10 chapter business essentials, 7 th edition ebert/griffin human resource management and labor...

10

chapter

Business Essentials, 7th EditionEbert/Griffin

Human Resource Management and Labor Relations

Instructor Lecture PowerPointsPowerPoint Presentation prepared by

Carol Vollmer Pope Alverno College

Homework

Page 119 chapter 8Answer the first 8 questions.One week fro today.We need some to prepare a

presentation in 5-10 minutes.

2

What’s in It for Me?

• Why does effectively managing human resources matter to you?

– By understanding the material in this chapter, you’ll be better able to understand:

1. The importance of properly managing human resources in a unit or business you own or supervise

2. Why and how your employer provides the working arrangements that most directly affect you

© 2009 Pearson Education, Inc.3

The Foundations of Human Resource Management

• Human Resource Management (HRM)– Activities directed at attracting, developing, and

maintaining an effective workforce

• The Strategic Importance of HRM– Human resources has a substantial impact on a

firm’s bottom-line performance

– Many firms are developing strategic HR plans

– Chief officer reports to CEO


Who is responsible for HRD?

Figure 10.1 The HR Planning Process


HR planning process

1.First the HR department will conduct a job analysis.

2.Second, they will forecast a demand for labor.

3.This forecast will address the internal and external supplies of labor.

4.Finally they will develop a plan to match demand with supply.

7

HR Planning

Job Description

Lists the duties and responsibilities of a job; its working conditions; and the tools, materials equipment, and information used to perform it

Job Description

Lists the duties and responsibilities of a job; its working conditions; and the tools, materials equipment, and information used to perform it

Job SpecificationJob Specification

Lists the skills, Lists the skills, abilities, and other abilities, and other credentials and credentials and qualifications qualifications needed to perform needed to perform the job effectivelythe job effectively

Job SpecificationJob Specification

Lists the skills, Lists the skills, abilities, and other abilities, and other credentials and credentials and qualifications qualifications needed to perform needed to perform the job effectivelythe job effectively

• Job AnalysisA systematic analysis of jobs within an organization


discussion

A. Why job description is necessary?

Forecasting Labor Supply

A. Forecasting the internal labor supply means determining the number and type of employees who will be in the firm at some future date.

B. management tools:

Forecasting Labor Supplymanagement tools:1. Replacement charts: List each key

management position, who occupies it, how long that person will likely stay in the job, and who (by name) is qualified as a replacement.

2. Skills inventories: Computerized information systems containing information about each employee’s education, work experience, and career aspirations.

HR Planning (cont’d)• Forecasting HR Demand and Supply

–Forecasting external supply (number/type of people who will be available for hiring from the labor market at large)

1.State employment commissions e.g. job centers.

2.Government reports3.College information regarding

enrollment and graduates in various majors


HR Planning (cont’d)• Matching HR Supply and Demand

–Alleviating Shortfalls by taking the following steps:1. Seeking new hires2. Retraining and transferring present

employees3. Retaining retirees4. Installing more productive systems


Managing a Projected Shortfall how? A. Hire new employees, if people are indeed

available in the external market.B. Retrain and transfer current employees into

understaffed areas, providing a morale boost to strong employees.

C. Consider hiring temporary workers, especially if the shortfall appears short-term or uncertain.

D. Convince older workers not to retire, which usually requires strong financial incentives.

E.E. The creative solution: Develop and install The creative solution: Develop and install productivity enhancing systemsproductivity enhancing systems

HR Planning (cont’d)

• Matching HR Supply and Demand –Managing Overstaffing

1. Transferring extra employees2. Not replacing employees who quit

(attrition)3. Encouraging early retirement4. Laying off personnel


Staffing the Organization• Recruiting

–Attracting qualified persons to apply for the jobs that are open

–Internal Recruiting• Considering present employees as

candidates for openings1. Promotion from within2. Union contracts and job

bidding inside the organization.


Staffing the Organization–External Recruiting

•Attracting people outside of the organization to apply for jobs1. State employment agencies2. Private employment

agencies3. Advertisements


Discussion

Faculty of Commerce is looking to recruit a manager to the faculty. Think in internal and external recruiting.

18

Selecting Human Resources

Tools used.- Application forms; however, make

sure the forms do not ask illegal questions such as one’s age, marital status, etc.- Tests —ability, skills, aptitude /fitness,

knowledge, attitude

19


Tools used.- Interviews — interview people through a committee. validity is increased by:A.Training interviewers to reduce individual biasB.Using a structured interview format with job-related questions to improve consistency, reduce bias, and eliminate illegal questioning of applicants

20


Other techniques that can be used:• Polygraph, or lie detector test. These are

not used that frequently anymore.• Physical exams, but employers must be

aware with Disabilities Act, which forbids denying someone employment based on physical disability alone.

• Drug tests.• Reference checks.

21

Developing the Workforce• Training1. On-the-job training: Working side-by-side as the

employee learns the tasks required of the position.2. Off-the-job training: training them away from their

jobs.3. Vestibule/entrance training: Also called “the

teachable moment,” vestibule training occurs when a supervisor or manager discusses a training issue with an employee while they are walking in the office after encountering a specific situation.


Developing the Workforce (cont’d)

• Performance Appraisal– Defining performance

standards– Observing performance– Writing up the

assessment– Discussing the appraisal

Performance AppraisalEvaluating job performance

Performance AppraisalEvaluating job performance


FIGURE 10.2 Sample Performance Evaluation Form


Compensation and Benefits

•Compensation System–The total package of rewards that a

company offers employees in return for their labor

• Wages —money paid for time worked• Salary —money paid to perform a job


Compensation and Benefits

–Factors affecting compensation1. Competitors’ wage offerings2. Internal wage and salary

structure—includes: job value, performance, and longevity


Example of Salary Structure in PA 1. Basic Salary2. Wife & children3. Supervision4. specialization5. qualification6. Annual increase.

27

Compensation and Benefits (cont’d)

• Incentive programs: are Special pay programs designed to motivate high performance

–Individual incentives:1. Bonuses2. Merit /advantage salary systems: pay

rise linked to performance in non-sales jobs.

3. Pay for performance (variable pay)© 2009 Pearson Education, Inc.

28

Compensation and Benefits (cont’d)•Incentive programs–Company-wide incentives: to all

employees (group incentives)1.Profit-sharing plans 1.Gain sharing plans, which reward groups for

their performance in reducing cost.2.Pay-for-knowledge plans, which encourage

employees to gain new knowledge or skills. E.g, extra payment for certain training hours.



• Benefits Programs: can be mandatory or discretionary.

–Mandatory (required by law)1. Social Security retirement benefits2. Workers’ compensation insurance



–Discretionary (optional)1. Health, life, and disability insurance2. Vacations and holidays3. Employee assistance programs4. Retirement (pension) plans



–Cafeteria benefits plans.

These plans set aside a certain amount of money for benefits for each employee, and those employees choose how they wish to spend those funds


The Legal Context of HRM

• Equal Employment Opportunity Laws

–Protect workers from unfair or inappropriate (non-job-related) discrimination in the workplace, e.g, manager bias to employee’s friend.


The Legal Context of HRM

•Protected Classes in the Workplace

–Individuals sharing common characteristics as defined by law

•Race, color, religion, gender, age, national origin, disability status, and status as a military veteran


The Legal Context of HRM (cont’d)

• Contemporary Legal Issues in HRM –Employee safety and health:

was addressed with Occupational Safety and Health Act of 1970 (OSHA): work place free from hazard.



–Emerging areas of discrimination law include areas:

1. AIDS in the workplace2. Sexual harassment–Hostile work environment (a subtler /indirect form of sexual harassment, such as off-color jokes, but has been expanded to include age, ethnicity and religion as well).



•Contemporary Legal Issues in HRM •Employment-at-willThis concept holds that an

employee or employer can terminate an employment contract at any time for any reason.

•In recent years, increasing numbers of employees have challenged their dismissals, citing wrongful discharge.



• Contemporary Legal Issues in HRM • The Patriot Act–Developed in response to 9/11/2001 –Grants government investigators rights to

what was privileged/ confidential information.

–Bars certain “restricted” individuals (i.e., ex convicts, aliens/ foreign) from working with restricted biological agents


New Challenges in the Changing Workplace• Managing Workforce Diversity– Workforce diversity: includes, The range of

workers’ attitudes, values, beliefs, and behaviors that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics

– Organizations are recognizing that diversity can be a competitive advantage


FIGURE 10.3a Distribution of the Labor Force by Race 1990 – 2050 in USA

FIGURE 10.3b Hispanic Share of Civilian Labor


New Challenges in the Changing Workplace (cont’d)

• Managing Knowledge Workers– Knowledge workers add value because of what

they know, they include:• Computer scientists• Physical scientists• Engineers

Hiring and retaining Hiring and retaining knowledge workers is a knowledge workers is a

critical HR challengecritical HR challenge


Discussion

please give two examples of knowledge workers who might be employed by a large ice-cream manufacturer.

42

New Challenges in the Changing Workplace (cont’d)• Contingent Workers–A person who works for an organization on

something other than a permanent or full-time basis. These can include:

1. Independent contractors2. On-call workers3. Temporary employees, e.g, employing

through agencies.4. Contract and leased employees5. Part-time workers


New Challenges in the Changing Workplace (cont’d)• Managing Contingent and Temporary Workers. Some

of these challenges include:

1. Careful planning for coordinated use of temporary workers

2. Understanding the advantages and disadvantages of contingent workers

3. Assessing the true cost of using contingent workers

4. Developing a strategy for integrating contingent workers into the organization


Dealing with Organized Labor• Labor Union

– A group of individuals working together to achieve shared job-related goals, such as higher pay, shorter working hours, more job security, greater benefits, or better working conditions

• Labor Relations– The process of dealing with employees who are

represented by a union.

• Collective Bargaining– The process by which union leaders and managers

negotiate common terms and conditions of employment for the workers represented by unions


Collective Bargaining

• Collective Bargaining– An ongoing process involving both the drafting

and the administering of the terms of a labor contract.

• Contract Issues, include:– Compensation

• Cost-of-living adjustment (COLA) clauses• Wage reopener clauses/sections

– Benefits– Job security– Management rights


Collective Bargaining (cont’d)• Union Tactics When Bargaining sometimes

Fails. What they use?1. Strike2. Picketing/ protest, e.g., go on the media3. Boycott: Union members will not buy

products from a specific firm.4. Work slowdown e.g., call in sick


Collective Bargaining (cont’d)• Management Tactics When Bargaining Fails

1.Lockouts: Workers are locked out of company facilities.

2.Hiring strikebreakers who cross the picket/ strike lines.


MediationMediation

Voluntary ArbitrationVoluntary Arbitration

Compulsory ArbitrationCompulsory Arbitration

Collective Bargaining (cont’d)

Resolving DisputesResolving Disputes


Resolving DisputesResolving DisputesResolving union disputes includes:1.Mediation, where the parties sit down at

the bargaining table to try to work things out with a mediator or a third party.

2.Arbitration, either voluntary or compulsory, which calls for a third party to judge the situation and make a decision on the appropriate solution.

3.Some arbitration is binding, which means that both sides agree to abide by the arbitrator’s decision as law.

50

Homework

Answer questions 1-5 in page 147

51

10 chapter business essentials, 7 th edition ebert/griffin human resource management and labor...

Documents

job analysis

job specification

job centers

pearson education

strategic hr

hr planning process

hr department

internal labor supply