MGT 3361 Ch 15

15.3 selecting employees Page 398

For commonly lien use tools for selecting employees are: - The application form - resumes - The selection interview - Testing

Role-playing (ways to train)

In the role-playing method, employees take on new roles within the company, acting out the situation as realistic as possible. If the sessions are videotape, playing back the tape allows for employee feedback and group discussions.

Lecture. (ways to train)

Lecturing involves one or more individuals communicating instructions or ideas to others. The technique is often used because of its low cost, the speed with which information can be covered, and the large number of individuals who can be accommodated in each session. Employ participation is limited, and no allowance is made for individual employee differences.

Employee training and development page 404-405

Often overlooked by manager is the use of employee Training and employee development as motivating tools. Training involves increasing the employees knowledge and skills to meet a specific job or company objectives. It is usually task and short term oriented. Development by comparison is more forward-looking, providing the employee with the knowledge, skills, and abilities needed to except a new and more challenging job assignment within the company. A trained workforce can give your business a competitive advantage that, once gain, is not easily duplicated by competitors. Training and development assures your firm a place in tomorrow's competitive environment.

Hiring the right employees page 391

One of the most important decisions a small business owner makes is the hiring of the first and then successive employees. Not only do employees cause an increase in cost, but also hiring a bad employee can negatively impact the business. Employee turnover creates disruption in accompanies overall productivity. The society of human resource management reports that on average 36% of all new hirees fail within the first 18 months: 40% of senior managers hired from outside the company also filled with 18 months: and the cost of replacing employees can reach a third of their annual salary. Small business owners need to realize that their most valuable assets walk out the door each day at closing time.

Bonuses

One time rewards provided to employees for exceeding performance standards.

Benefit page 408

Part of an employeecompensation compensation in addition to wages and salaries. Health and life insurance, paid vacation time, pension and education plans, and discounts on company products are examples of benefits. The cost of offering in administrative benefits has increased greatly in recent decades up from 25.5% of total payroll in 1961 to about 38% today. According to the most recent employee job satisfaction survey report, job security was number one on the list of very important contra beaters to job satisfaction and in benefits was number two. Healthcare remains the most important benefit, with paid time off second on the list. Healthcare remains the most important benefit, with pay time off second on the list. 62% of the respondents felt healthcare benefits were very important, and 66% said they were satisfied with the healthcare benefits provided to them by the employers compared to 71% of respondents who were very satisfied with their paid time off.

Programmed learning (ways to train)

Programmed learning or instruction is achieved through use of a computer or printed text. The employee receives immediate feedback and learns at their own speed. This method works well for almost any type of training. However outside materials most generally be purchased and the learning must be self-directed and motivated for this technique to be affective.

Job specifications Page 393

The identification of the knowledge, skills, abilities, and other characteristics and employee would need to perform the job. In writing the specific Quetion 's, take care to ensure the stated requirements are truly necessary for successful performance of the job. For example: in some cases, stating that a college degree is a requirement for a given job may be difficult, if not impossible, to prove if questioned by an EEOC representative. For this reason you may wish to add a qualifier, such as or equivalent, and always limit the specifications to those that are truly job-related and necessary.

Job Analysis Page 392

The process of gathering all the information about a particular job, including a job description and the job specifications. The recruitment process involves attracting talented individuals to your company. To achieve this goal, you must be able to 1. Defined the positions to be filled 2. State the qualifications needed to perform them successfully The job analysis indicates what is done on the job, how it is done, who does it, and to what degree. Equal employment opportunity commission EEOC, both entities urge that the information from a job analysis be used to ensure equal employment opportunity.

Titel VII Page 395

Under title seven and other anti-discrimination laws, you may not discriminate based upon gender, race, religion, color, or national origin.

Flexible benefit packages Page 409

With the diversity in today's workforce, one benefit package sell them fits all. Since all employees do not have the same needs, a flexible benefit package, or cafeteria plan, allows each employee to select the benefit that best suits their financial and lifestyle needs.

