Chapter 11

Human Resource
Management: Finding
and Keeping the Best
Employees

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 KEY TERMS
Human Resource Management
Title VII of the Civil Rights Act
Affirmative Action
Reverse Discrimination
Job Description
Job Analysis
Selection
Recruitment
Cafeteria Style Fringe Benefits
Performance Appraisal
Job Sharing
Fringe Benefits
Networking
Training & Development
Americans with Disabilities Act
Mentor
Five (5) Steps in the Human Resource Planning Process
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 Working with People Is Just the Beginning

Human Resource Management (HRM) —

(defined)
The process of determining human resource
needs and then recruiting, selecting,
developing, motivating, evaluating,
compensating, and scheduling employees to
achieve organizational goals.
HRM’s role has grown because of:
• Increased recognition of employees as a resource
• Changes in law that rewrote old workplace
practices

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 Sequence
of Nine (9)
Steps in
Human
Resource
Manageme
nt

Jump to long
description in appendix
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 Growing Job Markets
U.S. firms face a shortage of workers skilled in
areas such as: sustainable engineering and
the development of clean energy sources like
these solar panels, also computer coding,
artificial intelligence, etc.

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 Laws Affecting Human Resource
Management

Civil Rights Act of 1964

(defined) Title VII of the Civil Rights Act --
prohibits discrimination in hiring, firing,
compensation, apprenticeships, training, terms,
conditions, or privileges of employment based on:
Race, Religion, Creed, Sex, Sexual Orientation
National Origin, Age

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 Laws Affecting Human Resource
Management

1972 Equal Employment Opportunity Act

(EEOA)
• The EEOA strengthened the Equal Employment
Opportunity Commission (EEOC).
• It gave EEOC the right to issue workplace
guidelines for acceptable employer conduct.
• EEOC could mandate specific recordkeeping
procedures.
• EEOC was vested with the power of enforcement.

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 Laws Affecting Human Resource
Management
Controversial Procedures of the EEOC
(defined) Affirmative Action — Employment
activities designed to “right past wrongs” by
increasing opportunities for minorities and women.

(defined) Reverse Discrimination — Discrimination

against whites or males in hiring or promotion.
• This policy has been at the center of many debates
and lawsuits.
• Many feel that although its original intentions were
obviously necessary the fact is that it has now gone
full circle and corrected injustices because many
minorities have achieved leadership, decision
making and hiring status roles.

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 Laws Affecting Human Resource
Management

Civil Rights Act of 1991

• Amended Title VII and gave victims of
discrimination the right to a jury trial and possible
damages
Office of Federal Contract Compliance Programs
(OFCCP)
• Ensures that employers doing business with the
federal government comply with the
nondiscrimination and affirmative action laws

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 Laws Affecting Human Resource
Management

Laws Protecting Employees with Disabilities

and Older Employees continued
(defined)Age Discrimination in Employment Act
(ADEA)-- protects workers 40 and over from
employment and workplace discrimination in hiring,
firing, promotion, layoff, compensation, benefits, job
assignments, and training.

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 Laws Affecting Human Resource
Management

Laws Protecting Employees with Disabilities and Older

Employees
Americans with Disabilities Act of 1990 (ADA)
• Requires employers to give applicants with physical or
mental disabilities the same consideration for
employment as people without disabilities.
• Passage in 2008 of Americans with Disabilities
Amendments Act expanded protection.
• 2011 saw regulations that widen the range of
disabilities covered by the ADA and shift the burden of
proof of disability from employees to employers.

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 The Americans with
Disabilities Act
The Americans with
Disabilities Act
guarantees that all
U.S. workers have
equal opportunity in
employment. This
legislation requires
businesses to make
“reasonable
accommodations” on
the job for people with
disabilities.

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 Determining a Firm’s Human Resource
Need

Basically What is a Job Analysis?

(defined) Job Analysis — A study of what is done by
employees who hold and perform the various job
titles.

(defined) Job Description — A summary of the

objectives of a job, the type of work to be done, the
responsibilities and duties, the working conditions,
and the relationship of the job to other functions.

(defined) Job Specifications — A written summary of

the minimum qualifications required of workers to do
a particular job.

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 Laws Affecting Human Resource
Management

Effects of the Various Measures of

Legislation
1. Employers must know the law and act accordingly.
2. Legislation affects all areas of HRM.
3. Court cases highlight that sometimes it’s proper to
go beyond
providing equal rights.
4. Changes in law and legislation occur regularly.

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 Determining a Firm’s Human Resource
Need

Five (5) Steps in the Human Resource Planning

Process
1. Preparing a human resource inventory of
employees
2. Preparing a job analysis
3. Assessing future human resource demand
4. Assessing future labor supply
5. Establishing a strategic plan

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 Recruiting Employees from a
Diverse Population
Recruitment — The set of activities used
(defined)
to obtain a sufficient number of the right people
at the right time.
Human resource managers use both internal
and external sources to recruit employees.
Small businesses often make use of web
sources like GlassDoor, Indeed, and LinkedIn to
recruit employees.

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 Selecting Employees Who Will
Be Productive
Six (6) Steps in the Selection Process
1. Obtaining complete application forms
2. Conducting initial and follow-up interviews
3. Giving employment tests (not always done)
4. Conducting background investigations
5. Obtaining results from physical exams
6. Establishing trial (probationary) periods

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 Employee Sources

Jump to long
description in appendix
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 Selecting Employees Who Will
Be Productive
Selection — The process of gathering
(defined)
information and deciding who should be hired,
under legal guidelines, for the best interests of
the individual and the organization.

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 Oops!
Areas Where Job Applicants Make Mistakes

• They don’t meet the position’s minimum

requirements.
• They don’t follow directions or proofread
before submitting the application.
• They don’t take the time to personalize their
cover letter or use a generic résumé.
• They forget important information like
providing their contact information.
• They copy and paste the job description in
their cover letter.

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 Selecting Employees Who Will
Be Productive
Hiring Contingent Workers
(defined) Contingent Workers — Workers who do
not have the expectation of regular, full-time
employment.
• There are about 5.7 million contingent workers in
the U.S.
• The majority of the contingent workers are under
the age of 25.

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 Training and Developing
Employees for Optimum
Performance
(defined) Training and Development — All
attempts to improve productivity by increasing
an employee’s ability to perform.
Training focuses on short-term skills.
Development focuses on long-term abilities.

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 Training and Developing
Employees for Optimum
Performance
(defined) Management Development — The
process of training and educating employees to
become good managers and then monitoring the
progress of their managerial skills over time.
• Management training includes:
• On-the-job coaching
• Understudy positions
• Job rotation
• Off-the-job courses and training

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 Why Good Employees Quit

Jump to long
description in appendix
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 Training and Developing
Employees for Optimum
Performance
(defined) Networking — The process of establishing
and maintaining contacts with key managers in one’s
own organization and other organizations and using
those contacts to weave strong relationships that
serve as informal development systems.

(defined) Mentors — An experienced employee who

supervises, coaches, and guides lower-level
employees by introducing them to the right people
and generally being their organizational sponsor.

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 Appraising Employee
Performance to Get Optimum
Results
(defined) Performance Appraisal — An evaluation
that measures employee performance against
established standards in order to make
decisions about promotions, compensation,
training, or termination.

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 Pay Systems

Jump to long
description in appendix
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 Pay Systems

Jump to long
description in appendix
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 Compensating Employees:
Attracting and Keeping the
Best
Fringe Benefits
(defined) Fringe benefits — Benefits such as sick-
leave pay, vacation pay, pension plans, and health
plans that represent additional compensation to
employees beyond base wages. Health care has been
the most significant increase in fringe benefit cost.

NOTE: In 1929, fringe benefits accounted for less

than 2 percent of payroll cost. Today it’s over 30
percent.

So in effect…If you are working for a firm and

earning $60,000, and this firm has a full-fringe benefit
program, you are actually earning nearly $78,000.
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 Compensating Employees:
Attracting and Keeping the Best

(defined) Cafeteria-style fringe benefits — a fringe

benefit plan that allows employees to choose the
benefits they want up to a certain dollar amount.
Some generous firms additionally offer Soft Benefits which
include:
• On-site haircuts and shoe repair
• Concierge services, laundry facilities, massages at
work
• Free meals at work
• Free car washes
• Paid paternal leave

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 Scheduling Employees to Meet
Organizational and Employee
Needs
(defined) Flextime Plan — Work schedule that
gives employees some freedom to choose when
to work, as long as they work the required
number of hours.
Compressed Workweek — Work schedule
(defined)
that allows employees to work a full number of
hours per week but in fewer days.
Job Sharing — An arrangement whereby
(defined)
two part-time employees share one full-time job.

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 An Amazing Graphic
Areas Where Job Applicants Make Mistakes

11-32
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 Here is where our

EXTRA CREDIT

opportunity will clearly

demonstrate
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