Chapter 10
Managing Human Resources
Pamela S. Lewis
Stephen H. Goodman
Patricia M. Fandt
Slides Prepared by
Bruce R. Barringer
University of Central Florida
©2001 South-Western College Publishing
Learning Objectives
Slide 1 of 3
1.Describe the key factors of the legal
environment in which human resource
management functions.
2.Identify the primary legislative acts relating
to equal employment opportunity that affect
the hiring process.
3.Discuss the components of human resource
planning.
© 2001 South-Western Publishing
Transparency 10-2
Learning Objectives
Slide 2 of 3
4.Explain the role of forecasting in human
resource planning.
5.Summarize the different recruiting
techniques used by organizations.
6.Clarify the major employee selection
methods.
7.Explain the different types of employee
training.
© 2001 South-Western Publishing
Transparency 10-3
Learning Objectives
Slide 3 of 3
8.Describe the role of performance appraisals
in the organization.
9.Specify how compensation and benefits are
used in organizations.
10. Examine recent trends in labor-management
relations.
11. Clarify the primary challenges of HRM in
the multinational organization.
© 2001 South-Western Publishing
Transparency 10-4
Human Resource Management
Defined
Management of the organization’s employees;
consists of all the activities required to enhance
the effectiveness of an organization’s workforce
in achieving organizational goals and
objectives.
© 2001 South-Western Publishing
Transparency 10-5
Legal Environment of Human
Resource Management
Slide 1 of 6
• Equal Employment Opportunity Legislation
– The Civil Rights Act of 1964, the Civil Rights
Restoration Act of 1988, and the Civil Rights
Act of 1991 are equal employment opportunity
laws.
– Equal employment opportunity laws prohibit
the consideration of race, color, religion,
national origin, or gender in employment
decisions.
© 2001 South-Western Publishing
Transparency 10-6
Legal Environment of Human
Resource Management
Slide 2 of 6
• Other Legislation
– Such as the Americans with Disabilities Act and
the Age Discrimination Act of 1967, prohibits
employment decisions based on biases against
qualified individuals with disabilities and the
elderly.
– In general, the purpose of EEO legislation is to
ensure that unemployment decisions are based
on job-related criteria only.
© 2001 South-Western Publishing
Transparency 10-7
Legal Environment of Human
Resource Management
Slide 3 of 6
• Most Current Legislation
– Family and Medical Leave Act of 1993
• Allows individuals to take up to 12 weeks of unpaid
leave per year for the birth or adoption of a baby or
the illness of a family member.
© 2001 South-Western Publishing
Transparency 10-8
Legal Environment of Human
Resource Management
Slide 4 of 6
• Affirmative Action
– The legal requirement that federal contractors,
some public employees, and private organizations
under court order for short-term remedies must
actively recruit, hire, and promote members of
minority groups and other protected classes if such
individuals are underrepresented in the
organization.
© 2001 South-Western Publishing
Transparency 10-9
Legal Environment of Human
Resource Management
Slide 5 of 6
• Sexual Harassment
– Actions that are sexually directed, unwanted, and
subject the worker to adverse employment
conditions.
• “Quid pro quo” Harassment
– When sexual compliance is required for job-related
benefits and opportunities such as pay and
promotion.
© 2001 South-Western Publishing
Transparency 10-10
Legal Environment of Human
Resource Management
Slide 6 of 6
• Hostile Environment Harassment
– When the victim does not suffer any tangible
economic injury, but workplace conduct is
sufficiently severe to create an abusive work
environment.
© 2001 South-Western Publishing
Transparency 10-11
Human Resource Planning
Slide 1 of 2
• Human Resource Planning
– The process of determining future human
resource needs relative to an organization’s
strategic plan and taking actions necessary to
meet those needs in a timely manner.
© 2001 South-Western Publishing
Transparency 10-12
Human Resource Planning
Slide 2 of 2
• Human Resource Information Systems
– Systems that make it possible to track and
monitor economic forecasts, competitors, and
legislation that influence long-range personnel
planning; to produce models for salary
forecasting, job analysis and evaluation,
recruiting, employee training, and annual
appraisal of employee performance; to provide
benefits to current and retired employees; and
more.
© 2001 South-Western Publishing
Transparency 10-13
Human Resource Planning Process
Job Analysis
Forecasting
Staffing
Recruitment
Selection
Training
Performance Appraisal
Compensation
© 2001 South-Western Publishing
Transparency 10-14
Job Analysis
Slide 1 of 2
• Job Analysis
– The primary process used for gathering current
information about a job through such actions as
observation, survey, questionnaires, and
interviews.
– The job analysis includes a job description and
job specifications.
© 2001 South-Western Publishing
Transparency 10-15
Job Analysis
Slide 2 of 2
• Job Descriptions
– Details of the responsibilities and tasks
associated with a given position.
• Job Specifications
– Identifies the knowledge, skills, abilities, and
other employee characteristics needed to
perform a job.
© 2001 South-Western Publishing
Transparency 10-16
Forecasting
• Demand Forecasting
– Determining the number of employees that the
organization will need at some point in the
future as well as the knowledge, skills, and
abilities that these employees must possess.
• Supply Forecasting
– Determining what human resources will be
available, both inside and outside the
organization.
© 2001 South-Western Publishing
Transparency 10-17
Recruitment
• Recruitment
– The process of finding and attracting job
candidates who are qualified to fill job
vacancies.
• Internal recruitment
– Identifying candidates from inside the
organization and encouraging them to apply for
jobs that are vacant.
• External recruitment
– Soliciting applicants from outside the
organization.
© 2001 South-Western Publishing
Transparency 10-18
Selection Methods
Slide 1 of 5
• Selection
– The process of evaluating and choosing the best
qualified candidate from the pool of applicants
recruited for the position.
