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Managing Human Resources. Chapter 9. Chapter 9 Learning Goals. W hat is the human resource management process? H ow are human resource needs determined? H ow do human resource managers find good people to fill the jobs? W hat is the employee selection process?

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Managing human resources l.jpg

Managing Human Resources

Chapter 9


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Chapter 9 Learning Goals

  • Whatis the human resource management process?

  • How are human resource needs determined?

  • How do human resource managers find good people to fill the jobs?

  • What is the employee selection process?

  • What types of training and development do organizations offer their employees?


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Chapter 9 Learning Goals (cont’d.)

  • Whatis a performance appraisal?

  • How are employees compensated?

  • What is organizational career management?

  • What are the key laws and federal agencies affecting human resource management?

  • What trends are affecting human resource management?


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Learning Goal 1

  • Whatis the human resource management process?

    • Job analysis and HR planning

    • Employee recruitment and selection

    • Employee training, performance appraisal, and compensation

    • Ends when employee leaves organization


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Human Resource Management

The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals


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HR planning & forecasting

Employee recruitment

Employee selection

Job analysis & design

Training & development

Performance planning & evaluation

Compensation & benefits

Human Resource Management Process

Strategies & objectives of the organization

Organizational career management


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Learning Goal 2

  • How are human resource needs determined?

    • Job analysis

      • Studying a job to determine its tasks and duties for

        • Setting pay

        • Determining employee job performance

        • Specifying hiring requirements

        • Designing training programs

    • Job description

      • Lists the tasks and responsibilities of the job

    • Job specification

      • Describes skills, knowledge, and abilities needed to fill the job described in the job description


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HR planning & forecasting

Employee recruitment

Employee selection

Job analysis & design

JobAnalysis:

A study of the tasks required to do a particular job well

  • job description

  • job specification


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HR planning & forecasting

Employee recruitment

Employee selection

Job analysis & design

Demand forecast:

Determining the number of employees needed by some future time

Supply forecast (internal):

Estimating the number of current employees who will be available to fill various jobs at some future time


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Labor Supply & Demand

Labor shortage in the 1990s has turned the tables for employers

  • some individuals seeking work advertise themselves as free agents

  • employers bid for interviews with free agents

  • US Department of Labor estimates there are 10 million free agents

Source: Entrepreneur, Jan. 2000, p. 16.


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Learning Goal 3

  • How do human resource managers find good people to fill the jobs?

    • Most firms begin by trying to fill the job from within

    • If internal candidates are not available, an external search begins

      • Local media is used to find workers who are

        • Nontechnical

        • Unskilled

        • Nonsupervisory

      • Highly trained recruits are found by using

        • College recruiters

        • Executive search firms

        • Job fairs

        • Company Web sites


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HR planning & forecasting

Employee recruitment

Employee selection

Job analysis & design

Recruitment:

Attempt to find and attract qualified applicants in the external labor market

  • job fair


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Employee Talent

Ratings made by Fortune magazine:

Most admired employee talent:

  • Microsoft

  • Cisco Systems

  • Coca-Cola

    Leastadmired employee talent:

  • MedPartners

  • Shoney’s

  • Trump Hotels & Casinos

Source: Fortune, Mar. 1, 1999, p. 70.


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Learning Goal 4

  • What is the employee selection process?

    • Applicant submits an application or résumé

    • Receives a short, structured interview

    • Applicant may be asked to take an aptitude, personality, or skills test

    • Selection interview

      • In-depth discussion of applicant’s

        • Work experience, skills, and abilities

        • Education and career interests

      • Applicants seeking professional or managerial positions may be interviewed by several people

    • Successful applicants may be asked to undergo a physical exam


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HR planning & forecasting

Employee recruitment

Employee selection

Job analysis & design

Selection:

The process of determining which people in the applicant pool possess the qualifications necessary to be successful on the job


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Decision to hire

Physical examination

Background and reference checks

Selection interview

Employment testing

Initial screening

Steps of the Selection Process


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Learning Goal 5

  • What types of training and development do organizations offer their employees?

