Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Chapter 12

Human Resource Management:Finding and Keeping the Best Employees

Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Learning Goals

1. Explain the importance of human resource management as a strategic contributor to organizational success, and summarize the five steps in human resource planning.

2. Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging.

3. Outline the five steps in selecting employees, and illustrate the use of various types of employee training and development methods.

4. Trace the six steps in appraising employee performance, and summarize the objectives of employee compensation programs.

5. Describe the ways employees can move through a company: promotion, reassignment, termination, and retirement.

6. Illustrate the effects of legislation on human resource management.

Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Human Resource Management (HRM)

Part of the strategic process Determining human resource needs Recruiting Selecting Developing Motivating Evaluating Compensating Scheduling to…………..

Achieve Organizational Goals

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Determining HR Needs: 5 Steps

1. Prepare HR inventory

2. Prepare job analysis, description, specification

3. Assess future human resource demand

4. Assess future supply

5. Establish a strategic plan

Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Hiring Process

o Recruito Select

• Application form

• Interview• Test• Investigate• Probation

o Train/develop• Orientation• On-the-job training• Apprenticeship• Off-the-job training• Online training• Vestibule training• Job simulation

Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Recruiting

External Sources

•Management consultants

•Employment agencies

•New graduates

•Former employees

•Competition

•Business associates

•Internships

•Internet

HR Department Internal Sources•Transfers

•Promotions

•Recommendations

•Retrained employees

•Reorganizations

Selection

Hiring

Orientation and Training

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Training and Development

o Orientationo On-the-jobo Apprenticeshipo Off-the-jobo Onlineo Vestibuleo Job simulation

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Performance Appraisal:Six Steps

1. Establish performance standards

2. Communicate standards

3. Evaluate performance

4. Discuss results

5. Take corrective action

6. Use results to make decisions

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Compensating Employees

Pay equity

Pay systems

Compensating teams

Fringe benefits

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Scheduling Employees to Meet Organizational and Employee Goals

Flextime plans Home-based and other mobile work Job-sharing Promoting and reassigning

employees Retiring employees Losing employees

Nickels 6e/Copyright © 2007 McGraw-Hill Ryerson

Laws Affecting Human Resource Management

o Employment equity, reverse discrimination

o Laws that protect the disabled

o Laws that protect older employees

o Effects of legislation