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Human Resource Management

by: tess grogan

Human Resource Management Mgmt

Marketplace > University of Mississippi > 383 > Mgmt > Human Resource Management
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These study guides cover the three Human Resource Management exams with a final exam review which was cumulative
Human Resource Management
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This 60 page Study Guide was uploaded by tess grogan on Tuesday September 13, 2016. The Study Guide belongs to Mgmt at University of Mississippi taught by Palar in Spring 2015. Since its upload, it has received 313 views. For similar materials see Human Resource Management in 383 at University of Mississippi.

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Date Created: 09/13/16
Chapter 1: Functions of human resource management:pg 12  HR management is design of formal systems in an organization to manage human talent  for accomplishing organizational goals  HR strategy and planning, EEO, staffing, talent management and development, rewards,  risk management and worker protection, employee and labor relations  Organizational culture(pg 11)  Consists of the shared values and beliefs that give members of an organization meaning  and provide them with rules for behavior  It tells people how to behave in an organization  Only if an organization has a history in which people have shared experiences for years  does a culture stabilize   “Climate” of the organization Human resource roles (pg 150  Administrative role­ focusing on clerical administration and recordkeeping, including  essential legal paperwork and policy implementation o Talent management and developmental activities begin with outsourcing  administrative roles  o Traditionally most dominant role in HR  Operational role and employee advocate­ managing most HR activities in keeping with  the strategies and operations that have been identified by management and serving as  employee “champion” for employee issues and concerns o Tactical in nature  Strategic role­ involves helping to define the strategy relative to human capital and its  contribution to organizational results o Part of strategy should be knowing what the true cost of capital is for the  employer Globalization roles(pg 20)  Expatriate­ citizen of one country who is working in a second country and employed by  and organization headquartered in the first country o Ex: Raul, a U.S. citizen, works in Mexico for an organization headquartered in the United States.  o Jane, a citizen of the country of Aria, works in the country of Polia for an  organization headquartered in Aria  Host country national­ is a citizen of one country who is working in that country and  employed by an organization headquartered in a second country  o Ex: Peter, a U.S. citizen, works in the United States for an organization  headquartered in Mexico.   Third country national­ is a citizen of one country who is working in a second country  and is employed by an organization headquartered in a third county  o Ex: US citizen working for a british oil company as a manager in Norway Generalist vs specialist pg 28  Generalist: person who has responsibility for performing a variety of HR activities o Ex:Josh, a human resource manager, used to handle employee recruitment and  compensation for his organization. After a promotion, he was responsible for  handling employee recruitment, compensation, and benefits.  Specialist: person who has in­depth knowledge and expertise in a limited area of HR o Most common HR specialty­ benefits, employment and recruitment,  compensation o Ex: Ramone, a human resource manager, works for TelVille Inc. Initially, he was  responsible only for recruitment. After a promotion, he was made  o Responsible exclusively for employee benefits Chapter 2 Strategic planning process:  Strategic planning: is the process of defining a strategy, or direction and making  decisions on how to allocate the resources of the organization (capital and people) to  pursue the strategy  First step: organizational mission­ which is the core reason for the existence of the  organization and what makes it unique  SWOT analysis  Establish goals and objectives  Formulate organizational strategy   Formulate supporting functional strategies  Implement  Evaluate and reassess­ last step   Ex: Mark, an HR manager, is responsible for the HR planning process in his organization. He has reviewed the organization’s strategic plans. Which of the following is most likely to be Mark’s  next step in the planning process?  next step is Establish Goals and objectives  Multinational corporations: an organization that has facilities and other assets in at least one  country other than its home country Strategic approaches to international staffing   Ethnocentric policy­ managers from headquarters staff key positions  Polycentric­ host country nationals staff key positions  regiocentric­ key positions are filled by individuals in the region of the subsidiary (ex:  European union)  Geocentric­ international cadre of skilled managers are assigned to global subsidiaries  regardless of nationality Human resource planning­ is the process of analyzing and identifying the need for and  availability of people so that the organization can meet its strategic objectives  Ensure that the organization has the right number of people with the right capabilities at  the right times and the right place   First step: Review organization Finding new people to fill positions  Environmental scanning­ the assessment of external and internal environmental  conditions that affect the environment  o External environment: economical, political, and competitive forces that will  shape the future o o Internal environment: quality and quantity of talent, the organizational culture,  and the talent and the pipeline leadership bench strength**   Strength of the talent pipeling is important in internal consideration   Leadership development and succession planning programs ensure that high quality talent will be able to carry out the strategy  Succession planning is the process of identifying a plan for orderly replacement of key  employees Forecasting – how organizations fill rolls  ***Internal supply =current staffing level­ projected outflows this year + projected inflows this  year  Staffing ratios**­ mathematical method of HR forecasting  Judgmental method  Rule of thumb**­ refers to the judgmental method of HR forecasting that relies on  general guidelines applied to a specific situation within the organization   Estimates   Nominal group­ refers to the judgmental method of HR forecasting that requires experts  to meet face to face   Replacing the experience and talents of longer­service workers is a challenge facing  employers in all industries.  