Business 100: Chapter 11 Human Resource Management: Finding and Keeping The best Employees

Job Specifications

A written summary of the minimum qualifications required of workers to do a particular job.

Controversial Procedures of the EEOC

Affirmative Action- Policy designed to "right past wrongs" by increasing opportunities for minorities and women in the workplace. Reverse Discrimination- Discrimination against whites or males in hiring or promoting. -This policy has been at the center of many debates and lawsuits.

Training and Development

All attempt to improve productivity by increasing an employee's ability to perform. -Training focuses on short-term skills, and development on long-term conditions

Laws Protecting Employees with Disabilities

Americans with Disabilities Act of 1990 (ADA) -Requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities. -Also requires "reasonable accommodations" for employees with disabilities. -Passage in 2008 of Americans with Disabilities Amendments Act expanded protection.

Age Discrimination in Employment Act/ ADEA

Protects workers 40 and over from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments and training.

Core Time

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

Areas Where Applicants Make Mistakes

-Interview -Resume -Cover Letter -Reference Checks -Follow Up Interview -Screening Call -Other/ Don't Know

Most Commonly Used Training and Development Activities

-Orientation -On-the-Job Training -Apprenticeships -Off-the-Job Training -Online Training -Vestibule Training -Job Simulation

Job Sharing Benefits

-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.

1972 Equal Employment Opportunity Act/ EEOA

-Strengthened the Equal Employment Opportunity Commission (EEOC). -Gave EEOC the right to issue workplace guidelines for acceptable employer conduct. -EEOC could mandate specific record keeping procedures. -EEOC was vested with the power of enforcement.

Why Good Employees Quit

-Unhappy with Management -Limited Advancement -No Recognition -Inadequate Salary/Benefits -Boredom -No Specific Reason

Three Steps of Training and Development

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.

Developing effective Managers

Management Development- The process of training and educating employees to become good managers and tracking the progress of their skills over time. Management training includes: -On-the-job coaching -Understudy positions -Job rotation -Off-the-job courses and training

Working Worldwide

Managers need to understand the business needs of each country they operate in. -Compensation: Conversion to foreign currencies and special allowances often are needed. -Health and Pension Standards: Benefits are different country-by-country. -Paid Time Off: Vacation time, sick and personal leave vary. -Taxation: Tax policies vary. -Communication: Employees can feel disconnected in other countries.

Using Flextime Plans

Most flextime plans require Core Time. Core Time- Is when all employees are expected to be at their job stations. -Flextime is hard to incorporate into shift work and managers have to work longer hours. -Communication among employees can also be difficult under flextime and managers have to be alert to any system abuses

Name and describe five alternative compensation techniques.

1. Commission Plans- rewarding employees with a percentage of sales. 2. Bonus Plans- rewarding employees with payment based on achievement of a predetermined goal. 3. Profit Sharing Plans- giving employees the ability to share in a percentage of the company's profit. 4. Gain-Sharing Plans- bonus is based on improvements over previous performance. 5. Stock Options- granting employees shares of stocks based on performance.

Performance Appraisal Mistakes

-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

Movement of Employees

-Employees are promoted or reassigned. -Employees are terminated due to performance or economic situations. -Employees retire.

A Flextime Chart

-Flextime gives employees some freedom and empowers them to work when it best meets their schedule. The benefits are obvious and often lead to a more motivated workforce.

Performance Appraisal

An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination.

Why Hire Contingent Workers?

Companies hire contingent workers: -When full-time workers are on leave -During periods of peak demand -In uncertain economic times -To save on employee benefits -To screen candidates for future employment

Vestibule Training

Training done in schools where employees are taught on equipment similar to that used on the job.

Online Training

Training programs in which employees complete classes via the internet.

Six Steps of Performance Appraisals

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.

6 Steps in the Employee Selection 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) work periods

What are the six steps in the selection 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 and 6. Establishing trial period.

Compensation Programs

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.

Job Description

A summary of the objective 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.

Mentors

An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor

Contingent Workers

Are employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students.

Civil Rights Act of 1991 and OFCCP

Civil Rights Act of 1991 -Amended Title VII and gave victims of discrimination the right to a jury trial and possible damages. Office of Federal Contract Compliance Programs (OFCCP) -Ensures that employers doing business with the federal government comply with the nondiscrimination and affirmative action laws.

Motivating Temporary Employees

Contingent workers perform well if the promise of full-time employment is a possibility. Highbrow's has no intention of hiring any temporary workers full-time. But the company feels if they imply two workers will be hired full time, it may improve employee performance. What is the ethical thing for them to do? Is this an ethical way to try to motivate employees? What are the dangers of using this tactic?

Changing Times, Changing Employee Benefits

Employees have moved away from monetary based employee benefits to non-monetary based employee benefits. Employer Benefits: -Provide Pension Plans -Offer Wellness Programs -Retirement Plan Contribution -Permit Some Flexible Work Hours

What does "accommodations" mean in the Americans with Disabilities Act of 1990?

Employers are required to make "reasonable accommodations" for employees with disabilities, such as modifying equipment or widening doorways.

Affirmative Action

Employment activities designed to "right past wrongs" by increasing opportunities for minorities and women.

Flexible Scheduling Plans

Flextime Plan- Gives employees some freedom to choose which hours to work as long as they work the required number. Compressed Work Week- Employees work the full number of work hours, but in fewer than the standard number of days. Job Sharing- Lets two or more part-time employees share on a full-time job.

What are the five steps in human resource planning?

The five steps in human resource planning are: Preparing a human resource inventory of the organization's employees, preparing a job analysis, assessing future human resource demand, assessing future labor supply and establishing a strategic plan.

What advantages do compensation plans such as profit sharing offer an organization?

The hope is that profit sharing plans will motivate employees to think like owners.

What is the primary purpose of a performance appraisal?

The primary purpose of a performance appraisal is to determine whether workers are doing an effective and efficient job, with a minimum of errors and disruptions.

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.

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.

Selection

The process of gathering information and deciding who should be hired, under legal guidelines, to fit the needs of the organization and individuals.

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.

Civil Rights Act of 1964

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 The Civil Rights Act of 1964 was a significant piece of legislation and directly brought the federal government into human resource management.

What did Title VII of the Civil Rights Act of 1964 achieve?

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. At a later date age discrimination was added to the act.

It's Not Easy Being Small

To survive, small businesses must recruit and retain qualified workers. Unfortunately, they lack the resources of larger companies to compete for employees. Small businesses need innovations like: -Letting staff help recruit and select candidates. -"Test-Drive" an employee. -Seek out publicity through local media.

Apprentice Programs

Training Programs during which a learner works alongside an experienced employee to master the skills and procedure of a craft.

Training and Developing Employees

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.

On the Job Training

Training at the workplace that lets the employee learn by doing or by watching others while and then imitating them.

Flextime Plan

Work schedules 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.

Developing the Firm's Ultimate Resource

-Service and high-tech manufacturing requires employees with highly technical job skills. -Such workers are scarce, making recruiting and retention more important and more difficult. -The human resource job is now the job of all managers in an organization.

What are the six steps in a performance appraisal?

1. Establishing performance standards 2. Communicating those standards 3. Evaluating performance 4. Discussing results with employees 5. Taking corrective action and 6. Using the results to make decisions.

Fringe Benefits

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

Cafeteria-Style and Soft Benefits

Cafeteria-Style Fringe Benefits -- Allow employees to choose the benefits they want, up to a certain dollar amount. Soft Benefits include: -Onsite haircuts and shoe repair -Concierge services -Free meals at work -Doggie daycare -Onsite farmer's markets

Hiring Contingent Workers

Contingent Workers- Include part-time and temporary workers, seasonal workers, independent contractors, interns and co-op students. -There are about 5.7 million contingent workers in the U.S.

