Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ١

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

Chapter Chapter 99Managing Human Resources and Labor Relations

Human Resource ManagementHuman Resource Management

Attracting, developing, and maintaining an effective workforce

A critical, bottom-line function!

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٢

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

Who is responsible for HRD?Who is responsible for HRD?

óDepends on the size of the organization.

steps of human resource planningsteps of human resource planning

.١Job analysis. The systematic review of jobs within an organization.

.٢Forecasting demand for labor within the organization, based on past human resource

usage, future organizational plans, and general economic trends.

.٣Forecasting the internal and external supply of labor.

.٤Matching demand with supply, and planning how to most effectively manage projected

shortfalls and surpluses.

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٣

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

Human Resource Planning ProcessHuman Resource Planning Process

Conduct analysisConduct analysis

Forecast Forecast demand demand for laborfor labor

Forecast Forecast internal supply internal supply

of laborof labor

Forecast Forecast external external supply of supply of

laborlaborDevelop plan to Develop plan to match demand match demand

with supplywith supply

Job AnalysisJob AnalysisSystematic Review of Jobs Within a FirmSystematic Review of Jobs Within a Firm

Job DescriptionJob DescriptionResponsibilities and working conditions, plus tools, Responsibilities and working conditions, plus tools,

materials and equipment to perform the jobmaterials and equipment to perform the job

Job SpecificationJob Specification\\requirement requirement Skills, abilities,Skills, abilities, and credentialsand credentials\\qualifications qualifications needed to perform the jobneeded to perform the job

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٤

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

discussion discussion

óWhy job description is necessary? .١Avoid overlapped and duplications..٢Achieve employees high morals. .٣Responsibility is clearly identified.

Forecasting Labor SupplyForecasting Labor Supply

InternalInternal ForecastingForecasting◦◦Replacement ChartsReplacement Charts

◦◦Skills InventoriesSkills Inventories

ExternalExternal ForecastingForecasting◦◦State Employment State Employment

CommissionsCommissions

◦◦Government ReportsGovernment Reports

◦◦College InformationCollege Information

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٥

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

Forecasting Labor SupplyForecasting Labor Supplyómeans determining the number and Forecasting the internal labor supply

type of employees who will be in the firm at some future date.ómanagement tools:١.: List each key management position, who occupies it, Replacement charts

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

٢.: Computerized information systems containing Skills inventoriesinformation about each employee’s education, work experience, and career

aspirations.óForecasting the external labor supply means determining the number and

type of employees who will be available for hiring from the labor market at sources can help:large.

.١State employment commissions e.g. job centers.

.٢Government reports

.٣College information regarding enrollment in various majors

Managing a Projected Shortfall how? Managing a Projected Shortfall how?

óHire new employees, if people are indeed available in the external market.

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

óRetrain and transfer current employees into understaffed areas, providing a morale boost to strong employees.

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

The creative solution: Develop and install productivity enhancing The creative solution: Develop and install productivity enhancing systemssystems

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٦

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

External RecruitingExternal RecruitingAttracting outside Attracting outside candidates to apply candidates to apply for jobsfor jobs

RecruitingRecruitingAttracting Qualified Candidates to Apply for a JobAttracting Qualified Candidates to Apply for a Job

Internal RecruitingInternal RecruitingConsidering current Considering current employees for new employees for new

positionspositionsWhat are the What are the strengths and strengths and weaknesses of weaknesses of each approach?each approach?

RecruitingRecruitingó: Attracting qualified candidates to Recruiting

apply for the jobs an organization is seeking to fill. Recruiting can be either internal or

external. ١.: Considering current Internal recruiting

employees for new positions. Tools may include job postings, skills inventories, and

recommendations from managers.٢.: Attracting outside External recruiting

candidates to apply for jobs. Tools may include advertising, campus interviews, employment

agencies, executive search firms, and referrals from current employees.

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٧

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

Discussion Discussion

óWhat are the strengths and weaknesses of the internal and external recruitment?

