Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-61
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
HUMAN RESOURCE MANAGEMENT
11-8
LO 11-1
Human resource management is more than hiring employees.
It involves a multitude of tasks and responsibilities. This slide
gives some insight into the various roles the HRM depart-
ment has now assumed. Business leaders in many companies
now understand the effect management of human capital can
have in creating a competitive advantage in the marketplace.
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.
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 decline in employ-
ment, 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 help you move
up.
4. Click the link on the slide and surf through various Fa-
cebook posts that have gotten people fired. This will
help promote class discussion.
5. Ask students: Do you think the terminations described
in the stories link on the slide were justified?
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-62
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.
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
Demographic changes are creating a challenging environment
for HR managers, requiring companies to come up with crea-
tive ways to attract, develop and retain employees.
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
The Civil Rights Act of 1964 was a significant piece of legis-
lation and directly brought the federal government into hu-
man resource management.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-63
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.
PPT 11-14
Controversial Procedures of the EEOC
CONTROVERSIAL PROCEDURES
of the EEOC
11-14
LO 11-2
• Affirmative Action — Policy designed to
“
right past
wrongs
”
by increasing opportunities for minorities and
women.
• Reverse Discrimination — Discriminating against
members of a dominant or majority group (e.g. whites
or males) usually as a result of policies designed to
correct previous discrimination against minority or
disadvantaged groups.
• This policy has been at the center of many
debates and lawsuits.
Ask the students: Did affirmative action create reverse dis-
crimination against whites and males by unfairly giving pref-
erence to females and minorities?
PPT 11-15
Civil Rights Act of 1991 and OFCCP
CIVIL RIGHTS ACT of 1991
and OFCCP
11-15
LO 11-2
• Civil Rights Act of 1991
– Amended Title VII and gave victims of
discrimination the right to a jury trial and possible
damages.
• Office of Federal Contract Compliance Programs
(OFCCP)
– Ensures that employers doing business with the
federal government comply with the
nondiscrimination and affirmative action laws.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-64
PPT 11-16
Laws Protecting Employees with
Disabilities
LAWS PROTECTING
EMPLOYEES with DISABILITIES
• Americans with Disabilities Act of 1990 (ADA)
– Requires employers to give applicants with physical or
mental disabilities the same consideration for employment as
people without disabilities.
11-16
LO 11-2
– Passage in 2008 of Americans with
Disabilities Amendments Act
expanded protection.
– 2011 saw regulations that widen the
range of disabilities covered by the
ADA and shift the burden of proof of
disability from employees to
employers.
PPT 11-17
Age Discrimination in Employment Act
(ADEA)
AGE DISCRIMINATION in
EMPLOYMENT ACT (ADEA)
• Age Discrimination in Employment Act (ADEA)
11-17
LO 11-2
– Protects workers 40 and
over from employment
and workplace
discrimination in hiring,
firing, promotion, layoff,
compensation, benefits,
job assignments and
training.
PPT 11-18
Minding the Law in HRM
MINDING the LAW in HRM
11-18
LO 11-2
• Employers must know the law
and act accordingly.
• Legislation affects all areas of
HRM.
• Court cases highlight that
sometimes it’s proper to go
beyond providing equal rights.
• Changes in law and legislation
occur regularly.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-65
PPT 11-19
Test Prep
TEST PREP
11-19
• What’s human resource management?
• What did Title VII of the Civil Rights Act of 1964
achieve?
• What’s the EEOC and what was the intention of
affirmative action?
• What does accommodations mean in the
Americans with Disabilities Act of 1990?
1. Human resource management is the process of determining
the needs of the organization and then recruiting, selecting,
developing, motivating, evaluating, compensating, and
scheduling employees to achieve organizational goals.
2. Title VII prohibits discrimination in hiring, firing, compen-
sating, apprenticeships, training, terms, conditions, or priv-
ileges 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 cre-
ated by the Civil Rights Act. The EEOC was permitted to
issue guidelines for acceptable employer conduct in admin-
istering equal employment opportunity. Affirmative action
is the most controversial policy of the EEOC and was de-
signed to “right past wrongs” by increasing opportunities
for minorities and women.
4. Employers are required to make “reasonable accommoda-
tions” for employees with disabilities, such as modifying
equipment or widening doorways.
PPT 11-20
Human Resource Planning Process
HUMAN RESOURCE PLANNING
PROCESS
11-20
LO 11-3
1) Preparing a human resource
inventory of employees.
2) Preparing a job analysis.
3) Assessing future human
resource demand.
4) Assessing future labor
supply.
5) Establishing a strategic plan.
PPT 11-21
What’s a Job Analysis?
WHAT’S a JOB ANALYSIS?
11-21
LO 11-3
• Job Analysis – A study of what employees do who
hold various job titles.
• Job Description – A summary of the objectives of
the job, the type of work, the responsibilities and
duties, working conditions and relationship to other
jobs.
• Job Specifications — A summary of the minimum
qualifications needed to do a particular job.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-66
PPT 11-22
Recruiting Employees
RECRUITING EMPLOYEES
11-22
LO 11-4
• Recruitment — The set of activities for obtaining the
right number of qualified people at the right time.
• Human resource managers use both internal and
external sources to recruit employees.
• Small businesses often make use of web
sources like CareerBuilder and Monster to
recruit employees.
PPT 11-23
Competing for the Cream of the Crop
COMPETING for the
CREAM of the CROP
11-23
• To survive, small businesses must recruit and
retain qualified workers.
• Unfortunately, they lack the resources of larger
companies to compete for employees.
• Small businesses need innovations like:
– Letting staff help recruit and select candidates.
– Audition an employee.
– Seek out publicity.
PPT 11-24
Employee Sources
EMPLOYEE SOURCES
11-24
LO 11-4
Job candidates can come from internal and external sources.
In order to attract qualified employees from external sources,
many employers offer referral bonuses to employees who
refer a new employee to the company.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-67
PPT 11-25
Selection
SELECTION
11-25
LO 11-5
• Selection — The process of
gathering information and
deciding who should be hired,
under legal guidelines, to
serve the best interest of the
individual and the
organization.
PPT 11-26
Steps in the Selection Process
STEPS in the
SELECTION PROCESS
11-26
LO 11-5
1. Obtaining complete application forms
2. Conducting initial and follow-up interviews
3. Giving employment tests
4. Conducting background investigations
5. Obtaining results from physical exams
6. Establishing trial (probationary) work periods
PPT 11-27
Oops!
OOPS!
Areas Where Job Applicants Make Mistakes
Source: USA Today. 11-27
LO 11-5
1. This slide presents the job application areas where
the applicants make the most mistakes.
2. The results are based on the survey of over 1,400
CFOs of U.S. companies with 20 or more employees.
3. The top two areas where applicants make the most
mistakes are interviews and resumes.
4. Ask the students: What are your experiences with in-
terviews or resume errors? How many of you follow
up after an interview?
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-68
PPT 11-28
Keeping the Right Face on Facebook
KEEPING the RIGHT FACE
on FACEBOOK
11-28
• Your online personality be appealing to
employers.
• Some of the worst things to do are:
– Posting provocative or inappropriate photos.
– Information on drug use or excessive drinking.
– Bad mouthing a previous employer.
– Discriminatory comments related to race, gender,
religion, etc.
PPT 11-29
Hiring Contingent Workers
HIRING CONTINGENT WORKERS
• Contingent Workers — Include part-time and
temporary workers, seasonal workers, independent
contractors, interns and co-op students.
11-29
LO 11-5
• There are about 5.7
million contingent
workers in the U.S.
• Majority of contingent
workers are under 25.
PPT 11-30
Why Hire Contingent Workers?
WHY HIRE
CONTINGENT WORKERS?
11-30
LO 11-5
• Companies hire contingent workers:
– When full-time workers are on leave.
– During periods of peak demand.
– In uncertain economic times.
– To save on employee benefits.
– To screen candidates for future employment.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-69
PPT 11-31
Students and the Contingent Work-
force
STUDENTS and the
CONTINGENT WORKFORCE
11-31
• When students come back
to town, they can call the
agency and ask them to
put their names into the
system for work.
LO 11-5
• With temporary staffing agencies, companies
have easier access to screened workers.
• Worker information is entered into their
databases.
PPT 11-32
Intern or Indentured Servant?
INTERN or
INDENTURED SERVANT?
11-32
• With few entry-level positions available, interns
can end up in an unpaid position for as long as
six months with no chance of advancement.
• Some businesses give interns lots of
responsibility; a Toronto paper fired all paid staff
and replaced them with unpaid interns.
• Is it ethical for companies to use unpaid interns if
they know they don’t have jobs to offer or if the
unpaid internships replace paid jobs?
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-70
PPT 11-33
Test Prep
TEST PREP
11-33
• What are the five steps in human resource
planning?
• What factors make it difficult to recruit qualified
employees?
• What are the six steps in the selection process?
• Who is considered a contingent worker, and why
do company hire such workers?
1. The five steps in human resource planning are (1) pre-
paring a human resource inventory of the organization’s
employees, (2) preparing a job analysis, (3) assessing
future human resource demand, (4) assessing future la-
bor supply, and (5) establishing a strategic plan.
2. Some factors that make it difficult to recruit qualified
employees include organizational policies that demand
promotions from within, union regulations, and low
wages.
3. The six steps in the selection process are (1) obtaining
complete application forms, (2) conducting initial and
follow-up interviews, (3) giving employment tests, (4)
conducting background investigations, (5) obtaining re-
sults from physical exams, and (6) establishing a trial
period.
4. Contingent workers include part-time workers, tempo-
rary workers, seasonal workers, independent contrac-
tors, interns, and co-op students. Contingent workers
are sometimes hired in an uncertain economic climate,
when full-time workers are on leave, when there is peak
demand for labor or products, and when quick service is
necessary.
5.
PPT 11-34
Training and Developing Employees
TRAINING and DEVELOPING
EMPLOYEES
11-34
LO 11-6
• Training and Development —
All attempts to improve
productivity by increasing an
employee
’
s ability to perform.
• Training focuses on short-term
skills.
• Development focuses on long-
term abilities.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-71
PPT 11-35
Three Steps of Training and
Development
THREE STEPS of TRAINING
and DEVELOPMENT
11-35
LO 11-6
1. Assessing organization needs and employee
skills to develop appropriate training needs.
2. Designing training activities to meet identified
needs.
3. Evaluating the training’s effectiveness.
PPT 11-36
Most Commonly Used Training and
Development Activities
MOST COMMONLY USED TRAINING
and DEVELOPMENT ACTIVITIES
11-36
LO 11-6
• Orientation
• On-the-Job Training
• Apprenticeships
• Off-the-Job Training
• Online Training
• Vestibule Training
• Job Simulation
An example of orientation: At Zappos every new employee in
the online retailer’s Henderson, Nevada headquarters must
spend two weeks answering customer calls, two weeks learn-
ing in a classroom, and a week shipping boxes in the compa-
ny’s Kentucky fulfillment center.
PPT 11-37
Developing Effective Managers
DEVELOPING EFFECTIVE
MANAGERS
11-37
LO 11-6
• Management Development — The process of
training and educating employees to become good
managers and monitoring the progress of their skills
over time.
• Management training includes:
– On-the-job coaching
– Understudy positions
– Job rotation
– Off-the-job courses and training
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-72
PPT 11-38
Why Good Employees Quit
WHY GOOD EMPLOYEES QUIT
Source: Robert Half International 11-38
LO 11-6
1. This slide presents some of the reasons why good
employees quit.
2. Ask the students: Why is it important for managers to
understand why employees leave a company? (It
translates directly into the bottom line of the organi-
zation. The higher the turnover, the higher the costs
for recruiting, selecting, training and development,
etc.)
3. Ask the students: What are other reasons why em-
ployee retention is important? (Some other reasons
may be morale of the workers, ability to recruit, rep-
utation and image of the company, etc.)
4. Ask the students: Would you like to work at a place
that feels like it has a revolving door?
PPT 11-39
Using Networks and Mentoring
USING NETWORKS and
MENTORING
11-39
LO 11-6
• Networking — Establishing and maintaining contacts
with key managers in and out of the organization and
using those contacts to develop relationships.
• Mentors — Managers who supervise, coach and
guide selected lower-level employees by acting as
corporate sponsors.
• Networking and mentoring go beyond the work
environment.
1. Many students are familiar with social networking,
but are unfamiliar with career networking.
2. Ask the students: How can you use sites like Face-
book, YouTube, and Twitter to establish and main-
tain contacts with key managers in and out of the or-
ganization
PPT 11-40
Appraising Performance on the Job
APPRAISING PERFORMANCE
on the JOB
• Performance Appraisal — An evaluation that
measures employee performance against established
standards in order to make decisions about
promotions, compensation, training or termination.
11-40
LO 11-7
• A 360-degree review
gives managers
opinions from people at
different levels to get a
more accurate idea of
the worker’s ability.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-73
PPT 11-41
Six Steps of Performance Appraisals
SIX STEPS of PERFORMANCE
APPRAISALS
11-41
LO 11-7
1. Establishing performance standards that are
understandable, measurable and reasonable.
2. Clearly communicating those standards.
3. Evaluating performance against the standards.
4. Discussing the results with employees.
5. Taking corrective action.
6. Using the results to make decisions.
PPT 11-42
Do’s and Don’ts of Performance Ap-
praisals
DOs and DON’Ts of
PERFORMANCE APPRAISALS
11-42
LO 11-7
PPT 11-43
Major Uses of Performance Appraisals
MAJOR USES of
PERFORMANCE APPRAISALS
11-43
LO 11-7
• Identify training needs
• Use as a promotion tool
• Recognize worker’s achievements
• Evaluate the firm’s hiring process
• Judge the effectiveness of the firm’s orientation
process
• Use as a basis for possible termination of a
worker
1. This slide gives students insight as to the importance
of regular performance appraisals.
2. To start a discussion on performance appraisals, ask
students to discuss the 360-degree review.
3. After the discussion use the next slide to walk stu-
dents through some of the problems associated with
performance appraisals.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-74
PPT 11-44
Performance Appraisal Mistakes
PERFORMANCE APPRAISAL
MISTAKES
Common Problems Made While Reviewing Employees
11-44
LO 11-7
• Contrast Effect – Comparing one employee to
another.
• Halo/Horn Effect – Allowing performances in specific
areas to unfairly influence overall performance
evaluation.
• Similar-to-Me Effect – Generosity to those you feel
are more like you.
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 students: Do you think it is fair to have
your own performance appraised based on the work
of others on your team?
PPT 11-45
Test Prep
TEST PREP
11-45
• Name and describe four training techniques.
• What’s the primary purpose of a performance
appraisal?
• What are the six steps in a performance
appraisal?
1. Off-the-job training occurs away from the workplace and
consists of internal or external programs to develop any of a
variety of skills or to foster personal development. An ap-
prenticeship program involves a student or apprentice work-
ing alongside an experienced employee to master the skills
and procedures of a craft. Vestibule training or near-the-job
training is done in a classroom with equipment similar to that
used on the job so employees learn proper methods and safe-
ty procedures before assuming a specific job assignment. Job
simulation is the use of equipment that duplicates job condi-
tions and tasks so trainees can learn skills before attempting
them on the job.
2. The primary purpose of a performance appraisal is to
determine whether workers are doing an effective and effi-
cient job, with a minimum of errors and disruptions.
3. The six steps in a performance appraisal are: (1) estab-
lishing performance standards, (2) communicating those
standards, (3) evaluating performance, (4) discussing results
with employees, (5) taking corrective action, and (6) using
the results to make decisions.
PPT 11-46
Compensation Programs
COMPENSATION PROGRAMS
11-46
LO 11-8
• A managed and competitive compensation
program helps:
– Attract the kinds of employees the business needs.
– Build employee incentive to work efficiently and
productively.
– Keep valued employees from going to competitors or
starting their own firm.
– Maintain a competitive market position by keeping costs
low due to high productivity from a satisfied workforce.
– Provide employee financial security through wages and
fringe benefits.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-75
PPT 11-47
Types of Pay Systems
TYPES of PAY SYSTEMS
11-47
LO 11-8
Students should be aware when accepting a job offer to con-
sider not just the salary but the entire compensation package.
PPT 11-48
Types of Pay Systems
TYPES of PAY SYSTEMS
11-48
LO 11-8
Students should be aware when accepting a job offer to con-
sider not just the salary but the entire compensation package.
PPT 11-49
Types of Pay Systems
TYPES of PAY SYSTEMS
11-49
LO 11-8
Students should be aware when accepting a job offer to con-
sider not just the salary but the entire compensation package.