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Chap011

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Intro to Bux chapter 11

Intro to Bux chapter 11

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  • See Learning Goal 1: Explain the importance of human resource management, and describe current issues in managing human resources. Human resource management is more than hiring employees it now involves a multitude of task and responsibilities. This slide gives some insight into the various roles the HR department has now assumed. Business leaders in many companies now understand the effect management of human capital can have in creating a competitive advantage in the marketplace.
  • See Learning Goal 1: Explain the importance of human resource management, and describe current issues in managing human resources.
  • See Learning Goal 1: Explain the importance of human resource management, and describe current issues in managing human resources.
  • See Learning Goal 1: Explain the importance of human resource management, and describe current issues in managing human resources. Demographic changes are creating a challenging environment for human resources management requiring these departments to come up with creative ways to attract, develop and retain employees.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management. The Civil Rights Act of 1964 was a significant piece of legislation and directly brought the federal government into human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management. Ask the students: Did Affirmative Action create reverse discrimination against whites and males by unfairly giving preference to females and minorities?
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management.
  • See Learning Goal 2: Illustrate the effect of legislation on human resource management.
  • See Learning Goal 3: Summarize the five steps in human resource planning.
  • See Learning Goal 3: Summarize the five steps in human resource planning.
  • See Learning Goal 4: Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging.
  • See Learning Goal 4: Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging.
  • See Learning Goal 4: Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging. Job candidates can come from internal and external sources. In order to attract qualified employees from external sources many employers offer referral bonuses to employees who refer a new employee to the company.
  • See Learning Goal 4: Describe methods that companies use to recruit new employees, and explain some of the issues that make recruitment challenging.
  • See Learning Goal 5: Outline the six steps in selecting employees.
  • See Learning Goal 5: Outline the six steps in selecting employees.
  • See Learning Goal 5: Outline the six steps in selecting employees.
  • See Learning Goal 5: Outline the six steps in selecting employees. Is this an ethical way to try to motivate employees? What are the dangers of using this tactic?
  • See Learning Goal 6: Illustrate employee training and development methods.
  • See Learning Goal 6: Illustrate employee training and development methods.
  • See Learning Goal 6: Illustrate employee training and development methods.
  • See Learning Goal 6: Illustrate employee training and development methods.
  • See Learning Goal 6: Illustrate employee training and development methods. Why Good Employees Quit This slide presents some of the reasons why good employees quit. Ask the students: Why is it important for managers to understand why employees leave a company? (It translates directly into the bottom line of the organization. The higher the turnover, the higher the costs for recruiting, selecting, training and development, etc.) Ask the students: What are other reasons why employee retention is important? (Some other reasons may be morale of the workers, ability to recruit, reputation and image of the company, etc.) Ask the students: Would you like to work at a place that feels like it has a revolving door?
  • See Learning Goal 6: Illustrate employee training and development methods. Many students are familiar with social networking but are unfamiliar with career networking. Ask the students: How can you use sites like Facebook, YouTube, and Twitter to establish and maintain contacts with key managers in and out of the organization?
  • See Learning Goal 7: Trace the six steps in appraising employee compensation programs.
  • See Learning Goal 7: Trace the six steps in appraising employee compensation programs.
  • See Learning Goal 7: Trace the six steps in appraising employee compensation programs. Major Uses of Performance Appraisals This slide gives students insight as to the importance of regular performance appraisals. To start a discussion on performance appraisals ask students to discuss the 360-degree review. After the discussion use the next slide to walk students through some of the problems associated with performance appraisals.
  • See Learning Goal 7: Trace the six steps in appraising employee compensation programs. Performance Appraisal Mistakes This slide highlights some of the problems made while reviewing employees. Ask the students: How can managers avoid some of the issues discussed in this slide? To start a discussion about performance appraisals and teams ask students: Do you think it is fair to have your own performance appraised based on the work of others on your team?
