GEB1101:M4-C9: Attracting and Retaining the Best Employees

Human Resources Planning Forecasting HR Demand

-The firm's overall strategic plan -The firm's past history of staffing levels -Evolving technologies -Industry staffing practices -Projected economic trends HR staff determine both the number of employees needed and their qualifications

Human Resources Planning Matching supply with demand

1-If demand is greater than supply, then the firm must recruit and select new employees 2-If supply is greater than demand, then the firm must prepare plans to reduce the workforce through Layoffs: dismissing employees from the workforce until they are needed again Attrition: normal reduction of the workforce that occurs when employees leave the firm Early retirement: allowing or encouraging persons to retire early with full benefits Firing may be necessary to remove excess employees from the workforce

Recruiting, Selection, and Orientation - Internal recruiting

1-Promotion or transfer 2-Job posting may be required by policy or union contract 3-Advantages Provides motivation for current employees Helps retain quality personnel 4-Disadvantages Cost of filling the newly vacant position Cost of training another employee

Recruiting, Selection, and Orientation - Employment applications

1-Provide useful factual information about the applicant 2-Information gathered is used for -Identifying applicants worthy of further scrutiny -Familiarizing interviewers with applicant backgrounds 3-Often include résumés 4-Employment tests Focus on aptitude, skills, abilities, and knowledge relevant to the job For a test to be nondiscriminatory, it must be job-related and validated as an accurate predictor of job performance 5-Interviews The most widely used selection technique Opportunity for applicants and the firm to learn more about each other For interviews to be nondiscriminatory, a structured interview format is recommended 6-References Used to verify information furnished by the applicant about previous job responsibilities and the reason for leaving their previous job 7-Assessment Centers Used to select current employees for promotion to higher-level management positions Employees participate in simulated management activities and are observed and evaluated by other senior managers 8-Orientation The process of acquainting new employees with an organization May be brief and informal or long and formal 9-Topics Range from location of company cafeteria to career paths within the firm

Recruiting, Selection, and Orientation - External Recruiting

1-Sources Websites, newspaper ads, employment agencies, college campuses, employee referrals, open houses, walk-in applicants 2-Advantages Fresh perspectives and varied backgrounds of new hires Attracting applicants with the required skills and knowledge 3-Disadvantages Expense May cause resentment among existing employees

Performance Feedback Approaches to performance feedback

1-Tell-and-sell Superior tells the employee how well or poorly the employee is performing and attempts to persuade the employee to accept the evaluation Supervisor tells the employee about his or her performance and then gives the employee a chance to respond 2-Problem-solving approach Employee evaluates own performance and sets own goals; supervisor offers comments and goals are mutually established 3-Mixed interview Tell-and-sell to communicate administrative decisions Problem-solving to discuss employee-development issues and future goals 4-360-degree evaluation Employee is provided feedback from evaluations by his superiors, peers, and subordinates

Identify the steps in human resources planning.

1-The organization's overall strategic plan is the starting point of the process. 2-human resource planners can forecast future demand for human resources. 3-the planners must determine whether the needed human resources will be available. 4-Finally, they have to take steps to match supply with demand.

Human Resources Planning Forecasting human resources supply

1. Factors affecting HR supply The firm's present workforce and any internal changes or movements 2. Supply forecasting techniques Replacement chart List of key personnel and their possible replacements within the firm Skills inventory Computerized data bank containing information on the skills and experience of all present employees

Interview Questions That May Be Difficult to Answer

1. Tell me about yourself 2. What do you know about your organization 3. What can you do for us? Why should we hire you? 4. What qualifications do you have that make you feel that you will be successful in your field? 5. What have you learned from other jobs that you have held? 6. If you could write your own ticket, what would be your ideal job? 7. What are your special skills and how did you acquire them? 8. Have you had any special accomplishments in your lifetime that you are particularly proud of? 9. Why did you leave your most recent job? 10. How do you spend your spare time? What are your hobbies? 11. What are your strengths and weaknesses? 12. Discuss five major accomplishments? 13. What kind of box would you like? Why? 14. If you could spend a day with someone you have known or known of, who would it be? 15. What personality characteristics rub you the wrong way? 16. How do you show your anger? What type of things, make you angry? 17. With what type of person do you spend the majority of your time? 18. What activities have you ever quit? 19. Define cooperation.

