Business in Action 6e Bovée/Thill Human Resources Management Chapter 11

Learning Objectives 1. Identify four contemporary staffing challenges and explain the process of planning for a company’s staffing needs 2. Discuss the challenges and advantages of a diverse workforce and identify five major dimensions of workforce diversity 3. Describe the three phases involved in managing the employment life cycle Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-2

Learning Objectives (cont.) 4. Explain the steps used to develop and evaluate employees 5. Describe the major elements of employee compensation 6. Identify the most significant categories of employee benefits and services Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-3

Keeping Pace with Today’s Workforce  Human Resources (HR) Management  The specialized function of planning how to obtain employees, oversee their training, evaluate them, and compensate them Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-4

Contemporary Staffing Challenges  Aligning the workforce  Fostering employee loyalty  Monitoring workloads and avoiding employee burnout  Managing work–life balance Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-5

Contemporary Staffing Challenges  Work–Life Balance  Efforts to help employees balance the competing demands of their personal and professional lives  Quality of Work Life (QWL)  An overall environment that results from job and work conditions Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-6

Steps in Human Resources Planning Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-7

Evaluating Job Requirements  Job Description  A statement of the tasks involved in a given job and the conditions under which the holder of a job will work  Job Specification  A statement describing the kind of person who would be best for a given job— including the skills, education, and previous experience that the job requires Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-8

Forecasting Supply and Demand  Turnover Rate  The percentage of the workforce that leaves every year  Employee Retention  Efforts to keep current employees Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-9

Forecasting Supply and Demand  Succession Planning  Workforce planning efforts that identify possible replacements for specific employees, usually senior executives  Contingent Employees  Non-permanent employees, including temporary workers, independent contractors, and full-time employees hired on a probationary basis Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-10

Alternative Work ArrangementsFlextimeTelecommuting Job sharing Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-11

Managing a Diverse Workforce  Diversity  All the characteristics and experiences that define each of us as individuals  Includes race, age, military experience, parental status, marital status, and thinking style Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-12

Generations in the Workplace Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-13

Managing a Diverse Workforce  Sexism  Discrimination on the basis of gender  Glass Ceiling  An invisible barrier that can be attributed to subtle discrimination keeping women and minorities out of the top positions in business Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-14

Managing a Diverse Workforce  Sexual Harassment  Unwelcome sexual advances, request for sexual favors, or other verbal or physical conduct of a sexual nature within the workplace Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-15

Managing a Diverse Workforce (cont.)  Diversity Initiatives  Programs and policies that help companies support diverse workforces and markets Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-16

Managing the Employment Life Cycle  Recruiting  The process of attracting appropriate applicants for an organization’s jobs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-17

The Recruiting Process Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-18

Terminating Employees  Termination  The process of getting rid of an employee by firing him  Layoffs  Termination of employees for economic or business reasons Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-19

Major Employment Legislation Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-20

Major Employment Legislation (cont.) Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-21

Retiring Employees  Worker Buyouts  Distributions of financial incentives to employees who voluntarily depart; usually undertaken in order to reduce the payroll  Mandatory Retirement  Required dismissal of an employee who reaches a certain age Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-22

Developing and Evaluating Employees  Performance Appraisals  Periodic evaluations of employees’ work according to specific criteria  Electronic Performance Monitoring (EPM)  Real-time, computer-based evaluation of employee performance Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-23

Developing and Evaluating Employees  360-degree review  A multidimensional review in which a person is given feedback from subordinates, peers, superiors, and possibly outside stakeholders such as customers and business partners Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-24

Training and Developing Employees  Orientation Programs  Sessions or procedures for acclimating new employees to the organization  Skills Inventory  A list of the skills a company needs from its workforce, along with the specific skills that the individual employees currently possess Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-25

Administering Employee Compensation  Compensation  Money, benefits, and services paid to employees for their work  Salary  Fixed cash compensation for work, usually by an yearly amount; independent of the number of hours worked Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-26

Administering Employee Compensation  Wages  Cash payment based on the number of hours an employee has worked or the number of units an employee has produced Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-27

Incentive Programs  Bonus  A cash payment, in addition to regular wage or salary, that serves as a reward for achievement  Commissions  Employee compensation based on a percentage of sales made Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-28

Incentive Programs  Profit Sharing  The distribution of a portion of the company’s profits to employees  Gain Sharing  Tying rewards to profits or cost savings achieved by meeting specific goals Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-29

Incentive Programs  Pay for Performance  An incentive program that rewards employees for meeting specific, individual goals  Knowledge-Based Pay  Pay tied to an employee’s acquisition of knowledge or skills; also called competency- based pay or skill-based pay Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-30

Employee Benefits and Services  Employee Benefits  Compensation other than wages, salaries, and incentive programs  Cafeteria Plans  Flexible benefit programs that let employees personalize their benefits packages Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-31

Retirement Benefits  Retirement Plans  Company- sponsored programs for providing retirees with income  401(k) Plan  A defined- contribution retirement plan in which employers often match the amount employees invest Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-32

Retirement Benefits (cont.)  Employee Stock-Ownership Plan (ESOP)  A program that enables employees to become partial owners of a company Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-33

Stock Options  Stock Options  A contract that allows the holder to purchase or sell a certain number of shares of a particular stock at a given price by a certain date Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-34

Other Employee Benefits Paid vacations and sick leave Family and medical leave Child-care assistance Elder-care assistance Tuition loans and reimbursements Employee assistance programs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-35

Applying What You’ve Learned 1. Identify four contemporary staffing challenges and explain the process of planning for a company’s staffing needs 2. Discuss the challenges and advantages of a diverse workforce and identify five major dimensions of workforce diversity 3. Describe the three phases involved in managing the employment life cycle Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-36

Applying What You’ve Learned (cont.) 4. Explain the steps used to develop and evaluate employees 5. Describe the major elements of employee compensation 6. Identify the most significant categories of employee benefits and services Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 11-37

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall