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Operation, Quality & Human Resource Management

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    Human Resource ManagementHuman Resource Management

    Major ComponentsMajor Components1.1. Recruitment & SelectionRecruitment & Selection

    2.2. Training & DevelopmentTraining & Development

    3.3. Performance Appraisal & FeedbackPerformance Appraisal & Feedback

    4.4. Pay & BenefitsPay & Benefits

    5.5. Labor RelationsLabor Relations

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    11-2

    HR ChallengesHR Challenges

    ShortagesShortages

    Unskilled WorkersUnskilled Workers

    UndereducatedUndereducated

    WorkersWorkers Shift in WorkforceShift in Workforce

    CompositionComposition

    Laws & RegulationsLaws & Regulations

    SingleSingle--Parent & TwoParent & Two--Income FamiliesIncome Families

    Attitudes TowardAttitudes TowardWorkWork

    ContinuedContinuedDownsizingDownsizing

    Overseas LaborOverseas LaborPoolsPools

    Customized BenefitsCustomized Benefits

    Employees With NewEmployees With NewConcernsConcerns

    Decreased LoyaltyDecreased Loyalty

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    11-3

    Determining HR NeedsDetermining HR Needs

    1.1. Prepare HRPrepare HRInventoryInventory

    2.2. Prepare JobPrepare JobAnalysisAnalysis

    JobJobDescriptionDescription

    JobJobSpecificationSpecification

    3.3. Assess HRAssess HRDemandDemand

    4.4. Assess HRAssess HRSupplySupply

    5.5. EstablishEstablishStrategic PlanStrategic Plan

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    Hiring ProcessHiring Process

    RecruitRecruit

    SelectSelect

    Application FormApplication Form InterviewInterview

    TestTest

    InvestigateInvestigate

    ExamineExamine

    ProbationProbation

    Train/DevelopTrain/Develop OrientationOrientation

    OJTOJT

    ApprenticeshipApprenticeship

    OffOff--TheThe--Job TrainingJob Training

    Online TrainingOnline Training

    Job SimulationJob Simulation

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    HR ExecutivesHR Executives

    Recruiting PreferencesRecruiting Preferences

    0% 10% 20% 30% 40% 50% 60% 7

    Referrals

    Internet/Job Boards

    Classified Advertising

    Internal Recruiters

    Professional Association

    Staffing/Recruiting Agency

    Temp-to-Hire Engagement

    Source: USA Today

    Note: Multiple

    responses allowed

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    Applicants MistakesApplicants Mistakes

    14%

    32%

    21%

    6% 7%

    9%

    9%

    2%In

    u

    o L

    n h

    In Fo o up

    S n ng

    O h

    o o Kno

    Source: USA Today

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    11-7

    Interviewing MistakesInterviewing Mistakes

    35

    18

    2549

    Littl / lf

    ti l

    Li it t i

    t t

    tiill / i

    Source: USA Today

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    11-8

    NumberInterviewed toNumberInterviewed to

    Find Quality HireFind Quality Hire

    0% 10% 20% 30% 40% 50%

    More than 10

    7 to 10

    4 to 6

    2 to 3

    One

    Source: USA Today, January 24, 2005

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    11-9

    Training & DevelopmentTraining & Development

    Assess NeedsAssess Needs

    Design TrainingDesign Training

    Evaluate EffectivenessEvaluate Effectiveness

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    Training MethodsTraining Methods

    1.1. Employee OrientationEmployee Orientation

    2.2. OnOn--TheThe--JobJob

    3.3. ApprenticeshipApprenticeship4.4. OffOff--TheThe--JobJob

    5.5. OnlineOnline

    6.6. Job SimulationJob Simulation

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    Management DevelopmentManagement Development

    or HRD

    evelop

    mentor HRD

    evelop

    ment OnOn--TheThe--JobJobCoachingCoaching

    UnderstudyUnderstudy

    Job RotationJob Rotation

    OffOff--TheThe--Job CoursesJob Courses& Training& Training

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    11-12

    Performance AppraisalPerformance Appraisal

    1. Establish Standards

    2. CommunicateStandards

    3. EvaluatePerformance

    4. Discuss Results

    5. Take Corrective

    Action

    6. Use Results to Make

    Decisions

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    11-13

    Compensation & BenefitsCompensation & Benefits

    Program ObjectivesProgram Objectives Attract the right peopleAttract the right people

    Employee incentivesEmployee incentives

    Retain valued employeesRetain valued employees

    Maintain competitivenessMaintain competitiveness

    Financial security forFinancial security for

    employeesemployees

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    Pay SystemsPay Systems

    SalarySalary

    Hourly wage andHourly wage and

    dayworkdaywork Piecework systemPiecework system

    Commission plansCommission plans

    Bonus plansBonus plans

    ProfitProfit--sharingsharing

    plansplans GainGain--sharing planssharing plans

    Stock optionsStock options

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    11-15

    Vacation Days Per YearVacation Days Per Year

    13

    25

    25

    26

    28

    34

    35

    37

    42

    0 10 20 30 40 50

    USA

    Japan

    Kor a

    Canada

    UK

    Brazil

    r any

    France

    I aly

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    11-17

    Telecommuting:Telecommuting:

    Affect on CareerAffect on Career

    6%

    25%

    30%

    39%

    No Affect

    Help

    Hurt

    Not Sure/NoAnswer

    Source: USA Today

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    11-18

    How Employers AreHow Employers Are

    Becoming FlexibleBecoming Flexible

    0 20 40 60 80 100

    Empl yee Schedule Thei Own

    Vacati n

    Pe mit Time Off T Deal With

    Pe nal I ue

    Offe Flexible W k Schedule

    G Out Of Thei Way t

    Acc mm date Child ca e I ue

    Source: insala.com, April 2005Source: insala.com, April 2005

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    11-19

    Benefits ofBenefits of

    Providing FlexibilityProviding Flexibility

    0% 20% 40% 60% 80% 100%

    Better RelationsWith Workers

    Higher Employee

    Job Satisfaction

    Higher Employee

    Retention

    Source: Insala.com, April 2005

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    Why is Retention

    Important?

    Employee turnover could cost up to 40%Employee turnover could cost up to 40%of a companys annual profitsof a companys annual profits

    The average company loses $1 millionThe average company loses $1 millionwith the loss of every ten managerialwith the loss of every ten managerialemployeesemployees

    Turnover costs are 50%Turnover costs are 50%--100% of the ex100% of the ex--employees annual salaryemployees annual salary

    Source: insala,com, April 2005

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    Companies Aid to

    Disabled Employees

    0% 10% 20% 30% 40% 50%

    Change ofResponsibilities

    Change of Hours

    Job

    Reassignments

    Renovate

    Workplace

    Source: USA Today


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