Managing Human Resources

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Managing Human Resources
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Learning Goals

• What is the human resource management process?
• How are human resource needs determined?
• How do human resource managers find good people
  to fill the jobs?
• What is the employee selection process?
• What types of training and development do
  organizations offer their employees?

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Learning Goals (contd.)

• What is a performance appraisal?
• How are employees compensated?
• What is organizational career management?
• What are the key laws and federal agencies
  affecting human resource management?
• What trends are affecting human resource
  management?

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Learning Goal 1

• What is the human resource management process?
• Job analysis and HR planning
• Employee recruitment and selection
• Employee training, performance appraisal, and
  compensation
• Ends when employee leaves organization

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• Human Resource Management
• The process of hiring, developing, motivating,
  and evaluating employees to achieve
  organizational goals

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Human Resource Management Process
Strategies objectives of the organization
Organizational career management
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Learning Goal 2

• How are human resource needs determined?
• Job analysis
• Studying a job to determine its tasks and duties
  for
• Setting pay
• Determining employee job performance
• Specifying hiring requirements
• Designing training programs
• Job description
• Lists the tasks and responsibilities of the job
• Job specification
• Describes skills, knowledge, and abilities needed
  to fill the job described in the job description

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HR planning forecasting
Employee recruitment
Employee selection
Job analysis design

• Job Analysis
• A study of the tasks required to do a particular
  job well
• job description
• job specification

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HR planning forecasting
Employee recruitment
Employee selection
Job analysis design

• Demand forecast
• Determining the number of employees needed by
  some future time
• Supply forecast (internal)
• Estimating the number of current employees who
  will be available to fill various jobs at some
  future time

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Labor Supply Demand

• Labor shortage in the 1990s has turned the tables
  for employers
• some individuals seeking work advertise
  themselves as free agents
• employers bid for interviews with free agents
• US Department of Labor estimates there are 10
  million free agents

Source Entrepreneur, Jan. 2000, p. 16.
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Learning Goal 3

• How do human resource managers find good people
  to fill the jobs?
• Most firms begin by trying to fill the job from
  within
• If internal candidates are not available, an
  external search begins
• Local media is used to find workers who are
• Nontechnical
• Unskilled
• Nonsupervisory
• Highly trained recruits are found by using
• College recruiters
• Executive search firms
• Job fairs
• Company Web sites

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HR planning forecasting
Employee recruitment
Employee selection
Job analysis design

• Recruitment
• Attempt to find and attract qualified applicants
  in the external labor market
• job fair

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Learning Goal 4

• What is the employee selection process?
• Applicant submits an application or résumé
• Receives a short, structured interview
• Applicant may be asked to take an aptitude,
  personality, or skills test
• Selection interview
• In-depth discussion of applicants
• Work experience, skills, and abilities
• Education and career interests
• Applicants seeking professional or managerial
  positions may be interviewed by several people
• Successful applicants may be asked to undergo a
  physical exam

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HR planning forecasting
Employee recruitment
Employee selection
Job analysis design

• Selection
• The process of determining which people in the
  applicant pool possess the qualifications
  necessary to be successful on the job

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Steps of the Selection Process
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Learning Goal 5

• What types of training and development do
  organizations offer their employees?
• Training and development programs are designed to
  increase employees knowledge, skills, and
  abilities to foster job improvement
• Formal training
• Development programs
• Job rotation
• Executive education programs
• Mentoring
• Special project assignments

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Training development
Performance planning evaluation
Compensation benefits

• Training and Development
• Activities that provide learning situations in
  which an employee acquires additional knowledge
  or skills to increase job performance

• on-the-job training
• off-the-job training

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Training and Development

• Forecasting International predicts that the need
  for life-long learning will characterize business
  in the future
• Implications
• need for higher training budgets
• need for constant retraining due to turnover
• use of technology for just-in-time training
• training as a motivational retention tool

Source HR News, Dec. 1999, pp. 18-20.
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Learning Goal 6

• What is a performance appraisal
• Compares an employees actual performance with
  the expected performance
• Typically used to determine an employees
• Compensation
• Training needs
• Advancement opportunities

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Training development
Performance planning evaluation
Compensation benefits

• Performance planning evaluation process

Performance planning Setting standards
expectations
Performance evaluation
Rewards job changes
Employee job task behavior
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Performance Evaluation

• 360 Evaluation performance feedback that
  combines self-appraisal with ratings made by
  coworkers at the same level, above, and below the
  target person in the managerial hierarchy
• Advantages
• provides a well-rounded view
• avoids individual bias
• can have more impact than a single source
• can establish consensus

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Learning Goal 7

• How are employees compensated?
• Direct pay
• Hourly wage or monthly salary paid to an employee
• May include bonuses and profit shares
• Indirect pay
• Various benefits and services
• Required by law unemployment and workers
  compensation, Social Security
• Optional paid vacations and holidays, pensions,
  health and other insurance products, employee
  wellness programs, college tuition reimbursement

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Training development
Performance planning evaluation
Compensation benefits

• Types of Compensation or Pay
• hourly wages
• salaries
• piecework and commission
• accelerated commission schedule
• bonus
• profit sharing
• fringe benefits

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Learning Goal 8

• What is organizational career management?
• Facilitation of employee job changes including
• Promotions
• Upward move with more authority, responsibility
  and pay
• Transfers
• Horizontal move in the organization
• Layoffs
• Temporary separation arranged by the employer,
  usually when business is slow
• Retirements
• Permanent separation that ends ones career

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Types of Career Change
Organizational career management

• 1. Job change within the organization
• transfer
• promotion
• demotion
• 2. Separation from the organization
• layoff
• termination
• resignation
• retirement

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Learning Goal 9

• What are the key laws and federal agencies
  affecting human resource management?
• Federal law prohibits age, race, gender, color,
  national origin, religion or disability
  discrimination
• Americans with Disabilities Act bans
  discrimination against disabled workers
• Family and Medical Leave Act requires employers
  to provide employees up to 12 weeks of unpaid
  leave a year
• Other Federal agencies dealing with HR
  administration
• Equal Employment Opportunity Commission (EEOC)
• Occupational Safety and Health Administration
  (OSHA)
• Office of Federal Contract Compliance Programs
  (OFCCP)
• Wage and Hour Division of the Department of Labor
  

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Laws Affecting Human Resources

• 1. Fair Labor Standards Act (1938)
• 2. Equal Pay Act (1963)
• 3. Occupational Health Safety Act (1970)
• 4. Americans with Disabilities Act (1990)

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Learning Goal 10

• What trends are affecting human resource
  management?
• Women comprise 45 of the American workforce
• Growing numbers of dual-career couples
• Companies are facing issues like sexual
  harassment and nonwork issues such as child and
  elder care
• Workers change jobs 3 to 5 times during their
  career
• Lessens loyalty between employer and employee
• American workforce is becoming more diverse
• Companies are offering diversity training and
  mentoring of minorities

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Trends in Human Resources

• 1. Social change
• More women in the work force
• More people changing jobs
• 2. Demographics
• More diverse work force
• 3. Advancing Technology
• enables more outsourcing
• enables more telecommuting
• 4. Global Competition
• adaptable employees, need for language training
  cultural orientation

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People Changing Jobs

• Amount of Time MBAsExpect to Stay in Their First
  Job

1 to 2 years
5 or more years
2 to 3 years
4 to 5 years
3 to 4 years
Source Fortune, Mar. 16, 1998.