CHAPTER 16: Human Resource Management€¦ · © 2009 South-Western, a division of Cengage Learning 1 CHAPTER 16: Human Resource Management BUILDING A TOP-QUALITY WORKFORCE

© 2009 South-Western, a division of Cengage Learning

1

CHAPTER 16: Human Resource Management

BUILDING A TOP-QUALITY WORKFORCE


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LOOKING AHEAD

• What role does Human Resources play in business success?

• What are current human resource issues in today’s economy?

• What are challenges that the human resources function faces?

• What are the key responsibilities of human resources?

• What key federal legislation impacts human resources?


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HUMAN RESOURCE MANAGEMENT: BRINGING

Human Resource Management – maximizing the

effectiveness of the workforce.

• Recruiting world-class talent

• Promoting career development

• Boosting organizational effectiveness


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HUMAN RESOURCE MANAGEMENT CHALLENGES:

• Older Workers

• Younger Workers

• Women Workers

• Need for Flexibility

• Wage Gap

• Outsourcing

• Lawsuits


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HUMAN RESOURCE MANAGERS: CORPORATE

Problem:

– HR is often unprepared to make strategic decisions

– Daunting perception problems

Solution:

– HR must gain respect and recognition for their role

– Focus on raising value of firm’s human capital

– Senior management must recognize role of HR


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HUMAN RESOURCE PLANNING: DRAWING THE MAP


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ANALYZING HUMAN ASSETS

Job Analysis– What skills does the workforce already have?

– What skills do they need?

Job Description Job Specifications

• Teach 5 business classes • A master’s degree in business

• Consult with students for 5 hours • A minimum of three years

business

• Participate in college governance • Excellent interpersonal and

communication skills


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RECRUITMENT: FINDING THE RIGHT PEOPLE

• Internal Recruiting – transferring or promoting employees within the company.

– Boosts Morale

– Proven Track Record

– Lower Recruiting Costs


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RECRUITMENT: FINDING THE RIGHT PEOPLE

Recruiting Resources:

• Employment Websites

• Newspaper Ads

• Trade Associations

• Employment Centers

• Colleges/Universities

External Recruiting – looking for employees outside the firm.


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FINDING THE RIGHT PEOPLE

• Swedish firm IKEA recently recruited young employees by posting handwritten ads on the walls of public bathrooms

• IKEA claimed that each ad was 4 - 5 times more effective than a standard newspaper ad, and a lot less expensive.

• There’s nothing like a captive audience!

•(Source: Three ways to find generation Y by Eric Chester, Sept 2003, Workforce Management Online, http://www.workforce.com/archive/article/23/51/81.php)

http://www.workforce.com/archive/article/23/51/81.php

http://www.workforce.com/archive/article/23/51/81.php


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SELECTION: MAKING THE RIGHT CHOICE

Application

Interviews

Testing

References and Background Checks


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STRUCTURED INTERVIEW

• Develop a list of questions prior to interview

• Focus questions on behaviors and experiences

Describe a time when you…

What would you do if…

If you realized that a co-worker…


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INTERVIEW GAFFES: THINGS NOT TO DO

• “What five or six adjectives best describe you?”

“Really, really, really, really, really cool!”

• “Were you late because you got lost?”

“No. It was such a nice day that I didn’t mind driving slowly.”

• “Why should I hire you?”

“Because they say you should always hire people better than yourself.”

• “What do you find interesting about this job?

“The money. I don’t really care what your company does.”

• “How would you define a ‘problem person’?”

“Anyone who disagrees with me.”


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JOB OFFERS & CONTINGENT WORKERS

• It is important for managers to set a probationary period with new hires– Typically 3 to 6 months

– Employees will become permanent if everything works out

• Companies with fluctuating employment needs may opt to hire contingent workers– Temporary Full-Time

– Independent Contractors

– On-call Workers


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TRAINING AND DEVELOPMENT: HONING THE COMPETITIVE EDGE

! Increase innovation

! Increase technology adoption

! Increase productivity

! Increase motivation

!Decrease liability


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ORIENTATION

• Effective orientations are the first step in the development process

• Introduce employees to the company culture

• Strong orientation programs reduce employee turnover


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TRAINING THE DISNEY WAY

• The Walt Disney Company requires all new employees to attend their “Disney University” orientation program.

• Their goal is “to engage employees on an emotional—not just intellectual—level.”

• They say, “We don’t put people in Disney. We put Disney in people.”

• Videos, storytelling, décor, and other techniques are designed to communicate the Disney magic.


