* * *

**
Human Resource Management: Finding and Keeping the Best Employees

11
1-1 11-1

Nickels

McHugh

McHugh

McGraw-Hill/Irwin Understanding Business, 8e

2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

CHAPTER

* * *

HR Challenges
Shortages Unskilled Workers Undereducated Workers Shift in Workforce Composition Laws & Regulations Single-Parent & TwoIncome Families Attitudes Toward Work Continued Downsizing Overseas Labor Pools Customized Benefits Employees With New Concerns Decreased Loyalty
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* * * I. WORKING WITH PEOPLE IS JUST THE BEGINNING Learning goal 1

Explain the importance of human resource management, and describe current issues in managing human resources.

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.
II. DETERMINING YOUR HUMAN RESOURCE NEEDS Summarize the five steps in human resource planning.

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III. RECRUITING EMPLOYEES FROM A DIVERSE POPULATION Learning goal 3

Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging.

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IV. SELECTING EMPLOYEES WHO WILL BE PRODUCTIVE Learning goal 4 Outline the six steps in selecting employees.

A. Hiring Contingent Workers

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V. TRAINING AND DEVELOPING EMPLOYEES FOR OPTIMUM PERFORMANCE Learning goal 5 Illustrate the use of various types of employee training and development methods. A. Management Development

B. Networking
C. Diversity in Management Development

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* * *

VI.

APPRAISING EMPLOYEE PERFORMANCE TO GET OPTIMUM RESULTS

Learning goal 6
Trace the six steps in appraising employee performance.

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VII. COMPENSATING EMPLOYEES: ATTRACTING AND KEEPING THE BEST Learning goal 7 Summarize the objectives of employee compensation programs, and describe various pay systems and fringe benefits. A. Pay Systems B. Compensating Teams C. Fringe Benefits
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VIII. SCHEDULING EMPLOYEES TO MEET ORGANIZATIONAL AND EMPLOYEE NEEDS Learning goal 8 Explain scheduling plans managers use to adjust to workers needs. A. Flextime Plans B. Home-Based and Other Mobile Work C. Job-Sharing Plans
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IX. MOVING EMPLOYEES UP, OVER, AND OUT Learning goal 9 Describe the ways employees can move through a company: promotion, reassignment, termination, and retirement. A. Promoting and Reassigning Employees B. Terminating Employees C. Retiring Employees

D. Losing Employees
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X. LAWS AFFECTING HUMAN RESOURCE MANAGEMENT

Learning goal 10 Illustrate the effects of legislation on human resource management. A. Laws Protecting the Disabled and Older Employees B. Effects of Legislation
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HUMAN RESOURCE MANAGEMENT is the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals. DEVELOPING THE ULTIMATE RESOURCE The U.S. economy has undergone a major shift from traditional manufacturing industries to service industries that require more HIGHLY TECHNICAL JOB SKILLS.

Many workers must be retrained for new, more challenging jobs.

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EMPLOYEES ARE THE ULTIMATE RESOURCE.

In the past, the human resource was plentiful, so there was little need to nurture and develop it.

Qualified labor is scarcer today, and that makes recruiting more difficult.

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* * *

Historically, most firms assigned the job of recruiting, selecting, training, evaluating, compensating, motivating, and firing people to FUNCTIONAL DEPARTMENTS. Today human resource management has taken on a new role. HUMAN RESOURCE MANAGEMENT may be the most critical function as it is responsible for the businesss most critical resourcepeople.

The role of the human resource management is a FUNCTION OF ALL MANAGERS, not just one department. Most human resource functions are SHARED between the human resource manager and other managers.
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THE HUMAN RESOURCE CHALLENGE The ability of the U.S. business system to compete globally depends on people with good ideas. Some of the CHALLENGES include:
Shortages in people trained to work in high tech areas Abundance of unskilled workers with obsolete skills who need retraining Growing number of undereducated and unprepared workers An aging work force, including aging Baby Boomers deferring retirement
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* * *

A complex set of laws and regulations An increasing number of single parent and two-income families A shift in employee attitudes toward work Continued downsizing More competition from low-wage overseas labor pools Increased demand for benefits tailored to the individual Growing concern over health issues, elder care, child care, equal opportunities for people with disabilities, and affirmative action A decreased sense of employee loyalty

