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Business Essentials, 8th EditionEbert/Griffin
Human Resource Management and Labor Relations
Instructor Lecture PowerPointsPowerPoint Presentation prepared by
Carol Vollmer Pope Alverno College
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
After reading this chapter, you should be able to:1. Define human resource management and explain how
managers plan for their organization’s human resource needs.
2. Identify the tasks in staffing a company and discuss ways in which organizations select, develop, and appraise employee performance.
3. Describe the main components of a compensation system and describe some of the key legal issues involved in hiring, compensating, and managing workers in today’s workplace.
L E A R N I N G O B J E C T I V E SL E A R N I N G O B J E C T I V E S
10-2Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
After reading this chapter, you should be able to:
4. Discuss workforce diversity, the management of knowledge workers, and the use of a contingent workforce as important changes in the contemporary workplace.
5. Explain why workers organize into labor unions and describe the collective bargaining process.
L E A R N I N G O B J E C T I V E S (cont.)L E A R N I N G O B J E C T I V E S (cont.)
10-3Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
What’s in It for Me?
• Why does effectively managing human resources matter to you?
– By understanding the material in this chapter, you’ll be better able to understand:
1. The importance of properly managing human resources in a unit or business you own or supervise
2. Why and how your employer provides the working arrangements that most directly affect you
10-4Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
The Foundations of Human Resource Management
• Human Resource Management (HRM)– Activities directed at attracting, developing, and
maintaining an effective workforce
• The Strategic Importance of HRM– Human resources has a substantial impact on a
firm’s bottom-line performance
– Many firms are developing strategic HR plans
– Chief officer reports to CEO
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Figure 10.1 The HR Planning Process
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HR Planning
Job Description
Lists the duties and responsibilities of a job; its working conditions; and the tools, materials equipment, and information used to perform it
Job Description
Lists the duties and responsibilities of a job; its working conditions; and the tools, materials equipment, and information used to perform it
Job SpecificationJob Specification
Lists the skills, Lists the skills, abilities, and other abilities, and other credentials and credentials and qualifications qualifications needed to perform needed to perform the job effectivelythe job effectively
Job SpecificationJob Specification
Lists the skills, Lists the skills, abilities, and other abilities, and other credentials and credentials and qualifications qualifications needed to perform needed to perform the job effectivelythe job effectively
• Job Analysis– Systematic analysis of jobs within an organization
10-7Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
HR Planning (cont.)
• Forecasting HR Demand and Supply– Internal supply (people who will be in the firm at a
future date)• Replacement charts
• Employee information systems (skills inventories)
– External supply (people who will be available for hiring from the labor market at large)
• State employment commissions
• Government reports
• College information
10-8Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
HR Planning (cont.)
• Matching HR Supply and Demand – Alleviating Shortfalls
• New hires, retraining current employees, retaining retirees, and installing more productive systems
– Managing Overstaffing• Transferring extra employees, not replacing employees
who quit (attrition), encouraging early retirement, laying off personnel
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Staffing the Organization• Recruiting
– Attracting qualified persons to apply for the jobs that are open
– Internal• Considering present employees as candidates for
openings– External
• Attracting people outside of the organization to apply for jobs
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Staffing the Organization (cont.)
• Selecting Human Resources– Application forms—no illegal questions– Tests—ability, skills, aptitude, knowledge, attitude– Interviews—validity is increased by:
• Training interviewers to reduce individual bias• Using a structured interview format
– Other Techniques• Polygraph tests• Physical examinations• Drug tests• Reference checks
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Developing the Workforce
• Training– On-the-job
– Off-the-job
– Vestibule
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Developing the Workforce (cont.)
• Performance Appraisal– Defining performance
standards– Observing performance– Writing up assessment– Discussing appraisal
Performance AppraisalEvaluating job performance
Performance AppraisalEvaluating job performance
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FIGURE 10.2 Sample Performance Evaluation Form
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Compensation and Benefits
• Compensation System– Total package of rewards a company offers
employees• Wages—money paid for time worked• Salary—money paid to perform a job
– Factors affecting compensation• Competitors’ wage offerings• Internal wage and salary
10-15Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Compensation and Benefits (cont.)
• Incentive programs– Special pay programs designed to
motivate high performance– Individual incentives:
• Bonuses• Merit salary systems• Pay for performance (variable pay)
– Company-wide incentives:• Profit-sharing• Gain sharing• Pay-for-knowledge
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Compensation and Benefits (cont.)
