Chapter 10: Managing Human Resources

Question 1

Human Resource Management (HRM)

Answer 1

All the activities involved in determining an organization’s human resources needs, as well as a acquiring, training, and compensating people to fill those needs

Question 2

Job analysis, job description, job specification

Answer 2

JOB ANALYSIS: determines through observation and study pertinent information about a job
JOB DESCRIPTION: a formal, written explanation of a specific job that usually includes job title, tasks to be performed, relationship with other jobs etc.
JOB SPECIFICATION : qualifications necessary for a specific job, in terms of education, experience, personal characteristics, etc.

Question 3

Recruiting Sources

Answer 3

Internal - limits costs
External - new perspectives

Question 4

Selection in Hiring

Answer 4

Selection: the process of collecting information about applicants and using that information to decide which ones to hire. It includes the application itself, as well as interviewing, testing & reference checking.
APPLICATION: potential employees are asked about reason for seeking new job, years of experience, availability & level of interest in the position

Question 5

Orientation vs. Onboarding

Answer 5

ORIENTATION: Familiarizing newly hired employees with fellow workers, company procedures; and the physical properties of the company
ONBOARDING: processes that introduces employees to company policies and clarifies roles, includes training; inducting employees into the organizational culture, and assisting employees in forming social connections, including finding mentors

Question 6

Training & Development

Answer 6

TRAINING-teaching employees to do specific job tasks through either classroom development or on-the-job experience
DEVELOPMENT- training that augments the skills and knowledge of managers and professionals

Question 7

Assessment Approaches

Answer 7

-Objective Observables
-Subjective Ranking System
-360 Feedback System (panel of superiors, peers & subordinates)

Question 8

Turnover

Answer 8

Caused by employees being fired, quitting, promoting or being transferred

Question 9

Job Promotion, Transfer & Separations

Answer 9

Job Promotion: an advancement to a higher-level position with increased authority, responsibility, and pay
Transfer: a move to another job within the company at essentially the same level and wage
Separation: When employees resign, retire, are terminated or laid off

Question 10

Financial Compensation (5)

Answer 10

WAGES: financial rewards based on the number of hours the employee works or the level of output achieved
COMMISSION: Pays a fixed amount or a percentage of the employee’s sales
SALARY: a financial reward calculated on a weekly, monthly; or annual basis
BONUSES: for exceptional performance
PROFIT SHARING: Distributes a % of company profits to the employees who worked to make it possible (e.g. employee stock ownership plans (ESOP)

Question 11

Wage/Salary Survey

Answer 11

Tells company how much compensation comparable firms are paying for specific jobs that the firms have in common.

Question 12

Benefits

Answer 12

Soft benefits: perks that help balance life and work
Fringe benefits: e.g. sick leave, vacation pay, pension plans etc.

Question 13

Cost-of-living allowance (COLA)
Givebacks

Answer 13

COLA: automatic wage increase during periods of inflation
Givebacks: wage and benefit concessions made to employers to allow the company to remain competitive or survive

Question 14

Outside Resolution of Labour-Employer Disputes

Answer 14

CONCILIATION: A neutral third party with no formal power that keeps parties talking
MEDIATION: A neutral third party with no formal power that proposes solutions
ARBITRATION: a neutral third party with legal power to institute it’s solutions