Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-31
and EARN LESS than permanent workers do.
a. Many temporary workers are offered full-time
positions.
b. Managers view using temporary workers as
a way of finding good hires.
5. Although exact data are unavailable, the use of
contingency workers appears to be increasing.
6. Many people, such as college students, find that
temporary work offers them more FLEXIBILITY
than a permanent position.
7. “Temping” may be a more secure situation in an
era of downsizing.
learning objective 6
Illustrate employee training and development methods.
VI. TRAINING AND DEVELOPING EMPLOYEES
FOR OPTIMUM PERFORMANCE
A. DESIGNING TRAINING AND DEVELOPMENT
PROGRAMS
1. TRAINING AND DEVELOPMENT involves all
attempts to improve performance by increasing
an employee’s ability to perform.
2. Spending for employee training is a good in-
vestment because it:
a. Leads to higher retention rates
b. Increases productivity
c. Improves job satisfaction among employees
3. TRAINING focuses on short-term skills.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-32
PPT 11-31
Students and the Contingent Work-
force
STUDENTS and the
CONTINGENT WORKFORCE
11-31
• When students come back
to town, they can call the
agency and ask them to
put their names into the
system for work.
LO 11-5
• With temporary staffing agencies, companies
have easier access to screened workers.
• Worker information is entered into their
databases.
MAKING
ethical
decisions
PPT 11-32
Intern or Inden-
tured Servant?
INTERN or
INDENTURED SERVANT?
11-32
• With few entry-level positions available, interns
can end up in an unpaid position for as long as
six months with no chance of advancement.
• Some businesses give interns lots of
responsibility; a Toronto paper fired all paid staff
and replaced them with unpaid interns.
• Is it ethical for companies to use unpaid interns if
they know they don’t have jobs to offer or if the
unpaid internships replace paid jobs?
test
prep
PPT 11-33
Test Prep
TEST PREP
11-33
• What are the five steps in human resource
planning?
• What factors make it difficult to recruit qualified
employees?
• What are the six steps in the selection process?
• Who is considered a contingent worker, and why
do company hire such workers?
PPT 11-34
Training and Developing
Employees
TRAINING and DEVELOPING
EMPLOYEES
11-34
LO 11-6
• Training and Development —
All attempts to improve
productivity by increasing an
employee
’
s ability to perform.
• Training focuses on short-term
skills.
• Development focuses on long-
term abilities.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-33
4. DEVELOPMENT focuses on long-term abilities.
5. The process of CREATING TRAINING AND
DEVELOPMENT PROGRAMS includes:
a. ASSESSING THE NEEDS of the organiza-
tion and the skills of the employees to de-
termine training needs
b. DESIGNING TRAINING ACTIVITIES to
meet the identified needs
c. EVALUATING THE EFFECTIVENESS of
the training
B. TRAINING AND DEVELOPMENT ACTIVITIES
1. ORIENTATION is the activity that introduces
new employees to the organization; to fellow
employees; to their immediate supervisors; and
to the policies, practices, and objectives of the
firm.
2. ON-THE-JOB TRAINING
a. ON-THE-JOB TRAINING is training at the
workplace that lets the employee learn by
doing, or by watching others for a while, and
then imitating them.
b. Salespeople are often trained by watching
experienced salespeople perform (SHAD-
OWING).
c. This type of training is EASY AND EFFEC-
TIVE for learning low-skill, repetitive jobs but
can BE DISASTROUS if used in areas de-
manding more knowledge and expertise.
d. Cost-effective on-the-job training programs
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-34
PPT 11-35
Three Steps of Training and
Development
THREE STEPS of TRAINING
and DEVELOPMENT
11-35
LO 11-6
1. Assessing organization needs and employee
skills to develop appropriate training needs.
2. Designing training activities to meet identified
needs.
3. Evaluating the training’s effectiveness.
PPT 11-36
Most Commonly Used Training and
Development Activities
MOST COMMONLY USED TRAINING
and DEVELOPMENT ACTIVITIES
11-36
LO 11-6
• Orientation
• On-the-Job Training
• Apprenticeships
• Off-the-Job Training
• Online Training
• Vestibule Training
• Job Simulation
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-35
can be created using INTRANETS.
e. Computer systems can monitor workers’ in-
put and provide feedback.
3. APPRENTICE PROGRAMS
a. APPRENTICESHIP PROGRAMS are train-
ing programs during which a trainee works
alongside an experienced employee to mas-
ter the skills and procedures of a craft.
b. In many skilled crafts, a new worker is re-
quired to serve several years as an AP-
PRENTICE.
c. Workers who successfully complete an ap-
prenticeship earn the classification of
JOURNEYMAN.
d. There may be more, but shorter, apprentice-
ship programs in the future, as jobs require
more intense training.
4. OFF-THE-JOB TRAINING are internal or exter-
nal training programs away from the workplace
that develop any of a variety of skills or to foster
personal development.