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ON-THE-JOB TRAINING

On-the-Job Training – popular and low cost -

employees simply begin working under the

guidance of experienced employees.

Apprenticeships –training programs where beginners

serve as an assistant prior to working.


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OTHER TRAINING OPTIONS

Off-the-Job Training – training that takes place away from the job setting.

Companies employ a variety of training strategies:

• Vestibule Training• Classroom• Job Simulations

Management Development – programs to assist current and potential executives develop leadership skills.

Computer-Based Training – standardized presentations

using video, audio and broadband technology.


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NIKETOWN ONLINE TRAINING

• E-learning program called SKU

– Sports Learning Underground

• Designed like a subway map

• Product knowledge in 3-7 minute segments

• Quizzes and feedback

• Sales at stores with SKU


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EVALUATION: ASSESSING EMPLOYEE PERFORMANCE

• Performance Appraisals– Formal feedback

– Compare actual to expected results

– May impact compensations, incentives, promotions, transfers and terminations

• HR should create an evaluation tool that ties into the company’s objectives

• Evaluation should be a feedback PROCESS– Managers should be trained

– Employees should be informed of the process


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APPRAISAL GOOFS

Gotcha!

The Once-a-Year-Wonder

Straight from the Gut

What Have You Done for Me Lately?

The “Me” Filter (Bias)


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COMPENSATION: SHOW ME THE MONEY

Compensation – the combination of pay and benefits.

Wages – pay in exchange for the number of

hours or days that an employee

works.

Salary – the pay that employees receive over a fixed period.

Benefits – noncash

compensation like health care and

vacation.


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VARIABLE PAY

Commission

Bonuses

Profit Sharing

Stock Options

Pay for Knowledge


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BENEFITS: FROM BIRTHDAY CAKES TO DEATH BENEFITS

• Social Security

• Medicare Contributions

• Unemployment Payments

• Workers’ Compensation

• Federal Family and Medical Leave

• Paid Vacation & Holidays

• Paid Sick Days

• Health Insurance

• Retirement Programs

• Product Discounts

• Tuition Reimbursement

Legally Mandated Benefits Optional Benefits


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CAFETERIA-STYLE BENEFITS

• Providing employees a set dollar amount per person that they spend on company benefits.

• Allows employees to tailor their benefits to their individual needs.


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EMPLOYEE HEALTH AND WELLNESS PROGRAMS

““

According to the World Health Organization,

every dollar spent on wellness programs saves

three dollars in medical costs. Workplace

fitness programs reduce short-term leave by up

to 32% and increase productivity by up to 52%.

(Source: Share the bottom-line benefits by Sid Kirchheimer, Time magazine, February 14, 2004)


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FLEXIBLE SCHEDULING

FlextimeCompressed

WorkweekTelecommuting


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BENEFITS AND DRAWBACKS OF TELECOMMUTING

BENEFITS DRAWBACKS

Organization • Lower costs for office space• Higher employee productivity • Access to a broader talent pool

• Challenge maintaining

company culture• Greater challenges fostering

teamwork• Greater challenges monitoring

and managing employees

Employee • Much more flexibility• Zero commute time • Better work-family balance• Every day is casual Friday • Fewer office politics

• Less career potential• Less influence • Weaker connection to company• Isolation from the social

structure


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SEPARATION: BREAKING UP IS HARD TO DO

• Employees will leave for a variety of reasons

– Fired

– Laid Off

– Transfers

– Career Changes

– Personal Reasons

• Employers should proceed carefully to avoid wrongful termination lawsuits


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TITLE VII: CIVIL RIGHTS ACT OF 1964

• Prohibits discrimination in hiring, firing, compensation or privileges of employment based on race, color, religion, sex or national origin

– Supplemented with legislation to cover age, disability and pregnancy

• Title VII created the Equal Employment Opportunity Commission (EEOC)


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LEGAL ISSUES: HR AND THE LONG ARM OF THE LAW

Occupational Safety and Health Act of 1970

Fair Labor Standards Act of 1938

Equal Pay Act of 1963

Americans with Disabilities Act of

1990

Family and Medical Leave Act of 1996

Immigration Reform and Control Act of 1986


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LOOKING BACK

• What role does Human Resources play in business success?

• What are current human resource issues in today’s economy?

• What are challenges that the human resources function faces?

• What are the key responsibilities of human resources?

• What key federal legislation impacts human resources?

CHAPTER 16: Human Resource Management€¦ · © 2009 South-Western, a division of Cengage Learning 1 CHAPTER 16: Human Resource Management BUILDING A TOP-QUALITY WORKFORCE

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