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Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-1
chapter
.
Human Resource
Management: Finding and
Keeping the Best Employees
what's new in this edition 11.3
brief chapter outline and learning objectives 11.5
lecture outline and lecture notes 11.7
PowerPoint slide notes 11.59
lecture enhancers 11.84
lecture enhancer 11-1: EHARMONY GETS IN THE HIRING GAME 11.84
lecture enhancer 11-2: MAKING AN IMPRESSION WITH VIDEO RESUMES 11.85
lecture enhancer 11-3: INTERVIEW BLUNDERS 11.85
lecture enhancer 11-4: MEMORABLE JOB INTERVIEWS 11.86
lecture enhancer 11-5: THE INVASIVE DANGERS OF FACEBOOK 11.88
lecture enhancer 11-6: ENCOURAGING HEALTHY WORK-LIFE BALANCE 11.88
lecture enhancer 11-7: THE DANGERS OF FLEXTIME 11.89
lecture enhancer 11-8: THE RETIREMENT CRISIS 11.89
ecture enhancer 11-9: USING THE EXIT INTERVIEW FOR FEEDBACK 11.90
critical thinking exercises 11.92
critical thinking exercise 11-1: EXPANDING THE WORKFORCE 11.92
11
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-2
critical thinking exercise 11-2: MANAGEMENT SELECTION 11.95
critical thinking exercise 11-3: ONLINE JOB SEARCH 11.97
critical thinking exercise 11-4: DIVERSITY IN MANAGEMENT 11.98
critical thinking exercise 11-5: BEST COMPANIES FOR WORKING MOMS 11.99
bonus cases 11.100
bonus case 11-1: INCARCERATED CALL CENTERS 11.100
bonus case 11-2: HUMAN RESOURCE PLANNING AND WOMEN WORKERS 11.102
bonus case 11-3: THE DEPARTMENT STORE DILEMMA 11.104
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-3
what’s new in
this edition
additions to the 11th edition:
• Getting to Know Tony Hsieh of Zappos
• Name That Company: IBM
• Spotlight on Small Business: Competing Against the Cream of the Crop
• Connecting through Social Media: HR on the Go
• Adapting to Change: Keeping the Right Face on Facebook
• Video Case: Teach for America
revisions to the 11th edition:
• Making Ethical Decisions: Intern or Indentured Servant?
• Reaching Beyond Our Borders: Cultural Challenges without Conflict
• Statistical data and examples throughout the chapter were updated to reflect current information.
• Definition of reverse discrimination revised in section Laws Affecting Human Resource Man-
agement and in Glossary.
deletions from the 10th edition:
• Getting to Know Mark Parker
• Name That Company: Nucor Steel
• Legal Briefcase
• Spotlight on Small Business
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-4
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-5
brief chapter outline
and learning objectives
CHAPTER 11
HUMAN RESOURCE MANAGEMENT:
FINDING AND KEEPING THE BEST EMPLOYEES
Getting to Know TONY HSIEH, CEO of ZAPPOS
learning objective 1
Explain the importance of human resource management, and de-
scribe current issues in managing human resources.
I. WORKING WITH PEOPLE IS JUST THE BEGINNING
A. Developing the Ultimate Resource
B. The Human Resource Challenge
learning objective 2
Illustrate the effect of legislation on human resource management.
II. LAWS AFFECTING HUMAN RESOURCE MANAGEMENT
A. Laws Protecting Employees with Disabilities and Older Employees
B. Effects of Legislation
learning objective 3
Summarize the five steps in human resource planning.
III. DETERMINING A FIRM’S HUMAN RESOURCE NEEDS
learning objective 4
Describe methods that companies use to recruit new employees, and
explain some of the issues that make recruitment challenging.
IV. RECRUITING EMPLOYEES FROM A DIVERSE POPULATION
learning objective 5
Outline the six steps in selecting employees.
