Human Resource Management (HRM)

• Human resource management (HRM) attracts, develops, and retains employees.
• HRM aims to provide qualified employees, maximize their effectiveness, and satisfy individual needs.

Human Resource Responsibilities

• Planning for staffing needs
• Employee recruitment and selection
• Employee training and performance evaluation
• Employee compensation and benefits
• Employee separation

Recruitment and Selection

• Recruiting evolves with technology, making internet recruiting quick and inexpensive.
• Websites like monster.com and social networking sites provide a large pool of job seekers.
• HR departments use both internal and external recruitment strategies.

Selecting and Hiring Employees

• Hiring must comply with legal requirements, including the Civil Rights Act of 1964 and the Americans with Disabilities Act.
• Equal Employment Opportunity programs are essential.
• Failure to follow legal requirements can lead to litigation.
• Hiring can be costly, and some employers use employment tests.

Orientation and Training

• Newly hired employees undergo orientation programs.
• Orientation informs employees about company policies, benefits and programs via employee manuals.
• Training programs include on-the-job, classroom, and computer-based training, and management development.

Performance Appraisals

• Performance appraisal is the evaluation of and feedback on an employee's job performance.
• Some firms use peer reviews or 360-degree reviews involving coworkers, supervisors, team members, subordinates, and customers.

Compensation

• Wages are based on an hourly rate or output.
• Salary is calculated periodically, such as weekly or monthly.
• Compensation decisions are based on factors like competitive pay, regulations, cost of living, company profits, and productivity.

Incentive Compensation

• Profit Sharing: Bonuses are based on company profits.
• Gain Sharing: Bonuses are based on productivity gains, cost savings, or quality improvements.
• Lump-Sum Bonus: One-time cash payment or stock options based on performance.
• Pay for Knowledge: Salary increases are based on learning new job tasks.

Employee Benefits

• Employee benefits include vacation, retirement plans, health insurance, gym memberships, child care, and tuition reimbursement.
• Benefits constitute 30% of total employee compensation.
• Some benefits are required by law, such as Social Security, Medicare, unemployment insurance, and workers' compensation.
• Health care costs are shifting to workers, and retirement plans are a major concern for businesses.

Employee Compensation Costs

• Wages and salaries make up 70.8% of total employee compensation.
• Benefits make up 29.2% of total employee compensation.
• Paid leave is 6.8%.
• Supplemental pay is 3.0%.
• Insurance is 7.8%.
• Health benefits are 7.3%.
• Retirement and savings are 3.4%.
• Legally required benefits are 8.2%.

Flexible Benefits

• Employees can choose from a range of benefit options, including medical, dental, vision, life, and disability insurance.
• Flexible time off policies replace set holidays, vacation, and sick days.
• 56% of companies use Paid Time Off programs, reducing unscheduled absences.

Flexible Work

• Flexible work allows employees to adjust work hours and locations to suit their needs.
• Flextime allows employees to set their own work hours within constraints.
• A compressed workweek allows employees to work the regular number of hours in fewer days.
• Job sharing allows two or more employees to divide a single job.
• Home-based work programs (telecommuting) allow employees to work from home.

Employee Separation

• Voluntary turnover occurs when employees leave for new opportunities, relocation, or retirement.
• Exit interviews are conducted to understand why employees voluntarily leave.
• Successful companies focus on retaining their best workers.
• Involuntary turnover occurs when employers terminate employees for poor performance, negative attitudes, or misconduct
• Reasons for termination must be carefully documented.

Downsizing and Outsourcing

• Downsizing reduces the number of employees.
• Downsizing has negative effects such as anxiety, health problems, and reduced productivity among remaining workers.
• Downsizing also involves severance packages and has a domino effect on the local economy.
• Outsourcing transfers jobs from inside to outside the firm.
• Outsourcing helps companies save expenses and remain flexible for non-core functions.

Motivating Employees

• Motivation starts with good employee morale regarding their employer and job.
• High morale results when workers feel valued, heard, and empowered.
• Poor morale results in absenteeism, turnover, and lack of motivation.

Maslow's Hierarchy of Needs

• Maslow's Hierarchy includes five levels of needs aimed to be satisfied.
• A satisfied need isn't a motivator, only unsatisfied needs influence behavior.
• Needs are arranged in a hierarchy, where satisfying one leads to another.
• Levels include physiological, safety, social, esteem, and self-actualization needs.

Herzberg's Two-Factor Theory

• Hygiene factors result in satisfaction; includes job environment, salary, job security, personal life, working conditions, status, interpersonal relations, supervision, and company policies.
• Motivator factors produce high motivation if present; includes achievement, recognition, advancement, the job itself, growth opportunities, and responsibility.

Expectancy and Equity Theory

• Expectancy Theory evaluates the likelihood that efforts will yield desired results, and the degree to which those results are wanted.
• Equity Theory refers to an individual's perception of fair and equitable treatment.

Goal-Setting Theory

• A goal is a target or objective that someone tries to accomplish.
• Goal-setting theory motivates people by accepting specific, challenging goals to improve performance.

Management by Objective

• Management by Objective (MBO) is a systematic approach for managers to focus on attainable goals based on resources.
• MBO motivates by aligning individual objectives with organizational goals.
• MBO principles include defining overall organizational goals, the series of related organizations, goals, and objectives.
• MBO principles include specific objectives to each individual.
• MBO principles include participative decision making.
• MBO principles include setting a period time accomplish goals.
• MBO principles include monitoring performance and giving feedback.

Job Design and Motivation

• Job enlargement expands responsibilities by increasing the number and variety of tasks assigned to a worker.
• Job enrichment expands job duties to empower employees to make decisions and learn new skills for career growth.
• Job rotation involves systematically moving employees from one job to another.

Managers Attitudes and Motivation

• Theory X is management belief that employees dislike work and must be coerced.
• Theory Y is management belief that employees like work and will seek responsibility.
• Theory Z is management belief that worker involvement increases productivity and improves quality of work life.

Labor-Management Relations

• A labor union is a group of workers banded together to achieve common goals related to wages, hours, and working conditions.
• Unions exist at local, national, and international levels.
• 12% of the workforce belongs to labor unions.

Labor Legislation

• National Labor Relations Act of 1935 (Wagner Act) legalized collective bargaining.
• Fair Labor Standards Act of 1938 set the minimum wage and maximum workweek, outlawing child labor.
• Taft-Hartley Act of 1947 limited unions' power.
• Landrum-Griffin Act of 1959 promoted honesty and democracy in unions.

Collective Bargaining Process

• Collective bargaining is the negotiation between management and union representatives.
• Issues include wages, work hours, benefits, union activities, grievance handling, layoffs, and employee rights.

Settling Labor-Management Disputes

• Most negotiations result in signed agreements without work stoppages.
• Mediation uses a third party for recommendations.
• Arbitration adds a third party who renders a legally binding decision.

Competitive Tactics of Unions and Management

• Union tactics include strikes (temporary work stoppages), picketing (public protest), and boycotts.
• Management tactics include lockouts (closing the firm).

Future of Labor Unions

• Union membership is declining due to shifts from manufacturing to information industries.
• 8% of private-sector workers are union members, down from 17% in 1983.
• 52% of union members are government employees.
• Unions need to be more flexible and adapt to the global economy.