Outline the major legislation affecting human resources management.

A number of laws have been passed that affect HRM practices and that protect the rights and safety of employees. Some of these are the National Labor Relations Act of 1935, the Labor-Management Relations Act of 1947, the Fair Labor Standards Act of 1938, the Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Acts of 1967 and 1986, the Occupational Safety and Health Act of 1970, the Employment Retirement Income Security Act of 1974, the Worker Adjustment and Retraining Notification Act of 1988, the Americans with Disabilities Act of 1990, the Civil Rights Act of 1991, and the Family and Medical Leave Act of 1993.

Job Analysis

A systematic procedure for studying jobs to determine their various elements and requirements Job description A list of the elements that make up a particular job Duties to be performed, working conditions, the jobholder's responsibilities, the tools and equipment used on the job Job specification A list of the qualifications required to perform a particular job Skills, abilities, education, and experience Used for recruiting, selecting, evaluation, and compensation decisions

Required retirement before age 70 was outlawed in the Age Discrimination in Employment Act. Equal Pay Act. Fair Labor Standards Act. Employee Retirement Income Security Act. Civil Rights Act.

Age Discrimination in Employment Act.

Affirmative Action (a series of executive orders)

Applies to all employers with fifty or more employees holding federal contracts in excess of $50,000 Such employers must -actively encourage job applications from members of minority groups -hire qualified employees from minority groups not fully represented in the organization

Evaluation of Training and Development

Before training, develop a set of verifiable objectives that specify what is expected and how the results are to be measured Measure or verify training results Make the results known to all those involved in the program—including trainees and upper management

Compensation Decisions

Compensation The payment employees receive in return for their labor Compensation system The policies and strategies that determine employee compensation Wage level The firm's choice to position its general level of pay at, above, or below the market (prevailing wage) for an industry or a geographic area Wage survey—a collection of data on prevailing wage rates within an industry or geographic area Wage structure The internal compensation structure that sets the relative pay levels for all the positions in the firm Job evaluation—the process of determining the relative worth of the various jobs within a firm Ranking jobs according to their value to the firm Job analysis using a point system to value jobs Individual wages - Decisions on specific wage payments to individual employees are based on The wage range for the job The individual's proficiency, experience, and performance Comparable worth A concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills

Discuss the primary elements of employee compensation and benefits

Compensation is the payment employees receive in return for their labor. In developing a system for paying employees, management must decide on the firm's general wage level (relative to other firms), the wage structure within the firm, and individual wages. Wage surveys and job analyses are useful in making these decisions. Employees may be paid hourly wages, salaries, or commissions. They also may receive incentive payments, lump-sum salary increases, and profit-sharing payments. Employee benefits, which are non-monetary rewards to employees, add about 30% to the cost of compensation.

Flexible benefits plan

Compensation plan whereby an employee receives a predetermined amount of benefit dollars to spend on a package of benefits he or she has selected to meet individual needs Administration cost is high but deemed justified -More specifically meet employees' needs -Help company contain costs in the long run -Company is perceived to be employee friendly thereby being in a better position to attract and retain qualified employees

Human Resources Management (HRM) Development

Concerned with improving employees' skills and expanding their capabilities. Training and Development Teaching employees new skills, new jobs, and more effective ways of doing their present jobs Performance Appraisal Assessing employees' current and potential performance levels

Human Resources Management (HRM) Maintaining

Consists primarily of encouraging employees to remain with the firm and to work effectively by using a variety of HRM programs. Carefully designing compensation and reward packages can help a firm attract and retain valuable employees. Employee Relations Increasing employee job satisfaction through satisfaction surveys, communication programs, exit interviews, and fair treatment Compensation Rewarding employee effort through monetary payments Benefits Providing rewards to ensure employee well-being

Advantages of diversity

Cost savings from properly managing and integrating diversity into the company Attracting the best personnel Marketing advantages due to a better understanding of different cultural groups Improved creativity Increased organizational flexibility in the placement of personnel Fresh viewpoints for problem solving and decision making Bilingual skills bring numerous benefits to the organization

Technological advances

Creates new opportunities in forecasting and planning for human resources demand. New technologies such as social media, cloud computing, and analytics have increased the speed of doing business, which enhances the importance of international growth and strong leadership in organizations.

