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Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ١
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
Chapter Chapter 99Managing Human Resources and Labor Relations
Human Resource ManagementHuman Resource Management
Attracting, developing, and maintaining an effective workforce
A critical, bottom-line function!
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٢
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
Who is responsible for HRD?Who is responsible for HRD?
óDepends on the size of the organization.
steps of human resource planningsteps of human resource planning
.١Job analysis. The systematic review of jobs within an organization.
.٢Forecasting demand for labor within the organization, based on past human resource
usage, future organizational plans, and general economic trends.
.٣Forecasting the internal and external supply of labor.
.٤Matching demand with supply, and planning how to most effectively manage projected
shortfalls and surpluses.
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٣
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
Human Resource Planning ProcessHuman Resource Planning Process
Conduct analysisConduct analysis
Forecast Forecast demand demand for laborfor labor
Forecast Forecast internal supply internal supply
of laborof labor
Forecast Forecast external external supply of supply of
laborlaborDevelop plan to Develop plan to match demand match demand
with supplywith supply
Job AnalysisJob AnalysisSystematic Review of Jobs Within a FirmSystematic Review of Jobs Within a Firm
Job DescriptionJob DescriptionResponsibilities and working conditions, plus tools, Responsibilities and working conditions, plus tools,
materials and equipment to perform the jobmaterials and equipment to perform the job
Job SpecificationJob Specification\\requirement requirement Skills, abilities,Skills, abilities, and credentialsand credentials\\qualifications qualifications needed to perform the jobneeded to perform the job
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٤
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
discussion discussion
óWhy job description is necessary? .١Avoid overlapped and duplications..٢Achieve employees high morals. .٣Responsibility is clearly identified.
Forecasting Labor SupplyForecasting Labor Supply
InternalInternal ForecastingForecasting◦◦Replacement ChartsReplacement Charts
◦◦Skills InventoriesSkills Inventories
ExternalExternal ForecastingForecasting◦◦State Employment State Employment
CommissionsCommissions
◦◦Government ReportsGovernment Reports
◦◦College InformationCollege Information
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٥
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
Forecasting Labor SupplyForecasting Labor Supplyómeans determining the number and Forecasting the internal labor supply
type of employees who will be in the firm at some future date.ómanagement tools:١.: List each key management position, who occupies it, Replacement charts
how long that person will likely stay in the job, and who (by name) is qualified as a replacement.
٢.: Computerized information systems containing Skills inventoriesinformation about each employee’s education, work experience, and career
aspirations.óForecasting the external labor supply means determining the number and
type of employees who will be available for hiring from the labor market at sources can help:large.
.١State employment commissions e.g. job centers.
.٢Government reports
.٣College information regarding enrollment in various majors
Managing a Projected Shortfall how? Managing a Projected Shortfall how?
óHire new employees, if people are indeed available in the external market.
óConsider hiring temporary workers, especially if the shortfall appears short-term or uncertain.
óRetrain and transfer current employees into understaffed areas, providing a morale boost to strong employees.
óConvince older workers not to retire, which usually requires strong financial incentives.
The creative solution: Develop and install productivity enhancing The creative solution: Develop and install productivity enhancing systemssystems
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٦
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
External RecruitingExternal RecruitingAttracting outside Attracting outside candidates to apply candidates to apply for jobsfor jobs
RecruitingRecruitingAttracting Qualified Candidates to Apply for a JobAttracting Qualified Candidates to Apply for a Job
Internal RecruitingInternal RecruitingConsidering current Considering current employees for new employees for new
positionspositionsWhat are the What are the strengths and strengths and weaknesses of weaknesses of each approach?each approach?
RecruitingRecruitingó: Attracting qualified candidates to Recruiting
apply for the jobs an organization is seeking to fill. Recruiting can be either internal or
external. ١.: Considering current Internal recruiting
employees for new positions. Tools may include job postings, skills inventories, and
recommendations from managers.٢.: Attracting outside External recruiting
candidates to apply for jobs. Tools may include advertising, campus interviews, employment
agencies, executive search firms, and referrals from current employees.
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٧
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
Discussion Discussion
óWhat are the strengths and weaknesses of the internal and external recruitment?
Selecting Human ResourcesSelecting Human Resources١.: applications are often used to screen Application forms
out applicants who do not merit further attention.٢.: Many organizations test ability, skill, Tests
aptitude\ability, or knowledge that is relevant to a specific job. Occasionally, organizations also test general
intelligence and personality. Other types of tests include polygraphs (i.e. lie detector tests).
٣.: Interviews are very popular, but not always Interviewspredictive of job success because of potential bias on
the part of interviewers. Structured interviews—when all interviewers ask all candidates the same questions—
improve the validity of interviews as a selection technique.
ó: How effectively does the information you Validitygather predict the future performance of a candidate?
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٨
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
Developing the Workforce through training Developing the Workforce through training
ó: Conducted while the employee is at job training-the-Onwork. Can be either formal or informal.
ó: Takes place away from the worksite, job training-the-Offtypically in a classroom setting.
ó: Performed in a simulated environment Vestibule training(e.g. often used to train pilots, or machine-operators).
ó: Evaluating job evaluation\Performance appraisalperformance to determine effectiveness. Appraisals are often used to determine raises, promotions, demotions,
and firings.
Compensation and BenefitsCompensation and BenefitsóA major factor in attracting and retaining skilled
employees is a organization’s compensation system:
ó: The total package it offers Definitionemployees in return for their labor.
óIn determining compensation, companies usually start by examining the compensation offered by
their competitors.ó: Money paid for time worked. Usually Wages
expressed on an hourly basis.ó: Money paid for accomplishing a specific Salary
job. Usually expressed on a yearly basis.
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ٩
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
BenefitsBenefitsCompensation Other Than Wages and SalariesCompensation Other Than Wages and Salaries
Optional Benefits, to workerOptional Benefits, to worker◦◦Retirement plans: provide pensionsRetirement plans: provide pensions◦◦Health, life, & disability insuranceHealth, life, & disability insurance◦◦Vacations & holidaysVacations & holidays◦◦Counseling servicesCounseling services
Mandatory BenefitsMandatory BenefitsSocial securitySocial security
Workers’ compensationWorkers’ compensation
Incentive programsIncentive programsóThey are designed to motivate high
performance. They include:.١Bonus: paid when they sell certain
number of goods or services for the year.
.٢Merit salary system: individual incentives linking compensations to performance in
nonsales jobs. E.g., CEO receive stock options as incentives for his managerial
talent.
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ١٠
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
Equal OpportunityEqual OpportunityUnfairUnfair Discrimination Is Not LegalDiscrimination Is Not Legal
Equal Opportunity LawsEqual Opportunity LawsProtect workers from discrimination based on prejudice Protect workers from discrimination based on prejudice
Protected ClassProtected ClassPeople with common characteristics as indicated by lawPeople with common characteristics as indicated by law
Equal Employment Opportunity Commission Equal Employment Opportunity Commission (EEOC):(EEOC):
Federal agency that enforces discriminationFederal agency that enforces discrimination--related lawsrelated laws
Affirmative ActionAffirmative ActionPlan to hire and develop members of protected classesPlan to hire and develop members of protected classes
Managing Knowledge WorkersManaging Knowledge Workers
Knowledge workers add value because of what they know
◦Computer Scientists
◦Physical Scientists
◦Engineers
Hiring and retaining knowledge workers is a critical HR challenge
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ١١
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
Developing a ManagementStrategy
AssessingTrue Costs
UnderstandingPros & Cons
Contingent WorkersContingent WorkersA Rapidly Growing TrendA Rapidly Growing Trend
Management challenges:
CarefulPlanning
Labor RelationsManaging unionized
employees
Managing Organized LaborManaging Organized Labor
Labor UnionLabor UnionPeople working together to achieve shared jobPeople working together to achieve shared job--related related
goalsgoals
Copyright © 2003 Prentice Hall, Inc. Chapter 9 - ١٢
Business Essentials 4/e Ronald J. Ebert & Ricky W. Griffin
Chapter ReviewChapter Review
óDiscuss important changes in the contemporary workplace
óExplain why workers unionize and discuss the collective bargaining process