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Nickels_12e_UB_PPT_Student_Ch11.pptxChapter 11
Human Resource Management: Finding and Keeping the Best Employees
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Learning Objectives 1 of 2
LO 11-1 Explain the importance of human resource management, and describe current issues in managing human resources.
LO 11-2 Illustrate the effects of legislation on human resource management.
LO 11-3 Summarize the five steps in human resource planning.
LO 11-4 Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging.
LO 11-5 Outline the six steps in selecting employees.
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Learning Objectives 2 of 2
LO 11-6 Illustrate employee training and development methods.
LO 11-7 Trace the six steps in appraising employee performance.
LO 11-8 Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits.
LO 11-9 Demonstrate how managers use scheduling plans to adapt to workers’ needs.
LO 11-10 Describe how employees can move through a company: promotion, reassignment, termination, and retirement.
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Working with People Is Just the Beginning 1 of 2
LO 11-1
Human resource management (HRM)
Determining human resource needs
Recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees
HRM’s role has grown because of:
Increased recognition of employees as a resource
Changes in law that rewrote old workplace practices
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Figure 11.1 Human Resource Management
LO 11-1
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Working with People Is Just the Beginning 2 of 2
LO 11-1
The Human Resource Challenge
Multigenerational workforce
Shortages of trained workers in growth areas
Worker shortage in skilled trades
Increasing number of single-parent and two-income families
Expanding global markets with low-wage workers
Increasing benefit demands and benefit costs
A decreased sense of employee loyalty
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Laws Affecting Human Resource Management 1 of 5
LO 11-2
Civil Rights Act of 1964
Title VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on:
Race
Religion
Creed
Sex
National Origin
Age
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Laws Affecting Human Resource Management 2 of 5
LO 11-2
1972 Equal Employment Opportunity Act (EEOA)
The EEOA strengthened the Equal Employment Opportunity Commission (EEOC), giving the EEOC the right to issue workplace guidelines for acceptable employer conduct.
EEOC could mandate specific recordkeeping procedures and was vested with the power of enforcement.
Controversial Procedures of the EEOC
Affirmative action — Employment activities designed to “right past wrongs” by increasing opportunities for minorities and women.
Reverse discrimination — Discrimination against whites or males in hiring or promotion.
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Laws Affecting Human Resource Management 3 of 5
LO 11-2
Civil Rights Act of 1991
Amended Title VII and gave victims of discrimination the right to a jury trial and possible damages
Office of Federal Contract Compliance Programs (OFCCP)
Ensures that employers doing business with the federal government comply with the nondiscrimination and affirmative action laws
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Laws Affecting Human Resource Management 4 of 5
LO 11-2
Laws Protecting Employees with Disabilities and Older Employees
Americans with Disabilities Act of 1990 (ADA)
Requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities.
Passage in 2008 of Americans with Disabilities Amendments Act expanded protection.
2011 saw regulations that widen the range of disabilities covered by the ADA and shift the burden of proof of disability from employees to employers.
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Laws Affecting Human Resource Management 5 of 6
LO 11-2
Laws Protecting Employees with Disabilities and Older Employees continued
Age Discrimination in Employment Act (ADEA)
Protects workers 40 and over from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training.
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Determining a Firm’s Human Resource Need 1 of 2
LO 11-3
Human Resource Planning Process
Preparing a human resource inventory of employees
Preparing a job analysis
Assessing future human resource demand
Assessing future labor supply
Establishing a strategic plan
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Determining a Firm’s Human Resource Need 2 of 2
LO 11-3
What’s a Job Analysis?
Job analysis — A study of what is done by employees who hold various job titles.
Job description — A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions.
Job specifications — A written summary of the minimum qualifications required of workers to do a particular job.
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Recruiting Employees from a Diverse Population
LO 11-4
Recruitment — The set of activities used to obtain a sufficient number of the right people at the right time.
Human resource managers use both internal and external sources to recruit employees.
Small businesses often make use of web sources like GlassDoor, Indeed, and LinkedIn to recruit employees.
