Managing Human Resources

and Labor Relations

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The Future of BusinessThe Essentials 4th EditionGitman & McDaniel

Prepared byDeborah Baker

Chapter 8Copyright ©2009 by South-Western, a division of Cengage Learning. All rights reserved

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Learning Goals

CH

AP

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R 81 What is the human resource management

process, and how are human resource needs determined?

2 How do firms recruit applicants?

3 How do firms select qualified applicants?

4 What types of training and development do organizations offer their employees?

3

Learning Goals (continued)

CH

AP

TE

R 85 How are performance appraisals used to evaluate

employee performance?

6 What are the types of compensation and methods for paying workers?

7 What is a labor union and how is it organized?

8 What is collective bargaining, and what are some of the key negotiation issues?

4

Learning Goals (continued)

CH

AP

TE

R 89 How are grievances between management and

labor resolved, and what tactics are used to force a contract settlement?

10 What are the key laws and federal agencies affecting human resource management and labor relations?

11 What trends and issues are affecting human resource management and labor relations?

51

What is the human resource management process, and how are human resource needs determined?

1

Human Resource Management

6

human resource management

The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals.

1

Human Resource Management

7Exhibit 8.1

Compensation and benefits

Compensation and benefits

Performance planning and evaluation

Performance planning and evaluation

Training and development

Training and development

Strategies, goals, and market position

Strategies, goals, and market position

Job analysis and design/HR planning and forecasting

Employeerecruitment

Employeeselection

Retention/turnover

Retention/turnover

HR outcomes

HR outcomes

1

Human Resource Management Process

8

human resources planning

Creating a strategy for meeting future human resource needs.

• the right number of people,• with the right training, • in the right jobs, • to meet goals

1

Human Resources Planning

9

Job Analysis and Design

1

101

Human Resource Planning and Forecasting

Estimate the number of peoplecurrently employed who will be available to fill jobs at some future time

Estimate the number of peoplecurrently employed who will be available to fill jobs at some future time

Determine the number of people needed by some future timeDetermine the number of people needed by some future time

The HRDemandForecast

The HRDemandForecast

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CONCEPT check

1

Define human resource management.

Distinguish between job analysis, job description, and the job specification.

Describe the human resource management process.

122

How do firms recruit applicants? 2

Employee Recruitment

13

ExternalLabor MarketExternalLabor Market

Internal Labor MarketInternal Labor Market

Employee Recruitment

2

14

recruitment branding

Employee Recruitment

2

Presenting an accurate and positive image of the firm to those being recruited by including current information about the firm in printed recruitment materials and Web-based job announcements.

15

CONCEPT check

What are the two sources of job applicants?

What are some methods firms use to recruit applicants?

What is meant by recruitment branding?

2

163

How do firms select qualified applicants?3

Employee Selection

17

selection

Employee Selection

Presenting an accurate and positive image of the firm to those being recruited by including current information about the firm in printed recruitment materials and Web-based job announcements.

3

18

Employee Selection Process

Exhibit 8.43

1. Initial screening: application and interview1. Initial screening: application and interview

2. Employment testing2. Employment testing

3. Selection interview3. Selection interview

4. Background and reference checks4. Background and reference checks

5. Physical exams and drug testing5. Physical exams and drug testing

6. Decision to hire6. Decision to hire

19

CONCEPT check

Describe the employee selection process.

What are some of the ways that prospective employees are tested?

3

204

What types of training and development do organizations offer their employees?

4

Employee Training and Development

21

training and development

Activities that provide learning situations in which an employee acquires additional knowledge or skills to increase job performance.

Training is done:• on-the-job• off-the-job

Employee Training and Development

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Employee Training and Development Process

Training Needs

Assessment

Training Needs

Assessment

Feedback for Training Improvement

TrainingObjective

TrainingObjective

Design Training Program

Design Training Program

Conduct Training Program

Conduct Training Program

Training Program

Evaluation

Training Program

Evaluation

4 Exhibit 8.6

23

orientation

Presentation to get the new employee ready to perform his or her job.

On-the-Job Training

4

244

On-the-Job Training

254

Off-the-Job Training

Classroom training

e-learning and e-training

Programmed instruction

Simulation

26

CONCEPT check

Describe several types of on-the-job training.

What are the advantages of simulation training?

How is technology impacting off-the-job training?

4

275

How are performance appraisals used to evaluate employee performance?

5

Performance Planning and Evaluation

28

performance appraisal

A comparison of actual performance with expected performance to assess an employee’s contributions to the organization.

Performance Planning and Evaluation

5

29

Performance Planning and Appraisal Process

Employee jobtask behavior

Employee jobtask behavior

Performance Planning:Setting standardsand expectations

Performance Planning:Setting standardsand expectations

Performanceevaluation

Performanceevaluation

Rewards andjob changes

Rewards andjob changes

Performance Feedback

Exhibit 8.75

30

CONCEPT check

What are the steps in the performance planning and appraisal process?

What purposes do performance appraisals serve?

Describe some sources of information for the performance appraisal.

5

316

What are the types of compensation and methods for paying workers?

6

Employee Compensation and Benefits

32

Types of Compensation or Pay

6

33

unemployment compensation

Government payment to unemployed former workers.

worker’s compensation

Pay for lost work time due to employment-related injuries.

Types of Indirect Pay

6

34

Paid time off

Insurance

Pensions and retirement savings accounts

Stock purchase options

Other Benefits

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35

cafeteria-style benefit plan

Employees are allowed to mix and match benefit items or select items based on individual needs.

