Human Resource

Management: Finding and

Keeping the BestEmployees

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 LEARNING OBJECTIVE
1. Explain the importance of human resource management, and
describe current issues in managing human resources.
2. Illustrate the effects of legislation on human resource management.
3. Summarize the five steps in human resource planning.
4. Describe methods that companies use to recruit new employees,
and explain some of the issues that make recruitment challenging.
5. Outline the six steps in selecting employees.
6. Illustrate employee training and development methods.
7. Trace the six steps in appraising employee performance.
8. Summarize the objectives of employee compensation programs,
and evaluate pay systems and fringe benefits.
9. Demonstrate how managers use scheduling plans to adapt to
workers’ needs.
10. Describe how employees can move through a company:
promotion, reassignment, termination, and retirement.
HUMAN RESOURCE MANAGEMENT
(HRM)
Human Resource Management -- The process of determining human
resource needs and then recruiting, selecting, developing, motivating,
evaluating, compensating and scheduling employees to achieve
organizational goals.
HRM’s role has grown because of:
• Increased recognition of employees as a resource.
• Changes in law that rewrote old workplace practices.
HUMAN RESOURCE MANAGEMENT

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DEVELOPING THE ULTIMATE
RESOURCE
• Service and high-tech
manufacturing requires
employees with highly
technical job skills.
• Such workers are scarce,
making recruiting and
retention more important
and more difficult.
• The human resource job is
know the job of all
managers in an
organization.

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HUMAN RESOURCE CHALLENGE

1. A shortage of trained 1. Expanding global markets

workers in key areas with low-wage workers
2. Worker shortage in skilled 2. Increasing benefit demands
trades and benefit costs
3. An increasing number of 3. A decreased sense of
baby boomers who delay employee loyalty
retirement
4. A declining economy with
fewer full-time jobs

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LAW AFFECTING HUMAN
RESOURCE MANAGEMENT
CIVIL RIGHTS ACT of 1964
•Title VII prohibits
discrimination in hiring,
firing, compensation,
apprenticeships, training,
terms, conditions or
privileges of employment
based on:
- Race
- Religion
- Creed
- Sex
- Age
- National Origin
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EQUAL EMPLOYEE OPPORTUNITY

• Affirmative Action -- Policy

Strengthened the Equal designed to “right past wrongs”
Employment Opportunity by increasing opportunities for
Commission (EEOC). minorities and women.
Gave EEOC the right to issue
workplace guidelines for
acceptable employer conduct. • Reverse Discrimination --
Discriminating against
EEOC could mandate specific members of a dominant or
recordkeeping procedures. majority group (e.g. whites or
males) usually as a result of
EEOC was vested with the policies designed to correct
power of enforcement. previous discrimination against
minority or disadvantaged
groups.

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LAWS PROTECTING
EMPLOYEES WITH DISABILITIES
Americans with Disabilities Act
of 1990 (ADA)
Requires employers to give
applicants with physical or
mental disabilities the same
consideration for employment
as people without disabilities.
2011 saw new regulations that
widen the range of disabilities
covered by the ADA and shift the
burden of proof of disability
from employees to employers.

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EFFECTS OF LEGISLATION

1. Employers must know the

law and act accordingly.
2. Legislation affects all
areas
of HRM.
3. Court cases highlight
that sometimes it’s
proper to go beyond
providing equal rights.
4. Changes in law and
legislation occur
regularly.
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DETERMINING A FIRM’S HUMAN
RESOURCE NEEDS

• Job Analysis – A study of what employees do

who hold various job titles.
• Job Description – A summary of the objectives
of the job, the type of work, the responsibilities
and duties, working conditions and relationship
to other jobs.
• Job Specifications -- A summary of the
minimum qualifications needed to do a
particular job.
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RECRUITING EMPLOYEE FROM DIVERSE
POPULATION
Recruitment -- The set of activities for obtaining the right number of
qualified people at the right time.
Human resource managers use both internal and external sources to recruit
employees

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EMPLOYEE SOURCE

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SELECTING EMPLOYEE WHO WILL BE
PRODUCTIVE
STEPS IN SELECTION
Selection -- The process of
gathering information and deciding PROCESS
who should be hired, under legal
guidelines, to serve the best 1.Obtaining complete
interest of the individual and the application forms
organization.
2.Conducting initial and
follow-up interviews
3.Giving employment tests
4.Conducting background
investigations
5.Obtaining results from
physical exams
6.Establishing trial
(probationary) work
periods
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HIRING CONTINGENT WORKERS

Contingent Workers -- Include part-time and temporary workers,

seasonal workers, independent contractors, interns and co-op
students.
There are about 5.7 million contingent workers in the U.S.
Majority of contingent workers are under 25.

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WHY HIRE CONTINGENT WORKERS

1. When full-time workers are

on leave
2. During periods of peak demand
3. In uncertain economic times
4. To save on employee benefits
5. To screen candidates for future
employment

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TRAINING AND DEVELOPING
EMPLOYEE
• Training and Development -- All attempts to
improve productivity by increasing an employee’s
ability to perform.
• Training focuses on short-term skills.
• Development focuses on long-term abilities.

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THREE STEPS OF TRAINING AND
DEVELOPMENT

1. Assessing
organization
needs and
employee skills
to develop
appropriate
training needs.

2. Designing training activities to meet identified needs.

3. Evaluating the training’s effectiveness.

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MOST COMMONLY USED TRAINING AND
DEVELOPMENT ACTIVITIES

1. Orientation
2. On-the-Job
Training
3. Apprenticeships
4. Off-the-Job
Training
5. Online Training
6. Vestibule Training
7. Job Simulation

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DEVELOPING EFFECTIVE MANAGERS

Management Development -- The

process of training and educating
employees to become good managers
and monitoring the progress of their
skills over time.

•Management training includes:

 On-the-job coaching
 Understudy positions
 Job rotation
 Off-the-job courses and training

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NETWORKING

Networking -- Establishing and

maintaining contacts with key
managers in and out of the
organization and using those
contacts to develop
relationships.
Mentors -- Managers who
supervise, coach and guide
selected lower-level employees
by acting as corporate
sponsors.
Networking and mentoring go
beyond the work environment.

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APPRAISING PERFORMANCE ON THE JOB

Performance Appraisal -- An
evaluation that measures
employee performance against
established standards in order to
make decisions about
promotions, compensation,
training or termination.
A 360-degree review gives
managers opinions from people
at different levels to get a
more accurate idea of the
worker’s ability.

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MAJOR USES OF PERFORMANCE
APPRAISALS
1. Identify training needs

2. Use as a promotiontool

3. Recognize worker’s achievements

4. Evaluate the firm’s hiring process

5. Judge the effectiveness of the

firm’s orientation process

6. Use as a basis for possible

termination of a worker

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PERFORMANCE APPRAISAL MISTAKES

1. Contrast Effect - Comparing

one employee to another.
2. Halo/Horn Effect - Allowing
performances in specific
areas to unfairly influence
overall performance
evaluation.
3. Similar-to-Me Effect -
Generosity to those you feel
are more like you.

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COMPENSATION EMPLOYEE

•A managed and competitive

compensation program helps:
- Attract the kinds of employees the
business needs.
- Build employee incentive to
work efficiently and
productively.
- Keep valued employees from going to
competitors or starting their own firm.
- Maintain a competitive market
position by keeping costs low due to
high productivity from a satisfied
workforce.
- Provide employee financial
security through wages and fringe
benefits.
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TYPES OF PAY SYSTEMS

1. Salary
2. Hourly Wage/Day Work
3. Piecework System
4. Commission Plans
5. Bonus Plans
6. Profit Sharing Plans
7. Gain-Sharing Plans
8. Stock Options

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FRINGE BENEFIT
Fringe Benefits -- Sick leave, • Fringe benefits include incentives
vacation pay, pension and like:
health plans that provide  Company cars
additional compensation to
employees beyond base wages.  Country club memberships
 Recreation facilities
 Special home mortgage rates
 Paid and unpaid sabbaticals
 Day-care and elder care
services
 Dental and eye care
 Legal counseling
 Short or compressed work
weeks
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SCHEDULING EMPLOYEE TO MEET
ORGANIZATIONAL AND EMPLOYEE NEEDS

• Flextime Plan -- Gives employees

some freedom to choose which hours
to work as long as they work the
required number of hours or complete
their tasks.
• Compressed Work Week --
Employees work the full number of
work hours, but in fewer than the
standard number of days.
• Job Sharing -- Lets two or more part-
time employees share on a full-time
job.

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A FLEXTIMECHART

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