11-1 mcgraw-hill/irwin understanding business, 7/e © 2005 the mcgraw-hill companies, inc., all...
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11-1
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Nickels Nickels
McHughMcHugh
McHughMcHugh
Nickels Cover
Nickels Nickels
McHughMcHugh
McHughMcHugh
11-2
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Chapter
11111111Human Human
Resource Resource Management:Management:Finding and Finding and Keeping the Keeping the
Best EmployeesBest Employees
11-2
11-3
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Executives’ Toughest Executives’ Toughest HRM IssuesHRM Issues
0% 20% 40% 60% 80% 100%
Health Ins.
Ret. Plan
Life Ins.
Disability Ins.
Flextime
Telecommuting
Tuition
Job Share
Sabbaticals
Child Care
Source: Business2.com, June 12, 2001
11-4
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
HR ChallengeHR Challenge ShortagesShortages Unskilled WorkersUnskilled Workers Undereducated Undereducated
WorkersWorkers Shift in Workforce Shift in Workforce
CompositionComposition Laws & RegulationsLaws & Regulations Single-Parent & Single-Parent &
Two-Income Two-Income FamiliesFamilies
Attitudes Toward Attitudes Toward WorkWork
Continued Continued DownsizingDownsizing
Overseas Labor Overseas Labor PoolsPools
Customized Customized BenefitsBenefits
Employees With Employees With New ConcernsNew Concerns
Decreased LoyaltyDecreased Loyalty
11-5
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Determining HR NeedsDetermining HR Needs1)1) Prepare HR Prepare HR
InventoryInventory
2)2) Prepare Job Prepare Job AnalysisAnalysis DescriptionDescription SpecificationSpecification
3)3) Assess Assess DemandDemand
4)4) Assess Assess SupplySupply
5)5) Establish Establish Strategic PlanStrategic Plan
11-6
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Hiring ProcessHiring Process
RecruitRecruitSelectSelect
Application FormApplication FormInterviewInterviewTestTestInvestigateInvestigateExamineExamineProbationProbation
Train/DevelopTrain/DevelopOrientationOrientationOJTOJTApprenticeshipApprenticeshipOff-The-Job TrainingOff-The-Job TrainingOnline TrainingOnline TrainingVestibule TrainingVestibule TrainingJob SimulationJob Simulation
11-7
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
How Workers Found Last JobHow Workers Found Last Job
63%16%
2%
4%5%
9%
1%Networking/Word-of-Mouth
Newspaper Ad
Walk-In or Applied InPerson
Newspaper Web Site
Internet Job Site
Emp. Agency orRecruiter
Through School
Source: USA Today “Snapshots”
11-8
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
What Attracts EmployeesWhat Attracts Employeesto Specific Employers?to Specific Employers?
70% 72% 74% 76% 78% 80% 82%
Promises Long-TermEmployment
SupportsTraining/ Education
Hires/ Keeps Hard-Working People
Encourages CollegialWorkplace/ Creativity
% Employees That % Employees That AgreeAgree
11-9
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Interviewing MistakesInterviewing Mistakes3%5%
18%
25%49%
Little/No Knowledgeof Company
Unprepared toDiscuss Career Plans
Limited Enthusiasm
No Eye Contact
Unprepared toDiscussSkills/Experience
Source: USA Today “Snapshots”
11-10
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
What Not to Ask What Not to Ask In Job InterviewsIn Job Interviews
What is your date of What is your date of birth?birth?
Have you ever filed a Have you ever filed a worker’s comp. claim?worker’s comp. claim?
Sometimes we will Sometimes we will need the person we need the person we hire to work late hours. hire to work late hours. Will this cause Will this cause problems with your problems with your childcare?childcare?
What is your native What is your native language?language?
What is your place of What is your place of birth?birth?
Do you own a home?Do you own a home?
I see you use a walker. I see you use a walker. If we were to hire you, If we were to hire you, what accommodations what accommodations would you require?would you require?
