Business 102 Final Exam # 2
1) establish performance standards 2) communicate those standards 3) compare performance to standards 4) discuss results 5) take corrective action when needed 6) use the results for decisions about promotions, compensation, additional training, or firing
What are the steps managers use in evaluating performance? (six steps of performance appraisals)
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
What are the three steps of training and development?
Healthcare
What has been the most significant increase in fringe benefit costs?
cafeteria-style fringe benefits
fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount
human resource management (HRM)
the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals
selection
the process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization
Some examples of such plans include job sharing, flextime, compressed workweeks, and working at home.
What are examples of scheduling plans that can adjust work to employees' need for flexibility?
- It will help build employee incentive to work efficiently and productively - It will keep valued employees from going to competitors or from starting their own firms - It will provide employee financial security through wages and fringe benefits
What are some advantages of a compensation program?
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
What are some common performance appraisal mistakes?
salary systems, hourly wages, piecework, commission plans, bonus plans, profit-sharing plans, and stock options
What are some common types of compensation systems?
- It is difficult to incorporate into shift work and managers have to work longer hours - Communication among employees can be difficult under flextime & managers have to be alert to any system abuses
What are some difficulties with using flextime plans?
Sick leave, vacation pay, company cars, pension plans, & health plans that provide additional compensation to employees beyond base wages.
What are some examples of fringe benefits?
Training activities include employee orientation, on & off-the-job training, apprentice programs, online training, vestibule training, and job simulation
What are some examples of training activities?
Management development methods include on-the-job coaching, understudy positions, job rotation, and off-the-job courses & training.
What are some management development methods that help develop managerial skills?
- Provides employment opportunities for many people who cannot work full time - Workers tend to be enthusiastic and productive - Absenteeism and tardiness are reduced - Employers can schedule part-time workers in peak demand periods
What are the benefits of job sharing?
1) a shortage of trained workers in key areas 2) worker shortage in skilled trades 3) an increasing number of baby boomers who delay retirement 4) a declining economy with fewer full-time jobs 5) expanding global markets with low-wage workers 6) increasing benefit demands and benefit costs 7) a decreased sense of employee loyalty
What are the challenges to finding high-level workers?
- To identify training needs - To use as a promotion tool - To recognize worker's achievements - To evaluate the firm's hiring process - To judge the effectiveness of the firm's orientation process - To use as a basis for possible termination of a worker
What are the major uses of performance appraisals?
1) obtaining complete application forms 2) conducting initial and follow-up interviews 3) giving employment tests 4) conducting background investigations 5) obtaining results from physical exams 6) establishing a trial period of employment
What are the six steps in the employee selection process?
1) preparing a human resource inventory of the organization's employees 2) preparing a job analysis 3) assessing future demand 4) assessing future supply 5) establishing a plan for recruiting, hiring, educating, appraising, compensating, and scheduling employees
What are the steps in human resource planning?
Internal or external recruiting sources
What are the two types of recruiting sources that human resource managers use to recruit new employees?
- Skill-Based: pay is increased as skill increases - Gain-Sharing: pay is increased as performance increases
What are two common methods used for team-based compensation pay programs?
- Passage in 2008 of Americans with Disabilities Amendments Act expanded protection - 2011 saw new regulations that widen the range of disabilities covered by the ADA and shift the burden of proof of disability from employees to employers
What are updates on the ADA?
It amended Title VII and gave victims of discrimination the right to a jury trial and possible damages
What did the Civil Rights Act of 1991 do?
They let employees choose the benefits they want, up to a certain dollar amount
What do cafeteria-style fringe benefits plans do?
advertisements, public and private employment agencies, college placement bureaus, management consultants, professional organizations, referrals, walk-in applications, and the Internet
What do external recruiting sources include?
Those hired from within (transfers, promotions, reassignments) and employees who recommend others to hire
What do internal recruiting sources include?
Title VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on: race, religion, creed, sex, age, & national origin
What does the Civil Rights Act of 1964 do?
