Managing Human Resource

Transcription

1 Managing Human Resource

2 Strategic Human Resources Management (HRM) Human Resources Management (HRM) formal systems for the management of people within the organization human resources have a strategic impact create value are rare are difficult to imitate are organized human capital - the knowledge, skills, and abilities of employees that have economic value the emphasis on different HR activities depends on whether the organization is growing, declining, or standing skill

3 Strategic HRM (cont.) The HR planning process a three-stage activity with a strategic purpose derived from the organization s plans 1. planning - determine the organization s plans 2. programming - create specific HR activities 3. evaluating - determine whether HR programs are producing the results needed to contribute to the organization Demand forecasts - determine how many and what type of people are needed derived from organizational plans based on current sales and projected future sales growth determine the demand for different types of workers

4 An Overview Of The HR Planning Process Planning Programming Evaluation Organizational strategic planning HRM environmental scanning Human resources planning Human resources activities Results 1. Labor markets 2. Technology 3. Legislation 4. Competition 5. Economy 1. Demand forecast 2. Internal labor supply 3. External labor supply 4. Job analysis 1. Employee recruitment 2. Employee selection 3. Outplacement 4. Training and development 5. Performance appraisal 6. Reward systems 7. Labor relations 1. Productivity 2. Quality 3. Innovation 4. Satisfaction 5. Turnover 6. Absenteeism 7. Health

5 Strategic HRM (cont.) The HR planning process (cont.) Labor supply forecasts - estimates of how many and what types of employees the organization actually will have evaluate current employees and the available external supply of workers forecasts of a diverse workforce have become fact Reconciling supply and demand labor deficit - hire new employees, promote current employees to new positions, or train other employees to move in from other areas in the organization labor surplus - lay off employees or transfer them to other areas

6 Strategic HRM (cont.) The HR planning process (cont.) Job analysis - a tool for determining what is done on a given job and what should be done on that job 1. job description - tells about the job itself 2. job specification - describes the employee characteristics needed to perform the job provides the information that virtually every HR activity requires

7 Human Resource Management Attracting, developing, and maintaining an effective workforce A critical, bottom-line function!

8 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

9 Forecasting Labor Supply 1. Internal Forecasting: a. Replacement Charts b. Skills Inventories 2. External Forecasting: a. State Employment Commissions b. Government Reports c. College Information

10 Managing a Projected Shortfall 1. Hire new employees 2. Consider hiring temporary workers 3. Retrain and transfer current employees into understaffed areas 4. Convince older workers not to retire The creative solution: Develop and install productivity enhancing systems

11 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? (proficiency level) Cost of staffing? Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

12 Recruiting: Attracting Qualified Candidates to Apply for a Job Internal Recruiting Considering current employees for new positions External Recruiting Attracting outside candidates to apply for jobs What are the strengths and weaknesses of each approach?

13 Staffing The Organization Recruitment the development of a pool of applicants for jobs in the organization 1. Internal recruiting advantages - employers know their employees employees know their organization provides opportunity to move up within the organization drawbacks - yields limited applicant pool can inhibit a company that wants to change job posting - a mechanism for advertising open positions

14 Staffing The Organization (cont.) Recruitment (cont.) 2. External recruiting - brings new blood into the organization a. newspaper advertisements - popular recruiting source that is inexpensive and generates a large number of responses b. employee referrals - some companies offer rewards for referrals c. campus recruiting - large pool of people 1) applicants have up-to-date training 2) source of innovative ideas d. Internet - becoming more common to advertise job openings and to gather applicant information

15 Effectiveness Of Recruitment Sources Unions Public employment agencies Private employment agencies Direct applications Want ads Professional associations Executive search firms College recruiting Employee referrals Scale: 1 = not good, 3 = average, 5 = extremely good

16 Staffing The Organization (cont.) Selection choosing from among qualified applicants to hire 1. Application and résumés - provide basic information to prospective employers tend not to be useful for making final selection decisions 2. Interviews - most popular selection tool questions that are not job related are prohibited unstructured (nondirective) - interviewer asks different interviewees different questions structured - interviewer asks all applicants the same questions situational interview - focuses on hypothetical situations behavioral description interview - explores applicant s past behavior

17 Staffing The Organization (cont.) Selection (cont.) 3. Reference checks - reference information is becoming increasingly difficult to obtain 4. Personality tests -may be difficult to defend in court nonetheless, regaining popularity 5. Drug testing Drug-Free Workplace Act of 1988 genetic testing - identifies the likelihood of contracting a disease 6. Cognitive ability tests - measure intellectual abilities 7. Performance tests - require performing a sample of the job have been developed for almost every occupation

