CHAPTER 15: Human Resource Management & Chapter 3: THE WORLD MARKETPLACE

1. CHAPTER 15: Human Resource Management & Chapter 3: THE WORLD MARKETPLACE

2. CHAPTER 15: Human Resource Management BUILDING A TOP-QUALITY WORKFORCE

3. Human Resource Management – maximizing the effectiveness of the workforce. Recruiting world-class talent Promoting career development Boosting organizational effectiveness HUMAN RESOURCE MANAGEMENT: BRINGING BUSINESS TO LIFE

4. HUMAN RESOURCE MANAGEMENT CHALLENGES: MAJOR HURDLES • Older Workers • Younger Workers • Women Workers • Work-Life Balance • Wage Gap • Outsourcing • Lawsuits

5. BEST-PAID EXECUTIVES OF PUBLIC COMPANIES DURING THE PAST DECADE Wall Street Journal July 27, 2010

6. BEST-PAID EXECUTIVES OF PUBLIC COMPANIES DURING THE PAST DECADE

7. HUMAN RESOURCE PLANNING: DRAWING THE MAP

8. Job Analysis What skills does the workforce already have? What skills do they need? ANALYZING HUMAN ASSETS

9. RECRUITMENT: FINDING THE RIGHT PEOPLE • Internal Recruiting – transferring or promoting employees within the company. • Boosts Morale • Proven Track Record • Lower Recruiting Costs • External Recruiting – looking for employees outside the firm. • Recruiting Resources: • Employment Websites • Newspaper Ads • Trade Associations • Employment Centers • Colleges/Universities

10. SELECTION: MAKING THE RIGHT CHOICE

11. STRUCTURED INTERVIEW • Develop a list of questions prior to interview • Focus questions on behaviors and experiences Describe a time when you… What would you do if… If you realized that a co-worker…

12. JOB OFFERS & CONTINGENT WORKERS • It is important for managers to set a probationary period with new hires • Typically 3 to 6 months • Employees will become permanent if everything works out • Companies with fluctuating employment needs may opt to hire contingent workers • Temporary Full-Time • Independent Contractors • On-call Workers

13. TRAINING AND DEVELOPMENT: HONING THE COMPETITIVE EDGE • Increase innovation • Increase technology adoption • Increase productivity • Increase motivation • Decrease liability

14. ORIENTATION • Effective orientations are the first step in the development process • Introduce employees to the company culture • Strong orientation programs reduce employee turnover

15. ON-THE-JOB TRAINING On-the-Job Training – popular and low cost - employees simply begin working under the guidance of experienced employees. Apprenticeships – training programs where beginners serve as an assistant prior to working.

16. OTHER TRAINING OPTIONS Off-the-Job Training – training that takes place away from the job setting. Companies employ a variety of training strategies: • Vestibule Training • Classroom • Job Simulations Computer-Based Training – standardized presentations using video, audio and broadband technology. Management Development – programs to assist current and potential executives develop leadership skills.

17. EVALUATION: ASSESSING EMPLOYEE PERFORMANCE • Performance Appraisals • Formal feedback • Compare actual to expected results • May impact compensations, incentives, promotions, transfers and terminations • HR should create an evaluation tool that ties into the company’s objectives • Evaluation should be a feedback PROCESS • Managers should be trained • Employees should be informed of the process

18. COMPENSATION: SHOW ME THE MONEY Compensation – the combination of pay and benefits. • Compensation is based on: • Competition • Contribution • Ability to Pay • Cost of Living • Legislation Wages – pay in exchange for the number of hours or days that an employee works. Salary – the pay that employees receive over a fixed period. Benefits – noncash compensation like health care and vacation.

19. PERFORMANCE PAY OPTIONS IBM Distinguished EngineerClient Technical AdvisorMember, IBM Academy of Technology

20. BENEFITS: FROM BIRTHDAY CAKES TO DEATH BENEFITS Legally Mandated Benefits Optional Benefits • Social Security • Medicare Contributions • Unemployment Payments • Workers’ Compensation • Federal Family and Medical Leave • Paid Vacation & Holidays • Paid Sick Days • Health Insurance • Retirement Programs • Product Discounts • Tuition Reimbursement

21. CAFETERIA-STYLE BENEFITS • Providing employees a set dollar amount per person that they spend on company benefits. • Allows employees to tailor their benefits to their individual needs.

22. EMPLOYEE HEALTH AND WELLNESS PROGRAMS “ According to the World Health Organization, every dollar spent on wellness programs saves three dollars in medical costs. Workplace fitness programs reduce short-term leave by up to 32% and increase productivity by up to 52%. “ (Source: Share the bottom-line benefits by Sid Kirchheimer, Time magazine, February 14, 2004)

23. FLEXIBLE SCHEDULING

24. SEPARATION: BREAKING UP IS HARD TO DO • Employees will leave for a variety of reasons • Fired • Laid Off • Transfers • Career Changes • Personal Reasons • Employers should proceed carefully to avoid wrongful termination lawsuits

25. Chapter 3: THE WORLD MARKETPLACE Business without Borders

26. With technology and telecommunications booming, and trade barriers falling, the economic boundaries between nations have begun to blur. AN UNPRECEDENTED OPPORTUNITY

27. WORLDWIDE ECONOMIC GROWTH

28. BRIC countries- Brazil, Russia, India and China The four original BRIC countries comprise more than 2.8 billion people or 40 percent of the world’s population, cover more than a quarter of the world’s land area over three continents, and account for more than 25 percent of global GDP. Recent forecast of the world ranking of the biggest economies in the year 2050

29. KEY REASONS FOR INTERNATIONAL TRADE • Access to Factors of Production • Reduced Economic Risk • Innovation

30. Lithium mine production (2011) and reserves in tonnes

33. GLOBAL TRADE: TAKING MEASURE • Balance of Trade • Trade Deficit • Trade Surplus • Balance of Payments • Balance of Payments Deficit • Balance of Payments Surplus • Exchange Rates • Countertrade

34. United States Balance of Trade The balance of trade is the difference between the monetary value of exports and imports in an economy over a certain period of time. A positive balance of trade is known as a trade surplus and consists of exporting more than is imported; a negative balance of trade is known as a trade deficit or, informally, a trade gap.

35. U.S. Balance of Payments (International Transactions) Current Account Balance: 1st quarter 2009: -$101.5 billion 4th quarter 2008: -$154.9 billion 3rd quarter 2008: -$174.1 billion 2nd quarter 2008: -$180.9 billion 1st quarter 2008: -$175.6 billion

36. EXCHANGE RATES: WHO BENEFITS?

37. American Dollar Exchange Rate in USD

38. GLOBAL MARKET DEVELOPMENT OPTIONS Lower Risk Higher Risk Less Control More Control

39. STRATEGIES FOR FINDING GLOBAL SUPPLIERS

40. STRATEGIES FOR REACHING GLOBAL MARKETS • Licensing • Authority given by domestic firm for rights to produce/market its product and use trademarks/patents. • Franchising • Providing the right to produce and market products under its operating requirements. • Direct Investment • Firms acquire businesses or develop new facilities in foreign countries. • Joint Ventures • Two or more companies joining forces to pursue specific opportunities (Partnership or Strategic Alliances

41. STRATEGIES FOR REACHING GLOBAL MARKETS In the wake of the Great Recession… Italian carmaker Fiat acquired struggling U.S. auto giant, Chrysler to leverage the American market Foreign acquisition allows companies to gain quick access into new markets

42. MULTINATIONAL FIRMS Do you know where the firm that ultimately owns each brand is headquartered? Nestle Quick Switzerland Nokia Cell Phones Finland Jaguar Automobiles India Michelin Tires France Shell Oil Netherlands/England Columbia Records Japan/Germany

43. BARRIERS TO INTERNATIONAL TRADE • Sociocultural Differences • Economic Differences • Political & Legal Differences

44. SOCIAL/CULTURAL DIFFERENCES • Nonverbal Communication • Forms of Address • Attitudes toward punctuality • Religious Celebrations • Business Practice/Gifts Think beyond the obvious differences. Social/cultural differences can rapidly undermine business relationships.

45. ECONOMIC DIFFERENCES • Exchange Rates • Population • Per Capita Income • Infrastructure • Transportation • Communication • Energy • Finance Can you profitably provide your product or service to meet the needs of the market? Can you profitably provide your product or service to meet the needs of the market?

46. POLITICAL & LEGAL DIFFERENCES • Political regimes differ around the world • Legal Differences • Lack of Enforcement • Bribery • Political Climate • Stability • Violence • Piracy and intellectual property is a problem in several foreign nations

47. PROTECTIONISM

48. TRADE RESTRICTIONS • Tariffs • Taxes levied against imports • Quotas • Limitations on the amount of specific products that may be imported from certain countries • Voluntary Export Restrictions • Limitations on the amount of specific products that one nation will export to another • Embargo • Total ban on international trade of a certain item or a total halt in trade with a specific nation

49. GLOBAL EMPLOYMENT “ A new study suggests that 2.3 million service jobs will have moved from the United States to other countries by 2008, up from 900,000 as of 2003. “

50. REVERSE BRAIN DRAIN • Many talented immigrants are moving home to take advantage of new economic opportunities. • US companies can cut costs by sourcing employees from overseas. • But is America losing potential innovators such as Sergey Brin, founder of Google?