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Ch.9 Attracting and Retaining the Best Employees (Recruiting – the process…
Ch.9 Attracting and Retaining the Best Employees
Human Resource Management (HRM)
-all activities involved in acquiring, maintaining, and developing an organization's human resource.
HRM includes separate activites:
Human resources planning
– determining the firm’s future human resources needs
Job analysis
– determining the exact nature of the positions
Recruiting
– attracting people to apply for positions
Selection
– choosing and hiring the most qualified applicants
Orientation
– acquainting new employees with the firm
Compensation
- reward employee effort through payments
Benefits
-providing rewards to ensure employee well-being
Employee Relations
-increasing employee job satisfaction through satisfaction surveys, employee communication programs, exit interviews, and fair treatment.
Performance appraisal
– assessing employees’ current and potential performance levels
Training and development
– teaching employees new skills and new jobs, and more effective ways of performing their present jobs
Employee benefit
– a reward in addition to regular compensation that is provided indirectly to employees
Flexible benefit plan
– compensation plan whereby an employee receives a predetermined amount of benefit dollars to spend on a package of benefit he or she has selected to meet individual needs
Human resources planning
– the development of strategies to meet a firm’s human resources needs
2 techniques forecasting human resource supply:
Replacement chart
– a list of key personnel and their possible replacements within a firm
Skills inventory
– a computerized data bank containing information on the skills and experience of all present employees
Match supply with demand when supply of employees is greater than demand:
-Layoff
-Attrition
-Early retirement
-Buyouts
-Firing
Cultural (or workplace) diversity
– differences among people in a workforce owing to race, ethnicity, and gender
Job analysis
– a systematic procedure for studying jobs to determine their various elements and requirements
Job analysis consists of
:
Job description
– a list of the elements that make up a particular job
Job specification
– a list of the qualifications required to perform a particular job
Wage survey
– a collection of data on prevailing wage rates within an industry or a geographic area
Job evaluation
– the process of determining the relative worth of the various jobs within a firm
Comparable worth
– a concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills
Compensation
– the payment employees receive in return for their labor
Compensation system
– the policies and strategies that determine employee compensation
Hourly wage
– a specific amount of money paid for each hour of work
Salary
– a specific amount of money paid for an employee’s work during a set calendar period, regardless of the actual number of hours worked
Commission
– a payment that is a percentage of sales revenue
Incentive payment
– a payment in addition to wages, salary, or commissions
Lump
-sum salary increase – an entire pay raise taken in one lump sum
Profit-sharing
– the distribution of a percentage of a firm’s profit among its employees
Types of Compensation
:
Recruiting
– the process of attracting qualified job applicants
External recruiting
– attracting job applicants from outside an organization
Advantage
:Brings people into a firm who have new perspectives and varied business backgrounds
Disadvantages
:Is often expensive, May provoke resentment among present employees
Internal recruiting
– considering present employees as applicants for available positions
Advantages:
Provides strong motivation for current employees, Helps the firm to retain quality personnel
Disadvantages
: Leaves another position open
Thus, the firm not only incurs recruiting and selection costs, but it also must train two employees instead of one.
Selection
– the process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant
Orientation
– the process of acquainting new employees with an organization
Employee training
– the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently
Management development
– the process of preparing managers and other professionals to assume increased responsibility in both present and future positions
Performance appraisal
– the evaluation of employees’ current and potential levels of performance to allow managers to make objective human resources decisions