Page 394 - Encyclopedia of Business and Finance

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Human Resource Management

versa. In the ideal situation, employees feel they are paid which generally allows participants to see a demonstration
what they are worth, are rewarded with sufficient benefits, and to work with the product first-hand. On-the-job
and receive some intrinsic satisfaction (good work envi- training and apprenticeships let participants acquire new
ronment, interesting work, etc.). Compensation should skills as they continue to perform various aspects of the
be legal and ethical, adequate, motivating, fair and equi- job. Computer-based training (CBT) provides learners at
table, cost-effective, and able to provide employment various geographic locations access to material to be
security (Cherrington, 1995). learned at convenient times and locations. Simulation
exercises give participants a chance to learn outcomes of
TRAINING AND DEVELOPMENT choices in a nonthreatening environment before applying
the concept to real situations.
Performance appraisals not only assist in determining
compensation and benefits, but they are also instrumental Training focuses on the current job, while develop-
in identifying ways to help individuals improve their cur- ment concentrates on providing activities to help
rent positions and prepare for future opportunities. As the employees expand their current knowledge and to allow
structure of organizations continues to change through for growth. Types of development opportunities include
downsizing or expansion, the need for training and devel- mentoring, career counseling, management and supervi-
opment programs continues to grow. Improving or sory development, and job training (Cherrington,
obtaining new skills is part of another area of HRM, 1995).
known as training and development.
“Training focuses on learning the skills, knowledge, EMPLOYEE AND LABOR RELATIONS
and attitudes required to initially perform a job or task or Just as human resource developers make sure employees
to improve upon the performance of a current job or task, have proper training, there are groups of employees organ-
while development activities are not job related, but con- ized as unions to address and resolve employment-related
centrate on broadening the employee’s horizons” (Nadler issues. Unions have been around since the time of the
and Wiggs, 1986, p. 5). Education, which focuses on American Revolution (Mondy, Noe, and Gowan, 2005).
learning new skills, knowledge, and attitudes to be used in Those who join unions usually do so for one or both of
future work, also deserves mention (Nadler and Wiggs, two reasons—to increase wages and/or to eliminate unfair
1986). conditions. Some of the outcomes of union involvement
Because the focus is on the current job, only training include better medical plans, extended vacation time, and
and development will be discussed. Training can be used increased wages (Cherrington, 1995).
in a variety of ways, including (1) orienting and inform- In the early twenty-first century, unions remain a
ing employees, (2) developing desired skills, (3) prevent- controversial topic. Under the provisions of the Taft-Hart-
ing accidents through safety training, (4) supplying ley Act, the closed-shop arrangement states employees
professional and technical education, and (5) providing (outside the construction industry) are not required to
supervisory training and executive education (Cherring- join a union when they are hired. Union-shop arrange-
ton, 1995). ments permit employers to hire nonunion workers con-
Each of these training methods has benefits to the tingent upon their joining the union once they are hired.
individual as well as to the organization. Some of the ben- The Taft-Hartley Act gives employers the right to file
efits are reducing the learning time for new hires, teaching unfair labor practice complaints against the union and to
employees how to use new or updated technology, express their views concerning unions (Cherrington,
decreasing the number and cost of accidents because 1995).
employees know how to operate a machine properly, pro- Not only do HR managers deal with union organiza-
viding better customer service, improving quality and tions, but they are also responsible for resolving collective
quantity of productivity, and obtaining management bargaining issues—namely, the contract. The contract
involvement in the training process (Cherrington, 1995). defines employment-related issues such as compensation
When managers go through the training, they are show- and benefits, working conditions, job security, discipline
ing others that they are taking the goals of training seri- procedures, individuals’ rights, management’s rights, and
ously and are committed to the importance of human contract length. Collective bargaining involves manage-
resource development. ment and the union trying to resolve any issues peace-
The type of training depends on the material to be fully—before the union finds it necessary to strike or
learned, the length of time learners have, and the financial picket and/or management decides to institute a lockout
resources available. One type is instructor-led training, (Cherrington, 1995).

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 371