1. Attracting and Retaining
Chapter Nine
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.
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3. Learning Objectives (cont’d)
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.
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4. Chapter 9 Outline Human Resources Management: An Overview
HRM Activities
Responsibility for HRM
Human Resources Planning
Forecasting Human Resources Demand
Forecasting Human Resources Supply
Matching Supply with Demand
Cultural Diversity in Human Resources
Job Analysis
Recruiting, Selection, and Orientation
Recruiting
Selection
Orientation
Compensation and Benefits
Compensation Decisions
Comparable Worth
Types of Compensation
Employee Benefits
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5. Chapter 9 Outline (cont’d)
Training and Development
Analysis of Training Needs
Training and Development Methods
Evaluation of Training and Development
Performance Appraisal
Common Evaluation Techniques
Performance Feedback
The Legal Environment of HRM
National Labor Relations Act and Labor-Management Relations Act
Fair Labor Standards Act
Equal Pay Act
Civil Rights Act
Age Discrimination in Employment Act
Occupational Safety and Health Act
Employee Retirement Income Security Act
Affirmative Action
Americans with Disabilities Act
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9 | 5

6. HRM: An Overview Acquisition Human resources planning Job analysis
Recruiting
Selection
Orientation
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7. HRM: An Overview (cont’d)
Maintaining
Employee relations
Compensation
Benefits
Development
Training and development
Performance appraisal
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8. HRM: An Overview (cont’d)
Responsibility for HRM
Forecasting human resources demand
Factors affecting HR demand
HR staff determine both the number of employees needed and their qualifications
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9. Human Resources Planning (cont’d)
Forecasting human resources supply
Factors affecting HR supply
Supply forecasting techniques
Replacement chart
Skills inventory
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10. Human Resources Planning (cont’d)
Matching supply with demand
Layoffs
Attrition
Early retirement
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11. Cultural Diversity in Human Resources
Advantages of diversity
Coping with diversity challenges
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12. Job Analysis Job description Job specification
Used for recruiting, selecting, evaluation, and compensation decisions
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13. Recruiting External recruiting Sources Advantages Disadvantages
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14. Recruiting (cont’d) Internal recruiting Advantages Disadvantages
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15. Selection Employment applications Employment tests Interviews
References
Assessment centers
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16. 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
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17. Compensation and 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
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18. Compensation Decisions
Compensation system
Wage level
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19. Compensation Decisions (cont’d)
Wage structure
Job evaluation
Individual wages
Comparable worth
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20. Types of Compensation Hourly wage Salary Commissions Incentive payment
Lump-sum salary increases
Profit sharing
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21. Employee Benefits Type of benefits Flexible benefits plan
Pay for time not worked
Insurance packages
Pension and Retirement programs
Required by law
Flexible benefits plan
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22. Training and Development
Employee training
Management development
Development of a training program
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23. Analysis of Training Needs
Is training needed?
What kind of training is needed?
Is motivation needed?
Training is expensive; be sure it is appropriate.
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24. Training Development Methods
On-the-job
Simulation
Classroom teaching and lectures
Conferences and seminars
Role playing
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25. Evaluation of Training and Development
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
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26. Performance Appraisal
The evaluation of an employee’s current and potential levels of performance to allow managers to make objective human resource decisions
Uses of performance appraisal
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27. Common Evaluation Techniques
Objective methods
Judgmental methods
Managerial estimates of employee performance levels
Ranking
Rating
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28. Common Evaluation Techniques (cont’d)
Avoiding 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
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29. Performance Feedback
Most often through a performance feedback interview
Tell and sell
Tell and listen
Problem-solving approach
Mixed interview
360-degree evaluation
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30. The Legal Environment of HRM
National Labor Relations Act and Labor-Management Relations Act (1935)
Fair Labor Standards Act (1938)
Equal Pay Act (1963)
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31. The Legal Environment of HRM (cont’d)
Title VII of the Civil Right Act (1964)
Occupational Safety and Health Act (1970)
Employment Retirement Income Security Act (1974)
Affirmative Action
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32. The Legal Environment of HRM (cont’d)
Americans with Disabilities Act (ADA) (1990)
Age Discrimination in Employment Act (1967/1986)
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