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Chapter. Human Resource Management: Finding and Keeping the Best Employees. 11. 11- 1. Human Resource Management.

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Human Resource Management:

Finding and Keeping the Best Employees



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Human Resource Management

HUMAN RESOURCE MANAGEMENT is the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.

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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

HR Challenge

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Prepare HR Inventory

Prepare Job Analysis



3)Assess Demand

4) Assess Supply

5) Establish Strategic Plan

Determining HR Needs

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A JOB ANALYSIS is a study of what is done by employees who hold various jobs. The results of the job analysis are two written statements: (1) Job Description; and, (2) Job specification.

Determining HR Needs

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JOB DESCRIPTION is a summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working condition, and the relationship of the job to other functions, e.g. manage staff of eight, schedule employee shifts, coordinate travel for all executives.

JOB SPECIFICATIONS are written summaries of the minimum qualifications required of workers to do a particular job, e.g. two years experience, 65 wpm, computer literate, ten-key by touch.

Results of a Job Analysis

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is the set of activities used to obtain a sufficient number of the right people at the right time.

RECRUITING IS DIFFICULT for several reasons:

Some organizations have policies that demand promotion from within, operate under union regulations, or offer low wages.

The emphasis on corporate culture and teamwork makes it important to hire skilled people who also FIT IN WITH THE CULTURE.

People with the necessary skills may not be available, and must be hired and then trained.


Hiring from within is usually less expensive and sometimes policy; sources include transfers, promotions, and reorganizations.


Includes a variety of methods, such as print media, the internet, trade magazines, private employment agencies, colleges.

Hiring Process

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How Workers Found Last Job

Source: USA Today “Snapshots”

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SELECTION is the process of gathering information and deciding who should be hired, under legal guidelines, for the best interest of the individual and the organization.

Selecting and training employees is expensive.

2. The selection process is a key element in human resource management.

The Selection Process

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“Employment At Will”

a. Meant that managers had as much freedom to fire workers as workers had to leave voluntarily.

b. Most states now have written employment laws that LIMIT THE “AT WILL” DOCTRINE to protect employees from wrongful firing.

c. This legislation restricted management’s ability to terminate employees.

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4. CONDUCTING BACKGROUND INVESTIGATIONS helps determine which candidates are most likely to succeed in a given position.


a. Medical tests cannot be given just to screen out individuals.

b. In some states physical exams can be given only AFTER AN OFFER OF EMPLOYMENT HAS BEEN ACCEPTED.

c. Pre-employment testing to detect drug or alcohol abuse or AIDS screening is controversial.

d. Eighty percent of U.S. companies now test current and potential employees for drug use.

6. ESTABLISHING TRIAL (PROBATIONARY) PERIODS allows organizations to hire an employee conditionally.

7. The selection process is difficult but helps ensure that new employees meet requirements in all relevant areas.

The Selection Process Overview

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What Attracts Employeesto Specific Employers?

% Employees That Agree

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What is your date of birth?

Have you ever filed a worker’s comp. claim?

Sometimes we will need the person we hire to work late hours. Will this cause problems with your childcare?

What is your native language?

What is your place of birth?

Do you own a home?

I see you use a walker. If we were to hire you, what accommodations would you require?

What church do you belong to?

What Not to Ask In Job Interviews

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Interviewing Mistakes

Source: USA Today “Snapshots”

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Temporary Workers

CONTINGENT WORKERS are workers who do not have the expectation of regular, full-time employment. Contingent workers receive FEW BENEFITS and EARN LESS than permanent workers do.

These include part-time workers, temporary workers, seasonal workers, interns, and co-op students.

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Why Companies Use Temporary Workers

  • Provide flexibility to meet demand fluctuations

  • Acquire specific expertise

  • Fill-in for absentee workers

  • Screen candidates for future employment

  • Control increasing benefit cost

  • Offset effects of downsizing

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Training & Development

  • TRAINING AND DEVELOPMENT involves all attempts to improve performance by increasing an employee’s ability to perform.

    a. TRAINING focuses on short- term skills.

    b. DEVELOPMENT focuses on long-term abilities.

