Managing Human Resources

1
Managing Human Resources

• Chapter 9

2
Chapter 9 Learning Goals

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

3
Chapter 9 Learning Goals (contd.)

1. What is a performance appraisal?
2. How are employees compensated?
3. What is organizational career management?
4. What are the key laws and federal agencies
   affecting human resource management?
5. What trends are affecting human resource
   management?

4
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

5

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

6
Human Resource Management Process
Strategies objectives of the organization
Organizational career management
7
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

8
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

9
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

10
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.
11
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

12
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

13
Employee Talent

• Ratings made by Fortune magazine
• Most admired employee talent
• Microsoft
• Cisco Systems
• Coca-Cola
• Least admired employee talent
• MedPartners
• Shoneys
• Trump Hotels Casinos

Source Fortune, Mar. 1, 1999, p. 70.
14
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

15
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

16
Steps of the Selection Process
17
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

18
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

19
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.
20
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

21
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
22
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

23
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

24
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

25
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

26
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

27
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
  

28
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)

29
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

30
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

31
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.