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* * *

Determining HR Needs
1. Prepare HR 3. Assess HR Inventory Demand 2. Prepare Job 4. Assess HR Analysis Supply Job 5. Establish Description Strategic Plan Job Specification
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PREPARING A JOB ANALYSIS A JOB ANALYSIS is a study of what is done by employees who hold various jobs. The results of the job analysis are two written statements. A JOB DESCRIPTION is a summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working condition, and the relationship of the job to other functions. JOB SPECIFICATIONS are written summaries of the minimum qualifications required of workers to do a particular job.
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* * *

ASSESSING FUTURE HUMAN RESOURCE DEMAND

HR managers must be proactive to anticipate future needs of their organizations ASSESSING FUTURE SUPPLY in a constantly changing labor market ESTABLISHING A STRATEGIC PLAN addressing recruiting, selecting, training and developing, appraising, compensating, and scheduling the labor force Companies are also using advanced technologies to manage the human resource planning process.
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* * *

Hiring Process
Recruit Select
Application Form Interview Test Investigate Examine Probation

Train/Develop
Orientation OJT Apprenticeship Off-The-Job Training Online Training Vestibule Training Job Simulation

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* * *

RECRUITMENT
is the set of activities used to obtain a sufficient number of the right people at the right time. RECRUITING IS DIFFICULT for several reasons: Some organizations have policies that demand promotion from within, operate under union regulations, or offer low wages.

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* * *

It important to hire skilled people who also

FIT IN WITH THE CULTURE.

People with the necessary skills may not be available, and must be hired and then trained. Human resource managers turn to many SOURCES for assistance. INTERNAL SOURCES involve hiring from within the firm and employee recommendations. Internal sources are usually less expensive. Hiring from within helps maintain employee morale.

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* * *

When it isnt possible to find qualified workers within the company, HR managers must use

EXTERNAL RECRUITMENT sources. Recruiting qualified workers may be particularly difficult for small businesses.

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SELECTION is the process of gathering information and deciding who should be hired, under legal guidelines, for the best interest of the individual and the organization. The selection process is a key element in human resource management. Selection expenses can cost one and onehalf of an employees annual salary.
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STEPS OF THE SELECTION PROCESS: OBTAINING COMPLETE APPLICATION FORM Legal guidelines limit the kinds of questions that may appear on an application form. Allowed information includes the applicants educational background, past work experience, career objectives, and other qualifications. Many large organizations use an artificial intelligence program, Smart Assessment, to screen applicants. CONDUCTING INITIAL AND FOLLOW-UP INTERVIEWS A human resource department staff member often screens applicants in a first interview. Potential employees are then interviewed by the manager who will supervise the new employee.
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GIVING EMPLOYMENT TESTS Some organizations continue to use tests to measure basic competencies in specific job skills, although testing has been severely criticized. It is important that the test be directly related to the job. Employment tests have been criticized because of the potential for illegal discrimination.

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* * *

Important Factors When Phrasing Interview Questions

Language
Relevance Information Level Complexity Information Accessibility

Source: University of Central Arkansas

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* * *

Many companies test potential employees in assessment centers where applicants perform actual tasks of the real job. CONDUCTING BACKGROUND INVESTIGATIONS helps determine which candidates are most likely to succeed in a given position. Most organizations investigate an applicants work record, school records, credit history, and references. Web sites such as People-Wise streamline background checks.

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OBTAINING RESULTS FROM PHYSICAL EXAMS Medical tests cannot be given just to screen out individuals. In some states, physical exams can be given only AFTER AN OFFER OF EMPLOYMENT HAS BEEN ACCEPTED. Pre-employment testing to detect drug or alcohol abuse or AIDS screening is controversial.

Over 70% of U.S. companies now test current and potential employees for drug use.

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ESTABLISHING TRIAL (PROBATIONARY) PERIODS allows organizations to hire an employee conditionally.

The selection process is difficult but helps ensure that new employees meet requirements in all relevant areas.
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HIRING CONTINGENT WORKERS Sometimes it is more cost-effective to hire contingent workers when a company has a varying need for employees.
CONTINGENT WORKERS are workers who do not have the expectation of regular, full-time employment.

