Chapter 7 Human Resources Management

What Is HR? Human resources management (also known as staffing) consists of planning, attracting, developing, and retaining employees.

Figure 7.1

HR for the Dodgers Irene Tanji was with the HR department of the Los Angeles Dodgers from 1958 to She started as a secretary and worked her way up through the ranks to become director of human resources. Tanji believes that HR people in pro sports face a variety of challenges in the present business environment. Issues include educating young players regarding their benefits and providing services for ethnically diverse players.

Legal Environment Irene Tanji believes the main challenge that HR departments face is keeping up with legal issues. She includes updating benefits, monitoring new medical insurance regulations, and administering the Dodgers’ 401(k) retirement plan as complex issues with serious legal implications.

Hiring Process Every question you ask should be job-related. When developing questions, make sure you have a purpose for using the information. Ask only legal questions you plan to use in your selection process. General questions should be asked of all candidates.

Bona Fide Occupational Qualification (BFOQ) A bona fide occupational qualification allows organizations to base their hiring decisions on otherwise discriminatory attributes when it is reasonably necessary to the normal operation of a particular organization. Is age a BFOQ in pro sports? Do you believe salary cap management practices discriminate against older players?

Human Resources Department HR recruits employees for line managers to select from as they hire new people. HR conducts orientation sessions for new hires and trains many of them to do their jobs. HR keeps employment records. HR is often involved with legal matters. HR develops the performance appraisal system and forms. HR determines compensation guidelines. HR develops employee health and safety programs, works on labor relations, and assists in the termination of employees.

Strategic Human Resources Planning Strategic human resources planning is the process of staffing the organization to meet its objectives. The director of player development for the Dallas Cowboys typically spends his time finding replacements for injured players, working on problems with the coaching staff, and preparing for contract negotiations.

HR at the Olympics and World Cup HR consultant Priscilla Florence has served as the HR person for two international sports events: the 1984 Los Angeles Olympics and the FIFA Soccer World Cup in Her responsibilities involve recruiting, hiring, training, and organizing paid employees and volunteers.

Job Analysis Job analysis is the process of determining what the position entails and the qualifications for staffing the position. Job description identifies the tasks and responsibilities of a position. In other words, it identifies what employees do to earn their pay.

Job Specifications Job specifications identify the qualifications for staffing a position. The job specifications thus identify the types of people needed.

Recruiting Recruiting is the process of attracting qualified candidates to apply for job openings. Professors with doctorates in sport management are in short supply and high demand as numerous colleges add sport management programs to their offerings. Administrators will have to use all types of recruitment methods to attract qualified sport management professors.

NCAA College Football Recruitment NCAA football teams also need to recruit high school players to play at their universities. An ESPN study found that Florida, Texas, USC, Alabama, Florida State, Notre Dame, Georgia, LSU, Miami, Ohio State, and Oklahoma had had the best recruiting programs since Recruiting great high school players to play in college is effective only if they learn to win games together. The top 10 recruiting universities have won their share of NCAA National Championships.

Recruitment of LeBron James When LeBron James of the Cleveland Cavaliers became a free agent in 2010, he became part of one of the most public recruitment processes in sport. James ultimately decided to play with the Miami Heat. James left his hometown, Cleveland, to be part of Miami's plan to start him, Dwayne Wade, and Chris Bosh, who was another free-agent acquisition. They won an NBA Championship in 2012.

Figure 7.2

Figure 7.3

Figure 7.4

Interview Steps Open the interview. Give your realistic job preview. Ask your questions. Introduce top candidates to co-workers. Close the interview.

Table 7.1

Table 7.1 (continued)

Labor Relations Labor relations are the interactions between management and unionized employees.

Figure 7.10

How Baseball Players Joined the Union Conflicts between baseball players and owners date to the 1880s. Fans have endured five strikes since 1966 and the owners have locked players out three times (1973, 1976, and 1990). Salary caps are the maximum amount of money a team can spend on players. In the 1880s MLB owners established the first salary cap in pro sports. Their $2,000 salary cap was not peanuts at the time, although it seems paltry today.

Free Agency: Curt Flood In 1969, St. Louis Cardinals star player Curt Flood asked for a substantial salary increase but instead found himself promptly traded to the Philadelphia Phillies. He sued to stay in St. Louis. This case went all the way to the Supreme Court, which ruled against Flood, citing the Federal Base Ball decision of 1915.

Free Agency: Catfish Hunter A successful challenge to the reserve clause didn’t occur until the 1970s. The first case came when Charles Finley, owner of the Oakland Athletics, withheld part of Catfish Hunter’s $100,000 salary. Hunter’s contract stipulated that half of his salary go toward purchasing an annuity in an insurance fund. Finley didn’t pay because of a tax question, so he had not fulfilled the contract, and this allowed Hunter to become a free agent.

Free Agency: Andy Messersmith Rather than sit out the 1975 season, Andy Messersmith of the Los Angeles Dodgers played under the standard contract that was renewed by the Dodgers, but he never signed it. Courts later ruled that when Messersmith chose to play at the Dodgers’ option, but without signing the new contract, he became a free agent.

Collusion The 1976 baseball season started without a contract, so owners locked players out of spring training that year. Owners were subsequently found guilty in court of collusion three times (1987, 1988, and 1990). Collusion meant the owners were guilty of working together to organize how they would bid or not bid for free- agent ballplayers.

Baseball Strike of The baseball season ended in a strike, and the World Series was cancelled. Even the 2002 season was played under the shadow of labor tensions and threats of a strike. Fortunately, both sides were able to negotiate a last-minute settlement, and the 2002 season was completed as scheduled.

Collective Bargaining Collective bargaining is the process whereby unions and management negotiate a contract that covers employment conditions at the organization.

Mediation and Arbitration Mediators are neutral parties who help management and labor settle disagreements. In cases where the two parties are unwilling to compromise but still want to avoid a strike or lockout, they may choose to call in an arbitrator. Arbitrators differ from mediators in that arbitrators’ decisions are binding (must be followed). Arbitrators more typically work to settle grievances; mediators deal with impasses in collective bargaining.

Termination In 2007, Carlsbad-based golf equipment company TaylorMade-Adidas cut its work force by 41. The cuts were part of a process of determining how well the company's workforce meets its needs.

Outplacement Services When companies undergo layoffs, they sometimes offer outplacement services, which help employees find new jobs.