V. SELECTING EMPLOYEES WHO WILL BE PRODUCTIVE
A. Hiring Contingent Workers
learning objective 6
Illustrate employee training and development methods.
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-6
VI. TRAINING AND DEVELOPING EMPLOYEES FOR OPTIMUM
PERFORMANCE
A. Management Development
B. Networking
C. Diversity in Management Development
learning objective 7
Trace the six steps in appraising employee performance.
VII. APPRAISING EMPLOYEE PERFORMANCE TO GET OPTIMUM
RESULTS
learning objective 8
Summarize the objectives of employee compensation programs, and
evaluate various pay systems and fringe benefits.
VIII. COMPENSATING EMPLOYEES: ATTRACTING AND KEEPING
THE BEST
A. Pay Systems
B. Compensating Teams
C. Fringe Benefits
learning objective 9
Demonstrate how managers use scheduling plans to adapt to work-
ers’ needs.
IX. SCHEDULING EMPLOYEES TO MEET ORGANIZATIONAL AND
EMPLOYEE NEEDS
A. Flextime Plans
B. Home-Based Work
C. Job-Sharing Plans
learning objective 10
Describe how employees can move through a company: promotion,
reassignment, termination, and retirement.
X. MOVING EMPLOYEES UP, OVER, AND OUT
A. Promoting and Reassigning Employees
B. Terminating Employees
C. Retiring Employees
D. Losing Valued Employees
XI. SUMMARY
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-7
Getting to Know TONY HSIEH, CEO of ZAPPOS
The customer service representatives at Zappos thrive in the unusual environ-
ment thanks to the commitment of CEO Tony Hsish.
learning objective 1
Explain the importance of human resource management, and describe current is-
sues in managing human resources.
I. WORKING WITH PEOPLE IS JUST THE BEGIN-
NING.
A. HUMAN RESOURCE MANAGEMENT is the process
of determining human resource needs and then re-
cruiting, selecting, developing, motivating, evaluating,
compensating, and scheduling employees to achieve
organizational goals.
1. Historically, human resource management was
called “personnel” and managed clerical functions
and finding new employees.
2. The role of HRM has evolved because:
a. Organizations recognize employees as their
ultimate resource.
b. Changes in the law have rewritten many tradi-
This company manages its global workforce of about 100,000 employees and 100,000 subcon-
tractors with a database that matches employee skills, experiences, schedules, and references
with jobs available. For example, if a client in Quebec has a month-long project that needs a
consultant who speaks English and French, has an advanced degree in engineering and expe-
rience with Linux programming, the system can find the best-suited person available. Name
that company.
(Students should read the chapter before guessing the company’s name: IBM.)
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-8
PPT 11-1
Chapter Title
Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
CHAPTER 11
Human Resource
Management:
Finding and
Keeping the Best
Employees
PPT 11-2
Learning Objectives
LEARNING OBJECTIVES
11-2
1. Explain the importance of human resource
management, and describe current issues in
managing human resources.
2. Illustrate the effects of legislation on human resource
management.
3. Summarize the five steps in human resource
planning.
4. Describe methods that companies use to recruit new
employees, and explain some of the issues that
make recruitment challenging.
PPT 11-3
Learning Objectives
LEARNING OBJECTIVES
11-3
5. Outline the six steps in selecting employees.
6. Illustrate employee training and development
methods.
7. Trace the six steps in appraising employee
performance.
8. Summarize the objectives of employee
compensation programs, and evaluate pay systems
and fringe benefits.
PPT 11-4
Learning Objectives
LEARNING OBJECTIVES
11-4
9. Demonstrate how managers use scheduling plans
to adapt to workers’ needs.
10. Describe how employees can move through a
company: promotion, reassignment, termination,
and retirement.
PPT 11-5
Tony Hsieh
TONY HSIEH
Zappos
11-5
• Hsieh sold his first company to
Microsoft for $265 million,
before becoming Zappos’ CEO.
• Changed Zappos’ corporate
work environment so reps wow
customers.
• The work environment is kept
open and accessible.
PPT 11-6
Name That Company
NAME that COMPANY
11-6
This company manages its global workforce of
about 100,000 employees and 100,000
subcontractors with a database that matches
employee skills, experiences, schedules, and
references with jobs available.
Name that company!
(See complete PowerPoint slide notes on page 11.59.)
PPT 11-7
Human Resource Management
(HRM)
HUMAN RESOURCE
MANAGEMENT
11-7
LO 11-1
• Human Resource Management (HRM) -- The
process of determining human resource needs and
then recruiting, selecting, developing, motivating,
evaluating, compensating and scheduling employees
to achieve organizational goals.
• HRM’s role has grown because of:
1. Increased recognition of employees as a
resource.
2. Changes in law that rewrote old workplace
practices.
PPT 11-8
Human Resource Management
TEXT FIGURE 11.1
Human Resource Management
HUMAN RESOURCE MANAGEMENT
11-8
LO 11-1
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-9
tional practices.
B. DEVELOPING THE ULTIMATE RESOURCE
1. The U.S. economy has undergone a major shift
from traditional manufacturing industries to ser-
vice industries that require more HIGHLY
TECHNICAL JOB SKILLS.
2. Many workers must be retrained for new, more
challenging jobs.
3. EMPLOYEES ARE THE ULTIMATE RE-
SOURCE.
a. In the past, the human resource was plenti-
ful, so there was little need to nurture and
develop it.
b. Qualified labor is scarcer today, and that
makes recruiting more difficult.
4. For years, most firms assigned the job of recruit-
ing, selecting, training, evaluating, compensat-
ing, motivating, and firing people to FUNC-
TIONAL DEPARTMENTS.
5. HUMAN RESOURCE MANAGEMENT may be
the most critical function in the future because it
is responsible for the business’s most critical re-
source—people.
a. The role of the human resource manage-
ment is a FUNCTION OF ALL MANAGERS,
not just one department.
b. Most human resource functions are
SHARED between the human resource
manager and other managers.
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-10
PPT 11-9
Uncovering the Secrets of HRM
UNCOVERING the
SECRETS of HRM
Things Your HR Manager Doesn’t Tell You
11-9
Source: Smart Money, www.smartmoney.com, accessed November 2014.
LO 11-1
• We’re short-staffed and under pressure too.
• We’re not always going to be able to help in the
way you hope.
• We can help you move up the career ladder.
• What you post on Facebook can get you fired.
PPT 11-10
Developing the Firm’s Ultimate
Resource
DEVELOPING the FIRM’S
ULTIMATE RESOURCE
• Service and high-tech manufacturing requires
employees with highly technical job skills.
11-10
LO 11-1
• Such workers are scarce,
making recruiting and
retention more important
and more difficult.
• The human resource job is
now the job of all managers
in an organization.
lecture enhancer 11-1
EHARMONY GETS IN THE HIRING
GAME
You trust them to get you dates. Should you trust them to re-
cruit your employees too? (See the complete lecture enhancer
on page 11.84 of this manual.)
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-11
C. THE HUMAN RESOURCE CHALLENGE
1. The ability of the U.S. business system to com-
pete globally depends on people with good ide-
as.
2. Some of the CHALLENGES and OPPORTUNI-
TIES include:
a. Shortages of people trained to work in high-
tech areas
b. Large numbers of skilled and unskilled
workers from declining industries who are
unemployed or underemployed
c. A growing percentage of new workers who
are undereducated and unprepared for jobs
d. A shortage of workers in skilled trades due
to retirement of aging baby boomers
e. An increasing number of baby boomers de-
laying retirement or moving to lower-level
jobs
f. An increasing number of single-parent and
two-income families
g. A shift in employee attitudes toward work
h. A declining economy taking a toll on em-
ployee morale
i. More competition from low-wage overseas
labor pools
j. Increased demand for benefits tailored to the
individual
k. Growing concern over health issues, elder
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-12
bonus case 11-1
INCARCERATED CALL CENTERS
One entrepreneur found a way to transform prisoners into
productive members of society both inside and upon release.
(See the complete case on page 11.100 of this manual.)
PPT 11-11
Challenges in Finding High-Level
Workers
CHALLENGES in FINDING
HIGH-LEVEL WORKERS
11-11
LO 11-1
• A shortage of trained workers in key areas
• Worker shortage in skilled trades
• An increasing number of baby boomers who
delay retirement
• A declining economy with fewer full-time jobs
• Expanding global markets with low-wage
workers
• Increasing benefit demands and benefit costs
• A decreased sense of employee loyalty
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-13
care, child care, equal opportunities for peo-
ple with disabilities, and affirmative action
l. Changes through the Affordable Care Act
m. A decreased sense of employee loyalty
3. Significant changes in laws covering HRM have
had a major influence.
learning objective 2
Illustrate the effects of legislation on human resource management.
II. LAWS AFFECTING HUMAN RESOURCE MAN-
AGEMENT
A. Legislation has made hiring, promoting, firing, and
managing employee relations complex and subject
to legal complications.
1. Since the 1930s LEGISLATION AND LEGAL
DECISIONS have greatly affected human re-
source management.
2. One of the most important laws ever passed by
Congress was the CIVIL RIGHTS ACT OF 1964.
a. TITLE VII prohibits discrimination in hiring,
firing, compensation, apprenticeships, train-
ing, terms, conditions, or privileges of em-
ployment based on race, religion, creed,
sex, or national origin (age was added later).
b. Specific language in the law often made its
enforcement difficult.
3. The EQUAL EMPLOYMENT OPPORTUNITY
ACT (EEOA) was added as an amendment to
Title VII in 1972.
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-14
TEXT FIGURE 11.2
Government Legislation Affecting
Human Resource Management
PPT 11-12
Civil Rights Act of 1964
CIVIL RIGHTS ACT of 1964
11-12
LO 11-2
• Title VII prohibits discrimination in hiring, firing,
compensation, apprenticeships, training, terms,
conditions or privileges of employment based on:
- Race
- Religion
- Creed
- Sex
- Age
- National Origin
PPT 11-13
1972 Equal Employment
Opportunity Act (EEOA)
1972 EQUAL EMPLOYMENT
OPPORTUNITY ACT (EEOA)
11-13
LO 11-2
• Strengthened the Equal Employment Opportunity
Commission (EEOC).
• Gave EEOC the right to issue workplace
guidelines for acceptable employer conduct.
• EEOC could mandate specific recordkeeping
procedures.
• EEOC was vested with the power of enforcement.
Chapter 11 - Human Resource Management: Finding and Keeping the Best Employees
11-15
a. It strengthened the EQUAL EMPLOYMENT
OPPORTUNITY COMMISSION (EEOC),
which issues guidelines for administering
equal employment opportunity.
b. Congress gave the EEOC broad powers to
regulate equal employment opportunity.
4. AFFIRMATIVE ACTION PROGRAMS are con-
troversial.
a. AFFIRMATIVE ACTION refers to employ-
ment activities designed to “right past
wrongs” by increasing opportunities for mi-
norities and women.
b. Interpretation of the law was often contro-
versial and enforcement was difficult.
c. One result has been the perceived RE-
VERSE DISCRIMINATION, or discrimination
against dominant or majority group members
in hiring or promoting.
d. Companies have been charged with reverse
discrimination when they have been PER-
CEIVED as UNFAIRLY GIVING PREFER-
ENCE in hiring or promoting.
5. The CIVIL RIGHTS ACT OF 1991 expanded the
remedies available to victims of discrimination
by amending Title VII of the CRA of 1964.
6. The OFFICE OF FEDERAL CONTRACT COM-
PLIANCE PROGRAMS (OFCCP) ensures com-
pliance in firms doing business with the federal
government.
