chapter nine attracting and retaining the best employees

Chapter Nine

Attracting and Retaining

the Best Employees

Copyright © Cengage Learning. All rights reserved

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.

9 | 2


Learning Objectives (cont’d)

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.

9 | 3

Chapter 9 Outline

– Human Resources Management: An Overview• HRM Activities• Responsibility for HRM

– Human Resources Planning• Forecasting Human Resources Demand• Forecasting Human Resources Supply• Matching Supply with Demand

– Cultural Diversity in Human Resources– Job Analysis– Recruiting, Selection, and Orientation

• Recruiting• Selection• Orientation

– Compensation and Benefits• Compensation Decisions• Comparable Worth• Types of Compensation• Employee Benefits

Copyright © Cengage Learning. All rights reserved 9 | 4

Chapter 9 Outline (cont’d)

– Training and Development• Analysis of Training Needs• Training and Development Methods• Evaluation of Training and Development

– Performance Appraisal• Common Evaluation Techniques• Performance Feedback

– The Legal Environment of HRM• National Labor Relations Act and Labor-Management Relations

Act• Fair Labor Standards Act• Equal Pay Act• Civil Rights Act• Age Discrimination in Employment Act• Occupational Safety and Health Act• Employee Retirement Income Security Act• Affirmative Action• Americans with Disabilities Act

Copyright © Cengage Learning. All rights reserved 9 | 5


HRM: An Overview

• Acquisition– Human resources planning

– Job analysis

– Recruiting

– Selection

– Orientation

9 | 6


HRM: An Overview (cont’d)

• Maintaining

– Employee relations

– Compensation

– Benefits

• Development

– Training and development

– Performance appraisal

9 | 7


HRM: An Overview (cont’d)

• Responsibility for HRM

• Forecasting human resources demand

– Factors affecting HR demand

– HR staff determine both the number of employees needed and their qualifications

9 | 8


Human Resources Planning (cont’d)

• Forecasting human resources supply

– Factors affecting HR supply

• Supply forecasting techniques

– Replacement chart

– Skills inventory

9 | 9


Human Resources Planning (cont’d)

• Matching supply with demand

• Layoffs

• Attrition

• Early retirement

9 | 10


Cultural Diversity in Human Resources

• Advantages of diversity

• Coping with diversity challenges

9 | 11


Job Analysis

• Job description

• Job specification

• Used for recruiting, selecting, evaluation, and compensation decisions

9 | 12


Recruiting

• External recruiting

– Sources

– Advantages

– Disadvantages

9 | 13


Recruiting (cont’d)

• Internal recruiting

– Advantages

– Disadvantages

9 | 14


Selection

• Employment applications

• Employment tests

• Interviews

• References

• Assessment centers

9 | 15


Orientation

• The process of acquainting new employees with an organization

• Topics– Range from location of company cafeteria to

career paths within the firm

• May be brief and informal or long and formal

9 | 16


Compensation and Benefits

• Effective employee reward systems must– Enable employees to satisfy their basic needs

– Provide rewards comparable to those offered by other firms

– Be distributed fairly in the organization

– Recognize that different people have different needs

9 | 17


Compensation Decisions

• Compensation

• Compensation system

• Wage level

9 | 18


Compensation Decisions (cont’d)

• Wage structure

– Job evaluation

– Individual wages

• Comparable worth

9 | 19


Types of Compensation

• Hourly wage

• Salary

• Commissions

• Incentive payment

• Lump-sum salary increases

• Profit sharing9 | 20


Employee Benefits

• Type of benefits

– Pay for time not worked

– Insurance packages

– Pension and Retirement programs

– Required by law

• Flexible benefits plan

9 | 21


Training and Development

• Employee training

• Management development

• Development of a training program

9 | 22


Analysis of Training Needs

• Is training needed?

• What kind of training is needed?

• Is motivation needed?

• Training is expensive; be sure it is appropriate.

9 | 23


Training Development Methods

• On-the-job

• Simulation

• Classroom teaching and lectures

• Conferences and seminars

• Role playing

9 | 24


Evaluation of Training and Development

• Before training, develop a set of verifiable objectives that specify what is expected and how the results are to be measured

• Measure or verify training results

• Make the results known to all those involved in the program—including trainees and upper management

9 | 25


Performance Appraisal

• The evaluation of an employee’s current and potential levels of performance to allow managers to make objective human resource decisions

• Uses of performance appraisal

9 | 26


Common Evaluation Techniques

• Objective methods

• Judgmental methods

– Managerial estimates of employee performance levels

– Ranking

– Rating

9 | 27


Common Evaluation Techniques (cont’d)

• Avoiding appraisal errors– Use the entire evaluation instrument; avoid

focusing on one portion

– Do not let an employee’s poor performance in one area influence the evaluation of other areas of performance

– Evaluate the entire performance period and not the most recent behaviors of the employee

– Guard against any form of personal bias or discrimination in the evaluation

9 | 28


Performance Feedback

• Most often through a performance feedback interview

– Tell and sell

– Tell and listen

– Problem-solving approach

– Mixed interview

– 360-degree evaluation9 | 29


The Legal Environment of HRM

• National Labor Relations Act and Labor-Management Relations Act (1935)

• Fair Labor Standards Act (1938)

• Equal Pay Act (1963)

9 | 30


The Legal Environment of HRM (cont’d)

• Title VII of the Civil Right Act (1964)

• Occupational Safety and Health Act (1970)

• Employment Retirement Income Security Act (1974)

• Affirmative Action

9 | 31


The Legal Environment of HRM (cont’d)

• Americans with Disabilities Act (ADA) (1990)

• Age Discrimination in Employment Act (1967/1986)

9 | 32

chapter nine attracting and retaining the best employees

Documents