2. Chapter Eleven
LEARNING GOALS
1. Explain the importance of human resource
management, and describe current issues in
managing human resources.
2. Illustrate the effects of legislation on human
resource management.
3. Summarize the five steps in human resource
planning.
4. Describe methods that companies use to recruit
new employees, and explain some of the issues
that make recruitment challenging.
11-2
3. Chapter Eleven
LEARNING GOALS
5. Outline the six steps in selecting employees.
6. Illustrate employee training and development
methods.
7. Trace the six steps in appraising employee
performance.
8. Summarize the objectives of employee
compensation programs, and evaluate pay
systems and fringe benefits.
11-3
4. Chapter Eleven
LEARNING GOALS
9. Demonstrate how managers use scheduling plans
to adapt to workers’ needs.
10. Describe how employees can move through a
company: promotion, reassignment, termination,
and retirement.
11-4
5. Profile
MARK PARKER
Nike
• Started as shoe designer,
rose to CEO in 2006.
• The 7,000 workers at Nike’s
headquarters have access to
two gyms, an Olympic-size
pool, five restaurants, and
have free on-site childcare.
• Named one of the 100 Best
Places to Work in 2006,
2007 and 2008.
11-5
6. Chapter Eleven
NAME that COMPANY
This company is one of the largest U.S. steel
producers. It pays its teams bonuses that are
calculated on quality—tons of steel that go out
the door with no defects. There are no limits on
bonuses a team can earn; they usually average
around $20,000 per employee each year.
Name that company!
11-6
7. Working with
HUMAN RESOURCE MANAGEMENT
People is Just
the Beginning
LG1
11-7
8. Working with
People is Just
the Beginning
HUMAN RESOURCE
LG1 MANAGEMENT (HRM)
• 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.
• HRM’s role has grown because of:
1. Increased recognition of employees as a
resource.
2. Changes in law that rewrote old workplace
practices.
11-8
9. Working with
People is Just UNCOVERING the
the Beginning
LG1
SECRETS of HRM
Things Your HR Manager Doesn’t Tell You
• We’re short-staffed and under pressure too.
• We’re not always going to be able to help in the
way you hope.
• We can help you move up the career ladder.
• What you post on Facebook can get you fired.
Source: Smart Money, May 2010.
11-9
10. Developing the
Firm’s Ultimate
Resource
DEVELOPING the FIRM ’S
LG1 ULTIMATE RESOURCE
• Service and high-tech manufacturing requires
employees with highly technical job skills.
• Such workers are scarce,
making recruiting and
retention more important
and more difficult.
• The human resource job is
now the job of all managers
in an organization.
11-10
11. The Human
Resource
Challenge
CHALLENGES in FINDING
LG1 HIGH-LEVEL WORKERS
• A shortage of trained workers in key areas
• Worker shortage in skilled trades
• An increasing number of baby boomers who
delay retirement
• A declining economy with fewer full-time jobs
• Expanding global markets with low-wage workers
• Increasing benefit demands and benefit costs
• A decreased sense of employee loyalty
11-11
12. Laws Affecting
Human Resource
Management CIVIL RIGHTS ACT of 1964
LG2
• Title VII prohibits discrimination in hiring, firing,
compensation, apprenticeships, training, terms,
conditions or privileges of employment based on:
- Race
- Religion
- Creed
- Sex
- Age
- National Origin
11-12
13. Laws Affecting
Human Resource
Management 1972 EQUAL EMPLOYMENT
LG2 OPPORTUNITY ACT (EEOA)
• Strengthened the Equal Employment Opportunity
Commission (EEOC).
• Gave EEOC the right to issue workplace
guidelines for acceptable employer conduct.
• EEOC could mandate specific recordkeeping
procedures.
• EEOC was vested with the power of enforcement.
11-13
14. Laws Affecting
Human Resource
Management CONTROVERSIAL PROCEDURES
LG2 of the EEOC
• Affirmative Action -- Policy designed to “right
past wrongs” by increasing opportunities for
minorities and women.
• Reverse Discrimination -- 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 against
minority or disadvantaged groups.
• This policy has been at the center of many
debates and lawsuits.
11-14
15. Laws Affecting
Human Resource
Management CIVIL RIGHTS ACT of 1991
LG2 and OFCCP
• Civil Rights Act of 1991
- Amended Title VII and gave victims of discrimination
the right to a jury trial and possible damages.
