Chapter Nine - csivc.csi.cuny.edu Overview Copyright © Cengage ... HRM: An Overview ... • The Society for Human Resource Management is an excellent source of general information

1

Chapter Nine

Attracting and Retaining

the Best Employees

Copyright © Cengage Learning. All rights reserved 9 | 1

Chapter Overview


2

Learning Objectives1. Describe the major components of human

resources management.

2. Identify the steps in human resources planning.

3. Describe cultural diversity and understand some of the challenges and opportunities


g ppassociated with it.

4. Explain the objectives and uses of job analysis.

Learning Objectives (cont’d)

5. Describe the processes of recruiting, employee selection, and orientation.

6. Discuss the primary elements of employee compensation and benefits.

7. Explain the purposes and techniques of employee training, development, and


employee training, development, and performance appraisal.

8. Outline the major legislation affecting human resources management.

3

HRM: An Overview• All the activities involved in acquiring, maintaining, and

developing an organization’s human resources• AcquisitionAcquisition

– Human resources planning• Determining the firm’s human resource needs

– Job analysis• Determining the exact nature of

the positions to be filled

– Recruiting


• Attracting people to apply for positions in the firm

– Selection• Choosing and hiring the most qualified applicants

– Orientation• Acquainting new employees with the firm

HRM: An Overview (cont’d)

• Maintaining– Employee relations

• Increasing employee job satisfaction through satisfaction surveys communication programs exit interviews and fairsurveys, communication programs, exit interviews, and fair treatment

– Compensation• Rewarding employee effort through monetary payments

– Benefits• Providing rewards to ensure employee well‐being

• Development– Training and development


Training and development• Teaching employees new skills, new jobs, and more effective

ways of doing their present jobs– Performance appraisal

• Assessing employees’ current and potential performance levels

4

HRM: An Overview (cont’d)

• Responsibility for HRM– Shared responsibility of line managers and staff p y g

HRM specialists

– Staff specialists develop specific HR activities (e.g., training and development) and deliver them with the assistance and input of line managers


Using the Internet• The Society for Human Resource

Management is an excellent source of general information about HRM

http://www.shrm.org

• The American Society for Training and Development is an example of an excellent

f f f l d


source of information for more specialized areas of HRM

http://www.astd.org

5

Human Resources Planning• The development of strategies to meet a firm’s

future human resources needs

• Forecasting human resources demand– Factors affecting HR demand

• The firm’s overall strategic plan

• The firm’s past history of staffing levels

• Evolving technologies


Evolving technologies

• Industry staffing practices

• Projected economic trends

– HR staff determine both the number of employees needed and their qualifications

Human Resources Planning (cont’d)

• Forecasting human resources supply

– Factors affecting HR supply• The firm’s present workforce andThe firm s present workforce and

any internal changes or movements

• Evolving technologies• Projected economic trends

• Supply forecasting techniques

– Replacement chartLi t f k l d th i ibl l t ithi


• List of key personnel and their possible replacements within the firm

– Skills inventory• Computerized data bank containing information on the skills

and experience of all present employees

6

Human Resources Planning (cont’d)

• Matching supply with demand– If demand is greater than supply, then the firm must recruit

and select new employeesand select new employees

– If supply is greater than demand, then the firm must prepare plans to reduce the workforce through

• Layoffs: dismissing employees from the workforce until they are needed again

• Attrition: normal reduction of the workforce that occurs when employees leave the firm


• Early retirement: allowing or encouraging persons to retire early with full benefits

• Firing may be necessary to remove excess employees from the workforce

Cultural Diversity in Human Resources• Differences among people in a workforce due to race,

ethnicity, and gender• Advantages of diversityAdvantages of diversity

– Cost savings from properly managing and integrating diversity into the company

– Attracting the best personnel– Marketing advantages due to a better understanding of

different cultural groups– Improved creativity


– Increased organizational flexibility in the placement of personnel

– Fresh viewpoints for problem solving and decision making– Bilingual skills bring numerous benefits to the organization

7

Cultural Diversity in Human Resources (cont’d)

