C H A PTER 11:

HUMAN
RESOURCE
MA N AG EMENT
 HUMAN RESOURCE
MANAGEMENT
• The process of determining human resource needs and then
recruiting, selecting, developing, motivating, evaluating,
compensating, and scheduling employees to achieve
organizational goals

• The roles and responsibilities of HRM have evolved primarily

because of two key factors: (1) organizations’ recognition of
employees as their ultimate resource and (2) changes in the law
that rewrote many traditional practices
 DEVELOPING THE
ULTIMATE RESOURCE
• One reason human resource
management is receiving increased
attention now is that the U.S. economy
has experienced a major shift—from
traditional manufacturing industries to
service and high-tech manufacturing
industries that require highly technical
job skills

• The job of human resource

management has taken on an
increased role in the firm since
qualified employees are much scarce
 THE HUMAN RESOURCE
CHALLENGE
• Shortages of trained workers in growth areas, such as computer technology,
biotechnology, robotics, green technology, and the sciences.
• Large numbers of skilled and unskilled workers from declining industries, such as
steel and automobiles, who are unemployed or underemployed and need
retraining
• A shortage of workers in skilled trades due to the retirement of aging baby
boomers.
• A shift in employee attitudes toward work
• Severe recession
• An increasing number of both single- parent and two- income families
 LAWS AFFECTING HUMAN
RESOURCE MANAGEMENT
• One of the more important pieces of social legislation passed by Congress was the
Civil Rights Act of 1964.
• Title VII prohibits discrimination in hiring, firing, compensation, apprenticeships,
training, terms, conditions, or privileges of employment based on race, religion,
creed, sex, or national origin.
• In 1972, the Equal Employment Opportunity Act (EEOA) was added as an
amendment to Title VII.
• EEOC involved an affirmative action, designed to “right past wrongs” by increasing
opportunities for minorities and women.
• Reverse discrimination has been defined as discriminating against members of a
dominant or majority group (e.g., whites or males)
L A W S P R OTECTI NG E M PLOYEES
W I T H D I S A BI LI TI E S A ND O L D E R
E M P LOYE E S
• The Vocational Rehabilitation Act of
1973 extended protection to people
with any physical or mental disability
• The Americans with Disabilities Act of
1990 (ADA) requires employers to
give applicants with physical or
mental disabilities the same
consideration for employment as
people without disabilities.
• The Age Discrimination in
Employment Act of 1967 (ADEA)
protects individuals 40 or older from
employment discrimination in hiring,
firing, promotion, layoff,
compensation, benefits, job
assignments, and training.
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,
• Court cases demonstrate that it is
sometimes legal to provide special
employment (affirmative action) and
training to correct discrimination in
the past.
• New court cases and legislation
change human resource
management almost daily
 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
 RECRUITING
EMPLOYEES FROM A
DIVERSE
POPULATION
• Recruitment is the set of activities for
obtaining the right number of
qualified people at the right time.
CHALLENGES:
- Some organizations have policies
that demand promotions from within,
operate under union regulations, or
offer low wages.
- It is important to hire people who not
only are skilled but also fit in with the
culture and leadership style of the
company.
- Sometimes people with the
necessary skills are not available;
then workers must be hired and
trained internally.
 SELECTING EMPLOYEES
WHO WILL BE HIRING CONTINGENT
PRODUCTIVE WORKERS

Six steps: • Contingent workers include part-

1. Obtaining complete application time workers (anyone who works 1 to
forms 34 hours per week), temporary
workers (workers paid by temporary
2. Conducting initial and follow- up employment agencies), seasonal
interviews workers, independent contractors,
3. Giving employment tests interns, and co-op students.
4. Conducting background • Companies may also hire contingent
investigations workers when full-timers are on some
5. Obtaining results from physical type of leave
exams • Contingent workers receive few
6. Establishing trial periods benefits; they are rarely offered
health insurance, vacation time, or
company pensions.
• Some contingent workers have even
found that temping can be more
secure than full-time employment.