2. part
Creating the Human
4
Resource Advantage
CHAPTER 9 Motivating the Workforce
CHAPTER 10 Managing Human Resources
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3. Human Resource Management (HRM)
[ ]
All the activities involved in determining
the organization's needs for human
resources and acquiring, training and
compensating people to fill those needs
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4. Human Resource Management
Increasing in importance
Employee Concerns:
• Compensation
• Job satisfaction
• Personal performance
• Leisure
• Environment
• Opportunities for advancement
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5. Managing the Workforce
During Slow Economic Times
Managers must be aware of employee
concerns/needs
• Do not ignore/neglect top performers
• Even during a recession, high-performers will quit
The most important things a top manager can do:
• Transparent and honest communication
• Non-monetary rewards; flexibility programs
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6. Planning for HR Needs
Job Analysis
Systematically determining pertinent information about a
job (tasks, abilities, knowledge, skills)
Job Description
Formal & written specifications of the job (title, tasks, relationships, skills,
duties, responsibilities)
Job Specification
Description of the job qualifications (education, experience,
personal/physical characteristics)
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7. Employee Recruiting
Recruiting
The formation of a pool of qualified job candidates
from which management selects employees
Internal Sources
• Current employees
• Promotion from within
External Sources
• Advertising
• Employment agencies
• Online
• Interns
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8. Employee Selection
Selection
The process of collecting information about applicants
and using information to make hiring decisions
• Application
• Interviewing
• Testing
• Reference Checking
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9. Employee Selection:
The Selection Process
Application
First stage of the selection process
• Name, address, telephone
• Education, previous work experience, references
• Qualifications for the position
• Level of interest in the position
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10. Employee Selection:
The Interview
The interview is the second phase of selection
Detailed information on candidate
• Is candidate a good fit for the job?
• Attitudes toward job
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11. Top 10 Mistakes Made in Interviewing
1. Not taking the interview seriously
2. Not dressing appropriately (dressing down)
3. Not appropriately discussing experience and education
4. Being too modest about one’s accomplishments
5. Talking too much
6. Too much concern about compensation
7. Speaking negatively of a former employer
8. Not asking enough or appropriate questions
9. Not showing the proper enthusiasm level
10. Not engaging in appropriate follow-up to interview
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12. Testing
Ability and performance testing
Aptitude, IQ, Personality tests
Psychological exams
Illegal drug screening
Applicant assessment
Goodness of “fit”
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14. Legal Issues in Recruiting
and Selecting
Legal restraints are present at every stage of the
recruitment and selection process
Title VII of the Civil Rights Act
Pervades all areas of HRM
Prohibits discrimination in employment
Equal Employment Opportunity Commission (EEOC)
Tests must be validated
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15. Laws Affecting HRM
Americans with Disabilities Act (ADA)
Age Discrimination in Employment Act
Equal Pay Act
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16. Developing the Workforce
Orientation
Familiarizing new hires with fellow workers, company
procedures and the physical properties of the company
Training
Teaching employees to do specific job tasks through classroom development
or on-the-job experience
Development
Training that augments the skills and knowledge of managers and
professionals
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17. Assessing Performance
Can be a difficult job for managers
• Strengths
• Weaknesses
Is crucial because it provides employees with feedback
• Appraisals may be
Objective or subjective
Quantitative or qualitative
• Managers must discuss results with the employee
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18. Developing the Workforce
Turnover
Employees voluntarily leave (quit); involuntary
leave (fired); management must replace workers
Promotion
Advancement to higher-level job with increased authority, responsibility,
and pay
Transfer
Move to another job within the company usually at same or similar level
and wage rate
Separations
Employment changes involving resignation, retirement, termination, or
layoff
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19. Compensating the Workforce
Developing compensation plans is complex
Employee wages comprise a large portion of organizational expenses
Wage/Salary Survey
Study indicating how much compensation comparable firms are paying for
specific jobs that firms have in common
Helps in designing fair compensation packages
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20. Financial Compensation
Wages
Financial rewards based on hours worked
and/or level of output achieved
Time Wages
• Used when quality is more important than quantity– no incentive to increase
