1. 当代商业概论 Fundamentals of Business Lecture 8: Human resource Management

2. What to cover today ： 1. Human resource management 2. Recruitment 3. Training and development 4. Performance appraisal 5. Compensation 6. Labor relations Exercises

3. 1. Human resource management Human resource (HR) 人力资源 is: Human resource (HR) 人力资源 is: -- all the people a company employs, from its CEO and top managers, the middle mangers throughout its first-line managers to its nonmanagerial employees Human resource management (HRM) 人力资源 管理 is: Human resource management (HRM) 人力资源 管理 is: -- the set of activities designed to recruit high- quality employees and then improve their skills and capabilities; the primary responsibility of the HR function (a staff department) is to develop a company’s HRM system

4. A human resource management system determines how a company makes decisions about: Recruitment Compensation Training & development Performance appraisal Five components of the HRM system Labor relations

5. 2. Recruitment -- the process of identifying and attracting a pool of qualified employees needed by the company 2.1 Human resource planning 人力 资源规划 -- planning to satisfy a firm’s needs for people forecasting staffing needs forecasting staffing needs job analysis job analysis

6. Forecasting 预测 (short term, intermediate term, long term): normal turnover rate 人员流动率 normal turnover rate 人员流动率 upcoming retirement upcoming retirement business expansion: more branches, richer product mix business expansion: more branches, richer product mix Job analysis 工作分析 : Job description (JD) 工作描述 : states the tasks and responsibilities of a job position Job description (JD) 工作描述 : states the tasks and responsibilities of a job position Job specification (JS) 工作要求 : states the specific qualifications required by a job position Job specification (JS) 工作要求 : states the specific qualifications required by a job position

7. Sample JD & JS: Technical sales representative

8. 2.2 Internal recruitment -- an effort to fill vacant positions with people already employed by the firm through promotion or transfer Closed promotion system 封闭型晋升制度 : usu. for smaller companies Open promotion system 公开型晋升制度 : usu. for big or more democratic companies

9. Benefits: better knowledge of the candidates better knowledge of the candidates reduced turnover, and costs of hiring and training reduced turnover, and costs of hiring and training higher morale among employees higher morale among employees “The Customer-centered Wal-Mart culture must be embraced by thousands of new Associates if the Company is to keep growing. One way we’ll retain that culture is by continuing to recruit nearly 70 percent of our management from the ranks of hourly workers. When room is available, college students who are working for Wal-Mart are the first considered for management job.” “The Customer-centered Wal-Mart culture must be embraced by thousands of new Associates if the Company is to keep growing. One way we’ll retain that culture is by continuing to recruit nearly 70 percent of our management from the ranks of hourly workers. When room is available, college students who are working for Wal-Mart are the first considered for management job.” -- Wal-Mart annual report

10. 2.3 External recruitment -- an effort to fill vacant positions with applicants from outside the firm, mostly for entry-level positions Benefits: bring in new ideas bring in new ideas undermine competing companies undermine competing companiesConcerns: expensive and time-consuming expensive and time-consuming demotivate existing employees, glass ceiling demotivate existing employees, glass ceiling

11. 2.3.1 Sources of external recruiting 1. Educational institutions: campus recruiting campaigns/visits 2. Employment agencies: career centers, headhunters, job fair 3. Job advertisements: sending company brochures to potential candidates, job ads on media 4. Business rivals

12. 2.3.2 The selection process Applications and resumes Screening Interviews and tests Background and reference checks In-depth structured/ unstructured interviews Physical exam Hiring decision

13. Recruitment costs: cost of filling each entry-level position: $1,000 – $5,000 cost of filling each entry-level position: $1,000 – $5,000 cost of filling each advanced position: $10,000 – $20,000 cost of filling each advanced position: $10,000 – $20,000 Ethical and legal concerns: At every stage in the selection applicants are not disqualified for non-job related reasons. At every stage in the selection process, ethical and legal concerns make it vital that applicants are not disqualified for non-job related reasons. Many laws govern the way U.S. companies make their selection decisions, preventing discrimination against people and groups because of their age, gender, race, ethnics, religion, and so on. Many laws govern the way U.S. companies make their selection decisions, preventing discrimination against people and groups because of their age, gender, race, ethnics, religion, and so on. appropriate and inappropriate interviewing questions appropriate and inappropriate interviewing questions

14. 2.4 Other staffing policies demotion 降职 demotion 降职 termination 停止雇用 : severance 离职 金 termination 停止雇用 : severance 离职 金 dismissal/dehiring 解雇 dismissal/dehiring 解雇 resignation 辞职 resignation 辞职 retirement 退休 : pension 退休金 retirement 退休 : pension 退休金

