Introduction to Business

Chapter 11Human Resource Management

Great deal of selection, gourmet foods Knowledgeable employees High wages/salaries/full benefits Empowered employees High labor costs, but low turnover

Pre-Chapter Case- Wegman’s Grocery

Determining human resources needs, then recruiting, selection, developing, motivating, compensating, and scheduling employees

Important because qualified people are more scarce today

Requires a great deal of communication, because responsibilities are shared across departments now

HR Management

1. Growing elderly population

2. Retraining of potentially great manufacturing workers

3. Shortages of high-tech workers

4. Emphasis on family

HR Planning – Major Issues

1. Prepare a list of current employees◦ Ages, names, skills, training, other qualifications

2. Prepare a job analysis report◦ Analyses, descriptions, specifications

3. Predict future needs

4. Predict future supply shifts

5. Create a plan

Steps of HR Planning

Internal employees; referrals from employees

Colleges, placement offices and agencies, other organizations

If small, try PEO (professional employer organization) to help offer benefits and make yourself more attractive

How to Find Great People

Encourage appropriate application process

Create a meaningful interview

Do background checks as appropriate

Perhaps incorporate a trial period

How to Select Great People

Training actually boosts morale and performance

Assess your training needs and design a program around them◦ On-the-job training? Simulation? Computerized

training?

Evaluate how well your training is paying off

Mentorships help new employees feel a part of the company quickly (when done right)

How To Train Great People

Set standards and COMMUNICATE them

Measure and compare how well they did

Discuss the evaluation with the employee

MAKE SURE that only exceptional performance gets rewarded!

Evaluating Great People

Important for attracting recruits Equity theory!!!

Types of compensation◦ Salary, Hourly, Piecework, Commission, Bonus, Profit-

sharing, Stock options

Team-based compensation

Benefits◦ Traditional◦ New benefits (daycare, meals, errand-running)

Compensating Great People

Civil Rights Act of 1964◦ Cannot discriminate based on race, religion,

creed, sex, national origin, or (now) age

Equal Employment Opportunity Act◦ Affirmative Action

Increasing opportunities for minorities and women Does this cause a reverse discrimination situation? University of Michigan case (no quotas, but

consideration of race acceptable)

Human Resource Management Legal Issues