1. Business Essentials, 7th Edition Ebert/Griffin
Human Resource Management and Labor Relations
Business Essentials, 7th Edition Ebert/Griffin
Instructor Lecture PowerPoints
PowerPoint Presentation prepared by
Carol Vollmer Pope Alverno College

2. Homework
Page 119 chapter 8 Answer the first 8 questions. One week fro today. We need some to prepare a presentation in 5-10 minutes.

3. © 2009 Pearson Education, Inc.
What’s in It for Me?
Why does effectively managing human resources matter to you?
By understanding the material in this chapter, you’ll be better able to understand:
The importance of properly managing human resources in a unit or business you own or supervise
Why and how your employer provides the working arrangements that most directly affect you
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4. The Foundations of Human Resource Management
Human Resource Management (HRM)
Activities directed at attracting, developing, and maintaining an effective workforce
The Strategic Importance of HRM
Human resources has a substantial impact on a firm’s bottom-line performance
Many firms are developing strategic HR plans
Chief officer reports to CEO
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5. Who is responsible for HRD?

6. Figure 10.1 The HR Planning Process
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7. HR planning process
First the HR department will conduct a job analysis.
Second, they will forecast a demand for labor.
This forecast will address the internal and external supplies of labor.
Finally they will develop a plan to match demand with supply.

8. © 2009 Pearson Education, Inc.
HR Planning
Job Analysis
A systematic analysis of jobs within an organization
Job Description
Lists the duties and responsibilities of a job; its working conditions; and the tools, materials equipment, and information used to perform it
Job Specification
Lists the skills, abilities, and other credentials and qualifications needed to perform the job effectively
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9. discussion
Why job description is necessary?

10. Forecasting Labor Supply
Forecasting the internal labor supply means determining the number and type of employees who will be in the firm at some future date.
management tools:

11. Forecasting Labor Supply
management tools:
Replacement charts: List each key management position, who occupies it, how long that person will likely stay in the job, and who (by name) is qualified as a replacement.
Skills inventories: Computerized information systems containing information about each employee’s education, work experience, and career aspirations.

12. © 2009 Pearson Education, Inc.
HR Planning (cont’d)
Forecasting HR Demand and Supply
Forecasting external supply (number/type of people who will be available for hiring from the labor market at large)
State employment commissions e.g. job centers.
Government reports
College information regarding enrollment and graduates in various majors
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13. © 2009 Pearson Education, Inc.
HR Planning (cont’d)
Matching HR Supply and Demand
Alleviating Shortfalls by taking the following steps:
Seeking new hires
Retraining and transferring present employees
Retaining retirees
Installing more productive systems
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14. Managing a Projected Shortfall how?
Hire new employees, if people are indeed available in the external market.
Retrain and transfer current employees into understaffed areas, providing a morale boost to strong employees.
Consider hiring temporary workers, especially if the shortfall appears short-term or uncertain.
Convince older workers not to retire, which usually requires strong financial incentives.
The creative solution: Develop and install productivity enhancing systems

15. © 2009 Pearson Education, Inc.
HR Planning (cont’d)
Matching HR Supply and Demand
Managing Overstaffing
Transferring extra employees
Not replacing employees who quit (attrition)
Encouraging early retirement
Laying off personnel
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16. Staffing the Organization
Recruiting
Attracting qualified persons to apply for the jobs that are open
Internal Recruiting
Considering present employees as candidates for openings
Promotion from within
Union contracts and job bidding inside the organization.
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17. Staffing the Organization
External Recruiting
Attracting people outside of the organization to apply for jobs
State employment agencies
Private employment agencies
Advertisements
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18. Discussion
Faculty of Commerce is looking to recruit a manager to the faculty. Think in internal and external recruiting.

19. Selecting Human Resources
Tools used.
- Application forms; however, make sure the forms do not ask illegal questions such as one’s age, marital status, etc.
- Tests —ability, skills, aptitude /fitness, knowledge, attitude

20. Selecting Human Resources
Tools used.
- Interviews — interview people through a committee. validity is increased by:
Training interviewers to reduce individual bias
Using a structured interview format with job-related questions to improve consistency, reduce bias, and eliminate illegal questioning of applicants

21. Selecting Human Resources
Other techniques that can be used:
Polygraph, or lie detector test. These are not used that frequently anymore.
Physical exams, but employers must be aware with Disabilities Act, which forbids denying someone employment based on physical disability alone.
Drug tests.
Reference checks.

22. Developing the Workforce
Training
On-the-job training: Working side-by-side as the employee learns the tasks required of the position.
Off-the-job training: training them away from their jobs.
Vestibule/entrance training: Also called “the teachable moment,” vestibule training occurs when a supervisor or manager discusses a training issue with an employee while they are walking in the office after encountering a specific situation.
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23. Developing the Workforce (cont’d)
Performance Appraisal
Defining performance standards
Observing performance
Writing up the assessment
Discussing the appraisal
Performance Appraisal
Evaluating job performance
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24. FIGURE 10.2 Sample Performance Evaluation Form
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25. Compensation and Benefits
Compensation System
The total package of rewards that a company offers employees in return for their labor
Wages —money paid for time worked
Salary —money paid to perform a job
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26. Compensation and Benefits
Factors affecting compensation
Competitors’ wage offerings
Internal wage and salary structure—includes: job value, performance, and longevity
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27. Example of Salary Structure in PA
Basic Salary
Wife & children
Supervision
specialization
qualification
Annual increase.

