TOPIC 7 : MANAGING HUMAN RESOURCES

Prepared By : Miss Noorsyalina NordinINTRODUCTION

TO BUSINESSBUS 1231

LEARNING OBJECTIVES

After learning this chapter, the students should be able to :

1.Understand the role of human resource management in business

LEARNING OUTCOMES:

After learning this chapter, the students will be able to :

7.1Identify forecasting demand and supply and evaluating job requirements

7.2 Explain recruiting, hiring and training employees

7.3 Explain appraising employee performance and linking compensation and benefit

#UNDERSTANDING HUMAN RESOURCE MANAGERS DO

Definition: Specialized function of planning on how to obtain employees, oversee their training, evaluate them and compensate them

TrainingDevelopment MotivationEvaluationCompensation

Attract qualified employees from a shrinking poll of entry-level candidatesTrain less educated, poorly skilled employeesKeep experience employees when they have fewer opportunities for advancementLay off employees equitably when downsizing is necessaryTrain employees to cope with increasing automation and computerizationManage increasingly complex employee benefits programsShape workplace policies to address changing workforce demographics and employees needsPlanning for staffing needsRecruiting and hiringTraining and developmentAppraising performanceAdministering compensation and benefitsOverseeing changes in employment status

# PLANNING FOR A COMPANY’S STAFFING NEEDSForecasting supply

and demand

Evaluating job

requirement

# RECRUTING, HIRING AND TRAINING NEW EMPLOYEES

A.Recruiting: the process of attracting suitable candidates for an organization’s jobs

B.THE HIRING PROCESS

S6-supervisors select person most suitable for the job

#BACKGROUND CHECKS, HIRING , LAW AND TESTING

2.BACKGROUND CHECKS A. Verifying all

educational credentials and previous jobs

B. Accounting for any large time gaps between jobs

C. Checking references D. Background checks

3.HIRING AND THE LAW

Employees must avoid discrimination in application forms, interview and tests

Employers must avoid asking unrelated questions such as marital status, age and religion, disability

#BACKGROUND CHECKS, HIRING , LAW AND TESTING (CONT..)

1.Job skills tests-designed to assess competency or specific abilities needed to perform a job

2.Psychological tests-used to assess overall intellectual ability, attitudes toward work, interest, managerial potential or personality characteristic

3.Drug testing- companies with mandatory testing have found real advantages, including lower accident rates, fewer disability claims and decreased violence and absenteeism

4.Testing Many companies rely

on pre employment testing to determine whether applicants are suited for a job or not

Companies are use three tests: job skills, psychological and drug

# TRAINING AND DEVELOPMENT

Orientation programs usually

include information about company background, equal opportunity practices, safety regulations, standards of employee conduct, company culture, employee compensation and benefits plan, work times to help employees understand their role in a firm

Training Most companies offer

training and retraining because employee competence has a direct effect on productivity and profits

Training often takes place at the work site where experience oversee training on the job or in a classroom

Employee training may also involve self-study using training manuals, tests and interactive modules

# APPRAISING EMPLOYEE PERFORMANCEA.Performance appraisal

systems

1.Attempt to objectively evaluate employees according to set criteria

2.Promotes fairness because standards are usually job-related

3.Goal is to improve performance rather than judge it

4.Periodic performance evaluations give fast feedback so that employees can correct errors quickly

5.Written evaluations provide a record of employees performance and required the employee to be rated by several people

6.360 degree review: solicits feedback from colleagues above, below and around the employee to provide observations of the person’s performance in several skill and behavioral categories

B. Measuring for Productivity

1.Difficult to accurately evaluate productivity especially when employees work in teams

2.Some firms have teams evaluate themselves on a 1-5 scale

# ADMINISTERING COMPENSATION AND EMPLOYEE BENEFITS

A.Compensation

A combination of payments in the form of wages or salaries, incentive payments, employee benefits and employer services

B.Wages and salaries

1.Wages: Cash payment based on the number of hours the employee has worked or the number of units the employee has produces

a.Many blue and white collar workers receive compensation based on calculating the number of hours worked or unit produced

b.Wages provide a direct incentive to employees

2.Salaries: Fixed cash compensation for work, usually by yearly amount; independent of the number of hours worked

a.Salaries base compensation on time in unit weekly,biweekly, monthly or yearly

b.Salaried employees generally receive no pay for extra hours put in but receive leeway in schedules

# ADMINISTERING COMPENSATION AND EMPLOYEE BENEFITS (cont..)C.Incentive program

1.Incentives: cash payments that are linked to specific individual, group or companywide goals

2.Bonuses: a payment in addition to regular wage or salary

3.Commission: pay employees a percentage of sales made

4.Profit sharing: a system in which employees receive a portion of the company’s profits

