MGMT Chapter 11

Termination

Dismissal of employees for poor performance or other reasons

De-layer

Downsizing can be used to __ tall organizations

Talented

Downsizing must identify and protect __ people

Last resort

Downsizing should be a __ __ and must be done with careful analysis and strategic thinking

Feedback

During __, managers should provide: Understanding, Support, Specific and constructive information related to clear goals or behaviors, and an opportunity for the employee to respong

Human Resources

Effective __ __ can help create a competitive advantage

Private

Employees should always be fired in __

Phased retirement

Employees transition to retirement by working reduced hours before completely retiring

Advantages of internal recruiting

Employers know their employees; Employees know their organization; employees may be motivated by advancement; outside recruitment may demoralize employees

Federal Employment Laws

Employers may not discriminate in employment decisions based on sex, age, religion, color, national origin, race, disability

Labor supply forecast

Estimates the number and quality of its current employees and the available external supply of workers

Compensation decisions

Examples: Piecework, commission, profit sharing, employee stock ownership plans (ESOP), and stock options

Internal recruiting

the process of developing a pool of qualified job applicants from people who already work within the company; considering current employees for promotions and transfers

Internal factors of compensation decisions

The organization's compensation policy, the worth of each job, and the employee's relative worth, and the employer's ability to pay

Downsizing

The planned elimination of jobs in a company. It may decrease productivity and lead to loss of skilled workers

Performance appraisal

The process of appraising how well employees are doing their jobs

Human Resource Management (HRM)

The process of finding, developing, and keeping the right people to form a qualified work force and is one of the most difficult and important of all management tasks

Selection

The process of gathering information about job applicants to decide who should be offered a job; a set of methods used to make decisions about whom to hire

Outplacement

The process of helping people who have been dismissed from the company to regaining employment elsewhere

Diversity training

programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manager a diversified workforce

Administrative appraisal

provide managers with information they need to make salary, promotion, and dismissal decisions; helps employees understand and accept the basis of those decisions

Training

providing opportunities for employees to develop the job-specific skills experience, and knowledge they need to do their jobs or improve their current performance

Advantages of E-learning

reduce travel costs, increase productivity, decrease employee stress

Subjective performance measures

require that someone judge or assess a worker's performance

Team training

teaches employees the skills they need to work together and helps them to interact

Pay structure

the choice of how to price different jobs within the organization

Employment at will

the legal concept that an employee may be terminated for any reason

Programming

the organization implements specific human resource activities

Validation

the process of determining how well a selection test or procedures predict future job performance

Evaluating training

4 ways: Reactions, learning, behavior, results

Employment separation

A broad term covering the loss of an employee for any reason

Imitate

A group of well-chosen, motivated people is difficult to imitate

Semi-structured interviews

A hybrid of Stuctured and Unstructured interviews

Individual incentive plan

A plan to compare a worker's performance against an objective standard, with pay determined by the employees' performance

Wonderlic Cognitive Ability Test

A popular group intelligence test used to asses the aptitude of prospective employees for leaning and problem-solving in a range of occupations

Job Analysis

A purposeful, systematic process for collecting information on the important work-related aspects of a job; Is a tool for determining what is done on a give job and what should be done on that job

Job Specification

A summary of the qualifications needed to successfully perform a job; describes the skills, knowledge, abilities, and other characteristics needed to do it

Job Description

A written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job; tells about the job itself

External Recruiting

Advertising, Employee referrals, walk-ins, outside organizations, employment services, special events, internet job sites

External Recruiting processes

Advertising, Employee referrals, walk-ins, outside organizations, employment services, special events, internet job sites

Application forms

Ask only for valid, job-related information

Validity

Assess the accuracy of the selection test

Job analysis

Base performance standards on __ __

Guidelines for performance appraisales

Base performance standards on job analysis; communicate performance standards to employees; evaluate employees on specific performance-related behaviors rather than on a single global or overall measure; document the performance appraisal process carefully; use more than one rater; take legal considerations into account

Downsizing

Becoming more common to cut costs, occurs during mergers where functions are consolidated and new technologies and business practices replace jobs