• Office of Federal Contract Compliance Programs
(OFCCP)
- Ensures that employers doing business with the
federal government comply with the nondiscrimination
and affirmative action laws.
11-15
16. Laws Protecting
Employees with
Disabilities and
Older Employees
LAWS PROTECTING
LG2 EMPLOYEES with DISABILITIES
• Americans with Disabilities Act of 1990 (ADA)
- Requires employers to give applicants with physical or
mental disabilities the same consideration for employment as
people without disabilities.
- Passage in 2008 of Americans with
Disabilities Amendments Act
expanded protection.
- 2011 saw new regulations that widen
the range of disabilities covered by
the ADA and shift the burden of proof
of disability from employees to
employers.
11-16
17. Laws Protecting
Employees with
Disabilities and
Older Employees
AGE DISCRIMINATION in
LG2 EMPLOYMENT ACT (ADEA)
• Age Discrimination in Employment Act (ADEA)
- Protects workers 40 and
over from employment
and workplace
discrimination in hiring,
firing, promotion, layoff,
compensation, benefits,
job assignments and
training.
11-17
18. Effects of
Legislation MINDING the LAW in HRM
LG2
• Employers must know the law
and act accordingly.
• Legislation affects all areas of
HRM.
• Court cases highlight that
sometimes it’s proper to go
beyond providing equal rights.
• Changes in law and legislation
occur regularly.
11-18
19. The MILLION WOMAN SUIT
AGAINST WALMART
(Legal Briefcase)
• Over 1 million women filed suit against Walmart
for gender dominance in the store’s management
ranks.
• The case charged that not only did the company
leapfrog over women for leadership roles, it
engaged in pay inequality and harassment.
• The Supreme Court dismissed the class-action
suit.
11-19
20. Progress
Assessment PROGRESS ASSESSMENT
• What’s human resource management?
• What did Title VII of the Civil Rights Act of 1964
achieve?
• What’s the EEOC and what was the intention of
affirmative action?
• What does accommodations mean in the
Americans with Disabilities Act of 1990?
11-20
21. Determining a
Firm’s Human
HUMAN RESOURCE PLANNING
Resource Needs
LG3 PROCESS
1) Preparing a human resource
inventory of employees.
2) Preparing a job analysis.
3) Assessing future human
resource demand.
4) Assessing future labor
supply.
5) Establishing a strategic plan.
11-21
22. Determining a
Firm’s Human
Resource Needs WHAT’S a JOB ANALYSIS?
LG3
•Job Analysis – A study of what employees do who
•Job Description – A summary of the objectives of
•Job Specifications -- A summary of the minimum
11-22
23. Recruiting
Employees from
a Diverse
Population
RECRUITING EMPLOYEES
LG4
•Recruitment -- The set of activities for obtaining
•Human resource managers use both internal and
•Small businesses often make use of web sources
11-23
24. IT’S NOT EASY BEING SMALL
(Spotlight on Small Business)
• To survive, small businesses must recruit and
retain qualified workers.
• Unfortunately, they lack the resources of larger
companies to compete for employees.
• Small businesses need innovations like:
- Letting staff help recruit and select candidates.
- “Test-drive” an employee.
- Seek out publicity through local media.
11-24
26. Selecting
Employees Who
Will be
Productive
SELECTION
LG5
• Selection -- The
process of gathering
information and deciding
who should be hired,
under legal guidelines,
to serve the best interest
of the individual and the
organization.
11-26
27. Selecting
Employees Who
Will be
Productive
STEPS in the
LG5 SELECTION PROCESS
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) work periods
11-27
29. Hiring
Contingent
Workers HIRING CONTINGENT WORKERS
LG5
• Contingent Workers -- Include part-time and
temporary workers, seasonal workers, independent
contractors, interns and co-op students.
• There are about 5.7
million contingent
workers in the U.S.
• Majority of contingent
workers are under 25.
11-29
30. Hiring
Contingent
Workers
WHY HIRE
LG5 CONTINGENT WORKERS?
• Companies hire contingent workers:
- When full-time workers are on leave
- During periods of peak demand
- In uncertain economic times
- To save on employee benefits
- To screen candidates for future employment
11-30
31. Hiring
Contingent
Workers
STUDENTS and the
LG5 CONTINGENT WORKFORCE
• With temporary staffing agencies, companies
have easier access to screened workers.
• Worker information is entered into their
databases.
• When students come back
to town, they can call the
agency and ask them to
put their names into the
system for work.
