Understanding Bus Ch 11 – Flashcards

the process of determining human resource needs and then recruiting, selecting, development, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals

Organizations' recognition of employees as their ultimate resource and changes in the law that rewrote many traditional practices

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(1) organizations' recognition of employees as their ultimate resource and (2) changes in the law that rewrote many traditional practices.

Shortages of trained workers in growth areas, such as computer technology, biotechnology, robotics, green technology, and the sciences. Large numbers of skilled and unskilled workers from declining industries, such as steel and automobiles, who are unemployed or underemployed and need retraining. Underemployed workers are those who have more skills or knowledge than their current jobs require or those with part-time jobs who want to work full-time. A growing percentage of new workers who are under-educated and unprepared for jobs in the contemporary business environment. A shortage of workers in skilled trades due to the retirement of aging baby boomers. An increasing number of baby boomers who, due to the recession, delay retirement (preventing the promotion of younger workers) or move to lower-level jobs (increasing the supply of workers for such jobs). An increasing number of both single-parent and two-income families, resulting in a demand for job sharing, maternity leave, and special career advancement programs for women. A shift in employee attitudes toward work. Leisure time has become a much higher priority, as have flextime and a shorter workweek. A severe recession that took a toll on employee morale and increased the demand for temporary and part-time workers. A challenge from overseas labor pools whose members work for lower wages and are subject to fewer laws and regulations than U.S. workers. This results in many jobs being outsourced overseas. An increased demand for benefits tailored to the individual yet cost-effective to the company. Growing concerns over health care, elder care, child care, drug testing, workplace violence (all discussed in Chapter 12), and opportunities for people with disabilities. Changes through the Affordable Care Act that have added a large number of new regulations that employers must read, interpret, implement, and track. A decreased sense of employee loyalty, which increases employee turnover and the cost of replacing lost workers.

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This act generated much debate and was amended 97 times before final passage. Title VII of that act brought the government directly into the operations of human resource management. 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.

was added as an amendment to Title VII. It strengthened the Equal Employment Opportunity Commission (EEOC), which was created by the Civil Rights Act, by giving it rather broad powers. For example, it permitted the EEOC to issue guidelines for acceptable employer conduct in administering equal employment opportunity. The EEOC also mandated specific record-keeping procedures, and Congress vested it with the power of enforcement to ensure these mandates were carried out. The EEOC became a formidable regulatory force in the administration of human resource management

designed to "right past wrongs" by increasing opportunities for minorities and women. Interpretation of the affirmative action law led employers to actively recruit, and in some cases give preference to, women and minority group members.

defined as discriminating against members of a dominant or majority group (e.g., whites or males) usually as a result of policies designed to correct previous discrimination. The issue has generated heated debate as well as many lawsuits.

expanded the remedies available to victims of discrimination by amending Title VII of the Civil Rights Act of 1964. Now victims of discrimination have the right to a jury trial and punitive damages. Human resource managers must follow court decisions closely to see how the law is enforced.

ensures that employers comply with nondiscrimination and affirmative action laws and regulations when doing business with the federal government.

extended protection to people with any physical or mental disability.

requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities. The ADA also protects individuals with disabilities from discrimination in public accommodations, transportation, and telecommunications.

The ADA requires making "reasonable accommodations" for employees with disabilities, such as modifying equipment or widening doorways

ADA

Which overturned Supreme Court decisions that had reduced protections for certain people with disabilities such as diabetes, epilepsy, heart disease, autism, major depression, and cancer.

protects individuals 40 or older from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training. The ADEA is enforced by the EEOC, applies to employers with 20 or more employees, and protects both employees and job applicants. It also outlaws mandatory retirement in most organizations

require human resource managers to keep abreast of laws and court decisions to effectively perform their jobs.

1. Preparing a human resource inventory of the organization's employees. 2. Preparing a job analysis. 3. Assessing future human resource demand. 4. Assessing future labor supply. 5. Establishing a strategic plan.

This inventory should include ages, names, education, capabilities, training, specialized skills, and other relevant information (such as languages spoken). It reveals whether the labor force is technically up-to-date and thoroughly trained

A job analysis is a study of what employees do who hold various job titles. It's necessary in order to recruit and train employees with the necessary skills to do the job. The results of job analysis are two written statements: job descriptions and job specifications. A job description specifies the objectives of the job, the type of work, the responsibilities and duties, working conditions, and the job's relationship to other functions. Job specifications are a written summary of the minimal education and skills to do a particular job.

