Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 Attracting and Retaining the Best Employees

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Human Resources Management (HRM) 9 2 All the activities involved in acquiring, maintaining, and developing an organization’s human resources © VIOREL SIMA/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM Activities: An Overview 9 3 HRM Activities AcquiringMaintainingDeveloping

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM Activities: Acquiring 9 4 Planning Job Analysis Recruiting Selection Orientation

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning 9 5 The development of strategies to meet a firm’s future human resources needs © IOFOTO/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning 9 6 Match Supply With Demand Forecast Human Resources Supply Forecast Human Resources Demand Forecast Human Resources Demand

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning: Forecasting Human Resources Demand What are the major internal and external factors you see affecting the demand for human resources in organizations? Can organizations affect or control these factors? 9 7

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning: Forecasting Human Resources Supply Two useful techniques for forecasting human resources supply:  Replacement chart: a list of key personnel and their possible replacements within a firm.  Skills inventory: a computerized data bank containing information on the skills and experience of all present employees 9 8

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Planning: Matching Supply with Demand If supply is greater than demand, then the firm must prepare plans to reduce the workforce through 9 LayoffsAttritionEarly retirementFiring

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cultural Diversity in Human Resources Differences among people in a workforce owing to race, ethnicity, and gender 9 10 © KURHAN/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Coping with Diversity Challenges 9 11 Train managers to value diversity Facilitate support groups for immigrants Recruit minority employees and train them to be managers Teach English as a second language © YURI ARCURS/SHUTTERSTOCK © C.W.GRIFFIN / MCT / LANDOV

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Job Analysis A systematic procedure for studying jobs to determine their various elements and requirements 9 12 A list of the elements that make up a particular job Duties, responsibilities, working conditions, the tools and equipment used on the job Job description A list of the qualifications required to perform a particular job Skills, abilities, education, and experience Job specification

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruiting, Selection, and Orientation Recruiting  The process of attracting qualified job applicants 9 13 © LIGHTSPRING/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. External Recruiting 9 14 Advantage  Brings fresh perspectives to the company Disadvantages  May be expensive  May cause resentment among existing employees © IMAGE SOURCE / ALAMY

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Internal Recruiting Advantages  Motivates current employees  Helps retain quality personnel Disadvantages  Cost of filling the vacant position  Cost of training another employee 9 15 © YURI ARCURS/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruiting, Selection, and Orientation 9 16 Selection  The process of gathering information about applicants and then using that information to choose the most appropriate applicant © NEVENA RADONIA/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selection Means of obtaining information about applicants’ qualifications 9 17 Employment Applications Employment Tests Interviews References Assessment Centers

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruiting, Selection, and Orientation Orientation  The process of acquainting new employees with an organization  May be brief and informal or long and formal 9 18 © NEVENA RADONJA/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM Activities: Maintaining 9 19 Employee Relations Compensation Benefits

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compensation Compensation  The payment employees receive in return for their labor Compensation system  The policies and strategies that determine employee compensation 9 20 © ARKA38/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Designing an effective Compensation System 9 21 Wage level The firm’s choice to position its general level of pay at, above, or below the market wage for an industry or a geographic area Wage structure The internal compensation structure that sets the relative pay levels for all the positions in the firm Individual wages The specific payments individual employees receive  Designing an effective compensation system requires three separate management decisions

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compensation Comparable worth  A concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills 9 22 © NEVENA RADONIA/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Compensation 9 23 Lump-sum salary increases Profit sharing Commissions Incentive payments Hourly wage Weekly or monthly salary

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Employee Benefits Rewards in addition to regular compensation that are provided indirectly to employees 9 24 Health, life, and dental insurance Pension and retirement programs Workers’ compensation insurance Unemployment insurance Tuition-reimbursement plans Child-care services Company cafeterias Stock-option plans Other unusual benefits Pay for time not worked

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Flexible Benefit Plans A 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 9 25 AdvantagesDisadvantages Allow companies to meet diverse employee needs Can help companies contain costs in the long run Help the organization be perceived as employee-friendly High costs to administer the plans

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM Activities: Training and Development Employee training Teaching operations employees how to do their present jobs more effectively and efficiently Management development Preparing managers to assume increased responsibility in both present and future positions 9 26

