Attracting and Retaining Chapter Nine Attracting and Retaining the Best Employees

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. Copyright © Cengage Learning. All rights reserved

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. Copyright © Cengage Learning. All rights reserved

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 Copyright © Cengage Learning. All rights reserved 9 | 4

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 Copyright © Cengage Learning. All rights reserved 9 | 5

HRM: An Overview Acquisition Human resources planning Job analysis Recruiting Selection Orientation Copyright © Cengage Learning. All rights reserved

HRM: An Overview (cont’d) Maintaining Employee relations Compensation Benefits Development Training and development Performance appraisal Copyright © Cengage Learning. All rights reserved

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 Copyright © Cengage Learning. All rights reserved

Human Resources Planning (cont’d) Forecasting human resources supply Factors affecting HR supply Supply forecasting techniques Replacement chart Skills inventory Copyright © Cengage Learning. All rights reserved

Human Resources Planning (cont’d) Matching supply with demand Layoffs Attrition Early retirement Copyright © Cengage Learning. All rights reserved

Cultural Diversity in Human Resources Advantages of diversity Coping with diversity challenges Copyright © Cengage Learning. All rights reserved

Job Analysis Job description Job specification Used for recruiting, selecting, evaluation, and compensation decisions Copyright © Cengage Learning. All rights reserved

Recruiting External recruiting Sources Advantages Disadvantages Copyright © Cengage Learning. All rights reserved

Recruiting (cont’d) Internal recruiting Advantages Disadvantages Copyright © Cengage Learning. All rights reserved

Selection Employment applications Employment tests Interviews References Assessment centers Copyright © Cengage Learning. All rights reserved

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 Copyright © Cengage Learning. All rights reserved

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 Copyright © Cengage Learning. All rights reserved

Compensation Decisions Compensation system Wage level Copyright © Cengage Learning. All rights reserved

Compensation Decisions (cont’d) Wage structure Job evaluation Individual wages Comparable worth Copyright © Cengage Learning. All rights reserved

Types of Compensation Hourly wage Salary Commissions Incentive payment Lump-sum salary increases Profit sharing Copyright © Cengage Learning. All rights reserved

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 Copyright © Cengage Learning. All rights reserved

Training and Development Employee training Management development Development of a training program Copyright © Cengage Learning. All rights reserved

Analysis of Training Needs Is training needed? What kind of training is needed? Is motivation needed? Training is expensive; be sure it is appropriate. Copyright © Cengage Learning. All rights reserved

Training Development Methods On-the-job Simulation Classroom teaching and lectures Conferences and seminars Role playing Copyright © Cengage Learning. All rights reserved

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 Copyright © Cengage Learning. All rights reserved

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 Copyright © Cengage Learning. All rights reserved

Common Evaluation Techniques Objective methods Judgmental methods Managerial estimates of employee performance levels Ranking Rating Copyright © Cengage Learning. All rights reserved

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 Copyright © Cengage Learning. All rights reserved

Performance Feedback Most often through a performance feedback interview Tell and sell Tell and listen Problem-solving approach Mixed interview 360-degree evaluation Copyright © Cengage Learning. All rights reserved

The Legal Environment of HRM National Labor Relations Act and Labor-Management Relations Act (1935) Fair Labor Standards Act (1938) Equal Pay Act (1963) Copyright © Cengage Learning. All rights reserved

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 Copyright © Cengage Learning. All rights reserved

The Legal Environment of HRM (cont’d) Americans with Disabilities Act (ADA) (1990) Age Discrimination in Employment Act (1967/1986) Copyright © Cengage Learning. All rights reserved