18 Staffing The Organization (cont.) Selection (cont.) 8. Assessment center - managerial performance test in which candidates participate in a variety of exercises and situations taps a number of critical managerial dimensions assessors generally are line managers from the organization 9. Integrity tests - assess a job candidate s honesty polygraphs (lie detector tests) - banned for most employment purposes paper-and-pencil tests - more recent tests of integrity evidence of validity

19 Staffing The Organization (cont.) Selection (cont.) 10.Reliability - the consistency of test scores over time and across alternative measurements 11.Validity criterion-related validity - degree to which a test actually predicts or correlates with job performance reliance on scatterplots to depict the relationship between test scores and job performance content validity - degree to which selection tests measure a representative sample of the knowledge, skills, and abilities required for the job more subjective (less statistical) than criterion-related validity not less important than criterion-related validity

20 Staffing The Organization (cont.) Workforce reductions 1. Layoffs (downsizing) - laying off large numbers of employees as a result of restructuring in the industry victims - lose self-esteem, suffer demoralizing job searches, and are stigmatized by being out of work outplacement - process of helping people who have been dismissed to regain employment elsewhere survivors - suffer disenchantment, distrust, and lethargy a good performance appraisal process helps survivors avoid feeling that they retained their jobs due to arbitrary decision making

21 Staffing The Organization (cont.) Workforce reductions (cont.) 2. Termination - firing an at-will employee if the employee can quit for any reason, employer should be able to fire for any reason courts in most states have made exceptions to this doctrine public policy exceptions progressive discipline - graduated steps used to correct workplace behavior termination interview - stressful situation for all parties used to discuss the company s position with the employee often good to have a third party present conduct the interview in a neutral location

22 Job Analysis: Systematic Review of Jobs Within a Firm Job Description Responsibilities and working conditions, plus tools, materials and equipment to perform the job Job Specification Skills, abilities, and credentials needed to perform the job

23 Processes of Job Analysis 1. Job Analysis: The determination through observation and study, of pertinent information about a job, including specific tasks and necessary abilities, knowledge, and skills 2. 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 3. Job Specification: The written description of the qualifications necessary for a specific job, such as education, experience, personal characteristics, and physical characteristics Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

24 Recruiting New Employees Internal The organization s current employees External Advertisements in newspapers and professional journals Employment agencies Colleges, vocational schools Recommendations from current employees Competing firms Unsolicited applications Online Did You Know? Several years ago, 21% of companies said they recruited online. Experts say it over 80% today. Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

25 The Selection Process JOB Reference Checking Testing Interview Application Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

26 Selecting Human Resources Application Forms Tests Interviews Validity The predictive value of a selection technique

27 Interviewing Tips

28 Top 10 Interview Questions

29 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.

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

31 Developing the Workforce Training On-the-job training Off-the-job training Vestibule training Performance Appraisal Evaluating job performance

32 Developing the Workforce Employee orientation Familiarizes the newly hired employees with fellow workers, company procedures, and the physical properties of the company. Employee training and development On-the-job Classroom Assessing employee performance Performance appraisals Did You Know? Internet-based training is expected to grow to be a $14.5 billion market by Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

33 Developing The Workforce Training and development Training - teaching lower-level employees how to perform their present jobs Developing - teaching managers and professional employees broad skills needed for their present and future jobs Overview of the training process phase one - needs assessment identify the jobs, people, and departments which need training phase two - design the training to meet training goals phase three - decide what training methods to use phase four - evaluate the training s effectiveness

34 Developing The Workforce (cont) Types of training Orientation - training designed to introduce new employees to the company and familiarize them with policies, procedures, culture, and the like benefits may include lower turnover, increased morale, higher productivity, and lower recruiting and training costs Team training - provides employees with the skills and perspectives they need to work in collaboration with others Diversity training - focuses on identifying and reducing hidden biases against people with differences and developing the skills needed to effectively manage a diversified workforce

35 Performance Appraisal Performance appraisal the assessment of an employee s job performance two basic purposes administrative - provides information for making salary, promotion, and layoff decisions developmental - diagnoses training needs and enables career planning What do you appraise? 1. Trait appraisals - subjective judgments about employee performance often leads to personal bias may not be suitable for obtaining useful feedback

