TOPIC 7 :

MANAGING HUMAN
RESOURCES

Prepared By : Miss Noorsyalina Nordin

INTRODUCTION
TO BUSINESS
BUS 1231
LEARNING OBJECTIVES
After learning this chapter, the students should
be able to :
1.Understand the role of human resource
management in business

LEARNING OUTCOMES:
After learning this chapter, the students will be able to :
7.1Identify forecasting demand and supply and
evaluating job requirements
7.2 Explain recruiting, hiring and training
employees
7.3 Explain appraising employee performance and
linking compensation and benefit


#UNDERSTANDING HUMAN
RESOURCE MANAGERS DO

FACTOR TO
CONSIDER
HUMAN
RESOURCE
FUNCTION
HUMAN
RESOURCE
ACTIVITIES
HUMAN
RESOUR
CE
MANAGE
MENT
Definition:
Specialized function of
planning on how to
obtain employees,
oversee their training,
evaluate them and
compensate them
Training
Development
Motivation
Evaluation
Compensation
Attract qualified employees from a
shrinking poll of entry-level candidates
Train less educated, poorly skilled
employees
Keep experience employees when
they have fewer opportunities for
advancement
Lay off employees equitably when
downsizing is necessary
Train employees to cope with
increasing automation and
computerization
Manage increasingly complex
employee benefits programs
Shape workplace policies to address
changing workforce demographics
and employees needs
Planning for staffing needs
Recruiting and hiring
Training and development
Appraising performance
Administering
compensation and benefits
Overseeing changes in
employment status
# PLANNING FOR A
COMPANYS STAFFING NEEDS
Forecastin
g supply
and
demand
Evaluating
job
requiremen
t
Forecasting
demand
Forecasting
supply
Part time
and
temporary
employees
Outsourcing
Job analysis
Job
description
Job
specification
# RECRUTING, HIRING AND
TRAINING NEW EMPLOYEES
a.Internal
searches
b.Newspaper
and Internet
advertising
c.Public and
private
employment
agencies
d.Union hiring
hallsi
e.College
campuses and
career offices
f.Trade shows
g.Corporate
head-hunters
h.Referrals
A.Recruiting: the process of attracting suitable candidates for an
organizations jobs
B.THE HIRING PROCESS
S1-select a small number of qualified applicants
-may be chosen on basis of standard
application or resume
S2-interview each candidate to clarify
qualifications and fill in missing information
S3-call best applicants back for a second
interview ( or a series of interviews)
S4-positions supervisor evaluates candidates,
possibly consulting with higher management, the
human resources department and staff
S5-employer check references for top few candidates
-employer may also check candidates education , previous
employment, criminal record, motor vehicle record or credit history
S6-supervisors select person most
suitable for the job
#BACKGROUND CHECKS,
HIRING , LAW AND TESTING
2.BACKGROUND
CHECKS
A. Verifying all
educational credentials
and previous jobs
B. Accounting for any
large time gaps
between jobs
C. Checking references
D. Background checks
3.HIRING AND THE
LAW
Employees must
avoid discrimination
in application forms,
interview and tests
Employers must
avoid asking
unrelated questions
such as marital
status, age and
religion, disability
#BACKGROUND CHECKS,
HIRING , LAW AND TESTING
(CONT..)
1.Job skills tests-designed
to assess competency or
specific abilities needed to
perform a job
2.Psychological tests-used
to assess overall intellectual
ability, attitudes toward work,
interest, managerial potential
or personality characteristic
3.Drug testing- companies
with mandatory testing have
found real advantages,
including lower accident
rates, fewer disability claims
and decreased violence and
absenteeism
4.Testing
Many companies
rely on pre
employment testing
to determine
whether applicants
are suited for a job
or not
Companies are use
three tests: job
skills, psychological
and drug

# TRAINING AND DEVELOPMENT



Orientation programs usually
include information about
company background, equal
opportunity practices, safety
regulations, standards of
employee conduct, company
culture, employee compensation
and benefits plan, work times to
help employees understand their
role in a firm


Training
Most companies offer training
and retraining because employee
competence has a direct effect
on productivity and profits
Training often takes place at the
work site where experience
oversee training on the job or in a
classroom
Employee training may also
involve self-study using training
manuals, tests and interactive
modules


# APPRAISING EMPLOYEE
PERFORMANCE


A.Performance appraisal
systems
1.Attempt to objectively
evaluate employees
according to set criteria
2.Promotes fairness because
standards are usually job-
related
3.Goal is to improve
performance rather than
judge it
4.Periodic performance
evaluations give fast
feedback so that employees
can correct errors quickly
5.Written evaluations provide a
record of employees
performance and required the
employee to be rated by
several people
6.360 degree review: solicits
feedback from colleagues
above, below and around the
employee to provide
observations of the persons
performance in several skill and
behavioral categories
B. Measuring for Productivity
1.Difficult to accurately evaluate
productivity especially when
employees work in teams
2.Some firms have teams
evaluate themselves on a 1-5
scale
# ADMINISTERING COMPENSATION
AND EMPLOYEE BENEFITS
A.Compensation
A combination of payments
in the form of wages or
salaries, incentive
payments, employee
benefits and employer
services
B.Wages and salaries
1.Wages: Cash payment
based on the number of
hours the employee has
worked or the number of
units the employee has
produces
a.Many blue and white collar workers
receive compensation based on
calculating the number of hours
worked or unit produced
b.Wages provide a direct incentive to
employees
2.Salaries: Fixed cash compensation for
work, usually by yearly amount;
independent of the number of hours
worked
a.Salaries base compensation on time
in unit weekly,biweekly, monthly or
yearly
b.Salaried employees generally receive
no pay for extra hours put in but
receive leeway in schedules
# ADMINISTERING COMPENSATION
AND EMPLOYEE BENEFITS (cont..)
C.Incentive program
1.Incentives: cash payments
that are linked to specific
individual, group or
companywide goals
2.Bonuses: a payment in
addition to regular wage or
salary
3.Commission: pay
employees a percentage
of sales made
4.Profit sharing: a system in
which employees receive a
portion of the companys
profits

