Chapter 9 (tracing and retaining the best employees) Flashcards
Human Resource management
All the activities involved in acquiring, maintaining, and developing an organisation’s human resources
Acquiring staff
- Human resources planning
Determining the firm’s human resource needs - Job analysis
Determining the exact nature of positions - Recruiting
Attracting people to apply for positions - Selection
Choosing and hiring the most qualified applicants - Orientation
Acquainting new employees with the firm
Maintaining staff
- Employee relations
Increased job satisfaction through surveys, interviews, fair treatment, worker communication program - Compensation
Financial reward for input (salaries, wages) - Benefits
Financial benefits (pension/medical) or non-financial (recreational facilities) which all contribute to employee wellness
Development
- Training and development
Training employees in respect of new skills / new tasks – the purpose is that employees are more effective. - Performance appraisal
A systematic method to determine the current and future efficiency of employees of the business.
Responsibility of HR
Joint responsibility
Determined by the size of the business
Both line managers and HR manager
HR Planning
- Development of strategies to comply with a business’ future HR needs
- It starts with a strategic plan
- Expected DEMAND for HR
The strategic plan provides important information - Expected SUPPLY of HR
Replacement schedule
Survey of skills - Expected DEMAND vs. SUPPLY is used to develop a plan of action for HR planning
- Demand > Supply
Recruitment - Supply > Demand
Layoffs: employees are discharged until needed again
Resignations: employees leave the business
Early retirement: receive full benefits
Discharges: last resort, employees no further needed
Culture and Diversity in HR
- Diversity in the workplace due to ethnic, race and gender differences between employees
- Could be challenging
- Management needs to consider a broader set of value systems when it comes to leading and motivation
- Management needs to see it as an opportunity
- Advantages of cultural diversity
Cost advantages, resources, marketing, flexibility, creativity, problem-solving
Job Analysis
The process of gathering all relevant information pertaining to a specific job in order to find the appropriate candidate
Components:
1. Job description
A written document which indicates WHAT the employee needs to do, HOW it should be done, and under which CIRCUMSTANCES the task should be performed
2. Job specification
Developed from the job description; a list of the qualifications required to perform a particular job (such as skills, abilities, experience, and personality)
Recruitment
Identifying the appropriate number of qualified candidates for current and future jobs
Number of candidates vs. number of jobs available
Sources:
1. Internal sources (promotions, transfers, recommendations by colleagues)
2. External sources (recruitment agencies, newspapers, schools, universities, online applications, referrals)
Selection
The process through which the most appropriate person is selected from all the candidates
Obtain information through:
1. Employment applications
2. Interviews
3. Referrals
4. Assessment centres
Applications
1. Factual information: education, experience, history
2. Resume: one to two-page summary of the candidate’s background and qualifications
Employment tests
1. Written / oral tests in which aptitude, skills, abilities and knowledge of the specific job are assessed
2. Personality/intelligence tests
Interviews
1. Most often used selection technique
2. Can meet applicants on a personal level in order to eliminate not suitable candidates early.
3. Both parties obtain more information
Referrals
1. Candidates have to provide contact details of references (such as the previous employer)
Assessment centres
1. Identification of existing employees that could be promoted to more senior positions
2. These employees are sent for a certain period to centres
Orientation
The process of acquainting new employees with an organisation
Overview of the business’ policies, Compensation, benefits, safety, labour relations
May be brief and informal or long and formal
Compensation
Refers to that what the employee will receive in return for his/her input
Effective Compensation system based on three managerial decisions:
1. Wage/salary level
Survey
2. Wage/salary structure
Job assessment
Skills and responsibility
Manager versus secretary
3. Individual wages
Based on seniority, qualifications and performance
Comparable worth
A concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills
Some labour laws require the above
Types of compensation
Types of Compensation (financial)
Hourly
Weekly / Monthly
Commission
Incentive payment
Lump-sum payments
Profit sharing
Employees benefits
Indirect rewards in addition to regular compensation that is provided to employees
Types of employee benefits
Types of benefits
1. Pay for time not worked
Vacation time, holidays, and sick leave
2. Insurance packages
Health, life insurance
3. Pension and Retirement programs
Costs may be shared or fully paid by the employer
4. Required by law
Workers’ compensation, unemployment insurance
5. Other benefits
Cafeterias, exercise rooms, nursery, special benefits
