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EXPLORING BUSINESS V. 2.1 By Karen Collins

CHAPTER 7 RECRUITING, MOTIVATING, AND KEEPING QUALITY EMPLOYEES

LEARNING OBJECTIVES Define human resource (HR) management and explain how managers develop a human resource plan Explain how companies train and develop employees, and discuss the importance of a diverse workforce Describe several theories of motivation Identify factors that make an organization a good place to work Explain performance evaluation and retention Explain unionization, its structure and the collective bargaining process

HUMAN RESOURCE MANAGEMENT Strategic Human Resource Planning: developing a plan for satisfying an organization’s HR needs. ALL ACTIONS THAT AN ORGANIZATION TAKES TO ATTRACT, DEVELOP, AND RETAIN QUALITY EMPLOYEES

HUMAN RESOURCES PROCESS STRATEGIC PLAN JOB ANALYSIS FORECAST RECRUITSELECTDEVELOP

JOB ANALYSIS Managers use information collected for the job analysis to prepare: –Job Description (duties & responsibilities) –Job Specification (qualifications: skills, knowledge, abilities) IDENTIFY THE TASKS, RESPONSIBILITIES AND SKILLS THAT IT ENTAILS, AS WELL AS THE KNOWLEDGE AND ABILITIES NEEDED TO PERFORM IT

FORECASTING HIRING AND FIRING NEEDS IDENTIFY THE HUMAN RESOURCES CURRENTLY AVAILABLE IN THE ORGANIZATION. FORECAST THE HUMAN RESOURCED NEEDED TO ACHIEVE THE ORGANIZATION’S MISSION AND OBJECTIVES. MEASURE THE GAP BETWEEN THE TWO.

HR SUPPLY AND DEMAND FORECASTING DEMAND > SUPPLYSUPPLY > DEMAND Hire more workers Employees work extra hours Subcontract or outsource work Introduce labor-saving initiatives Do not replace those who leave Encourage early retirement Layoff workers Fire workers

RECRUITING IDENTIFYING SUITABLE CANDIDATES AND ENCOURAGING THEM TO APPLY FOR OPENINGS

DISCRIMINATION Discrimination based on race, color, religion, sex, national origin, age or disability is illegal A PERSON IS TREATED UNFAIRLY ON THE BASIS OF A CHARACTERISTIC UNRELATED TO ABILITY

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Enforces: –Title VII of the Civil Rights Act of 1964 –Equal Pay Act of 1963 –Age Discrimination in Employment Act of 1964 –Title I & Title V of the Americans with Disabilities Act of 1990

SOURCES OF QUALIFIED CANDIDATES INTERNALEXTERNAL Bulletin Board Online career sites Newsletter Direct Recommendation Corporate Web Site Job Boards (Monster.com, etc.) Linkedin Facebook and Twitter Corporate Web Site Campus Recruiting Job Fairs Referrals, Internships, co-ops Classified Ads, Signs

SELECTION Selection process: –Application –Testing –Interview –Exam/Checks –Decision GATHERING INFORMATION ON CANDIDATES, EVALUATING THEIR QUALIFICATIONS, AND CHOOSING THE RIGHT ONE

CONTINGENT WORKERS Independent Contractors Consultants Freelancers On-Call Employees Temps HIRED TO SUPPLEMENT A COMPANY’S PERMANENT WORKFORCE

CONTINGENT WORKERS ADVANTAGESDISADVANTAGES Hired/Fired Easily More Control over Labor Costs Often Cheaper/No Benefits Specialized Skills/Talents “Try Out” Increased training costs Decreased loyalty to the company Lack of commitment can result in decreased productivity

DEVELOPING EMPLOYEES NEW EMPLOYEE ORIENTATION TRAINING AND DEVELOPMENT

NEW EMPLOYEE ORIENTATION ACTIVITIES INVOLVED IN INTRODUCING NEW EMPLOYEES TO THE ORGANIZATION AND THEIR JOBS

FEELINGS OF A NEW EMPLOYEE Nervous but Enthusiastic Eager to impress but not wanting too much attention Interested in learning but fearful of information overload Hoping to fit in but worried about looking inexperienced

ORIENTATION ERRORS No workspace assigned Ignore or fail to supervise Fail to introduce employee to co-workers No work assigned or given only “busy” work Swamp with company facts

TRAINING AND DEVELOPMENT Off-The-Job On-The-Job

DIVERSITY IN THE WORKPLACE GROUPTOTAL (%)MALE (%)FEMALE(%) All employees White African American1468 Hispanic or Latino1375 Asian533

MOTIVATION INTERNALLY GENERATED DRIVE TO ACHIEVE A GOAL OR FOLLOW A PARTICULAR COURSE OF ACTION

MASLOW’S HIERARCHY OF NEEDS

KEY ASPECTS OF MASLOW’S MODEL Satisfy lower-level needs before seeking to satisfy higher-level needs. Once a need is satisfied it no longer motivates; the next higher need takes its place.