• Benefits Programs– Mandatory (required by law)
• Social Security retirement benefits• Workers’ compensation insurance
– Discretionary (optional)• Health, life, and disability insurance• Vacations and holidays• Employee assistance programs• Retirement (pension) plans
– Contain the costs of benefits• Cafeteria benefits plans
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The Legal Context of HRM
• Equal Employment Opportunity Laws– Protect workers from unfair or inappropriate (non-job-
related) discrimination in the workplace
• Protected Classes– Individuals sharing common characteristics defined by law
• Race, color, religion, gender, age, national origin, disability status, and status as a military veteran
• Equal Employment Opportunity Commission (EEOC)– Federal agency that enforces discrimination-related laws
• Affirmative Action– Written plan for actively recruiting, hiring, and developing
members of protected classes10-18Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
The Legal Context of HRM (cont.)
• Contemporary Legal Issues in HRM – Employee safety and health
• Occupational Safety and Health Act of 1970 (OSHA)– Emerging areas of discrimination law
• AIDS in the workplace• Sexual harassment
– Quid pro quo– Hostile work environment
• Employment-at-will– Wrongful discharge
• The Patriot Act– Developed in response to 9/11/2001 – Grants government investigators rights to what was privileged
information– Bars certain “restricted” individuals (i.e., ex convicts, aliens) from
working with restricted biological agents10-19Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
New Challenges in the Changing Workplace
• Managing Workforce Diversity– Workforce diversity:
• The range of workers’ attitudes, values, beliefs, and behaviors that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics
– Organizations are recognizing that diversity can be a competitive advantage
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FIGURE 10.3a Distribution of the Labor Force by Race 1990 – 2050
FIGURE 10.3b Hispanic Share of Civilian Labor
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New Challenges in the Changing Workplace (cont.)
• Managing Knowledge Workers– Knowledge workers add value because of what
they know• Computer scientists• Physical scientists• Engineers
Hiring and retaining Hiring and retaining knowledge workers is a knowledge workers is a
critical HR challengecritical HR challenge
10-22Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
New Challenges in the Changing Workplace (cont.)
• Contingent Workers– A person who works for an organization on
something other than a permanent or full-time basis
• Independent contractors• On-call workers• Temporary employees• Contract and leased employees• Part-time workers
10-23Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
New Challenges in the Changing Workplace (cont.)
• Managing Contingent and Temporary Workers– Careful planning
– Developing a strategy for integrating contingent workers into the organization
– Understanding the advantages and disadvantages of contingent workers
– Assessing the true cost
10-24Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Dealing with Organized Labor
• Labor Union– A group of individuals working together to achieve shared
job-related goals: higher pay, shorter working hours, job security, greater benefits, better working conditions
• Labor Relations– The process of dealing with employees who are
represented by a union
• Collective Bargaining– The process by which union leaders and managers
negotiate common terms and conditions of employment for the workers represented by unions
10-25Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Dealing with Organized Labor (cont.)
• Trends in Union Membership– Since the mid-1950s, membership has declined
at a steady rate.– The percentage of successful union-organizing
campaigns has also declined.
• Trends in Union-Management Relations– In most sectors, unions are in a weakened
position and have taken more conciliatory stances in their relations with management.
10-26Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Collective Bargaining
• Collective Bargaining– An ongoing process involving both the drafting
and the administering of the terms of a labor contract.
• Contract Issues– Compensation– Benefits– Job security– Management rights
10-27Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Collective Bargaining (cont.)
• Union Tactics When Bargaining Fails– Strike– Picketing– Boycott– Work slowdown
• Management Tactics When Bargaining Fails– Lockouts– Strikebreakers
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MediationMediation
Voluntary ArbitrationVoluntary Arbitration
Compulsory ArbitrationCompulsory Arbitration
Collective Bargaining (cont.)
Resolving DisputesResolving Disputes
10-29Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Key Terms
affirmative action plan benefits bonus boycott cafeteria benefits plan collective bargaining compensation system compulsory arbitration contingent worker
cost-of-living adjustment (COLA)
economic strikeemployee information system
(skills inventory) employment at willequal employment
opportunity Equal Employment
Opportunity Commission (EEOC)
10-30Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Key Terms (cont.)
external recruiting gain sharing plan hostile work environment human resource
management (HRM) incentive program internal recruiting job analysisjob description
job specificationknowledge workerslabor relations labor union lockout mediation merit salary system
10-31Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
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