managing human resources chapter 9. chapter 9 learning goals 1.w 1.what is the human resource...
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Managing Human ResourcesManaging Human ResourcesManaging Human ResourcesManaging Human Resources
Chapter 9
Chapter 9 Learning GoalsChapter 9 Learning Goals
1.1. WWhat is the human resource management process?
2.2. HHow are human resource needs determined?
3.3. HHow do human resource managers find good people to fill the jobs?
4.4. WWhat is the employee selection process?5.5. WWhat types of training and development
do organizations offer their employees?
Chapter 9 Learning Goals Chapter 9 Learning Goals (cont’d.)(cont’d.)
6.6. WWhat is a performance appraisal?
7.7. HHow are employees compensated?
8.8. WWhat is organizational career management?
9.9. WWhat are the key laws and federal agencies affecting human resource management?
10.10. WWhat trends are affecting human resource management?
Learning Goal 1Learning Goal 1
• WWhat is the human resource management process?
JJob analysis and HR planning EEmployee recruitment and selection EEmployee training, performance appraisal,
and compensation EEnds when employee leaves organization
Human Resource ManagementHuman Resource ManagementThe process of hiring, developing, motivating, and evaluating employees to achieve organizational goals
Human Resource Management Human Resource Management ProcessProcessStrategies &
objectives of the organization
Training & development
Performance planning & evaluation
Compensation & benefits
Organizational career management
Job analysis & design
HR planning & forecasting
Employee recruitment
Employee selection
Learning Goal 2Learning Goal 2
• HHow are human resource needs determined?– Job analysis
• Studying a job to determine its tasks and duties for – Setting pay– Determining employee job performance– Specifying hiring requirements– Designing training programs
– Job description• Lists the tasks and responsibilities of the job
– Job specification• Describes skills, knowledge, and abilities needed to fill the job
described in the job description
JobJob Analysis:Analysis:A study of the tasks required to do a particular job well
• job descriptionjob description
• job specificationjob specification
Job analysis & design
HR planning & forecasting
Employee recruitment
Employee selection
Demand forecast:Demand forecast:Determining the number of employees needed by some future time
Supply forecast (internal):Supply forecast (internal):Estimating the number of current employees who will be available to fill various jobs at some future time
Job analysis & design
HR planning & forecasting
Employee recruitment
Employee selection
Labor Supply & DemandLabor Supply & Demand
Labor shortageshortage in the 1990s has turned the tables for employers
• some individuals seeking work advertise themselves as free agentsfree agents
• employers bid for interviews with free agents
• US Department of Labor estimates there are 10 million free agents
Source: Entrepreneur, Jan. 2000, p. 16.
Learning Goal 3Learning Goal 3
• HHow do human resource managers find good people to fill the jobs?– Most firms begin by trying to fill the job from within– If internal candidates are not available, an external search
begins• Local media is used to find workers who are
– Nontechnical– Unskilled– Nonsupervisory
• Highly trained recruits are found by using– College recruiters– Executive search firms– Job fairs– Company Web sites
Recruitment:Recruitment:Attempt to find and attract qualified applicants in the external labor market
• job fairjob fair
Job analysis & design
HR planning & forecasting
Employee recruitment
Employee selection
Employee TalentEmployee Talent
Ratings made by Fortune magazine:Most admired Most admired employee talent:
– Microsoft– Cisco Systems– Coca-Cola
LeastLeast admired admired employee talent::– MedPartners– Shoney’s– Trump Hotels & Casinos
Source: Fortune, Mar. 1, 1999, p. 70.
Learning Goal 4Learning Goal 4
• WWhat is the employee selection process?– Applicant submits an application or résumé– Receives a short, structured interview– Applicant may be asked to take an aptitude, personality, or
skills test– Selection interview
• In-depth discussion of applicant’s– Work experience, skills, and abilities– Education and career interests
• Applicants seeking professional or managerial positions may be interviewed by several people
– Successful applicants may be asked to undergo a physical exam
Selection:Selection:The process of determining which people in the applicant pool possess the qualifications necessary to be successful on the job
Job analysis & design
HR planning & forecasting
Employee recruitment
Employee selection
Steps of the Selection ProcessSteps of the Selection Process
Initial screening
Employment testing
Selection interview
Background and reference checks
Physical examination
Decision to hire
Learning Goal 5Learning Goal 5
• WWhat types of training and development do organizations offer their employees?– Training and development programs are
designed to increase employees’ knowledge, skills, and abilities to foster job improvement• Formal training• Development programs
– Job rotation– Executive education programs– Mentoring– Special project assignments
Training and Development:Training and Development:Activities that provide learning situations in which an employee acquires additional knowledge or skills to increase job performance
Training & development
Performance planning & evaluation
Compensation & benefits
•on-the-job trainingon-the-job training•off-the-job trainingoff-the-job training
Training and DevelopmentTraining and Development
Forecasting International predicts that the need for life-long learninglife-long learning will characterize business in the future
Implications:Implications:– need for higher training budgets
– need for constant retraining due to turnover
– use of technology for just-in-time training
– training as a motivational & retention tool
Source: HR News, Dec. 1999, pp. 18-20.
