2. Chapter Thirteen Human Resource Management © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Introduction to Business

3. 13 - 3 Human Resource Management (HRM) Systems Human resources – all the people that a business employees Human resource management -the set of activities designed to recruit high- quality employees and then improve their skills and capabilities

4. 13 - 4 The Five Components of the HRM System Figure 13.1

5. 13 - 5 Recruitment and Selection Recruitment - the process of identifying and attracting a pool of qualified applicants Selection – involves creating the set of criteria that determines which job applicants are the best match for a particular job

6. 13 - 6 External and Internal Recruitment Internal recruitment -a policy of promoting employees who already work for a company External recruitment -a policy of filling advanced job positions with applicants from outside the company

7. 13 - 7 The Selection Process Step 1: Screening applications and résumés Step 2: Applicant testing and reference checks Step 3: The interview process Step 4: Making the final selection Sample interview questions

8. 13 - 8 The Four Steps in the Selection Process Figure 13.3

9. 13 - 9 The Interview Process Structured interview -all applicants are asked a series of standard questions Nondirective interviews -questions are open ended to give applicants ample opportunity to reveal skills, abilities, strengths, and weaknesses

10. 13 - 10 Types of Standardized Tests Figure 13.4

11. 13 - 11 Training and Development -the process through which companies increase their employees’ work skills and knowledge to improve their job performance

12. 13 - 12 Training-Needs Analysis Training-needs analysis -a method of identifying the kinds of employee training that will result in the greatest performance gains Training gap -a specific type training an employee needs to acquire

13. 13 - 13 Training-Needs Analysis Figure 13.5

14. 13 - 14 Types and Methods of Training and Development On-the-job training -training employees receive in the course of doing their jobs

15. 13 - 15 Methods of Training and Development Figure 13.6

16. 13 - 16 The Components of a Human Resource Management System Performance appraisal -the task of accurately identifying differences in the level and quality of work employees do and providing them with feedback that increases their performance levels

17. 13 - 17 Performance Appraisal and Feedback Performance appraisal -the process of evaluating the contributions an employee has made toward a company’s functional and corporate-wide goals Performance feedback -the communication of performance appraisal information to employees to influence their future performance levels

18. 13 - 18 Performance Appraisal Methods Managers can evaluate: 1)Results or outcomes of an employee’s activities 2)Specific employee actions or behaviors that produced those outcomes

19. 13 - 19 Who Appraises Performance? Figure 13.7

20. 13 - 20 Who Appraises Performance? 360-degree performance appraisal -the process of using multiple sources of information to appraise an employee’s performance

21. 13 - 21 Giving Performance Feedback Formal appraisals -appraisals conducted on a regular basis to provide employees with ongoing performance feedback Informal appraisals -appraisals that take place as managers and subordinates meet from time to time to discuss important work issues

22. 13 - 22 Pay and Benefits Pay -the monetary rewards, such as wages, bonuses, and salaries, associated with a particular job Benefits -the monetary rewards, such as paid health care, life insurance, sick and vacation pay, and pensions, employees receive because they are a member of a company

23. 13 - 23 Pay and Benefits Pay structure -the relative pay and benefits received by employees doing different types of jobs or jobs at different levels in a company’s hierarchy Pay level -the average salary a company chooses to pay its employees compared to other companies in its industry

24. 13 - 24 Types of Incentive Pay Incentive pay -the extra rewards employees receive when they achieve specific work goals

25. 13 - 25 Individual Incentive Plans Piecework plans -pay plans that link the pay employees receive to the number of units of a product an employee makes Commission systems -pay plans that link the pay employees receive to the amount of revenue they earn by selling a company’s products

26. 13 - 26 Individual Incentive Plans Merit pay -a pay system that links superior performance directly to higher permanent rewards, such as a certain percentage increase in salary Bonus pay -a one-time reward employees receive for accomplishing a specific goal

27. 13 - 27 Group and Companywide Reward Systems Profit sharing plans -pay plans that reward employees on the basis of the profit a company earns in a particular period Employee stock ownership plan -a plan that allows employees to buy a company’s shares at below-market prices

28. 13 - 28 Group and Companywide Reward Systems Organization bonus systems -the one-time rewards employees receive if a company achieves cost savings, quality increases, and so on, in a specified time period

29. 13 - 29 The Components of a Human Resource Management System Labor relations -the process of working with employees, or the unions that represent them, to create work rules and a negotiation process to resolve disputes between them

30. 13 - 30 Labor Relations Labor relations -the process of establishing rules and practices between a company and its employees that specify how human resources should be employed and rewarded

31. 13 - 31 Labor Relations Trade unions -organizations that represent the interests of employees who hold similar types of jobs in a particular industry

32. 13 - 32 Competition and Cooperation among Stakeholders Figure 13.8

33. 13 - 33 Union-Management Relations Industrial conflict -the clash that occurs when workers and unions attempt to obtain a greater share of a company’s profits at the expense of other stakeholders Working-to-rule -when workers perform their jobs exactly as specified in their employment contracts but do no more

34. 13 - 34 Union-Management Relations Lockout -when managers decide to shut down a company’s operations until workers are willing to accept the employment conditions being offered to them Strike -a situation that arises when workers refuse to do their jobs in an attempt to bring the work process to a halt

35. 13 - 35 Collective Bargaining: Resolving the Conflict Collective bargaining -the process through which union representatives and managers negotiate a binding labor agreement over work-related issues, such as pay, benefits, and grievance procedures

36. 13 - 36 Collective Bargaining: Resolving the Conflict Integrative bargaining solution -a “win-win” solution that allows both parties to benefit from the labor contract agreed upon Attitudinal structuring -the attempt by negotiators on each side to influence each other’s attitudes during the bargaining process

37. 13 - 37 Collective Bargaining: Resolving the Conflict Grievance procedures -labor-contract rules used to resolve labor disputes between companies and their employees

38. 13 - 38 Collective Bargaining: Resolving the Conflict Mediation -a conflict resolution method that involves the use of a neutral third party, or mediator, to help labor and management resolve their differences and reach an agreement

39. 13 - 39 Collective Bargaining: Resolving the Conflict Arbitration -a conflict resolution method that involves the use of a third party to negotiate and impose a binding agreement on labor and management

40. 13 - 40 Human Resource Planning Human resource planning -the process of forecasting the type and number of employees a company will require in the future to meet the objectives of its business model

41. 13 - 41 Human Resource Planning Job analysis -the process of obtaining detailed information about the tasks and responsibilities involved in each job in a company

42. 13 - 42 Human Resource Planning Job description -a list of the specific tasks, duties, and responsibilities that make up a particular job Job specifications -a written list of the required skills, abilities, and knowledge needed to do a particular job

43. 13 - 43 Technical Sales Representative Figure 13.2