BUSINESS 7e Copyright 2004 Prentice Hall, Inc.1 CHAPTER 8 Managing Human Resources and Labor Relations

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.2 Chapter Outline  The Foundations of Human Resource Management  Staffing the Organization  Developing the Workforce  Compensation and Benefits  The Legal Context of HR Management  New Challenges in the Changing Workplace  Dealing With Organized Labor  Collective Bargaining

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.3 What Is Human Resource Management (HRM)? Set of organizational activities directed at attracting, developing and maintaining an effective workforce

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.4 The Strategic Importance of HRM The importance of HR stems from:  Increased legal complexities  Recognition of human resources as a valuable means for improving productivity  Awareness of costs associated with poor human resource management

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.5 Human Resource Planning  Job analysis is a systematic analysis of jobs within an organization. The results:  Job description is an outline of the duties of a job, working conditions and the tools, materials, and equipment used to perform it  Job specification is a description of the skills, abilities and other credentials required by a job

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.6 The Human Resource Planning Process

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.7 Forecasting HR Demand and Supply Forecasting the supply of labor is two tasks:  Forecasting internal supply—the number and type of employees who will be in the firm at some future date  Forecasting external supply—the number and type of people who will be available for hiring from the labor market at large

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.8 Forecasting HR Demand and Supply  Replacement chart is a list of each management position, who occupies it, how long that person will likely stay in the job and who is qualified as a replacement  Employee information system (or Skills inventory) is a computerized system containing information on each employee's education, skills, work experience and career aspirations

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.9 Staffing the Organization Recruiting is the process of attracting qualified persons to apply for the jobs that are open. Process of acquiring staff:  Internal recruiting means considering present employees as candidates for openings  External recruiting involves attracting people outside the organization to apply for jobs

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.10 Selecting Human Resources  Validation is the process of determining the predictive value of a selection technique. Techniques include:  Application Forms  Tests  Interviews  Other Techniques

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.11 Developing the Workforce  Training  On-the-job training occurs while the employee is at work  Off-the-job training takes place at locations away from the work site  Vestibule training is off-the-job training conducted in a simulated environment  Performance appraisals are designed to show how well workers are doing their jobs

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.12 Performance Rating Schedule

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.13 What is a Compensation System? Set of rewards that organizations provide to individuals in return for their willingness to perform various jobs and tasks within the organization

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.14 Compensation and Benefits  Wages are paid for time worked  Salary is paid for discharging the responsibilities of a job

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.15 What Are Incentive Programs? Special pay programs designed to motivate high performance

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.16 Individual Incentives  Bonuses are special payments above their salaries  Merit salary systems link raises to performance levels in non-sales jobs  Pay for performance (Variable pay) rewards a manager for especially productive output

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.17 Companywide Incentives  Profit-sharing plans distribute bonuses to employees when company profits rise above a certain level  Gainsharing plans distribute bonuses to employees when a company’s costs are reduced through greater work efficiency  Pay-for-knowledge plans encourage workers to learn new skills or become proficient at different jobs

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.18 What Are Benefits? Compensation other than wages and salaries offered by a firm to its workers

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.19 Benefits Programs  Workers’ compensation insurance is legally required insurance for compensating workers injured on the job  Retirement plan is set up to pay pensions to workers when they retire  Cafeteria benefits plan sets limits on benefits per employee, each of whom may choose from a variety of alternative benefits

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.20 What Is Equal Employment Opportunity? Legally mandated nondiscrimination in employment on the basis of race, creed, sex or national origin

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.21 What is a Protected Class? Set of individuals who by nature of one or more common characteristics are protected under the law from discrimination on the basis of that characteristic

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.22 Enforcing Equal Employment Opportunity  Equal Employment Opportunity Commission (or EEOC) is a federal agency enforcing several discrimination- related laws  Affirmative action plan is a practice of recruiting qualified employees belonging to racial, gender or ethnic groups who are underrepresented in an organization

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.23 Contemporary Legal Issues in HR Management  Employment Safety and Health  Occupational Safety and Health Act of 1970 (or OSHA) sets and enforces guidelines for protecting workers from unsafe conditions and potential health hazards in the workplace

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.24 Emerging Areas of Discrimination Law  AIDS in the Workplace  Sexual harassment is the practice or instance of making unwelcome sexual advances in the workplace  quid pro quo harassment  hostile work environment  Employment-at-will is the principle that organizations should be able to retain or dismiss employees at their discretion

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.25 What is Workforce Diversity? Range of workers’ attitudes, values, beliefs and behaviors that differ by gender, race and ethnicity

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.26 What is a Knowledge Worker? Employees who are of value because of the knowledge they possess

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.27 What is a Contingent Worker? Employee hired on something other than a full-time basis to supplement an organization’s permanent workforce

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.28 Dealing With Organized Labor  Labor union is a group of individuals working together to achieve shared job-related goals  Labor relations is the process of dealing with employees who are represented by a union  Collective bargaining is the process by which labor and management negotiate conditions of employment for union- represented workers

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.29 The Bargaining Zone

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.30 When Bargaining Fails: Union Tactics  Strike occurs when employees temporarily walk off the job and refuse to work  Economic Strikes  Sympathy Strikes (or Secondary Strikes)  Wildcat strikes  Other Labor Actions  Picketing  Boycott  Slowdown

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.31 When Bargaining Fails: Management Tactics  Lockouts occur when employers deny employees access to the workplace  Strikebreakers are workers hired as permanent or temporary replacements for striking employees

BUSINESS 7e Copyright 2004 Prentice Hall, Inc.32 When Bargaining Fails: Mediation and Arbitration  Mediation is a method in which a third party (a mediator) suggests, but does not impose, a settlement  Voluntary arbitration is a method in which both parties agree to submit to the judgment of a neutral party (an arbitrator)  Compulsory arbitration is a method in which both parties are legally required to accept the judgment of a neutral party