Increased innovation and creativity • Increased ability to serve the needs of diverse customers

48. 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 Establishing specific hiring and promotion goals to resolve the discrepancy. Prohibits organizations from setting hiring quotas that might result in reverse discrimination.