Contemporary Business Chapter 8: Human Resource Management PDF

Contemporary Business 18th Edition Louis E. Boone; David L. Kurtz; Susan Berston Chapter 8 Human Resource Management: From Recruitment to Labor Relations Learning Objectives 1. Explain the role of human resources: the people behind the people. 2. Describe re...

Contemporary Business 18th Edition Louis E. Boone; David L. Kurtz; Susan Berston Chapter 8 Human Resource Management: From Recruitment to Labor Relations Learning Objectives 1. Explain the role of human resources: the people behind the people. 2. Describe recruitment and selection. 3. Discuss orientation, training, and evaluation. 4. Describe compensation. 5. Discuss employee separation. 6. Explain the different methods for motivating employees. 7. Discuss labor–management relations. Copyright ©2019 John Wiley & Sons, I 2 nc. Human Resource Management To achieve a high level of job satisfaction and dedication among employees Attracts, develops, and retains employees to perform the jobs necessary to accomplish organizational objectives Plan for staffing needs Recruit and hire workers Provide for training and evaluate performance Determine compensation and benefits Oversee employee separation Copyright ©2019 John Wiley & Sons, 3 Inc. Human Resource Management Responsibilities Figure 8.1 Human Resource Management Responsibilities Copyright ©2019 John Wiley & Sons, 4 Inc. Objectives of HR Managers Providing qualified, well-trained employees for the organization Maximizing employee effectiveness in the organization Satisfying individual employee needs through monetary compensation, benefits, opportunities to advance, and job satisfaction Copyright ©2019 John Wiley & Sons, 5 Inc. Recruitment and Selection Recruiting techniques continue to evolve as technology advances. In addition to a company’s website, Internet recruiting is quick, efficient, and inexpensive. HR must be creative in searching for qualified employees. Businesses look both internally and externally. Copyright ©2019 John Wiley & Sons, 6 Inc. Steps in the Recruitment and Selection Process Figure 8.2 Steps in the Recruitment and Selection Process Copyright ©2019 John Wiley & Sons, 7 Inc. Orientation, Training, and Evaluation (1 of 2) Newly-hired employees complete an orientation program Includes information about company policies Describes employee rights and benefits Benefits/programs Employees may receive an employee manual Training programs provide skill building and knowledge. Types of training: On-the-Job Training Classroom and Computer-Based Training Management Development Copyright ©2019 John Wiley & Sons, 8 Inc. Performance Appraisals Performance appraisals are used to evaluate an employee’s job performance Feedback is intended to improve performance Decisions about compensation, promotion, training needs, transfers, and even termination are made One type of performance review is a 360-degree performance review To be effective, performance reviews should be: Linked to organizational goals Be based on objective criteria Take place in the form of a two-way conversation Copyright ©2019 John Wiley & Sons, 9 Inc. Compensation The amount employees are paid in money and benefits Impacts job satisfaction Wages refer to hourly pay (factory workers) Salaries refer to annual pay (professionals) Compensation decisions are based upon: What competitors are paying Government regulation Cost of Living Company profits Employee’s productivity Copyright ©2019 John Wiley & Sons, 10 Inc. Employee Benefits (1 of 2) In addition to wages and salaries, benefits to employees and their families as part of their compensation. They include: Vacation (sometimes unlimited) Retirement plans Profit-sharing Health insurance Gym memberships Child and elder care Tuition reimbursement Benefits required by law include Social Security and Medicare contributions Copyright ©2019 John Wiley & Sons, 11 Inc. Employee Separation The loss of an employee for any reason Voluntary turnover is when an employee resigns – many times, to take another job Exit interview – provides valuable information Involuntary turnover is when an employee is terminated due to poor job performance, unethical behavior, downsizing, or outsourcing Occurs when firms are forced to eliminate jobs A cost-cutting measure Copyright ©2019 John Wiley & Sons, 12 Inc. Goal-Setting Theory People will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement. Basic components: Goal specificity Goal difficulty Goal acceptance Performance feedback Figure 8.7 Components of Goal Setting Theory Copyright ©2019 John Wiley & Sons, 13 Inc. Management by Objective A goal-setting technique introduced by Peter Drucker Allows managers to focus on attainable goals and to achieve the best results based on the organization’s resources Aligns individual’s objectives with the goals of the organization, increasing overall organizational performance. Outlines tasks, goals, and contributions. A collaborative process between managers and employees Copyright ©2019 John Wiley & Sons, 14 Inc. Job Design & Motivation Three ways jobs can be restructured to be more motivating: Job enlargement: job design that expands an employee’s responsibilities by increasing the number and variety of tasks assigned to the worker Job enrichment: involves an expansion of job duties that empowers an employee to make decisions and learn new skills leading toward career growth Job rotation: involves systematically moving employees from one job to another. Copyright ©2019 John Wiley & Sons, 15 Inc. Managers’ Attitudes & Motivation Managers make two assumptions about employees: Theory X - assumes that employees dislike work and try to avoid it whenever possible, so management must coerce them to do their jobs. Theory Y - assumes that the typical person actually likes work and will seek and accept greater responsibility. William Ouchi’s Theory Z worker involvement is key to increased productivity for the company and improved quality of work life for employees. Copyright ©2019 John Wiley & Sons, 16 Inc. Labor Management Relations Labor Union – a group of workers who have banded together to achieve common goals in the areas of wages, hours, and working conditions Found at local, national, and international levels 11% of the nation’s full-time workforce belongs to labor unions 1/3 government workers, 8% of private sector Copyright ©2019 John Wiley & Sons, 17 Inc. Labor Legislation National Labor Relations Act of 1935 (Wagner Act) legalized collective bargaining and required employers to negotiate with elected representatives of their employees. Fair Labor Standards Act of 1938 set the initial federal minimum wage and maximum basic workweek for workers engaged in interstate commerce; outlawed child labor. Taft-Hartley Act of 1947 (Labor-Management Relations Act) limited unions’ power by prohibiting a variety of unfair practices, including coercing employees to join unions and coercing employers to discriminate against employees who are not union members. Landrum-Griffin Act of 1959 (Labor-Management Reporting and Disclosure Act) amended the Taft-Hartley Act to promote honesty and democracy in running unions’ internal affairs. Copyright ©2019 John Wiley & Sons, 18 Inc. Collective Bargaining Process of negotiation between management and union representatives, and issues can include: Wages Work Hours Benefits Union Activities and Responsibilities Layoffs Employee rights and seniority Copyright ©2019 John Wiley & Sons, 19 Inc. Competitive Tactics of Union and Management (2 of 2) Copyright ©2019 John Wiley & Sons, 20 Inc. Copyright Copyright © 2019 John Wiley & Sons, Inc. All rights reserved. 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