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. Students should be aware when accepting a job offer to consider not just the salary but the entire compensation package.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. Skill-based pay is increased when teams learn and apply new skills. Gain sharing bases team bonuses on improvements over previous performance.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. The rising cost of healthcare and the cost of employer provided health insurance is unsustainable in the long term. This requires both management and employees to create systems that keep cost down, but still provide meaningful coverage. This could include employee wellness programs and/or higher deductibles.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits.
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. The name of the game today regarding employee benefits is creativity!
  • See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits.
  • See Learning Goal 9: Show how managers use scheduling plans to adapt to workers’ needs.
  • See Learning Goal 9: Show how managers use scheduling plans to adapt to workers’ needs.
  • See Learning Goal 9: Show how managers use scheduling plans to adapt to workers’ needs.
  • See Learning Goal 9: Show how managers use scheduling plans to adapt to workers’ needs.
  • See Learning Goal 9: Show how managers use scheduling plans to adapt to workers’ needs.
  • See Learning Goal 10: Describe how employees can move through a company promotion, reassignment, termination, and retirement.
  • Transcript

    1. * * Chapter Eleven Human Resource Management: Finding and Keeping the Best Employees Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
    2. HUMAN RESOURCE MANAGEMENT * * Working with People is Just the Beginning LG1 11-
    3. HUMAN RESOURCE MANAGEMENT (HRM) * * <ul><li>Human Resource Management -- The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating and scheduling employees to achieve organizational goals. </li></ul><ul><li>HRM’s role has grown because: </li></ul><ul><ul><li>Increased recognition of employees as a resource. </li></ul></ul><ul><ul><li>Changes in law that rewrote old workplace practices. </li></ul></ul>LG1 Working with People is Just the Beginning 11-
    4. DEVELOPING the FIRM’S ULTIMATE RESOURCE * * <ul><li>Service and high-tech manufacturing requires employees with highly technical job skills. </li></ul>LG1 Developing the Firm’s Ultimate Resource <ul><li>Such workers are scarce, making recruiting and retention more important and more difficult. </li></ul><ul><li>The human resource job is now the job of all managers in an organization. </li></ul>11-
    5. CHALLENGES in FINDING HIGH-LEVEL WORKERS * * <ul><ul><li>A shortage of trained workers in key areas </li></ul></ul><ul><ul><li>Worker shortage in skilled trades </li></ul></ul><ul><ul><li>Changes in employee attitudes about work </li></ul></ul><ul><ul><li>A declining economy with fewer full-time jobs </li></ul></ul><ul><ul><li>Expanding global markets with low-wage workers </li></ul></ul><ul><ul><li>Increasing benefit demands and benefit costs </li></ul></ul><ul><ul><li>A decreased sense of employee loyalty </li></ul></ul>LG1 The Human Resource Challenge 11-
    6. CIVIL RIGHTS ACT of 1964 * * <ul><li>Title VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions or privileges of employment based on: </li></ul><ul><ul><li>Race </li></ul></ul><ul><ul><li>Religion </li></ul></ul><ul><ul><li>Creed </li></ul></ul><ul><ul><li>Sex </li></ul></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>National Origin </li></ul></ul>LG2 Laws Affecting Human Resource Management 11-
    7. 1972 EQUAL EMPLOYMENT OPPORTUNITY ACT (EEOA) * * <ul><li>Strengthened the Equal Employment Opportunity Commission (EEOC). </li></ul><ul><li>Gave EEOC the right to issue workplace guidelines for acceptable employer conduct. </li></ul><ul><li>EEOC could mandate specific recordkeeping procedures. </li></ul><ul><li>EEOC was vested with the power of enforcement. </li></ul>LG2 Laws Affecting Human Resource Management 11-
