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Managing

ManagingHuman
HumanResources
Resources

Chapter
9
THE
THEFUTURE
FUTUREOF
OFBUSINESS
BUSINESS
Gitman
Gitman&&McDaniel
McDaniel
55ththEdition
Edition

Prepared
Preparedby
by
Chapter 9

Deborah Baker
Deborah Baker
Texas
Texas ChristianUniversity
Christian University
Learning Goals
1 What is the human resource management process and
how are human resource needs determined?
2 How do human resource managers recruit and select
qualified applicants?
3 What types of training and development do organizations
offer their employees?
4 How are performance appraisals used to evaluate
employees performance?
5 What are the different methods for compensating
employees?
Chapter 9

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 2


Learning Goals

6 What is organizational career management?


7 Why does a diverse workforce lead to stronger
performance in the marketplace?
8 What are the key laws and federal agencies affecting
human resource management?
9 What trends are affecting human resource management?
Chapter 9

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 3


Human Resource Success Factors

Attracting and hiring the best


employees
Equipping employees with the skills
needed to excel
Compensating employees fairly
Motivating employees to reach their
full potential
Chapter 9

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Human Resource Challenges

Competition for a limited number of employees


Employees are struggling to balance their home and
work lives
Managers are challenged to manage and
communicate with employees around the globe
A diverse and multicultural workforce requires better
workplace communication and training
Technology is impacting decision making,
communication, and business operation
Human resource laws are dictating many aspects of
the employee-employer relationship
Chapter 9

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 5


1 Learning Goal 1

What is the human resource


management process and how are
human resource needs determined?
Chapter 9

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1 Human Resource Management

The
Theprocess
processofof hiring,
hiring,
Human
HumanResource
Resource developing,
developing, motivation,
motivation,
Management
Management and
and evaluating
evaluating
employees
employeestoto achieve
achieve
organizational
organizationalgoals
goals
Chapter 9

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1 Human Resource Management Process
Strategies
Strategiesand
and
objectives
objectivesof
of
the
theorganization
organization

Job
Jobanalysis
analysis HR
HRplanning
planning&& Employee
Employee Employee
Employee
&&design
design forecasting
forecasting recruitment
recruitment selection
selection

Training
Trainingand
and Performance
Performanceplanning
planning Compensation
Compensation
development
development and
andevaluation
evaluation and
andbenefits
benefits

Organizational
Organizationalcareer
careermanagement:
management:
Employee
Employeejobjobchanges
changesand
and
disengagement
Chapter 9

disengagement

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1 Human Resource Planning
Job
Jobanalysis
analysis HR
HRplanning
planning&& Employee
Employee Employee
Employee
&&design
design forecasting
forecasting recruitment
recruitment selection
selection

AAstudy
studyof
ofthe
thetasks
tasksrequired
required
Job
JobAnalysis
Analysis to
todo
doaaparticular
particularjob
jobwell
well

The
Thetasks
tasksand
andresponsibilities
responsibilities
Job
Job Description
Description of
ofaajob.
job.

AAlist
listof
ofthe
theskills,
skills,knowledge,
knowledge,
Job
Job Specification
Specification and
andabilities
abilitiesaaperson
personmust
must
have
havetotofill
fillthe
thejob.
job.
Chapter 9

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 9


1 Human Resource Planning
Job
Jobanalysis
analysis HR
HRplanning
planning&& Employee
Employee Employee
Employee
&&design
design forecasting
forecasting recruitment
recruitment selection
selection

Determine
Determinethe
thenumber
numberofofpeople
people
needed
neededbybysome
somefuture
futuretime
time
The
The HR
HR
Demand
Demand
Forecast
Forecast Estimate
Estimatethe
thenumber
numberof ofpeople
people
currently
currentlyinvolved
involvedwho whowill
willbe
be
available
availableto
tofill
filljobs
jobsatat
some
somefuture
futuretimetime
Chapter 9

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1 Human Resource Planning Process
Corporate
Corporatestrategy
strategy
and
andpolicy
policy

HR
HRobjectives
objectivesand
and
policies
policies

HR
HRdemand
demand Compare HR
HRsupply
supply
forecast
forecast forecast
forecast
No difference:
requirement = supply
Differences
Differences

HR
HRsurplus
surplus HR
HRshortage
shortage
1.1. Reassign
Reassign 1.1. Hire
Hire
2.2. Layoff
Layoff 2.2. Pay
Payovertime
overtime
3.3. Terminate 3.3. Subcontract
Chapter 9

Terminate Subcontract
4.4. Retire
Retire
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 11
2 Learning Goal 2

How do human resource


managers recruit and
select qualified applicants?
Chapter 9

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 12


2 Employee Recruitment
Job
Jobanalysis
analysis HR
HRplanning
planning&& Employee
Employee Employee
Employee
&&design
design forecasting
forecasting recruitment
recruitment selection
selection

Internal
Internal Follow
Followaapolicy
policyof
ofpromotion
promotion
Labor
Labor Market
Market from
fromwithin
within

External
External Find
Findand
andattract
attractqualified
qualifiedapplicants
applicants
Labor
Labor Market
Market from
fromthe
theexternal
externalsources
sources

Advertising Search
Search
Advertising Firms
Firms

Open
Chapter 9

Job
JobFairs
Fairs Open
Houses
Houses
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 13
2 Employee Selection
Job
Jobanalysis
analysis HR
HRplanning
planning&& Employee
Employee Employee
Employee
&&design
design forecasting
forecasting recruitment
recruitment selection
selection

1.
1. Initial
Initial screening:
screening: application
application and
and interview
interview
2.
2. Employment
Employment testing
testing
Employment
Employment
3.
3. Selection
Selection interview
interview Selection
Selection
4. Process
Process
4. Background
Background and
and reference
reference checks
checks
Steps
Steps
5.
5. Physical
Physical examination
examination
6.
6. Decision
Decision to
to hire
hire
Chapter 9

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3 Learning Goal 3

What types of training and


development do organizations
offer their employees?
Chapter 9

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 15


3 Employee Training and Development

Training
TrainingNeeds
Needs Training
Training
Assessment
Assessment Objective
Objective

Design
Designof
of
Training
TrainingProgram
Program
Feedback for
Training
Improvement
Conduct
Conduct
Training
TrainingProgram
Program

Training
Training
Chapter 9

Program
ProgramEvaluation
Evaluation
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4 Learning Goal 4

How are performance


appraisals used to evaluate
employees performance?
Chapter 9

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4 Performance Planning and Evaluation

Performance
PerformancePlanning:
Planning:
Setting
Settingstandards
standards
and
andexpectations
expectations

Employee
Employeejob
job Performance
Performance Rewards
Rewardsand
and
task
taskbehavior
behavior evaluation
evaluation job
jobchanges
changes

Performance
Feedback
Chapter 9

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5 Learning Goal 5

What
What are
are the
the different
different methods
methods
for
for compensating
compensating employees?
employees?
Chapter 9

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 19


5 Employee Compensation and Benefits
Hourly
Hourly wages
wages
Types
Types of
of
Compensation
Compensation
Salaries
Salaries

Piecework
Piecework &
& commission
commission

Accelerated
Accelerated commission
commission schedule
schedule

Bonus
Bonus

Profit
Profit sharing
sharing
Chapter 9

Fringe
Fringe benefits
benefits
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 20
6 Learning Goal 6

What
What is
is organizational
organizational
career
career management?
management?
Chapter 9

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6 Job Changes within the Organization

An
Anupward
upwardmove
movetotoaaposition
positionwith
with
Promotion
Promotion more
moreauthority,
authority,responsibility,
responsibility,and
andpay.
pay.

AAhorizontal
horizontalmove
movetotoaaposition
positionwith
with
Transfer
Transfer about
aboutthe
thesame
samesalary
salaryand
and
organizational
organizationallevel.
level.

The
Thedowngrading
downgradingor orreassignment
reassignment
Demotion
Demotion of
ofan
anemployee
employeeto toaaposition
position
with
withless
lessresponsibility.
responsibility.
Chapter 9

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6 Separations

Temporary
Temporaryseparation
separationof
ofan
anemployee
employee
Layoff
Layoff Arranged
Arrangedby
byemployer
employer

Permanent
Permanentseparation
separationof
ofan
anemployee
employee
Termination
Termination Arranged
Arrangedby
byemployer
employer

Permanent
Permanentseparation
separationof
ofan
anemployee
employee
Resignation
Resignation Arranged
Arrangedby
byemployee
employee

Separation
Separationof
ofan
anemployee
employeeat
atthe
theend
endof
of
Retirement
Retirement his
hisor
orher
hercareer
career
Chapter 9

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7 Learning Goal 7

Why
Why does
does aa diverse
diverse workforce
workforce
lead
lead to
to stronger
stronger performance
performance
in
in the
the marketplace?
marketplace?
Chapter 9

Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved 24


7 Cultural Diversity

1.
1. Lower
Lower costs
costs Competitive
Competitive
Advantages
Advantages
2.
2. Better
Better hiring
hiring

3.
3. More
More effective
effective marketing
marketing

4.
4. Greater
Greater employee
employee creativity
creativity

5.
5. More
More effective
effective problem-solving
problem-solving

6.
6. Quicker
Quicker adaptation
adaptation to
to change
change
Chapter 9

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7 Cultural Diversity
Chapter 9

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8 Learning Goal 8

What
What are
are the
the key
key laws
laws and
and
federal
federal agencies
agencies affecting
affecting
human
human resource
resource management?
management?
Chapter 9

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8 Laws Affecting HR Management

1. Fair Labor Standards Act (1938)


2. Equal Pay Act (1963)
3. Occupational Safety & Health Act (1970)
4. Americans with Disabilities Act (1990)
5. Family and Medical Leave Act (1993)
Chapter 9

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8 The EEOC Process

Investigation

Conciliation

Litigation

http://www.eeoc.gov
http://www.eeoc.gov
Chapter 9

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9 Learning Goal 9

What
What trends
trends are
are affecting
affecting
human
human resource
resource management?
management?
Chapter 9

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9 Trends in Human Resource Management

Protecting
Protecting whistleblowers
whistleblowers

Growth
Growth of
of minority
minority recruiting
recruiting

Proactive
Proactive management
management of
of diversity
diversity

Advancing
Advancing technology
technology

Global
Global competition
competition
Chapter 9

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