1. Managing Human Resources
Chapter 9 1 1

2. Chapter 9 Learning Goals
What is the human resource management process?
How are human resource needs determined?
How do human resource managers find good people to fill the jobs?
What is the employee selection process?
What types of training and development do organizations offer their employees?

3. Chapter 9 Learning Goals (cont’d.)
What is a performance appraisal?
How are employees compensated?
What is organizational career management?
What are the key laws and federal agencies affecting human resource management?
What trends are affecting human resource management?

4. Learning Goal 1 What is the human resource management process?
Job analysis and HR planning
Employee recruitment and selection
Employee training, performance appraisal, and compensation
Ends when employee leaves organization

5. Human Resource Management
The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals

6. Human Resource Management Process
Strategies & objectives of the organization
Job analysis & design
HR planning & forecasting
Employee recruitment
Employee selection
Training & development
Performance planning & evaluation
Compensation & benefits
Organizational career management

7. Learning Goal 2 How are human resource needs determined? Job analysis
Studying a job to determine its tasks and duties for
Setting pay
Determining employee job performance
Specifying hiring requirements
Designing training programs
Job description
Lists the tasks and responsibilities of the job
Job specification
Describes skills, knowledge, and abilities needed to fill the job described in the job description

8. HR planning & forecasting
Job analysis & design
HR planning & forecasting
Employee recruitment
Employee selection
Job Analysis:
A study of the tasks required to do a particular job well
job description
job specification 2 2

9. HR planning & forecasting
Job analysis & design
HR planning & forecasting
Employee recruitment
Employee selection
Demand forecast:
Determining the number of employees needed by some future time
Supply forecast (internal):
Estimating the number of current employees who will be available to fill various jobs at some future time 2 2

10. Labor Supply & Demand
Labor shortage in the 1990s has turned the tables for employers
some individuals seeking work advertise themselves as free agents
employers bid for interviews with free agents
US Department of Labor estimates there are 10 million free agents
Source: Entrepreneur, Jan. 2000, p. 16. 2 2

11. Learning Goal 3
How do human resource managers find good people to fill the jobs?
Most firms begin by trying to fill the job from within
If internal candidates are not available, an external search begins
Local media is used to find workers who are
Nontechnical
Unskilled
Nonsupervisory
Highly trained recruits are found by using
College recruiters
Executive search firms
Job fairs
Company Web sites

12. HR planning & forecasting
Job analysis & design
HR planning & forecasting
Employee recruitment
Employee selection
Recruitment:
Attempt to find and attract qualified applicants in the external labor market
job fair 2 2

13. Employee Talent Ratings made by Fortune magazine:
Most admired employee talent:
Microsoft
Cisco Systems
Coca-Cola
Least admired employee talent:
MedPartners
Shoney’s
Trump Hotels & Casinos
Source: Fortune, Mar. 1, 1999, p. 70. 2 2

14. Learning Goal 4 What is the employee selection process?
Applicant submits an application or résumé
Receives a short, structured interview
Applicant may be asked to take an aptitude, personality, or skills test
Selection interview
In-depth discussion of applicant’s
Work experience, skills, and abilities
Education and career interests
Applicants seeking professional or managerial positions may be interviewed by several people
Successful applicants may be asked to undergo a physical exam

15. HR planning & forecasting
Job analysis & design
HR planning & forecasting
Employee recruitment
Employee selection
Selection:
The process of determining which people in the applicant pool possess the qualifications necessary to be successful on the job 2 2

16. Steps of the Selection Process
Initial screening
Employment testing
Selection interview
Background and reference checks
Physical examination
Decision to hire 2 2

17. Learning Goal 5
What types of training and development do organizations offer their employees?
Training and development programs are designed to increase employees’ knowledge, skills, and abilities to foster job improvement
Formal training
Development programs
Job rotation
Executive education programs
Mentoring
Special project assignments