A job description specifies the objectives of the job, the type of work, the responsibilities and duties, working conditions, and the job's relationship to other functions.

Job specifications are a written summary of the minimal education and skills to do a particular job.

Because technology changes rapidly, effective human resource managers are proactive; that is, they forecast the organization's requirements and train people ahead of time or ensure trained people are available when needed.

The labor force is constantly shifting: getting older, becoming more technically oriented, becoming more diverse. Some workers will be scarcer in the future, like biomedical engineers and robotic repair workers, and others will be oversupplied, like assembly-line workers.

The human resource strategic plan must address recruiting, selecting, training, developing, appraising, compensating, and scheduling the labor force. Because the first four steps lead up to this one, we'll focus on them in the rest of the chapter.

Recruitment is the set of activities for obtaining the right number of qualified people at the right time. Its purpose is to select those who best meet the needs of the organization.

Some organizations have policies that demand promotions from within, operate under union regulations, or offer low wages, which makes recruiting and keeping employees difficult or subject to outside influence and restrictions. An emphasis on corporate culture, teamwork, and participative management makes it important to hire people who not only are skilled but also fit in with the culture and leadership style of the company. Wegmans Food Markets (a member of Fortune magazine's list of best companies to work for 17 straight years) encourages employees to do whatever they think is necessary to make a customer happy. The company is currently experimenting with a personal shopper service. This service allows customers to create a shopping list on Wegman's website or smartphone app; employees will gather the order and then deliver it to the customer's car when they come to the store Sometimes people with the necessary skills are not available; then workers must be hired and trained internally

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Selection is the process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization. Selecting and training employees are extremely expensive processes in some firms. Just think what's involved: advertising or recruiting agency fees, interview time, medical exams, training costs, unproductive time spent learning the job, possible travel and moving expenses, and more. It can cost one and a half times the employee's annual salary to recruit, process, and train even an entry-level worker, and over six figures for a top manager

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) periods

Although equal employment laws limit the kinds of questions that can appear, applications help reveal the applicant's educational background, work experience, career objectives, and other qualifications directly related to the job.

A staff member from the human resource department often screens applicants in a first interview. If the interviewer considers the applicant a potential hire, the manager who will supervise the new employee may interview the applicant as well. It's important that managers prepare adequately for the interview to avoid selection decisions they may regret.19 No matter how innocent the intention, missteps such as asking about pregnancy or child care could later be evidence if the applicant files discrimination charges.

Organizations often use tests to measure basic competency in specific job skills like welding or firefighting, and to help evaluate applicants' personalities and interests. The tests should always be directly related to the job. Employment tests have been legally challenged as potential means of discrimination. Many companies test potential employees in assessment centers where they perform actual job tasks. Such testing can make the selection process more efficient and will generally satisfy legal requirements.

Most organizations now investigate a candidate's work record, school record, credit history, and references more carefully than in the past to help identify those most likely to succeed. It is simply too costly to hire, train, and motivate people only to lose them and have to start the process over. Services such as LexisNexis allow prospective employers not only to conduct speedy background checks of criminal records, driving records, and credit histories but also to verify work experience and professional and educational credentials.20 The Adapting to Change box discusses how companies use Facebook and other social media to screen job applicants and weed out those with undesirable traits

There are obvious benefits to hiring physically and mentally healthy people. However, according to the Americans with Disabilities Act, medical tests cannot be given just to screen out individuals. In some states, physical exams can be given only after an offer of employment has been accepted. In states that allow pre-employment physical exams, they must be given to everyone applying for the same position. Pre-employment testing to detect drug or alcohol abuse has been controversial, as has screening to detect carriers of HIV, the virus that causes AIDS.

Often an organization will hire an employee conditionally to let the person prove his or her value on the job. After a specified probationary period (perhaps six months or a year), the firm can either permanently hire or discharge that employee on the basis of supervisors' evaluations. Although such systems make it easier to fire inefficient or problem employees, they do not eliminate the high cost of turnover.

include part-time workers (anyone who works 1 to 34 hours per week), temporary workers (workers paid by temporary employment agencies), seasonal workers, independent contractors, interns, and co-op students.

