Human Resource Management Better Business 1st Edition Poatsy · Martin © 2010 Pearson Education,...

Human Resource Management

Better Business1st EditionPoatsy · Martin

© 2010 Pearson Education, Inc. 1

chapter9

Slide presentation prepared by Pam JansonStark State College of Technology

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.


Learning Objectives

1. What processes are involved in human resource management?

2. Why is the performance management process proven to be more effective than performance appraisals?

3. What are the main components of compensating and scheduling employees?

4. How does employee status change through promotions, transfers, retirement, and termination?

5. How does incorporating diversity affect the workforce?

6. What are the objectives, structures, and future of labor unions in the global business environment?


Human Resource Management

© 2010 Pearson Education, Inc. Publishing as Prentice Hall 4

Manpower Planning

Workforce Profile: Personnel inventory

o Ageo Educationo Trainingo Experienceo Specialized skillso Current positiono Previous positions

Forecasting:Based on

o Predicted saleso Current workforce skillso Technology changeso Use of temporary workerso Turnovero Retiremento Planned reassignments


Assess the supply of and demand for current and future employee

resources

Job Descriptions and Job Specifications


Internal Recruiting

• Methodso Company intraneto Staff notice boardso In-house newsletterso Staff meetings


Internal Recruiting

AdvantagesAdvantages

• Morale booster • Less risk• Faster• Less costly

• Morale booster • Less risk• Faster• Less costly

DisadvantagesDisadvantages

• Limited pool of candidates

• Creates cascading internal vacancies

• Might miss a “fresh perspective”

• Limited pool of candidates

• Creates cascading internal vacancies

• Might miss a “fresh perspective”


External Recruiting


Recruiting Challenges• One of the newer challenges is the use of technology

o Online job and resume posting siteso Web and video blogso Virtual job fairso Social networking technologieso Web 2.0 techniqueso Creating enhanced online job postings that stand

out• Sifting through these responses to find the right

person for the job can be time-consuming and burdensome

• Finding qualified candidates for critical positions is still a major challenge


The Hiring Process


Federal Laws that Impact Human Resource Management

• Federal Equal Employment Opportunity

• The Civil Rights Act of 1964• Americans with Disabilities Act • Age Discrimination in

Employment Act


Employee Training Benefits

• Increased job satisfaction, motivation, and morale among employees

• Greater efficiency in work, resulting in financial gain

• More effective use of new technologies and methods

• Development of new strategies and products

• Lower employee turnover • Fewer interpersonal conflicts and

better communication© 2010 Pearson Education, Inc. 13

Training Methods

• Orientation program• On-the-job training• Apprentice training

program• Programmed learning

approach• Simulation/vestibule

training• Online training


Management Development Programs: Training Techniques


Performance Appraisal Process

1. Determine standards that employees should aim for in their work.

2. Evaluate the employee’s performance in comparison with these standards.

3. Provide feedback to reduce and eliminate poor performance and improve or enhance positive performance.


A Sample Performance

Appraisal


Problems with Performance Appraisals

• Managers may shy away from them if they are not comfortable criticizing

• Managers may have difficulty quantifying performance

• The process does not always offer the opportunity to follow up

• With large time spans between appraisals, follow-up items may not occur


Performance Management

• An alternative to performance appraisals

• Combines goal setting, performance appraisal, and training and development into a unified and ongoing process

• Employees constantly receive feedback and opportunities for training and development


Compensation Strategies

• Salary• Wages• Incentive-

based paymento Commissions

• Bonuses


Retirement Plans and Other Financial Incentives

• 401(k) plans• Pension plans

o Defined benefit planso Defined contribution plans

• Profit sharing plans• Stock option plans• Employee stock purchase plans• Employee stock ownership plans

(ESOPs)© 2010 Pearson Education, Inc.

Publishing as Prentice Hall 21

Employee Benefits

• Benefits are non-cash compensation payment structures

• They can come in many forms:o Health and disability insuranceo Vacation and sick payo Retirement plans

• Flexible benefit plans o “Cafeteria plans”

• Work/life benefits© 2010 Pearson Education, Inc.


Alternative Scheduling Arrangements

• Alternative scheduling plans (flextime)

• Permanent part-time• Job sharing• Compressed work week• Telecommuting


Temporary and Contingent Workers

Benefits for the Company

• Allow more flexibility in workforce size

• Can use for absent employees or busy times

• Can provide specific skills for special projects

• Can evaluate temporary workers for full-time positions

Benefits for the Worker

• Flexibility• Variety• Learn and improve

skills• Evaluate company for

potential permanent employment

• Provide exposure to potential career/industry


Promotions and TransfersFrom the Employee

Perspective• Employees look to

increase their stature, responsibility, and pay through promotion

• Promotion may not always result in a positive situation if it is done with secrecy, unfairness, or arbitrariness

• Two career pathso Managemento “Individual

contributors”

From the Employer Perspective

• Employers like to promote from within when possible

• Management must ensure promotions are based on a distinct set of criteria such as seniority or competency

• Two promotion pathso Managemento “Individual

contributors”


Retirement

• Mandatory retiremento Historically, age 65o Nearly ¾ of workers would like to retire before

age 60o 7 out of 10 of workers plan to keep working past

retirement age• The major contributing factor is financial need

• Worker buyouts o Also called golden parachuteso Offer financial incentives for older workers to

retire© 2010 Pearson Education, Inc.