Contingent workers include temporary workers, independent contractors, leased  employees, and part­timers.  Effective method of managing talent surplus freeze hiring  Effective method for managing talent shortage outsourcing to a third party Sources of inflows and outflows of employees   Economic and governmental factors   Geographic/ competitive evaluations – net migration … direct competitors   Changing workforce considerations   Inflow of current staffing level  Internal transfers****, external hires, promotions,  recalls TALENT PIPELINE  Outflow of current staffing positions  promotions,** turnover, terminations, demotions,  retirements, deaths, layoffs,  Demographic changes***  COBRA vs Warn act  COBRA­ displaced workers can retain their group medical coverage for up to 18 months  for themselves, and up to 36 months for their dependents, if the pay the premiums  themselves  WARN act­ it requires private or commercial organizations that employ 100 or more full time workers who have worked more than 6 months in the previous year to give a 60 day  notice before implementing a layoff or facility closing that involves more than 30 people o Consequence for violating WARN act  incurring heavy fines  How do organizations find new people to fill important roles? o Replacing the experience and talents of longer­service workers is a challenge facing  employers in all industries. o Contingent workers include temporary workers, independent contractors, leased  employees, and part­timers. What do HR people do post integration and mergers and acquisitions  Purpose of a merger or acquisition is to generate growth by combining two existing  companies and creating a more competitive company     Before the deal­  Due diligence must be conducted­ is a comprehensive assessment of all  aspects to the business being acquired  o Conduct due diligence o Assess risks *** must be done before  o Identify possible conflicts  During Integration  o Address key HR processes  o Retain key talent  o Recognize cultural differences  Post integration  o Optimize workforce** must be done post  o Identify and establish new culture******* o Measuring effectiveness of human resources and human capital  HR metrics   Effectiveness­the ability to produce a specific desired effort or result that can be  measured   HR Metrics­ are specific measures of HR performance indicators  The real value in using metrics is not in the collection and reporting of the results it is the  analysis and interpretation of the data that can lead to improvements in human capital  utilization   KEY METRICS o HR staff and expenses – HR to employee ratio, total HR staff, HR expenses per  FTE  o Staffing­ number of positions filled, time to fill, cost per hire, annual turnover rate o Compensation­ annual wage and salary increases, payroll as a percentage of  operating expenses, benefit costs as a percentage of payroll  o Training­ hours of training per employee, total costs for training, percentage of  employees participating in tuition reimbursement program  o Retention and quality­ average tenure of employees, percentage of new hires  retained for 90 days, performance quality of employees in first year o Development­ positions filled internally, percentage of employees with career  plan  HR analytics – an evidence based approach to making HR decisions on the basis of quantitative  tools and models  Benchmarking –comparing the business results to industry standards “best in class”  Using benchmarking HR effectiveness is best determined by measures on a year to year  basis  Balance scorecard­ a framework used to report a diverse set of performance measures  Financial measures­ utilization of capital, profit and loss   Internal business processes­ operational effectiveness, conformance to standards   Customer relations­ customer satisfaction, customer loyalty   Learning and growth activities­ employee capabilities, institutional knowledge  Human capital effectiveness measure ­­financial  Many metrics reflect people related costs, measuring the benefits is challenging but  assessing the value of human capital demonstrates importance of effective HR practices   Revenue per employee – basic measure of human capital effectiveness  o Revenue/head count (full time employee equivalents) – measure of employee  productivity & shows sales revenue generated by each full time employee   Return on investment­ o Financial element that can be applied to cost of HR activities o ROI = C/ (a+b)  A= operating costs for a new or enhanced system for the time period   B= one time cost of acquisition and implementation  C= value of gains from productivity and improvements for the time period  Human capital value added(HCVA)­ adjusted operating profitability figure calculated by  subtracting all operating expenses except for labor expense from revenue and dividing by total full time head count o Shows the operating profit per full time employee  o Revenue­ (operating expense­ (compensation + benefit costs)/ full time head  count  Human capital return on investment­ directly shows the operating profit derived from  investments in human capital o Revenue –(operating expense –(compensation + benefit costs))/ (compensation+  benefit costs)  Human economic value added – HEVA­ wealth created per employee o Net profit after taxes­ cost of capital/ full time head count Human Resource audit  A formal research effort to assess the current state of HR practices  o Compliance audit­ checks record keeping on state and federal paperwork  requirements o Benefit program audit­ reviews regulatory compliance, benefits administration  and reporting o I­9 audit­ reviews compliance with immigration regulations and the I­9 form  requirement o Specific program audit: reviews specific HR Sub areas such as