Business Chapter 11 Human Resource Management: Finding and Keeping the Best Employees

Moving Employees Up, Over, and Out₁

Promoting and Reassigning Employees • Promotion improves morale and is cost-effective. • Employees may move over, rather than up. • Reassignment may motivate employees to stay with company.

Figure 11.6 A Flextime Chart

At this company, employees can start work anytime between 6:30 and 9:30 a.m. They take a half hour for lunch anytime between 11:00 a.m. and 1:30 p.m. and can leave between 3:00 and 6:30 p.m. Everyone works an eight-hour day. The blue arrows show a typical employee's flextime day.

Working with People Is Just the Beginning₂

Developing the Ultimate Resource • Service and high-tech manufacturing requires employees with highly technical job skills. • Such workers are scarce, making recruiting and retention more important and more difficult. • The human resource job is now the job of all managers in an organization.

Scheduling Employees to Meet Organizational and Employee Needs₂

Flextime Plans cont. • Compressed workweek — An employee works the full number of hours, but in fewer than the standard number of days. • Employees enjoy long weekends after working long days. • Productivity is a concern. • Nurses often work compressed workweeks. • On-call scheduling entails employers calling in or canceling workers with little notice.

Compensating Employees: Attracting and Keeping the Best₁

Compensation • A main tool companies use to attract qualified employees, and one of their largest operating costs. A managed and competitive compensation program helps: • Attract the kinds of employees the business needs. • Build employee incentive to work efficiently and productively. • Keep valued employees from going to competitors or starting their own firm. • Maintain a competitive market position by keeping costs low due to high productivity from a satisfied workforce. • Provide employee financial security through wages and fringe benefits.

Scheduling Employees to Meet Organizational and Employee Needs₁

Flextime Plans • Gives employees some freedom to choose which hours to work. • Most flextime plans require core time. • The period when all employees are expected to be at their job stations. • Flextime is difficult to incorporate into shift work, and managers have to work longer hours. • Communication among employees can also be difficult under flextime, and managers must be alert to any system abuses.

Scheduling Employees to Meet Organizational and Employee Needs₃

Home-Based Work • 44 percent of Americans work from home at least once per week or more. • Allows employees to choose their own hours, interrupt work for childcare or other tasks, and take time out for personal reasons. • Employers benefit because it can limit absences, increase productivity, and save money. • Companies also offer "hot-desking," or sharing a desk with other employees who work at different times.

Working with People Is Just the Beginning₁

Human Resource Management (HRM) • The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals. • HRM's role has grown because of: • Increased recognition of employees as a resource. • Changes in law that rewrote old workplace practices.

Scheduling Employees to Meet Organizational and Employee Needs₄

Job-Sharing Plans • Two or more part-time employees share one full-time job. Benefits: • It provides employment opportunities for many people who cannot work full-time. • Workers tend to be enthusiastic and productive. • Absenteeism and tardiness are reduced. • Employers can schedule part-time workers in peak demand periods. • Experienced employees who might otherwise have retired are retained.

Scheduling Employees to Meet Organizational and Employee Needs₅

Job-Sharing Plans cont. Disadvantages: • Need to hire, train, motivate, and supervise at least twice as many people. • Prorate some fringe benefits.

Laws Affecting Human Resource Management₄

Laws Protecting Employees with Disabilities and Older Employees Americans with Disabilities Act of 1990 (ADA): • Requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities. • Passage in 2008 of Americans with Disabilities Amendments Act expanded protection. • 2011 saw regulations that widen the range of disabilities covered by the ADA and shift the burden of proof of disability from employees to employers. Age Discrimination in Employment Act (ADEA): • Protects workers 40 and over from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training.

Moving Employees Up, Over, and Out₄

Losing Valued Employees • Conducting exit interviews lets the company know the reasons for the employee leaving. • Offboarding is the process surrounding employee exits.

Training and Developing Employees for Optimum Performance₄

Networking • The process of establishing and maintaining contacts with key managers in one's own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems. • Mentors — An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor. • Networking and mentoring go beyond the work environment.

