Managing Human Resources Chapters 13 Attracting and Retaining the Best Employees.

Managing Human ResourcesManaging Human ResourcesManaging Human ResourcesManaging Human Resources

Chapters 13 Attracting and Retaining

the Best Employees

Human Resource ManagementHuman Resource Management

• The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals

• All the activities involved in acquiring, maintaining, and developing an organization’s human resources

Before Recruiting

• Human resources planning– Determining the firm’s human resource needs

• Job analysis– Determining the exact nature of the positions to be

filled

Acquisition

• Recruiting– Attracting people to apply for positions in

the firm• Selection

– Choosing and hiring the most qualified applicants

• Orientation– Acquainting new employees with the

firm

Maintaining• Employee relations

– Increasing employee job satisfaction through satisfaction surveys, communication programs, exit interviews, and fair treatment

• Compensation– Rewarding employee effort through monetary

payments• Benefits

– Providing rewards to ensure employee well-being

Development

• Training and development– Teaching employees new skills for

more effective ways to do their present jobs and new jobs in the future

• Performance appraisal– Assessing employees’ current and

potential performance levels

Human Resource Management:

• HR planning and Job analysis • Acquiring: Employee recruitment and

selection• Retainning and developing: Employee

training, performance appraisal, and compensation

• Career managment• Employment termination

Human Resource Management Human Resource Management ProcessProcessStrategies &

objectives of the organization

Training & development

Performance planning & evaluation

Compensation & benefits

Organizational career management

HR planning & forecasting

Job analysis & design

Employee recruitment

Employee selection

Acquiring

retainning

• HR planning:HR planning:The development of strategies to meet a

firm’s future human resources needs– Demand forecast:Demand forecast:

Determining the number of employees needed by some future time– Supply forecast (internal):Supply forecast (internal):

Estimating the number of current employees who will be available to fill various jobs at some future time




Employee selection

Forecasting HR Demand

• Demand forecasts based on organizational goal and structure

• Factors affecting HR demand– The firm’s overall strategic plan– The firm’s past history of staffing levels– Evolving technologies– Industry staffing practices– Projected economic trends

Forecasting HR Supply• Factors affecting HR supply

– The firm’s present workforce and any internal changes or movements

– Evolving technologies– Projected economic trends

• Supply forecasting techniques– Replacement chart

• List of key personnel and their possible replacements within the firm

– Skills inventory• Computerized data bank containing information on the skills

and experience of all present employees

Matching supply with demand

• If demand is greater than internal supply, then the firm must recruit and select new employees

• If supply is greater than demand, then the firm must prepare plans to reduce the workforce through– Layoffs: dismissing employees from the workforce

until they are needed again– Attrition: normal reduction of the workforce that

occurs when employees leave the firm– Early retirement: allowing or encouraging persons to

retire early with full benefits– Firing may be necessary to remove excess employees

from the workforce

Job Analysis:Job Analysis:• A systematic procedure for studying jobs to

determine their various elements and requirements• A study of the tasks required to do a particular job

well• Studying a job to determine its tasks and duties for

– Setting pay

– Determining employee job performance

– Specifying hiring requirements

– Designing training programs




Employee selection

Job analysis• determines the responsibilities of the

position and qualifications needed

–job description

–job specification

Job description

• Lists the tasks and responsibilities of the job

• A list of the elements that make up a particular job– Duties to be performed– Working conditions– The jobholder’s responsibilities– The tools and equipment used on the job

Job Description (responsibilities)

example:

"Manage database components of large projects for the development of common process applications in Global Derivatives."

Job Description(example)

• Lead and manage a sales team to achieve sales target

• Develop territory and key account business.• Identify market opportunities and develop /

implement sales plans.• Cultivate good business relationship with

key customers.• Co-work with marketing team to implement

activities in market.• Develop people and provide day-to-day

coaching for sales team

Job specification

• A list of the qualifications required to perform a particular job

• Describes skills, knowledge, and abilities needed to fill the job described in the job description– Skills

– Abilities

– Education

– Experience

Job Specifications (requirements)• University graduate, MBA is a preferred but

not essential.• Experience with multi-national companies

handling well known consumer products for more than 5 years. Leading sales teams in supervisory level (or above) for more than 3 years.

• Good English is definitely required.• Proactive, aggressive, good team player,

self-driven, innovative with strong commitment to drive good business result.

