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 Explain the importance of human resource management, and describe current issues in managing human resources Illustrate the effects of legislation on human resource management Summarize the five steps in human resource planning 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 Outline the six steps in selecting employees Illustrate employee training and development methods Trace the six steps in appraising employee performance Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits 11-3 Chapter Eleven LEARNING GOALS 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: Increased recognition of employees as a resource 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 Fringe Benefits LG8 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 • PingPong and poker tournaments during work hours 11-52 Fringe Benefits LG8 CAFETERIASTYLE and SOFT BENEFITS • CafeteriaStyle 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 11-53 Fringe Benefits LG8 LET’S GO to the BEACH! Average Vacation Days by Country Source: Reuters, June 24, 2010. 11-54 WORKING WORLDWIDE (Reaching Beyond Our Borders) • Managers need to understand the business needs of each country they operate in - Compensation: Conversion to foreign currencies and special allowances often are needed - Health and Pension Standards: Benefits are different countrybycountry - Paid Time Off: Vacation time, sick and personal leave vary - Taxation: Tax policies vary - Communication: Employees can feel disconnected in other countries 11-55 Flextime Plans FLEXIBLE SCHEDULING PLANS LG9 • Flextime Plan Gives employees some freedom to choose which hours to work as long as they work the required number of hours or complete their tasks. • Compressed Work Week Employees work the full number of work hours, but in fewer than the standard number of days • Job Sharing Lets two or more parttime employees share on a fulltime job 11-56 Flextime Plans USING FLEXTIME PLANS LG9 • Most flextime plans require Core Time When all employees are expected to be at their job stations • Flextime is difficult to incorporate into shift work and managers have to work longer hours • Communication among employees can also be difficult under flextime and managers have to be alert to any system abuses 11-57 Flextime Plans A FLEXTIME CHART LG9 11-58 Flextime Plans COMPRESSED WORK WEEKS LG9 • Employees enjoy long weekends after working long days • Productivity is a concern • Nurses and firefighters often work compressed work weeks 11-59 HomeBased Work HOMEBASED WORK LG9 • About 10 million Americans telecommute at least several days a month • 12% of U.S. businesses use some homebased work • Bank of America has My Work that saves an estimated $5,500 per enrolled employee every year 11-60 HomeBased Work LG9 VIRTUALLY THERE Tools to Help You Work From Home • Communication: - Google Apps - Skype - Yammer • Collaboration: - Google Docs - GoToMeeting - Dropbox Source: Entrepreneur, January 2011 11-61 HomeBased Work LG9 GOING NOWHERE FAST Worst Commutes in the World Source: Bloomberg Businessweek, December 20, 2010 11-62 Job Sharing Plans JOB SHARING BENEFITS LG9 • 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 parttime workers in peak demand periods 11-63 Moving Employees Up, Over and Out MOVING EMPLOYEES LG10 • Employees are promoted or reassigned • Employees are terminated due to performance or economic situations • Employees retire. 11-64 Terminating Employees TERMINATING EMPLOYEES LG10 • 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 fulltime workers because of the cost of termination • Firing employees is more difficult for employers because of laws preventing termination for certain acts. 11-65 Progress Assessment PROGRESS ASSESSMENT • Name and describe five alternative compensation techniques • What advantages do compensation plans such as profit sharing offer an organization? • What are the benefits and challenges of flextime? Telecommuting? Job sharing? 11-66 ... 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 ... 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.. .Chapter Eleven LEARNING GOALS Explain the importance of human resource management, and describe current issues in managing human resources Illustrate the effects of legislation on human resource management