These include part-time workers, temporary workers, seasonal workers, interns, and co-op students.
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REASONS TO USE CONTINGENT WORKERS: a varying need for employees full-time employees on leave a peak demand for labor Contingent workers receive FEW BENEFITS and EARN LESS than permanent workers do. Many temporary workers are offered full-time positions. Although exact data is unavailable, the use of contingency workers appears to be increasing. Many people, such as college students, find that temporary work offers them more FLEXIBILITY than a permanent position. Temping may be a more secure situation in an era of downsizing.
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Training & Development Assess Needs Design Training Evaluate Effectiveness

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TRAINING AND DEVELOPING EMPLOYEES FOR OPTIMUM RESULTS learning goal 5 Illustrate the use of various types of employee training and development methods. A.DESIGNING TRAINING AND DEVELOPMENT PROGRAMS Spending for employee training is a good investment because it: leads to higher retention rates increases productivity improves job satisfaction among employees.

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* * * 1. 2. 3. 4. 5. 6. 7.

Training Methods
Employee Orientation On-The-Job Apprenticeship Off-The-Job Online Vestibule Job Simulation
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TRAINING AND DEVELOPMENT involves all attempts to improve performance by increasing an employees ability to perform. TRAINING focuses on short-term skills

DEVELOPMENT focuses on long-term abilities The process of CREATING TRAINING AND

DEVELOPMENT PROGRAMS includes: ASSESSING THE NEEDS of the organization and the skills of the employees to determine training needs DESIGNING TRAINING ACTIVITIES to meet the identified needs EVALUATING THE EFFECTIVENESS of the training
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* * *

TRAINING AND DEVELOPMENT ACTIVITIES EMPLOYEE ORIENTATION is the activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm.

ION-THE-JOB TRAINING is training in which the employee immediately begins his or her tasks and learns by doing, or watches others for a while, and then imitates them, all right at the workplace. This type of training is EASY AND EFFECTIVE for learning low skill, repetitive jobs, but can BE DISASTROUS if used in areas demanding more knowledge and expertise. Cost-effective on-the-job training programs can be created using INTRANETS. Computer systems can monitor workers input and provide feedback.
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* * *

TRAINING AND DEVELOPMENT ACTIVITIES

APPRENTICESHIP PROGRAMS are training programs involving a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft. In many skilled crafts, a new worker is required to serve several years as an apprentice. Workers who successfully complete an apprenticeship earn the classification of JOURNEYMAN. There may be more, but shorter, apprenticeship programs in the future, as jobs require more intense training.
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* * *

OFF-THE-JOB TRAINING occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development.
ONLINE TRAINING, training programs in which employees attend classes via the Internet. Educational institutes offer DISTANCE LEARNING programs. Employers can offer content tailored to specific training needs.

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VESTIBULE TRAINING (near-the-job training) is training done in schools where employees are taught on equipment similar to that used on the job.

JOB SIMULATION is the use of equipment that duplicates the job conditions and tasks so that trainees can learn skills before attempting them on the job.

11-41

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MANAGERS NEED SPECIAL TRAINING:

They must learn communication, planning, and human relations skills. MANAGEMENT DEVELOPMENT is the process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.

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MANAGEMENT DEVELOPMENT PROGRAMS include the following: ON-THE-JOB COACHING by a senior manager
UNDERSTUDY POSITIONS as assistants to higherlevel managers who participate in planning and other managerial functions JOB ROTATION exposing managers to different functions of the organization

OFF-THE-JOB COURSES AND TRAINING exposing managers to the latest concepts and create a sense of camaraderie
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NETWORKING is the process of establishing and maintaining contacts with key managers in ones own organization and in other organizations and using those contacts to weave strong relationships that serve as informal development systems.

MENTOR is an experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsors.
Most mentoring is INFORMAL, but many organizations use a formal system of assigning mentors. Networking goes beyond the business environment and can start with making educational contacts.
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DIVERSITY IN MANAGEMENT DEVELOPMENT Since most older managers are male, women often have more difficulty finding mentors and entering the network. Men only clubs were declared illegal by the U.S. Supreme Court, allowing women ACCESS TO AREAS WHERE CONTACTS ARE MADE. African-American managers are also learning the benefits of networking. Other ethnic groups can also use networking. PRINCIPLES TO DEVELOP FEMALE AND MINORITY MANAGERS: Grooming women and minorities for management positions is more than a legal or moral issueit is about bringing in more talent. The best women and minorities will become harder to attract and retain. Having more women and minorities means that businesses can serve female and minority customers better. 11-45

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APPRAISING EMPLOYEE PERFORMANCE TO GET OPTIMUM RESULTS Learning goal 6 Trace the six steps in appraising employee performance.
A PERFORMANCE APPRAISAL is an evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing.