36 Performance Appraisal (cont.) What do you appraise? (cont.) 2. Behavioral appraisals - focus on more observable aspects of performance helps ensure that all parties understand what the ratings are really measuring 3. Results appraisals - tend to be more objective focus on production data Management By Objectives (MBO) - subordinate and supervisor agree on specific performance goals develop a plan for attaining the goals identify criteria for determining whether goals have been reached useful when managers want to empower employees may focus on short-term achievement and ignore long-term goals

37 Example Of BARS Used For Evaluating Quality Outstanding Average Poor Uses measures of quality and well-defined processes to achieve project goals. Defines quality from the client s perspective. Look for/identifies ways to continually improve the process. Clearly communicates quality management to others. Develops a plan that defines how the team will participate in quality. Appreciates TQM as an investment. Has measures of quality that define tolerance levels. Views quality as costly. Legislates quality. Focuses her/his concerns only on outputs and deliverables, ignoring the underlying process. Blames others for absence of quality. Gives lip service only to quality concerns.

38 Guidelines For Choosing An Appraisal System Develop a formal appeal process Use more than one rater where possible Attend to legal considerations Appraisal System Use job analysis for performance standards Communicate performance standards Document the process carefully Evaluate on specific behaviors

39 Performance Appraisal (cont.) Who should do the appraisal? 1. managers and supervisors - traditional source of appraisal information 2. peers and team members - best at identifying leadership potential and interpersonal skills 3. subordinates - provide feedback to supervisors 4. internal and external customers internal customers include anyone inside the organization who depends upon an employee s work output 5. self-appraisals - increases worker s involvement in appraisal degree appraisal - uses multiple sources to gain comprehensive perspective of one s performance

40 Performance Appraisal (cont.) How do you give employees feedback? performance feedback is a stressful task for all parties most difficult interviews are with employees who are performing poorly no one best way to perform the appraisal interview follow-up meetings may be necessary

41 Employee Turnover 1. Promotion 2. Transfer 3. Separation a. Resignation b. Retirement c. Termination d. Layoffs Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

42 Compensating the Work Force 1. Time Wages Financial award based on number of hours worked 2. Piece Wages Financial award based on the output attained by the employee 3. Commission Payment to an employee of a fixed amount or a percentage of the employee s sales Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

43 Compensating the Workforce Salary Financial award calculated on a weekly, monthly, or annual basis Bonus An addition to regular compensation for exceptional performance or in appreciation for good work Profit sharing Distribution of percentage of company profit to employees; sometimes distribution is in the form of company stock (ESOP Employee Stock Ownership Program) Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

44 Hourly Wages: U.S. vs. India U.S. Occupation India $12.57 Telephone Operator Under $1.00 $13.17 Medical (Health Record) Technologists/Transcriptionists $ $15.17 Payroll Clerk $ $17.86 Legal Assistant/Paralegal $ $23.35 Accountant $ $ Financial Researcher/Analyst $ Matthew Grimm (2004) Profits vs. Jobs. American Demographics, June 1, accessed August 2, 2004.

45 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%

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

47 Designing Reward Systems Pay decisions effective reward systems attract, motivate, and retain people three types of decisions are crucial pay level - choice of whether to be a high-, average-, or low-paying company pay structure - choice of how to price different jobs within the organization jobs similar in worth are grouped into families individual pay decisions - concern different pay rates for jobs of similar worth within the same family decisions based on: seniority performance

48 Factors Affecting The Wage Mix Internal factors Compensation policy of organization Worth of job Employee s relative worth Wage Mix External factors Conditions of the labor market Area wage rates Cost of living Collective bargaining Employer s ability to pay Legal requirements

49 Wage rates Pay Structure Maximum rate Wage curve Minimum rate Range steps Range Range overlap Midpoint Job worth (total points)

50 Designing Reward Systems (cont.) Incentive systems and variable pay individual incentive plans - most common type consists of an objective standard against which a worker s performance is compared group incentive plans gainsharing - concentrate on saving money profit-sharing - incentives based on unit, department, plant, or company productivity each group has a production standard pay is based on the amount of production over the standard merit pay system - used in the absence of an objective standard bonuses based on supervisor s judgment of employee s merit

51 Designing Reward Systems (cont.) Employee benefits benefits required by law workers compensation - provides financial support to employees suffering from a work-related injury or illness social security - provides financial support to retirees also covers disabled employees unemployment insurance - provides financial support to employees who are laid off for reasons beyond their control benefits not required by law cafeteria benefit plan - employees choose from a menu of options to create a benefit package tailored to their needs flexible benefit plan - employees are given credits to spend on benefits that fit their unique needs

52 Increasing Employee Satisfaction Benefits: % Offering Child care assistance 91 Elder care programs 49 Flexible schedules 73 Adoption benefits 32 Personal/professional growth 78 Financial security programs 41 Group/discounted purchases 39 On-site personal services 57 Casual dress 66 Source: Hewitt Study Shows Work/Life Benefits Continue to Grow Despite Slowing Economy, Hewitt Associates LLC press release, April 23, 2001.

