Intro to Business: Chapter 11

a carefully managed and competitive compensation and benefit program can accomplish several objectives:

- attract the kinds of people the org needs, and in sufficient numbers - provide employees w/ incentive to work efficiently and productively - keep valued employees from going to competitors or starting competing firms - maintain a competitive position in the marketplace by keeping costs low through high productivity form a satisfied workplace - provide employees w/ some sense of financial security through fringe benefits such as insurance and retirement benefits

using an assessment center for testing applicants' ability to perform tasks actually required in the job:

- can make the selection process more efficient - satisfies legal requirements

the equal employment opportunity act of 1972 strengthened the equal employment opportunity commission, an agency created by the civil rights act of 1964 by:

- giving it broad powers to enforce title VII - issuing guidelines for employer conduct in complying with EEO - mandating specific record keeping procedures

discussing an employee's successes and areas that need improvement can provide managers an opportunity to

- guide the employee to better performance - hear the employee's views on how to improve the job

the selection process is often long and difficult, but is worth it due to the:

- high cost of replacing employees

a well designed training program often leads to:

- increased productivity - greater job satisfaction - higher retention rates

the choice of a compensation system is very important to managers because

- it affects efficiency and productivity - it affects morale and motivation

companies offer early retirement benefits to entice older employees to retire because:

- it improves morale for surviving employees during layoffs - they usually have higher salaries - it opens promotion opportunities for younger employees

trade unions require a new worker to serve as an apprentice to:

- limit entry to the union - ensure excellence and maintain standards

what factors in the labor force are affecting the future labor supply?

- more women entering the workforce - workers getting older - becoming more technically oriented

most management training programs include:

- on the job coaching - understudy positions - job rotation - off the job courses and training

the cost of terminating employees has led companies to use:

- outsourcing - temporary employees

retirement plans

- pensions - 401k programs

the employment doctrine in the US known as "employment at will" meant that employers had as much freedom to fire an employee as the employee had to leave voluntarily. that situation has changed because workers today are:

- protected by anti discrimination laws - protected by whistleblower laws

companies may hire contingent workers when:

- quick service to customers is a priority - there is peak demand for labor or products - workload is variably high and low

human resources challenges

- shortages of trained workers in growth areas (comp technology, biotech, robotics, green tech, sciences) - an increasing number skilled and unskilled workers from declining industries (steel, auto)-- *underemployed workers* are those who have more skills or knowledge than their current jobs require or those with part time jobs who want to work full time - a growing percentage of new workers who are under-educated and unprepared for jobs in the contemporary business environment - a shortage of workers in skilled trades due to retirement of again baby boomers - an increasing number of baby boomers - an increasing number of both single parent and two income families resulting in a demand for job sharing , maternity leave, and special career advancement programs for women - a shift in employee attitudes toward work. leisure time has become a much higher priority, as have flextime and a shorter workweek - a recession that took a toll on employee morale and increased the demand the temporary and part time workers - a challenge from overseas labor pools whose members work for lower wages and are subject to fewer laws and regulations that US workers. this results in many jobs being outsourced overseas - an increased demand for benefits tailored to the individual yet cost effective to the company - growing concerns over health care, elder care, child care, drug testing, workplace violence, and opportunities for ppl w/ disabilities - a decreased sense of employee loyalty, which raises employee turnover and the the cost of replacing lost workers

which of the following types of information can legally be obtained form a job application form?