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Training & Development


  • ASSESSING THE NEEDS of the organization and the skills of the employees to determine training needs.

  • DESIGNING TRAINING ACTIVITIES to meet the identified needs.


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Training Methods

  • Orientation

  • On-The-Job

  • Apprenticeship

  • Off-The-Job

  • Online

  • Vestibule

  • Job Simulation

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PERFORMANCE APPRAISALis an evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing.

Almost all workers undergo a performance appraisal annually at large corporations.


Performance Appraisal

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Establish Standards

Communicate Standards

Evaluate Performance

Discuss Results

Take Corrective Action

Use Results to Make Decisions

Performance Appraisal Steps

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Identify training needs

Use as a promotion tool

Recognize workers’ achievements

Evaluate hiring process

Judge effectiveness of orientation process

Use as a basis for terminating workers

Major Uses of Performance Appraisals

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Old HR Approach

Pay based on salary grades & hourly rates

Bonuses tied to unit & company performance

Benefits standard throughout organization.

Mgmt. strategy modeled on best practices at high-performing companies.

Career structures predetermined

New HR Approach

Pay based on achieving goals

Bonuses tied to individual performance

Benefits tailored to employee groups

Strategy based on internal analysis of employees

Career structures sculpted to individuals

Comparing HR Approaches

Source: BusinessWeek, December 16, 2002

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Compensation &Benefits Objectives

  • Attract

  • Incentive

  • Retain

  • Maintain

  • Security

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What MakesEmployees Stay

Source: BridgeGate, Irvine, CA & Market Facts Inc., Arlington Heights, IL

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Fringe Benefits



Core Time

Compressed Workweek

Home-Based & Mobile Work

Employee Retention

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FRINGE BENEFITS include sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages.

a. In recent years benefit programs grew faster than wages.

b. Benefits account for about 30% OF PAYROLLS today.

c. Many employees want more fringe benefits instead of more salary to avoid higher taxes.

FRINGE BENEFITS can include everything from paid vacations to day care programs, company cars, and more.

Employee Retention

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Payroll Dollar Expense

Source: CFO, March 2003

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Some companies offer CAFETERIA-STYLE FRINGE BENEFITS, fringe benefit plans that allow employees to choose the benefits they want up to a certain dollar amount.

Employee Retention

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Incentives Offered to Retain Top Talent

Survey of Executives That Offer:

Source: USA Today “Snapshots”

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Most Common Fringe Benefits Offered

Source: INC 500 Almanac

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Unusual Benefits Offered to Workers

  • Steelcase- 1,200 acre camping and recreational area

  • SYNOVUS- $50 bonus to take physical exam, $200 reward if vital signs are OK

  • Los Angeles Dodgers- free ice cream for staff if team is in first place

  • XEROX- Life Cycle Account or $1,000 to help employees with major thresholds (buying home, college)

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Employee Retention

A FLEXTIME PLAN is a work schedule that gives employees some freedom to choose when to work, as long as they work the number of required hours.

1. Most flextime plans include a period known as CORE TIME in which all employees are expected to be at their job stations.

2. Flextime plans are designed to allow employees to ADJUST TO THE DEMANDS OF THE TIMES, such as two-income families.

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Number of Hours Americans Work Per Week

Source: USA Today

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Employee Movement

  • Promotionan upward move in an organization to a position with more authority, responsibility, and pay.

  • Reassignment usually a horizontal move within the organization but may include different locations and/or depts.

  • Termination permanent separation initiated by the company often due to employee performance failings.

  • Retirement voluntarywithdraw of active employment usually initiated by the employee due to a qualifying event such as age.

  • Resignation a voluntary separation by the employee.

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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)

Family Medical Leave Act (1993)

HR & Legal Issues