FHF McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

part CHAPTER 10 Managing Human Resources 4 FHF 10-2 CHAPTER 9 Motivating the Workforce

[] FHF Human Resource Management (HRM) All the activities involved in determining the organization's needs for human resources and acquiring, training and compensating people to fill those needs 10-3

FHF Human Resource Management Increasing in importance  Employee Concerns: Compensation Job satisfaction Personal performance Leisure Environment Opportunities for advancement 10-4 …continued on next page

FHF Managing the Workforce During Slow Economic Times  Managers must be aware of employee concerns/needs Do not ignore/neglect top performers Even during a recession, high-performers will quit  The most important things a top manager can do: Transparent and honest communication Non-monetary rewards; flexibility programs 10-5

FHF Planning for HR Needs Job Analysis  Systematically determining pertinent information about a job (tasks, abilities, knowledge, skills) Job Description  Formal & written specifications of the job (title, tasks, relationships, skills, duties, responsibilities) Job Specification  Description of the job qualifications (education, experience, personal/physical characteristics) 10-6

FHF Employee Recruiting Recruiting  The formation of a pool of qualified job candidates from which management selects employees  Internal Sources Current employees Promotion from within  External Sources Advertising Employment agencies Online Interns 10-7

FHF Employee Selection Selection  The process of collecting information about applicants and using information to make hiring decisions Application Interviewing Testing Reference Checking 10-8

FHF Employee Selection: The Selection Process Application First stage of the selection process Name, address, telephone Education, previous work experience, references Qualifications for the position Level of interest in the position 10-9 …continued on next page

FHF Employee Selection: The Interview The interview is the second phase of selection  Detailed information on candidate Is candidate a good fit for the job? Attitudes toward job 10-10

FHF Top 10 Mistakes Made in Interviewing 1. Not taking the interview seriously 2. Not dressing appropriately (dressing down) 3. Not appropriately discussing experience and education 4. Being too modest about one’s accomplishments 5. Talking too much 6. Too much concern about compensation 7. Speaking negatively of a former employer 8. Not asking enough or appropriate questions 9. Not showing the proper enthusiasm level 10. Not engaging in appropriate follow-up to interview 10-11

FHF TestingTesting  Ability and performance testing  Aptitude, IQ, Personality tests  Psychological exams  Illegal drug screening  Applicant assessment  Goodness of “fit” 10-12

FHF Reference Checking Verify education Previous work experience Privacy issues 10-13

FHF Legal Issues in Recruiting and Selecting Legal restraints are present at every stage of the recruitment and selection process  Title VII of the Civil Rights Act Pervades all areas of HRM Prohibits discrimination in employment Equal Employment Opportunity Commission (EEOC) Tests must be validated 10-14

FHF Laws Affecting HRM  Americans with Disabilities Act (ADA)  Age Discrimination in Employment Act  Equal Pay Act 10-15

FHF Developing the Workforce Orientation  Familiarizing new hires with fellow workers, company procedures and the physical properties of the company Training  Teaching employees to do specific job tasks through classroom development or on-the-job experience Development  Training that augments the skills and knowledge of managers and professionals 10-16

FHF Assessing Performance  Can be a difficult job for managers Strengths Weaknesses  Is crucial because it provides employees with feedback Appraisals may be Objective or subjective Quantitative or qualitative Managers must discuss results with the employee 10-17

FHF Developing the Workforce Turnover  Employees voluntarily leave (quit); involuntary leave (fired); management must replace workers Promotion  Advancement to higher-level job with increased authority, responsibility, and pay Transfer  Move to another job within the company usually at same or similar level and wage rate Separations  Employment changes involving resignation, retirement, termination, or layoff 10-18

FHF Compensating the Workforce Developing compensation plans is complex  Employee wages comprise a large portion of organizational expenses Wage/Salary Survey  Study indicating how much compensation comparable firms are paying for specific jobs that firms have in common  Helps in designing fair compensation packages 10-19

FHF Financial Compensation Wages  Financial rewards based on hours worked and/or level of output achieved  Time Wages Used when quality is more important than quantity– no incentive to increase production  Piece Wages Based on level of output achieved. Motivate employees to increase output– little incentive to improve quality  Commission Incentive system that pays a fixed dollar amount or a percentage of the employee’s sales. Motivates employees to sell as much as possible 10-20

FHF CompensationCompensation Salary  Financial reward calculated on weekly, monthly, or annual basis  Associated with white collar employees, executives, professionals Bonuses  Monetary rewards provided by firm for exceptional performance or incentive to increase productivity …continued on next page

FHF CompensationCompensation Profit Sharing  A percentage of company profits distributed to employees, sometimes in the form of stock Employee Stock Ownership Plan (ESOP)  Company distributes shares to employees as a form of compensation  Gaining in popularity 10-22

FHF BenefitsBenefits Non-financial forms of compensation Pension plans Insurance (health, disability, life) Child & elder care Employee Assistance Programs …continued on next page

FHF BenefitsBenefits Traditional Fringe Benefits  Sick leave  Pension plans  Health plans  Extra compensation (Bonuses) …continued on next page

FHF BenefitsBenefits Soft Benefits/Perks  Emphasize work-life balance  On-site child care  Spas  Food service  Hair salons 10-25

FHF Unionized Employees Labor Union  Employee organization formed to deal with employers for achieving better pay, hours and working conditions Collective Bargaining  Negotiation process where management and unions reach agreement on wages, hours and working conditions for the bargaining unit (employees represented by union) …continued on next page

FHF Unionized Employees 12% of workforce Unionized workers often earn higher wages Concentrated in certain industries  Automotive manufacturing  Steel production  Construction  Public-sector (government)  Sports and acting unions 10-27

FHF Collective Bargaining Process 10-28

[] FHF The formal written document that stipulates the relationship between union and management for a specific time period. The outcome of collective bargaining Labor Contract

FHF Resolving Disputes Pickets  Public protests against the actions of the company or management Strike  Employee walkouts; work stoppage. Most effective economic weapon for unions in private sector Boycott  Attempt to keep people from purchasing the company’s products Lockout  Management’s version of the strike. Worksite is closed to prevent employees from working Strikebreakers  Hired by management to continue operations and reduce losses during a strike 10-30

FHF Third-Party Dispute Resolution Conciliation  3rd party intervention so that management & labor continue talks Mediation  3rd party helps to bring labor and management together to resolve disputes Arbitration  3rd party settles dispute by imposing solution that is legally binding 10-31

[] FHF The participation of different ages, genders, races, ethnicities, nationalities and abilities in the workplace Workforce Diversity Involves

FHF Why is Diversity Important?  Increasingly diverse workforce reflects increasingly diverse customer base  Diversity brings multiple perspectives to issues and improves problem solving and decision making  Organizations should work to improve their workforce diversity 10-33

FHF Valuing Workforce Diversity  More productive use of human resources  Reduced conflict among employees  More productive working relationships  Increased commitment to organizational goals  Increased innovation and creativity  Increased ability to serve the needs of diverse customers 10-34

FHF Affirmative Action Legally mandated plans that try to increase job opportunities for minority groups by: Analyzing the current pool of workers Identifying areas where women and minorities are underrepresented Establishing specific hiring and promotion goals to resolve the discrepancy Prohibits organizations from setting hiring quotas that might result in reverse discrimination 10-35