Employee Benefits

6

36

CONCEPT check

How does a firm establish a pay scale for its employees?

What is the difference between direct and indirect pay?

Explain the concept of a cafeteria-style benefit plan.

6

377

What is a labor union and how is it organized?7

The Labor Relations Process

38

labor union

An organization that represents workers in dealing with management over disputes involving wages, hours, and working conditions.

collective bargaining

Negotiating a labor agreement.

Labor Unions

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Labor Relations Process

7

40

Benefits Stressed by Unions

7

Almost alwaysAlmost always

Grievance procedures

Job security Improved benefits Higher pay

OftenOften SeldomSeldom

More influence in decision making

Better working conditions

Lobbying opportunities

Increased production

Higher-quality products

Technical training More job

satisfaction

Exhibit 8.9

41

Employer Arguments Against Unionization

7 Exhibit 8.9

An employee can always come directly to management with a problem.

As a union member, you will pay monthly union dues of $15 to $30.

Merit-based decisions are better than seniority-based.

Pay and benefits are similar to the leading firms in the industry.

We meet all health and safety standards of OSHA.

Performance and productivity are more important than union representation in determining pay raises.

42

Union Organizing Process and Election

4. NLRB determination of bargaining unit4. NLRB determination of bargaining unit

3. Petition for certification election3. Petition for certification election

2. Authorization card campaign2. Authorization card campaign

1. Union contact with employees1. Union contact with employees

6. Election6. Election

5. Employer and union preelection campaigns5. Employer and union preelection campaigns

7a. Certification of union and start of collective bargaining

7a. Certification of union and start of collective bargaining 7b. Rejection of union7b. Rejection of union

7 Exhibit 8.10

438

What is collective bargaining, and what are some of the key negotiation issues?

8

Collective Bargaining

44

Negotiating Labor Agreements

8

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Union Security

8

union shopNonunion workers can be hired, but they must join the union.

agency shopDoes not require workers to join the union.

open shopWorkers can work at a unionized company without having to join the union (right-to-work law).

46

Management Rights

8

management rights clause

A clause in the labor agreement that gives the employer all rights to manage the business except as specified in the contract.

This list might secure management’s right to:• Schedule work hours• Hire and fire workers• Set production standards• Determine the number of supervisors• Promote, demote, and transfer workers

47

Wages and Benefits

Higher wages for overtime, holiday work, and less desirable shifts

Insurance programs

Payment for certain nonwork time

Pensions

Income-maintenance plans

Supplementary unemployment benefits

Unemployment compensation

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48

Job Security and Seniority

8

job security

The assurance, to some degree, that workers will keep their jobs. Depends primarily on the continued success and financial well-being of the company.

seniorityThe length of an employee’s continuous service with a firm.

49

CONCEPT check

Discuss the modern labor movement.

What are the various topics that may be covered during collective bargaining?

Explain the differences among a union shop, agency shop, and an open shop.

8

509

How are grievances between management and labor resolved, and what tactics are used to force a contract settlement?

9

Managing Grievances and Conflicts

51

grievance

A formal complaint, filed by the employee or by the union, charging that management has violated the contract.

arbitration

The process of settling a labor-management dispute by having a third party make a decision, which is binding on both the union and the employer.

Managing Grievances and Conflicts

9

52

CONCEPT check

Describe the grievance procedure.

In what ways do arbitrators act like judges?

What are some tactics for pressuring for a contract settlement?

9

5310

What are the key laws and federal agencies affecting human resource management and labor relations?

10

Legal Environment of HR and Labor Relations

54

Wagner and Taft-Hartley Acts

Employees have the right to unionize and bargain collectively

Employers must deal with the union fairly, bargain in good faith, and not discriminate against employees who belong to a union

Unions must represent all employees covered by a labor agreement and deal with the employer in good faith

10

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Functions of the EEOC

10

Processing discrimination complaintsProcessing discrimination complaints

Issuing written regulationsIssuing written regulations

Information gathering and disseminationInformation gathering and dissemination

56

Affirmative Action

protected classes

The specific groups who have legal protection against employment discrimination. Includes women, African Americans, Hispanic Americans, Native Americans, and others.

affirmative action programs

Programs established by organizations to expand job opportunities for women and minorities.

10

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Specialist that facilitates labor-management contractdiscussions and suggestscompromises.

Specialist that facilitates labor-management contractdiscussions and suggestscompromises.

MediatorMediator

Specialist in labor-management negotiations that acts as a go-between for management and the unions and helps focus on the problems.

Specialist in labor-management negotiations that acts as a go-between for management and the unions and helps focus on the problems.

ConciliatorConciliator

Federal Mediation and Conciliation Service

10

58

CONCEPT check

Discuss the laws that govern wages, pensions, and employee compensation.

Describe the Americans with Disabilities Act.

How do the Wagner and Taft-Hartley Acts impact labor-management relations?

10

5911

What trends and issues are affecting humanresource management and labor relations?

11

Trends in HR Management and Labor Relations

6011

Trends in HR Management and Labor Relations

61

Competitive Advantage

competitive advantage

A set of unique features of an organization that are perceived by customers and potential customers as significant and superior to the competition.

11

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Service Workers in 2012

Job Projected Growth

Cashier 13%

Customer Service 24%

Food preparation 23%

Janitorial 18%

Nursing aide 25%

11

63

CONCEPT check

How can employee diversity give a company a competitive advantage?

Explain the concept of hiring for fit.

Why does the service industry provide an opportunity for labor union growth?

11