FERRELL HIRT FERRELL 3 e Mc GrawHillIrwin Copyright

FERRELL | HIRT | FERRELL 3 e Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

PART 4 • CHAPTER 9 Motivating the Workforce • CHAPTER 10 Managing Human Resources 10 -2

HUMAN RESOURCE MANAGEMENT (HRM) All the activities involved in determining the organization's needs for human resources and acquiring, training and compensating people to fill those needs 10 -3

HUMAN RESOURCE MANAGEMENT Increasing in importance Ø Employee Concerns: • Compensation • Job satisfaction • Personal performance • Leisure • Environment • Opportunities for advancement 10 -4

MANAGING THE WORKFORCE DURING SLOW ECONOMIC TIMES § Managers must be aware of employee concerns/needs • Do not ignore/neglect top performers • Even during a recession, high-performers will quit § The most important things a top manager can do: • Transparent and honest communication • Non-monetary rewards; flexibility programs 10 -5

PLANNING FOR HR NEEDS Job Analysis § Systematically determining pertinent information about a job (tasks, abilities, knowledge, skills) Job Description § Formal & written specifications of the job (title, tasks, relationships, skills, duties, responsibilities) Job Specification § Description of the job qualifications (education, experience, personal/physical characteristics) 10 -6

EMPLOYEE RECRUITING Recruiting Ø The formation of a pool of qualified job candidates from which management selects employees § Internal Sources • Current employees • Promotion from within § External Sources • Advertising • Employment agencies • Online • Interns 10 -7

THE BENEFITS OF INTERNSHIPS Benefits of an Internships Source: Creative Group Survey of 125 Advertising Executives and 125 Senior Marketing Executives, “What Is the Greatest Benefit for Students or Graduates in an Internship Program, Aside from Pay? ” USA Today Snapshots 10 -8

ATTRACTING THE RIGHT WORKERS An analytics and software company Ø SAS has the dilemma of sifting through many applicants for a position üHiring managers interview employees to find those who are a good fit for a team Ø SAS focuses on finding quality employees who will be committed to the job Ø High retention rate: üGive employees chances to grow within the company üContinuous training and development üGood benefits packages 10 -9

EMPLOYEE SELECTION Selection § The process of collecting information about applicants and using information to make hiring decisions • Application • Interviewing • Testing • Reference Checking 10 -10

EMPLOYEE SELECTION: THE SELECTION PROCESS Application ü First stage of the selection process • Name, address, telephone • Education, previous work experience, references • Qualifications for the position • Level of interest in the position 10 -11

EMPLOYEE SELECTION: THE INTERVIEW ü The interview is the second phase of selection Ø Detailed information on candidate • Is candidate a good fit for the job? • Attitudes toward job 10 -12

TOP 10 MISTAKES MADE IN INTERVIEWING 1. Not taking the interview seriously 2. Not dressing appropriately (dressing down) 3. Not appropriately discussing experience and education 4. Being too modest about one’s accomplishments 5. Talking too much 6. Too much concern about compensation 7. Speaking negatively of a former employer 8. Not asking enough or appropriate questions 9. Not showing the proper enthusiasm level 10. Not engaging in appropriate follow-up to interview 10 -13

TESTING § Ability and performance testing § Aptitude, IQ, Personality tests § Psychological exams § Illegal drug screening § Applicant assessment § Goodness of “fit” § Myers-Briggs Type Indicator 10 -14

REFERENCE CHECKING üVerify education üPrevious work experience üPrivacy issues 10 -15

LEGAL ISSUES IN RECRUITING AND SELECTING Legal restraints are present at every stage of the recruitment and selection process Ø Title VII of the Civil Rights Act üPervades all areas of HRM üProhibits discrimination in employment üEqual Employment Opportunity Commission (EEOC) üTests must be validated 10 -16

LAWS AFFECTING HRM § Americans with Disabilities Act (ADA) § Age Discrimination in Employment Act § Equal Pay Act 10 -17

DEVELOPING THE WORKFORCE Orientation § Familiarizing new hires with fellow workers, company procedures and the physical properties of the company Training § Teaching employees to do specific job tasks through classroom development or on-the-job experience Development § Training that augments the skills and knowledge of managers and professionals 10 -18

TRAINING § On-the-Job Training • Allows workers to learn through performing the tasks of the job § Classroom Training • Teaches employees through lectures, conferences, DVDs and case studies § Computer E-Learning • Increasingly common 10 -19

ASSESSING PERFORMANCE § Can be a difficult job for managers • Strengths • Weaknesses § Is crucial because it provides employees with feedback • Appraisals may be üObjective or subjective üQuantitative or qualitative • Managers must discuss results with the employee 10 -20

DEVELOPING THE WORKFORCE Turnover § Employees voluntarily leave (quit); involuntary leave (fired); management must replace workers Promotion § Advancement to higher-level job with increased authority, responsibility, and pay Transfer § Move to another job within the company usually at same or similar level and wage rate Separations § Employment changes involving resignation, retirement, termination, or layoff 10 -21

