Human Resources Management
Competency BM004
Explain human
resource functions and
their importance to an
organization’s
successful operation
1
Objective BM04.01
Evaluate recruitment sources and selection
tools available to staff and organization.

Identify needs of the company

Examine methods of recruiting employees

Outline the basics of hiring employees

Outsourcing
2
Identify needs of the company
Job
 Job
 Job
 Job
 Job
 Job
 Job

analysis
description – basic tasks
specification – qualities needed
design
enlargement
enrichment
security
3
Why job descriptions?
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Employees know what is expected of
them
Employers know what they can expect
Focus given to recruitment and selection
process
Justification for pay decisions,
promotions, and disciplinary action
Helpful to know before and after a
company re-organization
4
Methods of Recruiting Employees
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Newspaper ads
Headhunters
Internet
Employee referrals
Flyers in college placement centers
Job fairs
Professional organizations
Employment agencies
Hidden market method
Networking
5
The Basics of Hiring Employees
Applications
 Resumes
 Interviews
 Advantages of hiring

Internally
 Externally
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Other selection tools
6
The basics of . . .
Applications
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Completion
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Good written communication skills
Resumes
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Education
Experience
Achievements
Skills
Good written communication skills
7
The basics of interviews in hiring
employees
The purpose of the interview is to . . .
 Confirm information on application and/or
resume
 Assess candidate on oral communications
skills
 Gather information on human relations
skills
 Provide information about the company
and the job
8
Tips for Interviewer
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Greet applicant cordially
Introduce yourself
Seat him/her comfortably
Establish rapport
Limit your own talking
Think like the applicant
Don’t interrupt
Concentrate
Take notes
Evaluate oral communications skills
9
Risky Interview Topics
Ethnic/National origin
 Disabilities
 Family and family plans
 Previous workers’ compensation
claims
 Work missed due to illness
 Off-the-job activities
 Age

10
Advantage of hiring . . .
Internally:
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Less money spent on training (already knows
company and its policies)
Higher level of knowledge about company and
its activities among employees
Firsthand knowledge of employee
performance
Attractive addition for benefits package
Good way to reward good employees
Creates loyalty among employees
11
Advantages of hiring . . .
Externally:
Provides company with fresh, new
ideas
 Competition from the outside keeps
company employees performing at a
high level
 Decreases internal back stabbing
 Provides a broader talent pool

12
Other Selection Tools
Management assessment centers
 Aptitude tests
 Background investigations
 Reference checks

13
Outsourcing
Hiring an outside firm to perform
specific services under contract
Typical services outsourced
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Legal
Transportation
Catering
Printing
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Advertising
Accounting
Auditing
Security
14
Outsourcing
Advantages:
Savings in cost and efficiency
 Reduced overhead
 Concentrate on core activities of
business
 Better quality skills in outsourced
services
 Flexibility in staffing and operations

15
Outsourcing
Disadvantages:
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Reduce breadth of organization
Require extra care in coordinating with
outsource firm
Reduce ability to integrate processes within
the firm
Lose some control over outsourced services
Decrease morale and motivation of employees
(jobs lost)
Increase employees’ insecurity
16
Objective BM04.02
Discuss the benefits of training and
development in lifelong learning as they
relate to successful employee performance.

Analyze different needs for training

Consider learning styles and examine
ways to provide training
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Explain ways to evaluate training
17
Analyze different needs for
training
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Know-how skills deficit
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New employee orientation
Employee promoted to new position
Enable employee to perform more and higher
quality work
General training needs for all employees
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New equipment
New operations
New procedures
18
Consider learning styles and
examine ways to provide training
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Three major learning styles
Ways to provide training
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Classroom
Online or computerized
Books and printed materials
On the job (with mentor)
Just-in-time training
Vestibule training
Cross training
19
Three Types of Learning Styles
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Visual learner
 Learns through seeing
 Prefers to sit at the front
 Learns best from visuals and handouts
Tactile/Kinesthetic learner
 Learns through moving, doing, touching
 Prefers a hands-on approach
 May find it difficult to sit for long periods
Auditory learner
 Learns through listening
 Prefers lectures and discussions
 Benefits from reading text aloud and using a tape
recorder
20
Classroom Training
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Train large groups
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Low cost
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Orientation for job
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Introduce new procedures
21
Online or Computerized
Training
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Low cost

