PowerPoint Presentation by Charlie Cook The University of West Alabama Student Version © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 19 Management : Principles and Practices Griffin

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–2 The Environmental Context of HRM Human Resource Management (HRM)Human Resource Management (HRM)  The set of organizational activities directed at attracting, developing, and maintaining an effective work force. The Strategic Importance of HRMThe Strategic Importance of HRM  HRM is increasingly important as firms realize the value of their human capital in improving productivity.  HRM is critical to bottom-line performance of the firm.  HR planning is now part of the strategic planning process.

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–3 The Legal Environment of HRM Equal Employment Opportunity Compensation and Benefits Labor Relations Health and Safety Title VII of Civil Rights Act of 1964 Fair Labor Standards Act of 1938 (FLSA) National Labor Relations Act of 1935 (Wagner Act) Occupational Safety and Health Act of 1970 (OSHA) Pregnancy Discrimination Act Equal Pay Act of 1963 Labor Management Relations Act of 1947 (Taft-Hartley Act) Age Discrimination in Employment Act Employee Retirement Income Security Act of 1974 (ERISA) Americans with Disabilities Act Family and Medical Leave Act of 1993 (FMLA) Civil Rights Act of 1991

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–4 The Legal Environment of HRM (cont’d) Alcohol and drug dependencies AIDS in the workplace Sexual harassment Emerging Legal Issues

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–5 Attracting Human Resources Job Analysis A systematic analysis of jobs within an organization. Job Description A listing of the job’s duties; its working conditions; and the tools, materials, and equipment use to perform the job. Job Specification A listing of the knowledge, skills, abilities, and other credentials the incumbent jobholder will need to do a job.

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–6 Recruiting Human Resources (cont’d) Executive search firms Union halls Employee referrals Sources of External Recruits Advertising Campus interviews Employment agencies Walk-ins

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19-7 Selecting Human Resources Validation:Validation:  Determining the extent to which a selection device is predictive of future job performance.  Predictive validation  Correlating previously collected test scores of employees with the employees’ actual job performance.  Content validation  The use of logic and job analysis to determine that selection techniques measure the exact skills needed for job performance.  Used to establish the job relatedness of a selection device.

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–8 Selecting Human Resources (cont’d) TestsInterviews Application Blanks Selection Methods and Tools

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–9 Developing Human Resources Training and DevelopmentTraining and Development  Training  Teaching operational or technical employees how to do the job for which they were hired.  Development  Teaching managers and professionals the skills need for both present and future jobs.

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–10 Developing Human Resources (cont’d) Errors of leniency and strictness Halo error Recency error Rater Errors in Performance Appraisal

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–11 Maintaining Human Resources Determining CompensationDetermining Compensation  Compensation  The financial remuneration given by the organization to its employees in exchange for their work. –Wages –Salary –Incentives  Purposes of compensation  Provide means to maintain a reasonable standard of living.  Provide a tangible measure of the value of the individual to the organization.

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–12 Maintaining Human Resources (cont’d) Shop carefully for best-cost providers Avoid redundant coverage Provide only benefits that employees want Managing Benefits Effectively

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–13 Managing Labor Relations Provide a complaint and appeal system Avoid favoritism Provide fair treatment with clear standards Avoiding Unionization

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–14 Managing Knowledge Workers Knowledge WorkersKnowledge Workers  Contribute to an organization based on what they know (e.g., computer scientists, engineers, and physical scientists). Characteristics of Knowledge WorkersCharacteristics of Knowledge Workers  Tend to work in high-technology areas.  Are abstract knowledge experts.  Like to work independently and identify strongly with their professions.  Have skills that require continual updating and additional training.

© 2010 South-Western, Cengage Learning, Inc. All rights reserved Key Terms human resource managementhuman resource management human capitalhuman capital Title VII of the Civil Rights Act of 1964Title VII of the Civil Rights Act of 1964 adverse impactadverse impact Equal Employment Opportunity CommissionEqual Employment Opportunity Commission Age Discrimination in Employment ActAge Discrimination in Employment Act affirmative actionaffirmative action Americans with Disabilities ActAmericans with Disabilities Act Civil Rights Act of 1991Civil Rights Act of 1991 Fair Labor Standards ActFair Labor Standards Act Equal Pay Act of 1963Equal Pay Act of 1963 Employee Retirement Income Security Act of 1974Employee Retirement Income Security Act of 1974 Family and Medical Leave Act of 1933Family and Medical Leave Act of 1933 National Labor Relations (Wagner) ActNational Labor Relations (Wagner) Act National Labor Relations Board (NLRB)National Labor Relations Board (NLRB) Labor-Management Relations (Taft-Hartley) ActLabor-Management Relations (Taft-Hartley) Act Occupational Safety and Health Act of 1970 (OSHA)Occupational Safety and Health Act of 1970 (OSHA)

© 2010 South-Western, Cengage Learning, Inc. All rights reserved.19–16 Key Terms (cont’d) employment-at-willemployment-at-will job analysisjob analysis replacement chartreplacement chart employee information system (skills inventory)employee information system (skills inventory) recruitingrecruiting internal recruitinginternal recruiting external recruitingexternal recruiting realistic job preview (RJP)realistic job preview (RJP) validationvalidation trainingtraining developmentdevelopment Behaviorally Anchored Rating Scale (BARS)Behaviorally Anchored Rating Scale (BARS) 360-degree feedback360-degree feedback compensationcompensation performance appraisalperformance appraisal job evaluationjob evaluation benefitsbenefits labor relationslabor relations collective bargainingcollective bargaining grievance proceduregrievance procedure knowledge workersknowledge workers