Ferrell Hirt Ferrell
M: Business
nd
2 Edition
FHF
Managing Human Resources
FHF
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Human Resource Management
[
All activities involved in determining the
organization's needs for human
resources and acquiring, training, and
compensating people to fill those needs
]
FHF
11-3
Increasing in importance
Employee Concerns:
• Compensation
• Job satisfaction
• Personal performance
• Leisure
• Environment
• Opportunities for advancement
Human Resource Management (continued)
FHF
11-4
Managing the Workforce During Slow
Times
Managers must be be aware of employee concerns/needs
• Do not ignore/neglect top performers
• Even during a recession, high-performers quit
• Center for Work/Life Policy
The most important things a CEO can do:
• Transparent and honest communication
• Non-monetary rewards; flexibility programs
FHF
11-5
Planning for HR Needs
Job analysis
• Systematically determining pertinent information
about a job (tasks, abilities, knowledge, skills)
Job description
• Formal & written specifications of the job (title,
tasks, relationships, skills, duties, responsibilities)
Job specification
• Description of the job qualifications (education,
experience, personal/physical characteristics)
FHF
11-6
Employee Recruiting
Recruiting
The formation of a pool of qualified job candidates from which
management selects employees.
• Internal Sources
• Current employees
• Promotion from within
• External Sources
• Advertising
• Employment agencies
• Online
FHF
11-7
Employee Selection
Selection
The process of collecting information about applicants and
using information to make hiring decisions.
• Application
• Interviewing
• Testing
• Reference Checking
FHF
11-8
Application
• First stage of the selection process
• Name, address, telephone
• Education, previous work experience, references
• Qualifications for the position
Selection Process
FHF
11-9
The Interview
• 2nd phase of selection
• Detailed information on candidate
• Attitudes toward job
FHF
11-10
Testing
• Ability and performance testing
• Aptitude, IQ, Personality tests
• Applicant assessment
• Goodness of “fit”
• Myers-Briggs Type Indicator
FHF
11-11
Reference Checking
• Verify education
• Previous work experience
• Privacy issues
FHF
11-12
Top 10 Mistakes Made in Interviewing
1. Not taking the interview seriously
2. Not dressing appropriately (dressing down)
3. Not appropriately discussing experience and education
4. Being too modest about one’s accomplishments
5. Talking too much
6. Too much concern about compensation
7. Speaking negatively of a former employer
8. Not asking enough or appropriate questions
9. Not showing the proper enthusiasm level
10. Not engaging in appropriate follow-up to interview
FHF
11-13
Dealing with an Uncertain Job Market
Less job availability and job security than there used to be
Tips for finding a job
• Faculty/Career Services/Alumni can help students talk
about options
• Be flexible about location, salaries, job description
FHF
11-14
Legal Issues in Recruiting and Selecting
Title VII of the Civil Rights Act
• Prohibits discrimination in employment
• Equal Employment Opportunity Commission (EEOC)
• Tests must be validated
FHF
11-15
Laws Affecting HRM
• Americans with Disabilities Act (ADA)
• Age Discrimination in Employment Act
• Equal Pay Act
FHF
11-16
Developing the Workforce
Orientation
• Familiarizing new hires with fellow workers,
company procedures and the physical properties
of the company
Training
• Teaching employees to do specific job tasks
through classroom development or on-the-job
experience.
Development
• Training that augments the skills and knowledge
of managers and professionals.
FHF
11-17
Developing the Workforce
• Strengths
• Weaknesses
• Provides feedback
• Objective or subjective
• Quantitative or qualitative
FHF
11-18
Employee Selection
Turnover
• Employees voluntarily leave (quit); involuntary
leave (fired). Management must replace workers.
Promotion
• Advancement to higher-level job with increased
authority, responsibility, and pay
Transfer
• Move to another job within the company usually at
same or similar level and wage rate
Separations
• Employment changes involving resignation,
retirement, termination, or layoff
FHF
11-19
Wage/Salary Survey
Study indicating how much compensation comparable firms
are paying for specific jobs that firms have in common
• Helps in designing fair compensation packages
FHF
11-20
Financial Compensation
Wages
• Financial rewards based on hours worked
and/or level of output achieved
Piece wages
• Based on level of output achieved. Motivate
employees to increase output
Commission
• Incentive system that pays a fixed dollar amount
or a percentage of the employee’s sales.
Motivates employees to sell as much as possible
FHF
11-21
Federal minimum is $7.25/hr; up from $6.55 in 2008
• Some states and cities pay minimum wages that are higher
than the federal one
• NY pays $8.00/hr
• Santa Fe, NM pays $9.92/hr
• Colorado was 1st-ever state to reduce its minimum wage in
2010
• From $7.28 to $7.24
Employee Selection
FHF
11-22
Salary
• Financial reward calculated on weekly, monthly, or
annual basis. (White collar employees, executives,
professionals)
Bonuses
• Monetary rewards provided by firm for exceptional
performance or incentive to increase productivity
Compensation
FHF
11-23
Compensation
Profit sharing
• A percentage of company profits distributed to employees,
sometimes in the form of stock
Employee Stock Ownership Plan (ESOP)
• Company distributes shares to employees as a form of
compensation
FHF
11-24
Non-Financial Compensation
Non-financial forms of compensation:
• Pension plans
• Insurance (health, disability, life)
• Child & elder care
• Employee Assistance Programs
FHF
11-25
Benefits
• Traditional Fringe Benefits
• Sick leave
• Pension plans
• Health plans
• Extra compensation (bonuses)
• Soft Benefits Perks
• Emphasize work-life balance
• On-site child care
• Spas
• Food service
• Hair salons
FHF
11-26
Fringe Benefits
Cafeteria Benefit Plans
• A set financial amount allocated to employees which
allows for selection of benefits most appropriate to each
employee
FHF
11-27
Fringe Benefits Example
Mitchell Gold + Bob Williams
• A high-end furniture company
• Offers extensive benefits
• Including on-site daycare
• Education-based
• Non-profit
• Open to the community as well
FHF
11-28
Unionized Employees
Labor union
• Employee organization formed to deal with employers for
achieving better pay, hours, and working conditions.
Collective Bargaining
• Negotiation process where management and unions reach
agreement on wages, hours, and working conditions for
the bargaining unit (employees represented by union).
FHF
11-29
• 12% of workforce
• Unionized workers often earn higher wages
• Concentrated in certain industries
• Automotive manufacturing
• Steel production
• Construction
• Public-sector (government)
Unionized Employees
FHF
11-30
Unions
United Steelworkers’ Union
800,000 members
Influences foreign policy and trade
• Complained about cheap Chinese tires
• Government responded with a 35% tariff
• Worth $2 billion annually
• Seeking anti-dumping action against China and
Malaysian paper products
FHF
11-31
Collective Bargaining Process
FHF
11-32
Labor Contract
[
The formal written document that
stipulates the relationship between
union and management for a specific
time period. The outcome of collective
bargaining.
]
FHF
11-33
Disputes
Pickets
• Public protests against the actions of the company or
management
Strike
• Employee walkouts; work stoppage. Most effective
economic weapon for unions in private sector.
Boycott
• Attempt to keep people form purchasing the
company’s products.
Lockout
• Management’s version of the strike. Worksite is
closed to prevent employees from working
FHF
11-34
Third-Party Dispute Resolution
Conciliation
• 3rd party intervention so that management &
labor continue talks.
Mediation
• 3rd party helps to bring labor and management
together to resolve disputes
Arbitration
• 3rd party settles dispute by imposing solution
that is legally binding
FHF
11-35
Workforce Diversity Involves
[
The participation of different ages,
genders, races, ethnicities, nationalities,
and abilities in the workplace
]
FHF
11-36
Characteristics of Workforce Diversity
FHF
11-37
Valuing Workforce Diversity
• More productive use of human resources
• Reduced conflict among employees
• More productive working relationships
• Increased commitment to organizational goals
• Increased innovation and creativity
• Increased ability to serve the needs of diverse
customers
FHF
11-38
Affirmative Action
Legally mandated plans that try to increase job
opportunities for minority groups by:
• Analyzing the current pool of workers
• Identifying areas where women and minorities are
underrepresented
• Establishing specific hiring and promotion goals to
resolve the discrepancy
Prohibits organizations from setting hiring quotas that
might result in reverse discrimination
FHF
11-39
FHF
11-40