Human Resources Management

Slide 1 THINK ABOUT IT

For many people, human resources or “HR” means a gateway for getting hired.

• While HR responsibilities do include staffing, the HR function goes much deeper than just that.

• Human resources management involves a wide variety of activities—HR employees make sure you get paid, stay safe on the job, and have the tools you need to succeed.

• Read on to learn more about the important role of human resources in any business, big or small.

KEY CONCEPTS

Slide #2 Human resources management plays an important role in a business.

• Human resources are the people who work to produce goods and services, and they are invaluable to a company.

• All human resources make an impact on a business—whether that impact is positive or negative.

• Human resources management is the process of planning, staffing, leading, and organizing those employees.

• HR management exists to make sure that every employee in the company is available, knowledgeable, productive, and satisfied.

Discussion #1: Ask students to share their experiences with human resources.

Slide #3 Managing a business’s human resources is a big job that only gets bigger as a company grows.

• Some of the main activities involved in this function include the following:

  • Staffing

    • A business is only as strong as its employees, so making sure an appropriate staff is on hand is a main priority for HR managers.

    • Human resources managers are responsible for determining staffing needs, creating job descriptions and specifications, recruiting candidates, screening and interviewing applicants, training new hires, and conducting exit interviews.

Discussion #2: Ask students to consider the benefits of having a good employee in the right position. Then, ask them to consider the consequences of having the wrong employee in the same position.

• • Compensation and benefits

    • Human resources management is also responsible for overseeing compensation and benefits for all employees.

    • Compensation is pay for work completed.

    • It comes in different forms for different employees and may also include certain financial incentives, such as commissions or bonuses.

    • Benefits comprise a significant portion of the total package a company offers its employees.

    • They are advantages employees receive in addition to their monetary compensation, such as health insurance, retirement accounts, paid vacation and sick time, etc.

  • Training and development

    • HR managers ensure employees are knowledgeable and productive by overseeing company training and professional development programs.

    • They must determine training needs and what resources are available for training and development.

    • They also oversee performance management, and, when necessary, are involved in disciplinary issues.

  • Compliance

    • Businesses must comply with many different laws and regulations.

    • These vary based on the size of the company, where it’s located, what industry it’s in, etc.

    • Human resources management oversees compliance issues for most companies.

    • A few of the main compliance and legal matters HR managers deal with include safety and health, interviewing issues, employment contracts, and other employment laws.

  • Employee relations

    • For a company to be successful, employees must establish good working relationships—both with each other and with managers and supervisors.

    • Human resources management is responsible for making sure employee relationships remain positive and productive.

    • This can include handling complaints and mediating conflicts, creating and implementing assistance programs, and being involved in labor-union relations at companies where unions are present.

Discussion #3: Ask students to imagine themselves as part of a human resources department. What part of HR management would they most enjoy? What responsibilities would they find most challenging? Why?

Slide #4 HR executives play vital roles when it comes to a business’s strategic planning.

• Strategic plans are made for the company’s long-range future, and HR managers can provide valuable insight into important company decisions, such as organizational restructuring (mergers, acquisitions, downsizing, etc.) and budgeting.

• Human resources management can also help a business gain a long-term competitive advantage over the rest of the industry.

• Well-managed human resources enhance organizational performance and often determine whether a company is good or great.

Slide #5 The role of human resources management in business is constantly changing and evolving.

• One reason is that employee needs are different than they were in the past.

  • Greater diversity now exists in the workforce in terms of gender, age, culture, and ability.

  • There is also a greater emphasis on creating balance between work and personal lives than ever before, and human resources management is involved in working out flexible work arrangements like working from home.

• Business is different now as well.

• Companies are always looking for ways to keep expenses down and production up.

  • Human resources management is not exempt—in some cases, HR activities may be outsourced (possibly to outside employment agencies) or delegated to department managers.

  • In other ways, modernization has improved the HR function by providing technology that streamlines many activities, saving time and reducing paperwork.

Slide 1 THINK ABOUT IT

It’s often said that people are a business’s most valuable resource.

• After all, we know it’s important that a business has the right staff in place for its long-term success.

• But human resources (HR) management can’t start the hiring process by immediately recruiting and interviewing potential candidates.

• Instead, it’s important to determine a business’s hiring needs first.

• Read on to learn more about why it’s important to think ahead, what factors play a role in the process, and best practices for determining hiring needs.

KEY CONCEPTS

Slide #2 Determining hiring needs is most efficient when you come prepared.

• The dynamic business environment can change quickly—an employee may suddenly leave the company, a team may be pulled quickly onto a different project, or a new opportunity may arise from which the organization just can’t walk away.

• If companies aren’t prepared for how these scenarios might affect their hiring needs, they could experience negative consequences like costly delays in the hiring process.

• Instead, if organizations think ahead about their hiring needs, they will be prepared when the time comes and create a smooth hiring process from start to finish.

Discussion #1: Ask students to consider other negative consequences of being unprepared for changes in hiring needs.

Slide #3 Identifying hiring needs might seem like an easy, straightforward process, but there are several factors to consider before moving right to recruitment.

• When considering what a business needs in terms of hiring, HR management should think about the nature of the work, the purpose of the hire, and what training resources the organization currently has in place.

  • Nature of the work

    • Not all positions are created equal.

    • Some projects will require full-time employees, while others will need a part-time employee.

    • Depending on the type of work, the company might need a permanent employee or a temporary or contractual worker.

    • It’s important that HR management consider whether the company’s needs are short or long term before moving forward in the hiring process.

  • Purpose of the hire

    • When we think about hiring, we might automatically think about filling a vacant position.

    • But that’s not always why organizations hire new employees.

    • They could be reorganizing the workload of a team for increased efficiency, or they could be expanding their work to encompass new projects.