18. Training and Development:
Training & development
Performance planning & evaluation
Compensation & benefits
Training and Development:
Activities that provide learning situations in which an employee acquires additional knowledge or skills to increase job performance
on-the-job training
off-the-job training 2 2

19. Training and Development
Forecasting International predicts that the need for life-long learning will characterize business in the future
Implications:
need for higher training budgets
need for constant retraining due to turnover
use of technology for just-in-time training
training as a motivational & retention tool
Source: HR News, Dec. 1999, pp 2 2

20. Learning Goal 6 What is a performance appraisal
Compares an employee’s actual performance with the expected performance
Typically used to determine an employee’s
Compensation
Training needs
Advancement opportunities

21. Performance planning & evaluation process:
Training & development
Performance planning & evaluation
Compensation & benefits
Performance planning & evaluation process:
Performance planning:
Setting standards & expectations
Employee job task behavior
Performance evaluation
Rewards & job changes 2 2

22. Performance Evaluation
360° Evaluation: performance feedback that combines self-appraisal with ratings made by coworkers at the same level, above, and below the target person in the managerial hierarchy
Advantages:
provides a well-rounded view
avoids individual bias
can have more impact than a single source
can establish consensus

23. Learning Goal 7 How are employees compensated? Direct pay Indirect pay
Hourly wage or monthly salary paid to an employee
May include bonuses and profit shares
Indirect pay
Various benefits and services
Required by law: unemployment and worker’s compensation, Social Security
Optional: paid vacations and holidays, pensions, health and other insurance products, employee wellness programs, college tuition reimbursement

24. Types of Compensation or Pay:
Training & development
Performance planning & evaluation
Compensation & benefits
Types of Compensation or Pay:
hourly wages
salaries
piecework and commission
accelerated commission schedule
bonus
profit sharing
fringe benefits 2 2

25. Learning Goal 8 What is organizational career management?
Facilitation of employee job changes including
Promotions
Upward move with more authority, responsibility and pay
Transfers
Horizontal move in the organization
Layoffs
Temporary separation arranged by the employer, usually when business is slow
Retirements
Permanent separation that ends one’s career

26. Types of Career Change:
Organizational career management
1. Job change within the organization
transfer
promotion
demotion
2. Separation from the organization
layoff
termination
resignation
retirement 2 2

27. Learning Goal 9
What are the key laws and federal agencies affecting human resource management?
Federal law prohibits age, race, gender, color, national origin, religion or disability discrimination
Americans with Disabilities Act bans discrimination against disabled workers
Family and Medical Leave Act requires employers to provide employees up to 12 weeks of unpaid leave a year
Other Federal agencies dealing with HR administration:
Equal Employment Opportunity Commission (EEOC)
Occupational Safety and Health Administration (OSHA)
Office of Federal Contract Compliance Programs (OFCCP)
Wage and Hour Division of the Department of Labor

28. Laws Affecting Human Resources
1. Fair Labor Standards Act (1938)
2. Equal Pay Act (1963)
3. Occupational Health & Safety Act (1970)
4. Americans with Disabilities Act (1990) 2 2

29. Learning Goal 10 What trends are affecting human resource management?
Women comprise 45% of the American workforce
Growing numbers of dual-career couples
Companies are facing issues like sexual harassment and nonwork issues such as child and elder care
Workers change jobs 3 to 5 times during their career
Lessens loyalty between employer and employee
American workforce is becoming more diverse
Companies are offering diversity training and mentoring of minorities

30. Trends in Human Resources
1. Social change
More women in the work force
More people changing jobs
2. Demographics
More diverse work force
3. Advancing Technology
enables more outsourcing
enables more telecommuting
4. Global Competition
adaptable employees, need for language training & cultural orientation 2 2

31. Amount of Time MBAs Expect to Stay in Their First Job
People Changing Jobs
Amount of Time MBAs Expect to Stay in Their First Job
1 to 2 years
5 or more years
2 to 3 years
4 to 5 years
3 to 4 years
Source: Fortune, Mar. 16, 1998. 2 2