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Human Resource Management: Finding and Keeping the Best Employees
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HR Challenges Shortages Unskilled Workers Undereducated Workers
Shift in Workforce Composition Laws & Regulations Single-Parent & Two-Income Families Attitudes Toward Work Continued Downsizing Overseas Labor Pools Customized Benefits Employees With New Concerns Decreased Loyalty See Learning Goal 1: Explain the importance of human resource management, and describe current issues in managing human resources. See text pages:
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Determining HR Needs Prepare HR Inventory Prepare Job Analysis
Job Description Job Specification Assess HR Demand Assess HR Supply Establish Strategic Plan See Learning Goal 2: Summarize the five steps in human resource planning. See text pages:
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Hiring Process Recruit Select Train/Develop Application Form Interview
Test Investigate Examine Probation Train/Develop Orientation OJT Apprenticeship Off-The-Job Training Online Training Vestibule Training Job Simulation See Learning Goal 3: Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging. See Learning Goal 4: Outline the six steps in selecting employees. See Learning Goal 5: Illustrate the use of various types of employee training and development methods. See text pages:
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HR Executives’ Recruiting Preferences
Also available on a Transparency Acetate See Learning Goal 3: Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging. HR Executives’ Recruiting Preferences This slide presents the HR executives’ recruiting preferences based on the 2005 Emerging Workforce Study of 502 senior HR executives conducted by Harris Interactive. About 58% of the HR executives indicated they find their best candidates through referrals. Staffing/recruiting agencies, temp-to-hire engagements, and professional associations were the least preferred methods. Ask the students: How have you obtained jobs in the past? Was it simply walk-in and fill out the applications or classified ads or through knowing someone in the company? (Source: USA Today) Note: Multiple responses allowed Source: USA Today
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Applicants’ Mistakes Also available on a Transparency Acetate
See Learning Goal 4: Outline the six steps in selecting employees. Applicants’ Mistakes This slide presents the job application areas where the applicants make the most mistakes. The results are based on the survey of over 1,400 CFOs of US companies with 20 or more employees. The top two areas where applicants make the most mistakes are interviews and resumes. Ask the students: What are your experiences with interviews or resume errors? How many of you follow-up after an interview? (Source: USA Today) Source: USA Today
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Interviewing Mistakes
Also available on a Transparency Acetate See Learning Goal 4: Outline the six steps in selecting employees. Interviewing Mistakes This slide illustrates the most common mistakes a person makes when interviewing for a job. Over 70% of the mistakes people make when interviewing occur because they are not properly prepared. Forty-nine percent have little or no knowledge of the company. In today’s age of information accessibility, no individual should make this mistake. Make sure the students avoid the following mistakes so that they are far more likely to find themselves in the job-search finals: Do not arrive late for the interview -- Getting to the office at 3:30 for a 4:00 appointment is good. Dressing wrong – The safest choice for any interview is a tailored suit in a conservative color like navy, gray, or tan. Do not smoke – In a Seattle University study, up to 90 percent of all executives surveyed said they’d hire a nonsmoker over a smoker if their qualifications were equal. Smoking on an interview makes you look nervous. Drinking on lunch or dinner interview – Avoid ordering cocktails, it’s better to stick to water. You need to be alert for this experience. Bad-mouthing your boss – Never say anything negative about a person or company you worked for in the past. It brands you a complainer. Source: USA Today
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Number Interviewed to Find Quality Hire
Also available on a Transparency Acetate See Learning Goal 4: Outline the six steps in selecting employees. Number Interviewed to Find Quality Hire This slide presents the data from the Development Dimensions International Selection Forecast of HR Professionals. About 42.5% of the respondents indicated that they must interview 4 to 6 individuals to find a quality hire. Approximately 13% of the respondents indicated interviewing more than 10 to find a quality hire. Ask the students: Why do companies interview so many candidates? What are the advantages and disadvantages of conducting so many interviews? (One obvious one is that the managers are looking for the right candidate with right skills and right fit. However, the costs also increases as you interview more candidates. Yet, organizations go through this labor to find the right match because in the long run, the right candidate will cost a lot less then a wrong individual.) Ask the students: Would you accept the first job you interviewed for or look for a better job or a better fit? (The organizations do the same.) (Source: USA Today, January 24, 2005) Source: USA Today, January 24, 2005
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Important Factors When Phrasing Interview Questions
Language Relevance Information Level Complexity Information Accessibility Also available on a Transparency Acetate See Learning Goal 4: Outline the six steps in selecting employees. Important Factors When Phrasing Interview Questions This slide presents five factors that can help or hinder the information interview process. Language – use words that interviewees can understand. Be specific, precise, and concrete. Relevance – Every question should be asked with the interview’s purpose in mind. Information level – Ask only the questions that interviewee has the information about. Complexity – Do not muddy the issue with multiple questions at a time. Phrase questions so that they are simple, clear requests for information. Information accessibility – Interviewer should watch out for the situational, social, and psychological constraints that may inhibit the interviewees from providing the relevant information. (Source: University of Central Arkansas) Source: University of Central Arkansas
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Training & Development
Assess Needs Design Training Evaluate Effectiveness See Learning Goal 5: Illustrate the use of various types of employee training and development methods. See text page: 297
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Training Methods Employee Orientation On-The-Job Apprenticeship
Off-The-Job Online Vestibule Job Simulation See Learning Goal 5: Illustrate the use of various types of employee training and development methods. See text pages:
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Management Development
On-The-Job Coaching Understudy Job Rotation Off-The-Job Courses & Training See Learning Goal 5: Illustrate the use of various types of employee training and development methods. See text pages: 299
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Performance Appraisal
Establish Standards Communicate Standards Evaluate Performance Discuss Results Take Corrective Action Use Results to Make Decisions See Learning Goal 6: Trace the six steps in appraising employee performance. See text pages: 301
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Employee Retention Compensation Flextime Fringe Benefits
Individual Team Fringe Benefits Job-Sharing Flextime Core Time Compressed Workweek Home-Based & Mobile Work See Learning Goal 7: Summarize the objectives of employee compensation programs, and describe various pay systems and fringe benefits. See Learning Goal 8: Explain scheduling plans managers use to adjust to workers’ needs. See text pages:
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Compensation & Benefits Program Objectives
Attract the right people Employee incentives Retain valued employees Maintain competitiveness Financial security for employees See Learning Goal 7: Summarize the objectives of employee compensation programs, and describe various pay systems and fringe benefits. See text pages: 302
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Pay Systems Salary Hourly wage and daywork Piecework system
Commission plans Bonus plans Profit-sharing plans Gain-sharing plans Stock options See Learning Goal 7: Summarize the objectives of employee compensation programs, and describe various pay systems and fringe benefits. See text pages: 303
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Vacation Days Per Year Also available on a Transparency Acetate
See Learning Goal 7: Summarize the objectives of employee compensation programs, and describe various pay systems and fringe benefits. See text page: 305 Vacation Days Per Year This slide presents a comparison of number of vacation days per year in different countries. Italy leads the race with 42 vacation days per year where as the U.S. comes in last with just 13 days. Even though the U.S. comes in last with only 13 days, an interesting fact to share with the students is that most American don’t even use these 13 days. Ask the students: What impact does this benefit of number of days have on recruiting at an international level? (Most should be able to identify that domestically, it may not have much of an impact. However internationally, potential candidates would be comparing between different countries. Especially if they are from one of the ones that offer much higher number of vacation days, such as Italy, France, or Germany. This may have an impact on ability of an organization to recruit.)
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Scheduling To Meet Employee Needs
Flextime Plans Home-Based & Other Mobile Work Job-Sharing Plans See Learning Goal 8: Explain scheduling plans managers use to adjust to workers’ needs. See text pages:
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Number of Hours Americans Work Per Week
Also available on a Transparency Acetate See Learning Goal 8: Explain scheduling plans managers use to adjust to workers’ needs. Number of Hours Americans Work per Week This acetate illustrates the number of hours on the job the typical employee puts in during the average work week. Despite significant breakthroughs in technological advances, 62% of all workers still work hours per week. 80% of all employees will work 40 hours or more per week. Share with the class some interesting comparisons of the U.S. work week and other countries: U.S. workers put in the longest hours among industrialized nations, over 2000 hours per capita, and steadily rising. In contrast, Japan has seen a 10.9% decline in hours worked per week since 1980. Canadian workers also saw their work schedules decline by 3.9% since 1990. In Germany, the annual working hours amounted to just under 1560 per year, or 22% less than a U.S. worker. The difference amounts to over 8.8 hours per week. (Source: USA Today) Source: USA Today
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Telecommuting: Affect on Career
Also available on a Transparency Acetate See Learning Goal 8: Explain scheduling plans managers use to adjust to workers’ needs. Telecommuting: Affect on Career This slide presents the HR executives’ perspectives on whether the use of telecommuting helps or hurts an employees’ career. The survey was part of the 2005 Emerging Workforce Study, a survey of 502 senior HR executives. HR executives are about split on this issue. About 30% of the executives feel that telecommuting helps an individual’s career, whereas 25% believes it hurts. Ask the students: How many of you would like to use the telecommuting option or virtual workplace programs, if offered by the organization? How do you see it affecting your career? (Some may identify the benefits such as greater productivity, not fighting the traffic, time saved, etc. But it comes with the costs as well: loneliness, limited team interaction, possible oversight in organizational assignments, etc.) (Source: USA Today) Source: USA Today
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Benefits of Job-Sharing
Opportunities for wanting to work only part-time High level of enthusiasm and productivity Reduced absenteeism and tardiness Ability to schedule in peak demand period Retention of experienced workers See Learning Goal 8: Explain scheduling plans managers use to adjust to workers’ needs. See text pages: 309
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How Employers Are Becoming Flexible
Also available on a Transparency Acetate See Learning Goal 8: Explain scheduling plans managers use to adjust to workers’ needs. How Employers Are Becoming Flexible This slide presents results from a survey of more than 10,000 small businesses. It suggests that employer flexibility influences employee retention. About 79% of businesses allow employees to schedule their own vacations. Ask the students: Which of these issue are important for you in the workplace? How would you want your employer to be flexible? Source: insala.com, April 2005
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Benefits of Providing Flexibility
Also available on a Transparency Acetate See Learning Goal 8: Explain scheduling plans managers use to adjust to workers’ needs. Benefits of Providing Flexibility This slide presents results from a survey of more than 10,000 small businesses. It suggests that employer flexibility influences employee retention. This slide complements the previous slide on how employers are being flexible. Most common benefits include better relations with workers (77% of businesses reporting), higher employee job satisfaction (64% of businesses reporting), and higher employee retention (61% of businesses reporting). Source: Insala.com, April 2005
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Why is Retention Important?
