Business Essentials: Human Resource Management and Labor Relations
Business Essentials: Human Resource Management and Labor Relations
Business Essentials: Human Resource Management and Labor Relations
Chapter 10
Human Resource
Management and
Labor Relations
Introduction
• In this chapter we
– explain how managers plan for their organization’s
human resource needs
– discuss ways in which organizations select, develop,
and appraise employee performance
– examine the main components of a compensation
system
– look at some key legal issues
– explain why workers organize into labor unions and
describe the collective bargaining process
Learning Objectives (1 of 2)
10-1 Define human resource management, discuss
its strategic significance, and explain how
managers plan for their organization’s human
resource needs.
10-2 Discuss the legal context of human resource
management and identify contemporary legal
issues.
10-3 Identify the steps in staffing a company and
discuss ways in which organizations recruit
and select new employees.
Copyright © 2023 Pearson Education, Ltd
10-4
Learning Objectives (2 of 2)
10-4 Describe the main components of a compensation
and benefits system.
10-5 Describe how managers develop the workforce in
their organization through training and performance
appraisal.
10-6 Discuss workforce diversity, the management of
knowledge workers, and the use of a contingent
workforce as important changes in the contemporary
workplace.
10-7 Explain why workers organize into labor unions and
describe the collective bargaining process.
Copyright © 2023 Pearson Education, Ltd
The Foundations of Human Resource 10-5
Management
• Human resource management (HRM)
– the set of organizational activities directed at attracting,
developing, and maintaining an effective workforce
• Human Resources (HR)
– the people comprising a organization’s workforce
• Human Capital
– reflects the organization’s investment in attracting,
retaining, and motivating an effective workforce
Talent Management
• Talent Management
– the view that the people in an organization represent a
portfolio of valuable talents that can be effectively
managed and tapped in ways best targeted to
organizational success
HR Planning
• Job Analysis
– systematic analysis of jobs within an organization
• Job Description
– description of the duties and responsibilities of a job, its
working conditions, and the tools, materials,
equipment, and information used to perform it
• Job Specification
– description of the skills, abilities, and other credentials
and qualifications required by a job
• Adverse Impact
– when minorities and women meet or pass the requirement
for a job at a rate less than 80 percent of the rate of majority
group members
Affirmative Action
• Affirmative Action
– intentionally seeking and hiring employees from groups
that are underrepresented in the organization
• Affirmative Action Plan
– written statement of how the organization intends to
actively recruit, hire, and develop members of relevant
protected classes
Labor Relations
National Labor Relations Act. Spells out procedures by which
employees can establish labor unions and requires organizations to
bargain collectively with legally formed unions; also known as the
Wagner Act.
Labor-Management Relations Act. Limits union power and specifies
management rights during a union-organizing campaign; also known
as the Taft-Hartley Act.
Health and Safety
Occupational Safety and Health Act (OSHA) of 1970. Mandates the
provision of safe working conditions.
Labor Relations
• National Labor Relations Act (also known as
the Wagner Act)
– sets up a procedure for employees to vote on whether
to have a union
• National Labor Relations Board (NLRB)
– established by the Wagner Act to enforce its provisions
• Labor-Management Relations Act (also known
as the Taft-Hartley Act)
– passed to limit union power
Incentive Programs (1 of 3)
• Incentive Program
– special compensation program designed to motivate
high performance
• Bonus
– individual performance incentive in the form of a
special payment made over and above the employee’s
salary
• Merit Salary System
– Individual incentive linking compensation to
performance in non-sales jobs
Incentive Programs (2 of 3)
• Pay For Performance (Variable Pay)
– individual incentive that rewards a manager for
especially productive output
• Profit-Sharing Plan
– incentive plan for distributing bonuses to employees
when company profits rise above a certain level
• Gainsharing Plan
– incentive plan that rewards groups for productivity
improvements
Incentive Programs (3 of 3)
• Pay-for-Knowledge Plan
– incentive plan to encourage employees to learn new
skills or become proficient at different jobs
Benefits Programs
• Benefits
– compensation other than wages and salaries
• Workers’ Compensation Insurance
– legally required insurance for compensating workers
injured on the job
• Cafeteria Benefits Plan
– benefit plan that sets limits on benefits per employee,
each of whom may choose from a variety of alternative
benefits
Unions: 1995–2019
Collective Bargaining
• Collective Bargaining
– process by which labor and management negotiate
conditions of employment for union-represented
workers
Contract Issues
• Cost-of-Living Adjustment (COLA)
– labor contract clause tying future raises to changes in
consumer purchasing power
• Wage Reopener Clause
– clause allowing wage rates to be renegotiated during
the life of a labor contract
Management Tactics
• Lockout
– management tactic whereby workers are denied
access to the employer’s workplace
• Strikebreaker
– worker hired as a permanent or temporary replacement
for a striking employee