• Coping with diversity challenges

– Train and educate managers to respect and manage di itdiversity

– Recruit minority employees and train them to be managers

– Train managers to view diversity positively

– Teach English as a second language

– Provide mentoring programs and facilitate support


g p g ppgroups

– Establish employee diversity groups

– Have a strong commitment from upper management to diversity goals for the organization

Job Analysis• A systematic procedure for studying jobs to determine

their various elements and requirements

J b d i ti• Job description– A list of the elements that make up a particular job

• Duties to be performed, working conditions, the jobholder’s responsibilities, the tools and equipment used on the job

• Job specification– A list of the qualifications required to perform a particular

job


job• Skills, abilities, education, and experience

• Used for recruiting, selecting, evaluation, and compensation decisions

8

Job Description and Job Specification


Recruiting• The process of attracting qualified job applicants• Goal is to attract the “right” number of applicants• External recruiting

– Sources• Websites, newspaper ads, employment agencies,

college campuses, union hiring halls, employee referrals, open houses, job fairs, walk‐in applicants

– Advantages• Fresh perspectives and varied backgrounds of new hires• Attracting applicants with the required skills and

knowledge


knowledge– Disadvantages

• Expense• May cause resentment among existing employees

9

Employee Retention at Finagle A Bagel


Recruiting (cont’d)

• Internal recruiting– Promotion or transferPromotion or transfer

– Job posting may be required by policy or union contract

– Advantages• Provides motivation for current employees

• Helps retain quality personnel


• Helps retain quality personnel

– Disadvantages• Cost of filling the newly

vacant position

• Cost of training another employee

10

Selection• The process of gathering information about applicants and then

using that information to choose the most appropriate applicant• Employment applicationsp y pp

– Provide useful factual information about the applicant

– Information gathered is used for• Identifying applicants worthy of further consideration• Familiarizing interviewers with applicant backgrounds


– Often include résumés

Typical Employment Application


Source: Courtesy 3M.

11

Typical Employment Application (cont’d)



Selection (cont’d)

• Employment tests– Aptitude, skills, abilities, and knowledge relevant to the job– For a test to be nondiscriminatory, it must be job‐related andFor a test to be nondiscriminatory, it must be job related and

validated as an accurate predictor of job performance• Interviews

– The most widely used selection technique– Can probe more deeply into attitudes and motivation– For interviews to be nondiscriminatory, a structured

interview format is recommendedk ll d d h


• Ask all candidates the same questions• All questions should be job‐related• Avoid personal bias

12

Selection (cont’d)

• References– Used to verify information furnished by the y y

applicant about previous job responsibilities and the reason for leaving their previous job

• Assessment centers– Used to select current employees for promotion to

higher‐level management positions


higher level management positions

– Employees participate in simulated management activities and are observed and evaluated by other senior managers

Orientation

• The process of acquainting new employees with an organizationwith an organization

• Topics– Range from location of company cafeteria to

career paths within the firm

• May be brief and informal or long and


formal

13

Compensation and Benefits• Effective employee reward systems must

– Enable employees to satisfy their basic needsp y y

– Provide rewards comparable to those offered by other firms

– Be distributed fairly in the organization

– Recognize that different people have different needs


needs

Compensation Decisions• Compensation

– The payment employees receive in return for their l blabor

• Compensation system– The policies and strategies that determine

employee compensation• Wage level

– The firm’s choice to position its general level of pay


– The firm s choice to position its general level of pay at, above, or below the market (prevailing wage) for an industry or a geographic area

• Wage survey—a collection of data on prevailing wage rates within an industry or geographic area.

14

Compensation Decisions (cont’d)

• Wage structure– The internal compensation structure

that sets the relative pay levels for all p ythe positions in the firm

– Job evaluation—the process of determining the relative worth of the various jobs within the firm

• Ranking jobs according to their value to the firm• Job analysis using a point system to value jobs

• Individual wages


Individual wages– Decisions on specific wage payments to individual

employees are based on• The wage range for the individual’s job• The individual’s proficiency, experience, and performance

Compensation Decisions (cont’d)

• Comparable worthA concept that seeks equal compensation for– A concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills


15

Class Exercise• You are an administrative assistant to the human

resources manager for a manufacturing firm. Your firm has 300 employees The human resources manager asks you300 employees. The human resources manager asks you to research the firm’s wage policy regarding the 230 employees paid on an hourly basis.– How would you determine the firm’s wage level when

compared to other firms in your geographic area?

