Chapter 11
Human
Resource
Management:
Finding and
Keeping the
Best
Employees
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Eleven
LEARNING GOALS
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.
11-2
Chapter Eleven
LEARNING GOALS
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.
11-3
Chapter Eleven
LEARNING GOALS
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.
11-4
Profile
MARK PARKER
Nike
• Started as a shoe designer
and rose to CEO in 2006.
• The 7,000 workers at Nike’s
headquarters have access to
two gyms, an Olympicsize
pool, five restaurants, and
have free onsite childcare.
• Named one of the 100 Best
Places to Work in 2006,
2007 and 2008.
11-5
Chapter Eleven
NAME that COMPANY
This company is one of the largest U.S. steel
producers. It pays its teams bonuses that are
calculated 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.
Name that company!
11-6
Working with
People is Just
the Beginning
HUMAN RESOURCE MANAGEMENT
LG1
11-7
Working with
People is Just
the Beginning
LG1
HUMAN RESOURCE
MANAGEMENT (HRM)
• Human Resource Management 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.
11-8
Working with
People is Just
the Beginning
LG1
UNCOVERING the
SECRETS of HRM
Things Your HR Manager Doesn’t Tell You
• We’re shortstaffed 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.
Source: Smart Money, May 2010.
11-9
Developing the
Firm’s Ultimate
Resource
LG1
DEVELOPING the FIRM’S
ULTIMATE RESOURCE
• Service and hightech manufacturing requires
employees with highly technical job skills.
• 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.
11-10
The Human
Resource
Challenge
LG1
CHALLENGES in FINDING
HIGHLEVEL WORKERS
• 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 fulltime jobs
• Expanding global markets with lowwage workers
• Increasing benefit demands and benefit costs
• A decreased sense of employee loyalty
11-11
Laws Affecting
Human Resource
Management
CIVIL RIGHTS ACT of 1964
LG2
• 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
11-12
Laws Affecting
Human Resource
Management
LG2
1972 EQUAL EMPLOYMENT
OPPORTUNITY ACT (EEOA)
• 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.
11-13
Laws Affecting
Human Resource
Management
LG2
CONTROVERSIAL PROCEDURES
of the EEOC
• 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.
11-14
Laws Affecting
Human Resource
Management
LG2
CIVIL RIGHTS ACT of 1991
and OFCCP
• 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.
11-15
Laws Protecting
Employees with
Disabilities and
Older Employees
LG2
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.
- Passage in 2008 of Americans with
Disabilities Amendments Act
expanded protection.
- 2011 saw new regulations that widen
the range of disabilities covered by
the ADA and shift the burden of proof
of disability from employees to
employers.
11-16
Laws Protecting
Employees with
Disabilities and
Older Employees
LG2
AGE DISCRIMINATION in
EMPLOYMENT ACT (ADEA)
Age Discrimination in Employment Act (ADEA)
- Protects workers 40 and
over from employment
and workplace
discrimination in hiring,
firing, promotion, layoff,
compensation, benefits,
job assignments and
training.
11-17
Effects of
Legislation
MINDING the LAW in HRM
LG2
• 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.
11-18
The MILLION WOMAN SUIT
AGAINST WALMART
(Legal Briefcase)
• Over 1 million women filed suit against Walmart
for gender dominance in the store’s management
ranks.
• The case charged that not only did the company
leapfrog over women for leadership roles, it
engaged in pay inequality and harassment.
• The Supreme Court dismissed the classaction
suit.
11-19
Progress
Assessment
PROGRESS ASSESSMENT
• 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?
11-20
Determining a
Firm’s Human
Resource Needs
LG3
HUMAN RESOURCE PLANNING
PROCESS
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.
11-21
Determining a
Firm’s Human
Resource Needs
WHAT’S a JOB ANALYSIS?
LG3
• 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.
11-22
Recruiting
Employees from
a Diverse
Population
RECRUITING EMPLOYEES
LG4
• 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.
11-23
IT’S NOT EASY BEING SMALL
(Spotlight on Small Business)
• 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.
- “Testdrive” an employee.
- Seek out publicity through local media.
11-24
Recruiting
Employees from
a Diverse
Population
EMPLOYEE SOURCES
LG4
11-25