当代商业概论 当代商业概论 Fundamentals of BusinessFundamentals of Business

Lecture 8:Lecture 8:Human resource Human resource ManagementManagement

What to cover todayWhat to cover today ：：1.1. Human resource managementHuman resource management2.2. RecruitmentRecruitment3.3. Training and developmentTraining and development4.4. Performance appraisalPerformance appraisal5.5. Compensation Compensation 6.6. Labor relationsLabor relations

ExercisesExercises

1. Human resource management1. Human resource management Human resource (HR) Human resource (HR) 人力资源人力资源 is:is:-- all the people a company employs, from its CEO -- all the people a company employs, from its CEO

and top managers, the middle mangers throughoand top managers, the middle mangers throughout its first-line managers to its nonmanagerial emut its first-line managers to its nonmanagerial employeesployees

Human resource management (HRM) Human resource management (HRM) 人力资人力资源管理源管理 is:is:

-- the set of activities designed to recruit high-qualit-- the set of activities designed to recruit high-quality employees and then improve their skills and cay employees and then improve their skills and capabilities; the primary responsibility of the HR funpabilities; the primary responsibility of the HR function (a staff department) is to develop a companction (a staff department) is to develop a company’s HRM systemy’s HRM system

A human resourcemanagement system

determines how acompany makesdecisions about:

Recruitment

Compensation

Training &development

Performanceappraisal

Five components of the HRM Five components of the HRM systemsystem

Laborrelations

2. Recruitment2. Recruitment

-- the process of identifying and attracting a -- the process of identifying and attracting a pool of qualified employees needed by the pool of qualified employees needed by the companycompany

2.1 Human resource planning 2.1 Human resource planning 人力资源人力资源规划规划

-- planning to satisfy a firm’s needs for peopl-- planning to satisfy a firm’s needs for peoplee

forecasting staffing needs forecasting staffing needs job analysis job analysis

Forecasting Forecasting 预测预测 (short term, intermediate (short term, intermediate term, long term):term, long term):

normal normal turnover rate turnover rate 人员流动率人员流动率 upcoming retirementupcoming retirement business expansion: more branches, richer business expansion: more branches, richer

product mixproduct mix

Job analysis Job analysis 工作分析工作分析 :: Job description (JD) Job description (JD) 工作描述工作描述 : states th: states th

e tasks and responsibilities of a job positione tasks and responsibilities of a job position Job specification (JS) Job specification (JS) 工作要求工作要求 : states t: states t

he specific qualifications required by a job he specific qualifications required by a job positionposition

Sample JD & JS: Technical sales representativeSample JD & JS: Technical sales representative

2.2 Internal recruitment 2.2 Internal recruitment

-- an effort to fill vacant positions with people -- an effort to fill vacant positions with people already employed by the firm through promalready employed by the firm through promotion or transfer otion or transfer

Closed promotion system Closed promotion system 封闭型晋升制度封闭型晋升制度 :: usu. for smaller companies usu. for smaller companies

Open promotion system Open promotion system 公开型晋升制度公开型晋升制度 : : usu. for big or more democratic companiesusu. for big or more democratic companies

Benefits:Benefits: better knowledge of the candidatesbetter knowledge of the candidates reduced turnover, and costs of hiring and training reduced turnover, and costs of hiring and training higher morale among employees higher morale among employees

“ “The Customer-centered Wal-Mart culture must The Customer-centered Wal-Mart culture must be embraced by thousands of new Associates if be embraced by thousands of new Associates if the Company is to keep growing. One way we’ll the Company is to keep growing. One way we’ll retain that culture is by continuing to recruit retain that culture is by continuing to recruit nearly 70 percent of our management from the nearly 70 percent of our management from the ranks of hourly workers. When room is available, ranks of hourly workers. When room is available, college students who are working for Wal-Mart college students who are working for Wal-Mart are the first considered for management job.” are the first considered for management job.”

-- Wal-Mart annual report-- Wal-Mart annual report

2.3 External recruitment 2.3 External recruitment

-- an effort to fill vacant positions with applicants fro-- an effort to fill vacant positions with applicants from outside the firm, mostly for entry-level positionm outside the firm, mostly for entry-level positions s

Benefits:Benefits: bring in new ideasbring in new ideas undermine competing companies undermine competing companies

Concerns:Concerns: expensive and time-consumingexpensive and time-consuming demotivate existing employees, glass ceilingdemotivate existing employees, glass ceiling

2.3.1 Sources of external 2.3.1 Sources of external recruitingrecruiting

1.1. Educational institutions: campus recruiting Educational institutions: campus recruiting campaigns/visitscampaigns/visits

2.2. Employment agencies: career centers, Employment agencies: career centers, headhunters, job fair headhunters, job fair

3.3. Job advertisements: sending company Job advertisements: sending company brochures to potential candidates, job ads on brochures to potential candidates, job ads on mediamedia

4.4. Business rivals Business rivals

2.3.2 The selection process2.3.2 The selection process

Applicationsand resumes

ScreeningInterviews and tests

Backgroundand reference checks

In-depth structured/unstructured

interviews

Physical exam

Hiring decision

Recruitment costs:Recruitment costs: cost of filling each entry-level position: $1,000 – cost of filling each entry-level position: $1,000 –

$5,000$5,000 cost of filling each advanced position: $10,000 – cost of filling each advanced position: $10,000 –

$20,000$20,000

Ethical and legal concerns:Ethical and legal concerns: At every stage in the selection At every stage in the selection process, ethical and

legal concerns make it vital that applicants are not applicants are not disqualified for disqualified for non-job related reasonsnon-job related reasons. .

Many laws govern the way U.S. companies make Many laws govern the way U.S. companies make their selection decisions, preventing discrimination their selection decisions, preventing discrimination against people and groups because of their against people and groups because of their age, age, gender, race, ethnics, religiongender, race, ethnics, religion, and so on. , and so on.

appropriate and inappropriate interviewing questions appropriate and inappropriate interviewing questions

2.4 Other staffing policies 2.4 Other staffing policies

demotion demotion 降职降职 termination termination 停止雇用停止雇用 : : severance severance 离离

职金职金 dismissal/dehiring dismissal/dehiring 解雇解雇 resignation resignation 辞职辞职 retirement retirement 退休退休 : : pension pension 退休金退休金

3. Training and development3. Training and development

-- the process through which companies increase their employees’ work skills and knowledge to improve their job performance

training-needs analysis training-needs analysis 培训需求分析培训需求分析 : a method : a method used by HRM managers to identify the kinds of used by HRM managers to identify the kinds of employee training that will result in the greatest employee training that will result in the greatest performance gainsperformance gains

training gaptraining gap: a specific type of training an employ: a specific type of training an employee needs to acquire ee needs to acquire

Case studyCase study: Citibank’s training : Citibank’s training programprogram

When Citibank conducted a training-needs When Citibank conducted a training-needs analysis and identified that inefficient, poor analysis and identified that inefficient, poor quality customer service was causing the quality customer service was causing the company to lose accounts, it invested company to lose accounts, it invested $1 billion$1 billion in a companywide, total quality management in a companywide, total quality management (TQM) training program to improve service. (TQM) training program to improve service. Citibank claims the investment resulted in a Citibank claims the investment resulted in a 15% 15% increaseincrease in the number of customer accounts it in the number of customer accounts it has, and has, and $2 billion$2 billion in cost savings. in cost savings.

Methods of training and developmentMethods of training and development

orientation orientation 迎新培训迎新培训 on-the-job training on-the-job training 在岗培训在岗培训 off-the-job training off-the-job training 离岗培训离岗培训 : classroom in: classroom in

struction, seminars, role playing, field trips, restruction, seminars, role playing, field trips, real-life simulations and experiential training, bal-life simulations and experiential training, business games and case studies, satellite prusiness games and case studies, satellite programming, e-learning via the Internetogramming, e-learning via the Internet

4. Performance appraisal 4. Performance appraisal 绩效考核绩效考核-- the process of evaluating the contributions a

n employee has made toward a company’s functional and corporate-wide goals

Results-based appraisal: the most cost-effective way to appraise

Behavior-based appraisal: have to first of all identify a series of important job-related bahaviors

4.1 Sources and methods of4.1 Sources and methods ofperformance appraisal performance appraisal Sources:Sources: Who to appraise? managers co-workers subordinates customers self

360-degree performance appraisal 360 度绩效考核 : the process of using multiple sources of information to appraise an employee’s performance

Methods:Methods: How to appraise?