– In what ways could you determine the firm’s wage structure within the firm?


within the firm?

– How can you evaluate the individual wages paid to each of the 230 workers paid on an hourly basis?

Types of Compensation• Hourly wage

– The amount of money paid for each hour of work• Salary

– The amount of money paid for an employee’s work during a set calendar period, regardless of the number of hours worked

• Commissions– Payments based on a percentage of sales revenue

• Incentive payment– A payment in addition to wages, salary, or commissions such as

gainsharing for exceeding goals or quotasL l i


• Lump‐sum salary increases– An entire pay raise taken all at one time in one lump sum

• Profit sharing– The distribution of a percentage of the firm’s profit among its

employees to motivate them to work effectively by giving them a stake in the success of the company

16

Employee Benefits• Rewards in addition to regular compensation that are provided

indirectly to the employee• Type of benefits

– Pay for time not worked• Vacation time, holidays, and sick leave

– Insurance packages• Health, life, and dental coverage

– Pension and Retirement programs• Costs may be shared or fully paid by the employer

– Required by law


• Workers’ compensation, unemployment insurance, and Social Security

• Flexible benefits plan– An employee receives a predetermined amount of benefit dollars

to spend on a package of benefits he or she has selected to meet individual needs

Benefits for U.S. Private Industry Workers

70%

80%

30%

40%

50%

60% DefinedContribution Plan

Required toContribute toMedical CoverageEmployer


0%

10%

20%

1999 2000 2003 2004 2005 2006

Assistance for ChildCare

Source: U.S. Department of Labor—Bureau of Labor Statistics, Employee Benefits Survey, 2006, http://www.bls.gov/ebs/

17

Benefits for U.S. Private Industry Workers (cont’d)

Child Care Assistance

Defined Contribution Plan

Access to Paid Holiday

Acess to Paid Sick Leave

Access to Paid Vacation

Copyright © Cengage Learning. All rights reserved 9| 33

0% 20% 40% 60% 80% 100%

Defined Benefit Pension

Defined Contribution Plan

Source: U.S. Department of Labor—Bureau of Labor Statistics, Employee Benefits Survey, 2006, http://www.bls.gov/ebs/

It’s Coffee Break Time (Again)

37%28%

Frequency of Coffee Breaks at Work

37%

1%

28%


17%8%3%

6%

Once Twice Three Four 5 or More Don't Know Never

Source: Data from Strategy One telephone survey of 699 coffee drinkers, 4/25/06

18

Training and Development• Employee training

– The process of teaching operations and technical employees how to do their present jobs more effectively and efficientlydo their present jobs more effectively and efficiently

• Management development

– The process of preparing managers and other professionals to assume increased responsibility in both present and future positions

• Development of a training program

– Analysis of the needs of the organization for training

– Determination of training and development methods by which to


g p ydeliver the program

– Creation of evaluation system to assess the program’s effectiveness

Employee Training at Finagle A Bagel


19

Debate Issue: Should Businesses Get Involved with Helping Employees Cope with Personal Problems?

YES• The cost of coping with some of

NO• The cost of helping employees deal with

these problems is far beyond the means of many workers.

• Helping employees with these types of issues gives the organization the image of being a “good place to work.”

• If employees feel that their employer really cares about them

these types of problems can be financially burdensome to a business.

• Employers that are known for helping employees deal with these types of problems may actually attract and retain employees with these types of problems.

• Helping employees with problems that are traditional personal responsibilities


employer really cares about them, then they may be more satisfied and productive.

creates too much employee dependency on the employer and in the long run does not help the employee to deal with his or her personal problems.

Analysis of Training Needs• Is training needed?

• What kind of training is needed?

• Is motivation needed?

• Training is expensive; be sure it is appropriate.


