1. Human Resource Management
Chapter 10
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives
LO 1 Discuss how companies use human resources management to gain competitive advantage
LO 2 Give reasons why companies recruit both internally and externally for new hires
LO 3 Identify various methods for selecting new employees
LO 4 Evaluate the importance of spending on training and development

3. Learning Objectives (cont.)
LO 5 Explain alternatives for who appraises an employee’s performance
LO 6 Describe the fundamental aspects of a reward system
LO 7 Summarize how unions and labor laws influence human resources management

4. Human Resource Management
Human resources management (HRM)
Formal systems for the management of people within an organization.

5. Strategic Human Resources Management
Human capital
The knowledge, skills, and abilities of employees that have economic value.
Value as an asset
Carnegie quote

6. The HR Planning Process
Demand forecasts
determining how many and what type of people are needed.
Supply of labor
how many and what types of employees the organization actually will have.
Future leaders
Future managers
Bob Johnson at Provident mutual double the number of agents in five years from 300 to 600.
Standard & Poor’s said it could not be done because of only a 90% retention of existing agents and only a 10% delivery rate of hires.
For example start with 300 and at the end of the year with no recruiting you would be left with 270to get to the target of 345 at year end you would need to retain 75 new agents. To retain 75 you would need to recruit $10,000 for a cost in the first year of $1,500,000. Financially this would hurt the firm’s rating.

7. An Overview of the HR Planning Process
Good slide for your management book plus the next one.
Figure 10.1

8. Ex. 9.1 Strategic Human Resource Management
Ex. 9.1 Strategic Human Resource Management
Company Strategy
HRM planning
Job analysis
Forecasting
Recruiting
Selecting
Attract an Effective Workforce
Maintain an Effective Workforce
Wage and salary
Benefits
Labor relations
Terminations
What is the picture of the person you want for an effective workplace? What about the benefits? How do you complete that picture through training? Described Phoenix mutuals data dimensions. Go into the nine satisfiers of a career money, challenge, growth, prestige,recognition, people, intellectual,
Develop an Effective Workforce
Training
Development
Appraisal
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9. The HR Planning Process
Job analysis
A tool for determining what is done on a given job and what should be done on that job.

10. Ex. 9.4 Attracting an Effective Workforce
Ex. 9.4 Attracting an Effective Workforce
Choose Recruiting
Sources
Want ads
Headhunters
Internet
Select the
Candidate
Application
Interview
Tests
HR Planning
Retirements
Growth
Resignations
Welcome New
Employee
Company Needs
Strategic goals
Current and future competencies
Market changes
Employee turnover
Corporate culture
Matching Model
Employee Contributions
Ability
Education and experience
Creativity
Commitment
Expertise and knowledge
Match with
Company Inducements
Pay and benefits
Meaningful work
Advancement
Training
Challenge
Covey’s vision-begin with the end in mind. Who will develop into the employee that can be empowered. Will they be a short-term or long-term employee. Tell me about yourself. Your management book.
Employee’s Needs
Stage of career
Personal values
Promotional aspirations
Outside interest
Family concerns
Match with
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11. Staffing the Organization
Recruitment
The development of a pool of applicants for jobs in an organization
Internal, external
Selection
Choosing from among qualified applicants to hire into an organization

12. Selection Interviews Background Checks Personality Tests
Applications and Résumés
Reference Checks
Drug Testing
Cognitive Ability Tests
Performance Tests
Integrity Tests
Interviews
Background Checks
Personality Tests
Government validity

13. Interviewing a Job Applicant
Use open-ended questions in which the right answer is not obvious.
Prepare a road map.
Know what you want.
What is a good interview what is a bad interview? What are you trying to find out? Are they talking or are they listening?
Do not ask questions that are not relevant to the job.
Allow enough time so that the interview will not be rushed.
Listen--don’t talk.
Avoid reliance on your memory.
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.

14. Interviews Structured interview
Selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers.
Be prepared. Covey “the end in mind. What are your satisfiers that can fill the applicants needs?

