BUSINESS ESSENTIALS, 6 TH EDITION EBERT Chapter 8: Managing Human Resources and labor Relations...

BUSINESS ESSENTIALS, 6TH EDITION EBERT

Chapter 8: Managing Human Resources and labor Relations

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• Define human resource management, discuss its strategic significance, and explain how managers plan for human resources.

• Identify the issues involved in staffing a company, including internal and external recruiting and selection.

• Discuss different ways in which organizations go about developing the capabilities of employees and managers.

L E A R N I N G O B J E C T I V E SL E A R N I N G O B J E C T I V E S

© 2009 Pearson Education, Inc.2Develped 2013

• Discuss the importance of wages and salaries, incentives, and benefit programs in attracting and keeping skilled workers.

• Describe some of the key legal issues involved in hiring, compensating, and managing workers in today's workplace.

• Discuss workforce diversity, the management of knowledge worl<ers, and the use of contingent and temporary worl<ers as important changes In the contemporary workplace.

L E A R N I N G O B J E C T I V E S (cont’d)L E A R N I N G O B J E C T I V E S (cont’d)


What’s in It for Me?

• Why does effectively managing human resources matter to you?

– By understanding the material in this chapter, you’ll be better able to understand:

1. The importance of properly managing human resources in a unit or business you own or supervise

2. Why and how your employer provides the working arrangements that most directly affect you


Human resource management (HRM)

Human resource management (HRM) is the set of organizational activities directed at attracting, developing, and maintaining an effective workforce.

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The Foundations of Human Resource Management

• Human Resource Management (HRM)–Activities directed at attracting,

developing, and maintaining an effective workforce


The Strategic Importance of HRM

1. Human resources are critical for effective organizational functioning.

2. HRM (or personnel) its importance stemming from increased legal complexities.

3. Has a substantial impact on a firm's bottom-line performance.

4. Many firms are developing strategic HR plans

5. Chief officer reports to CEO7Develped 2013

Who is responsible for HRD?

A. Depends on the size of the company.

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Figure 10.1 The HR Planning Process


HR planning process

1.First the HR department will conduct a job analysis.

2.Second, they will forecast a demand for labor.

3.This forecast will address the internal and external supplies of labor.

4.Finally they will develop a plan to match demand with supply.

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HR Planning

Job Description

Lists the duties and responsibilities of a job; its working conditions; and the tools, materials equipment, and information used to perform it

Job Description

Lists the duties and responsibilities of a job; its working conditions; and the tools, materials equipment, and information used to perform it

Job SpecificationJob Specification

Lists the skills, Lists the skills, abilities, and other abilities, and other credentials and credentials and qualifications qualifications needed to perform needed to perform the job effectivelythe job effectively

Job SpecificationJob Specification

Lists the skills, Lists the skills, abilities, and other abilities, and other credentials and credentials and qualifications qualifications needed to perform needed to perform the job effectivelythe job effectively

• Job AnalysisA systematic analysis of jobs within an organization


discussion

A. Why job description is necessary? 1. Avoid overlapped and duplications.2. Achieve employees high morals. 3. Responsibility is clearly identified.

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Forecasting Labor Supply

A. Forecasting the internal labor supply means determining the number and type of employees who will be in the firm at some future date.

B. management tools:

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Forecasting Labor Supplymanagement tools:1. Replacement charts: List each key

management position, who occupies it, how long that person will likely stay in the job, and who (by name) is qualified as a replacement.

2. Skills inventories: Computerized information systems containing information about each employee’s education, work experience, and career aspirations.

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HR Planning (cont’d)• Forecasting HR Demand and Supply

–Forecasting external supply (number/type of people who will be available for hiring from the labor market at large)

1.State employment commissions e.g. job centers.

2.Government reports3.College information regarding

enrollment and graduates in various majors


HR Planning (cont’d)• Matching HR Supply and Demand

–Alleviating Shortfalls by taking the following steps:1. Seeking new hires2. Retraining and transferring present

employees3. Retaining retirees4. Installing more productive systems


Managing a Projected Shortfall how? A. Hire new employees, if people are indeed

available in the external market.B. Retrain and transfer current employees into

understaffed areas, providing a morale boost to strong employees.

