8/7/2019 Operation, Quality & Human Resource Management
1/21
**
*
11-1
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
8/7/2019 Operation, Quality & Human Resource Management
2/21
**
*
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
8/7/2019 Operation, Quality & Human Resource Management
3/21
**
*
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
8/7/2019 Operation, Quality & Human Resource Management
4/21
**
*
11-4
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
8/7/2019 Operation, Quality & Human Resource Management
5/21
**
*
11-5
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
8/7/2019 Operation, Quality & Human Resource Management
6/21
**
*
11-6
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
8/7/2019 Operation, Quality & Human Resource Management
7/21
**
*
11-7
Interviewing MistakesInterviewing Mistakes
35
18
2549
Littl / lf
ti l
Li it t i
t t
tiill / i
Source: USA Today
8/7/2019 Operation, Quality & Human Resource Management
8/21
**
*
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
8/7/2019 Operation, Quality & Human Resource Management
9/21
**
*
11-9
Training & DevelopmentTraining & Development
Assess NeedsAssess Needs
Design TrainingDesign Training
Evaluate EffectivenessEvaluate Effectiveness
8/7/2019 Operation, Quality & Human Resource Management
10/21
**
*
11-10
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
8/7/2019 Operation, Quality & Human Resource Management
11/21
**
*
11-11
Management DevelopmentManagement Development
or HRD
evelop
mentor HRD
evelop
ment OnOn--TheThe--JobJobCoachingCoaching
UnderstudyUnderstudy
Job RotationJob Rotation
OffOff--TheThe--Job CoursesJob Courses& Training& Training
8/7/2019 Operation, Quality & Human Resource Management
12/21
**
*
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
8/7/2019 Operation, Quality & Human Resource Management
13/21
**
*
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
8/7/2019 Operation, Quality & Human Resource Management
14/21
**
*
11-14
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
8/7/2019 Operation, Quality & Human Resource Management
15/21
**
*
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
8/7/2019 Operation, Quality & Human Resource Management
16/21
8/7/2019 Operation, Quality & Human Resource Management
17/21
**
*
11-17
Telecommuting:Telecommuting:
Affect on CareerAffect on Career
6%
25%
30%
39%
No Affect
Help
Hurt
Not Sure/NoAnswer
Source: USA Today
8/7/2019 Operation, Quality & Human Resource Management
18/21
**
*
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
8/7/2019 Operation, Quality & Human Resource Management
19/21
**
*
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
8/7/2019 Operation, Quality & Human Resource Management
20/21
**
*
11-20
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
8/7/2019 Operation, Quality & Human Resource Management
21/21
**
*
11-21
Companies Aid to
Disabled Employees
0% 10% 20% 30% 40% 50%
Change ofResponsibilities
Change of Hours
Job
Reassignments
Renovate
Workplace
Source: USA Today