Hiring, Training and

Evaluating Employees

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Hiring, Training, and Evaluating Employees

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 Human Resource Planning
Human Resource Planning
Def: Planning to satisfy a firm’s needs for employees
1. Forecasting staffing needs
2. Job analysis
– Determining the tasks and the necessary credentials for a
particular position
 Job specification states the credentials needed to
qualify for a position.
 Job description states the tasks, duties and
responsibilities of a job position.
3. Recruiting 3
 Recruiting
• Goal of recruiting is to ensure an adequate supply of
qualified candidates for employment.
– A human resource manager helps each specific department
recruit candidates for its open positions.

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 Internal Recruiting
• Internal recruiting
– Attempts to fill open positions with persons already employed
by the firm.
– Benefits of internal recruiting
 Existing
employees are known and their capabilities
have been assessed.
 Potential
for advancement can motivate employees
to perform well and reduces avoidable job turnover.

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 External Recruiting
• External recruiting
– An effort to fill positions with applicants from outside the firm
 Do not have as much information about outside
candidates.
 Helps overcome inbreeding of employee ideas and
attitudes.
 May be required to fill new positions with job
requirements requiring skills that no current
employees possess.

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 Recruiting and Screening
• Screening applicants
1. Assess each application to screen out unqualified
applicants.
2. Interview applicants to assess personality characteristics,
punctuality, communication skills, and attitude.
3. Contact applicants’ references.
4. Use employment tests to assess candidates’ abilities.
5. Make the hiring decision.

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 Interview Questions
• They are reflective of a company’s primary focus. Listen closely to
understand the culture.
• Microsoft Interview Questions
– Why is a manhole cover round?
– How many cars are there in the USA?
– You've got someone working for you for seven days and a gold bar to pay
them. The gold bar is segmented into seven connected pieces. You must give
them a piece of gold at the end of every day. If you are only allowed to make
two breaks in the gold bar, how do you pay your worker?

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 Mastered these yet?
• One train leaves Los Angeles at 15mph heading for New York. Another train leaves from New
York at 20mph heading for Los Angeles on the same track. If a bird, flying at 25mph, leaves
from Los Angeles at the same time as the train and flies back and forth between the two trains
until they collide, how far will the bird have traveled?
• Imagine a disk spinning like a record player turn table. Half of the disk is black and the other is
white. Assume you have an unlimited number of color sensors. How many sensors would you
have to place around the disk to determine the direction the disk is spinning? Where would
they be placed?
• Imagine an analog clock set to 12 o'clock. Note that the hour and minute hands overlap. How
many times each day do both the hour and minute hands overlap? How would you determine
the exact times of the day that this occurs?
• If you had an infinite supply of water and a 5 quart and 3 quart pail, how would you measure
exactly 4 quarts?

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 More Questions
• Write a function to print all of the permutations of a string.
• Implement malloc.
• Write a function to print the Fibonacci numbers.
• Write a function to copy two strings, A and B. The last few bytes of
string A overlap the first few bytes of string B.
• How would you write qsort?
• How would you print out the data in a binary tree, level by level,
starting at the top?

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Steps for Screening Job
Applicants

Exhibit 11.3 11
Summary of Tasks Involved in Human
Resource Planning

Exhibit 11.4 12
 Providing Equal Opportunity
• Managers must not discriminate in selection based on
factors unrelated to job performance.
– Such discrimination is illegal.
– Discrimination may reduce employee efficiency.

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 Benefits of Diversity
• Diversity incentives
– Diversity increases innovation.
– Employees in diverse workplace are more likely to
understand different points of view and interact well with
diverse customers.
– A larger percentage of eligible employees will be from
minority groups in the future.

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 Federal Laws Related to Discrimination

• Equal Pay Act of 1963

– Men and women performing similar work must receive the
same pay.
• Civil Rights Act of 1964
– Prohibits discrimination based on race, gender, religion, or
national origin.
• Age Discrimination in Employment Act of 1967
(amended 1978)
– Prohibits employers from discriminating against people who
are 40 years old or older.

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 Federal Laws Related to Discrimination

• Americans with Disabilities Act (ADA) of 1990

– Prohibits discrimination against people who are disabled.
• Civil Rights Act of 1991
– Enables women, minorities, and disabled people who believe
that they have been subject to discrimination to sue firms.
• Federal laws have helped encourage firms to make
hiring decisions without discriminating.

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 Compensation Packages
• Total monetary compensation and benefits offered to
employees
– Salary
– Stock options
– Commissions
– Bonuses
– Profit sharing
– Employee benefits
– Perquisites (perks)

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How Forms of Compensation Can Vary
across Job Descriptions

Exhibit 11.7 18
 Developing Skills of Employees
• Firms that invest in training programs for their
employees are more profitable.
– Technical skills training
– Decision-making skills training
– Customer service skills training
– Safety skills training
– Human relations skills training

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 Evaluation of
Employee Performance

• Performance evaluation
– Provides a method for allocating raises
– Can be used to give feedback and direction to
employees
– Indicates an employee’s strengths and
weaknesses
– May influence an employee’s chances of being
promoted within the firm in the future
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Direct Measures of Performance

Exhibit 11.8 21
 Performance Evaluation
• Segment the evaluation into relevant individual criteria
for each job position
– Use objective versus subjective criteria.
– Assign weights to criteria and rate employee on criteria.
– Helps pinpoint employee strengths, weaknesses, and areas
for improvement.
– Use a performance evaluation form to ensure collection and
retention of evaluation information.

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 Proper Performance Evaluation
• Follow specific steps to demonstrate fairness and satisfy
legal guidelines for recognizing employee rights:
– Communicate job responsibilities to employees at time of
hiring.
– Inform employees of deficiencies and provide opportunity for
employees to respond to criticism.
– Supervisors must be consistent when conducting
performance evaluations.

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Developing an Overall Rating

Exhibit 11.10 24
 Actions Due to
Performance Evaluations
• Acknowledge outstanding performance
with recognition or promotion
• Determine reasons for poor performance
and take corrective action
– If deficiencies can not be corrected,
supervisors may need to take other action:
 Reassign employee to different job.
 Suspend employee temporarily.
 Fire employee. 25
 Employee Lawsuits
• A fired employee may sue because of:
– A lack of due process
– Discrimination based on race, gender, age, religion, or
national origin
• Complaints filed with EEOC/court
– Court system has not effectively separated frivolous cases
from those with merit.
– Training programs and effective performance evaluation
processes reduce the chances of lawsuits.

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 Employee Evaluation
of Supervisors
• Allowing employees to evaluate their
supervisors by using upward appraisals
– Most effective if done anonymously
– Evaluations can be used to measure the
managerial abilities of supervisors
– Evaluations can also pinpoint deficiencies to
be corrected in order to improve

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 Chapter Summary
• Human resource planning involves forecasting HR needs, job analysis
and recruiting.
• Compensation packages can include salary, stock options,
commissions, bonuses, profit sharing, employee benefits, and
perquisites.
• After hiring, employers provide training in technical, decision making,
customer service, safety, and human relations skills.
• Performance evaluations should be discussed with employees.

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Example of How a Strike Can
Affect a Firm’s Value

Exhibit 11.A1 29
Managing Employees

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