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

2. 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.

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

4. Acquiring
Planning
Job Analysis
Recruiting
Selection
Orientation

5. Maintaining
Compensation
Benefits
Employee Relations

6. Developing
Performance Appraisal
Training & Development

7. 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

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

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

10. 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

11. When HR Supply Exceeds Demand
Lay-off
Attrition
Early retirement
Firing

12. Using the Internet
The Society for Human Resource Management is an excellent source of general information about HRM
The American Society for Training and Development is an example of sources for more specialized areas of HRM

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

14. 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..

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

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

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

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

19. Elements in Job Specification
Skills
Abilities
Education
Experience

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

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

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

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

24. Techniques of Selection
Application
Tests
Interviews
References
Assessment Centers

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

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

27. 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

28. References
Verify background information
Provide personal evaluations

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

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

31. 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

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

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

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

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

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

37. 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

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

39. 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.

40. 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.

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

42. 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.

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

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

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

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

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

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

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

50. Table 9.2: Federal Legislation Affecting HRM

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

52. 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

53. 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

54. 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.

55. 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.