    • Considering the purpose of the hire will help the hiring team better understand the needs of the organization, which in turn helps them better meet that need.

  • Training in place

    • No matter the size or type of company, each new hire will need at least a little training to be prepared for her or his new job.

    • HR management needs to think about the training materials and processes that will be available for the new hire and consider whether additional resources are needed.

    • Otherwise, the onboarding process could be delayed, or money could be wasted when the new hire starts his or her first day with nothing to do!

Discussion #2: Ask students to give other examples of differences between the hiring needs of small and large businesses.

Slide #4 When companies consider their hiring needs, they should take one important component into account: size.

• Small businesses will not have the same hiring needs as big businesses, and their hiring processes will likely differ, too.

  • For example, smaller companies might have less clearly defined job descriptions, as employees can take on responsibilities outside of their traditional roles.

  • Big companies, on the other hand, might have longer hiring processes, requiring more time and resources in order to ultimately hire a new employee.

• HR management should be aware of these differences when considering the hiring needs of their organization and how best to meet them.

Slide #5 While the determination of hiring needs might look different from business to business, there are a few steps that are important for all companies, no matter the size or industry.

• Ensure job descriptions are up to date.

  • It’s difficult to assess what your organization needs if job requirements are outdated.

  • Developing current job descriptions helps keep the needs of the organization at the front of all hiring decisions.

• Consider the current workforce.

  • This is an opportunity to “find the gaps” in the current workforce’s skills and knowledge.

  • This step not only helps define what the company may be looking for—it also helps identify any existing employees who are ready and are the perfect fit for next-level positions.

• Think about the future.

  • Effective hiring processes should consider both the short-term and long-term needs of an organization.

  • Companies shouldn’t hire employees just to fill a recently vacated seat.

  • They should strategically consider how new employees can help the business reach its goals, both immediate and down the line.

  • This is also an opportunity to consider how the industry might be changing and determine what training and development will need to happen in the future.

Slide 1 - THINK ABOUT IT

Finding the perfect applicant for an open position should be easy, right?

• Not always!

• While there are likely many great candidates out there waiting for the right job opportunity, there are just as many (or maybe even more) candidates who are interested but aren’t the
  right fit.

• So, how do you make sure your company recruits the candidates who will prove worthwhile?

• Read on to learn about the importance of recruitment, best practices for the recruitment process, and more.

KEY CONCEPTS

Slide #2 Recruitment is the part of staffing that involves seeking out and attracting qualified potential employees.

• As much as employers might wish that the perfect candidate will appear as soon as a position becomes available, that rarely happens.

• Employers can’t wait for candidates to come to them—instead, they need to be proactive with their recruitment efforts in order to be successful.

• The key to recruiting is finding just the right number of applicants.

  • If there are too few, the company may struggle to find a qualified and
    well-suited candidate.

    • This can be costly, plus company projects and other work could be delayed when one comes in to take over responsibilities.

  • However, if there are too many candidates, the company may struggle to sift through all of the applications, making the whole process lengthy, time-consuming, and potentially costly as well.

• This is why effective recruitment is so important.

Slide #3 Recruitment can be done either internally or externally.

• Internal recruitment is the process of seeking out and attracting qualified potential employees from inside the existing workforce.

  • When a position becomes available, employers might choose to fill the vacancy through promotions, transfers, or employee referrals.

  • While internal recruitment often saves time and money during the hiring process, it can also limit the business to the same old ideas.

  • Plus, it still keeps a gap in the workforce that will need to be filled.

• External recruitment, on the other hand, is the process of seeking out and attracting qualified potential employees from outside the business.

  • Examples of external recruitment methods include posting about the vacancy on the company website, an online job board, or paid advertising, as well as being present at job fairs or partnering with outside employment agencies.

  • One advantage of external recruitment is new employees with fresh ideas.

  • Another benefit of external recruitment is a larger pool of applicants, which means companies can more easily find experienced and highly qualified candidates.

  • Disadvantages include additional advertising and training costs, as well as the risk that the external candidate isn’t actually the right fit for the job or company.

Discussion #1: Ask students to share their experiences with recruitment. Did they recruit new members for an organization? Did they attend a job fair? Was one of their coworkers given a promotion as the company recruited internally?

Slide #4 There are several factors, both internal and external, that can affect the recruitment strategies of businesses.

• Internal factors include the company’s age, size, objectives, preferred recruitment sources, and recruitment budget.

• External factors include the economy, supply and demand of workers, unemployment rates, updates to labor laws, and competition.

Slide #5 It is crucial that companies conduct themselves fairly and professionally during the recruitment and hiring process.

• Not only is this an ethical business practice, it’s also the law.

• Businesses are not allowed to discriminate against a job applicant due to race, color, religion, sex, age, or disability.

• If an applicant feels that s/he was treated unfairly during the hiring process, s/he can take legal action against the company.

• Businesses should establish a standard recruitment process that is followed for every candidate to prevent discrimination or preferential treatment.

Slide #6 The following best practices can apply to any business’s recruitment strategy.

• Establish a good reputation.

  • This should happen even when the company isn’t actively recruiting potential employees.

  • Because recruitment is about attracting candidates, employers should make sure they are attractive places to work so applicants are encouraged to apply.

• Conduct research.

  • Before posting a position to a job board, employers should know exactly what they need in a candidate so they’re prepared to receive applicants.

  • Employers should also conduct industry research in order to develop competitive compensation and benefit packages.

• Determine recruitment sources.

  • Many employers look internally before turning their recruitment strategy to external sources.

  • It’s helpful to create a large applicant pool, so it’s recommended that you use multiple recruitment sources to maximize the possibility of finding the right candidate.

Discussion #2: Ask students to generate ideas for a standard recruiting process.