Selecting Human ResourcesSelecting Human Resources١.: applications are often used to screen Application forms

out applicants who do not merit further attention.٢.: Many organizations test ability, skill, Tests

aptitude\ability, or knowledge that is relevant to a specific job. Occasionally, organizations also test general

intelligence and personality. Other types of tests include polygraphs (i.e. lie detector tests).

٣.: Interviews are very popular, but not always Interviewspredictive of job success because of potential bias on

the part of interviewers. Structured interviews—when all interviewers ask all candidates the same questions—

improve the validity of interviews as a selection technique.

ó: How effectively does the information you Validitygather predict the future performance of a candidate?

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٨

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

Developing the Workforce through training Developing the Workforce through training

ó: Conducted while the employee is at job training-the-Onwork. Can be either formal or informal.

ó: Takes place away from the worksite, job training-the-Offtypically in a classroom setting.

ó: Performed in a simulated environment Vestibule training(e.g. often used to train pilots, or machine-operators).

ó: Evaluating job evaluation\Performance appraisalperformance to determine effectiveness. Appraisals are often used to determine raises, promotions, demotions,

and firings.

Compensation and BenefitsCompensation and BenefitsóA major factor in attracting and retaining skilled

employees is a organization’s compensation system:

ó: The total package it offers Definitionemployees in return for their labor.

óIn determining compensation, companies usually start by examining the compensation offered by

their competitors.ó: Money paid for time worked. Usually Wages

expressed on an hourly basis.ó: Money paid for accomplishing a specific Salary

job. Usually expressed on a yearly basis.

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٩

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

BenefitsBenefitsCompensation Other Than Wages and SalariesCompensation Other Than Wages and Salaries

Optional Benefits, to workerOptional Benefits, to worker◦◦Retirement plans: provide pensionsRetirement plans: provide pensions◦◦Health, life, & disability insuranceHealth, life, & disability insurance◦◦Vacations & holidaysVacations & holidays◦◦Counseling servicesCounseling services

Mandatory BenefitsMandatory BenefitsSocial securitySocial security

Workers’ compensationWorkers’ compensation

Incentive programsIncentive programsóThey are designed to motivate high

performance. They include:.١Bonus: paid when they sell certain

number of goods or services for the year.

.٢Merit salary system: individual incentives linking compensations to performance in

nonsales jobs. E.g., CEO receive stock options as incentives for his managerial

talent.

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ١٠

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

Equal OpportunityEqual OpportunityUnfairUnfair Discrimination Is Not LegalDiscrimination Is Not Legal

Equal Opportunity LawsEqual Opportunity LawsProtect workers from discrimination based on prejudice Protect workers from discrimination based on prejudice

Protected ClassProtected ClassPeople with common characteristics as indicated by lawPeople with common characteristics as indicated by law

Equal Employment Opportunity Commission Equal Employment Opportunity Commission (EEOC):(EEOC):

Federal agency that enforces discriminationFederal agency that enforces discrimination--related lawsrelated laws

Affirmative ActionAffirmative ActionPlan to hire and develop members of protected classesPlan to hire and develop members of protected classes

Managing Knowledge WorkersManaging Knowledge Workers

Knowledge workers add value because of what they know

◦Computer Scientists

◦Physical Scientists

◦Engineers

Hiring and retaining knowledge workers is a critical HR challenge

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ١١

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

Developing a ManagementStrategy

AssessingTrue Costs

UnderstandingPros & Cons

Contingent WorkersContingent WorkersA Rapidly Growing TrendA Rapidly Growing Trend

Management challenges:

CarefulPlanning

Labor RelationsManaging unionized

employees

Managing Organized LaborManaging Organized Labor

Labor UnionLabor UnionPeople working together to achieve shared jobPeople working together to achieve shared job--related related

goalsgoals

Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ١٢

Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin

Chapter ReviewChapter Review

óDiscuss important changes in the contemporary workplace

óExplain why workers unionize and discuss the collective bargaining process