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Chapter TwelveChapter TwelveManagingHuman Resources
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
11-3
The Nature of Human Resources Management (HRM)
HRM:All activities involved in determining an organization’s human resource needs, as well as acquiring, training, and compensating people to fill those needs
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-4
Planning for Human Resources Needs
Typical HR Issues:How many employees?
What skills are needed to satisfy plans?
Availability of people in the workforce?
What qualifications must employees have?
Cost of staffing?
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-5
Processes of Job Analysis
Job Analysis:The determination through observation and study, of pertinent information about a job, including specific tasks and necessary abilities, knowledge, and skills
Job Description:The formal, written description of a specific job, such as the job title, tasks to be performed, physical and mental skills required, duties, and responsibilities
Job Specification:The written description of the qualifications necessary for a specific job, such as education, experience, personal characteristics, and physical characteristics
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-6
Recruiting & Selecting New Employees
Recruiting
forming a pool qualified applicants from which management can select employees
Selection
the process of collecting information about applicants and using thatinformation to make hiring decisions
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Recruiting New Employees
InternalThe organization’s current employees
ExternalAdvertisements in newspapers and professional journalsEmployment agenciesColleges, vocational schoolsRecommendations from current employeesCompeting firmsUnsolicited applicationsOnline
Did You Know? Several years ago, 21% of companies said they recruited online. Experts say it over 80% today.
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-8
The Selection Process
JOB
Application
Interview
Testing
Reference Checking
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-9
Interviewing Tips
11-10
Top 10 Interview Questions
11-11
Myers-Briggs Type Indicator Categories
Source: Christopher Caggiano, “Psycho Path,” Inc., July 1998, p. 81. Reprinted with permission of Inc. Magazine, Goldhirsh Group, Inc. Reproduced by permission of the publisher via Copyright Clearance Center, Inc.
11-12
Legal Issues in Recruiting and Selecting New Employees
Fair Labor Standards Act (1938)Sets minimum wages and overtime rates (for any time over 40 hours per week).
Equal Pay Act (1963)Requires that men and women who do equal work be paid equally.
Title VII of the Civil rights Act (1964)Created the Equal Employment Opportunity Commission Mandates affirmative action programsOutlaws discrimination on the basis of sex, race, color, or national origin
Did You Know? 40+ years after the Civil Rights Act was passed, corporate officers are only 8.2% African American,5% Hispanic, and 12.5% women.
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-13
Legislation Regulating Hiring and Compensation Practices
Age Discrimination in Employment Act (1967)
Outlaws employment practices that discriminate on the basis of age
Americans with Disabilities ActPrevents discrimination against disabled persons
Source: Annie Finnigan, “Different Strokes,” Working Woman, April 2001, p. 42.
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Affirmative Action
Legally mandated plans that try to increase job opportunities for minority groups by:
Analyzing the current pool of workers
Identifying areas where women and minorities are underrepresented
Establishing specific hiring and promotion goals, with target dates, for addressing discrepancy
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-15
Developing the Workforce
Employee orientationFamiliarizes the newly hired employees with fellow workers, company procedures, and the physical properties of the company.
Employee training and developmentOn-the-jobClassroom
Assessing employee performancePerformance appraisals
Did You Know? Internet-based training is expected to grow to be a $14.5 billion market by 2004.
