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Human Resources ManagementCompetency BM004Explain human resource functions and their importance to an organization’s successful operation

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Objective BM04.01Evaluate recruitment sources and selection tools available to staff and organization.

Identify needs of the company Examine methods of recruiting employees Outline the basics of hiring employees Outsourcing

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Identify needs of the company Job analysis Job description – basic tasks Job specification – qualities needed Job design Job enlargement Job enrichment Job security

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Why job descriptions? Employees know what is expected of

them Employers know what they can expect Focus given to recruitment and selection

process Justification for pay decisions, promotions,

and disciplinary action Helpful to know before and after a

company re-organization

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Methods of Recruiting Employees Newspaper ads Headhunters Internet Employee referrals Flyers in college placement centers Job fairs Professional organizations Employment agencies Hidden market method Networking

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The Basics of Hiring Employees Applications Resumes Interviews Advantages of hiring

Internally Externally

Other selection tools

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The basics of . . .

Applications Completion Good written communication skills

Resumes Education Experience Achievements Skills Good written communication skills

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The basics of interviews in hiring employeesThe purpose of the interview is to . . . Confirm information on application and/or

resume Assess candidate on oral communications

skills Gather information on human relations

skills Provide information about the company

and the job

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Tips for Interviewer Greet applicant cordially Introduce yourself Seat him/her comfortably Establish rapport Limit your own talking Think like the applicant Don’t interrupt Concentrate Take notes Evaluate oral communications skills

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Risky Interview Topics Ethnic/National origin Disabilities Family and family plans Previous workers’ compensation

claims Work missed due to illness Off-the-job activities Age

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Advantage of hiring . . .Internally:

Less money spent on training (already knows company and its policies)

Higher level of knowledge about company and its activities among employees

Firsthand knowledge of employee performance

Attractive addition for benefits package Good way to reward good employees Creates loyalty among employees

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Advantages of hiring . . .Externally:

Provides company with fresh, new ideas Competition from the outside keeps

company employees performing at a high level

Decreases internal back stabbing Provides a broader talent pool

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Other Selection Tools Management assessment centers Aptitude tests Background investigations Reference checks

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Outsourcing

Legal Transportation Catering Printing

Advertising Accounting Auditing Security

Hiring an outside firm to perform specific services under contract Typical services outsourced

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OutsourcingAdvantages:

Savings in cost and efficiency Reduced overhead Concentrate on core activities of

business Better quality skills in outsourced

services Flexibility in staffing and operations

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OutsourcingDisadvantages:

Reduce breadth of organization Require extra care in coordinating with

outsource firm Reduce ability to integrate processes within

the firm Lose some control over outsourced services Decrease morale and motivation of employees

(jobs lost) Increase employees’ insecurity

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Objective BM04.02Discuss the benefits of training and development in lifelong learning as they relate to successful employee performance.

Analyze different needs for training Consider learning styles and examine

ways to provide training Explain ways to evaluate training

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Analyze different needs for training Know-how skills deficit

New employee orientation Employee promoted to new position Enable employee to perform more and higher

quality work General training needs for all employees

New equipment New operations New procedures

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Consider learning styles and examine ways to provide training Three major learning styles Ways to provide training

Classroom Online or computerized Books and printed materials On the job (with mentor) Just-in-time training Vestibule training Cross training

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Three Types of Learning Styles Visual learner

Learns through seeing Prefers to sit at the front Learns best from visuals and handouts

Tactile/Kinesthetic learner Learns through moving, doing, touching Prefers a hands-on approach May find it difficult to sit for long periods

Auditory learner Learns through listening Prefers lectures and discussions Benefits from reading text aloud and using a tape

recorder

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Classroom Training Train large groups Low cost Orientation for job Introduce new procedures

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Online or Computerized Training Low cost Employees work at their own pace Employees work on course during

free time

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Books and Printed Materials Employees can study in their free

time Low cost Can be used as follow-up to

classroom training

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On-the-job Training Apprenticeship Advantages – disadvantages in

providing training on the job Cross-training (job rotation) Effective for learning hands-on tasks

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Just-in-time Training Employees learn the skills or

procedures just before they are to use them on the job

May choose from a variety of training methods (classroom, online, etc.)

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Vestibule Training Expense of setting up training area Simulation of real environment but is

NOT like the real environment (interruptions and interactions with others excluded)

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Cross Training Employees trained to perform more

than one job Helpful when absence or illness

occurs Provides change and variety for

employees Employee more valuable to

company

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Ways to Evaluate Training Evaluation survey Testing Improved job performance

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Objective BM04.03Examine the employee evaluation process and its impact.