Employees work at their own pace

Employees work on course during
free time
22
Books and Printed Materials
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Employees can study in their free
time
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Low cost

Can be used as follow-up to
classroom training
23
On-the-job Training

Apprenticeship
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Advantages – disadvantages in
providing training on the job
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Cross-training (job rotation)
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Effective for learning hands-on tasks
24
Just-in-time Training
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Employees learn the skills or
procedures just before they are to
use them on the job
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May choose from a variety of
training methods (classroom, online,
etc.)
25
Vestibule Training
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Expense of setting up training area
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Simulation of real environment but
is NOT like the real environment
(interruptions and interactions with
others excluded)
26
Cross Training
Employees trained to perform more
than one job
 Helpful when absence or illness
occurs
 Provides change and variety for
employees
 Employee more valuable to company

27
Ways to Evaluate Training
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Evaluation survey
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Testing
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Improved job performance
28
Objective BM04.03
Examine the employee evaluation process
and its impact.
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Determine the purposes for employee
evaluation
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Explore the steps in the performance
review process
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Analyze scoring methods for evaluation
instruments
29
Purposes for Employee
Evaluation
Emphasize strengths and identify
areas for improvement
 Discuss job-related issues
 Pay increases
 Promotions
 Dismissals
 Reprimands
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30
Steps in the Performance
Review Process
Know-how skills
 Evaluation criteria
 Evaluation expectations published
 Conducting performance evaluation
 Interview about evaluation
 Report on evaluation results
 Evaluate performance review
process
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31
Performance Review Categories
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Attitude toward job
Attitude toward coworkers
Attendance
Tardiness
Ability to follow
directions
Willingness to take
initiative
Ability to make good
judgments
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Productivity
Quality of work
Dependability
Personal grooming
Ability to get along
well with others
Willingness to
improve through
education and
information about the
job
32
Conducting Performance
Evaluations
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By managers
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Self-evaluation
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By team members
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By customers (where appropriate)
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360-degree feedback
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Performance testing
33
Scoring Methods for
Evaluation Instruments
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Checklist
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Ranking
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Forced distribution (like Bell curve)
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Performance rating scale
34
Tips for Constructive Feedback
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Be honest
Give positive as well as negative feedback
Be courteous
Frame criticism in a positive manner
Explain reasons for negative feedback
Give feedback in day-to-day work
situations
35
Objective BM04.04
Discuss compensation plans, benefit
packages, and incentive programs available
to employees.
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Discuss compensation plans
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Define the term “benefit”
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Explain benefits mandated by law
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Discuss advantages of optional benefits
36
Compensation Plans
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Wage – a certain amount paid for each
hour worked
Piecework – a set amount for each piece
completed
Salary – a certain amount each week or
month regardless of the number of hours
worked
Commission – a certain percentage of the
value of sales
Contract labor – a certain amount for one
completed job
37
Compensation Plans
continued
 Comparable worth
 Overtime pay
38
Benefit
Financial
compensation other
than wages,
salaries, and
incentives
39
Benefits Mandated by Law
Worker’s Compensation
 Unemployment Compensation
 Social Security
 Medicare
 COBRA
 Family and medical leave
 Minimum wage
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40
Advantages of Optional
Benefits
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Health insurance
 Medical
 Dental
 Vision
Paid time off (vacations, sick
leave, comp time, holidays)
Flexible spending accounts
Flexible benefit plans
Paid leave for new parents
Extrinsic rewards/Leisure
activities
Use of company car
Scholarships for employees’
children
Free/discounted products or
services
Relocation benefits
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Retirement/pension plans
