week 4: human resource management busn 102 – Özge can

WEEK 4: HUMAN RESOURCE MANAGEMENT

BUSN 102 – Özge Can

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

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Contemporary Staffing Challenges Aligning the workforce Fostering employee loyalty Monitoring workloads and avoiding

employee burnout Managing work–life balance

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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

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Steps in Human Resources Planning

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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

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Forecasting Supply and Demand Turnover Rate

The percentage of the workforce that leaves every year

Employee Retention Efforts to keep

current employees

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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

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Alternative Work Arrangements

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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

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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

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Managing a Diverse Workforce Diversity Initiatives

Programs and policies that help companies support diverse workforces and markets

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Managing the Employment Life Cycle Recruiting

The process of attracting appropriate applicants for an organization’s jobs

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The Recruiting Process

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Terminating Employees

Termination The process of

getting rid of an employee by firing him

Layoffs Termination of

employees for economic or business reasons

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Major Employment Legislation

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Major Employment Legislation

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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

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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

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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

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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

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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

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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

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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

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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

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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

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Employee Benefits and Services Employee Benefits:

Elements of compensation other than wages, salaries, and incentive programs

They are offered as either a preset package or as flexible plans

Cafeteria plans: Flexible benefit programs that let employees personalize their benefits packages

(e.g. insurance, retirement benefits, stock options, family benefits)

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Employee Benefits and Services Insurance

Range of plans including life, health, dental, disability and long-term care insurances

Retirement Plans Company-sponsored programs for providing

retirees with income (pension plans) Defined benefit plans => payment to employees

upon retirement Defined contribution plans => company puts into a

retirement fund. Similar to saving plans

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Employee Benefits and Services Employee Stock-Ownership Plan (ESOP)

A program that enables employees to become partial owners of a company. The company places some or all of its stock in trust

Stock Options Granting employees the right to purchase a set of

number of shares of the employer’s stock at a specific price during a certain period

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Other Employee Benefits:11-30

Summary: Key Dimensions of HRM HR planning: evaluating job requirements and

forecasting labor supply and demand Managing a diverse workforce Managing the employee life cycle: recruiting,

terminating and retiring employees Training and developing employees Evaluating employees: performance appraisal Administrating compansation: wages, salaries,

incentive programs, employee benefits

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