5. ONLINE TRAINING consists of training pro-
grams in which employees “complete” classes
via the Internet.
a. Educational institutes offer DISTANCE
LEARNING programs.
b. Employers can offer consistent content tai-
lored to specific training needs.
6. VESTIBULE TRAINING (near-the-job training) is
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-36
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-37
done in schools where employees are trained on
equipment similar to that used on the job.
7. JOB SIMULATION is the use of equipment that
duplicates the job conditions and tasks so that
trainees can learn skills before attempting them
on the job.
C. MANAGEMENT DEVELOPMENT
1. MANAGERS NEED SPECIAL TRAINING: They
must learn communication, planning, and human
relations skills.
2. MANAGEMENT DEVELOPMENT is the pro-
cess of training and educating employees to be-
come good managers and then monitoring the
progress of their managerial skills over time.
3. MANAGEMENT DEVELOPMENT PROGRAMS
include the following:
a. ON-THE-JOB COACHING by a senior man-
ager
b. UNDERSTUDY POSITIONS as assistants to
higher-level managers who participate in
planning and other managerial functions
c. JOB ROTATION exposing managers to dif-
ferent functions of the organization
d. OFF-THE-JOB COURSES AND TRAINING
exposing managers to the latest concepts
and creating a sense of camaraderie
D. NETWORKING
1. NETWORKING is the process of establishing
and maintaining contacts with key managers in
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-38
PPT 11-37
Developing Effective Managers
DEVELOPING EFFECTIVE
MANAGERS
11-37
LO 11-6
• Management Development — The process of
training and educating employees to become good
managers and monitoring the progress of their skills
over time.
• Management training includes:
– On-the-job coaching
– Understudy positions
– Job rotation
– Off-the-job courses and training
PPT 11-38
Why Good Employees Quit
WHY GOOD EMPLOYEES QUIT
Source: Robert Half International 11-38
LO 11-6
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-39
one’s own organization and in other organiza-
tions and using those contacts to weave strong
relationships that serve as informal development
systems.
2. A MENTOR is an experienced employee who
supervises, coaches, and guides lower-level
employees by introducing them to the right peo-
ple and generally being their organizational
sponsors.
3. Most mentoring is INFORMAL, but many organ-
izations use a formal system of assigning men-
tors.
4. Networking goes beyond the business environ-
ment and can start with making educational con-
tacts.
E. DIVERSITY IN MANAGEMENT DEVELOPMENT
1. Since most older managers are male, women of-
ten have more difficulty finding mentors and en-
tering the network.
2. “Men only” clubs were declared illegal by the
U.S. Supreme Court, allowing women ACCESS
TO AREAS WHERE CONTACTS ARE MADE.
3. African American and Hispanic managers are
also learning the benefits of networking.
4. Other ethnic groups can also use networking.
5. PRINCIPLES TO DEVELOP FEMALE AND
MINORITY MANAGERS:
a. Grooming women and minorities for man-
agement positions is more than a legal or
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-40
PPT 11-39
Using Networks and Mentoring
USING NETWORKS and
MENTORING
11-39
LO 11-6
• Networking — Establishing and maintaining contacts
with key managers in and out of the organization and
using those contacts to develop relationships.
• Mentors — Managers who supervise, coach and
guide selected lower-level employees by acting as
corporate sponsors.
• Networking and mentoring go beyond the work
environment.
critical thinking
exercise 11-4
DIVERSITY IN MANAGEMENT
This exercise directs students to the federal government’s Bu-
reau of Labor Statistics website to identify the current statis-
tics on the percentage of minority managers in the workforce.
(See the complete exercise on page 11.98 of this manual.)
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-41
moral issue–it is about bringing in more tal-
ent.
b. The best women and minorities will become
harder to attract and retain.
c. Having more women and minorities means
that businesses can serve female and mi-
nority customers better.
learning objective 7
Trace the six steps in appraising employee performance.
VII. APPRAISING EMPLOYEE PERFORMANCE TO
GET OPTIMUM RESULTS
A. A PERFORMANCE APPRAISAL is an evaluation
that measures employee performance against es-
tablished standards to make decisions about promo-
tions, compensation, additional training, or firing.
B. SIX STEPS OF PERFORMANCE APPRAISALS:
1. ESTABLISHING PERFORMANCE STAND-
ARDS that are understandable, measurable,
and reasonable
2. COMMUNICATING THOSE STANDARDS to
employees
3. EVALUATING PERFORMANCE
4. DISCUSSING RESULTS WITH EMPLOYEES
5. TAKING CORRECTIVE ACTION or providing
feedback
6. USING THE RESULTS TO MAKE DECISIONS
C. The latest form of performance appraisal is the 360–
DEGREE REVIEW because it uses feedback from
all directions in the organization: up, down, and all
around.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-42
critical thinking
exercise 11-5
BEST COMPANIES FOR WORKING
MOMS
Working Mother magazine ranks the best companies for work-
ing mothers. This exercise directs students to research the In-
ternet for the year’s current winners. (See the complete exer-
cise on page 11.99 of this manual.)
