Chapter 15 Managing Human Resources PowerPoint slides by R Dennis Middlemist Colorado State University Learning Objectives After studying this chapter, you should be able to: Explain how the management of human resource is both a role for the human resource management department and all managers Describe the key means by which companies find job candidates ©2005 Learning Objectives After studying this chapter, you should be able to: Explain how companies select job candidates Highlight the keys to effective socialization and training Describe the common methods of managing performance ©2005 Learning Objectives After studying this chapter, you should be able to: Discuss the various compensation and reward systems commonly used Explain how various laws affect core HR activities ©2005 Strategic Role of HRM Firm’s ability to survive and prosper is increasingly a function of the human resources they have Managers’ career success depends on how well they manager their firm’s resources ©2005 General Framework of HRM Environment External Internal Organization Strategy Human Resource Management Activities Planning, Job Analysis, Recruiting, Selecting, Socializing and Training, Job Design, Performance Appraisal, Compensation, Development Competitive Advantage ©2005 Adapted from Exhibit 15.1: General Framework of HRM HRM Activities Two main HRM goals Getting the right people HRM activities must be aligned with corporate strategy Maximizing their performance and potential Failure of either goal can influence the success or failure of the other ©2005 HRM Activities Getting the Right People Planning Forecasting demand Assessing supply Formulating fulfillment plans Job analysis (assessing the job) Scope and depth of jobs Requisite skills, abilities, and knowledge that people need to perform their jobs successfully Job description Job specification ©2005 HRM Activities Recruiting Job posting Getting the Right People Internal recruiting method Job, its pay, level, description, and qualifications are posted or announced to current employees Advertisements Employment agencies Employee referrals School placement centers Internet recruiting ©2005 HRM Activities Getting the Right People Selecting valid selection technique Work simulation Interviews Unstructured Written tests Structured Work sampling Assessment centers 10 ©2005 Background and reference checks Physical examinations Performance Appraisal Interview Discuss alternative means of improving future performance and encourage employee input Review work objectives Summarize overall performance (critical incidents) Discuss causes of poor performance Agree on process for future improvement 29 ©2005 Performance Appraisal Interview Establish an agreed approach, timetable, and review process for future improvement Review work objectives Summarize overall performance (critical incidents) Discuss causes of poor performance Agree on process for future improvement Discuss alternatives for improving 30 ©2005 Performance Appraisal Interview Establish key objectives, timetables, and standards for the upcoming performance period Review work objectives Summarize overall performance (critical incidents) Discuss causes of poor performance Agree on process for future improvement Objectives for next performance period 31 ©2005 Discuss alternatives for improving Performance Appraisal Interview Leave the meeting on an encouraging and positive note Review work objectives Summarize overall performance (critical incidents) Discuss causes of poor performance Agree on process for future improvement End with encouragement 32 ©2005 Objectives for next performance period Discuss alternatives for improving HRM Activities Maximizing Performance Compensation Pay Pay structure Broad band system At-risk system Incentive plans Benefits Rewards and motivation 33 ©2005 Pay Structure Traditional Pay Structure $8,000 Monthly pay $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 00 00 0 0 00 0 0 0 0 00 00 00 00 10 11 12 13 14 Job evaluation points 34 ©2005 Adapted from Exhibit 15.7: Traditional and Contemporary Pay Structures Pay Structure Broad Band Pay Structure $8,000 Monthly pay $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 00 00 0 0 00 0 0 0 0 00 00 00 00 10 11 12 13 14 Job evaluation points 35 ©2005 Adapted from Exhibit 15.7: Traditional and Contemporary Pay Structures HRM Activities Maximizing Performance Career systems and development Career paths Cross-functional job