CHAPTER 8

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Managing Human Resources and Labor Relations

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Chapter Outline

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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 Management (HRM)?

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

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The Strategic Importance of HRM

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The importance of HR stems from:

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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Human Resource Planning

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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 Process

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Forecasting HR Demand and Supply

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Forecasting the supply of labor is two tasks:

Forecasting internal supplythe number and type of employees who will be in the firm at some future date Forecasting external supplythe 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 Supply

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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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Staffing the Organization

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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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Selecting Human Resources

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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

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Training
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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Performance Rating Schedule

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What is a Compensation System?

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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

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Wages are paid for time worked

Salary is paid for discharging the responsibilities of a job

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What Are Incentive Programs?

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Special pay programs designed to motivate high performance

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Individual Incentives

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Bonuses are special payments above 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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Companywide Incentives

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Profit-sharing plans distribute bonuses to employees when company profits rise above a certain level Gainsharing plans distribute bonuses to employees when a companys 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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What Are Benefits?

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

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Benefits Programs

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Workers compensation 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 Opportunity?

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

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What is a Protected Class?

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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 Opportunity

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

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Contemporary Legal Issues in HR Management

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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

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AIDS in the Workplace 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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What is Workforce Diversity?

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

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Changing Composition of the U.S. Workforce

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What is a Knowledge Worker?

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Employees who are of value because of the knowledge they possess

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What is a Contingent Worker?

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Employee hired on something other than a full-time basis to supplement an organizations permanent workforce
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Dealing With Organized Labor

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Labor union is a group of 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 unionrepresented workers
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Unionism Today

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Trends in Union Membership

Trends in Union-Management Relations

Trends in Bargaining Perspectives The Future of Unions

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Trends in Union Membership

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The Bargaining Zone

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Contract Issues

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Compensation

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

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Strike occurs when 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

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Lockouts occur when employers deny 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

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Mediation is a method in which a third party (a 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
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