20

Training Development Methods• On‐the‐job

– New employee learns by working under the supervision of experienced employee

• Simulation– Training in an area that replicates the actual work environment

without the production pressures• Classroom teaching and lectures

– For large groups who need the same information (e.g., notification of change in benefits)

• Conferences and seminars


– Experts and learners meet to discuss problems and exchange ideas• Role playing

– Acting out the roles of others in the organization for a better understanding of others

Economic Constraints Take a Toll on Training

1,300Dollars Spent per Learner

1,000

1,050

1,100

1,150

1,200

1,250


950

1,000

2006 2007 2008

Source: Data from Karen O’Leonard, The Corporate Learning Factbook, 2009: Benchmarks, Trends and Analysis of the U.S. Corporate Training Market, © 2009 Bersin & Associates.

21

Evaluation of Training and Development

• Before training, develop a set of verifiable objectives that specify what is expected and j p y phow the results are to be measured

• Measure or verify training results• Make the results known to all those involved

in the program—including trainees and upper management


management

Performance Appraisal• The evaluation of an employee’s current

and potential levels of performance to allow managers to make objective human resource decisions

• Uses of performance appraisal– Let workers know how they are doing and how

they can do better


they can do better

– Provide the basis for distributing rewards

– Help the organization monitor selection, training, and development activities

22

Common Evaluation Techniques• Objective methods

– Their basis is a measurable quantity (e.g., units of output, l l b f d f ti d t )sales volume, number of defective products).

• Judgmental methods– Managerial estimates of employee performance levels

– Ranking• Ordering employees from best to worst

• Difficult to use because there is no absolute standard and diff i f f k d l i


differences in performance of ranked employees is not apparent

– Rating• Using a predetermined scale (standard) to evaluate each

employee’s performance

Performance Appraisal Form



23

Performance Appraisal Form (cont’d)



Common Evaluation Techniques (cont’d)

• Avoiding appraisal errors– Use the entire evaluation instrument; avoid ;

focusing on one portion

– Do not let an employee’s poor performance in one area influence the evaluation of other areas of performance

– Evaluate the entire performance period and


p pnot the most recent behaviors of the employee

– Guard against any form of personal bias or discrimination in the evaluation

24

Performance Feedback• Performance appraisal information should be provided to

employees• Most often through a performance feedback interviewg p

– Tell and sell: Superior tells the employee how well or poorly the employee is performing and attempts to persuade the employee to accept the evaluation

– Tell and listen: Supervisor tells the employee about his or her performance and then gives the employee a chance to respond

– Problem‐solving approach: Employee evaluates own


g pp p yperformance and sets own goals; supervisor offers comments and goals are mutually established

– Mixed interview– 360‐degree evaluation: Employee is provided feedback from

evaluations by his superiors, peers, and subordinates

The Legal Environment of HRM• National Labor Relations Act and Labor‐Management Relations Act (1935)

– Establishes a collective‐bargaining process in labor‐management relations as well as the National Labor R l ti B d (NLRB)Relations Board (NLRB)

• Fair Labor Standards Act (1938)– Establishes a minimum wage and an overtime pay rate for employees

working more than 40 hours per week– Many managers and other professionals are exempt

• Equal Pay Act (1963)– Specifies that men and women who do equal jobs must be paid the

same wage


same wage– Differences are legal if they are attributed to seniority, qualifications,

or performance

25

The Legal Environment of HRM (cont’d)

• Title VII of the Civil Right Act (1964)– Outlaws discrimination in employment practices based on

sex, race, color, religion, or national origin, , , g , g– Enforced by the Equal Employment Opportunity

Commission (EEOC)• Occupational Safety and Health Act (1970)

– Regulates the degree to which employees can be exposed to hazardous substances and specifies the safety equipment that the employer must provideEnforced by the Occupational Safety and Health


– Enforced by the Occupational Safety and Health Administration (OSHA)

• Employment Retirement Income Security Act (1974)– Regulates company retirement programs and provides a

federal insurance program for retirement plans that go bankrupt


• Affirmative Action (a series of executive orders)– Applies to all employers with 50 or more employees holding

f d l t t i f $50 000federal contracts in excess of $50,000– Such employers must actively encourage job applications

from members of minority groups and hire qualified employees from minority groups not fully represented in the organization


26


• Americans with Disabilities Act (ADA) (1990)– Prohibits discrimination against qualified individuals with

disabilities in all employment practices, including job application procedures, hiring, firing, advancement, compensation, training, and other terms, conditions, and privileges of employment

– Reasonable accommodation is any modification or adjustment to a job or work environment that will enable a qualified employee with a disability to perform a central job function

• Age Discrimination in Employment Act (1967/1986)Outlaws personnel practices that discriminate against people


– Outlaws personnel practices that discriminate against people aged 40 and older; the 1986 amendment eliminates a mandatory retirement age

Chapter Quiz1. The maintaining of human resources management

consists primarily of motivating employees througha) human resources planninga) human resources planning.b) recruiting.c) compensation and benefits.d) selection.e) orientation.

