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Human Resources ManagementCompetency BM004Explain human resource functions and their importance to an organization’s successful operation
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Objective BM04.01Evaluate recruitment sources and selection tools available to staff and organization.
Identify needs of the company Examine methods of recruiting employees Outline the basics of hiring employees Outsourcing
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Identify needs of the company Job analysis Job description – basic tasks Job specification – qualities needed Job design Job enlargement Job enrichment Job security
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Why job descriptions? Employees know what is expected of
them Employers know what they can expect Focus given to recruitment and selection
process Justification for pay decisions, promotions,
and disciplinary action Helpful to know before and after a
company re-organization
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Methods of Recruiting Employees Newspaper ads Headhunters Internet Employee referrals Flyers in college placement centers Job fairs Professional organizations Employment agencies Hidden market method Networking
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The Basics of Hiring Employees Applications Resumes Interviews Advantages of hiring
Internally Externally
Other selection tools
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The basics of . . .
Applications Completion Good written communication skills
Resumes Education Experience Achievements Skills Good written communication skills
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The basics of interviews in hiring employeesThe purpose of the interview is to . . . Confirm information on application and/or
resume Assess candidate on oral communications
skills Gather information on human relations
skills Provide information about the company
and the job
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Tips for Interviewer Greet applicant cordially Introduce yourself Seat him/her comfortably Establish rapport Limit your own talking Think like the applicant Don’t interrupt Concentrate Take notes Evaluate oral communications skills
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Risky Interview Topics Ethnic/National origin Disabilities Family and family plans Previous workers’ compensation
claims Work missed due to illness Off-the-job activities Age
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Advantage of hiring . . .Internally:
Less money spent on training (already knows company and its policies)
Higher level of knowledge about company and its activities among employees
Firsthand knowledge of employee performance
Attractive addition for benefits package Good way to reward good employees Creates loyalty among employees
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Advantages of hiring . . .Externally:
Provides company with fresh, new ideas Competition from the outside keeps
company employees performing at a high level
Decreases internal back stabbing Provides a broader talent pool
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Other Selection Tools Management assessment centers Aptitude tests Background investigations Reference checks
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Outsourcing
Legal Transportation Catering Printing
Advertising Accounting Auditing Security
Hiring an outside firm to perform specific services under contract Typical services outsourced
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OutsourcingAdvantages:
Savings in cost and efficiency Reduced overhead Concentrate on core activities of
business Better quality skills in outsourced
services Flexibility in staffing and operations
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OutsourcingDisadvantages:
Reduce breadth of organization Require extra care in coordinating with
outsource firm Reduce ability to integrate processes within
the firm Lose some control over outsourced services Decrease morale and motivation of employees
(jobs lost) Increase employees’ insecurity
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Objective BM04.02Discuss the benefits of training and development in lifelong learning as they relate to successful employee performance.
Analyze different needs for training Consider learning styles and examine
ways to provide training Explain ways to evaluate training
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Analyze different needs for training Know-how skills deficit
New employee orientation Employee promoted to new position Enable employee to perform more and higher
quality work General training needs for all employees
New equipment New operations New procedures
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Consider learning styles and examine ways to provide training Three major learning styles Ways to provide training
Classroom Online or computerized Books and printed materials On the job (with mentor) Just-in-time training Vestibule training Cross training
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Three Types of Learning Styles Visual learner
Learns through seeing Prefers to sit at the front Learns best from visuals and handouts
Tactile/Kinesthetic learner Learns through moving, doing, touching Prefers a hands-on approach May find it difficult to sit for long periods
Auditory learner Learns through listening Prefers lectures and discussions Benefits from reading text aloud and using a tape
recorder
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Classroom Training Train large groups Low cost Orientation for job Introduce new procedures
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Online or Computerized Training Low cost Employees work at their own pace Employees work on course during
free time
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Books and Printed Materials Employees can study in their free
time Low cost Can be used as follow-up to
classroom training
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On-the-job Training Apprenticeship Advantages – disadvantages in
providing training on the job Cross-training (job rotation) Effective for learning hands-on tasks
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Just-in-time Training Employees learn the skills or
procedures just before they are to use them on the job
May choose from a variety of training methods (classroom, online, etc.)
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Vestibule Training Expense of setting up training area Simulation of real environment but is
NOT like the real environment (interruptions and interactions with others excluded)
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Cross Training Employees trained to perform more
than one job Helpful when absence or illness
occurs Provides change and variety for
employees Employee more valuable to
company
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Ways to Evaluate Training Evaluation survey Testing Improved job performance
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Objective BM04.03Examine the employee evaluation process and its impact.
