Understanding business 8th by mcchugh nickels chapter 11

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Human Resource
Management:
Finding and
Keeping the Best
Employees

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CHAPTER

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11

Nickels

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McHugh

McGraw-Hill/Irwin
Understanding Business, 8e

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McHugh
1-1

11-1

© 2008 The McGraw-Hill Companies, Inc., All Rights


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HR Challenges
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Shortages
Unskilled Workers
Undereducated
Workers
Shift in Workforce
Composition
Laws & Regulations
Single-Parent & TwoIncome Families

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Attitudes Toward
Work
Continued
Downsizing
Overseas Labor
Pools
Customized Benefits
Employees With New
Concerns
Decreased Loyalty
11-2


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Determining HR Needs

1.Prepare HR

Inventory
2.Prepare Job
Analysis
• Job
Description
• Job

Specification

3.Assess HR

Demand
4.Assess HR
Supply
5.Establish
Strategic Plan

11-3


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Hiring Process

• Recruit
• Select

• Application Form
• Interview
• Test
• Investigate
• Examine
• Probation

• Train/Develop

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Orientation
OJT
Apprenticeship
Off-The-Job Training
Online Training
Vestibule Training
Job Simulation

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HR Executives’
Recruiting Preferences

Note: Multiple
responses allowed

Source: USA Today

11-5


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Applicants’ Mistakes

Source: USA Today

11-6


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Interviewing Mistakes

Source: USA Today

11-7


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Number Interviewed to
Find Quality Hire

Source: USA Today, January 24, 2005

11-8


Important Factors When
Phrasing Interview
Questions

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Language

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Relevance

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Information Level

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Complexity

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Information Accessibility

Source: University of Central Arkansas

11-9


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Training & Development

• Assess Needs
• Design Training
• Evaluate Effectiveness
11-10


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Training Methods

1. Employee Orientation

2. On-The-Job
3. Apprenticeship
4. Off-The-Job
5. Online
6. Vestibule
7. Job Simulation
11-11


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Management
Development

• On-The-Job
Coaching

• Understudy
• Job Rotation
• Off-The-Job Courses
& Training

11-12


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Performance Appraisal
1. Establish Standards
2. Communicate
3.

Standards
Evaluate
Performance
Discuss Results

4.
5. Take Corrective
Action

6. Use Results to Make
Decisions
11-13


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Employee Retention

• Compensation
• Individual
• Team

• Fringe Benefits
• Job-Sharing

• Flextime

• Core Time
• Compressed
Workweek

• Home-Based &
Mobile Work

11-14


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Compensation & Benefits
Program Objectives

• Attract the right people
• Employee incentives
• Retain valued employees
• Maintain competitiveness
• Financial security for
employees
11-15

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Pay Systems
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Salary

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Piecework system

Hourly wage and
daywork

Commission plans

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Bonus plans

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Gain-sharing plans

Profit-sharing
plans

Stock options

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Vacation Days Per Year

11-17


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Scheduling To Meet
Employee Needs

• Flextime Plans
• Home-Based & Other
Mobile Work

• Job-Sharing Plans

11-18


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Number of Hours
Americans Work Per Week

Source: USA Today

11-19


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Telecommuting:
Affect on Career

Source: USA Today

11-20


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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
11-21


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How Employers Are
Becoming Flexible

Source: insala.com, April 2005

11-22

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Benefits of
Providing Flexibility

Source: Insala.com, April 2005

11-23


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Why is Retention
Important?

• 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 exemployees’ annual salary

Source: insala,com, April 2005

11-24


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Top 10 Reasons
Employees Stay On Their
Job
1. Credit Union
6. Childcare
Membership
7. Vacation Time
2. Health Benefits
8. Sick Leave
3. Salary
9. Distance from Home
4. Good Coworkers
10. Popular Company
5. Office Hours
Source: Creditunionrate.com, accessed July 13, 2006

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