2. ___________ refers to the differences among people in a workforce due to race ethnicity and gender


in a workforce due to race, ethnicity, and gender. a) Resource diversityb) Human resources managementc) Cultural diversityd) Job analysise) Workforce analysis

27

Chapter Quiz (cont’d)

3. A newer selection technique is the ____________, which puts applicants in a simulated job situation for a day.a) employment test) p yb) structured interviewc) employee orientationd) job centere) assessment center

4. The Camden Corp. wants to set an accurate wage level for its employees. The information Camden is most likely to consider is the


a) wage level of its closest competition.b) wage levels of noncompetitors in the immediate vicinity.c) industry average.d) wage levels of its foreign competition.e) corporate average wage level.

Chapter Quiz (cont’d)

5. Title VII of the Civil Rights Act of 1964 applies directly topp ya) discrimination based on age.b) wages.c) equal pay for equal work.d) selection and promotion.e) employee health and safety.


28

Answers to Chapter Quiz1. The maintaining of human resources management

consists primarily of motivating employees througha) human resources planninga) human resources planning.b) recruiting.c) compensation and benefits. (Correct)d) selection.e) orientation.

2. ___________ refers to the differences among people in a workforce due to race ethnicity and gender


in a workforce due to race, ethnicity, and gender. a) Resource diversityb) Human resources managementc) Cultural diversity (Correct)d) Job analysise) Workforce analysis

Answers to Chapter Quiz (cont’d)

3. A newer selection technique is the ____________, which puts applicants in a simulated job situation for a day.a) employment testa) employment testb) structured interviewc) employee orientationd) job centere) assessment center (Correct)

4. The Camden Corp. wants to set an accurate wage level for its employees. The information Camden is most likely to consider is the


thea) wage level of its closest competition.b) wage levels of noncompetitors in the immediate vicinity.c) industry average. (Correct)d) wage levels of its foreign competition.e) corporate average wage level.

29

Answers to Chapter Quiz (cont’d)

5. Title VII of the Civil Rights Act of 1964 applies directly toa) discrimination based on age.b) wages.c) equal pay for equal work.d) selection and promotion. (Correct)e) employee health and safety.


113

© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.1 Job Description and Job Specification

Job Description and Job

Specifi cation

SOUTH-WESTERN

JOB DESCRIPTION

TITLE: Georgia Sales CoordinatorDEPARTMENT: College, SalesREPORTS TO: Regional Manager

DATE: 3/25/09 GRADE: 12 EXEMPT/NON-EXEMPT: Exempt

BRIEF SUMMARY:

Supervise one other Georgia-based sales representative to gain supervisory experience. Captain the 4 members of the outside sales rep team that are assigned to territories consisting of colleges and universities in Georgia. Oversee, coordinate, advise, and make decisions regarding Georgia sales activities. Based upon broad contact with customers across the state and communication with administrators of schools, the person will make recommendations regarding issues specific to the needs of higher education in the state of Georgia such as distance learning, conversion to the semester system, potential statewide adoptions, and faculty training.

PRINCIPLE ACCOUNTABILITIES:

1. Supervises/manages/trains one other Atlanta-based sales rep.2. Advises two other sales reps regarding the Georgia schools in their territories.3. Increases overall sales in Georgia as well as individual sales territory.4. Assists regional manager in planning and coordinating regional meetings and Atlanta conferences.5. Initiates a dialogue with campus administrators, particularly in the areas of the semester

conversion, distance learning, and faculty development.