Employee turnover could cost up to 40% of a company’s annual profits The average company loses $1 million with the loss of every ten managerial employees Turnover costs are 50%-100% of the ex-employees’ annual salary Also available on a Transparency Acetate See Learning Goal 8: Explain scheduling plans managers use to adjust to workers’ needs. Why Is Retention Important? This slide presents some of the reasons why retention is so important. It translates directly into the bottom line of the organization. The higher the turnover, the higher the costs for recruiting, selecting, training and development, etc. Ask the students: What are other reasons for the importance of retention? (Some other reasons may be morale of the workers, ability to recruit, reputation and image of the company, etc.) Ask the students: Would you like to work at a place which feels like a revolving door? Source: insala,com, April 2005
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Top 10 Reasons Employees Stay On Their Job
Credit Union Membership Health Benefits Salary Good Coworkers Office Hours Childcare Vacation Time Sick Leave Distance from Home Popular Company See Learning Goal 8: Explain scheduling plans managers use to adjust to workers’ needs. Top 10 Reasons Employees Stay On Their Job This slide presents the top ten reasons employees stay on the job. With the rising healthcare costs, health benefits usually comes in first closely followed by salary. An interesting exercise before you show this slide to the students: Ask them to identify what would be their top five reasons for staying at a company? Then compare their lists to see how many match with the list here. Source: Creditunionrate.com, accessed July 13, 2006
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Employee Movement Promotion/Reassignment Termination Retirement
Resignation See Learning Goal 9: Describe the ways employees can move through a company promotion, reassignment, termination, and retirement. See text pages:
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HR Laws Civil Rights Act (1964) Age Discrimination Act (1967)
Equal Employment Opportunity Act (1972) Affirmative Action Reverse Discrimination Civil Rights Act (1991) Americans with Disabilities Act (1990) Social Security Act (1935) Occupational Safety and Health Act (1970) Employment Retirement Income Security Act (1974) See Learning Goal 10: Illustrate the effects of legislation on human resource management. See text pages:
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Implementing EEOC Which statements are T/F?
It’s OK to ask any applicant whether he or she has an automobile. It appropriate to ask applicants to attach photographs. During interviews, it’s not appropriate to ask an applicant his/her age. It’s appropriate to ask if an applicant is a naturalized citizen. It’s not appropriate to ask an applicant about past work experience. Also available on a Transparency Acetate See Learning Goal 10: Illustrate the effects of legislation on human resource management. Implementing EEOC. Which statements are T/F? The importance of understanding Equal Employment Law is emphasized in this acetate. EEOC enforces federal legislation prohibiting discrimination in employment to ensure equality of opportunity. The short quiz highlights some of the particulars involved that most people never consider: FALSE – This is irrelevant unless the job requires working in one’s car. FALSE – This is considered inappropriate to protect applicants from possible recruiter bias. TRUE – This would be a violation of the Age Discrimination in Employment Act of 1967 (unless age is a condition of employment such as, the need to be 21 to bartend). FALSE – This is considered non-essential in measuring potential job performance and could lead to possible recruiter bias. FALSE – You can and should ask about an applicant’s past work experience.
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Implementing EEOC Which statements are T/F?
You may ask an applicant to indicate what foreign languages he/she can read, write or speak fluently. It’s appropriate to ask an applicant if he/she has an arrest record. It’s OK to ask whether the applicant is physically able to lift heavy weights. It’s appropriate to ask women questions about their children. You have the right to ask an applicant for names of work-related and personal references. Also available on a Transparency Acetate See Learning Goal 10: Illustrate the effects of legislation on human resource management. Implementing EEOC. Which Statements are T/F? (cont’d) TRUE – You can ask this question only if language fluency is required in the job. FALSE – You should not inquire about arrests since they do not imply convictions or guilt. (You can ask if they have any convictions). TRUE – This should be asked only if the job requires such lifting. FALSE – Questions about children should be limited to dependent information on insurance and tax forms. TRUE – You can ask for the information but cannot ask any question from the references that could be construed as discriminatory.
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