- work experience - educational qualifications - educational background NOT: -disabilities that require accommodation - interpersonal skills - arrests (only convictions since some people are wrongfully arrested)

the once prevailing doctrine in the US was "employment at will" meaning that employers had as much freedom to fire workers had to leave voluntarily. some states and court decisions have changed that to protect employees from:

- wrongful termination

training and development (3 steps)

1) assess organization needs and employee skills for training gaps 2) design training activities to meet identified needs 3) evaluate the training's effectiveness

performance appraisals (six steps)

1) establishing performance standards (must be understandable, subject to measurement, and reasonable) 2) communicating those standards 3) evaluating performance 4) discussing results with employees 5) taking corrective action 6) using the results to make decisions

selecting employees who will be productive (hiring process)

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 trial (probationary) periods

determining a firm's human resource needs (p 296)

1) preparing a human resource inventory of the organization's employees 2) preparing a job analysis 3) assessing future human resource demand 4) assessing future labor supply 5) establishing a strategic plan

performance appraisal

an evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination six-steps: 1) establishing performance standards - important so employees know what is expected of them 2) communicating those standards 3) evaluating performance 4) discussing results w/ employees 5) taking corrective action 6) using the results to make decisions decisions affected by performance appraisals: - promotion - training - compensation managers use the info on performance appraisals to make decisions about: - compensation - termination of employment - promotions

understudy positions

apprentice like relationships within an organization where selected employees who work as assistants to higher level managers and participate in planning and other managerial functions until they are ready to assume such positions themselves

human resources staff must regularly assess the organization's strategic plans and the organization's human resources inventory to

assure that enough trained workers are available to achieve organization goals

Equal Employment Opportunity Act of 1972

authorized the EEOC to set guidelines for employers' administration of EEO strengthened the equal employment opportunity commission (EEOC) and authorized the EEOC to set guidelines for human resource management

a bonus

awarded as a gain sharing system when previous performance is exceeded

fair labor standards act of 1938

overtime pay was established for employees working over 40 hours per week

what are some external sources of recruitment?

p 299 - advertisements - employment agencies - college recruitment

pay systems

p 311 competitive compensation and benefit programs can have a tremendous impact on employee efficiency and productivity. sometimes businesses reward exceptional performance by awarding bonuses.

at the end of the selection process, a ___ period can make it easier to dismiss a new employee if necessary

probationary period

Older Workers Benefit Protection Act of 1990

protects older people from illegal age discrimination

manpower development and training act of 1962

provided for the training and retraining of unemployed workers

employers test applicants on jobs they will actually perform to determine whether they are ___

qualified

there are many challenges form ___ a diverse pool of applicants

recruiting

employee retirement income security act of 1974 (ERISA)

regulated and insured company retirement plans

companies need to put in the effort to select the best employees because the cost of ___ employees who leave is also very costly

replacing

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 two roles and responsibilities have evolved primarily because of two key factors: 1) organizations' recognition of employees as their ultimate resource 2) changes in the law that rewrote many traditional pracitices receiving increased attention now that US economy has experienced major shift from traditional manufacturing to service / high-tech manufacturing industries... now require highly technical job skills

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

on the job coaching

when a lower level manager is taught needed skills and given direction and advice by a more senior manager

background investigations are used to help identify those potential employees most likely to succeed by investigating...

work records

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 advantage: boosts productivity gives employees the freedom to choose which HOURS to work, as long as they work the required number of hours

many companies find that promotions from within the company improves employee ___

morale

employee sources

p 299

vestibule training

training done in schools where employees are taught on equipment similar to that used on the job computer and robotics training often uses vestibule training

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 which employees complete classes via the internet

Civil Rights Act of 1964

a federal law that authorized federal action against segregation in public accommodations, public facilities, and employment title VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions or privileges of employment based on race, religion, creed, sex, or national origin

journeyman

a worker who successfully completes an apprenticeship earns this classification

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

"do's" for performing appraisals?

