Human Resource Management 04 08 2014 What is Human Resource Management Page 4 in textbook How you interact with people The voice of the employees Economic Development History Past o Agricultural era circa 1800s Work done in teams called families o Industrial era circa early 1900s Shift to manufacturing focus Present o Information Age Driven by technology Shift to service focus Management Thought Early theories of management o Promoted today s HRM operations o Key Figures Frederick Taylor Hawthorne Studies Peter Drucker Tom Peters Knowledge worker subject matter expert Influenced the way modern business functions Human Resource Management Today Psychology o Mental processes behaviors o Why do people act as they do o Have to understand people o Human social behaviors o Discipline to correct behaviors Sociology Organizational Design o How organization looks Work Design o How work should be done o Rotations would be more efficient without them but it keeps people focused o Analyzing jobs and seeing how they work Laws o Legal compliance Four Functions of Human Resource Management Staffing o Strategic Human Resource Planning Everything needs to be in line in the company s goals o Recruiting o Selection Finding people who are interested in working for you Marketing to find employees Learn about the history of the company Traditions Choosing the right candidates Training and Development o Orientation o Employee Training Short term task focused o Employee Development o Career Development Motivation o Motivation Theories Job Design How the job is done o Performance appraisal Quality control o Rewards and Compensation Pay hourly sales commission salary o Employee Benefits Vacation time health etc Maintenance o Safety and Health o Communications o Employee Relations Non Union o Labor Relations Specifically for unions The Dynamic Environment Created through changes in o Technology o Workforce Diversity o Skill Requirements o Ethics in an Organization Technology Changes and Impacts Innovations in past 25 years or so o Personal computers laptops tablets and smart phones o Video conferencing o Shared online calendars desktops o Cell Phones Areas Impacted o Recruitment o Employee Selection o Training Development o Work Life Balance o Paying Employees Market Value o Communications o Decentralized Work Sites o Skills Level Changes in Workforce Diversity Increases in workforce expected from o Minorities o Women o Immigrants o Older Employees Largest minority group Hispanic Americans Skills Level Requirements Manufacturing jobs are decreasing Service related jobs are increasing 80 now employed in service sector Skill deficiencies cost companies billions of dollars Estimate 36 of applicants fail basic reading math tests Global Village Concept in which telecommunication and transportation technologies have essentially reduced time and distance effects to produce a single worldwide community What is Globalization Process of interaction integration o amongst people companies governments of different nations o driven by international trade investment o accelerated by information technology Defining Multinational Corporations Corporations with significant operation in more than one country Objectives of Global HRM Create local appeal without compromising global identity Generate awareness of cross cultural sensitivities among managers globally Hire staff across geographic boundaries Train about cultures and sensitivities of the host country A Global Mindset Open mindedness Sensitivity to other cultures Willingness to learn more Ability to identify and confront prejudices Work to fully understand diversity Ask various questions Show honesty and flexibility Ethics in Human Resource Management 04 08 2014 Ethics set of rules or principles that define what is right and what is wrong as decisions are made Business Ethics practice of ethical judgment by managers as they make decisions affecting the organization Code of Ethics A formal document that states an organization s primary values and the ethical rules it expects organizational members to follow o Can t hold people completely accountable if it isn t written down Topics in Code of Ethics Importance of guests customers clients Respect for individual employees Legal compliance Conflicts of interest o Two different interests and you being involved in both so it wouldn t be appropriate to make that kind of decision Confidentiality of proprietary information o Don t share the business s secrets Business entertaining gifts o Can only accept items of a certain value The Importance of a Code of Ethics Identify foundation of acceptable behaviors Promote standards to guide decision making Provide benchmark to evaluate potential decisions o Benchmark something you use as a standard to judge something against Support responsibility obligations to stakeholders society Determining Ethical Behavior Ethic Guidelines 1 2 3 4 Is the intended action the truth Is the action fair to all Is the action free from harm Am I proud of the action Companies Behaving Badly Enron Martha Stewart Nike BP Oil Walmart Abercrombie The Fall of Enron Sarbanes Oxley Act July 2002 o Procedures for public companies handling reporting financial picture o Penalties for non compliance Executives fined up to 1 million up to 10 years in prison o Provides protection around whistle blowing Corporate Social Responsibility Organization s efforts to address its commitments to all of its constituencies Employer of choice Applicants attracted to organizations within their community with favorable reputations o Disney Company Corporate Responsibility in Action Contributing resources o Time money to charitable community projects o Products services during times of disaster Participating in environmental initiatives Supporting volunteer activities for employees The Legal Context Employee Discrimination 04 08 2014 Civil Rights Act of 1964 Title VII No single piece of legislation in the 1960s had a greater effect on reducing employment discrimination than the Civil Rights Act of 1964 o Prohibits discrimination based on race religion color sex or national origin o Prohibits retaliation for files charged o 15 or more employees protects small family owned businesses Areas covered o Hiring o Compensation o Terms conditions and privileges of employment Equal Employment Opportunity Act of 1972 Led to creation of Equal Employment Opportunity Commission EEOC Granted o Enforcement powers compliance o Ability to file