53 Managing Unionized Employees Labor Unions: Employee organizations formed to deal with employers to achieve better pay, hours, and working conditions Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

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

55 Resolving Disputes Labor s Tactics Strikes Picketing Boycott Management s Tactics Lockout Strikebreakers/hiring replacements Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

56 Outside Resolution Conciliation The conciliator s goal is to get both parties to focus on the issues and to prevent negotiations from breaking down Mediation The mediator s role is to suggest or propose a solution to the problem Arbitration The arbitrator s solution is legally binding and enforceable Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

57 Determinants Of Union Voting Behavior Economic needs Wages Hours Job attitudes Job dissatisfaction Unfair supervision Poor communication Union vote: Yes or No Beliefs in union power Wages Power Working conditions Union image Corrupt? Too powerful? Unnecessary given current legislation

58 Labor Relations (cont.) Collective bargaining to reach an agreement, workers may conduct an economic strike arbitration - use of a neutral third party to resolve a labor dispute used to deal with disagreements about interpretation of the contract avoids wildcat strikes in which workers walk off the job in violation of the contract union shop - union security clause specifying that workers must join the union after a set period of time on the job right to work - state legislation that prohibits the negotiation of union shop clauses

59 Workforce Diversity Understanding diversity means recognizing and accepting differences as well as valuing the unique perspectives such differences can bring to the workplace Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

60 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.

61 The Benefits of Workforce Diversity 1. More productive use of a company s human resources 2. Reduced conflict among employees of different backgrounds as they learn to respect each other s differences 3. More productive working relationships 4. Increased commitment to and sharing of organizational goals among diverse employees at all organizational levels 5. Increased innovation and creativity 6. Increased ability to serve the needs of an increasingly diverse customer base Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

62 Satu

63

64 Performance Performance Correlation Scatterplots High Coefficient of correlation =.00 Coefficient of correlation =.75 High Low Low Test score High Low Low Test score High

65 Percentage using Selected Instructional Methods And Media Classroom programs - live Videotapes Internet/WWW Games/Simulations (computer-based) Videoconferencing (to group) Satellite/ Broadcast TV Outdoor experiential programs 0 Overall ,000-2,499 2,500-9,999 10,000 or more Number of employees Videoconferencing (individual desktops)

66 Dua

67 Compensation and Benefits Wages Money paid for time worked Salary Money paid for accomplishing a Incentive specific Programs job Money linked specifically to high performance Bonuses Incentives

68 Benefits: Compensation Other Than Wages and Salaries Optional Benefits Retirement plans Health, life, and disability insurance Vacations and holidays Counseling services Mandatory Benefits Social security Workers compensation

69 Equal Opportunity: Unfair Discrimination Is Illegal Equal Opportunity Laws Protect workers from discrimination based on prejudice Protected Class People with common characteristics as indicated by law EEOC Federal agency that enforces discriminationrelated laws Affirmative Action

70 Contemporary Legal Issues in Human Resource Management Employee safety and health AIDs in the workplace Sexual harassment Quid pro quo Hostile work environment Employment-at-will

71 Managing Knowledge Workers Knowledge workers add value because of what they know. Computer Scientists Physical Scientists Engineers Hiring and retaining knowledge workers is a critical HR challenge

72 Contingent Workers: A Rapidly Growing Trend Management challenges: Careful Planning Understanding Pros and Cons Assessing True Costs Developing a Management Strategy

73 Managing Organized Labor Labor Union People working together to achieve shared job-related goals Labor Relations Managing unionized employees

74 Trends in Organized Labor Union- Management Relations Bargaining Perspectives Future Outlook

75 Contract Issues Compensation Benefits Job Security Other Union Issues Management Rights

76 When Bargaining Fails Union Tactics: Strike Picketing Boycott Work slowdown Management Tactics: Lockouts Strikebreakers

77 Resolving Disputes Mediation Voluntary Arbitration Compulsory Arbitration

78 Dua Thank you

79 Rujukan lain

80 Chapter Twelve Managing Human Resources McGraw-Hill/Irwin Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.

81

82 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

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

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

85 Recruiting New Employees Internal The organization s current employees External Advertisements in newspapers and professional journals Employment agencies Colleges, vocational schools Recommendations from current employees Competing firms Unsolicited applications Online Did You Know? Several years ago, 21% of companies said they recruited online. Experts say it over 80% today. Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

86 The Selection Process JOB Reference Checking Testing Interview Application Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

87 Interviewing Tips

88 Top 10 Interview Questions

89 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.