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* * *

Performance Appraisal
1. Establish Standards 2. Communicate Standards 3. Evaluate Performance 4. Discuss Results 5. Take Corrective Action 6. Use Results to Make Decisions
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APPRAISING EMPLOYEE PERFORMANCE TO GET OPTIMUM RESULTS SIX STEPS OF PERFORMANCE APPRAISALS:
ESTABLISHING PERFORMANCE STANDARDS that are understandable, measurable, and reasonable COMMUNICATING THOSE STANDARDS to employees EVALUATING PERFORMANCE DISCUSSING RESULTS WITH EMPLOYEES TAKING CORRECTIVE ACTION or providing feedback USING THE RESULTS TO MAKE DECISIONS The latest form of performance appraisal is the 360 REVIEW because it uses feedback from all directions in the organization: up, down, and all around. 11-48

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APPRAISING EMPLOYEE PERFORMANCE TO GET OPTIMUM RESULTS SIX STEPS OF PERFORMANCE APPRAISALS:
ESTABLISHING PERFORMANCE STANDARDS that are understandable, measurable, and reasonable COMMUNICATING THOSE STANDARDS to employees EVALUATING PERFORMANCE DISCUSSING RESULTS WITH EMPLOYEES TAKING CORRECTIVE ACTION or providing feedback USING THE RESULTS TO MAKE DECISIONS The latest form of performance appraisal is the 360 REVIEW because it uses feedback from all directions in the organization: up, down, and all around. 11-49

* * *

COMPENSATING EMPLOYEES: ATTRACTING AND KEEPING THE BEST

Learning goal 7 Summarize the objectives of employee compensation programs, and describe various pay systems and fringe benefits.

11-50

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Companies compete for employees. COMPENSATION is one of the main marketing tools used to attract qualified employees. The long-term success of a firm may depend on how well it can CONTROL EMPLOYEE COSTS and OPTIMIZE EMPLOYEE EFFICIENCY. For service operations, the cost of labor is the largest cost item. Manufacturing firms in some industries have asked employees to take reductions in wages to make the firm more competitive. COMPENSATION and BENEFIT PACKAGES are being given special attention.
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* * *

Employee Retention
Compensation
Individual Team

Flextime
Core Time Compressed Workweek

Fringe Benefits Job-Sharing

Home-Based & Mobile Work

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* * *

Corporate downsizing has made tailoring compensations packages more important than ever. The OBJECTIVES of compensation and benefit programs include: ATTRACTING THE KINDS OF PEOPLE NEEDED in sufficient numbers Providing employees with the INCENTIVE TO WORK EFFICIENTLY AND PRODUCTIVELY

KEEPING VALUED EMPLOYEES from leaving the company

MAINTAINING A COMPETITIVE POSITION by keeping costs low by increasing productivity Providing employees with some sense of FINANCIAL SECURITY

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* * *
Salary

Pay Systems
Bonus plans Profit-sharing plans Hourly wage and daywork

Piecework system
Commission plans

Gain-sharing plans
Stock options

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Compensation & Benefits Program Objectives

Attract the right people Employee incentives Retain valued employees Maintain competitiveness Financial security for employees
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PAY SYSTEMS An organizations pay system can have a dramatic effect on efficiency and productivity. Many companies use the HAY SYSTEM, compensation based on job tiers, each of which has a strict pay range. Another system begins with base pay and gives all employees the same percent merit raise. COMPENSATING TEAMS Compensating teams is a complex issue. Measuring and rewarding individual performance on teams is tricky. Pay based strictly on INDIVIDUAL PERFORMANCE erodes team cohesiveness. Experts recommend basing pay on TEAM PERFORMANCE.
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SKILL-BASED PAY is related to the growth of both the individual and the team. Base pay is raised when team members learn and apply NEW SKILLS. The skill-based pay system is complex, and it is difficult to correlate skill acquisition to bottom-line gains.

In GAIN-SHARING SYSTEMS, bonuses are based on improvements over a performance baseline.