15. 3. Training and development -- the process through which companies increase their employees’ work skills and knowledge to improve their job performance training-needs analysis 培训需求分析 : a method used by HRM managers to identify the kinds of employee training that will result in the greatest performance gains training gap: a specific type of training an employee needs to acquire

16. Case study: Citibank’s training program When Citibank conducted a training-needs analysis and identified that inefficient, poor quality customer service was causing the company to lose accounts, it invested $1 billion in a companywide, total quality management (TQM) training program to improve service. Citibank claims the investment resulted in a 15% increase in the number of customer accounts it has, and $2 billion in cost savings. When Citibank conducted a training-needs analysis and identified that inefficient, poor quality customer service was causing the company to lose accounts, it invested $1 billion in a companywide, total quality management (TQM) training program to improve service. Citibank claims the investment resulted in a 15% increase in the number of customer accounts it has, and $2 billion in cost savings.

17. Methods of training and development orientation 迎新培训 orientation 迎新培训 on-the-job training 在岗培训 on-the-job training 在岗培训 off-the-job training 离岗培训 : classroom instruction, seminars, role playing, field trips, real-life simulations and experiential training, business games and case studies, satellite programming, e-learning via the Internet off-the-job training 离岗培训 : classroom instruction, seminars, role playing, field trips, real-life simulations and experiential training, business games and case studies, satellite programming, e-learning via the Internet

18. 4. Performance appraisal 绩效考 核 -- the process of evaluating the contributions an employee has made toward a company’s functional and corporate-wide goals Results-based appraisal: the most cost- effective way to appraise Behavior-based appraisal: have to first of all identify a series of important job-related bahaviors

19. 4.1 Sources and methods of performance appraisal Sources: Sources: Who to appraise? managers co-workers subordinates customers self 360-degree performance appraisal 360 度绩效 考核 : the process of using multiple sources of information to appraise an employee’s performance

20. Methods: Methods: How to appraise? Informal appraisal: take place as managers and subordinates meet from time to time to discuss important work issues Formal appraisal: conducted on a regular basis to provide employees with ongoing performance feedback rating scale: using a performance evaluation form employee comparison free-form essay critical-event essay

21. 4.2 Performance feedback -- the communication of performance appraisal information to employees to influence their future performance levels Guidelines for effective performance feedback: Avoid criticizing an employee’s general approach to work, or “personality” or “personal style” issues; focus on specific work outcomes or behaviors that are problematic Identify the source of problems as well as the specific ways of solving the problem Provide positive feedback whenever possible in the course of providing ongoing negative feedback Take advantage of informal appraisal opportunities to provide constructive feedback to motivate employees

22. 5. Compensation Pay structure 薪酬结构 : the relative pay and benefits received by employees doing different types of job or jobs at different levels within a company; must be equitable Pay level 薪酬水平 : the average salary a company chooses to pay its employees compared to other companies in its industry; must be competitive Types of compensation: base pay base pay incentives incentives benefits benefits

23. Base pay 基本工资 : monetary, position-based, for the minimum acceptable performance Base pay 基本工资 : monetary, position-based, for the minimum acceptable performance Wage: time wage 计时工资, piece rate wage 计件工资, combination Wage: time wage 计时工资, piece rate wage 计件工资, combination Salary: weekly, monthly, or yearly Salary: weekly, monthly, or yearly Incentive programs 激励措施 : monetary, extra- performance-based Incentive programs 激励措施 : monetary, extra- performance-based individual incentive plansbonus 分红, stock options 股 票期权, merit pay (certain percentage increase in salary) 绩效工资, commission 提成 individual incentive plans: bonus 分红, stock options 股 票期权, merit pay (certain percentage increase in salary) 绩效工资, commission 提成 group and companywide incentive plans: gain/profit- sharing plan 收益 / 利润分享计划, employee stock ownership plan (ESOP) 员工股权分享 group and companywide incentive plans: gain/profit- sharing plan 收益 / 利润分享计划, employee stock ownership plan (ESOP) 员工股权分享 Fringe benefits 福利待遇 : not necessarily monetary, employment-based Fringe benefits 福利待遇 : not necessarily monetary, employment-based forms: life, health and disability insurance, pension plans, overseas trips, paid vacations, health care, staff discount, free legal service, cafeteria benefits 自选福利 forms: life, health and disability insurance, pension plans, overseas trips, paid vacations, health care, staff discount, free legal service, cafeteria benefits 自选福利

24. Case study: Designing a proper compensation package for Web Czar The ideal forms of compensation a firm offers to its employees should vary across job descriptions. To illustrate, consider Web Czar Company, which has three types of line job positions: (1) Web design specialists (website designers), who are responsible for the development of websites; (2) Web technicians, who provide technical assistance to the Web designers; and (3) Customer service representatives, who sell the Web design services to businesses. The ideal forms of compensation a firm offers to its employees should vary across job descriptions. To illustrate, consider Web Czar Company, which has three types of line job positions: (1) Web design specialists (website designers), who are responsible for the development of websites; (2) Web technicians, who provide technical assistance to the Web designers; and (3) Customer service representatives, who sell the Web design services to businesses. As the HR manager of Web Czar, you are now supposed to design a overall compensation package (including base pay, incentives and benefits) for the company, catering to the characteristics of each job position. As the HR manager of Web Czar, you are now supposed to design a overall compensation package (including base pay, incentives and benefits) for the company, catering to the characteristics of each job position.

