8–18–1Copyright © 2006 Thomson Business and Economics. All rights reserved. Agenda/Announcements Agenda –UW Research Overview Guest – Christina Fong –Chapter

8–1Copyright © 2006 Thomson Business and Economics. All rights reserved.

Agenda/AnnouncementsAgenda/Announcements

• Agenda– UW Research Overview Guest – Christina Fong– Chapter 8 Team Training– Chapter 8 Overview– American Airlines Case

• Announcements/Reminders:– OK to do Team Papers Early!

Exhibit 8–2

PowerPoint Presentation by Charlie CookThe University of West Alabama

Copyright © 2006 Thomson Business and Economics.All rights reserved.

Chapter 8Chapter 8

Human Human Resources Resources ManagementManagement


The Human Resources Management ProcessThe Human Resources Management Process

Exhibit 8–1


Federal Laws Related to HRMFederal Laws Related to HRM

• Equal Employment Opportunity– Equal Employment Opportunity Act of 1972 (Title VII of

the Civil Rights Act of 1964)– Civil Rights Act of 1991– Age Discrimination in Employment Act of 1967 (amended

1978, 1984)– Vocational Rehabilitation Act of 1973– Americans with Disabilities Act of 1990

• Compensation and Benefits– Equal Pay Act of 1963– Family and Medical Leave Act of 1993

• Health and Safety– Occupational Safety and Health Act of 1970

Exhibit 8–2


The Legal EnvironmentThe Legal Environment

• Equal Opportunity Employment (1972)– Civil Rights Act of 1964 amended– Executive orders– Prohibits employment discrimination on the

basis of sex, religion, race or color, or national origin.

– Applies to private and public organizations that employ 15 or more persons.

– Protected classes of minorities:• Hispanics, Asians, African Americans, Native

Americans, and Alaskan natives• Disabled individuals and persons over 40


Preemployment InquiresPreemployment Inquires

• To avoid asking discriminatory questions:– All questions asked applicants must be job-

related.– Any general question you ask should be asked

of all candidates.

• Bona Fide Occupational Qualification (BFOQ)– A characteristic that an individual must possess

that is directly related to performing the essential functions of the job or is a business necessity.• Example: Casting only females for the leading

actress’s part in a play.



The Human Resources DepartmentThe Human Resources Department

• Functions of the HR Department:

• Recruits employees so that the line managers can select which employees to hire. (Active = Strategic; Passive = Administrative)

• Orients employees and trains many of them to do their jobs.

• Usually develops the performance appraisal system and forms used by managers throughout the organization. (All)

• Determines compensation for employees. (Usually w/ Input)

• Is sometimes responsible for employee health and safety programs,

• Is usually responsible for labor relations, and works with mmanagers regarding the termination of employees.

• Keeping certain employment records, and it is often involved with legal matters.

CONTINUUM OF SERVICES

Administrative/Compliance

Strategic PartnerProactive


Attracting Employees: Recruiting SourcesAttracting Employees: Recruiting Sources

Exhibit 8–5

NETWORKING

TRADE ORGANIZATIONS


Types of Interviews and QuestionsTypes of Interviews and Questions

Exhibit 8–6


Selecting the CandidateSelecting the Candidate

• Problems to Avoid– Rushing– Stereotyping– “Like me” syndrome– Halo and horn effect– Premature selection

• Helpful Ideas:– Peer/Employee Interviews– Consider Impact

• Hire from unemployed vs. Hire Away or Move


Training MethodsTraining Methods

Skills Developed Methods

Technical skills Written material, lectures, videotapes, question-and- answer sessions, discussions, demonstrationsProgrammed learningJob rotationProjects

Interpersonal and Role playingcommunication skills Behavior modeling

Conceptual and Casesdecision-making skills In-basket exercisesManagement games

Interactive videos

Exhibit 8–10Experiential Learning is Best Regardless of Method


Performance AppraisalPerformance Appraisal

• Performance Appraisal– The ongoing process of evaluating employee

performance.

• Types of Performance Appraisal– Developmental performance appraisal

• Make decisions and plans for performance improvements.

– Evaluative performance appraisal• Make administrative decisions about pay raises,

transfers, promotions, demotions, and terminations.

• “You get what you reward”


The Performance Appraisal ProcessThe Performance Appraisal Process

Exhibit 8–11

Well Designed

No Surprises @ EOY


Retaining EmployeesRetaining Employees

• Compensation– The total cost of pay and benefits to employees– Pay systems

• Wages: paid on an hourly basis.

• Salary: based on specific time period regardless of hours worked.

• Incentives: paid for performance as piece rates for production, commissions on sales, merit raises, bonuses for reaching/exceeding goals, and profit sharing.


Retaining Employees (cont’d)Retaining Employees (cont’d)

• Compensation– Pay determination

• Externally market valuing the job on a pay level decision.• Job evaluation is used internally to establish the worth of

each job relative to other jobs in the organization.– Benefits

• Legally required benefits (e.g., workers’ compensation)• Optional benefits (e.g., health insurance)

– Health and Safety• Occupational Safety and Health Act (OSHA) of 1970

requires employers pursue workplace safety.

• Culture, Opportunities, Employee Satisfaction!!!


Labor RelationsLabor Relations

• Labor Relations– The interactions between management and

unionized employees.

• National Labor Relations Act (Wagner Act)– Oversees the labor relations process through

the National Labor Relations Board.

• Collective Bargaining– The negotiation process resulting in a contract

that covers compensation, hours, and working conditions and other issues that employees and management agree to.


Labor Relations (cont’d)Labor Relations (cont’d)

• Mediator– A neutral party who helps management and

labor settle their disagreements by compromise.

• Arbitrator– A neutral party that can make a binding

decision, one to which management and labor must adhere.


The Union-Organizing Process

The Union-Organizing Process

Exhibit 8–15


Loss of EmployeesLoss of Employees

• Organizations lose employees because:1. Through attrition, employees leave for other jobs, elect to

stop working for a period of time, or retire.

2. Employees who break rules or do not perform to standards are fired.

3. Employees are laid off.

• Exit interviews– Help identify problem areas that lead to turnover.

• Outplacement services– Help laid-off employees find new jobs/learn skills.

Turnover Costs Typically = 75% of Employee Salary/Wage

Documents

8–18–1Copyright © 2006 Thomson Business and Economics. All rights reserved. Agenda/Announcements Agenda –UW Research Overview Guest – Christina Fong –Chapter