11-31
32. ARE UNPAID INTERNS
TOO INTERRED?
(Making Ethical Decisions)
• With few entry-level positions available, interns
can end up in an unpaid position for as long as
six months with no chance of advancement.
• Some businesses give interns lots of
responsibility; a Toronto paper fired all paid staff
and replaced them with unpaid interns.
• Is it ethical for companies to use unpaid interns if
they know they don’t have jobs to offer or if the
unpaid internships replace paid jobs?
11-32
33. Progress
Assessment PROGRESS ASSESSMENT
• What are the five steps in human resource
planning?
• What factors make it difficult to recruit qualified
employees?
• What are the six steps in the selection process?
• Who is considered a contingent worker, and why
do company hire such workers?
11-33
34. Training and
Developing
Employees for
Optimum
TRAINING and DEVELOPING
Performance
LG6 EMPLOYEES
• Training and Development -- All attempts to
improve productivity by increasing an employee’s
ability to perform.
• Training focuses on short-term skills.
• Development focuses on long-term abilities.
11-34
35. Training and
Developing
Employees for
Optimum
THREE STEPS of TRAINING
Performance
LG6 and DEVELOPMENT
1. Assessing organization needs and employee
skills to develop appropriate training needs.
2. Designing training activities to meet identified
needs.
3. Evaluating the
training’s
effectiveness.
11-35
36. Training and
Developing
Employees for
Optimum
MOST COMMONLY USED TRAINING
Performance
LG6 and DEVELOPMENT ACTIVITIES
• Orientation
• On-the-Job Training
• Apprenticeships
• Off-the-Job Training
• Online Training
• Vestibule Training
• Job Simulation
11-36
37. Management
Development DEVELOPING EFFECTIVE
LG6 MANAGERS
• Management Development -- The process of
training and educating employees to become good
managers and monitoring the progress of their skills
over time.
• Management training includes:
- On-the-job coaching
- Understudy positions
- Job rotation
- Off-the-job courses and training
11-37
38. Management
Development WHY GOOD EMPLOYEES QUIT
LG6
Source: Robert Half International
11-38
39. Networking
USING NETWORKS and
LG6 MENTORING
• Networking -- Establishing and maintaining
contacts with key managers in and out of the
organization and using those contacts to develop
relationships.
• Mentors -- Managers who supervise, coach and
guide selected lower-level employees by acting as
corporate sponsors.
• Networking and mentoring go beyond the work
environment.
11-39
40. Appraising
Employee
Performance to Get
Optimum Results
APPRAISING PERFORMANCE
LG7 on the JOB
• Performance Appraisal -- An evaluation that
measures employee performance against established
standards in order to make decisions about
promotions, compensation, training or termination.
• A 360-degree review
gives managers
opinions from people at
different levels to get a
more accurate idea of
the worker’s ability.
11-40
41. Appraising
Employee
Performance to Get
Optimum Results
SIX STEPS of PERFORMANCE
LG7 APPRAISALS
1. Establishing performance standards that are
understandable, measurable and reasonable.
2. Clearly communicating those standards.
3. Evaluating performance against the standards.
4. Discussing the results with employees.
5. Taking corrective action.
6. Using the results to make decisions.
11-41
42. Appraising
Employee
Performance to Get
Optimum Results
MAJOR USES of
LG7 PERFORMANCE APPRAISALS
• Identify training needs
• Use as a promotion tool
• Recognize worker’s achievements
• Evaluate the firm’s hiring process
• Judge the effectiveness of the firm’s orientation
process
• Use as a basis for possible termination of a
worker
11-42
43. Appraising
Employee
Performance to Get PERFORMANCE APPRAISAL
Optimum Results
LG7
MISTAKES
Common Problems Made While Reviewing Employees
• Contrast Effect - Comparing one employee to
another.
• Halo/Horn Effect - Allowing performances in specific
areas to unfairly influence overall performance
evaluation.
• Similar-to-Me Effect - Generosity to those you feel
are more like you.
11-43
44. Progress
Assessment PROGRESS ASSESSMENT
• Name and describe four training techniques.
• What’s the primary purpose of a performance
appraisal?
• What are the six steps in a performance
appraisal?
11-44
45. Compensating
Employees:
Attracting and
Keeping the Best
COMPENSATION PROGRAMS
LG8
• A managed and competitive compensation
program helps:
- Attract the kinds of employees the business needs.
- Build employee incentive to work efficiently and
productively.