Describe cultural diversity and understand some of the challenges and opportunities associated with it.

Cultural diversity refers to the differences among people in a workforce owing to race, ethnicity, and gender. With an increasing number of women, minorities, and immigrants in the U.S. workforce, management is faced with challenges and competitive advantages. Some organizations have implemented diversity-related training programs to make the most of cultural diversity. With proper guidance and management, a culturally diverse organization can prove beneficial to all involved.

Which of the following is least likely to be the responsibility of a line manager? Developing a compensation system Implementing an orientation program Job analysis Recommending a promotion Hiring employees

Developing a compensation system

Cultural Diversity in Human Resources

Differences among people in a workforce owing to race, ethnicity, and gender

Which of the following is the term used to describe a process of "recruiting minorities, training minorities to be managers, training managers to view diversity positively, and teaching English as a second language"? Problem solving Flexibility Resource acquisition Diversity training programs Acquiring bilingual skills

Diversity training programs

Which of the following is a good example of the "judgmental method" of evaluation? Each employee is rated on the degree to which the statement applies. The number of insurance claims processed is evaluated. The units of output per employee are calculated. An employee's dollar volume of sales per week is assessed. The number of defective products an employee produces, on average, is counted

Each employee is rated on the degree to which the statement applies.

Compensation and Benefits

Effective employee reward systems must Enable employees to satisfy their basic needs Provide rewards comparable to those offered by other firms Be distributed fairly in the organization Recognize that different people have different needs

Training and Development

Employee training The process of teaching operations and technical employees how to do their present jobs more effectively and efficiently Management development The process of preparing managers and other professionals to assume increased responsibility in both present and future positions Development of a training program Analysis of the needs Determination of training and development methods Creation of evaluation system to assess the program's effectiveness

Explain the purposes and techniques of employee training and development

Employee-training and management-development programs enhance the ability of employees to contribute to a firm. When developing a training program, the company should analyze training needs and then select training methods. Because training is expensive, an organization should periodically evaluate the effectiveness of its training programs.

National Labor Relations Act and Labor-Management Relations Act (1935)

Established a collective-bargaining process in labor-management relations as well as the National Labor Relations Board (NLRB)

Fair Labor Standards Act (1938)

Established a minimum wage and an overtime pay rate for employees working more than forty hours per week Many managers and other professionals are exempt

Civil Rights Act (1991)

Facilitates employees' suing employers for sexual discrimination and collecting punitive damages

Attrition is the process of acquiring information on applicants

False

Employee benefits, such as vacation and sick leave, are required by law

False

The Employee Retirement Income Security Act requires firms to provide a retirement plan for their employees

False

The most widely used selection technique is the employment test.

False

Transfers involve moving employees into higher-level positions

False

Types of Compensation

Hourly wage A specific amount of money paid for each hour of work Salary A specific amount of money paid for an employee's work during a set calendar period, regardless of the number of hours worked Commission A payments that is a percentage of sales revenue Incentive payment A payment in addition to wages, salary, or commissions such as gain sharing for exceeding goals or quotas Lump-sum salary increase An entire pay raise taken in one time in one lump sum Profit sharing The distribution of a percentage of a firm's profit among its employees

Human Resources Management (HRM) Activities

Human Resources Planning Determining the firm's human resource needs Job Analysis Determining the exact nature of the positions Recruiting Attracting people to apply for positions Selection Choosing and hiring the most qualified applicants Orientation Acquainting new employees with the firm

Describe the major components of human resources management.

Human resources management (HRM) is the set of activities involved in acquiring, maintaining, and developing an organization's human resources. Responsibility for HRM is shared by specialized staff and line managers. HRM activities include human resources planning, job analysis, recruitment, selection, orientation, compensation, benefits, training and development, and performance appraisal.

Identify the steps in human resources planning.

Human resources planning consists of forecasting the human resources that a firm will need and planning a course of action to match supply with demand. Layoffs, attrition, early retirement, and (as a last resort) firing are ways to reduce the size of the workforce when needed. Supply is increased through hiring.

