human resource management: from recruitment to …bus.msjc.edu/portals/22/caren/16ed/ch08.pdf ·...

Human Resource Management: From

Recruitment to Labor Relations

www.wileybusinessupdates.com

Copyright 2015 John Wiley & Sons, Inc.

Copyright © 2013 Pearson Education, Inc.

Publishing as Prentice Hall

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Chapter 8

http://www.wileybusinessupdates.com/

Learning Objectives


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Explain the role of human resources: the people

behind the people.

Describe recruitment and selection.

Discuss orientation, training, and evaluation.

Describe compensation.

Discuss employee separation.

Explain the different methods for

motivating employees.

Discuss labor-management relations.

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Human Resource Management


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To achieve a high level of job satisfaction and dedication among employees

Attracts, develops, and retains employees to perform the jobs necessary to

accomplish organizational objectives

Plan for staffing needs

Recruit and hire workers

Provide for training and evaluate performance

Determine compensation and benefits

Oversee employee separation

Human Resource Management Responsibilities


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Objectives of HR Managers


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Providing qualified, well-trained employees for the organization

Maximizing employee effectiveness in the organization

Satisfying individual employee needs through monetary

compensation, benefits, opportunities to advance, and job

satisfaction

Recruitment and Selection

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Recruiting techniques continue to evolve as technology advances.

In addition to a company’s website, Internet recruiting is quick,

efficient, and inexpensive.

Reach a large pool of job seekers – www.indeed.com

Use social networking sites - www.linkedin.com

HR must be creative in searching for qualified employees.

Businesses look both internally and externally.


http://www.linkedin.com/

http://www.linkedin.com/

Steps in the Recruitment and Selection Process

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Selecting and Hiring Employees

Copyright (c) John Wiley & Sons, Inc.

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Must follow legal requirements

Title VII of the Civil Rights Act of 1964

Americans with Disabilities Act of 1990

Equal Employment Opportunity Commission programs

Civil Rights Act of 1991

Understanding the laws is important

Hiring is a costly process

Some employers require employment tests

http://www.ada.gov/pubs/ada.htm



http://www.eeoc.gov/

http://www.eeoc.gov/laws/statutes/cra-1991.cfm

http://www.eeoc.gov/laws/statutes/cra-1991.cfm

Orientation, Training, and Evaluation

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Newly-hired employees complete an orientation program

Includes information about company policies

Describes employee rights and benefits

Benefits/programs

Employees may receive an employee manual

Training programs provide skill building and knowledge. Types of

training:

On-the-Job Training

Classroom and Computer-Based Training

Management Development


Performance Appraisals

Performance appraisals are used to evaluate an employee’s job performance

Feedback is intended to improve performance

Decisions about compensation, promotion, training needs, transfers, and even

termination are made

One type of performance review is a 360-degree performance review

To be effective, performance reviews should be:

Linked to organizational goals

Be based on objective criteria

Take place in the form of a two-way conversation

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Compensation

The amount employees are paid in money and benefits

Impacts job satisfaction

Wages refer to hourly pay (factory workers)

Salaries refer to annual pay (professionals)

Compensation decisions are based upon:

What competitors are paying

Government regulation

Cost of Living

Company profits

Employee’s productivity

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Forms of Incentive Compensation

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Employee Benefits

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In addition to wages and salaries, benefits to employees and their families as part of

their compensation. They include:

Vacation

Retirement plans

Profit-sharing

Health insurance

Gym memberships

Child and elder car

Tuition reimbursement

Benefits required by law include Social Security and Medicare contributions


Average Costs for Employee Compensation

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Flexible Benefits

Benefits plans must be tailored to the needs of a diverse employee base

Employees can choose from a wide range of options for medical, dental,

vision, life, disability, etc.

Flexible benefit plans are also known as cafeteria plans

Each employee receives a set allowance (flex dollars or credits) to pay for

benefits to match needs.

Many companies have flexible time-off policies such as PTO or Paid-time-

off

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Flexible Work

Benefits that allow employees to adjust their working hours or place

of work

Flextime

Compressed workweek

Job-sharing

Home-based work (telecommuting)

Results is reduced turnover and absenteeism

Critical in attracting and retaining talent

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Employee Separation

The loss of an employee for any reason

Voluntary turnover is when an employee resigns – many times, to

take another job

Exit interview – provides valuable information

Involuntary turnover is when an employee is terminated due to

poor job performance, unethical behavior, downsizing, or

outsourcing

Occurs when firms are forced to eliminate jobs

A cost-cutting measure

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Downsizing and Outsourcing

Downsizing is the hard choice of eliminating jobs (reducing employees)

due mainly to cut costs

Can be accomplished with early retirement plans or voluntary severance

programs

Downsizing can have negative effects

Outsourcing – another way to create a leaner organization by transferring

jobs from inside a firm to the outside.

Types of jobs outsourced: office maintenance, security, data processing,

manufacturing, design.

