Chapter 10
Managing Human
Resources and
Labor Relations
“Whenever you are asked
if you can do a job, tell
'em, ‘Certainly, I can!’
Then get busy and find
out how to do it.”
—
Theodore Roosevelt
PowerPoint Presentation by Charlie Cook
Copyright © 2005 Prentice Hall, Inc.
All rights reserved.
Full term HR related classes
• Busi 42 Human Resources Management
 Productive work environment
 Performance improvement
 Compensation
 Security, etc.
• Busi 38: Multiculturalism in Corporate America
 Issues on race, culture, gender, & ethnicity
 Building a cohesive corporate culture in American
business
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
8–2
Key Topics
• Human resource management
• Staffing, developing, and evaluating human
resources
• Compensation packages
• Legal issues in human resources
• Changes in the contemporary workplace
• Unionization and collective bargaining
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8–3
Human Resource Management
• Attracting, developing, and maintaining an
effective workforce—A critical, bottom-line
function!
• Centralized
Human resources
• Decentralized
Human resources
• Integrate it all
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8–4
The Human Resource Planning Process
Forecast
demand
for labor
Conduct analysis
Forecast
internal
supply of
labor
Develop plan to
match demand
with supply
Forecast
external
supply of
labor
Figure 8–1
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8–5
Job Analysis: Systematic Review of
Jobs Within a Firm
Job Description: What the job entails
Duties, responsibilities and working conditions,
plus tools, materials and equipment to perform the
job
Job Specification: Qualifications required.
Skills, abilities, and credentials needed to perform
the job
Can you find the differences between Job Description and Job
Specification? MontereyBayJobs.com
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
8–6
Forecasting Labor Supply
• Internal Forecasting:
 Replacement Charts
 Replacing
Stan Oneill
– Alberto Cribiore for now
 Skills Inventories
• External Forecasting:
 State Employment Commissions
 Unemployment
trends
 EDD employment trends
 Industry Information
 Salary,
industry growth, etc.
 http://www.salary.com/
 College Information
 www.collegerecruiter.com
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8–7
Managing a Projected Shortfall
• Hire new employees
• Retrain and transfer current employees into
understaffed areas
• Retention Incentives
• Managing demand – 80/20 rule
• Enhancing productivity
 Automation
 Outsourcing
 Stretching capacity
• Hiring temporary workers
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8–8
Conservative hiring limits layoffs
Number of Workers
Use of Temporary Labor to avoid layoffs
450
400
350
300
250
200
150
100
50
0
Total #'s
Positions
needed
Full time
staff
Temporary
Part
time
staff
1
2
3
4
5
6
7
8
9
10
Years 1 through 10
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8–9
Managing decreasing labor needs
• Utilizing temporary workers minimizes
permanent worker layoffs
• Eliminate positions by attrition when
practical
 Severance packages
• Retraining obsolete workforce skills
• Address the cause of uncertainty
• Layoffs
• The real trick: Keeping the highly
productive workers from leaving and
keeping everyone motivated
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8–10
A Note on Managing
Layoffs
•
•
•
•
•
•
Based on long-term
strategic planning
One round of layoffs
As part of a restructuring?
Strengthen company
Give lay off benefits
Morale survives
Quality employees retained
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Based on short-term
survival outlook
• Little or no long-term
strategic planning
• Multiple layoff rounds
• Successive layoffs build
fear and anxiety
• Your best employees go
job hunting elsewhere!
• Low morale » low
productivity » low profits
» more layoffs » weaken
8–11
company » repeat!
Recruiting: Attracting Qualified
Candidates to Apply for a Job
• Internal Recruiting
S.W.O.T. these two
 Utilizing current
employees for filling new
positions or promotions
• External Recruiting
 Attracting outside
candidates to apply for
open positions
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8–12
Recruiting Tips
• Always actively recruit
 Build interest and plans before
there is an opening
• Involve the whole company
 This is not just HR’s job
• Networking
 Be known, build relationships
• Build a positive working environment
 Deliver more than a paycheck!
• Hire diversity
 In more ways than you may think
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8–13
Human Resources Selection Tools
• Application Forms
• Screening
• Tests
 Intelligence
 IQ & EQ
 Personality
 Google quiz
• Reference checks
 “He no longer works here.”
• Background check
 Credit, crime, etc.
• Interviews
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Validity
The predictive
value of a selection
technique
8–14
Interviewer: Assessing the applicant
What you want to find out
• Aptitudes & skills
• Drive & ambition
• Character & personality
 Q: “Do you treat people with
courtesy even when they are
abusive?”
• Contribution to corporate culture /
mission
• Their unique positioning
• Consistency
 Ever been interviewed by the
Copyright ©police?
2005 Prentice Hall, Inc. All rights reserved.
8–15
Interviewer: Techniques to get it right
•
•
•
•
Ask for their questions.
Standardize your questions
Respect the candidate
Don’t lead, restate
 10 years from now…
• Two barriers to evaluation
The candidate’s
interview projections
Our own biases
• Be honest & candid
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8–16
Interviewing: Applicant tips
• Do your research
 Customers
 Financials
 Company articles
 Industry players & trends
 Company culture
• Prep for situational questions
 Tell me about a time when
you……
 Give precise & concise
answers (<60 seconds).