Which of the following is the best way to describe "employee-development training"? a-Attracting the best people to apply for positions b-Using satisfaction surveys and employee communication programs c-Recruiting experienced employees from other firms d-Providing rewards to ensure employee well-being e-Improving employees' skills and expanding their capabilities

Improving employees' skills and expanding their capabilities

Analysis of Training Needs

Is training needed? What types of training are needed? Improve technical skills Focus on organizational procedures, business ethics, product information, customer service Is motivation needed? Training is expensive; be sure it is appropriate

Explain the objectives and uses of job analysis

Job analysis provides a job description and a job specification for each position within a firm. A job description is a list of the elements that make up a particular job. A job specification is a list of qualifications required to perform a job. Job analysis is used in evaluation and in the determination of compensation levels and serves as the basis for recruiting and selecting new employees.

Uses of performance appraisal

Let workers know how they are doing and how they can do better Provide the basis for distributing rewards Help the organization monitor employee selection, training, and development activities

Common Evaluation Techniques Judgmental methods

Managerial estimates of employee performance levels Ranking -Ordering employees from best to worst -Difficult to use because there is no absolute standard Rating -Using a predetermined scale (standard) to evaluate each employee's performance

Training and Development Methods

On-the-job New employee learns by working under the supervision of experienced employee Simulation Training in an area that replicates the actual work environment without the day-to-day pressures Classroom teaching and lectures For large groups who need the same information (e.g., notification of change in benefits) Conferences and seminars Experts and learners meet to discuss problems and exchange ideas Role playing Acting out the roles of others in the organization for a better understanding of those roles

Human Resources Management (HRM) Activities: Orientation

Orientation • The process of acquainting new employees with an organization • May be brief and informal or long and formal Topics • Range from location of company cafeteria to career paths within the firm

Types of Employee Benefits

Pay for time not worked Vacation time, holidays, and sick leave Insurance packages Health, life, and dental insurance Pension and Retirement programs Costs may be shared or fully paid by the employer Required by law Workers' compensation, unemployment insurance, and Social Security Other benefits Tuition-reimbursement, credit unions, child care, company cafeterias, exercise rooms, stock-options, special benefits to U.S. military reservists called to active duty

Performance Feedback

Performance appraisal information should be provided to employees

Discuss performance appraisal techniques and performance feedback.

Performance appraisal, or evaluation, is used to provide employees with performance feedback, to serve as a basis for distributing rewards, and to monitor selection and training activities. Both objective and judgmental appraisal techniques are used. Their results are communicated to employees through three performance feedback approaches: tell-and-sell, tell-and-listen, and problem solving.

Americans with Disabilities Act (1990)

Prohibits discrimination against qualified individuals with disabilities in all employment practices Reasonable accommodation - Required by employers to provide any modification or adjustment to a job or work environment to enable a qualified, disabled employee to perform a central job function

Title VII of the Civil Right Act (1964)

Prohibits discrimination in employment practices based on sex, race, color, religion, or national origin Enforced by the Equal Employment Opportunity Commission (EEOC)

Age Discrimination in Employment Act (1967-1986)

Prohibits personnel practices that discriminates against people aged 40 and older Eliminated mandatory retirement age

Labor-Management Relations Act (1947)

Provides a balance between union power and management power; also known as the Taft-Hartley Act

Larry was hurt while playing football in his senior year in high school. Since then, he has been confined to a wheelchair. After receiving his college diploma, he applied for a supervision job in a local warehouse. Under ADA, the employer must provide reasonable accommodation for disabled employees. Which activity will not legally cover Larry? Providing adequate home medical care Making existing facilities accessible Modifying work schedules Providing qualified readers Changing examinations

Providing adequate home medical care

Describe the processes of recruiting, employee selection, and orientation

Recruiting is the process of attracting qualified job applicants. Candidates for open positions may be recruited from within or outside a firm. In the selection process, information about candidates is obtained from applications, résumés, tests, interviews, references, assessment centers, even online social networking sites. This information is used to select the most appropriate candidate for the job. Newly hired employees will then go through an orientation program to learn about the firm and the specifics of the job.