90 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 programs Outlaws 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. Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

91 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 Act Prevents discrimination against disabled persons Source: Annie Finnigan, Different Strokes, Working Woman, April 2001, p. 42.

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

93 Developing the Workforce Employee orientation Familiarizes the newly hired employees with fellow workers, company procedures, and the physical properties of the company. Employee training and development On-the-job Classroom Assessing employee performance Performance appraisals Did You Know? Internet-based training is expected to grow to be a $14.5 billion market by Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

94 Employee Turnover Promotion Transfer Separation Resignation Retirement Termination Layoffs Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

95 Compensating the Work Force Time Wages Financial award based on number of hours worked Piece Wages Financial award based on the output attained by the employee Commission Payment to an employee of a fixed amount or a percentage of the employee s sales Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

96 Compensating the Workforce Salary Financial award calculated on a weekly, monthly, or annual basis Bonus An addition to regular compensation for exceptional performance or in appreciation for good work Profit sharing Distribution of percentage of company profit to employees; sometimes distribution is in the form of company stock Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

97 Hourly Wages: U.S. vs. India U.S. Occupation India $12.57 Telephone Operator Under $1.00 $13.17 Medical (Health Record) Technologists/Transcriptionists $ $15.17 Payroll Clerk $ $17.86 Legal Assistant/Paralegal $ $23.35 Accountant $ $ Financial Researcher/Analyst $ Matthew Grimm (2004) Profits vs. Jobs. American Demographics, June 1, accessed August 2, 2004.

98 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%

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

100 Increasing Employee Satisfaction Benefits: % Offering Child care assistance 91 Elder care programs 49 Flexible schedules 73 Adoption benefits 32 Personal/professional growth 78 Financial security programs 41 Group/discounted purchases 39 On-site personal services 57 Casual dress 66 Source: Hewitt Study Shows Work/Life Benefits Continue to Grow Despite Slowing Economy, Hewitt Associates LLC press release, April 23, 2001.

101 Managing Unionized Employees Labor Unions: Employee organizations formed to deal with employers to achieve better pay, hours, and working conditions Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

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

103 Resolving Disputes Labor s Tactics Strikes Picketing Boycott Management s Tactics Lockout Strikebreakers/hiring replacements Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

104 Outside Resolution Conciliation The conciliator s goal is to get both parties to focus on the issues and to prevent negotiations from breaking down Mediation The mediator s role is to suggest or propose a solution to the problem Arbitration The arbitrator s solution is legally binding and enforceable Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

105 Workforce Diversity Understanding diversity means recognizing and accepting differences as well as valuing the unique perspectives such differences can bring to the workplace Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

106 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.

107 The Benefits of Workforce Diversity 1. More productive use of a company s human resources 2. Reduced conflict among employees of different backgrounds as they learn to respect each other s differences 3. More productive working relationships 4. Increased commitment to and sharing of organizational goals among diverse employees at all organizational levels 5. Increased innovation and creativity 6. Increased ability to serve the needs of an increasingly diverse customer base Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved

108

109 Bateman Snell Management Competing in the New Era 5th Edition

110 Part Three Chapter 10 - Human Resources Management Chapter Outline Strategic Human Resources Management Staffing the Organization Developing the Workforce Performance Appraisal Designing Reward Systems Labor Relations

111 Learning Objectives After studying Chapter 10, you will know: how companies use human resources management to gain competitive advantage why companies recruit both internally and externally for new hires the various methods available for selecting new employees why companies spend so much on training and development

112 Learning Objectives After studying Chapter 10, you will know: how unions influence human resources management how the legal system influences human resources management

113 Strategic Human Resources Management (HRM) Human Resources Management (HRM) formal systems for the management of people within the organization human resources have a strategic impact create value are rare are difficult to imitate are organized human capital - the knowledge, skills, and abilities of employees that have economic value the emphasis on different HR activities depends

114 Strategic HRM (cont.) The HR planning process a three-stage activity with a strategic purpose derived from the organization s plans planning - determine the organization s plans programming - create specific HR activities evaluating - determine whether HR programs are producing the results needed to contribute to the organization Demand forecasts - determine how many and what type of people are needed derived from organizational plans based on current sales and projected future sales