compensation,  EEO, or training o Full HR audit: Reviews all the above plus any and all other HR function  Chapter 3 Equal employment opportunity­ means that employment decisions must be made on the basis of  job requirements and worker qualifications   EEo is a broad reaching concept that essentially requires employees to make status blind employment decisions  Affirmative action means that an employer takes proactive measures to increase the  number of women and minorities in the workforce  Unlawful discrimination occurs when decisions are made on basis of protected  characteristics­ race, age, sex, disability, or religion   US department of labor has broad enforcement power and oversees compliance of many  employment related laws Disparate treatment Disparate impact ­ members of a group are treated differently  ­ occurs when an employment practice that  from others does not appear to be discriminatory has a  ­ Ricci vs Destafano – white firefighters being  disproportionately adverse effect on  denied promotion opportunities because of  individuals with a particular characteristic their race demonstrates disparate treatment ­griggs vs duke­ employer must have burden  of proof to show that a selection process is  directly job related as a business necessity EEO concepts Business necessity – is a practice required for safe and efficient organizational operations  Preventing workers from injuring themselves at the workplace Criminal background checks and credit reports in the selection process has criticism that it often  results in disparate impact of minority applications Bona Fide occupational qualification­it provides a legitimate reason why an employer can  exercise persons on otherwise illegal bases of consideration  Burden of proof­ what individuals who file suit against employers must prove to establish that  illegal discrimination has occurred Nonretaliatory practices –employers are prohibited from retaliating against individuals who file  discrimination charges  Retaliation­ employers are prohibited from retaliating agains individuals who file  discrimination charges Broad based discrimination laws Act  year Key provisions Covered employees Title VII, civil rights  1964 Prohibits discrimination in  Employers w 15+  act of 1964 employment on race, color,  employees religion, sex or national orgin Civil rights act of 1991 1991 Requires employers show that  Federal contractors,  employment practice is job  50+ employees, gov  related for the position and  contract of 50,000+ consistent with business  necessity  Executive orders  1965  Require federal contracters to  Employers w 15+  112,113,11478 1967 take affirmative actions  employees compensate for historical  discrimination against women,  minorities, and handicapped  individuals Affirmative action program­ to have the company’s workforce demographics reflect as closely as possible the demographics in the labor market  Affirmative action program is reviewed by the office of federal contract compliance  programs Managing racial/ ethnic discrimination  Original purpose of the civil rights act of 1964 was to address the racial discrimination  in the US  One solution is to use anonymous applications  SEX/GENDER discrimination laws and regulations  Pregnancy discrimination act (PDA)­ of 1978 requires that employers treat maternity  leave the same as other personal or medical leaves  Family and medical leave act­ requires that qualified individuals be given up to 12 weeks  of unpaid family leave  o Requires that qualified individuals be given up to 12 weeks of unpaid family  leave and also requires that those taking family leave allowed to return to jobs EQUAL PAY &PAY EQUITY  Equal pay act of 1963­ requires employers to give similar wage rates for similar work  without regard to gender o Difference in pay between men and women permitted by EPA of 1963 is  difference in performance, difference in seniority  Lilly Ledbetter fair pay act­ eliminates the statute of limitations for employees who file  pay discrimination under Equal pay act  Development of pay equity­ the continuing gap between earnings of women and men  Reducing pay inequities benchmark against local and national markets  Glass ceiling­ refers to discriminatory practices that have prevented women and other  minority status employees from advancing to executive level jobs o Establishing formal mentoring programs for minority groups is the most common means used to control instances of glass ceiling The EEOC and federal court cases have ruled that sex discrimination under title VII applies to a  person’s gender at the time of birth Sexual harassment  Unwelcome verbal, visual, or physical conduct of a sexual nature that is severe and  affects working conditions or creates hostile work environment  Nepotism­ is the practice of allowing relatives to work for the same employer   Quid pro quo­ a supervisor giving a pay hike to an employee who performs sexual favors o A company always bears liability for quid pro quo harassment as supervisors are  agents of the company\a supervisor can be held guilty of quid pro quo harassment  if he or she promotes employee in return of sexual favor                        DISABILITY DISCRIMINATION    Rehabilitation act­ in 1973 required that federal contractors take affirmative action to  employ disabled workers     ADA­ does not protect users of illegal drugs and substances, is enforced by the EEOC,  does not cover state government employees Prohibits the use of preemployment medical exams, except for drug tests until a job has  been conditionally offered  Age discrimination in employment act­ prohibits discrimination in terms, conditions, or  privilege’s of employment against all individuals of age 40 or older working for employers  having 20 or more workers  Older workers benefit protection act­ workers over the age of 40 are entitled to receive  complete accurate information on the available benefits, a list of all workers impacted in a  reduction, and several weeks to decide whether or not to accept severance benefits in exchange  for a waiver to sue the employee Phased retirement­ employees workloads and pay levels are reduced Immigration reform and control act­ requires employers to verify the employment status of all employees while not discriminating because of national