Employment Retirement Income Security Act (1974)

Regulates company retirement programs and provides a federal insurance program for retirement plans that go bankrupt

Occupational Safety and Health Act (1970)

Regulates the degree to which employees can be exposed to hazardous substances and specifies the safety equipment that the employer must provide Enforced by the Occupational Safety and Health Administration (OSHA)

Affordable Care Act (2010)

Requires an organization with fifty or more employees to make health insurance available to employees or pay an assessment, gives employees the right to buy health insurance from another provider

Family and Medical Leave Act (1993)

Requires an organization with fifty or more employees to provide up to twelve weeks of leave without pay for serious family business such as births, adoptions, illness

Worker Adjustment and Retraining Notification (WARN) Act (1988)

Requires employers to give employees sixty days notice regarding plant closure or layoff of fifty or more employees

Companies develop reputations as being favorable or unfavorable prospective employers for women and ethnic minorities. Based on this understanding or company reputation, what advantage do companies that have a good record for managing diversity have over others? Resource acquisition Flexibility Bilingual skills Cost saving Creativity

Resource acquisition

Employee Benefits

Rewards in addition to regular compensation that are provided indirectly to the employee

Human Resources Management (HRM) Activities: Selection

Selection The process of gathering information about applicants and then using that information to choose the most appropriate applicant Employment applications • Provide useful factual information about the applicant • Information gathered is used for -Identifying applicants worthy of further scrutiny -Familiarizing interviewers with applicant backgrounds • Often include résumés Employment tests • Focus on aptitude, skills, abilities, and knowledge relevant to the job • For a test to be nondiscriminatory, it must be job-related and validated as an accurate predictor of job performance Interviews • The most widely used selection technique • Opportunity for applicants and the firm to learn more about each other • For interviews to be nondiscriminatory, a structured interview format is recommended References • Used to verify information furnished by the applicant about previous job responsibilities and the reason for leaving their previous job Assessment centers • Used to select current employees for promotion to higher-level management positions • Employees participate in simulated management activities and are observed and evaluated by other senior managers

Responsibility for HRM

Shared responsibility of line managers and staff HRM specialists Staff specialists develop specific HR activities (e.g., training and development) and deliver them with the assistance and input of line managers. Devise orientation programs that are carried out by both specialists and line managers. Human resources planning and job analysis usually are carried out by staff specialists with input from line managers Staff experts handle recruiting and selection, although line managers are involved in hiring decisions. Compensation systems (including benefits) most often are developed and administered by the HRM staff. Line managers recommend pay increases and promotions. Training and development activities are the joint responsibility of staff and line managers. Performance appraisal is the job of the line manager, although HRM personnel design the firm's appraisal system in many organizations.

Equal Pay Act (1963)

Specifies that men and women who do equal jobs must be paid the same wage Differences are legal if they are attributed to seniority, qualifications, or performance

Human Resources Planning

The development of strategies to meet a firm's future human resources needs. Forecasting human resources demand Forecasting human resources supply Matching supply with demand

How many skills do you have?

The more skills you develop, the more valuable you are to any employer. Do your own personal skills inventory before you write a résumé or interview for a job. Then you'll be prepared to explain the special skills you can bring to an employer.

Recruiting, Selection, and Orientation

The process of attracting qualified job applicants Goal is to attract the "right" number of applicants External Recruiting

Recruiting, Selection, and Orientation - Selection

The process of gathering information about applicants and then using that information to choose the most appropriate applicant

Common Evaluation Techniques Objective methods

Their basis is a measurable quantity (e.g., units of output, sales volume, number of defective products).

Coping with diversity challenges

Train and educate managers to respect and manage diversity Recruit minority employees and train them to be managers Train managers to view diversity positively Teach English as a second language Facilitate support groups for immigrants Have a strong commitment from upper management to diversity goals for the organization

In a structured interview, the interviewer uses a prepared set of questions.

True

Recruiting is an activity of human resources acquisition

True

Staffing, personnel management, and human resources management are synonymous terms.

True

The purpose of Title VII is to ensure that employers make personnel decisions on the basis of employee qualifications

True

The selection process matches the right candidate with each job.

