Lecture Outline
CHAPTER 11:
Human Resource Management: Finding and Keeping the Best Employees
I. WORKING WITH
PEOPLE IS JUST THE BEGINNING.
LEARNING GOAL 1.
Explain the importance of human resource management and describe current issues
in managing human resources.
A. HUMAN RESOURCE
MANAGEMENT is the process of evaluating human resource needs, finding people to
fill those needs, and optimizing this important resource by providing the right
incentives and job environment, all with the goal of meeting the objectives of
the organization.
B. DEVELOPING THE
ULTIMATE RESOURCE.
1. There is a major
shift from traditional manufacturing industries to service industries that
require more technical job skills.
2. A major problem
is retraining workers for new, more challenging jobs.
3. EMPLOYEES ARE
THE ULTIMATE RESOURCE.
a. This resource
has always been plentiful, so there was little need to nurture and develop it.
b. Qualified labor
is more scarce today.
c. The goal of
human resource management is to develop this powerful resource to its full
potential.
4. Historically,
most firms assigned the job of recruiting, selecting, training, motivating, and
firing people to functional departments.
5. Today's human
resource departments go beyond the clerical functions of the old personnel
departments.
a. The role of the
human resource management is A FUNCTION OF ALL MANAGERS, not just one
department's.
b. Most human
resource functions are shared between the human resource manager and other
managers.
C. THE HUMAN
RESOURCE CHALLENGE.
1. Changes in the
labor force has created problems in the human resource area.
2. Some of the
PROBLEMS discussed in the text include:
a. Shortages in
people trained to work in high tech areas.
b. Abundance of
unskilled workers in obsolete fields who need retraining.
c. Growing number
of undereducated workers.
d. A shift in age
composition in the work force, including many older workers.
e. A complex set of
laws and regulations.
f. An increasing
number of single parent and two-income families.
g. Shifts in
employee attitudes toward work.
h. Continued
downsizing.
i. More competition
overseas.
j. Increased demand
for benefits tailored to the individual.
k. Growing concern
over health issues, elder care, child care, etc.
II. DETERMINING
YOUR HUMAN RESOURCE NEEDS.
LEARNING GOAL 2.
Summarize the six steps in planning human resources.
A. PREPARING
FORECASTS OF FUTURE HUMAN RESOURCE NEEDS.
B. PREPARING A
HUMAN RESOURCE INVENTORY.
C. PREPARING A JOB
ANALYSIS.
1. A JOB ANALYSIS
is a study of what is done by employees who fill various job titles.
2. The results of
the job analysis are two written statements.
a. A JOB
DESCRIPTION specifies the objectives of the job, the type of work to be done,
the duties, and the relationship of the job to other functions.
b. JOB
SPECIFICATIONS specify the mini mum qualifications required of a worker to fill
specific jobs.
D. ASSESSING FUTURE
DEMAND-HR managers who are proactive anticipate future needs of their
organizations.
E. ASSESSING FUTURE
SUPPLY in a shifting labor market.
III. RECRUITING
EMPLOYEES FROM A DIVERSE POPULATION.
LEARNING GOAL 3.
Describe methods companies use to recruit new employees and explain some of the
issues that make recruitment challenging.
A. RECRUITMENT is
the set of activities used to obtain a sufficient number of the right people at
the right time to select those who best meet the needs of the organization.
B. RECRUITING IS
DIFFICULT for several reasons:
1. People with the
necessary skills are not available, and must be hired and then trained.
2. The emphasis on
corporate culture and teamwork makes it important to hire skilled people who
also fit in with the culture.
3. Some
organizations have unattractive workplaces or offer low wages.
C. Human resource
managers turn to many SOURCES for assistance.
1. INTERNAL SOURCES
include hiring from within the firm and employee recommendations.
a. Internal sources
are less expensive.
b. Hiring from
within helps maintain employee morale.
2. However, it
isn't always possible to find qualified workers within the company, so HR
managers must use EXTERNAL RECRUITMENT sources.
IV. SELECTING
EMPLOYEES WHO WILL BE PRODUCTIVE.
LEARNING GOAL 4.
Outline the six steps in selecting employees.
A. SELECTION is the
process of gathering information to decide who should be hired, under legal
guidelines, for the best interest of the individual and the organization.
B. STEPS OF THE
SELECTION PROCESS:
1. Completion of an
APPLICATION FORM.
2. INITIAL AND
FOLLOW-UP INTERVIEWS.
a. A member of the
human resource department staff often screens applicants in a first interview.
b. Potential
employees are then interviewed by the manager who will supervise the new
employee.
3. EMPLOYMENT
TESTS.
a. Although testing
has been severely criticized, organizations continue to use tests to measure
basic competencies.
b. It is important
that the test be directly related to the job.
