Textbook Notes (369,097)
Canada (162,378)
RSM100Y1 (431)
Chapter 8

RSM100Y1 Chapter 8 Notes

14 Pages
76 Views

Department
Rotman Commerce
Course Code
RSM100Y1
Professor
Michael Khan

This preview shows pages 1,2,3. Sign up to view the full 14 pages of the document.
Description
RSM100Y1 Textbook Notes Chapter 8  Human resource management: the function of attracting, developing, and retaining employees who can perform the activities needed to meet organizational objectives.  The core responsibilities of human resource management are: o Planning for staffing needs o Employee recruitment and selection o Employee training and performance evaluation o Employee compensation and benefits o Employee separation  By accomplishing these tasks, human resource managers achieve the following objectives: o Providing qualified, well-trained employees for the organization o Maximizing employee effectiveness in the organization o Satisfying individual employee needs through monetary compensation, benefits, opportunities to advance, and job satisfaction  HR plans must be based on an organization’s overall competitive strategies.  HR managers work with other managers to determine how many workers will be needed and what skills they will need and what skills they will learn on the job.  HR managers are often asked for their input on decisions to lay off workers to reduce costs or hire new workers increasing costs.  Methods of recruiting workers include: o College/university job fairs o Personal referrals o Want ads o Internet  Includes:  Listings on firm’s own website  Listings on social networking sites (i.e. FaceBook)  Listings on job sites (i.e. Monster.com)  Provincial and federal employment laws state that employers cannot discriminate against job applicants, or treat them unfairly, because of their race, religion, colour, sex, national origin etc. o Failure to follow the terms of equal employment opportunity laws can result in costly legal fees, expensive fines, bad publicity, and poor employee morale. o These laws even provide a basis for how the interviewing process must be carried out.  An interviewer may not ask job applicants about their marital status, children, race or nationality, age, criminal records, mental illness, medical history, or alcohol and substance abuse.  Drug testing for job applicants is one method employers use to screen out high-risk employees.  Another issue is whether employees can be required to speak a particular language in the workplace.  Employers may legally establish requirements for specific jobs – true occupational qualifications (i.e. only women applicants for a job under a designer of women’s clothing)  Costs associated with reqcruiting and selecting employees include: o Advertising o Interviewing o Employment testing o Medical exams  Once the employee has been hired, there are costs for training and for equipment.  One estimate suggests that the total cost of a hiring mistake amounts to 24x the applicants annual pay (important for HR managers to make the best decisions).  Employment tests are used to prove the applicant has certain skills, such as mechanical, technical, language, and computer skills. o Cognitive ability tests accurately predict job performance on many types of jobs.  Newly hired employees learn what is expected of them and how well they are performing through: o Orientation  Employees learn about company policies regarding their rights and benefits.  They might receive an employee manual that includes the company’s code of conduct/ethics. o Training  Provides workers with an opportunity to build their skills and knowledge.  Helps employers to keep long-term, loyal, high-performing workers.  On-the-job training: prepares employees for job duties by having them perform tasks under the guidance of experienced employees.  Apprenticeship: an employee who is an apprentice learns a job by working as an assistant to a trained worker (usually in blue-collar trades – such as plumbing/heating services).  Classroom training: lectures, conferences, workshops, or seminars that provide information.  Computer-based training (low-cost): offer consistent presentations (includes videos that stimulate the work environment); employees can learn at their own pace.  Online training (interactive learning): employees may work with a mentor/instructor who is located elsewhere; might include simulations where decisions have to be made regarding their work.  Management development program: training designed to improve the skills and broaden the knowledge of current or future managers and executives.  I.e. the Conference Board of Canada provides management training in leadership, team development, and strategic implementation. o Evaluation  Performance appraisal: evaluation of and feedback on employee’s job performance (can include attendance).  Used to make decisions about:  Compensation  Promotion  Additional training needs  Transfers  Termination  An effective performance review should meet the following criteria (guidelines):  Take place several times a year  Be linked to organizational goals  Be based on objective measures  Take place in the form of a two-way conversation  Forms of appraisal used:  Peer reviews o Co-workers assess the employees job performance  Upward appraisal o Employees are asked to evaluate their supervisors.  360° performance review o Feedback is gathered from a review panel of 8- 12 people (includes co-workers, supervisors, team members, subordinates, sometimes customers) o The major benefit is the multiple points of view of the panel members. o A potential disadvantage is its anonymous nature (employees with personal likes/dislikes might try to influence the outcome). o Employees benefit by:  Being more involved with the process  Understand more about their own strengths/weaknesses  Understand more about their own role in the organization o Managers benefit by:  Getting more in-depth feedback from all parts of the organization  Compensation: the amount employees are paid in money and benefits.  Compensation is divided into: o 70% wages/salaries o 30% benefits  The amount employees are paid, including any benefits they receive, has a huge effect on: o Where people live o What they eat o How they spend their leisure time o Job satisfaction  Balancing compensation for employees at all job levels can be a challenge for HR managers.  Wage: pay based on an hourly rate or the amount of work accomplished. o I.e. factory workers, construction workers, auto mechanics, retail salespeople, restaurant wait staff o Wage earners are eligible for overtime pay.  