Slide 1Slide 2Slide 3Slide 4Slide 5Human Resource StrategyHuman Resource Management GoalsHuman Resource PlanningSlide 9Slide 10Slide 11The goal is the most talented, best fit.When Labor is Scarce…Internal Recruiting AdvantagesSelectionThe InterviewSlide 17Questions to avoid:Federal LegislationLaws Governing Employment PracticesWithholding RequirementsDeveloping an Effective WorkforcePerformance AppraisalAssessing Performance AccuratelyPoints-based Rating ScaleBehaviorally Anchored Rating ScaleMaintaining an Effective WorkforceSlide 28Principles of ManagementPrinciples of ManagementChapter 8Chapter 8Human Resource Human Resource ManagementManagementPrinciples of ManagementPrinciples of ManagementWhy study HR?Why study HR? Human Resource Human Resource ManagementManagementPrinciples of ManagementPrinciples of ManagementManagement is the art of getting things done through people, and things get done better with good people.Cool Bottled Water, Inc.Income Statement12 Months Ending 12-31-03Revenue $743,750Cost of Goods SoldBeginning Inventory (12 turns/year) $20,573+ Purchases $246,875= Total Goods Available for Sale $267,448- Ending Inventory $20,573Total Cost of Goods Sold $246,875Gross Profit $496,875Operating ExpensesExecutive Salaries ($50k each) $250,000Payroll (20% of Sales) $148,750Rent ($5k/mo) $60,000Advertising $15,250Depreciation $3,000Utilities $3,000Professional Services $2,000Insurance $1,500Licenses $500Total Operating Expenses $484,000Net Income Before Federal Tax$12,875Federal Income Tax (25%)$3,219Net Profit $9,656Cool Bottled Water, Inc.Income Statement12 Months Ending 12-31-03Revenue $743,750Cost of Goods SoldBeginning Inventory (12 turns/year) $20,573+ Purchases $246,875= Total Goods Available for Sale $267,448- Ending Inventory $20,573Total Cost of Goods Sold $246,875Gross Profit $496,875Operating ExpensesExecutive Salaries ($50k each) $250,000Payroll (20% of Sales) $148,750Rent ($5k/mo) $60,000Advertising $15,250Depreciation $3,000Utilities $3,000Professional Services $2,000Insurance $1,500Licenses $500Total Operating Expenses $484,000Net Income Before Federal Tax$12,875Federal Income Tax (25%)$3,219Net Profit $9,656Principles of ManagementPrinciples of ManagementPayroll is one of Payroll is one of the firm’s major the firm’s major expenses.expenses.Payroll is one of Payroll is one of the firm’s major the firm’s major expenses.expenses.PayrollPayroll$148,750Principles of ManagementPrinciples of ManagementJoe Jones dba Joe Jones Company INCOME STATEMENT For the Twelve Months Ending December 31, 2001 Revenue from Operations $500,000 Cost of Goods Sold: Beginning Inventory $100,000 Purchases $250,000 Goods Available for Sale $350,000 Ending Inventory $ 75,000 Cost of Goods Sold $275,000 Gross Profit $225,000 Operating Expenses: Rent $50,000 Payroll $75,000 Marketing $15,000 Utilities $ 4,000 Depreciation $ 1,000 Local Taxes $ 350 Licenses $ 500 Legal Fees $ 1,000 Accounting Fees $ 500 Total Operating Expenses: $147,350 Profit Before Taxes $ 77,650 Income Tax (25%) $ 19,400 Net Profit $ 58,250 Joe Jones dba Joe Jones Company INCOME STATEMENT For the Twelve Months Ending December 31, 2001 Revenue from Operations $500,000 Cost of Goods Sold: Beginning Inventory $100,000 Purchases $250,000 Goods Available for Sale $350,000 Ending Inventory $ 75,000 Cost of Goods Sold $275,000 Gross Profit $225,000 Operating Expenses: Rent $50,000 Payroll $75,000 Marketing $15,000 Utilities $ 4,000 Depreciation $ 1,000 Local Taxes $ 350 Licenses $ 500 Legal Fees $ 1,000 Accounting Fees $ 500 Total Operating Expenses: $147,350 Profit Before Taxes $ 77,650 Income Tax (25%) $ 19,400 Net Profit $ 58,250 PayrollPayroll$75,000Human Resource StrategyHuman Resource StrategyDetermine the correct mix of employees and skills needed to meet competitive conditions.Develop an effective work force through good recruiting and training.Keep costs down while improving efficiency and productivity.Determine the correct mix of employees and skills needed to meet competitive conditions.Develop an effective work force through good recruiting and training.Keep costs down while improving efficiency and productivity.Principles of ManagementPrinciples of ManagementHuman Resource Management GoalsHuman Resource Management GoalsDeveloping–keep‘em up to speed?Developing–keep‘em up to speed?•Training & Development•Performance Appraisals•Training & Development•Performance AppraisalsMaintaining –how do we keep them?Maintaining –how do we keep them?•Wages, Salary, Benefits•Job Enrichment•Wages, Salary, Benefits•Job Enrichment•Recruiting•Selecting•Recruiting•SelectingAttracting – how do we get them?Planning – what people will we need?Planning – what people will we need?•Job Analysis•Forecasting•Job Analysis•ForecastingHuman Resource PlanningHuman Resource PlanningThe nature of the work activities. The nature of the work activities. Current technology. Current technology. Work productivity and product quality Work productivity and product quality standards. standards. Results in Job Description.Results in Job Description.The nature of the work activities. The nature of the work activities. Current technology. Current technology. Work productivity and product quality Work productivity and product quality standards. standards. Results in Job Description.Results in Job Description.Job AnalysisJob AnalysisPrinciples of ManagementPrinciples of ManagementHuman Resource PlanningHuman Resource PlanningWhat new technologies are emerging?What new technologies are emerging?What is the volume of business likely to be?What is the volume of business likely to be?What is the employee turnover rate?What is the employee turnover rate?What is the labor market like?What is the labor market like?What new technologies are emerging?What new technologies are emerging?What is the volume of business likely to be?What is the volume of business likely to be?What is the employee turnover