PowerPoint Presentation by Charlie Cook The University of West Alabama Business Essentials Ronald J. Ebert Ricky W. Griffin People in Organizations 33.

PowerPoint Presentation by Charlie CookThe University of West Alabama

Business Business EssentialsEssentials

Ronald J. Ronald J.

EbertEbertRicky W. Ricky W.

GriffinGriffin

Business Business EssentialsEssentials

Ronald J. Ronald J.

EbertEbertRicky W. Ricky W.

GriffinGriffin

People in OrganizationsPeople in OrganizationsPeople in OrganizationsPeople in Organizations3333

6e6e

© 2007 Prentice Hall, Inc. All rights reserved.

HUMAN RESOURCES MANAGEMENT AND LABOR RELATIONS

10

CHAPTER 10CHAPTER 10

HUMAN RESOURCES HUMAN RESOURCES

MANAGEMENTMANAGEMENT

ANDAND

LABOR RELATIONSLABOR RELATIONS

© 2007 Prentice Hall, Inc. All rights reserved. 10–2

B U S 1 0 0B U S 1 0 0


L E A R N I N G O B J E C T I V E SL E A R N I N G O B J E C T I V E S

After reading this chapter, you should be able to:After reading this chapter, you should be able to:

1.1. Define Define human resource managementhuman resource management and explain how and explain how managers plan for their organization’s human managers plan for their organization’s human resource needs.resource needs.

2.2. Identify the tasks in staffing a company and discuss Identify the tasks in staffing a company and discuss ways in which organizations select, develop, and ways in which organizations select, develop, and appraise employee performance.appraise employee performance.

3.3. Describe the main components of a compensation Describe the main components of a compensation system and describe some of the key legal issues system and describe some of the key legal issues involved in hiring, compensating, and managing involved in hiring, compensating, and managing workers in today’s workplace.workers in today’s workplace.


L E A R N I N G O B J E C T I V E S (cont’d)L E A R N I N G O B J E C T I V E S (cont’d)

After reading this chapter, you should be able to:After reading this chapter, you should be able to:

4.4. Discuss workforce diversity, the management of Discuss workforce diversity, the management of knowledge workers, and the use of a contingent knowledge workers, and the use of a contingent workforce as important changes in the contemporary workforce as important changes in the contemporary workplace.workplace.

5.5. Explain why workers organize into labor unions and Explain why workers organize into labor unions and describe the collective bargaining process.describe the collective bargaining process.


What’s in It for Me?What’s in It for Me?

Why does effectively managing human Why does effectively managing human resources matter to you?resources matter to you?

By understanding the material in this chapter, you’ll By understanding the material in this chapter, you’ll be better able to understand:be better able to understand:

1.1. The importance of properly managing human resources in The importance of properly managing human resources in a unit or business you own or supervisea unit or business you own or supervise

2.2. Why and how your employer provides the working Why and how your employer provides the working arrangements that most directly affect youarrangements that most directly affect you


The Foundations of Human The Foundations of Human Resource ManagementResource Management

Human Resource Management (HRM)Human Resource Management (HRM) Activities directed at attracting, developing, and Activities directed at attracting, developing, and

maintaining an effective workforcemaintaining an effective workforce

The Strategic Importance of HRMThe Strategic Importance of HRM Human resources are critical for effective Human resources are critical for effective

organizational functioningorganizational functioning

Growth in importance due to:Growth in importance due to: Increased legal complexitiesIncreased legal complexities Recognition of the value of HR in improving productivityRecognition of the value of HR in improving productivity Awareness of the costs associated with poor HRMAwareness of the costs associated with poor HRM


FIGURE 10.1FIGURE 10.1 The HR Planning ProcessThe HR Planning ProcessFIGURE 10.1FIGURE 10.1 The HR Planning ProcessThe HR Planning Process


HR PlanningHR Planning

Job DescriptionJob Description

Lists the duties and Lists the duties and responsibilities of a responsibilities of a job, its working job, its working conditions; and the conditions; and the tools, materials tools, materials equipment, and equipment, and information used to information used to perform itperform it

Job DescriptionJob Description

Lists the duties and Lists the duties and responsibilities of a responsibilities of a job, its working job, its working conditions; and the conditions; and the tools, materials tools, materials equipment, and equipment, and information used to information used to perform itperform it

Job SpecificationJob SpecificationLists the skills, Lists the skills, abilities, and other abilities, and other credentials and credentials and qualifications needed qualifications needed to perform the job to perform the job effectivelyeffectively

Job SpecificationJob SpecificationLists the skills, Lists the skills, abilities, and other abilities, and other credentials and credentials and qualifications needed qualifications needed to perform the job to perform the job effectivelyeffectively

Job AnalysisJob Analysis A systematic analysis of jobs within an organizationA systematic analysis of jobs within an organization


HR Planning (cont’d)HR Planning (cont’d)

Forecasting HR Demand and SupplyForecasting HR Demand and Supply Forecasting internal supply (number/type of people Forecasting internal supply (number/type of people

who will be in the firm at a future date)who will be in the firm at a future date) Replacement chartsReplacement charts

Employee information systemsEmployee information systems(skills inventories)(skills inventories)

Forecasting external supply (number/type of people Forecasting external supply (number/type of people who will be available for hiring from the labor market who will be available for hiring from the labor market at large)at large) State employment commissionsState employment commissions

Government reportsGovernment reports

College informationCollege information


HR Planning (cont’d)HR Planning (cont’d)

Matching HR Supply and Demand Matching HR Supply and Demand Alleviating ShortfallsAlleviating Shortfalls

Seeking new hiresSeeking new hires Retraining and transferring present employeesRetraining and transferring present employees Retaining retireesRetaining retirees Installing more productive systemsInstalling more productive systems

Managing OverstaffingManaging Overstaffing Transferring extra employeesTransferring extra employees Not replacing employees who quit (attrition)Not replacing employees who quit (attrition) Encouraging early retirementEncouraging early retirement Laying off personnelLaying off personnel


Staffing the OrganizationStaffing the Organization

RecruitingRecruiting Attracting qualified persons to apply for the jobs that Attracting qualified persons to apply for the jobs that

are openare open Internal RecruitingInternal Recruiting

Considering present employees as candidates for openingsConsidering present employees as candidates for openings– Promotion from withinPromotion from within– Union contracts and job biddingUnion contracts and job bidding

External RecruitingExternal Recruiting Attracting people outside of the organization to apply for jobsAttracting people outside of the organization to apply for jobs

– State employment agenciesState employment agencies– Private employment agenciesPrivate employment agencies– AdvertisementsAdvertisements


Staffing the Organization (cont’d)Staffing the Organization (cont’d)

Selecting Human ResourcesSelecting Human Resources Application formsApplication forms——no illegal questionsno illegal questions TestsTests—ability, —ability, skills, aptitude, knowledge, attitudeskills, aptitude, knowledge, attitude InterviewsInterviews—v—validity is alidity is increased by:increased by:

Training interviewers to reduce individual biasTraining interviewers to reduce individual bias Using a structured inUsing a structured interview format with job-related terview format with job-related

questions to improve consistency, reduce bias, and questions to improve consistency, reduce bias, and eliminate illegal questioning of applicantseliminate illegal questioning of applicants

Other TechniquesOther Techniques Polygraph testsPolygraph tests Physical examinationsPhysical examinations Drug testsDrug tests Reference checksReference checks


Developing the WorkforceDeveloping the Workforce

TrainingTraining On-the-job trainingOn-the-job training

Off-the-job trainingOff-the-job training

Vestibule trainingVestibule training


Developing the Workforce (cont’d)Developing the Workforce (cont’d)

Performance AppraisalPerformance Appraisal Defining performance Defining performance

standardsstandards Observing performanceObserving performance Writing up the assessmentWriting up the assessment Discussing the appraisalDiscussing the appraisal

Performance AppraisalPerformance Appraisal

Evaluating job performanceEvaluating job performance

Performance AppraisalPerformance Appraisal

Evaluating job performanceEvaluating job performance


Compensation and BenefitsCompensation and Benefits

Compensation SystemCompensation System The total package of rewards that a company offers The total package of rewards that a company offers

employees in return for their laboremployees in return for their labor WagesWages—m—money paid for time workedoney paid for time worked SalarySalary—m—money paid to perform a joboney paid to perform a job

Factors affecting compensationFactors affecting compensation Competitors’ wage offeringsCompetitors’ wage offerings Internal wage and salary structureInternal wage and salary structure——job value, performance, job value, performance,

and longevityand longevity Union contractsUnion contracts


Compensation and Benefits (cont’d)Compensation and Benefits (cont’d)

Incentive programsIncentive programs Special pay programs designed to Special pay programs designed to

motivate high performancemotivate high performance Individual incentives:Individual incentives:

BonusesBonuses Merit salary systemsMerit salary systems Pay for performance (variable pay)Pay for performance (variable pay)

Company-wide incentives:Company-wide incentives: Profit-sharing plans Profit-sharing plans Gainsharing plansGainsharing plans Pay-for-knowledge plansPay-for-knowledge plans


Compensation and Benefits (cont’d)Compensation and Benefits (cont’d)

Benefits ProgramsBenefits Programs Mandatory (required by law)Mandatory (required by law)

Social Security retirement benefitsSocial Security retirement benefits Workers’ compensation insuranceWorkers’ compensation insurance

Discretionary (optional)Discretionary (optional) Health, life, and disability insuranceHealth, life, and disability insurance Vacations and holidaysVacations and holidays Employee assistance programsEmployee assistance programs Retirement (pension) plansRetirement (pension) plans

Contain the costs of benefitsContain the costs of benefits Cafeteria benefits plansCafeteria benefits plans


The Legal Context of HRMThe Legal Context of HRM

Equal Employment Opportunity LawsEqual Employment Opportunity Laws Protect workers from unfair or inappropriate (non-job-related) Protect workers from unfair or inappropriate (non-job-related)

discrimination in the workplacediscrimination in the workplace

Protected Classes in the WorkplaceProtected Classes in the Workplace Individuals sharing common characteristics as defined by lawIndividuals sharing common characteristics as defined by law

Race, color, religion, gender, age, national origin, disability status, Race, color, religion, gender, age, national origin, disability status, and status as a military veteranand status as a military veteran

Equal Employment Opportunity Commission (EEOC)Equal Employment Opportunity Commission (EEOC) Federal agency that enforces discrimination-related lawsFederal agency that enforces discrimination-related laws

Affirmative ActionAffirmative Action Written plan for actively recruiting, hiring, and developing Written plan for actively recruiting, hiring, and developing

members of protected classesmembers of protected classes


The Legal Context of HRM (cont’d)The Legal Context of HRM (cont’d)

Contemporary Legal Issues in HRM Contemporary Legal Issues in HRM Employee safety and healthEmployee safety and health

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

Emerging areas of discrimination lawEmerging areas of discrimination law AIDs in the workplaceAIDs in the workplace Sexual harassmentSexual harassment

– Quid pro quoQuid pro quo– Hostile work environmentHostile work environment

Employment-at-willEmployment-at-will– Wrongful dischargeWrongful discharge


New Challenges in the New Challenges in the Changing WorkplaceChanging Workplace

Managing Workforce DiversityManaging Workforce Diversity Workforce diversity: Workforce diversity:

The range of workers’ attitudes, values, beliefs, and The range of workers’ attitudes, values, beliefs, and behaviors that differ by gender, race, age, ethnicity, physical behaviors that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristicsability, and other relevant characteristics

Organizations are recognizing that diversity can be a Organizations are recognizing that diversity can be a competitive advantagecompetitive advantage


FIGURE 10.3FIGURE 10.3 Changing Composition of the U.S. WorkforceChanging Composition of the U.S. WorkforceFIGURE 10.3FIGURE 10.3 Changing Composition of the U.S. WorkforceChanging Composition of the U.S. Workforce

*Projection


New Challenges in the New Challenges in the Changing Workplace (cont’d)Changing Workplace (cont’d)

Managing Knowledge WorkersManaging Knowledge Workers Knowledge workers add value because of what they Knowledge workers add value because of what they

knowknow Computer scientistsComputer scientists Physical scientistsPhysical scientists EngineersEngineers

Hiring and retaining Hiring and retaining knowledge workers is a knowledge workers is a

critical HR challengecritical HR challenge



Contingent WorkersContingent Workers A person who works for an organization on A person who works for an organization on

something other than a permanent or full-time basissomething other than a permanent or full-time basis Independent contractorsIndependent contractors On-call workersOn-call workers Temporary employeesTemporary employees Contract and leased employeesContract and leased employees Part-time workersPart-time workers



Managing Contingent and Temporary WorkersManaging Contingent and Temporary Workers Careful planning for coordinated use of temporary Careful planning for coordinated use of temporary

workersworkers

Understanding the advantages and disadvantages of Understanding the advantages and disadvantages of contingent workerscontingent workers

Assessing the true cost of using contingent workersAssessing the true cost of using contingent workers

Developing a strategy for integrating contingent Developing a strategy for integrating contingent workers into the organizationworkers into the organization


Dealing with Organized LaborDealing with Organized Labor

Labor UnionLabor Union A group of individuals working together to achieve A group of individuals working together to achieve

shared job-related goals, such as higher pay, shared job-related goals, such as higher pay, shorter working hours, more job security, greater shorter working hours, more job security, greater benefits, or better working conditionsbenefits, or better working conditions

Labor RelationsLabor Relations The process of dealing with employees who are The process of dealing with employees who are

represented by a unionrepresented by a union

Collective BargainingCollective Bargaining The process by which union leaders and managers The process by which union leaders and managers

negotiate common terms and conditions of negotiate common terms and conditions of employment for the workers represented by unionsemployment for the workers represented by unions


Dealing with Organized Labor (cont’d)Dealing with Organized Labor (cont’d)

Trends in Union MembershipTrends in Union Membership Since the mid-1950s, membership has declined at Since the mid-1950s, membership has declined at

a steady rate to its present level of 12.5 percent.a steady rate to its present level of 12.5 percent. The percentage of successful union-organizing The percentage of successful union-organizing

campaigns has also declinedcampaigns has also declined.

Trends in Union-Management RelationsTrends in Union-Management Relations In most sectors, unions are in a weakened position, In most sectors, unions are in a weakened position,

and have taken more conciliatory stances in their and have taken more conciliatory stances in their relations with management.relations with management.


Collective BargainingCollective Bargaining

Collective BargainingCollective Bargaining An ongoing process involving both the drafting and An ongoing process involving both the drafting and

the administering of the terms of a labor contract.the administering of the terms of a labor contract.

Contract IssuesContract Issues CompensationCompensation

Cost of living adjustment (COLA) clausesCost of living adjustment (COLA) clauses Wage reopener clausesWage reopener clauses

BenefitsBenefits Job securityJob security Other union issuesOther union issues Management rightsManagement rights


FIGURE 10.5FIGURE 10.5 The Bargaining ZoneThe Bargaining ZoneFIGURE 10.5FIGURE 10.5 The Bargaining ZoneThe Bargaining Zone


Collective Bargaining (cont’d)Collective Bargaining (cont’d)

Union Tactics When Bargaining FailsUnion Tactics When Bargaining Fails StrikeStrike

Economic strikesEconomic strikes Sympathy (secondary) strikesSympathy (secondary) strikes Wildcat strikesWildcat strikes

PicketingPicketing BoycottBoycott Work slowdownWork slowdown

Management Tactics When Bargaining FailsManagement Tactics When Bargaining Fails LockoutsLockouts StrikebreakersStrikebreakers


MediationMediation

Voluntary ArbitrationVoluntary Arbitration

Compulsory ArbitrationCompulsory Arbitration

Collective Bargaining (cont’d)Collective Bargaining (cont’d)

Resolving DisputesResolving Disputes


K E Y T E R M SK E Y T E R M S

affirmative action plan affirmative action plan

benefits benefits

bonus bonus

boycott boycott

cafeteria benefits plan cafeteria benefits plan

collective bargaining collective bargaining

compensation system compensation system

compulsory arbitration compulsory arbitration

contingent worker contingent worker

cost-of-living adjustment (COLA) cost-of-living adjustment (COLA)

economic strikeeconomic strike

employee information system employee information system (skills inventory) (skills inventory)

employment at will employment at will

equal employment opportunity equal employment opportunity

Equal Employment Opportunity Equal Employment Opportunity Commission (EEOC) Commission (EEOC)

external recruiting external recruiting

gainsharing plan gainsharing plan

hostile work environment hostile work environment

human resource management human resource management (HRM) (HRM)

incentive program incentive program

internal recruiting internal recruiting

job analysis job analysis

job description job description

job specificationjob specification

knowledge workersknowledge workers


K E Y T E R M S (cont’d)K E Y T E R M S (cont’d)

labor relations labor relations

labor union labor union

lockout lockout

mediation mediation

merit salary systemmerit salary system

PowerPoint Presentation by Charlie Cook The University of West Alabama Business Essentials Ronald J. Ebert Ricky W. Griffin People in Organizations 33.

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