11-11
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Why Companies Use Why Companies Use Temporary WorkersTemporary Workers
Provide flexibility to meet Provide flexibility to meet demand fluctuationsdemand fluctuations
Acquire specific expertiseAcquire specific expertiseFill-in for absentee workersFill-in for absentee workersScreen candidates for future Screen candidates for future
employmentemploymentControl increasing benefit costControl increasing benefit costOffset effects of downsizingOffset effects of downsizing
11-12
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Training & DevelopmentTraining & Development
Assess NeedsAssess Needs
Design TrainingDesign Training
Evaluate EffectivenessEvaluate Effectiveness
11-13
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Training MethodsTraining Methods
1)1) OrientationOrientation
2)2) On-The-JobOn-The-Job
3)3) ApprenticeshipApprenticeship
4)4) Off-The-JobOff-The-Job
5)5) OnlineOnline
6)6) VestibuleVestibule
7)7) Job SimulationJob Simulation
11-14
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Management DevelopmentManagement Development
• On-The-Job CoachingOn-The-Job Coaching
• UnderstudyUnderstudy
• Job RotationJob Rotation
• Off-The-Job Courses Off-The-Job Courses & Training& Training
• Network- MentorNetwork- Mentor
• DiversityDiversity
11-15
McGraw-Hill/IrwinUnderstanding Business, 7/e
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Major Uses of Major Uses of Performance AppraisalsPerformance Appraisals
Identify training Identify training needsneeds
Use as a Use as a promotion toolpromotion tool
Recognize Recognize workers’ workers’ achievementsachievements
Evaluate hiring Evaluate hiring processprocess
Judge Judge effectiveness of effectiveness of orientation orientation processprocess
Use as a basis Use as a basis for terminating for terminating workersworkers
11-16
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Performance AppraisalPerformance Appraisal1.1. Establish Establish
StandardsStandards
2.2. Communicate Communicate StandardsStandards
3.3. Evaluate Evaluate PerformancePerformance
4.4. Discuss ResultsDiscuss Results
5.5. Take Corrective Take Corrective
ActionAction
6.6. Use Results to Use Results to
Make DecisionsMake Decisions
11-17
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Payroll Dollar ExpensePayroll Dollar Expense1%
8%
8%
11%
11%61%
Wages
Medical Benefits
Vacations
Payroll Taxes
Retirement/Savings
Other
Source: CFO, March 2003
11-18
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Comparing HR ApproachesComparing HR ApproachesOld HR ApproachOld HR Approach
• Pay based on salary grades Pay based on salary grades & hourly rates& hourly rates
• Bonuses tied to unit & Bonuses tied to unit & company performancecompany performance
• Benefits standard Benefits standard throughout organization.throughout organization.
• Mgmt. strategy modeled on Mgmt. strategy modeled on best practices at high-best practices at high-performing companies.performing companies.
• Career structures Career structures predeterminedpredetermined
New HR ApproachNew HR Approach
• Pay based on achieving Pay based on achieving goalsgoals
• Bonuses tied to individual Bonuses tied to individual performanceperformance
• Benefits tailored to Benefits tailored to employee groupsemployee groups
• Strategy based on internal Strategy based on internal analysis of employeesanalysis of employees
• Career structures sculpted Career structures sculpted to individualsto individuals
Source: BusinessWeek, December 16, 2002
11-19
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
What MakesWhat Makes Employees StayEmployees StayBetter
Training5%
Raise43%
Improved Benefits
23%
Flexible Work
Schedule14%
Stock Options
9%
Other6%
Source: Source: BridgeGate, Irvine, CA & Market Facts Inc., Arlington Heights, IL
11-20
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Compensation &Compensation &Benefits ObjectivesBenefits Objectives
AttractAttract
IncentiveIncentive
RetainRetain
MaintainMaintain
SecuritySecurity
11-21
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Employee RetentionEmployee Retention CompensationCompensation
- IndividualIndividual
- TeamTeam
Fringe BenefitsFringe Benefits
Job-SharingJob-Sharing
FlextimeFlextime- Core TimeCore Time
- Compressed Compressed WorkweekWorkweek
Home-Based & Home-Based & Mobile WorkMobile Work
11-22
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Incentives Offered Incentives Offered to Retain Top Talentto Retain Top Talent
0% 20% 40% 60% 80% 100%
Performance Bonus
Recognition Program
Tuition Reimb.
Parking/Fitness Subsidies
Day Care Assist.
