Management Chapter 10 Ppt Specific Job Including Job Title Tasks Performed Relationships With Other Jobs

Ferrell / Hirt / Ferrell:

Business

Instructor’s Manual – Chapter 10

Chapter 10: Managing Human Resources

Use this Instructor’s Manual to facilitate class discussion and incorporate the unique features of the text’s

highlights. Follow-up via the Connect exercises is then encouraged to provide a holistic understanding of the

chapter.

C H A P T E R F O R E C A S T

This chapter focuses on the quantity and quality of human resources. First we look at how human resources

managers plan for, recruit, and select qualified employees. Next we look at training, appraising, and

compensating employees, aspects of human resources management designed to retain valued employees.

Along the way, we’ll also consider the challenges of managing unionized employees and workplace diversity.

L E A R N I N G O B J E C T I V E S

LO 10-2 Summarize the processes of recruiting and selecting human resources for a company.

LO 10-4 Identify the types of turnover companies may experience, and explain why turnover is an

important issue.

LO 10-6 Discuss some of the issues associated with unionized employees, including collective bargaining

and dispute resolution.

LO 10-8 Assess an organization’s efforts to reduce its workforce size and manage the resulting effects.

L E A R N T H E T E R M S

affirmative action programs (

p. 312)

arbitration (p. 309)

benefits (p. 303)

job analysis (p. 289)

job description (p. 289)

job specification (p. 289)

labor contract (p. 307)

salary (p. 302)

selection (p. 291)

separations (p. 299)

strikebreakers (p. 309)

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Instructor’s Manual – Chapter 10

K E Y T E R M S A N D D E F I N I T I O N S

affirmative action

programs

Legally mandated plans that try to increase job opportunities for

minority groups by analyzing the current pool of workers, identifying

areas where women and minorities are underrepresented, and

establishing specific hiring and promotion goals, with target dates, for

addressing the discrepancy.

arbitration

Settlement of a labor/management dispute by a third party whose

solution is legally binding and enforceable.

benefits

Nonfinancial forms of compensation provided to employees, such as

pension plans, health insurance, paid vacation and holidays, and the like.

bonuses

Monetary rewards offered by companies for exceptional performance as

incentives to further increase productivity.

boycott

An attempt to keep people from purchasing the products of a company.

collective bargaining

The negotiation process through which management and unions reach

an agreement about compensation, working hours, and working

conditions for the bargaining unit.

commission

An incentive system that pays a fixed amount or a percentage of the

employee’s sales.

conciliation

A method of outside resolution of labor and management differences in

which a third party is brought in to keep the two sides talking.

development

Training that augments the skills and knowledge of managers and

professionals.

diversity

The participation of different ages, genders, races, ethnicities,

nationalities, and abilities in the workplace.

human resources

management (HRM)

All the activities involved in determining an organization’s human

resources needs, as well as acquiring, training, and compensating people

to fill those needs.

job analysis

The determination, through observation and study, of pertinent

information about a job—including specific tasks and necessary abilities,

knowledge, and skills.

Ferrell / Hirt / Ferrell:

Business

Instructor’s Manual – Chapter 10

job description

A formal, written explanation of a specific job, usually including job title,

tasks, relationships with other jobs, physical and mental skills required,

duties, responsibilities, and working conditions.

job specification

A description of the qualifications necessary for a specific job, in terms of

education, experience, and personal and physical characteristics.

labor contract

The formal, written document that spells out the relationship between

the union and management for a specified period of time—usually two

or three years.

labor unions

Employee organizations formed to deal with employers for achieving

better pay, hours, and working conditions.

lockout

Management’s version of a strike, wherein a work site is closed so that

employees cannot go to work.

mediation

A method of outside resolution of labor and management differences in

which the third party’s role is to suggest or propose a solution to the

problem.

orientation

Familiarizing newly hired employees with fellow workers, company

procedures, and the physical properties of the company.

picketing

A public protest against management practices that involves union

members marching and carrying antimanagement signs at the

employer’s plant or work site.

profit sharing

A form of compensation whereby a percentage of company profits is

distributed to employees whose work helped to generate them.

promotion

An advancement to a higher level job with increased authority,

responsibility, and pay.

recruiting

Forming a pool of qualified applicants from which management can

select employees.

salary

A financial reward calculated on a weekly, monthly, or annual basis.

selection

The process of collecting information about applicants and using that

information to make hiring decisions.

separations

Employment changes involving resignation, retirement, termination, or

layoff.

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Business

Instructor’s Manual – Chapter 10

strikebreakers

People hired by management to replace striking employees; called

“scabs” by striking union members.

strikes

Employee walkouts; one of the most effective weapons of labor unions.