115 An Overview Of The HR Planning Process Planning Organizational strategic planning Programming Evaluation HRM environmental scanning Human resources planning Human resources activities Results Labor markets Technology Legislation Competition Economy Demand forecast Internal labor supply External labor supply Job analysis Employee recruitment Employee selection Outplacement Training and development Performance appraisal Reward systems Labor relations Productivity Quality Innovation Satisfaction Turnover Absenteeism Health

116 Strategic HRM (cont.) The HR planning process (cont.) Labor supply forecasts - estimates of how many and what types of employees the organization actually will have evaluate current employees and the available external supply of workers forecasts of a diverse workforce have become fact Reconciling supply and demand labor deficit - hire new employees, promote current employees to new positions, or train other employees to move in from other areas in the

117 Strategic HRM (cont.) The HR planning process (cont.) Job analysis - a tool for determining what is done on a given job and what should be done on that job job description - tells about the job itself job specification - describes the employee characteristics needed to perform the job provides the information that virtually every HR activity requires

118 Staffing The Organization Recruitment the development of a pool of applicants for jobs in the organization Internal recruiting advantages - employers know their employees employees know their organization provides opportunity to move up within the organization drawbacks - yields limited applicant pool can inhibit a company that wants to change job posting - a mechanism for advertising open positions

119 Staffing The Organization (cont.) Recruitment (cont.) External recruiting - brings new blood into the organization newspaper advertisements - popular recruiting source that is inexpensive and generates a large number of responses employee referrals - some companies offer rewards for referrals campus recruiting - large pool of people applicants have up-to-date training source of innovative ideas

120 Effectiveness Of Recruitment Sources Unions Public employment agencies Private employment agencies Direct applications Want ads Professional associations Executive search firms College recruiting Employee referrals Scale: 1 = not good, 3 = average, 5 = extremely good

121 Staffing The Organization (cont.) Selection choosing from among qualified applicants to hire Application and résumés - provide basic information to prospective employers tend not to be useful for making final selection decisions Interviews - most popular selection tool questions that are not job related are prohibited unstructured (nondirective) - interviewer asks different interviewees different questions structured - interviewer asks all applicants the same questions

122 Staffing The Organization (cont.) Selection (cont.) Reference checks - reference information is becoming increasingly difficult to obtain Personality tests -may be difficult to defend in court nonetheless, regaining popularity Drug testing Drug-Free Workplace Act of 1988 genetic testing - identifies the likelihood of contracting a disease

123 Staffing The Organization (cont.) Selection (cont.) Assessment center - managerial performance test in which candidates participate in a variety of exercises and situations taps a number of critical managerial dimensions assessors generally are line managers from the organization Integrity tests - assess a job candidate s honesty

124 Staffing The Organization (cont.) Selection (cont.) Reliability - the consistency of test scores over time and across alternative measurements Validity criterion-related validity - degree to which a test actually predicts or correlates with job performance reliance on scatterplots to depict the relationship between test scores and job performance content validity - degree to which selection tests measure a representative sample of the knowledge, skills, and abilities required for the job more subjective (less statistical) than criterion-related validity not less important than criterion-related validity

125 Performance Performance Correlation Scatterplots High Coefficient of correlation =.00 Coefficient of correlation =.75 High Low Low Test score High Low Low Test score High

126 Staffing The Organization (cont.) Workforce reductions Layoffs(downsizing) - laying off large numbers of employees as a result of restructuring in the industry victims - lose self-esteem, suffer demoralizing job searches, and are stigmatized by being out of work outplacement - process of helping people who have been dismissed to regain employment elsewhere survivors - suffer disenchantment, distrust, and

127 Staffing The Organization (cont.) Workforce reductions (cont.) Termination - firing an at-will employee if the employee can quit for any reason, employer should be able to fire for any reason courts in most states have made exceptions to this doctrine public policy exceptions progressive discipline - graduated steps used to correct workplace behavior termination interview - stressful situation for

128 Staffing The Organization (cont.) Legal issues and equal employment opportunity Civil Rights Act of 1964 Title VII forbids discrimination in employment decisions based on race, sex, color, national origin, and religion created the Equal Employment Opportunity Commission (EEOC) - enforces Title VII Civil Rights Act of provides for punitive damages

129 Developing The Workforce Training and development Training - teaching lower-level employees how to perform their present jobs Developing - teaching managers and professional employees broad skills needed for their present and future jobs Overview of the training process phase one - needs assessment identify the jobs, people, and departments which need training phase two - design the training to meet