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Figure 11.4 Employee Sources
LO 11-4
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Selecting Employees Who Will Be Productive 1 of 3
LO 11-5
Selection — The process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization.
Steps in the Selection Process
Obtaining complete application forms
Conducting initial and follow-up interviews
Giving employment tests
Conducting background investigations
Obtaining results from physical exams
Establishing trial (probationary) periods
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Selecting Employees Who Will Be Productive 2 of 3
LO 11-5
Hiring Contingent Workers
Contingent workers — Workers who do not have the expectation of regular, full-time employment.
There are about 5.7 million contingent workers in the U.S.
The majority of contingent workers are under 25.
Companies hire contingent workers:
When full-time workers are on leave
During periods of peak demand
In uncertain economic times
To save on employee benefits
To screen candidates for future employment
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Selecting Employees Who Will Be Productive 3 of 3
LO 11-5
Hiring Contingent Workers continued
Students and the contingent workforce
With temporary staffing agencies, companies have easier access to screened workers.
Worker information is entered into their databases.
When students come back to town, they can call the agency and ask them to put their names into the system for work.
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Training and Developing Employees for Optimum Performance 1 of 5
LO 11-6
Training and Development — All attempts to improve productivity by increasing an employee’s ability to perform.
Training focuses on short-term skills.
Development focuses on long-term abilities.
Three Steps of Training and Development
Assessing organization needs and employee skills to determine training needs
Designing training activities to meet identified needs
Evaluating the training’s effectiveness
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Training and Developing Employees for Optimum Performance 2 of 5
LO 11-6
Most Commonly Used Training and Development Activities
Orientation
On-the-job training
Apprenticeships
Off-the-job training
Online training
Vestibule training
Job simulation
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Training and Developing Employees for Optimum Performance 3 of 5
LO 11-6
Management Development
Management development — The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.
Management training includes:
On-the-job coaching
Understudy positions
Job rotation
Off-the-job courses and training
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Training and Developing Employees for Optimum Performance 4 of 5
LO 11-6
Networking
Networking — The process of establishing and maintaining contacts with key managers in one’s own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems.
Mentors — An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor.
Networking and mentoring go beyond the work environment.
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Training and Developing Employees for Optimum Performance 5 of 5
LO 11-6
Diversity in Management Development
Reasons to develop female and minority managers
It isn’t about legality, morality, or morale but rather about bringing more talent in the door.
The best women and minorities will become harder to attract, so companies that commit to development have an edge.
Having more women and minorities at all levels lets businesses serve their women and minority customers better.
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Appraising Employee Performance to Get Optimum Results 1 of 2
LO 11-7
Performance appraisal — An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination.
A 360-degree review gives managers opinions from people at different levels to get a more accurate idea of the worker’s abilities.
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Appraising Employee Performance to Get Optimum Results 2 of 2
LO 11-7
Six Steps of Performance Appraisals
Establishing performance standards that are understandable, measurable, and reasonable.
Clearly communicating those standards.
Evaluating performance against the standards.
Discussing the results with employees.
Taking corrective action.
Using the results to make decisions.
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Compensating Employees: Attracting and Keeping the Best 1 of 4
LO 11-8
A managed and competitive compensation program helps:
Attract the kinds of employees the business needs
Build employee incentive to work efficiently and productively
Keep valued employees from going to competitors or starting their own firm
Maintain a competitive market position by keeping costs low due to high productivity from a satisfied workforce
Provide employee financial security through wages and fringe benefits
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Figure 11.5 Pay Systems 1 of 3
LO 11-8
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Figure 11.5 Pay Systems 2 of 3
LO 11-8
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Figure 11.5 Pay Systems 3 of 3
LO 11-8
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Compensating Employees: Attracting and Keeping the Best 2 of 4
LO 11-8
Compensating Teams
Team-based pay programs are more challenging than individual pay systems.
The two most common methods for teams involve:
Skill-based: Pay is increased as team members learn and apply new skills. (Eastman Chemical uses this system.)
Gain-sharing: Pay is increased as performance increases compared to previous performance. (Nucor Steel uses this system.)
