1. * * Chapter Eleven Human Resource Management: Finding and Keeping the Best Employees Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. * * HUMAN RESOURCE MANAGEMENT Working with People is Just the Beginning LG1 11-2

3. * * HUMAN RESOURCE MANAGEMENT (HRM) Human Resource Management -- The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating and scheduling employees to achieve organizational goals. HRM’s role has grown because: 1. Increased recognition of employees as a valuable resource. 2. Changes in law that rewrote old workplace practices. LG1 Working with People is Just the Beginning 11-3

4. * * DEVELOPING the FIRM’S ULTIMATE RESOURCE Service and high-tech manufacturing requires employees with highly technical job skills. LG1 Developing the Firm’s Ultimate Resource Such workers are scarce, making recruiting and retention more important and more difficult. The human resource job is now the job of all managers in an organization. 11-4

5. * * CHALLENGES in FINDING HIGH-LEVEL WORKERS A shortage of trained workers in key areas Worker shortage in skilled trades Changes in employee attitudes about work A declining economy with fewer full-time jobs Expanding global markets with low-wage workers Increasing benefit demands and benefit costs A decreased sense of employee loyalty LG1 The Human Resource Challenge 11-5

6. 1.During interviews, it’s not appropriate to ask an applicant his/her age. 2.It’s not appropriate to ask an applicant about past work experience. 3.It’s OK to ask whether the applicant is physically able to lift heavy weights. 4.It’s appropriate to ask women questions about their children. 5.You have the right to ask an applicant for names of work-related and personal references. 6.It’s OK to ask any applicant whether he or she has an automobile. IMPLEMENTING EEOC WHICH STATEMENTS ARE T/F? 11-6

7. * * HUMAN RESOURCE PLANNING PROCESS Determining a Firm’s Human Resource Needs LG3 Preparing a human resource inventory of employees. Preparing a job analysis. Assessing future human resource demand. Assessing future labor supply. Establishing a strategic plan. 11-7

8. * * WHAT’S a JOB ANALYSIS? Determining a Firm’s Human Resource Needs LG3 Job Analysis -- A study of what employees who holds various job titles do. Job Description -- Specifies the objectives of the job, the type of work, the responsibilities and duties, working conditions and relationship to other jobs. Job Specifications -- A summary of the minimal education and skills needed to do a particular job. 11-8

9. * * RECRUITING EMPLOYEES Recruiting Employees from a Diverse Population LG4 Recruitment -- A ctivities for obtaining the right number of qualified people at the right time. Methods Internal External 11-9

10. * * EMPLOYEE SOURCES LG4 Recruiting Employees from a Diverse Population 11-10

11. * * SELECTION Selecting Employees Who Will be Productive LG5 Selection -- Gathering information and deciding who should be hired, under legal guidelines, to fit the needs of the organization and individuals. 11-11

12. * * STEPS in the SELECTION PROCESS Selecting Employees Who Will be Productive LG5 1. Obtaining complete application forms 2. Conducting initial and follow-up interviews 3. Giving employment tests 4. Conducting background investigations 5. Obtaining results from physical exams 6. Establishing trial (probationary) work periods 11-12

13. * * HIRING CONTINGENT WORKERS Hiring Contingent Workers LG5 Contingent Workers -- Include part-time and temporary workers, seasonal workers, independent contractors, interns and co-op students. There are about 5.7 million contingent workers in the U.S. 11-13

14. * * WHY HIRE CONTINGENT WORKERS? Hiring Contingent Workers LG5 Companies hire contingent workers:  When full-time workers are on leave  During periods of peak demand  In uncertain economic times  To save on employee benefits  To screen candidates for future employment 11-14

15. * * TRAINING and DEVELOPING EMPLOYEES Training and Developing Employees for Optimum Performance LG6 Training and Development -- All attempts to improve productivity by increasing an employee’s ability to perform. Training focuses on short-term skills. Development focuses on long-term abilities. 11-15

16. * * THREE STEPS of TRAINING and DEVELOPMENT Training and Developing Employees for Optimum Performance LG6 1. Assessing organization needs and employee skills to develop appropriate training needs. 2. Designing training activities to meet identified needs. 3. Evaluating the training’s effectiveness. 11-16

17. * * MOST COMMONLY USED TRAINING and DEVELOPMENT ACTIVITIES Training and Developing Employees for Optimum Performance LG6 Orientation On-the-Job Training Apprenticeships Off-the-Job Training Online Training Vestibule Training Job Simulation 11-17

18. * * DEVELOPING EFFECTIVE MANAGERS Management Development LG6 Management Development -- Training and educating employees to become good managers and tracking the progress of their skills over time. Management training includes:  On-the-job coaching  Understudy positions  Job rotation  Off-the-job courses and training 11-18

