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Chapter Eleven

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Human Resource Management: Finding and Keeping the Best Employees

McGraw-Hill/Irwin

Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

CHALLENGES in FINDING HIGH-LEVEL WORKERS

*The Human
Resource Challenge LG1

A shortage of trained workers in key areas

Worker shortage in skilled trades Changes in employee attitudes about work A declining economy with fewer full-time jobs Expanding global markets with low-wage workers Increasing benefit demands and benefit costs A decreased sense of employee loyalty
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CIVIL RIGHTS ACT of 1964

Laws Affecting Human Resource Management

LG2

Title VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions or privileges of employment based on:
Race Religion Creed Sex Age National Origin

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HUMAN RESOURCE PLANNING PROCESS
Preparing a human resource inventory of employees. Preparing a job analysis. Assessing future human resource demand.

Determining a Firms Human Resource Needs

LG3

Assessing future labor supply.

Establishing a strategic plan.
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RECRUITING EMPLOYEES

Recruiting Employees from a Diverse Population

LG4

Recruitment -- The set of activities for obtaining the

right number of qualified people at the right time.

Human resource managers use both internal and external sources to recruit employees. Small businesses often make use of web sources like CareerBuilder and Monster to recruit employees.
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EMPLOYEE SOURCES

Recruiting Employees from a Diverse Population

LG4

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SELECTION

Selecting Employees Who Will be Productive

LG5

Selection -- The process of gathering information

and deciding who should be hired, under legal guidelines, to fit the needs of the organization and individuals.

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TRAINING and DEVELOPING EMPLOYEES

Training and Developing Employees for Optimum Performance

LG6

Training and Development -- All attempts to

improve productivity by increasing an employees ability to perform.

Training focuses on short-term skills.

Development focuses on long-term abilities.

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MOST COMMONLY USED TRAINING and DEVELOPMENT ACTIVITIES
Orientation On-the-Job Training Apprenticeships Off-the-Job Training Online Training Vestibule Training Job Simulation

Training and Developing Employees for Optimum Performance

LG6

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DEVELOPING EFFECTIVE MANAGERS

*Management
Development LG6

Management Development -- The process of

training and educating employees to become good managers and tracking the progress of their skills over time.

Management training includes:

- On-the-job coaching - Understudy positions - Job rotation - Off-the-job courses and training
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COMPENSATION PROGRAMS
A managed and competitive compensation program helps:

Compensating Employees: Attracting and Keeping the Best

LG8

- Attract the kinds of employees the business needs. - Build employee incentive to work efficiently and productively. - Keep valued employees from going to competitors or starting their own firm.

- Maintain a competitive market position by keeping costs low due to high productivity from a satisfied workforce.
- Provide employee financial security through wages and fringe benefits.
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TYPES of PAY SYSTEMS
Salary Hourly Wage/Day Work Piecework System
Pay Systems LG8

Commission Plans
Bonus Plans Profit Sharing Plans Gain-Sharing Plans Stock Options
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FLEXIBLE SCHEDULING PLANS

Scheduling Employees to Meet Organizational and Employee Needs

LG9

Flextime Plan -- Gives employees some freedom to

choose which hours to work as long as they work the required number.

Compressed Work Week -- Employees work the

full number of work hours, but in fewer than the standard number of days.

Job Sharing -- Lets two or more part-time

employees share on a full-time job.

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