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© 2009 South-Western, a division of Cengage Learning
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CHAPTER 16: Human Resource Management
BUILDING A TOP-QUALITY WORKFORCE
© 2009 South-Western, a division of Cengage Learning
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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?
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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HUMAN RESOURCE MANAGEMENT CHALLENGES:
• Older Workers
• Younger Workers
• Women Workers
• Need for Flexibility
• Wage Gap
• Outsourcing
• Lawsuits
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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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.
© 2009 South-Western, a division of Cengage Learning
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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)
© 2009 South-Western, a division of Cengage Learning
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SELECTION: MAKING THE RIGHT CHOICE
Application
Interviews
Testing
References and Background Checks
© 2009 South-Western, a division of Cengage Learning
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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…
© 2009 South-Western, a division of Cengage Learning
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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.”
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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TRAINING AND DEVELOPMENT: HONING THE COMPETITIVE EDGE
! Increase innovation
! Increase technology adoption
! Increase productivity
! Increase motivation
!Decrease liability
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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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.
© 2009 South-Western, a division of Cengage Learning
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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.
© 2009 South-Western, a division of Cengage Learning
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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.
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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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)
© 2009 South-Western, a division of Cengage Learning
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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.
© 2009 South-Western, a division of Cengage Learning
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VARIABLE PAY
Commission
Bonuses
Profit Sharing
Stock Options
Pay for Knowledge
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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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.
© 2009 South-Western, a division of Cengage Learning
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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)
© 2009 South-Western, a division of Cengage Learning
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FLEXIBLE SCHEDULING
FlextimeCompressed
WorkweekTelecommuting
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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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)
© 2009 South-Western, a division of Cengage Learning
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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
© 2009 South-Western, a division of Cengage Learning
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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?
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