True

Common Evaluation Techniques Avoiding appraisal errors

Use the entire evaluation instrument; avoid focusing on one portion Do not let an employee's poor performance in one area influence the evaluation of other areas of performance Evaluate the entire performance period and not the most recent behaviors of the employee Guard against any form of personal bias or discrimination in the evaluation

wage survey

a collection of data on prevailing wage rates within an industry or a geographic area

skills inventory

a computerized data bank containing information on the skills and experience of all present employees

comparable worth

a concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills

replacement chart

a list of key personnel and their possible replacements within a firm

job description

a list of the elements that make up a particular job

job specification

a list of the qualifications required to perform a particular job

incentive payment

a payment in addition to wages, salary, or commissions

commission

a payment that is a percentage of sales revenue

employee benefit

a reward in addition to regular compensation that is provided indirectly to employees

salary

a specific amount of money paid for an employee's work during a set calendar period, regardless of the actual number of hours worked

hourly wage

a specific amount of money paid for each hour of work

job analysis

a systematic procedure for studying jobs to determine their various elements and requirements

Which of the following is not a way to reduce your workforce? a. Orientation b. Attrition c. Early retirement d. Fired e. Laid off

a. Orientation

Although cultural diversity presents a challenge, managers should view it as an opportunity rather than a limitation. a. True b. False

a. True

Employers holding federal contracts in excess of $50,000 and that have 50 or more employees must abide by affirmative action laws. a. True b. False

a. True

It is standard that salaried employees do not receive overtime pay. a. True b. False

a. True

Monster.com is the largest online job-search site on the Internet. a. True b. False

a. True

Performance appraisals can be considered a part of the development phase of HRM. a. True b. False

a. True

Recruiters may seek job applicants from inside the firm, outside the firm, or both. a. True b. False

a. True

Compensation issues are a part of the ________ phase of HRM. a. maintaining b. selection c. training d. orientation e. employee relations

a. maintaining

Human resources planning requires the following steps except using the firm's strategic plan. forecasting the firm's future demand. determining availability of human resources. acquiring funds for implementation. matching supply with demand.

acquiring funds for implementation.

human resources management

all the activities involved in acquiring, maintaining, and developing an organization's human resources HRM begins with acquisition—getting people to work for the organization. 1-The acquisition process can be very competitive, particularly for skilled employees and in fields where demand for workers exceed supply. 2-Next, steps must be taken to retain these valuable resources. (After all, they are the only business resources that can voluntarily leave an organization.) 3-Finally, human resources should be developed to their full capacity.

lump-sum salary increase

an entire pay raise taken in one lump sum

Women make up approximately _____ of the U.S. workforce. a. 39 b. 47 c. 54 d. 34 e. 40

b. 47

A disadvantage of external recruiting is the bringing of new perspectives into the organization. a. True b. False

b. False

A job analysis is a list of elements that make up a particular job. a. True b. False

b. False

A lump-sum salary increase gives retiring employees an opportunity to take one sum at retirement age. a. True b. False

b. False

A replacement chart is a list of all personnel in a company and a potential replacement from outside the company. a. True b. False

b. False

A retirement plan is required to be fully funded by the employer. a. True b. False

b. False

A résumé is typically a minimum of three pages. a. True b. False

b. False

A wage structure is usually developed on the basis of job analysis. a. True b. False

b. False

All interviewers consider the list of references of a potential employee to be a great value. a. True b. False

b. False

Employee compensation may account for up to 80 percent of a firm's operating costs. a. True b. False

b. False

Legislation in regard to minimum wages and overtime pay rates were established in the 1950s. a. True b. False

b. False

Success in the selection process means hiring the most qualified person. a. True b. False

b. False

When undersupply is expected to be temporary in a company, some employees may be laid off. a. True b. False

b. False

________ is considered the basis for recruiting and selecting new employees. a. A replacement chart b. Job analysis c. Job specification d. A skills inventory e. Job description

b. Job analysis

Which of the following is least likely to provide HRM with information for human resource planning? a. Past staffing levels b. Orientation programs c. Evolving technologies d. Projected economic trends e. An organization's strategic plan

b. Orientation programs

HRM consists of: a. acquiring and maintaining the material resources in an organization. b. all the activities involved in acquiring, maintaining, and developing the human resources in an organization. c. all the activities involved in acquiring, maintaining, and developing the materials in an organization. d. acquiring and divesting a company of the financial resources in that organization. e. hiring and training suppliers within an organization.

b. all the activities involved in acquiring, maintaining, and developing the human resources in an organization.