    8. CONTROVERSIAL PROCEDURES of the EEOC * * <ul><li>Affirmative Action -- Policy designed to “right past wrongs” by increasing opportunities for minorities and women in the workplace. </li></ul><ul><li>Reverse Discrimination -- Discrimination against whites or males in hiring or promoting. </li></ul><ul><li>This policy has been at the center of many debates and lawsuits. </li></ul>LG2 Laws Affecting Human Resource Management 11-
    9. CIVIL RIGHTS ACT of 1991 and OFCCP * * <ul><li>Civil Rights Act of 1991 </li></ul><ul><li>Amended Title VII and gave victims of discrimination the right to a jury trial and possible damages. </li></ul><ul><li>Office of Federal Contract Compliance Programs (OFCCP) </li></ul><ul><li>Ensures that employers doing business with the federal government comply with the nondiscrimination and affirmative action laws. </li></ul>LG2 Laws Affecting Human Resource Management 11-
    10. LAWS PROTECTING EMPLOYEES with DISABILITIES * * <ul><li>Americans with Disabilities Act of 1990 (ADA) </li></ul><ul><li>Requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities. </li></ul>LG2 Laws Protecting Employees with Disabilities and Older Employees <ul><li>Also requires “reasonable accommodations” for employees with disabilities. </li></ul><ul><li>Passage in 2008 of Americans with Disabilities Amendments Act expanded protection. </li></ul>11-
    11. AGE DISCRIMINATION in EMPLOYMENT ACT (ADEA) * * <ul><li>Age Discrimination in Employment Act (ADEA) </li></ul>LG2 Laws Protecting Employees with Disabilities and Older Employees <ul><li>Protects workers 40 and over from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments and training. </li></ul>11-
    12. MINDING the LAW in HRM * * <ul><li>Employers must know the law and act accordingly. </li></ul><ul><li>Legislation affects all areas of HRM. </li></ul><ul><li>Court cases highlight that sometimes it’s proper to go beyond providing equal rights. </li></ul><ul><li>Changes in law and legislation occur regularly. </li></ul>LG2 Effects of Legislation 11-
    13. HUMAN RESOURCE PLANNING PROCESS * * Determining a Firm’s Human Resource Needs LG3 <ul><li>Preparing a human resource inventory of employees. </li></ul><ul><li>Preparing a job analysis. </li></ul><ul><li>Assessing future human resource demand. </li></ul><ul><li>Assessing future labor supply. </li></ul><ul><li>Establishing a strategic plan. </li></ul>11-
    14. WHAT’S a JOB ANALYSIS? * * Determining a Firm’s Human Resource Needs LG3 <ul><li>Job Analysis -- A study of what employees who holds various job titles do. </li></ul><ul><li>Job Description -- Specifies the objectives of the job, the type of work, the responsibilities and duties, working conditions and relationship to other jobs. </li></ul><ul><li>Job Specifications -- A summary of the minimal education and skills needed to do a particular job. </li></ul>11-
    15. RECRUITING EMPLOYEES * * Recruiting Employees from a Diverse Population LG4 <ul><li>Recruitment -- The set of activities for obtaining the right number of qualified people at the right time. </li></ul><ul><li>Human resource managers use both internal and external sources to recruit employees . </li></ul><ul><li>Small businesses often make use of web sources like CareerBuilder and Monster to recruit employees. </li></ul>11-
    16. IT’S NOT EASY BEING SMALL (Spotlight on Small Business) * * <ul><li>To survive, small businesses must recruit and retain qualified workers. </li></ul><ul><li>Unfortunately, they lack the resources of larger companies to compete for employees. </li></ul><ul><li>Small businesses need innovations like: </li></ul><ul><ul><li>Letting staff help recruit and select candidates. </li></ul></ul><ul><ul><li>“ Test-Drive” an employee. </li></ul></ul><ul><ul><li>Seek out publicity through local media. </li></ul></ul>11-
