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.

Maintaining Compensation Benefits Employee Relations Copyright © Cengage Learning. All rights reserved. Chapter 9

Developing Training & Development Performance Appraisal Copyright © Cengage Learning. All rights reserved. Chapter

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

Human Resources Planning Process Match Supply With Demand Forecast Supply Copyright © Cengage Learning.

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

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,

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

Job Description …a list of the elements that make up a particular job. Copyright

Elements of Job Description ü Duties to be performed ü Working conditions ü Responsibilities

Job Specification …a list of qualifications required to perform a particular job. Copyright ©

Elements in Job Specification ü Skills ü Abilities ü Education ü Experience Copyright ©

Figure 9. 1: Job Description and Job Specification Source: Used with permission of Houghton

Recruiting …the process of attracting qualified job applicants. Needs to be systematic. Copyright ©

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

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

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

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.

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.

Compensation System …the policies and strategies that determine employee compensation. Copyright © Cengage Learning.

Compensation Decisions § Wage Level: wage survey § Wage Structure: job evaluation § Individual

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.

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

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.

Performance Feedback Interview § Tell-and-Sell § Tell-and-Listen § Problem-Solving § 360 -Degree Evaluation Copyright

Table 9. 2: Federal Legislation Affecting HRM Copyright © Cengage Learning. All rights reserved.

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