Managing Human Resources

Managing Human Resources Chapters 13 Attracting and Retaining the Best Employees

Human Resource Management • The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals • All the activities involved in acquiring, maintaining, and developing an organization’s human resources

Before Recruiting • Human resources planning • Determining the firm’s human resource needs • Job analysis • Determining the exact nature of the positions to be filled

Acquisition • Recruiting • Attracting people to apply for positions in the firm • Selection • Choosing and hiring the most qualified applicants • Orientation • Acquainting new employees with the firm

Maintaining • Employee relations • Increasing employee job satisfaction through satisfaction surveys, communication programs, exit interviews, and fair treatment • Compensation • Rewarding employee effort through monetary payments • Benefits • Providing rewards to ensure employee well-being

Development • Training and development • Teaching employees new skills for more effective ways to dotheir present jobs and new jobs in the future • Performance appraisal • Assessing employees’ current and potential performance levels

Human Resource Management: • HR planningandJob analysis • Acquiring: Employee recruitment and selection • Retainning and developing: Employee training, performance appraisal, and compensation • Career managment • Employment termination

Training & development Job analysis & design Employee recruitment Employee selection Performance planning & evaluation Compensation & benefits HR planning & forecasting Human Resource Management Process Strategies & objectives of the organization Acquiring Organizational career management retainning

HR planning & forecasting Job analysis & design Employee recruitment Employee selection • HR planning: The development of strategies to meet a firm’s future human resources needs • Demand forecast: Determining the number of employees needed by some future time • Supply forecast (internal): Estimating the number of current employees who will be available to fill various jobs at some future time

Forecasting HR Demand • Demand forecasts based on organizational goal and structure • Factors affecting HR demand • The firm’s overall strategic plan • The firm’s past history of staffing levels • Evolving technologies • Industry staffing practices • Projected economic trends

Forecasting HR Supply • Factors affecting HR supply • The firm’s present workforce and any internal changes or movements • Evolving technologies • Projected economic trends • Supply forecasting techniques • Replacement chart • List of key personnel and their possible replacements within the firm • Skills inventory • Computerized data bank containing information on the skills and experience of all present employees

Matching supply with demand • If demand is greater than internal supply, then the firm must recruit and select new employees • If supply is greater than demand, then the firm must prepare plans to reduce the workforce through • Layoffs: dismissing employees from the workforce until they are needed again • Attrition: normal reduction of the workforce that occurs when employees leave the firm • Early retirement: allowing or encouraging persons to retire early with full benefits • Firing may be necessary to remove excess employees from the workforce

HR planning & forecasting Job analysis & design Employee recruitment Employee selection Job Analysis: • A systematic procedure for studying jobs to determine their various elements and requirements • A study of the tasks required to do a particular job well • Studying a job to determine its tasks and duties for • Setting pay • Determining employee job performance • Specifying hiring requirements • Designing training programs

Job analysis • determines the responsibilities of the position and qualifications needed • job description • job specification

Job description • Lists the tasks and responsibilities of the job • A list of the elements that make up a particular job • Duties to be performed • Working conditions • The jobholder’s responsibilities • The tools and equipment used on the job

Job Description (responsibilities) example: "Manage database components of large projects for the development of common process applications in Global Derivatives."

Job Description(example) • Lead and manage a sales team to achieve sales target • Develop territory and key account business. • Identify market opportunities and develop / implement sales plans. • Cultivate good business relationship with key customers. • Co-work with marketing team to implement activities in market. • Develop people and provide day-to-day coaching for sales team

Job specification • A list of the qualifications required to perform a particular job • Describes skills, knowledge, and abilities needed to fill the job described in the job description • Skills • Abilities • Education • Experience

Job Specifications (requirements) • University graduate, MBA is a preferred but not essential. • Experience with multi-national companies handling well known consumer products for more than 5 years. Leading sales teams in supervisory level (or above) for more than 3 years. • Good English is definitely required. • Proactive, aggressive, good team player, self-driven, innovative with strong commitment to drive good business result.

Employee recruitment Employee selection Job analysis & design HR planning & forecasting Recruitment: • The process of attracting qualified job applicants • The attempt to find and attract qualified applicants • Most firms begin by trying to fill the job from within • If internal candidates are not available, an external search begins

Internal Recruiting • Promotion or transfer • Job posting may be required by policy or union contract • Advantages • Provides motivation for current employees • Helps retain quality personnel • Disadvantages • Cost of filling the newly vacant position • Cost of training another employee • Internal conflicts

External Recruiting • Sources • Websites, newspaper ads, employment agencies, college campuses, union hiring halls, employee referrals, open houses, job fairs, walk-in applicants • Advantages • Fresh perspectives and varied backgrounds of new hires • Attracting applicants with the required skills and knowledge • Disadvantages • Expense • May cause resentment among existing employees

