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Managing Human Resources
and Labor Relations
CH
AP
TE
R 8
The Future of BusinessThe Essentials 4th EditionGitman & McDaniel
Prepared byDeborah Baker
Chapter 8Copyright ©2009 by South-Western, a division of Cengage Learning. All rights reserved
© B
anan
aSto
ck/ J
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2
Learning Goals
CH
AP
TE
R 81 What is the human resource management
process, and how are human resource needs determined?
2 How do firms recruit applicants?
3 How do firms select qualified applicants?
4 What types of training and development do organizations offer their employees?
3
Learning Goals (continued)
CH
AP
TE
R 85 How are performance appraisals used to evaluate
employee performance?
6 What are the types of compensation and methods for paying workers?
7 What is a labor union and how is it organized?
8 What is collective bargaining, and what are some of the key negotiation issues?
4
Learning Goals (continued)
CH
AP
TE
R 89 How are grievances between management and
labor resolved, and what tactics are used to force a contract settlement?
10 What are the key laws and federal agencies affecting human resource management and labor relations?
11 What trends and issues are affecting human resource management and labor relations?
51
What is the human resource management process, and how are human resource needs determined?
1
Human Resource Management
6
human resource management
The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals.
1
Human Resource Management
7Exhibit 8.1
Compensation and benefits
Compensation and benefits
Performance planning and evaluation
Performance planning and evaluation
Training and development
Training and development
Strategies, goals, and market position
Strategies, goals, and market position
Job analysis and design/HR planning and forecasting
Employeerecruitment
Employeeselection
Retention/turnover
Retention/turnover
HR outcomes
HR outcomes
1
Human Resource Management Process
8
human resources planning
Creating a strategy for meeting future human resource needs.
• the right number of people,• with the right training, • in the right jobs, • to meet goals
1
Human Resources Planning
9
Job Analysis and Design
1
101
Human Resource Planning and Forecasting
Estimate the number of peoplecurrently employed who will be available to fill jobs at some future time
Estimate the number of peoplecurrently employed who will be available to fill jobs at some future time
Determine the number of people needed by some future timeDetermine the number of people needed by some future time
The HRDemandForecast
The HRDemandForecast
11
CONCEPT check
1
Define human resource management.
Distinguish between job analysis, job description, and the job specification.
Describe the human resource management process.
122
How do firms recruit applicants? 2
Employee Recruitment
13
ExternalLabor MarketExternalLabor Market
Internal Labor MarketInternal Labor Market
Employee Recruitment
2
14
recruitment branding
Employee Recruitment
2
Presenting an accurate and positive image of the firm to those being recruited by including current information about the firm in printed recruitment materials and Web-based job announcements.
15
CONCEPT check
What are the two sources of job applicants?
What are some methods firms use to recruit applicants?
What is meant by recruitment branding?
2
163
How do firms select qualified applicants?3
Employee Selection
17
selection
Employee Selection
Presenting an accurate and positive image of the firm to those being recruited by including current information about the firm in printed recruitment materials and Web-based job announcements.
3
18
Employee Selection Process
Exhibit 8.43
1. Initial screening: application and interview1. Initial screening: application and interview
2. Employment testing2. Employment testing
3. Selection interview3. Selection interview
4. Background and reference checks4. Background and reference checks
5. Physical exams and drug testing5. Physical exams and drug testing
6. Decision to hire6. Decision to hire
19
CONCEPT check
Describe the employee selection process.
What are some of the ways that prospective employees are tested?
3
204
What types of training and development do organizations offer their employees?
4
Employee Training and Development
21
training and development
Activities that provide learning situations in which an employee acquires additional knowledge or skills to increase job performance.
Training is done:• on-the-job• off-the-job
Employee Training and Development
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4
22
Employee Training and Development Process
Training Needs
Assessment
Training Needs
Assessment
Feedback for Training Improvement
TrainingObjective
TrainingObjective
Design Training Program
Design Training Program
Conduct Training Program
Conduct Training Program
Training Program
Evaluation
Training Program
Evaluation
4 Exhibit 8.6
23
orientation
Presentation to get the new employee ready to perform his or her job.
On-the-Job Training
4
244
On-the-Job Training
254
Off-the-Job Training
Classroom training
e-learning and e-training
Programmed instruction
Simulation
26
CONCEPT check
Describe several types of on-the-job training.
What are the advantages of simulation training?
How is technology impacting off-the-job training?
4
275
How are performance appraisals used to evaluate employee performance?
5
Performance Planning and Evaluation
28
performance appraisal
A comparison of actual performance with expected performance to assess an employee’s contributions to the organization.
Performance Planning and Evaluation
5
29
Performance Planning and Appraisal Process
Employee jobtask behavior
Employee jobtask behavior
Performance Planning:Setting standardsand expectations
Performance Planning:Setting standardsand expectations
Performanceevaluation
Performanceevaluation
Rewards andjob changes
Rewards andjob changes
Performance Feedback
Exhibit 8.75
30
CONCEPT check
What are the steps in the performance planning and appraisal process?
What purposes do performance appraisals serve?
Describe some sources of information for the performance appraisal.
5
316
What are the types of compensation and methods for paying workers?
6
Employee Compensation and Benefits
32
Types of Compensation or Pay
6
33
unemployment compensation
Government payment to unemployed former workers.
worker’s compensation
Pay for lost work time due to employment-related injuries.
Types of Indirect Pay
6
34
Paid time off
Insurance
Pensions and retirement savings accounts
Stock purchase options
Other Benefits
6
35
cafeteria-style benefit plan
Employees are allowed to mix and match benefit items or select items based on individual needs.
