Chapter 11

working with people is just the beginning

human resource management: process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organization goals.

the human resource challenge: the most dramatic changes that have impacted the US businesses are the ones in the labor force.

laws affecting human resource management

affirmative action: employment activities designed to right past wrongs by increasing opportunities for minorities and women

reverse discrimination: discrimination against members of a dominant or majority group

effects of legislation:


-employers must know and act in accordance with the legal rights of their employees or risk costly court cases


-legislation affects all areas of human resource management, from hiring and training to compensation


-court cases demonstrate that it is sometimes legal to provide special employment and training to correct discrimination in the past


-new court cases and legislation change human resource management almost daily; the only way to keep current is to read the business literature and stay familiar with emerging issues

determining a firm's human resource needs

  1. preparing a human resource inventory of the organization's employees
  2. preparing a job analysis
  3. assessing future human resource demand
  4. assessing future labor supply
  5. establishing a strategic plan

selecting employees who will be productive

6 steps of the selection process

  1. obtaining complete application forms
  2. conducting initial and follow-up interviews
  3. giving employment tests
  4. conducting background investigations
  5. obtaining results from physical exams
  6. establishing trial (probationary) periods

training and developing employees for optimum performance

  • orientation
  • on the job training
  • apprentice programs
  • off the job training
  • online training
  • vestibule training
  • job simulation

management development:

  • on the job coaching
  • understudy positions
  • job rotations
  • off the job courses and training

appraising employee performance to get optimum results

  1. establishing performance standards
  2. communicating those standards
  3. evaluating performance
  4. discussing results with employees
  5. taking corrective action
  6. using the results to make decisions

compensating employees: attracting and keeping the best

  • attracting the kinds of people organization needs, and in sufficient numbers
  • providing employees with the incentive to work efficiently and productively
  • keeping valued employees from going to competitors or starting competing firms
  • maintaining a competitive position in the marketplace by keeping costs low through high productivity from a satisfied workforce
  • providing employees with some sense of financial security through fringe benefits such as insurance and retirement benefits

pay systems:

  • salary
  • hourly wage or daywork
  • piecework system
  • commission plans
  • bonus plans
  • profit sharing plans
  • gain sharing plans
  • stock options

scheduling employees to meet organizational and employee needs

job sharing plans:

  • employment opportunities for those who cannot or prefer not to work full time
  • an enthusiastic and productive workforce
  • reduced absenteeism and tardiness
  • ability to schedule part time workers into peak demand periods
  • retention of experience employees who might otherwise have retired