Reverse Discrimination

Discrimination against whites or males in hiring or promoting.

Using Networks and Mentoring

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.

Job Simulation

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

Job Sharing

To share the responsibilities and duties of a single full time job with one or more other employees.

HRM's role has grown because:

1. Increased recognition of employees as a resource. 2. Changes in law that rewrote old workplace practices.

Job Analysis

A study of what employees do who hold various job titles.

Challenges in Finding High-Level Workers

-A shortage of trained workers in key areas -Worker shortage in skilled trades -Changes in employee attitudes about work -A declining economy with fewer full-time jobs -Expanding global markets with low-wage workers -Increasing benefit demands and benefit costs -A decreased sense of employee loyalty Demographic changes are creating a challenging environment for human resources management requiring these departments to come up with creative ways to attract, develop and retain employees.

Terminating Employees

-As the economic crisis grew, more and more employers have had to layoff employees. -Even when the economy is booming, employers are hesitant to hire full-time workers because of the cost of termination. -Firing employees is more difficult for employers because of laws preventing termination for certain acts.

Sally Mainquist Certes Financial Pros

-Certes finds financial professionals to fit temporary, flexible work environments. -Besides receiving outstanding benefits, Mainquist's workers gain a very broad range of work experience.

Average Vacation Days by Country

Comparison of number of vacation days per year in different countries -USA 13 days -Japan 25 days -Canada 26 days -UK 28 days -Brazil 34 Days -Germany 35 Days -France 37 Days -Italy 42 Days ***Italy leads with an average of 42 vacation days per year where as the U.S. comes in last with just 13 days. What impact does this benefit of number of days of vacation have on recruiting at an international level? -Domestically, it may not have much of an impact. However internationally, potential candidates would be comparing between different countries. Especially if they are from one of the ones that offer a much higher number of vacation days, such as Italy, France, or Germany. This may have an impact on the ability of an organization to recruit.

Who is considered a contingent worker and why do company hire such workers?

Contingent workers include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students. Contingent workers are sometimes hired in an uncertain economic climate, when full-time workers are on leave, when there is peak demand for labor or products and finally when quick service is necessary.

What is human resource management?

Human resource management is the process of determining the needs of the organization and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.

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.

Why is it important for managers to understand why employees leave a company?

It translates directly into the bottom line of the organization. The higher the turnover, the higher the costs for recruiting, selecting, training and development, etc.

Human Resource Management

Organizational Goals -Human Resource Management -Recruitment -Selection -Training and Development -Motivation (chapter 10) -Evaluation -Compensation and Benefits -Scheduling -Employee Union Relations (chapter 12) -Career Management Human resource management is more than hiring employees it now involves a multitude of task and responsibilities. This slide gives some insight into the various roles the HR department has now assumed. Business leaders in many companies now understand the effect management of human capital can have in creating a competitive advantage in the marketplace.

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. -A 360-degree review gives managers opinions from people at different levels to get a more accurate idea of the worker's ability.

Compressed Work Week

Work Schedule that allows an employee to work a full number of hours per week but in fewer days.

Compressed Work Weeks

-Employees enjoy long weekends after working long days. -Productivity is a concern. -Nurses and firefighters often work compressed work weeks.

Minding the Law in HRM

-Employers must know the law and act accordingly. -Legislation affects all areas of HRM. -Court cases highlight that sometimes it's proper to go beyond providing equal rights. -Changes in law and legislation occur regularly.

Special Perks at Dreamworks

-Free DVDs and screenings of current films. -Free breakfast and lunch plus dinner when working late. -Free snack rooms on every floor. -Profit sharing. -Ping-Pong and poker tournaments during work hours.

Major Uses of Performance Appraisals

-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

Human Resource Planning Progress

-Preparing a human resource inventory of employees. -Preparing a job analysis. -Assessing future human resource demand. -Assessing future labor supply. -Establishing a strategic plan.