Slide 1 THINK ABOUT IT

The hiring process can be a little like gardening.

• In your garden, you want only beautiful flowers.

• But sometimes, if you aren’t careful, weeds sprout up in your garden.

• You need to pull these weeds to preserve the health of the garden and make sure you are focusing only on the flowers.

• When employers screen job applications and résumés for an open position, they do
  something similar:

  • They “weed out” applicants who aren’t the right fit, so they can spend their valuable time and resources interviewing only the best-suited candidates.

• Read on to learn more about the screening process, factors to consider, and how technology plays an important role.

KEY CONCEPTS

Slide #1 Screening is the process of reviewing applications and résumés to determine which should be kept and which should be discarded.

• Employers screen job applications and résumés to keep the hiring process time-effective and fair.

• A single position might receive hundreds of applications.

• It’s simply not possible to interview all of these candidates—and it’s likely not a good use of time or resources.

• Screening applications makes the interview process more efficient by only moving forward with candidates who meet the minimum requirements.

• Having a standard in place by which all applications are evaluated also helps preserve fairness in the hiring process.

Slide #2 The factors that employers consider when screening job applications and résumés differ depending on the needs of the business.

• For example, an organization seeking an experienced accountant might not care whether an applicant has a JAVA certification, but a software development company might require it.

• Because the purpose of screening is to cut down on the volume of applications, most employers focus their review on minimum requirements.

• These are often quick, easy-to-spot factors that are necessary for the job.

• These factors include the following:

  • Education

  • Years of relevant experience

  • Skills and knowledge

  • Legal ability to work in the country

• Many employers also screen for red flags (items or situations that are risky or suspicious) in job applications and résumés.

  • Red flags include poorly written application materials, unexplained issues
    or gaps in work history, and failing to follow directions during the application process.

Discussion #1: Ask students to consider the jobs they’d like to have in the future. What factors are likely required for these positions?

Slide #3 There are several tips that can help make the screening process more effective.

• Choose the required application materials carefully.

  • Should job candidates submit a job application, a résumé, or both?

  • Job applications allow the company to ask uniform questions of each applicant, while résumés can give more insight into the person behind
    the paper.

• Supplement application materials with other research.

  • With all of the information out there, it won’t take long to find additional information about a candidate on a search engine or social media site.

  • A quick search might tell you all you need to know about this applicant—for better or worse.

• Provide opportunities for “trial runs.”

  • If you want to know more about a candidate but aren’t ready to move forward with an official interview, you can conduct a quick phone interview or ask applicants to complete skills tests.

  • These help you determine whether a candidate is right for the job.

• Above all, stay legal.

  • It is against the law to discriminate against an applicant due to race, religion, sex or sexual orientation, age, disability, and more.

  • Keep equal employment opportunity practices in mind as you go through the hiring process to ensure everyone is treated fairly.

Discussion #2: Ask students to share their experiences with the hiring process. Have they applied with job applications, résumés, or both? What advice have they received about social media when looking for a job? Have they taken a skills test?

Slide #4 Screening itself can take a lot of time.

• After all, even if employers only spend a few minutes on each application or résumé, this review quickly adds up.

• Three minutes on one hundred applications each is still five hours of work!

• To help trim the time spent screening, many employers use applicant tracking systems to sort the many applications that come through.

• These systems can learn to compare experience and other résumé factors across candidates, even identifying certain keywords used in application materials to help determine whether a candidate is a good fit.

Discussion #3: Ask students to discuss the use of artificial intelligence like applicant tracking systems during the hiring process. What are the benefits? What are the consequences?

Slide #5 The screening process varies greatly from company to company.

• For example, some businesses screen the applications as they are submitted, while others wait until after the application deadline to screen.

• When it comes down to it, the screening process is straightforward:

  • Review the pool of potential candidates, and, using a uniform screening process, “weed out” the applicants who do not meet preset standards and select others to move forward with the interview process.

Slide 1 THINK ABOUT IT

You are probably familiar with interviews.

• Even if you haven’t interviewed for a job, you might have auditioned for a part in the school play or tried out for an athletic team.

• Interviews can be stressful, but they are an important way to showcase your skills and experience.

• Interviews are important for employers, too.

• While interviewing candidates can be a time-consuming process, it’s a necessary step in making sure the business has the right people in place to find success.

KEY CONCEPTS

Slide #2 Interviews are important for employers because they help the employers make an informed decision.

• While hiring managers try to learn as much as they can about job applicants from their application materials and online research, it’s not always the full picture.

• Bringing in candidates for in-person interviews allows companies to see more from the candidates than they would on paper.

• This is crucial—after all, companies want to ultimately select the best person for the job, and that’s difficult to do when they only have part of the information about that candidate!

• Selecting a candidate who is ill-suited for a position can be costly.

• Interviews help employers avoid these potential costs by providing more information about applicants during the hiring process

Slide #3 When interviewing, employers are trying to obtain information that will help them determine which candidate is the best for the job.

• This information is centered around candidate experience, skills, behavior, and, when relevant, educational training and background.

• Sometimes, employers will use the interview time to verify information provided on a job application or résumé.

• However, the interview is also an opportunity to expand upon application material and learn more about each candidate than is shown on an application or résumé.

• During an interview, employers might also learn unspoken or nonverbal things about a candidate just by meeting her/him in person.

  • For example, when interviewing, an employer might get a better sense of a candidate’s personality, communication skills, sense of humor, ability to function under pressure, and more.

  • Even the attire of the candidate can give employers a sense of her/his professionalism, which can be an important piece of information when hiring a new employee.

Slide #4 There are regulations that govern job interviews and limit what employers can ask during an interview.

• It is crucial that all applicants are given equal opportunity, so employers should ask only questions that are pertinent to the job and not to a candidate’s personal life.

• Otherwise, it could seem like a candidate was not hired because of a discriminatory hiring practice, which is illegal.

• Employers should not ask questions about any of the following topics: age, gender, sex, sexual orientation, race, ethnicity, height or weight, national origin, disability or medical information, marital status or pregnancy, or religion.

• While some of these topics might seem obvious not to discuss, others might not be as easy to avoid, especially when making small conversation at the beginning or end of an interview.

• Here are a few questions employers are not allowed to ask:

  • Are you married?

  • Do you plan to have children?

  • Where are you from?

  • What church do you attend?

  • Have you experienced any serious illnesses recently?

• Keeping their questions focused on a candidate’s skills and experience will help employers conduct their interviews legally, fairly, and professionally.

Discussion #1: Ask students to give examples of interview questions employers should NOT ask. Then, if possible, ask students to reframe these questions so they ask for relevant information (candidate experience, skills, education, etc.)

Slide #5 While interviewing processes will vary from business to business, there are several techniques that help employers interview candidates effectively.

• Establish rapport.

  • Interviewing in a comfortable atmosphere is beneficial to everyone.

  • Rapport can be built by shaking hands, smiling, and being polite.

• Be prepared.

  • While employers can and should ask questions that emerge from natural conversation, they should also come ready with a list of questions for each applicant.

• Ask open-ended questions.

  • Open-ended questions require more than a “yes” or “no” response, which gives employers more opportunity to learn about each applicant.

• Use time wisely.

  • Just because you can ask a question doesn’t mean you should.

  • Employers should use their time intentionally.

  • They should also give applicants a chance to ask their own questions.

• Close clearly.

  • When an interview ends, employers should provide clear instructions for how to move forward.

  • This can include information about next steps and tentative timelines.

Slide 1 THINK ABOUT IT

They say you shouldn’t discuss money, politics, or religion at a dinner party.

• But what if businesses didn’t discuss pay?

• Employees would be confused, upset, and left in the dark!

• Managers should discuss compensation early and often to prepare employees for higher stakes annual reviews, communicate value and worth, fully explain total rewards programs, and help prevent emotional outbursts down the line.

KEY CONCEPTS

Slide #2 Managers should discuss compensation early and often.

• Compensation is an ongoing conversation, and supervisors should facilitate these discussions early and often.

• Regular performance check-ins throughout the year will alleviate any confusion and help set clear expectations.

• By fully explaining the company’s bonus structure and raise schedule, as well as the consequences of not meeting those goals, the employee will be better informed and prepared for annual compensation conversations.

• Management must stay up to date on laws regulating corporate compensation practices and should provide timely updates to employees regarding any changes
  to minimum wage, overtime pay, worker’s compensation, and exempt or nonexempt status.

Discussion #1: Ask students to consider the business practice of salary transparency. What are the pros and cons of publishing pay information for all job positions at company? Would students rather know or not know how much their coworkers make?

Slide #3 Compensation is part of a total rewards program.

• Compensation is more than just pay or monetary rewards.

• A total rewards program is composed of all financial returns, tangible services, and benefits an employee receives as part of their employment package.

• Benefits often include a combination of the following:

  • Insurance (e.g., medical, life, dental, vision, disability)

  • Vacation and holiday pay

  • Leave

  • Profit sharing

  • Bonuses

  • Retirement plans, including employer contributions

• Some benefits, including worker’s compensation and unemployment, are federally mandated.

• Benefits are nonmonetary forms of value and the specific components of total rewards programs vary by company.

Discussion #2: Ask students to discuss additional benefits that are often offered in a company’s total rewards program.

Slide #4 Management should follow guidelines when discussing compensation.

• Discussing compensation with employees can be awkward, uncomfortable, and difficult, but it cannot be avoided.

• Money is a sensitive, emotionally charged subject, and employees have plenty of expectations and anxieties tied to their compensation.

• Compensation involves assigning a dollar value to someone’s worth, and it is the emotional measure of how much a business values its employees.

• Instead of tiptoeing around the subject, it’s imperative for managers and employees to feel comfortable tactfully discussing compensation on a regular basis.

• To ensure compensation discussions are productive, keep the following guidelines in mind:

  • Provide context.

    • Put decisions into perspective and ground the conversation in facts by providing accurate market data on salary ranges and company performance.

  • Clearly communicate.

    • Share as many details of the process as possible to allow the employee to gather a full understanding of how management reached the decision.

  • Separate pay and performance.

    • Compensation is often linked to performance, but the conversations should be discussed separately.

    • When they are covered together, employees tend to focus only on the number and may not fully comprehend or take advantage of the development and personal growth components of their performance review.

  • Involve others.

    • When possible, meet in teams of two or three to show the employee there are checks and balances in place, and communicate that the process is fair and consistent.

  • Be prepared.

    • Organize a plan, rehearse the main points, and try to anticipate potential questions or concerns.

    • Understand the types of questions you are authorized to answer.

  • Communicate value.

    • Thoroughly express how important the employee is to the organization.

    • Don’t assume the bonus or raise will speak for itself.

  • Aim to show equity.

    • Employees perceive compensation is fair and equitable when it has internal consistency, external competitiveness, and accurately reflects their contributions.

  • Be ready for emotional reactions.

    • When faced with an emotional response, actively listen, stay calm, and acknowledge the strong feelings, but don’t cave.

    • If possible, address the employee’s concerns, or set up a separate meeting with Human Resources to provide answers to questions outside your scope.

    • Practice empathy by picturing yourself in the employee’s shoes.

Discussion #3: Ask students to explain how they would handle an employee’s emotional outburst during a compensation discussion. What techniques would they use?

Slide 1 THINK ABOUT IT

One of the most important factors in a business’s success is the quality of the people it employs.

• By enacting a rigorous selection process, a business can find, select, and hire individuals who are the best match in skills, experience, position, and company culture.

KEY CONCEPTS

Slide #2 The employee selection process is vital to a business’s success.

• The employee selection process is the method of locating, selecting, interviewing, and verifying applicants to select the top candidate with the best experience, skills, and values for the position and the company.

• There are six fundamental steps in the selection process:

  • Placing the job advertisement

    • When announcing an open position, management will establish detailed job requirements and desired qualifications.

    • They can post on career pages and job boards, run advertisements, and utilize any employee referral programs.

  • Screening applications

    • Management will review candidate résumés to eliminate unqualified applicants.

    • Sometimes management will conduct an initial phone screen to determine a shortlist of suitable applicants to bring in for in-person interviews.

  • Candidate interviews

    • Face-to-face interviews allow both candidates and the business to select the right job, skill, and company culture fit.

  • Verifications and reference checks

    • Companies utilize assessments and often require employment references and background checks to ensure validity and reliability of claims.

  • Final selection

    • After carefully assessing each candidate, and confirming salary and benefits package are within budget, management selects the best fit as their final candidate.

  • Making a job offer

    • Pending successful completion of any employment tests and background checks, the business will extend the job offer to their final candidate.

• Employment tests and selection procedures include:

  • Cognitive tests

    • Assess reasoning, memory, and reading comprehension.

  • Physical ability tests

    • Measure strength and stamina.

  • Sample job tasks

    • Gauge task aptitude with simulations and performance tests.

  • Criminal background checks

    • Reveal arrest and conviction history.

• Employers must ensure legal compliance and administer selection procedures without regard to religion, race, national origin, sex, age, color, or disability.

Discussion #1: Ask students to discuss the importance of conducting reference and background checks, and other employment tests and selection procedures. What purpose do these checks and tests serve?

Slide #3 Numerous factors affect the employee selection process.

• Experience

  • The necessary relevant experience depends largely on the position and skills required to complete the job.

  • Selecting a qualified candidate saves time and money.

• Education

  • Certain positions require industry knowledge obtained from a degree program.

• Location

  • Companies typically prefer to hire local to save money on interviewing and relocation fees.

  • If necessary, they can expand to regional, national, and global candidates.

• Cost

  • Employers set a maximum salary and benefits package, including room to negotiate with very desirable candidates.

  • Time invested in the selection process is another cost.

• Fit

  • During the interview process, management will assess how well a candidate’s knowledge and skills mesh with and enhance the company culture and the job itself.

• Applicants

  • The attractiveness of the job description, as well as the advertising and recruiting methods, affect the number and quality of candidates who apply for the position.

Discussion #2: Ask students to brainstorm additional factors that affect the employee selection process.

Slide #4 Businesses can run into several issues in the employee selection process.

• Management is tasked with confirming candidates have not misrepresented their credentials, qualifications, and background.

  • Human resource departments must scan for discrimination or disparate treatment toward applicants of a different race, religion, sex, national origin, or ethnicity.

  • They must also protect against negligent hiring lawsuits by reasonably investigating a candidate’s fitness prior to hiring.

  • Ensuring legal compliance in all selection and hiring processes is a top priority.

• Other problems include misalignment in job description and selection tools.

  • A lethargic decision-making process with multiple rounds of interviews and lapses in communication can dissuade previously interested candidates.

  • When selecting candidates, management sometimes goes with a “gut feel” approach instead of collecting both qualitative and quantitative data.

  • In the interview process, interviewers should be properly prepared, spend more time listening to the candidate, and pay attention to nonverbal cues like eye contact, facial expressions, and energy levels.

Discussion #3: Ask students to imagine they are job candidates who are interviewing for the same position at different companies. What characteristics would lead them to favor one company over another? What issues would cause them to hesitate?

Slide 1 THINK ABOUT IT

Think about doctors.

• They went through a lot of schooling to learn about medicine, the human body, and how to make people better if they are sick.

• They continue to learn throughout their careers as science progresses

• Just like doctors, businesses need to train their employees to do the job the right way, and to get better at their jobs over time, too.

• Businesses can do that through training and human resource development.

KEY CONCEPTS

Slide #2 Training is the teaching or developing of a specific skill.

• Training is valuable to employers because it is the way managers introduce employees to the culture of their workplace.

  • It is also how management can express how they want work to be completed.

  • Training could come from management or through coworkers in meeting settings.

  • There could also be professional groups that offer trainings on a variety of industry-specific skills.

• Education is general knowledge acquired through learning.

  • Education can happen in a few ways.

  • There is formal education, the learning that a person has acquired in the classroom.

  • There is also informal education, the knowledge acquired through life experience.

  • A common type of education is work-based learning, which is education that occurs on the job as opposed to in a school environment.

• Human resource development is putting that education into practice.

  • It is the process of becoming more valuable by combining education and experience, and it includes attitude, personality, motivation, and self-confidence.

  • Think of it as letting employees’ growth take place as they work their jobs.

Discussion #1: Ask students to share examples of training they may have experienced outside of the classroom. What skills did they learn?

Slide #3 The goal of training employees on the first day is to set the standards for the type of work and the quality of that work is to be expected.

• After experiencing a training program, workers should be able to take their new skills and apply it to their jobs.

• Many businesses also have continued on-the-job training, where employees are refreshed on company goals or new skills are introduced by management.

• Managers may find that training is needed on a certain topic.

  • They should be evaluating their employees over time and evaluating what might be needed to improve work for all employees.

  • That way, management can decide what types of training employees may need in the future.

Slide #3 There are a variety of benefits to training employees and having training updates in

the future.

• Increased motivation

  • If employees are presented with goals and ways to achieve those goals and to make their work better, employees are motivated to improve.

• Better communication

  • Communication is an integral part of training. It provides clarity from management on expectations.

  • Training also means that employees can give their own feedback on their work and how they could make it better.

• Reduced costs

  • Training a new employee could be expensive.

  • If managers work to improve their current employees, it shows workers that they are valued and could reduce employee turnover.

• Increased profits

  • The goal of training is to introduce high-quality standards to employees.

  • If employees are providing high-quality work and service, customers are more likely to return.

• Consistency and higher quality of work

  • Training and development set standards for employees to follow.

  • If employees are given the tools to do the work right and well, it can help all aspects of a business.

Slide #4 Training is not a one-size-fits-all endeavor.

• There are a number of types of training that could be needed.

• You would not give new employee training to an employee that worked at the same company for 10 years.

• Likewise, you would not throw a new employee into a job and expect her/him to perform the same as the 10-year veteran of the office.

• Below are some types of training and professional development that employees could experience in the workplace.

  • New employee orientation

    • This is where new employees are given information about the company, go over the organization handbook, and are taught skills that will be applicable to their new jobs.

  • New skills

    • This is a continuing type of training that could happen as new changes are made to an organization.

    • There may be a new product launching or best practices to learn.

  • Technology

    • It’s very likely that new technology will be introduced to an organization.

    • Employees will need to know how to use it and incorporate it into their business.

    • This could be phone systems, content management systems, or even something as simple as using a new printer.

  • Workplace culture

    • These are trainings on topics that could be regularly occurring and include sensitivity training, culture training, training on sexual harassment, and ethics training.

Slide 1 THINK ABOUT IT

When you’re in school, teachers tell you what you’re expected to know before you take a test.

• Teachers do that to prepare students and let them know what they need to achieve to be successful while learning in the classroom.

• If students didn’t know what to prepare for, how could their new knowledge be measured effectively?

• It’s the same in the business world.

• Employees are learning every day.

• Expectations are set by managers, and employees need to know what is expected of them before they begin their job.

KEY CONCEPTS

Slide #2 Training is the teaching or development of a specific skill. Each training lesson should have a clear goal.

• That goal should be expressed to workers at the beginning of training.

• It can be helpful to make a training agenda so workers can get a sense of what will be talked about during the training.

  • Training should not just be an instructor talking at workers.

• There should be a way for the trainees to practice the new skills they are learning.

• For example, workers learning new customer service skills or a new process for recording office information could practice in small groups.

  • Allowing workers to practice new skills during the training will allow for greater retention of those skills after the training is over.

• Trainees should be able to ask questions during the training and after the main instruction time is over.

• This allows clarification on any confusion, and also allows the trainer to highlight things that might have been missed during the training.

• By the end, the trainer should highlight the key points of the lesson one more time.

Discussion #1: Ask students to share examples of training they may have been involved in. What type of training was it? What did they learn?

Slide #3 There are several ways to conduct training of employees.

• One common way is to teach workers in a classroom-type setting.

  • That could be with a manager or someone brought in from outside the business to help educate employees about a new skill.

• Another method is on-the-job training.

  • This is one of the more common types of training.

  • The employee learns by actually performing the job.

  • A manager could introduce a skill and ask employees to practice the skill in their work.

  • The manager should give feedback on the new skill as employees put it into practice.

• Online training is a type of training that could be done in multiple ways.

  • It could be the classroom-style training over video.

  • Or, it could be more interactive.

  • Employees could watch videos corresponding to new skills and take tests to check their knowledge.

• Refresher training is a training method that is provided to more experienced workers to reinforce their previous training and also keep them up to date on new professional development.

• Sensitivity training is another training method in which the trainees learn how their behavior affects other people.

  • The goal is to develop sensitivity and trust.

Slide #4 Employees undergoing training, whether it’s new content or just a refresher, need the correct tools to get the job done.

• If employees are expected to do a training over video conference, the employer needs to have software and computers with video cameras to facilitate the training.

• It could also be helpful to have computers or tablets to take notes.

• These devices could be used to take tests online, if that was a method employers chose to pursue.

Slide 1 THINK ABOUT IT

As a student, you are given grades every quarter to mark the successes and challenges of your academic career.

• Teachers may give comments on what is going well and how to rise to meet different challenges.

• The business world is the same.

• Employees are evaluated by their employers, and like in the classroom, evaluations are conducted to tell workers how they’re performing.

KEY CONCEPTS

Slide #2 A performance assessment or performance evaluation is a formal assessment by the supervisor of a worker’s job performance that lets the worker know how s/he is doing

on the job.

• Performance evaluations are typically done quarterly, bi-annually, or yearly, depending on the organization.

• Evaluations are also an opportunity for employers to document communication between management and employees about their progress.

• Let’s take a look at why performance evaluations are important for managers
  and employees.

• First, it’s a way for the managers to touch base with employees and communicate with them.

  • It’s a time to praise employees for what they may be doing well.

  • It’s also the place for managers to tell employees how they can improve their work.

• Second, performance evaluations are the point where managers can gauge employees’ work goals.

• Managers can ask employees where they see themselves in the next five years within the business.

• Performance evaluations are a way to grade employees, but it’s also a way to mentor and coach employees.

  • This can be done by asking questions like:

    • “What goals do you have for the future?”

    • “What is something you feel like you could improve upon?”

    • “Is there something you feel like you need to help you with your job?”

    • “What challenges did you encounter this year?”

• Third, for employees, performance evaluations are a time to self-reflect.

• It is common for companies to ask for employees to fill out a survey or questionnaire so that employees can state how they felt they performed over a period of time.

• This is the time for employees to ask questions.

Discussion #1: Ask students to share how they feel businesses should conduct performance evaluations. What would they hope to learn from a performance evaluation?

