Human Resource Management 1

True or False Dealing effectively with Human Resource (HR) issues is key to a managers success? 2

Dealing effectively with human resource (HR) issues is essential for all managers. The human resource staff supports managers in carrying out HR responsibilities. 3

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Human Resource Management Process Strategic HR Planning HR Tactics StaffingOrientationTraining Career Development Performance Appraisal Compensation and Benefits 5

What resources drive a business? Capital Technology Natural Human 6

Human Capital an organization’s employees described in terms of their: Human Capital – an organization’s employees described in terms of their: ◦ training ◦ experience ◦ judgment ◦ intelligence ◦ relationships ◦ insight The concept of “human resource management” implies that employees are of the employer. The concept of “human resource management” implies that employees are resources of the employer. 7

Impact of Human Resource Management 8

Competitive Advantage Human Capital as Source of Competitive Advantage Human Capital Value Associates are capable of performing the basic work of the organization Human Capital Rareness Skills and talents of associates are unique in the industry Human Capital Imitability Skills and talents of associates cannot be copied by other organizations 9

Supervisors’ Involvement in HRM 10

Ethics & Fair Treatment at Work The Meaning of Ethics “Making decisions that represent what you stand for, not just what the laws are.” 11

Video – Patagonia 12

Environment of Human Resources Workforce Diversity Globalization LegislationUnions 13

Key Federal Legislation and Regulations Affecting HR Social Security Act (1935) Wagner Act (1935) Fair Labor Standards Act (1938) Taft-Hartley Act (1947) Landrum-Griffin Act (1959) Equal Pay Act (1963) Title VII of Civil Rights Act (1964) Executive Order (1965) Age Discrimination in Employment Act (1967) Wage Garnishment Act (1968) Occupational Safety and Health Act (1970) Vocational Rehabilitation Act (1973) Health Maintenance Organization Act (1973) Employee Retirement Income Security Act (1974) Vietnam-Era Veterans Readjustment Act (1974) Privacy Protection Act (1974) Pregnancy Discrimination Act (1978) 14

Key Federal Legislation and Regulations Affecting HR (cont) Job Training Partnership Act (1982) Consolidated Omnibus Budget Reconciliation Act (1985) Immigration Reform and Control Act (1986) Worker Adjustment and Retraining Act (1988) Drug-Free Workplace Act (1988) Employee Polygraph Protection Act (1988) Americans with Disabilities Act (1990) Civil Rights Act (1991) Family and Medical Leave Act (1993) Health Insurance Portability and Accountability Act (1996) Small Business Job Protection Act (1996) Fair Credit Reporting Act (1970, 1996) 15

Key HR Legislative Issues Discrimination Protected Class Affirmative Action Disparate Treatment Adverse Impact Job Relatedness BFOQ Sexual Harassment Employment at Will 16

Staffing Process Recruitment – the process of generating a pool of qualified candidates for a particular job. An effective recruitment effort should create a pool of qualified applicants. Selection – the screening process used to decide which of the applicants to hire. 17

SELECTION TOOLS Application Forms Letters of Recommendation Ability Tests Performance Simulation Tests Personality Tests Psychological Tests Honesty Tests Interviews Physical Exams 18

Pre-Employment Screen Pre-employment questionnaire designed to identify high-risk applicants - False Insurance Claims - Violence - Drugs - Theft - Honesty

Overall Responses Insight Worldwide data: 7.4% admit to work comp fraud 11.9% admit to current drug use 7.4% admit to theft behavior 4.1% admit to violent behavior

Sample Questions “Please check the category that best describes your current use of cocaine (coke, snow, etc.)” - A. Heavy, but controlled - B. Recreational use only - C. Very light use (less than 4 times a year) - D. Do not use

Sample Questions “If you had other things you needed to do, would you fake a work-related injury to leave work early?” - A. I definitely would - B. I probably would - C. I probably would not - D. I definitely would not

Sample Questions “What is the total dollar value of items or property you have taken from employers over the past two years?” - A. $201 or more - B. $51- $200 - C. $10- $50 - D. None

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Four Kinds of Interview Questions Rapport-Building - put the candidate at ease Open-Ended - get the candidate to talk Probing questions - get you more information Non-question Questions - make candidate more comfortable 25

Other Key Points Allow for silence Ask for Contrary Evidence 26

An example of a rapport- building question is? A) You said you were a lead person on the project, what was the most difficulty task? B) Give me an example you went against company policy? C) Do you know how to work on a PC? D) Did you run into traffic on the way here? 27

The Three E’s of Listening Ears Eyes Emotions 28

How We Receive the Communicated Message 29

Listening With Your Ears 30

Listening With Your Eyes: Visual Accessing Cues V/c V/r A/cA/r K A 31

Validity and Reliability of Selection Tools Validity is how well a technique used to assess candidates is related to performance on the job. Validity can be demonstrated by:  Content Validity  Empirical Validity Reliability is a measure of the consistency of results of the selection method. 32

Orientation Helps new employees to:  Learn more about the company  Learn what is expected of them in the job  Reduce the initial anxiety of a transition  Become familiar with co-workers  Learn about work rules and personnel policies 33

Employee Training Training is a planned effort to provide employees with specific skills to improve their performance. Effective training can also improve morale and increase an organization’s potential. 34

The Training Process Needs Assessment Develop and Conduct Training Evaluation Organization Needs Organization Needs Task Needs Task Needs Person Needs Person Needs Location Location Presentation Presentation Type Type 35

Career Development Long-term effort in which the organization helps employees utilize their full potential. Involves three major phases:  Assessment  Direction  Development 36

The Career Development Process Assessment Direction Development Promotability forecasts Succession planning Individual career counseling Job posting systems Career resource centers Mentoring Coaching Job rotation Tuition assistance programs 37

Performance Appraisal Performance appraisal has three important objectives:  Two-way communication between supervisors and employees.  Constructive feedback to employees in order to capitalize on strengths and reduce weaknesses.  Help managers decide who should be paid more based on contribution. 38

Step 6 Step 4 Step 3 Step 2 Develop or review standards Step 1 Step 5 Organization’s purpose, strategic and operational objectives, and plans Identify Performance Issue Prepare and conduct employee meeting to correct performance Review, revise, or recognize Repeat Identify and document gaps in performance Discipline Congratulate 39

Components of Total Compensation Total Compensation Base Compensation Pay Incentives Indirect Compensation / Benefits 40

Compensation System Should: Fit the firm’s strategic objectives Fit with the firm’s characteristics and environment Achieve internal equity (perception of fairness) Achieve external equity Be based on employee contributions 41

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