Chapter 8

Human Resources Management

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What is HRM?
Human resources management (also known as staffing) consists of planning, attracting, developing, and retaining employees.

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HR for the L.A. Dodgers

Irene Tanji was with the HR department of the Los Angeles Dodgers from 1958 to 1998. She started as a secretary and worked her way up through the ranks to become Director of Human Resources. Tanji believes that pro sports HR people face a variety of challenges in the present business environment. Issues include educating young players regarding their benefits and providing services for ethnically diverse players.
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The Legal Environment

Irene Tanji believes the main challenge that HR departments face is keeping up with legal issues. She includes updating benefits; monitoring new medical insurance regulations, and administering the Dodgers 401k retirement plan as complex issues with serious legal implications.

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Hiring Process
Here are two rules of thumb: (1) Every question you ask should be job-related. When developing questions, make sure you have a purpose for using the information. Only ask legal questions you plan to use in your selection process. (2) General questions should be asked of all candidates.
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Bona Fide Occupational Qualification

A bona fide occupational qualification allows organizations to base their hiring decisions on otherwise discriminatory attributes where it is reasonably necessary to the normal operation of a particular organization. Is age a BFOQ in pro sports? Do you believe salary cap management practices discriminate against older players?

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The HR Department
HR recruits employees for line managers to select from as they hire new people. HR conducts orientation sessions for new hires and trains many of them to do their jobs. HR keeps employment records. HR is often involved with legal matters. HR develops the performance appraisal system and forms. HR determines compensation guidelines. HR develops employee health and safety programs, works on labor relations, and assists in the termination of employees.

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Strategic HR Planning
Strategic human resources planning is the process of staffing the organization to meet its objectives. The Director of Player Development for the Dallas Cowboys typically spends his time finding replacements for injured players, working on problems with the coaching staff, and preparing for contract negotiations.

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HR at Olympics, World Cup

HR consultant Priscilla Florence has served as the HR person for two international sporting events: The 1984 Los Angeles Olympics and the World Cup USA 1994. Florences responsibilities involve recruiting, hiring, training, and organizing paid employees and volunteers.

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Job Analysis
Job analysis is the process of determining what the position entails and the qualifications needed to staff the position. Job description identifies the tasks and responsibilities of a position. In other words, it identifies what employees do to earn their pay.

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Job Specifications
Job specifications identify the qualifications needed to staff a position. The job specifications thus identify the types of people needed.

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Recruiting
Recruiting is the process of attracting qualified candidates to apply for job openings. Professors with sport management doctorates are in short supply and in high demand as numerous colleges add new sport management programs to their offerings. Administrators will have to use all types of recruitment methods to attract qualified sport professors.

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Recruiting Sources
Promotions from within Employee referrals Internal Sources Walk-Ins

Educational Institutions
External Sources

Advertising
Agencies

Previous applicants

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Interview and Question Types

Questions

Close-Ended

Open-Ended

Hypothetical

Probing

Interviews Structured Unstructured Semistructured

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Interview Preparation Steps

1. Review the job description and specifications.

3. Plan the type 5. Develop a form. of interview.

2. Plan your realistic job preview.

4. Develop questions for all candidates.

6. Develop questions for each candidate.

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Interview Steps
Open the interview Give your realistic job preview Ask your questions Introduce top candidates to coworkers Close the interview

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Training Method Written material Lecture Video Question and answer Discussion Programmed learning

Definition Manuals, books, and so on. Spoken word, class lectures. Television, class videos. After other methods, the trainer and trainees ask questions about what they read, heard, and watched. A topic is presented and discussed. A computer or book is used to present material, followed by a question or problem. Trainees select a response, then are given feedback on their answers. Depending on the material presented, programmed learning may possibly develop people skills and conceptual skills. Trainers show trainees how to perform the task. This is step 2 in JIT. Demonstrations can also be used to develop people skills and decision-making skills. Employees learn to perform multiple jobs. Special assignments, such as developing a new product or a new team. Projects that require working with people and other departments also develop people skills and conceptual skills. Trainees act out a possible job situation, such as handling a customer complaint, to develop skill at handling similar situations on the job. (1) Trainees observe how to perform the task correctly. This may be done via a live demonstration or a videotape. (2) Trainees role-play a situation using the observed skills. (3) Trainees receive feedback on how well they performed. (4) Trainees develop plans for using the new skills on the job. (Behavior modeling is a feature of this book.)