Terminating Employees

• Due to corporate downsizing, etc.o Outplacement services often offered

• Due to poor performance or policy violationo Employment at will

• Exceptions: discrimination, whistle-blowing, worker’s compensation

o Must have written record of issues leading to dismissal


Managing Workforce Diversity

• Cultural diversityo International expansiono Domestic hiring of international workers

• Religiono Provide for religious observations at worko Strive to avoid potential friction between

groups• Gender

o Gender-related issues have improved, but not gone away

• Ageo The benefits and challenges of an aging

workforce© 2010 Pearson Education, Inc.


Impact of Diversity

• View diversity as:o More than just a response to affirmative

action requirementso A competitive advantageo Mission-critical to the organization,

requiring:• Training• Executive accountability• Grass roots support such as mentorships


Labor and Union Issues

• Historically, labor unions were developed to protect workers from horrible working conditions

• Today, unions act as bargaining units to negotiate specific employment issues for groups of workerso Locals are created for specific industry,

company, region, or business sector


AFL-CIO

• American Federation of Labor (AFL) founded in 1886 to protect skilled workers

• Congress of Industrial Organization (CIO) formed in 1935 to represent entire industries

• Combined in 1955 and has 56 member unions today


Management/Labor Relations

• Collective bargaining process• If no agreement is reached:

o Mediationo Arbitration

• If negotiation breaks down:o Management may hire strikebreakers

or lockout union memberso Union members may boycott, strike

(and picket), or stage sick-outs


The State of Labor Unions

• The role of unions is declining in the U.S. because of: o Their success in improving

working conditions.o Decline in traditional

union industries.

• Unions are looking at international coordination to protect their interests


Trends in Employee Benefits

• Domestic-partner benefits• Paternity benefits• Adoption benefits


Chapter Summary

1.What processes are involved in human resource management?

2. Why is the performance management process proven to be more effective than performance appraisals?

3. What are the main components of compensating and scheduling employees?

4. How does employee status change through promotions, transfers, retirement, and termination?

5. How does incorporating diversity affect the workforce?

6. What are the objectives, structures, and future of labor unions in the global business environment?


Beyond the Book


External Recruiting

Advantages:• Provides new ideas and

fresh perspectives• May be more able to

initiate a turnaround• Brings in experienced

employees• May be less upsetting to

present organizational hierarchy

• Allows rapid growth• Can increase diversity

Disadvantages:• Takes longer and costs

more• Risk of candidate’s ability to

fit with rest of organization• Demoralizing for existing

employees • Outsider takes time to

become familiar with current systems

• Current organization members may fight new ideas


“Eighty Is the New Fifty”

• More executives are in their 70s, 80s, and even 90s

• There is still bias toward older workers in general

• Organizations have to learn to manage the older workforce

• Perceptions should change as the baby boomers age past the traditional retirement age and want to keep working


Rethinking Retirement

• Charles Schwab Corporation surveyed nearly 4,000 across four generations: o Silent Generation (age

63–83)o Boomers (age 44–62)o Generation X (age 32–

43)o Generation Y (age 21–

31)

• Survey conducted in March and April 2008

Some of the findings:o “Old age” doesn’t begin

until 75 or oldero Median net worth of retires

today is $250,000, but respondents believe they need at least $500,000

o Gen Y expects to provide 61% of retirement funds themselves vs. the Silent Generation at 32%

o Staying mentally active is the biggest reason for working after retirement

o 45% view retirement as a time to “give back”


Monster.com and Workforce Diversity

• Many companies look at managing a diverse workforce as a competitive advantage.

• Hiring workers that represent and understand emerging groups makes sense. o Hispanic Americans account for 15% of the

country’s total population. o The Hispanic population accounted for $489

billion in 2000 and is expected to be $1.2 trillion in 2012.

• Monster has created a “diversity database” to help job candidates highlight their cultural understanding, experiences, and knowledge.


The State of U.S. Workers

• The number receiving unemployment benefits in June 2008 rose to 3.1 million, the highest since 2004

• Labor is business’ biggest costo Wage growth has deceleratedo Average weekly earnings of production workers

were up 3.2% from June 2007 to June 2008 (4.6% in August 2006)

• In recent decades, labor unions have most power, companies have outsourced offshore and automated

• U.S. workers are getting squeezed with sharply rising prices for food and energy, but wages growing more slowly


Human Resources and the Green Movement: Work Less


• The U.S. leads the world in work and waste

• U.S. workers work 100+ more hours per year than in 1976o This has increased our productivity but

also our energy consumption and greenhouse gas emissions

• To help the Green Movement, companies should reinvent the work week

Human Resource Management Better Business 1st Edition Poatsy · Martin © 2010 Pearson Education,...

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