Human Resource Management http://www.wileybusinessupdates.com

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Human Resource Managementhttp//www.wileybusines
supdates.com
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Chapter
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Learning Goals
Explain the role and responsibilities of human
resource management. Describe how recruitment and
selection contribute to placing the right person
in a job. Discuss how orientation, training
programs, and performance appraisals help
companies develop their employees. Describe how
firms compensate employees through pay systems
and benefit programs.
Discuss employee separation and the impact of
downsizing and outsourcing. Explain the different
methods and theories of motivation. Discuss the
role of labor unions, the collective bargaining
process, and methods for settling
labor-management disputes.
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HRM Vital to ALL Organizations

• Human resource management - function of
  attracting, developing, and retaining employees
  who can perform the activities necessary to
  accomplish organizational objectives. Three main
  objectives
• Providing qualified, well-trained employees for
  the organization.
• Maximizing employee effectiveness in the
  organization.
• Satisfying individual employee needs through
  monetary compensation, benefits, opportunities to
  advance, and job satisfaction.

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Human Resource Responsibilities
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Recruitment and Selection

• Recruiting techniques continue to evolve as
  technology advances.
• Internet recruiting is quick, efficient, and
  inexpensive.
• Reach a large pool of job seekers monster.com
• Use social networking sites
• HR must be creative in searching for qualified
  employees.
• Businesses look both internally and externally.

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Selecting and Hiring Employees

• Must follow legal requirements.
• Civil Rights Act of 1964
• American with Disabilities Act
• Equal Employment Opportunity Commission programs
• Civil Rights Act of 1991
• Failure to follow these exposes company to risk
  of litigation.
• Hiring is a costly process for employers.
• Some employers require employment tests.

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Orientation and Training

• Newly-hired employee often completes an
  orientation program
• Inform employees about company policies
• Employee manuals
• Describe benefits/programs
• Training
• Training Programs
• On-the-job training
• Classroom and computer-based training
• Management development

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Performance Appraisals

• Performance appraisal - evaluation of and
  feedback on an employees job performance.
• Some firms conduct peer reviews while other firms
  allow employees to review their supervisors and
  managers.
• May conduct a 360-degree performance review, a
  process that gathers feedback from a review panel
  that includes co-workers, supervisors, team
  members, subordinates, and sometimes customers.

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Compensation

• Wages - compensation based on an hourly pay rate
  or the amount of output produced.
• Salary - compensation calculated on a periodic
  basis, such as weekly or monthly.
• Most firms base compensation decisions on five
  factors
• What competing companies are paying
• Government regulation
• The cost of living
• Company profits
• Employees productivity

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Incentive Compensation
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Employee Benefits

• Employee Benefits - additional compensation, such
  as vacation, retirement plans, profit-sharing,
  health insurance, gym memberships, child and
  elder care, and tuition reimbursement, paid
  entirely or in part by the company.
• 30 of total employee compensation.
• Some benefits required by law
• Social Security and Medicare contributions
• State unemployment insurance and workers
  compensation programs
• Costs of health care are increasingly being
  shifted to workers.
• Retirement plans have become a big area of
  concern for businesses.

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Costs for Employee Compensation
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Flexible Benefits

• Employees are provided a range of options from
  which they can choose.
• Medical, dental, vision, life, and disability
  insurance
• Many companies also offer flexible time off
  policies instead of establishing a set number of
  holidays, vacation days, and sick days.
• 56 of companies surveyed use paid time off (PTO)
  programs.
• More than ½ claim they have reduced unscheduled
  absences

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Flexible Work

• Allow employees to adjust their working hours and
  places of work to accommodate their personal
  needs.
• Flextime allows employees to set their own work
  hours within constraints specified by the firm.
• A compressed workweek allows employees to work
  the regular number of weekly hours in fewer than
  the typical five days.
• A job sharing program allows two or more
  employees to divide the tasks of one job.
• A home-based work program allows employees, or
  telecommuters, to perform their jobs from home
  instead of at the workplace.
• More than 70 percent of Generation Y
  professionals are concerned with balancing career
  with personal life

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Employee Separation

• Voluntary turnover employees leave firms to
  start their own businesses, take jobs with other
  firms, move to another city, or retire.
• Some firms ask employees who leave voluntarily to
  participate in exit interviews to find out why
  they decided to leave.
• Successful companies are clearly focused on
  retaining their best workers.
• Involuntary turnover employers terminate
  employees because of poor job performance,
  negative attitudes toward work and co-workers, or
  misconduct such as dishonesty or sexual
  harassment.
• Necessary because poor performers lower
  productivity and employee morale.
• Employers must carefully document reasons when
  terminating employees.

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Downsizing/Outsourcing

• Downsizing - process of reducing the number of
  employees within a firm by eliminating jobs
• Downsizing has negative effects
• Anxiety, health problems, and lost productivity
  among remaining workers
• Expensive severance packages paid to laid-off
  workers
• A domino effect on the local economy

• Outsourcing transferring jobs from inside a
  firm to outside the firm
• To save expenses and remain flexible, companies
  will try to outsource functions that are not part
  of their core business.
• Although outsourcing might work on paper, the
  reality might be different.

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Motivating Employees

• Motivation starts with good employee morale, the
  mental attitude of employees toward their
  employer and job.
• High employee morale occurs in organizations
  where workers feel valued, heard, and empowered
  to contribute what they do best.
• Poor morale shows up through absenteeism,
  voluntary turnover, and lack of motivation.