- Created in 1972 & strengthened the Equal Employment Opportunity Commission (EEOC) - Gave EEOC the right to issue workplace guidelines for acceptable employer conduct - EEOC could mandate specific recordkeeping procedures - EEOC was vested with the power of enforcement
What does the Equal Employment Opportunity Act (EEOA) do?
- The Office of Federal Contract Compliance Programs - It ensures that employers doing business with the federal government comply with the nondiscrimination and affirmative action laws.
What is OFCCP and what does it do?
- The Occupational Safety and Health Act of 1970 - It regulated the degree to which employees can be exposed to hazardous substances and specified the safety equipment the employer must provide
What is OSHA?
They both require employees with highly technical job skills
What is special about service & high-tech manufacturing?
- The Americans with Disabilities Act of 1990 - It requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities
What is the ADA?
- Age Discrimination in Employment Act - Protects workers 40 and over from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments, & training
What is the ADEA?
- The Family and Medical Leave Act of 1993 - It says that businesses with 50 or more employees must provide up to 12 weeks of unpaid leave per year upon birth or adoption of an employee's child or upon serious illness of a parent, spouse, or child.
What is the Family Act?
Training focuses on short-term skills, development focuses on long-term abilities.
What is the difference between training and development?
ALL managers in an organization must take on the human resource job
What managers in an organization are responsible for the job of human resources?
The most common are gain-sharing and skill-based compensation programs. Managers also reward outstanding individual performance within teams.
What types of compensation are appropriate for teams?
during uncertain economic times, to save on employee benefits, during periods of peak demand, when full-time workers are on leave
When do companies hire contingent workers?
fringe benefits
benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation beyond base wages
changing demographics: more women, minorities, immigrants & older workers in the workforce. Also: 1) shortage of trained workers 2) an abundance of unskilled workers 3) skilled workers in declining industries requiring retraining 4) changing employee work attitudes 5) complex laws and regulations
current challenges & opportunities in the human resource area?
orientation
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
networking
the process of establishing and maintaining contacts with key managers in and outside the organization and using those contacts to weave strong relationships that serve as informal development systems
management development
the process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time
recruitment
the set of activities used to obtain a sufficient number of the right employees at the right time
job simulation
the use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job
on-the-job training
training at the workplace that lets the employee learn by doing or by watching others for a while and then imitating them.
vestibule training
training done in schools where employees are taught on equipment similar to that used on the job
apprentice programs
training programs during which a learner works alongside an experienced employee to master the skills and procedures of a craft
online training
training programs in which employees complete classes via the Internet
Employees can be moved up through PROMOTION, moved over through REASSIGNMENT, or moved out through TERMINATION OR RETIREMENT. They can also choose to leave a company to pursue opportunities elsewhere.
How can employees move within a company?
- Worker information is entered into company databases. When students come back to town, they can call the agency and ask them to put their names into the system for work. - With temporary staffing agencies, companies have easier access to screened workers
How do temporary staffing agencies work and what are their advantages?
core time
In a flextime plan, the period when all employees are expected to be at their job stations
job analysis
a study of what employees do who hold various job titles
1) increased recognition of employees as a resource 2) changes in law that rewrote old workplace practices
Why has human resource management's role grown?
Legal restrictions complicate hiring and firing practices. Finding suitable employees becomes more difficult if companies are considered unattractive workplaces.
Why has recruitment become more difficult?
job description
a summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions
job specifications
a written summary of the minimum qualifications required of workers to do a particular job
training and development
all attempts to improve productivity by increasing an employee's ability to perform. Training focuses on short-term skills, whereas development focuses on long-term abilities
job sharing
an arrangement whereby two part-time employees share one full-time job
performance appraisal
an evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination
mentor
an experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor
reverse discrimination
discrimination against members of a dominant or majority group (e.g. whites or males) usually as a result of policies designed to correct previous discrimination against minority or disadvantaged groups
contingent workers
employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students
affirmative action
employment activities designed to "right past wrongs" by increasing opportunities for minorities and women
off-the-job training
internal or external training programs away from the workplace that develop any of a variety of skills or foster personal development
compressed workweek
work schedule that allows an employee to work a full number of hours per week but in fewer days
flextime plan
work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours or complete their assigned tasks