Recruitment:Recruitment:• The process of attracting qualified job

applicants• The attempt to find and attract qualified

applicants– Most firms begin by trying to fill the job

from within

– If internal candidates are not available, an external search begins




Employee selection

Internal Recruiting

• Promotion or transfer• Job posting may be required by policy or union

contract– Advantages

• Provides motivation for current employees

• Helps retain quality personnel

– Disadvantages

• Cost of filling the newly vacant position

• Cost of training another employee

• Internal conflicts

External Recruiting• Sources

– Websites, newspaper ads, employment agencies, college campuses, union hiring halls, employee referrals, open houses, job fairs, walk-in applicants

• Advantages– Fresh perspectives and varied backgrounds of new hires– Attracting applicants with the required skills and

knowledge• Disadvantages

– Expense– May cause resentment among existing employees

External Search• Local media is used to find workers who are

– Non-technical– Unskilled– Non-supervisory

• Highly trained recruits are found by using– College recruiters– Executive search firms– Job fairs– Company Web sites

Selection:Selection:• The process of gathering information

about applicants and then using that information to choose the most appropriate applicant

• The process of determining which people in the applicant pool possess the qualifications necessary to be successful on the job




Employee selection

the employee selection process

• Applicant submits an application or résumé• Receives a short, structured interview• Applicant may be asked to take an aptitude, personality, or

skills test• Selection interview

– In-depth discussion of applicant’s• Work experience, skills, and abilities• Education and career interests

– Applicants seeking professional or managerial positions may be interviewed by several people

• Successful applicants may be asked to undergo a physical exam

Steps of the Selection ProcessSteps of the Selection Process

Initial screening

Employment testing

Selection interview

Background and reference checks

Physical examination

Decision to hire

Applications

• Provide useful factual information about the applicant

• Information gathered is used for– Identifying applicants worthy of further

consideration– Familiarizing interviewers with applicant

backgrounds

Resume Types• Chronological: focus on experience, each job

described in some detail, better with objective or summary, not good for career change

• Functional: highlights skills and accomplishments, good for career change, new comers, returning

• Combined: both chronological and functional, a shorter chronology following a short "Skills and Accomplishments" section, or with a longer Summary including a skills list or a list of "qualifications"); or a standard functional resume with the accomplishments under headings of different jobs held.

Sample Resume Format

• Personal Information:　 name, address, contact info 　

• Work Experience: chronological, position, responsibilities, achievements

• Education: • Activities: • Skills and Qualifications• Others 　

Resume Related Issues• Job Objective:? (all leading to position applied)• Chinese Name/ English Name• Last school and major and degree? • Education:• Main Courses• Extra-curriculum (Social) Activities: • Hobbies?• English / Computer organization skills, communications, team

players, leading abilities, working habits, ……

Employment Tests

• Aptitude, skills, abilities, and knowledge relevant to the job

• Job-related and validated as an accurate predictor of job performance, to be nondiscriminatory

Interview• The most widely used selection technique• Can probe more deeply into attitudes and

motivation• A structured interview format, to be

nondiscriminatory – Ask all candidates the same questions– All questions should be job-related– Avoid personal bias

Interviews

• group interview:

– attitudes: on time, attentiveness, active participation

– behavior: professional, value, character– skills and abilities: potential, ...

• individual interview:

– with different people: audience analysis– with detailed info: ability-responsibility match

Reference Check

• References– Used to verify information furnished by the

applicant • about skills, abilities and achievements

• about potentials and characters

• about previous job responsibilities and the reason for leaving their previous job

Hiring

• offer:– position, title, location, responsibilities, direct r

eports– salary, benefits– probationary period

• acceptance: sign and report to work

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

Training and Development:Training and Development:• Employee training• Management development




Employee Training

• The process of teaching operations and technical employees how to do their present jobs more effectively and efficiently

• Activities that provide learning situations in which an employee acquires additional knowledge or skills to increase job performance, or to foster job improvement

Management Development

• The process of preparing managers and other professionals to assume increased responsibility in both present and future positions

Program Design

• Analysis of the needs of the organization for training and development– Is training needed?

– What kind of training is needed?

– Is motivation needed?

– What kind of training is expensive; be sure it is appropriate.

Program Design• Determination of training and development

methods by which to deliver the program– On-the-job

• New employee learns by working under the supervision of experienced employee

– Simulation• Training in an area that replicates the actual work environment

without the production pressures– Classroom teaching and lectures

• For large groups who need the same information (e.g., notification of change in benefits)

– Conferences and seminars• Experts and learners meet to discuss problems and exchange

ideas– Role playing

• Acting out the roles of others in the organization for a better understanding of others

Program Design

• Determination of training and development methods by which to deliver the program

– Job rotation

– Executive education programs

– Mentoring

– Special project assignments

Program Design

• Creation of evaluation system to assess the program’s effectiveness– 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




Performance planning & evaluation process:Performance planning & evaluation process:

Performance planning:Setting standards &

expectations

Employee job task behavior

Performance evaluation

Rewards & job changes

Performance Appraisal

• Compares an employee’s actual performance with the expected performance

• 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

• Let workers know how they are doing and how they can do better

• Provide the basis for – Compensation

– Training needs– Advancement opportunities– Rewards

• Help the organization monitor selection, training, and development activities

Common Evaluation Techniques

• Objective methods– based on measurable quantity (e.g., units of output, sales volume,

number of defective products, % change in performance).

