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1).ABriefHistoryofHumanResourceManagementTheCraftSystemMastercraftsmanandapprenticeIndustrialRevolutionMovetofactorysystemandmovetomachinesDivisionoflaborScientificManagementTaylorConductedscientificexperimentstoimproveefficiencyTheoryXHumanRelationsHawthorneexperimentsThe“Hawthorneffect”ledresearcherstoassociatesocialfactorswithworkTheoryY2Copyright©2004South-Western.Allrightsreserved.*WorkersinherentlydislikeworkWorkersmustbecoerced,controlled,directed,threatenedwithpunishmenttogetthemtoaccomplishworkobjectivesTalentisnarrowlydistributedWorkerswilldoaslittleworkastheyarerequiredtodoMotivatedbymoneyNeedforformal,wellestablishedlinesofauthorityClearlydefinedjobsWorkerslikework,cooperative,friendlyWorkiswidelydistributedthroughouttheworkforceWorkerscanbemotivatedtoworkindependentlyManagerswhoacceptedY,wouldnotstructure,control,orcloselysupervisetheworkenvironmentEncourageself-control,motivatebyprovidingsatisfyingwork(e.g.,challengingwork)TheoryXTheoryYDouglasMcGregor'sManagementStylesManagerscouldorganize,lead,control,andmotivatepeopleindifferentwaysNatureofHumanResourceManagementHumanResourceManagementThedesignofformalsystemsinanorganizationtoensureeffectiveandefficientuseofhumantalenttoaccomplishorganizationalgoals.Allmanagementdecisionsandpracticesthatdirectlyaffectorinfluencepeople-planning,acquiring,retaining(controllingturnover),developingortraining,performanceappraisal,compensation,safetyandhealth,familyandworklife.HRMhaswiderangeoffunctionsandareasofresponsibility.

4Copyright©2004South-Western.Allrightsreserved.*NatureofHumanResourceManagementWhoIsanHRManager?Inthecoursecarryingouttheirduties,everyoperatingmanageris,inessence,anHRmanager.HRspecialistsdesignprocessesandsystemsthatoperatingmanagershelpimplement.5Copyright©2004South-Western.Allrightsreserved.*TypicalDivisionofHRResponsibilitiesHRUnitDevelopslegal,effectiveinterviewingtechniquesTrainsmanagersinconductingselectioninterviewsConductsinterviewsandtestingSendstopthreeapplicantstomanagersforfinalreviewChecksreferencesDoesfinalinterviewingandhiringforcertainjobclassificationsManagersAdviseHRofjobopeningsDecidewhethertodoownfinalinterviewingReceiveinterviewtrainingfromHRunitDofinalinterviewingandhiringwhereappropriateReviewreferenceinformationProvidefeedbacktoHRunitonhiring/rejectiondecisionsFigure1–16Copyright©2004South-Western.Allrightsreserved.*HRManagementCompetenciesandCareersHRGeneralistApersonwithresponsibilityforperformingavarietyofHRactivities.HRSpecialistApersonwithin-depthknowledgeandexpertiseinalimitedareaofHR.ImportantHRCapabilities:KnowledgeofbusinessandorganizationInfluenceandchangemanagementSpecificHRknowledgeandexpertise7Copyright©2004South-Western.Allrightsreserved.*QualitiesofHumanResourcesManagersResponsibilitiesAdviceandcounselServicePolicyformulationandimplementationEmployeeadvocacyCompetenciesBusinessmasteryHRmasteryChangemasteryPersonalcredibility8Copyright©2004South-Western.Allrightsreserved.*HRActivitiesHRPlanningandAnalysisEqualEmploymentOpportunityStaffingHRDevelopmentCompensationandBenefitsHealth,Safety,andSecurityEmployeeandLabor/ManagementRelations9Copyright©2004South-Western.Allrightsreserved.*HumanResourceCompetencyModelSource:ArthurYeung,WayneBrockbank,andDaveUlrich,“LowerCost,HigherValue:HumanResourceFunctioninTransformation.”ReprintedwithpermissionfromHumanResourcePlanning,Vol.17,No.3(1994).Copyright1994byTheHumanResourcePlanningSociety,317MadisonAvenue,Suite1509,NewYork,NY10017,Phone:(212)490-6387,Fax:(212)682-6851.Figure1.9PresentationSlide1–4Business

MasteryBusinessacumenCustomerorientationExternalRelationsHR

MasteryStaffingPerformanceappraisalRewardssystemCommunicationOrganizationdesignChange

MasteryInterpersonalskills

andinfluenceProblem-solvingskillsRewardssystemInnovationandcreativityPersonal

Credibility

TrustPersonal

relationshipsLivedvaluesCourage10Copyright©2004South-Western.Allrightsreserved.*HRManagementActivities11Copyright©2004South-Western.Allrightsreserved.*TraditionalandStrategicViewsofHRM

(a)Personnel-TheTraditionalViewTheOrganizationPersonnelStaffingPayTrainingResearchandDevelopmentFinanceMarketingProductionWhatisStrategicHumanResourceManagement(SHRM)?12Copyright©2004South-Western.Allrightsreserved.*DevelopingHumanCapitalHumanCapitalTheknowledge,skills,andcapabilitiesofindividualsthathaveeconomicvaluetoanorganization.Valuablebecausecapital:Isbasedoncompany-specificskills.Isgainedthroughlong-termexperience.Canbeexpandedthroughdevelopment.13Copyright©2004South-Western.Allrightsreserved.*2).StrategyStrategicmanagement:setofdecisionsandsubsequentactionsusedtoformulateandimplementstrategiesthatwilloptimizethefitbetweentheorganizationanditsenvironmentinanefforttoachieveorganizationalobjectives.Competitiveadvantage:whenafirmisimplementingavaluecreatingstrategynotsimultaneouslybeingimplementedbyanycurrentorpotentialcompetitor.Sustainedcompetitiveadvantage:existsonlyaftereffortstoreplicatethatadvantagehaveceased.14Copyright©2004South-Western.Allrightsreserved.*StrategyCont.Strategicplan:theoverallblueprintthatdefineshowanorganizationwilldeployitscapitalresources,suchasbudgetaryandhumanresources,inpursuitofitsgoalsHowdoyoudevelopastrategicplan?ArticulatevaluesandmissionstatementSWOTAnalysisEstablishrealisticgoalsandobjectivesbasedontheforegoingstepsFormulateStrategiesImplementStrategies15Copyright©2004South-Western.Allrightsreserved.*CORPORATESTRATEGYHowcompanieschoosetheirmixturesofdifferentbusinessesContrastswithbusinesslevelstrategyDiversificationrelatedunrelated16Copyright©2004South-Western.Allrightsreserved.*TypesofBusinessStrategiesCostleadership:Afirmpursuingacostleadershipstrategyaggressivelyseeksefficienciesinproductionandusestightcontrolstogainanedgeoncompetitors.Differentiationstrategy:involvesanattempttosetacompany’sproductsorservicesapartfromthoseofitscompetitors.17Copyright©2004South-Western.Allrightsreserved.*

LinkageofOrganizationalandHRStrategiesFigure2–418Copyright©2004South-Western.Allrightsreserved.*StrategicGoalsHumanResourceManagementFinanceResearchandDevelopmentMarketingProductionTraditionalandStrategicViewsofHRM

(b)HRM--TheStrategicView19Copyright©2004South-Western.Allrightsreserved.*Table2.1TheoreticalPerspectivesonSHRM

Universalistic Thereisonebestwaytomanagehumanresources.

StrategicHRMistheprocessoftransformingtraditional HRpracticesintoalimitedsetof“correct”HR proceduresandpolicies. StrategicFit StrategicHRMinvolvesmatchingspecificHRpractices tothefirm’soverallbusinessstrategy.

HRasinternal StrategicHRMinvolvesHRprofessionalsprovidingHR

serviceprovider servicestobusinessunitswithinthefirm.TheHRgoal istoenhancetheeffectivenessandefficiencyofthe operationsoftheirbusinessunitcustomers.Perspective DescriptionWhatisStrategicHumanResourceManagement(SHRM)?(Continued)20Copyright©2004South-Western.Allrightsreserved.*Table2.1TheoreticalPerspectivesonSHRM

Configurational

Therearevariousconfigurationsor“bundles”ofHR practicesthatgotogetherand,collectively,canimprove businessperformance.Certainbundlesareeffectivein certainindustriesand/orincertainbusinessconditions, whereasotherbundlesshouldbeusedinother industriesorunderdifferentbusinessCircumstances

Resource/Competency SHRMengendersorganizationalsuccessbyenhancing afirm’sabilitytoacquire,develop,use,andretain employeeswithhighcompetencelevelsrelevanttofirm activities.Perspective DescriptionWhatisStrategicHumanResourceManagement(SHRM)?(Continued)21Copyright©2004South-Western.Allrightsreserved.*CompetitiveAdvantagethroughPeopleCoreCompetenciesIntegratedknowledgesetswithinanorganizationthatdistinguishitfromitscompetitorsanddelivervaluetocustomers.Sustainedcompetitiveadvantagethroughpeopleisachievedifthesehumanresources:Havevalue.Arerareandunavailabletocompetitors.Aredifficulttoimitate.Areorganizedforsynergy.22Copyright©2004South-Western.Allrightsreserved.*- Itinvolvesdesigningandimplementingasetofinternallyconsistentpoliciesandpracticesthatensureafirm’shumancapitalcontributetotheachievementofitsbusinessobjectives.- Thisincludesbothvertical(linkingHRMpracticeswithstrategicmanagementprocess)andhorizontal(theintegrationofthevariousHRMpractices)integrationaswell.

- Additionally,linkingthepeopleofthefirm(intermsoftheirskillsandactions)tothestrategicneedsofthefirm.SHRMDefined23Copyright©2004South-Western.Allrightsreserved.*DifferentRolesforHRManagementFigure1–524Copyright©2004South-Western.Allrightsreserved.*HRManagementRolesAdministrativeRoleClericalandadministrativesupportoperations(e.g.,payrollandbenefitswork)EmployeeAdvocateRole“Champion”foremployeeconcernsEmployeecrisismanagementRespondingtoemployeecomplaintsOperationalRoleIdentificationandimplementationofHRprogramsandpolicies—EEO,hiring,training,andotheractivitiesthatsupporttheorganization.25Copyright©2004South-Western.Allrightsreserved.*HowHRSpendsItsTimeFigure1–6Source:Adaptedfrom“HowMuchTimeShouldYourHRstaffSpendonRecruiting?”HumanResourcesDepartmentManagementReport,June2000,p.6.26Copyright©2004South-Western.Allrightsreserved.*StrategicRoleforHRHRbecomesastrategicbusinesspartnerby:FocusingondevelopingHRprogramsthatenhanceorganizationalperformance.InvolvingHRinstrategicplanningattheonset.Participatingindecisionmakingonmergers,acquisitions,anddownsizing.RedesigningorganizationsandworkprocessesAccountinganddocumentingthefinancialresultsofHRactivities.27Copyright©2004South-Western.Allrightsreserved.*OverviewofHRManagementRolesFigure1–728Copyright©2004South-Western.Allrightsreserved.*HRManagementChallengesOrganizationalRestructuring,Mergers,andAcquisitions“Right-sizing”—eliminatingoflayersofmanagement,closingfacilities,mergingwithotherorganizations,andoutplacingworkersIntendedresultsareflatterorganizations,increasesinproductivity,quality,serviceandlowercosts.Costsaresurvivormentality,lossofemployeeloyalty,andturnoverofvaluableemployees.HRmanagersmustworktowardensuringculturalcompatibilityinmergers.29Copyright©2004South-Western.Allrightsreserved.*3).HRManagementChallengesEconomicandTechnologicalChangesShiftinjobsformanufacturingandagriculturetoserviceindustriesandtelecommunications.Pressuresofglobalcompetitioncausingfirmstoadaptbyloweringcostsandincreasingproductivity.Growthofinformationtechnology(Internet).30Copyright©2004South-Western.Allrightsreserved.*JobsoftheFutureFigure1–3Source:U.S.DepartmentofLabor,BureauofLaborStatistics,2001.31Copyright©2004South-Western.Allrightsreserved.*HRManagementChallengesWorkforceAvailabilityandQualityInadequatesupplyofworkerswithneededskillsfor“knowledgejobs”EducationofworkersinbasicskillsGrowthinContingentWorkforceIncreasesintemporaryworkers,independentcontractors,leasedemployees,andpart-timerscausedby:NeedforflexibilityinstaffinglevelsIncreaseddifficultyinfiringregularemployees.Reducedlegalliabilityfromcontractemployees32Copyright©2004South-Western.Allrightsreserved.*HRManagementChallengesDemographicsandDiversityIssuesMorediversityofrace,gender,age,andethnicityintheU.S.workforceBalancingWorkandFamilyDual-careercouplesSingle-parenthouseholdsDeclineinthe“traditionalfamily”Workingmothersandfamily/childcareSingleemployee“backlash”againstfamily-orientedprograms.33Copyright©2004South-Western.Allrightsreserved.*NewMomsintheWorkforceFigure1–4Source:U.S.CensusBureau,2000.34Copyright©2004South-Western.Allrightsreserved.*EthicsandHRWhatisEthicalBehavior?What“ought”tobedone.Dimensionsofdecisionsaboutethicalissuesinmanagement:ExtendedconsequencesMultiplealternativesMixedoutcomesUncertainconsequencesPersonaleffects35Copyright©2004South-Western.Allrightsreserved.*EthicsandHR(cont’d)RespondingtoEthicalSituationsGuidedbyvaluesandpersonalbehavior“codes”thatinclude:Doesresponsemeetallapplicablelaws,regulations,andgovernmentcodes?Doesresponsecomplywithallorganizationalstandardsofethicalbehavior?Doesresponsepassthetestofprofessionalstandardsforethicalbehavior?36Copyright©2004South-Western.Allrightsreserved.*EthicalIssuesinManagementMostCommonFormsofUnethicalConductLyingtosupervisorsEmployeedruguseoralcoholabuseFalsificationofrecordsInternationalEthicalIssuesGiftgivingandbriberyDiscriminationinhiringandtreatmentAddressingEthicalIssuesCodeofethicsTrainingmanagersandemployees37Copyright©2004South-Western.Allrightsreserved.*CodeofEthicsAsamemberoftheSocietyforHumanResourceManagement,Ipledgeto:Maintainthehigheststandardsofprofessionalandpersonalconduct.StriveforpersonalgrowthinthefieldofHRM.SupporttheSociety'sgoalsandobjectivesfordevelopingthehumanresourcemanagementprofession.Encouragemyemployertomakethefairandequitabletreatmentofallemployeesaprimaryconcern.Strivetomakemyemployerprofitablebothinmonetarytermsandthroughthesupportandencouragementofeffectiveemploymentpractices.38Copyright©2004South-Western.Allrightsreserved.*CodeofEthicsCont.Instillinemployeesandthepublicasenseofconfidenceabouttheconductandintentionsofmyemployer.Maintainloyaltytomyemployerandpursueitsobjectivesinwaysthatareconsistentwiththepublicinterest.Upholdalllawsandregulationsrelatingtomyemployer'sactivities.Refrainfromusingmyofficialpositions,eitherregularorvolunteer,tosecurespecialprivilege,gainorbenefitformyself.Maintaintheconfidentialityofprivilegedinformation.Improvepublicunderstandingoftheroleofhumanresourcemanagement.39Copyright©2004South-Western.Allrightsreserved.*OverallFrameworkfor

HumanResourceManagementPresentationSlide1–1COMPETITIVE

CHALLENGESGlobalizationTechnologyManagingchangeHumancapitalResponsivenessCostcontainmentHUMAN

RESOURCESPlanningRecruitmentStaffingJobdesignTraining/developmentAppraisalCommunicationsCompensationBenefitsLaborrelationsEMPLOYEE

CONCERNSBackgrounddiversityAgedistributionGenderissuesEducationallevelsEmployeerightsPrivacyissuesWorkattitudesFamilyconcernsFigure1.140Copyright©2004South-Western.Allrightsreserved.*CompetitiveChallengesandHumanResourcesManagementThemostpressingcompetitiveissuesfacingfirms:GoingglobalEmbracingtechnologyManagingchangeDevelopinghumancapitalRespondingtothemarketContainingcosts41Copyright©2004South-Western.Allrightsreserved.*GoingGlobalGlobalizationThetrendtowardopeningupforeignmarketstointernationaltradeandinvestment.ImpactofGlobalizationPartnershipswithforeignfirms“Anything,anywhere,anytime”marketsLowertradeandtariffbarriersNAFTA,EU,APECtradeagreementsWTOandGATT42Copyright©2004South-Western.Allrightsreserved.*GoingGlobal(cont’d)ImpactonHRMDifferentgeographies,cultures,laws,andbusinesspracticesIssues:Identifyingcapableexpatriatemanagers.Developingforeigncultureandworkpracticetrainingprograms.Adjustingcompensationplansforoverseaswork.43Copyright©2004South-Western.Allrightsreserved.*EmbracingNewTechnologyKnowledgeWorkersWorkerswhoseresponsibilitiesextendbeyondthephysicalexecutionofworktoincludeplanning,decisionmaking,andproblemsolving.TheSpreadofE-commerceTheRiseofVirtualWorkers44Copyright©2004South-Western.Allrightsreserved.*InfluenceofTechnologyinHRMHumanResourcesInformationSystem(HRIS)Computerizedsystemthatprovidescurrentandaccuratedataforpurposesofcontrolanddecisionmaking.Benefits:Storeandretrieveoflargequantitiesofdata.Combineandreconfiguredatatocreatenewinformation.Institutionalizationoforganizationalknowledge.Easiercommunications.Loweradministrativecosts,increaseproductivityandresponsetimes.45Copyright©2004South-Western.Allrightsreserved.*HumanResourceInformationSystemsHumanresourceinformationsystems(HRIS)Anintegratedsystemofhardware,software,anddatabasesdesignedtoprovideinformationusedinHRdecisionmaking.BenefitsofHRISAdministrativeandoperationalefficiencyincompilingHRdataAvailabilityofdataforeffectiveHRstrategicplanningUsesofHRISAutomationofpayrollandbenefitactivitiesEEO/affirmativeactiontracking46Copyright©2004South-Western.Allrightsreserved.*MajorUsesFor

HRInformationSystemsSource:HRandTechnologySurvey,Deloitte&ToucheandLawsonSoftware,1998.HRM147Copyright©2004South-Western.Allrightsreserved.*

UsesofanHRInformationSystem(HRIS)Figure2–1248Copyright©2004South-Western.Allrightsreserved.*ImpactofITonHRMTransformational

ImpactOperational

ImpactRelational

ImpactHRM49Copyright©2004South-Western.Allrightsreserved.*DesigningandImplementinganHRISHRISDesignIssuesWhatinformationavailableandwhatisinformationneeded?Towhatuseswilltheinformationbeput?Whatoutputformatcompatibilitywithothersystemsisrequired?Whowillbeallowedtoaccesstotheinformation?Whenandhowoftenwilltheinformationbeneeded?50Copyright©2004South-Western.Allrightsreserved.*AccessingtheHRISIntranetAnorganizational(internal)networkthatoperatesovertheInternet.ExtranetAnInternet-linkednetworkthatallowsemployeesaccesstoinformationprovidedbyexternalentities.Web-basedHRISUsesBulletinboardsDataaccessEmployeeself-serviceExtendedlinkage51Copyright©2004South-Western.Allrightsreserved.*AGuideToInternetSitesAmericanManagementAssociation(/start.htm)

AMAmembership,programs,training,etc.SocietyforHumanResourceManagement()

Currentevents,information,connections,articles.HRProfessional’sGatewaytotheInternet(/index2.html)

LinkstoHR-relatedwebpages.TrainingandDevelopmentHomepage(/trdev/)

Jobmart,traininglinks,T&Delectronicmailinglistlinks.HRM252Copyright©2004South-Western.Allrightsreserved.*AGuideToInternetSites(cont’d)FedWorld

()

Agatewaytomanygovernmentwebsites.U.S.DepartmentofLabor

()

Jobbank,laborstatistics,pressreleases,grants,contractinformation.OccupationalSafetyandHealthResources

()

OSHA-relatedsites,governmentpages,resources,etc.AFL-CIO

(/home.htm)

Unionnews,issuepapers,pressreleases,linkstolaborsites.HRM253Copyright©2004South-Western.Allrightsreserved.*HRMITInvestmentFactorsInitialcostsandannualmaintenancecostsFitofsoftwarepackagestotheemployeebaseAbilitytoupgradeIncreasedefficiencyandtimesavingsCompatibilitywithcurrentsystemsUser-friendlinessAvailabilityoftechnicalsupportNeedsforcustomizingTimerequiredtoimplementTrainingtimerequiredforHRandpayroll54Copyright©2004South-Western.Allrightsreserved.*ManagingChangeTypesofChangeReactivechangeChangethatoccursafterexternalforceshavealreadyaffectedperformanceProactivechangeChangeinitiatedtotakeadvantageoftargetedopportunitiesFormalchangemanagementprogramshelptokeepemployeesfocusedonthesuccessofthebusiness.55Copyright©2004South-Western.Allrightsreserved.*ManagingChangeWhyChangeEffortsFail:Notestablishingasenseofurgency.Notcreatingapowerfulcoalitiontoguidetheeffort.Lackingleaderswhohaveavision.Lackingleaderswhocommunicatethevision.Notremovingobstaclestothenewvision.Notsystematicallyplanningforandcreatingshort-term“wins.”Declaringvictorytoosoon.Notanchoringchangesinthecorporateculture.56Copyright©2004South-Western.Allrightsreserved.*RespondingtotheMarketTotalQualityManagement(TQM)Asetofprinciplesandpracticeswhosecoreideasincludeunderstandingcustomerneeds,doingthingsrightthefirsttime,andstrivingforcontinuousimprovement.SixSigmaAprocessusedtotranslatecustomerneedsintoasetofoptimaltasksthatareperformedinconcertwithoneanother.57Copyright©2004South-Western.Allrightsreserved.*RespondingtotheMarketReengineeringFundamentalrethinkingandradicalredesignofbusinessprocessestoachievedramaticimprovementsincost,quality,service,andspeed.Requiresthatmanagerscreateanenvironmentforchange.Dependsoneffectiveleadershipandcommunicationprocesses.Requiresthatadministrativesystemsbereviewedandmodified.58Copyright©2004South-Western.Allrightsreserved.*ContainingCostsDownsizingTheplannedeliminationofjobs(“headcount”).OutsourcingContractingoutsidetheorganizationtohaveworkdonethatformerlywasdonebyinternalemployees.EmployeeLeasingTheprocessofdismissingemployeeswhoarethenhiredbyaleasingcompany(whichhandlesallHR-relatedactivities)andcontractingwiththatcompanytoleasebacktheemployees.59Copyright©2004South-Western.Allrightsreserved.*DownsizingandUpsizingPercentofcompaniesreportingthatthey:*Allannualreadingsarefor12monthsendingatmidyear.Categoriesarenotmutuallyexclusive.Source:GeneKoretz,“HireMath:Fire3,Add5,”BusinessWeekOnline(March13,2000).Figure1.260Copyright©2004South-Western.Allrightsreserved.*ContainingCosts(cont’d)HiddenCostsofLayoffSeveranceandrehiringcostsAccruedvacationandsickdaypayoutsPensionandbenefitpayoffsPotentiallawsuitsfromaggrievedworkersLossofinstitutionalmemoryandtrustinmanagementLackofstafferswhentheeconomyreboundsSurvivorswhoarerisk-averse,paranoid,andpolitical61Copyright©2004South-Western.Allrightsreserved.*ContainingCosts(cont’d)BenefitsofaNo-LayoffPolicyAfiercelyloyal,moreproductiveworkforceHighercustomersatisfactionReadinesstosnapbackwiththeeconomyArecruitingedgeWorkerswhoaren’tafraidtoinnovate,knowingtheirjobsaresafe.62Copyright©2004South-Western.Allrightsreserved.*ProductivityEnhancementsFigure1.3PresentationSlide1–2MOTIVATIONJobenrichmentPromotionsCoachingFeedbackRewardsENVIRONMENTEmpowermentTeamsLeadersupportCultureABILITYRecruitmentSelectionTrainingDevelopmentPerf=f(A,M,E)63Copyright©2004South-Western.Allrightsreserved.*SocialIssuesandHRMChangingDemographicsShrinkingpoolofentry-levelworkersProductivityIndividualdifferencesRetirementbenefitsSocialSecuritycontributionsSkillsdevelopmentUseoftemporaryemployees HRM464Copyright©2004South-Western.Allrightsreserved.*SocialIssuesandHRM(cont’d)Employer/EmployeeConcernsJobasanentitlementRighttoworkWhistle-blowingEmploymentatwillAIDSComparableworth

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