28. Compensation and Benefits (cont’d)
Incentive programs: are Special pay programs designed to motivate high performance
Individual incentives:
Bonuses
Merit /advantage salary systems: pay rise linked to performance in non-sales jobs.
Pay for performance (variable pay)
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29. Compensation and Benefits (cont’d)
Incentive programs
Company-wide incentives: to all employees (group incentives)
Profit-sharing plans
Gain sharing plans, which reward groups for their performance in reducing cost.
Pay-for-knowledge plans, which encourage employees to gain new knowledge or skills. E.g, extra payment for certain training hours.
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30. Compensation and Benefits (cont’d)
Benefits Programs: can be mandatory or discretionary.
Mandatory (required by law)
Social Security retirement benefits
Workers’ compensation insurance
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31. Compensation and Benefits (cont’d)
Discretionary (optional)
Health, life, and disability insurance
Vacations and holidays
Employee assistance programs
Retirement (pension) plans
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32. Compensation and Benefits (cont’d)
Cafeteria benefits plans.
These plans set aside a certain amount of money for benefits for each employee, and those employees choose how they wish to spend those funds
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33. The Legal Context of HRM
Equal Employment Opportunity Laws
Protect workers from unfair or inappropriate (non-job-related) discrimination in the workplace, e.g, manager bias to employee’s friend.
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34. The Legal Context of HRM
Protected Classes in the Workplace
Individuals sharing common characteristics as defined by law
Race, color, religion, gender, age, national origin, disability status, and status as a military veteran
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35. The Legal Context of HRM (cont’d)
Contemporary Legal Issues in HRM
Employee safety and health: was addressed with Occupational Safety and Health Act of 1970 (OSHA): work place free from hazard.
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36. The Legal Context of HRM (cont’d)
Emerging areas of discrimination law include areas:
AIDS in the workplace
Sexual harassment
Hostile work environment (a subtler /indirect form of sexual harassment, such as off-color jokes, but has been expanded to include age, ethnicity and religion as well).
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37. The Legal Context of HRM (cont’d)
Contemporary Legal Issues in HRM
Employment-at-will
This concept holds that an employee or employer can terminate an employment contract at any time for any reason.
In recent years, increasing numbers of employees have challenged their dismissals, citing wrongful discharge.
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38. The Legal Context of HRM (cont’d)
Contemporary Legal Issues in HRM
The Patriot Act
Developed in response to 9/11/2001
Grants government investigators rights to what was privileged/ confidential information.
Bars certain “restricted” individuals (i.e., ex convicts, aliens/ foreign) from working with restricted biological agents
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39. New Challenges in the Changing Workplace
Managing Workforce Diversity
Workforce diversity: includes, The range of workers’ attitudes, values, beliefs, and behaviors that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics
Organizations are recognizing that diversity can be a competitive advantage
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40. © 2009 Pearson Education, Inc.
FIGURE 10.3a Distribution of the Labor Force by Race – 2050 in USA FIGURE 10.3b Hispanic Share of Civilian Labor
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41. New Challenges in the Changing Workplace (cont’d)
Managing Knowledge Workers
Knowledge workers add value because of what they know, they include:
Computer scientists
Physical scientists
Engineers
Hiring and retaining knowledge workers is a critical HR challenge
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42. Discussion
please give two examples of knowledge workers who might be employed by a large ice-cream manufacturer.

43. New Challenges in the Changing Workplace (cont’d)
Contingent Workers
A person who works for an organization on something other than a permanent or full-time basis. These can include:
Independent contractors
On-call workers
Temporary employees, e.g, employing through agencies.
Contract and leased employees
Part-time workers
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44. New Challenges in the Changing Workplace (cont’d)
Managing Contingent and Temporary Workers. Some of these challenges include:
Careful planning for coordinated use of temporary workers
Understanding the advantages and disadvantages of contingent workers
Assessing the true cost of using contingent workers
Developing a strategy for integrating contingent workers into the organization
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45. Dealing with Organized Labor
Labor Union
A group of individuals working together to achieve shared job-related goals, such as higher pay, shorter working hours, more job security, greater benefits, or better working conditions
Labor Relations
The process of dealing with employees who are represented by a union.
Collective Bargaining
The process by which union leaders and managers negotiate common terms and conditions of employment for the workers represented by unions
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46. Collective Bargaining
An ongoing process involving both the drafting and the administering of the terms of a labor contract.
Contract Issues, include:
Compensation
Cost-of-living adjustment (COLA) clauses
Wage reopener clauses/sections
Benefits
Job security
Management rights
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47. Collective Bargaining (cont’d)
Union Tactics When Bargaining sometimes Fails. What they use?
Strike
Picketing/ protest, e.g., go on the media
Boycott: Union members will not buy products from a specific firm.
Work slowdown e.g., call in sick
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48. Collective Bargaining (cont’d)
Management Tactics When Bargaining Fails
Lockouts: Workers are locked out of company facilities.
Hiring strikebreakers who cross the picket/ strike lines.
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49. Collective Bargaining (cont’d)
Resolving Disputes
Mediation
Voluntary Arbitration
Compulsory Arbitration
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50. Resolving Disputes Resolving union disputes includes:
Mediation, where the parties sit down at the bargaining table to try to work things out with a mediator or a third party.
Arbitration, either voluntary or compulsory, which calls for a third party to judge the situation and make a decision on the appropriate solution.
Some arbitration is binding, which means that both sides agree to abide by the arbitrator’s decision as law.

51. Homework
Answer questions 1-5 in page 147