human resource management - napa valley college resource management ... what are the main components...

Human Resource Management

© 2012 Pearson Education, Inc. Publishing as Prentice Hall

9-1

ch

ap

ter 9

Better Business

2nd Edition Solomon (Contributing Editor) ·

Poatsy · Martin

Learning Objectives

1. What processes are involved in human resource management (HRM)?

2. How are employees trained and evaluated? 3. What are the main components of compensating

and scheduling employees? 4. How does employee status change through

promotions, termination and, retirement? 5. How does incorporating diversity affect the

workforce? 6. What are the objectives, structures, and future of

labor unions in the global business environment?


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9-3

Staff Planning

Workforce Profile: Personnel inventory

- Age

- Education

- Training

- Experience

- Specialized skills

- Current position

- Previous positions

Forecasting: Based on

- Predicted sales

- Current workforce skills

- Technology changes

- Use of temporary workers

- Turnover

- Retirement

- Planned reassignments


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Planning staffing needs consists of two components: (1) assessing the supply of and the demand for current and future employee resources and (2)

evaluating job requirements

Job Descriptions and

Job Specifications


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Internal Recruiting

• Methods

- Company intranet

- Staff notice boards

- In-house newsletters

- Staff meetings


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Advantages

• Morale booster

• Less risk

• Faster

• Less costly Disadvantages

• Limited pool of candidates

• Creates cascading internal vacancies

• Might miss a “fresh perspective”

External Recruiting


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Recruiting Challenges

• One of the newer challenges is the use of technology

- Online job and resume posting sites

- Web and video blogs

- Virtual job fairs

- Social networking technologies

- Web 2.0 techniques

- Creating enhanced online job postings that stand out

• Sifting through these responses to find the right person for the job can be time-consuming and burdensome

• Finding qualified candidates for critical positions is still a major challenge


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The Hiring Process


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Federal Laws that Impact


• Federal Equal Employment Opportunity

• The Civil Rights Act of 1964

• Americans with Disabilities Act

• Age Discrimination in Employment Act


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Training & Evaluating

Employees

Benefits include: • Increased job satisfaction, motivation, and

morale among employees • Greater efficiency in work, resulting in

financial gain • More effective use of new technologies and

methods • Development of new strategies and products • Lower employee turnover • Fewer interpersonal conflicts and better

communication © 2012 Pearson Education, Inc.

Publishing as Prentice Hall 9-11

Training Methods

• Orientation program

• On-the-job training

• Apprentice training program

• Programmed learning approach

• Simulation/vestibule training

• Online training


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Management Development

Programs: Training Techniques


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Performance Appraisal Process

1. Determine standards that employees should aim for in their work.

2. Evaluate the employee’s performance in comparison with these standards.

3. Provide feedback to reduce and eliminate poor performance and improve or enhance positive performance.


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Problems with

Performance Appraisals

• Managers may shy away from them if they are not comfortable criticizing

• Managers may have difficulty quantifying performance

• The process does not always offer the opportunity to follow up

• With large time spans between appraisals, follow-up items may not occur


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Performance Management


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Compensation Strategies

• Salary

• Wages

• Incentive-based payment

- Commissions

• Bonuses


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Retirement Plans and Other

Financial Incentives

• 401(k) plans

• Pension plans - Defined benefit plans

- Defined contribution plans

• Profit sharing plans

• Stock option plans

• Employee stock purchase plans

• Employee stock ownership plans (ESOPs)


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Employee Benefits

• Benefits are non-cash compensation payment structures

• They can come in many forms: - Health and disability insurance

- Vacation and sick pay

- Retirement plans

• Flexible benefit plans - “Cafeteria plans”

• Work/life benefits


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Alternative Scheduling

Arrangements

• Alternative scheduling plans (flextime)

• Permanent part-time

• Job sharing

• Compressed work week

• Telecommuting


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Contingent Workers

Benefits for the Company

• Allow more flexibility in workforce size

• Can use for absent employees or busy times

• Can provide specific skills for special projects

• Can evaluate temporary workers for full-time positions

Benefits for the Worker

• Flexibility

• Variety

• Learn and improve skills

• Evaluate company for potential permanent employment

• Provide exposure to potential career/industry


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Promotions

From the Employee Perspective

• Employees look to increase their stature, responsibility, and pay through promotion

• Promotion may not always result in a positive situation if it is done with secrecy, unfairness, or arbitrariness

• Two career paths

- Management

- “Individual contributors”

From the Employer Perspective

• Employers like to promote from within when possible

• Management must ensure promotions are based on a distinct set of criteria such as seniority or competency

• Two promotion paths

- Management

- “Individual contributors”

© 2012 Pearson Education, Inc.


Terminating Employees

• Due to corporate downsizing, etc.

- Outplacement services often offered

• Due to poor performance or policy violation

- Employment at will • Exceptions: discrimination, whistle-blowing, worker’s

compensation

- Must have written record of issues leading to dismissal


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Retirement

• Mandatory retirement - Historically, age 65

- Nearly ¾ of workers would like to retire before age 60

- 7 out of 10 of workers plan to keep working past retirement age

• The major contributing factor is financial need

• Worker buyouts - Also called golden parachutes

- Offer financial incentives for older workers to retire


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Managing Workforce Diversity

• Cultural diversity - International expansion - Domestic hiring of international workers

• Religion - Provide for religious observations at work - Strive to avoid potential friction between groups

• Gender - Gender-related issues have improved, but not

gone away

• Age - The benefits and challenges of an aging

workforce © 2012 Pearson Education, Inc.


Impact of Diversity

• View diversity as:

- More than just a response to affirmative action requirements

- A competitive advantage

- Mission-critical to the organization, requiring:

• Training

• Executive accountability

• Grass roots support such

as mentorships


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Labor and Union Issues

• Historically, labor unions were developed to protect workers from horrible working conditions

• Today, unions act as bargaining units to negotiate specific employment issues for groups of workers

- Locals are created for specific industry, company, region, or business sector


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AFL-CIO

• American Federation of Labor (AFL) founded in 1886 to protect skilled workers

• Congress of Industrial Organization (CIO) formed in 1935 to represent entire industries

• Combined in 1955 and has 56 member unions today


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Management/Labor Relations

• Collective bargaining process

• If no agreement is reached: - Mediation

- Arbitration

• If negotiation breaks down: - Management may hire strikebreakers or

lockout union members

- Union members may boycott, strike (and picket), or stage sick-outs


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The State of Labor Unions

• The role of unions is declining in the U.S. because of:

o Their success in improving working conditions.

o Decline in traditional union industries.

• Unions are looking at international coordination to protect their interests


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Chapter Summary

1. What processes are involved in human resource management?

2. How are employees trained and evaluated? 3. What are the main components of compensating

and scheduling employees? 4. How does employee status change through

promotions, termination, and retirement? 5. How does incorporating diversity affect the

workforce? 6. What are the objectives, structures, and future of

labor unions in the global business environment?


9-31


9-32

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