Chapter 9 Attracting and Retaining the Best Employees
Chapter 9 Attracting and Retaining the Best Employees
Learning Objectives 1. Describe the major components of human resources management. 2. Identify the steps in human resources planning. 3. Describe cultural diversity and understand some of the challenges and opportunities associated with it. 4. Explain the objectives and uses of job analysis. 5. Describe the processes of recruiting, employee selection, and orientation. 6. Discuss the primary elements of employee compensation and benefits. 7. Explain the purposes and techniques of employee training, development, and performance appraisal. 8. Outline the major legislation affecting human resources management. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 2
Human Resources Management (HRM) …all the activities involved in acquiring, maintaining, and developing an organization’s human resources. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 3
Acquiring Planning Job Analysis Recruiting Selection Orientation Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 4
Maintaining Compensation Benefits Employee Relations Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 5
Developing Training & Development Performance Appraisal Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 6
HRM Responsibility § Line managers and staff HRM specialists share responsibility § Staff specialists develop specific HR activities (e. g. , training and development) and deliver them with the assistance and input of line managers Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 7
Human Resources Planning …the development of strategies to meet a firm’s future human resources needs. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 8
Human Resources Planning Process Match Supply With Demand Forecast Supply Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 9
Forecasting HR Supply Factors § The firm’s present workforce and any internal changes or movements § Evolving technologies § Projected economic trends Tools § Replacement chart List of key personnel and their possible replacements within the firm § Skills inventory Computerized data bank containing information on the skills and experience of all present employees Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 10
When HR Supply Exceeds Demand § Lay-off § Attrition § Early retirement § Firing Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 11
Using the Internet § The Society for Human Resource Management is an excellent source of general information about HRM Ø http: //www. shrm. org § The American Society for Training and Development is an example of sources for more specialized areas of HRM Ø http: //www. astd. org Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 12
Cultural (Workplace) Diversity …differences among people in a work force owing to race, ethnicity, and gender. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 13
Table 9. 1: Competitive Advantages of Cultural Diversity Sources: Taylor H. Cox and Stacy Blake, “Managing Cultural Diversity: Implications for Organizational Competitiveness, ” Academy of Management Executives 5(3): 46, 1991; Graciela Kenig, “Yo Soy Ingeniero: The Advantages of Being Bilingual in Technical Professions, ” Diversity Monthly, February 28, 1999, p. 13; and “Dialogue Skills in the Multicultural Workplace, ” North American Post, March 19, 1999, p. 2. . Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 14
Job Analysis …a systematic procedure for studying jobs to determine their various elements and requirements. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 15
Job Description …a list of the elements that make up a particular job. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 16
Elements of Job Description ü Duties to be performed ü Working conditions ü Responsibilities ü Tools & equipment used Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 17
Job Specification …a list of qualifications required to perform a particular job. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 18
Elements in Job Specification ü Skills ü Abilities ü Education ü Experience Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 19
Figure 9. 1: Job Description and Job Specification Source: Used with permission of Houghton Miffl in Company. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 20
Recruiting …the process of attracting qualified job applicants. Needs to be systematic. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 21
Sources Used in Recruiting § Factors • Nature of position • Situation within firm • Firm’s established/traditional recruitment policies § Location • External • Internal Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 22
Selection …the process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 23
Techniques of Selection § Application § Tests § Interviews § References § Assessment Centers Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 24
Uses of Data from Employment Application Ø Identify applicants worthy of further scrutiny Ø Familiarize interviewers with their backgrounds Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 25
Focus of Employment Tests § Aptitude § Skills § Abilities § Knowledge relevant to job § Non-discriminatory measurement Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 26
Interview § Most widely used selection technique § Provides opportunity for applicant/firm to learn more about each other § Structured Interview = interviewer asks only a prepared set of job-related questions Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 27
References § Verify background information § Provide personal evaluations Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 28
Assessment Centers § Primarily for higher-level positions § Simulate management environment § Trained observers make recommendations § Gaining popularity § Very expensive Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 29
Orientation …the process of acquainting new employees with an organization. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 30
Effective Employee Reward System 1. Enables employees to satisfy basic needs 2. Provides rewards comparable with those offered by other firms 3. Is distributed fairly within the organization 4. Recognizes that different people have different needs Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 31
Compensation …the payment employees receive in return for their labor. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 32
Compensation System …the policies and strategies that determine employee compensation. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 33
Compensation Decisions § Wage Level: wage survey § Wage Structure: job evaluation § Individual Wages Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 34
Comparable Worth …a concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 35
Spotlight Are Women Paid Less? Source: Census Bureau, January 2009. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 36
Types of Compensation § § Hourly Wage Weekly/Monthly Salary Commissions Incentive Payments • Gain Sharing • Merit Pay § Lump-Sum Salary Increases § Profit Sharing Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 37
Employee Benefits …a reward in addition to regular compensation that is provided indirectly to employees. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 38
Types of Benefits § Pay for time not worked: vacation time, holidays, sick leave § Insurance packages: health, life, dental § Pension/retirement programs § Required by law: workers’ compensation, unemployment insurance, Social Security § Other: tuition reimbursement, credit unions, child care, cafeteria, etc. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 39
Flexible Benefit Plans …compensation plan whereby an employee receives a predetermined amount of benefit dollars to spend on a package of benefits he or she has selected to meet individual needs. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 40
Employee Training …the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 41
Economic Constraints Take a Toll on Training Dollars Spent per Learner Source: Data from Karen O’Leonard, The Corporate Learning Factbook, 2009: Benchmarks, Trends and Analysis of the U. S. Corporate Training Market, © 2009 Bersin & Associates. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 42
Management Development …the process of preparing managers and other professionals to assume increased responsibility in both present and future positions. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 43
Analysis of Training Needs § Is training needed? § Is the need for training or for motivation? § If for training, what type? • Technical skills • Organizational procedures Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 44
Training and Development Methods ü On-the-job ü Simulations ü Classroom teaching/lectures ü Conferences/seminars ü Role playing ü Evaluation + set objectives Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 45
Performance Appraisal …the evaluation of employees’ current and potential levels of performance to allow managers to make objective human resources decisions. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 46
Evaluation Techniques § Objective methods: measure quantity § Judgmental methods: judge/estimate performance level (used more frequently) § Importance of avoiding appraisal errors Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 47
Figure 9. 3: Performance Appraisal Source: Courtesy of 3 M. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 48
Performance Feedback Interview § Tell-and-Sell § Tell-and-Listen § Problem-Solving § 360 -Degree Evaluation Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 49
Table 9. 2: Federal Legislation Affecting HRM Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 50
Chapter Quiz 1. The maintaining of human resources management consists primarily of motivating employees through a) b) c) d) e) human resources planning. recruiting. compensation and benefits. selection. orientation. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 51
Chapter Quiz 2. ______ refers to the differences among people in a workforce due to race, ethnicity, and gender. a) b) c) d) e) Resource diversity Human resources management Cultural diversity Job analysis Workforce analysis Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 52
Chapter Quiz 3. A newer selection technique is the ______, which puts applicants in a simulated job situation for a day. a) b) c) d) e) employment test structured interview employee orientation job center assessment center Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 53
Chapter Quiz 4. The Camden Corp. wants to set an accurate wage level for its employees. The information Camden is most likely to consider is the a) b) c) d) e) wage level of its closest competition. wage levels of noncompetitors in the immediate vicinity. industry average. wage levels of its foreign competition. corporate average wage level. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 54
Chapter Quiz 5. Title VII of the Civil Rights Act of 1964 applies directly to a) b) c) d) e) discrimination based on age. wages. equal pay for equal work. selection and promotion. employee health and safety. Copyright © Cengage Learning. All rights reserved. Chapter 9 | Slide 55
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