WEEK 4: HUMAN RESOURCE MANAGEMENT BUSN 102 – Özge Can

Keeping Pace with Today’s Workforce  Human Resources (HR) Management  The specialized function of planning how to obtain employees, oversee their training, evaluate them, and compensate them Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-2

Contemporary Staffing Challenges  Aligning the workforce  Fostering employee loyalty  Monitoring workloads and avoiding employee burnout  Managing work–life balance Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-3

Contemporary Staffing Challenges  Work–Life Balance  Efforts to help employees balance the competing demands of their personal and professional lives  Quality of Work Life (QWL)  An overall environment that results from job and work conditions 11-4

Steps in Human Resources Planning Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-5

Evaluating Job Requirements  Job Description  A statement of the tasks involved in a given job and the conditions under which the holder of a job will work  Job Specification  A statement describing the kind of person who would be best for a given job— including the skills, education, and previous experience that the job requires Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-6

Forecasting Supply and Demand  Turnover Rate  The percentage of the workforce that leaves every year  Employee Retention  Efforts to keep current employees 11-7

Forecasting Supply and Demand  Succession Planning  Workforce planning efforts that identify possible replacements for specific employees, usually senior executives  Contingent Employees  Non-permanent employees, including temporary workers, independent contractors, and full-time employees hired on a probationary basis Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-8

Alternative Work ArrangementsFlextimeTelecommuting Job sharing Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-9

Managing a Diverse Workforce  Diversity  All the characteristics and experiences that define each of us as individuals  Includes race, age, military experience, parental status, marital status, and thinking style Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-10

Managing a Diverse Workforce  Sexism  Discrimination on the basis of gender  Glass Ceiling  An invisible barrier that can be attributed to subtle discrimination keeping women and minorities out of the top positions in business Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-11

Managing a Diverse Workforce  Diversity Initiatives  Programs and policies that help companies support diverse workforces and markets Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-12

Managing the Employment Life Cycle  Recruiting  The process of attracting appropriate applicants for an organization’s jobs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-13

The Recruiting Process Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-14

Terminating Employees  Termination  The process of getting rid of an employee by firing him  Layoffs  Termination of employees for economic or business reasons 11-15

Major Employment Legislation Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-16

Major Employment Legislation 11-17

Retiring Employees  Worker Buyouts  Distributions of financial incentives to employees who voluntarily depart; usually undertaken in order to reduce the payroll  Mandatory Retirement  Required dismissal of an employee who reaches a certain age Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-18

Developing and Evaluating Employees  Performance Appraisals  Periodic evaluations of employees’ work according to specific criteria  Electronic Performance Monitoring (EPM)  Real-time, computer-based evaluation of employee performance Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-19

Developing and Evaluating Employees  360-degree review  A multidimensional review in which a person is given feedback from subordinates, peers, superiors, and possibly outside stakeholders such as customers and business partners Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-20

Training and Developing Employees  Orientation Programs  Sessions or procedures for acclimating new employees to the organization  Skills Inventory  A list of the skills a company needs from its workforce, along with the specific skills that the individual employees currently possess Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-21

Administering Employee Compensation  Compensation  Money, benefits, and services paid to employees for their work  Salary  Fixed cash compensation for work, usually by an yearly amount; independent of the number of hours worked Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-22

Administering Employee Compensation  Wages  Cash payment based on the number of hours an employee has worked or the number of units an employee has produced Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-23

Incentive Programs  Bonus  A cash payment, in addition to regular wage or salary, that serves as a reward for achievement  Commissions  Employee compensation based on a percentage of sales made Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-24

Incentive Programs  Profit Sharing  The distribution of a portion of the company’s profits to employees  Gain Sharing  Tying rewards to profits or cost savings achieved by meeting specific goals 11-25

Incentive Programs  Pay for Performance  An incentive program that rewards employees for meeting specific, individual goals  Knowledge-Based Pay  Pay tied to an employee’s acquisition of knowledge or skills; also called competency- based pay or skill-based pay Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-26

Employee Benefits and Services  Employee Benefits:  Elements of compensation other than wages, salaries, and incentive programs  They are offered as either a preset package or as flexible plans  Cafeteria plans: Flexible benefit programs that let employees personalize their benefits packages  (e.g. insurance, retirement benefits, stock options, family benefits) 11-27

Employee Benefits and Services  Insurance  Range of plans including life, health, dental, disability and long-term care insurances  Retirement Plans  Company-sponsored programs for providing retirees with income (pension plans) Defined benefit plans => payment to employees upon retirement Defined contribution plans => company puts into a retirement fund. Similar to saving plans 11-28

Employee Benefits and Services  Employee Stock-Ownership Plan (ESOP)  A program that enables employees to become partial owners of a company. The company places some or all of its stock in trust  Stock Options  Granting employees the right to purchase a set of number of shares of the employer’s stock at a specific price during a certain period 11-29

Other Employee Benefits: Paid vacations and sick leave Family and medical leave Child-care assistance Elder-care assistance Tuition loans and reimbursements Employee assistance programs 11-30

Summary: Key Dimensions of HRM  HR planning: evaluating job requirements and forecasting labor supply and demand  Managing a diverse workforce  Managing the employee life cycle: recruiting, terminating and retiring employees  Training and developing employees  Evaluating employees: performance appraisal  Administrating compansation: wages, salaries, incentive programs, employee benefits 31