- end the appraisal w/ positive suggestions - allow sufficient time and privacy for the appraisal

the choice of a pay system that is fair and competitive in today's labor market is important to an organization's survival because it

- retains valued employees - motivates workers to perform well

internal sources for recruitment are less expensive than using outside sources and improves employee morale. they include:

- retrained employees - department reorganizations - promotions

HR managers perform the vital functions of:

- staffing an organization with employees able to meet organizational goals - ensuring that all of the HR functions comply w/ legal requirements

e-coaching

a new method that is being developed to coach managers electronically

job analysis (p 297)

a study of what employees do who hold various job titles observing current employees doing a job, discussing the job with managers, and keeping activity diaries yields two important statements: - job specifications - job description

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

soft benefits

a type of fringe benefit that helps workers maintain balance between work and family life such as haircuts or free breakfast care

the primary purpose of the appraisal is to improve employee performance by:

determining whether the employee is meeting job standards

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 managers see using contingent workers as a way of weeding out poor workers and finding good hires companies may hire contingent workers when there is a peak demand for labor

affirmative action

employment activities designed to "right past wrongs" by increasing opportunities for minorities and women controversial policy enforced by the EEOC that seeks to remedy past discrimination

organizations that want to reduce personnel costs and provide opportunities for younger employees

encourage early retirement with special incentives

most organizations now investigate potential employees because it is too ___ to hire and train people

expensive

civil rights act of 1991

extends the right to jury trial and punitive damages to victims of intentional job discrimination

comprehensive employment and training act of 1973

federal law that provides funds for unemployed to learn new job skills

cafeteria style fringe benefits

fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount

sometimes people with necessary skills are not available, and then companies must:

hire and train internally

benefits and challenges of home based work (p 315)

home based work (also known as telecommuting) offers many benefits and challenges to organizations, individuals, and society as a whole advantages: - reduces absenteeism - saves office space costs home based work can save costs for employers as they can save on office space

core time

in a flextime plan, the period when all employees are expected to be at their job stations

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

the hay pay system

is based on job tiers, each of which has a strict pay range

a decrease in employee loyalty has led to higher __ and increased costs of replacing lost workers

turnover

fringe benefits that may provide incentives other than pay include

- country club memberships - recreation facilities - company cars

changes in US workforce that create challenges for HR managers:

- employees want more leisure time - increased concern over health care benefits - more single parent homes

roles and responsibilities of HRM professionals have evolved primarily because:

- changes in the law have rewritten traditional practices - organizations recognize that employees are their ultimate resource

in the US, legislation and legal decisions in the ___ have greatly affected all areas of human resource management

courts

management development

the process of training and educating employees to become good managers

challenges of hiring from a diverse population include:

- a strong culture of teamwork that requires interpersonal skills - an emphasis on corporate culture that requires certain leadership stles - organization policies that require promotions from within

three principles companies must understand in developing a more diverse management group are:

- bringing a more diverse group to management will increase long term profitability - that they will serve their increasingly diverse customers better - the need to do it early to attract and retain them

which of the following are some tasks involved in human resource management?

- evaluating employees - recruiting

human resource management is critical to the success of the organization because

- finding qualified employees has become more difficult - it is an organization's people who have the creative ideas to keep it competitive

increased flexibility in scheduling has become an important benefit for employers to offer because of

- the increase in single parent homes - the increase in two income families

an effect of changing legislation on human resources professionals is that:

- they must update company HR policies and procedures to stay current w/ legal changes - they must stay current w/ changes in the law

a reason to allow teams to decide on the compensations its members will receive is

- they will know who has contributed and at what level - to show that management trusts the team process

managers often need special training including:

- time mgmt skills - planning skills - human relations skills

a human resources strategic plan includes plans for:

- training and development - recruiting employees - compensating employees

"don'ts" for performing appraisals

- wait until the appraisal to address problems - attack the employee personally

to supervise a diverse workforce that serves a diverse customer base, companies need:

- women in management positions - managers who are culturally diverse

job sharing

an arrangement whereby two part time employees share one full time job benefits: - employment opportunities for those who can't or prefer not to work full time - an enthusiastic and productive workforce - reduced absenteeism and tardiness - ability to schedule part time workers into peak demand periods - retention of experienced employees who might otherwise have retired disadvantages: - the need to hire, train, motivate, and supervise at least twice as many people and perhaps prorate some fringe benefits

legal requirements

an effective performance appraisal system provides information to managers and is also a way to satisfy this