HERZBERG’S TWO FACTOR THEORY HYGIENE FACTORSMOTIVATION FACTORS Quality of supervision Pay Company policy Physical working conditions Relations with others Job security Promotion opportunities Opportunities for personal growth Recognition Responsibility Achievement Not contributors to satisfaction, but must be present to prevent dissatisfaction. Strong contributors to job satisfaction.

VROOM’S EXPECTANCY THEORY Effort leads to performance leads to reward if the individual believes that this progression is attainable and the result is desirable. PROPOSES EMPLOYEES WILL WORK HARD TO EARN REWARDS THEY VALUE AND CONSIDER OBTAINABLE

VROOM’S EXPECTANCY THEORY

EQUITY THEORY Motivation theory that focuses on our perceptions of how fairly we’re treated relative to others. Employees analyze their job contributions and their rewards and create a contributions/ rewards ratio and compare it to those of other people. When individuals perceive that the ratio of their contributions to rewards is comparable to that of others: –They believe they’re being treated equitably. When they perceive that the ratio is out of balance: –They conclude they’re treated unfairly.

JOB REDESIGN Job Rotation: Systematically rotate from one job to another Job Enlargement: Add more tasks to a job Job Enrichment: Add tasks that increase responsibility and opportunities for growth

ALTERNATIVE WORK ARRANGEMENTS Flextime Compressed Workweeks Part-Time Work Job Sharing Telecommuting

FAMILY-FRIENDLY PROGRAMS Dependent Care Paid Parental Leave Caring For Yourself (aggregate days off – use as you want; employee assistance programs for personal problems; membership in health club). Unmarried…Without Children? (concierge services such as dry cleaners, travel agency, convenience store)

COMPENSATION AND BENEFITS Wages: Hourly rate times hours worked Salary: Paid for fulfilling responsibilities Piecework: Paid according to quantity produced Commission: Paid according to quantity sold

INCENTIVE PROGRAMS Bonus Plans: Annual income in addition to salary Profit-Sharing: Distribution of company profits Stock Option: Right to buy shares at set price on specified date

BENEFITS Legally Required –Social Security/Medicare –Unemployment Insurance –Workers’ Compensation Paid time off –Vacations –Holidays –Sick Leave Insurance –Health/Life –Disability Retirement

PERFORMANCE APPRAISAL SET GOALS AND PERFORMANCE EXPECTATIONS AND SPECIFY THE CRITERIA THAT WILL BE USED TO MEASURE PERFORMANCE. COMPLETE A WRITTEN EVALUATION THAT RATES PERFORMANCE ACCORDING TO THE STIPULATED CRITERIA. MEET WITH THE EMPLOYEE TO DISCUSS THE EVALUATION AND SUGGEST MEANS OF IMPROVING PERFORMANCE.

PERFORMANCE APPRAISAL Purpose: –Opportunity to discuss performance and set goals –Chance to identify and discuss appropriate training –Documentation for salary, promotion, demotion, or dismissal Feedback: –360-Degree: Employees (mostly managers) get feedback from all directions: supervisors, reporting subordinates, coworkers, customers. –Upward feedback: manager’s subordinates provide feedback.

HOW TO RETAIN EMPLOYEES Create Positive Work Environment: Employee-friendly workplace Recognize Contributions Involve In Decision Making

INVOLUNTARY TERMINATION Reasons for Termination –Downsizing to cut costs –Job is phased out –Poor performance Employment-at-Will –Both employee and employer can terminate the employment at any time. –Courts generally say employer should show just cause for termination.

LABOR UNION AN ORGANIZED GROUP OF WORKERS THAT BARGAINS WITH EMPLOYERS TO IMPROVE ITS MEMBERS’ PAY, JOB SECURITY, AND WORKING CONDITIONS

LABOR UNION DENSITY

UNION STRUCTURE LABOR FEDERATION NATIONAL UNION LOCAL UNION SHOP STEWARD

COLLECTIVE BARGAINING THE PROCESS OF SETTLING DIFFERENCES AND ESTABLISHING MUTUALLY AGREEABLE CONDITIONS UNDER WHICH EMPLOYEES WILL WORK

NEGOTIATION PROCESS NEGOTIATIONS MEDIATION (THIRD PARTY NON-BINDING AGREEMENT) ARBITRATION (THIRD PARTY BINDING AGREEMENT)

NEGOTIATION BREAKDOWN UNION TACTICS STRIKEPICKETBOYCOTT MANAGEMENT TACTICS LOCKOUT STRIKE BREAKERS