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Maslows Hierarchy of Needs

• Maslows Hierarchy of Needs people have five
  levels of needs that they seek to satisfy.
• A satisfied need is not a motivator only needs
  that remain unsatisfied can influence behavior.
• Peoples needs are arranged in a hierarchy of
  importance once they satisfy one need, at least
  partially, another emerges and demands
  satisfaction.
• Physiological needs
• Safety needs
• Social (belongingness) needs
• Esteem needs
• Self-actualization needs

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Herzbergs Two-Factor Theory

• Hygiene Factors result in satisfaction
• Job Environment
• Salary
• Job Security
• Personal Life
• Working Conditions
• Status
• Interpersonal Relations
• Supervision
• Company Policies

• Motivator Factors can produce high levels of
  motivation if present
• Achievement
• Recognition
• Advancement
• The Job Itself
• Growth Opportunities
• Responsibility

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Expectancy Theory Equity Theory

• Expectancy Theory describes the process people
  use to evaluate the likelihood that their efforts
  will yield the results they want, along with the
  degree to which they want those results

• Equity Theory individuals perception of fair
  and equitable treatment

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Goal-Setting Theory

• Goal target, objective, or result that someone
  tries to accomplish
• Goal-setting theory -- people will be motivated
  to the extent to which they accept specific,
  challenging goals and receive feedback that
  indicates their progress toward goal achievement

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Management by Objective

• Systematic and organized approach that allows
  managers to focus on attainable goals and to
  achieve the best results based on the
  organizations resources.
• MBO helps motivate individuals by aligning their
  objectives with the goals of the organization,
  increasing overall organization performance.
• MBO principals
• A series of related organizations, goals, and
  objectives
• Specific objectives for each individual
• Participative decision making
• Set time period to accomplish goals
• Performance evaluation and feedback

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Job Design Motivation

• Job enlargement job design that expands an
  employees responsibilities by increasing the
  number and variety of tasks assigned to the
  worker
• Job enrichment involves an expansion of job
  duties that empowers an employee to make
  decisions and learn new skills leading toward
  career growth
• Job rotation involves systematically moving
  employees from one job to another.

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Managers Attitudes Motivation

• Two assumptions managers make about employees,
  according to psychologist Douglas McGregor
• Theory X assumes that employees dislike work and
  try to avoid it whenever possible, so management
  must coerce them to do their jobs.
• Theory Y assumes that the typical person
  actually likes work and will seek and accept
  greater responsibility.
• Most people can think of creative ways to solve
  work-related problems.
• Most people should be given the opportunity to
  participate in decision making.
• A third theory from management professor William
  Ouchi
• Theory Z worker involvement is key to increased
  productivity for the company and improved quality
  of work life for employees.

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Labor-Management Relations

• Labor union group of workers who have banded
  together to achieve common goals in the areas of
  wages, hours, and working conditions.
• Found at local, national, and international
  levels.
• The organized efforts of Philadelphia printers in
  1786 resulted in the first U.S. minimum wage - 1
  a day.
• 12 of the nations full-time workforce belongs
  to labor unions.
• 1/3 of government workers, 8 of private sector

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Labor Legislation

• National Labor Relations Act of 1935 (Wagner Act)
  legalized collective bargaining and required
  employers to negotiate with elected
  representatives of their employees.
• Fair Labor Standards Act of 1938 set the initial
  federal minimum wage and maximum basic workweek
  for workers employed in industries engaged in
  interstate commerce outlawed child labor.
• Taft-Hartley Act of 1947 (Labor-Management
  Relations Act) limited unions power by
  prohibiting a variety of unfair practices,
  including coercing employees to join unions and
  coercing employers to discriminate against
  employees who are not union members.
• Landrum-Griffin Act of 1959 (Labor-Management
  Reporting and Disclosure Act) amended the
  Taft-Hartley Act to promote honesty and democracy
  in running unions internal affairs.

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Collective Bargaining Process

• Collective bargaining process of negotiation
  between management and union representatives
• Issues involved can include
• Wages
• Work hours
• Benefits
• Union activities and responsibilities
• Grievance handling and arbitration
• Layoffs
• Employee rights and seniority

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Settling Labor-Management Disputes

• Most labor-management negotiations result in a
  signed agreement without a work stoppage.
• On average, 20 or fewer negotiations involve a
  work stoppage.
• Mediation is the process of settling
  labor-management disputes through recommendations
  of a third party.
• Arbitration adds a third party who renders a
  legally binding decision.

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Competitive Tactics of Unions and Management

• Union Tactics
• Strikes - temporary work stoppage by employees
  until a dispute has been settled or a contract
  signed.
• Picketing - workers marching in public protest
  against their employer.
• Boycott - organized attempt to keep the public
  from purchasing the goods and services of the
  firm.
• Management Tactics
• Lockout - a management strike to put pressure on
  union members by closing the firm.

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Future of Labor Unions

• Membership and influence are declining, caused by
  a shift from manufacturing industries to
  information and service businesses.
• 8 of private-sector workers are union members,
  but that is down from 17 in 1983.
• 52 of union members are government employees.
• Unions need to be more flexible and adapt to a
  global economy and diverse workforce.
• Unions can recognize the potential for prosperity
  for allmanagement and union workers included.