    17. EMPLOYEE SOURCES * * LG4 Recruiting Employees from a Diverse Population 11-
    18. SELECTION * * Selecting Employees Who Will be Productive LG5 <ul><li>Selection -- The process of gathering information and deciding who should be hired, under legal guidelines, to fit the needs of the organization and individuals. </li></ul>11-
    19. STEPS in the SELECTION PROCESS * * Selecting Employees Who Will be Productive LG5 <ul><li>Obtaining complete application forms </li></ul><ul><li>Conducting initial and follow-up interviews </li></ul><ul><li>Giving employment tests </li></ul><ul><li>Conducting background investigations </li></ul><ul><li>Obtaining results from physical exams </li></ul><ul><li>Establishing trial (probationary) work periods </li></ul>11-
    20. HIRING CONTINGENT WORKERS * * Hiring Contingent Workers LG5 <ul><li>Contingent Workers -- Include part-time and temporary workers, seasonal workers, independent contractors, interns and co-op students. </li></ul><ul><li>There are about 5.7 million contingent workers in the U.S. </li></ul>11-
    21. WHY HIRE CONTINGENT WORKERS? * * Hiring Contingent Workers LG5 <ul><li>Companies hire contingent workers: </li></ul><ul><ul><li>When full-time workers are on leave </li></ul></ul><ul><ul><li>During periods of peak demand </li></ul></ul><ul><ul><li>In uncertain economic times </li></ul></ul><ul><ul><li>To save on employee benefits </li></ul></ul><ul><ul><li>To screen candidates for future employment </li></ul></ul>11-
    22. MOTIVATING TEMPORARY EMPLOYEES (Making Ethical Decisions) * * <ul><li>Contingent workers perform well if the promise of full-time employment is a possibility. </li></ul><ul><li>Highbrow’s has no intention of hiring any temporary workers full-time. </li></ul><ul><li>But the company feels if they imply two workers will be hired full time, it may improve employee performance. What is the ethical thing for them to do? </li></ul>11-
    23. TRAINING and DEVELOPING EMPLOYEES * * Training and Developing Employees for Optimum Performance LG6 <ul><li>Training and Development -- All attempts to improve productivity by increasing an employee’s ability to perform. </li></ul><ul><li>Training focuses on short-term skills. </li></ul><ul><li>Development focuses on long-term abilities. </li></ul>11-
    24. THREE STEPS of TRAINING and DEVELOPMENT * * Training and Developing Employees for Optimum Performance LG6 <ul><li>Assessing organization needs and employee skills to develop appropriate training needs. </li></ul><ul><li>Designing training activities to meet identified needs. </li></ul><ul><li>Evaluating the training’s effectiveness. </li></ul>11-
    25. MOST COMMONLY USED TRAINING and DEVELOPMENT ACTIVITIES * * Training and Developing Employees for Optimum Performance LG6 <ul><li>Orientation </li></ul><ul><li>On-the-Job Training </li></ul><ul><li>Apprenticeships </li></ul><ul><li>Off-the-Job Training </li></ul><ul><li>Online Training </li></ul><ul><li>Vestibule Training </li></ul><ul><li>Job Simulation </li></ul>11-
    26. DEVELOPING EFFECTIVE MANAGERS * * Management Development LG6 <ul><li>Management Development -- The process of training and educating employees to become good managers and tracking the progress of their skills over time. </li></ul><ul><li>Management training includes: </li></ul><ul><ul><li>On-the-job coaching </li></ul></ul><ul><ul><li>Understudy positions </li></ul></ul><ul><ul><li>Job rotation </li></ul></ul><ul><ul><li>Off-the-job courses and training </li></ul></ul>11-
    27. WHY GOOD EMPLOYEES QUIT * * LG6 Management Development Source: Robert Half International 11-
