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McGraw-Hill/Irwin Understanding Business, 8e. © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh. Human Resource Management: Finding and Keeping the Best Employees. *. *. *. CHAPTER. 11. *. *. 1- 1. Shortages Unskilled Workers

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Understanding Business, 8e

© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

Nickels McHugh McHugh

Human Resource


Finding and

Keeping the Best










hr challenges

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 Challenges
determining hr needs
Prepare HR Inventory

Prepare Job Analysis

Job Description

Job Specification

Assess HR Demand

Assess HR Supply

Establish Strategic Plan

Determining HR Needs
hiring process


Application Form










Off-The-Job Training

Online Training

Vestibule Training

Job Simulation

Hiring Process
hr executives recruiting preferences
HR Executives’ Recruiting Preferences

Note: Multiple responses allowed

Source: USA Today

applicants mistakes
Applicants’ Mistakes

Source: USA Today

interviewing mistakes
Interviewing Mistakes

Source: USA Today

number interviewed to find quality hire
Number Interviewed to Find Quality Hire

Source: USA Today, January 24, 2005

important factors when phrasing interview questions
Important Factors When Phrasing Interview Questions
  • Language
  • Relevance
  • Information Level
  • Complexity
  • Information Accessibility

Source: University of Central Arkansas

training development
Training & Development
  • Assess Needs
  • Design Training
  • Evaluate Effectiveness
training methods
Training Methods
  • Employee Orientation
  • On-The-Job
  • Apprenticeship
  • Off-The-Job
  • Online
  • Vestibule
  • Job Simulation
management development
Management Development
  • On-The-Job Coaching
  • Understudy
  • Job Rotation
  • Off-The-Job Courses & Training
performance appraisal
Establish Standards

Communicate Standards

Evaluate Performance

Discuss Results

Take Corrective Action

Use Results to Make Decisions

Performance Appraisal
employee retention



Fringe Benefits



Core Time

Compressed Workweek

Home-Based & Mobile Work

Employee Retention
compensation benefits program objectives
Compensation & Benefits Program Objectives
  • Attract the right people
  • Employee incentives
  • Retain valued employees
  • Maintain competitiveness
  • Financial security for employees
pay systems

Hourly wage and daywork

Piecework system

Commission plans

Bonus plans

Profit-sharing plans

Gain-sharing plans

Stock options

Pay Systems
scheduling to meet employee needs
Scheduling To Meet Employee Needs
  • Flextime Plans
  • Home-Based & Other Mobile Work
  • Job-Sharing Plans
benefits of job sharing
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
how employers are becoming flexible
How Employers AreBecoming Flexible

Source:, April 2005

benefits of providing flexibility
Benefits of Providing Flexibility

Source:, April 2005

why is retention important
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

Source: insala,com, April 2005

top 10 reasons employees stay on their job
Credit Union Membership

Health Benefits


Good Coworkers

Office Hours


Vacation Time

Sick Leave

Distance from Home

Popular Company

Top 10 Reasons Employees Stay On Their Job

Source:, accessed July 13, 2006

employee movement
Employee Movement
  • Promotion/Reassignment
  • Termination
  • Retirement
  • Resignation
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)

HR Laws
implementing eeoc which statements are t f
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.
implementing eeoc which statements are t f29
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.