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Human Resource

Management
ELEVENTH EDITION
1
GARY DESSLER

Part 1 | Introduction

Chapter 1

Introduction to Human Resource Management

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
Human Resource Management

• What Is Human Resource Management


(HRM)?

The policies and practices involved in carrying out


the “people” or human resource aspects of a
management position, including recruiting,
screening, training, rewarding, and appraising.

The bottom line of managing: getting results

© 2008 Prentice Hall, Inc. All rights reserved. 1–2


Manager and Staff

• Manager
who is authorized to direct the work of subordinates
and is responsible for accomplishing the
organization’s tasks.

• Staff
who assists and advises managers.

© 2008 Prentice Hall, Inc. All rights reserved. 1–3


Managers’ HRM Responsibilities

1. Interpreting the firm’s policies and procedures


2. Placing the right person on the right job
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Developing the abilities of each person
6. Protecting employees’ health and physical condition
7. Controlling labor costs

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The HR Manager’s Proficiencies

HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies

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Managing Within Law

• Managing within the Law


Labor Laws
Equal Employment Laws
Safety and Health Laws

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HR Certification

• HR is becoming more professionalized.


• Society for Human Resource Management
(SHRM)
HR Certification Institute (HRCI)
❖ SPHR (senior professional in HR) certificate
❖ PHR (professional in HR) certificate

© 2008 Prentice Hall, Inc. All rights reserved. 1–7


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 1 | Introduction

Chapter 3

Strategic Human Resource Management

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
The Strategic Management Process

• Strategic Management
The process of identifying and executing the
organization’s mission by matching its capabilities
with the demands of its environment.
• Vision
A general statement of an organization’s intended
direction that evokes emotional feelings in
organization members.
• Mission
who the company is, what it does, and where it’s
headed.

© 2008 Prentice Hall, Inc. All rights reserved. 3–9


Types of Strategies

Corporate-Level
Strategies

Vertical Consolidation Geographic


Diversification
Integration Expansion

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Types of Strategies (cont’d)

Business-Level/
Competitive Strategies

Cost Leadership Differentiation Focus/Niche

© 2008 Prentice Hall, Inc. All rights reserved. 3–11


Strategic Human Resource Management

• Strategic Human Resource Management


linking of HRM with strategic goals and objectives
in order to improve business performance
and develop organizational cultures
that foster innovation and flexibility.

© 2008 Prentice Hall, Inc. All rights reserved. 3–12


Strategic Human Resource Challenges

Basic Strategic
Challenges

Corporate Expanded role Increased


productivity of employees HR team
and involvement
in the
performance organization’s in design of
improvement performance strategic plans
© 2008 Prentice Hall, Inc. All rights reserved. 3–13
Creating the Strategic HRM System

Components of
a Strategic HRM System

Human Resource Employee


Human Resource
Policies and Behaviors and
Professionals
Practices Competencies

© 2008 Prentice Hall, Inc. All rights reserved. 3–14


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 2 | Recruitment and Placement

Chapter 4

Job Analysis

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
Methods of Collecting Job Analysis Information:
The Interview

• Information Sources
Individual employees
Groups of employees
Supervisors with knowledge of the job

• Interview Formats
Structured (Checklist)
Unstructured

© 2008 Prentice Hall, Inc. All rights reserved. 4–16


Methods of Collecting Job Analysis Information:
Questionnaires

• Information Source
Ask employees for fill out questionnaires to
describe their job-related duties and
responsibilities

• Questionnaire Formats
Structured checklists
Open-ended questions

© 2008 Prentice Hall, Inc. All rights reserved. 4–17


Methods of Collecting Job Analysis Information:
Observation

• Information Source
Observing and noting the
physical activities of
employees as they go
about their jobs

• Observation Formats
Direct Observation
Participant Observation

© 2008 Prentice Hall, Inc. All rights reserved. 4–18


Methods of Collecting Job Analysis Information:
Diary/Logs
• Information Source
Workers keep a
chronological diary/ log of
what they do and the time
spent on each activity

• Diary/Logs Formats
Formal Diary/Logs
Informal Diary/Logs

© 2008 Prentice Hall, Inc. All rights reserved. 4–19


Job Descriptions

Job
Identification

Job Job
Specifications Summary

Job Description
Working Responsibilities
Conditions and Duties

Standards of Authority of the


Performance Incumbent

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Job Specifications

“What traits and experience


are required to do this job
well?”

