Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
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Human Resource Management
Human resource management is more than hiring em-
ployees. It involves a multitude of tasks and responsibili-
ties. This slide gives some insight into the various roles the
HRM department has now assumed. Business leaders in
many companies understand the effect management of hu-
man capital can have in creating a competitive advantage in
the marketplace.
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Human Resource Management (HRM)
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Uncovering the Secrets of HRM
1. This slide shows that the HR department can
help or hurt your career.
2. Some folks will approach HR with every little
problem they encounter. However, with the de-
cline in employment, HR departments are often
under pressure to get more pressing things taken
care of.
3. If you want to succeed in a company, make sure
the HR staff knows you and likes you. They can
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Developing the Firm’s Ultimate
Resource
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Challenges in Finding High-Level
Workers
Demographic changes are creating a challenging envi-
ronment for HR managers, requiring companies to come up
with creative ways to attract, develop, and retain employ-
ees.
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Civil Rights Act of 1964
The Civil Rights Act of 1964 was a significant piece of
legislation and directly brought the federal government into
human resource management.
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1972 Equal Employment Opportunity
Act (EEOA)
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Controversial Procedures of the EEOC
Ask the students, Did affirmative action create reverse
discrimination against whites and males by unfairly giving
preference to females and minorities?
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Civil Rights Act of 1991 and OFCCP
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Laws Protecting Employees with
Disabilities
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Age Discrimination in Employment Act
(ADEA)
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Minding the Law in HRM
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The Million Woman Suit against
Wal-Mart
Although the Supreme Court ruled in favor of Wal-Mart,
the Court did not decide whether Wal-Mart had, in fact,
discriminated against the women; only that they could not
proceed as a class.
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Progress Assessment
1. Human resource management is the process of de-
termining the needs of the organization and then re-
cruiting, selecting, developing, motivating, evaluat-
ing, compensating, and scheduling employees to
achieve organizational goals.
2. Title VII prohibits discrimination in hiring, firing,
compensation, apprenticeships, training, terms,
conditions, or privileges of employment based on
race, religion, creed, sex, or national origin. At a
later date age discrimination was added to the act.
3. The Equal Employment Opportunity Commission
was created by the Civil Rights Act. The EEOC was
permitted to issue guidelines for acceptable em-
ployer conduct in administering equal employment
opportunity. Affirmative action is the most contro-
versial policy of the EEOC and was designed to
“right past wrongs” by increasing opportunities for
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Human Resource Planning Process
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What’s a Job Analysis?
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Recruiting Employees
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It’s Not Easy Being Small
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Employee Sources
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Selection
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Steps in the Selection Process
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Oops!
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Hiring Contingent Workers
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Why Hire Contingent Workers?
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Students and the Contingent
Workforce
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Are Unpaid Interns Too Interred?
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Progress Assessment
1. The five steps in human resource planning are (1)
preparing a human resource inventory of the organ-
ization’s employees, (2) preparing a job analysis,
(3) assessing future human resource demand, (4)
assessing future labor supply, and (5) establishing a
strategic plan.
2. Some factors that make it difficult to recruit quali-
fied employees include organizational policies that
demand promotions from within, union regulations,
and low wages.
3. The six steps in the selection process are (1) obtain-
ing complete application forms, (2) conducting ini-
tial and follow-up interviews, (3) giving employ-
ment tests, (4) conducting background investiga-
tions, (5) obtaining results from physical exams,
and (6) establishing a trial period.
4. Contingent workers include part-time workers,
temporary workers, seasonal workers, independent
contractors, interns, and co-op students. Contingent
workers are sometimes hired in an uncertain eco-
nomic climate, when full-time workers are on
leave, when there is peak demand for labor or
products, and when quick service is necessary.
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Training and Developing Employees
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Three Steps of Training and
Development
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Most Commonly Used Training and
Development Activities
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Developing Effective Managers
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Why Good Employees Quit
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Using Networks and Mentoring
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Appraising Performance on the Job
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Six Steps of Performance Appraisals
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Major Uses of Performance Appraisals
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Performance Appraisal Mistakes
1. This slide highlights some of the problems made
while reviewing employees.
2. Ask the students, How can managers avoid some of
the issues discussed in this slide?
3. To start a discussion about performance appraisals
and teams ask the students, Do you think it is fair to
have your own performance appraised based on the
work of others on your team?
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Progress Assessment
1. Off-the-job training occurs away from the work-
place and consists of internal or external programs
to develop any of a variety of skills or to foster per-
sonal development. An apprenticeship program in-
volves a student or apprentice working alongside an
experienced employee to master the skills and pro-
cedures of a craft. Vestibule training or near-the-job
training is done in a classroom with equipment sim-
ilar to that used on the job so employees learn
proper methods and safety procedures before as-
suming a specific job assignment. Job simulation is
the use of equipment that duplicates job conditions
and tasks so trainees can learn skills before attempt-
ing them on the job.
2. The primary purpose of a performance appraisal is
to determine whether workers are doing an effec-
tive and efficient job, with a minimum of errors and
disruptions.
3. The six steps in a performance appraisal are (1) es-
tablishing performance standards, (2) communi-
cating those standards, (3) evaluating performance,
(4) discussing results with employees, (5) taking
corrective action, and (6) using the results to make
decisions.
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Compensation Programs
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Types of Pay Systems
When accepting a job offer, students should consider not
just the salary but the entire compensation package.
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Compensating Teams
1. Skill-based pay is increased when teams learn and
apply new skills. Gain sharing bases team bonuses
on improvements over previous performance.
2. Nucor Steel calculates bonuses on quality—tons of
steel that go out the door with no defects. There are
no limits on bonuses a team can earn; they usually
average around $20,000 per employee each year.
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Fringe Benefits on the Job
The rising cost of health care and the cost of employer-
provided health insurance is unsustainable in the long term.
This requires both management and employees to create
systems that keep costs down, but still provide meaningful
coverage. This could include employee wellness programs
and/or higher deductibles.
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Healthcare, a Perk Not to Be Taken
Lightly
1. Many companies now ask their employees to pitch
in for health care costs.
2. This slide shows students how to cope with those
costs and find what’s best for them.
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Who Pays for Employee Benefits?
1. Entrepreneur used statistics from the Bureau of La-
bor Statistics to create this list.
2. Ask the students, Did you think more Americans
had retirement plans sponsored by their employer?
What about health care?
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The Range of Fringe Benefits
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Flexible Scheduling Plans
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Using Flextime Plans
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A Flextime Chart
Flextime gives employees some freedom and empowers
them to work when it best meets their schedule. The bene-
fits are obvious and often lead to a more motivated work-
force.
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Compressed Work Weeks
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Home-Based Work
Bank of America’s program adds up to a $100 million a
year savings and employees in the program work remotely
about 60% of the time.