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includes all attempts to improve productivity by increasing an employee's ability to perform. A well-designed training program often leads to higher retention rates, increased productivity, and greater job satisfaction. Employers in the United States generally find that money for training is well spent.

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(1) assessing organization needs and employee skills to determine training needs; (2) designing training activities to meet identified needs; and (3) evaluating the training's effectiveness.

employee orientation, on-the-job training, apprenticeships, off-the-job training, vestibule training, job simulation, and management training.

the activity that initiates new employees into the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm. Orientation programs range from informal talks to formal activities that last a day or more and often include scheduled visits to various departments and required reading of handbooks. For example, at Zappos every new employee in the online retailer's Henderson, Nevada, headquarters must spend two weeks answering customer calls, two weeks learning in a classroom, and a week shipping boxes in the company's Kentucky fulfillment center.

learn by doing, or by watching others for a while and then imitating them, right at the workplace. Salespeople, for example, are often trained by watching experienced salespeople perform (often called shadowing). Naturally, this can be either quite effective or disastrous, depending on the skills and habits of the person being observed. On-the-job training is the easiest kind of training to implement when the job is relatively simple (such as clerking in a store) or repetitive (such as collecting refuse, cleaning carpets, or mowing lawns). More demanding or intricate jobs require a more intense training effort. Intranets and other forms of technology make cost-effective on-the-job training programs available 24 hours a day. Computer systems can monitor workers' input and give them instructions if they become confused about what to do next.

a trainee works alongside an experienced employee to master the skills and procedures of a craft. Some apprentice programs include classroom training. Trade unions in skilled crafts, such as bricklaying and plumbing, require a new worker to serve as an apprentice for several years to ensure excellence as well as to limit entry to the union. Workers who successfully complete an apprenticeship earn the classification journeyman. As baby boomers retire from skilled trades such as pipefitting, welding, and carpentry, shortages of trained workers are developing. Apprentice programs may be shortened to prepare people for skilled jobs in changing industries such as auto repair and aircraft maintenance that require increased knowledge of computer technology. About 375,000 apprentices are registered with the U.S. Department of Labor.

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. Training is becoming more sophisticated as jobs become more sophisticated. Furthermore, training is expanding to include education (through the PhD) and personal development. Subjects may include time management, stress management, health and wellness, physical education, nutrition, and even art and languages.

demonstrates how technology is improving the efficiency of many off-the-job training programs. Most colleges and universities now offer a wide variety of online classes, sometimes called distance learning, including introductory business courses. Both nonprofit and profit-seeking businesses make extensive use of online training. The Red Cross offers an online tutorial called "Be Red Cross Ready" to help citizens prepare for disasters such as floods, tornadoes, or hurricanes. Technology giants like EMC and large manufacturers like Timken use the online training tool GlobeSmart to teach employees how to operate in different cultures.26 Online training's key advantage is the ability to provide a large number of employees with consistent content tailored to specific training needs at convenient times.

is done in classrooms with equipment similar to that used on the job so that employees learn proper methods and safety procedures before assuming a specific job assignment. Computer and robotics training is often completed in a vestibule classroom.

the use of equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting them on the job. It differs from vestibule training in that it duplicates the exact combination of conditions that occur on the job. This is the kind of training given to astronauts, airline pilots, army tank operators, ship captains, and others who must learn difficult procedures off the job.

Management development, then, is the process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time. Management development programs are widespread, especially at colleges, universities, and private management development firms. Managers may participate in role-playing exercises, solve various management cases, and attend films and lectures to improve their skills.

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On-the-job coaching. A senior manager assists a lower-level manager by teaching needed skills and providing direction, advice, and helpful feedback. E-coaching is being developed to coach managers electronically, though it will take time and experimentation before firms figure out how to make coaches come to life online. Understudy positions. Job titles such as undersecretary and assistant are part of a relatively successful way of developing managers. Selected employees work as assistants to higher-level managers and participate in planning and other managerial functions until they are ready to assume such positions themselves. Job rotation. So that they can learn about different functions of the organization, managers are often given assignments in a variety of departments. Such job rotation gives them the broad picture of the organization they need to succeed. Off-the-job courses and training. Managers periodically go to classes or seminars for a week or more to hone technical and human relations skills. Major universities like the University of Michigan, MIT, and the University of Chicago offer specialized short courses to assist managers in performing their jobs more efficiently. McDonald's Corporation has its own Hamburger University. Managers and potential franchisees attend six days of classes and complete a course of study equivalent to 36 hours of college business-school credit

A senior manager assists a lower-level manager by teaching needed skills and providing direction, advice, and helpful feedback. E-coaching is being developed to coach managers electronically, though it will take time and experimentation before firms figure out how to make coaches come to life online.