Title VII of the Civil

Rights Act

Prohibits discrimination in employment and created the Equal

Employment Opportunity Commission.

training

Teaching employees to do specific job tasks through either classroom

development or on-the-job experience.

transfer

A move to another job within a company at essentially the same level

and wage.

turnover

Occurs when employees quit or are fired and must be replaced by new

employees.

wage/salary survey

A study that tells a company how much compensation comparable firms

are paying for specific jobs that the firms have in common.

wages

Financial rewards based on the number of hours the employee works or

the level of output achieved.

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Instructor’s Manual – Chapter 10

PPT 10.6

PPT 10.7

B. Current and forecasted employee requirements then enable the manager

to determine hiring and qualification requirements.

C. Next, a strategy for satisfying human resources needs is developed, which

may include outsourcing, automation or the use of temporary workers.

D. Job analysis determines, through observation and study, the specific

tasks that comprise a job; the skills, knowledge, and abilities needed to

1. To develop a job description—a formal, written description of a

specific job, including job title, tasks to be performed, relationships

with other jobs, physical and mental skills required, duties,

responsibilities, and working conditions.

2. To develop a job specification—a description of the qualifications

necessary for a specific job in terms of education, experience,

recruiting materials.

LO 10-2

Summarize the processes of recruiting and selecting human

resources for a company.

• Recruiting and Selecting New Employees

• Recruiting

• Legal Issues in Recruiting and Selecting

Key Terms:

• Recruiting

• Selection

• Title VII of the Civil

PPT 10.8

PPT 10.9

III. Recruiting and Selecting New Employees

A. Recruiting is the formation of a pool of qualified applicants from which

management will select employees.

1. There are two sources for applicants.

a. Internal sources of applicants are the organization’s current

b. External sources are outside the firm.

1) External sources consist of newspaper and journal ads,

2) Internships are also a good way to solicit for employees.

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Instructor’s Manual – Chapter 10

PPT 10.11

PPT 10.12

PPT 10.13–10.14

4) Recruiting for entry-level managerial and professional

using that information to decide which ones to hire.

1. The application is the first stage of the process.

availability, and level of interest. A brief interview is sometimes

included.

b. The goal at this stage is to get acquainted with the applicants

and eliminate those obviously not qualified for the job.

c. The process can be lengthy and expensive but necessary in order

to find applicants who can do the work and fit into the firm’s

structure and culture.

d. Careful hiring saves the company money it would spend later in

history but they also reveal clues about the applicants.

Imaginative responses may reveal creativity and hastily written

responses could mean a person who does not pay attention to

details.

2. The interview is the second phase of the selection process. The

the questions help managers obtain that detailed picture of the

applicant they are looking for. (Table 10.2)

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Instructor’s Manual – Chapter 10

PPT 10.15

PPT 10.16

PPT 10.18

3. Testing is the third stage of the selection process.

a. Ability, performance, aptitude, IQ, or personality tests may be

given to determine whether an applicant has the necessary skills

for a certain kind of work and his/her ability to fit into the firm’s

culture.

1) Myers-Brigg is used to assess an applicant’s potential for a

certain kind of job.

2) Interestingly, there does not seem to be any difference

specific government jobs and jobs involving security or access to

drugs.

c. Applicants may also undergo physical examinations to determine

their suitability for some jobs.

d. Many companies require applicants to be screened for illegal

drug use, but this practice is controversial.

e. Because computer knowledge is so essential for many of today’s

current jobs, companies may also test an applicant’s typing skills

or other public activities.

b. Many organizations will confirm employment but will not

release details about the quality of a previous employee’s work.

C. Legal Issues in Recruiting and Selecting

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Instructor’s Manual – Chapter 10

PPT 10.19

PPT 10.20

PPT 10.22

2. Title VII of the Civil Rights Act of 1964 bans discrimination in

employment.

a. The Equal Employment Opportunity Commission (EEOC) is the

federal agency set up to enforce Title VII of the Civil Rights Act of

1964 and is specifically charged with increasing job opportunities

job descriptions, and newspaper ads.

c. The Civil Rights Act of 1964 also outlaws the use of

discriminatory tests for applicants.

3. The Americans with Disabilities Act (ADA) prevents discrimination

against disabled persons.

4. The Age Discrimination in Employment Act, passed in 1967 and

amended in 1978, specifically outlaws discrimination against people

40 and older and also outlaws policies that require employees to

retire beforehand.

5. The Equal Pay Act mandates that men and women who do equal

work must receive the same wage.

IV. Developing the Workforce

2. It also involves socializing the new employee into the ethics and

culture of the company.

LO 10-3

Discuss how workers are trained and their performance

• Developing the Workforce

• Assessing Performance

Key Terms:

• Training

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Instructor’s Manual – Chapter 10

PPT 10.23

PPT 10.24

B. Training and Development

1. Training is teaching employees how to do their specific job tasks.

a. On-the-job-training allows workers to learn by actually

performing the tasks of the job.

b. Classroom training teaches employees with lectures,

conferences, videotapes, case studies, and web-based training.