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 a corporate manager who supervises, coaches, and guides selected lower level employees by acting as their organizational sponsor

gain-sharing systems

base bonuses on improvements over previous performance

fringe benefits

benefits such as sick leave pay, vacation pay, pension plans, and health plans that represent additional compensation beyond base wages

why did the federal gov't pass legislation to regulate human resource decisions?

businesses did not exercise fair labor practices voluntarily

family and medical leave act of 1993

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

exit interviews

can be helpful to a company because information can prevent the loss of good people in the future

home based workers

can choose their own hours, interrupt work for child care, or take time out for personal reasons

experts believe that determining how best to ___ employees is today's greatest human resource management challenge because it affects the long term success of the company

compensate

an important factor in motivating employees to be productive is to have systems in place that:

compensate them fairly

salary

fixed compensation computed on weekly, biweekly, or monthly pay periods

employment tests required of applicants should always be directly related to the ___.

job

equal employment opportunity laws

limit the kinds of questions that can appear on employment applications so that people's rights are not violated

the civil rights of of 1964

made it illegal to discriminate against certain groups of people called "protected classes" (sex, race, color, religion, or national origin)

360 degree review

management gathers opinions from all around the employee, including those under, above, and on the same level, to get an accurate, comprehensive idea of the worker's abilities

the ___ who will supervise the new employee may interview the applicant after the first interview

manager

the accelerating cost of administering benefits programs has led to

many organizations outsourcing that function

lateral transfer

move over to a new position rather than up allows employees to develop and display new skills and learn more about the company overall one way for companies w/ few advancement opportunities to motivate employees

how to avoid wrongful discharge lawsuits

p 317

trade unions in skilled crafts

require a new worker to serve as an apprentice for several years to ensure excellence

immigration reform and control act

requires employers to - verify employment eligibility of all new hires

a problem in developing effective compensation for teams is that

rewarding individuals erodes cohesiveness

skill based pay

rewards the growth of both the individual and the team. base pay is raised when team members learn and apply new skills. difficult to relate the acquisition of skills directly to profits drawbacks: -difficult to relate acquisition of skills to profits -the pay system is complex

occupational safety and health act of 1970

specified that employers must - limit exposure to hazardous substances - provide safety equipment to employees

equal pay act of 1963

specified that men and women doing equal jobs must be paid the same wage

employees often request more fringe benefits instead of salary in order to avoid higher ___

taxes

lost training costs is a factor in __ employees

terminating

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

health care

the benefit that is desired most by employees, but whose costs have risen dramatically

fringe benefits, including sick-leave pay, vacation pay, pension plans, and health plans have had an affect on

the cost of compensation to the employer

national labor relations act of 1935

the federal law that establishes the right to collective bargaining and limits the interference of management in the right of employees to have a collective bargaining agent

Age Discrimination in Employment Act of 1967

the federal law that protects those over 40 years of age from workplace discrimination in hiring, compensation, promotion, layoff, and other workplace opportunities outlaws forced retirement in most organizations. this prevents workers from being forced to retire sooner than they want to. - enforcement by the EEOC - protection of workers over 40 from discrimination in hiring - protection of job applicants and workers over 40 from discrimination in employment

Americans with disabilities act of 1990 (ADA)

the law that prohibits employers from discriminating against qualified individuals with disabilities in hiring, advancement, or compensation employers must make reasonable accommodations for employees with disabilities medical tests cannot be given just to screen out individuals with disabilities ADA of 2008 adds new disabilities such as __ to ADA coverage: - cancer - epilepsy - heart disease - provides broader protections for disabled workers

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 developing and establishing professional contacts that can assist you in finding employment

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

management development

the process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time - on the job coaching - understudy positions - job rotation - off the job courses and training

recruitment

the set of activities used to obtain a sufficient number of the right employees at the right time the process for obtaining qualified people

human resource inventory

the tool that lists ages, names, education, capabilities, training, specialized skills, and other relevant information about an organization's employees

job simulation

the use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job

small businesses have difficulty recruiting qualified workers because

their compensation may not be competitive