It is important to REWARD INDIVIDUAL TEAM PLAYERS, as well.
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FRINGE BENEFITS FRINGE BENEFITS are benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages. In recent years fringe benefit programs have grown faster than wages. Benefits account for about 30% OF PAYROLLS today. To avoid higher taxes, many employees want more fringe benefits instead of more salary. FRINGE BENEFIT PACKAGES Fringe benefit packages can include recreation facilities, company cars, paid sabbaticals, and day care. b. Employees want packages to include dental care, mental health care, elder care, 11-58

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FRINGE BENEFIT PACKAGES Fringe benefit packages can include recreation facilities, company cars, paid sabbaticals, and day care. Employees want packages to include dental care, mental health care, elder care, legal counseling, eye care, and short workweek. The cost of health care is rapidly trending upward, and employees are asking companies to pay a larger share of the bill. SOFT BENEFITS help workers maintain the balance between work and family life by freeing them from spending time on errands. Some companies offer CAFETERIA-STYLE FRINGE BENEFITS, fringe benefit plans that allow employees to choose the benefits they want up to a certain dollar amount.
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Because of the cost of administering benefit programs, many companies are contracting with outside companies (OUTSOURCING) to run their benefit plans.

Managing benefits can be especially complicated when employees are located IN OTHER COUNTRIES.

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SCHEDULING EMPLOYEES TO MEET ORGANIZATIONAL AND EMPLOYEE NEEDS Learning goal 8

Explain scheduling plans managers use to adjust to workers needs.

Managers and workers are demanding more flexibility and responsiveness from their jobs.

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FLEXTIME PLANS FLEXTIME PLAN is a work schedule that gives employees some freedom to choose when to work, as long as they work the number of required hours. Most flextime plans include some CORE TIME, a period when all employees are expected to be at their job stations. Flextime plans are designed to allow employees to ADJUST TO THE DEMANDS OF THE TIMES, such as two-income families. Companies find that flextime boosts employee productivity and morale. There are DISADVANTAGES, as well. a. It does not work in assembly-line processes or for shift work. Managers often have to work longer days in order to supervise employees. Flextime makes communication more difficult. Some employees could abuse the system.

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A COMPRESSED WORKWEEK is a work schedule that allows an employee to work a full number of hours per week but in fewer days. Employees enjoy working only four days. But some employees get tired working such long hours, and productivity could decline. Few employees take advantage of flexible schedules. HOME-BASED AND OTHER MOBILE WORK TELECOMMUTING has grown tremendously in recent years. Nearly 10 million U.S. workers work from home at least once a month. To be successful, a home-based worker must have the discipline to stay focused on the work. Telecommuting can SAVE COSTS for employers. Many businesses are doing away with the concept of one seat per employee. When companies reduce the number of offices, employees use HOTELING or HOT-DESKING to share office space.
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Benefits of Job-Sharing
Opportunities for wanting to work only part-time
High level of enthusiasm and productivity Reduced absenteeism and tardiness Ability to schedule in peak demand period Retention of experienced workers
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Using home-based call agents rather than in-house operators reduces expenses. JOB SHARING is an arrangement whereby two part-time employees share one full-time job. Job sharing lets parents work part-time while their children are in school. BENEFITS INCLUDE: Employment opportunities for those who cannot or prefer not to work full-time A high level of enthusiasm and productivity Reduced absenteeism and tardiness Retention of experienced employees Ability to schedule people into peak demand periods DISADVANTAGES include having to hire, train, motivate, and supervise twice as many people. Most firms have found the benefits outweigh the disadvantages. 11-65

* * *

Management Development
On-The-Job Coaching
Understudy Job Rotation Off-The-Job Courses & Training

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MOVING EMPLOYEES UP, OVER, AND OUT Learning goal 9 Describe the ways employees can move through a company: promotion, reassignment, termination, and retirement.

Employees dont always stay in the position they were initially hired to fill. PROMOTING AND REASSIGNING EMPLOYEES Promotions are COST-EFFECTIVE ways to improve EMPLOYEE MORALE. With flatter corporate structures today, more workers transfer OVER to a new position than move UP to one.
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TERMINATING EMPLOYEES Human resource managers are struggling to manage layoffs and firings due to downsizing and global trends. The COST OF TERMINATING employees is so high that managers choose to use TEMPORARY EMPLOYEES or OUTSOURCE certain functions. EMPLOYMENT AT WILL The doctrine of EMPLOYMENT AT WILL meant that managers had as much freedom to fire workers as workers had to leave voluntarily. =