130 Developing The Workforce (cont) Types of training Orientation - training designed to introduce new employees to the company and familiarize them with policies, procedures, culture, and the like benefits may include lower turnover, increased morale, higher productivity, and lower recruiting and training costs Team training - provides employees with the skills and perspectives they need to work in collaboration with others

131 Percentage using Selected Instructional Methods And Media Classroom programs - live Videotapes Internet/WWW Games/Simulations (computer-based) Videoconferencing (to group) Satellite/ Broadcast TV Outdoor experiential programs 0 Overall ,000-2,499 2,500-9,999 10,000 or more Number of employees Videoconferencing (individual desktops)

132 Performance Appraisal Performance appraisal the assessment of an employee s job performance two basic purposes administrative - provides information for making salary, promotion, and layoff decisions developmental - diagnoses training needs and enables career planning What do you appraise? Trait appraisals - subjective judgments about employee performance often leads to personal bias

133 Performance Appraisal (cont.) What do you appraise? (cont.) Behavioral appraisals - focus on more observable aspects of performance helps ensure that all parties understand what the ratings are really measuring Results appraisals - tend to be more objective focus on production data Management By Objectives (MBO) - subordinate and supervisor agree on specific performance goals develop a plan for attaining the goals identify criteria for determining whether goals have been reached useful when managers want to empower employees

134 Example Of BARS Used For Evaluating Quality Outstanding Average Poor Uses measures of quality and well-defined processes to achieve project goals. Defines quality from the client s perspective. Look for/identifies ways to continually improve the process. Clearly communicates quality management to others. Develops a plan that defines how the team will participate in quality. Appreciates TQM as an investment. Has measures of quality that define tolerance levels. Views quality as costly. Legislates quality. Focuses her/his concerns only on outputs and deliverables, ignoring the underlying process. Blames others for absence of quality. Gives lip service only to quality concerns.

135 Guidelines For Choosing An Appraisal System Develop a formal appeal process Use more than one rater where possible Attend to legal considerations Appraisal System Use job analysis for performance standards Communicate performance standards Document the process carefully Evaluate on specific behaviors

136 Performance Appraisal (cont.) Who should do the appraisal? managers and supervisors - traditional source of appraisal information peers and team members - best at identifying leadership potential and interpersonal skills subordinates - provide feedback to supervisors internal and external customers internal customers include anyone inside the organization who depends upon an employee s work output self-appraisals - increases worker s

137 Performance Appraisal (cont.) How do you give employees feedback? performance feedback is a stressful task for all parties most difficult interviews are with employees who are performing poorly no one best way to perform the appraisal interview follow-up meetings may be necessary

138 Designing Reward Systems Pay decisions effective reward systems attract, motivate, and retain people three types of decisions are crucial pay level - choice of whether to be a high-, average-, or low-paying company pay structure - choice of how to price different jobs within the organization jobs similar in worth are grouped into families individual pay decisions - concern different pay rates for jobs of similar worth within the same family decisions based on: seniority

139 Factors Affecting The Wage Mix Internal factors Compensation policy of organization Worth of job Employee s relative worth Wage Mix External factors Conditions of the labor market Area wage rates Cost of living Collective bargaining Employer s ability to pay Legal requirements

140 Wage rates Pay Structure Maximum rate Wage curve Minimum rate Range steps Range Range overlap Midpoint Job worth (total points)

141 Designing Reward Systems (cont.) Incentive systems and variable pay individual incentive plans - most common type consists of an objective standard against which a worker s performance is compared group incentive plans gainsharing - concentrate on saving money profit-sharing - incentives based on unit, department, plant, or company productivity each group has a production standard pay is based on the amount of production over the

142 Designing Reward Systems (cont.) Employee benefits benefits required by law workers compensation - provides financial support to employees suffering from a work-related injury or illness social security - provides financial support to retirees also covers disabled employees unemployment insurance - provides financial support to employees who are laid off for reasons beyond their control benefits not required by law cafeteria benefit plan - employees choose from a menu of options to create a benefit package tailored

143 Designing Reward Systems (cont.) Legal issues in compensation and benefits Fair Labor Standards Act (FLSA) of set minimum wages, maximum hours, child labor standards, and overtime pay provisions nonexempt employees - entitled to premium pay for overtime exempt employees - not subject to overtime or minimum wage provisions Equal Pay Act (EPA) of prohibits unequal pay for men and women who perform equal work exceptions permitted where pay differential is based