Skill Developed Technical Technical Technical Technical Technical Technical

Demonstration

Technical

Job rotation Projects

Technical and conceptual Technical

Role playing

People and communication

Behavior modeling

People and communication

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Training Methods, Continued

Method Definition Skill Developed Cases Trainees are presented with a situation and asked to diagnose and solve the problems involved. They are usually asked to answer questions. (Cases are included at the end of each chapter of this book.) Conceptual and decision making

In-basket exercise

Trainees are given actual or simulated letters, memos, reports, telephone messages, etc. typically found in the in-basket of a person holding the job theyre being trained for. Trainees are asked what, if any, action they would take for each item, and to assign priorities to the material. Trainees manage a simulated company. They make decisions in small teams and get the results back, usually on a quarterly basis, over a period of several game years. Teams are in an industry with several competitors. Trainees sit at a computer and respond as directed.

Conceptual and decision making

Management games

Conceptual and decision making

Interactive video

Any of the skills

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Labor Relations
Labor relations are the interactions between management and unionized employees

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Baseball Players in the Union

Conflicts between baseball players and owners date back to the 1880s. Fans have endured five strikes since 1966 and the owners have locked players out three times (1973, 1976, and 1990). Salary caps are the maximum amount of money a team can spend on players. In the 1880s MLB owners established the first salary cap in pro sportstheir $2,000 salary cap was not peanuts, although it seems paltry today.
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Free Agency Curt Flood

In 1969, St. Louis Cardinals star player, Curt Flood, asked for a substantial salary increase but instead found himself promptly traded to the Philadelphia Phillies. He sued to stay in St. Louis. This case also went all the way to the Supreme Court, which ruled against Flood, citing the Federal Base Ball decision of 1915.
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Free Agency Catfish Hunter

A successful challenge to the reserve clause didnt occur until the 1970s. The first case came when Charles Finley, owner of the Oakland Athletics, withheld part of Catfish Hunters $100,000 salary. Hunters contract stipulated that half of his salary go toward purchasing an annuity in an insurance fund. Finley didnt pay because of a tax question, so he had not fulfilled the contract, and this allowed Hunter to become a free agent.
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Free Agency Andy Messersmith

Rather than sit out the 1975 season, Andy Messersmith of the Los Angeles Dodgers played under the standard contract that was renewed by the Dodgers, but he never signed it. Courts later ruled that when Messersmith chose to play at the Dodgers option, but without signing the new contract, he became a free agent.
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Collusion
The 1976 baseball season started without a contract, so owners locked players out of spring training that year. Owners were subsequently found guilty in court of collusion three times (1987, 1988, and 1990). Collusion meant the owners were guilty of working together to organize how they would bid or not bid for free agent ballplayers.

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Baseball Strike of 1994-1995

The 19941995 baseball season ended in a strike, and the World Series was cancelled. Even the 2002 season was played under the shadow of labor tensions and threats of a strike. Fortunately, both sides were able to negotiate a last-minute settlement, and the 2002 season was completed as scheduled.

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Collective Bargaining
Collective bargaining is the process of unions and management negotiating a contract that covers employment conditions at the organization.

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Mediation and Arbitration

Mediators are neutral parties who help management and labor settle disagreements. In cases where the two parties are unwilling to compromise but still want to avoid a strike or lockout, they may choose to call in an arbitrator. Arbitrators differ from mediators in that arbitrators decisions are binding (must be followed). Arbitrators more typically work to settle grievances; mediators deal with impasses in collective bargaining.

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Termination
In 1998 Nike laid off about 1,600 people worldwide due to unexpected high levels of inventories. Nikes CEO Philip Knight observed, The job reductions were difficult to undertake, but necessary to make the company competitive.

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Outplacement Services
When companies undergo layoffs, they sometimes offer outplacement services, the purpose of which is to help employees find new jobs.

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