C. Consider hiring temporary workers, especially if the shortfall appears short-term or uncertain.

D. Convince older workers not to retire, which usually requires strong financial incentives.

E.E. The creative solution: Develop and install The creative solution: Develop and install productivity enhancing systemsproductivity enhancing systems

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HR Planning (cont’d)

• Matching HR Supply and Demand –Managing Overstaffing

1. Transferring extra employees2. Not replacing employees who quit

(attrition)3. Encouraging early retirement4. Laying off personnel


Staffing the Organization• Recruiting

–Attracting qualified persons to apply for the jobs that are open

–Internal Recruiting• Considering present employees as

candidates for openings1. Promotion from within2. Union contracts and job

bidding inside the organization.


Staffing the Organization–External Recruiting

•Attracting people outside of the organization to apply for jobs1. State employment agencies2. Private employment

agencies3. Advertisements


Discussion

Faculty of Commerce is looking to recruit a manager to the faculty. Think in internal and external recruiting.

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Selecting Human ResourcesA. Once the recruiting process has

attracted a pool of applicants, the next step is to select someone to hire.

B. The intent of the selection process is to gather information from applicants that will predict their job success and then to hire the candidates likely to be most successful

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Selecting Human ResourcesTools/techniques used in selection process.

Application forms; The first step in selection is asking the candidate to fill out an application form. However , make sure the forms do not ask illegal questions such as one’s age, marital status, etc.

An efficient method of gathering information about the applicant's previous work history, educational background, and other job-related demographic data.

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Selecting Human ResourcesTools/techniques used in selection process.

- Tests —ability, skills, aptitude /fitness, knowledge, attitude.

A.All candidates should be given the same directions, allowed the same amount of time, and offered the same testing environment, including temperature, lighting, and distractions.

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Tools/techniques used in selection process.

A. The Interview Is a popular selection device, but it is sometimes a poor predictor of job success because biases inherent in the way people perceive and judge others on first meeting affect subsequent evaluations.

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Selecting Human Resources

Tools used.- Interviews — interview people through a committee. validity is increased by:A.Training interviewers to reduce individual biasB.Using a structured interview format with job-related questions to improve consistency, reduce bias, and eliminate illegal questioning of applicants

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Selecting Human Resources

Other techniques that can be used:• Polygraph, or lie detector test. These are

not used that frequently anymore.• Physical exams, but employers must be

aware with Disabilities Act, which forbids denying someone employment based on physical disability alone.

• Drug tests.• Reference checks.

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Developing the Workforce• Training1.On-the-job training: Working side-by-side as

the employee learns the tasks required of the position. Also the use job rotation.

• Off-the-job training: training them away from their jobs. E.g., Vestibule/entrance training: involves employees performing work under conditions closely simulating the actual work environment.


Performance Appraisal

A. Evaluating Employee Performance. B. Performance appraisals are designed to show

how well workers are doing their jobs. The are called appraisal process uses a written assessment issued on a regular basis.

C. It is best to rely on several information sources when conducting appraisals. A system called 360-degree feedback gathers information from supervisors, subordinates, and co-workers.

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Developing the Workforce (cont’d)

• Performance Appraisal– Defining performance standards– Observing performance– Writing up the assessment– Discussing the appraisal– Methods for Appraising Performance غيرمطلوبة

Performance AppraisalEvaluating job performance

Performance AppraisalEvaluating job performance


FIGURE 10.2 Sample Performance Evaluation Form


Compensation and Benefits• Compensation System–The total package of rewards that a

company offers employees in return for their labor

• Wages —money paid for time worked, generally refer to hourly compensation paid to operating employees.

• Salary —money paid to perform a job, regardless of the amount of times or output involved.


Compensation and Benefits

–Factors affecting compensation1. Competitors’ wage offerings2. Internal wage and salary

structure—includes: job value, performance, and longevity.

3. Internal pay equity.


Example of Salary Structure in PA 1. Basic Salary2. Wife & children3. Supervision4. specialization5. qualification6. Annual increase.

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Compensation and Benefits (cont’d)• Incentive programs: are Special pay programs

designed to motivate high performance–Individual incentives:• Bonuses: payment above their salaries when

they sell a certain number or certain dollar amount of goods for the year.

• Pay for performance (variable pay): Such incentives go to middle managers on the basis of company-wide performance.


Compensation and Benefits (cont’d)•Incentive programs–Company-wide incentives: to all

employees (group incentives)1.Profit-sharing plans : profits earned above a

certain level are distributed to employees.2.Gain sharing plans, which reward groups for

their performance in reducing cost.3.Pay-for-knowledge plans, which encourage

employees to gain new knowledge or skills. E.g, extra payment for certain training hours.