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Compensating Employees: Attracting and Keeping the Best 3 of 4
LO 11-8
Fringe Benefits
Fringe benefits —sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages.
Fringe benefits include incentives like:
Company cars
Country club memberships
Discounted massages
Special home-mortgage rates
Paid and unpaid sabbaticals
Day care and elder care services
Executive dining rooms
Dental, eye, and mental health care
Student loan debt payment
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Compensating Employees: Attracting and Keeping the Best 4 of 4
LO 11-8
Fringe Benefits continued
Cafeteria-style fringe benefits — Fringe benefit plan that allows employees to choose the benefits they want up to a certain dollar amount.
Soft benefits include:
On-site haircuts and shoe repair
Concierge services
Free meals at work
Free car washes
Paid paternal leave
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Scheduling Employees to Meet Organizational and Employee Needs 1 of 3
LO 11-9
Flextime plan — Work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours.
Compressed workweek — Work schedule that allows employees to work a full number of hours per week but in fewer days.
Job sharing — An arrangement whereby two part-time employees share one full-time job.
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Scheduling Employees to Meet Organizational and Employee Needs 2 of 3
LO 11-9
Flextime Plans
Most flextime plans require core time — The period when all employees are expected to be at their job stations.
Flextime is difficult to incorporate into shift work, and managers have to work longer hours.
Communication among employees can also be difficult under flextime, and managers have to be alert to any system abuses.
Compressed workweeks
Employees enjoy long weekends after working long days.
Productivity is a concern.
Nurses often work compressed workweeks.
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Figure 11.6 A Flextime Chart
LO 11-9
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Scheduling Employees to Meet Organizational and Employee Needs 3 of 3
LO 11-9
Home-Based Work
24 percent of Americans work from home at least once per week.
68 percent of Americans expect to work remotely in the future.
Job-Sharing Plans
Benefits:
Provide employment opportunities for many people who cannot work full-time.
Workers tend to be enthusiastic and productive.
Absenteeism and tardiness are reduced.
Employers can schedule part-time workers in peak demand periods.
Experienced employees who might otherwise have retired are retained.
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Figure 11.7 Benefits and Challenges of Home-Based Work 1 of 3
LO 11-9
| Blank | Benefits | Challenges |
| To Organization | Increases productivity due to fewer sick days, fewer absences, higher job satisfaction, and higher work performance ratings Broadens available talent pool Reduces costs of providing on-site office space | Makes it more difficult to appraise job performance Can negatively affect the social network of the workplace and can make it difficult to promote team cohesiveness Complicates distribution of tasks (should office files, contact lists, and such be allowed to leave the office?) |
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Figure 11.7 Benefits and Challenges of Home-Based Work 2 of 3
LO 11-9
| Blank | Benefits | Challenges |
| To Individual | Makes more time available for work and family by reducing or eliminating commute time Reduces expenses of buying and maintaining office clothes Avoids office politics Helps balance work and family Expands employment opportunities for individuals with disabilities | Can cause feeling of isolation from social network Can raise concerns regarding promotions and other rewards due to being out of sight, out of mind May diminish individual’s influence within company due to limited opportunity to learn the corporate culture |
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Figure 11.7 Benefits and Challenges of Home-Based Work 3 of 3
LO 11-9
| Blank | Benefits | Challenges |
| To Society | Decreases traffic congestion Discourages community crime that might otherwise occur in bedroom communities Increases time available to build community ties | Increases need to resolve zoning regulations forbidding business deliveries in residential neighborhoods May reduce ability to interact with other people in a personal, intimate manner |
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Moving Employees Up, Over, and Out
LO 11-10
Employees are promoted or reassigned; are terminated due to performance or economic situations; or retire.
Terminating Employees
As the economic crisis grew, more and more employers have had to lay off employees.
Even when the economy is booming, employers are hesitant to hire full-time workers because of the cost of termination.
Firing employees is more difficult for employers because of laws preventing termination for certain acts.
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Figure 11.8 How to Avoid Wrongful Discharge Lawsuits
LO 11-10
Prepare before hiring by requiring recruits to sign a statement that retains management’s freedom to terminate at will.