Informal appraisal: take place as managers and subordinates meet from time to time to discuss important work issues

Formal appraisal: conducted on a regular basis to provide employees with ongoing performance feedback

rating scale: using a performance evaluation form

employee comparison free-form essay critical-event essay

4.2 Performance feedback4.2 Performance feedback-- the communication of performance appraisal

information to employees to influence their future performance levels

Guidelines for effective performance feedback: Avoid criticizing an employee’s general approach to

work, or “personality” or “personal style” issues; focus on specific work outcomes or behaviors that are problematic

Identify the source of problems as well as the specific ways of solving the problem

Provide positive feedback whenever possible in the course of providing ongoing negative feedback

Take advantage of informal appraisal opportunities to provide constructive feedback to motivate employees

5. Compensation5. CompensationPay structure Pay structure 薪酬结构薪酬结构 : the relative pay and benef: the relative pay and benef

its received by employees doing different types of its received by employees doing different types of job or jobs at different levels within a company; mjob or jobs at different levels within a company; must be equitable ust be equitable

Pay level Pay level 薪酬水平薪酬水平 : the average salary a company : the average salary a company chooses to pay its employees compared to other cchooses to pay its employees compared to other companies in its industry; must be competitiveompanies in its industry; must be competitive

Types of compensationTypes of compensation:: base paybase pay incentivesincentives benefitsbenefits

Base pay Base pay 基本工资基本工资 : monetary, position-based, for the mi: monetary, position-based, for the minimum acceptable performancenimum acceptable performance

WageWage: time wage : time wage 计时工资计时工资 , piece rate wage , piece rate wage 计件工资计件工资 , c, combination ombination

SalarySalary: weekly, monthly, or yearly: weekly, monthly, or yearly Incentive programs Incentive programs 激励措施激励措施 : monetary, extra-performa: monetary, extra-performa

nce-basednce-based individual incentive plansindividual incentive plans: bonus bonus 分红分红 , stock options , stock options

股票期权股票期权 , merit pay (certain percentage increase in salar, merit pay (certain percentage increase in salary) y) 绩效工资绩效工资 , commission , commission 提成提成

group and companywide incentive plansgroup and companywide incentive plans: gain/profit-sh: gain/profit-sharing plan aring plan 收益收益 // 利润分享计划利润分享计划 , employee stock ownershi, employee stock ownership plan (ESOP) p plan (ESOP) 员工股权分享员工股权分享

Fringe benefits Fringe benefits 福利待遇福利待遇 : not necessarily monetary, emp: not necessarily monetary, employment-based loyment-based

forms:forms: life, health and disability insurance, pension plans, life, health and disability insurance, pension plans, overseas trips, paid vacations, health care, staff discount, foverseas trips, paid vacations, health care, staff discount, free legal service, cafeteria benefits ree legal service, cafeteria benefits 自选福利自选福利

Case studyCase study: Designing a proper : Designing a proper compensation package for Web Czarcompensation package for Web Czar

The ideal forms of compensation a firm offers to its The ideal forms of compensation a firm offers to its employees should vary across job descriptions. To employees should vary across job descriptions. To illustrate, consider illustrate, consider Web Czar CompanyWeb Czar Company, which has , which has three types of line job positions: (1) Web design three types of line job positions: (1) Web design specialists (website designers), who are responsible for specialists (website designers), who are responsible for the development of websites; (2) Web technicians, who the development of websites; (2) Web technicians, who provide technical assistance to the Web designers; and provide technical assistance to the Web designers; and (3) Customer service representatives, who sell the (3) Customer service representatives, who sell the Web design services to businesses. Web design services to businesses.

As the HR manager of Web Czar, you are now supposed to As the HR manager of Web Czar, you are now supposed to design a overall compensation package (including base design a overall compensation package (including base pay, incentives and benefits) for the company, catering to pay, incentives and benefits) for the company, catering to the characteristics of each job position.the characteristics of each job position.

The forms of compensation should vary with the job The forms of compensation should vary with the job position, and all employees should have an position, and all employees should have an incentive to perform well because their incentive to perform well because their compensation is directed linked to their work compensation is directed linked to their work performance:performance:

The Web design specialistsThe Web design specialists: salary + bonus if : salary + bonus if customers are very satisfied with the websites customers are very satisfied with the websites they createthey create

The Web techniciansThe Web technicians: salary (lower than the : salary (lower than the Web design specialists) + bonus if they perform Web design specialists) + bonus if they perform well for the Web design specialistswell for the Web design specialists

The customer service repsThe customer service reps: salary (lower than : salary (lower than the Web technicians) + commission based on the the Web technicians) + commission based on the volume of orders that they solicit from businessesvolume of orders that they solicit from businesses

BenefitsBenefits: life and health insurance, eye care, free : life and health insurance, eye care, free massage, department retreat, paid vacations, massage, department retreat, paid vacations, pensionspensions

6. Labor relations6. Labor relations

-- the process of establishing rules and practices b-- the process of establishing rules and practices between a company and its employees that specifetween a company and its employees that specify how human resource should be employed and y how human resource should be employed and rewardreward

Labor union Labor union 工会工会 : an association established t: an association established to represent the views, needs, and concerns of lao represent the views, needs, and concerns of labor; local, national, internationalbor; local, national, international

Industrial conflict Industrial conflict 劳资纠纷劳资纠纷 : the class that occ: the class that occurs when workers, or the union representing theurs when workers, or the union representing them, attempt to gain a greater share of a company’m, attempt to gain a greater share of a company’s profits at the expense of other stakeholderss profits at the expense of other stakeholders

Negotiations between unions and maNegotiations between unions and management:nagement:

compensationcompensation: unionized employees gen: unionized employees generally receive a higher payerally receive a higher pay

job securityjob security: laid-off decisions: laid-off decisions management rightsmanagement rights: work hours, hiring, pr: work hours, hiring, pr

omotion, transferomotion, transfer grievance procedures grievance procedures 申诉程序申诉程序 : a comp: a comp

laint made by an employee or the unionlaint made by an employee or the union

Methods to pressure management:Methods to pressure management: working-to-rule working-to-rule 消极怠工消极怠工 :: performing exactly what the e

mployment contracts specify, but doing no more picketing picketing 游行示威游行示威 : walking around near the employer’s b: walking around near the employer’s b

uilding with signs complaining of poor working conditions or uilding with signs complaining of poor working conditions or issuesissues

boycott boycott 抵制抵制 : refusing to purchase specific products and : refusing to purchase specific products and servicesservices

Strike Strike 罢工罢工 : discontinuing employee services, e.g. UPS’s : discontinuing employee services, e.g. UPS’s strike to call for better wages, GM’s strike to ensure that sostrike to call for better wages, GM’s strike to ensure that some of its plants would not be closedme of its plants would not be closed

Management’s response:Management’s response: injunction injunction 禁制令禁制令 : a court order to prevent labor from part: a court order to prevent labor from part

icular activity such as picketingicular activity such as picketing lockout lockout 停工停工 : preventing employees from working until an : preventing employees from working until an

agreement is reached between management and laboragreement is reached between management and labor

ExercisesExercises

1. Translation 1. Translation (1) (1) 基本工资 基本工资 (2) (2) 激励措施激励措施(3) (3) 福利待遇 福利待遇 (4) (4) 绩效考核绩效考核(5) (5) 迎新培训 迎新培训 (6) (6) 离岗培训 离岗培训 (7) (7) 工会 工会 (8) (8) 禁制令禁制令(9) (9) 薪酬结构 薪酬结构 (10) (10) 薪酬水平薪酬水平(11) (11) 退休金 退休金 (12) (12) 离职金离职金(13) (13) 计件工资 计件工资 (14) (14) 带薪假期带薪假期(15) (15) 工作描述 工作描述 (16) (16) 人力资源规划人力资源规划

2. Cloze test and sentence rearrangement2. Cloze test and sentence rearrangement (p.153)(p.153)

3. Group project: 3. Group project: Do a campus-wide survey to reveal which Do a campus-wide survey to reveal which

component(s) of HRM your fellow students component(s) of HRM your fellow students value or care most, e.g. high-quality traininvalue or care most, e.g. high-quality training programs, opportunities of promotion, bag programs, opportunities of promotion, base pay (and what is the satisfactory level), se pay (and what is the satisfactory level), incentive pay, various types of benefits, seincentive pay, various types of benefits, severance package, etc.verance package, etc.

If possible, observe if there is any gender, If possible, observe if there is any gender, seniority, or regional difference.seniority, or regional difference.

4. Supplementary 4. Supplementary readingreading

(1)(1) GE’s Human Resource GE’s Human Resource Management SystemManagement System

(2)(2) Some Important Laws Some Important Laws Affecting HRM Practices Affecting HRM Practices (Organized by Date)(Organized by Date)

(3)(3) Appropriate and Appropriate and Inappropriate Interviewing Inappropriate Interviewing QuestionsQuestions

(4)(4) Example of Performance Example of Performance Appraisal FormAppraisal Form