COMPENSATING THE WORKFORCE Developing compensation plans is complex § Employee wages comprise a large portion of organizational expenses Wage/Salary Survey § Study indicating how much compensation comparable firms are paying for specific jobs that firms have in common § Helps in designing fair compensation packages 10 -22

FINANCIAL COMPENSATION Wages Ø Financial rewards based on hours worked and/or level of output achieved § Time Wages • Used when quality is more important than quantity– no incentive to increase production § Piece Wages • Based on level of output achieved. Motivate employees to increase output– little incentive to improve quality § Commission • Incentive system that pays a fixed dollar amount or a percentage of the employee’s sales. Motivates employees to sell as much as possible 10 -23

STATE AND CITY MINIMUM WAGES § Federal minimum is $7. 25/hr; up from $6. 55 in 2008 § Some states and cities pay minimum wages that are higher than the federal one § NY pays $8. 00/hr § Santa Fe, NM pays $9. 92/hr § Colorado was first-ever state to reduce its minimum wage in 2010 from $7. 28 to $7. 24 10 -24

COMPENSATION Salary § Financial reward calculated on weekly, monthly, or annual basis § Associated with white collar employees, executives, professionals Bonuses § Monetary rewards provided by firm for exceptional performance or incentive to increase productivity 10 -25

COMPENSATION Profit Sharing § A percentage of company profits distributed to employees, sometimes in the form of stock Employee Stock Ownership Plan (ESOP) § Company distributes shares to employees as a form of compensation § Gaining in popularity 10 -26

BENEFITS üNon-financial forms of compensation • Pension plans • Insurance (health, disability, life) • Child & elder care • Employee Assistance Programs 10 -27

BENEFITS Traditional Fringe Benefits § Sick leave § Pension plans § Health plans § Extra compensation (Bonuses) 10 -28

BENEFITS Soft Benefits/Perks § Emphasize work-life balance § On-site child care § Spas § Food service § Hair salons 10 -29

FRINGE BENEFITS CREATE HAPPIER EMPLOYEES Mitchell Gold + Bob Williams A high-end furniture company Offers extensive benefits Including on-site daycare Education-based Non-profit Open to the community as well 10 -30

UNIONIZED EMPLOYEES Labor Union § Employee organization formed to deal with employers for achieving better pay, hours and working conditions Collective Bargaining § Negotiation process where management and unions reach agreement on wages, hours and working conditions for the bargaining unit (employees represented by union) 10 -31

UNIONIZED EMPLOYEES ü 12% of workforce ü Unionized workers often earn higher wages ü Concentrated in certain industries § Automotive manufacturing § Steel production § Construction § Public-sector (government) § Sports and acting unions 10 -32

UNIONS United Steelworkers’ Union ü 800, 000 members üInfluences foreign policy and trade § Complained about cheap Chinese tires § Government responded with a 35% tariff • Worth $2 billion annually ØSeeking anti-dumping action against Chinese and Malaysian paper products 10 -33

COLLECTIVE BARGAINING PROCESS 10 -34

LABOR CONTRACT The formal written document that stipulates the relationship between union and management for a specific time period. The outcome of collective bargaining 10 -35

RESOLVING DISPUTES Pickets § Public protests against the actions of the company or management Strike § Employee walkouts; work stoppage. Most effective economic weapon for unions in private sector Boycott § Attempt to keep people from purchasing the company’s products Lockout § Management’s version of the strike. Worksite is closed to prevent employees from working Strikebreakers § Hired by management to continue operations and reduce losses during a strike 10 -36

THIRD-PARTY DISPUTE RESOLUTION Conciliation § 3 rd party intervention so that management & labor continue talks Mediation § 3 rd party helps to bring labor and management together to resolve disputes Arbitration § 3 rd party settles dispute by imposing solution that is legally binding 10 -37

WORKFORCE DIVERSITY INVOLVES The participation of different ages, genders, races, ethnicities, nationalities and abilities in the workplace 10 -38

CHARACTERISTICS OF WORKFORCE 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 The Mc. Graw-Hill Companies. 10 -39

WHY IS DIVERSITY IMPORTANT? § Increasingly diverse workforce reflects increasingly diverse customer base § Diversity brings multiple perspectives to issues and improves problem solving and decision making § Organizations should work to improve their workforce diversity 10 -40

VALUING WORKFORCE DIVERSITY § § More productive use of human resources Reduced conflict among employees More productive working relationships Increased commitment to organizational goals § Increased innovation and creativity § Increased ability to serve the needs of diverse customers 10 -41

AFFIRMATIVE ACTION Legally mandated plans that try to increase job opportunities for minority groups by: ü Analyzing the current pool of workers ü Identifying areas where women and minorities are underrepresented ü Establishing specific hiring and promotion goals to resolve the discrepancy Prohibits organizations from setting hiring quotas that might result in reverse discrimination 10 -42