DIMENSIONS:

This position will have one direct report in addition to the leadership role played within the region. Revenue most directly impacted will be within the individually assigned territory, the supervised territory, and the overall sales for the state of Georgia.

KNOWLEDGE AND SKILLS:

Must have displayed a history of consistently outstanding sales in personal territory. Must demonstrate clear teamwork and leadership skills and be willing to extend beyond the individual territory goals. Should have a clear understanding of the company’s systems and product offerings in order to train and lead other sales representatives. Must have the communication skills and presence to communicate articulately with higher education administrators and to serve as a bridge between the company and higher education in the state.

3768X_09_ch09_p113-129.indd 1133768X_09_ch09_p113-129.indd 113 3/6/09 7:35:11 PM3/6/09 7:35:11 PM

114


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.2 Typical Employment Application

Source: Courtesy of 3M.

Typ

ical E

mp

loym

en

t Ap

plic

atio

n


115


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.3(a) Performance Appraisal (Part 1)


Performance Appraisal (Part 1)


116


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.3(b) Performance Appraisal (Part 2)

Performance Appraisal (Part 2)



117


Pride/Hughes/Kapoor, BUSINESS, 10th editionTable 9.2 Federal Legislation Affecting Human Resources Management

Federal Legislation Affecting

Human Resources

Management

esopruPwaL

National Labor Relations Act (1935)

Established a collective-bargaining process in labor-management relations as well as the National Labor Relations Board (NLRB)

Fair Labor Standards Act (1938)

Established a minimum wage and an overtime pay rate for employees working more than forty hours per week

Labor-Management Relations Act (1947)

Provided a balance between union power and management power; also known as the Taft-Hartley Act

Equal Pay Act (1963) Specified that men and women who do equal jobs must be paid the same wage

Title VII of the Civil Rights Act (1964)

Outlawed discrimination in employment practices based on sex, race, color, religion, or national origin

Age Discrimination in Employment Act (1967–1986)

Outlawed personnel practices that discriminate against people aged 40 and older; the 1986 amendment eliminated a mandatory retirement age

Occupational Safety and Health Act (1970)

Regulated the degree to which employees can be exposed to hazardous substances and specified the safety equipment that the employer must provide

Employment Retirement Income Security Act (1974)

Regulated company retirement programs and provided a federal insurance program for retirement plans that go bankrupt

Worker Adjustment and Retraining Notification (WARN) Act (1988)

Required employers to give employees sixty days notice regarding plant closure or layoff of fifty or more employees

Americans with Disabilities Act (1990)

Prohibited discrimination against qualified individuals with disabilities in all employment practices, including job-application procedures, hiring, firing, advancement, compensation, training, and other terms, conditions, and privileges of employment

Civil Rights Act (1991) Facilitated employees’ suing employers for sexual discrimination and collecting punitive damages

Family and Medical Leave Act (1993)

Required an organization with fifty or more employees to provide up to twelve weeks of leave without pay on the birth (or adoption) of an employee’s child or if an employee or his or her spouse, child, or parent is seriously ill


118


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.A Chapter Outline

Chapter 9 Outline

Attracting and Retaining the Best Employees Human Resources Management: An Overview

– HRM Activities

– Responsibility for HRM

Human Resources Planning – Forecasting Human Resources Demand

– Forecasting Human Resources Supply

– Matching Supply with Demand

Cultural Diversity in Human Resources

Job Analysis

Recruiting, Selection, and Orientation – Recruiting

– Selection

– Orientation

Compensation and Benefi ts – Compensation Decisions

– Comparable Worth

– Types of Compensation

– Employee Benefi ts

Training and Development – Analysis of Training Needs

– Training and Development Methods

– Evaluation of Training and Development

Performance Appraisal – Common Evaluation Techniques

– Performance Feedback

The Legal Environment of HRM – National Labor Relations Act and Labor-Management Relations Act

– Fair Labor Standards Act

– Equal Pay Act

– Civil Rights Act

– Age Discrimination in Employment Act

– Occupational Safety and Health Act

– Employee Retirement Income Security Act

– Affi rmative Action

– Americans with Disabilities Act


119


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.B Class Exercise

Class Exercise

You are an administrative assistant

to the human resources manager for

a manufacturing fi rm. Your fi rm has

300 employees.

