Human Resource Management Chapter 10 Mc GrawHillIrwin Copyright

Human Resource Management Chapter 10 Mc. Graw-Hill/Irwin Copyright © 2011 by the Mc. Graw-Hill Companies, Inc. All rights reserved.

Learning Objectives LO 1 Discuss how companies use human resources management to gain competitive advantage LO 2 Give reasons why companies recruit both internally and externally for new hires LO 3 Identify various methods for selecting new employees LO 4 Evaluate the importance of spending on training and development 10 -2

Learning Objectives (cont. ) LO 5 Explain alternatives for who appraises an employee’s performance LO 6 Describe the fundamental aspects of a reward system LO 7 Summarize how unions and labor laws influence human resources management 10 -3

Human Resource Management Human resources management (HRM) § Formal systems for the management of people within an organization. 10 -4

Strategic Human Resources Management Human capital § The knowledge, skills, and abilities of employees that have economic value. § Value as an asset 10 -5

The HR Planning Process Demand forecasts § determining how many and what type of people are needed. Supply of labor § how many and what types of employees the organization actually will have. § Future leaders § Future managers 10 -6

An Overview of the HR Planning Process Figure 10. 1 10 -7

Ex. 9. 1 Strategic Human Resource Management Company Strategy Attract an Effective Workforce HRM planning Job analysis Forecasting Recruiting Selecting Maintain an Effective Workforce Wage and salary Benefits Labor relations Terminations © 2006 by South-Western, a division of Thomson Learning. All rights reserved. Develop an Effective Workforce Training Development Appraisal 9 -8

The HR Planning Process Job analysis § A tool for determining what is done on a given job and what should be done on that job. 10 -9

Ex. 9. 4 Attracting an Effective Workforce HR Planning Retirements Growth Resignations Choose Recruiting Sources Want ads Headhunters Internet Company Needs Strategic goals Current and future competencies Market changes Employee turnover Corporate culture Company Inducements Pay and benefits Meaningful work Advancement Training Challenge Matching Select the Candidat e Application Interview Model Tests Match with © 2006 by South-Western, a division of Thomson Learning. All rights reserved. Welcome New Employee Contributions Ability Education and experience Creativity Commitment Expertise and knowledge Employee’s Needs Stage of career Personal values Promotional aspirations Outside interest Family concerns 9 -10

Staffing the Organization Recruitment § The development of a pool of applicants for jobs in an organization § Internal, external Selection § Choosing from among qualified applicants to hire into an organization 10 -11

Selection Applications and Résumés Interviews Reference Checks Background Checks Personality Tests Drug Testing Cognitive Ability Tests Performance Tests Integrity Tests 10 -12

Interviewing a Job Applicant Know what you want. Do not ask questions that are not relevant to the job. Prepare a road map. Listen--don’t talk. © 2006 by South-Western, a division of Thomson Learning. All rights reserved. Use openended questions in which the right answer is not obvious. Allow enough time so that the interview will not be rushed. Avoid reliance on your memory. 9 -13

Interviews Structured interview § Selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers. 10 -14

Use of Pre-employment Selection Tools Figure 10. 2 10 -15

Performance Tests Assessment center § A managerial performance test in which candidates participate in a variety of exercises and situations. § Data Dimensions 10 -16

Training “the end in mind” Visualize Needs Orientation, team training, computer, DVD, Mentors, shadowing. Appraisals with methods to overcome deficiencies. 10 -17

Reliability and Validity Reliability § The consistency of test scores over time and across alternative measurements. Validity § The degree to which a selection test predicts or correlates with job performance § Criterion, content 10 -18

Workforce Reductions Outplacement § The process of helping people who have been dismissed from the company regain employment elsewhere. § Cost § Agreement 10 -19

Termination Employment-at-will § The legal concept that an employee may be terminated for any reason. 10 -20

Advice on Termination Table 10. 1 10 -21

Legal Issues and Equal Employment Opportunity Adverse impact § When a seemingly neutral employment practice has a disproportionately negative effect on a protected group. § Competition 10 -22

Performance Appraisal 360 -degree appraisal § Process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance 10 -23

Giving Feedback 1. Summarize the employee’s performance, and be specific. 2. Explain why the employee’s work is important to the organization. 3. Thank the employee for doing the job. 4. Raise any relevant issues, such as areas for improvement. 5. Express confidence in the employee’s future good performance. 10 -24

Factors Affecting the Wage Mix Figure 10. 6 10 -25

Pay Structure Figure 10. 7 10 -26

Employee Benefits Cafeteria benefit program § An employee benefit program in which employees choose from a menu of options to create a benefit package tailored to their needs. § Save 10% Flexible benefit programs § Benefit programs in which employees are given credits to spend on benefits that fit their unique needs. comparable worth 10 -27

Designing the “Right” Package of Benefits Usually Mandatory Social security u Workers’ compensation u Unemployment compensation u Group life insurance u Retirement pensions u Paid vacations u Optional but Frequently Offered Disability insurance u Paid sick leave u Health insurance u Employee assistance program u Paid rest breaks u Tuition assistance u Optional but Less Frequently Offered Wellness programs u Credit unions u Funeral leave u © 2006 by South-Western, a division of Thomson Learning. All rights reserved. Vision-care plans u Parental leave u Retirement counseling u 9 -28 Adapted from Exhibit 10. 10

Labor Relations Labor relations § The system of relations between workers and management. 10 -29

Collective Bargaining Union shop § An organization with a union and a union security clause specifying that workers must join the union after a set period of time. Right-to-work § Legislation that allows employees to work without having to join a union. 10 -30

Determinants of Union Voting Behavior Figure 10. 8 10 -31

Managing Diversity History Laws Cultural Older Women Labor force 10 -32

The Changing Workplace Cultural diversity & employee attitudes Immigrants Many are women People of color Globalization Average worker is older now © 2006 by South-Western, a division of Thomson Learning. All rights reserved. 9 -33

Guidelines for Diversity Training Table 11. 8 11 -34

Sexual Harassment Quid pro quo harassment § Submission to or rejection of sexual conduct is used as a basis for employment decisions Hostile environment § Occurs when unwelcome sexual conduct has the effect of unreasonably interfering with job performance or creating an intimidating or hostile, working environment 11 -35

Basic Components of an Effective Sexual Harassment Policy Table 11. 3 11 -36

Five Proven Stress Busters Take a brief break from a stressful situation and do something small and constructive, like washing your car or getting a hair cut. Get help with a stressful task from a co-worker, boss, or friend. Concentrate intensely on reading, surfing the Internet, a sport, or hobby. Contrary to common sense, concentration is at the heart of stress reduction. Finish anything you have started. Accomplishing almost anything reduces some stress. Find somebody or something that makes you laugh, and have a good laugh. © 2006 by South-Western, a division of Thomson Learning. All rights reserved. 9 -37

Break task down into smaller units Make a commitment to others Post a progress chart in your work area Force yourself to confront an uncomfortable task Techniques to Reduce and Control Procrastination Use subliminal messages © 2006 by South-Western, a division of Thomson Learning. All rights reserved. Reward yourself for achieving milestones Calculate the cost of procrastination 9 -38