19. * * WHY GOOD EMPLOYEES QUIT LG6 Management Development Source: Robert Half International 11-19

20. * * USING NETWORKS and MENTORING Networking LG6 Networking -- Establishing and maintaining contacts with key managers in and out of the organization and using those contacts to develop relationships. Mentors -- Managers who supervise, coach and guide selected lower-level employees by acting as corporate sponsors. Networking and mentoring go beyond the work environment. 11-20

21. * * APPRAISING PERFORMANCE on the JOB Appraising Employee Performance to Get Optimum Results LG7 Performance Appraisal -- Measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination. A 360-degree review gives managers opinions from people at different levels to get a more accurate idea of the worker’s ability. 11-21

22. * * SIX STEPS of PERFORMANCE APPRAISALS Appraising Employee Performance to Get Optimum Results LG7 1. Establishing performance standards that are understandable, measurable and reasonable. 2. Clearly communicating those standards. 3. Evaluating performance against the standards. 4. Discussing the results with employees. 5. Taking corrective action. 6. Using the results to make decisions. 11-22

23. * * MAJOR USES of PERFORMANCE APPRAISALS LG7 Appraising Employee Performance to Get Optimum Results Identify training needs Use as a promotion tool Recognize worker’s achievements Evaluate the firm’s hiring process Judge the effectiveness of the firm’s orientation process Use as a basis for possible termination of a worker 11-23

24. * * TYPES of PAY SYSTEMS Pay Systems LG8 Salary Hourly Wage/Day Work Piecework System Commission Plans Bonus Plans Profit Sharing Plans Gain-Sharing Plans Stock Options 11-24

25. * * FRINGE BENEFITS on the JOB Fringe Benefits LG8 Fringe Benefits -- Sick leave, vacation pay, pension and health plans that provide additional compensation to employees beyond base wages. In 1929, Fringe benefits accounted for less than 2% of payroll cost. Today it’s about 30%. Healthcare has been the most significant increase in fringe benefit cost. 11-25

26. * * The RANGE of FRINGE BENEFITS Fringe Benefits LG8 Fringe benefits include incentives like:  Company cars  Country club memberships  Recreation facilities  Special home mortgage rates  Paid and unpaid sabbaticals  Day-care and elder care services  Dental and eye care  Legal counseling  Short or compressed work weeks 11-26

27. * * FLEXIBLE SCHEDULING PLANS Scheduling Employees to Meet Organizational and Employee Needs LG9 Flextime Plan -- Gives employees some freedom to choose which hours to work as long as they work the required number. Compressed Work Week -- Employees work the full number of work hours, but in fewer than the standard number of days. Job Sharing -- Lets two or more part-time employees share on a full-time job. 11-27

28. * * USING FLEXTIME PLANS Flextime Plans LG9 Most flextime plans require Core Time -- When all employees are expected to be at their job stations. Flextime is hard to incorporate into shift work and managers have to work longer hours. Communication among employees can also be difficult under flextime and managers have to be alert to any system abuses. 11-28

29. * * A FLEXTIME CHART Flextime Plans LG9 11-29

30. * * COMPRESSED WORK WEEKS Flextime Plans LG9 Employees enjoy long weekends after working long days. Productivity is a concern. Nurses and firefighters often work compressed work weeks. 11-30

31. * * MOVEMENT of EMPLOYEES Moving Employees Up, Over and Out LG9 Employees are promoted or reassigned. Employees are terminated due to performance or economic situations. Employees retire. 11-31

32. * * TERMINATING EMPLOYEES Terminating Employees LG10 As the economic crisis grew, more and more employers have had to layoff employees. Even when the economy is booming, employers are hesitant to hire full-time workers because of the cost of termination. Firing employees is more difficult for employers because of laws preventing termination for certain acts. 11-32

33. * * PROGRESS ASSESSMENT Progress Assessment What are the five steps in human resource planning? What factors make it difficult to recruit qualified employees? What are the six steps in the selection process? Who is considered a contingent worker and why do company hire such workers? 11-33

34. * * PROGRESS ASSESSMENT What’s human resource management? What did Title VII of the Civil Rights Act of 1964 achieve? What’s the EEOC and what was the intention of affirmative action? What does “accommodations” mean in the Americans with Disabilities Act of 1990? Progress Assessment 11-34

35. * * PROGRESS ASSESSMENT Progress Assessment Name and describe five alternative compensation techniques. What advantages do compensation plans such as profit sharing offer an organization? What are the benefits and challenges of flextime? Telecommuting? Job sharing? 11-35

36. * * PROGRESS ASSESSMENT Progress Assessment Name and describe four training techniques. What’s the primary purpose of a performance appraisal? What are the six steps in a performance appraisal? 11-36