Download ppt - Chapter 11 Managing Human Resources

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Business in aChanging World

McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.

Chapter 11Managing Human Resources

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Amadeus Consulting: Where Employees are the Company

Lisa Calkins and John Basso have created a company for which people are motivated to work for the long term.

http://www.amadeusconsulting.com/

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Managing Human Resources

Human Resources Management – all the activities involved in determining the organization’s needs for human resources and acquiring, training, and compensating people to fill those needs.

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Increasing in importance – Employee Concerns:•Compensation•Job satisfaction•Personal performance•Leisure•Environment•Opportunities for advancement

Managing Human Resources

HRM

What is the Primary Reason you Accepted Your Job?

0%

5%

10%

15%

20%

25%

30%

35%

Flexibility Compensation Work Culture TrainingOpportunities

Advancement

Source: Snapshots, USA Today, March 13, 2008, p. B1

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•Job analysis – systematically determining pertinent information about a job (tasks, abilities, knowledge, skills)

•Job description -- formal & written specifications of the job (title, tasks, relationships, skills, duties, responsibilities).

•Job specification – description of the job qualifications (education, experience, personal/physical characteristics).

Planning – Human Resource Needs

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•Recruiting – the formation of a pool of qualified job candidates from which management selects employees.

•Internal Sources•Current employees•Promotion from within

•External Sources•advertising•Employment agencies•Online - Monster.com; Hotjobs.com

Employee Recruiting & Selection

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•Selection – the process of collecting information about applicants and using information to make hiring decisions.

•Application•Interviewing•Testing•Reference Checking


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•Application --

•First stage of the selection process•Name, address, telephone•Education, previous work experience, references•Qualifications for the position


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•Interview --

•2nd phase of selection•Detailed information on candidate (applicant)•Attitudes toward job


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•Testing --

•Ability and performance testing•Aptitude, IQ, Personality tests•Applicant assessment•Goodness of “fit”•Myers-Briggs Type Indicator


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Top 10 Interview Questions


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Recruiting & Selecting Employees

Top 10 Mistakes Made in Interviewing

1. Not taking the interview seriously

2. Not dressing appropriately (dressing down)

3. Not appropriately discussing experience and education

4. Being too modest about one’s accomplishments

5. Talking too much

6. Too much concern about compensation

7. Speaking negatively of a former employer

8. Not asking enough or appropriate questions

9. Not showing the proper enthusiasm level

10. Not engaging in appropriate follow-up to interview

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•Reference Checking --

•Verifying education•Previous work experience•Privacy issues


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Recruiting & Selecting Employees

Sampling of Psychological Tests

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Legal Issues in Recruiting & Selection

Title VII of the Civil Rights Act --•Prohibits discrimination in employment•Equal Employment Opportunity Commission (EEOC)•Tests must be validated

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Legal Issues in Recruiting & Selection

Laws affecting HRM --•Americans with Disabilities Act (ADA)•Age Discrimination in Employment Act•Equal Pay Act

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Training & Development

Training -- teaching employees to do specific job tasks through classroom development or on-the-job experience.

Development – training that augments the skills and knowledge of managers and professionals.

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Training & Development

HiPiHi, Novo King, UOneNet – Stimulate new training concepts

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Assessing Performance

Performance Assessment –

•Strengths•Weaknesses•Provides feedback•Objective or subjective•Quantitative or qualitative

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Performance Characteristics

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Turnover

Turnover – employees voluntarily leave (quit); involuntary leave (fired). Management must replace workers.

Promotion – advancement to higher-level job with increased authority, responsibility, and pay

Transfer – move to another job within the company usually at same or similar level and wage rate

Separations – employment changes involving resignation, retirement, termination, or layoff

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Compensating the Workforce

Reasons Employees Stay in Their Current Jobs

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Designing fair compensation plans

Wage/salary survey – study indicating how much compensation comparable firms are paying for specific jobs that firms have in common

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Financial Compensation:

Wages – financial rewards based on hours worked and/or level of output achieved.