Employee Benefits
6
36
CONCEPT check
How does a firm establish a pay scale for its employees?
What is the difference between direct and indirect pay?
Explain the concept of a cafeteria-style benefit plan.
6
377
What is a labor union and how is it organized?7
The Labor Relations Process
38
labor union
An organization that represents workers in dealing with management over disputes involving wages, hours, and working conditions.
collective bargaining
Negotiating a labor agreement.
Labor Unions
7
39
Labor Relations Process
7
40
Benefits Stressed by Unions
7
Almost alwaysAlmost always
Grievance procedures
Job security Improved benefits Higher pay
OftenOften SeldomSeldom
More influence in decision making
Better working conditions
Lobbying opportunities
Increased production
Higher-quality products
Technical training More job
satisfaction
Exhibit 8.9
41
Employer Arguments Against Unionization
7 Exhibit 8.9
An employee can always come directly to management with a problem.
As a union member, you will pay monthly union dues of $15 to $30.
Merit-based decisions are better than seniority-based.
Pay and benefits are similar to the leading firms in the industry.
We meet all health and safety standards of OSHA.
Performance and productivity are more important than union representation in determining pay raises.
42
Union Organizing Process and Election
4. NLRB determination of bargaining unit4. NLRB determination of bargaining unit
3. Petition for certification election3. Petition for certification election
2. Authorization card campaign2. Authorization card campaign
1. Union contact with employees1. Union contact with employees
6. Election6. Election
5. Employer and union preelection campaigns5. Employer and union preelection campaigns
7a. Certification of union and start of collective bargaining
7a. Certification of union and start of collective bargaining 7b. Rejection of union7b. Rejection of union
7 Exhibit 8.10
438
What is collective bargaining, and what are some of the key negotiation issues?
8
Collective Bargaining
44
Negotiating Labor Agreements
8
© ERIC ESPADA / CSM / Landov
45
Union Security
8
union shopNonunion workers can be hired, but they must join the union.
agency shopDoes not require workers to join the union.
open shopWorkers can work at a unionized company without having to join the union (right-to-work law).
46
Management Rights
8
management rights clause
A clause in the labor agreement that gives the employer all rights to manage the business except as specified in the contract.
This list might secure management’s right to:• Schedule work hours• Hire and fire workers• Set production standards• Determine the number of supervisors• Promote, demote, and transfer workers
47
Wages and Benefits
Higher wages for overtime, holiday work, and less desirable shifts
Insurance programs
Payment for certain nonwork time
Pensions
Income-maintenance plans
Supplementary unemployment benefits
Unemployment compensation
8
48
Job Security and Seniority
8
job security
The assurance, to some degree, that workers will keep their jobs. Depends primarily on the continued success and financial well-being of the company.
seniorityThe length of an employee’s continuous service with a firm.
49
CONCEPT check
Discuss the modern labor movement.
What are the various topics that may be covered during collective bargaining?
Explain the differences among a union shop, agency shop, and an open shop.
8
509
How are grievances between management and labor resolved, and what tactics are used to force a contract settlement?
9
Managing Grievances and Conflicts
51
grievance
A formal complaint, filed by the employee or by the union, charging that management has violated the contract.
arbitration
The process of settling a labor-management dispute by having a third party make a decision, which is binding on both the union and the employer.
Managing Grievances and Conflicts
9
52
CONCEPT check
Describe the grievance procedure.
In what ways do arbitrators act like judges?
What are some tactics for pressuring for a contract settlement?
9
5310
What are the key laws and federal agencies affecting human resource management and labor relations?
10
Legal Environment of HR and Labor Relations
54
Wagner and Taft-Hartley Acts
Employees have the right to unionize and bargain collectively
Employers must deal with the union fairly, bargain in good faith, and not discriminate against employees who belong to a union
Unions must represent all employees covered by a labor agreement and deal with the employer in good faith
10
55
Functions of the EEOC
10
Processing discrimination complaintsProcessing discrimination complaints
Issuing written regulationsIssuing written regulations
Information gathering and disseminationInformation gathering and dissemination
56
Affirmative Action
protected classes
The specific groups who have legal protection against employment discrimination. Includes women, African Americans, Hispanic Americans, Native Americans, and others.
affirmative action programs
Programs established by organizations to expand job opportunities for women and minorities.
10
57
Specialist that facilitates labor-management contractdiscussions and suggestscompromises.
Specialist that facilitates labor-management contractdiscussions and suggestscompromises.
MediatorMediator
Specialist in labor-management negotiations that acts as a go-between for management and the unions and helps focus on the problems.
Specialist in labor-management negotiations that acts as a go-between for management and the unions and helps focus on the problems.
ConciliatorConciliator
Federal Mediation and Conciliation Service
10
58
CONCEPT check
Discuss the laws that govern wages, pensions, and employee compensation.
Describe the Americans with Disabilities Act.
How do the Wagner and Taft-Hartley Acts impact labor-management relations?
10
5911
What trends and issues are affecting humanresource management and labor relations?
11
Trends in HR Management and Labor Relations
6011
Trends in HR Management and Labor Relations
61
Competitive Advantage
competitive advantage
A set of unique features of an organization that are perceived by customers and potential customers as significant and superior to the competition.
11
62
Service Workers in 2012
Job Projected Growth
Cashier 13%
Customer Service 24%
Food preparation 23%
Janitorial 18%
Nursing aide 25%
11
63
CONCEPT check
How can employee diversity give a company a competitive advantage?
Explain the concept of hiring for fit.
Why does the service industry provide an opportunity for labor union growth?
11
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