Intro to Business Chapter 11

Business in Business in Action 8e Action 8e Bovée/ThillBovée/Thill

Developing a Business Mindset

Chapter 11Chapter 11Human Resources Human Resources

ManagementManagement

Production Systems

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.

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.

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

Contemporary Staffing Challenges

• Aligning the workforce• Fostering employee loyalty• Monitoring workloads and avoiding

employee burnout• Managing work–life balance

Contemporary Staffing Challenges (cont.)

• 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

Exhibit 11.1 Steps in Human Resources Planning

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

Forecasting Supply and Demand

• Turnover rate The percentage of

the workforce that leaves every year

• Employee retention Efforts to keep

current employees

Forecasting Supply and Demand (cont.)

• 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

Alternative Work Arrangements

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

Managing a Diverse Workforce (cont.)

• 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

• Sexual harassment Unwelcome sexual advances, request for

sexual favors, or other verbal or physical conduct of a sexual nature within the workplace

• Diversity initiatives Programs and policies that help companies

support diverse workforces and markets

Exhibit 11.3 Generations in the Workplace

Managing the Employment Life Cycle

• Recruiting The process of attracting appropriate

applicants for an organization’s jobs

Exhibit 11.4 The Recruiting Process

Terminating Employees

• Termination The process of

getting rid of an employee by firing him

• Layoffs Termination of

employees for economic or business reasons

Exhibit 11.5 Major Employment Legislation

Exhibit 11.5

Major Employment Legislation (cont.)

Replacing 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

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

Evaluating Employees (cont.)

• 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

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

Administering Employee Compensation

• Compensation Money, benefits, and services paid to

employees for their work Salary

• Fixed cash compensation for work, usually by a yearly amount; independent of the number of hours worked

Wages• Cash payment based on the number of hours an employee

has worked or the number of units an employee has produced

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

• 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

Incentive Programs (cont.)

• 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

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

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

Retirement Benefits (cont.)

• Employee stock-ownership plan (ESOP) A program that enables employees to

become partial owners of a company

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

Other Employee Benefits

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.

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.

Intro to Business Chapter 11

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