Chapter 9
Attracting and
Retaining the
Best Employees
Learning Objectives
1. Describe the major components of human resources
management.
2. Identify the steps in human resources planning.
3. Describe cultural diversity and understand some of the
challenges and opportunities associated with it.
4. Explain the objectives and uses of job analysis.
5. Describe the processes of recruiting, employee selection,
and orientation.
6. Discuss the primary elements of employee compensation
and benefits.
7. Explain the purposes and techniques of employee
training, development, and performance appraisal.
8. Outline the major legislation affecting human resources
management.
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Chapter 9 | Slide 2
Human Resources
Management (HRM)
…all the activities involved in acquiring,
maintaining, and developing an
organization’s human resources.
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Chapter 9 | Slide 3
Acquiring
Planning
Job Analysis
Recruiting
Selection
Orientation
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Chapter 9 | Slide 4
Maintaining
Compensation
Benefits
Employee Relations
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Chapter 9 | Slide 5
Developing
Training &
Development
Performance
Appraisal
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Chapter 9 | Slide 6
HRM Responsibility
 Line managers and staff HRM specialists
share responsibility
 Staff specialists develop specific HR activities
(e.g., training and development) and deliver
them with the assistance and input of line
managers
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Chapter 9 | Slide 7
Human Resources Planning
…the development of strategies to meet a
firm’s future human resources needs.
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Chapter 9 | Slide 8
Human Resources Planning Process
Match Supply
With Demand
Forecast
Demand
Forecast
Supply
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Chapter 9 | Slide 9
Forecasting HR Supply
Factors
 The firm’s present workforce and any internal changes or
movements
 Evolving technologies
 Projected economic trends
Tools
 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
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Chapter 9 | Slide 10
When HR Supply Exceeds Demand
 Lay-off
 Attrition
 Early retirement
 Firing
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Chapter 9 | Slide 11
Using the Internet
 The Society for Human Resource
Management is an excellent source of
general information about HRM
 http://www.shrm.org
 The American Society for Training and
Development is an example of sources for
more specialized areas of HRM
 http://www.astd.org
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Chapter 9 | Slide 12
Cultural (Workplace) Diversity
…differences among people in a work force
owing to race, ethnicity, and gender.
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Chapter 9 | Slide 13
Table 9.1: Competitive Advantages
of Cultural Diversity
Sources: Taylor H. Cox and Stacy Blake, “Managing Cultural Diversity: Implications for Organizational Competitiveness,” Academy of
Management Executives 5(3):46, 1991; Graciela Kenig, “Yo Soy Ingeniero: The Advantages of Being Bilingual in Technical Professions,”
Diversity Monthly, February 28, 1999, p. 13; and “Dialogue Skills in the Multicultural Workplace,” North American Post, March 19, 1999, p. 2..
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Chapter 9 | Slide 14
Job Analysis
…a systematic procedure for studying
jobs to determine their various
elements and requirements.
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Chapter 9 | Slide 15
Job Description
…a list of the elements that
make up a particular job.
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Chapter 9 | Slide 16
Elements of Job Description
 Duties to be performed
 Working conditions
 Responsibilities
 Tools & equipment used
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Chapter 9 | Slide 17
Job Specification
…a list of qualifications required
to perform a particular job.
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Chapter 9 | Slide 18
Elements in Job Specification
 Skills
 Abilities
 Education
 Experience
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Chapter 9 | Slide 19
Figure 9.1: Job Description
and Job Specification
Source: Used with permission of Houghton Miffl in Company.
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Chapter 9 | Slide 20
Recruiting
…the process of attracting
qualified job applicants.
Needs to be systematic.
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Chapter 9 | Slide 21
Sources Used in Recruiting
 Factors
• Nature of position
• Situation within firm
• Firm’s established/traditional recruitment policies
 Location
• External
• Internal
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Chapter 9 | Slide 22
Selection
…the process of gathering information
about applicants for a position and then
using that information to choose the
most appropriate applicant.
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Chapter 9 | Slide 23
Techniques of Selection
 Application
 Tests
 Interviews
 References
 Assessment Centers
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Chapter 9 | Slide 24
Uses of Data from
Employment Application
 Identify applicants worthy of further scrutiny
 Familiarize interviewers with their backgrounds
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Chapter 9 | Slide 25
Focus of Employment Tests
 Aptitude
 Skills
 Abilities
 Knowledge relevant to job
 Non-discriminatory measurement
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Chapter 9 | Slide 26
Interview
 Most widely used selection technique
 Provides opportunity for applicant/firm to learn
more about each other
 Structured Interview = interviewer asks only a
prepared set of job-related questions
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Chapter 9 | Slide 27
References
 Verify background information
 Provide personal evaluations
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Chapter 9 | Slide 28
Assessment Centers
 Primarily for higher-level positions
 Simulate management environment
 Trained observers make recommendations
 Gaining popularity
 Very expensive
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Chapter 9 | Slide 29
Orientation
…the process of acquainting new
employees with an organization.
