BUSA Chapter 6

Job Specification

Detailed list of the qualifications needed to perform a job, including required skills, knowledge, and abilities

application

Document completed by a job applicant that provides factual information on the person's education and work background

downsizing

Practice of eliminating jobs to cut costs

collective bargaining

Process by which management and union-represented workers settle differences

strategic human resource planning

Process of developing a plan for satisfying an organization's human resource needs

Selection

Process of gathering information on candidates, evaluating their qualifications, and choosing the right one. At the very least, the process can be time-consuming—particularly when you're filling a high-level position—and often involves several members of an organization.

Recruiting

Process of identifying suitable candidates and encouraging them to apply for openings in the organization

arbitration

Process of resolving a labor-contract dispute by having a third party study the situation and arrive at a binding agreement

Equal Employment Opportunity Commission (EEOC)

The federal agency in charge of enforcing federal laws on employment discrimination. enforces a number of federal employment laws, including the following: Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race, color, religion, sex, or national origin. Sexual harassment is also a violation of Title VII. The Equal Pay Act of 1963, which protects both women and men who do substantially equal work from sex-based pay discrimination. The Age Discrimination in Employment Act of 1964, which protects individuals who are forty or older. Title I and Title V of the Americans with Disabilities Act of 1990, which prohibits employment discrimination against individuals with disabilities.

Discrimination

The practice of treating a person unfairly on the basis of a characteristic unrelated to ability. Under federal law, it's illegal to discriminate in recruiting and hiring on the basis of race, color, religion, sex, national origin, age, or disability. (The same rules apply to other employment activities, such as promoting, compensating, and firing.)

orientation

Activities involved in introducing new employees to the organization and their jobs

Flextime

Alternative work arrangement that allows employees to designate starting and quitting times

Profit-Sharing Plans

An incentive program that uses a predetermined formula to distribute a share of company profits to eligible employees

Wages

Compensation paid to employees based on the number of hours worked

Job Rotation

Job redesign strategy that allows employees to rotate from one job to another on a systematic basis

Job Sharing

Work arrangement in which two people share one full-time position

Incentive Programs

A program designed to financially reward employees for good performance

human resource management (HRM)

All actions that an organization takes to attract, develop, and retain a quality employee. Attracting talented employees involves the recruitment of qualified candidates and the selection of those who best fit the organization's needs. Development encompasses both new-employee orientation and the training and development of current workers. Retaining good employees means motivating them to excel, appraising their performance, compensating them appropriately, and doing what's possible to retain them.

formal appraisals provide the following:

An opportunity for managers and employees to discuss an employee's performance and to set future goals and performance expectations A chance to identify and discuss appropriate training and career-development opportunities for an employee Formal documentation of the evaluation that can be used for salary, promotion, demotion, or dismissal purposes disadvantages, most stem from the fact that appraisals are often used to determine salaries for the upcoming year. Consequently, meetings to discuss performance tend to take on an entirely different dimension: the manager appears judgmental (rather than supportive), and the employee gets defensive. It's the adversarial atmosphere that makes many managers not only uncomfortable with the task but also unlikely to give honest feedback. (They tend to give higher marks in order to avoid delving into critical evaluations.) HR professionals disagree about whether performance appraisals should be linked to pay increases. Some experts argue that the connection eliminates the manager's opportunity to use the appraisal to improve an employee's performance. Others maintain that it increases employee satisfaction with the process and distributes raises on the basis of effort and results.

Bonuses

Annual income is given to employees (in addition to salary) based on company-wide performance

Two-Factor Theory

Another psychologist, Frederick Herzberg, set out to determine which work factors (such as wages, job security, or advancement) made people feel good about their jobs and which factors made them feel bad about their jobs. He surveyed workers, analyzed the results, and concluded that to understand employee satisfaction (or dissatisfaction), he had to divide work factors into two categories: Motivation factors. Those factors that are strong contributors to job satisfaction Hygiene factors. Those factors that are not strong contributors to satisfaction but that must be present to meet a worker's expectations and prevent job dissatisfaction

off-the-job training

Formal employee training that occurs in a location away from the office

Job Enlargement

Job redesign strategy in which management enhances a job by adding tasks at similar skill levels

