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Business Policy & Strategy Chapter 11
Human Resources
Murdick, Moor, Babson & Tomlinson
Sixth Edition, 2000
Functional Area – Human Resources
Changing Environment
Human Resource Manager (HRM)
Identifying Problem Areas
Relating People with Problems
Checklist for Analysis
Most problems in businesses are people problems
That’s why HR is so important.
But it is not what it used to be!
Changing Environment
Workforce 75% Services 50% Women by
2005
Social Factors Better Educated Low Tolerance
Social Changes Drug abuse Alcoholism Aging workforce Sexual harassment
(Beer company lost suit awarding $24 Million dollars!)
Conditional Employment
Labor Management Relations15% Manufacturing is unionizedLess Unionizing in recent elections but
some increase in the services area
Legal2-3 Lawyers per 100 PeopleLaw Suits too Costly
Conditions of Employment
ProductivityWorkers ControlReward System
Computer ImpactsHigh Volume Record keepingHigher Technology/Higher EducationAble to search by key words/skills
Conditions of Employment
Health and Safety (OSHA)
Job security – seniority versus merit
Flex time, Changing work week
Part-time employment
Health, Safety & Security
HealthEmployee assistance programs, health
policies, stress management, smoking policies, preventative screenings,
SafetyAccidents, inspections (OSHA 100 report)
SecurityControls, theft, fraud, investigations
Human Resource Manager
What are they concerned with? Proposing concepts, means, and policies for
increasing productivity as part of company
strategy.
Keeping line managers abreast of the legal
environment as it pertains to managing
people.
Human Resource Manager
What are they concerned with?
Decision making related to managing
personnel, keeping records, and preparing
reports related to human resource
management.
HRM Functional Activities
Planning for Human Resource Needs
Work Design and Job Analysis
Recruitment of Candidates
Organization Development
Selection Criteria
Academic Tests
Motivation TestsPersonal ValuesSelf-MotivationCareer PerformanceLife Purpose
Selection Criteria
Tests to Ensure Applicants can perform the essential duties of the job. For example, fast food restaurants may require applicants to lift 50# bags as many of the material (frozen French fries) are very heavy.
Job tests must be proven to be linked to performance to be legally used
Recruitment
Types of recruitment programs:Continuous or intermittent
From within or outside
EEO and Affirmative Action Policies
Identified sources of candidates
Adequate job specifications
Cost-effective
Work Design & Job Analysis
Clearly defined job qualifications
Claims of discrimination
“Comparable Worth”
Compensation and appraisal
Staffing
Affirmative action and EEO
Recruitment
Selection
Career planning & development
Organizational exit (interviews)
HRM Functional Activities
Developing Communications Formal mass communications system
Informal communications
Person to person system Up and down the organization
Individual Training and Development Inexperienced
Entry level or Recent graduates Trained
Interns Outside the company
Career Management
ApproachesNothing “Ask” BasisPromote
Different PoliciesHire young and train? Hire experience?High Turnover (soft costs)Low Payroll (hard costs)
HRM Functional Activities
Appraising Performance
360 degree
Monthly (informal) & semi-annual (formal)
Compensation and BenefitsWage Rates Minimum Wage entry level or Above Minimum
Compensation Comparison to Industry Higher Lower Same Meet, lead or lag the market rate
HRM Functional ActivitiesLabor-Management Relations and Collective Bargaining
Measuring and ReportingStatusProblemsTrendsMaking recommendations for the above
Non-Financial Rewards
EXTRINSIC
Paid vacations
Life insurance
Retirement program
Health insurance Cafeteria approach
Flexible approach Employee specific
INTRINSIC
Internal rewards such as the feeling of a job well done, of accomplishing something, etc.
Certification in the HRM field
Professional in Human Resources Certification through Society for Human Resource Management (SHRM)
Senior Professional In Human Resources CertificationCertification Received Through the HR
Certification Institute
Identifying Problem AreasMost Business Problems:Misplaced people in managementOften top management
Human Resources ManagementLess understoodPoorly executed
Identifying Problem AreasStep 1 – Identify who/what process is causing the problem?
Step 2 – Shift people to positions where:The firm can build on their strengthsWork to improve on their weaknesses or they
must be terminated.
Identifying Problem Areas
Generally, it’s the SYSTEM not the people
that are the problems so….
Management Training and DevelopmentConduct on-the-job coaching
Brief on-site or outside seminars
Management development programs
Linking People With ProblemsIn-Depth InterviewsKey people connected with problem
Weak Link Several People or Everyone Involved
Personal Conflicts to Surface Lack/Block of Communication Sabotage
Linking People With Problems
Start with SymptomsWork Backwards to Identify Responsible
Party(s)
Evaluate ExecutivesBackground and PerformanceMajor Decisions, Contributions, and MistakesViews and Philosophies
Linking People With Problems
Relate the Individual to all Problem Areas
Analyze ProblemRecommend Action for Each Person
Identify Individual’s Potential
October 24, 2000
Checklist for Analysis
Work Design and Job Analysis
The Legal Environment
Comparable Worth
Functional Job Analysis
Performance Appraisal and
Compensation
October 24, 2000
Checklist for Analysis
Developing Communications
Formal Communication System
Informal Communication System
Person-to-Person Communication
October 24, 2000
Checklist for Analysis
Compensation and Benefits
The Reward System
Achieve Personal Objectives
Financial and Non-Financial
Rewards