- Keep valued employees from going to competitors or
starting their own firm.
- Maintain a competitive market position by keeping costs
low due to high productivity from a satisfied workforce.
- Provide employee financial security through wages and
fringe benefits.
11-45
46. Pay Systems
TYPES of PAY SYSTEMS
LG8
• Salary
• Hourly Wage/Day Work
• Piecework System
• Commission Plans
• Bonus Plans
• Profit Sharing Plans
• Gain-Sharing Plans
• Stock Options
11-46
47. Compensating
Teams COMPENSATING TEAMS
LG8
• Team-based pay programs are more challenging
than individual pay systems.
• The two most common methods for teams
involve:
- Skill-Based: Pay is increased as skill increases.
(Eastman Chemical uses this system.)
- Gain-Sharing: Pay is increased as performance
increases. (Nucor Steel uses this system.)
11-47
48. Fringe Benefits
FRINGE BENEFITS on the JOB
LG8
• Fringe Benefits -- Sick leave, vacation pay,
pension and health plans that provide additional
compensation to employees beyond base wages.
• In 1929, fringe benefits accounted for less than
2% of payroll cost. Today it’s about 30%.
• Healthcare has been the most significant
increase in fringe benefit cost.
11-48
49. Fringe Benefits
HEALTHCARE, a PERK NOT
LG8 to be TAKEN LIGHTLY
• Compare all the costs, not
just premiums.
• Take part in wellness
programs. The average
wellness bonus is $386!
• Order generic drugs when
you need prescriptions
filled.
Source: Kiplinger’s Personal Finance, November 2010.
11-49
50. Fringe Benefits
WHO PAYS for
LG8 EMPLOYEE BENEFITS?
• 74% of full-time workers
have employee-provided
retirement plans.
• 39% of part-time workers
have employee-provided
retirement plans.
• 71% of workers have
medical care benefits.
Source: Entrepreneur, May 2011.
11-50
51. Fringe Benefits
The RANGE of
LG8 FRINGE BENEFITS
• Fringe benefits include incentives like:
- Company cars
- Country club memberships
- Recreation facilities
- Special home mortgage rates
- Paid and unpaid sabbaticals
- Day-care and elder care services
- Dental and eye care
- Legal counseling
- Short or compressed work weeks
11-51
52. Fringe Benefits
SPECIAL PERKS at
LG8 DREAMWORKS
• Free DVDs and screenings of
current films.
• Free breakfast and lunch plus
dinner when working late.
• Free snack rooms on every
floor.
• Profit sharing.
• Ping-Pong and poker
tournaments during work
hours.
11-52
53. Fringe Benefits
CAFETERIA-STYLE and
LG8 SOFT BENEFITS
• Cafeteria-Style Fringe Benefits -- Allow
employees to choose the benefits they want (up to a
certain dollar amount).
• Soft Benefits include:
- Onsite haircuts and shoe repair
- Concierge services
- Free meals at work
- Doggie daycare
- Onsite farmer’s markets
11-53
54. Fringe Benefits
LET’S GO to the BEACH!
LG8 Average Vacation Days by Country
Source: Reuters, June 24, 2010.
11-54
55. WORKING WORLDWIDE
(Reaching Beyond Our Borders)
• Managers need to understand the business
needs of each country they operate in.
- Compensation: Conversion to foreign currencies and
special allowances often are needed.
- Health and Pension Standards: Benefits are different
country-by-country.
- Paid Time Off: Vacation time, sick and personal leave
vary.
- Taxation: Tax policies vary.
- Communication: Employees can feel disconnected in
other countries.
11-55
56. Flextime Plans
FLEXIBLE SCHEDULING PLANS
LG9
• Flextime Plan -- Gives employees some freedom
to choose which hours to work as long as they work
the required number of hours or complete their tasks.
• Compressed Work Week -- Employees work
the full number of work hours, but in fewer than the
standard number of days.
• Job Sharing -- Lets two or more part-time
employees share on a full-time job.
11-56
57. Flextime Plans
USING FLEXTIME PLANS
LG9
• Most flextime plans require Core Time -- When
all employees are expected to be at their job stations.
• Flextime is difficult to incorporate into shift work
and managers have to work longer hours.
• Communication among employees can also be
difficult under flextime and managers have to be
alert to any system abuses.
11-57
59. Flextime Plans
COMPRESSED WORK WEEKS
LG9
• Employees enjoy long
weekends after working long
days.
• Productivity is a concern.