production
Piece Wages
• Based on level of output achieved. Motivate employees to increase output– little
incentive to improve quality
Commission
• Incentive system that pays a fixed dollar amount or a percentage of the
employee’s sales. Motivates employees to sell as much as possible
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21. Compensation
Salary
Financial reward calculated on weekly, monthly, or annual basis
Associated with white collar employees, executives, professionals
Bonuses
Monetary rewards provided by firm for exceptional performance or incentive
to increase productivity
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22. Compensation
Profit Sharing
A percentage of company profits distributed to employees, sometimes in the
form of stock
Employee Stock Ownership Plan (ESOP)
Company distributes shares to employees as a form of compensation
Gaining in popularity
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23. Benefits
Non-financial forms of compensation
• Pension plans
• Insurance (health, disability, life)
• Child & elder care
• Employee Assistance Programs
…continued on next page FHF
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26. Unionized Employees
Labor Union
Employee organization formed to deal with employers for achieving
better pay, hours and working conditions
Collective Bargaining
Negotiation process where management and unions reach agreement on
wages, hours and working conditions for the bargaining unit (employees
represented by union)
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27. Unionized Employees
12% of workforce
Unionized workers often earn higher wages
Concentrated in certain industries
Automotive manufacturing
Steel production
Construction
Public-sector (government)
Sports and acting unions
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29. Labor Contract
[ ]
The formal written document that stipulates
the relationship between union and
management for a specific time period. The
outcome of collective bargaining
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30. Resolving Disputes
Pickets
Public protests against the actions of the company or
management
Strike
Employee walkouts; work stoppage. Most effective economic weapon
for unions in private sector
Boycott
Attempt to keep people from purchasing the company’s products
Lockout
Management’s version of the strike. Worksite is closed to prevent employees
from working
Strikebreakers
Hired by management to continue operations and reduce losses during a strike
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31. Third-Party Dispute Resolution
Conciliation
3rd party intervention so that management & labor continue talks
Mediation
3rd party helps to bring labor and management together to resolve
disputes
Arbitration
3rd party settles dispute by imposing solution that is legally binding
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32. Workforce Diversity Involves
[ The participation of different ages, genders,
races, ethnicities, nationalities and abilities in
the workplace ]
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33. Why is Diversity Important?
Increasingly diverse workforce reflects increasingly
diverse customer base
Diversity brings multiple perspectives to issues and improves
problem solving and decision making
Organizations should work to improve their workforce
diversity
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34. Valuing Workforce Diversity
More productive use of human resources
Reduced conflict among employees
More productive working relationships
Increased commitment to organizational goals
Increased innovation and creativity
Increased ability to serve the needs of diverse customers
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35. 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 to resolve the discrepancy
Prohibits organizations from setting hiring quotas that might result in reverse
discrimination
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Hinweis der Redaktion
We discussed the importance of motivation in Chapter nine and its focus on employees. In chapter ten we turn our attention to the management of human resources in organizations. We will discuss the functions of human resource management that include recruiting, hiring and training employees. We will look at different compensation systems and will discuss the importance of diversity in the workforce.
HR managers are concerned with maximizing the satisfaction of employees and motivating them to achieve organizational objectives.
HR managers must be aware of the issues that arise from increasingly diverse workforces.
In recessionary times, or the time immediately following a recession when the economy is still recovering, managers must focus on retaining the best workers. Morale may be low, and managers must work to maintain a positive work atmosphere, provide adequate compensation and benefits, and opportunities for recognition. Communication and adequate rewards are important things that managers can do to retain good employees.
HR managers seek to match appropriate human resources with job assignments. The job analysis is used to develop the job description and job specification.
Many firms have a policy of first conducting in-house recruiting for positions. This often helps organizations improve employee morale through giving them an opportunity for promotion. In-house hiring is cheaper than external recruiting as well.