Trained Versus Based on Based on


Untrained Personnel Judgment Statistical Analysis

© 2008 Prentice Hall, Inc. All rights reserved. 4–21


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 2 | Recruitment and Placement

Chapter 5

Personnel Planning and Recruiting

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
Forecasting Personnel Needs

Forecasting
Tools

Trend Ratio Scatter


Analysis Analysis Plotting

© 2008 Prentice Hall, Inc. All rights reserved. 5–23


Finding Internal Candidates

Rehiring Former
Job Posting
Employees

Hiring from
Within

Succession
Planning (HRIS)

© 2008 Prentice Hall, Inc. All rights reserved. 5–24


Finding External Candidates

Employment
Agencies

Public Nonprofit Private


Agencies Agencies Agencies

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Recruiting Effectiveness

Evaluating
Recruiting
Effectiveness

What to Measure How to Measure

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Recruiting Consideration

Single Parents

The Disabled Older Workers

Minorities and
Welfare-to-Work
Women

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Application Forms

Uses of
Application
Information

Applicant’s Applicant’s Applicant’s Applicant’s


education and progress and employment likelihood of
experience growth stability success

© 2008 Prentice Hall, Inc. All rights reserved. 5–28


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 3 | Training and Development

Chapter 8

Training and Developing Employees

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
Analyzing Training Needs

Training Needs
Analysis

Task Analysis: Performance Analysis:


New Employees’ Current Employees’
Training Needs Training Needs

© 2008 Prentice Hall, Inc. All rights reserved. 8–30


New Employees’ Training Needs

Orientation Helps
New Employees

Know What
Feel Understand Begin the
Is Expected
Welcome the Socialization
in Work and
and At Ease Organization Process
Behavior

© 2008 Prentice Hall, Inc. All rights reserved. 8–31


Current Employees’ Training Needs

Assessment Center Performance


Appraisals

Individual Diaries Methods for Job Performance


Identifying Data
Training
Needs
Attitude Surveys Observations

Tests Interviews

© 2008 Prentice Hall, Inc. All rights reserved. 8–32


Distance and Internet-Based Training

Teletraining

Videoconferencing
Distance
Learning
Methods Internet-Based
Training

E-Learning and
Learning Portals

© 2008 Prentice Hall, Inc. All rights reserved. 8–33


Management Development

Managerial
On-the-Job
Training

Job Coaching Action


Rotation Approach Learning

© 2008 Prentice Hall, Inc. All rights reserved. 8–34


Managing Organizational Change

What to Change

Strategy Culture Structure Technologies Employees

© 2008 Prentice Hall, Inc. All rights reserved. 8–35


Managing Organizational Change

The Human Resource


Manager’s Role

Effectively using
Organizing and
Overcoming organizational
leading
resistance to change development
organizational change
practices

© 2008 Prentice Hall, Inc. All rights reserved. 8–36


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 3 | Training and Development

Chapter 9

Performance Management and Appraisal

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
Performance Appraisal vs
Performance Management

Performance Appraisal vs
Performance Management

Performance Appraisal: Performance Management:


Setting work standards, assessing integrated approach to ensuring
performance, and providing that an employee’s performance
feedback to employees supports and contributes to
to motivate, correct, and continue the organization’s strategic aims.
their performance.

© 2008 Prentice Hall, Inc. All rights reserved. 9–38


Why Performance Management ?

