chapter-09 attracting and retaining the best employees

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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.