11-1 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. NickelsMcHughMcHugh Nickels Cover NickelsMcHughMcHugh

11-2 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 1111 Human Resource Management: Finding and Keeping the Best Employees 11-2

11-3 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Executives’ Toughest HRM Issues Source: Business2.com, June 12, 2001

11-4 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. HR Challenge  Shortages  Unskilled Workers  Undereducated Workers  Shift in Workforce Composition  Laws & Regulations  Single-Parent & Two-Income Families  Attitudes Toward Work  Continued Downsizing  Overseas Labor Pools  Customized Benefits  Employees With New Concerns  Decreased Loyalty

11-5 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Determining HR Needs 1)Prepare HR Inventory 2)Prepare Job Analysis  Description  Specification 3) Assess Demand 4) Assess Supply 5) Establish Strategic Plan

11-6 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Hiring Process  Recruit  Select  Application Form  Interview  Test  Investigate  Examine  Probation  Train/Develop  Orientation  OJT  Apprenticeship  Off-The-Job Training  Online Training  Vestibule Training  Job Simulation

11-7 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. How Workers Found Last Job Source: USA Today “Snapshots”

11-8 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. What Attracts Employees to Specific Employers? % Employees That Agree

11-9 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Interviewing Mistakes Source: USA Today “Snapshots”

11-10 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. What Not to Ask In Job Interviews  What is your date of birth?  Have you ever filed a worker’s comp. claim?  Sometimes we will need the person we hire to work late hours. Will this cause problems with your childcare?  What is your native language?  What is your place of birth?  Do you own a home?  I see you use a walker. If we were to hire you, what accommodations would you require?

11-11 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Why Companies Use Temporary Workers  Provide flexibility to meet demand fluctuations  Acquire specific expertise  Fill-in for absentee workers  Screen candidates for future employment  Control increasing benefit cost  Offset effects of downsizing

11-12 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Training & Development  Assess Needs  Design Training  Evaluate Effectiveness

11-13 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Training Methods 1)Orientation 2)On-The-Job 3)Apprenticeship 4)Off-The-Job 5)Online 6)Vestibule 7)Job Simulation

11-14 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Management Development On-The-Job Coaching On-The-Job Coaching Understudy Understudy Job Rotation Job Rotation Off-The-Job Courses & Training Off-The-Job Courses & Training Network- Mentor Network- Mentor Diversity Diversity

11-15 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Major Uses of Performance Appraisals  Identify training needs  Use as a promotion tool  Recognize workers’ achievements  Evaluate hiring process  Judge effectiveness of orientation process  Use as a basis for terminating workers

11-16 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Performance Appraisal 1.Establish Standards 2.Communicate Standards 3.Evaluate Performance 4.Discuss Results 5.Take Corrective Action 6.Use Results to Make Decisions

11-17 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Payroll Dollar Expense Source: CFO, March 2003

11-18 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Comparing HR Approaches Old HR Approach Pay based on salary grades & hourly rates Pay based on salary grades & hourly rates Bonuses tied to unit & company performance Bonuses tied to unit & company performance Benefits standard throughout organization. Benefits standard throughout organization. Mgmt. strategy modeled on best practices at high- performing companies. Mgmt. strategy modeled on best practices at high- performing companies. Career structures predetermined Career structures predetermined New HR Approach Pay based on achieving goals Pay based on achieving goals Bonuses tied to individual performance Bonuses tied to individual performance Benefits tailored to employee groups Benefits tailored to employee groups Strategy based on internal analysis of employees Strategy based on internal analysis of employees Career structures sculpted to individuals Career structures sculpted to individuals Source: BusinessWeek, December 16, 2002

11-19 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. What Makes Employees Stay Source: Source: BridgeGate, Irvine, CA & Market Facts Inc., Arlington Heights, IL

11-20 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Compensation & Benefits Objectives Attract Attract Incentive Incentive Retain Retain Maintain Maintain Security Security

11-21 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Employee Retention  Compensation -Individual -Team  Fringe Benefits  Job-Sharing  Flextime -Core Time -Compressed Workweek  Home-Based & Mobile Work

11-22 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Incentives Offered to Retain Top Talent Survey of Executives That Offer: Source: USA Today “Snapshots”

11-23 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Most Common Fringe Benefits Offered Source: INC 500 Almanac

11-24 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Unusual Benefits Offered to Workers  Steelcase- 1,200 acre camping and recreational area  SYNOVUS- $50 bonus to take physical exam, $200 reward if vital signs are OK  Los Angeles Dodgers- free ice cream for staff if team is in first place  XEROX- Life Cycle Account or $1,000 to help employees with major thresholds (buying home, college)

11-25 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Number of Hours Americans Work Per Week Source: Source: USA Today

11-26 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Reasons for Using Flextime Reasons for Using Flextime

11-27 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Employee Movement oPromotion/Reassignment oTermination oRetirement oResignation

11-28 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. HR & Legal Issues Civil Rights Act (1964)Civil Rights Act (1964) Age Discrimination Act (1967)Age Discrimination Act (1967) Equal Employment Opportunity Act (1972)Equal Employment Opportunity Act (1972) –Affirmative Action –Reverse Discrimination Civil Rights Act (1991)Civil Rights Act (1991) Americans with Disabilities Act (1990)Americans with Disabilities Act (1990) Family Medical Leave Act (1993)Family Medical Leave Act (1993)

11-29 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Implementing EEOC Which statements are T/F?  It’s OK to ask any applicant whether he or she has an automobile.  It appropriate to ask applicants to attach photographs.  During interviews, it’s appropriate to ask an applicant his/her age.  It’s appropriate to ask if an applicant is a naturalized citizen.  It’s not appropriate to ask an applicant about post work experience.

11-30 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.  You may ask an applicant to indicate what foreign languages he/she can read, write or speak fluently.  It’s appropriate to ask an applicant if he/she has an arrest record.  It’s OK to ask whether the applicant is physically able to lift heavy weights.  It’s appropriate to ask women questions about childcare arrangements.  You have the right to ask an applicant for names of work-related and personal references. Implementing EEOC (Cont’d) Which statements are T/F?

11-31 McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. What Makes a Company Truly Diverse? Source: USA Today, “Snapshots” (Based on a telephone survey of 1,022 Americans)