Chapter 9 THE FUTURE OF BUSINESS Gitman & McDaniel 5 th Edition THE FUTURE OF BUSINESS Gitman & McDaniel 5 th Edition Chapter 9 Managing Human Resources Prepared by Deborah Baker Texas Christian University Prepared by Deborah Baker Texas Christian University

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2 1What is the human resource management process and how are human resource needs determined? 2How do human resource managers recruit and select qualified applicants? 3What types of training and development do organizations offer their employees? 4How are performance appraisals used to evaluate employees’ performance? 5What are the different methods for compensating employees? Learning Goals

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 3 6What is organizational career management? 7Why does a diverse workforce lead to stronger performance in the marketplace? 8What are the key laws and federal agencies affecting human resource management? 9What trends are affecting human resource management? Learning Goals

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 4 Human Resource Success Factors  Attracting and hiring the best employees  Equipping employees with the skills needed to excel  Compensating employees fairly  Motivating employees to reach their full potential

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 5 Human Resource Challenges  Competition for a limited number of employees  Employees are struggling to balance their home and work lives  Managers are challenged to manage and communicate with employees around the globe  A diverse and multicultural workforce requires better workplace communication and training  Technology is impacting decision making, communication, and business operation  Human resource laws are dictating many aspects of the employee-employer relationship

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 6 Learning Goal 1 What is the human resource management process and how are human resource needs determined? 1

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 7 Human Resource Management 1 The process of hiring, developing, motivation, and evaluating employees to achieve organizational goals The process of hiring, developing, motivation, and evaluating employees to achieve organizational goals Human Resource Management

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 8 Human Resource Management Process 1 Employee selection Employee recruitment HR planning & forecasting Job analysis & design Compensation and benefits Performance planning and evaluation Training and development Strategies and objectives of the organization Organizational career management: Employee job changes and disengagement

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 9 Human Resource Planning 1 Employee selection Employee recruitment HR planning & forecasting Job analysis & design Job Description The tasks and responsibilities of a job. Job Specification A list of the skills, knowledge, and abilities a person must have to fill the job. Job Analysis A study of the tasks required to do a particular job well

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 10 Human Resource Planning 1 Employee selection Employee recruitment HR planning & forecasting Job analysis & design Estimate the number of people currently involved who will be available to fill jobs at some future time Determine the number of people needed by some future time The HR Demand Forecast

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 11 Human Resource Planning Process 1 Corporate strategy and policy HR supply forecast HR demand forecast Differences HR shortage HR surplus HR objectives and policies 1.Reassign 2.Layoff 3.Terminate 4.Retire 1.Reassign 2.Layoff 3.Terminate 4.Retire 1.Hire 2.Pay overtime 3.Subcontract 1.Hire 2.Pay overtime 3.Subcontract No difference: requirement = supply Compare

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 12 2 Learning Goal 2 How do human resource managers recruit and select qualified applicants?

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 13 2 Employee Recruitment Employee selection Employee recruitment HR planning & forecasting Job analysis & design External Labor Market External Labor Market Find and attract qualified applicants from the external sources Find and attract qualified applicants from the external sources Internal Labor Market Follow a policy of promotion from within Job Fairs Search Firms Advertising Open Houses

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 14 2 Employee Selection Employee selection Employee recruitment HR planning & forecasting Job analysis & design 1. Initial screening: application and interview 2. Employment testing 3. Selection interview 4. Background and reference checks 5. Physical examination 6. Decision to hire EmploymentSelectionProcessStepsEmploymentSelectionProcessSteps

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 15 3 Learning Goal 3 What types of training and development do organizations offer their employees?

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 16 3 Employee Training and Development Training Objective Design of Training Program Training Needs Assessment Training Needs Assessment Conduct Training Program Training Program Evaluation Feedback for Training Improvement

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 17 4 How are performance appraisals used to evaluate employees’ performance? Learning Goal 4

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 18 4 Performance Planning and Evaluation Employee job task behavior Employee job task behavior Performance Planning: Setting standards and expectations Performance Planning: Setting standards and expectations Performance evaluation Performance evaluation Rewards and job changes Rewards and job changes Performance Feedback

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 19 What are the different methods for compensating employees? 5 Learning Goal 5

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 20 5 Fringe benefits Salaries Piecework & commission Accelerated commission schedule Profit sharing Hourly wages Types of Compensation Bonus Employee Compensation and Benefits

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 21 6 What is organizational career management? Learning Goal 6

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 22 6 Transfer A horizontal move to a position with about the same salary and organizational level. Demotion The downgrading or reassignment of an employee to a position with less responsibility. The downgrading or reassignment of an employee to a position with less responsibility. Promotion An upward move to a position with more authority, responsibility, and pay. Job Changes within the Organization

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 23 6 Termination Resignation Permanent separation of an employee Arranged by employee Permanent separation of an employee Arranged by employee Layoff Retirement Temporary separation of an employee Arranged by employer Temporary separation of an employee Arranged by employer Permanent separation of an employee Arranged by employer Permanent separation of an employee Arranged by employer Separation of an employee at the end of his or her career Separations

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 24 7 Why does a diverse workforce lead to stronger performance in the marketplace? Learning Goal 7

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Better hiring 3.More effective marketing 4.Greater employee creativity 6.Quicker adaptation to change 1.Lower costs Competitive Advantages 5.More effective problem-solving Cultural Diversity

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 26 7 Cultural Diversity

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 27 8 What are the key laws and federal agencies affecting human resource management? Learning Goal 8

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved Fair Labor Standards Act (1938) Equal Pay Act (1963) Occupational Safety & Health Act (1970) Americans with Disabilities Act (1990) 5. Family and Medical Leave Act (1993) Laws Affecting HR Management

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 29 8  Investigation  Conciliation  Litigation The EEOC Process

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 30 9 What trends are affecting human resource management? Learning Goal 9

Chapter 9 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 31 9 Global competition Advancing technology Proactive management of diversity Growth of minority recruiting Protecting whistleblowers Trends in Human Resource Management