Managing Human Managing Human ResourcesResources

Human Resource Human Resource Management (HRM)Management (HRM)

Motivation

Motivation

CompensationCompensation

AcquiringAcquiring MaintainingMaintaining DevelopingDeveloping

Eval

uatio

nEv

alua

tion

Training & DevelopmentTraining & Development

Functions of the Human Functions of the Human Resources DepartmentResources Department

Planning for Staffing Needs

Recruiting and Hiring

Training and Development

Appraising and Retaining

Planning for Staffing NeedsPlanning for Staffing Needs

From Business

Plan

EstimateDemand forEmployees

EstimateSupply of

Employees

PerformJob Analysis

Write JobDescriptions

Write JobSpecifications

To HiringProcess

Evaluating Job Requirements

Forecasting

Forecasting DemandForecasting Demand• Predicted salesPredicted sales• Expected turnover rateExpected turnover rate• Workforce’s skill levelWorkforce’s skill level• Impending strategic decisionsImpending strategic decisions• Changes in technologyChanges in technology• Company’s financial statusCompany’s financial status• Status of key employeesStatus of key employees

Forecasting SupplyForecasting Supply

Existing WorkersExisting Workers

Temporary WorkersTemporary Workers

OutsourcingOutsourcing

Evaluating Evaluating Job RequirementsJob Requirements

JobJobAnalysisAnalysis

JobJobDescriptionDescription

JobJobSpecificationSpecification

InternalInternalSearchesSearches

Newspaper AdsNewspaper Ads Internet AdsInternet Ads

Trade ShowsTrade Shows HeadhuntersHeadhunters ReferralsReferrals

EmploymentEmploymentAgenciesAgencies

Union HallsUnion Halls CollegesColleges

Recruiting EmployeesRecruiting Employees

How Employers and Job-How Employers and Job-Seekers Approach the Seekers Approach the

Recruiting ProcessRecruiting Process

NetworkingNetworkingand Personaland PersonalReferencesReferences

Look InsideLook Insidethe Companythe Company

UnsolicitedUnsolicitedRRésumésésumés

NewspaperNewspaperor Internetor InternetWant AdsWant Ads

EmploymentEmploymentAgency orAgency or

Search FirmSearch Firm

EmployersEmployers

Job SeekersJob Seekers

The Hiring ProcessThe Hiring ProcessSelect

Qualified Candidates1

ConductIn-Depth Interviews

3

CheckReferences

5

Screenthe Candidates

2

Evaluatethe Candidates

4

Select theBest Candidate

6

Background ChecksBackground ChecksEducationalEducationalCredentialsCredentials

Time GapsTime GapsBetween JobsBetween Jobs

Arrest Records Arrest Records

EmploymentEmploymentVerificationVerification

Reference Reference ChecksChecks

Credit HistoriesCredit Histories

Hiring and the LawHiring and the LawEqual EmploymentEqual Employment

OpportunityOpportunity

Negligent HiringNegligent Hiring

Immigration ReformImmigration Reformand Control Act and Control Act

Preemployment TestingPreemployment Testing

Job-SkillsJob-Skills

PsychologicalPsychological

Drugs and AlcoholDrugs and Alcohol

Training and Training and DevelopmentDevelopment

OrientationOrientation

TrainingTraining

RetrainingRetraining

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 11 - 15

Appraising EmployeesAppraising Employees

Electronic PerformanceMonitoring

360-DegreeReviews

Regular WrittenEvaluations

Periodic Performance Appraisals

Objectivity

Fairness

Improvement

Standards

Workplace CompensationWorkplace Compensation

Wages Salaries

Benefits Pay Scale BenefitsBonuses

Hourly Workers

CorporateExecutives

Fair Labor Standards ActFair Labor Standards Act

Guidelines for Administering Salaries and Wages

On-the-JobResponsibilities

OverallLevel of Pay

ExemptEmployees

NonexemptEmployees

OvertimePay

Hot Compensation IssuesHot Compensation Issues

Lower End of Pay Scale Upper End of Pay Scale

Downward Pressureon Wages

Downward Pressureon Benefits

Compensation Gap Between CEO and Employees

Disparity Between Results and Compensation

Incentive ProgramsIncentive ProgramsBonuses

Commissions

Profit Sharing

Incentive ProgramsIncentive ProgramsGain Sharing

Pay for Performance

Knowledge-Based Pay

Benefits and Benefits and ServicesServices

InsuranceInsurance

Retirement PlansRetirement Plans

Stock OptionsStock Options

Family BenefitsFamily Benefits

Insurance BenefitsInsurance BenefitsLife and HealthLife and Health

Dental and VisionDental and Vision

DisabilityDisability

Long-Term CareLong-Term Care

Insurance Insurance ChallengesChallenges

Flat WagesFlat Wages

Level PricesLevel Prices

Rising PremiumsRising Premiums

Creative Approaches to Creative Approaches to Skyrocketing Health-Care Skyrocketing Health-Care

CostsCostsHigh-Deductible InsuranceHigh-Deductible Insurance

In-House ClinicsIn-House Clinics

Employer-Driven Employer-Driven Quality ImprovementsQuality Improvements

Health Savings AccountsHealth Savings Accounts

Health Insurance Health Insurance Buying GroupsBuying Groups

Insurance for the Uninsured Insurance for the Uninsured

Sliding Scale PlansSliding Scale Plans Wellness Programs Wellness Programs

Retirement BenefitsRetirement Benefits

Defined Benefit Plans

Retirement age

Average salary

Years of service

Defined Contribution Plans

Employer contributions

Employee contributions

Accumulated earnings

Employee Pension Plans

Stock Option PlansStock Option Plans

Employer BenefitsEmployer Benefits Employee BenefitsEmployee Benefits

Cost EffectiveCost Effective

Long-Term IncentivesLong-Term Incentives

Profit PotentialProfit Potential

Vested InterestVested Interest

Family-Friendly Family-Friendly BenefitsBenefits

Elder-CareElder-CareUnpaidUnpaidLeaveLeave

DaycareDaycare

Other Employee Other Employee BenefitsBenefits

• Vacations, holidays, and sick leaveVacations, holidays, and sick leave• Professional developmentProfessional development• Financial or legal counselingFinancial or legal counseling• Wellness programsWellness programs• Employee Assistance ProgramsEmployee Assistance Programs• Corporate perksCorporate perks

Overseeing ChangesOverseeing Changesin Employment Statusin Employment Status

Promotion

Reassignment

Termination

Retirement

Promoting from WithinPromoting from Within

Advantages Advantages Disadvantages Disadvantages

Maximizes WorkforceMaximizes Workforce

Rewards EmployeesRewards Employees

Boosts MoraleBoosts Morale

Individual CompetenceIndividual Competence

Potential TurnoverPotential Turnover

Training CostsTraining Costs

Terminating Terminating EmployeesEmployees

Performance RelatedPerformance Related Not Performance RelatedNot Performance Related

At-Will EmploymentAt-Will Employment

Wrongful DischargeWrongful Discharge

Rank and YankRank and Yank

Business DownturnsBusiness Downturns

Effects on EmployeesEffects on Employees

Outplacement EffortsOutplacement Efforts

Retiring Retiring EmployeesEmployees

Hiring MatureHiring MatureWorkersWorkers

BalancingBalancingThe WorkforceThe Workforce