    • Training and development programs are designed to increase employees’ knowledge, skills, and abilities to foster job improvement

      • Formal training

      • Development programs

        • Job rotation

        • Executive education programs

        • Mentoring

        • Special project assignments


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Training & development

Performance planning & evaluation

Compensation & benefits

Training and Development:

Activities that provide learning situations in which an employee acquires additional knowledge or skills to increase job performance

  • on-the-job training

  • off-the-job training


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Training and Development

Forecasting International predicts that the need for life-long learning will characterize business in the future

Implications:

  • need for higher training budgets

  • need for constant retraining due to turnover

  • use of technology for just-in-time training

  • training as a motivational & retention tool

Source: HR News, Dec. 1999, pp. 18-20.


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Learning Goal 6

  • What is a performance appraisal

    • Compares an employee’s actual performance with the expected performance

    • Typically used to determine an employee’s

      • Compensation

      • Training needs

      • Advancement opportunities


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Training & development

Performance planning & evaluation

Compensation & benefits

Performance planning & evaluation process:

Performance planning:

Setting standards & expectations

Performance evaluation

Rewards & job changes

Employee job task behavior


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Performance Evaluation

360° Evaluation: performance feedback that combines self-appraisal with ratings made by coworkers at the same level, above, and below the target person in the managerial hierarchy

Advantages:

provides a well-rounded view

avoids individual bias

can have more impact than a single source

can establish consensus


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Learning Goal 7

  • How are employees compensated?

    • Direct pay

      • Hourly wage or monthly salary paid to an employee

      • May include bonuses and profit shares

    • Indirect pay

      • Various benefits and services

        • Required by law: unemployment and worker’s compensation, Social Security

        • Optional: paid vacations and holidays, pensions, health and other insurance products, employee wellness programs, college tuition reimbursement


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Training & development

Performance planning & evaluation

Compensation & benefits

Types of Compensation or Pay:

  • hourly wages

  • salaries

  • piecework and commission

  • accelerated commission schedule

  • bonus

  • profit sharing

  • fringe benefits


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Learning Goal 8

  • What is organizational career management?

    • Facilitation of employee job changes including

      • Promotions

        • Upward move with more authority, responsibility and pay

      • Transfers

        • Horizontal move in the organization

      • Layoffs

        • Temporary separation arranged by the employer, usually when business is slow

      • Retirements

        • Permanent separation that ends one’s career


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Organizational career management

Types of Career Change:

1. Job change within the organization

  • transfer

  • promotion

  • demotion

    2. Separation from the organization

  • layoff

  • termination

  • resignation

  • retirement


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Learning Goal 9

  • What are the key laws and federal agencies affecting human resource management?

    • Federal law prohibits age, race, gender, color, national origin, religion or disability discrimination

    • Americans with Disabilities Act bans discrimination against disabled workers

    • Family and Medical Leave Act requires employers to provide employees up to 12 weeks of unpaid leave a year

    • Other Federal agencies dealing with HR administration:

      • Equal Employment Opportunity Commission (EEOC)

      • Occupational Safety and Health Administration (OSHA)

      • Office of Federal Contract Compliance Programs (OFCCP)

      • Wage and Hour Division of the Department of Labor


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Laws Affecting Human Resources

1. Fair Labor Standards Act (1938)

2. Equal Pay Act (1963)

3. Occupational Health & Safety Act (1970)

4. Americans with Disabilities Act (1990)


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Learning Goal 10

  • What trends are affecting human resource management?

    • Women comprise 45% of the American workforce

      • Growing numbers of dual-career couples

      • Companies are facing issues like sexual harassment and nonwork issues such as child and elder care

    • Workers change jobs 3 to 5 times during their career

      • Lessens loyalty between employer and employee

    • American workforce is becoming more diverse

      • Companies are offering diversity training and mentoring of minorities


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Trends in Human Resources

1. Social change

  • More women in the work force

  • More people changing jobs

    2. Demographics

  • More diverse work force

    3. Advancing Technology

  • enables more outsourcing

  • enables more telecommuting

    4. Global Competition

  • adaptable employees, need for language training & cultural orientation


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People Changing Jobs

Amount of Time MBAsExpect to Stay in Their First Job

1 to 2 years

5 or more years

2 to 3 years

4 to 5 years

3 to 4 years

Source: Fortune, Mar. 16, 1998.


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