Don’t make unintentional promises by using such terms as permanent employment.
Document reasons before firing and make sure you have an unquestionable business reason for the firing.
Fire the worst first and be consistent in discipline.
Buy out bad risk by offering severance pay in exchange for a signed release from any claims.
Be sure to give employees the true reasons they are being fired. If you do not, you cannot reveal it to a recruiter asking for a reference without risking a defamation lawsuit.
Disclose the reasons for an employee’s dismissal to that person’s potential new employers.
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Appendix of Long Image Descriptions
©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
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Appendix 1 Figure 11.1 Human Resource Management
Organizational goals
Human resource management
Recruitment
Selection
Training and development
Motivation (chapter 10)
Evaluation
Compensation and benefits
Scheduling
Employee–union relations (chapter 12)
Career management
All of this occurs within the legal environment.
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Appendix 2 Figure 11.4 Employee Sources
External sources used to find qualified candidates include private employment agencies, public employment agencies, personal applications, management consultants, new graduates, former employees, part-time applicants, competing organizations, union organizations, advertisements, temporary help services, union halls, trade schools, college placement offices, newspaper ads, trade associations, business associates, college professors, online, job fairs, cooperative education internships, and social media.
Internal sources used to find qualified candidates include transfers, promotions, employee recommendations, retrained employees, and department reorganizations.
After the human resource department has pulled qualified candidates from external or internal sources, the candidates follow the sequence of the hiring process: selection, hiring, and orientation and training.
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Appendix 3 Figure 11.5 Pay Systems 1 of 3
Salary: Fixed compensation computed on weekly, biweekly, or monthly pay periods (e.g., $1,600 per month or $400 per week). Salaried employees do not receive additional pay for any extra hours worked.
Hourly wage or daywork: Wage based on number of hours or days worked, used for most blue-collar and clerical workers. Often employees must punch a time clock when they arrive at work and when they leave. Hourly wages vary greatly. The federal minimum wage is $7.25, and top wages go as high as $40 per hour or more for skilled craftspeople. This does not include benefits such as retirement systems, which may add 30 percent or more to the total package.
Piecework system: Wage based on the number of items produced rather than by the hour or day. This type of system creates powerful incentives to work efficiently and productively.
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Appendix 4 Figure 11.5 Pay Systems 2 of 3
Commission plans: Pay based on some percentage of sales. Often used to compensate salespeople, commission plans resemble piecework systems.
Bonus plans: Extra pay for accomplishing or surpassing certain objectives. There are two types of bonuses: monetary and cashless. Money is always a welcome bonus. Cashless rewards include written thank-you notes, appreciation notes sent to the employee’s family, movie tickets, flowers, time off, gift certificates, shopping sprees, and other types of recognition.
Profit-sharing plans: Annual bonuses paid to employees based on the company’s profits. The amount paid to each employee is based on a predetermined percentage. Profit sharing is one of the most common forms of performance-based pay.
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Appendix 5 Figure 11.5 Pay Systems 3 of 3
Gain-sharing plans: Annual bonuses paid to employees based on achieving specific goals such as quality measures, customer satisfaction measures, and production targets.
Stock options: Right to purchase stock in the company at a specific price over a specific period. Often this gives employees the right to buy stock cheaply despite huge increases in the price of the stock. For example, if over the course of his employment a worker received options to buy 10,000 shares of the company stock at 10 dollars each and the price of the stock eventually grows to 100 dollars, he can use those options to buy the 10,000 shares (now worth 1 million dollars) for 100,000 dollars.
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Appendix 6 Figure 11.6 A Flextime Chart
Flexible hours can be scheduled between 6:30 a.m. and 6:30 p.m. The core work times are 9:30 to 11:00 a.m. and 2:00 to 3:00 p.m. The lunch period is between 11:00 a.m. and 2:00 p.m. Sarah’s work schedule is outlined on the chart. She starts work at 7:00 a.m., eats lunch from 11:00 to 11:30 a.m., and leaves work for the day at 3:30 p.m.
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