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
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B U S 1 0 0B U S 1 0 0
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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.
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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.
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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
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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
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FIGURE 10.1FIGURE 10.1 The HR Planning ProcessThe HR Planning ProcessFIGURE 10.1FIGURE 10.1 The HR Planning ProcessThe HR Planning Process
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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
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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
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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
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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
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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
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Developing the WorkforceDeveloping the Workforce
TrainingTraining On-the-job trainingOn-the-job training
Off-the-job trainingOff-the-job training
Vestibule trainingVestibule training
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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
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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
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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
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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
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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
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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
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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
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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
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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
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New Challenges in the New Challenges in the Changing Workplace (cont’d)Changing Workplace (cont’d)
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
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New Challenges in the New Challenges in the Changing Workplace (cont’d)Changing Workplace (cont’d)
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
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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
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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.
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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
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FIGURE 10.5FIGURE 10.5 The Bargaining ZoneThe Bargaining ZoneFIGURE 10.5FIGURE 10.5 The Bargaining ZoneThe Bargaining Zone
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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
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MediationMediation
Voluntary ArbitrationVoluntary Arbitration
Compulsory ArbitrationCompulsory Arbitration
Collective Bargaining (cont’d)Collective Bargaining (cont’d)
Resolving DisputesResolving Disputes
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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
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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