Observable

Behavioral appraisals focus on __ aspects of performance

Advantages of External Recruiting

Brings in new blood; can inspire motivation; sources of outside applicants include job boards, company web sites, employee referrals, newspaper ads, and college campus recruiting

Employees

Can be an organization's most valuable resource

Labor Demand forecast

Can be the most difficult part of HR Planning

Reward systems

Can serve the strategic purposes of attracting, motivating, and retaining people

Develop analytical and problem-solving skills

Case studies, coaching and mentoring, group discussions

Pay structure decision

Concerned with internal pay distribution

External Factors of compensation decisions

Conditions of the labor market, area wage rates, the cost of living, the use of collective bargaining, and legal requirements

Employment references

Contacting previous employers or coworkers to learn more about the candidate

Evaluating

Dealing with satisfaction, quality, and productivity issues, discuss employee separation

Labor supply forecast

Derived from the organization's perspective and experience with turnover, terminations, retirements, promotions, and transfers

Internal and External

Designing an appropriate pay plan depends on __ and __ factors

Evaluating

Determine whether human resources are producing the results needed to contribute to the organization's business plan

Labor demand forecasts

Determining how many and what type of people are needed

Termination interviews

Discussion between a manager and an employee about the employee's dismissal

HR Programming

Explain how companies use recruiting to find qualified job applicants; describe the selection technique and procedures that companies use when deciding which applicants should receive job offers' describe how to determine training needs and select the appropriate training methods; discuss how to use performance appraisal to give meaningful performance feedback; describe basic compensation strategies

HR Planning

Explain how different employment laws affect human resource practice; Performing job analyses and its impact

360 Degree Feedback

Feedback comes from four sources: The boss, subordinates, peers and coworkers, and the employees themselves

Impart information and knowledge

Films, videos, lectures, planned readings

Strategic, Legal, Ethical, and Financial

HR leaders need to advocate these 4 sets of values to best serve their organization

Demographic trends

Have contributed to a shortage of skilled and highly educated workers

Labor supply forecasts

How many and what types of employees the organization actually will have

Labor Deficit

How to fix a __ __: Hire new employees; Promote current employees to new positions; Outsource work to contractors

Labor Surplus

How to fix a __ __: Use attrition; Lay off employees; Transfer employees to other areas

Firing

In most situations, __ should not be the first option

Assessment centers

In-basket exercise, leaderless group discussion

360 Degree Appraisal

Involves feedback from all individuals involved with the employee and creates a complete picture

HRM

Involves: Attracting talent; Maintaining a well-trained, highly motivated and loyal workforce; Managing diversity; Devising effective compensation systems; Managing layoffs; Containing healthcare and pension costs

Agile

Is downsizing is done appropriately it can make firms more __

Job-related

Job analyses, descriptions, and specifications help companies meet legal requirements that HR decisions be __

Demand>Supply

Labor Deficit: __ > __

Demand<Supply

Labor Surplus: __<__

Organizational plans

Labor demand forecasts are derived from __ __

Resumes

Pose a problem because of false data

Disadvantages of internal recruiting

Limited applicant pool; Inhibit a company from changing the nature or goals of the business by bringing in outside candidates

Planning

Managers must know the organization's business plans to make sure they have the right number and kind of people

Disadvantages of External Recruiting

More difficult to do than Internal Recruiting; Adjustment and orientation time is longer; Morale Problems can develop among those employees within the organization who feel qualified for the job

4 phases of a training program

Needs assessment, training program design, decisions about training methods and location, evaluate the training program's effectiveness

Unstructured Interviews

Nondirective selection technique where the interviewer asks different interviewees different questions

Disadvantages of E-learning

Not always the appropriate method; not effective for changing behavior or developing problem-solving skills; require significant investment in technology; many employees find it boring and un-engaging

Voluntary separation

Occurs when employees decide to quit or retire

Involuntary separation

Occurs when employers decide to terminate or lay off employees

Early retirement incentive program (ERIP)

Offer financial benefits to employees to encourage them to retire early; reduces number of employees, lowers costs, creates new openings

