Ch 8:Managing Human Resources and Labor Relations The Foundations of Human Resource Management (HRM) Set of organizational activities directed at attracting, developing, and maintaining an effective workforce. HRM has a strategic importance for organizations HR Planning Job analysis Job description: lists the duties of a job, working conditions, and tools, materials, equipment needed. Job specification: description of the skills, abilities and qualifications needed.

Forecasting HR Demand and Supply Forecast both internal and external supply of labor We can use replacement charts, employee information systems (skills inventory) Matching HR Supply and Demand

Staffing the Organization Recruiting Human Resources Recruiting: process of attracting qualified persons to apply for jobs an organization is seeking to fill. Internal recruiting: considers present employees as candidates for openings External recruiting: attracting persons outside the organization to apply for jobs

Selecting Human Resources Application forms: work history, education, other job related data. Tests: ability, aptitude, knowledge. Sometimes personality and intelligence is also tested. Interviews: very popular selection device – be prepared!! Other techniques: health exams, drug tests, check the references etc.

Developing the Workforce Training on-the-job training: usually informal, train while performing the job off-the-job training: usually formal, done in a controlled environment vestibule training: off-the-job training conducted in a simulated environment Performance appraisal Evaluation of a employee’s job performance to see if the employee is performing effectively.

Compensation and Benefits Compensation system: set of rewards that organizations provide to individuals in return for their willingness to perform various jobs and tasks within the organization. Wages and salaries: Wages: compensation in the form of money paid for time worked. Salaries: Compensation in the form of money paid for carrying out the responsibilities of the job.

Incentive Programs: special compensation program designed to motivate high performance. We have: Individual incentives E.g., bonus, merit salary system. Company-wide incentives E.g., profit-sharing plan, gainsharing plan, pay-for-knowledge plan

Benefits Programs: compensation other than wages and salaries Benefits Programs: compensation other than wages and salaries. Can be more valuable than wages and salaries. E.g., retirement plans, health/life insurance, social security payments, vacation, holidays, company car etc. Containing the costs of benefits???

The Legal Context of HR Management A HR manager must be knowledgeable about the legal system Equal employment opportunity Affirmative action plan, sexual harassment etc. Other topics child labor, illegal workers etc,

New Challenges in the Workplace Immigration, global competition and technology are important factors Managing a diverse workforce Range of workers’ attitudes, values, and behaviors that differ by gender, race, and ethnicity. Managing knowledge workers Contingent workers and temporary employment

Dealing with Organized Labor Labor Union: Group of people working together to achieve job-related goals, such as higher pay, shorter working hours, more job security, greater benefits or better working conditions. Labor Relations: Process of dealing with employees who are represented by a union.

Unions Today: It is declining. Why??? Collective Bargaining: process by which labor and management negotiate conditions of employment for union-represented workers. Unions Today: It is declining. Why??? Composition of the workforce Rise of the service sector Anti-unionization strategies Negotiated concessions

Collective Bargaining Reaching agreement on contract terms = labor contract. Contract issues: cost of living adjustment (COLA), benefits, job security, other minor issues, and management rights

When Bargaining Fails Unions Tactics Strike: labor action in which employees temporarily walk off the job and refuse to work Picketing: labor action in which workers publicize their grievances at the entrance to the company Boycott: labor action in which workers refuse to buy the company’s products Slowdown: labor action in which workers perform jobs at a lower rate.

Management tactics Lockouts: workers are not allowed into the workplace Strikebreaker: new workers are hired to replace the striking workers. Sometimes third parties try to help ---- with mediation or arbitration.

Mediation and Arbitration Mediation: a neutral third party suggests, but cannot impose, a settlement. Arbitration: a neutral third party passes a judgment, and thus can impose a settlement.