Chapter 9 Managing Human Resources

1. Chapter 9 – Managing Human Resources

2. Chapter 9 Learning Goals What is the human resource management process? How are human resource needs determined? How do human resource managers find good people to fill the jobs? What is the employee selection process? What types of training and development do organizations offer their employees?

3. Chapter 9 Learning Goals (cont’d.) What is a performance appraisal? How are employees compensated? What is organizational career management? What are the key laws and federal agencies affecting human resource management? What trends are affecting human resource management?

4. Human Resource Management Hiring, developing, motivating, & evaluating employees Challenges Decreasing number of applicants & increased competition for those workers Workers want work & home life balance Technology is changing the way business is done Laws governing employee-employer relationship

5. Human Resource Management Process

6. Job Analysis & Design Job Analysis Study the job to determine its tasks and duties Helps in hiring requirements, setting pay, determining performance evaluation criteria, and designing training programs. Job Description Responsibilities and duties of the job Job Specification List of skills and qualifications a person needs to perform the job

7. HR Planning & Forecasting How many people are needed and how many can we get from inside the company? HR demand forecast Internal supply forecast Compare forecasts Take action Hire, pay overtime, subcontract, contingent workers, reassign, lay off, terminate, retire

8. Labor Supply & Demand A labor shortage in the 1990s turned the tables for employers some individuals seeking work advertised themselves as free agents employers bid for interviews with free agents US Department of Labor estimated there are 10 million free agents

9. Employee Recruitment How do companies find good workers? Determine a source for applicants Internal Skills inventory External Recruitment If external, determine type of recruitment to use Job fair, internet, search firms, college recruiters, newspaper

10. Employee Selection Go through the selection process to determine who is the best candidate for the position.

11. Training & Development Process Training Needs Assessment Training Objective Design of Training Program Conduct Training Program Evaluate Training Program

12. Employee Training & Development Types of Training Orientation Formal and informal On-the-job Training Job rotation Apprenticeship Mentoring Off-the-job Training Classroom Vestibule training Programmed instruction

13. Training and Development Forecasting International predicts that the need for life-long learning will characterize business in the future Implications: need for higher training budgets need for constant retraining due to turnover use of technology for just-in-time training training as a motivational & retention tool

14. Performance Planning & Evaluation Employees learn about job performance expectations Supervisors evaluate employees Actual performance is compared to expected performance Helps make decisions about training needs, compensation, promotions, job changes, etc

15. Performance planning & evaluation process:

16. Performance Evaluation 360° Evaluation: performance feedback that combines self-appraisal with ratings made by coworkers at the same level, above, and below the target person in the managerial hierarchy Advantages: provides a well-rounded view avoids individual bias can have more impact than a single source can establish consensus

17. Employee Compensation & Benefits Factors that affect pay Pay structure & internal influences Pay level & external influences Firm’s condition Types of Compensation Direct Indirect

18. Direct Compensation Hourly wage Salary Piecework & commission Accelerated commission schedule Bonus Profit sharing

19. Indirect Compensation Benefits & Services Required by law: unemployment, workers’ compensation, Social Security Optional: paid time off, health insurance, retirement plan, life insurance, college tuition reimbursement, fitness center memberships, etc Cafeteria Plans

20. Organizational Career Management Facilitating employee job changes Within the organization Promotion Transfer Demotion Separation from the organization Layoff Termination Resignation Retirement

21. Laws affecting HR Management Exhibit 9-8, pg. 273 Cannot discriminate based on age, race, gender, color, national origin, religion or disability Family and Medical Leave Act requires employers to provide employees up to 12 weeks of unpaid leave a year

22. Federal Agencies that enforce HR laws Equal Employment Opportunity Commission (EEOC) Occupational Safety and Health Administration (OSHA) Office of Federal Contract Compliance Programs (OFCCP) Department of Labor And Others

23. Affirmative Action Programs To insure opportunities & fair treatment of protected classes Protected Classes – people with legal protection against discrimination Examples: women, minorities, disabled individuals, veterans, etc.

24. Trends in HR Management Social Changes More women in the workforce Increased frequency of job changes Time MBA’s expected to stay in first job

25. Trends in HR Management, cont. More diverse workforce More difficult to manage Work to remove glass ceiling Advancing Technology Outsourcing Telecommuting Going Global More employees are going overseas

26. Review Human Resource Management Job analysis and design HR planning and forecasting Employee recruitment Employee selection Training and development Performance planning and evaluation Compensation and benefits Organizational career management Human Resource Laws Trends Looking Ahead Motivating Employees and Teams