8–18–1Copyright © 2006 Thomson Business and Economics. All rights reserved. Agenda/Announcements Agenda –UW Research Overview Guest – Christina Fong –Chapter 8 Team Training –Chapter 8 Overview –American Airlines Case Announcements/Reminders: –OK to do Team Papers Early! Exhibit 8–2

PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2006 Thomson Business and Economics. All rights reserved. Chapter 8 Human Resources Management

8–38–3Copyright © 2006 Thomson Business and Economics. All rights reserved. The Human Resources Management Process Exhibit 8–1

8–48–4Copyright © 2006 Thomson Business and Economics. All rights reserved. Federal Laws Related to HRM Equal Employment Opportunity –Equal Employment Opportunity Act of 1972 (Title VII of the Civil Rights Act of 1964) –Civil Rights Act of 1991 –Age Discrimination in Employment Act of 1967 (amended 1978, 1984) –Vocational Rehabilitation Act of 1973 –Americans with Disabilities Act of 1990 Compensation and Benefits –Equal Pay Act of 1963 –Family and Medical Leave Act of 1993 Health and Safety –Occupational Safety and Health Act of 1970 Exhibit 8–2

8–58–5Copyright © 2006 Thomson Business and Economics. All rights reserved. The Legal Environment Equal Opportunity Employment (1972) –Civil Rights Act of 1964 amended –Executive orders –Prohibits employment discrimination on the basis of sex, religion, race or color, or national origin. –Applies to private and public organizations that employ 15 or more persons. –Protected classes of minorities: Hispanics, Asians, African Americans, Native Americans, and Alaskan natives Disabled individuals and persons over 40

8–68–6Copyright © 2006 Thomson Business and Economics. All rights reserved. Preemployment Inquires To avoid asking discriminatory questions: –All questions asked applicants must be job- related. –Any general question you ask should be asked of all candidates. Bona Fide Occupational Qualification (BFOQ) –A characteristic that an individual must possess that is directly related to performing the essential functions of the job or is a business necessity. Example: Casting only females for the leading actress’s part in a play.

8–78–7Copyright © 2006 Thomson Business and Economics. All rights reserved.

8–88–8 The Human Resources Department Functions of the HR Department: Recruits employees so that the line managers can select which employees to hire. (Active = Strategic; Passive = Administrative) Orients employees and trains many of them to do their jobs. Usually develops the performance appraisal system and forms used by managers throughout the organization. (All) Determines compensation for employees. (Usually w/ Input) Is sometimes responsible for employee health and safety programs, Is usually responsible for labor relations, and works with mmanagers regarding the termination of employees. Keeping certain employment records, and it is often involved with legal matters. CONTINUUM OF SERVICES Administrative/ Compliance Strategic Partner Proactive

8–98–9Copyright © 2006 Thomson Business and Economics. All rights reserved. Attracting Employees: Recruiting Sources Exhibit 8–5 NETWORKING TRADE ORGANIZATIONS

8–10Copyright © 2006 Thomson Business and Economics. All rights reserved. Types of Interviews and Questions Exhibit 8–6

8–11Copyright © 2006 Thomson Business and Economics. All rights reserved. Selecting the Candidate Problems to Avoid –Rushing –Stereotyping –“Like me” syndrome –Halo and horn effect –Premature selection Helpful Ideas: –Peer/Employee Interviews –Consider Impact Hire from unemployed vs. Hire Away or Move

8–12Copyright © 2006 Thomson Business and Economics. All rights reserved. Training Methods Skills Developed Methods Technical skills Written material, lectures, videotapes, question-and- answer sessions, discussions, demonstrations Programmed learning Job rotation Projects Interpersonal and Role playing communication skillsBehavior modeling Conceptual and Cases decision-making skillsIn-basket exercises Management games Interactive videos Exhibit 8–10 Experiential Learning is Best Regardless of Method

8–13Copyright © 2006 Thomson Business and Economics. All rights reserved. Performance Appraisal –The ongoing process of evaluating employee performance. Types of Performance Appraisal –Developmental performance appraisal Make decisions and plans for performance improvements. –Evaluative performance appraisal Make administrative decisions about pay raises, transfers, promotions, demotions, and terminations. “You get what you reward”

8–14Copyright © 2006 Thomson Business and Economics. All rights reserved. The Performance Appraisal Process Exhibit 8–11 Well Designed No EOY

8–15Copyright © 2006 Thomson Business and Economics. All rights reserved. Retaining Employees Compensation –The total cost of pay and benefits to employees –Pay systems Wages: paid on an hourly basis. Salary: based on specific time period regardless of hours worked. Incentives: paid for performance as piece rates for production, commissions on sales, merit raises, bonuses for reaching/exceeding goals, and profit sharing.

8–16Copyright © 2006 Thomson Business and Economics. All rights reserved. Retaining Employees (cont’d) Compensation –Pay determination Externally market valuing the job on a pay level decision. Job evaluation is used internally to establish the worth of each job relative to other jobs in the organization. –Benefits Legally required benefits (e.g., workers’ compensation) Optional benefits (e.g., health insurance) –Health and Safety Occupational Safety and Health Act (OSHA) of 1970 requires employers pursue workplace safety. Culture, Opportunities, Employee Satisfaction!!!

8–17Copyright © 2006 Thomson Business and Economics. All rights reserved. Labor Relations –The interactions between management and unionized employees. National Labor Relations Act (Wagner Act) –Oversees the labor relations process through the National Labor Relations Board. Collective Bargaining –The negotiation process resulting in a contract that covers compensation, hours, and working conditions and other issues that employees and management agree to.

8–18Copyright © 2006 Thomson Business and Economics. All rights reserved. Labor Relations (cont’d) Mediator –A neutral party who helps management and labor settle their disagreements by compromise. Arbitrator –A neutral party that can make a binding decision, one to which management and labor must adhere.

8–19Copyright © 2006 Thomson Business and Economics. All rights reserved. The Union-Organizing Process Exhibit 8–15

8–20Copyright © 2006 Thomson Business and Economics. All rights reserved. Loss of Employees Organizations lose employees because: 1.Through attrition, employees leave for other jobs, elect to stop working for a period of time, or retire. 2.Employees who break rules or do not perform to standards are fired. 3.Employees are laid off. Exit interviews –Help identify problem areas that lead to turnover. Outplacement services –Help laid-off employees find new jobs/learn skills. Turnover Costs Typically = 75% of Employee Salary/Wage