• Nurses and firefighters often
work compressed work
weeks.
11-59
60. Home-Based
Work HOME-BASED WORK
LG9
• About 10 million Americans telecommute at least
several days a month.
• 12% of U.S. businesses use some home-based
work.
• Bank of America has
My Work that saves
an estimated $5,500
per enrolled
employee every year.
11-60
61. Home-Based
Work
VIRTUALLY THERE
LG9 Tools to Help You Work From Home
• Communication:
- Google Apps
- Skype
- Yammer
• Collaboration:
- Google Docs
- GoToMeeting
- Dropbox
Source: Entrepreneur, January 2011.
11-61
62. Home-Based
Work
GOING NOWHERE FAST
LG9 Worst Commutes in the World
Source: Bloomberg Businessweek, December 20, 2010.
11-62
63. Job Sharing
Plans JOB SHARING BENEFITS
LG9
• Provides employment opportunities for many
people who cannot work full time.
• Workers tend to be enthusiastic and productive.
• Absenteeism and tardiness are reduced.
• Employers can schedule part-time workers in
peak demand periods.
11-63
64. Moving
Employees Up,
Over and Out
MOVING EMPLOYEES
LG10
• Employees are promoted or
reassigned.
• Employees are terminated due
to performance or economic
situations.
• Employees retire.
11-64
65. Terminating
Employees TERMINATING EMPLOYEES
LG10
• As the economic crisis grew, more and more
employers have had to lay off employees.
• Even when the economy is booming, employers
are hesitant to hire full-time workers because of
the cost of termination.
• Firing employees is more
difficult for employers
because of laws preventing
termination for certain acts.
11-65
66. Progress
Assessment PROGRESS ASSESSMENT
• Name and describe five alternative compensation
techniques.
• What advantages do compensation plans such
as profit sharing offer an organization?
• What are the benefits and challenges of flextime?
Telecommuting? Job sharing?
11-66
Editor's Notes
Company: Nucor Steel
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 involves a multitude of tasks and responsibilities. This slide gives some insight into the various roles the HRM 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. Uncovering the Secrets of HRM This slide shows that the HR department can help or hurt your career. Some folks will approach HR with every little problem they encounter. However, with the decline in employment, HR departments are often under pressure to get more pressing things taken care of. If you want to succeed in a company, make sure the HR staff knows you and likes you. They can help you move up. Click the link on the slide and surf through various Facebook posts that have gotten people fired. This will help promote class discussion. Ask students: Do you think the terminations described in the stories link on the slide were justified?
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 HR managers, requiring companies 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 2: Illustrate the effect of legislation on human resource management. Although the Supreme Court ruled in favor of Walmart, the court did not decide whether Walmart had, in fact, discriminated against the women, only that they could not proceed as a class.
Human resource management is the process of determining the needs of the organization and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals. Title VII prohibits discrimination in hiring, firing, compensating, apprenticeships, training, terms, conditions, or privileges of employment based on race, religion, creed, sex, or national origin. At a later date age discrimination was added to the act. The Equal Employment Opportunity Commission was created by the Civil Rights Act. The EEOC was permitted to issue guidelines for acceptable employer conduct in administering equal employment opportunity. Affirmative action is the most controversial policy of the EEOC and was designed to “right past wrongs” by increasing opportunities for minorities and women. Employers are required to make “reasonable accommodations” for employees with disabilities, such as modifying equipment or widening doorways.
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. OOPs! Applicants ’ Mistakes This slide presents the job application areas where the applicants make the most mistakes. The results are based on the survey of over 1,400 CFOs of U.S. companies with 20 or more employees. The top two areas where applicants make the most mistakes are interviews and resumes. Ask the students: What are your experiences with interviews or resume errors? How many of you follow up after an interview?
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.
The five steps in human resource planning are: (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, and (5) establishing a strategic plan. Some factors that make it difficult to recruit qualified employees include: organizational policies that demand promotions from within, union regulations, and low wages. The six steps in the selection process 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 trial period . Contingent workers include part-time workers, temporary workers, seasonal workers, independent contractors, interns and co-op students. Contingent workers are sometimes hired in an uncertain economic climate, when full-time workers are on leave, when there is peak demand for labor or products and finally when quick service is necessary.
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. An example of orientation: 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.
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 performance.
See Learning Goal 7: Trace the six steps in appraising employee performance.
See Learning Goal 7: Trace the six steps in appraising employee performance. 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 performance. 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?