origin or ethnic background Uniformed services employment and reemployment rights act –uniformed military personnel are provided up to five years of active duty service leave during which employer must hold their  job  Employees are required to notify their employers of military service obligations ADA and job requirements  Essential job requirements­ fundamental job duties  Reasonable accommodation­ modification to a job or work environment that gives a  qualified individual an equal employment opportunity to perform o Typically a practice of reasonable accommodation by employers toward disabled employees is providing special equipment to assist w their special task Diversity training Chapter 4 The workforce profile  Labor force participation rate­ percentage of the population working or seeking work  o Age ­ Prime work force­ ages 25­54 o Skill gaps  o Work ready credentials­measure necessary skills       National work readiness credential­ certification that is based on a written test of a potential employee’s business math skills, oral language skills,  oral language skills, and situational judgment      National Career readiness certificate­ based on ACT work keys system  and gives scores for “reading for information, locating information and  applied math  o Generation differences  o Part timers, contingent workers , self employed and multiple jobholders   Part time – 35 hrs or less Work vs. Job  Work­ work is effort directed toward accomplishing results  Job­ a job is a grouping of tasks, duties, and responsibilities constitutes the total work  assignment for an employee  Workflow analysis­ is the study of the way work moves through an organization job design/ job redesign  Job design­ refers to organizing tasks, duties, responsibilities, and other elements into  productive unit of work   Job redesign­ refers to taking an existing job and changing it to improve it  Managers play a significant role in job design because they often are the people who  establish jobs and their design components    Using contingent workers as job design­ contingent worker­ is someone who is not an  employee but a temporary or part time worker for a specific period of time and type of  work  o Person fit job­matching characteristics of people with characteristics of jobs  Managers can influence or control job characteristics but not the basic  characteristics of people Approaches to job design   Job enlargement­ involves broadening the scope of a job by expanding the number of  different tasks to be performed   Job enrichment­ is increasing the depth of a job by adding responsibility for planning, organizing, controlling, or evaluating the job   Job rotation­ process of shifting a person from job to job Characteristics of jobs to consider  Skill variety­ is the extent to which the work requires several activities for successful  completion   Task identity­ the extent to which a job includes a “whole” identifiable unit of work that  is carried out from start to finish and that results in a visible outcome  Task significance­ is the impact the job has on other people   Autonomy­is the extent of individual freedom and discretion in the work and its  scheduling ** Task based job analysis   Task­ distinct, identifiable work activity composed of motions  Duty­ work segment composed of several tasks that are performed by an individual   Responsibilities­ obligations to perform certain tasks and duties  JOB ANALYSIS  Systematic way of gathering and analyzing information about the content, context, and  human requirements of jobs  First stage­ planning the job analysis  Last stage­ maintain and updating job descriptions and job specifications­ periodically  reviewing all jobs is a subtask  Identifying jobs and methodologies is a subtask of preparing for and introducing the job  analysis  Conducting the job analysis­ gathering job analysis data is a subtask  Ex:  Jack, who works with BluClu LLC, is responsible for performing the job analysis in his  organization. He has introduced and communicated the job analysis process to all his managers.  Which of the following will typically be Jack’s next step? Conducting the job analysis   Jill, who works with SunFun LLC, is responsible for handling the job analysis in her  organization. She has developed job descriptions and job specifications. Which of the following  will typically be Jill’s next step?  Maintain and updating job descriptions and job specifications  Max, who works with HiFi LLC, is responsible for managing job analysis in his organization. He  is currently planning the job analysis. Which of the following should typically be Max’s next  step?  Preparing for and introducing job analysis    HR job vs managers job in job analysis  HR in job analysis coordinates the job analysis  Managers help complete job analysis information Job analysis methods   Work sampling­ method allows a job analyst to determine the content and pace of a  typical workday through statistical observation and recording of certain actions rather  than through continuous observation & timing of all actions   Position analysis questionnaire­ incorporates checklists  Managerial position description questionnaire – comprised of more than 200 statements  and examines a variety of dimensions, including decision making and supervising Legal aspects of job analysis  Americans with disabilities act requires that organizations identify the essential job  functions, which are the fundamental duties of a job  Managerial job functions­ duties that are part of a job but are incidental or ancillary to the purpose and nature of the job  Fair labor standards act­ overtime must be paid after 40 hours  Job descriptions and job specifications  Job description­ identifies the tasks, duties, and responsibilities of a job o First part­ identification  Job code and pay grade are components o General summary  Concise statement of the general responsibilities and components that  make the job different from others o Essential job functions and duties  Lists necessary roles and duties, usually in order of importance, and  contains clear, precise statements on the major tasks, duties, and  responsibilities performed o Job specifications  Prospective candidate’s educational details is noted here o Last part of job descriptiondisclaimers approval   Job specifications­ list the knowledge, skills, and abilities (KSAs) an individual needs to  perform a job satisfactorily Test 2 02/23/2016 ▯ Chapter 6 ▯ Recruiting  Process of generating a pool of qualified applicants for organizational jobs  Considerations o Cost of recruiting  quality of recruited candidates  Cost of unfulfilled jobs Recruiting requirements expected of employers  Know the industry and where to successfully recruit  Identify keys to success in the labor market o What do you need from the labor market? o What can you get from the labor market?  