• Judgmental methods– Managerial estimates of employee performance levels– Ranking

• Ordering employees from best to worst• Difficult to use because there is no absolute standard and

differences in performance of ranked employees is not apparent

– Rating• Using a predetermined scale (standard) to evaluate each

employee’s performance

To Avoid 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

Performance EvaluationPerformance Evaluation

360° 360° EvaluationEvaluation: performance feedback that combines self-appraisal with ratings made by coworkers at the same level, above, and below the target person in the managerial hierarchy

Advantages:Advantages:provides a well-rounded view

avoids individual bias

can have more impact than a single source

can establish consensus

DisaDisadvantages:dvantages: time consuming

360° 360° EvaluationEvaluation:• Participants:

– self, manager, colleague, direct reports

• Questions: – impressions– most admired areas– need to stop, start, continue

• Rating:– responsibility, trustworthiness, honesty, accountablility,

...– drive, passion, result-oriented, process-management, ...– people development, team building, communication, ...

Performance Feedback• Performance appraisal information should be provided to

employees

• Most often through a performance feedback interview– 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 approach: Employee evaluates own performance and sets own goals; supervisor offers comments and goals are mutually established

– Mixed interview

– 360-degree evaluation: Employee is provided feedback from evaluations by his superiors, peers, and subordinates

• 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




How are employees compensated?

• Direct pay– Hourly wage or monthly salary paid to an employee– May include bonuses and profit shares

• Indirect pay– Various benefits and services

• Required by law: unemployment and worker’s compensation, Social Security

• Optional: paid vacations and holidays, pensions, health and other insurance products, employee wellness programs, college tuition reimbursement

Compensation Decisions

• Compensation– The payment employees receive in return for their labor

• Compensation system– The policies and strategies that determine employee

compensation• Wage level

– The firm’s choice to position its general level of pay at, above, or below the market (prevailing wage) for an industry or a geographic area

• Wage survey—a collection of data on prevailing wage rates within an industry or geographic area.

Compensation Decisions

• Wage structure– The internal compensation structure that sets the relative pay

levels for all the positions in the firm– Job evaluation—the process of determining the relative worth of

the various jobs within the firm• Ranking jobs according to their value to the firm• Job analysis using a point system to value jobs

• Individual wages– Decisions on specific wage payments to individual employees are

based on• The wage range for the individual’s job• The individual’s proficiency, experience, and performance

Types of Compensation• Hourly wage

– The amount of money paid for each hour of work

• Salary

– The amount of money paid for an employee’s work during a set calendar period, regardless of the number of hours worked

• Commissions

– Payments based on a percentage of sales revenue

• Incentive payment

– A payment in addition to wages, salary, or commissions such as gainsharing for exceeding goals or quotas

• Profit sharing

– The distribution of a percentage of the firm’s profit among its employees to motivate them to work effectively by giving them a stake in the successof the company

Types of Benefits• Rewards in addition to regular compensation that are

provided indirectly to the employee• Type of benefits

– Pay for time not worked• Vacation time, holidays, and sick leave

– Insurance packages• Health, life, and dental coverage

– Pension and Retirement programs• Costs may be shared or fully paid by the employer

– Required by law• Workers’ compensation, unemployment insurance, and Social

Security• Flexible benefits plan

– 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

Types of Career Change:Types of Career Change:

1.1. Job change within the organization– transfer– promotion– demotion

2.2. Separation from the organization– layoff– termination– resignation– retirement

Organizational career management

job changes

• PromotionsPromotions– Upward move with more authority, responsibility and pay

• TransfersTransfers– Horizontal move in the organization

• Layoffs Layoffs – Temporary separation arranged by the employer, usually

when business is slow

• RetirementsRetirements– Permanent separation that ends one’s career

trends affecting HR management

• Women comprise 45% of the American workforce– Growing numbers of dual-career couples– Companies are facing issues like sexual harassment and

nonwork issues such as child and elder care

• Workers change jobs 3 to 5 times during their career– Lessens loyalty between employer and employee

• Workforce is becoming more diverse– Companies are offering diversity training and mentoring of

minorities

Trends in Human Resources Trends in Human Resources 1. Social changeSocial change

More women in the work force More people changing jobs

2. DemographicsDemographics More diverse work force

3. Advancing TechnologyAdvancing Technology enables more outsourcing enables more telecommuting

4. Global CompetitionGlobal Competition– adaptable employees, need for language training &

cultural orientation

Cultural Diversity in Human Resources

• Differences among people in a workforce due to race, ethnicity, and gender

• Advantages of diversity– Cost savings from properly managing and integrating diversity into the

company

– Attracting the best personnel

– Marketing advantages due to a better understanding of different cultural groups

– Improved creativity

– Increased organizational flexibility in the placement of personnel

– Fresh viewpoints for problem solving and decision making

– Bilingual skills bring numerous benefits to the organization

Cultural Diversity in Human Resources (cont’d)

• Coping with diversity challenges– Train and educate managers to respect and manage

diversity– Recruit minority employees and

train them to be managers– Train managers to view diversity positively– Teach English as a second language– Provide mentoring programs and facilitate support

groups– Establish employee diversity groups – Have a strong commitment from upper management to

diversity goals for the organization

Managing Human Resources Chapters 13 Attracting and Retaining the Best Employees.

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