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EMPLOYMENT AT WILL The doctrine of EMPLOYMENT AT WILL meant that managers had as much freedom to fire workers as workers had to leave voluntarily. Most states now have employment laws that LIMIT THE AT WILL DOCTRINE to protect employees from wrongful firing. This legislation has restricted managements ability to terminate employees. RETIRING EMPLOYEES Another tool used to downsize companies is to offer early retirement benefits, called GOLDEN HANDSHAKES, to entice older workers to resign. Offering early retirement benefits rather than laying off employees INCREASES THE MORALE OF THE SURVIVING EMPLOYEES 11-69

* * *

Retiring senior workers increases PROMOTION OPPORTUNITIES for younger employees. LOSING EMPLOYEES Some employees will inevitably choose to leave the organization. One way to learn why employees leave is to have a third party conduct an EXIT INTERVIEW. There are now Web-based exit interview systems.

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LAWS AFFECTING HUMAN RESOURCE MANAGEMENT learning goal 10 Illustrate the effects of legislation on human resource management. A. Legislation has made hiring, promoting, firing, and managing employee relations complex and subject to legal complications. Since the 1930s LEGISLATION AND LEGAL DECISIONS have greatly affected human resource management. One of the most important laws ever passed by Congress was the CIVIL RIGHTS ACT OF 1964. TITLE VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on race, religion, creed, sex, or national origin (age was added later.) Specific language in the law often made its enforcement difficult.
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The EQUAL EMPLOYMENT OPPORTUNITY ACT (EEOA) was added as an amendment to Title VII in 1972. It strengthened the EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (EEOC), which issues guidelines for administering equal employment opportunity. Congress gave the EEOC broad powers to regulate equal employment opportunity.

11-72

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AFFIRMATIVE ACTION PROGRAMS are controversial. AFFIRMATIVE ACTION are employment activities designed to right past wrong by increase opportunities for minorities and women. Interpretation of the law was often controversial, and enforcement difficult. One result has been perceived REVERSE DISCRIMINATION is discrimination against whites or males in hiring or promoting. Companies have been charged with reverse discrimination when they have been PERCEIVED as UNFAIRLY GIVING PREFERENCE to women or minorities in hiring or promoting. The U.S. Supreme Court ruled in a 2003 lawsuit against the University of Michigan that: 11-73 The points system was unconstitutional.

* * *

However, considering race was acceptable to achieve diversity. The CIVIL RIGHTS ACT OF 1991 expanded the remedies available to victims of discrimination by amending Title VII of the CRA of 1964. LAWS PROTECTING THE DISABLED AND OLDER EMPLOYEES The VOCATIONAL REHABILITATION ACT. This Act, passed in 1973, extended the same protection given to minorities and women to people with disabilities. Businesses CANNOT DISCRIMINATE against people with disabilities on the basis of their physical or mental disability.

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The AMERICANS WITH DISABILITIES ACT OF 1990 (ADA) requires that disabled applicants be given the same consideration for employment as people without disabilities. It requires that businesses make REASONABLE ACCOMMODATIONS to people with disabilities. Most companies can easily and inexpensively make the structural changes needed. However, companies are having more trouble making CULTURAL CHANGES than structural changes to be accommodating. A key concept is ACCOMMODATION, which means treating people according to their
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In 1997, the EEOC issued NEW GUIDELINES for the ADA that tell employers how they are to treat workers and applicants with mental disabilities. The AGE DISCRIMINATION IN EMPLOYMENT ACT protects individuals who are 40 years or older from discrimination based on age. Under the ADEA, it is UNLAWFUL TO DISCRIMINATE AGAINST A PERSON BECAUSE OF AGE with respect to hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training. The ADEA OUTLAWED MANDATORY RETIREMENT in most organizations, but provides exemptions for certain critical jobs. EFFECTS OF LEGISLATION All areas of human resource management are affected11-76

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In 1997, the EEOC issued NEW GUIDELINES for the ADA that tell employers how they are to treat workers and applicants with mental disabilities. The AGE DISCRIMINATION IN EMPLOYMENT ACT protects individuals who are 40 years or older from discrimination based on age. Under the ADEA, it is UNLAWFUL TO DISCRIMINATE AGAINST A PERSON BECAUSE OF AGE with respect to hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training. The ADEA OUTLAWED MANDATORY RETIREMENT in most organizations, but provides exemptions for certain critical jobs. EFFECTS OF LEGISLATION All areas of human resource management are affected11-77

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IN SUMMARY: Employers must know and act in accordance with the legal rights of their employees. Legislation affects all areas of human resource management.

