CH 56

Part 4
Creating the
Human
Resource
Advantage
2016 by McGraw-Hill Education. This is proprietary material solely for

authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded,
distributed, or posted on a website, in whole or part.
10-2
CHAPTER 9
Motivating the Workforce
CHAPTER 10
Managing Human Resources
APPENDIX C
Personal Career Plan
2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned,
duplicated, forwarded, distributed, or posted on a website, in whole or part.
10-3
Learning Objectives
LO 10-1
Define human resources management and explain its
significance.
LO 10-2
Summarize the processes of recruiting and selecting
human resources for a company.
LO 10-3
Discuss how workers are trained and their performance
appraised.
LO 10-4
Identify the types of turnover companies may experience,
and explain why turnover is an important issue.
LO 10-5
Specify the various ways a worker may be compensated.
LO 10-6
Discuss some of the issues associated with unionized
employees, including collective bargaining and dispute resolution.
LO 10-7
LO 10-8
size
Describe the importance of diversity in the workforce.

Assess an organizations effort to reduce its workforce
and manage the resulting effects.
10-4
Nature of Human Resource Management
Called personnel management in

some companies
Managers try maximizing
employee satisfaction while
motivating them to productively
meet objectives
Todays organizations
are more diverse, with
a greater range of
women, minorities,
and older workers
10-5
Planning for Human Resource Needs

During a companys planning period, the human
resources department:
Determines the current number of workers and how
many plan to retire or leave during the planning
period
Forecasts how many qualified employees will need
to be hired, or determines if layoffs are required
Forecasts the availability of future qualified hires
Develops a strategy which may include
outsourcing, automation or temporary workers
10-6
Job Analysis
Next, managers analyze the

jobs in order to match people
to available assignments
10-7
Job Description and Job Specification

Using the job analysis, managers develop:
10-8
Recruiting and Selecting New Employees

Job descriptions and job specifications are used to
develop recruiting materials
Internal sources include current employees

External sources includes everything else
LinkedIn, internships, websites for posting job

openings
Some companies use agencies or executive search

firms, sometimes called headhunters
10-9
Recruiting through Social Networking
TheLadders.com is a
website that targets
career-driven
professionals
10-10
Selection
o Includes the application, interviewing, testing and

reference checking
o The process can be lengthy and expensive but
necessary in order to find applicants who can do the
work and fit into the firms structure and culture
o Careful hiring saves future hiring expenses
10-11
The Application
In the first phase of the selection process, the
individual fills out an application form and perhaps has
a brief interview
The goal of this stage of the process is to get
acquainted with the applicants and to weed out those
who are obviously not qualified for the job
Many companies now accept online applications
May contain a questionnaire that asks applicants more

specific questions:
How they might react in a certain situation
Personality attributes like self-esteem
Ability to interact with people
10-12
The Interview
The next phase of the selection process involves
interviewing applicants
Through interviews, management obtains detailed
information about the applicants experience and skills,
reasons for changing jobs, attitudes toward the job, and
an idea whether the person would fit in
The interviewer can answer the applicants questions
about the job, compensation, working conditions,
company policies, organizational culture and so on
An interviewees questions may be as revealing as their
answers
10-13
Most Common Questions Asked
during the Interview
10-14
Mistakes Made in Interviewing
10-15
Testing
Another step in the selection process is testing
Ability and performance tests are used to determine

whether an applicant has the skills necessary for the job
One of most common tests is the Meyer-Briggs Type

Indicator
May also have to undergo physical examinations to

determine their suitability for some jobs
Used worldwide by millions of people each year
Many companies require applicants to be screened for

illegal drug use
Certain companies require an applicant to take a typing

test or tests to determine their knowledge of necessary
programs
10-16
Personality Tests
Personality tests such as Myers-Brigg are used to
assess an applicants potential for a certain kind of job
For instance, extroversion and a love of people would be

good qualities for a sales or retail job
Interestingly, there does not seem to be any difference
between introversion and extroversion in making a good
manager
10-17
Reference Checking
Before making a job offer, the company should
check references
Verifying educational background and previous work

experience
An Internet search is often done to determine social

media or other public activities
Public companies are likely to do a more extensive

background search
Reference checking is important as applicants may

misrepresent themselves on their applications and
resumes
Often overlooked stage in the selection process
10-18
Legal Issues in Recruiting and Selecting

Managers must be aware of legal restraints and
regulations in order to avoid legal problems
10-19
Employment Discrimination Is Illegal
Title VII of the Civil Rights

Act prohibits discrimination
in employment
Encourages people who
feel they have been
discriminated against to file
a formal complaint
10-20
Other Laws Affecting HRM
10-21
Video Interviews
Interviewing for a job has traditionally required the
interviewee to go to the physical location of the job applied
for no matter how far the distance
However since 2011, human resource managers have

taken to video conferencing to conduct interviews over 49
percent of the time
This has not only increased the diversity of people being

interviewed as they are no longer restricted by travel, but it
has decreased:
The amount of time used in the recruiting process

The costs of recruiting
10-22
Developing the Workforce
Usually includes:
A tour of the building

Introductions to co-workers and supervisors
Distribution of manuals and policies
Socializing the new employee into the ethics and
culture of the company
10-23
Training and Development
10-24
Assessing Performance
Assessing an employees strengths and weaknesses
on the job is one of the most difficult tasks for
managers
Performance appraisal is crucial as it:
Gives employees feedback on how they are

doing and how to improve
Provides a basis for determining compensation

Generates information about the quality of the
firms selection, training and development
activities
10-25
Performance Characteristics
10-26
Performance Appraisals
Performance appraisals may be objective or subjective
Objective appraisal is quantifiable;

such as how many of something
was produced or the score on a test
One popular subjective appraisal

method is ranking employees
against each other
Another method is the 360-degree

feedback system, providing
feedback from a panel of superiors,
peers and subordinates
10-27
Turnover, Promotion, and Transfer
10-28
Downsizing
Many companies in
recent years are
choosing to downsize
by eliminating jobs
Reasons might be due
to financial constraints
or the need to become
more productive and
competitive
10-29
Separations
Traditionally, companies could fire workers at will, that

is, for any reason other than race, religion, sex or age
Recent legislation requires companies fire employees
fairly, for just cause only
The HR department strives to minimize employee

losses as recruiting and training is expensive
10-30
Wage/Salary Survey
People dont work for free and their pay and benefits
are a substantial portion of an organizations expenses
Compensation for a specific job is typically
determined through a
10-31
Financial Compensation
10-32
Piece Wages and Commission

Many companies pay on an incentive system, such as:
10-33
Salary, Bonuses, Profit Sharing and ESOPs
10-34
Benefits
According the Bureau of Labor Statistics, employer

costs for compensation in the U.S. average $29.63
per hour worked
Wages and salaries account for 70.1%
Benefits account for 29.9%
Legally required benefits account for 8.2%
Benefits increase employee security, morale and motivation

10-35
Benefits (cont.)
The employee assistance program (EAP) offers
employees personal assistance with problems that
may hurt their job performance
Flexible benefit programs allow employees to choose
the benefits they want, up to a certain amount
Fringe benefits include sick leave, vacation pay,
pension plans and other extra compensation
Soft benefits include perks that help balance life and
work, such as spas, food service and child care
Cafeteria benefit plans provide a financial amount to
employees so that they can select the specific benefits
that fit their needs
10-36
Onsite Fitness
o An onsite fitness center is
one of the benefits large
companies have begun to
offer employees
o Such benefits are
particularly important for
employees who work long
hours or who struggle to
maintain a healthy worklife
balance
10-37
Managing Unionized Employees
On average, union workers make about $200 more per

week than non-union workers
Union growth has slowed and prospects for growth do
not look good
Significant aspects of HRM, particularly compensation,
are dictated by union contracts at many companies
10-38
Collective Bargaining
COLA or cost-of-living adjustment is automatic

wage increases during periods of inflation
Givebacks are wage and benefit concessions
10-39
Labor Tactics
Sometimes, management and labor simply cannot agree
Labor tactics:
10-40
Management Tactics
10-41
Outside Resolution
If labor and management still fail to reach an agreement, they
have three forms of outside resolution:
10-42
Goodbye Human Resources?

Some companies are reinventing their Human Resources
department by getting rid of it, or at least, delegating many
HR duties to frontline or department managers
The hiring and recruiting process that traditionally occurs in

the Human Resources department can sometimes misalign
with the needs of the department where the new hire will work
Delegating these processes to the manager of the

department leads to better placement of employees that are
aligned with the needs and environment of the department
It also gives the management more of an active role in the

leadership of his department, as he is responsible for the new
and existing employees
10-43
Characteristics of Diversity
Understanding diversity means recognizing and

accepting differences and valuing unique perspectives
Primary characteristics are inborn and unchangeable
Secondary characteristics can be changed
Managers must remember that each person is defined
by the interrelationships of all characteristics and they
must consider the complete person
10-44
Why Is Diversity Important?

The U.S. workforce is becoming increasingly diverse
Companies are improving their HRM programs to
recruit, develop and retain more diverse employees to
better serve their diverse customers
The Census Bureau predicted
that by 2042, minorities will
make up more than 50% of
the U.S. population
Effectively managing diversity
in the workforce involves
cultivating and valuing its
benefits and minimizing its
problems
10-45
Importance of Workforce Diversity

Some of the benefits to workforce diversity:
1. More productive use of a companys human

resources
2. Reduced conflict among employees as they learn to

respect each others differences
3.
4.
5.
6.
More productive working relationships

Increased commitment to organizational goals
Increased innovation and creativity
Increased ability to serve the needs of diverse
customers
10-46
Affirmative Action
Many companies strive to improve their working
environment through:
10-47
Solve the Dilemma

Morale Among the Survivors
Medallion Corporation manufactures quality carpeting and
linoleum for homes throughout the U.S.
Recession and subsequent downturn in home sales has
sharply cut the companys sales
Have to lay off hundreds of employees in the home
office (manufacturing facilities) and salespeople
1 additional month of work
1 month of severance pay
Opportunity to sign up for classes to help with transition
Several months later, morale was at an all-time low for

the company although productivity had improved
10-48
Solve the Dilemma

Morale Among the Survivors (cont.)
10-49
Discussion
What activities are involved in acquiring and

maintaining the appropriate level of qualified
human resources? Name the stages of the
selection process.
What is the significance of a performance

appraisal? How do managers appraise
employees?
Relate wages, salaries, bonuses, and benefits

to Herzbergs distinction between hygiene and
motivation factors. How does the form of
compensation relate to the type of job?
Besides collective bargaining and grievance

procedures,
what
other
alternatives
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or posted
on a website, in whole or part.are

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Part 4

2016 by McGraw-Hill Education. This is proprietary material solely for

Motivating the Workforce

Managing Human Resources

Personal Career Plan

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Specify the various ways a worker may be compensated.

Describe the importance of diversity in the workforce.

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Nature of Human Resource Management

Called personnel management in

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Planning for Human Resource Needs

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Next, managers analyze the

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Job Description and Job Specification

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Recruiting and Selecting New Employees

Internal sources include current employees

LinkedIn, internships, websites for posting job

Some companies use agencies or executive search

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Recruiting through Social Networking

duplicated, forwarded, distributed, or posted on a website, in whole or part.

o Includes the application, interviewing, testing and

duplicated, forwarded, distributed, or posted on a website, in whole or part.

May contain a questionnaire that asks applicants more

How they might react in a certain situation

Personality attributes like self-esteem

Ability to interact with people

duplicated, forwarded, distributed, or posted on a website, in whole or part.

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Most Common Questions Asked

during the Interview

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Mistakes Made in Interviewing

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Ability and performance tests are used to determine

One of most common tests is the Meyer-Briggs Type

May also have to undergo physical examinations to

Used worldwide by millions of people each year

Many companies require applicants to be screened for

Certain companies require an applicant to take a typing

duplicated, forwarded, distributed, or posted on a website, in whole or part.

For instance, extroversion and a love of people would be

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Verifying educational background and previous work

An Internet search is often done to determine social

Public companies are likely to do a more extensive

Reference checking is important as applicants may

Often overlooked stage in the selection process

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Legal Issues in Recruiting and Selecting

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Employment Discrimination Is Illegal

Title VII of the Civil Rights

duplicated, forwarded, distributed, or posted on a website, in whole or part.

Other Laws Affecting HRM

duplicated, forwarded, distributed, or posted on a website, in whole or part.

However since 2011, human resource managers have

This has not only increased the diversity of people being

The amount of time used in the recruiting process