1. Managing Human Resources
Chapters 13
Attracting and Retaining
the Best Employees

2. Human Resource Management
The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals
All the activities involved in acquiring, maintaining, and developing an organization’s human resources

3. Before Recruiting Human resources planning
Determining the firm’s human resource needs
Job analysis
Determining the exact nature of the positions to be filled

4. Acquisition Attracting people to apply for positions in the firm
Recruiting
Attracting people to apply for positions in the firm
Selection
Choosing and hiring the most qualified applicants
Orientation
Acquainting new employees with the firm

5. Maintaining Employee relations
Increasing employee job satisfaction through satisfaction surveys, communication programs, exit interviews, and fair treatment
Compensation
Rewarding employee effort through monetary payments
Benefits
Providing rewards to ensure employee well-being

6. Development Training and development
Teaching employees new skills for more effective ways to do their present jobs and new jobs in the future
Performance appraisal
Assessing employees’ current and potential performance levels

7. Human Resource Management:
HR planning and Job analysis
Acquiring: Employee recruitment and selection
Retainning and developing: Employee training, performance appraisal, and compensation
Career managment
Employment termination

8. Human Resource Management Process
Strategies & objectives of the organization
Acquiring
HR planning & forecasting
Job analysis & design
Employee recruitment
Employee selection
Training & development
Performance planning & evaluation
Compensation & benefits
retainning
Organizational career management

9. HR planning & forecasting
Job analysis & design
Employee recruitment
Employee selection
HR planning:
The development of strategies to meet a firm’s future human resources needs
Demand forecast:
Determining the number of employees needed by some future time
Supply forecast (internal):
Estimating the number of current employees who will be available to fill various jobs at some future time

10. Forecasting HR Demand
Demand forecasts based on organizational goal and structure
Factors affecting HR demand
The firm’s overall strategic plan
The firm’s past history of staffing levels
Evolving technologies
Industry staffing practices
Projected economic trends

11. Forecasting HR Supply Factors affecting HR supply
The firm’s present workforce and any internal changes or movements
Evolving technologies
Projected economic trends
Supply forecasting techniques
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

12. Matching supply with demand
If demand is greater than internal supply, then the firm must recruit and select new employees
If supply is greater than demand, then the firm must prepare plans to reduce the workforce through
Layoffs: dismissing employees from the workforce until they are needed again
Attrition: normal reduction of the workforce that occurs when employees leave the firm
Early retirement: allowing or encouraging persons to retire early with full benefits
Firing may be necessary to remove excess employees from the workforce

13. HR planning & forecasting
Job analysis & design
Employee recruitment
Employee selection
Job Analysis:
A systematic procedure for studying jobs to determine their various elements and requirements
A study of the tasks required to do a particular job well
Studying a job to determine its tasks and duties for
Setting pay
Determining employee job performance
Specifying hiring requirements
Designing training programs

14. Job analysis
determines the responsibilities of the position and qualifications needed
job description
job specification

15. Job description Lists the tasks and responsibilities of the job
A list of the elements that make up a particular job
Duties to be performed
Working conditions
The jobholder’s responsibilities
The tools and equipment used on the job

16. Job Description (responsibilities)
example:
"Manage database components of large projects for the development of common process applications in Global Derivatives."

17. Job Description (example)
Lead and manage a sales team to achieve sales target
Develop territory and key account business.
Identify market opportunities and develop / implement sales plans.
Cultivate good business relationship with key customers.
Co-work with marketing team to implement activities in market.
Develop people and provide day-to-day coaching for sales team

18. Job specification
A list of the qualifications required to perform a particular job
Describes skills, knowledge, and abilities needed to fill the job described in the job description
Skills
Abilities
Education
Experience

19. Job Specifications (requirements)
University graduate, MBA is a preferred but not essential.
Experience with multi-national companies handling well known consumer products for more than 5 years. Leading sales teams in supervisory level (or above) for more than 3 years.
Good English is definitely required.
Proactive, aggressive, good team player, self-driven, innovative with strong commitment to drive good business result.

21. HR planning & forecasting
Employee recruitment
Employee selection
HR planning & forecasting
Job analysis & design
Recruitment:
The process of attracting qualified job applicants
The attempt to find and attract qualified applicants
Most firms begin by trying to fill the job from within
If internal candidates are not available, an external search begins

22. Internal Recruiting Promotion or transfer
Job posting may be required by policy or union contract
Advantages
Provides motivation for current employees
Helps retain quality personnel
Disadvantages
Cost of filling the newly vacant position
Cost of training another employee
Internal conflicts

23. External Recruiting Sources
Websites, newspaper ads, employment agencies, college campuses, union hiring halls, employee referrals, open houses, job fairs, walk-in applicants
Advantages
Fresh perspectives and varied backgrounds of new hires
Attracting applicants with the required skills and knowledge
Disadvantages
Expense
May cause resentment among existing employees

24. External Search Local media is used to find workers who are
Non-technical
Unskilled
Non-supervisory
Highly trained recruits are found by using
College recruiters
Executive search firms
Job fairs
Company Web sites

