Principles of Management Chapter 8 Human Resource Management

Principles of Management Why study HR? Human Resource Management

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

Principles of Management Payroll is one of the firm’s major expenses. Payroll $148,750

Principles of Management Payroll $75,000

Human Resource Strategy  Determine the correct mix of employees and skills needed to meet competitive conditions.  Develop an effective work force through good recruiting and training.  Keep costs down while improving efficiency and productivity.  Determine the correct mix of employees and skills needed to meet competitive conditions.  Develop an effective work force through good recruiting and training.  Keep costs down while improving efficiency and productivity. Principles of Management

Human Resource Management Goals Developing–keep‘em up to speed? Training & Development Performance Appraisals Training & Development Performance Appraisals Maintaining –how do we keep them? Wages, Salary, Benefits Job Enrichment Wages, Salary, Benefits Job Enrichment Recruiting Selecting Recruiting Selecting Attracting – how do we get them? Planning – what people will we need? Job Analysis Forecasting Job Analysis Forecasting

Human Resource Planning  The nature of the work activities.  Current technology.  Work productivity and product quality standards.  Results in Job Description.  The nature of the work activities.  Current technology.  Work productivity and product quality standards.  Results in Job Description. Job Analysis Principles of Management

Human Resource Planning  What new technologies are emerging?  What is the volume of business likely to be?  What is the employee turnover rate?  What is the labor market like?  What new technologies are emerging?  What is the volume of business likely to be?  What is the employee turnover rate?  What is the labor market like? Forecasting Principles of Management

Human Resource Planning What is the state of the current labor market? What is the state of the current labor market? Principles of Management

Human Resource Planning For the very best, the market is always tight! Principles of Management

The goal is the most talented, best fit. Stock Options Better Benefits Signing Bonus Sell Lifestyle Ways to Recruit Recruiting Bonus Principles of Management Higher Pay

When Labor is Scarce… Job Sharing Work House Telecommuting Temp Agency Rethink Flexible Schedules Principles of Management Outsourcing Internal Recruiting

Internal Recruiting Advantages  Less costly than an external search.  Higher employee commitment, development, and satisfaction.  Offers opportunities for internal career advancements.  Less costly than an external search.  Higher employee commitment, development, and satisfaction.  Offers opportunities for internal career advancements. Principles of Management

Selection Selection devices  Job Description – Essential Functions  Application/Resume – work history  Education  References Selection devices  Job Description – Essential Functions  Application/Resume – work history  Education  References Principles of Management Which Candidates to Interview?

The Interview Use open-ended questions. Know what you want. Prepare a road map. Listen--don’t talk. Allow enough time so that the interview will not be rushed. Don’t ask questions that aren’t relevant to the job.

Principles of Management 1.What has been a particularly demanding goal for you to achieve? 2.Can you think of a situation in which an innovative course of action was needed? What did you do in this situation? 3.What are the typical customer interactions you have in your present position? Can you think of a recent example of one of these? 4.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? 5.In your present position, what standards have you set for doing a good job? How did you determine them? 1.What has been a particularly demanding goal for you to achieve? 2.Can you think of a situation in which an innovative course of action was needed? What did you do in this situation? 3.What are the typical customer interactions you have in your present position? Can you think of a recent example of one of these? 4.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? 5.In your present position, what standards have you set for doing a good job? How did you determine them? Interview Questions:

Questions to avoid: Principles of Management Interview questions to avoid because they may show illegal bias. Are you a U.S. citizen? (adversely impacts national origin) 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) Interview questions to avoid because they may show illegal bias. Are you a U.S. citizen? (adversely impacts national origin) 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)

Federal Legislation Point of the laws is to stop discriminatory practices. EEO Legislation Attempts to:EEO Legislation Attempts to:  balance the pay given to men and women.  provide employment opportunities without regard to race, religion, national origin, and sex.  ensure fair treatment for employees of all ages.  avoid discrimination against disabled individuals Point of the laws is to stop discriminatory practices. EEO Legislation Attempts to:EEO Legislation Attempts to:  balance the pay given to men and women.  provide employment opportunities without regard to race, religion, national origin, and sex.  ensure fair treatment for employees of all ages.  avoid discrimination against disabled individuals Principles of Management