Selecting the right person for the job is very important. The selection process can be long and expensive, and choosing people who are committed to the organization and are a good fit can save the organization time and money in recruiting and training replacements.
The goal of this stage of the process is to get acquainted with applicants and to weed out those who are not qualified. The application may also provide subtle clues about an applicant’s appropriateness for a position.
Interviews help management obtain additional detailed information about qualified employees. This is a chance for management to get more detailed answers about a person’s experience and skills, his/her attitude, and whether the person would fit with the company culture. A candidate can also ask questions about job requirements, compensation and working conditions. Managers should pay attention to the applicant’s questions, as they can be revealing as well.
Not all organizations use testing as part of the hiring process, but testing can help an HR manager determine whether an applicant has the skills needed for the job, his/her aptitude, and in candidate’s ability to fit into the organization. Illegal drug and alcohol abuse can cost organizations through loss of productivity, healthcare and absenteeism. It is an important consideration.
This is a very important step because applicants frequently misrepresent themselves on their applications. Many organizations will only confirm than an employee worked there, not provide clues to the quality of his/her work.
To avoid legal issues during the recruitment and hiring process, managers must be aware of laws and regulations related to hiring practices. Title VII of the Civil Rights Act is a major law that pervades all areas of HRM.
These are other laws affecting HRM. To avoid lawsuits, HR managers must be familiar with these laws and how they affect their organization.
Once qualified candidates are chosen, they must be introduced to the organization and its policies and procedures. Orientation also involves socializing the new workers into the ethics and culture of their new organization.
Managers should be careful with subjective appraisal systems and those that involve ranking employees because of the risk of discrimination lawsuits.
Layoffs due to downsizing have become an increasingly prevalent fact of life in many industries. Layoffs can be temporary and employees may be brought back when business picks back up. A high turnover rate can be very expensive and can signal problems within an organization and should be investigated by the HR manager.
Determining how much to pay employees for their work can be a complex issue. Getting wages right is essential because it represents a large portion of organizations’ overall expenses. Managers must find the correct balance of wages and benefits to keep employees satisfied without paying them too much. Excessively high wages result in high-priced products. Low wages result in low morale and high turnover.
The federal government sets a minimum wage ($7.25 at the writing of this book), and many states also set their own minimum wages, which are higher than the federal minimum.
Profit sharing has the advantage of making employees feel invested in the organization for which they work. ESOPs are an increasingly popular way for organizations to make employees feel invested in their jobs. Working harder means that they will see their stocks increase in value.
Employee assistance programs are increasingly widely offered by organizations. They offer employees counseling and other forms of help to assist with addictions, psychological problems, or other personal issues that may affect their work.
Soft benefits are not offered by every employer and tend to vary dramatically between organizations. They usually are offered to help employees find a better work/life balance. Many organizations have found that these soft benefits are very appealing to employees and potential employees and help workers remain with the organization.
Unions help to give employees power that individual workers do not have. Union growth has been stagnant or declining for decades.
Not all industries have unions, although they remain strong in some sectors.
Collective bargaining is the negotiation process through which management and unions reach an agreement about compensation, working hours and working conditions for the bargaining unit. The objective of negotiations is to reach agreement about a labor contract, the formal, written document that spells out the relationship between the union and management for a specified period of time.
The objective of collective bargaining. Many labor contracts have cost-of-living adjustment (COLA) clause in them that calls for automatic wage increases as the cost of living goes up. This is notable given that wages as a whole have been stagnant or even declined in most industries in the U.S.
Disputes arise when management and unions cannot come to an agreement on a contract. The above slide outlines various ways that union workers and employers deal with labor disputes.
There are three main ways for disputing workers and their employers to resolve problems and come to an agreement: Conciliation, mediation, and arbitration.
As the nation becomes more diverse, so should the workforce. Laws and regulations exist to ensure that different minority groups are adequately represented in many industries.
Affirmative action laws seek to ensure that workplaces and universities reflect the diversity present in society. Legislation passed in 1991 reinforced affirmative action, but prohibits organizations from setting hiring quotas that could result in reverse discrimination.