25. HR planning & forecasting
Employee recruitment
Employee selection
HR planning & forecasting
Job analysis & design
Selection:
The process of gathering information about applicants and then using that information to choose the most appropriate applicant
The process of determining which people in the applicant pool possess the qualifications necessary to be successful on the job

26. the employee selection process
Applicant submits an application or résumé
Receives a short, structured interview
Applicant may be asked to take an aptitude, personality, or skills test
Selection interview
In-depth discussion of applicant’s
Work experience, skills, and abilities
Education and career interests
Applicants seeking professional or managerial positions may be interviewed by several people
Successful applicants may be asked to undergo a physical exam

27. Steps of the Selection Process
Initial screening
Employment testing
Selection interview
Background and reference checks
Physical examination
Decision to hire

28. Provide useful factual information about the applicant
Applications
Provide useful factual information about the applicant
Information gathered is used for
Identifying applicants worthy of further consideration
Familiarizing interviewers with applicant backgrounds

31. Resume Types
Chronological: focus on experience, each job described in some detail, better with objective or summary, not good for career change
Functional: highlights skills and accomplishments, good for career change, new comers, returning
Combined: both chronological and functional, a shorter chronology following a short "Skills and Accomplishments" section, or with a longer Summary including a skills list or a list of "qualifications"); or a standard functional resume with the accomplishments under headings of different jobs held.

32. Sample Resume Format
Personal Information: 　name, address, contact info　
Work Experience: chronological, position, responsibilities, achievements
Education:
Activities:
Skills and Qualifications
Others　

33. Resume Related Issues
Job Objective:? (all leading to position applied)
Chinese Name/ English Name
Last school and major and degree?
Education:
Main Courses
Extra-curriculum (Social) Activities:
Hobbies?
English / Computer
organization skills, communications, team players, leading abilities, working habits, ……

34. Employment Tests
Aptitude, skills, abilities, and knowledge relevant to the job
Job-related and validated as an accurate predictor of job performance, to be nondiscriminatory

35. Interview The most widely used selection technique
Can probe more deeply into attitudes and motivation
A structured interview format, to be nondiscriminatory
Ask all candidates the same questions
All questions should be job-related
Avoid personal bias

36. Interviews attitudes: on time, attentiveness, active participation
group interview:
attitudes: on time, attentiveness, active participation
behavior: professional, value, character
skills and abilities: potential, ...
individual interview:
with different people: audience analysis
with detailed info: ability-responsibility match

37. Reference Check References
Used to verify information furnished by the applicant
about skills, abilities and achievements
about potentials and characters
about previous job responsibilities and the reason for leaving their previous job

38. Hiring offer: acceptance: sign and report to work
position, title, location, responsibilities, direct reports
salary, benefits
probationary period
acceptance: sign and report to work

39. 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

40. Training and Development:
Training & development
Performance planning & evaluation
Compensation & benefits
Training and Development:
Employee training
Management development

41. Employee Training
The process of teaching operations and technical employees how to do their present jobs more effectively and efficiently
Activities that provide learning situations in which an employee acquires additional knowledge or skills to increase job performance, or to foster job improvement

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

43. Program Design
Analysis of the needs of the organization for training and development
Is training needed?
What kind of training is needed?
Is motivation needed?
What kind of training is expensive; be sure it is appropriate.

44. Program Design
Determination of training and development methods by which to deliver the program
On-the-job
New employee learns by working under the supervision of experienced employee
Simulation
Training in an area that replicates the actual work environment without the production pressures
Classroom teaching and lectures
For large groups who need the same information (e.g., notification of change in benefits)
Conferences and seminars
Experts and learners meet to discuss problems and exchange ideas
Role playing
Acting out the roles of others in the organization for a better understanding of others

45. Program Design Job rotation Executive education programs Mentoring
Determination of training and development methods by which to deliver the program
Job rotation
Executive education programs
Mentoring
Special project assignments

46. Program Design
Creation of evaluation system to assess the program’s effectiveness
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

47. Performance planning & evaluation process:
Training & development
Performance planning & evaluation
Compensation & benefits
Performance planning & evaluation process:
Performance planning:
Setting standards & expectations
Employee job task behavior
Performance evaluation
Rewards & job changes

48. Performance Appraisal
Compares an employee’s actual performance with the expected performance
The evaluation of an employee’s current and potential levels of performance to allow managers to make objective human resource decisions

49. Uses of Performance Appraisal
Let workers know how they are doing and how they can do better
Provide the basis for
Compensation
Training needs
Advancement opportunities
Rewards
Help the organization monitor selection, training, and development activities

50. Common Evaluation Techniques
Objective methods
based on measurable quantity (e.g., units of output, sales volume, number of defective products, % change in performance).
Judgmental methods
Managerial estimates of employee performance levels
Ranking
Ordering employees from best to worst
Difficult to use because there is no absolute standard and differences in performance of ranked employees is not apparent
Rating
Using a predetermined scale (standard) to evaluate each employee’s performance

51. To Avoid 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

52. Performance Evaluation
360° Evaluation: performance feedback that combines self-appraisal with ratings made by coworkers at the same level, above, and below the target person in the managerial hierarchy
Advantages:
provides a well-rounded view
avoids individual bias
can have more impact than a single source
can establish consensus
Disadvantages:
time consuming

53. 360° Evaluation: Participants: Questions: Rating:
self, manager, colleague, direct reports
Questions:
impressions
most admired areas
need to stop, start, continue
Rating:
responsibility, trustworthiness, honesty, accountablility, ...
drive, passion, result-oriented, process-management, ...
people development, team building, communication, ...