Salary: pay calculated on a periodic basis, such as weekly or monthly (hours worked does not matter). o I.e. office personnel, executives, and professional employees o Salary earners are not eligible for overtime pay.  An effective compensation system should: o Attract well-qualified workers o Keep them satisfied in their jobs o Inspire them to succeed  Most firms base their compensation policies on: o What competing companies are paying o Government regulation o The cost of living o Company profits o An employee’s productivity  Programs that try to motivate employees to excel by offering some incentive compensation in addition to salaries/wages include: o Profit sharing: awards that are bonuses based on company profits. o Gain sharing: companies share the financial value of productivity gains, cost savings, or quality improvements with their workers. o Lump-sum bonuses and stock options: such as one-time payments and the right to purchase stock in the company based on performance. o Pay for knowledge: distributes wage or salary increases as employees learn new job tasks.  Employee benefits: additional compensation – such as vacation time, retirement savings plans, profit-sharing, health insurance, gym memberships, child and elder care, and tuition reimbursement – aid entirely or in part by the company.  Some benefits are required by law (i.e. firms may be required to make pension contributions).  Incentives for employees to live healthier lives (to lower costs associated with health because they continually increase) can include: o Gym memberships o Nutrition programs o Wellness visits to the doctor o Smoking-cessation classes  Flexible benefit plans (cafeteria plans): offer a choice of benefits, including different types of medical insurance, dental and vision plans, and life and disability plans. o Typically, employees each receive a set allowance (called flex dollars/credits) to pay for benefits that suit their needs. o Contributions to cafeteria accounts can be made by both the employee and employer. o Offer tax benefits to both employees and employers. o Used to address the increasing diversity in the workforce.  Paid time off (PTO): instead of having a set number of holidays, vacation days, and sick days (days are in a bank). o A major advantage is that employees can use days from their PTO accounts without having to explain why they need the time (freedom). o A major disadvantage is that it is an expensive benefit for employers.  Flexible work plans: plans that allow employees to adjust their working hours or their places of work according to their needs. o Options include:  Flextime  Allows employees to set their own work hours within certain limits (i.e. all workers need to be present between 10 – 3 but they can choose to start early or end late).  Effective in jobs that are independent.  In Europe, 56% of all companies offer some kind of flextime arrangement.  Web-based software makes it easy for larger organizations to make scheduling easier (i.e. employees can log in and request certain shifts or schedule changes).  Compressed workweeks  Allow employees to work longer hours on fewer days (i.e. 4 10-hour days rather than 5 8-hour days).  Advantages: o Reduces the number of hours employees spend commuting each week o Stretches out the company’s overall workday, providing more availability to customers in other time zones.  Used frequently in hospitals, airlines, and police and fire departments.  Job sharing  Allows two or more employees to divide up the tasks of one job.  Appealing to those who prefer to work part-time rather than full-time.  Requires a lot of cooperation and communication between the partners, but a company benefits from the talents of both people.  Home-based work (telecommuting)  Allows employees to work from the comfort of their own home while they are connected to their employers through the Internet, voice and video conferencing, and mobile devices.  Appeals to: o Employees who want freedom o Persons with disabilities o Older workers o Parents  Company benefits because they can expand their pool of talent and increase productivity without increasing costs.  Telecommuters need to be self-disciplined and reliable employees. o Their managers need to be comfortable with setting goals and managing from afar.  NA = 34 million telecommuters (projected 63 million by 2016). o Reduces employee turnover and absenteeism and boosts productivity and job satisfaction. o +70% generation Y professional are concerned with balancing career and personal life.  Most reject the idea of sitting in an office cubicle for 8-10 hours a day.  Employee separation: a broad term for the loss of an employee for any reason, voluntary or involuntary. o Turnover occurs when an employee leaves his or her job.  Voluntary turnover occurs when the employee decides to resign for his or her own reasons (i.e. take another job, start a new business, pay issues, job security worries etc.).  Exit interviews are sometimes used by HR managers to find out why employees are resigning in an attempt to address the issue and keep the employee.  Involuntary turnover occurs when employees are terminated because of poor job performance or unethical behaviour n their business practices or in the workplace.  Also includes when firms are forced to eliminate jobs as a cost-cutting measure (i.e. downsizing/outsourcing).  HR managers need to remain calm and professional when dealing with emotional employees who have been terminated. o They must also be educated in employment laws so the termination if handled properly (some employees file formal complaints saying they have been wrongfully dismissed).  Downsizing: the process of reducing the number of employees within a firm by eliminating jobs.  Can be done by offering early retirement or voluntary severance programs.  After downsizing, some firms report improvements in profits, market share, employee productivity, quality, and customer service.  Negative effects associated with downsizing: o Anxiety, health problems, and lost productivity among the remaining workers o Expensive severance packages paid to laid-off workers o A domino effect on the local economy – unemployed workers have less money to spend, which creates less demand for consumer goods and services, which increases the likelihood of more layoffs and other failing businesses.  If a firm is committed to its workforce as a part of its mission, it will do everything it can to support both the workers who must leave and the workers
More Less
Unlock Document

Only pages 1,2,3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit