Attracting and Retaining the Best Employees Chapter 9 Attracting and Retaining the Best Employees

Learning Objectives Describe the major components of human resources management. Identify the steps in human resources planning. Describe cultural diversity and understand some of the challenges and opportunities associated with it. Explain the objectives and uses of job analysis. Describe the processes of recruiting, employee selection, and orientation. Discuss the primary elements of employee compensation and benefits. Explain the purposes and techniques of employee training, development, and performance appraisal. Outline the major legislation affecting human resources management.

Human Resources Management (HRM) …all the activities involved in acquiring, maintaining, and developing an organization’s human resources.

Acquiring Planning Job Analysis Recruiting Selection Orientation

Maintaining Compensation Benefits Employee Relations

Developing Performance Appraisal Training & Development

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

Human Resources Planning …the development of strategies to meet a firm’s future human resources needs.

Human Resources Planning Process Match Supply With Demand Forecast Supply Forecast Demand

Forecasting HR Supply Factors Tools 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

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 http://www.shrm.org The American Society for Training and Development is an example of sources for more specialized areas of HRM http://www.astd.org

Cultural (Workplace) Diversity …differences among people in a work force owing to race, ethnicity, and gender.

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..

Job Analysis …a systematic procedure for studying jobs to determine their various elements and requirements.

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

Elements of Job Description Duties to be performed Working conditions Responsibilities Tools & equipment used

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

Elements in Job Specification Skills Abilities Education Experience

Figure 9.1: Job Description and Job Specification Source: Used with permission of Houghton Miffl in Company.

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

Sources Used in Recruiting Factors Nature of position Situation within firm Firm’s established/traditional recruitment policies Location External Internal

Selection …the process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant.

Techniques of Selection Application Tests Interviews References Assessment Centers

Uses of Data from Employment Application Identify applicants worthy of further scrutiny Familiarize interviewers with their backgrounds

Focus of Employment Tests Aptitude Skills Abilities Knowledge relevant to job Non-discriminatory measurement

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

References Verify background information Provide personal evaluations

Assessment Centers Primarily for higher-level positions Simulate management environment Trained observers make recommendations Gaining popularity Very expensive

…the process of acquainting new employees with an organization. Orientation …the process of acquainting new employees with an organization.

Effective Employee Reward System Enables employees to satisfy basic needs Provides rewards comparable with those offered by other firms Is distributed fairly within the organization Recognizes that different people have different needs

…the payment employees receive in return for their labor. Compensation …the payment employees receive in return for their labor.

…the policies and strategies that determine employee compensation. Compensation System …the policies and strategies that determine employee compensation.

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

Comparable Worth …a concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills.

Spotlight Are Women Paid Less? Source: Census Bureau, January 2009.

Weekly/Monthly Salary Commissions Incentive Payments Types of Compensation Hourly Wage Weekly/Monthly Salary Commissions Incentive Payments Gain Sharing Merit Pay Lump-Sum Salary Increases Profit Sharing

Employee Benefits …a reward in addition to regular compensation that is provided indirectly to employees.

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.

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.

Employee Training …the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently.

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.

Management Development …the process of preparing managers and other professionals to assume increased responsibility in both present and future positions.

Analysis of Training Needs Is training needed? Is the need for training or for motivation? If for training, what type? Technical skills Organizational procedures

Training and Development Methods On-the-job Simulations Classroom teaching/lectures Conferences/seminars Role playing Evaluation + set objectives

Performance Appraisal …the evaluation of employees’ current and potential levels of performance to allow managers to make objective human resources decisions.

Evaluation Techniques Objective methods: measure quantity Judgmental methods: judge/estimate performance level (used more frequently) Importance of avoiding appraisal errors

Figure 9.3: Performance Appraisal Source: Courtesy of 3M.

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

Table 9.2: Federal Legislation Affecting HRM

Chapter Quiz The maintaining of human resources management consists primarily of motivating employees through human resources planning. recruiting. compensation and benefits. selection. orientation.

Chapter Quiz ___________ refers to the differences among people in a workforce due to race, ethnicity, and gender. Resource diversity Human resources management Cultural diversity Job analysis Workforce analysis

Chapter Quiz A newer selection technique is the ____________, which puts applicants in a simulated job situation for a day. employment test structured interview employee orientation job center assessment center

Chapter Quiz The Camden Corp. wants to set an accurate wage level for its employees. The information Camden is most likely to consider is the 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.

Chapter Quiz Title VII of the Civil Rights Act of 1964 applies directly to discrimination based on age. wages. equal pay for equal work. selection and promotion. employee health and safety.