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Part 4

Creating the
Human
Resource
Advantage

2016 by McGraw-Hill Education. This is proprietary material solely for


authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded,
distributed, or posted on a website, in whole or part.

10-2

CHAPTER 9

Motivating the Workforce

CHAPTER 10

Managing Human Resources

APPENDIX C

Personal Career Plan

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10-3

Learning Objectives
LO 10-1
Define human resources management and explain its
significance.
LO 10-2
Summarize the processes of recruiting and selecting
human resources for a company.
LO 10-3
Discuss how workers are trained and their performance
appraised.
LO 10-4
Identify the types of turnover companies may experience,
and explain why turnover is an important issue.
LO 10-5

Specify the various ways a worker may be compensated.

LO 10-6
Discuss some of the issues associated with unionized
employees, including collective bargaining and dispute resolution.
LO 10-7
LO 10-8
size

Describe the importance of diversity in the workforce.


Assess an organizations effort to reduce its workforce
and manage the resulting effects.

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10-4

Nature of Human Resource Management

Called personnel management in


some companies
Managers try maximizing
employee satisfaction while
motivating them to productively
meet objectives

Todays organizations
are more diverse, with
a greater range of
women, minorities,
and older workers

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10-5

Planning for Human Resource Needs


During a companys planning period, the human
resources department:
Determines the current number of workers and how
many plan to retire or leave during the planning
period
Forecasts how many qualified employees will need
to be hired, or determines if layoffs are required
Forecasts the availability of future qualified hires
Develops a strategy which may include
outsourcing, automation or temporary workers
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10-6

Job Analysis

Next, managers analyze the


jobs in order to match people
to available assignments

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10-7

Job Description and Job Specification


Using the job analysis, managers develop:

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10-8

Recruiting and Selecting New Employees


Job descriptions and job specifications are used to
develop recruiting materials

Internal sources include current employees


External sources includes everything else

LinkedIn, internships, websites for posting job


openings

Some companies use agencies or executive search


firms, sometimes called headhunters

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10-9

Recruiting through Social Networking

TheLadders.com is a
website that targets
career-driven
professionals
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10-10

Selection

o Includes the application, interviewing, testing and


reference checking
o The process can be lengthy and expensive but
necessary in order to find applicants who can do the
work and fit into the firms structure and culture
o Careful hiring saves future hiring expenses
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10-11

The Application
In the first phase of the selection process, the
individual fills out an application form and perhaps has
a brief interview
The goal of this stage of the process is to get
acquainted with the applicants and to weed out those
who are obviously not qualified for the job
Many companies now accept online applications

May contain a questionnaire that asks applicants more


specific questions:

How they might react in a certain situation

Personality attributes like self-esteem

Ability to interact with people

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10-12

The Interview
The next phase of the selection process involves
interviewing applicants
Through interviews, management obtains detailed
information about the applicants experience and skills,
reasons for changing jobs, attitudes toward the job, and
an idea whether the person would fit in
The interviewer can answer the applicants questions
about the job, compensation, working conditions,
company policies, organizational culture and so on
An interviewees questions may be as revealing as their
answers
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10-13

Most Common Questions Asked

during the Interview

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10-14

Mistakes Made in Interviewing

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10-15

Testing
Another step in the selection process is testing

Ability and performance tests are used to determine


whether an applicant has the skills necessary for the job

One of most common tests is the Meyer-Briggs Type


Indicator

May also have to undergo physical examinations to


determine their suitability for some jobs

Used worldwide by millions of people each year

Many companies require applicants to be screened for


illegal drug use

Certain companies require an applicant to take a typing


test or tests to determine their knowledge of necessary
programs

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10-16

Personality Tests
Personality tests such as Myers-Brigg are used to
assess an applicants potential for a certain kind of job

For instance, extroversion and a love of people would be


good qualities for a sales or retail job
Interestingly, there does not seem to be any difference
between introversion and extroversion in making a good
manager
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10-17

Reference Checking
Before making a job offer, the company should
check references

Verifying educational background and previous work


experience

An Internet search is often done to determine social


media or other public activities

Public companies are likely to do a more extensive


background search

Reference checking is important as applicants may


misrepresent themselves on their applications and
resumes

Often overlooked stage in the selection process

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10-18

Legal Issues in Recruiting and Selecting


Managers must be aware of legal restraints and
regulations in order to avoid legal problems

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10-19

Employment Discrimination Is Illegal

Title VII of the Civil Rights


Act prohibits discrimination
in employment
Encourages people who
feel they have been
discriminated against to file
a formal complaint

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10-20

Other Laws Affecting HRM

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10-21

Video Interviews
Interviewing for a job has traditionally required the
interviewee to go to the physical location of the job applied
for no matter how far the distance

However since 2011, human resource managers have


taken to video conferencing to conduct interviews over 49
percent of the time

This has not only increased the diversity of people being


interviewed as they are no longer restricted by travel, but it
has decreased:

The amount of time used in the recruiting process


The costs of recruiting

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10-22

Developing the Workforce

Usually includes:

A tour of the building


Introductions to co-workers and supervisors
Distribution of manuals and policies
Socializing the new employee into the ethics and
culture of the company

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10-23

Training and Development

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10-24

Assessing Performance
Assessing an employees strengths and weaknesses
on the job is one of the most difficult tasks for
managers
Performance appraisal is crucial as it:

Gives employees feedback on how they are


doing and how to improve

Provides a basis for determining compensation


Generates information about the quality of the
firms selection, training and development
activities
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10-25

Performance Characteristics

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10-26

Performance Appraisals
Performance appraisals may be objective or subjective

Objective appraisal is quantifiable;


such as how many of something
was produced or the score on a test

One popular subjective appraisal


method is ranking employees
against each other

Another method is the 360-degree


feedback system, providing
feedback from a panel of superiors,
peers and subordinates

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10-27

Turnover, Promotion, and Transfer

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10-28

Downsizing
Many companies in
recent years are
choosing to downsize
by eliminating jobs
Reasons might be due
to financial constraints
or the need to become
more productive and
competitive
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10-29

Separations

Traditionally, companies could fire workers at will, that


is, for any reason other than race, religion, sex or age
Recent legislation requires companies fire employees
fairly, for just cause only

The HR department strives to minimize employee


losses as recruiting and training is expensive
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10-30

Wage/Salary Survey
People dont work for free and their pay and benefits
are a substantial portion of an organizations expenses
Compensation for a specific job is typically
determined through a

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10-31

Financial Compensation

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10-32

Piece Wages and Commission


Many companies pay on an incentive system, such as:

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10-33

Salary, Bonuses, Profit Sharing and ESOPs

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10-34

Benefits

According the Bureau of Labor Statistics, employer


costs for compensation in the U.S. average $29.63
per hour worked

Wages and salaries account for 70.1%

Benefits account for 29.9%

Legally required benefits account for 8.2%

Benefits increase employee security, morale and motivation


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10-35

Benefits (cont.)
The employee assistance program (EAP) offers
employees personal assistance with problems that
may hurt their job performance
Flexible benefit programs allow employees to choose
the benefits they want, up to a certain amount
Fringe benefits include sick leave, vacation pay,
pension plans and other extra compensation
Soft benefits include perks that help balance life and
work, such as spas, food service and child care
Cafeteria benefit plans provide a financial amount to
employees so that they can select the specific benefits
that fit their needs
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10-36

Onsite Fitness
o An onsite fitness center is
one of the benefits large
companies have begun to
offer employees
o Such benefits are
particularly important for
employees who work long
hours or who struggle to
maintain a healthy worklife
balance

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10-37

Managing Unionized Employees

On average, union workers make about $200 more per


week than non-union workers
Union growth has slowed and prospects for growth do
not look good
Significant aspects of HRM, particularly compensation,
are dictated by union contracts at many companies
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10-38

Collective Bargaining

COLA or cost-of-living adjustment is automatic


wage increases during periods of inflation

Givebacks are wage and benefit concessions

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10-39

Labor Tactics
Sometimes, management and labor simply cannot agree
Labor tactics:

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10-40

Management Tactics

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10-41

Outside Resolution
If labor and management still fail to reach an agreement, they
have three forms of outside resolution:

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10-42

Goodbye Human Resources?


Some companies are reinventing their Human Resources
department by getting rid of it, or at least, delegating many
HR duties to frontline or department managers

The hiring and recruiting process that traditionally occurs in


the Human Resources department can sometimes misalign
with the needs of the department where the new hire will work

Delegating these processes to the manager of the


department leads to better placement of employees that are
aligned with the needs and environment of the department

It also gives the management more of an active role in the


leadership of his department, as he is responsible for the new
and existing employees
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10-43

Characteristics of Diversity

Understanding diversity means recognizing and


accepting differences and valuing unique perspectives
Primary characteristics are inborn and unchangeable
Secondary characteristics can be changed
Managers must remember that each person is defined
by the interrelationships of all characteristics and they
must consider the complete person
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10-44

Why Is Diversity Important?


The U.S. workforce is becoming increasingly diverse
Companies are improving their HRM programs to
recruit, develop and retain more diverse employees to
better serve their diverse customers
The Census Bureau predicted
that by 2042, minorities will
make up more than 50% of
the U.S. population
Effectively managing diversity
in the workforce involves
cultivating and valuing its
benefits and minimizing its
problems
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10-45

Importance of Workforce Diversity


Some of the benefits to workforce diversity:

1. More productive use of a companys human


resources

2. Reduced conflict among employees as they learn to


respect each others differences

3.
4.
5.
6.

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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10-46

Affirmative Action
Many companies strive to improve their working
environment through:

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10-47

Solve the Dilemma


Morale Among the Survivors
Medallion Corporation manufactures quality carpeting and
linoleum for homes throughout the U.S.
Recession and subsequent downturn in home sales has
sharply cut the companys sales
Have to lay off hundreds of employees in the home
office (manufacturing facilities) and salespeople

1 additional month of work

1 month of severance pay

Opportunity to sign up for classes to help with transition

Several months later, morale was at an all-time low for


the company although productivity had improved
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10-48

Solve the Dilemma


Morale Among the Survivors (cont.)

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10-49

Discussion

What activities are involved in acquiring and


maintaining the appropriate level of qualified
human resources? Name the stages of the
selection process.

What is the significance of a performance


appraisal? How do managers appraise
employees?

Relate wages, salaries, bonuses, and benefits


to Herzbergs distinction between hygiene and
motivation factors. How does the form of
compensation relate to the type of job?

Besides collective bargaining and grievance


procedures,
what
other
alternatives
duplicated,
forwarded, distributed,
or posted
on a website, in whole or part.are

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