Employee handbook

Written rules and regulations informing employees of their rights and responsibilities in the employment relationship. To be affective the rules and regulations must be up-to-date easily understood and most important communicated to employees. And effective way to achieve this latter goal is to go over the employee handbook during employee orientation and have employees sign a statement and knowledge Ing its receipt. The following are suggestions for what to include in your employee handbook: - The disclaimer: Every employee handbook should have a disclaimer specifying that the handbook is not a contract of employment. Without such a notice, a fired employee might attempt to sue you for breach of contract. A standard disclaimer about employment at will might state, nothing in this handbook should be construed to imply there exist a contract of employment. Employment with ABC company is strictly at-will and can end upon the discretion of the employer. - employment policies. Describes the hours, regular and overtime pay, performance reviews, Baecation's in holidays, equal employment opportunities, and other items that affect employment. - benefits. Related insurance plans, disability plans, Worker's Compensation, retirement programs, and tuition reimbursement. - employee conduct. Explain your expectations on everything you classify as important, from personal hygiene to dress codes to employee development. - glossary. Every company has its own terms and jargon. Explain terminology important to your business. - organization chart. Include charts and job descriptions to give employees a sense of their place in the organization and how all the parts of the business fit together.

Keep the following factors in mind when trying to hire the best. Page 397

- keep your focus on hiring the best. Do not settle for second-best. - have a current written job description. Do not use the last one written because it is convenient. - use a written rating system so that you do not forget about attributes of early candidates. This is also important if you have to defend your employee choice. - overqualified is better than underqualified - A person with a long history of self employment will, in all probability, return to self-employment as soon as possible. Hired this person as a consultant if you need her skills. - test specific skills and industry knowledge you want to observe the candidate performing the work to be done during testing.- check the candidates background and all referenced - keep a written record of all terms of employment.

As an employer you are required by law to do the following

- provide time off for employees to vote, serve on a jury, and perform military service - meet all Worker's Compensation requirements - Pay state and federal unemployment taxes, providing benefits for unemployment workers - contribute to state short term disability programs in states where such programs exist - Comply with the federal family and medical leave act FMLA if your business has 50 or more employees. Check the requirements for your state. Some business with less than 50 employees may need to comply if state regulations so dictate

As an employer you are not required to provide the following

- retirement plans - Health plans if over 50 full-time equivalent employees, you must comply with the fordable care act - dental or vision plans - Life insurance plans - educational assistance - discounts on products and services - paid vacations, holidays, or sick leave

Appeal process page 412

A formal procedure following employees to seek review of a discipline and measure at the higher level of management. The final component of an effective disciplinary program is an appeal process. The most common appeal process is non-union companies relies on an open door policy, a procedure whereby employees seek a review of the disciplinary decision at the next level of management.

Employee development

A plant effort to provide employees with the knowledge, skills, and abilities needed to except new and more challenging job assignments within the company.

Employee training

A plant effort to teach employees more about their jobs so as to improve their performance and motivation.

Performance appraisal

A process of evaluating and employees job related achievements. A well-designed performance appraisal system is the second sensual component of a fair and just disciplinary policy. Not only does a sound performance appraisal process document the need for possible discipline, but it also affords management the opportunity to address problem areas before they become disciplinary concerns. Performance evaluation should occur every six months and more frequently during the probationary period. Copies of the evaluation should be included in the employees personal file. As performance evaluations occur make sure benchmarks are established. They should be tied to the job descriptions. Meet with the employee to discuss the performance appraisal lastly.

Job description

A written description of a non-management position that covers the title, duties, and responsibilities involved in the job. A job description identifies the duties, task, and responsibility of the position. Each job description should include the following elements: - Job identification: the job title, location, or department within the company, and date of origin should be included in this introductory section. This section might also include the job code, salary range, pay classification, and analysis name. - Job summary: this summary should outline the job holders responsibilities, the scope of her authority, and superiors to whom she is to report. - List of essential duties: although this list may contain both essential and nonessential duties, the Americans with disability act ADA requires that each be clearly identified, because employment decisions may be based only on the essential components of the job. The duties should be listed in order of importance with the most important duty first. Any duty that will represent at least 5% of employees time should be included. - task statement: task statements detail the logic steps or activities needed to complete the overall duties. These statements should focus on the outcomes or results rather than on the manner in which they are performed. For example: a loading dock worker might move 50 pound boxes from the unloading dock to the warehouse rather than lift and carry 50 pound boxes from the unloading dock to the warehouse. Task statements help to identify the knowledge, skills, abilities, and educational levels needed to perform the job and help to establish performance standards for the position. These statements are valuable in complying with various federal and state employment provisions.

Conferences. (ways to train)

Also term group decisions, the conference technique is similar to the lecture method, except that employees are actively involved in the learning. Although this technique produces more ideas then lectures does, it takes more time, and only a limited number of employees can't participate.

Incentive pay programs/bonuses/Profit sharing programs.