Determine the purposes for employee evaluation

Explore the steps in the performance review process

Analyze scoring methods for evaluation instruments

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Purposes for Employee Evaluation Emphasize strengths and identify

areas for improvement Discuss job-related issues Pay increases Promotions Dismissals Reprimands

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Steps in the Performance Review Process Know-how skills Evaluation criteria Evaluation expectations published Conducting performance evaluation Interview about evaluation Report on evaluation results Evaluate performance review

process

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Performance Review Categories Attitude toward job Attitude toward co-workers Attendance Tardiness Ability to follow directions Willingness to take initiative Ability to make good judgments

Productivity Quality of work Dependability Personal grooming Ability to get along well with others Willingness to improve through education and

information about the job

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Conducting Performance Evaluations By managers Self-evaluation By team members By customers (where appropriate) 360-degree feedback Performance testing

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Scoring Methods for Evaluation Instruments Checklist Ranking Forced distribution (like Bell curve) Performance rating scale

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Tips for Constructive Feedback Be honest Give positive as well as negative feedback Be courteous Frame criticism in a positive manner Explain reasons for negative feedback Give feedback in day-to-day work

situations

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Objective BM04.04Discuss compensation plans, benefit packages, and incentive programs available to employees.

Discuss compensation plans Define the term “benefit” Explain benefits mandated by law Discuss advantages of optional benefits

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Compensation Plans Wage – a certain amount paid for each

hour worked Piecework – a set amount for each piece

completed Salary – a certain amount each week or

month regardless of the number of hours worked

Commission – a certain percentage of the value of sales

Contract labor – a certain amount for one completed job

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Compensation Planscontinued Comparable worth Overtime pay

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BenefitFinancial compensation other than wages, salaries, and incentives

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Benefits Mandated by Law Worker’s Compensation Unemployment Compensation Social Security Medicare COBRA Family and medical leave Minimum wage

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Advantages of Optional Benefits Health insurance

Medical Dental Vision

Paid time off (vacations, sick leave, comp time, holidays)

Flexible spending accounts Flexible benefit plans Paid leave for new parents Extrinsic rewards/Leisure

activities Use of company car Scholarships for employees’

children Free/discounted products or

services Relocation benefits

Retirement/pension plans Childcare Profit-sharing plans Employee assistance

programs Stock options Education/Tuition

reimbursement Life insurance Credit union Exercise/Wellness programs Shared time Move mate/Relocation Bonuses/incentives Disability insurance Intrinsic rewards Telecommuter

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Objective BM04.05Investigate the criteria used in the promotion, transfer, discipline or release of employees.

Consider possible criteria for job promotion

Examine characteristics of job transfer Explore the procedures used for discipline Consider forms of release

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Possible Criteria for Job Promotion Tenure/Seniority Additional training Ability to get along well with people Exceptional performance Ability to adapt to new situations Leadership ability Good personal qualities Good work habits Glass ceiling (barrier) Company loyalty

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Characteristics of Job Transfer Company rules/procedures to follow Advantages of a transfer Disadvantages of a transfer

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Procedures Used for Discipline Act promptly on problem Document problem Interview employee Create plan to improve situation Follow up on status of problem

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Kinds of Problems Intergroup conflict Interpersonal conflict Negative reinforcement Organizational conflict Pilferage

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Tips for Handling Discipline If conduct violates a written rule

Immediate discipline, or Progressive discipline

Disciplined for such conduct in the past? Consider employee’s length of service

Probationary (more severe discipline?) Long-term employee (less severe discipline?)

Employee given notice of rule violation? Union activity or charge of discrimination

filed? Have CEO review discharge decision

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Issues Related to Job Release Voluntary (resignation) Involuntary

Downsizing – “No fault” termination Termination for cause – “At fault” termination

Employee turnover Outplacement centers Perks/Severance package/Severance pay Sticky floor syndrone

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Downsizing“No fault” Termination Reasons for downsizing Ways to downsize Alternatives to downsizing

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Reasons for Downsizing Attempt to fix problems Lower costs Increase production Increase efficiency Increased competition Hostile takeovers/attempted takeovers More strict environmental regulations

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Ways to Downsize Cutting back on production Laying off workers/LIFO Eliminating production of

unprofitable products Selling unprofitable products to

other companies Increasing the use of technology

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Alternatives to Downsizing Selling additional stock Selling the company Merging with another company Obtaining a loan Bankruptcy Employee concessions

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Who should go?(during downsizing or layoffs)Factors to consider:

Seniority (number of years with company)

Performance (employee productivity) Conduct

• Contribution to “team” effort• Ability to work well with others• Loyalty to company• Reliability and dependability

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Effects of DownsizingPositive effects:

Improved profits for the company Often provides the “push” for displaced

employees to start their own companies

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Effects of DownsizingNegative effects:

On people who lose jobs:• Suffer loss of income• Suffer psychological trauma• Must job hunt when morale is very low• Must “start over” in a career

On people who remain:• Suffer “survivor guilt”• Become territorial to protect jobs they have• May be overloaded with work• May work many hours of overtime• May spend many hours worrying• May be forced to perform jobs for which they are not

trained

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Effects of DownsizingNegative effects

On the general populace• Bad for public relations within the business

community• Has a rippling effect on other businesses• Hurts the local economy• Possible increase in crime, domestic

violence, welfare, etc.