Childcare
Profit-sharing plans
Employee assistance
programs
Stock options
Education/Tuition
reimbursement
Life insurance
Credit union
Exercise/Wellness programs
Shared time
Move mate/Relocation
Bonuses/incentives
Disability insurance
Intrinsic rewards
41
Telecommuter
Objective BM04.05
Investigate the criteria used in the
promotion, transfer, discipline or release of
employees.
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Consider possible criteria for job
promotion
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Examine characteristics of job transfer
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Explore the procedures used for discipline
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Consider forms of release
42
Possible Criteria for Job
Promotion
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Tenure/Seniority
Additional training
Ability to get along well with people
Exceptional performance
Ability to adapt to new situations
Leadership ability
Good personal qualities
Good work habits
Glass ceiling (barrier)
Company loyalty
43
Characteristics of Job
Transfer
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Company rules/procedures to follow
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Advantages of a transfer
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Disadvantages of a transfer
44
Procedures Used for
Discipline
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Act promptly on problem
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Document problem
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Interview employee
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Create plan to improve situation
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Follow up on status of problem
45
Kinds of Problems
Intergroup conflict
 Interpersonal conflict
 Negative reinforcement
 Organizational conflict
 Pilferage
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46
Tips for Handling Discipline
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If conduct violates a written rule
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Disciplined for such conduct in the past?
Consider employee’s length of service
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Immediate discipline, or
Progressive discipline
Probationary (more severe discipline?)
Long-term employee (less severe discipline?)
Employee given notice of rule violation?
Union activity or charge of discrimination
filed?
Have CEO review discharge decision
47
Issues Related to Job
Release
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Voluntary (resignation)
Involuntary
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Downsizing – “No fault” termination
Termination for cause – “At fault” termination
Employee turnover
Outplacement centers
Perks/Severance package/Severance pay
Sticky floor syndrone
48
Downsizing
“No fault” Termination
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Reasons for downsizing
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Ways to downsize
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Alternatives to downsizing
49
Reasons for Downsizing
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Attempt to fix problems
Lower costs
Increase production
Increase efficiency
Increased competition
Hostile takeovers/attempted takeovers
More strict environmental regulations
50
Ways to Downsize
Cutting back on production
 Laying off workers/LIFO
 Eliminating production of
unprofitable products
 Selling unprofitable products to
other companies
 Increasing the use of technology
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51
Alternatives to Downsizing
Selling additional stock
 Selling the company
 Merging with another company
 Obtaining a loan
 Bankruptcy
 Employee concessions
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52
Who should go?
(during downsizing or layoffs)
Factors to consider:
Seniority (number of years with
company)
 Performance (employee productivity)
 Conduct
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• Contribution to “team” effort
• Ability to work well with others
• Loyalty to company
• Reliability and dependability
53
Effects of Downsizing
Positive effects:
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Improved profits for the company
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Often provides the “push” for displaced
employees to start their own
companies
54
Effects of Downsizing
Negative effects:
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On people who lose jobs:
•
•
•
•
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Suffer loss of income
Suffer psychological trauma
Must job hunt when morale is very low
Must “start over” in a career
On people who remain:
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•
•
Suffer “survivor guilt”
Become territorial to protect jobs they have
May be overloaded with work
May work many hours of overtime
May spend many hours worrying
May be forced to perform jobs for which they are not
55
trained
Effects of Downsizing
Negative effects
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On the general populace
• Bad for public relations within the business
community
• Has a rippling effect on other businesses
• Hurts the local economy
• Possible increase in crime, domestic
violence, welfare, etc.
56
How do you fire an
employee?
“No fault” terminations:
Choose time that creates less pressure
for employee (not Christmas)
 Supervisor who evaluated employee
should terminate him/her
 Reassure employee that termination is
“no fault” of the employee
 Offer severance pay or other perks
 Offer to write letter of reference