An incentive pay program is a reward system that ties performance to compensations. Two common types of incentive pay programs involve the awarding of bonuses and profit-sharing programs. bonuses are generally out on a one time basis to reward employees for their high performance. They may be given to either an individual employee or a group of employees. Bonus are frequently awarded when an employee meets objectives set for attendance, production, sales, cost saving, quality, or performance. To be an effective motivator a bonus must be tied to a specific measure of performance. Profit sharing plan, employers usually make the same percentage of salary contributions to each workers account on a semi annual or annual basis. The percentage of contributions varies according to the amount of profits earned making the system highly flexible. Most employers believe these plans serve to motivate workers by giving them a sense of partnership with the employer. Profit-sharing plans are a main stream in many small business owners compensations plans.

Application forms and resumes page 398

Application forms and resumes contain essentially the same information. Both Contain the candidates name, address, telephone number, education, work experience, and activities. The difference between them is that the applications are forms prepared by your company and the first formal contact the prospective employee has with your company. Resumes are personal profiles prepared by the job candidates to highlight specific skills. The application form need not be complex or long. Ask enough of the right questions to enable you to differentiate applicants on the basis of their knowledge, skills, and ability to perform the job. It should request the names of potential references and obtain the applicants permission for you to contact each reference to discuss qualifications and prior job performances. It should include a note that you are at-will employer. and may therefore discharge and employ for cars or no cars and that any miss information provided on the application form is grounds for immediate dismissal. Resume. They are sometimes the best fiction written, so view them with some degree of skepticism. You want to believe What people tell you, but check out all the facts and contact previous employers. Time and money constraints will prevent you from interview every candidate. Applications and resumes give you a screening tool decide who to bring in for the next stage of the selection process the interview.

Determining wage rates Page 407

Based on the fair labor standards act employees are classified as either exempt or non-exempt. Exempt employees are not covered by the major provisions of the FL essay, which specifies minimum wage, overtime pay, child labor laws, and equal pay for equal work regulations - hourly wages: most exempt employees are paid on a straight salary basis. Nonexempt employees, however must be paid a minimum wage set by Congress. These payments may take the form of hourly wages, salary, piecework rates, or commissions. - all salaried employees. Some organizations are moving to an all salaried workforce. These companies pay both exempt and nonexempt employees a salary, a fix some of money. Although still subjected to FL essay provisions, this type of compensation plan removes the perceived inequality between the two classes of employees and fosters a great espit de corpse. - Piecework rates. Unlike salaried or hourly wage rates, the piecework rate is a pay for performance plan. Under a piecework rate the employer pays an employee a set amount for each unit he produces - commissions. Commissions represent another type of pay for performance approach. Some jobs especially those in sales, or not easily measured in terms of units produce. Under a straight commission plan the employees wages can be based solely on her sales volume. Because employees often cannot control all of the external variables that affect cells, employees are increasingly paying these workers on a base salary plus commission basis. Employees tend to favor this combination approach in which they are provided with a degree of income security doing so sales period.

Dismissing employees page 412 and 413

Because dismissing an employee is the most extreme step of discipline you can exercise, it must be taken with care. When it comes to discharging an employee what you can and cannot do will be influenced to a large degree by two considerations. 1. First the decision to discharge an employee must be based on a job related reason or reasons, not on race, color call, religion, sex, age, national origin, or disability. 2. Second your ability to legally discharge employees and the manner in which you may do so will be highly dependent on your at-will status. Under the at-will doctrine, unless an employment contract is signed, an employer has great leeway in discharging an employee, and that they have the right to discharge the employee for a good reason, a bad reason, or no reason at all. And employee cannot be fired for union related activities, even if a union does not exist in the company. - implied contract - good faith and Fairdealing - public policy exception - proving just case

Health insurance

Because of study cost hikes and complexity in understanding health insurance as changes abound in the patient protection and affordable care act, only about half of American small business offer health coverage to employees. Health insurance is one of the most desirable benefits so some options include: - Traditional indemnity plan: a selected insurance either pays healthcare provider directly or reimburse his employees for covered amounts - managed-care: two common forms of health maintenance organization HMO and preferred provider organization PPO. HMO system, a firm signs a contract with an approved HMO that agrees to provide health and medical services to its employees. In return for the exclusive right to care for the firms employees the HMO offers its services at an adjusted rate Period employees often object to these plans because they are restricted to using the healthcare specialist employed or approved by the HMO. PPO, a firm or group of firms negotiate with doctors and hospitals to provide certain healthcare services for a favorable price. In return member firms encourage their employees through hire reimbursement for payments two news these preferred providers. Employees tend to favor PPOs because they can see the doctor of their choice.