rotation Promotion Dual-career couples Termination Layoffs Labor relations 36 ©2005 Laws and Regulations Affirmative action programs Expatriate employees Glass ceiling Bona fide occupational qualifications (BFOQ) Sexual harassment Workforce diversity Managing workforce diversity Globalization 37 ©2005 Major U.S Federal Laws and Regulations Enforcement Agency Act Requirements Covers Thirteenth Amendment Abolished slavery All individuals Court System Fourteenth Amendment Provides equal protection for all citizens and requires due process in state action State actions (e.g., decisions of governmental organizations Court System Civil Rights Acts of 1866 and 1871 Grant all citizens the right to make, perform, modify, and terminate contracts and enjoy all benefits, terms, and conditions of the contractual relationship Employers engaged in interstate commerce EEOC 38 ©2005 Adapted from Exhibit 15.8: Major U.S Federal Laws and Regulations Related to Human Resource Management Major U.S Federal Laws and Regulations Enforcement Agency Act Requirements Covers Equal Pay Act of 1963 Requires that men and women performing equal jobs receive equal pay Employers with 15 or more employees working 20 or more weeks per year, labor unions, and employment agencies EEOC Title VII of CRA Provides equal protection for all citizens and requires due process in state action State actions (e.g., decisions of governmental organizations Court System Age Discrimination in Employment Act of 1967 Prohibits discrimination in employment against individuals 40 years of age or older Employers with 15 or more employees working 20 or more weeks per year; labor unions; employment agencies; federal government EEOC 39 ©2005 Adapted from Exhibit 15.8: Major U.S Federal Laws and Regulations Related to Human Resource Management Major U.S Federal Laws and Regulations Enforcement Agency Act Requirements Covers Rehabilitation Act of 1973 Requires affirmative action in the employment of individuals with disabilities Government agencies; federal contractors and subcontractors with contracts greater than $2,500 OFCCP Americans with Disabilities Act Prohibits discrimination against individuals with disabilities of 1990 Employers with more than 15 employees EEOC Executive Order 11246 Requires affirmative action in hiring women and minorities Federal contractors and subcontractors with contracts greater than $10,000 OFCCP Civil Rights Act of 1991 Prohibits discrimination (same as Title VII) Same as Title VII, plus applies Section 1981 to employment discrimination cases OFCCP 40 ©2005 Adapted from Exhibit 15.8: Major U.S Federal Laws and Regulations Related to Human Resource Management Major U.S Federal Laws and Regulations Act Requirements Covers Family and medical leave Act of 1993 Requires employers to provide 12 weeks of unpaid leave for family and medical emergencies Employers with more than 50 employees Enforcement Agency Department of Labor Source: Raymond A Noe, John R Hollenbeck, Barry Gerhart, and Patrick M Wright, Human Resource Management: Gaining a Competitive Advantage (Burr Ridge, Ill.:Richard D Irwin, 1997), p 107 Copyright 1997 Reproduced with permission of The McGraw-Hill Companies 41 ©2005 Adapted from Exhibit 15.8: Major U.S Federal Laws and Regulations Related to Human Resource Management Diversity of U.S Workforce 22% African-American men 29% African-American women 58% Asian men 65% Asian women 60% Hispanic men Hispanic women 71% 8% White men 20% White women 10 20 30 40 50 60 70 80 90 100 Percentage increases by year 2000 42 ©2005 Adapted from Exhibit 15.9: Increasing Diversity of U.S Workforce Developed Countries Developing Countries 43 ©2005 Percentage of workers located in developed and developing countries Where the Workers Are 100 83% 80 75% 67% 60 40 33% 25% 20 17% 1950 1990 2025 Adapted from Exhibit 15.10: Where the Workers Are ... be able to: Explain how the management of human resource is both a role for the human resource management department and all managers Describe the key means by which companies find job candidates... what seems to be a disorganized approach, by concerted effort, although deadlines may be missed 25 ©2005 This associate would plan more by enthusiasm than by timetable and frequently have to work... and is taught by that person Apprenticeship programs also often include some classroom work 11 Source: Adapted from W P Anthony, D L Perrewé, and K M Kacmar, Strategic Human Resource Management