Practice, learn, or change job behaviors

On-the-job training, role-playing, simulations and games, vestibule training

Group incentive plan

Pay is based on group performance

Merit pay systems

Pay raises and bonuses are based on the merit rating received from their boss

Optional employee benefits

Pension plans, hospital insurance, 401K plans, Retirement programs

Success

People can be organized for __ - when properly put together, teams can be deployed quickly

Employee self-appraisals

Performance appraisal feedback sessions should be based on __ __ __

External Recruiting

Process of developing a pool of qualified job applicants from outside the company

Bona fide occupational qualification (BFOQ)

Reasonably necessary to the normal operation of that particular business

Reliability and validity

Regardless of which test is used to select employees, these 2 issues must be addressed

Gain sharing plans

Reward employees for increasing productivity or saving money in areas under their direct control

Structured Interviews

Selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers

Structured interview questions

Situational questions, behavioral questions, background questions, job-knowledge questions

Talent is rare

Skills and knowledge and abilities are not equally available to all competitors

Selection tests

Specific ability tests, cognitive ability tests, biographical data, work sample tests, assessment centers

Stock market values

Studies have shown that effective HR correlates to higher __ __ __ of companies

Development

Teaching managers and professional employees broad skills needed for their present and future jobs (may not be organization specific)

15

Termination interview: Complete the session within __ minutes

50;12

The Wonderlic test consists of __ multiple choice questions to be answered in __ minutes

Recruitment

The development of a pool of applicants for jobs in an organization- can be internal or external

Pay variability decsions

The extent to which employees' pay varies with individual and company performance

Compensation

The financial and nonfinancial rewards that organizations give employees in exchange for their work

Employee turnover

The loss of employees who choose to leave the company

20

The score on the Wonderlic Test intended to indicate average intelligence

10

The score on the Wonderlic test that suggests a person is literate

Training and Development

These are needed because continual improvement increases both personal and organizational effectiveness

Planning, Programming, and Evaluating

Three stages of HR Management

Compressed pay structures

Typically have fewer pay levels and smaller differences in pay between levels

Job Analysis

Used in __ __: Work activities; Tools and equipment used to do the job; Context in which the job is performed; The personnel requirements for performing the job

Background checks

Used to verify accuracy of information that applicants provide about themselves; used to decrease liability for negligent hiring

Lawsuits

Using job analysis, descriptions, and specifications helps employers to defend themselves against __ involving employment practices

Employee benefits required by law

Worker's compensation, social security, unemployment insurance, medical insurance

HR & Strategy

__ & __ decisions must be linked through staffing decisions, benefits and other methods

Effective Systems

__ __ take into account the organization, the position, and the individual

Remedial and Training

__ and __ budgets have increased to address issues pertaining to external environments

Frame-of-reference training

a group of trainees learns how to do performance appraisals by watching a video of an employee at work and then evaluating the person's performance; process is repeated until the differences are minimized

Reliability

consistency of test scores over item and across alternative measurements

Pay level plan

decisions about whether to pay workers at a level above, below, or at current markets wages

Job evaluation

determines the worth of each job by determining market value of skills required to perform it

Orientation

familiarizes the new employees with their jobs, work units, and the organization in general

Management training

focuses on improving manager's people skills

Behavior

how much employees actually changed their on-the-job behavior because of training

Learning

how much employees improved their knowledge or skills

Results

how much training improved job performance, such as increased sales or quality, or decreased costs

Reactions

how satisfied trainees were with the program

Hierarchical pay structures

involve big differences from one pay level to another

HR Management

involves getting the right number of qualified people into the right job at the right time

Trait apprasial

involves judgments about employee performance on the possession of a trait such as initiative, leadership, and attitude

Objective performance measures

measures of performance that are easily and directly counted or quantified

Needs assessment

the process of identifying and prioritizing the learning needs of employees (the jobs, people and departments that need training)

People create value

they can lower costs, provide something unique to customers

Training program design

training objectives and content are established from the needs assessment

Developmental appraisal

use information to identify and plain training, experience, or other improvement that employees require

Profit-sharing plans

usually implemented in the division organization as a whole, although some incentives may still be tailed to unit performance