144 Designing Reward Systems (cont.) Health and safety Occupational Safety and Health Act (OSHA) of requires employers to pursue workplace safety employers must maintain records of injuries and deaths caused by workplace accidents employers must submit to work-site inspections

145 Labor Relations Labor relations system of relations between workers and management Labor laws National Labor Relations Act (NLRA) - Wagner Act declared labor organizations legal established five unfair employer labor practices created the National Labor Relations Board conducts certification elections

146 Labor Relations (cont.) Labor laws (cont.) Labor-Management Relations Act - Taft-Hartley Act intended to restore the balance of power between unions and management protected employers free-speech rights defined unfair labor practices by unions permitted workers to decertify unions Labor-Management Reporting and Disclosure Act - Landrum-Griffin Act designed to curb abuses by union leadership and

147 Labor Relations (cont.) Unionization authorization cards - collected by union locals to determine whether workers want to be represented for the purpose of collective bargaining NLRB will conduct certification elections if union has collected cards from 30 percent of the bargaining unit simple majority of those voting required to determine a winner

148 Determinants Of Union Voting Behavior Economic needs Wages Hours Job attitudes Job dissatisfaction Unfair supervision Poor communication Union vote: Yes or No Beliefs in union power Wages Power Working conditions Union image Corrupt? Too powerful? Unnecessary given current legislation

149 Labor Relations (cont.) Collective bargaining to reach an agreement, workers may conduct an economic strike arbitration - use of a neutral third party to resolve a labor dispute used to deal with disagreements about interpretation of the contract avoids wildcat strikes in which workers walk off the job in violation of the contract union shop - union security clause specifying that workers must join the union after a set period of time on the job

150

151 Chapter 8 Managing Human Resources and Labor Relations

152 Whenever you are asked if you can do a job, tell 'em, Certainly, I can! Then get busy and find out how to do it. Theodore Roosevelt

153 Key Topics Human resource management Staffing, developing, and evaluating human resources Compensation packages Legal issues in human resources Changes in the contemporary workplace

154 Human Resource Management Attracting, developing, and maintaining an effective workforce A critical, bottom-line function!

155 Job Analysis: Systematic Review of Jobs Within a Firm Job Description Responsibilities and working conditions, plus tools, materials and equipment to perform the job Job Specification Skills, abilities, and credentials needed to perform the job

156 Forecasting Labor Supply Internal Forecasting: Replacement Charts Skills Inventories External Forecasting: State Employment Commissions Government Reports College Information

157 Managing a Projected Shortfall Hire new employees Consider hiring temporary workers Retrain and transfer current employees into understaffed areas Convince older workers not to retire The creative solution: Develop and install productivity enhancing systems

158 Recruiting: Attracting Qualified Candidates to Apply for a Job Internal Recruiting Considering current employees for new positions External Recruiting What are the strengths and weaknesses of each approach? Attracting outside candidates to apply for jobs

159 Selecting Human Resources Application Forms Tests Interviews Validity The predictive value of a selection technique

160 Developing the Workforce Training On-the-job training Off-the-job training Vestibule training Performance Appraisal Evaluating job performance

161 Compensation and Benefits Wages Money paid for time worked Salary Money paid for accomplishing a Incentive specific Programs job Money linked specifically to high performance Bonuses Incentives

162 Benefits: Compensation Other Than Wages and Salaries Optional Benefits Retirement plans Health, life, and disability insurance Vacations and holidays Counseling services Mandatory Benefits Social security Workers compensation

163 Equal Opportunity: Unfair Discrimination Is Illegal Equal Opportunity Laws Protect workers from discrimination based on prejudice Protected Class People with common characteristics as indicated by law EEOC Federal agency that enforces discriminationrelated laws Affirmative Action

164 Contemporary Legal Issues in Human Resource Management Employee safety and health AIDs in the workplace Sexual harassment Quid pro quo Hostile work environment Employment-at-will

165 Managing Knowledge Workers Knowledge workers add value because of what they know. Computer Scientists Physical Scientists Engineers Hiring and retaining knowledge workers is a critical HR challenge

166 Contingent Workers: A Rapidly Growing Trend Management challenges: Careful Planning Understanding Pros and Cons Assessing True Costs Developing a Management Strategy

167 Managing Organized Labor Labor Union People working together to achieve shared job-related goals Labor Relations Managing unionized employees

168 Trends in Organized Labor Union- Management Relations Bargaining Perspectives Future Outlook