It is sometimes legal to go beyond providing equal rights for minorities and women to provide special employment to correct discrimination in the past. New court cases and legislation continuously change human resource management; it is important to keep current.
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HR Executives Recruiting Preferences

Temp-to-Hire Engagement Staffing/Recruiting Agency Professional Association Internal Recruiters Classified Advertising Internet/Job Boards Referrals
Note: Multiple responses allowed

0%

10%

20%

30%

40%

50%

60%

Source: USA Today

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Applicants Mistakes
Interview
2% 14%

Resume Cover Letter

32%

Reference Checks Interview Follow-up Screening Call

6%

7%

9% 9% 21%

Other Do Not Know

Source: USA Today

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* * *

Interviewing Mistakes
5% 18% 3%
Little/No Knowledge of Company Unprepared to Discuss Career Plans Limited Enthusiasm

No Eye Contact

25%

49%

Unprepared to Discuss Skills/Experience

Source: USA Today

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Number Interviewed to Find Quality Hire

One 2 to 3 4 to 6 7 to 10 More than 10 0% 10% 20% 30% 40% 50%

Source: USA Today, January 24, 2005

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Vacation Days Per Year

Italy France Germany Brazil UK Canada Korea Japan USA 0 10 13 20 30 40 50
11-84

42 37 35 34 28 26 25 25

* * *

Scheduling To Meet Employee Needs

Flextime Plans Home-Based & Other Mobile Work

Job-Sharing Plans

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* * *

Number of Hours Americans Work Per Week

51+ Hours 18% 1-29 Hours 30-39 Hours 10% 10%

46-50 Hours 16% 40 Hours 34%

41-45 Hours 12%

Source: USA Today

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Telecommuting: Affect on Career

6% 25% No Affect 39% Help Hurt Not Sure/No Answer

30%

Source: USA Today

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How Employers Are Becoming Flexible

Go Out Of Their Way to Accommodate Child-care Issues Offer Flexible Work Schedule Permit Time Off To Deal With Personal Issues Employees Schedule Their Own Vacation 0%
Source: insala.com, April 2005

20%

40%

60%

80% 100%

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Benefits of Providing Flexibility

Higher Employee Retention

Higher Employee Job Satisfaction

Better Relations With Workers

0%
Source: Insala.com, April 2005

20%

40%

60%

80%

100%
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Why is Retention Important?

Employee turnover could cost up to 40% of a companys annual profits
The average company loses $1 million with the loss of every ten managerial employees

Turnover costs are 50%-100% of the exemployees annual salary

Source: insala,com, April 2005

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Top 10 Reasons Employees Stay On Their Job

1. Credit Union Membership
2. Health Benefits 3. Salary 4. Good Coworkers

6. Childcare
7. Vacation Time 8. Sick Leave 9. Distance from Home 10. Popular Company

5. Office Hours

Source: Creditunionrate.com, accessed July 13, 2006

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Employee Movement
Promotion/Reassignment
Termination Retirement Resignation

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HR Laws
Civil Rights Act (1964) Age Discrimination Act (1967) Equal Employment Opportunity Act (1972) Affirmative Action Reverse Discrimination Civil Rights Act (1991) Americans with Disabilities Act (1990)

Social Security Act (1935)

Occupational Safety and Health Act (1970) Employment Retirement Income Security Act (1974)
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Implementing EEOC Which statements are T/F?

1. Its OK to ask any applicant whether he or she has an automobile.
2. It appropriate to ask applicants to attach photographs.

3. During interviews, its not appropriate to ask an applicant his/her age.

4. Its appropriate to ask if an applicant is a naturalized citizen. 5. Its not appropriate to ask an applicant about past work experience.
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6.

Implementing EEOC Which statements are T/F?

You may ask an applicant to indicate what foreign languages he/she can read, write or speak fluently. 7. Its appropriate to ask an applicant if he/she has an arrest record. 8. Its OK to ask whether the applicant is physically able to lift heavy weights. 9. Its appropriate to ask women questions about their children. 10. You have the right to ask an applicant for names of work-related and personal references.
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Companies Aid to Disabled Employees

Renovate Workplace Job Reassignments Change of Hours Change of Responsibilities 0% 10% 20% 30% 40% 50%

Source: USA Today

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