Compensation and Benefits (cont’d)

• Benefits Programs: can be mandatory or discretionary.

–Mandatory (required by law)1. Social Security retirement benefits2. Workers’ compensation insurance



–Discretionary (optional)1. Health, life, and disability insurance2. Paid Vacations and holidays (Paid

Time Off).3. Employee assistance programs4. Retirement (pension) plans



–Cafeteria benefits plans.

These plans set aside a certain amount of money for benefits for each employee, and those employees choose how they wish to spend those funds


The Legal Context of HRM

• Equal Employment Opportunity Laws

–Protect workers from unfair or inappropriate (non-job-related) discrimination in the workplace, e.g, manager bias to employee’s friend.


The Legal Context of HRM

Protected Classes in the Workplace

• Individuals sharing common characteristics as defined by law.

•Race, color, religion, gender, age, national origin, disability status, and status as a military veteran.


New Challenges in the Changing Workplace• Managing Workforce Diversity– Workforce diversity: includes, The range of

workers’ attitudes, values, beliefs, and behaviors that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics

– Organizations are recognizing that diversity can be a competitive advantage


Diversity in CanadaA. By 2017, visible minorities will form more

than 50 percent of the populations of Toronto and Vancouver.

B. • By 2017, 22 percent of the total Canadian population will be visible minorities.

C. In the past, organizations tended to work toward homogenizing their workforces, getting everyone to think and behave in similar ways.

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FIGURE 10.3a Distribution of the Labor Force by Race 1990 – 2050 in USA

FIGURE 10.3b Hispanic Share of Civilian Labor


Managing Knowledge Workers

A. KNOWLEDGE WORKERS are experts in specific fields like compute technology and engineering, who add value because of what they know, rather how long they have worked.

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New Challenges in the Changing Workplace (cont’d)

• Managing Knowledge Workers– Knowledge workers add value because of what

they know, they include:• Computer scientists• Physical scientists• Engineers

Hiring and retaining Hiring and retaining knowledge workers is a knowledge workers is a

critical HR challengecritical HR challenge


Discussion

please give two examples of knowledge workers who might be employed by a large ice-cream manufacturer.

Accountant- sales men- industrial engineer- factory manager.

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New Challenges in the Changing Workplace (cont’d)• Contingent Workers–A person who works for an organization on

something other than a permanent or full-time basis. These can include:

1. Independent contractors2. On-call workers3. Temporary employees, e.g, employing

through agencies.4. Contract and leased employees5. Part-time workers


Trends in Contingent Employment

A. Contingent employment is on the rise in Canada. Part-time employment in all categories was nearly 7 percent higher in 2009 than In 2005.

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Managing Contingent and Temporary Workers

• Managing Contingent and Temporary Workers. Some of these challenges include:

1. Careful planning for coordinated use of temporary workers

2. Understanding the advantages and disadvantages of contingent workers

3. Assessing the true cost of using contingent workers

4. Developing a strategy for integrating contingent workers into the organization


Contract

• Contract Issues, include:–Compensation

• Cost-of-living adjustment (COLA) clauses

• Wage reopener clauses/sections–Benefits–Job security–Management rights


Collective Bargaining (cont’d)• Union Tactics When Bargaining

sometimes Fails. What they use?1. Strike2. Picketing/ protest, e.g., go on the

media3. Boycott: Union members will not buy

products from a specific firm.4. Work slowdown e.g., call in sick


Collective Bargaining (cont’d)• Management Tactics When Bargaining Fails

1.Lockouts: Workers are locked out of company facilities.

2.Hiring strikebreakers who cross the picket/ strike lines.


MediationMediation

Voluntary ArbitrationVoluntary Arbitration

Compulsory ArbitrationCompulsory Arbitration

Collective Bargaining (cont’d)

Resolving DisputesResolving Disputes


Resolving DisputesResolving DisputesResolving union disputes includes:1.Mediation, where the parties sit down at

the bargaining table to try to work things out with a mediator or a third party.

2.Arbitration, either voluntary or compulsory, which calls for a third party to judge the situation and make a decision on the appropriate solution.

3.Some arbitration is binding, which means that both sides agree to abide by the arbitrator’s decision as law.

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BUSINESS ESSENTIALS, 6 TH EDITION EBERT Chapter 8: Managing Human Resources and labor Relations...

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