Interviewing page 398 399 and 400

Considered by many employees to be the most critical step in the selection process, the personal interview gives you a chance to learn more about the applicants; to resolve any conflicts or fill in any gaps in the information they provided; and to confirm or reject your initial impression of them, drawn from the application or resume. Always remember that you are selling your company to the potential employee as well as determining their suitability to join your company. To conduct an effective interview you should do the following: - be prepared - set the stage for the interview - use a structured interview format - use a variety of questioning techniques - no matter the type of question, make sure that it is job-related - keep good records, including notes from the interview - questions not to ask

15.6 when problems arise: employee discipline and termination page 410, 411, 412, 413, 414

Despite your best efforts at maintaining harmony in the workplace, sometimes promise may arise. When they do you need policies establish for discipline or dismissal of employees.

Disciplinary measures

Discipline involves taking timely and appropriate actions to change the performance of an employee or a group of employees. A fair and just disciplinary procedure should be based on four components: 1. The employee handbook 2. Performance appraisal 3. Progressive approach 4. Appeal process

Progressive approach to employ discipline page 411

Discipline that is applied to employees inappropriately incremental and increases leave forces measures. The majority of American workers are at will employees, which means that the relationship can in for many reasons as long as the employee is not being fired for discriminatory reasons, such as race, gender or sexual orientation, or is not covered by an employment contract. A small business owner may choose to establish a system of discipline, steps to take before termination. This is called progressive approach to employee discipline, in which discipline is incremental and increasingly forceful. Under most progressive system managers first issue and oral re-pre-mend, then a written warning, followed by suspension without pay, and finally discharged. Steps for a progressive discipline your approach include the following: - determine whether discipline is needed - have clear goals to discuss with the employee - talk about the problem in private - keep your cool - Watch the timing of the meeting - Prepare opening remarks - get to the point - allow two way communication - establish a follow up plan - end on a positive note

Testing page 400 401 and 400 to

Employee testing has long been used by US business people to screen applicants. For the most part prior to 1971 Supreme Court decision in Griggs versus duke power employees were fairly free to do as they please in this manner. However today, employers must be able to prove that their test and their section criteria or are valid predictors of the job performance. For small business owners, the process of statistical validating a test is generally far too time consuming and expensive. Therefore short of eliminating all tests, two options remain: 1. Purchasing pre-printed tests from commercial vendors that have conducted the necessary standardization studies to ensure test reliability 2. Using contentbase tests Regardless of the type of test use, really should you use the results of a single test or indicator as the sole reason for hiring or not hiring an applicant. Calmly news test include the following: - achievement, aptitude, and personality tests - Performance ability tests - Physical examinations - drug tests

15.5 compensating employees Page 406

Employees expect to be paid a fair and equitable wage. Determine what is fair and equitable is a challenging and ongoing task that involves primary to components: - wages and benefits

Job rotation (ways to train)

Job rotation allows employees to move from one job to another within the company. In addition to ensuring that employees have a variety of job skills and knowledge, the technique provides management with trained replacements in the event that one employee becomes ill or leaves the company. On the downside, job rotation does not generally provide Indep specialized training.

15.4 Placing and training employees Page 403 Employee orientation

The process of helping new employees become familiar with an organization, their job, and the people they will work with. You have hired your new employee. Employee orientation is the process of introducing the new person to your business, to the current employees, and to the company culture and your way of doing things. The first few days and sometimes weeks on the job are critical for both employees success and productivity, and can be the difference between someone staying and leaving the organization. Orientation can be formal or informal, but regardless of the method use, there should be a process by which new employees are welcomed into the business. Some general purposes that should be accomplish during orientation and include the following: - introduce the company - do not treat the orientation like a catchall for everything a new employee needs to know. - provide mechanic Newsom to help the new employee adjust to this new environment - define job expectations - consider going virtual

ways to train Page 405, 406

The seven most common method are on the job training, lecture, conferences, program learning, role-playing, job rotation, and correspondence courses. - On the job training: this type of training entails Learning the job while you were doing it. The most familiar types of OJT our coaching and mentoring, in which a new employee works with an experienced employee or supervisor. In order to be effective on the job training should do the following steps: - prepare the new employee for the training - Outline the test to be completed - Demonstrate the task - Watch the new employee perform the task - provide feedback

Correspondence courses, Internet classes, and webinars (ways to train)

These techniques are especially useful for updating current knowledge and acquiring new information.

Retirement plans page 409 and 410

To assist employees in savings for their retirement needs, employers provide them with retirement, pensions, or plans. Retirement plans rate high on the list of benefits employees desire. For common retirement options describe here are individual retirement accounts, simplified employee pension plans, 401(k) plans, and keogh plans.

Hiring independent contractors versus employees Page 402

You may decide that hiring employees expensive and complicated so you want to take advantage of the service of independent contractors. With independent contractors you do not have to withhold Social Security and Medicare taxes, offer benefits, or several other things that you must provide for employees. Be very careful the IRS scrutinize the way businesses classify their independent contractors and employees very closely. The determining factors fall into three main categories: 1. Behavioral control 2. Financial control 3. And relationship of the parties The IRS checklist has 20 factors when determining a worker status but here are the highlights: - Who has control - right to fire - training - set hours of work A smart move is to draw up a single document that spells out the duties of any independent contractors IC you use. It should state that the IC, not you the employer, is responsible for withholding any taxes. Tax law requires that you file with the IRS and give any person you pay more than $600 a year or a form 1099 MISC.

15.2 employee recruitment page 395

You may recruit employees from a variety of sources. The six major resources are: - Help wanted ads - employment agencies - Internet jobsites - executive recruiters, headhunters - employee referrals - relatives or friends Internet jobsites: Online job posting sites like monster.com, indeed.com, and careerbuilder.com provide access to millions of potential employees. Prices to list jobs vary by geographic locations, industry, and the package you select. The advantage of online sites is that you are not limited to a certain number of words. Tell the story of your business in about the team you are assembling. Sell the advantages I love your company and why the candidate should buy. Advertising for employees: while online searching provides the primary tools now, don't overlook help wanted ads in newspapers, trade publications, or local sources. They can generate a large number of responses. Ads can reach a wide, diverse audience of employees with unique or special lie skills. Employment agencies: located in the states in most large cities, government funded employment agencies focus primarily on assisting blue or pink collar employees, so they may not always offer the candidates you want. On the positive side they allow you to obtain screamed applicants at no cost. On the negative side the quality of applications may not be equal to that generated by some other sources. Private employment agencies can be useful in helping you find more skilled employees. Executive recruiters headhunters: executive recruiters, or so-called headhunter firms, can be useful for small businesses looking for a key management person or two. Governmental employment agency are much less expenses when looking for candidates for manual labor or other lower level positions. Headhunting firms search confidential for people who are currently employed and usually not actively seeking another job. Their service can be expensive, the process and results can be tailored specifically to your business. Employee referrals page 396: because your employee knows the skills and talents needed to work in your company as well as the culture of your company they can be a good source for finding people to fill slots. this inside track approach to recruiting is not very costly and can generate qualified, highly motivated employees as long as your current employee moral is high and your workforce is somewhat large in diversified. The downside, exclusive use of this source may perpetuate minorities under representation or create employed clichés. In cases where the restaurant is not hired or does not work out, the referring employee may become resentful. Relatives and friends page 397: The advantage of hiring relatives or friends is that you generally know beforehand of their ability, expertise, and personalities. At the same time, no approach is more laden with long term repercussions. The effects of a poor decision may be felt long after the desk has been cleared and the nameplate changed. - Family members working in the business must be at least as able and hard-working as any unrelated employee. - Family manage businesses, exec perhaps for the very smallest ones, increase we need to staff key positions with non-family professionals. - no matter how many family members are in a companies management, no matter how effective they are, one top job must be filled by a non-related. - Before the situation becomes a cute, the issue of management succession should be in trusted to someone who is neither part of the family nor part of the business. Other sources page 397: Job fairs, trade association meetings, and specialized Internet sites run by professional organizations can be good sources of potential employees. Don't forget the simple things, such as putting a help wanted sign in the window or a notice on the employee bulletin board. Almost without exception, you are better off holding out for the best employee, rather than feeling a position quickly. An incorrect decision can be costly to you and your business. Bad hires Cut productivity causing reduce sales and revenue. The US Department of labor estimates that bad hires cost an average of a third of the employees annual earnings. Hiring the wrong people is costly to small businesses not only by wasting recruiting and training dollars, but also losing the money that they could have been used for a person who was a good fit in the first place. A recent survey of business owners show that 95% indicated that a bad higher result in negative employee morale.