Laws Affecting Human Resource Management₃

Office of Federal Contract Compliance Programs (OFCCP) • Ensures that employers doing business with the federal government comply with the nondiscrimination and affirmative action laws. Civil Rights Act of 1991 • Amended Title VII and gave victims of discrimination the right to a jury trial and possible damages.

Selecting Employees Who Will Be Productive₁

Selection • The process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization. Steps in the selection process: 1. Obtaining complete application forms. 2. Conducting initial and follow-up interviews. 3. Giving employment tests. 4. Conducting background investigations. 5. Obtaining results from physical exams. 6. Establishing trial (probationary) periods.

Determining a Firm's Human Resource Needs₂

What's a Job Analysis? • Job analysis — A study of what is done by employees who hold various job titles. Includes: • Job description — A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions. • Job specifications — A written summary of the minimum qualifications required of workers to do a particular job.

Figure 11.8 How to Avoid Wrongful Discharge Lawsuits

• Prepare before hiring by requiring recruits to sign a statement that retains management's freedom to terminate at will. • Don't make unintentional promises by using such terms as permanent employment. • Document reasons before firing and make sure you have an unquestionable business reason for the firing. • Fire the worst first and be consistent in discipline. • Buy out potential litigation by offering severance pay in exchange for a signed release from any claims. • Be sure to give employees the true reasons they are being fired. If you do not, you cannot reveal it to a recruiter asking for a reference without risking a defamation lawsuit. • Disclose the reasons for an employee's dismissal to that person's potential new employers.

Laws Affecting Human Resource Management₂

1972 Equal Employment Opportunity Act (EEOA) • It strengthened the Equal Employment Opportunity Commission (EEOC) by giving it broad powers. • Right to issue workplace guidelines for acceptable employer conduct. • Can mandate specific recordkeeping procedures. • The power of enforcement for its mandates. • Enforces affirmative action — Employment activities designed to "right past wrongs" by increasing opportunities for minorities and women.

Figure 11.1 Human Resource Management

As this figure shows, human resource management is more than hiring and firing personnel. All activities are designed to achieve organizational goals within the laws that affect human resource management.

Laws Affecting Human Resource Management₁

Civil Rights Act of 1964 • Title VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on: • Race. • Religion. • Creed. • Sex. • National origin. • Age. • Sexual orientation. • Gender identity.

Compensating Employees: Attracting and Keeping the Best₃

Compensating Teams • Team-based pay programs are more challenging than individual pay systems. The two most common methods for teams involve: • Skill-based: Pay is increased as team members learn and apply new skills. (Eastman Chemical uses this system.) • Gain-sharing: Pay is increased as performance increases compared to previous performance. (Nucor Steel uses this system.)

Training and Developing Employees for Optimum Performance₅

Diversity in Management Development • Women and minorities are gaining networking advantages. Reasons to develop female and minority managers: 1. It isn't about legality, morality, or morale but rather about bringing more talent in the door. 2. The best women and minorities will become harder to attract, so companies that commit to development have an edge. 3. Having more women and minorities at all levels lets businesses serve their women and minority customers better.

Laws Affecting Human Resource Management₅

Effects of Legislation • Employers must know the law and act accordingly. • Legislation affects all areas of HRM. • Changes in law and legislation occur regularly.

Compensating Employees: Attracting and Keeping the Best₄

Fringe Benefits • Benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages. • Health care has been the most significant increase in fringe benefit costs. • Fringe benefits include incentives like company cars, paid and unpaid sabbaticals, day care and elder care services, student loan debt payment, etc.• Soft benefits include on-site haircuts, free meals at work, concierge services, etc. • Cafeteria-style fringe benefits — Fringe benefit plan that allows employees to choose the benefits they want up to a certain dollar amount.

Selecting Employees Who Will Be Productive₂

Hiring Contingent Workers • Contingent workers — Workers who do not have the expectation of regular, full-time employment. • Includes part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students. • There are about 15 million contingent workers in the U.S., with the majority under age 25. • Gig economy — A single project or task for which a worker is hired, often through a digital marketplace, to work on demand.