Off-the-job training 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. An apprenticeship program involves a student or apprentice working alongside an experienced employee to master the skills and procedures of a craft. Vestibule training or near-the-job training is done in a classroom with equipment similar to that used on the job so employees learn proper methods and safety procedures before assuming a specific job assignment. Job simulation is the use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job. The primary purpose of a performance appraisal is to determine whether workers are doing an effective and efficient job, with a minimum of errors and disruptions. The six steps in a performance appraisal are: (1) establishing performance standards, (2) communicating those standards, (3) evaluating performance, (4) discussing results with employees, (5) taking corrective action, and (6) using the results to make decisions.
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. Nucor Steel calculates bonuses on quality—tons of steel that go out the door with no defects. There are no limits on bonuses a team can earn; they usually average around $20,000 per employee each year.
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. Healthcare, a Perk Not to be Taken Lightly Many companies now ask their employees to pitch in for healthcare costs. This slide shows students how to cope with those costs and find what ’s best for them.
See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits. Who Pays for Employee Benefits? Entrepreneur used statistics from the Bureau of Labor Statistics to create this list. Ask students: Did you think more Americans had retirement plans sponsored by their employer? What about healthcare?
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. Special Perks at Dreamworks Employee perks can take different shapes. Companies like Dreamworks try to offer benefits to keep the work environment loose and creative. Have students read this article from Entrepreneur.com (http://www.entrepreneur.com/humanresources/compensationandbenefits/article171630.html) with ideas for twenty low-cost employee perks.
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. Vacation Days Per Year This slide presents a comparison of number of vacation days given and used per year in different countries. France leads with an average of 38 vacation days given per year whereas the U.S. ties for last with just 17 days. Even though the U.S. comes in last with only 17 days, an interesting fact to share with the students is that most Americans don ’t even use these 17 days. Ask the students: What impact does this benefit of number of days of vacation have on recruiting at an international level? (Most should be able to identify that domestically, it may not have much of an impact. However internationally, potential candidates would be comparing between different countries, especially if they are from one of the countries that offer a much higher number of vacation days, such as Italy, France, or Germany. This may have an impact on the ability of an organization to recruit.)
See Learning Goal 8: Summarize the objectives of employee compensation programs, and evaluate pay systems and fringe benefits.
See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs.
See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs.
See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs. Flextime gives employees some freedom and empowers them to work when it best meets their schedule. The benefits are obvious and often lead to a more motivated workforce.
See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs.
See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs. BoA ’s program adds up to a $100 million a year saving and employees in the program work remotely about 60 percent of the time.
See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs. Virtually There Click on these links to visit pages containing useful tools for working outside of the office.
See Learning Goal 9: Demonstrate how managers use scheduling plans to adapt to workers ’ needs. Going Nowhere Fast IBM ranked cities from 1 to 100 (100 being the worst). Factors included traffic, road rage and gridlock. 69% of commuters in Beijing have said traffic has been so bad some days, they turned around and went home. New York and LA ranked rather low on the list considering they ’re notorious in U.S. traffic problems. Those in Moscow have to normally spend 2.5 - 3 hours in their cars. Ask students: Would you travel 2.5 hours just to get to and from work? Would flextime be more beneficial for these workers?
See Learning Goal 9: Demonstrate 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.
See Learning Goal 10: Describe how employees can move through a company: promotion, reassignment, termination, and retirement.
Alternative compensation techniques include: (1) commission Plans - rewarding employees with a percentage of sales, (2) bonus plans - rewarding employees with payment based on achievement of a predetermined goal, (3) profit sharing plans - giving employees the ability to share in a percentage of the company ’s profit, (4) gain-sharing plans - bonus is based on improvements over previous performance, and (5) stock options - granting employees shares of stocks based on performance. The hope is that profit sharing plans will motivate employees to think like owners. Flextime benefits include allowing employees to adjust to work/life demands. Challenges of flextime include not being applicable for all businesses, making communication more difficult, and creating the possibility of resentment if employees abuse the system. Telecommuting benefits include cost saving for employers and allows employees to manage work/life demands. Challenges of telecommuting include that it requires disciplined employees to stay focused and communication with employees may suffer. Job sharing benefits include employment opportunities for those who cannot (or prefer not to) work full-time, reduced absenteeism and tardiness, retention of experienced workers and ability to schedule workers during peak times. Challenges of job sharing include the need to hire, train, motivate, and supervise at least twice as many employees.
