10 Chapter Human Resource Management McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights...

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10 Chapter Human Resource Management McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

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Page 1: 10 Chapter Human Resource Management McGraw-Hill© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

10Chapter

Human Resource ManagementHuman Resource Management

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Learning ObjectivesAfter reading this chapter, you should be able to:

Determine appropriate responses to major changes in the environment affecting human resources.

Comply with the legal framework governing human resources. Develop tactics to implement desired human resource

strategies. Prepare a staffing program to recruit and select the best

applicants. Establish orientation, training, and career development

programs to enhance employees’ contributions to the firm. Implement an effective performance appraisal program to

capitalize on employees’ strengths and reduce employees’ weaknesses.

Develop a reward system to attract, retain, and motivate employees.

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Dealing effectively with Dealing effectively with human resource (HR) human resource (HR) issues is essential for all issues is essential for all managers.managers.

The human resource staff The human resource staff supports managers in supports managers in carrying out HR carrying out HR responsibilities.responsibilities.

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Skills for Managing Human Resources

Congruency Congruency SkillsSkills

Hiring SkillsHiring Skills

Training SkillsTraining Skills

Performance Performance Appraisal SkillsAppraisal Skills

Pay Allocation Pay Allocation SkillsSkills

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Environment of Human Resources

Workforce Workforce DiversityDiversity

GlobalizationGlobalization

LegislationLegislationUnionsUnions

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The Legal & Regulatory Environment

13.3

Categories of laws and regulations affecting HRM: Equal Employment Opportunity

Civil Rights Act/Age Discrimination/Disabilities Health and Safety Protection

Occupational Safety and Health Act Compensation and Benefits

Fair Labor Standards Act Equal Pay Act Comparable Worth

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CIVIL RIGHTS ACT

Race/color, sex, national origin, religion Includes all organizations with 15 or more employees Enforced by the Equal Employment Opportunity Commission

Investigates complaints Voluntary conciliation Files cases in federal courts

Original law provided for actual damages only Amendments allow penalties for intentional discrimination

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AGE DISCRIMINATION IN EMPLOYMENT ACT

Employees 40 years of age or older Covers all organizations with 20 or more employees Enforced by the EEOC Allows for double damages Penalties for intentional discrimination provided in

amendments to law

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AMERICANS WITH DISABILITIES ACT

Protects those with disabilities Physical or mental impairment that substantially limits a major life

activity Record of such an impairment Regarded as having such an impairment

Enforced by the EEOC Reasonable accommodation

Reassign marginal duties Modify work schedules Modify exams and testing materials Provide qualified readers/interpreters Permitting use of paid/unpaid leave

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BONA FIDE OCCUPATIONAL QUALIFICATION

Social Modesty – shower or locker room

Aesthetics – acting, modeling

Necessary Requirement Religion Age Other

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EMPLOYMENT AT WILL

STATUATORY EXCEPTIONS OSHA, Fair Labor Standards Act, Labor Relations Act

JUDICIAL EXCEPTIONS Public policy/exercise of legal right Implied contracts Fair dealing/due process

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Human Resource Management Process

Strategic HR Strategic HR PlanningPlanning

HR TacticsHR Tactics

StaffingStaffing OrientationOrientation TrainingTraining Career Career DevelopmentDevelopment

Performance Performance AppraisalAppraisal

Compensation Compensation and Benefitsand Benefits

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Strategic Human Resource Planning (SHRP)

The development of a vision about where the company wants to be and how it can use human resources to get there.

The ultimate objective of SHRP is a sustained competitive advantage.

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Human Resource PlanningHuman Resource PlanningProduct Product DemandDemand

Labor Labor ProductivityProductivity

Labor DemandLabor Demand Labor SupplyLabor Supply

Internal Labor Internal Labor MarketMarket

External Labor External Labor MarketMarket

ConditionsConditions and Select Responsesand Select Responses1.1. Labor demand exceeds labor supplyLabor demand exceeds labor supply

Training or retrainingTraining or retraining Succession planningSuccession planning Promotion from withinPromotion from within Recruitment from outsideRecruitment from outside SubcontractingSubcontracting Use of contingent workersUse of contingent workers Use of overtimeUse of overtime

2.2. Labor supply exceeds labor demandLabor supply exceeds labor demand Pay cutsPay cuts Reduced hoursReduced hours Work sharingWork sharing Voluntary early retirementsVoluntary early retirements Inducements to quitInducements to quit LayoffsLayoffs

3.3. Labor demand equals labor supplyLabor demand equals labor supply Replacement of quits from Replacement of quits from

inside or outsideinside or outside Internal transfers and Internal transfers and

redeploymentredeployment

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Staffing Process

Recruitment – the process of generating a pool of qualified candidates for a particular job.

An effective recruitment effort should create a pool of qualified applicants.

Selection – the screening process used to decide which of the applicants to hire.

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RECRUITING SOURCES

Internal – current and past employees, interns, temps Employee referrals Web/internet Advertising – newspaper/professional journals Recruiting agencies – public and private Job fairs Schools and colleges Professional association/unions

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SELECTION SELECTION

TOOLSTOOLS

Application Application FormsForms

Letters of Letters of RecommendatioRecommendatio

nn

Ability TestsAbility Tests

Performance Performance Simulation TestsSimulation Tests

Personality Personality TestsTests

Psychological Psychological TestsTests Honesty TestsHonesty Tests

InterviewsInterviews Physical ExamsPhysical Exams

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Orientation

Helps new employees to: Learn more about the company Learn what is expected of them in the job Reduce the initial anxiety of a transition Become familiar with co-workers Learn about work rules and personnel policies

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Employee Training

Training is a planned effort to provide employees with specific skills to improve their performance.

Effective training can also improve morale and increase an organization’s potential.

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The Training Process

Needs Needs AssessmentAssessment

Develop and Develop and Conduct TrainingConduct Training

EvaluationEvaluation

• Organization NeedsOrganization Needs• Task NeedsTask Needs• Person NeedsPerson Needs

• LocationLocation• PresentationPresentation• TypeType

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Performance Appraisal

Performance appraisal has three important objectives:

Two-way communication between supervisors and employees.

Constructive feedback to employees in order to capitalize on strengths and reduce weaknesses.

Help managers decide who should be paid more based on contribution.

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Improving Performance Appraisal Accuracy

Adapted from Figure 13.3

13.8

Rating Scale Format

Memory Aids

Rater Training

Rewards

Multiple Raters/360

Degree Feedback

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Compensation

Employees are paid for their contributions to the company.

The three key objectives of the compensation system are to:

Attract high-quality workers from the labor market.

Retain the best employees the company already has.

Motivate employee performance.

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Components of Total Compensation

Total CompensationTotal Compensation

Base CompensationBase Compensation Pay IncentivesPay Incentives Indirect Compensation / Indirect Compensation / BenefitsBenefits

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Compensation System Should:

Fit the firm’s strategic objectives

Fit with the firm’s characteristics and environment

Achieve internal equity (perception of fairness)

Achieve external equity

Be based on employee contributions

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