{"id":100,"date":"2020-11-02T13:35:50","date_gmt":"2020-11-02T18:35:50","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/chapter\/managinghr\/"},"modified":"2024-12-07T00:09:54","modified_gmt":"2024-12-07T05:09:54","slug":"managinghr","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/fundamentalsbusiness\/chapter\/managinghr\/","title":{"raw":"Chapter 11 - Managing Human Resources and Union Relations","rendered":"Chapter 11 – Managing Human Resources and Union Relations"},"content":{"raw":"
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Learning Objectives<\/h1>\r\n<\/header>\r\n
\r\n\r\nBy the end of the chapter, you should be able to:\r\n
    \r\n \t
  1. define human resource management and explain how managers develop and implement a human resource plan;<\/li>\r\n \t
  2. explain how companies train and develop employees, and discuss the importance of a diverse workforce;<\/li>\r\n \t
  3. identify factors that make an organization a good place to work, including competitive compensation and benefits packages;<\/li>\r\n \t
  4. explain how managers evaluate employee performance and retain qualified employees;<\/li>\r\n \t
  5. explain why workers unionize and how unions are structured, and describe the collective-bargaining process;<\/li>\r\n \t
  6. discuss key terms associated with union\/management issues, such as mediation and arbitration;<\/li>\r\n \t
  7. identify the tactics used by each side to support its negotiating position: strikes, picketing, boycotting, and lockouts; and<\/li>\r\n \t
  8. explain [pb_glossary id=\"456\"]key terms[\/pb_glossary] in the chapter.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n \r\n\r\n\"\"\r\n

    \u00a0Show What You Know<\/h2>\r\n

    [h5p id=\"43\"]<\/p>\r\n\r\n

    <\/div>\r\n

    The Grounds of a Great Work Environment<\/h1>\r\n

    Howard Schultz <\/a><\/span>has vivid memories of his father slumped on the couch with his leg in a cast.[footnote]Schultz, H. & Yang, D., J. (1997). Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time<\/em>. New York, NY: Hyperion. p. 3\u20138.[\/footnote]\u00a0The ankle would heal, but his father had lost another job\u2014this time as a driver for a diaper service. It was a crummy job; still, it put food on the table, and if his father couldn\u2019t work, there wouldn\u2019t be any money. Howard was seven, but he understood the gravity of the situation, particularly because his mother was seven months pregnant, and the family had no insurance.<\/span><\/p>\r\n\r\n\r\n[caption id=\"attachment_95\" align=\"alignright\" width=\"200\"]\"Headshot Figure 11.1 Starbucks Founder Howard Schultz by Gage Skidmore\/flickr (CC BY 2.0).[\/caption]\r\n

    This was just one of the many setbacks that plagued Schultz\u2019s father throughout his life \u2014 an honest, hard-working man frustrated by a system that wasn\u2019t designed to cater to the needs of common workers. He\u2019d held a series of blue-collar jobs (cab driver, truck driver, factory worker), sometimes holding two or three at a time. Despite his willingness to work, he never earned enough money to move his family out of Brooklyn\u2019s federally-subsidized housing projects. Schultz\u2019s father died never having found fulfillment in his work life \u2014 or even a meaningful job. It was the saddest day of Howard\u2019s life.<\/span><\/p>\r\n

    As a kid, did Schultz ever imagine that one day he\u2019d be the founder and chairman of Starbucks Coffee Company? Of course not. But he did decide that if he was ever in a position to make a difference in the lives of people like his father, he\u2019d do what he could. Remembering his father\u2019s struggles and disappointments, Schultz has tried to make Starbucks the kind of company where he wished his father had worked. \u201cWithout even a high school diploma,\u201d Schultz admits, \u201cmy father probably could never have been an executive. But if he had landed a job in one of our stores or roasting plants, he wouldn\u2019t have quit in frustration because the company didn\u2019t value him. He would have had good health benefits, stock options, and an atmosphere in which his suggestions or complaints would receive a prompt, respectful response.\u201d[footnote]Schultz, H. & Yang, D., J. (1997). Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time<\/em>. New York, NY: Hyperion. p. 138.[\/footnote]<\/p>\r\n

    \u00a0Schultz is motivated by both personal and business considerations: \u201cWhen employees have self-esteem and self-respect,\u201d he argues, \u201cthey can contribute so much more: to their company, to their family, to the world.\u201d[footnote]Schultz, H. & Yang, D., J. (1997). Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time<\/em>. New York, NY: Hyperion. p. 6-7.[\/footnote] His commitment to his employees is embedded in Starbucks's mission statement, whose first objective is to \u201cprovide a great work environment and treat each other with respect and dignity.\u201d[footnote]Starbucks (2016). Working at Starbucks<\/em>. http:\/\/www.starbucks.com\/careers\/working-at-starbucks[\/footnote] Those working at Starbucks are called partners because Schultz believes working for his company is not just a job, it\u2019s a passion.[footnote]Starbucks (2016). Working at Starbucks<\/em>. http:\/\/www.starbucks.com\/careers\/working-at-starbucks[\/footnote]<\/p>\r\n\r\n

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    Point to Ponder <\/strong><\/h2>\r\nIn April 2018, two black men were arrested for trespassing in a Philadelphia Starbucks. They hadn't ordered anything as they were waiting on a friend. Employees asked them to leave and when they did not, the police were called. Starbucks refrained from pressing charges and the men were released.\r\n\r\nHowever, the incident sparked debate and criticism of Starbucks. Starbucks issued apologies and closed all stores nationwide on May 29th for all employees to experience diversity training. What do you think of Starbucks's reaction?\r\n\r\n<\/div>\r\n

    Human Resource Management<\/span><\/h1>\r\n

    Employees at Starbucks are vital to the company\u2019s success. They are its public face, and every dollar of sales passes through their hands.[footnote]Schultz, H. & Yang, D., J. (1997). Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time<\/em>. New York, NY: Hyperion. p. 125.[\/footnote]\u00a0According to Howard Schultz, they can make or break the company. If a customer has a positive interaction with an employee, the customer will come back. If an encounter is negative, the customer is probably gone for good. That\u2019s why it\u2019s crucial for Starbucks to recruit and hire the right people, train them properly, motivate them to do their best, and encourage them to stay with the company. Thus, the company works to provide satisfying jobs, a positive work environment, appropriate work schedules, and fair compensation and benefits. These activities are part of Starbucks\u2019s strategy to deploy human resources in order to gain competitive advantage. The process is called human resource management<\/span><\/strong>\u00a0(HRM)<\/strong>, which consists of all actions that an organization takes to attract, develop, and retain quality employees. Each of these activities is complex. Attracting talented employees involves the recruitment of qualified candidates and the selection of those who best fit the organization\u2019s needs. Development encompasses both new employee orientation and the training and development of current workers. Retaining good employees means motivating them to excel, appraising their performance, compensating them appropriately, and doing what\u2019s possible to keep them.<\/span><\/p>\r\n\r\n

    Human Resource Planning<\/span><\/h1>\r\n

    How does Starbucks make sure that its worldwide retail locations are staffed with just the right number of committed employees? How does Norwegian Cruise Lines make certain that when the Norwegian Dawn pulls out of New York harbor, it has a complete, fully trained crew on board to feed, entertain, and care for its passengers? Managing these tasks is a matter of strategic human resource planning <\/span>\u2014 the process of developing a plan for satisfying an organization\u2019s human resources (HR) needs.<\/span><\/p>\r\n

    A strategic HR plan lays out the steps that an organization will take to ensure that it has the right number of employees with the right skills in the right places at the right times. HR managers begin by analyzing the company\u2019s mission, objectives, and strategies. Starbucks\u2019s objectives, for example, include the desire to \u201cdevelop enthusiastically satisfied customers\u201d as well as to foster an environment in which employees treat both customers and each other with respect.[footnote]Starbucks (2016). Working at Starbucks<\/em>. http:\/\/www.starbucks.com\/careers\/working-at-starbucks[\/footnote] Thus, the firm\u2019s HR managers look for people who are \u201cadaptable, self-motivated, passionate, creative team members\u201d.[footnote]Fortune (2007). 100 Top MBA Employers<\/em>. http:\/\/archive.fortune.com\/magazines\/fortune\/mba100\/2007\/full_list\/index.html[\/footnote] The main goal of Norwegian Cruise Lines \u2014 to lavish passengers with personal attention \u2014 determines not only the type of employee desired (one with exceptionally good customer-relation skills and a strong work ethic) but also the number needed (one for every two passengers on the Norwegian Dawn).[footnote]Cruise International (n.d.). The Norwegian Dawn<\/em>. http:\/\/www.cruise-international.com\/cruise-search\/ShpDetailsQuery?nShp=290&nLine=18&nOperator=Norwegian+Cruise+Line[\/footnote]<\/p>\r\n\r\n

    Job Analysis<\/span><\/h2>\r\n

    To develop an HR plan, HR managers must be knowledgeable about the jobs that the organization needs performed. They organize information about a given job by performing a job analysis to identify the tasks, responsibilities, and skills that it entails, as well as the knowledge and abilities needed to perform it. Managers also use the information collected for the job analysis to prepare two documents:<\/span><\/p>\r\n\r\n