1. Human Resource Management
October 31, 2007

2. Human Resources
Dealing effectively with human resource (HR) issues is essential for all managers.
The human resource staff supports managers in carrying out HR responsibilities.
Work Force Diversity
Unionization
Legislation
Globalization

3. HR Legislation- some key issues
Equal Opportunity
Employment at will
Protected Class
Sexual Harassment
Disparate Treatment
Adverse impact
Job relatedness
BFOQ( Bona Fide Occupational Qualifications)
Seniority

4. Unions Membership has been declining steadily (13% in 2006)
Factors contributing to this decline:
Strong employer challenges to unions
Plant closures
International competition
Shrinking manufacturing sector
Labor Contract: Written agreement between union and management that specifies pay schedule, fringe benefits, COLA, and the like.

5. Unions (cont) Union-related legislations:
The Wagner Act (1935) – created the NLRB
The Taft-Hartley Act (1947) – specified a set of unfair labor practices by unions along with the remedies
The Landrum-Griffin Act (1959) – requires each union to report its financial activities and the financial interests of its leaders to the Department of Labor
In the U.S., labor relations are characterized by:
Business unionism
Job-based unionism
Collective bargaining
Voluntary contracts
Adversarial relationships

6. Human Resource Management Process
Strategic HR Planning
HR Tactics
Staffing
Orientation
Training
Career Development
Performance Appraisal
Compensation and Benefits

7. Conditions and Select Responses
Human Resource Planning
Product Demand
Labor Productivity
Labor Demand
Labor Supply
Internal Labor Market
External Labor Market
Conditions and Select Responses
Labor demand exceeds labor supply
Training or retraining
Succession planning
Promotion from within
Recruitment from outside
Subcontracting
Use of contingent workers
Use of overtime
Labor supply exceeds labor demand
Pay cuts
Reduced hours
Work sharing
Voluntary early retirements
Inducements to quit
Layoffs
Labor demand equals labor supply
Replacement of quits from inside or outside
Internal transfers and redeployment

8. Staffing Process
Recruitment – the process of generating a pool of qualified candidates for a particular job.effective recruitment effort should create a pool of qualified applicants.
Job Specification
Job Analysis
Job Description
Selection – the screening process used to decide which of the applicants to hire.

9. Validity and Reliability of Selection Tools
Validity is how well a technique used to assess candidates is related to performance on the job.
Demonstrated by:
Content Validity
Empirical Validity
Reliability is a measure of the consistency of results of the selection method.

10. Tools for Selection Application Form Letter of Recommendation
Ability Tests
Personality Tests
Honesty Tests
Psychological Tests
Performance Simulation Tests
Interviews
Physical Exams

11. Orientation Helps new employees to: Learn more about the company
Learn what is expected of them in the job
Reduce the initial anxiety of a transition
Become familiar with co-workers
Learn about work rules and personnel policies

12. Employee Training
Training is a planned effort to provide employees with specific skills to improve their performance.
Effective training
improves morale
improves an organization’s potential.

13. Develop and Conduct Training
The Training Process
Needs Assessment
Develop and Conduct Training
Evaluation
Organization Needs
Task Needs
Person Needs
Location
Presentation
Type
Techniques used-
Slides
CAI
Lectures
Simulations
Cross Functional Training

14. Career Development
Long-term effort in which the organization helps employees utilize their full potential.
Involves three major phases:
Assessment- choose realistically attainable career paths
Direction- determine the steps needed for employees to attain goals
Development- Outlines actions for employees.

15. The Career Development Process
Assessment
Direction
Development
Promotability forecasts
Succession planning
Individual career counseling
Job posting systems
Career resource centers
Mentoring
Coaching
Job rotation
Tuition assistance programs

16. Performance Appraisal
Three important objectives:
Two-way communication between supervisors and employees.
Constructive feedback to employees in order to capitalize on strengths and reduce weaknesses.
Help managers with payment decisions

17. Approaches to Performance Appraisal
Judgment Approaches
Relative judgments
Absolute judgments
Measure Approaches
Traits
Behaviors Observation
Behavioral anchored rating scales- critical incidents
Outcomes
MBO

18. Compensation
Employees are paid for their contributions to the company.
3 Objectives
Attract high-quality workers from the labor market.
Retain the best employees the company already has.
Motivate employee performance.

19. Components of Total Compensation
Base Compensation
Pay Incentives
Indirect Compensation / Benefits

20. Compensation System Should:
Fit the firm’s strategic objectives
Fit with the firm’s characteristics and environment
Achieve internal equity (perception of fairness)
Achieve external equity
Be based on employee contributions