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Training and Development Methods On-the-jobSimulation Classroom teaching and lectures Conferences and seminars Role-playing 9 27

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Appraisal 9 28 Uses  Lets workers know how they are doing and how they can do better  Provides the basis for distributing rewards  Helps the organization monitor employee selection, training, and development activities © MICHAL KWALSKI/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Feedback Approaches 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 Employee evaluates own performance and sets own goals; supervisor offers comments and goals are mutually established Mixed interview Tell-and-sell to communicate administrative decisions; problem-solving to discuss employee- development issues and future goals 360-degree evaluation Employee is provided feedback from evaluations by his superiors, peers, and subordinates 9 29

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Legal Environment of HRM National Labor Relations Act and Labor- Management Relations Act (1935)  Established a collective-bargaining process in labor-management relations as well as the National Labor Relations Board (NLRB) Labor-Management Relations Act (1947)  Provides a balance between union power and management power 9 30 © NEVENA RADONIA/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Legal Environment of HRM Fair Labor Standards Act (1938)  Established a minimum wage and an overtime pay rate for employees working more than forty hours per week  Exemptions: Managers and professionals 9 31 © NEVENA RADONIA/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Legal Environment of HRM Equal Pay Act (1963)  Specifies that men and women who do equal jobs must be paid the same wage; differences only legal if due to seniority, qualifications, or performance 9 32 © KEKO-KA/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Legal Environment of HRM Title VII of the Civil Rights Act (1964)  Prohibits discrimination in employment practices based on sex, race, color, religion, or national origin Age Discrimination in Employment Act ( )  Prohibits personnel practices that discriminate against people aged 40 and older 9 33

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Legal Environment of HRM Occupational Safety and Health Act (1970)  Regulates the degree to which employees can be exposed to hazardous substances and specifies the safety equipment that the employer must provide Worker Adjustment and Retraining Notification (WARN) Act (1988)  Requires employers to give employees sixty days’ notice regarding plant closure or the layoff of fifty or more employees 9 34

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Legal Environment of HRM Employment Retirement Income Security Act (1974)  Regulates company retirement programs and provides a federal insurance program for retirement plans that go bankrupt 9 35 © KURHAN/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Legal Environment of HRM Civil Rights Act (1991)  Facilitates employees’ suing employers for sexual discrimination and collecting punitive damages Americans with Disabilities Act (1990)  Prohibits discrimination against qualified individuals with disabilities  Requires employers to provide employees with reasonable accommodation 9 36

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reasonable Accommodation  Any modification or adjustment to a job or work environment to enable a qualified, disabled employee to perform a central job function 9 37 How, do you think, do employers decide what constitutes a reasonable accommodation for a disabled employee? © AUREMAR/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Legal Environment of HRM 9 38 Family and Medical Leave Act (1993)  Requires an organization with 50 or more employees to provide up to 12 weeks of leave without pay on the birth (or adoption) of an employee’s child or if an employee or his or her spouse, child, or parent is seriously ill. © NEVENA RADONIA/SHUTTERSTOCK

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Legal Environment of HRM 9 39 Affordable Care Act (2010)  Requires an organization with fifty or more employees to make health insurance available to employees or pay an assessment, gives employees the right to buy health insurance from another provider

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Affirmative Action  A series of executive orders issued by the President of the US  Applies to all employers with fifty or more employees holding federal contracts in excess of $50,000  Such employers must Actively encourage job applications from members of minority groups Hire qualified employees from minority groups not fully represented in the organization 9 40

Copyright ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CLASS EXERCISE Discuss the contrasting viewpoints on affirmative action policies expressed in the following articles:  “Affirmative Action vs. White Privilege” at  vs-white-privilege-119#axzz2Kano5YXj vs-white-privilege-119#axzz2Kano5YXj  “Race and College Admissions, Facing a New Test by Justices” at to-hear-case-on-affirmative- action.html?pagewanted=all&_r=1& to-hear-case-on-affirmative- action.html?pagewanted=all&_r=1&  “Affirmative action: Good or harmful?” at inamerica.blogs.cnn.com/2012/10/10/affirmative- action-good-or-harmful/ inamerica.blogs.cnn.com/2012/10/10/affirmative- action-good-or-harmful/ 9 41