1. Total Quality Issues

The
Performance
2. Appraisal Issues
Management
Approach
3. Strategic Focus

© 2008 Prentice Hall, Inc. All rights reserved. 9–39


Defining the Employee’s Goals

Guidelines for
Effective Goal Setting

Specific Measurable Achievable Relevant &


Goals Goals Goals Time-Based

© 2008 Prentice Hall, Inc. All rights reserved. 9–40


Appraising Performance:
Problems

Appraisal
Problems

Unclear Halo Central Leniency or


Bias
Standards Effect Tendency Strictness

© 2008 Prentice Hall, Inc. All rights reserved. 9–41


Appraising Performance:
Solutions

How to Avoid
Appraisal Problems

Control
Know Use the Train Keep
Outside
Problems Right Tool Supervisors a Diary
Influences

© 2008 Prentice Hall, Inc. All rights reserved. 9–42


Who Should Do the Appraising?

Immediate
Self-Rating
Supervisor

Potential
Peers Subordinates
Appraisers

Rating 360-Degree
Committee Feedback

© 2008 Prentice Hall, Inc. All rights reserved. 9–43


The Appraisal Interview

Satisfactory—Promotable

Satisfactory—Not Promotable
Types of Appraisal
Interviews
Unsatisfactory—Correctable

Unsatisfactory—Uncorrectable

© 2008 Prentice Hall, Inc. All rights reserved. 9–44


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 4 | Compensation

Chapter 11

Establishing Pay Plans

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
Basic Factors in Pay Rates

Employee
Compensation

Direct Financial Indirect Financial


Payments Payments

© 2008 Prentice Hall, Inc. All rights reserved. 11–46


Addressing Equity Issues

1. Salary Surveys

2. Job Evaluation
Methods to
Address Equity
Issues
3. Performance Appraisal

4. Employees’ Participation

© 2008 Prentice Hall, Inc. All rights reserved. 11–47


1. Salary Survey

Uses for Salary Surveys

make decisions
benchmark jobs market-price salary
about benefits

© 2008 Prentice Hall, Inc. All rights reserved. 11–48


1. Salary Survey

Salary Information

Self-
Consulting Professional Government The
Conducted
Firms Associations Agencies Internet
Surveys

© 2008 Prentice Hall, Inc. All rights reserved. 11–49


2. Job Evaluation

Skills

Effort
Job Evaluation:
Identifying
Compensable Factors
Responsibility

Working Conditions

© 2008 Prentice Hall, Inc. All rights reserved. 11–50


2. Job Evaluation

Methods for
Evaluating Jobs

Job
Ranking Point Factor
Classification
Method Method Comparison
Method

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3. Competency-Based Pay

Compensating Executives
and Managers

Executive
Base Short-term Long-Term
Benefits and
Pay Incentives Incentives
Perks

© 2008 Prentice Hall, Inc. All rights reserved. 11–52


3. Competency-Based Pay

Why Use
Competency-Based Pay?

Support High- Support


Support Strategic
Performance Work Performance
Aims
Systems Management

© 2008 Prentice Hall, Inc. All rights reserved. 11–53


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 4 | Compensation

Chapter 12

Pay for Performance

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
Employee Incentive Plans

Individual Employee Incentive


and Recognition Programs

Sales Compensation
Programs

Pay-for- Team/Group-based Variable


Performance Pay Programs
Plans
Organizationwide Incentive
Programs

Executive Incentive
Compensation Programs

© 2008 Prentice Hall, Inc. All rights reserved. 12–55


Salespeople

• Salary Plan
Straight salaries
❖ prospecting, account servicing, train customer’s salesforce,
or participating in trade shows.

• Commission Plan
Pay is a percentage of sales results.
❖ sales costs to sales revenues.
❖ create wide variation in salesperson’s income.
❖ salesperson’s performance (external factors ?)
❖ can increase turnover of salespeople.

© 2008 Prentice Hall, Inc. All rights reserved. 12–56


Team/Group Incentive Plans

• Team (or Group) Incentive Plans


Incentives are based on team’s performance.