56. Performance Feedback
Performance appraisal information should be provided to employees
Most often through a performance feedback interview
Tell and sell: Superior tells the employee how well or poorly the employee is performing and attempts to persuade the employee to accept the evaluation
Tell and listen: Supervisor tells the employee about his or her performance and then gives the employee a chance to respond
Problem-solving approach: Employee evaluates own performance and sets own goals; supervisor offers comments and goals are mutually established
Mixed interview
360-degree evaluation: Employee is provided feedback from evaluations by his superiors, peers, and subordinates

57. Effective employee reward systems must
Training & development
Performance planning & evaluation
Compensation & 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

58. How are employees compensated?
Direct pay
Hourly wage or monthly salary paid to an employee
May include bonuses and profit shares
Indirect pay
Various benefits and services
Required by law: unemployment and worker’s compensation, Social Security
Optional: paid vacations and holidays, pensions, health and other insurance products, employee wellness programs, college tuition reimbursement

59. Compensation Decisions
The payment employees receive in return for their labor
Compensation system
The policies and strategies that determine employee compensation
Wage level
The firm’s choice to position its general level of pay at, above, or below the market (prevailing wage) for an industry or a geographic area
Wage survey—a collection of data on prevailing wage rates within an industry or geographic area.

60. Compensation Decisions
Wage structure
The internal compensation structure that sets the relative pay levels for all the positions in the firm
Job evaluation—the process of determining the relative worth of the various jobs within the firm
Ranking jobs according to their value to the firm
Job analysis using a point system to value jobs
Individual wages
Decisions on specific wage payments to individual employees are based on
The wage range for the individual’s job
The individual’s proficiency, experience, and performance

61. Types of Compensation Hourly wage
The amount of money paid for each hour of work
Salary
The amount of money paid for an employee’s work during a set calendar period, regardless of the number of hours worked
Commissions
Payments based on a percentage of sales revenue
Incentive payment
A payment in addition to wages, salary, or commissions such as gainsharing for exceeding goals or quotas
Profit sharing
The distribution of a percentage of the firm’s profit among its employees to motivate them to work effectively by giving them a stake in the successof the company

62. Types of Benefits
Rewards in addition to regular compensation that are provided indirectly to the employee
Type of benefits
Pay for time not worked
Vacation time, holidays, and sick leave
Insurance packages
Health, life, and dental coverage
Pension and Retirement programs
Costs may be shared or fully paid by the employer
Required by law
Workers’ compensation, unemployment insurance, and Social Security
Flexible benefits plan
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

63. Types of Career Change:
Organizational career management
1. Job change within the organization
transfer
promotion
demotion
2. Separation from the organization
layoff
termination
resignation
retirement

64. job changes Promotions Transfers Layoffs Retirements
Upward move with more authority, responsibility and pay
Transfers
Horizontal move in the organization
Layoffs
Temporary separation arranged by the employer, usually when business is slow
Retirements
Permanent separation that ends one’s career

65. trends affecting HR management
Women comprise 45% of the American workforce
Growing numbers of dual-career couples
Companies are facing issues like sexual harassment and nonwork issues such as child and elder care
Workers change jobs 3 to 5 times during their career
Lessens loyalty between employer and employee
Workforce is becoming more diverse
Companies are offering diversity training and mentoring of minorities

66. Trends in Human Resources
1. Social change
More women in the work force
More people changing jobs
2. Demographics
More diverse work force
3. Advancing Technology
enables more outsourcing
enables more telecommuting
4. Global Competition
adaptable employees, need for language training & cultural orientation

67. Cultural Diversity in Human Resources
Differences among people in a workforce due to race, ethnicity, and gender
Advantages of diversity
Cost savings from properly managing and integrating diversity into the company
Attracting the best personnel
Marketing advantages due to a better understanding of different cultural groups
Improved creativity
Increased organizational flexibility in the placement of personnel
Fresh viewpoints for problem solving and decision making
Bilingual skills bring numerous benefits to the organization

68. Cultural Diversity in Human Resources (cont’d)
Coping with diversity challenges
Train and educate managers to respect and manage diversity
Recruit minority employees and train them to be managers
Train managers to view diversity positively
Teach English as a second language
Provide mentoring programs and facilitate support groups
Establish employee diversity groups
Have a strong commitment from upper management to diversity goals for the organization