Business in

Action 7e
Bovée/Thill
Human Resources
Management

Chapter 11 Business in
Action 7e
Bovée/Thill
 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
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 Learning Objectives

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

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 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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Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 11-6
Exhibit Steps in Human
11.1 Resources Planning

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Table 8.1 Job Description and
Specification
 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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Exhibit Steps in Human
11.1 Resources Planning

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Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 11-11
Forecasting Supply and Demand

• Turnover Rate • Employee

 The percentage of Retention
the workforce that  Efforts to keep
leaves every year 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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 Managing the Employment Life
Cycle
• Recruiting
 The process of attracting appropriate
applicants for an organization’s jobs

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Exhibit The Recruiting Process
11.4

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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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 Training and Developing
Employees
• On-the-job training
 job training takes place at the job site or
workstation and is directly related to
the job
• Off-the-job training
 employees learn the job away from the job

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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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Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 11-27
 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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 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 • Gain Sharing

 The distribution of a  Tying rewards to
portion of the profits or cost
company’s profits to savings achieved
employees 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
 Compensation other than wages, salaries,
and incentive programs

• Cafeteria Plans
 Flexible benefit programs that let employees
personalize their benefits packages

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 Retirement Benefits

• Retirement Plans • 401(k) Plan

 Company-  A defined-
sponsored contribution
programs for retirement plan in
providing retirees which employers
with income often match the
amount employees
invest

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 Retirement Benefits (cont.)

• Employee Stock-Ownership Plan

(ESOP)
 A program that enables employees to
become partial owners of a company

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 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

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 Other Employee Benefits

Paid vacations and sick leave

Family and medical leave

Child-care assistance

Elder-care assistance

Tuition loans and reimbursements

Employee assistance programs

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