Learning Goal 6Learning Goal 6
• WWhat is a performance appraisal– Compares an employee’s actual
performance with the expected performance
– Typically used to determine an employee’s• Compensation• Training needs• Advancement opportunities
Training & development
Performance planning & evaluation
Compensation & benefits
Performance planning & evaluation Performance planning & evaluation process:process:Performance planning:
Setting standards & expectations
Employee job task behavior
Performance evaluation
Rewards & job changes
Performance EvaluationPerformance Evaluation
360° Evaluation360° Evaluation: performance feedback that combines self-appraisal with ratings made by coworkers at the same level, above, and below the target person in the managerial hierarchy
Advantages:Advantages:provides a well-rounded view
avoids individual bias
can have more impact than a single source
can establish consensus
Learning Goal 7Learning Goal 7
• HHow are employees compensated?– Direct pay
• Hourly wage or monthly salary paid to an employee• May include bonuses and profit shares
– Indirect pay• Various benefits and services
– Required by law: unemployment and worker’s compensation, Social Security
– Optional: paid vacations and holidays, pensions, health and other insurance products, employee wellness programs, college tuition reimbursement
Types of Compensation or Pay:Types of Compensation or Pay:• hourly wages• salaries• piecework and commission• accelerated commission schedule• bonus• profit sharing• fringe benefits
Training & development
Performance planning & evaluation
Compensation & benefits
Learning Goal 8Learning Goal 8
• WWhat is organizational career management?– Facilitation of employee job changes including
• PromotionsPromotions– Upward move with more authority, responsibility and pay
• TransfersTransfers– Horizontal move in the organization
• Layoffs Layoffs – Temporary separation arranged by the employer, usually
when business is slow
• RetirementsRetirements– Permanent separation that ends one’s career
Types of Career Change:Types of Career Change:
1.1. Job change within the organization– transfer– promotion– demotion
2.2. Separation from the organization– layoff– termination– resignation– retirement
Organizational career management
Learning Goal 9Learning Goal 9
• WWhat are the key laws and federal agencies affecting human resource management?– Federal law prohibits age, race, gender, color, national origin,
religion or disability discrimination– Americans with Disabilities Act bans discrimination against
disabled workers– Family and Medical Leave Act requires employers to provide
employees up to 12 weeks of unpaid leave a year– Other Federal agencies dealing with HR administration:
• Equal Employment Opportunity Commission (EEOC)• Occupational Safety and Health Administration (OSHA)• Office of Federal Contract Compliance Programs (OFCCP)• Wage and Hour Division of the Department of Labor
Laws Affecting Human ResourcesLaws Affecting Human Resources
1.1. Fair Labor Standards Act (1938)
2.2. Equal Pay Act (1963)
3. 3. Occupational Health & Safety Act (1970)
4. 4. Americans with Disabilities Act (1990)
Learning Goal 10Learning Goal 10
• WWhat trends are affecting human resource management?– Women comprise 45% of the American workforce
• Growing numbers of dual-career couples• Companies are facing issues like sexual harassment and
nonwork issues such as child and elder care
– Workers change jobs 3 to 5 times during their career• Lessens loyalty between employer and employee
– American workforce is becoming more diverse• Companies are offering diversity training and mentoring of
minorities
Trends in Human Resources Trends in Human Resources
1. Social changeSocial change More women in the work force More people changing jobs
2. DemographicsDemographics More diverse work force
3. Advancing TechnologyAdvancing Technology enables more outsourcing enables more telecommuting
4. Global CompetitionGlobal Competition– adaptable employees, need for language training &
cultural orientation
People Changing Jobs People Changing Jobs
Amount of Time MBAsExpect to Stay in Their First Job
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
5 or more years
Source: Fortune, Mar. 16, 1998.
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