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How do you fire an employee?“No fault” terminations:

Choose time that creates less pressure for employee (not Christmas)

Supervisor who evaluated employee should terminate him/her

Reassure employee that termination is “no fault” of the employee

Offer severance pay or other perks Offer to write letter of reference

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Benefits and Severance Packages for Laid-off Workers

Provide information to employees as early as possible about what might happen

Provide counselors for workers and families Provide seminars for updating job-seeking skills

(preparing resumes and preparing for interviews) Help laid-off workers find new jobs Offer as many options as possible

Sample severance packages: An opportunity to retire early with full benefits A full year’s salary and full retirement after five years A lateral transfer to a new location A half year’s salary with full benefits, including health

insurance

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Providing Benefits for Laid-off WorkersThe Pros:

Helps keep valuable employees by giving them additional skills

Saves the cost of hiring/training new employees

Improves morale of workers remaining with company

Helping workers find new jobs probably less expensive than unemployment insurance payment or potential legal fees from lawsuits

Retraining decreases need for government programs such as welfare and unemployment

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Providing Benefits for Laid-off WorkersThe Cons:

Workers need to develop their own skills and not depend on employers

Companies are not obligated to laid-off workers

The cost of retraining programs and special benefits cut into the profits of the shareholders

Costs of benefits may cause the business to fail, causing even more workers to lose their jobs

Retraining and job search assistance is the responsibility of government through the use of tax dollars

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Termination for Cause“At fault” Terminations Termination letter Final pay Company property returned Status of any continuing benefits Collect personal items No access to company computer system Non-disclosure agreement, if appropriate Exit interview

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Termination for Cause“At fault” Terminationscontinued Arbitration system/Discipline-

grievance method Formal appeal system Informal appeal system “Hit and miss” method Open door policy method

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How do you fire an employee?“At fault” terminations:

Give employee written warning of unsatisfactory performance or misconduct prior to termination

Keep written documentation of specific problems with employee

Offer no severance pay Keep termination impersonal. Criticize

job performance only!

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Practical Termination/Exit Interview Tips

Be brief and concise Use a private setting Use a third party as a witness—only if

absolute necessary Offer a severance package for “no-fault”

terminations Have employee leave quickly

(immediately) – especially with “at-fault” terminations

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Exit interview helps determine . . . Weak areas in supervisory training Sources of discrimination Inadequate grievance handling

procedures Poor wage and/or benefits

administration Other reasons for employee

dissatisfaction

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Objective BM04.06Describe the role of organized labor and employment laws and their influence on government and business.

Investigate the policies outlined in an employment contract of a union member

Explore how federal legislation affects employment

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Early Labor Conditions“Why labor unions created” Workers regarded as unimportant Low pay Long hours Unsafe working conditions Unhealthy working conditions Employment of young children Impersonal employer/employee

relationship No form of representation

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Explore how federal legislation affects employment EEOC (Equal Employment Opportunity Commission) OFCCP (Office of Federal Contract Compliance Programs) FEPs (fair employment practice laws) Executive Order 11246 Rehabilitation Act of 1973 Vietnam Era Veteran’s Readjustment Assistance Act Civil Rights Acts of 1964 Immigration Reform and Control Act Age Discrimination in Employment Act and Older Workers

Benefit Protection Act Equal Pay Act Pregnancy Discrimination Act Americans with Disabilities Act Other EEO laws Sexual harassment policies

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Who is affected and how?Action Union

(workers)Management(employers)

Others/consumers

Boycott Hurts sales of products

Prices could decrease

Picket Hurts business and public relations

People entering business may be in danger; may affect local economy

Strike Employees don’t get paid if they don’t work

Hurts business and public relations

Others who work may be in danger; may affect local economy; products/services may not be available

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Who is affected and how?Action Union

(workers)Management(employers)

Others/consumers

Injunction Employees forced to stop a specific act

Hiring Nonunion Workers

Regular employees may lose their jobs

May affect the local economy

Lockout Employees don’t get paid if they don’t work

May affect the local economy; products or services may not be available