Lockout

Management tactic of closing the workplace to union workers

Boycotting

Method used by union members to voice displeasure with certain organizations by refusing to buy the company's products and encouraging others to follow suit

StrikeBreakers

Nonunion workers who are willing to cross picket lines to replace strikers

Labor Unions

Organized group of workers that bargains with employers to improve its members' pay, job security, and working conditions

Turnover

Permanent separation of an employee from a company

Strike

Union tactic by which workers walk away from their jobs and refuse to return until a labor-management dispute has been resolved

Employees generally want their managers to tell them three things:

what they should be doing, how well they're doing it, and how they can improve their performance.

employed at will

which means that both you and your employer have the right to terminate the employment relationship at any time. You can quit whenever you want (which is good for you), but your employer can fire you whenever it wants (which is obviously bad for you).

Mediation

Approach used to resolve a labor-contract dispute by following the recommendation of an impartial third party

Union Structure

At the bottom are locals that serve workers in a particular geographical area. Certain members are designated as shop stewards to serve as go-betweens in disputes between workers and supervisors. Locals are usually organized into national unions that assist with local contract negotiations, organize new locals, negotiate contracts for entire industries, and lobby government bodies on issues of importance to organized labor. In turn, national unions may be linked by a labor federation, such as the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), which provides assistance to member unions and serves as the principal political organ for organized labor.

The Basic Three-Step Process

Before managers can measure performance, they must set goals and performance expectations and specify the criteria (such as quality of work, quantity of work, dependability, initiative) that they'll use to measure performance. At the end of a specified time period, managers complete written evaluations that rate employee performance according to the predetermined criteria. Managers then meet with each employee to discuss the evaluation. Jointly, they suggest ways in which the employee can improve performance, which might include further training and development.

Benefits

Compensation other than salaries, hourly wages, or financial incentives Legally required benefits (Social Security and Medicare, unemployment insurance, workers' compensation) Paid time off (vacations, holidays, sick leave) Insurance (health benefits, life insurance, disability insurance) Retirement benefits it costs an employer 30 percent of a worker's salary to provide the same worker with benefits. If you include pay for time not worked (while on vacation or sick and so on), the percentage increases to 41 percent. So if you're a manager making $100,000 a year, your employer is also paying out another $41,000 for your benefits. The most money goes for health care (8 percent of salary costs), paid time off (11 percent), and retirement benefits (5 percent)

Salary

Compensation paid for fulfilling the responsibilities of a position regardless of the number of hours required to do it

commission

Compensation paid to employees based on the dollar amount of sales that they make

Peicework

Compensation paid to workers according to the quantity of a product that they produce or sell

on-the-job training

Employee training (often informal) that occurs while the employee is on the job

Interview

Formal meeting during which the employer learns more about an applicant and the applicant learns more about the prospective employer

performance appraisals

Formal process in which a manager evaluates an employee's work performance

job analysis

Identification of the tasks, responsibilities, and skills of a job, as well as the knowledge and abilities needed to perform it. Managers also use the information collected for the job analysis to prepare two documents: Job Description and Job Specification

Stock-Option Plans

Incentive program that allows eligible employees to buy a specific number of shares of company stock at a set price on a specified date

360-degree feedback

Instead of being evaluated by one person, how would you like to be evaluated by several people—not only those above you in the organization but those below and beside you? The approach is called 360-degree feedback, and the purpose is to ensure that employees (mostly managers) get feedback from all directions—from supervisors, reporting subordinates, coworkers, and even customers. If it's conducted correctly, this technique furnishes managers with a range of insights into their performance in a number of roles.

Motivation

Internally generated drive to achieve a goal or follow a particular course of action

Job Enrichment

Job redesign strategy in which management enriches a job by adding tasks that increase both responsibility and opportunity for growth

employment-at-will

Legal doctrine that allows an employer to fire an employee at will. By and large, management can no longer fire employees at will: usually employers must show just cause for termination, and, in some cases, they must furnish written documentation to substantiate the reasons for terminating an employee. If it's a case of poor performance, the employee is generally warned in advance that his or her current level of performance could result in termination. As a rule, managers give employees who have been warned a reasonable opportunity to improve performance. When termination is unavoidable, it should be handled in a private conversation, with the manager explaining precisely why the action is being taken.

job redesign

Management strategy used to increase job satisfaction by making jobs more interesting and challenging. Common strategies include job rotation, job enlargement, and job enrichment.

The most effective motivators, it would seem, are closely aligned with

Maslow's higher-level needs and Herzberg's motivating factors.

Hiring Externally

On the other hand, entry-level jobs usually have to be filled from outside the company. Even when you hire internally, you'll probably have to fill the promoted employee's position. Going outside gives you an opportunity to bring fresh ideas and skills into the company. In any case, it's often the only alternative, especially if no one inside the company has just the right combination of skills and experiences.

job description

Outline of the duties and responsibilities of a position

Upward Feedback

Some experts, however, regard the 360-degree approach as too cumbersome. An alternative technique, called upward feedback, requires only the manager's subordinates to provide feedback.

Telecommuting

Telecommuting means that you regularly work from home (or from some other nonwork location), at least some of your work days.

contingent workers

Temporary or part-time worker hired to supplement a company's permanent workforce. Most of them are independent contractors, consultants, or freelancers who are paid by the firms that hire them. Others are on-call workers who work only when needed, such as substitute teachers. Still others are temporary workers (or "temps") who are employed and paid by outside agencies or contract firms that charge fees to client companies. Even if they work full-time, contingent workers do not receive benefits.

Union Tactics

The tactics available to the union include striking, picketing, and boycotting.

Equity Theory

Theory of motivation that focuses on our perceptions of how fairly we're treated relative to other. Applied to the work environment, this theory proposes that employees analyze their contributions or job inputs (hours worked, education, experience, work performance) and their rewards or job outcomes (salary, benefits, recognition). Then they create a contributions/rewards ratio and compare it to those of other people. The basis of comparison can be any one of the following: Someone in a similar position Someone holding a different position in the same organization Someone with a similar occupation Someone who shares certain characteristics (such as age, education, or level of experience) Oneself at another point in time When individuals perceive that the ratio of their contributions to rewards is comparable to that of others, they perceive that they're being treated equitably; when they perceive that the ratio is out of balance, they perceive inequity.

Hierarchy-of-Needs Theory

Theory of motivation that holds that people are motivated by a hierarchical series of unmet needs Psychologist Abraham Maslow's Theory we are motivated by the five unmet needs At the bottom are physiological needs (such life-sustaining needs as food and shelter). Working up the hierarchy we experience safety needs (financial stability, freedom from physical harm), social needs (the need to belong and have friends), esteem needs (the need for self-respect and status), and self-actualization needs (the need to reach one's full potential or achieve some creative success). We must satisfy lower-level needs before we seek to satisfy higher-level needs. Once we've satisfied a need, it no longer motivates us; the next higher need takes its place.

Expectancy Theory

Theory of motivation that proposes that employees will work hard to earn rewards they value and consider obtainable

Two Factor Theroy

Theory that holds that motivation involves both motivation factors (which contribute to job satisfaction) and hygiene factors (which help to prevent job dissatisfaction Note that motivation factors (such as promotion opportunities) relate to the nature of the work itself and the way the employee performs it. Hygiene factors (such as physical working conditions) relate to the environment in which it's performed. (Note, too, the similarity between Herzberg's motivation factors and Maslow's esteem and self-actualization needs.)

Needs Theory and the Workplace

There are two key points: (1) not all employees are driven by the same needs, and (2) the needs that motivate individuals can change over time. Managers should consider which needs different employees are trying to satisfy and should structure rewards and other forms of recognition accordingly.

Picketing

Union tactic of parading with signs outside a factory or other facility to publicize a strike

grievances

Union worker complaints on contract-related matters

Turnover

Voluntary

structured interviews

a series of standard questions. You're judged on both your answers and your ability to communicate orally.

Hiring internally

sends a positive signal to employees that they can move up in the company—a strong motivation tool and a reward for good performance. In addition, because an internal candidate is a known quantity, it's easier to predict his or her success in a new position. Finally, it's cheaper to recruit internally. According to the Saratoga Institute, the average cost of hiring an external candidate is 1.7 times greater than the cost of promoting someone from inside the company. In addition, between 40 and 60 percent of those hired from outside the company are unsuccessful compared with only 25 percent of those promoted from within.