Human Resource Management: Finding and Keeping the Best Employees

Overview of Human Resource Management (HRM)

• Definition: Previously termed "personnel" management, focusing mainly on clerical tasks.
• Key Changes in HR:
  • Recognition of employees as an organization’s ultimate resource.
  • Legal changes that have transformed traditional HR practices.

Legal Environment

• Key Laws:
  • Civil Rights Act of 1964: Outlaws discrimination based on race, color, religion, sex, or national origin.
  • Equal Employment Opportunity Act (EEOA): Enforces the Civil Rights Act.
  • Affirmative Action: May cause reverse discrimination.
  • Americans with Disabilities Act (ADA): Requires reasonable accommodations for employees with disabilities.
  • Age Discrimination in Employment Act (1967): Protects older employees from discrimination.

Human Resource Planning Process

1. Inventory of current employees.
2. Job Analysis:
   • Job Description: Outlines responsibilities of the position.
   • Job Specifications: Details qualifications and experience required.
3. Assess Future Demand for human resources.
4. Evaluate Labor Supply.
5. Develop Strategic Plan based on assessments.

Recruitment Strategies

• Objective: To find candidates who best match organizational needs.
• Sources:
  • Internal Sources: Transfers, promotions, and employee referrals.
  • External Sources: Job fairs, advertisements, recruitment agencies, and internet job postings.

Selection Process of Employees

• Cost Implications: The selection process can be costly, averaging 50% of an employee's salary.
• Steps in Selection:
  1. Complete application forms.
  2. Conduct initial and follow-up interviews.
  3. Administer employment tests.
  4. Background checks.
  5. Physical examinations.
  6. Establish trial periods.
• Contingent Workers: Often part-time or temporary workers, usually less compensated with fewer benefits to meet demand peaks.

Employee Training and Development

• Importance: Enhances retention, productivity, and job satisfaction.
• Training vs. Development: Training focuses on short-term skills; development on long-term capabilities.
• Steps:
  1. Assess training needs.
  2. Design training activities.
  3. Evaluate effectiveness.
• Trainings: Can include orientations, on-the-job training, simulations, and job rotation.

Performance Appraisal

• Key Steps:
  1. Set performance standards.
  2. Communicate standards.
  3. Evaluate performance.
  4. Discuss results with the employee.
  5. Take corrective action if necessary.
  6. Use results for decision-making.
• Methods: Continuous reviews and 360-degree feedback.

Compensation and Fringe Benefits

• Pay Systems:
  • Salaries, hourly wages, piecework, commission, bonuses, profit-sharing, and stock options.
  • Fringe benefits: Health plans, paid leave, pension plans, etc.

Scheduling and Job Design

• Flextime allows staff to have flexibility in their schedules.
• Compressed Workweek: May increase productivity, but could also lead to declines.
• Job-sharing creates part-time roles, benefiting the organization and employees needing flexibility.

Employee Movement and Termination

• Promotions: Fostering internal mobility boosts morale and reduces costs.
• Termination: Must be conducted within legal guidelines to avoid discrimination lawsuits.
• Exit Interviews: Useful for gathering feedback from departing employees.

Labor Relations

• Unions: Started to protect workers' rights; has faced declines in membership.
• Collective Bargaining: Involves negotiation on wages, work conditions, etc.
• Dispute Resolution: Includes mediation and arbitration processes to resolve conflicts.

Exam Preparation Questions

1. Outline the five steps in human resource planning.
2. What challenges exist in recruiting qualified personnel?
3. Enumerate the six steps in the employee selection process.
4. Define contingent workers and the reasons for their employment.
5. What issues are commonly addressed in labor contracts?
6. Describe the major tactics used by unions and management during negotiations.