1. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-1 Managing Human Resources

2. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-2 Explain the importance of the human resource management process and the external influences that might affect that process. Discuss the tasks associated with identifying and selecting competent employees. Explain the different types of orientation and training. Describe strategies for retaining competent, high- performing employees. Discuss contemporary issues in managing human resources.

3. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-3 Why Is HRM Important? As a significant source of competitive advantage –People-oriented HR creates superior shareholder value As an important strategic tool –Achieve competitive success through people by treating employees as partners To improve organizational performance –High performance work practices lead to both high individual and high organizational performance

4. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-4 Why Is HRM Important (cont.)? High-performance work practices - work practices that lead to both high individual and high organizational performance

5. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-5 Exhibit 13-1 High-Performance Work Practices

6. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-6 Exhibit 13-2 HRM Process

7. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-7 External Factors That Affect the HRM Process The Economy’s Effect on HRM –The global economic downturn has left what many experts believe to be an enduring mark on HRM practices worldwide –U.S. workers have dramatically lowered their career and retirement expectations for the foreseeable future

8. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-8 External Factors That Affect the HRM Process (cont.) Employee Labor Unions –Labor union - an organization that represents workers and seeks to protect their interests through collective bargaining –Work stops, labor disputes, and negotiations between management and labor are just a few of the challenges organizations and managers face when their workforce is unionized

9. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-9 External Factors That Affect the HRM Process (cont.) Legal Environment of HRM –Affirmative action - organizational programs that enhance the status of members of protected groups –Two current U.S. laws that each have the potential to affect future HRM practices Protection and Affordable Care Act (PPACA and commonly called the Health Care Reform Act) Social Networking Online Protection Act (SNOPA)

10. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-10 Exhibit 13-3 Major HRM Laws

11. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-11 Exhibit 13-3 Major HRM Laws (cont.)

12. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-12 Exhibit 13-3 Major HRM Laws (cont.)

13. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-13 Global HRM Laws Work councils - groups of nominated or elected employees who must be consulted when management makes decisions involving personnel Board representatives - employees who sit on a company’s board of directors and represent the interests of the firm’s employees

14. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-14 External Factors That Affect the HRM Process (cont.) Demographic Trends –The oldest, most experienced workers (those born before 1946) make up 6 percent of the workforce. –The baby boomers (those born between 1946 and 1964) make up 41.5 percent of the workforce. –Gen Xers (those born 1965 to 1977) make up almost 29 percent of the workforce. –Gen Yers (those born 1978 to 1994) make up almost 24 percent of the workforce

15. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-15 Human Resource Planning Human resource planning - ensuring that the organization has the right number and kinds of capable people in the right places and at the right times Job analysis - an assessment that defines jobs and the behaviors necessary to perform them

16. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-16 Human Resource Planning (cont.) Job description - a written statement that describes a job Job specification - a written statement of the minimum qualifications a person must possess to perform a given job successfully

17. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-17 Recruitment and Decruitment Recruitment - locating, identifying, and attracting capable applicants Decruitment - reducing an organization’s workforce

18. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-18 Exhibit 13-4 Recruiting Sources

19. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-19 Exhibit 13-5 Decruitment Options

20. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-20 Selection Selection - screening job applicants to ensure that the most appropriate candidates are hired A valid selection device is characterized by a proven relationship between the selection device and some relevant criterion A reliable selection device indicates that it measures the same thing consistently

21. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-21 Exhibit 13-6 Selection Decision Outcomes

22. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-22 Exhibit 13-7 Selection Tools

23. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-23 Exhibit 13-7 Selection Tools (cont.)

24. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-24 Exhibit 13-7 Selection Tools (cont.)

25. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-25 Selection (cont.) Realistic Job Preview (RJP) - a preview of a job that provides both positive and negative information about the job and the company

26. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-26 Providing Employees with Needed Skills and Knowledge Orientation - introducing a new employee to his or her job and the organization Employee Training is an important HRM activity. In 2011, U.S. business firms spent more than $59 billion on formal employee training.

27. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-27 Exhibit 13-8 Types of Training

28. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-28 Exhibit 13-9 Traditional Training Methods

29. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-29 Exhibit 13-9 Traditional Training Methods (cont.)

30. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-30 Retaining Competent, High-Performing Employees Performance management system - establishes performance standards used to evaluate employee performance. Skill-based pay - a pay system that rewards employees for the job skills they can demonstrate Variable pay - a pay system in which an individual’s compensation is contingent on performance

31. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-31 Exhibit 13-10 Performance Appraisal Methods

32. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-32 Exhibit 13-10 Performance Appraisal Methods (cont.)

33. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-33 Exhibit 13-11 What Determines Pay and Benefits

34. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-34 Contemporary Issues in Managing Human Resources Downsizing - the planned elimination of jobs in an organization Sexual harassment - any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual’s employment, performance, or work environment

35. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-35 Exhibit 13-12 Tips for Managing Downsizing

36. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-36 Contemporary Issues in Managing Human Resources (cont.) Family-friendly benefits - benefits that accommodate employees’ needs for work–life balance

37. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-37 Contemporary Issues in Managing Human Resources (cont.) Employee Health Care Costs - since 2002, health care costs have risen an average of 15 percent a year and are expected to double by the year 2016 from the $2.2 trillion spent in 2007 Employee Pension Plan Costs - pension commitments have become such an enormous burden that companies can no longer afford them. In fact, the corporate pension system has been described as “fundamentally broken

38. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-38 Review Learning Outcome 13.1 Explain the importance of the human resource management process and the external influences that might affect that process. –HRM is important for three reasons 1.It can be a significant source of competitive advantage. 2.It’s an important part of organizational strategies 3.the way organizations treat their people has been found to significantly impact organizational performance

39. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-39 Review Learning Outcome 13.2 Discuss the tasks associated with identifying and selecting competent employees –A job analysis is an assessment that defines a job and the behaviors necessary to perform it –A job description is a written statement describing a job –A job specification specifies the minimum qualifications a person must possess to successfully perform a given job

40. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-40 Review Learning Outcome 13.2 (cont.) Major sources of potential job candidates include –The Internet –Employee referrals –Company Web site –College recruiting –Professional recruiting organizations.

41. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-41 Review Learning Outcome 13.2 (cont.) Different selection devices include; application forms, written tests, work sampling, assessment centers, background investigations, reference checks, and physical exams A realistic job preview gives an applicant more realistic expectations about the job, and should increase employee job satisfaction and reduce turnover

42. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-42 Review Learning Outcome 13.3 Explain the different types of orientation and training –Orientation results in an outsider-insider transition that makes the new employee feel comfortable and fairly well-adjusted –The two types of training are general and specific

43. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-43 Review Learning Outcome 13.4 Describe strategies for retaining competent, high-performing employees –Performance appraisal methods are written essays, critical incidents, graphic rating scales, BARS, multiperson comparisons, MBO, and 360-degree appraisals. –Skill-based pay systems reward employees for demonstrated job skills and competencies. –Variable pay system, an employee’s compensation is contingent on performance

44. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 13-44 Review Learning Outcome 13.5 Discuss contemporary issues in managing human resources. –Managers can manage downsizing by communicating openly and honestly –Sexual harassment is any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual’s employment, performance, or work environment –Organizations are dealing with work–family life balance issues –Organizations are controlling HR costs by controlling employee health care costs and pensions