• How to Design Team Incentives


Set individual work standards.
Calculate each member’s output.
Members are paid based on one of three formulas:
❖ All receive the same pay earned by the highest producer.
❖ All receive the same pay earned by the lowest producer.
❖ All receive the same pay equal to the average pay earned
by the group.

© 2008 Prentice Hall, Inc. All rights reserved. 12–57


Organizationwide Incentive Plans

• Employee Stock Ownership Plan (ESOP)


A firm annually contributes its own stock—or cash
(with a limit of 15% of compensation) to be used to
purchase the stock—to a trust established for the
employees.
The trust holds the stock in individual employee
accounts and distributes it to employees upon
separation from the firm if the employee has worked
long enough to earn ownership of the stock.

© 2008 Prentice Hall, Inc. All rights reserved. 12–58


Gainsharing Plans

Gainsharing Plan

Sharing of
Cooperation Identity Competence Involvement
Benefits

© 2008 Prentice Hall, Inc. All rights reserved. 12–59


At-Risk Variable Pay Plans

• Put some portion of the employee’s


weekly pay at risk.
If employees meet or exceed their goals,
they earn incentives.
If they fail to meet their goals, they forgo
some of the pay they would normally have
earned.

© 2008 Prentice Hall, Inc. All rights reserved. 12–60


Incentives for Managers and Executives

• Short-Term Incentives: The Annual Bonus


Plans that are designed to motivate short-term
performance of managers and are tied to company
profitability.

© 2008 Prentice Hall, Inc. All rights reserved. 12–61


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 4 | Compensation

Chapter 13

Benefits and Services

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
Benefits

Types of Employee Benefits

1. 2. 3. 4.
Supplemental Insurance Retirement Employee
Pay Benefits Benefits Services

© 2008 Prentice Hall, Inc. All rights reserved. 13–63


1. Supplemental Pay (For Time Not Worked)

Unemployment Vacations and Holidays


Insurance

Sick Parental
Leave Supplemental Leave
Pay Benefits

Severance Supplemental
Pay Unemployment Benefits

© 2008 Prentice Hall, Inc. All rights reserved. 13–64


2. Insurance Benefits

• Workers’ Compensation
medical benefits to work-related accident victims
❖ Death or disability: a cash benefit
❖ Specific loss injuries: statutory list of losses

controlling workers’ compensation costs


❖ Make the workplace safer.
❖ investigate accident claims.
❖ to return injured employees to work as soon as possible.

© 2008 Prentice Hall, Inc. All rights reserved. 13–65


3. Retirement Benefits

Policy Issues In
Pension Planning

Membership Benefit Plan


Vesting
Requirements Formula Funding

© 2008 Prentice Hall, Inc. All rights reserved. 13–66


4. Employee Service (Flexible Benefits)

• Cafetaria
Each employee is given a limited benefits fund budget to
spend on cafe

• Flexible Work Arrangements


Flextime schedules & Compressed schedules
Job sharing & Work sharing
Telecommunication

© 2008 Prentice Hall, Inc. All rights reserved. 13–67


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 5 | Employee Relations

Chapter 15

Labor Relations and Collective Bargaining

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
Unions

• Level of Union
Local unions
National unions
National federation

• Change to Win Coalition

© 2008 Prentice Hall, Inc. All rights reserved. 15–69


The Collective Bargaining Process
• What Is Collective Bargaining?
Both management and labor are required to
negotiate wages, hours, terms and conditions of
employment “in good faith.”

• What Is Good Faith Bargaining?


Both parties communicate and negotiate.
They match proposals with counterproposals to
arrive at an agreement.

