Business in Business in Action 8e Action 8e Bovée/ThillBovée/Thill
Developing a Business Mindset
Chapter 11Chapter 11Human Resources Human Resources
ManagementManagement
Production Systems
Copyright © 2017 Pearson Education, Inc.
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.
11-2
Copyright © 2017 Pearson Education, Inc.
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.
11-3
Copyright © 2017 Pearson Education, Inc.
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
11-4
Contemporary Staffing Challenges
Copyright © 2017 Pearson Education, Inc.
• Aligning the workforce• Fostering employee loyalty• Monitoring workloads and avoiding
employee burnout• Managing work–life balance
11-5
Contemporary Staffing Challenges (cont.)
Copyright © 2017 Pearson Education, Inc.
• 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
11-6
Copyright © 2017 Pearson Education, Inc.
Exhibit 11.1 Steps in Human Resources Planning
11-7
Evaluating Job Requirements
Copyright © 2017 Pearson Education, Inc.
• 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
11-8
Forecasting Supply and Demand
Copyright © 2017 Pearson Education, Inc.
• Turnover rate The percentage of
the workforce that leaves every year
• Employee retention Efforts to keep
current employees
11-9
Forecasting Supply and Demand (cont.)
Copyright © 2017 Pearson Education, Inc.
• 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
11-10
Alternative Work Arrangements
Copyright © 2017 Pearson Education, Inc. 11-11
Managing a Diverse Workforce
Copyright © 2017 Pearson Education, Inc.
• 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
11-12
Managing a Diverse Workforce (cont.)
Copyright © 2017 Pearson Education, Inc.
• 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
11-13
Copyright © 2017 Pearson Education, Inc.
• Sexual harassment Unwelcome sexual advances, request for
sexual favors, or other verbal or physical conduct of a sexual nature within the workplace
11-14
Managing a Diverse Workforce (cont.)
Copyright © 2017 Pearson Education, Inc.
Managing a Diverse Workforce (cont.)
• Diversity initiatives Programs and policies that help companies
support diverse workforces and markets
11-15
Copyright © 2017 Pearson Education, Inc.
Exhibit 11.3 Generations in the Workplace
11-16
Managing the Employment Life Cycle
Copyright © 2017 Pearson Education, Inc.
• Recruiting The process of attracting appropriate
applicants for an organization’s jobs
11-17
Copyright © 2017 Pearson Education, Inc.
Exhibit 11.4 The Recruiting Process
11-18
Copyright © 2017 Pearson Education, Inc.
Terminating Employees
• Termination The process of
getting rid of an employee by firing him
• Layoffs Termination of
employees for economic or business reasons
11-19
Copyright © 2017 Pearson Education, Inc.
Exhibit 11.5 Major Employment Legislation
11-20
Copyright © 2017 Pearson Education, Inc.
Exhibit 11.5
Major Employment Legislation (cont.)
11-21
Replacing Retiring Employees
Copyright © 2017 Pearson Education, Inc.
• 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
11-22
Copyright © 2017 Pearson Education, Inc.
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
11-23
Copyright © 2017 Pearson Education, Inc.
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
11-24
Training and Developing Employees
Copyright © 2017 Pearson Education, Inc.
• 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
11-25
Administering Employee Compensation
Copyright © 2017 Pearson Education, Inc.
• 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
11-26
Copyright © 2017 Pearson Education, Inc.
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
11-27
Copyright © 2017 Pearson Education, Inc.
• 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
11-28
Incentive Programs (cont.)
Copyright © 2017 Pearson Education, Inc.
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
11-29
Employee Benefits and Services
Copyright © 2017 Pearson Education, Inc.
• Employee benefits Compensation other than wages, salaries,
and incentive programs
• Cafeteria plans Flexible benefit programs that let employees
personalize their benefits packages
11-30
Retirement Benefits
Copyright © 2017 Pearson Education, Inc.
• 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
11-31
Copyright © 2017 Pearson Education, Inc.
Retirement Benefits (cont.)
• Employee stock-ownership plan (ESOP) A program that enables employees to
become partial owners of a company
11-32
Copyright © 2017 Pearson Education, Inc.
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
11-33
Other Employee Benefits
Copyright © 2017 Pearson Education, Inc. 11-34
Applying What You’ve Learned
Copyright © 2017 Pearson Education, Inc.
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.
11-35
Copyright © 2017 Pearson Education, Inc.
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.
11-36
Copyright © 2017 Pearson Education, Inc. 11-37