Survey of Executives That Offer:Survey of Executives That Offer:
Source: USA Today “Snapshots”
11-23
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Most Common Most Common Fringe Benefits OfferedFringe Benefits Offered
0% 20% 40% 60% 80% 100%
Employee Request
Support Corporate Image
Part of Work/ Family Initiative
Recruiting Advantage
Support Workforce Diversity
Increase Productivity
Prevent Turnover
Source: INC 500 Almanac
11-24
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Unusual Benefits Unusual Benefits Offered to WorkersOffered to Workers
SteelcaseSteelcase-- 1,200 acre camping and 1,200 acre camping and recreational arearecreational area
SYNOVUSSYNOVUS- $50 bonus to take physical - $50 bonus to take physical exam, $200 reward if vital signs are OKexam, $200 reward if vital signs are OK
Los Angeles DodgersLos Angeles Dodgers-- free ice cream for free ice cream for staff if team is in first placestaff if team is in first place
XEROXXEROX-- Life Cycle Account or $1,000 to Life Cycle Account or $1,000 to help employees with major thresholds help employees with major thresholds (buying home, college)(buying home, college)
11-25
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Number of Hours Number of Hours Americans Work Per WeekAmericans Work Per Week
1-29 Hours10%51+ Hours
18%
46-50 Hours16%
41-45 Hours12%
30-39 Hours10%
40 Hours34%
Source: Source: USA Today
11-26
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Reasons for Reasons for Using FlextimeUsing Flextime
0%5%
10%15%20%25%30%35%40%45%
MinoritiesAt All
Levels ofCompany
MinoritiesAt Senior
Levels
Corp.Culture
EnbracesDiversity
PromotionRate of
Minorities
11-27
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Employee MovementEmployee Movemento Promotion/ReassignmentPromotion/Reassignment
o TerminationTermination
o RetirementRetirement
o ResignationResignation
11-28
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
HR & Legal IssuesHR & Legal Issues• Civil Rights Act Civil Rights Act
(1964)(1964)
• Age Discrimination Age Discrimination Act (1967)Act (1967)
• Equal Employment Equal Employment Opportunity Act Opportunity Act (1972)(1972)– Affirmative ActionAffirmative Action
– Reverse Reverse DiscriminationDiscrimination
• Civil Rights Act Civil Rights Act (1991)(1991)
• Americans with Americans with Disabilities Act Disabilities Act (1990)(1990)
• Family Medical Family Medical Leave Act (1993)Leave Act (1993)
11-29
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
Implementing EEOC Implementing EEOC Which statements are T/F?Which statements are T/F?
It’s OK to ask any applicant whether It’s OK to ask any applicant whether he or she has an automobile.he or she has an automobile.
It appropriate to ask applicants to It appropriate to ask applicants to attach photographs.attach photographs.
During interviews, it’s appropriate to During interviews, it’s appropriate to ask an applicant his/her age.ask an applicant his/her age.
It’s appropriate to ask if an applicant It’s appropriate to ask if an applicant is a naturalized citizen.is a naturalized citizen.
It’s not appropriate to ask an applicant It’s not appropriate to ask an applicant about post work experience.about post work experience.
11-30
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
You may ask an applicant to indicate what You may ask an applicant to indicate what foreign languages he/she can read, write or foreign languages he/she can read, write or speak fluently.speak fluently.
It’s appropriate to ask an applicant if he/she It’s appropriate to ask an applicant if he/she has an arrest record.has an arrest record.
It’s OK to ask whether the applicant is It’s OK to ask whether the applicant is physically able to lift heavy weights.physically able to lift heavy weights.
It’s appropriate to ask women questions It’s appropriate to ask women questions about childcare arrangements.about childcare arrangements.
You have the right to ask an applicant for You have the right to ask an applicant for names of work-related and personal names of work-related and personal references.references.
Implementing EEOC Implementing EEOC (Cont’d)(Cont’d)
Which statements are T/F?Which statements are T/F?
11-31
McGraw-Hill/IrwinUnderstanding Business, 7/e
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
What Makes a What Makes a Company Truly Diverse?Company Truly Diverse?
0%5%
10%15%20%25%30%35%40%45%
MinoritiesAt All
Levels ofCompany
MinoritiesAt Senior
Levels
Corp.Culture
EnbracesDiversity
PromotionRate of
Minorities
Source: USA Today, “Snapshots” (Based on a telephone survey of 1,022 Americans)