4. BACKGROUND
INVESTIGATIONS help weed out candidates least likely to succeed and identify
those most likely to succeed.
5. PHYSICAL EXAMS.
a. Medical tests
cannot be given just to screen out individuals.
b. Pre-employment
testing to detect drug or alcohol abuse or AIDS screening is controversial.
c. Eighty percent
of U.S. companies now test their employees and applicants for drug use.
6. TRIAL PERIODS
allow organizations to hire an employee conditionally.
C. HIRING
CONTINGENT WORKERS.
1. Sometimes it is
more cost-effective to hire contingent workers when a company has a varying
need for employees.
2. CONTINGENT
WORKERS are workers who do not have the expectation of regular, full-time
employment.
3. TEMPORARY
STAFFING is a $40 billion industry.
4. Managers see
using TEMPORARY WORKERS as a way of weeding out people and finding good hires.
V. TRAINING AND
DEVELOPING EMPLOYEES FOR OPTIMUM RESULTS.
LEARNING GOAL 5.
Illustrate the use of various types of employee training and development
methods.
A. TRAINING AND
DEVELOPMENT involves all attempts to improve performance by increasing an
employee's ability to perform through learning.
1. Training is
short-term skills oriented; development is long-term career oriented.
2. The process of
creating training and development programs includes:
a. ASSESSING THE
NEEDS of the organization and the skills of the employees to determine training
needs.
b. DESIGNING
TRAINING ACTIVITIES to meet the identified needs.
c. EVALUATING THE
EFFECTIVENESS of the training.
B. TRAINING AND
DEVELOPMENT ACTIVITIES.
1. EMPLOYEE
ORIENTATION programs range from formal programs to informal programs which
acquaint the new employee with the organization and its policies and
procedures.
2. ON-THE-JOB
TRAINING.
a. In an ON-THE-JOB
TRAINING PROGRAM, employees immediately start their tasks. They learn by doing
or watching others.
b. This type of
training is EASY AND EFFECTIVE for learning low skill, repetitive jobs, BUT CAN
BE DISASTROUS if used in areas demanding more knowledge and expertise.
3. APPRENTICE
PROGRAMS.
a. APPRENTICESHIP
PROGRAMS involve a period of time when a learner works alongside a skilled
worker to learn the skills and procedures of a craft.
b. Many skilled
crafts require a new worker to serve several years as an apprentice.
c. There may be
more but shorter apprenticeship programs in the future as jobs require more
intense training.
4. OFF-THE-JOB
TRAINING consists of internal and external programs to develop skills and to
foster personal development that occurs away from the workplace (conferences,
workshops, etc.)
5. VESTIBULE
TRAINING takes place in schools where equipment is used which is similar to
that used on the job (i.e. computer school.)
6. JOB SIMULATION
is the use of equipment that duplicates the job conditions and tasks so that an
employee can learn without endangering himself or the company's expensive
equipment (pilots, astronauts, etc.)
C. MANAGEMENT
DEVELOPMENT.
1. MANAGERS NEED
SPECIAL TRAINING- They must learn communication, planning, management, and human
relation skills.
2. MANAGEMENT
DEVELOPMENT is the process of training and educating employees to become good
managers and then developing managerial skills over time.
3. MANAGEMENT
DEVELOPMENT PROGRAMS INCLUDE THE FOLLOWING:
a. ON-THE-JOB
COACHING by a senior manager.
b. UNDERSTUDY
POSITIONS as assistants who participate in planning and other managerial
functions.
c. JOB ROTATION to
expose managers to different functions of the organization.
d. OFF-THE-JOB
COURSES AND TRAINING expose managers to the latest concepts and create a sense
of camaraderie.
D. NETWORKING.
1. NETWORKING is
the process of establishing and maintaining contacts with key managers in one's
own organization and in other organizations and using those contacts to weave
strong relationships that serve as informal development systems.
2. MENTORS are
corporate managers who supervise, coach, and guide selected lower-level
employees by introducing them to the right people and just acting as their
organizational sponsors.
E. DIVERSITY IN
MANAGEMENT DEVELOPMENT.
1. Since most older
managers are male, women often have more difficulty finding mentors and
entering the network.
2. 'Men only' clubs
were declared illegal, allowing women access to areas where contacts are made.
3. African-American
managers also are learning the benefits of networking.
4. Principles to
develop female and minority managers:
a. Grooming women
and minorities for management positions is the key to long-term profitability.
b. The best women
and minorities will be come harder to attract and retain.
c. More women and
minorities means that businesses can serve female and minority customers
better.
VI. APPRAISING
EMPLOYEE PERFORMANCE TO GET OPTIMUM RESULTS.
LEARNING GOAL 6.
Trace the six steps in appraising employee performance.
A. A PERFORMANCE
APPRAISAL is an evaluation of the performance level of employees against
established standards to make decisions about promotions, compensation,
additional training, or firing.
