1. Chapter 10 ©2001 South-Western College Publishing Pamela S. Lewis Stephen H. Goodman Patricia M. Fandt Slides Prepared by Bruce R. Barringer University of Central Florida Pamela S. Lewis Stephen H. Goodman Patricia M. Fandt Slides Prepared by Bruce R. Barringer University of Central Florida Managing Human Resources

2. Transparency 10-2 © 2001 South-Western Publishing Learning Objectives Slide 1 of 3 1.Describe the key factors of the legal environment in which human resource management functions. 2.Identify the primary legislative acts relating to equal employment opportunity that affect the hiring process. 3.Discuss the components of human resource planning.

3. Transparency 10-3 © 2001 South-Western Publishing Learning Objectives Slide 2 of 3 4.Explain the role of forecasting in human resource planning. 5.Summarize the different recruiting techniques used by organizations. 6.Clarify the major employee selection methods. 7.Explain the different types of employee training.

4. Transparency 10-4 © 2001 South-Western Publishing Learning Objectives Slide 3 of 3 8.Describe the role of performance appraisals in the organization. 9.Specify how compensation and benefits are used in organizations. 10. 11. Examine recent trends in labor-management relations. Clarify the primary challenges of HRM in the multinational organization.

5. Transparency 10-5 © 2001 South-Western Publishing Human Resource Management Defined Management of the organization’s employees; consists of all the activities required to enhance the effectiveness of an organization’s workforce in achieving organizational goals and objectives.

6. Transparency 10-6 © 2001 South-Western Publishing Legal Environment of Human Resource Management Slide 1 of 6 Equal Employment Opportunity Legislation –The Civil Rights Act of 1964, the Civil Rights Restoration Act of 1988, and the Civil Rights Act of 1991 are equal employment opportunity laws. –Equal employment opportunity laws prohibit the consideration of race, color, religion, national origin, or gender in employment decisions.

7. Transparency 10-7 © 2001 South-Western Publishing Legal Environment of Human Resource Management Slide 2 of 6 Other Legislation –Such as the Americans with Disabilities Act and the Age Discrimination Act of 1967, prohibits employment decisions based on biases against qualified individuals with disabilities and the elderly. –In general, the purpose of EEO legislation is to ensure that unemployment decisions are based on job-related criteria only.

8. Transparency 10-8 © 2001 South-Western Publishing Legal Environment of Human Resource Management Slide 3 of 6 Most Current Legislation –Family and Medical Leave Act of 1993 Allows individuals to take up to 12 weeks of unpaid leave per year for the birth or adoption of a baby or the illness of a family member.

9. Transparency 10-9 © 2001 South-Western Publishing Legal Environment of Human Resource Management Slide 4 of 6 Affirmative Action –The legal requirement that federal contractors, some public employees, and private organizations under court order for short-term remedies must actively recruit, hire, and promote members of minority groups and other protected classes if such individuals are underrepresented in the organization.

10. Transparency 10-10 © 2001 South-Western Publishing Legal Environment of Human Resource Management Slide 5 of 6 Sexual Harassment –Actions that are sexually directed, unwanted, and subject the worker to adverse employment conditions. “Quid pro quo” Harassment –When sexual compliance is required for job-related benefits and opportunities such as pay and promotion.

11. Transparency 10-11 © 2001 South-Western Publishing Legal Environment of Human Resource Management Slide 6 of 6 Hostile Environment Harassment –When the victim does not suffer any tangible economic injury, but workplace conduct is sufficiently severe to create an abusive work environment.

12. Transparency 10-12 © 2001 South-Western Publishing Human Resource Planning Slide 1 of 2 Human Resource Planning –The process of determining future human resource needs relative to an organization’s strategic plan and taking actions necessary to meet those needs in a timely manner.

13. Transparency 10-13 © 2001 South-Western Publishing Human Resource Planning Slide 2 of 2 Human Resource Information Systems –Systems that make it possible to track and monitor economic forecasts, competitors, and legislation that influence long-range personnel planning; to produce models for salary forecasting, job analysis and evaluation, recruiting, employee training, and annual appraisal of employee performance; to provide benefits to current and retired employees; and more.

14. Transparency 10-14 © 2001 South-Western Publishing Human Resource Planning Process Compensation Forecasting Staffing Recruitment Selection Staffing Recruitment Selection Training Performance Appraisal Job Analysis

15. Transparency 10-15 © 2001 South-Western Publishing Job Analysis Slide 1 of 2 Job Analysis –The primary process used for gathering current information about a job through such actions as observation, survey, questionnaires, and interviews. –The job analysis includes a job description and job specifications.

16. Transparency 10-16 © 2001 South-Western Publishing Job Analysis Slide 2 of 2 Job Descriptions –Details of the responsibilities and tasks associated with a given position. Job Specifications –Identifies the knowledge, skills, abilities, and other employee characteristics needed to perform a job.

17. Transparency 10-17 © 2001 South-Western Publishing Forecasting Demand Forecasting –Determining the number of employees that the organization will need at some point in the future as well as the knowledge, skills, and abilities that these employees must possess. Supply Forecasting –Determining what human resources will be available, both inside and outside the organization.

18. Transparency 10-18 © 2001 South-Western Publishing Recruitment –The process of finding and attracting job candidates who are qualified to fill job vacancies. Internal recruitment –Identifying candidates from inside the organization and encouraging them to apply for jobs that are vacant. External recruitment –Soliciting applicants from outside the organization.