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Chapter 9 | Slide 30
Effective Employee
Reward System
1. Enables employees to satisfy basic needs
2. Provides rewards comparable with those
offered by other firms
3. Is distributed fairly within the organization
4. Recognizes that different people have different
needs
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Chapter 9 | Slide 31
Compensation
…the payment employees receive
in return for their labor.
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Chapter 9 | Slide 32
Compensation System
…the policies and strategies that
determine employee compensation.
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Chapter 9 | Slide 33
Compensation Decisions
 Wage Level: wage survey
 Wage Structure: job evaluation
 Individual Wages
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Chapter 9 | Slide 34
Comparable Worth
…a concept that seeks equal
compensation for jobs requiring about
the same level of education,
training, and skills.
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Chapter 9 | Slide 35
Spotlight
Are Women Paid Less?
Source: Census Bureau, January 2009.
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Chapter 9 | Slide 36
Types of Compensation




Hourly Wage
Weekly/Monthly Salary
Commissions
Incentive Payments
• Gain Sharing
• Merit Pay
 Lump-Sum Salary Increases
 Profit Sharing
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Chapter 9 | Slide 37
Employee Benefits
…a reward in addition to regular
compensation that is provided indirectly
to employees.
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Chapter 9 | Slide 38
Types of Benefits
 Pay for time not worked: vacation time,
holidays, sick leave
 Insurance packages: health, life, dental
 Pension/retirement programs
 Required by law: workers’ compensation,
unemployment insurance, Social Security
 Other: tuition reimbursement, credit unions,
child care, cafeteria, etc.
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Chapter 9 | Slide 39
Flexible Benefit Plans
…compensation plan whereby an
employee receives a predetermined amount
of benefit dollars to spend on a package
of benefits he or she has selected to
meet individual needs.
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Chapter 9 | Slide 40
Employee Training
…the process of teaching operations and
technical employees how to do their present
jobs more effectively and efficiently.
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Chapter 9 | Slide 41
Economic Constraints Take a
Toll on Training
Dollars Spent per Learner
1,300
1,250
1,200
1,150
1,100
1,050
1,000
950
2006
2007
2008
Source: Data from Karen O’Leonard, The Corporate Learning Factbook, 2009: Benchmarks, Trends
and Analysis of the U.S. Corporate Training Market, © 2009 Bersin & Associates.
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Chapter 9 | Slide 42
Management Development
…the process of preparing managers
and other professionals to assume
increased responsibility in both present
and future positions.
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Chapter 9 | Slide 43
Analysis of Training Needs
 Is training needed?
 Is the need for training or for motivation?
 If for training, what type?
• Technical skills
• Organizational procedures
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Chapter 9 | Slide 44
Training and Development Methods
 On-the-job
 Simulations
 Classroom teaching/lectures
 Conferences/seminars
 Role playing
 Evaluation + set objectives
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Chapter 9 | Slide 45
Performance Appraisal
…the evaluation of employees’ current
and potential levels of performance to
allow managers to make objective
human resources decisions.
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Chapter 9 | Slide 46
Evaluation Techniques
 Objective methods: measure quantity
 Judgmental methods: judge/estimate
performance level (used more frequently)
 Importance of avoiding appraisal errors
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Chapter 9 | Slide 47
Figure 9.3: Performance Appraisal
Source: Courtesy of 3M.
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Chapter 9 | Slide 48
Performance Feedback Interview
 Tell-and-Sell
 Tell-and-Listen
 Problem-Solving
 360-Degree Evaluation
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Chapter 9 | Slide 49
Table 9.2: Federal Legislation Affecting HRM
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Chapter 9 | Slide 50
Chapter Quiz
1.
The maintaining of human resources management consists
primarily of motivating employees through
a)
b)
c)
d)
e)
human resources planning.
recruiting.
compensation and benefits.
selection.
orientation.
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Chapter 9 | Slide 51
Chapter Quiz
2.
___________ refers to the differences among people in a
workforce due to race, ethnicity, and gender.
a)
b)
c)
d)
e)
Resource diversity
Human resources management
Cultural diversity
Job analysis
Workforce analysis
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Chapter 9 | Slide 52
Chapter Quiz
3.
A newer selection technique is the ____________, which puts
applicants in a simulated job situation for a day.
a)
b)
c)
d)
e)
employment test
structured interview
employee orientation
job center
assessment center
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Chapter 9 | Slide 53
Chapter Quiz
4.
The Camden Corp. wants to set an accurate wage level for
its employees. The information Camden is most likely to
consider is the
a)
b)
c)
d)
e)
wage level of its closest competition.
wage levels of noncompetitors in the immediate vicinity.
industry average.
wage levels of its foreign competition.
corporate average wage level.
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Chapter 9 | Slide 54
Chapter Quiz
5.
Title VII of the Civil Rights Act of 1964 applies directly to
a)
b)
c)
d)
e)
discrimination based on age.
wages.
equal pay for equal work.
selection and promotion.
employee health and safety.
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Chapter 9 | Slide 55