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Managing the workforce: Costco Versus Wal-Mart

Element Costco Wal-Mart

# of Employees 100,000 U.S.137,000 (International)

1,420,000 U.S.635,000 (International)

Sales $64.4 billion $378.79 billion

Average hourly wage $17.25 $10.11

% of employees w/ health plans 82% 80%

Turnover (annually) 17% 40%

Profits per employee $13,647 $11,039

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Compensation

Piece wages – based on level of output achieved. Motivate employees to increase output.

Commission – incentive system that pays a fixed dollar amount or a percentage of the employee’s sales. Motivates employees to sell as much as possible.

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Compensation

Salary – financial reward calculated on weekly, monthly, or annual basis. (White collar employees, executives, professionals).

Bonuses – monetary rewards provided by firm for exceptional performance or incentive to increase productivity

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Compensation

Profit sharing – a percentage of company profits distributed to employees, sometimes in the form of stock.

ESOP– Employee Stock Ownership Plan. Company distributes shares to employees as a form of compensation.

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Major Salary

Computer science $56,921

Electrical engineering $56,429

Engineering $56,336

Economics $52,926

Nursing $52,129

Chemistry $52,125

Civil engineering $49,427

Finance $48,795

Accounting $43,823

Business administration/management $43,823

Political science/government $43,594

Marketing $43,459

Human resources $40,250

Best Entry-Level Salaries

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Benefits

What are benefits?Non-financial forms of compensation:

•Pension plans•Insurance (health, disability, life)•Child & elder care

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Benefits

Bureau of Labor Statistics (2008)

Total compensation = $28.11 per hour•Wages/salaries = 69.8%•Benefits = 30.2%•Taxes, FICA, etc = 7.9%

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Benefits

EAP – Employee Assistance Program –Counseling and assistance for employees’ personal problems that may negatively impact job performance.

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Fringe Benefits

Traditional Fringe Benefits

•Sick leave•Pension plans•Health plans•Extra compensation (bonuses)

Soft Benefits Perks – work-life balance•On-site child care•Spas•Food service•Hair salons

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Fringe Benefits

Cafeteria Benefit Plans – a set financial amount allocated to employees which allows for selection of benefits most appropriate to each employee

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Managing Unionized Employees

Labor union – employee organization formed to deal with employers for achieving better pay, hours, and working conditions.

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Collective Bargaining – negotiation process where management and unions reach agreement on wages, hours, and working conditions for the bargaining unit (employees represented by union).

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Labor contract – the formal, written document that stipulates the relationship between union and management for a specific time period. The outcome of collective bargaining.

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Unionized Employees

•12% of workforce•Unionized workers earn more per hour•Concentrated in certain industries

•automotive manufacturing•steel production•Construction•Public-sector (government)

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Collective Bargaining Process

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Labor & Management Disputes

Pickets – public protests against the actions of the company or management.

Strike – employee walkouts; work stoppage. Most effective economic weapon for unions in private sector.

Boycott – attempt to keep people form purchasing the company’s products.

Lockout – management’s version of the strike. Worksite is closed to prevent employees from working.

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Outside Resolution of DisputesConciliation – 3rd party intervention so that

management & labor continue talks.

Mediation – 3rd party helps to bring labor and management together to resolve disputes

Arbitration – 3rd party settles dispute by imposing solution that is legally binding

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Workforce Diversity

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Population by Race (in thousands)

Ethnic Group Total Increase 2000-04

Total population 293,655.4 4.3%

White 239,880.1 3.6%

Hispanic 41,322.1 17.0%

Black 37,502.3 5.7%

American Indian 4909.4 7.7%

Asian 13,956.6 16.2%

Native Hawaiian 976.4 7.7%

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Benefits of Valuing Workforce Diversity

• More productive use of human resources

• Reduced conflict among employees• More productive working relationships• Increased commitment to

organizational goals• Increased innovation and creativity• Increased ability to serve the needs of

diverse customers

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Affirmative Action

Legally mandated plans that try to increase job opportunities for minority groups by:

•Analyzing the current pool of workers

•Identifying areas where women and minorities are underrepresented

•Establishing specific hiring and promotion goals to resolve the discrepancy.

Prohibits organizations from setting hiring quotas that might result in reverse discrimination.