Slide #3 Employers need to consider what the goals of their performance evaluations are.

• Is it to measure performance yearly?

• Is it to give raises?

• Or, is the goal to touch base and reinforce company standards?

• Knowing what the goal of the evaluation is will eliminate confusion, not just for management, but also for the employees undergoing the evaluation.

• Managers should focus on one objective at a time for personal evaluations.

Slide #4 There are various types of performance assessments.

• Top-down assessments

  • This is a performance appraisal conducted with the direct supervisor of an employee and is one of the most common performance assessments.

  • In a top-down assessment, the supervisor should express what an employee has done well, but also should talk about how the employee needs to improve.

  • Top-down assessments can be combined with other forms of assessment to make them more effective.

• Self-assessment

  • In this type of performance assessment, an employee will fill out how they believe they performed under a given time frame and submit it to their manager.

  • These assessments could be done with a numeric scale, written response, or a combination of both.

• 360-degree assessments

  • In this type of assessment, peers are given the opportunity to rate how their coworkers perform their work.

  • Managers also give feedback.

  • The idea is to talk to people who work with the employee being evaluated to get a complete picture of her/his work style.

• Management by objectives

  • Management by objective performance reviews are usually for leadership positions.

  • The output of the worker is measured by using qualitative and quantitative data.

  • The goal is to measure how the worker’s output and goals measure up to the company’s goals.

• Forced ranking

  • Forced ranking is an evaluation system that puts employees into categories of underperformers, average performers, and high performers.

  • This type of system has become less popular over time because it limits the ability to encourage growth from underperformers and average performers.

Slide 1 THINK ABOUT IT

In the 1800s, many industrial workers labored in harsh, dirty, crowded, and dangerous conditions.

• Often, employers abused employees with low wages, unreasonable hours, and zero benefits.

• The change between then and now is due in large part to organized labor.

• When workers banded together and formed labor unions, they were able to empower themselves to stand up to employers and demand better treatment.

• Read on to learn about modern labor unions.

KEY CONCEPTS

Slide #2 Why a labor union?

• A labor union is a group of workers who join together to improve the terms and conditions under which employees work.

• A union represents all employees as one single entity before management.

• By forming unions, employees increase their bargaining power so that management is more willing to listen to their needs.

• Modern labor unions serve three main purposes: organizing workers into a single bargaining unit, negotiating labor contracts, and ensuring that labor contracts are carried out.

Slide #3 There are three main types of labor unions in existence today.

• The first is a craft union, also known as a trade union.

  • These unions include skilled laborers working in specific occupations, such as plumbers, carpenters, or machinists.

• The second type of union is an industrial union.

  • Industrial unions include a wide range of workers across an industry, even though the workers may hold a variety of different jobs.

• Lastly, there are professional unions.

  • These unions are common in the public sector and include nurses, teachers, firefighters, actors, athletes, writers, etc.

• Most unions are organized on three levels.

  • A local union is a chapter of a national or international union that represents workers at a specific company or in a specific geographical area.

  • National/International unions provide leadership for local unions and assist them in negotiating labor contracts.

    • They also help establish new local unions and help recruit new union members.

  • A union federation consists of several national unions of different kinds that join together to further their common purposes, such as public relations, political agendas, etc.

Slide #4 There are a variety of labor issues that could cause conflict between labor unions and company management.

• Labor unions and company management share a common goal—to keep the business operating effectively.

• However, their strategies for achieving that goal often differ.

• As a result, these two groups often experience conflicts. Most conflicts center on labor issues like the following:

  • Wages and benefits

  • Job security and seniority

  • Working conditions

  • Hours

  • Union security

  • Management rights

Discussion #2: Ask students to consider what labor might be like without unions to help negotiate issues like the ones above.

Slide #5 One of the most important purposes of a union is negotiating a labor agreement or contract with management, known as collective bargaining.

• Unions typically negotiate new contracts every three to four years, and the process can be quite time-consuming, often taking a year or so to complete.

• The collective bargaining process includes preparation of research and reports by both the union and management, bargaining sessions, and an official vote to approve the labor contract.

Slide #6 There are times when union and management cannot agree on a labor contract.

• When this happens, they might try mediation or arbitration, two nonthreatening ways that unions and management can approach each other when they cannot reach an agreement.

• In a disagreement, both sides may also use pressure strategies to try to force the other side into making concessions, or giving something up.

• Both unions and management use the media to influence public opinion.

• Pressure strategies that unions use include:

  • Strikes

    • A strike occurs when union members refuse to work.

    • When a union strikes, it becomes nearly impossible for a business to remain productive.

  • Picketing

    • Picketing is a form of protest that involves positioning union members (called pickets) near a business during a conflict or a strike.

    • These pickets often carry signs and/or chant to publicize their discontent.

  • Boycotts

    • Boycotts occur when union members refuse to buy a business’s goods or services and encourage others to do the same.

  • Corporate campaigns

    • In a corporate campaign, dissatisfied union members might disrupt a company’s shareholder meetings or even attempt to buy up stock and gain more control of the company.

  • Unions might also use a highly controversial labor practice called featherbedding, which protects their members’ jobs and livelihoods by requiring employers to hire more (or more skilled) workers than actually needed for a task.

• Management also uses pressure strategies to try to force unions to make concessions.

• These strategies might include:

  • Lockouts

    • A lockout occurs when management refuses to allow union members to work.

    • During a lockout, management either closes the business temporarily or brings in nonunion members, known as strikebreakers, to work.

  • Injunctions

    • An injunction is a court order that forbids people from carrying out certain activities, like picketing or causing damage to company property.

    • Anyone who disobeys an injunction can be held legally responsible for any resulting damage.

  • Shifts in production

    • Management might circumvent a labor dispute by moving production to another facility, or even another country.

Slide #7 Unionism has an impact—both positive and negative—on workers and businesses.

• Advantages for workers

  • A major effect of unionism in the U.S. has been higher wages, better benefits, and improved working conditions for employees.

  • Unionism has also increased the dignity of the individual worker.

  • By joining the union, employees have more bargaining power than they could ever have alone.

• Disadvantages for workers

  • Union dues can cost several hundred dollars per year.

  • Workers also lose some individuality—workers must go along with union decisions even if they voted against them.

  • If the union strikes, workers will not be paid and may even lose their jobs.

Slide #8

• Advantages for businesses

  • The security of a labor contract is an advantage for businesses as well as for unions.

  • When a business knows how much it needs to spend on wages and benefits, it can plan more effectively for the future.

  • Unionism can also save businesses time and money by helping with the recruitment of new employees.

• Disadvantages for businesses

  • For businesses, the main disadvantage of unionism is increased costs.

  • Unionized companies often pay higher wages and provide more benefits than nonunionized ones.

  • Unionized companies also have more limited control than nonunionized ones.

  • The involvement of the union in personnel matters causes management to lose some direct control over employees (determining promotions, for instance) and may slow down production.

  • A company can also lose a lot of time and sales in the event of a strike, which can have disastrous financial results.

Slide 1 THINK ABOUT IT

The American workforce has transformed from the Melting Pot to the Salad Bowl.

• In the multicultural global business environment, it is more important than ever for businesses to take an active role in developing and managing workplaces that promote and protect diversity.

KEY CONCEPTS

Slide #2 Managing diversity effectively is vitally important in the global business environment.

• Diversity covers a variety of characteristics, including:

  • Race

  • Gender

  • Ethnicity

  • Sexual orientation

  • Education

  • Age

  • Religion

  • Background

  • Socioeconomic status

  • Perspective

  • Skill set

• Diversity is vital to attract and retain the employees of the future, as business becomes increasingly global and all cultures grow into potential customers.

• The main goal of managing diversity in the workplace is to develop an inclusive environment that offers equal opportunities for all, no matter the difference in race, gender, sexual orientation, or thought.

• Actively creating a diverse team of employees ensures a wide variety of ideas, backgrounds, perspectives, and talents that enable the business to develop innovative ideas.

• By creating inclusive workplaces that value, respect, and utilize the differences in each individual, everyone benefits.

• When diversity is encouraged and managed effectively, businesses experience enhanced synergy, increased productivity and profitability, and gain a distinct competitive advantage.

Discussion #1: Ask students to list additional diversity benefits. What are the benefits of effective diversity management?

Slide #3 The American workforce has transformed in terms of demographics and attitude.

• The metaphor of the U.S. workforce has evolved from the Melting Pot, or the assimilation of immigrants into one blended common American culture, into the Salad Bowl, or the amalgamation of many diverse cultures that still retain their own unique identity.

  • In the Salad Bowl theory, Americans are called to celebrate both diversity and commonality in a multicultural setting.

• The demographics of the American labor force have transformed considerably over the past 70 years.

  • Today, the workforce better reflects the population in terms of the mix of age, race, gender, physical abilities, and more.

  • Demographics are currently shifting as minorities enter the workforce in larger numbers, baby boomers continue to work, and people with disabilities are better supported with specialized equipment.

  • Companies are responsible for managing an increasingly multicultural and multigenerational workforce.

• With the rise of globalization, businesses are facing a diverse range of attitudes, perspectives, cultures, and values.

  • Culture impacts organizational behavior and typically varies in four dimensions, including power distance, individualism-collectivism, uncertainty avoidance, and masculinity-femininity.

  • Businesses should assess these dimensions to determine the most effective management and communication styles, and better understand diversity in attitude and values.

Discussion #2: Ask students to compare the Melting Pot theory with the Salad Bowl theory. Which seems to fit the current American culture better? How can those characteristics be transferred to the workplace?

Slide #4 Multiple laws and practices promote diversity in the workplace.

• Numerous laws promote and protect diversity in the workplace, including:

  • Equal Employment Opportunity laws

    • These laws prohibit workplace discrimination based on gender, disability, ethnic background, sexual orientation and more, and ensure all employees have access to equal opportunities, benefits, and promotions.

  • Reasonable accommodation laws

    • Businesses must provide reasonable accommodations based on religion, pregnancy, and disability, if doing so would not create an undue hardship.

  • Ban the Box laws

    • These laws aim to reduce discrimination by prohibiting employers from requiring job applicants to disclose a criminal record until the interview stage.

    • Competent and rehabilitated applicants can demonstrate their skills before revealing a criminal history.

  • Veterans’ Preference laws

    • Military veterans can have trouble securing jobs or experience disabilities from service that impact their employment.

    • These laws allow employers to show a preference for hiring veterans or spouses over other similarly qualified applicants.

  • Equal Pay laws

    • The Equal Pay Act requires businesses to compensate men and women equally for the same work, unless wages are impacted by education, training, or experience.

  • Laws addressing work-life balance

    • New legislation may require employers to provide additional forms of leave, including family and medical, bereavement, jury duty, and more.

• Employers can facilitate equitable work environments in several ways.

  • Recruitment practices should proactively seek qualified individuals from different backgrounds by expanding their geographic scope.

  • Investing in cross-cultural training and development can enhance organizational culture and support employee differences in the workplace.

  • Management can strengthen different perspectives by modeling effective communication, active listening, and conflict resolution.

  • By objectively measuring diversity levels, employers can implement policies to improve performance.

Discussion #3: Ask students to discuss the effectiveness of laws and regulations in eliminating workplace discrimination. What would the business world look like without these protections? What are additional ways companies can create equitable work environments?