2. Development of Human Resource
Management
Parallels the protection and treatment of
workers
1. Social Welfare Department
1880 – 1935
a. Helping injured workers and their
families
b. Company unions: parties and social
events
c. Worker health
2. Labor Relations Department
1935 – 1950
a. Collective bargaining
b. Contract administration
3. Industrial Relations Department
1950 – 1970
a. Labor relations
b. Benefits and vacations
c. Testing and selection
d. Compensation systems
4. Personnel Department
1970 – 1990
a. Legal compliance
b. Staffing
c. Performance evaluation
d. Compensation and benefits
e. Employee relations
f. Safety and health
5. Human Resource Management
3. Staffing Model
Strategic Planning
Environmental
Scanning
Operational Planning Forecasting
Projected Staffing
Requirements
Goals and Objectives
Recruitment Planning
Applicant Search
Preliminary Screening
Selection Decision
Placement
Strategic
Business
Planning
Human
Resource
Planning
Long-range
planning
Selection
Recruitment
Middle-range
planning
Short-range
planning
Human
Resource
Planning
4. Typical Steps in the Selection Process
Reference checks
Employment testing
Drug testing
Final interview
Selection decision
Placement on the job
Reject applicant
Preliminary screening
Application blanks
Interviews
6. Example of Predicting Labor Supply and Required New Hires for
a Hotel Chain
Supply Analysis Supply Demand Comparison
Key Positions
A
% Quit
(rounded)
(1996-1998)
B
Number of
Present
Employees
C
Projected
Turnover by
2000
D
Employees
Left by 2000
E
Projected
Labor Demand
in 2000
F
Projected New
Hires in 2000
General Manager 38 25 10 15 32 17
Resident Manager 77 9 7 2 12 10
Food/Beverage Director 47 23 11 12 29 17
Controller 85 25 21 4 32 28
Assistant Controller 66 14 9 5 18 13
Chief Engineer 81 24 16 8 31 23
Director of Sales 34 25 9 16 32 16
Sales Manager 68 45 30 15 58 43
Convention Manager 90 14 13 1 18 17
Catering Director 74 19 14 5 24 19
Banquet Manager 60 19 12 7 24 17
Personnel Director 43 15 6 9 19 10
Restaurant Manager 89 49 44 5 63 58
Executive Chef 70 24 17 7 31 24
Sous Chef 92 24 22 2 31 29
Executive Housekeeper 63 25 16 9 32 23
Total Employees 379 257 122 486 364
7. Solving the ‘Surplus Personnel’
Problem
1. Layoffs
2. Attrition
3. Reduced Hours/Job Sharing
4. Unpaid Vacations
5. Early Retirements
8. High Performance Work Practices –
Financial Performance
Sample: 968 U.S. firms with 100 or more employees
Financial Data: 10-K reports with the SEC
High Performance Work Practices: What proportion of the workforce participates in:
1. Formal information sharing program
2. Formal job analysis
3. Hiring from within
4. Employee attitude surveys
5. Quality of Work Life Programs
6. Company incentive, profit-sharing, or gain-sharing plans
7. Formal grievance and complaint procedures
8. Pre-employment testing
9. Performance appraisals are used to determine promotion
10. Formal performance appraisals
11. Promotion by seniority or performance
12. Selection ratio for hiring
13. What is the average number of hours of training received per employee per year?
9. High Performance Work Practices -
Results
A one standard deviation increase from the mean
in high performance work practices is
associated with:
7.05% decrease in turnover
$27,044 increase in sales annually per employee
$18,641 increase in market value annually per
employee
$3,814 increase in profits annually per employee
Notes de l'éditeur
This slides outlines the development of human resource management in organizations.
The staffing model from the text.
The selection model from the text.
This slides describes five approaches to forecasting employment needs.
This example, from a hotel chain, shows how the hotel chain goes about predicting employment needs.
This slides describes how companies deal with the surplus personnel problem. Organizations must be creative when facing a surplus of personnel. They need to cut costs, but at the same time keep employee morale and motivation high.
Slides 8 and 9 show the findings from Huselid’s study of “best practices” in HR. The study highlights the fact that companies who use effective HR practices have less turnover, more profits, greater market value, and greater sales than those who do not. Students should recognize that HR can contribute significantly to a company’s bottom line.