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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

11-7

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.

11-14

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

11-17

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

11-19

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.

11-29

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.

11-32

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

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