– It entails the exchange of accurate information
between employers and job candidates to
optimize the person-job match.
© 2001 South-Western Publishing
Transparency 10-19
Selection Methods
Slide 2 of 5
• Application Forms
– A form that records the applicant’s
desired position, serves as a prescreening
device to determine an applicant’s
qualifications, and provides preliminary
comparisons with the credentials of other
candidates.
© 2001 South-Western Publishing
Transparency 10-20
Selection Methods
Slide 3 of 5
• Employment Testing Measure
– Any instrument, device, or information
used to make an employment decision is
considered a test by the EEOC’s Uniform
Guidelines on Employee Selection.
© 2001 South-Western Publishing
Transparency 10-21
Selection Methods
Slide 4 of 5
• Interviews
– Relatively formal, in-depth conversations
conducted for the purpose of assessing a
candidate’s knowledge, skills, and
abilities, as well as providing information
to the candidate about the organization
and potential jobs.
© 2001 South-Western Publishing
Transparency 10-22
Selection Methods
Slide 5 of 5
• Importance of Reliability and Validity
– Regardless of the selection method used,
the organization must be able to
demonstrate that its selection methods are
reliable and valid and do not discriminate
against employee classes protected by
EEO legislation.
© 2001 South-Western Publishing
Transparency 10-23
Training
Slide 1 of 2
• Training
– A planned effort to assist employees in learning
job-related behaviors in order to improve
performance.
– Companies train employees in an effort to
prepare them to work toward achieving the
goals and objectives of the organization.
© 2001 South-Western Publishing
Transparency 10-24
Training
Slide 2 of 2
• Types of Training Programs
–
–
–
–
Orientation
Technical training
On-the-job training
Management development programs
© 2001 South-Western Publishing
Transparency 10-25
Performance Appraisal
Slide 1 of 2
• Performance Appraisal
– A systematic process of evaluating employee
job-related achievements, strengths,
weaknesses, as well as determining ways to
improve performance.
– Purposes of performance appraisal process:
• Motivation
• Personnel movement
• Training
• Feedback
© 2001 South-Western Publishing
Transparency 10-26
Performance Appraisal
Slide 2 of 2
• Rating Performance
– Behavior-oriented approaches to performance
appraisal
• Focus on assessing employee behavior.
– Results-oriented approaches to performance
appraisal
• Use objective performance criteria.
© 2001 South-Western Publishing
Transparency 10-27
Problems with Performance Appraisal
Slide 1 of 4
• Halo Effect
– Occurs when a manager rates an employee high
or low on all items because of one
characteristic.
– For example, an employee that is good at
handling customer complaints may receive high
ratings in all other areas of work, just because
the rater is impressed with the employee’s skills
in this area.
© 2001 South-Western Publishing
Transparency 10-28
Problems with Performance Appraisal
Slide 2 of 4
• Rater Patterns
– Occurs when a rater develops a pattern in his or
her ratings of employees.
• Central tendency occurs when the rater
judges all employees as average, even
though their performance varies.
• A leniency-severity error occurs when the
rater is unjustifiably easy or harsh in
evaluating employee performance.
© 2001 South-Western Publishing
Transparency 10-29
Problems with Performance Appraisal
Slide 3 of 4
• Contrast Error
– The tendency to rate employees relative to each
other rather than to performance standards.
– For example, if almost everyone in a group is
doing a mediocre job, then a person performing
somewhat better may be rated as excellent
because of the contrast effect.
© 2001 South-Western Publishing
Transparency 10-30
Problems with Performance Appraisal
Slide 4 of 4
• Recency Error
– Occurs when a manager bases an evaluation on
the employee’s most recent performance.
– This is typically a problem when the
evaluations are not frequent enough for the
rater to recall performances over a long period
of time.
© 2001 South-Western Publishing
Transparency 10-31
Compensation and Benefits
Slide 1 of 4
• Compensation
– Wages paid directly for time worked, incentives
for better performance, and indirect benefits that
employees receive as part of their employment
relationship with the organization.
© 2001 South-Western Publishing
Transparency 10-32
Compensation and Benefits
Slide 2 of 4
• Forms of Compensation
– Direct Compensation: Base Pay and Incentives
• Base pay - Wages and salaries that employees receive
in exchange for performing their jobs.
• Incentives - Compensation beyond base pay used to
attract, retain, and motivate employees.
– Indirect Compensation: Benefits
• Payments beyond wages or salaries that are given to
employees as a reward for organizational membership.
© 2001 South-Western Publishing
Transparency 10-33
Compensation and Benefits
Slide 3 of 4
• Designing Equitable Reward Systems
– Compensation designers are concerned with
three sources of fairness expectation:
• External Fairness
– Is the pay for the job fair in one organization
relative to the pay for the same job in other
organizations?
• Internal Fairness
– Is the pay for the job within the organization fair
relative to the pay of other jobs in the same
organization?
© 2001 South-Western Publishing
Transparency 10-34
Compensation and Benefits
Slide 4 of 4
• Designing Equitable Reward Systems (cont.)
– Employee Fairness
• Is the pay fair relative to what coworkers are
making on the same job?
© 2001 South-Western Publishing
Transparency 10-35
Labor-Management Relations
• The formal process through which
employees and unions negotiate terms and
conditions of employment including pay,
hours of work, benefits, and other important
aspects of the working environment.
© 2001 South-Western Publishing
Transparency 10-36
Current Issues in HRM
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•
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HRM in the Multinational Corporation
Workforce Diversity
Sexual Harassment
Health Concerns in the Work Environment
© 2001 South-Western Publishing
Transparency 10-37