Chapter 15
probationary period
A specific time frame (typically three to six months) during which a new hire can prove his or her worth on the job before he or she becomes permanent.
on-the-job training
A training approach that requires employees to simply begin their jobs—sometimes guided by more experienced employees—and to learn as they go.
compressed workweek
A version of flextime scheduling that allows employees to work a full-time number of hours in less than the standard workweek.
management development
Programs to help current and potential executives develop the skills they need to move into leadership positions.
apprenticeships
Structured training programs that mandate that each beginner serve as an assistant to a fully trained worker before gaining full credentials to work in the field.
compensation
The combination of pay and benefits that employees receive in exchange for their work.
job analysis
The examination of specific tasks that are assigned to each position, independent of who might be holding the job at any specific time.
flextime
A scheduling option that allows workers to choose when they start and finish their workdays, as long as they complete the required number of hours.
Equal Employment Opportunity Commission (EEOC)
A federal agency designed to regulate and enforce the provisions of Title VII.
performance appraisal
A formal feedback process that requires managers to give their subordinates feedback on a one-to-one basis, typically by comparing actual results to expected results.
Title VII
A portion of the Civil Rights Act of 1964 that prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on race, color, religion, sex, or national origin for employers with 15 or more workers.
Explain the importance of human resources to business success.
A world-class workforce can lead straight to world-class performance. Human resource managers can directly contribute to that goal by recruiting top talent, promoting career development, and boosting organizational effectiveness. Yet human resource departments typically face numerous challenges in making this happen.
cafeteria-style benefits
An approach to employee benefits that gives all employees a set dollar amount that they must spend on company benefits, allocated however they wish within broad limitations.
job description
An explanation of the responsibilities for a specific position.
structured interviews
An interviewing approach that involves developing a list of questions beforehand and asking the same questions in the same order to each candidate.
Discuss key human resource issues in today's economy
As the economy and society continue to change rapidly, a number of issues have emerged that directly affect human resources. As the recession tightened its grip in 2009, massive layoffs thrust human resources into turmoil. The growing wage gap between senior managers and the average employee has created tension for a number of stakeholders. Older workers have begun to retire, while younger workers often bring an unprecedented sense of entitlement. Many women are leaving traditional jobs. Workers are actively seeking more flexibility and a better work-life balance. And the number of costly employee lawsuits has skyrocketed in the past couple of decades.
VARIABLE PAY SYSTEM
Commission Bonuses Profit sharing Stock options Pay for knowledge
contingent workers
Employees who do not expect regular, full-time jobs, including temporary full-time workers, independent contractors, and temporary agency or contract agency workers.
Civil Rights Act of 1964
Federal legislation that prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on race, color, religion, sex, or national origin.
Discuss human resource planning and core human resources responsibilities.
Human resource planning objectives must flow from the company's master plan, and the HR strategies must reflect company priorities. The first step should be to determine where the firm currently stands in terms of human resources and to forecast future needs. Other key areas of focus follow: Recruitment: The key to recruitment is finding qualified candidates who fit well with the organization. The right people can come from either internal or external labor pools. Selection: Choosing the right person from a pool of candidates typically involves applications, interviews, tests, and references. The terms of the job offer itself play a role as well. Training: The training process begins with orientation but should continue throughout each employee's tenure. Options include on-the-job training, off-the-job training, and management development. Evaluation: Performance feedback should happen constantly. But most firms also use formal, periodic performance appraisals to make decisions about compensation, promotions, training, transfers, and terminations. Compensation: Compensation includes both pay and benefits. Interestingly, companies that offer higher compensation generally outperform their competitors in terms of total return to shareholders. Separation: Employees leave their jobs for both positive and negative reasons. When the separation is not voluntary—e.g., layoffs or termination—fairness and documentation are critical.
benefits
Noncash compensation, including programs such as health insurance, vacation, and childcare.
Explain the key federal legislation that affects human resources.
Perhaps the most influential piece of employment legislation is the Civil Rights Act of 1964. Title VII of this act prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on race, color, religion, sex, or national origin. Additional legislation prohibits discrimination based on pregnancy, age, and disability. The Equal Employment Opportunity Commission (EEOC) enforces the provisions of Title VII. Affirmative action programs—while controversial—have received support from the U.S. Supreme Court. And human resource managers must guard against sexual harassment in the organization, since it violates Title VII.
affirmative action
Policies meant to increase employment and educational opportunities for minority groups—especially groups defined by race, ethnicity, or gender.
orientation
The first step in the training and development process, designed to introduce employees to the company culture and provide key administrative information.
human resource (HR) management
The management function focused on maximizing the effectiveness of the workforce by recruiting world-class talent, promoting career development, and determining workforce strategies to boost organizational effectiveness.
wages
The pay that employees receive in exchange for the number of hours or days that they work.
salaries
The pay that employees receive over a fixed period, most often weekly or monthly.
internal recruitment
The process of seeking employees who are currently within the firm to fill open positions.
external recruitment
The process of seeking new employees from outside the firm.
job specifications
The specific qualifications necessary to hold a particular position.
Outline challenges and opportunities that the human resources function faces.
While HR workers tend to have strong people skills, many lack the business acumen to contribute directly to broad company objectives, and other departments often view HR as either irrelevant or adversarial. HR can respond to these issues by demonstrating that they understand the strategic goals of the company, the core customers, and the competition. The best HR departments use this knowledge to raise the value of the firm's human capital, which in turn increases the value of the firm itself.
telecommuting
Working remotely—most often from home—and connecting to the office via phone lines, fax machines, or broadband networks.
sexual harassment
Workplace discrimination against a person based on his or her gender.