 60 seconds & you’re hired
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8–17
Interviewing: Applicant tips
• Prepare questions directed
at their core business
Good questions say..
Bad questions say…
• Dress appropriately
Err on the upside
• Watch the speech!
Turn off the slang
Moderate buzz words
• Positive vs. bubbly vs.
arrogant vs. indifferent
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I’m, uh, like, you know,
really excited and stuff.
I’ll like totally work so
hard and learn
everything really fast!
8–18
Interviewing: Applicant tips (continued)
• Bring your personality
• Lying may set you up to be
someone you aren’t.
• Never sound blasé
• Never, ever, ever sound
desperate.
 “Nobody owes you nothin’”
-Jackson Brown
• The interview isn’t over until
after you’ve sent the thank
you note.
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
8–19
Assignment:
•
Prepare for an interview for a position as Store
Manager at Taco Bell Restaurant on Alvarado
street in Monterey
1)
2)
3)
4)
Prepare questions to ask the interviewers
Prepare answers to likely questions
Prepare your sales pitch
Get psyched up to project your interview face and
persona in class.
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8–20
Assignment:
1) Brainstorm with your team about Taco Bell.
 What is the corporate mission?
 What is their current strategy?
 How competitive are they, and who are their major
competitors?
 Formulate an insightful question!
•
Make a meaningful observation about the
specific location.
 Formulate an insightful question
•
One other interview question

This one is entirely up to you.
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8–22
Assignment:
2) Prepare <1 minute answers to these
questions:
 “Tell me about a time when you turned an angry
customer into a happy repeat customer.”
 “Tell me about a time when you learned a co-worker
was stealing, loafing, or otherwise doing something
against the company’s best interest. What did you
do and how did it turn out?”
•
Don’t have this experience? Use an example
out of your personal life instead.
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
8–23
Assignment:
3) Prepare what you want to say to the
interviewer as your “sales pitch”.
 Under 1 minute
 SWOT based: Match your strengths to the
weaknesses/opportunities
 Be believable
 Be sincere
 Think: Is this unique? Is this meaningful to them?
Can I live up to it? Yes is the right answer!
 Under 1 minute!
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8–24
Assignment:
4) Write a few notes on how you get yourself in
the right interview mindset to stand out and get
hired.
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8–25
Developing the Workforce
• Training
 On-the-job training
 Off-the-job training
 Vestibule training
• Value of training
 Higher morale
 Better customer service
 Lower quality costs
 Lower employee turnover
 More time for strategic planning
 Mission aligned behavior
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8–34
Performance Appraisal
1. Establish Standards
Result vs. process,
Mission based,
SMART goals
2. Communicate
Standards
3. Evaluate Performance
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4. Discuss Results
Factual vs. Judgmental.
5. Take Corrective Action
Performance improvement
planning
6. This must all be done
as part of the firing
process!
8–35
Compensation and Benefits
• Wages
 Money paid for time worked
• Salary
 Money paid for accomplishing a specific job
Incentive Programs
Incentives
Money linked specifically
to high performance
Gaming!
Bonuses
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8–37
Benefits: Compensation Other Than
Wages and Salaries
• Optional Benefits
 Retirement plans
 Defined
benefit vs. defined contribution
 Health, life, and disability insurance
 Vacations and holidays
 Cafeteria benefit plan
• Mandatory Benefits
 Social security
 Workers’ compensation
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8–38
Equal Opportunity:
Unfair Discrimination Is an Illegal and
unprofitable strategy
• Equal Opportunity Laws
 Protect workers from discrimination based on prejudice
• Protected Class
 People with common characteristics as indicated by law
• Equal Employment Opportunity Commission - EEOC
 Federal agency that enforces discrimination-related laws
• Affirmative Action
 Plan to hire and develop members of protected classes
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8–40
Contemporary Legal Issues in
Human Resource Management
• Employee safety and health
 Workplace (OSHA), General
• AIDS in the workplace
• Sexual harassment
 Quid pro quo
 Hostile work environment
• Employment-at-will
 Does NOT forego all rights
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8–41
Managing Organized Labor
• Labor Union
 People working together to achieve shared jobrelated goals
Labor Relations
Managing unionized
employees
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8–46
History of USA Labor
• 1700- early 1800’s Agrarian
economy
 Many workers & Many
Employers (farms)
• Early 1800’s Industrial
Revolution
 Displaced farm workers & few
big, POWERFUL employers
• 1869 – Labor Unions begin growing
 Power matching
• 1980 – 1990’s happy employees
 Union decline
• 2000 - 2007 Global competition
 Global labor price competition
 Where are we headed?
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8–47
Trends in Union Membership
Data for 1981 and 1982 were not available.
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Figure 8–3
8–48
When Bargaining Fails…
• Union Tactics:
 Strike
 Picketing
 Boycott
 Work slowdown
• Management Tactics:
 Lockouts
 Strikebreakers
Who has the position of strength?
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8–50
Test Tips
• Sorry, but you have to be in class to get them.
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8–51