Job titles such as undersecretary and assistant are part of a relatively successful way of developing managers. Selected employees work as assistants to higher-level managers and participate in planning and other managerial functions until they are ready to assume such positions themselves.

So that they can learn about different functions of the organization, managers are often given assignments in a variety of departments. Such job rotation gives them the broad picture of the organization they need to succeed.

Managers periodically go to classes or seminars for a week or more to hone technical and human relations skills. Major universities like the University of Michigan, MIT, and the University of Chicago offer specialized short courses to assist managers in performing their jobs more efficiently. McDonald's Corporation has its own Hamburger University. Managers and potential franchisees attend six days of classes and complete a course of study equivalent to 36 hours of college business-school credit

is the process of establishing and maintaining contacts with key managers in your own and other organizations, and using those contacts to weave strong relationships that serve as informal development systems. Of equal or greater importance may be a mentor, a corporate manager who supervises, coaches, and guides selected lower-level employees by introducing them to the right people and generally acting as their organizational sponsor

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(1) grooming women and minorities for management positions isn't about legality, morality, or even morale but rather about bringing more talent in the door, the key to long-term profitability; (2) the best women and minorities will become harder to attract and retain, so companies that commit to development early have an edge; and (3) having more women and minorities at all levels lets businesses serve their increasingly female and minority customers better.

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

Establishing performance standards. This step is crucial. Standards must be understandable, subject to measurement, and reasonable. Both manager and subordinate must accept them. Communicating those standards. It's dangerous to assume that employees know what is expected of them. They must be told clearly and precisely what the standards and expectations are, and how to meet them. Evaluating performance. If the first two steps are done correctly, performance evaluation is relatively easy. It is a matter of evaluating the employee's behavior to see whether it matches standards. Discussing results with employees. Employees often make mistakes and fail to meet expectations at first. It takes time to learn a job and do it well. Discussing an employee's successes and areas that need improvement can provide managers an opportunity to be understanding and helpful and guide the employee to better performance. The performance appraisal can also allow employees to suggest how a task could be done better. Taking corrective action. As part of performance appraisal, a manager can take corrective action or provide feedback to help the employee perform better. The key word here is perform. The primary purpose of an appraisal is to improve employee performance if possible.30 Using the results to make decisions. Decisions about promotions, compensation, additional training, or firing are all based on performance evaluations. An effective performance appraisal system is also a way of satisfying legal requirements about such decisions.

management gathers opinions from all around the employee, including those under, above, and on the same level, to get an accurate, comprehensive idea of the worker's abilities

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Attracting the kinds of people the organization needs, and in sufficient numbers. Providing employees with the incentive to work efficiently and productively. Keeping valued employees from going to competitors or starting competing firms. Maintaining a competitive position in the marketplace by keeping costs low through high productivity from a satisfied workforce. Providing employees with some sense of financial security through fringe benefits such as insurance and retirement benefits.

This plan is based on job tiers, each of which has a strict pay range. The system is set up on a point basis with three key factors considered: know-how, problem solving, and accountability.

rewards the growth of both the individual and the team. Base pay is raised when team members learn and apply new skills.

the system is complex, and it is difficult to relate the acquisition of skills directly to profit gains.

base bonuses on improvements over previous performance

include sick-leave pay, vacation pay, pension plans, and health plans that provide additional compensation to employees beyond base wages. Benefits in recent years grew faster than wages and can't really be considered fringe anymore.

recreation facilities, company cars, country club memberships, discounted massages, special home-mortgage rates, paid and unpaid sabbaticals, day care services, and executive dining rooms

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Compensation. Salaries must be converted to and from foreign currencies. Often employees with international assignments receive special allowances for relocation, children's education, housing, travel, and other business-related expenses. Health and pension standards. There are different social contexts for benefits in other countries. In the Netherlands, the government provides retirement income and health care. Paid time off. Four weeks of paid vacation is the standard of many European employers. But many other countries lack the short-term and long-term absence policies offered in the United States, including sick leave, personal leave, and family and medical leave. Global companies need a standard definition of time off. Taxation. Each country has different taxation rules, and the payroll department must work within each country's regulations. Communication. When employees leave to work in another country, they often feel disconnected from their home country. Wise companies use their intranet and the Internet to help these faraway employees keep in direct contact

Salaries must be converted to and from foreign currencies. Often employees with international assignments receive special allowances for relocation, children's education, housing, travel, and other business-related expenses.

