Human Resource Management PDF

Because learning changes everything. ® Chapter 11 Human Resource Management: Finding and Keeping the Best Employees Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Cha...

Because learning changes everything. ® Chapter 11 Human Resource Management: Finding and Keeping the Best Employees Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Chapter Contents Working with People Is Just the Beginning Laws Affecting Human Resource Management Determining a Firm’s Human Resource Needs Recruiting Employees from a Diverse Population Selecting Employees Who Will Be Productive Training and Developing Employees for Optimum Performance Appraising Employee Performance to Get Optimum Results Compensating Employees: Attracting and Keeping the Best Scheduling Employees to Meet Organizational and Employee Needs Moving Employees Up, Over, and Out Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Learning Objectives LO 11-1 Explain the importance of human resource management, and describe current issues in managing human resources. LO 11-2 Illustrate the effects of legislation on human resource management. LO 11-3 Summarize the five steps in human resource planning. LO 11-4 Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging. LO 11-5 Outline the six steps in selecting employees. LO 11-6 Illustrate employee training and development methods. LO 11-7 Trace the six steps in appraising employee performance. LO 11-8 Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. LO 11-9 Demonstrate how managers use scheduling plans to adapt to workers’ needs. LO 11-10 Describe how employees can move through a company: promotion, reassignment, termination, and retirement. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Working with People Is Just the Beginning 1 Human Resource Management (HRM) The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals. HRM’s role has grown because of: Increased recognition of employees as a resource. Changes in law that rewrote old workplace practices. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.1 Human Resource Management As this figure shows, human resource management is more than hiring and firing personnel. All activities are designed to achieve organizational goals within the laws that affect human resource management. Jump to long description in appendix Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Working with People Is Just the Beginning 2 Developing the Ultimate Resource Service and high-tech manufacturing requires employees with highly technical job skills. Such workers are scarce, making recruiting and retention more important and more difficult. The human resource job is now the job of all managers in an organization. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Working with People Is Just the Beginning 3 The Human Resource Challenge Uncertainty in global politics. Increased demand for temporary or part- Technology. time work. Expanding global markets with low-wage Multigenerational workforce. workers. Shortages of trained workers in growth Increased benefit demands and low costs. areas and construction trades. Concern over child and elder care, health Growing percentage of undereducated and and mental well-being, workplace violence. unprepared new workers. Changing health care regulations Baby Boomer brain drain. A decreased sense of employee loyalty. Increasing number of single-parent and two-income families. Automated HRM systems. Change in attitude towards work. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Laws Affecting Human Resource Management 1 Civil Rights Act of 1964 Title VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on: Race. National origin. Religion. Age. Creed. Sexual orientation. Sex. Gender identity. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Laws Affecting Human Resource Management 2 1972 Equal Employment Opportunity Act (EEOA) It strengthened the Equal Employment Opportunity Commission (EEOC) by giving it broad powers. Right to issue workplace guidelines for acceptable employer conduct. Can mandate specific recordkeeping procedures. The power of enforcement for its mandates. Enforces affirmative action — Employment activities designed to “right past wrongs” by increasing opportunities for minorities and women. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Laws Affecting Human Resource Management 3 Office of Federal Contract Compliance Programs (OFCCP) Ensures that employers doing business with the federal government comply with the nondiscrimination and affirmative action laws. Civil Rights Act of 1991 Amended Title VII and gave victims of discrimination the right to a jury trial and possible damages. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Laws Affecting Human Resource Management 4 Laws Protecting Employees with Disabilities and Older Employees Americans with Disabilities Act of 1990 (ADA): Requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities. Passage in 2008 of Americans with Disabilities Amendments Act expanded protection. 2011 saw regulations that widen the range of disabilities covered by the ADA and shift the burden of proof of disability from employees to employers. Age Discrimination in Employment Act (ADEA): Protects workers 40 and over from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Laws Affecting Human Resource Management 5 Effects of Legislation Employers must know the law and act accordingly. Legislation affects all areas of HRM. Changes in law and legislation occur regularly. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  TESTPREP 1 What is human resource management? What did Title VII of the Civil Rights Act of 1964 achieve? What is the EEOC, and what was the intention of affirmative action? What does accommodations mean in the Americans with Disabilities Act of 1990? Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Determining a Firm’s Human Resource Needs 1 Human Resource Planning Process 1. Preparing a human resource inventory of employees. 2. Preparing a job analysis. 3. Assessing future human resource demand. 4. Assessing future labor supply. 5. Establishing a strategic plan. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Determining a Firm’s Human Resource Needs 2 What’s a Job Analysis? Job analysis — A study of what is done by employees who hold various job titles. Includes: Job description — A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions. Job specifications — A written summary of the minimum qualifications required of workers to do a particular job. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.3 JOB ANALYSIS Observe current sales representatives doing the job. Job Analysis Discuss job with sales managers. Have current sales reps keep a diary of their activities. JOB DESCRIPTION (about the job) JOB SPECIFICATIONS (about the person) Primary objective is to sell company’s products to stores in Characteristics of the person qualifying for Territory Z. Duties include servicing accounts and maintaining this job include: positive relationships with clients. Responsibilities include: Two years’ sales experience. Introducing the new products to store managers in the Positive attitude. area. Good communication skills. Helping the store managers estimate the volume to order. High school diploma and two years of Negotiating prime shelf space. college credit. Explaining sales promotion activities to store managers. Stocking and maintaining shelves in stores that wish such service. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Recruiting Employees from a Diverse Population Recruitment The set of activities used to obtain a sufficient number of the right people at the right time. Human resource managers use both internal and external sources to recruit employees. Small businesses often make use of web sources like GlassDoor, Indeed, and LinkedIn to recruit employees. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.4 Employee Sources Internal sources are often given first consideration, so it’s useful to get a recommendation from a current employee of the firm for which you want to work. College placement offices are also an important source. Be sure to learn about such facilities early so that you can plan a strategy throughout your college career. Jump to long description in appendix Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Selecting Employees Who Will Be Productive 1 Selection The process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization. Steps in the selection process: 1. Obtaining complete application forms. 2. Conducting initial and follow-up interviews. 3. Giving employment tests. 4. Conducting background investigations. 5. Obtaining results from physical exams. 6. Establishing trial (probationary) periods. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Selecting Employees Who Will Be Productive 2 Hiring Contingent Workers Contingent workers — Workers who do not have the expectation of regular, full-time employment. Includes part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students. There are about 15 million contingent workers in the U.S., with the majority under age 25. Gig economy — A single project or task for which a worker is hired, often through a digital marketplace, to work on demand. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Selecting Employees Who Will Be Productive 3 Hiring Contingent Workers continued Companies hire contingent workers: They receive few benefits and lower When full-time workers are on leave. pay. During periods of peak demand. Many companies include college students as contingent workers. In uncertain economic times. Temporary staffing agencies. To save on employee benefits. To screen candidates for future employment. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  TESTPREP 2 What are the five steps in human resource planning? What factors make it difficult to recruit qualified employees? What are the six steps in the selection process? Who is considered a contingent worker, and why do companies hire such workers? Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Training and Developing Employees for Optimum Performance 1 Training and Development All attempts to improve productivity by increasing an employee’s ability to perform. Training focuses on short-term skills, where as development focuses on long- term abilities. Three steps: 1. Assessing organizational needs and employee skills to determine training needs. 2. Designing training activities to meet identified needs. 3. Evaluating the training’s effectiveness. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Training and Developing Employees for Optimum Performance 2 Most Common Training and Development Activities Orientation. On-the-job training. Apprenticeships. Off-the-job training. Online training. Vestibule training. Job simulation. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Training and Developing Employees for Optimum Performance 3 Management Development The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time. Management training includes: On-the-job coaching. Understudy positions. Job rotation. Off-the-job courses and training. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Training and Developing Employees for Optimum Performance 4 Networking The process of establishing and maintaining contacts with key managers in one’s own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems. Mentors — An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor. Networking and mentoring go beyond the work environment. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Training and Developing Employees for Optimum Performance 5 Diversity in Management Development Women and minorities are gaining networking advantages. Reasons to develop female and minority managers: 1. It isn’t about legality, morality, or morale but rather about bringing more talent in the door. 2. The best women and minorities will become harder to attract, so companies that commit to development have an edge. 3. Having more women and minorities at all levels lets businesses serve their women and minority customers better. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Appraising Employee Performance to Get Optimum Results 1 Performance Appraisal An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination. A 360-degree review gives managers opinions from people at different levels to get a more accurate idea of the worker’s abilities. Continuous performance reviews allow workers to receive and give continuous, real-time feedback that help employees meet goals (or leave the company) faster. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Appraising Employee Performance to Get Optimum Results 2 Six Steps of Performance Appraisals 1. Establishing performance standards that are understandable, measurable, and reasonable. 2. Clearly communicating those standards. 3. Evaluating performance against the standards. 4. Discussing the results with employees. 5. Taking corrective action. 6. Using the results to make decisions. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  TESTPREP 3 Name and describe four training techniques. What’s the primary purpose of a performance appraisal? What are the six steps in a performance appraisal? Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Compensating Employees: Attracting and Keeping the Best 1 Compensation A main tool companies use to attract qualified employees, and one of their largest operating costs. A managed and competitive compensation program helps: Attract the kinds of employees the business needs. Build employee incentive to work efficiently and productively. Keep valued employees from going to competitors or starting their own firm. Maintain a competitive market position by keeping costs low due to high productivity from a satisfied workforce. Provide employee financial security through wages and fringe benefits. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Compensating Employees: Attracting and Keeping the Best 2 Pay Systems The Hay method is based on job grades, each of which has a strict pay range. Market-based pay structures compensate people relative to the market value of their job, regardless of their level in the organization. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.5 Pay Systems 1 Jump to long description in appendix Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.5 Pay Systems 2 Jump to long description in appendix Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.5 Pay Systems 3 Jump to long description in appendix Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Compensating Employees: Attracting and Keeping the Best 3 Compensating Teams Team-based pay programs are more challenging than individual pay systems. The two most common methods for teams involve: Skill-based: Pay is increased as team members learn and apply new skills. (Eastman Chemical uses this system.) Gain-sharing: Pay is increased as performance increases compared to previous performance. (Nucor Steel uses this system.) Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Compensating Employees: Attracting and Keeping the Best 4 Fringe Benefits Benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages. Health care has been the most significant increase in fringe benefit costs. Fringe benefits include incentives like company cars, paid and unpaid sabbaticals, day care and elder care services, student loan debt payment, etc. Soft benefits include on-site haircuts, free meals at work, concierge services, etc. Cafeteria-style fringe benefits — Fringe benefit plan that allows employees to choose the benefits they want up to a certain dollar amount. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Scheduling Employees to Meet Organizational and Employee Needs 1 Flextime Plans Gives employees some freedom to choose which hours to work. Most flextime plans require core time. The period when all employees are expected to be at their job stations. Flextime is difficult to incorporate into shift work, and managers have to work longer hours. Communication among employees can also be difficult under flextime, and managers must be alert to any system abuses. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.6 A Flextime Chart At this company, employees can start work anytime between 6:30 and 9:30 a.m. They take a half hour for lunch anytime between 11:00 a.m. and 1:30 p.m. and can leave between 3:00 and 6:30 p.m. Everyone works an eight-hour day. The blue arrows show a typical employee’s flextime day. Jump to long description in appendix Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Scheduling Employees to Meet Organizational and Employee Needs 2 Flextime Plans continued Compressed workweek — An employee works the full number of hours, but in fewer than the standard number of days. Employees enjoy long weekends after working long days. Productivity is a concern. Nurses often work compressed workweeks. On-call scheduling entails employers calling in or canceling workers with little notice. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Scheduling Employees to Meet Organizational and Employee Needs 3 Home-Based Work 44 percent of Americans work from home at least once per week or more. Allows employees to choose their own hours, interrupt work for child care or other tasks, and take time out for personal reasons. Employers benefit because it can limit absences, increase productivity, and save money. Companies also offer “hot-desking,” or sharing a desk with other employees who work at different times. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.7 Benefits and Challenges of Home-Based Work 1 Benefits Challenges To Increases productivity due to Makes it more difficult to appraise job Organization fewer sick days, fewer absences, performance. higher job satisfaction, and higher work performance ratings. Can negatively affect the social network of the workplace and can make it difficult Broadens available talent pool. to promote team cohesiveness. Reduces costs of providing on- Complicates distribution of tasks (should site office space. office files, contact lists, and such be allowed to leave the office?) Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.7 Benefits and Challenges of Home-Based Work 2 Benefits Challenges To Makes more time available for work Can cause feeling of isolation from Individual and family by reducing or eliminating social network. commute time. Can raise concerns regarding Reduces expenses of buying and promotions and other rewards due to maintaining office clothes. being out of sight, out of mind. Avoids office politics. May diminish individual’s influence within company due to limited opportunity to Helps balance work and family. learn the corporate culture. Expands employment opportunities for individuals with disabilities. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.7 Benefits and Challenges of Home-Based Work 3 Benefits Challenges To Society Decreases traffic congestion. Increases need to resolve zoning regulations forbidding business Discourages community crime that deliveries in residential neighborhoods. might otherwise occur in bedroom communities. May reduce ability to interact with other people in a personal, intimate manner. Increases time available to build community ties. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Scheduling Employees to Meet Organizational and Employee Needs 4 Job-Sharing Plans Two or more part-time employees share one full-time job. Benefits: It provides employment opportunities for many people who cannot work full-time. Workers tend to be enthusiastic and productive. Absenteeism and tardiness are reduced. Employers can schedule part-time workers in peak demand periods. Experienced employees who might otherwise have retired are retained. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Scheduling Employees to Meet Organizational and Employee Needs 5 Job-Sharing Plans continued Disadvantages: Need to hire, train, motivate, and supervise at least twice as many people. Prorate some fringe benefits. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Moving Employees Up, Over, and Out 1 Promoting and Reassigning Employees Promotion improves morale and is cost-effective. Employees may move over, rather than up. Reassignment may motivate employees to stay with company. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Moving Employees Up, Over, and Out 2 Terminating Employees Uncertain economic conditions lead to layoffs and firings. Even when the economy is booming, employers are hesitant to hire full-time workers because of the cost of termination. Firing employees is more difficult for employers because of laws preventing termination for certain acts. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Figure 11.8 How to Avoid Wrongful Discharge Lawsuits Prepare before hiring by requiring recruits to sign a statement that retains management’s freedom to terminate at will. Don’t make unintentional promises by using such terms as permanent employment. Document reasons before firing and make sure you have an unquestionable business reason for the firing. Fire the worst first and be consistent in discipline. Buy out potential litigation by offering severance pay in exchange for a signed release from any claims. Be sure to give employees the true reasons they are being fired. If you do not, you cannot reveal it to a recruiter asking for a reference without risking a defamation lawsuit. Disclose the reasons for an employee’s dismissal to that person’s potential new employers. Source: Sean Peak, "How to Legally Fire and Employee," U.S. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. Chamber of Commerce, uschamber.com, January 31, 2020.  Moving Employees Up, Over, and Out 3 Retiring Employees Downsizing with early retirement. Can include one-time cash payments, known in some companies as golden handshakes. Increases morale of surviving employees. An increasing number of would-be retirees choose to keep working either because they enjoy it or because they lack the financial resources to retire. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  Moving Employees Up, Over, and Out 4 Losing Valued Employees Conducting exit interviews lets the company know the reasons for the employee leaving. Offboarding is the process surrounding employee exits. Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.  TESTPREP 4 Can you name and describe five alternative compensation techniques? What advantages do compensation plans such as profit sharing offer an organization? What are the benefits and challenges of flextime? Telecommuting? Job sharing? Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.