PPT 11-40
Appraising Performance on the Job
APPRAISING PERFORMANCE
on the JOB
• Performance Appraisal — An evaluation that
measures employee performance against established
standards in order to make decisions about
promotions, compensation, training or termination.
11-40
LO 11-7
• A 360-degree review
gives managers
opinions from people at
different levels to get a
more accurate idea of
the worker’s ability.
PPT 11-41
Six Steps of Performance
Appraisals
SIX STEPS of PERFORMANCE
APPRAISALS
11-41
LO 11-7
1. Establishing performance standards that are
understandable, measurable and reasonable.
2. Clearly communicating those standards.
3. Evaluating performance against the standards.
4. Discussing the results with employees.
5. Taking corrective action.
6. Using the results to make decisions.
PPT 11-42
Do’s and Don’t’s of Performance
Appraisals
TEXT FIGURE 11.5
Conducting Effective Appraisals
and Reviews
DOs and DON’Ts of
PERFORMANCE APPRAISALS
11-42
LO 11-7
PPT 11-43
Major Uses of Performance
Appraisals
MAJOR USES of
PERFORMANCE APPRAISALS
11-43
LO 11-7
• Identify training needs
• Use as a promotion tool
• Recognize worker’s achievements
• Evaluate the firm’s hiring process
• Judge the effectiveness of the firm’s orientation
process
• Use as a basis for possible termination of a
worker
PPT 11-44
Performance Appraisal Mistakes
PERFORMANCE APPRAISAL
MISTAKES
Common Problems Made While Reviewing Employees
11-44
LO 11-7
• Contrast Effect – Comparing one employee to
another.
• Halo/Horn Effect – Allowing performances in specific
areas to unfairly influence overall performance
evaluation.
• Similar-to-Me Effect – Generosity to those you feel
are more like you.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-43
learning objective 8
Summarize the objectives of employee compensation programs, and evaluate
various pay systems and fringe benefits.
VIII. COMPENSATING EMPLOYEES: ATTRACTING
AND KEEPING THE BEST
A. Companies compete for employees.
1. COMPENSATION is one of the main marketing
tools used to attract qualified employees.
a. The long-term success of a firm may depend
on how well it can CONTROL EMPLOYEE
COSTS and OPTIMIZE EMPLOYEE EFFI-
CIENCY.
b. For service operations, the cost of labor is
the largest cost item.
c. Manufacturing firms in some industries have
asked employees to take reductions in wag-
es to make the firm more competitive.
d. COMPENSATION and BENEFIT PACK-
AGES are being given special attention.
e. Corporate downsizing has made tailoring
compensation packages more important
than ever.
2. The OBJECTIVES of compensation and benefit
programs include:
a. ATTRACTING THE KINDS OF PEOPLE
NEEDED in sufficient numbers
b. Providing employees with the INCENTIVE
TO WORK EFFICIENTLY AND PRODUC-
TIVELY
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-44
test
prep
PPT 11-45
Test Prep
TEST PREP
11-45
• Name and describe four training techniques.
• What’s the primary purpose of a performance
appraisal?
• What are the six steps in a performance
appraisal?
PPT 11-46
Compensation Programs
COMPENSATION PROGRAMS
11-46
LO 11-8
• A managed and competitive compensation
program helps:
– Attract the kinds of employees the business needs.
– Build employee incentive to work efficiently and
productively.
– Keep valued employees from going to competitors or
starting their own firm.
– Maintain a competitive market position by keeping costs
low due to high productivity from a satisfied workforce.
– Provide employee financial security through wages and
fringe benefits.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-45
c. KEEPING VALUED EMPLOYEES from
leaving the company
d. MAINTAINING A COMPETITIVE POSITION
by keeping costs low by increasing produc-
tivity
e. Providing employees with some sense of
FINANCIAL SECURITY
B. PAY SYSTEMS
1. An organization’s pay system can have a dra-
matic effect on efficiency and productivity.
2. Many companies use the HAY SYSTEM.
a. Compensation is based on job tiers, each of
which has a strict pay range.
b. The system is set up on a POINT BASIS
with three key factors:
i. Know-how
ii. Problem solving
iii. Accountability
3. Another system lets workers pick their own pay
system.
C. COMPENSATING TEAMS
1. Compensating teams is a complex issue.
2. Measuring and rewarding individual perfor-
mance on teams is tricky.
a. Pay based strictly on INDIVIDUAL PER-
FORMANCE erodes team cohesiveness.
b. Experts recommend basing pay on TEAM
PERFORMANCE.
3. SKILL-BASED PAY is related to the growth of