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-16
Training & Development
Training
teaching employees to do specific job tasks through either classroom development or on-the-job experience
Development
training that augments the skills and knowledge of managers and professionals
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Performance Characteristics
Productivity
Quality
Job Knowledge
Problem Solving
Communication
Initiative
Adaptability
Planning & Organization skills
Teamwork & Cooperation
Judgement
Dependability
Creativity
Sales
Costumer Service
Leadership
Financial Management
11-18
Employee Turnover
Promotion an advancement
to a higher-level job with increased authority, responsibility and pay
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Occurs when employees quit or are fired and must be replaced by new employees
Transfer a move to
another job within the company at essentially the same level and wage
Separation employment
changes involving:
- resignation
- retirement
- termination
- lay off
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Compensating the Work Force
Time Wages
Financial award based on number of hours worked
Piece Wages
Financial award based on the output attained by the employee
Commission
Payment to an employee of a fixed amount or a percentage of the employee’s sales
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-20
Compensating the Workforce
SalaryFinancial award calculated on a weekly, monthly, or annual basis
BonusAn addition to regular compensation for exceptional performance or in appreciation for good work
Profit sharingDistribution of percentage of company profit to employees; sometimes distribution is in the form of company stock
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-21
Hourly Wages: U.S. vs. India
U.S. Occupation India
$12.57 Telephone Operator Under $1.00
$13.17 Medical (Health Record) Technologists/Transcriptionists
$1.50-2.00
$15.17 Payroll Clerk $1.50-2.00
$17.86 Legal Assistant/Paralegal $6.00-8.00
$23.35 Accountant $6.00-15.00
$33.00-35.00 Financial Researcher/Analyst $6.00-15.00
Matthew Grimm (2004) “Profits vs. Jobs”. American Demographics, June 1, www.demographics.com.microsites.magazineartcle.asp? …accessed August 2, 2004.
11-22
Benefits
Nonfinancial forms of compensation provided to employees such as:
Pension plans for retirement
Health, disability, and life insurance
Holidays and paid days off for vacation or illness
Credit union membership
Health programs
Child care
Elder care
Assistance with adoption
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-23
Increasing Employee Satisfaction
Source: “Hewitt Study Shows Work/Life Benefits Continue to Grow Despite Slowing Economy,” Hewitt Associates LLC press release, April 23, 2001.
Benefits: % Offering
Child care assistance 91
Elder care programs 49
Flexible schedules 73Adoption benefits 32Personal/professional growth 78
Financial security programs 41
Group/discounted purchases 39
On-site personal services 57
Casual dress 66
11-24
Managing Unionized Employees
Labor Unions:Employee organizations formed to deal with employers to achieve better pay, hours, and working conditions
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-25
Managing Unionized Labor
Collective Bargaining:The negotiation process through which management and unions reach agreement about compensation, working hours, and working conditions for a bargaining unit
Labor Contract:The formal, written document that spells out the relationship between the union and management for a specified period of time – usually two or three years
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-26
Resolving Disputes
Labor’s Tactics Strikes
Picketing
Boycott
Management’s Tactics
Lockout
Strikebreakers/hiringreplacements
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-27
Outside Resolution
ConciliationThe conciliator’s goal is to get both parties to focus on the issues and to prevent negotiations from breaking down
MediationThe mediator’s role is to suggest or propose a solution to the problem
ArbitrationThe arbitrator’s solution is legally binding and enforceable
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-28
Outside Resolution
PendamaiPihak ketiga yang dipercayai dimana menyediakan sambungan komunikasi informal antara negosiator dan lawannya.
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Outside ResolutionMediator
Pihak ketiga yang bersifat netral dan memfasilitasi penyelesaian perundingan dengan menggunakan penalaran, persuasi dan saran-saran sebagai alternatif.
Arbitrator
Pihak ketiga yang memiliki kewenangan untuk memaksakan kesepakatan.
11-30
Workforce Diversity
Understanding diversity means recognizing and accepting differences as well as valuing the unique perspectives such differences can bring to the workplace
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
11-31
Characteristics of Diversity
Source: Marilyn Loden and Judy B. Rosener, Workforce America! Managing Employee Diversity as a Vital Resource, 1991, p. 20. Used with permission. Copyright © 1991 Richard D. Irwin, a Times Mirror Higher Education Group, Inc., company.
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The Benefits of Workforce Diversity
1. More productive use of a company’s human resources2. Reduced conflict among employees of different
backgrounds as they learn to respect each other’s differences
3. More productive working relationships4. Increased commitment to and sharing of organizational
goals among diverse employees at all organizational levels
5. Increased innovation and creativity6. Increased ability to serve the needs of an increasingly
diverse customer base
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved