Business Policy & Strategy
Chapter 11
Human Resources
Murdick, Moor, Babson & Tomlinson
Sixth Edition, 2000
Functional Area – Human
Resources
Changing Environment
Human Resource Manager (HRM)
Identifying Problem Areas
Relating People with Problems
Checklist for Analysis
Most problems in businesses
are people problems
That’s why HR is so important.
But it is not what it used to be!
Changing Environment
Workforce


75% Services
50% Women by
2005
Social Factors


Better Educated
Low Tolerance
Social Changes




Drug abuse
Alcoholism
Aging workforce
Sexual harassment
(Beer company lost
suit awarding $24
Million dollars!)
Conditional Employment
Labor Management Relations
15% Manufacturing is unionized
 Less Unionizing in recent elections but
some increase in the services area

Legal
2-3 Lawyers per 100 People
 Law Suits too Costly

Conditions of Employment
Productivity

Workers Control

Reward System
Computer Impacts

High Volume Record keeping

Higher Technology/Higher Education

Able to search by key words/skills
Conditions of Employment
Health and Safety (OSHA)
Job security – seniority versus merit
Flex time, Changing work week
Part-time employment
Health, Safety & Security
Health

Employee assistance programs, health
policies, stress management, smoking
policies, preventative screenings,
Safety

Accidents, inspections (OSHA 100 report)
Security

Controls, theft, fraud, investigations
Human Resource Manager
What are they concerned with?

Proposing concepts, means, and policies for
increasing productivity as part of company
strategy.

Keeping line managers abreast of the legal
environment as it pertains to managing
people.
Human Resource Manager
What are they concerned with?

Decision making related to managing
personnel, keeping records, and preparing
reports related to human resource
management.
HRM Functional Activities
Planning for Human Resource Needs
Work Design and Job Analysis
Recruitment of Candidates
Organization Development
Selection Criteria
Academic Tests
Motivation Tests
 Personal
Values
 Self-Motivation
 Career Performance
 Life Purpose
Selection Criteria
Tests to Ensure Applicants can perform
the essential duties of the job. For
example, fast food restaurants may
require applicants to lift 50# bags as
many of the material (frozen French
fries) are very heavy.
Job tests must be proven to be linked to
performance to be legally used
Recruitment
Types of recruitment programs:

Continuous or intermittent
From within or outside
EEO and Affirmative Action Policies
Identified sources of candidates
Adequate job specifications
Cost-effective
Work Design & Job Analysis
Clearly defined job qualifications
Claims of discrimination
“Comparable Worth”
Compensation and appraisal
Staffing
Affirmative action and EEO
Recruitment
Selection
Career planning & development
Organizational exit (interviews)
HRM Functional Activities
Developing Communications




Formal mass communications system
Informal communications
Person to person system
Up and down the organization
Individual Training and Development

Inexperienced


Entry level or Recent graduates
Trained

Interns Outside the company
Career Management
Approaches
Nothing
 “Ask” Basis
 Promote

Different Policies
Hire young and train? Hire experience?
 High Turnover (soft costs)
 Low Payroll (hard costs)

HRM Functional Activities
Appraising Performance

360 degree

Monthly (informal) & semi-annual (formal)
Compensation and Benefits
Wage Rates
 Minimum Wage entry level or Above Minimum
Compensation Comparison to Industry
 Higher
Lower
Same
 Meet, lead or lag the market rate
HRM Functional Activities
Labor-Management Relations and
Collective Bargaining
Measuring and Reporting
Status
 Problems
 Trends
 Making recommendations for the above

Non-Financial Rewards
EXTRINSIC
Paid vacations
Life insurance
Retirement program
Health insurance

Cafeteria approach


Flexible approach
Employee specific
INTRINSIC
Internal rewards
such as the feeling
of a job well done, of
accomplishing
something, etc.
Certification in the HRM field
Professional in Human Resources
Certification through Society for Human
Resource Management (SHRM)
Senior Professional In Human Resources
Certification

Certification Received Through the HR
Certification Institute
Identifying Problem Areas
Most Business Problems:

Misplaced people in management

Often top management
Human Resources Management

Less understood

Poorly executed
Identifying Problem Areas
Step 1 – Identify who/what process is
causing the problem?
Step 2 – Shift people to positions where:

The firm can build on their strengths

Work to improve on their weaknesses or they
must be terminated.
Identifying Problem Areas
Generally, it’s the SYSTEM not the people
that are the problems so….
Management Training and Development

Conduct on-the-job coaching

Brief on-site or outside seminars

Management development programs
Linking People With Problems
In-Depth Interviews

Key people connected with problem


Weak Link
Several People or Everyone Involved
 Personal


Conflicts to Surface
Lack/Block of Communication
Sabotage
Linking People With Problems
Start with Symptoms

Work Backwards to Identify Responsible
Party(s)
Evaluate Executives
Background and Performance
 Major Decisions, Contributions, and Mistakes
 Views and Philosophies

Linking People With Problems
Relate the Individual to all Problem Areas
Analyze Problem

Recommend Action for Each Person

Identify Individual’s Potential
Checklist for Analysis
Work Design and Job Analysis

The Legal Environment

Comparable Worth

Functional Job Analysis

Performance Appraisal and
Compensation
Checklist for Analysis
Developing Communications

Formal Communication System

Informal Communication System

Person-to-Person Communication
Checklist for Analysis
Compensation and Benefits

The Reward System

Achieve Personal Objectives

Financial and Non-Financial
Rewards
Checklist for Analysis
Automation in Human Resource
Management
Efficiency in Analysis and Performance
Evaluation
 Maintenance Records




Vacation
Sick Leave
Insurance