CHAPTER-09 ATTRACTING AND RETAINING THE BEST EMPLOYEES Dr. Gehan Shanmuganathan, (DBA) 1
Feb 25, 2016
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CHAPTER-09
ATTRACTING AND RETAINING THE BEST EMPLOYEES
Dr. Gehan Shanmuganathan, (DBA)
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“WEGMANS” HAS “A PROPENSITY TO SERVE”
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“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
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LEARNING OBJECTIVES
LEARNING OBJECTIVES1. Describe the major components of human
resources management.
2. Identify the steps in human resources planning.
3. Describe cultural diversity and understand some of the challenges and opportunities associated with it.
4. Explain the objectives and uses of job analysis.
LEARNING OBJECTIVES (CONT’D)
5. Describe the processes of recruiting, employee selection, and orientation.
6. Discuss the primary elements of employee compensation and benefits.
7. Explain the purposes and techniques of employee training and development
8. Discuss performance appraisal techniques and performance feedback.
9. Outline the major legislation affecting human resources management.
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AN OVERVIEW
AN OVERVIEW Acquisition
Maintenance
Development
Difference Human resource – focuses on opportunity
cost
Personnel management – focuses on cost
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HUMAN RESOURCES MANAGEMENT
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HUMAN RESOURCES MANAGEMENT
All the activities involved in acquiring,
maintaining, and developing an
organization’s human resources (to
achieve competitive advantage)
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HRM: AN OVERVIEW
HRM: AN OVERVIEWAcquisition
Human resources planning- determining future human resource needs (relationship to corporate strategic planning)
Job analysis- determining exact nature of the position
Recruiting- attracting potential candidatesSelection- choosing and hiring most
qualified applicantOrientation- 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-beingDevelopment
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
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HUMAN RESOURCES PLANNING
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HUMAN RESOURCES PLANNING
The development of strategies to meet a
firm’s future human resources needs
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DEMAND AND SUPPLY
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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
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Forecasting Human Resources Demand
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
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CULTURAL DIVERSITY IN HUMAN RESOURCES
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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
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JOB ANALYSIS
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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
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RECRUITING
RECRUITINGExternal 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
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SELECTION
SELECTION Employment applications
Employment tests
Interviews
References
Assessment centers
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ORIENTATION
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
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COMPENSATION AND BENEFITS
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
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TRAINING AND DEVELOPMENT
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
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PERFORMANCE APPRAISAL
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
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THE LEGAL ENVIRONMENT OF HRM
THE LEGAL ENVIRONMENT OF HRM
National Labor Relations Act and Labor-Management Relations Act (1935)
Fair Labor Standards Act (1938)
Equal Pay Act (1963)
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)
THE LEGAL ENVIRONMENT OF HRM (CONT’D)
Americans with Disabilities Act (ADA) (1990)
Age Discrimination in Employment Act (1967/1986)
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WRITE FIVE KEY THINGS (AREAS) THAT YOU CAN CRITICALLY REMEMBER IN TODAY’S DISCUSSION
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WHAT WE DISCUSSED TODAY..
LEARNING OBJECTIVES
1. Describe the major components of human resources management.
2. Identify the steps in human resources planning.
3. Describe cultural diversity and understand some of the challenges and opportunities associated with it.
4. Explain the objectives and uses of job analysis.
LEARNING OBJECTIVES (CONT’D)
5. Describe the processes of recruiting, employee selection, and orientation.
6. Discuss the primary elements of employee compensation and benefits.
7. Explain the purposes and techniques of employee training, development, and performance appraisal.
8. Outline the major legislation affecting human resources management.
WEEKLY ASSIGNMENT-09
Discuss the importance of human resources
as one of the factors of production to achieve
business objectives.