1) One example is McDonald’s Hamburger University.

McDonald’s has expanded its famous Hamburger University

into China to train Chinese students in such areas as

restaurant management, leadership development and other

skills.

2) Some are engaging in virtual training and recruitment using

technology such as the virtual world Second Life. Amazon,

3. Training and development are also used to improve the skills of

employees in their present positions and to prepare them for

C. Assessing Performance

1. A performance appraisal identifies an employee’s strengths and

weaknesses on the job.

2. It has three main objectives:

what they need to do to improve their performance.

b. It provides a basis for determining how to compensate and

reward.

c. It provides the organization with information about the quality

of its selection, training, and development activities.

3. Performance appraisals may be objective or subjective.

1) Productivity and quality are two important performance

measurements, but many appraisals also include teamwork

as well as financial management.

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Instructor’s Manual – Chapter 10

4. Another performance appraisal method used is the 360-degree

feedback system, which provides feedback from a panel that

typically includes superiors, peers, and subordinates.

5. Whether the appraisal is objective or subjective, it is vital that the

manager discuss the results with the employee, so that the

employee knows how well he or she is doing on the job. (Figure

10.3)

LO 10-4

Identify the types of turnover companies may experience, and

explain why turnover is an important issue.

o Turnover

Key Terms:

• Turnover

• Promotion

• Transfer

• Separations

PPT 10.27

D. Turnover, which occurs when employees quit or are fired and must be

replaced by new employees, results in lost productivity, fees to recruit

new employees, management time devoted to interviewing, and costs

for new employees.

1. Part of the reason for turnover may be mismatched skill sets,

overworked employees as a result of downsizing, and a lack of

training and advancement opportunities.

a. A promotion is an advancement, or vertical movement, within

an organization to a position with increased authority,

or service determines who should be promoted.

b. A transfer is a move from one job to another within a company.

The transferred employee remains at the same wage and job

level.

c. A separation is the departure of the employee from the

2) Recent legislation and court decisions require that

companies fire employees fairly, for just cause only.

Managers should therefore exercise care to warn employees

when their performance is unacceptable and may lead to

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Instructor’s Manual – Chapter 10

PPT 10.28

3) Usually a function of economic trouble, layoffs are

sometimes temporary; employees may be brought back

when business conditions improve.

4) When layoffs are permanent, sometimes companies will

help employees find other jobs or extend benefits while the

employees search for new employment.

d. Because of the expense of recruiting and training new

employees, well-organized human resources departments try to

minimize losses caused by separations and transfers.

LO 10-5

Specify the various ways a worker may be compensated.

• Compensating the Workforce

o Financial Compensation

o Benefits

Key Terms:

• Wage/salary survey

• Wages

• Commission

• Salary

• Bonuses

• Profit sharing

• Benefits

PPT 10.30

V. Compensating the Work Force

A. Designing fair financial compensation plans for employees is important

because wages and salaries are a substantial portion of an organization’s

expenses.

1. Wages that are too high may result in high-priced products, while

wages that are too low may harm morale and result in costly

turnover.

2. Designing a fair financial compensation plan is a difficult task.

3. A wage/salary survey tells a company how much compensation

comparable firms are paying for specific jobs that the firms have in

common.

1. Wages are financial rewards based on the number of hours the

employee works or the level of output produced.

productivity.

b. Minimum wage is a federally mandated minimum amount per

hour.

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Instructor’s Manual – Chapter 10

PPT 10.32

d. Piece wages are based on the level of output. A major advantage

of piece wages is that employees are encouraged to supervise

their own activities and to increase output.

2. Commissions are payments to an employee for a fixed amount or a

percentage of the employee’s sales. This method motivates

employees to sell as much as they can.

3. A salary is a financial reward calculated on a weekly, monthly, or

and professionals.

4. Other forms of financial compensation:

as rewards for exceptional performance.

b. Profit sharing is a distribution of a percentage of company

profits.

1) Employee stock ownership plans (ESOPs) have gained in

popularity in recent years.

employees, such as pension plans, health insurance, life insurance,

sick-leave, holidays, credit union membership, health programs, and

a. Employer costs for compensation in the U.S. average $27.42 per

hour worked. Wages and salaries account for 70.8%, while

benefits account for 29.2%.

b. Legally required benefits (Social Security, Medicare, federal and

state employment insurance and workers’ compensation)

account for 7.7% of total compensation.

so forth).

b. EAPs help reduce costs associated with poor productivity,

absenteeism, and other workplace issues by helping employees

deal with personal problems that contribute to these issues.

