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Chapter-09 Attracting and Retaining the Best Employees. Dr. Gehan Shanmuganathan , (DBA). “Wegmans” has “a propensity to serve”. “Wegmans” has “a propensity to serve”. Recognized as one of the best employers in the USA
Chapter-09 Attracting and Retaining the Best Employees Dr. GehanShanmuganathan, (DBA)
“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
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.
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.
An Overview • Acquisition • Maintenance • Development • Difference • Human resource – focuses on opportunity cost • Personnel management – focuses on cost
Human resources management All the activities involved in acquiring, maintaining, and developing an organization’s human resources (to achieve competitive advantage)
HRM: An Overview Acquisition 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
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
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
Human Resources Planning • The development of strategies to meet a firm’s future human resources needs
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
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
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
Cultural (workplace) Diversity • Differences among people in a workforce owing to race, ethnicity, and gender
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
Job Analysis • A systematic procedure for studying jobs to determine their various elements and requirements
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
Recruiting External recruiting Sources- news paper, colleges, agencies, and internet Advantages – professional Disadvantages- expensive
Recruiting (cont’d) Internal recruiting Advantages- low cost, accessibility, employee motivation Disadvantages- double task
Selection Employment applications Employment tests Interviews References Assessment centers
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
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
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
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
Types of Compensation Hourly wage Salary Commissions Incentive payment Lump-sum salary increases Profit sharing
Employee Benefits Type of benefits Pay for time not worked Insurance packages Pension and Retirement programs Required by law Flexible benefits plan- predetermined amount paid
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
Analysis of Training Needs Is training needed? What kind of training is needed? Is motivation needed? Training is expensive; be sure it is appropriate.
Training Development Methods On-the-job Simulation Classroom teaching and lectures Conferences and seminars Role playing
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
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
Common Evaluation Techniques Objective methods- sales targets, defects levels Judgmental methods Managerial estimates of employee performance levels Ranking Rating
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
Performance Feedback Most often through a performance feedback interview Tell and sell Tell and listen Problem-solving approach Mixed interview 360-degree evaluation