3. Managing Human Resources and Labor Relations

Copyright 2004 Prentice Hall, Inc.1BUSI

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CHAPTER 8

Managing Human Resources and Labor Relations

Copyright 2004 Prentice Hall, Inc.2 BU

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7eChapter Outline

The Foundations of Human Resource Management

Staffing the Organization Developing the Workforce Compensation and Benefits The Legal Context of HR Management New Challenges in the Changing Workplace Dealing With Organized Labor Collective Bargaining


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What Is Human Resource Management (HRM)?

Set of organizational activities directed at attracting, developing and maintaining an effective workforce


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7eThe Strategic Importance of HRM

The importance of HR stems from: Increased legal complexities Recognition of human resources as a

valuable means for improving productivity

Awareness of costs associatedwith poor human resourcemanagement


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7eHuman Resource Planning

Job analysis is a systematic analysis of jobs within an organization. The results: Job description is an outline of the duties of

a job, working conditions and the tools, materials, and equipment used to perform it

Job specification is a description of the skills, abilities and other credentials required by a job


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7eThe Human Resource Planning Process


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7eForecasting HR Demand and Supply

Forecasting the supply of laboris two tasks: Forecasting internal supply—the number

and type of employees who will be in the firm at some future date

Forecasting external supply—the number and type of people who will be available for hiring from the labor market at large


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7eForecasting HR Demand and Supply

Replacement chart is a list of each management position, who occupies it, how long that person will likely stay in the job and who is qualified as a replacement

Employee information system (or Skills inventory) is a computerized system containing information on each employee's education, skills, work experience and career aspirations


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7eStaffing the Organization

Recruiting is the process of attracting qualified persons to apply for the jobs that are open. Process of acquiring staff: Internal recruiting means considering

present employees as candidatesfor openings

External recruiting involves attractingpeople outside the organization to apply for jobs


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7eSelecting Human Resources

Validation is the process of determining the predictive value of a selection technique. Techniques include: Application Forms Tests Interviews Other Techniques


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7eDeveloping the Workforce

Training On-the-job training occurs while

the employee is at work Off-the-job training takes place at locations

away from the work site Vestibule training is off-the-job training

conducted in a simulated environment Performance appraisals are designed to

show how well workers are doing their jobs


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7ePerformance Rating Schedule


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What is a Compensation System?

Set of rewards that organizations provide to individuals in return for their willingness to perform various jobs and tasks within the organization


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7eCompensation and Benefits

Wages are paid for time worked Salary is paid for discharging the

responsibilities of a job


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What Are Incentive Programs?

Special pay programs designed to motivate high performance


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7eIndividual Incentives

Bonuses are special payments above their salaries

Merit salary systems link raises to performance levels in non-sales jobs

Pay for performance (Variable pay) rewards a manager for especially productive output


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7eCompanywide Incentives

Profit-sharing plans distribute bonuses to employees when company profits rise above a certain level

Gainsharing plans distribute bonuses to employees when a company’s costs are reduced through greater work efficiency

Pay-for-knowledge plans encourage workers to learn new skills or become proficient at different jobs


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What Are Benefits?

Compensation other than wages and salaries offered by a firm to its workers


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7eBenefits Programs Workers’ compensation

insurance is legally required insurance for compensating workers injured on the job

Retirement plan is set up to pay pensions to workers when they retire

Cafeteria benefits plan sets limits on benefits per employee, each of whom may choose from a variety of alternative benefits


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What Is Equal Employment Opportunity?

Legally mandated nondiscrimination in employment on the basis of race, creed, sex or national origin


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What is a Protected Class?

Set of individuals who by nature of one or more common characteristics are protected under the law from discrimination on the basis of that characteristic


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7eEnforcing Equal Employment Opportunity

Equal Employment Opportunity Commission (or EEOC) is a federal agency enforcing several discrimination-related laws

Affirmative action plan is a practice of recruiting qualified employees belonging to racial, gender or ethnic groups who are underrepresented in an organization


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7eContemporary Legal Issues in HR Management

Employment Safety and Health Occupational Safety and Health Act of

1970 (or OSHA) sets and enforces guidelines for protecting workers from unsafe conditions and potential health hazards in the workplace


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7eEmerging Areas of Discrimination Law

AIDS in the Workplace Sexual harassment is the practice or

instance of making unwelcome sexual advances in the workplace quid pro quo harassment hostile work environment

Employment-at-will is the principle that organizations should be able to retain or dismiss employees at their discretion


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What is Workforce Diversity?

Range of workers’ attitudes, values, beliefs and behaviors that differ by gender, race and ethnicity


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7eChanging Composition of the U.S. Workforce


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What is a Knowledge Worker?

Employees who are of value because of the knowledge they possess


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What is a Contingent Worker?

Employee hired on something other than a full-time basis to supplement an organization’s permanent workforce


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7eDealing With Organized Labor

Labor union is a group of individuals working together toachieve shared job-related goals

Labor relations is the process of dealing with employees who are represented by a union

Collective bargaining is the process by which labor and management negotiate conditions of employment for union-represented workers


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7eUnionism Today

Trends in Union Membership Trends in Union-Management

Relations Trends in Bargaining

Perspectives The Future of Unions


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7eTrends in Union Membership


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7eThe Bargaining Zone


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7eContract Issues Compensation

Cost-of-Living Adjustment (COLA) Wage Reopener Clauses

Benefits Job Security Other Union Issues Management Rights


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7eWhen Bargaining Fails: Union Tactics Strike occurs when

employees temporarily walk off the job and refuse to work Economic Strikes Sympathy Strikes (or

Secondary Strikes) Wildcat strikes

Other Labor Actions Picketing Boycott Slowdown


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7eWhen Bargaining Fails: Management Tactics

Lockouts occur when employers deny employees access to the workplace

Strikebreakers are workers hired as permanent or temporary replacements for striking employees


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7eWhen Bargaining Fails: Mediation and Arbitration Mediation is a method in

which a third party (a mediator) suggests, but does not impose, a settlement

Voluntary arbitration is a method in which both parties agree to submit to the judgment of a neutral party (an arbitrator)

Compulsory arbitration is a method in which both parties are legally required to accept the judgment of a neutral party

3. Managing Human Resources and Labor Relations

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