    28. USING NETWORKS and MENTORING * * Networking LG6 <ul><li>Networking -- Establishing and maintaining contacts with key managers in and out of the organization and using those contacts to develop relationships. </li></ul><ul><li>Mentors -- Managers who supervise, coach and guide selected lower-level employees by acting as corporate sponsors. </li></ul><ul><li>Networking and mentoring go beyond the work environment. </li></ul>11-
    29. APPRAISING PERFORMANCE on the JOB * * Appraising Employee Performance to Get Optimum Results LG7 <ul><li>Performance Appraisal -- An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training or termination. </li></ul><ul><li>A 360-degree review gives managers opinions from people at different levels to get a more accurate idea of the worker’s ability. </li></ul>11-
    30. SIX STEPS of PERFORMANCE APPRAISALS * * Appraising Employee Performance to Get Optimum Results LG7 <ul><li>Establishing performance standards that are understandable, measurable and reasonable. </li></ul><ul><li>Clearly communicating those standards. </li></ul><ul><li>Evaluating performance against the standards. </li></ul><ul><li>Discussing the results with employees. </li></ul><ul><li>Taking corrective action. </li></ul><ul><li>Using the results to make decisions. </li></ul>11-
    31. MAJOR USES of PERFORMANCE APPRAISALS * * LG7 Appraising Employee Performance to Get Optimum Results <ul><li>Identify training needs </li></ul><ul><li>Use as a promotion tool </li></ul><ul><li>Recognize worker’s achievements </li></ul><ul><li>Evaluate the firm’s hiring process </li></ul><ul><li>Judge the effectiveness of the firm’s orientation process </li></ul><ul><li>Use as a basis for possible termination of a worker </li></ul>11-
    32. PERFORMANCE APPRAISAL MISTAKES Common Problems Made While Reviewing Employees * * <ul><li>Contrast Effect - Comparing one employee to another. </li></ul><ul><li>Halo/Horn Effect - Allowing performances in specific areas to unfairly influence overall performance evaluation. </li></ul><ul><li>Similar-to-Me Effect - Generosity to those you feel are more like you. </li></ul>Appraising Employee Performance to Get Optimum Results LG7 11-
    33. COMPENSATION PROGRAMS * * Compensating Employees: Attracting and Keeping the Best LG8 <ul><li>A managed and competitive compensation program helps: </li></ul><ul><ul><li>Attract the kinds of employees the business needs. </li></ul></ul><ul><ul><li>Build employee incentive to work efficiently and productively. </li></ul></ul><ul><ul><li>Keep valued employees from going to competitors or starting their own firm. </li></ul></ul><ul><ul><li>Maintain a competitive market position by keeping costs low due to high productivity from a satisfied workforce. </li></ul></ul><ul><ul><li>Provide employee financial security through wages and fringe benefits. </li></ul></ul>11-
    34. TYPES of PAY SYSTEMS * * Pay Systems LG8 <ul><li>Salary </li></ul><ul><li>Hourly Wage/Day Work </li></ul><ul><li>Piecework System </li></ul><ul><li>Commission Plans </li></ul><ul><li>Bonus Plans </li></ul><ul><li>Profit Sharing Plans </li></ul><ul><li>Gain-Sharing Plans </li></ul><ul><li>Stock Options </li></ul>11-
    35. COMPENSATING TEAMS * * Compensating Teams LG8 <ul><li>Team-based pay programs are more challenging than individual pay systems. </li></ul><ul><li>The two most common methods for teams involve: </li></ul><ul><ul><li>Skill-Based: Pay is increased as skill increases. ( Eastman Chemical uses this system.) </li></ul></ul><ul><ul><li>Gain-Sharing: Pay is increased as performance increases. ( Nucor Steel uses this system.) </li></ul></ul>11-
    36. FRINGE BENEFITS on the JOB * * Fringe Benefits LG8 <ul><li>Fringe Benefits -- Sick leave, vacation pay, pension and health plans that provide additional compensation to employees beyond base wages. </li></ul><ul><li>In 1929, Fringe benefits accounted for less than 2% of payroll cost. Today it’s about 30%. </li></ul><ul><li>Healthcare has been the most significant increase in fringe benefit cost. </li></ul>11-