Cultivate relationships with sources of prospective employees  Promote the company brand  Use recruiting metrics to measure the effectiveness of recruiting efforts Training of recruiters and managers  Recruiting related activities  Communications skills  Diversity and sensitivity skills  Ethical recruiting behaviors  Follow up activities Labor market  External supply pool from which employers attract employees  75-90% of jobs are not posted  components of labor market o labor force participation- all individuals who are available for section if all possible recruitment strategies are used  includes all individuals available for selection, if all possible recruitment strategies are used o applicant population: subset of the labor force population that is available for selection using a particular recruiting approach  vary on type of recruiting method used  Priam Designs Inc. is recruiting fashion designers through LinkedIn. This recruiting mode typically provides direct access to the _____.  Stacy, the HR manager of a bank, restricts her recruiting efforts for the post of loan officer to placing advertisements on the Web site of the American Banking Association. This will allow Stacy to determine the _____ for the job of loan officer.  applicant pool- all persons who are actually evaluated for selection ▯ labor market components o applicant tracking system- makes the recruiting process more effective  individuals selected for a job- when the candidates reject the offer: o HR staff members must move back up the funnel to the applicant pool for other candidates o HR staff in extreme cases may need to open recruiting process ▯ Different labor markets and recruiting  Labor markets o Industry and occupational labor markets- these jobs represent the health care, retail and educational industries o Educational and technical labor markets-considering the educational and technical qualifications that define the people being recruited o Geographic labor market- markets can be local, area or regional, national or international o Global labor markets- firms expand by exporting work to overseas labor markets when doing so is advantageous ▯ 6-3 recruiting precense and image  continuous- efforts to recruit offer the advantage of keeping the employer in the recruiting market  intensive- may take the form of a vigorous recruiting campaign aimed at hiring a given number of employees, w in a short perood of time o Karl Graphics is conducting a vigorous recruiting campaign aimed at hiring 12 new employees within two weeks. This best exemplifies _____ recruiting.--> intensive  result of unforeseeable changes in ecternal factor, or failure of hr ▯ employment branding and image  emplment brand- of organization is the view both employees and outsiders have of it ▯ 6-3b organization based vs. outsorced recruiting  basic decision whether the recruiting will be done or outsourced to third party  RPO- recruitment process outsorcing – improve number and quality of candidates and reduce cost  Professional employer organizations and employee leasing o Leasing process: employer signs an agreement w the PEO after which the employer’s staff is hired by the leasing firm and leased back to the company for a fee o One advantage of leasing companies for employees is that: employers can save money on benefits o They are supplied by contract to employers with jobs. ▯ 6-3c regular vs. flexible staffing  flexible staffing involves workers who are not traditional employees- avoid benefits  low motivation  temporary workers- o situation when temporary workers will be appropriate: A tax preparation company that mostly handles individual clients and has few business clients.  Independent contractors- workers who perform specific services on a contract basis  must be truly independent as determined by regualtions used by the US internal revenue service and US department of labor o Angela is a self-employed graphic artist. She is usually hired by companies for special projects that lasts from a week to six months. Angela can be best described as a(n): 6-3D Recruiting and EEO: diversity considerations  Affirmative Action Plans include hiring goals for protected classes that the employer must try to meet with its recruiting efforts.  If an employer lists the designation EEO/M-F/AA/ADA in its employment advertisements, it indicates thatthe employer has a policy of complying with equal employment regulations.  , Paul finds that Times Clockworks has disparate impact in the proportion of Hispanic employees compared to the proportion of Hispanics in its labor market. Which of the following steps should Paul take to solve the problem most efficiently?  Begin advertising for job openings on the local Spanish radio station ▯ Strategic recruiting decisions figure ▯ 6-3e recruiting source choices : internal vs. external ▯ Internal vs external  Internal advantage- know culture, less cost, risk reduction**  External advantage- new hires are likely to have fewer internal political issues ▯ ▯ Individual performance factors:  1) individual ability to work  2) effort expended o degree to which they value rewards offered by an organization  3) organizational support o P= Ability x effort x support  Individual performance- including quantity and quality – enhanced to degree that all three components are present within an individual employee ▯ Motivation  Desire within a person causing that person to act  REACH A Goal  Is a goal directed drive, and is defined as the desire within a person causing that person to act  Approaches to understanding motivation  Need theory- Abraham Maslow, assumes only unsatisfied needs motivate o Person will strive to fill physiological needs first o Highest human need is self actualization o