57
Benefits and Severance
Packages for Laid-off Workers
Provide information to employees as early as possible
about what might happen
 Provide counselors for workers and families
 Provide seminars for updating job-seeking skills
(preparing resumes and preparing for interviews)
 Help laid-off workers find new jobs
 Offer as many options as possible
Sample severance packages:
 An opportunity to retire early with full benefits
 A full year’s salary and full retirement after five years
 A lateral transfer to a new location
 A half year’s salary with full benefits, including health
insurance
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58
Providing Benefits for
Laid-off Workers
The Pros:
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Helps keep valuable employees by giving
them additional skills
Saves the cost of hiring/training new
employees
Improves morale of workers remaining with
company
Helping workers find new jobs probably less
expensive than unemployment insurance
payment or potential legal fees from lawsuits
Retraining decreases need for government
programs such as welfare and unemployment
59
Providing Benefits for
Laid-off Workers
The Cons:
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Workers need to develop their own skills and
not depend on employers
Companies are not obligated to laid-off
workers
The cost of retraining programs and special
benefits cut into the profits of the
shareholders
Costs of benefits may cause the business to
fail, causing even more workers to lose their
jobs
Retraining and job search assistance is the
responsibility of government through the use
60
of tax dollars
Termination for Cause
“At fault” Terminations
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Termination letter
Final pay
Company property returned
Status of any continuing benefits
Collect personal items
No access to company computer system
Non-disclosure agreement, if appropriate
Exit interview
61
Termination for Cause
“At fault” Terminations
continued
 Arbitration system/Disciplinegrievance method
 Formal appeal system
 Informal appeal system
 “Hit and miss” method
 Open door policy method
62
How do you fire an
employee?
“At fault” terminations:
Give employee written warning of
unsatisfactory performance or
misconduct prior to termination
 Keep written documentation of specific
problems with employee
 Offer no severance pay
 Keep termination impersonal. Criticize
job performance only!

63
Practical Termination/
Exit Interview Tips
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Be brief and concise
Use a private setting
Use a third party as a witness—only if
absolute necessary
Offer a severance package for “no-fault”
terminations
Have employee leave quickly
(immediately) – especially with “at-fault”
terminations
64
Exit interview helps
determine . . .
Weak areas in supervisory training
 Sources of discrimination
 Inadequate grievance handling
procedures
 Poor wage and/or benefits
administration
 Other reasons for employee
dissatisfaction

65
Objective BM04.06
Describe the role of organized labor and
employment laws and their influence on
government and business.

Investigate the policies outlined in an
employment contract of a union member

Explore how federal legislation affects
employment
66
Early Labor Conditions
“Why labor unions created”
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Workers regarded as unimportant
Low pay
Long hours
Unsafe working conditions
Unhealthy working conditions
Employment of young children
Impersonal employer/employee
relationship
No form of representation
67
Explore how federal legislation
affects employment
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EEOC (Equal Employment Opportunity Commission)
OFCCP (Office of Federal Contract Compliance Programs)
FEPs (fair employment practice laws)
Executive Order 11246
Rehabilitation Act of 1973
Vietnam Era Veteran’s Readjustment Assistance Act
Civil Rights Acts of 1964
Immigration Reform and Control Act
Age Discrimination in Employment Act and Older Workers
Benefit Protection Act
Equal Pay Act
Pregnancy Discrimination Act
Americans with Disabilities Act
Other EEO laws
68
Sexual harassment policies
Who is affected and how?
Action
Management
(employers)
Others/
consumers
Boycott
Hurts sales of
products
Prices could
decrease
Picket
Hurts business and
public relations
People entering
business may be
in danger; may
affect local
economy
Hurts business and
public relations
Others who work
may be in
danger; may
affect local
economy;
products/services
may not be
available
Strike
Union
(workers)
Employees don’t
get paid if they
don’t work
69
Who is affected and how?
Action
Union
Management
Others/
(workers)
(employers)
consumers
Injunction
Employees
forced to
stop a
specific act
Hiring
Nonunion
Workers
Regular
employees
may lose
their jobs
May affect the
local economy
Lockout
Employees
don’t get
paid if they
don’t work
May affect the
local economy;
products or
services may not
70