B. The six STEPS OF
PERFORMANCE APPRAISALS ARE:
1. ESTABLISH
PERFORMANCE STANDARDS.
2. COMMUNICATE
THOSE STANDARDS.
3. EVALUATE
PERFORMANCE.
4. DISCUSS RESULTS
WITH EMPLOYEES.
5. TAKE CORRECTIVE
ACTION.
6. USE THE RESULTS
TO MAKE DECISIONS.
C. The latest form
of performance appraisal is the 360 REVIEW because it uses feedback from all
directions in the organization: up, down, and all around.
VII. COMPENSATING
EMPLOYEES: ATTRACTING AND KEEPING THE BEST.
LEARNING GOAL 7.
Summarize the objectives of employee compensation programs and describe various
pay systems and fringe benefits.
A. Compensation is
one of the main marketing tools used to attract qualified employees.
1. The long-term
success of a firm may depend on how well it can control employee costs.
2. The primary cost
of service operations is the cost of labor.
3. Manufacturing
firms have asked employees to take reductions in wages to make the firm more
competitive.
4. Compensation and
benefit packages are begin given special attention.
B. The OBJECTIVES
of compensation and benefit programs include:
1. ATTRACTING
QUALIFIED WORKERS.
2. PROVIDING
PRODUCTIVITY INCENTIVES.
3. KEEPING VALUED
EMPLOYEES.
4. MAINTAINING A
COMPETITIVE EDGE by increasing productivity.
5. PROTECTING EMPLOYEES
FROM LAYOFFS, ETC.
C. PAY SYSTEMS.
1. Pay systems
include:
a. SALARY SYSTEMS
are fixed compensation programs (managers.)
b. HOURLY WAGE or
DAYWORK (blue-collar and clerical workers.)
c. PIECEWORK means
that employees are paid according to the number of items they produce
(manufacturing.)
d. COMMISSION
(salespeople.)
e. BONUS PLANS are
earned for accomplishing or surpassing certain objectives (executives,
salespeople.)
f. PROFIT-SHARING
give employees some share of profits over their normal pay.
2. Many companies
use the HAY SYSTEM, based on job tiers each of which has a strict pay range.
3. Another system
begins with base pay and gives all employees the same percent merit raise.
D. COMPENSATING
TEAMS.
1. Compensating
teams is a complex issue.
2. Some studies
have shown that team-based pay programs may not be effective.
3. SKILL-BASED PAY
is related to the growth of both the individual and the team.
a. Base pay is
raised when team members learn and apply new skills.
b. The skill-based
pay system is complex, and it is difficult to correlate skill acquisition to
bottom-line gains.
4. In GAIN-SHARING
SYSTEMS, bonuses are based on improvements over a performance baseline.
5. It is important
to reward individual team players, also.
E. FRINGE BENEFITS.
1. FRINGE BENEFITS
include vacation pay, pensions plans, and health plans that provide additional
compensation to employees.
a. In recent years
benefit programs grew faster than wages.
b. Many employees want
more fringe benefits instead of more salary to avoid higher taxes.
2. Fringe benefits
can include everything from paid vacations to child care programs, use of the
company condo, and more.
3. Some companies
offer CAFETERIA-STYLE FRINGE BENEFITS from which employees can choose the
benefits they want based on their personal needs.
4. Because of the
cost of administering benefit programs, many companies are contracting with
outside companies (OUTSOURCING) to run their benefit plans.
VIII. SCHEDULING EMPLOYEES.
LEARNING GOAL 8.
Explain scheduling plans managers use to adjust to workers' needs.
A. Managers and
workers are demanding more flexibility and responsiveness from their jobs.
B. FLEXTIME PLANS
allow employees some freedom in choosing their own hours.
1. Most flextime
plans include a period known as CORE TIME in which all employees are expected
to be at work.
2. There are
disadvantages, as well.
a. It does not work
in assembly-line processes or for shift work.
b. Managers often
have to work longer days in order to supervise employees.
c. Flextime makes
communication more difficult.
d. Some employees
could abuse the sys tem.
C. COMPRESSED
WORKWEEKS allow employees to concentrate their work hours in a fewer number of
days rather than working five days a week.
1. There are
advantages for employees in working only four days.
2. But some
employees get tired working such long hours, and productivity could decline.
D. HOME-BASED AND
OTHER MOBILE WORK.
1. Nearly nine
million U.S. workers work at home.
2. To be
successful, a home-based worker must have the discipline to stay focused on the
work.
3. Telecommuting
can be a cost saver for employers.
E. JOB SHARING
PLANS are plans that allow two employees to share the same job.
1. Job sharing lets
parents work part-time while their children are in school.
2. BENEFITS
INCLUDE:
a. Employment
opportunities for those who cannot or prefer not to work full-time.
b. A high level of
enthusiasm and productivity.
c. Reduced
absenteeism and tardiness.
d. Ability to
schedule people into peak demand periods.
3. Disadvantages:
having to hire, train, motivate, and supervise twice as many people.
4. Most firms have
found the benefits out weigh the disadvantages.
IX. MOVING
EMPLOYEES UP, OVER, AND OUT.
LEARNING GOAL 9.
Describe the ways employees can move through a company: promotion,
reassignment, termination, and retirement.
A. Employees don't
always stay in the position they were initially hired to fill.
B. PROMOTING AND
REASSIGNING EMPLOYEES.
1. Promotions are
COST-EFFECTIVE ways to improve EMPLOYEE MORALE.
2. Due to the
prevalence of flatter corporate structures, it is more common today for workers
to transfer over to a new position than to move up to one.
C. TERMINATING
EMPLOYEES.
1. Downsizing and
restructuring, increasing customer demands for greater value, and the
relentless pressure of global competition and shifts in technology have human
resource managers struggling to manage layoffs and firings.
2. The COST OF
TERMINATING employees is so high that managers choose to use TEMPORARY
EMPLOYEES or OUTSOURCE certain functions.
3. 'EMPLOYMENT AT
WILL.'
a. 'EMPLOYMENT AT
WILL' meant that managers had as much freedom to fire workers as workers had to
leave voluntarily.
b. Most states now
have written employment laws that limit the 'AT WILL' DOCTRINE to protect
employees from wrongful firing.
D. RETIRING
EMPLOYEES.
1. Another tool
used to downsize companies is to offer early retirement benefits to entice
older workers to resign.
2. The advantage of
offering early retirement benefits rather than laying off employees is that
early retirement offers INCREASE THE MORALE OF THE SURVIVING EMPLOYEES.
3. Retiring senior
workers increases PROMOTION OPPORTUNITIES for younger employees.
X. LAWS AFFECTING
HUMAN RESOURCE MANAGEMENT.
LEARNING GOAL 10.
Illustrate the effects of legislation on human resource management.
A. Legislation has
made hiring, promoting, firing, and managing employee relations complex and
subject to legal complications.
B. One of the most
important laws ever passed by Congress was the CIVIL RIGHTS ACT OF 1964.
1. TITLE VII of the
act prohibits discrimination in hiring, firing, compensation, apprenticeships,
training, terms, conditions, or privileges of employment based on race,
religion, creed, sex, or national origin (age was added later.)
2. Specific
language in the law often made its enforcement difficult.
C. The EQUAL
EMPLOYMENT OPPORTUNITY ACT (EEOA) was added as an amendment to Title VII in
1972.
1. It established
the EEOC which issues guide lines for administering equal employment
opportunity.
2. Congress gave
the EEOC broad powers, making it a formidable regulatory force.
D. AFFIRMATIVE
ACTION.
1. AFFIRMATIVE
ACTION are activities de signed to increase opportunities for minorities and
women.
2. The EEOC
enforces affirmative action, which is designed to 'right past wrongs' made
against women and minorities.
3. This has led to
problems including REVERSE DISCRIMINATION, the feeling of unfairness
unprotected groups have when protected groups are given preference.
E. The CIVIL RIGHTS
ACT OF 1991 expanded the remedies available to victims of discrimination by
amending Title VII of the CRA of 1964.
F. LAWS PROTECTING
THE DISABLED AND OLDER EMPLOYEES.
1. The VOCATIONAL
REHABILITATION ACT (1973).
a. The Act extended
the same protection given to minorities and women to people with disabilities.
b. Businesses
cannot discriminate against people with disabilities on the basis of their
physical or mental handicap.
2. The AMERICANS
WITH DISABILITIES ACT OF 1990 (ADA) requires that disabled applicants be given
the same consideration for employment as people without disabilities.
a. It requires that
businesses make 'reasonable accommodations' to people with disabilities.
b. Most companies
are having more trouble making cultural changes than structural changes to be
accommodating.
3. In 1997, the
EEOC issues new guidelines for the ADA that tell employers how they are to
treat workers and applicants with mental disabilities.
4. The AGE
DISCRIMINATION IN EMPLOYMENT ACT protects older employees (40-69.)
a. It outlawed
mandatory retirement before age 70.
b. Many companies
are voluntarily phasing out mandatory retirement after age 70.
G. EFFECTS OF
LEGISLATION.
1. Legislation
affects all areas of human re source management.
2. IN SUMMARY:
a. Employers must
be sensitive to the legal rights of their employees.
b. Legislation
affects all areas of human resource management.
c. It is sometimes
legal to go beyond pro viding equal rights for minorities and women to provide
special employment to correct discrimination in the past.
d. New court cases
and legislation continuously change human resource management; it is important
to keep current.