D.Employee benefits and services

1.Employee benefits: financial benefits other than wages, salaries and incentives

a.Employee benefits can be offered as a preset package (designed by the company) or flexible benefits (allow employees to pick their benefit-up to a certain dollar amount- to create a benefits package tailored to their individual needs)

# ADMINISTERING COMPENSATION AND EMPLOYEE BENEFITS (cont..)2. Insurance

a. Insurance is the most popular employee benefit and is completely optional

b.I n the past, copanies often negotiated group insurance plans for employees

c. Exploding healthcare costs

Companies hire many part time employees who receive no benefits

Companies require that employees pay part of the premium or doctor bills

3. Retirement benefitsa.Social security- paid taxes by

employers and withheld from employees

b.Pension plan Pension plans are funded by

companies who set aside money on a regular basis to cover future retirement benefits

3 most popular types of company –sponsored pension plan

i)defined contribution plans: similar to saving plans that provide a future benefits based on annual employer contributions, voluntary employee, matching contributions and accumulated investment earnings.

# ADMINISTERING COMPENSATION AND EMPLOYEE BENEFITS (cont..) Defined benefits plans:

formula-based plans in which employers typically promise to pay their employees a benefit upon retirement based on the employees’s retirement age, final average salary and years of service

401(k) plans allow eligible participants to contribute pre-tax dollars to a tax qualifiew retirement plan

4.Employee stock ownership plan (ESOP)

a.Companies place a certain amount of its stock in trust for some or all of its employees with each employee entitle to a certain share

b.Allow employees to later purchase the shares at a fixed price

# ADMINISTERING COMPENSATION AND EMPLOYEE BENEFITS (cont..)5.Stock optionsa.Grant the employees the right

to purchase a certain amount of stock at fixed price(based on the trading price at the time the option is granted)

b.Cost little to employers, provide employees with incentives to stay with a company and encourage employees to work harder because they have a vested interest in the company doing well

c.Stock options can generate a handsome profit for employees if the stock’s market price exceeds the grant price

6. Family benefitsa.Family Medical Leave Act (FMLA)

requires employers with 50 or more workers to provide them up to twelve weeks of unpaid leave a year for childbirth, adoption or care of oneself, a child, spouse or parent with a serious illness

b.Day care assistance is offered by 86 percent of companies surveyed including dependent care spending accounts, resource and referral service which benefits employees and employers alike

C.Elder care assistance is offerred by 77 percent of large corporations ranging from referral services, to assistance in finding care providers and dependent care allowances

# ADMINISTERING COMPENSATION AND EMPLOYEE BENEFITS (cont..)7.Other employee benefits

a.Paid holidays, paid vacations, sick pay and premium pay for working overtime or unusual hours are important benefits

b.Companies sometimes offer sabbaticals, tuitions loans and reimbursements, professional development opportunities, personal computers, financial counseling and legal services, assistance with buying a home, paid expenses for spouses who travel with employees, employees assistance program, nap time and wellness programs

c.Employee Assistance Programs (EAPS)

Offer private and confidential counseling to employees who need help with issues related to drugs, alchohol, finance, stress, family and other personal problems

Benefits such as company cards, aid country club membership, free parking and expanded casual dress days are often referred to as perks

# OVERSEEING CHANGES IN EMPLOYMENT STATUS A.Promoting and

reassigning employees

1.Promoting from within A) sometimes allows a

company to benefit from the training and experience of its own workforce

B) Sometimes find that a person talented at one job lacks the skills for a different job

B. Terminating employees

1.Termination: permanently laying the employees off because of cutbacks of firing the employee for poor performance

2.Layoffs

When employees are laid off ( terminated for economic or business reasons unrelated to performance), companies now seek to help ease employees through this transition with resume writing courses, career counseling, office space and secretarial help

# OVERSEEING CHANGES IN EMPLOYMENT STATUS (cont..)

b) Some companies have adopted a no-layoff guaranteed employment policies

c) Some companies adopt no-layoff, or guaranteed employment policies in an economic downturn, employees may be shifted to other types of jobs, perhaps at reduced pay or given the change to participate in work sharing programs

-help promote employee loyalty and motivation

C.RETIRING EMPLOYEES

1.Give job opportunities to people who are willing and able to work but who happen to be past the traditional retirement age

2.Mandatory retirement policies: policies that made it necessary for people to quit working as soon as they turned a certain age (1967 federal age discrimination in Employment act outlawed discrimination against anyone between the ages of 40 and 65)

#FINDING WAYS OF ENCOURAGING OLDER EMPLOYEES TO RETIRE EARLY

Offer older employees financial incentive to resign

Inducing employees to retire by offering them financial incentives is known as worker buyout and can be much more costly than laying off or firing employees

Morale benefits the company: younger employees see chance for promotion, are less threatened about their own security and company avoid risk of age discrimination lawsuits

CONCLUSION

CONCLUSION