19. Transparency 10-19 © 2001 South-Western Publishing Selection Methods Slide 1 of 5 Selection –The process of evaluating and choosing the best qualified candidate from the pool of applicants recruited for the position. –It entails the exchange of accurate information between employers and job candidates to optimize the person-job match.

20. Transparency 10-20 © 2001 South-Western Publishing Selection Methods Slide 2 of 5 Application Forms –A form that records the applicant’s desired position, serves as a prescreening device to determine an applicant’s qualifications, and provides preliminary comparisons with the credentials of other candidates.

21. Transparency 10-21 © 2001 South-Western Publishing Selection Methods Slide 3 of 5 Employment Testing Measure –Any instrument, device, or information used to make an employment decision is considered a test by the EEOC’s Uniform Guidelines on Employee Selection.

22. Transparency 10-22 © 2001 South-Western Publishing Selection Methods Slide 4 of 5 Interviews –Relatively formal, in-depth conversations conducted for the purpose of assessing a candidate’s knowledge, skills, and abilities, as well as providing information to the candidate about the organization and potential jobs.

23. Transparency 10-23 © 2001 South-Western Publishing Selection Methods Slide 5 of 5 Importance of Reliability and Validity –Regardless of the selection method used, the organization must be able to demonstrate that its selection methods are reliable and valid and do not discriminate against employee classes protected by EEO legislation.

24. Transparency 10-24 © 2001 South-Western Publishing Training Slide 1 of 2 Training –A planned effort to assist employees in learning job-related behaviors in order to improve performance. –Companies train employees in an effort to prepare them to work toward achieving the goals and objectives of the organization.

25. Transparency 10-25 © 2001 South-Western Publishing Training Slide 2 of 2 Types of Training Programs –Orientation –Technical training –On-the-job training –Management development programs

26. Transparency 10-26 © 2001 South-Western Publishing Performance Appraisal Slide 1 of 2 Performance Appraisal –A systematic process of evaluating employee job-related achievements, strengths, weaknesses, as well as determining ways to improve performance. –Purposes of performance appraisal process: Motivation Personnel movement Training Feedback

27. Transparency 10-27 © 2001 South-Western Publishing Performance Appraisal Slide 2 of 2 Rating Performance –Behavior-oriented approaches to performance appraisal Focus on assessing employee behavior. –Results-oriented approaches to performance appraisal Use objective performance criteria.

28. Transparency 10-28 © 2001 South-Western Publishing Problems with Performance Appraisal Slide 1 of 4 Halo Effect –Occurs when a manager rates an employee high or low on all items because of one characteristic. –For example, an employee that is good at handling customer complaints may receive high ratings in all other areas of work, just because the rater is impressed with the employee’s skills in this area.

29. Transparency 10-29 © 2001 South-Western Publishing Problems with Performance Appraisal Slide 2 of 4 Rater Patterns –Occurs when a rater develops a pattern in his or her ratings of employees. Central tendency occurs when the rater judges all employees as average, even though their performance varies. A leniency-severity error occurs when the rater is unjustifiably easy or harsh in evaluating employee performance.

30. Transparency 10-30 © 2001 South-Western Publishing Problems with Performance Appraisal Slide 3 of 4 Contrast Error –The tendency to rate employees relative to each other rather than to performance standards. –For example, if almost everyone in a group is doing a mediocre job, then a person performing somewhat better may be rated as excellent because of the contrast effect.

31. Transparency 10-31 © 2001 South-Western Publishing Problems with Performance Appraisal Slide 4 of 4 Recency Error –Occurs when a manager bases an evaluation on the employee’s most recent performance. –This is typically a problem when the evaluations are not frequent enough for the rater to recall performances over a long period of time.

32. Transparency 10-32 © 2001 South-Western Publishing Compensation and Benefits Slide 1 of 4 Compensation –Wages paid directly for time worked, incentives for better performance, and indirect benefits that employees receive as part of their employment relationship with the organization.

33. Transparency 10-33 © 2001 South-Western Publishing Compensation and Benefits Slide 2 of 4 Forms of Compensation –Direct Compensation: Base Pay and Incentives Base pay - Wages and salaries that employees receive in exchange for performing their jobs. Incentives - Compensation beyond base pay used to attract, retain, and motivate employees. –Indirect Compensation: Benefits Payments beyond wages or salaries that are given to employees as a reward for organizational membership.

34. Transparency 10-34 © 2001 South-Western Publishing Compensation and Benefits Slide 3 of 4 Designing Equitable Reward Systems –Compensation designers are concerned with three sources of fairness expectation: External Fairness –Is the pay for the job fair in one organization relative to the pay for the same job in other organizations? Internal Fairness –Is the pay for the job within the organization fair relative to the pay of other jobs in the same organization?

35. Transparency 10-35 © 2001 South-Western Publishing Compensation and Benefits Slide 4 of 4 Designing Equitable Reward Systems (cont.) –Employee Fairness Is the pay fair relative to what coworkers are making on the same job?

36. Transparency 10-36 © 2001 South-Western Publishing Labor-Management Relations The formal process through which employees and unions negotiate terms and conditions of employment including pay, hours of work, benefits, and other important aspects of the working environment.

37. Transparency 10-37 © 2001 South-Western Publishing Current Issues in HRM HRM in the Multinational Corporation Workforce Diversity Sexual Harassment Health Concerns in the Work Environment