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Motivating Employees


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Employers look for ways to motivate employees to perform at their peak

Motivation begins with high employee morale – a positive attitude towards the

job

High morale - good management and the ability to understand human needs

Low morale - a poor relationship between managers and employees

Managers use extrinsic (pay, benefits, praise) and intrinsic (pride/achievement)

rewards to motivate

Maslow’s Hierarchy of

Needs Theory

Maslow’s Hierarchy of Needs: people have five levels of needs that they

seek to satisfy.

A satisfied need is not a motivator; only needs that remain unsatisfied can

influence behavior.

People’s needs are arranged in a hierarchy of importance; once they

satisfy one need, at least partially, another emerges and demands

satisfaction.

Physiological needs

Safety needs

Social (belongingness needs)

Esteem needs

Self-actualization needs

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Copyright John Wiley & Sons, Inc.

Herzberg’s Two-Factor Model of Motivation

Hygiene Factors (extrinsic) result

in satisfaction

Job Environment

Salary

Job Security

Personal Life

Working Conditions

Status

Interpersonal Relations

Supervision

Company Policies

Motivator Factors (intrinsic), if

present, can produce high levels of

motivation

Achievement

Recognition

Advancement

The Job Itself

Growth Opportunities

Responsibility

Copyright (c) 2015 John Wiley & Sons, Inc.

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Expectancy Theory and Equity Theory

Expectancy theory describes the process

people use to evaluate the likelihood that their

efforts will yield wanted results, and the

degree to which the results are desired.

Equity theory is an individual’s perception

of fair and equitable treatment in terms of

effort and rewards.


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Goal Setting Theory

People will be motivated to the extent to

which they accept specific, challenging

goals and receive feedback that

indicates their progress toward goal

achievement.

Basic components:

Goal specificity

Goal difficulty

Goal acceptance

Performance feedback


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Management by Objective

Copyright (c) 2015 John Wiley & Sons, Inc.

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A goal-setting technique introduced by Peter Drucker

Allows managers to focus on attainable goals and to achieve the best results

based on the organization’s resources

Aligns individual’s objectives with the goals of the organization, increasing

overall organizational performance.

Outlines tasks, goals, and contributions.

A collaborative process between managers and employees

Job Design & Motivation


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Three ways jobs can be restructured to be more motivating:

Job enlargement: job design that expands an employee’s responsibilities by

increasing the number and variety of tasks assigned to the worker

Job enrichment: involves an expansion of job duties that empowers an

employee to make decisions and learn new skills leading toward career

growth

Job rotation: involves systematically moving employees from one job to

another.

Managers’ Attitudes & Motivation

Managers make two assumptions about employees:

Theory X - assumes that employees dislike work and try to avoid it

whenever possible, so management must coerce them to do their jobs.

Theory Y - assumes that the typical person actually likes work and will

seek and accept greater responsibility.

William Ouchi’s Theory Z

worker involvement is key to increased productivity for the company

and improved quality of work life for employees.

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Labor Management Relations

Labor Union – a group of workers who have banded together to

achieve common goals in the areas of wages, hours, and

working conditions

Found at local, national, and international levels

12% of the nation’s full-time workforce belongs to labor unions

1/3 government workers, 8% of private sector

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Labor Legislation


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National Labor Relations Act of 1935 (Wagner Act) legalized collective bargaining and required

employers to negotiate with elected representatives of their employees.

Fair Labor Standards Act of 1938 set the initial federal minimum wage and maximum basic

workweek for workers engaged in interstate commerce; outlawed child labor.

Taft-Hartley Act of 1947 (Labor-Management Relations Act) limited unions’ power by prohibiting a

variety of unfair practices, including coercing employees to join unions and coercing employers to

discriminate against employees who are not union members.

Landrum-Griffin Act of 1959 (Labor-Management Reporting and Disclosure Act) amended the

Taft-Hartley Act to promote honesty and democracy in running unions’ internal affairs.

http://www.nlrb.gov/Workplace_Rights/i_am_new_to_this_website/what_is_the_national_labor_relations_act.aspx

http://www.opm.gov/flsa/overview.asp

http://www.dol.gov/compliance/laws/comp-lmrda.htm



Collective Bargaining


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Process of negotiation between management and union

representatives, and issues can include:

Wages

Work Hours

Benefits

Union Activities and Responsibilities

Grievance handling and arbitration

Layoffs

Employee rights and seniority

Settling Labor-Management Disputes

Most labor-management negotiations result

in a signed agreement without a work

stoppage.

On average, 20 or fewer negotiations involve

a work stoppage.

Mediation is the process of settling labor-

management disputes through

recommendations of a third party.

Arbitration adds a third party who renders a

legally binding decision.

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Competitive Tactics of Union and Management

Union Tactics

Strikes – temporary work stoppage by employees until a dispute has

been settled or contract signed

Picketing – workers marching in public protest against their employer

Boycott – organized attempt to keep the public from purchasing a

firm’s goods and services.

Management Tactics

Lockout – a management strike to put pressure on union members by

closing the firm.

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Future of Labor Unions

Membership and influence are declining, caused by a shift from

manufacturing industries to information and service businesses.

8% of private-sector workers are union members, but that is down from

17% in 1983.

52% of union members are government employees.

Unions need to be more flexible and adapt to a global economy and

diverse workforce.

Unions can recognize the potential for prosperity for all—management

and union workers included.

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