Determine the purposes for employee evaluation
Explore the steps in the performance review process
Analyze scoring methods for evaluation instruments
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Purposes for Employee Evaluation Emphasize strengths and identify
areas for improvement Discuss job-related issues Pay increases Promotions Dismissals Reprimands
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Steps in the Performance Review Process Know-how skills Evaluation criteria Evaluation expectations published Conducting performance evaluation Interview about evaluation Report on evaluation results Evaluate performance review
process
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Performance Review Categories Attitude toward job Attitude toward co-workers Attendance Tardiness Ability to follow directions Willingness to take initiative Ability to make good judgments
Productivity Quality of work Dependability Personal grooming Ability to get along well with others Willingness to improve through education and
information about the job
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Conducting Performance Evaluations By managers Self-evaluation By team members By customers (where appropriate) 360-degree feedback Performance testing
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Scoring Methods for Evaluation Instruments Checklist Ranking Forced distribution (like Bell curve) Performance rating scale
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Tips for Constructive Feedback Be honest Give positive as well as negative feedback Be courteous Frame criticism in a positive manner Explain reasons for negative feedback Give feedback in day-to-day work
situations
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Objective BM04.04Discuss compensation plans, benefit packages, and incentive programs available to employees.
Discuss compensation plans Define the term “benefit” Explain benefits mandated by law Discuss advantages of optional benefits
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Compensation Plans Wage – a certain amount paid for each
hour worked Piecework – a set amount for each piece
completed Salary – a certain amount each week or
month regardless of the number of hours worked
Commission – a certain percentage of the value of sales
Contract labor – a certain amount for one completed job
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Compensation Planscontinued Comparable worth Overtime pay
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BenefitFinancial compensation other than wages, salaries, and incentives
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Benefits Mandated by Law Worker’s Compensation Unemployment Compensation Social Security Medicare COBRA Family and medical leave Minimum wage
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Advantages of Optional Benefits Health insurance
Medical Dental Vision
Paid time off (vacations, sick leave, comp time, holidays)
Flexible spending accounts Flexible benefit plans Paid leave for new parents Extrinsic rewards/Leisure
activities Use of company car Scholarships for employees’
children Free/discounted products or
services Relocation benefits
Retirement/pension plans Childcare Profit-sharing plans Employee assistance
programs Stock options Education/Tuition
reimbursement Life insurance Credit union Exercise/Wellness programs Shared time Move mate/Relocation Bonuses/incentives Disability insurance Intrinsic rewards Telecommuter
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Objective BM04.05Investigate the criteria used in the promotion, transfer, discipline or release of employees.
Consider possible criteria for job promotion
Examine characteristics of job transfer Explore the procedures used for discipline Consider forms of release
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Possible Criteria for Job Promotion Tenure/Seniority Additional training Ability to get along well with people Exceptional performance Ability to adapt to new situations Leadership ability Good personal qualities Good work habits Glass ceiling (barrier) Company loyalty
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Characteristics of Job Transfer Company rules/procedures to follow Advantages of a transfer Disadvantages of a transfer
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Procedures Used for Discipline Act promptly on problem Document problem Interview employee Create plan to improve situation Follow up on status of problem
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Kinds of Problems Intergroup conflict Interpersonal conflict Negative reinforcement Organizational conflict Pilferage
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Tips for Handling Discipline If conduct violates a written rule
Immediate discipline, or Progressive discipline
Disciplined for such conduct in the past? Consider employee’s length of service
Probationary (more severe discipline?) Long-term employee (less severe discipline?)
Employee given notice of rule violation? Union activity or charge of discrimination
filed? Have CEO review discharge decision
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Issues Related to Job Release Voluntary (resignation) Involuntary
Downsizing – “No fault” termination Termination for cause – “At fault” termination
Employee turnover Outplacement centers Perks/Severance package/Severance pay Sticky floor syndrone
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Downsizing“No fault” Termination Reasons for downsizing Ways to downsize Alternatives to downsizing
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Reasons for Downsizing Attempt to fix problems Lower costs Increase production Increase efficiency Increased competition Hostile takeovers/attempted takeovers More strict environmental regulations
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Ways to Downsize Cutting back on production Laying off workers/LIFO Eliminating production of
unprofitable products Selling unprofitable products to
other companies Increasing the use of technology
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Alternatives to Downsizing Selling additional stock Selling the company Merging with another company Obtaining a loan Bankruptcy Employee concessions
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Who should go?(during downsizing or layoffs)Factors to consider:
Seniority (number of years with company)
Performance (employee productivity) Conduct
• Contribution to “team” effort• Ability to work well with others• Loyalty to company• Reliability and dependability
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Effects of DownsizingPositive effects:
Improved profits for the company Often provides the “push” for displaced
employees to start their own companies
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Effects of DownsizingNegative effects:
On people who lose jobs:• Suffer loss of income• Suffer psychological trauma• Must job hunt when morale is very low• Must “start over” in a career
On people who remain:• Suffer “survivor guilt”• Become territorial to protect jobs they have• May be overloaded with work• May work many hours of overtime• May spend many hours worrying• May be forced to perform jobs for which they are not
trained
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Effects of DownsizingNegative effects
On the general populace• Bad for public relations within the business
community• Has a rippling effect on other businesses• Hurts the local economy• Possible increase in crime, domestic
violence, welfare, etc.
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How do you fire an employee?“No fault” terminations:
Choose time that creates less pressure for employee (not Christmas)
Supervisor who evaluated employee should terminate him/her
Reassure employee that termination is “no fault” of the employee
Offer severance pay or other perks Offer to write letter of reference
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Benefits and Severance Packages for Laid-off Workers
Provide information to employees as early as possible about what might happen
Provide counselors for workers and families Provide seminars for updating job-seeking skills
(preparing resumes and preparing for interviews) Help laid-off workers find new jobs Offer as many options as possible
Sample severance packages: An opportunity to retire early with full benefits A full year’s salary and full retirement after five years A lateral transfer to a new location A half year’s salary with full benefits, including health
insurance
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Providing Benefits for Laid-off WorkersThe Pros:
Helps keep valuable employees by giving them additional skills
Saves the cost of hiring/training new employees
Improves morale of workers remaining with company
Helping workers find new jobs probably less expensive than unemployment insurance payment or potential legal fees from lawsuits
Retraining decreases need for government programs such as welfare and unemployment
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Providing Benefits for Laid-off WorkersThe Cons:
Workers need to develop their own skills and not depend on employers
Companies are not obligated to laid-off workers
The cost of retraining programs and special benefits cut into the profits of the shareholders
Costs of benefits may cause the business to fail, causing even more workers to lose their jobs
Retraining and job search assistance is the responsibility of government through the use of tax dollars
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Termination for Cause“At fault” Terminations Termination letter Final pay Company property returned Status of any continuing benefits Collect personal items No access to company computer system Non-disclosure agreement, if appropriate Exit interview
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Termination for Cause“At fault” Terminationscontinued Arbitration system/Discipline-
grievance method Formal appeal system Informal appeal system “Hit and miss” method Open door policy method
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How do you fire an employee?“At fault” terminations:
Give employee written warning of unsatisfactory performance or misconduct prior to termination
Keep written documentation of specific problems with employee
Offer no severance pay Keep termination impersonal. Criticize
job performance only!
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Practical Termination/Exit Interview Tips
Be brief and concise Use a private setting Use a third party as a witness—only if
absolute necessary Offer a severance package for “no-fault”
terminations Have employee leave quickly
(immediately) – especially with “at-fault” terminations
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Exit interview helps determine . . . Weak areas in supervisory training Sources of discrimination Inadequate grievance handling
procedures Poor wage and/or benefits
administration Other reasons for employee
dissatisfaction
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Objective BM04.06Describe the role of organized labor and employment laws and their influence on government and business.
Investigate the policies outlined in an employment contract of a union member
Explore how federal legislation affects employment
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Early Labor Conditions“Why labor unions created” Workers regarded as unimportant Low pay Long hours Unsafe working conditions Unhealthy working conditions Employment of young children Impersonal employer/employee
relationship No form of representation
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Explore how federal legislation affects employment EEOC (Equal Employment Opportunity Commission) OFCCP (Office of Federal Contract Compliance Programs) FEPs (fair employment practice laws) Executive Order 11246 Rehabilitation Act of 1973 Vietnam Era Veteran’s Readjustment Assistance Act Civil Rights Acts of 1964 Immigration Reform and Control Act Age Discrimination in Employment Act and Older Workers
Benefit Protection Act Equal Pay Act Pregnancy Discrimination Act Americans with Disabilities Act Other EEO laws Sexual harassment policies
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Who is affected and how?Action Union
(workers)Management(employers)
Others/consumers
Boycott Hurts sales of products
Prices could decrease
Picket Hurts business and public relations
People entering business may be in danger; may affect local economy
Strike Employees don’t get paid if they don’t work
Hurts business and public relations
Others who work may be in danger; may affect local economy; products/services may not be available
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Who is affected and how?Action Union
(workers)Management(employers)
Others/consumers
Injunction Employees forced to stop a specific act
Hiring Nonunion Workers
Regular employees may lose their jobs
May affect the local economy
Lockout Employees don’t get paid if they don’t work
May affect the local economy; products or services may not be available