chapter eleven managing human resources copyright © 2006 by the mcgraw-hill companies, inc. all...

Chapter ElevenChapter ElevenManagingHuman Resources

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

11-3

The Nature of Human Resources Management (HRM)

HRM:All activities involved in determining an organization’s human resource needs, as well as acquiring, training, and compensating people to fill those needs

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

11-4

Planning for Human Resources Needs

Typical HR Issues:How many employees?

What skills are needed to satisfy plans?

Availability of people in the workforce?

What qualifications must employees have?

Cost of staffing?


11-5

Processes of Job Analysis

Job Analysis:The determination through observation and study, of pertinent information about a job, including specific tasks and necessary abilities, knowledge, and skills

Job Description:The formal, written description of a specific job, such as the job title, tasks to be performed, physical and mental skills required, duties, and responsibilities

Job Specification:The written description of the qualifications necessary for a specific job, such as education, experience, personal characteristics, and physical characteristics


11-6

Recruiting New Employees

InternalThe organization’s current employees

ExternalAdvertisements in newspapers and professional journalsEmployment agenciesColleges, vocational schoolsRecommendations from current employeesCompeting firmsUnsolicited applicationsOnline

Did You Know? Several years ago, 21% of companies said they recruited online. Experts say it over 80% today.


11-7

The Selection Process

JOB

Application

Interview

Testing

Reference Checking


11-8

Interviewing Tips

11-9

Top 10 Interview Questions

11-10

Myers-Briggs Type Indicator Categories

Source: Christopher Caggiano, “Psycho Path,” Inc., July 1998, p. 81. Reprinted with permission of Inc. Magazine, Goldhirsh Group, Inc. Reproduced by permission of the publisher via Copyright Clearance Center, Inc.

11-11

Legal Issues in Recruiting and Selecting New Employees

Fair Labor Standards Act (1938)Sets minimum wages and overtime rates (for any time over 40 hours per week).

Equal Pay Act (1963)Requires that men and women who do equal work be paid equally.

Title VII of the Civil rights Act (1964)Created the Equal Employment Opportunity Commission Mandates affirmative action programsOutlaws discrimination on the basis of sex, race, color, or national origin

Did You Know? 40+ years after the Civil Rights Act was passed, corporate officers are only 8.2% African American,5% Hispanic, and 12.5% women.


11-12

Legislation Regulating Hiring and Compensation Practices

Age Discrimination in Employment Act (1967)

Outlaws employment practices that discriminate on the basis of age

Americans with Disabilities ActPrevents discrimination against disabled persons

Source: Annie Finnigan, “Different Strokes,” Working Woman, April 2001, p. 42.

11-13

Affirmative Action

Legally mandated plans that try to increase job opportunities for minority groups by:

Analyzing the current pool of workers

Identifying areas where women and minorities are underrepresented

Establishing specific hiring and promotion goals, with target dates, for addressing discrepancy


11-14

Developing the Workforce

Employee orientationFamiliarizes the newly hired employees with fellow workers, company procedures, and the physical properties of the company.

Employee training and developmentOn-the-jobClassroom

Assessing employee performancePerformance appraisals

Did You Know? Internet-based training is expected to grow to be a $14.5 billion market by 2004.


11-15

Employee Turnover

Promotion

Transfer

SeparationResignation

Retirement

Termination

Layoffs


11-16

Compensating the Work Force

Time WagesFinancial award based on number of hours worked

Piece WagesFinancial award based on the output attained by the employee

CommissionPayment to an employee of a fixed amount or a percentage of the employee’s sales


11-17

Compensating the Workforce

SalaryFinancial award calculated on a weekly, monthly, or annual basis

BonusAn addition to regular compensation for exceptional performance or in appreciation for good work

Profit sharingDistribution of percentage of company profit to employees; sometimes distribution is in the form of company stock


11-18

Hourly Wages: U.S. vs. India

U.S. Occupation India

$12.57 Telephone Operator Under $1.00

$13.17 Medical (Health Record) Technologists/Transcriptionists

$1.50-2.00

$15.17 Payroll Clerk $1.50-2.00

$17.86 Legal Assistant/Paralegal $6.00-8.00

$23.35 Accountant $6.00-15.00

$33.00-35.00 Financial Researcher/Analyst $6.00-15.00

Matthew Grimm (2004) “Profits vs. Jobs”. American Demographics, June 1, www.demographics.com.microsites.magazineartcle.asp? …accessed August 2, 2004.

11-19

Retention Methods

Source: Kemba J. Dunham, “The Jungle,” The Wall Street Journal, May 15, 2001, p. B12. Copyright © 2001 by Dow Jones & Co., Inc. Reprinted with permission of Dow Jones & Co., Inc. via Copyright Clearance Center. 60% Flexible hours and schedules 53% Mentoring programs 25% Profit-sharing 22%

11-20

Benefits

Nonfinancial forms of compensation provided to employees such as:

Pension plans for retirement

Health, disability, and life insurance

Holidays and paid days off for vacation or illness

Credit union membership

Health programs

Child care

Elder care

Assistance with adoption


11-21

Increasing Employee Satisfaction

Source: USA Today Snapshots, September 20, 2001, D-1.

American Workers Prefer Happiness Over Money

What American’s Value Most About Work:

Job Satisfaction 65%

Being Paid Well 34%

Having an Important Title 1%

11-22

Increasing Employee Satisfaction

Source: “Hewitt Study Shows Work/Life Benefits Continue to Grow Despite Slowing Economy,” Hewitt Associates LLC press release, April 23, 2001.

Benefits: % Offering

Child care assistance 91

Elder care programs 49

Flexible schedules 73Adoption benefits 32Personal/professional growth 78

Financial security programs 41

Group/discounted purchases 39

On-site personal services 57

Casual dress 66

11-23

Managing Unionized Employees

Labor Unions:Employee organizations formed to deal with employers to achieve better pay, hours, and working conditions


11-24

Managing Unionized Labor

Collective Bargaining:The negotiation process through which management and unions reach agreement about compensation, working hours, and working conditions for a bargaining unit

Labor Contract:The formal, written document that spells out the relationship between the union and management for a specified period of time – usually two or three years


11-25

The Collective Bargaining Process


11-26

Resolving Disputes

Labor’s Tactics Strikes

Picketing

Boycott

Management’s Tactics

Lockout

Strikebreakers/hiringreplacements


11-27

Outside Resolution

ConciliationThe conciliator’s goal is to get both parties to focus on the issues and to prevent negotiations from breaking down

MediationThe mediator’s role is to suggest or propose a solution to the problem

ArbitrationThe arbitrator’s solution is legally binding and enforceable


11-28

Workforce Diversity

Understanding diversity means recognizing and accepting differences as well as valuing the unique perspectives such differences can bring to the workplace


11-29

Characteristics of Diversity

Source: Marilyn Loden and Judy B. Rosener, Workforce America! Managing Employee Diversity as a Vital Resource, 1991, p. 20. Used with permission. Copyright © 1991 Richard D. Irwin, a Times Mirror Higher Education Group, Inc., company.

11-30

U.S. Census Bureau PeopleQuick Facts

11-31

The Benefits of Workforce Diversity

1. More productive use of a company’s human resources2. Reduced conflict among employees of different

backgrounds as they learn to respect each other’s differences

3. More productive working relationships4. Increased commitment to and sharing of organizational

goals among diverse employees at all organizational levels

5. Increased innovation and creativity6. Increased ability to serve the needs of an increasingly

diverse customer base


11-32

America’s 10 Best Companiesfor Minorities

11-33

Affirmative Action Programs

Legally mandated plans that try to increase job opportunities for minority groups by:

Analyzing the current pool of workers

Identifying areas where women and minorities are underrepresented

Establishing specific hiring and promotion goals to resolve the discrepancy.

Prohibits organizations from setting hiring quotas that might result in reverse discrimination


11-34

Median Annual Income for Some HR Jobs

Labor relations manager $107,900

Compensation manager $97,800

Human resources manager $91,400

Benefits manager $85,500

Training manager $78,200

Payroll manager $70,80043.“Human Resources Managers,” CareerJournal (n.d.), www.careerjournal.com/salaryhiring/industries/hr/20040127- hr-tab.html (accessed May 7, 2004);“Median Annual Income, by Level of Education, 1990–2000, InfoPlease (n.d.), www.infoplease.com/ipa/A0883617.htm (accessed May 7, 2004).

http://www.careerjournal.com/salaryhiring/industries/hr/20040127-%20hr-tab.html

http://www.infoplease.com/ipa/A0883617.htm

11-35

Solve the Dilemma

1. What did Medallion’s HRM department do right in dealing with the employees who were laid off?

2. What are some of the potential problems that must be dealt with after an organization experiences a major trauma such as massive layoffs?

3. What can Medallion do to make the team approach work more smoothly? What role do you think diversity training should play?


11-36

Explore Your Career Options

What are some of the factors you consider most important in deciding which job to accept after graduation?

Is your decision about your college major most influenced by salary, hiring potential in particular areas, or quality of life issues?


11-37

Additional Discussion Questions and Exercises

1. Where do most firms recruit qualified applicants?

2. Why has the use of physical examinations in the selection process become controversial for business?

3. Employee Assistance Programs (EAPs) add to company costs.

Why should a firm bother with EAPs ?

4. Bring a copy of a local newspaper “Help Wanted” section to class.

What qualifications (job specifications) do the ads request of applicants?


11-38

Additional Discussion Questionsand Exercises

5. Bring a copy of a performance appraisal form to class. Copies may be secured from companies or examples may be presented in textbooks.

Is the performance appraisal based on objective or subjective information?

Is the performance appraisal based on preset objectives for the individual employee?


11-39

Chapter 11 Quiz

1. Which of the following positions is most likely to be compensated through commissions?a. counter worker at a fast-food restaurantb. Bricklayerc. automobile salespersond. secretary

2. Which of the following is not an example of a benefit?a. Bonusesb. retirement plansc. health insuranced. credit union membership


11-40

Chapter 11 Quiz

3. Which of the following brings in a neutral third party to settle the dispute in which the decision made by the third party is legally binding and enforceable?

a. Boycottb. Conciliationc. Mediationd. arbitration

4. Which of the following is NOT a benefit of work-force diversity?

a. more productive use of company's human resourcesb. reduced conflict among employees of different ethnicitiesc. increased conflict among employees of different ethnicities d. increased innovation and creativity


11-41

Multiple Choice Questions about the Video

1. Since 1985, Hillerich & Bradsby has received only _____ grievance(s).a. 3,540b. 35c. 5d. 1

2. Hillerich & Bradsby adheres to the quality philosophies ofa. W. Edwards Deming.b. Abraham Maslow.c. Frederick Taylor.d. William Ouchi.


chapter eleven managing human resources copyright © 2006 by the mcgraw-hill companies, inc. all...

Documents

mcgrawhill companies

rights reserved planning

rights reserved legislation

civil rights act

specific job

employment act

job title

job opportunities