Types of Pay Systems

-Salary -Hourly Wage/Day Work -Piecework System -Commission Plans -Bonus Plans -Profit Sharing Plans -Gain-Sharing Plans -Stock Options When accepting a job offer be aware to consider not just the salary but the entire compensation package.

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.

What are the benefits and challenges of flextime? Telecommuting? Job sharing?

Flextime benefits include allowing employees to adjust to work/life demands. Challenges of flextime include not being applicable for all businesses, making communication more difficult, and creating the possibility of resentment if employees abuse the system. Telecommuting benefits include cost saving for employers and allows employees to manage work/life demands. -Challenges of telecommuting includes that it requires disciplined employees to stay focused and communication with employees may suffer. Job sharing benefits include employment opportunities for those who cannot, or prefer not to work full-time, reduced absenteeism and tardiness, retention of experienced workers and ability to schedule workers during peak times. -Challenges of job sharing include the need to hire, train, motivate, and supervise at least twice as many employees.

Fringe Benefits on the Job

Fringe Benefits- Sick leave, vacation pay, pension and health plans that provide additional compensation to employees beyond base wages. -In 1929, Fringe benefits accounted for less than 2% of payroll cost. Today it's about 30%. -Healthcare has been the most significant increase in fringe benefit cost. -The rising cost of healthcare and the cost of employer provided health insurance is unsustainable in the long term. This requires both management and employees to create systems that keep cost down, but still provide meaningful coverage. This could include employee wellness programs and/or higher deductibles.

The Range of Fringe Benefits

Fringe benefits include incentives like: -Company cars -Country club memberships -Recreation facilities -Special home mortgage rates -Paid and unpaid sabbaticals -Day-care and elder care services -Dental and eye care -Legal counseling -Short or compressed work weeks

Cafeteria Style Fringe Benefit

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

What is a Job Analysis?

Job Analysis- A study of what employees who holds various job titles do. Job Description- Specifies the objectives of the job, the type of work, the responsibilities and duties, working conditions and relationship to other jobs. Job Specifications- A summary of the minimal education and skills needed to do a particular job.

Employee Sources

Job candidates can come from internal and external sources. In order to attract qualified employees from external sources many employers offer referral bonuses to employees who refer a new employee to the company.

Name and describe four training techniques.

Off-the-job training occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development. An apprenticeship program involves a student or apprentice working alongside an experienced employee to master the skills and procedures of a craft. Vestibule training or near-the-job training is done in a classroom with equipment similar to that used on the job so employees learn proper methods and safety procedures before assuming a specific job assignment. Job simulation is the use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job.

Recruiting Employees

Recruitment- The set of activities for obtaining the right number of qualified people at the right time. Examples: -Human resource managers use both internal and external sources to recruit employees. -Small businesses often make use of web sources like CareerBuilder and Monster to recruit employees.

What factors make it difficult to recruit qualified employees?

Some factors that make it difficult to recruit qualified employees include: organizational policies that demand promotions from within, union regulations, and low wages.

What are other reasons why employee retention is important?

Some other reasons may be morale of the workers, ability to recruit, reputation and image of the company, etc.

Compensating Teams

Team-based pay programs are more challenging than individual pay systems. The two most common methods for teams involve: Skill-Based: Pay is increased as skill increases. Example: Eastman Chemical uses this system. Gain-Sharing: Pay is increased as performance increases. Example: Nucor Steel uses this system. -Skill-based pay is increased when teams learn and apply new skills. Gain sharing bases team bonuses on improvements over previous performance.

What is the EEOC and what was the intention of affirmative action?

The Equal Employment Opportunity Commission was created by the Civil Rights Act. The EEOC was permitted to issue guidelines for acceptable employer conduct in administering equal employment opportunity. Affirmative action is the most controversial policy of the EEOC and was designed to "right past wrongs" by increasing opportunities for minorities and women.