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Instructor’s Manual – Chapter 10

PPT 10.36

4. Companies try to provide the benefits they believe their employees

want, but diverse people may want different things. Some companies

use fringe benefit programs to allow employees to choose the

benefits they would like, up to a specified amount.

a. Traditional fringe benefits include sick leave, pension plans,

health plans, bonuses.

b. Soft benefits (to help achieve a work/life balance) include on-site

child care, spas, food service, and even hair salons.

c. Cafeteria benefits plans allows employees to select the benefits

most important to them.

LO 10-6

Discuss some of the issues associated with unionized employees,

including collective bargaining and dispute resolution.

• Managing Unionized Employees

o Collective Bargaining

o Resolving Disputes

Key Terms:

• Labor union

• Collective bargaining

• Labor contract

• Picketing

• Strikes

• Boycott

• Lockout

• Strikebreakers

• Conciliation

• Mediation

• Arbitration

PPT 10.37

VI. Managing Unionized Employees

A. A labor union is an employee organization formed to deal with

employers for achieving better pay, hours, and working conditions.

1. Union workers make significantly ($200 per week) more than

nonunion employees.

2. Significant aspects of HRM, particularly compensation, are dictated

by union contracts at many companies.

2. The United States has shifted from manufacturing to a more service

economy, further reducing the demand for blue-collar workers.

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Instructor’s Manual – Chapter 10

3. An increased focus on productivity and efficiency has led to more

participative management, blurring the line between management

and workers.

4. Nonetheless, labor unions have been successful in organizing blue-

collar manufacturing, government, and health care workers, as well

as smaller percentages of employees in other industries.

C. Collective Bargaining (Figure 10.5)

management and unions reach an agreement about compensation,

working hours, and working conditions for the bargaining unit.

contract—the formal, written document that spells out the

relationship between the union and management for a specified

period of time.

agreement that meets its demands; compromise is frequently

necessary.

b. Management negotiates to gain or retain control over

employment issues (hiring, firing, standards, schedules, and so

forth).

c. Unions focus on contract issues such as magnitude of wages,

better pay, holidays, better scheduling, and benefits.

d. Many labor contracts contain a cost-of-living escalator clause

3. Labor Tactics

a. Picketing is a public protest against management practices with

workers marching (often waving anti-management signs and

placards) at the employer’s plant.

b. Strikes—employee walkouts—are one of labor’s most effective

weapons against management; however, they are a weapon of

last resort.

c. A boycott is an attempt to keep people from purchasing a

company’s products.

Ferrell / Hirt / Ferrell:

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Instructor’s Manual – Chapter 10

PPT 10.40

PPT 10.41

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Mediation vs.

Arbitration? Visit

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animated

4. Management Tactics

a. A lockout is management’s version of a strike; management

actually closes a work site so that employees cannot go to work.

members. It is often a measure of last resort for management.

5. Outside Resolution

a. Outside resolution may be necessary if other means of dispute

resolution fail.

b. In such cases, the parties have three choices:

1) Conciliation involves the use of a neutral third party, a

conciliator, to keep labor and management bargaining. The

conciliator’s goal is to get both parties to focus on the issues

and prevent negotiations from breaking down.

2) Mediation involves using a neutral third party, a mediator,

to suggest a solution to the problem. This third party has no

formal power over labor or management.

3) Arbitration involves bringing in a neutral third party, an

arbitrator, to decide how to settle the dispute. An

4) Generally, arbitration occurs on a voluntary basis;

management and labor must agree to it. Sometimes,

LO 10-7

Describe the importance of diversity in the workforce.

• The Importance of Workforce Diversity

o The Characteristics of Diversity

o Why Is Diversity Important?

o The Benefits of Workforce Diversity

Key Terms:

• Diversity

• Affirmative action

programs

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Instructor’s Manual – Chapter 10

PPT 10.43

PPT 10.45

VII. The Importance of Workforce Diversity

A. The Characteristics of Workforce Diversity (Figure 10.6)

1. Diversity refers to the participation of different ages, genders, races,

ethnicities, nationalities, and abilities in the workplace. (Table 10.9)

2. Differences can be separated into primary and secondary

characteristics of diversity

a. Primary characteristics of diversity are inborn and cannot be

changed and include age, gender, race, ethnicity, abilities,

b. Secondary characteristics of diversity can be changed and

include work background, income, marital status, military

experience, religious beliefs, geographic location, parental

status, and education.

population

2. More and more companies are trying to improve HRM programs to

recruit, develop, and retain more diverse employees to better serve

their diverse customers.

C. The Benefits of Workforce Diversity

a. More productive use of a company’s human resources.

b. Reduced conflict among employees of different ethnicities,

races, religions, and sexual orientations as they learn to respect

each other’s differences.

c. More productive working relationships among diverse

employees as they learn more about and accept each other.

d. Increased commitment to and sharing of organizational goals