* * Chapter Eleven Human Resource Management: Finding and Keeping the Best Employees Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals. -Previously, HRM was ‘personnel’: involved in clerical functions, i.e., screening applications, keeping records, processing payroll, finding new staff etc. -Roles of HRM have evolved due to: i) Organization’s recognition of staff as their ultimate resource, ii) Changes in law revised the traditional organizational practices. * * Chapter Eleven Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin HUMAN RESOURCE MANAGEMENT (HRM)

HR Challenge & Opportunities Shortages of trained workers in growth areas Rise of unskilled & underemployed workers Undereducated & underprepared workers Shift in workforce Composition-retirement of baby boomers Changes in laws & regulations Single-Parent & Two- Income Families  Shift in attitudes toward work-priority for leisure  Continued Downsizing  Cheap overseas labor pools  Increased Customized & cost-effective Benefits  Employees with growing concerns of health care, child & elder care, drug testing, workplace violence and opportunities for people with disabilities.  Decreased Loyalty

* * Chapter Eleven Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Organizationa l Goals Human Resource Managemen t Recruitme nt Selection Training And Developm ent Motivation Performan ce Evaluation Compensa tion and Benefit Scheduling Employee Union Relations Career Managem ent

* * 5 STEPS IN HR PLANNING PROCESS Determining a Firm’s Human Resource Needs LG3 Step 1. Preparing a human resource inventory of employees. Step 2. Preparing a job analysis. Step 3. Assessing future human resource demand. Step 4. Assessing future labor supply. Step 5. Establishing a strategic plan. 11-5

* * Determining HR Needs Determining a Firm’s Human Resource Needs LG3 A JOB ANALYSIS is a study of what is done by employees who hold various jobs. The results of the job analysis are two written statements: (1) Job Description; and, (2) Job specification. 11-6

* * Results of Job Analysis Determining a Firm’s Human Resource Needs LG3 JOB DESCRIPTION is a summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working condition, and the relationship of the job to other functions, e.g. manage staff, schedule employee shifts, coordinate travel for all executives JOB SPECIFICATIONS are written summaries of the minimum qualifications required of workers to do a particular job, e.g. two years experience, computer literate.

* * RECRUITING EMPLOYEES Recruiting Employees from a Diverse Population LG4 Recruitment -- The set of activities for obtaining the right number of qualified people at the right time. Human resource managers use both internal and external sources to recruit employees. Recruiting is challenging, because: -staff are subject to outside influence & restrictions -staff to be fit in corporate culture, teamwork and participative management -Unavailability of skilled employees. 11-8

* * EMPLOYEE SOURCES LG4 Recruiting Employees from a Diverse Population 11-9

* * SELECTION Selecting Employees Who Will be Productive LG5 The process of gathering information and deciding who should be hired, under legal guidelines, to fit the needs of the organization and individuals. Selection & training are extremely expensive process

* * SELECTION Process Selecting Employees Who Will be Productive LG5 Step 1.Obtaining complete application forms Step 2.Conducting initial and follow up interviews Step 3. Giving employment tests Step 4. Conducting background investigations Step 5. Obtaining results from physical exams Step 6. Establishing trial (probationary) periods 11-11

* * Hiring Contingent Worker Selecting Employees Who Will be Productive LG5 These include part-time workers, temporary workers, seasonal workers, interns, and co-op students. Also, they are hired on special cases, i.e, to temporarily substitute full-timers, or to meet the peak demand or uncertain economy. They do not have the expectation of regular, full-time employment. Contingent workers receive FEW BENEFITS and EARN LESS than permanent workers do. They are usually highly PRODUCTIVE

* * TRAINING and DEVELOPING EMPLOYEES Training and Developing Employees for Optimum Performance LG6 Training and Development -- All attempts to improve productivity by increasing an employee’s ability to perform. Training focuses on short-term skills. Development focuses on long-term abilities. Both include 3 steps: (i) Assessing organization needs and employee skills to determine training needs; (ii) Designing training activities to meet identified needs; (iii) Evaluating the training effectiveness

* * MOST COMMONLY USED TRAINING and DEVELOPMENT ACTIVITIES Training and Developing Employees for Optimum Performance LG6 Orientation On-the-Job Training Apprentice Programs Off-the-Job Training Online Training Vestibule Training Job Simulation 11-14

* * DEVELOPING EFFECTIVE MANAGERS Management Development LG6 Management Development -- The process of training and educating employees to become good managers and tracking the progress of their skills over time. Management training includes:  On-the-job coaching  Understudy positions  Job rotation  Off-the-job courses and training 11-15

* * DEVELOPING EFFECTIVE MANAGERS Management Development LG6 Networking –The process of establishing and maintaining contacts with key managers in & outside the organization and using those contacts to weave strong relationships that serve as informal development systems. Mentor—An experienced employee who supervises, coaches and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor. Diversity-- Emphasizes on grooming women and minorities for management positions

* * APPRAISING EMPLOYEE PERFORMANCE Steps in performanc e appraisal LG7 PERFORMANCE APPRAISAL is an evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing. Almost all workers undergo a performance appraisal annually at large corporations. In the 360-degree review, management gathers opinions from all around the employees in order to get a comprehensive idea of the worker’s abilities

* * COMPENSATION PROGRAMS Compensating Employees: Attracting and Keeping the Best LG8 A well-managed and competitive compensation program helps:  Attract the kinds of employees the business needs.  Build employee incentive to work efficiently and productively.  Keep valued employees from going to competitors or starting their own firm.  Maintain a competitive market position by keeping costs low due to high productivity from a satisfied workforce.  Provide employee financial security through wages and fringe benefits

* * TYPES of PAY SYSTEMS Pay Systems LG8 Salary Hourly Wage/Day Work Piecework System Commission Plans Bonus Plans-monetary & cashless Profit Sharing Plans/Performance-based pay (annual) Gain-Sharing Plans (annual) Stock Options 11-19

* * Compensating teams Pay Systems LG8 Team-based pay programs -Skill-based pay: Rewards the growth of both the individuals and the team with a rise in “Base Pay” when team-members learn and apply new skills. -Gain-sharing systems: Base bonuses on improvements over previous performance. *Also, outstanding team-players should be rewarded for their outstanding individual contribution SEPARATELY

* * Fringe Benefits Pay Systems LG8 FRINGE BENEFITS include sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages. a.In recent years benefit programs grew faster than wages. b.Benefits account for about 30% OF PAYROLLS today. c.Many employees want more fringe benefits instead of more salary to avoid higher taxes. SOFT-BENEFITS help workers maintain balance between work & family life. CAFETERIA-STYLE FRINGE BENEFITS allow employees to choose the benefits they want up to a certain dollar amount