 Minimum Wage = $7.10. OT = 40+ hrs  Equal Pay in same job = same pay  Employing Minors  Anti-discrimination Laws  Americans with Disabilities Act  Immigration Law – and the I-9 Laws Governing Employment Practices Principles of Management

Withholding Requirements Principles of Management  Federal Unemployment (FUTA)  State Unemployment Taxes ** ** Employer pays based on experience rating.  Social Security and Medicare (FICA)  Federal Income Tax Withholding  Workman’s Compensation (L&I) **

Developing an Effective Workforce Orientation Training Orientation Training On the Job Training On the Job Training It is cheaper, less disruptive, and a better motivator to train current staff rather than to find new employees. Classroom Training Classroom Training Cross Training Cross Training Seminars Seminars Other Other Principles of Management

Performance Appraisal HRM professionals concentrate on two things:  The accurate assessment of performance.  Training managers to effectively use the performance appraisal interview. HRM professionals concentrate on two things:  The accurate assessment of performance.  Training managers to effectively use the performance appraisal interview. An opportunity to assess the performance of the employee, give feedback, and to perform Job Analysis. Principles of Management

Assessing Performance Accurately  360-degree feedback: uses multiple raters to appraise employee performance. “Self rating.”  Halo error: error that occurs when an employee receives the same rating on all dimensions. No action steps emerge.  Homogeneity: rating error that occurs when a rater gives all employees a similar rating.  “Three is good!”  360-degree feedback: uses multiple raters to appraise employee performance. “Self rating.”  Halo error: error that occurs when an employee receives the same rating on all dimensions. No action steps emerge.  Homogeneity: rating error that occurs when a rater gives all employees a similar rating.  “Three is good!” Principles of Management

Performance Expectations & Feedback Review Employee’s Name Reviewing Manager’s Name Guide to rating and performance codes 5 -Outstanding - Consistently exceeds requirements of position. Clearly superior performance which is recognized by all. Demonstrates special capabilities & willingness to perform at the highest possible level.. 4 -Consistently Exceeds - Frequently exceeds job requirements. 3 -Satisfactory - Consistently meets job requirements and is doing what is expected of a good performer. 2 -Needs Improvement - Meets jobs requirements some of the time; needs noticeable improvement to achieve an overall acceptable level of performance and meet expectations 1 -Serious Problem - Does not meet job requirements; immediate and significant improvements needed to stay on the job. Performance Expectations & Feedback Review Employee’s Name Reviewing Manager’s Name Guide to rating and performance codes 5 -Outstanding - Consistently exceeds requirements of position. Clearly superior performance which is recognized by all. Demonstrates special capabilities & willingness to perform at the highest possible level.. 4 -Consistently Exceeds - Frequently exceeds job requirements. 3 -Satisfactory - Consistently meets job requirements and is doing what is expected of a good performer. 2 -Needs Improvement - Meets jobs requirements some of the time; needs noticeable improvement to achieve an overall acceptable level of performance and meet expectations 1 -Serious Problem - Does not meet job requirements; immediate and significant improvements needed to stay on the job. Points-based Rating Scale Principles of Management

Behaviorally Anchored Rating Scale

Maintaining an Effective Workforce CompensationCompensation Wage and salary structureWage and salary structure BenefitsBenefits When necessary, terminationsWhen necessary, terminations CompensationCompensation Wage and salary structureWage and salary structure BenefitsBenefits When necessary, terminationsWhen necessary, terminations Principles of Management

Human Resource Management Goals Developing–keep‘em up to speed? Training & Development Performance Appraisals Training & Development Performance Appraisals Maintaining –how do we keep them? Wages, Salary, Benefits Job Enrichment Wages, Salary, Benefits Job Enrichment Recruiting Selecting Recruiting Selecting Attracting – how do we get them? Planning – what people will we need? Job Analysis Forecasting Job Analysis Forecasting