Chapter Eleven Human Resource Management: Finding and Keeping the Best Employees McGraw-Hill/Irwin Copyright © 2014 by the McGraw-Hill Companies, Inc All rights reserved 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: Increased recognition of employees as a resource Changes in law that rewrote old workplace practices 11-2 HUMAN RESOURCE MANAGEMENT 11-3 HR & Legal Issues 11-6 CIVIL RIGHTS ACT of 1964 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 11-7 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 11-8 CONTROVERSIAL PROCEDURES of the EEOC • Affirmative Action Policy designed to “right past wrongs” by increasing opportunities for minorities and women in the workplace • Reverse Discrimination Discrimination against whites or males in hiring or promoting These policies have been at the center of many debates and lawsuits 11-9 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 11-10 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 11-11 AGE DISCRIMINATION in EMPLOYMENT ACT (ADEA) Age Discrimination in Employment Act (ADEA) Protects workers 40 and older from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments and training 11-12 MAJOR USES of PERFORMANCE APPRAISALS • 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 11-39 COMPENSATION 11-40 COMPENSATION PROGRAMS • 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 - Provide employee financial security through wages and fringe benefits 11-41 TYPES of PAY SYSTEMS • Salary • Hourly Wage/Day Work • Piecework System • Commission Plans • Bonus Plans • Profit Sharing Plans 11-42 COMPENSATING TEAMS • Team-based pay programs are more challenging than individual pay systems 11-43 FRINGE BENEFITS on the JOB • Fringe Benefits Sick leave, vacation pay, pension and health plans that provide additional compensation to employees beyond base wages • In 1929, Fringe benefits accounted for less than 2% of payroll cost Today it’s about 30% • Healthcare has been the most significant increase in fringe benefit cost 11-44 The RANGE of FRINGE BENEFITS • Fringe benefits include incentives like: - Company cars - Country club memberships - Recreation facilities - Special home mortgage rates - Paid and unpaid sabbaticals - Day-care and elder care services - Dental and eye care - Legal counseling - Short or compressed work weeks 11-45 SPECIAL PERKS at DREAMWORKS • Free DVDs and screenings of current films • Free breakfast and lunch plus dinner when working late • Free snack rooms on every floor • Profit sharing • Ping-Pong and poker tournaments during work hours 11-46 CAFETERIA-STYLE and SOFT BENEFITS • Cafeteria-Style Fringe Benefits Allow employees to choose the benefits they want (up to a certain dollar amount) • Soft Benefits include: - Onsite haircuts and shoe repair - Concierge services - Free meals at work - Doggie daycare - Onsite farmer’s markets 11-47 FLEXIBLE SCHEDULING PLANS 11-48 USING FLEXTIME PLANS • Flextime Plan Gives employees some freedom to choose which hours to work as long as they work the required number of hours • Most flextime plans require Core Time When all employees are expected to be at their job stations • Flextime is hard to incorporate into shift work and managers have to work longer hours 11-49 COMPRESSED WORK WEEKS • Employees enjoy long weekends after working long days • Productivity is a concern • Nurses and firefighters often work compressed work weeks 11-50 JOB SHARING • Job Sharing Lets two or more part-time employees share on a full-time job • Provides employment opportunities for many people who cannot work full time • Workers tend to be enthusiastic and productive • Absenteeism and tardiness are reduced • Employers can schedule part-time workers in peak demand periods 11-52 MOVEMENT of EMPLOYEES • Employees are promoted • Employees are reassigned • Employees are terminated due to performance or economic situations • Employees resign • Employees retire 11-53 TERMINATING EMPLOYEES • As the economic crisis grew, more and more employers have had to lay off employees • Even when the economy is booming, employers are hesitant to hire full-time workers because of the cost of termination • Firing employees is more difficult for employers because of laws preventing termination for certain acts 11-54 ... regularly 11- 13 HUMAN RESOURCE MANAGEMENT HR Must Plan for the Future STEPS in the Human Resource Planning Process 11- 14 STEPS in the HUMAN RESOURCE PLANNING PROCESS Preparing a human resource. . .HUMAN RESOURCE MANAGEMENT (HRM) • Human Resource Management The process of determining human resource needs and then recruiting, selecting, developing,... Specifications A summary of the minimal education and skills needed to a particular job 11- 16 HUMAN RESOURCE MANAGEMENT (HRM) The process of determining human resource needs and then recruiting, selecting,