Business Policy & Strategy Chapter 11

Human Resources

Murdick, Moor, Babson & Tomlinson

Sixth Edition, 2000

Functional Area – Human Resources

Changing Environment

Human Resource Manager (HRM)

Identifying Problem Areas

Relating People with Problems

Checklist for Analysis

Most problems in businesses are people problems

That’s why HR is so important.

But it is not what it used to be!

Changing Environment

Workforce 75% Services 50% Women by

2005

Social Factors Better Educated Low Tolerance

Social Changes Drug abuse Alcoholism Aging workforce Sexual harassment

(Beer company lost suit awarding $24 Million dollars!)

Conditional Employment

Labor Management Relations15% Manufacturing is unionizedLess Unionizing in recent elections but

some increase in the services area

Legal2-3 Lawyers per 100 PeopleLaw Suits too Costly

Conditions of Employment

ProductivityWorkers ControlReward System

Computer ImpactsHigh Volume Record keepingHigher Technology/Higher EducationAble to search by key words/skills

Conditions of Employment

Health and Safety (OSHA)

Job security – seniority versus merit

Flex time, Changing work week

Part-time employment

Health, Safety & Security

HealthEmployee assistance programs, health

policies, stress management, smoking policies, preventative screenings,

SafetyAccidents, inspections (OSHA 100 report)

SecurityControls, theft, fraud, investigations

Human Resource Manager

What are they concerned with? Proposing concepts, means, and policies for

increasing productivity as part of company

strategy.

Keeping line managers abreast of the legal

environment as it pertains to managing

people.

Human Resource Manager

What are they concerned with?

Decision making related to managing

personnel, keeping records, and preparing

reports related to human resource

management.

HRM Functional Activities

Planning for Human Resource Needs

Work Design and Job Analysis

Recruitment of Candidates

Organization Development

Selection Criteria

Academic Tests

Motivation TestsPersonal ValuesSelf-MotivationCareer PerformanceLife Purpose

Selection Criteria

Tests to Ensure Applicants can perform the essential duties of the job. For example, fast food restaurants may require applicants to lift 50# bags as many of the material (frozen French fries) are very heavy.

Job tests must be proven to be linked to performance to be legally used

Recruitment

Types of recruitment programs:Continuous or intermittent

From within or outside

EEO and Affirmative Action Policies

Identified sources of candidates

Adequate job specifications

Cost-effective

Work Design & Job Analysis

Clearly defined job qualifications

Claims of discrimination

“Comparable Worth”

Compensation and appraisal

Staffing

Affirmative action and EEO

Recruitment

Selection

Career planning & development

Organizational exit (interviews)

HRM Functional Activities

Developing Communications Formal mass communications system

Informal communications

Person to person system Up and down the organization

Individual Training and Development Inexperienced

Entry level or Recent graduates Trained

Interns Outside the company

Career Management

ApproachesNothing “Ask” BasisPromote

Different PoliciesHire young and train? Hire experience?High Turnover (soft costs)Low Payroll (hard costs)

HRM Functional Activities

Appraising Performance

360 degree

Monthly (informal) & semi-annual (formal)

Compensation and BenefitsWage Rates Minimum Wage entry level or Above Minimum

Compensation Comparison to Industry Higher Lower Same Meet, lead or lag the market rate

HRM Functional ActivitiesLabor-Management Relations and Collective Bargaining

Measuring and ReportingStatusProblemsTrendsMaking recommendations for the above

Non-Financial Rewards

EXTRINSIC

Paid vacations

Life insurance

Retirement program

Health insurance Cafeteria approach

Flexible approach Employee specific

INTRINSIC

Internal rewards such as the feeling of a job well done, of accomplishing something, etc.

Certification in the HRM field

Professional in Human Resources Certification through Society for Human Resource Management (SHRM)

Senior Professional In Human Resources CertificationCertification Received Through the HR

Certification Institute

Identifying Problem AreasMost Business Problems:Misplaced people in managementOften top management

Human Resources ManagementLess understoodPoorly executed

Identifying Problem AreasStep 1 – Identify who/what process is causing the problem?

Step 2 – Shift people to positions where:The firm can build on their strengthsWork to improve on their weaknesses or they

must be terminated.

Identifying Problem Areas

Generally, it’s the SYSTEM not the people

that are the problems so….

Management Training and DevelopmentConduct on-the-job coaching

Brief on-site or outside seminars

Management development programs

Linking People With ProblemsIn-Depth InterviewsKey people connected with problem

Weak Link Several People or Everyone Involved

Personal Conflicts to Surface Lack/Block of Communication Sabotage

Linking People With Problems

Start with SymptomsWork Backwards to Identify Responsible

Party(s)

Evaluate ExecutivesBackground and PerformanceMajor Decisions, Contributions, and MistakesViews and Philosophies

Linking People With Problems

Relate the Individual to all Problem Areas

Analyze ProblemRecommend Action for Each Person

Identify Individual’s Potential

October 24, 2000

Checklist for Analysis

Work Design and Job Analysis

The Legal Environment

Comparable Worth

Functional Job Analysis

Performance Appraisal and

Compensation

October 24, 2000

Checklist for Analysis

Developing Communications

Formal Communication System

Informal Communication System

Person-to-Person Communication

October 24, 2000

Checklist for Analysis

Compensation and Benefits

The Reward System

Achieve Personal Objectives

Financial and Non-Financial

Rewards

October 24, 2000

Checklist for AnalysisAutomation in Human Resource ManagementEfficiency in Analysis and Performance

EvaluationMaintenance Records

Vacation Sick Leave Insurance