25. The forms of compensation should vary with the job position, and all employees should have an incentive to perform well because their compensation is directed linked to their work performance: The Web design specialists: salary + bonus if customers are very satisfied with the websites they create The Web design specialists: salary + bonus if customers are very satisfied with the websites they create The Web technicians: salary (lower than the Web design specialists) + bonus if they perform well for the Web design specialists The Web technicians: salary (lower than the Web design specialists) + bonus if they perform well for the Web design specialists The customer service reps: salary (lower than the Web technicians) + commission based on the volume of orders that they solicit from businesses The customer service reps: salary (lower than the Web technicians) + commission based on the volume of orders that they solicit from businesses Benefits: life and health insurance, eye care, free massage, department retreat, paid vacations, pensions

26. 6. Labor relations -- the process of establishing rules and practices between a company and its employees that specify how human resource should be employed and reward Labor union 工会 : an association established to represent the views, needs, and concerns of labor; local, national, international Labor union 工会 : an association established to represent the views, needs, and concerns of labor; local, national, international Industrial conflict 劳资纠纷 : the class that occurs when workers, or the union representing them, attempt to gain a greater share of a company’s profits at the expense of other stakeholders Industrial conflict 劳资纠纷 : the class that occurs when workers, or the union representing them, attempt to gain a greater share of a company’s profits at the expense of other stakeholders

27. Negotiations between unions and management: compensation: unionized employees generally receive a higher pay compensation: unionized employees generally receive a higher pay job security: laid-off decisions job security: laid-off decisions management rights: work hours, hiring, promotion, transfer management rights: work hours, hiring, promotion, transfer grievance procedures 申诉程序 : a complaint made by an employee or the union grievance procedures 申诉程序 : a complaint made by an employee or the union

28. Methods to pressure management: working-to-rule 消极怠工 : working-to-rule 消极怠工 : performing exactly what the employment contracts specify, but doing no more picketing 游行示威 : walking around near the employer’s building with signs complaining of poor working conditions or issues picketing 游行示威 : walking around near the employer’s building with signs complaining of poor working conditions or issues boycott 抵制 : refusing to purchase specific products and services boycott 抵制 : refusing to purchase specific products and services Strike 罢工 : discontinuing employee services, e.g. UPS’s strike to call for better wages, GM’s strike to ensure that some of its plants would not be closed Strike 罢工 : discontinuing employee services, e.g. UPS’s strike to call for better wages, GM’s strike to ensure that some of its plants would not be closed Management’s response: injunction 禁制令 : a court order to prevent labor from particular activity such as picketing injunction 禁制令 : a court order to prevent labor from particular activity such as picketing lockout 停工 : preventing employees from working until an agreement is reached between management and labor lockout 停工 : preventing employees from working until an agreement is reached between management and labor

29. Exercises 1. Translation (1) 基本工资 (2) 激励措施 (3) 福利待遇 (4) 绩效考核 (5) 迎新培训 (6) 离岗培训 (7) 工会 (8) 禁制令 (9) 薪酬结构 (10) 薪酬水平 (11) 退休金 (12) 离职金 (13) 计件工资 (14) 带薪假期 (15) 工作描述 (16) 人力资源规划 2. Cloze test and sentence rearrangement (p.153)

30. 3. Group project: Do a campus-wide survey to reveal which component(s) of HRM your fellow students value or care most, e.g. high-quality training programs, opportunities of promotion, base pay (and what is the satisfactory level), incentive pay, various types of benefits, severance package, etc. Do a campus-wide survey to reveal which component(s) of HRM your fellow students value or care most, e.g. high-quality training programs, opportunities of promotion, base pay (and what is the satisfactory level), incentive pay, various types of benefits, severance package, etc. If possible, observe if there is any gender, seniority, or regional difference. If possible, observe if there is any gender, seniority, or regional difference.

31. 4. Supplementary reading (1) GE’s Human Resource Management System (2) Some Important Laws Affecting HRM Practices (Organized by Date) (3) Appropriate and Inappropriate Interviewing Questions (4) Example of Performance Appraisal Form