Motivation is a goal directed drive and it seldom occurs in void o t Lumina Corporation, benefits for employees include an employer- sponsored insurance coverage. The medical expenses of employees are covered entirely by the company in case of any accidents. In this case, which of the following needs in Maslow’s hierarchy is the management in Lumina Corporation trying to fulfill  Safety and security needs o once a person has fulfilled his or her safety needs, he would immediately proceed to fulfill his  belonging needs o self actualization, esteem motivators o belonging and love, safety and security, basic physiological needs  hygiene factors Two factor theory – Frederick Herzberg’s motivation/ hygiene theory assumes that one group of factors, motivators, accounts for motivation o hygiene factors- salary, interpersonal relations, company policy/ administration, working conditions o which is considered to be hygiene factor by the motivator/ hygiene theory- can cause dissatisfaction with work if not adequately addressed but do not motivate o motivator by motivator hygiene theory –advancement, recognition, salary o primarily try to fulfill – esteem needs  equity theory- people want to be treated fairly at work,  defined as the perceived fairness of what a person does compared with what the person receives  inputs- are what a person brings to the organization level, age, educational level, experience, productivity and other skills or efforts  outcome- pay benefits, recognition of achievement, prestige and any other rewards received  expectancy theory – lyman porter, and ee lawler suggest that motivation is also influenced by what people expect ▯ 5-2 INDIVIDUAL WORKERS AND ORGANIZATIONAL RELATIONSHIPS ▯ psychological contract- unwritten expectations employees and employers have about the nature of their work relation ship  tangible- pay benefits, wages , employee productivity  intangible- loyalty, fair treatment ▯ job satisfaction – is a positive emotional state resulting from evaluating one’s job experiences o an attitude survey is used by employers to address the issue of job satisfaction among employees o sometimes called morale o organization commitment- degree to which employees believe in and accept organizational goals and want to remain with the organization o employee engagement- the extent to which an employees thoughts and behaviors are focused on the employer’s success *  loyalty-faithful to institution or employer- reciprocal exchange ▯ employee absenteeism- any failure by an employee to report for work as scheduled or to stay at work when scheduled  average daily cost is 1.3 times the wages of the absent worker  direct cost of absenteeism  replacement for absent worker ▯ types of absenteeism  involuntary- certain number of sick days  absenteeism is avoidable or voluntary  ex- walmart and others have established an auto system in which their employees who will be absent call a special number ▯ controlling absenteeism  voluntary is best controlled if managers understand its causes, costs and believe absenteeism can be controlled  disciplinary approach- first time- warning, and subsequent absences result in written warnings, suspensions, and finally dismissal  positive reinforcement- actions such as giving employees cash, recognition, time off and other rewards for meeting attendance standards o He is giving cash to employees for meeting attendance standards.  Combination approach-rewards ideal behaviors and punishes undesired behaviors o Carrot and stick approach  No fault policy- the reasons for absences do not matter and the employees must manage their own attendance unless they abuse that freedom  Paid time off- vacation, holidays and sick leave are combined into pay time off  Reduce absenteeism particularly one day absences but often increase overall time away from work b/c vacation days Measuring absenteeism – employees absent 3-5% or high as 8% Major step in absenteeism- how the organization is going to record the absences  # of person days lost through job absence during period / (avg of employees ) x (# of work days) x 100  CLASS, a newly-opened real estate agency, has twenty employees on its payroll. In June 2012, Jane and Selin, each took three days of leave of absence from work. What was the absenteeism rate of the company in June 2012 1 day  Incidence rate: # of absences per 100 employees each day  Inactivity rate : percentage of time lost to absenteeism o Luminia Inc. has about five absences per 100 employees each day. Every day, it loses about 13% of its time due to absenteeism. The average percent of time lost per absent employee in the company is 34% every month. In this case, the inactivity rate of the company is _____.--> 13 %  Severity rate: avg time lost per absent employee during a specified period of time (month or year) ▯ EMPLOYEE TURNOVER  turnover- the process in which employees leave an organization and have to be replaced ▯ types of employee turnover  involuntary turnover- employees are terminated for poor performance, work rule violations or through layoffs o ex: Pauline was asked to leave the company due to poor performance on a project that incurred huge losses for her firm o ex: Mark was terminated by his company because of his poor client relations skills that resulted in a major client leaving the firm for a competitor.  voluntary turnover- employees leave by choice o ex: Gerald gets passed over for promotion twice despite being good at his job, and hence he decides to leave the organization. o Ex: A software firm plans to reduce the number of talented designers in its workforce who leave their jobs. In this case, the firm seeks to focus on _____ turnover among the designers. Basis of whether its good or bad for the organization : o functional turnover: lower performing or disrupting employees leave  Alice, an efficient waitress at a moderately-priced family restaurant, consistently gets the lowest tips from customers. She announces that she is quitting to take another job at a newly- opened casino. This best exemplifies a(n) _____ turnover.  