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Human Resource Management: From
Recruitment to Labor Relations
www.wileybusinessupdates.com
Copyright 2015 John Wiley & Sons, Inc.
Copyright © 2013 Pearson Education, Inc.
Publishing as Prentice Hall
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Chapter 8
Learning Objectives
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Explain the role of human resources: the people
behind the people.
Describe recruitment and selection.
Discuss orientation, training, and evaluation.
Describe compensation.
Discuss employee separation.
Explain the different methods for
motivating employees.
Discuss labor-management relations.
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Human Resource Management
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To achieve a high level of job satisfaction and dedication among employees
Attracts, develops, and retains employees to perform the jobs necessary to
accomplish organizational objectives
Plan for staffing needs
Recruit and hire workers
Provide for training and evaluate performance
Determine compensation and benefits
Oversee employee separation
Human Resource Management Responsibilities
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Objectives of HR Managers
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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
Recruitment and Selection
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Recruiting techniques continue to evolve as technology advances.
In addition to a company’s website, Internet recruiting is quick,
efficient, and inexpensive.
Reach a large pool of job seekers – www.indeed.com
Use social networking sites - www.linkedin.com
HR must be creative in searching for qualified employees.
Businesses look both internally and externally.
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Steps in the Recruitment and Selection Process
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Selecting and Hiring Employees
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Must follow legal requirements
Title VII of the Civil Rights Act of 1964
Americans with Disabilities Act of 1990
Equal Employment Opportunity Commission programs
Civil Rights Act of 1991
Understanding the laws is important
Hiring is a costly process
Some employers require employment tests
Orientation, Training, and Evaluation
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Newly-hired employees complete an orientation program
Includes information about company policies
Describes employee rights and benefits
Benefits/programs
Employees may receive an employee manual
Training programs provide skill building and knowledge. Types of
training:
On-the-Job Training
Classroom and Computer-Based Training
Management Development
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Performance Appraisals
Performance appraisals are used to evaluate an employee’s job performance
Feedback is intended to improve performance
Decisions about compensation, promotion, training needs, transfers, and even
termination are made
One type of performance review is a 360-degree performance review
To be effective, performance reviews should be:
Linked to organizational goals
Be based on objective criteria
Take place in the form of a two-way conversation
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Compensation
The amount employees are paid in money and benefits
Impacts job satisfaction
Wages refer to hourly pay (factory workers)
Salaries refer to annual pay (professionals)
Compensation decisions are based upon:
What competitors are paying
Government regulation
Cost of Living
Company profits
Employee’s productivity
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Forms of Incentive Compensation
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Employee Benefits
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In addition to wages and salaries, benefits to employees and their families as part of
their compensation. They include:
Vacation
Retirement plans
Profit-sharing
Health insurance
Gym memberships
Child and elder car
Tuition reimbursement
Benefits required by law include Social Security and Medicare contributions
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Average Costs for Employee Compensation
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Flexible Benefits
Benefits plans must be tailored to the needs of a diverse employee base
Employees can choose from a wide range of options for medical, dental,
vision, life, disability, etc.
Flexible benefit plans are also known as cafeteria plans
Each employee receives a set allowance (flex dollars or credits) to pay for
benefits to match needs.
Many companies have flexible time-off policies such as PTO or Paid-time-
off
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Flexible Work
Benefits that allow employees to adjust their working hours or place
of work
Flextime
Compressed workweek
Job-sharing
Home-based work (telecommuting)
Results is reduced turnover and absenteeism
Critical in attracting and retaining talent
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Employee Separation
The loss of an employee for any reason
Voluntary turnover is when an employee resigns – many times, to
take another job
Exit interview – provides valuable information
Involuntary turnover is when an employee is terminated due to
poor job performance, unethical behavior, downsizing, or
outsourcing
Occurs when firms are forced to eliminate jobs
A cost-cutting measure
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Downsizing and Outsourcing
Downsizing is the hard choice of eliminating jobs (reducing employees)
due mainly to cut costs
Can be accomplished with early retirement plans or voluntary severance
programs
Downsizing can have negative effects
Outsourcing – another way to create a leaner organization by transferring
jobs from inside a firm to the outside.
Types of jobs outsourced: office maintenance, security, data processing,
manufacturing, design.
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Motivating Employees
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Employers look for ways to motivate employees to perform at their peak
Motivation begins with high employee morale – a positive attitude towards the
job
High morale - good management and the ability to understand human needs
Low morale - a poor relationship between managers and employees
Managers use extrinsic (pay, benefits, praise) and intrinsic (pride/achievement)
rewards to motivate
Maslow’s Hierarchy of
Needs Theory
Maslow’s 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.
People’s 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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Herzberg’s Two-Factor Model of Motivation
Hygiene Factors (extrinsic) result
in satisfaction
Job Environment
Salary
Job Security
Personal Life
Working Conditions
Status
Interpersonal Relations
Supervision
Company Policies
Motivator Factors (intrinsic), if
present, can produce high levels of
motivation
Achievement
Recognition
Advancement
The Job Itself
Growth Opportunities
Responsibility
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Expectancy Theory and Equity Theory
Expectancy theory describes the process
people use to evaluate the likelihood that their
efforts will yield wanted results, and the
degree to which the results are desired.
Equity theory is an individual’s perception
of fair and equitable treatment in terms of
effort and rewards.
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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.
Basic components:
Goal specificity
Goal difficulty
Goal acceptance
Performance feedback
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Management by Objective
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A goal-setting technique introduced by Peter Drucker
Allows managers to focus on attainable goals and to achieve the best results
based on the organization’s resources
Aligns individual’s objectives with the goals of the organization, increasing
overall organizational performance.
Outlines tasks, goals, and contributions.
A collaborative process between managers and employees
Job Design & Motivation
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Three ways jobs can be restructured to be more motivating:
Job enlargement: job design that expands an employee’s 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.
Managers’ Attitudes & Motivation
Managers make two assumptions about employees:
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.
William Ouchi’s 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 – a 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
12% of the nation’s full-time workforce belongs to labor unions
1/3 government workers, 8% of private sector
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Labor Legislation
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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 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.
Collective Bargaining
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Process of negotiation between management and union
representatives, and issues can include:
Wages
Work Hours
Benefits
Union Activities and Responsibilities
Grievance handling and arbitration
Layoffs
Employee rights and seniority
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 Union and Management
Union Tactics
Strikes – temporary work stoppage by employees until a dispute has
been settled or contract signed
Picketing – workers marching in public protest against their employer
Boycott – organized attempt to keep the public from purchasing a
firm’s goods and services.
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 all—management
and union workers included.
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