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McGraw-Hill/Irwin Understanding Business, 8e. © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh. *. *. Human Resource Management: Finding and Keeping the Best Employees. *. CHAPTER. 11. *. *. 1- 1.

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  1. McGraw-Hill/Irwin Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh * * Human Resource Management: Finding and Keeping the Best Employees * CHAPTER 11 * * 1-1

  2. Human Resource Management:Achievement of Organizational Goals • Determining needs • Recruiting • Selecting • Developing • Motivating • Evaluating • Compensating • Scheduling

  3. Inventory Job Analysis Job Description Job Specification Demand Supply Strategic Plan HR Planning

  4. Shortages Unskilled Workers Undereducated Workers Shift in Workforce Composition Laws & Regulations Single-Parent & Two-Income Families Attitudes Toward Work Continued Downsizing Overseas Labor Pools Customized Benefits Employees With New Concerns Decreased Loyalty HR Challenges

  5. Recruitment • Goal: • Obtain the right number of qualified employees when needed • Challenges: • Internal promotion • Organizational culture • Candidate pool • Time & Cost • Competition • Reputation

  6. HR Executives: Recruiting Preferences Note: Multiple responses allowed Source: USA Today

  7. Number Interviewed to Find Quality Hire Source: USA Today, January 24, 2005

  8. Prohibited Interview Topics • Married or planning to get married? • Pregnant or planning to become pregnant? • Children? • Birthplace? • Sexual orientation? • Ever been arrested?

  9. Job-Specific Exceptions • Have you ever been convicted of a crime? • Can you prove that you are eligible to work in the U.S.? • Can you do this job with or without reasonable accommodations?

  10. Interviews: Potential Problems • Inappropriate questions/topics • Stereotyping bias • Premature judgments • Interviewer’s personal values • Insufficient job knowledge/preview • Deliberate stress • Environment • Interviewer domination • Lack of training

  11. Interviewing Mistakes Source: USA Today

  12. Applicant Mistakes Source: USA Today

  13. Training & Development • Goal: improve productivity by increasing targeted abilities • Assess needs • Organization • Employee • Design training • Orientation • On-the-job • Off-the-job • Apprenticeship • Evaluate effectiveness • Performance appraisal

  14. Establish clear standards Communicate standards Evaluate performance Discuss results Take corrective action Use results to make decisions Performance Appraisal

  15. DO Prepare Set a comfortable tone Emphasize review as an opportunity for growth Allow sufficient time Allow for employee input Ensure the employee understands action plans Record main points, action plans, follow-up process DON’T Evaluate on personal criteria Set an overly formal, uncomfortable tone Give unclear or non-specific feedback Wait until the evaluation to address concerns or needed changes End on a negative note Conducting Effective Reviews

  16. Compensation Individual Team Fringe Benefits Job-Sharing Flextime Core Time Compressed Workweek Home-Based & Mobile Work Employee Retention

  17. Importance of Retention • Employee turnover could cost up to 40% of a company’s annual profits • The average company loses $1 million with the loss of every ten managerial employees • Turnover costs are 50%-100% of the ex-employees’ annual salary Source: insala,com, April 2005

  18. Number of HoursAmericans Work Per Week Source: USA Today

  19. Salary Hourly wage and daywork Piecework system Commission plans Bonus plans Profit-sharing plans Gain-sharing plans Stock options Pay Systems

  20. Fringe Benefits • Paid vacation & sick leave • Retirement plans • Healthcare • Flexible spending accounts • Cafeteria options • Flexible work schedules • Creative motivators

  21. Vacation Days Per Year

  22. Flexible Scheduling: Meeting Employee Needs • Flextime Plans • Home-Based & Other Mobile Work • Job-Sharing Plans

  23. Benefits of Job-Sharing • Opportunities for wanting to work only part-time • High level of enthusiasm and productivity • Reduced absenteeism and tardiness • Ability to schedule in peak demand period • Retention of experienced workers

  24. Benefits of Providing Flexibility Source: Insala.com, April 2005

  25. Credit Union Membership Health Benefits Salary Good Coworkers Office Hours Childcare Vacation Time Sick Leave Distance from Home Popular Company Top 10 Reasons Employees Stay Source: Creditunionrate.com, accessed July 13, 2006

  26. Google:Best Company to Work For in U.S., 2007 • Free gourmet meals • Spa • Fitness center with swimming pool • Free physicians/healthcare onsite • Employee empowerment: independent projects • Informal, fun corporate culture

  27. Employee Movement • Promotion/reassignment • Termination • Retirement • Resignation

  28. Civil Rights Act (1964; 1991) Age Discrimination Act (1967) Equal Employment Opportunity Act (1972) Affirmative Action Reverse Discrimination Americans with Disabilities Act (1990) Occupational Safety and Health Act (1970) HR Laws

  29. Civil Rights Act of 1964Title VII • Social legislation applied to businesses with 15 or more employees • Prohibits discrimination • Race, religion, creed, sex, national origin, *age • Enforcement challenges

  30. Equal Opportunity ActTitle VII • EEOC • Guidelines for human resource management • Mandatory record-keeping • Affirmative action programs • Reverse discrimination

  31. Americans with Disabilities Act of 1990 • Prohibits discrimination against qualified individuals with disabilities • Hiring, advancement, compensation • Reasonable accommodations

  32. Family & Medical Leave Act of 1993 • 50 or more employees • Up to 12 weeks unpaid leave • Birth • Adoption • Serious illness of parent, spouse, child • Continued medical benefits • Restoration of original position

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