A structured interview involves a. interviewing all candidates in the same location. b. asking all interviewees random questions. c. asking only a prepared set of job-related questions. d. asking all interviewees a maximum of three prepared questions. e. interviewing all candidates within the same short time span.

c. asking only a prepared set of job-related questions.

flexible benefit plan

compensation plan whereby an employee receives a predetermined amount of benefit dollars to spend on a package of benefits he or she has selected to meet individual needs

internal recruiting

considering present employees as applicants for available positions

What is a skills inventory? a. A database of skills needed by the company b. A database of skills and experience of all retiring employees c. A database of skills of all potential employees that have applied for a new position in the company d. A database of skills and experience of present employees e. A database of skills and experience of all top management

d. A database of skills and experience of present employees

Which of the following is not an HRM activity? a. Orientation b. Selection c. Recruiting d. Enrolling e. Job analysis

d. Enrolling

What is the primary idea behind profit sharing? a. To create a team-based environment b. To effectively train employees c. To create a collaborative work environment d. To motivate employees e. To recruit creative employees

d. To motivate employees

Which of the following employee benefits is required by law? a. Tuition-reimbursement b. Company cafeterias c. Child care services d. Workers' compensation insurance e. Exercise rooms

d. Workers' compensation insurance

The three important phases of HRM include a. recruiting, selection, and orientation. b. hiring, training, and firing. c. buying, inventorying, and selling. d. acquiring, maintaining, and developing. e. orientation, relations, and appraisal.

d. acquiring, maintaining, and developing.

The concept of equal compensation for jobs that require about the same level of education, training, and skills is known as a. a compensation system. b. skills inventory. c. job specification. d. comparable worth. e. profit sharing.

d. comparable worth.

Melinda walked into First National Bank to pick up an application for an administrative assistant position. When she asked about the duties and working conditions, the busy receptionist handed her a job description. inventory. analysis. orientation. specification

description.

cultural (workplace) diversity

differences among people in a workforce owing to race, ethnicity, and gender

Which of the following is not a main objective of a performance appraisal? a. Provides an effective basis for distributing rewards b. Informs an organization of its success in the employee training process c. Helps the organization monitor its employee selection process d. Apprises workers of how they are doing in their job e. Informs an organization of its profit potential in regard to each employee

e. Informs an organization of its profit potential in regard to each employee

Which of the following would least likely be considered part of an employee reward system? a. Rewards that are distributed fairly. b. Rewards that are distributed with recognition that different people have different needs. c. Rewards that enable employees to satisfy needs. d. Rewards that are comparable to other firms. e. Rewards that enable employees to move up in the company.

e. Rewards that enable employees to move up in the company.

A systemic procedure for studying jobs is known as a. job description. b. a replacement chart. c. job specification. d. skills inventory. e. job analysis.

e. job analysis.

Strategic Plan

future business venture new products projected expansions or contradictions of specific product lines

A one-page summary of an applicant's qualifications is known as a(n) application form. data sheet. summary sheet. resume. qualification sheet.

resume.

utility

the ability of a good or service to satisfy a human need

external recruiting

the attempt to attract job applicants from outside an organization

human resources planning

the development of strategies to meet a firm's future human resources needs

profit-sharing

the distribution of a percentage of a firm's profit among its employees

performance appraisal

the evaluation of employees' current and potential levels of performance to allow managers to make objective human resources decisions

compensation

the payment employees receive in return for their labor

compensation system

the policies and strategies that determine employee compensation

orientation

the process of acquainting new employees with an organization

recruiting

the process of attracting qualified job applicants

job evaluation

the process of determining the relative worth of the various jobs within a firm

selection

the process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant

management development

the process of preparing managers and other professionals to assume increased responsibility in both present and future positions

employee training

the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently