USINESS 7e CHAPTER 8

Managing Human
Resources and Labor
Relations

1 Copyright 2004 Prentice Hall, Inc.

BUSINESS 7e Chapter Outline

 The Foundations of Human Resource

Management
 Staffing the Organization
 Developing the Workforce
 Compensation and Benefits
 The Legal Context of HR Management
 New Challenges in the Changing Workplace
 Dealing With Organized Labor
 Collective Bargaining

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 What Is Human Resource
USINESS 7e Management (HRM)?

Set of organizational
activities directed at
attracting, developing
and maintaining an
effective workforce

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 The Strategic Importance of
HRM

The importance of HR stems from:

BUSINESS 7e

 Increased legal complexities

 Recognition of human resources as a
valuable means for improving
productivity
 Awareness of costs associated
with poor human resource
management

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BUSINESS 7e Human Resource Planning

 Job analysis is a systematic analysis of

jobs within an organization. The results:
 Job description is an outline of the duties of
a job, working conditions and the tools,
materials, and equipment used to perform it
 Job specification is a description of the
skills, abilities and other credentials required
by a job

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 The Human Resource Planning
BUSINESS 7e Process

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 Forecasting HR Demand and
BUSINESS 7e Supply

Forecasting the supply of labor

is two tasks:
 Forecasting internal supply—the number
and type of employees who will be in the
firm at some future date
 Forecasting external supply—the number
and type of people who will be available for
hiring from the labor market at large

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 Forecasting HR Demand and
BUSINESS 7e Supply

 Replacement chart is a list of each

management position, who occupies it, how
long that person will likely stay in the job
and who is qualified as a replacement
 Employee information system (or Skills
inventory) is a computerized system
containing information on each employee's
education, skills, work experience and
career aspirations

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BUSINESS 7e Staffing the Organization

Recruiting is the process of attracting

qualified persons to apply for the jobs
that are open. Process of acquiring staff:
 Internal recruiting means considering
present employees as candidates
for openings
 External recruiting involves attracting
people outside the organization to
apply for jobs

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BUSINESS 7e Selecting Human Resources

 Validation is the process of determining

the predictive value of a selection
technique. Techniques include:
 Application Forms
 Tests
 Interviews
 Other Techniques

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 Developing the Workforce

 Training
BUSINESS 7e

 On-the-job training occurs while

the employee is at work
 Off-the-job training takes place at locations
away from the work site
 Vestibule training is off-the-job training
conducted in a simulated environment
 Performance appraisals are designed to
show how well workers are doing their jobs

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BUSINESS 7e Performance Rating Schedule

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 What is a Compensation
USINESS 7e System?

Set of rewards that

organizations provide to
individuals in return for
their willingness to
perform various jobs and
tasks within the
organization

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 Compensation and Benefits

 Wages are paid for time worked

BUSINESS 7e

 Salary is paid for discharging the

responsibilities of a job

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USINESS 7e What Are Incentive Programs?

Special pay programs

designed to motivate
high performance

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 Individual Incentives

 Bonuses are special payments above

BUSINESS 7e

their salaries
 Merit salary systems link raises to
performance levels in non-sales jobs
 Pay for performance (Variable pay)
rewards a manager for especially
productive output

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BUSINESS 7e Companywide Incentives

 Profit-sharing plans distribute bonuses to

employees when company profits rise
above a certain level
 Gainsharing plans distribute bonuses to
employees when a company’s costs are
reduced through greater work efficiency
 Pay-for-knowledge plans encourage
workers to learn new skills or become
proficient at different jobs

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USINESS 7e What Are Benefits?

Compensation other
than wages and
salaries offered by a
firm to its workers

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 Benefits Programs
 Workers’ compensation
BUSINESS 7e
insurance is legally
required insurance for
compensating workers
injured on the job
 Retirement plan is set up to
pay pensions to workers
when they retire
 Cafeteria benefits plan
sets limits on benefits per
employee, each of whom
may choose from a variety
of alternative benefits

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 What Is Equal Employment
USINESS 7e Opportunity?

Legally mandated
nondiscrimination in
employment on the basis
of race, creed, sex or
national origin

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USINESS 7e What is a Protected Class?

Set of individuals who by

nature of one or more
common characteristics are
protected under the law
from discrimination on the
basis of that characteristic

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 Enforcing Equal Employment
BUSINESS 7e Opportunity

 Equal Employment Opportunity

Commission (or EEOC) is a federal
agency enforcing several discrimination-
related laws
 Affirmative action plan is a practice of
recruiting qualified employees belonging to
racial, gender or ethnic groups who are
underrepresented in an organization

22 Copyright 2004 Prentice Hall, Inc.

 Contemporary Legal Issues in
BUSINESS 7e HR Management

 Employment Safety and Health

 Occupational Safety and Health Act of
1970 (or OSHA) sets and enforces
guidelines for protecting workers from
unsafe conditions and potential health
hazards in the workplace

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 Emerging Areas of
Discrimination Law

 AIDS in the Workplace

BUSINESS 7e

 Sexual harassment is the practice or

instance of making unwelcome sexual
advances in the workplace
 quid pro quo harassment
 hostile work environment
 Employment-at-will is the principle that
organizations should be able to retain or
dismiss employees at their discretion

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USINESS 7e What is Workforce Diversity?

Range of workers’
attitudes, values,
beliefs and behaviors
that differ by gender,
race and ethnicity

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 Changing Composition of the
BUSINESS 7e U.S. Workforce

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USINESS 7e What is a Knowledge Worker?

Employees who are of

value because of the
knowledge they
possess

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USINESS 7e What is a Contingent Worker?

Employee hired on
something other than a
full-time basis to
supplement an
organization’s
permanent workforce

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 Dealing With Organized Labor

 Labor union is a group of

BUSINESS 7e
individuals working together to
achieve shared job-related goals
 Labor relations is the process of dealing
with employees who are represented by a
union
 Collective bargaining is the process by
which labor and management negotiate
conditions of employment for union-
represented workers
29 Copyright 2004 Prentice Hall, Inc.
BUSINESS 7e Unionism Today

 Trends in Union Membership

 Trends in Union-Management
Relations
 Trends in Bargaining
Perspectives
 The Future of Unions

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BUSINESS 7e Trends in Union Membership

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BUSINESS 7e The Bargaining Zone

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 Contract Issues
 Compensation
BUSINESS 7e
 Cost-of-Living Adjustment (COLA)
 Wage Reopener Clauses
 Benefits
 Job Security
 Other Union Issues
 Management Rights

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 When Bargaining Fails: Union
Tactics
 Strike occurs when
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employees temporarily
walk off the job and
refuse to work
 Economic Strikes
 Sympathy Strikes (or
Secondary Strikes)
 Wildcat strikes
 Other Labor Actions
 Picketing
 Boycott
 Slowdown

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 When Bargaining Fails:
Management Tactics

 Lockouts occur when employers deny

BUSINESS 7e
employees access to the workplace
 Strikebreakers are workers hired as
permanent or temporary replacements
for striking employees

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 When Bargaining Fails:
Mediation and Arbitration
 Mediation is a method in
which a third party (a
BUSINESS 7e
mediator) suggests, but
does not impose, a
settlement
 Voluntary arbitration is a
method in which both
parties agree to submit to
the judgment of a neutral
party (an arbitrator)
 Compulsory arbitration is
a method in which both
parties are legally required
to accept the judgment of a
neutral party
36 Copyright 2004 Prentice Hall, Inc.