Chapter 12 - human resource management: Finding and keeping the best employees

Chapter 12 human resource management: Finding and keeping the best employees 1 Human resource management (HRM) HRM is the process of: determining human resources needs and then: recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals. 2 Human resource management (HRM) As the figure on the next slide shows, HRM is more than hiring and firing personnel. All activities are designed to achieve organizational goals within the laws that affect human resource management. One reason why human resource management is receiving increased attention is the major shift from traditional manufacturing industries to service and high-tech manufacturing industries that require highly technical job skills. This shift means that many workers must be retrained for new, more challenging jobs. 3 Human resource management (HRM) 4 Executives’ toughest hrm issues A growing percentage of new workers who are undereducated and unprepared for jobs in the contemporary business environment. A shortage of workers in skilled trades due to retirement of aging baby boomers. An increasing number of both single-parent and two-income families, resulting in a demand for job sharing, maternity leave, and special career advancement programs for women. A shift in employee attitudes toward work. Leisure time has become a much higher priority, as have flextime and a shorter workweek. 5 Determining hr needs: five steps Preparing a human resources inventory of the organization’s employees. This inventory should include ages, names, education capabilities, training, specialized skills, and other information pertinent to the specific organization. Preparing a job analysis. A job analysis is a study of what is done by employees who hold various job titles. A job analysis yields two important statements: Job Descriptions Job Specifications 6 Job analysis 7 Determining hr needs: five steps 3. Assessing future human resources demand. Because technology changes rapidly, training programs must be started long before the need is apparent. 4. Assessing future human resources supply. The labour force is constantly shifting: getting older, becoming more technically oriented, etc. 5. Establishing a strategic plan. The plan must address recruitment, selection, training and development, evaluation, compensation, scheduling, and career management for the labour force 8 The hiring process Recruitment Selection Application Form Interview Test Investigate Probation 9 Recruiting employees Recruitment is the set of activities used to obtain a sufficient number of the right people at the right time. The end result is to have a pool of qualified applicants. Recruiting has become very difficult for several reasons: Policies that demand internal promotion; union contracts, low wages. Legal guidelines that surround hiring practices. Management wants people who are not only skilled but also “fit” Candidates with the necessary skills are not available, workers must be hired and then trained internally 10 Recruiting sources 11 External Sources Consultants/Agencies New Graduates Former Employees Competitors Business Associates Internships Internet Internal Sources Transfers Promotions Recommendations Retrained Employees Reorganizations What attracts employees to specific employers? 12 Selecting employees Selection is the process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization. A typical selection process involves five steps: 1. Obtaining complete application forms. 2. Conducting initial and follow-up interviews. 3. Giving employment tests. 4. Confirming background information. 5. Establishing trial (probationary) periods. 13 Selecting employees 1. Obtaining complete application forms. Legal guidelines limit the kinds of questions that may appear on an application form. A standardized form ensures no details are “omitted” which may be critical, and are often left off a resume. 14 2. Conducting initial and follow-up interviews. A staff member from the human resources department often screens applicants in a first interview. If the interviewer considers the applicant a potential employee, the manager who will supervise the new employee interviews the applicant, as well. Often a third or fourth interview may be required with higher levels of management. 15 Selecting employees 3. Giving employment tests. In using employment tests, it’s important that they be directly related to the job. Many companies test potential employees in assessment centres, where applicants perform actual tasks of the real job. 16 Selecting employees 4. Confirming background information. Most organizations now confirm a candidate’s work record, school record, credit history, and references more carefully than they have in the past. Be aware that more hiring managers and recruiters are visiting social networking websites. 17 Selecting employees 5. Establishing trial (probationary) periods. Commonly, an organization will hire an employee conditionally for a probationary period. This enables the person to prove his or her worth/skills on the job. 18 Selecting employees Training and developing employees for optimal performance Training and development include all attempts to improve productivity by increasing an employee’s ability to perform. Training focuses on short-term skills, whereas development focuses on long-term abilities. 19 Training and developing employees for optimal performance Both training and development programs include three steps: (1) assessing the needs of the organization and the skills of the employees to determine training needs; (2) designing training activities to meet the identified needs; and (3) evaluating the effectiveness of the training. 20 Training and developing employees for optimal performance Some common training and development activities are: Employee Orientation On-the-job Training – learning by doing or watching Apprentice Programs Off-the-job Training – i.e. courses, seminars, confer. Online Training – mostly internet-based training Vestibule Training – done in classrooms with similar equip to what is/will be used on the job Job Simulation – duplicate working cond./circumstance 21 1. Employee orientation The activity that initiates new employees to the organization, to fellow employees, to their immediate supervisors, and to the policies, practices, values, and objectives of the firm. Orientation programs include everything from informal talks to formal activities that last a day or more. 22 2. On-the-job training The most fundamental type of training. The employee being trained on the job immediately begins his or her tasks and learns by doing, or watches others for a while and then imitates them, right at the workplace. 23 3. Apprentice programs Involve a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft. Most apprenticeship programs also involve classroom training. Many skilled crafts require a new worker to serve as an apprentice for several years. 24 4. Off-the-job training Occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development. Training is becoming more sophisticated as jobs become more sophisticated. 25 5. Online training Offers an example of how technology is improving the efficiency of many off-the-job training programs. In such training, employees “attend” classes via the internet. Allows employees to proceed at their own pace and to “test out” as they gain knowledge. 26 6. Vestibule training Is done in classrooms where employees are taught on equipment similar to that used on the job. Such classrooms enable employees to learn proper methods and safety procedures before assuming a specific job assignment in an organization. 27 7. Job simulation Using equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting them on the job. Job simulation differs from vestibule training in that the simulation attempts to duplicate the exact combination of conditions that occur on the job. 28 Management development Most management training programs include: On-the-job coaching. Understudy positions. Job rotation. Off-the-job courses and training. 29 Major uses of performance appraisals Identify training needs Use as a promotion tool Recognize workers’ achievements Evaluate hiring process Judge effectiveness of orientation process Use as a basis for terminating workers 30 Performance appraisal: Six steps Establish Standards Communicate Standards Evaluate Performance Discuss Results Take Corrective Action Use Results to Make Decisions 31 Performance appraisal 32 Compensating employees Companies don’t just compete for customers; they also compete for employees. Compensation is one of the main marketing tools that companies use to attract (and retain) qualified employees, and it is one of the largest operating costs for many organizations Fringe benefits are benefits that provide additional compensation to employees. 33 Career management Terminating Employees Downsizing and restructuring, global competition, and shifts in technology have human resources managers struggling to manage layoffs and firings. Retiring Employees In addition to layoffs, another tool used to downsize companies is to offer early retirement benefits to entice older (and more expensive) workers to retire. Losing Employees Learning about their reasons for leaving can be invaluable in preventing the loss of other good people in the future. 34