© 2008 Prentice Hall, Inc. All rights reserved. 15–70


Classes of Bargaining Items

Categories of
Bargaining Items

Mandatory Voluntary Illegal


Items Items Items

© 2008 Prentice Hall, Inc. All rights reserved. 15–71


Impasses, Mediation, and Strikes
• An Impasse
Usually occurs because one party is demanding
more than the other will offer.
Sometimes an impasse can be resolved through
a third party (Mediator).
If the impasse is not resolved:
❖ The union may call a work stoppage, or strike, to
put pressure on management.
❖ Management may lock out employees.

© 2008 Prentice Hall, Inc. All rights reserved. 15–72


Strikes

Economic Strike

Unfair Labor Practice Strike

Types of Strikes
Wildcat Strike

Sympathy Strike

© 2008 Prentice Hall, Inc. All rights reserved. 15–73


Grievances (Issue)
• Grievance • Sources of Grievances
Any factor involving Discipline
wages, hours, or Seniority
conditions of employment
that is used as a Job evaluations
complaint against the Work assignments
employer. Overtime
Vacations
Incentive plans
Holiday pay
Problem employees

© 2008 Prentice Hall, Inc. All rights reserved. 15–74


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 5 | Employee Relations

Chapter 16

Employee Safety and Health

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
What Causes Accidents?

Basic Causes
of Accidents

Chance
Unsafe Conditions Employee
Occurrences

© 2008 Prentice Hall, Inc. All rights reserved. 16–76


Unsafe Conditions

Improperly Guarded
Equipment

Improper Ventilation Defective Equipment

Unsafe
Conditions
Improper Hazardous
Illumination Procedures

Unsafe
Storage

© 2008 Prentice Hall, Inc. All rights reserved. 16–77


Controlling Workers’ Accident

• Before the Accident


Communicate written safety and substance abuse
policies to workers and then strictly enforce policies.

• After the Accident


Be proactive in providing first aid, and make sure
the worker gets quick medical attention.
Make it clear that you are interested in the injured
worker and his/her fears
Document the accident; file required reports.

© 2008 Prentice Hall, Inc. All rights reserved. 16–78


Substance Abuse (Misbehavior)

Disciplining

Referral to When an Employee


Discharge
an Outside Agency Misbehavior

In-house
Counseling

© 2008 Prentice Hall, Inc. All rights reserved. 16–79


Violence at Work

• Steps to Reduce Workplace Violence:


Improve employee screening
Provide organizational justice
Pay attention to employee retention/dismissal
Take care when dismissing violent employees
Deal promptly with angry employees

© 2008 Prentice Hall, Inc. All rights reserved. 16–80


Evacuation Plans

• Evacuation contingency plans should contain:


early detection of a problem.
communicate the emergency exit
communicate plans for an evacuation.
communicate what action they should take next.

© 2008 Prentice Hall, Inc. All rights reserved. 16–81


Human Resource
Management
ELEVENTH EDITION
1
GARY DESSLER

Part 5 | Employee Relations

Chapter 17

Managing Global Human Resources

© 2008 Prentice Hall, Inc. PowerPoint Presentation by Charlie Cook


All rights reserved. The University of West Alabama
Intercountry Differences Affecting HRM

Cultural Economic
Factors Systems

International
HRM

Legal and Industrial


Relations Factors

© 2008 Prentice Hall, Inc. All rights reserved. 17–83


Issues in Global HR Practices

Personnel
Selection

International Performance
Pay Incentives
HRM Appraisal

Training and
Development

© 2008 Prentice Hall, Inc. All rights reserved. 17–84


International Labor Relations

Characteristics of
Labor Relations

Content and
Industry-Wide Employer Multiple Union
Scope of
Centralization Organization Recognition
Bargaining

© 2008 Prentice Hall, Inc. All rights reserved. 17–85


How to Implement a Global HR System

• condition for making a global HR system :


1. global organizations.
2. strong corporate culture.

• developing a more effective global HR system:


1. make local HR managers as a part of global teams.
2. standardize ends and competencies
• implementing the global HR system:
1. “You can’t communicate enough.”
2. resources for the global HR effort.

© 2008 Prentice Hall, Inc. All rights reserved. 17–86

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