External Search • Local media is used to find workers who are • Non-technical • Unskilled • Non-supervisory • Highly trained recruits are found by using • College recruiters • Executive search firms • Job fairs • Company Web sites

Employee recruitment Employee selection Job analysis & design HR planning & forecasting Selection: • The process of gathering information about applicants and then using that information to choose the most appropriate applicant • The process of determining which people in the applicant pool possess the qualifications necessary to be successful on the job

the employee selection process • Applicant submits an application or résumé • Receives a short, structured interview • Applicant may be asked to take an aptitude, personality, or skills test • Selection interview • In-depth discussion of applicant’s • Work experience, skills, and abilities • Education and career interests • Applicants seeking professional or managerial positions may be interviewed by several people • Successful applicants may be asked to undergo a physical exam

Decision to hire Physical examination Background and reference checks Selection interview Employment testing Initial screening Steps of the Selection Process

Applications • Provide useful factual information about the applicant • Information gathered is used for • Identifying applicants worthy of further consideration • Familiarizing interviewers with applicant backgrounds

Resume Types • Chronological: focus on experience, each job described in some detail, better with objective or summary, not good for career change • Functional: highlights skills and accomplishments, good for career change, new comers, returning • Combined: both chronological and functional, a shorter chronology following a short "Skills and Accomplishments" section, or with a longer Summary including a skills list or a list of "qualifications"); or a standard functional resume with the accomplishments under headings of different jobs held.

Sample Resume Format • Personal Information:　name, address, contact info　 • Work Experience: chronological, position, responsibilities, achievements • Education: • Activities: • Skills and Qualifications • Others　

Resume Related Issues • Job Objective:? (all leading to position applied) • Chinese Name/ English Name • Last school and major and degree? • Education: • Main Courses • Extra-curriculum (Social) Activities: • Hobbies? • English / Computer organization skills, communications, team players, leading abilities, working habits, ……

Employment Tests • Aptitude, skills, abilities, and knowledge relevant to the job • Job-related and validated as an accurate predictor of job performance, to be nondiscriminatory

Interview • The most widely used selection technique • Can probe more deeply into attitudes and motivation • A structured interview format, to be nondiscriminatory • Ask all candidates the same questions • All questions should be job-related • Avoid personal bias

Interviews • group interview: • attitudes: on time, attentiveness, active participation • behavior: professional, value, character • skills and abilities: potential, ... • individual interview: • with different people: audience analysis • with detailed info: ability-responsibility match

Reference Check • References • Used to verify information furnished by the applicant • about skills, abilities and achievements • about potentials and characters • about previous job responsibilities and the reason for leaving their previous job

Hiring • offer: • position, title, location, responsibilities, direct reports • salary, benefits • probationary period • acceptance: sign and report to work

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

Training & development Performance planning & evaluation Compensation & benefits Training and Development: • Employee training • Management development

Employee Training • The process of teaching operations and technical employees how to do their present jobs more effectively and efficiently • Activities that provide learning situations in which an employee acquires additional knowledge or skills to increase job performance, or to foster job improvement

Management Development • The process of preparing managers and other professionals to assume increased responsibility in both present and future positions

Program Design • Analysis of the needs of the organization for training and development • Is training needed? • What kind of training is needed? • Is motivation needed? • What kind of training is expensive; be sure it is appropriate.

Program Design • Determination of training and development methods by which to deliver the program • On-the-job • New employee learns by working under the supervision of experienced employee • Simulation • Training in an area that replicates the actual work environment without the production pressures • Classroom teaching and lectures • For large groups who need the same information (e.g., notification of change in benefits) • Conferences and seminars • Experts and learners meet to discuss problems and exchange ideas • Role playing • Acting out the roles of others in the organization for a better understanding of others

Program Design • Determination of training and development methods by which to deliver the program • Job rotation • Executive education programs • Mentoring • Special project assignments

Program Design • Creation of evaluation system to assess the program’s effectiveness • 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

Training & development Performance planning & evaluation Compensation & benefits Performance planning & evaluation process: Performance planning: Setting standards & expectations Performance evaluation Rewards & job changes Employee job task behavior

Performance Appraisal • Compares an employee’s actual performance with the expected performance • 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 • Let workers know how they are doing and how they can do better • Provide the basis for • Compensation • Training needs • Advancement opportunities • Rewards • Help the organization monitor selection, training, and development activities

Common Evaluation Techniques • Objective methods • based on measurable quantity (e.g., units of output, sales volume, number of defective products, % change in performance). • Judgmental methods • Managerial estimates of employee performance levels • Ranking • Ordering employees from best to worst • Difficult to use because there is no absolute standard and differences in performance of ranked employees is not apparent • Rating • Using a predetermined scale (standard) to evaluate each employee’s performance

Managing Human Resources