1. part Chapter © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 1 McGraw-Hill Human Resource Management 1 Chapter 8

2. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 2 McGraw-Hill Understand how human resource managers recruit and select employees. Illustrate the various types of employee training and development methods. Describe different types of pay systems and how to evaluate employees. Describe the most important laws affecting the workplace with which human resource managers need to be familiar. Describe the key human resource management challenges facing managers today. Learning Objectives

3. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 3 McGraw-Hill People – Most valuable asset Employees expect fair payment The Human Resource Process Vital to development & strategic planning Broad responsibilities Introduction to HRM

4. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 4 McGraw-Hill Management begins with planning Five steps: –Prepare HR inventory –Prepare job analysis Job description Job specification –Assess future HR demands –Asses future supply –Establish HR plan Determining HR Needs

5. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 5 McGraw-Hill Expanding the Work Force POSITIONPAY SCALE PRESENT STAFF PRESENT PAYROLL PROJECTED STAFF PROJECTED PAYROLL MANAGEMENT Level 24 Level 18 $65,000 $45,000 1111 $65,000 $45,000 1111 $65,000 $45,000 CLERICAL Level 10 Level 6 $21,000 $16,000 2323 $42,000 $48,000 2525 $42,000 $80,000 PRODUCTION Level 14 Level 10 Level 8 Level 5 Level 4 $26,000 $19,000 $16,000 $13,000 $11,000 3 1 2 13 $78,000 $19,000 $32,000 $26,000 $143,000 4 1 2 26 $104,000 $19,000 $32,000 $26,000 $286,000 SALES Level 10 $26,0005$130,0007$182,000 TOTALS36$628,00050$881,000

6. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 6 McGraw-Hill Not always easy Internal candidates External candidates Difficult for small businesses Recruiting from a Diverse Population

7. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 7 McGraw-Hill Expensive process Six-step selection process: –Obtain complete application forms. –Conduct initial and follow-up interviews. –Give employment tests. –Conduct background investigations. –Obtain results from physical exams. –Establish trial periods. Contingent workers Selecting Employees

8. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 8 McGraw-Hill Training and Development 3 steps: Assessing, Designing, Evaluating Employee orientation On-the-job-training Apprentice programs Off-the-job training Online training Vestibule training Job simulation Management training

9. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 9 McGraw-Hill Compensation Competition for employees Long-term success Labor intensive firms Objectives of a carefully managed compensation and benefits program: –Attract efficient employees –Provide work incentive –Keep valued employees –Maintain competitive position –Provide employees with financial security

10. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 10 McGraw-Hill Salary Hourly wage or day work Piecework system Commission plans Bonus plans Profit-sharing plans Stock options Fringe benefits Health benefits 401k plans Pay Systems

11. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 11 McGraw-Hill Appraising Employees Performance Appraisal Six steps: –Establish standards. –Communicate standards. –Evaluate performance. –Discuss results. –Take corrective action. Performance Improvement Plan (PIP) –Use results to make decisions.

12. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 12 McGraw-Hill Alternatives to Traditional Scheduling Flextime plan –Core time Compressed workweek Telecommuting Job sharing

13. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 13 McGraw-Hill Laws Affecting HRM Laws and Government Programs Protecting Equal Opportunity Title VII of the Civil Rights Act of 1964 EEOA –Affirmative action Family Medical Leave Act (FMLA)

14. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 14 McGraw-Hill Laws Protecting the Disabled Vocational Rehabilitation Act of 1973 ADA of 1990 –Reasonable accommodation Laws Protecting Aging Employees ADEA of 1967 –40 years of age or older –20 or more employees –Allows age limits for certain jobs

15. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 15 McGraw-Hill Challenges in Human Resources Employee relations Working with Unions Industrial revolution Knights of Labor American Federation of Labor (AFL) Industrial unions Congress of Industrial Organizations (CIO) AFL-CIO

16. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 16 McGraw-Hill Negotiation Tactics used by Unions Labor contract Strike, boycott Mediation, arbitration Negotiation Tactics used by Management Lockout Injunction

17. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 17 McGraw-Hill Executive Compensation “Going rate” Determined by profitability Stock options Golden parachute Globalization HR completes same functions Cultural difference are critical Work-life Balance Win-win situation

18. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 18 McGraw-Hill Comparable Worth Beyond equal pay Sexual harassment Hostile work environment 90% settled out of court Quid pro quo Securing and Retaining the Best Workers Motivation Expensive to hire new employees