D.Employee benefits and services
1.Employee benefits: financial benefits
other than wages, salaries and
incentives
a.Employee benefits can be offered as
a preset package (designed by the
company) or flexible benefits (allow
employees to pick their benefit-up to
a certain dollar amount- to create a
benefits package tailored to their
individual needs)
# ADMINISTERING COMPENSATION
AND EMPLOYEE BENEFITS (cont..)
2. Insurance
a. Insurance is the most
popular employee benefit
and is completely optional
b.I n the past, copanies often
negotiated group
insurance plans for
employees
c. Exploding healthcare costs
Companies hire many part
time employees who
receive no benefits
Companies require that
employees pay part of the
premium or doctor bills


3. Retirement benefits
a.Social security- paid taxes by
employers and withheld from
employees
b.Pension plan
Pension plans are funded by
companies who set aside money on
a regular basis to cover future
retirement benefits
3 most popular types of company
sponsored pension plan
i)defined contribution plans: similar to
saving plans that provide a future
benefits based on annual employer
contributions, voluntary employee,
matching contributions and
accumulated investment earnings.
# ADMINISTERING COMPENSATION
AND EMPLOYEE BENEFITS (cont..)
Defined benefits plans:
formula-based plans in
which employers typically
promise to pay their
employees a benefit upon
retirement based on the
employeess retirement
age, final average salary
and years of service
401(k) plans allow eligible
participants to contribute
pre-tax dollars to a tax
qualifiew retirement plan


4.Employee stock ownership
plan (ESOP)
a.Companies place a certain
amount of its stock in trust for
some or all of its employees
with each employee entitle to a
certain share
b.Allow employees to later
purchase the shares at a fixed
price
# ADMINISTERING COMPENSATION
AND EMPLOYEE BENEFITS (cont..)
5.Stock options
a.Grant the employees the right to
purchase a certain amount of
stock at fixed price(based on the
trading price at the time the
option is granted)
b.Cost little to employers, provide
employees with incentives to
stay with a company and
encourage employees to work
harder because they have a
vested interest in the company
doing well
c.Stock options can generate a
handsome profit for employees
if the stocks market price
exceeds the grant price
6. Family benefits
a.Family Medical Leave Act (FMLA)
requires employers with 50 or more
workers to provide them up to twelve
weeks of unpaid leave a year for
childbirth, adoption or care of
oneself, a child, spouse or parent
with a serious illness
b.Day care assistance is offered by 86
percent of companies surveyed
including dependent care spending
accounts, resource and referral
service which benefits employees
and employers alike
C.Elder care assistance is offerred by
77 percent of large corporations
ranging from referral services, to
assistance in finding care providers
and dependent care allowances
# ADMINISTERING COMPENSATION
AND EMPLOYEE BENEFITS (cont..)
7.Other employee benefits
a.Paid holidays, paid vacations,
sick pay and premium pay for
working overtime or unusual
hours are important benefits
b.Companies sometimes offer
sabbaticals, tuitions loans and
reimbursements, professional
development opportunities,
personal computers, financial
counseling and legal services,
assistance with buying a home,
paid expenses for spouses who
travel with employees,
employees assistance program,
nap time and wellness programs
c.Employee Assistance
Programs (EAPS)
Offer private and confidential
counseling to employees who
need help with issues related
to drugs, alchohol, finance,
stress, family and other
personal problems
Benefits such as company
cards, aid country club
membership, free parking and
expanded casual dress days
are often referred to as perks
# OVERSEEING CHANGES IN
EMPLOYMENT STATUS
A.Promoting and
reassigning employees
1.Promoting from within
A) sometimes allows a
company to benefit from
the training and
experience of its own
workforce
B) Sometimes find that a
person talented at one
job lacks the skills for a
different job
B. Terminating employees
1.Termination: permanently laying
the employees off because of
cutbacks of firing the employee
for poor performance
2.Layoffs
When employees are laid off (
terminated for economic or
business reasons unrelated to
performance), companies now
seek to help ease employees
through this transition with
resume writing courses, career
counseling, office space and
secretarial help
# OVERSEEING CHANGES IN
EMPLOYMENT STATUS
(cont..)
b) Some companies have
adopted a no-layoff
guaranteed employment
policies
c) Some companies adopt no-
layoff, or guaranteed
employment policies in an
economic downturn,
employees may be shifted to
other types of jobs, perhaps
at reduced pay or given the
change to participate in work
sharing programs
-help promote employee loyalty
and motivation
C.RETIRING EMPLOYEES
1.Give job opportunities to people
who are willing and able to work
but who happen to be past the
traditional retirement age
2.Mandatory retirement policies:
policies that made it necessary
for people to quit working as soon
as they turned a certain age
(1967 federal age discrimination
in Employment act outlawed
discrimination against anyone
between the ages of 40 and 65)

#FINDING WAYS OF
ENCOURAGING OLDER
EMPLOYEES TO RETIRE EARLY
Offer older
employees financial
incentive to resign
Inducing employees
to retire by offering
them financial
incentives is known
as worker buyout
and can be much
more costly than
laying off or firing
employees
Morale benefits the
company: younger
employees see
chance for
promotion, are less
threatened about
their own security
and company avoid
risk of age
discrimination
lawsuits
CONCLUSI
ON
CONCLUSI
ON