    37. The RANGE of FRINGE BENEFITS * * Fringe Benefits LG8 <ul><li>Fringe benefits include incentives like: </li></ul><ul><ul><li>Company cars </li></ul></ul><ul><ul><li>Country club memberships </li></ul></ul><ul><ul><li>Recreation facilities </li></ul></ul><ul><ul><li>Special home mortgage rates </li></ul></ul><ul><ul><li>Paid and unpaid sabbaticals </li></ul></ul><ul><ul><li>Day-care and elder care services </li></ul></ul><ul><ul><li>Dental and eye care </li></ul></ul><ul><ul><li>Legal counseling </li></ul></ul><ul><ul><li>Short or compressed work weeks </li></ul></ul>11-
    38. CAFETERIA-STYLE and SOFT BENEFITS * * Fringe Benefits LG8 <ul><li>Cafeteria-Style Fringe Benefits -- Allow employees to choose the benefits they want (up to a certain dollar amount). </li></ul><ul><li>Soft Benefits include: </li></ul><ul><ul><li>Onsite haircuts and shoe repair </li></ul></ul><ul><ul><li>Concierge services </li></ul></ul><ul><ul><li>Free meals at work </li></ul></ul><ul><ul><li>Doggie daycare </li></ul></ul><ul><ul><li>Onsite farmer’s markets </li></ul></ul>11-
    39. WORKING WORLDWIDE (Reaching Beyond Our Borders) * * <ul><li>Managers need to understand the business needs of each country they operate in. </li></ul><ul><ul><li>Compensation: Conversion to foreign currencies and special allowances often are needed. </li></ul></ul><ul><ul><li>Health and Pension Standards: Benefits are different country-by-country. </li></ul></ul><ul><ul><li>Paid Time Off: Vacation time, sick and personal leave vary. </li></ul></ul><ul><ul><li>Taxation: Tax policies vary. </li></ul></ul><ul><ul><li>Communication: Employees can feel disconnected in other countries. </li></ul></ul>11-
    40. FLEXIBLE SCHEDULING PLANS * * Scheduling Employees to Meet Organizational and Employee Needs LG9 <ul><li>Flextime Plan -- Gives employees some freedom to choose which hours to work as long as they work the required number. </li></ul><ul><li>Compressed Work Week -- Employees work the full number of work hours, but in fewer than the standard number of days. </li></ul><ul><li>Job Sharing -- Lets two or more part-time employees share on a full-time job. </li></ul>11-
    41. USING FLEXTIME PLANS * * Flextime Plans LG9 <ul><li>Most flextime plans require Core Time -- When all employees are expected to be at their job stations. </li></ul><ul><li>Flextime is hard to incorporate into shift work and managers have to work longer hours. </li></ul><ul><li>Communication among employees can also be difficult under flextime and managers have to be alert to any system abuses. </li></ul>11-
    42. COMPRESSED WORK WEEKS * * Flextime Plans LG9 <ul><li>Employees enjoy long weekends after working long days. </li></ul><ul><li>Productivity is a concern. </li></ul><ul><li>Nurses and firefighters often work compressed work weeks. </li></ul>11-
    43. JOB SHARING BENEFITS * * Job Sharing Plans LG9 <ul><li>Provides employment opportunities for many people who cannot work full time. </li></ul><ul><li>Workers tend to be enthusiastic and productive. </li></ul><ul><li>Absenteeism and tardiness are reduced. </li></ul><ul><li>Employers can schedule part-time workers in peak demand periods. </li></ul>11-
    44. MOVEMENT of EMPLOYEES * * Moving Employees Up, Over and Out LG9 <ul><li>Employees are promoted or reassigned. </li></ul><ul><li>Employees are terminated due to performance or economic situations. </li></ul><ul><li>Employees retire. </li></ul>11-
    45. TERMINATING EMPLOYEES * * Terminating Employees LG10 <ul><li>As the economic crisis grew, more and more employers have had to layoff employees. </li></ul><ul><li>Even when the economy is booming, employers are hesitant to hire full-time workers because of the cost of termination. </li></ul><ul><li>Firing employees is more difficult for employers because of laws preventing termination for certain acts. </li></ul>11-

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