o dysfunctional turnover: key individuals and high performers leave  employees quit for many reasons, only some of which can be controlled by the organization o uncontrollable – employees leave for reason outside the control of employer  moves out of geo area  decides to stay home to take care of children/relative  spouse transferred  student worker that graduates from college o controllable- leave for reason that can be controlled by employer  turnover and “churn” – hiring new workers while laying off others o ex: WesternBioLabs Inc. is in the process of laying off 10% of its shipping and receiving employees. At the same time, it is hiring new hourly staff for night shifts. Which of the following terms best describes this process? ▯ Measuring employee turnover  Us department of labor estimates cost of replacing an employee ranges from one half to five times that person’s annual salary  Separations means departures o # of employee separations during the year o ____________________________________ x 100 o total # of employees at midyear o ex:50 employees of Glow Corp. quit the company in 2012. 35 of them quit on their own, while the rest were asked to leave by the company due to poor performance on the job and high absenteeism. The total number of employees in the corporation was 270 in January, 2012. The mid-year employee count was 250, and the number became 220 at the end of the year. The turnover rate at Glow Corp. in 2012 was _____  20% o Lumina Corporation began operations in 2011 with 4900 employees. During the first half of that year, the company did not see any attrition. Profits were high, and the training and orientation programs were efficient. New hiring continued at a healthy pace and by mid-year, the employee strength of the company was 5000. However, in the second half of that year, 200 employees were laid off, and no new hiring took place. The turnover rate at Lumina Corporation in 2011 was _____.-->4 % ▯ HR METRICS: determining turnover cost  Separation cost: HR staff and supervisory time, pay rates to prevent separations, exit interview time o How does an exit interview help: By providing managers and supervisors with information for improving company efforts to reduce employee turnover.  Vacancy cost: temporary help, contracting usage , existing employee overtime o Jane quit Cover Corp. without completing a high-priority project that she was handling. Due to her unavailability, the four remaining members of her team had to work overtime and they demanded adequate compensation to justify their extra hours of work. In this case, the amount subsequently paid to them best exemplifies: o  Replacement cost: recruitment and advertising expense, search fees, employee referral fees  Training costs for new person: paid orientation time, cost of training materials,etc ▯ Losing low performers is a positive – optimal amount of useful turnover necessary to replace low performers and add part time contract workers with special capabilities to improve workforce performance ▯ Examples  Carlos, the HR director of a large paper manufacturing company, is studying the financial costs of turnover of plant personnel at all levels. The easily calculable costs are sobering, but Carlos is also concerned about the hidden costs of turnover that generally include: missed project deadlines ▯ The five main drivers of retention are: organizational and management factors, employee–supervisor relationships, job and work–life, rewards, and career training and development. ▯ Job drivers and retention  Employees leave b/c family or personal reasons there are limited number of actions managers can take to keep them  Divers- significant actions an employer fcan take to strengthen keeping employees Organizational and management factors o External events o Organizational politics o Quality of leadership Employee/supervisor relationships o Encouraged by HR through fair, non discriminatory practices, supervisory and management support of employees Job related and work life balance Rewards – o Verbal praise from one’s supervisor is an intangible reward for performance o The compensation for a job within 10-15% of the market rate is to be considered to be competitive pay o If compensation is not close to market turnover is likely to be higher Career training and development o Opportunities for personal growth ▯ 5-6 MANAGING RETENTION of top performers  top performers mentioned job satisfaction when reason for staying, followed by extrinsic rewards, work relationships, and commitment and commitment to the organization ▯ 5-7 managing retention ▯ retention rate: percentage of employees at the beginning of the period who remain at first step: measuring and assessment o absence/turnover measurement o employee surveys o exit interview  By providing managers and supervisors with information for improving company efforts to reduce employee turnover. o data analysis second step: management interventions o recruiting and selecting o orientation and training o compensation and benefits o career development and planning rdo employee relations 3 step evaluation and follow up o regular review of turnover data o tracking intervention results o adjustment of intervention results ▯ first year retention: it is important to focus more on getting employees in their first year to stay because those who stay for a year are more likely to extend their employment ▯ ▯ ▯ ▯ selection and placement  selection-is the process of choosing individuals with the correct qualifications to fill jobs in an organization o hire hard manage easy- invesment of time and effort in selecting right people for jobs will make managing easier o good training will not make up for bad selection  placement- fitting a person to the right job  more than anything, placement of human resources should be seen as a matching process  selection and placement activities typically focus on KSAs  person/ job fit- degree to which job candidates generally match the situations experienced both on the job and in the company  mismatch- lack of fit bew ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ ▯ structured interviews  more reliable and valid then other types of interviews  true of all structured interviews a set of standardized questions are asked of all applicants  biographical interview-focuses on a chronological assessment of candidate’s past experiences o Gerard, a job applicant, was asked to appear for an interview by an organization. Gerard spent the first 15 minutes of the job interview relating details about his education and work experience to the interviewer. This is a _____ interview.  behavioral interview- applicants give specific examples of how they have performed a certain task o Patrick, a job applicant, was asked by his interviewer, “In your previous job, how did you handle employees who were poor performers?” Based on this information, what type of interview did Patrick attend? o  competency interview- questions are designed to provide the interviewer results against which to measure the applicant’s response o competency profile- list of competencies necessary to do a particular job  situational interview- questions about how applicants might handle a specific job situation o The selection process for hiring the assistant to the mayor of a large city includes giving the finalists three hypothetical crisis scenarios. One deals with a terrorist threat at a sporting event, another deals with a plane crash at the airport, and the third deals with a major earthquake. Each candidate must describe her/his approach to handling the crisis, which will be recorded and evaluated by a panel. This is an example of a: o In her interview for a position as a bartender at a luxury hotel bar, Megan was asked “What would you do if one of the customers started slurring her words and began making off-color jokes that other customers in the bar could hear?” Such types of questions are typically asked in _____ interviews. o ▯ less structured interviews  unstructured interview- occurs when the interviewer improvises by asking questions that are not predetermined  semi structured interview- guided conversation in which broad questions are asked and new questions arise as a result of the discussion  stress interview- designed to create anxiety and put pressure on applicants to see how they respond o Gisela has just finished her interview with the managing editor of a large city newspaper. She is shaken and upset because the editor talked about her educational background in an insulting tone. He also pressured her to answer confusing questions without allowing her time to collect her thoughts. Given this scenario, Gisela most likely attended a _____ interview.  nondirective interview- uses questions developed from the answers to previous questions o Anthony was interviewing an applicant to be a volunteer docent (instructor and tour guide) for a large art museum. During the course of the interview, the applicant began to discuss her interest in introducing young children to great works of art. Anthony followed up with several questions about how young children react to art, why she felt early exposure to art was important, and how she would design situations for children to experience art. Anthony was conducting a _____ interview.  nondirective o ▯ interviewers  individuals  individuals sequentially  panel interview- several interviewers meet with the candidate at the same time  team interview- applicants are interviewed by the team members ▯ effective interviewing  plan the interviewcontrol the interview use effective questioning techniques  questions to avoid: yes/no questions, obvious questions, questions that rarely produce a true answer  leading questions  illegal/ inappropriate questions  questions that are not job related  listening responses to avoid o nodding, pausing, making casual remarks, echoing and mirroring ▯ problems in the interview  poor interviewing techniques o snap judgment- ex : GPAs  problem that occurs when interviewers make a decision on the job suitability of applicants within the first few minutes of the interview and spend the balance of the interviewer for evidence to support it o negative emphasis- everyone is bad, no one is good for this job, focuses on all the negative aspects o halo effect – allows a positive characteristic about a job applicant to overshadow other evidence o biases and stereotyping  similarity bias- occurs when interviewers factor or select people whom they believe to be like themselves on the basis of a variety of personal factors o cultural noise – don’t interpret information the right way because of a persons culture Test 3 03/22/2016 ▯ Talent management  Strategic talent management: Identifying the most important jobs in a company that provide a long term competitive advantage  Create HR policies to developing employees so that they can effectively work in these jobs ▯ Talent management in perspective  Choices for dealing with talent needs are to: o Develop talent internally o Buy talent as needed Known as MAKE of BUY decision* o Or Use combination of first two choices ▯ Figure 9.1 Talent management process ▯ ▯ ▯ Scope of talent management  Target jobs- identify the right jobs that will be the focus of talent management efforts  High potential individuals (High Pos): show high promise for advancement in the organization o Recognize their talents o Include them o Help them gain organizational visibility o Provide good mentors  Talent pools- avoid creation of a narrow specialized job, but create a pool of talented people  Career tracks- series of steps that an individual follows to become read to scale up  Assessment- predict a person’s potential for a job ▯ Succession planning  Preparing for the inevitable movements of personnel that creates holes in the hierarchy  “bench strength and leadership pipelines are metaphors for ways to prevent the void by having replacements ready  succession planning should include a well designed development system for employees  can be the process of farming a plan for the orderly replacement of key employees  ex: Xerox when a methodical plan was put into place to replace CEO using on the job development experience that systematically prepared her for the job ▯ succession planning process  first step – define the positions that are critical to the organizations strategy  then making certain top management is involved personally w/ talent identification, mentoring and coaching  next is to assess the talent available in the organization, who has potentional, who is ready for promotion, and who needs additional development  finally evaluating the success of the process  should result in 2 products :1) identification of potential emergency replacements for critical positions o 2) other successors who will be ready with addit


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