Chapter 4

Human Resource
Management
 Learning Objectives
Understand how human resource managers recruit
and select employees.
Illustrate the various types of employee training and
development methods.
Describe different types of pay systems and how to
evaluate employees.
Describe the most important laws affecting the
workplace with which human resource managers need
to be familiar.
Describe the key human resource management
challenges facing managers today.
Introduction to HRM
HRM: the process of determining
human resource needs and then
recruiting, selecting, training and
developing, compensating,
appraising, and scheduling
employees to achieve
organizational goals.
People Most valuable asset.
Employees expect fair payment.
The Human Resource Process

Vital to development & strategic

planning
Broad responsibilities
Determining HR Needs
Management begins with planning
Five steps:
Prepare HR inventory
Prepare job analysis
Job description
Job specification
Assess future HR demands
Asses future supply
Establish HR plan
Recruiting from a Diverse
Population
Recruitment: The set of activities used to
obtain a sufficient number of the right people
at the right time; its purpose is to select those
who best meet the needs of the organization.
Not always easy
Internal candidates
External candidates
Difficult for small businesses
Selecting Employees: The process
of gathering information and deciding
who should be hired, under legal
guidelines, for the best interests of the
.individual and the organization
 Selecting Employees
Expensive process
Six-step selection process:
Obtain complete application forms.
Conduct initial and follow-up interviews.
Give employment tests.
Conduct background investigations.
Obtain results from physical exams.
Establish trial periods.
Contingent workers (part-time workers,
independent contractors)
 BONUS CASE 4-1 Patagonia: Surfs Up at
Patagonia!
(Video Case)
 Training and Development
include all attempts to improve
productivity by increasing an employees
ability to perform.
3 steps: Assessing, Designing, Evaluating
Employee orientation: the activity
that initiates new employees to the
organization, to fellow employees, to
their immediate supervisors, and to the
policies, practices, and objectives of the
firm.
 On-the-job-training: employees being
trained on the job immediately begin their
tasks and learn by doing, or by watching
and then imitating others.
Apprentice programs: involve a period
during which a learner works alongside an
experienced employee in order to master
the skills and procedures of a craft.
 Off-the-job training: occurs away from
the workplace and consists of internal or
external programs to develop skills, or to
foster personal development
Online training: employees attend
classes via the internet to get the necessary
training.
Vestibule training: is done in classrooms
where employees are taught on equipment
similar to that used on the job.
 Job simulation: the use of equipment that
duplicates job conditions and tasks so that
trainees can learn skills before attempting
them on the job.
Management training: the process of
training and educating employees to
become good managers and then
monitoring the progress of their
managerial skills over time.
 Compensation
is the combination of salary, vacation
time, paid health care, and other
benefits.
Competition for employees
Long-term success
Labor intensive firm: a type of
business where the primary cost of
operations is the cost of labor.
 Objectives of a carefully managed
compensation and benefits
program:
Attract efficient employees
Provide work incentive
Keep valued employees
Maintain competitive position
Provide employees with financial
security
 Pay Systems
Salary
Hourly wage or day work
Piecework system
Commission plans
Bonus plans
Profit-sharing plans
Stock options
Fringe benefits
Health benefits
401k plans
 Appraising Employees
Performance Appraisal: is an
evaluation in which the performance
level of employees is measured
against established standards to
make decisions about promotions,
compensation, additional training,
or firing.
Six steps for appraising employees
1. Establish standards: This is a crucial
step. Standards must be
understandable, subject to
measurement, and reasonable.

Communicate standards: Managers. 2

often assume the employees know what is
expected of them, but such assumptions
. are dangerous and not usually warranted
 Evaluate performance: If the first two. 3
steps are done correctly, performance
evaluation is relatively easy. It is a matter of
evaluating the employees behavior to see if
.it matches the standards

Discuss results: Everyone fails or. 4

makes mistakes from time to time and it
.takes time to learn a new job and do it well
 Take corrective action: One way to help. 5
employees improve is by working with them on a
performance improvement plan (PIP).
Performance Improvement Plan (PIP): is a
detailed document explaining what the employee
needs to change and detailed steps on how to
accomplish the change
Use results to make decisions: Decisions. 6
about promotions, compensation, additional
training, and firing are all based on performance
evaluations
 Alternatives to Traditional
Scheduling
Flextime plan: give employees some freedom
to choose when to work, as long as they work
the required number of hours.
Usually, flextime plans incorporate core time.
Core time: refers to the period when all
employees are expected to be at their job
stations. Outside of core time, they can set their
own hours.
 Compressed workweek: employees
work a full specified workweek in less than
the standard number of days.
Telecommuting: working from home.
Job sharing: is an arrangement whereby
two part-time employees share one full-
time job.
 Laws Affecting HRM
Laws and Government Programs
Protecting Equal Opportunity
Title VII of the Civil Rights Act of 1964
Equal Employment Opportunity Act (EEOA)
1972
Affirmative action
Family Medical Leave Act(FMLA)
 Laws Protecting the Disabled
Vocational Rehabilitation Act of 1973
Americans with Disabilities Act (ADA) of 1990
Reasonable accommodation.
Laws Protecting Aging Employees
Age Discrimination in Employment Act (ADEA)
of 1967.
40 years of age or older.
20 or more employees.
Allows age limits for certain jobs
Challenges in Human Resources
Employee relations
Working with Unions
Industrial revolution
Knights of Labor (1869 union)
American Federation of Labor (AFL)
Industrial unions
Congress of Industrial Organizations (CIO)
American Federation of Labor (AFL)
Congress of Industrial Organizations (CIO)
Negotiation Tactics used by Unions
Labor contract
Strike, boycott
Mediation, arbitration

Negotiation Tactics used by

Management:
Lockout
Injunction
 Executive Compensation
Going rate
Determined by profitability
Stock options
Golden parachute: the massive amount of
bonuses received by upper level executives
upon leaving a company
Globalization
HR completes same functions
Cultural difference are critical

Work-life Balance
Win-win situation
 Comparable Worth
Beyond equal pay
Sexual harassment
Hostile work environment
90% settled out of court
Quid pro quo
Securing and Retaining the Best Workers
Motivation
Expensive to hire new employees