The human resources manager

asks you to research the fi rm’s wage

policy regarding the 230 employees

paid on an hourly basis.

1. How would you determine the

fi rm’s wage level when compared

to other fi rms in your geographic

area?

2. In what ways could you determine

the fi rm’s wage structure within the

fi rm?

3. How can you evaluate the

individual wages paid to each of

the 230 workers paid on an hourly

basis?


120


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.C Debate Issue

Debate Issue

Should businesses get involved with

helping employees cope with problems

(such as child care, substance abuse,

mental illness) that were once considered

to be personal responsibilities?

YES

• The cost of coping with

some of these problems is

far beyond the means of

many workers.

• Helping employees with

these types of issues gives

the organization the image

of being a “good place to

work.”

• If employees feel that

their employer really cares

about them, then they may

be more satisfi ed and

productive.

NO

• The cost of helping

employees deal with these

types of problems can be

fi nancially burdensome to a

business.

• Employers that are known

for helping employees deal

with these types of problems

may actually attract and

retain employees with these

types of problems.

• Helping employees with

problems that are traditional

personal responsibilities

creates too much employee

dependency on the employer

and in the long run does not

help the employee to deal

with his or her personal

problems.


121


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.D Chapter Quiz

Chapter Quiz

1. The maintaining of human resources management consists primarily of

motivating employees through

a. human resources planning.

b. recruiting.

c. compensation and benefi ts.

d. selection.

e. orientation.

2. ___________ refers to the differences among people in a work force

due to race, ethnicity, and gender.

a. Resource diversity

b. Human resources management

c. Cultural diversity

d. Job analysis

e. Work force analysis

3. A newer selection technique is the ____________, which puts

applicants in a simulated job situation for a day.

a. employment test

b. structured interview

c. employee orientation

d. job center

e. assessment center

4. The Camden Corp. wants to set an accurate wage level for its

employees. The information Camden is most likely to consider is the

a. wage level of its closest competition.

b. wage levels of noncompetitors in the immediate vicinity.

c. industry average.

d. wage levels of its foreign competition.

e. corporate average wage level.

5. Title VII of the Civil Rights Act of 1964 applies directly to

a. discrimination based on age.

b. wages.

c. equal pay for equal work.

d. selection and promotion

e. employee health and safety.


122


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.E Activities of Human Resources Management

Activities of Human Resources

Management

ACQUISITION

• Human-Resource Planning

• Job Analysis

• Recruiting

• Selection

• Orientation

MAINTENANCE

• Employee Relations

• Compensation

• Benefi ts

DEVELOPMENT

• Training and Development

• Performance Appraisal


123


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.F Major Parts of a Job Description

Major Parts of a Job

Description

• Position title

• To whom position reports

• Description of job

• Nature and scope

• Principal accountabilities


124


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.G The Three Purposes of a Compensation System

The Three Purposes of a

Compensation System

• Attracting qualifi ed employees

• Retaining those employees

• Motivating higher levels of

performance


125


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.H Compensation Decisions

Compensation Decisions

• Wage Level

• Wage Structure

• Individual Wages


126


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.I It’s Coffee Break Time (Again)

Source: Data from Strategy One telephone survey of 699 coffee drinkers, 4/25/06.

Frequency of Coffee

Breaks at Work


127


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.J Definition of Human Resource Management

HUMAN RESOURCE

MANAGEMENT

All the activities involved in

acquiring, maintaining, and

developing an

organization’s human

resources


128


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.K Do You Plan to Work After Age 65?

Do You Plan to Work

After Age 65?

Source: Data from Ipsos Public Affairs and Aetna survey of 517 adults ages 45 to 64, as published in USA Today, April 3, 2006.


129


Pride/Hughes/Kapoor, BUSINESS, 10th editionFigure 9.L What Do Employees Steal Most Often?

What Do Employees Steal

Most Often?

Source: Data from Vault’s offi ce supplies survey of 1,152 respondents, as published in USA Today, March 29, 2006.


Documents

Chapter Nine - csivc.csi.cuny.edu Overview Copyright © Cengage ... HRM: An Overview ... • The Society for Human Resource Management is an excellent source of general information