15. Use of Pre-employment Selection Tools
Facebook, phone answering message.
Figure 10.2

16. Performance Tests Assessment center
A managerial performance test in which candidates participate in a variety of exercises and situations.
Data Dimensions
City Council, inbox

17. Training “the end in mind” Visualize Needs
Orientation, team training, computer, DVD,
Mentors, shadowing.
Appraisals with methods to overcome deficiencies.

18. Reliability and Validity
The consistency of test scores over time and across alternative measurements.
Validity
The degree to which a selection test predicts or correlates with job performance
Criterion, content
AIB--- compliance

19. Workforce Reductions Outplacement
The process of helping people who have been dismissed from the company regain employment elsewhere.
Cost
Agreement
Cost and generally assigned agreement

20. Termination Employment-at-will
The legal concept that an employee may be terminated for any reason.

21. Advice on Termination
Aetna
Table 10.1

22. Legal Issues and Equal Employment Opportunity
Adverse impact
When a seemingly neutral employment practice has a disproportionately negative effect on a protected group.
Competition

23. Performance Appraisal
360-degree appraisal
Process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance

24. Giving Feedback Summarize the employee’s performance, and be specific.
Explain why the employee’s work is important to the organization.
Thank the employee for doing the job.
Raise any relevant issues, such as areas for improvement.
Express confidence in the employee’s future good performance.
Can you give negative feedback?

25. Factors Affecting the Wage Mix
Figure 10.6

26. Pay Structure
Figure 10.7

27. Employee Benefits Cafeteria benefit program Flexible benefit programs
An employee benefit program in which employees choose from a menu of options to create a benefit package tailored to their needs.
Save 10%
Flexible benefit programs
Benefit programs in which employees are given credits to spend on benefits that fit their unique needs. comparable worth
401(k)---Vision, dental, vacation, sick days, workers compensation and social security. Mandated

28. Designing the “Right” Package of Benefits
Usually Mandatory
Social security
Workers’ compensation
Unemployment compensation
Group life insurance
Retirement pensions
Paid vacations
Optional but Frequently Offered
Disability insurance
Paid sick leave
Health insurance
Employee assistance program
Paid rest breaks
Tuition assistance
Optional but Less Frequently Offered
Wellness programs
Credit unions
Funeral leave
Vision-care plans
Parental leave
Retirement counseling
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Adapted from Exhibit 10.10 9

29. Labor Relations Labor relations
The system of relations between workers and management.

30. Collective Bargaining
Union shop
An organization with a union and a union security clause specifying that workers must join the union after a set period of time.
Right-to-work
Legislation that allows employees to work without having to join a union.

31. Determinants of Union Voting Behavior
Figure 10.8

32. Managing Diversity
History
Laws
Cultural
Older
Women
Labor force

33. The Changing Workplace
 Cultural diversity & employee attitudes
 Immigrants
 Many are women
 People of color
 Globalization
 Average worker is older now
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34. Guidelines for Diversity Training
Table 11.8

35. Sexual Harassment Quid pro quo harassment Hostile environment
Submission to or rejection of sexual conduct is used as a basis for employment decisions
Hostile environment
Occurs when unwelcome sexual conduct has the effect of unreasonably interfering with job performance or creating an intimidating or hostile, working environment

36. Basic Components of an Effective Sexual Harassment Policy
Table 11.3

37. Five Proven Stress Busters
Take a brief break from a stressful situation and do something small and constructive, like washing your car or getting a hair cut.
Get help with a stressful task from a co-worker, boss, or friend.
Concentrate intensely on reading, surfing the Internet, a sport, or hobby. Contrary to common sense, concentration is at the heart of stress reduction.
Finish anything you have started. Accomplishing almost anything reduces some stress.
Find somebody or something that makes you laugh, and have a good laugh.
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38. Techniques to Reduce and Control Procrastination
Break task down into smaller units
Post a progress chart in your work area
Make a commitment to others
Techniques to Reduce and Control Procrastination
Force yourself to confront an uncomfortable task
Reward yourself for achieving milestones
Use subliminal messages
Calculate the cost of procrastination
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