Selecting Employees Who Will Be Productive₃

Hiring Contingent Workers cont. Companies hire contingent workers: • When full-time workers are on leave. • During periods of peak demand. • In uncertain economic times. • To save on employee benefits. • To screen candidates for future employment. • They receive few benefits and lower pay. • Many companies include college students as contingent workers. • Temporary staffing agencies.

Figure 11.4 Employee Sources

Internal sources are often given first consideration, so it's useful to get a recommendation from a current employee of the firm for which you want to work. College placement offices are also an important source. Be sure to learn about such facilities early so that you can plan a strategy throughout your college career.

Training and Developing Employees for Optimum Performance₃

Management Development • The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time. Management training includes: • On-the-job coaching. • Understudy positions. • Job rotation. • Off-the-job courses and training.

Training and Developing Employees for Optimum Performance₂

Most Common Training and Development Activities • Orientation. • On-the-job training. • Apprenticeships. • Off-the-job training. • Online training. • Vestibule training. • Job simulation.

Compensating Employees: Attracting and Keeping the Best₂

Pay Systems • The Hay method is based on job grades, each of which has a strict pay range. • Market-based pay structures compensate people relative to the market value of their job, regardless of their level in the organization.

Appraising Employee Performance to Get Optimum Results₁

Performance Appraisal • An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination. • A 360-degree review gives managers opinions from people at different levels to get a more accurate idea of the worker's abilities. • Continuous performance reviews allow workers to receive and give continuous, real-time feedback that help employees meet goals (or leave the company) faster.

Working with People Is Just the Beginning₃

The Human Resource Challenge • Uncertainty in global politics. • Technology. • Multigenerational workforce. • Shortages of trained workers in growth areas and construction trades. • Growing percentage of undereducated and unprepared new workers. • Baby Boomer brain drain. • Increasing number of single-parent and two-income families. • Change in attitude towards work. • Increased demand for temporary or part-time work. • Expanding global markets with low-wage workers. • Increased benefit demands and low costs. • Concern over child and elder care, health and mental well-being, workplace violence. • Changing health care regulations • A decreased sense of employee loyalty. • Automated HRM systems.

Training and Developing Employees for Optimum Performance₁

Training and Development • All attempts to improve productivity by increasing an employee's ability to perform. • Training focuses on short-term skills, whereas development focuses on long-term abilities. Three steps: 1. Assessing organizational needs and employee skills to determine training needs. 2. Designing training activities to meet identified needs. 3. Evaluating the training's effectiveness.

Determining a Firm's Human Resource Needs₁

Human Resource Planning Process 1. Preparing a human resource inventory of employees. 2. Preparing a job analysis. 3. Assessing future human resource demand. 4. Assessing future labor supply. 5. Establishing a strategic plan.

Recruiting Employees from a Diverse Population

Recruitment • The set of activities used to obtain a sufficient number of the right people at the right time. • Human resource managers use both internal and external sources to recruit employees. • Small businesses often make use of web sources like GlassDoor, Indeed, and LinkedIn to recruit employees.

Moving Employees Up, Over, and Out₃

Retiring Employees • Downsizing with early retirement. • Can include one-time cash payments, known in some companies as golden handshakes. • Increases morale of surviving employees. • An increasing number of would-be retirees choose to keep working either because they enjoy it or because they lack the financial resources to retire.

Appraising Employee Performance to Get Optimum Results₂

Six Steps of Performance Appraisals 1. Establishing performance standards that are understandable, measurable, and reasonable. 2. Clearly communicating those standards. 3. Evaluating performance against the standards. 4. Discussing the results with employees. 5. Taking corrective action.6. Using the results to make decisions.

Moving Employees Up, Over, and Out₂

Terminating Employees • Uncertain economic conditions lead to layoffs and firings. • Even when the economy is booming, employers are hesitant to hire full-time workers because of the cost of termination. • Firing employees is more difficult for employers because of laws preventing termination for certain acts.