1. Chapter-09 Attracting and Retaining the Best Employees
Dr. Gehan Shanmuganathan, (DBA)

2. “Wegmans” has “a propensity to serve”

3. “Wegmans” has “a propensity to serve”
Recognized as one of the best employers in the USA
Wegmans started as small fruit-and-vegetable store in 1916 in Rochester, New York
Currently has a total workforce of 37,000 and expects to have 60,000 employees by 2020
Employees are more than statistics for Wegmans and considers as a vital competitive advantage
They believing in business possibilities of diversity
More than 4000 of its employees have been with the firm for 15 years
They provide training to be successful, respect abilities, challenging them to do their best and giving them power to satisfy customers

4. Learning Objectives

5. 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.

6. 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 and development
Discuss performance appraisal techniques and performance feedback.
Outline the major legislation affecting human resources management.

7. An Overview

8. An Overview Acquisition Maintenance Development Difference
Human resource – focuses on opportunity cost
Personnel management – focuses on cost

9. Human resources management

10. Human resources management
All the activities involved in acquiring, maintaining, and developing an organization’s human resources (to achieve competitive advantage)

11. HRM: An Overview

12. Acquisition HRM: An Overview
Human resources planning- determining future human resource needs (relationship to corporate strategic planning)
Job analysis- determining exact nature of the position
Recruiting- attracting potential candidates
Selection- choosing and hiring most qualified applicant
Orientation- acquiring new employees with the firm

13. HRM: An Overview (cont’d)
Maintaining
Employee relations – increasing employee job satisfaction
Compensation- rewarding employee effort through monitory payments
Benefits- providing rewards to ensure employee well-being
Development
Training and development- teaching new skills and new jobs to do the present job effectively and future leadership
Performance appraisal- assessing employees’ current and potential performance levels

14. HRM: An Overview (cont’d)
Responsibility for HRM
Forecasting human resources demand
Factors affecting HR demand- new business ventures, new products, project expansions, product line expansion
HR staff determine both the number of employees needed and their qualifications

15. Human Resources Planning

16. Human Resources Planning
The development of strategies to meet a firm’s future human resources needs

17. Demand and supply

18. Human Resources planning- demand
Total number of employees need by an organization to fulfill its organizational human resources capacity in a given period of time
New products introduced
New factory facilities
New distribution center

19. Human Resources planning -Supply
Forecasting human resources supply
Factors affecting HR supply- internal and external
Supply forecasting techniques
Replacement chart- 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

20. Forecasting Human Resources Demand

21. Human Resources Planning (cont’d)
Matching supply with demand
Layoffs
Attrition – is the normal reduction in the workforce that occurs when employees leave a firm
Early retirement

22. Cultural Diversity in Human Resources

23. Cultural (workplace) Diversity
Differences among people in a workforce owing to race, ethnicity, and gender

24. Cultural Diversity in Human Resources
Advantages of diversity- Competitive advantage
Customization of marketing programs
High efficiency level
Bilingual skills
Effective problem solving
Increase corporate image (social responsibility)
Creativity
Coping with diversity challenges
Training managers to manage diverse staff
Recruiting minority programs
Congruence and cohesiveness management

25. Job Analysis

26. Job Analysis
A systematic procedure for studying jobs to determine their various elements and requirements

27. Job Analysis
Job description- list of the elements that make up a particular job
Job specification- a list of the qualifications required to perform a particular job
Used for recruiting, selecting, evaluation, and compensation decisions

28. Recruiting

29. Recruiting External recruiting
Sources- news paper, colleges, agencies, and internet
Advantages – professional
Disadvantages- expensive

30. Internal recruiting Recruiting (cont’d)
Advantages- low cost, accessibility, employee motivation
Disadvantages- double task

31. Selection

32. Selection Employment applications Employment tests Interviews
References
Assessment centers

33. Orientation

34. 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

35. Compensation and Benefits

36. 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

37. Compensation Decisions
Compensation- the payment employees receive in return for their labor
Compensation system- the policies and strategies that determine employee compensation
Wage level- going rates in the industry

38. Compensation Decisions (cont’d)
Wage structure- pay levels for all the positions within the organization
Job evaluation- the process of determining the relative worth of the various jobs within a firm
Individual wages- specific payments individual employees will receive must be determine
Comparable worth- a concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills

39. Types of Compensation Hourly wage Salary Commissions Incentive payment
Lump-sum salary increases
Profit sharing

40. Employee Benefits Type of benefits Pension and Retirement programs
Pay for time not worked
Insurance packages
Pension and Retirement programs
Required by law
Flexible benefits plan- predetermined amount paid

41. Training and Development

42. Training and Development
Employee training- the process of teaching operations and technical employees how to do their present job effectively
Management development- the process of preparing managers and other professionals to assume increased responsibilities in both present and future positions
Development of a training program- identify the training needs, develop the training programs

43. Analysis of Training Needs
Is training needed?
What kind of training is needed?
Is motivation needed?
Training is expensive; be sure it is appropriate.

44. Training Development Methods
On-the-job
Simulation
Classroom teaching and lectures
Conferences and seminars
Role playing

45. 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

46. Performance Appraisal

47. 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
Workers know how well they are doing
How they could be better
To use to design reward methods
For training and development purposes

48. Common Evaluation Techniques
Objective methods- sales targets, defects levels
Judgmental methods
Managerial estimates of employee performance levels
Ranking
Rating

49. 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

50. Performance Feedback
Most often through a performance feedback interview
Tell and sell
Tell and listen
Problem-solving approach
Mixed interview
360-degree evaluation

51. The Legal Environment of HRM

52. The Legal Environment of HRM
National Labor Relations Act and Labor-Management Relations Act (1935)
Fair Labor Standards Act (1938)
Equal Pay Act (1963)

53. 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)

54. The Legal Environment of HRM (cont’d)
Americans with Disabilities Act (ADA) (1990)
Age Discrimination in Employment Act (1967/1986)

55. Write five key things (areas) that you can critically remember in today’s discussion

56. What we discussed today..

57. 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.

58. 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.

59. Weekly Assignment-09
Discuss the importance of human resources as one of the factors of production to achieve business objectives.