There are different social contexts for benefits in other countries. In the Netherlands, the government provides retirement income and health care.

Four weeks of paid vacation is the standard of many European employers. But many other countries lack the short-term and long-term absence policies offered in the United States, including sick leave, personal leave, and family and medical leave. Global companies need a standard definition of time off.

Taxation. Each country has different taxation rules, and the payroll department must work within each country's regulations.

When employees leave to work in another country, they often feel disconnected from their home country. Wise companies use their intranet and the Internet to help these faraway employees keep in direct contact

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over half of all large firms offer cafeteria-style fringe benefits, in which employees can choose the benefits they want up to a certain dollar amount. Such plans let human resource managers equitably and cost-effectively meet employees' individual needs by allowing them choice.

gives employees some freedom to choose which hours to work, as long as they work the required number of hours or complete their assigned tasks. The most popular plans allow employees to arrive between 7:00 and 9:00 a.m. and leave between 4:00 and 6:00 p.m. Flextime plans generally incorporate core time.

is the period when all employees are expected to be at their job stations. An organization may designate core time as 9:00 to 11:00 a.m. and 2:00 to 4:00 p.m. During these hours all employees are required to be at work

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An employee works the full number of hours, but in fewer than the standard number of days. For example, an employee may work four 10-hour days and then enjoy a long weekend, instead of working five 8-hour days with a traditional weekend. There are obvious advantages of compressed workweeks, but some employees get tired working such long hours, and productivity can decline. Others find the system a great benefit, however, and are enthusiastic about it

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lets two or more part-time employees share one full-time job. Students and parents with small children, for instance, may work only during school hours, and older workers can work part-time before fully retiring or after retiring.

Employment opportunities for those who cannot or prefer not to work full-time. An enthusiastic and productive workforce. Reduced absenteeism and tardiness. Ability to schedule part-time workers into peak demand periods (e.g., banks on payday). Retention of experienced employees who might otherwise have retired.

the need to hire, train, motivate, and supervise at least twice as many people and perhaps prorate some fringe benefits. But firms are finding that the advantages generally outweigh the disadvantages

Many current challenges and opportunities arise from changing demographics: more women, minorities, immigrants, and older workers in the workforce. Others include a shortage of trained workers and an abundance of unskilled workers, skilled workers in declining industries requiring retraining, changing employee work attitudes, and complex laws and regulations.

Recruiting sources are classified as either internal or external. Internal sources include those hired from within (transfers, promotions, reassignments) and employees who recommend others to hire. External recruitment sources include advertisements, public and private employment agencies, college placement bureaus, management consultants, professional organizations, referrals, walk-in applications, and the Internet.

Legal restrictions complicate hiring and firing practices. Finding suitable employees can be more difficult if companies are considered unattractive workplaces.

The steps are (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 a trial period of employment.

Training activities include employee orientation, on- and off-the-job training, apprentice programs, online training, vestibule training, and job simulation.

Management development methods include on-the-job coaching, understudy positions, job rotation, and off-the-job courses and training.

Networking is the process of establishing contacts with key managers within and outside the organization to get additional development assistance.

The steps are (1) establish performance standards; (2) communicate those standards; (3) compare performance to standards; (4) discuss results; (5) take corrective action when needed; and (6) use the results for decisions about promotions, compensation, additional training, or firing.

They include salary systems, hourly wages, piecework, commission plans, bonus plans, profit-sharing plans, and stock options

The most common are gain-sharing and skill-based compensation programs. Managers also reward outstanding individual performance within teams.

Fringe benefits include sick leave, vacation pay, company cars, pension plans, and health plans that provide additional compensation to employees beyond base wages. Cafeteria-style fringe benefits plans let employees choose the benefits they want, up to a certain dollar amount.

Such plans include job sharing, flextime, compressed workweeks, and home-based work.

Employees can be moved up (promotion), over (reassignment), or out (termination or retirement) of a company. They can also choose to leave a company to pursue opportunities elsewhere.

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