C202 - Managing Human Capital Final Exam

HRM

the organizational function responsible for attracting, hiring, developing, rewarding, and retaining talent

6 HRM functional areas

staffing, health/safety, performance management, employee

management relations, rewards/benefits, training/development

HRM systems influence performance

improves efficiency, contributes to revenue growth,

increase employee understanding, develop enhance employee capabilities (helps employees

focus on things

HRM Systems influence performance of an organization

-by improving organizational efficiency

-contributing to revenue growth

-enhancing employee capabilities and talents(goal attainment)

-increase employee engagement

-ability to manage change

HRMs role in executing an organization's business strategy

HRM policies and strategies must match with competitive environment and immediate business conditions

Business Strategy

defines how the firm will compete in the market

Talent Philosophy

system of beliefs about how its employees should be treated

-diversity

-ethics

-time of careers

-viewment of employees

Employee Handbook

document of the organization's HRM policies and procedures that help employees learn the company's HRM (helps employees easily research topics)

HRM is performed by

professionals, managers, individual employees, service centers, outside vendors, employer organizations

HRM Systems

technology based platforms that help human resource management

professionals securely house sensitive employee records

3 specific ways HR can support organizations should it choose to shift its culture-

Sourcing

is the process of identifying qualified individuals and labor markets from which

to recruit

Recruiting

refers to activities that affect either the numbers or the type of people willing

to apply

The Relationship between sourcing and recruiting

sourcing uses analytical skills to

generate recruiting leads. Sourcing and recruiting influences what employees can do.

Internal recruiting

are fast and inexpensive internal job recruiting- employers can

directly apply being overlooked is reduced

External recruiting

has job fairs, job boards, offshoring to rehire candidates

Realistic Job Preview

-presents an honest and accurate picture

-minimizes losses

-Sharing only appropriate info

-maintaining confidentiality

-providing timely info

-Talent from competitors

-misleading recruits about the nature of the job

Direct compensation

the pay an employee receives in the form of wages, salary, bonuses, commissions

Indirect compensation

benefits consist of all the tangible and financially valued rewards that are not included in direct compensation, including free meals, vacation time, health

insurance

Base Pay

reflects the size and scope of employees responsibilities

Non Financial Compensation

employees rewards and incentives that are not financial

in nature

Fixed Pay

pay employees a set amount regardless of performance

Variable Pay

base some or all of an employee's compensation on employees, teams,

or organization

Variable Pay 2

2. will pay based on what is done or how it is performed (reinforces the competitive advantage)

Drawbacks of Variable Pay

performances must meet needs and or exceed standard

Fair Labor Standards Act FMLA

passed in 1938 to stimulate economic recovery from the Great Depression

Federal Law sets standards for minimum wage, overtime pay, equal pay

Equal Pay Act

prohibits against gender based way discrimination

Workers Comp is administered on a state-by-state basis and overseen by a state governing board

Pay-For-Performance

(also called merit pay)- reward employees based on some

specific measures of their individual performance

4 Reasons Organizations give trying to performance

-recognize and reward high performers

-increase the likelihood of achieving corporate goods

-improve productivity

-move away from an entitlement culture

Pay For Performance is a powerful motivator

it determines the degree to which people will be able to satisfy many of their needs and wants.

Intrinsic motivation

comes from interest in or enjoyment from doing a task

Extrinsic motivation- comes from outside the individual including performance bonuses

- I am usually never intrinsic motivated with a job because I have yet to enjoy a job fully

- I am usually always extrinsically motivated because I am always trying to work towards something

Different types of incentives target different

employee behaviors and outcomes

Employees are indirectly compensated through benefits meaning

Benefits to attract employees

so the better benefits the better worth in being an employee

Purpose of benefits

to attract and retain talent and enable employees to perform better, promote health, provide financial protection, improve employees work life and balance

2 Conditions to provide better benefits than competitors

economic and productivity reasons

Focus is on attraction & recruitment

housing, relocation, transportation allowances, health, dental, life insurance, flextime, telecommuting

Decreasing Employees Stress

Benefits such as flextime, fitness center, financial and retirement

planning, onsite daycare, elders, personal days

Types of Benefits

mandatory, customary, optional

Mandatory Benefits

Benefits that each employer is required to provide: family medical leave act (FMLA), cobra health coverage, unemployment compensation, workers' compensation, and Social Security.

Customary Benefits

life insurance, disability insurance, health insurance, retirement plan,

vacations/sick leave

Optional Benefits

work life benefits, free food, workout facility, domestic partner benefits, flexible spending account, non-financial benefits, creative benefits,

Social Security provides

Retirement benefits

Unemployment Insurance (UI)

Temporary income during periods of involuntary unemployments

Workers Compensation

A form of insurance paid by the employer providing cash benefits to workers injured or disabled in the course of employment

Pays medical cost job related illness or accident

FMLA (Family and Medical Leave Act)

Federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee's own serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty

Creative Benefits

some organizations offer benefits that are not common such as free food, bringing pets to work, oil change, dry cleaning service...etc.

other options more unique for employees to offer

Managing Benefits

how to survey and focus on employee needs and commitment depending

on employee talent and competition

Flexible Plans

gaining popularity due to increase health care and daycare prices

Employees are the driving force of a safety culture

meaning they are a great importance to the companies, so their safety is important

3 Most powerful factors that influence employee safety culture

providing safe work conditions,

adequately training all staff, conducting regular safety checks

Safety Culture

shared attitudes, beliefs and practices that shape employees safety behavior

OSHA

provides training, information in safety and health

3 Ways a company can benefit from investment

saving money, reduce rising health care cost,

promote healthier employee behavior

Wellness program and workers comp claims

wellness programs is a program that benefits the employers

workers comp is paid to the employers

Employees Wellness Programs

To help an employee to live a healthy lifestyle to avoid getting sick and costing the company money... such as: check ups, gym memberships, training, seminars, and other programs

inspire long term lifestyle changes so that the healthy

behaviors improve

Functional stress

manageable levels of stress that generate positive emotions including satisfaction, excitement and enjoyment

good stress (job satisfaction)

Dysfunctional stress

Decreases performance and may result in burnout; a constant lack of interest and motivation to perform one's job

bad stress (job dissatisfaction)

Words to describe bullying

teasing, gossiping, etc

Workplace Bullying

repeated incidents or a pattern of behavior that is intended to intimidate, offend, degrade, or humiliate a particular person or group of people

Workplace violence

act or threat of physical violence, harassment, intimidation, disruptive

behavior

EAP

employee and assistance plan- aids in voluntary programs assisting employees

Why do workers join unions?

Having a collective "voice at work".

Reducing employment uncertainty .

Increasing fairness.

Negotiating better wages, benefits and working

conditions.

Protecting employees against unfair dismissals.

to advance workers' respect of wages, benefits, and working conditions. (labor unions)

Collective Bargaining

occurs when the employer and the union negotiate in good faith on employment terms and conditions to generate a written contract.

National Labor Relations Act of 1935

ALSO called the Wagner act, encourages a healthy relationship between private-sector and their employees.

Was created to resolve tension or strikes and unfair labor practices. Suspend work stoppages.

Railway Labor Act of 1926

federal law guaranteeing collective bargaining for railroad employees

Employee relations for airlines and railroads and is enforced by the National Mediation Board.

Railroad unions aren't allowed to strike over minor disputes.

National Labor Relations Act of 1947/ Taft-Hartley Act

Clarifies what is considered unfair labor practices by union and employees.

Extended Wagner Act.

Classified what is unfair labor practices.

Union models (shops)

closed shop

agency shop

open shop

was prohibited by the Taft-Hartley Act in which all workers in a unionized workplace are forced to join the union and pay dues.

Landrum-Griffin Act Labor Management Reporting and disclosure Act of 1959

outlined a bill of rights for union members and established procedures for union elections, discipline, and financial reporting.

Members have a voice.

Unions must file a report.

Strike

occur when union members refuse to work, halting production or services.

A strategic time to do a strike

when a company is thriving and the company has not built up a

large inventory of products it can distribute during the strike.

Boycott

involves union members refusing to use or buy the firm's products to exert economic

pressure

Secondary Boycott

customers or suppliers that are also encouraged to boycott

Lockout

management keeps employees away from the workplace and uses management staff or replacements to run the business.

A strategic time to do a lockout

when the union treasury is low or when business has sufficient

inventories of finished products to supply customers for a while.

A company whose employees are represented by a union essentially outsource their HRM

you outsource your human resources.

Will have HR working on more problems than solutions

Seniority

the length of time an employee has worked for a company

Psychological Contract

Refers to the unwritten set of expectations of the employment relationship as distinct from the formal, codified employment contract.

Labor Union views on Performance appraisal

Unions to not favor the performance appraisal because it usually comes from a supervisor that can be biased

Psychological Contracts

beliefs based upon promises between an employer and individual

Unionized Relationship

has low turnovers, more valuable work benefits

Attitude, behaviors, and characteristics of engaged employees

employees are committed to,

involved with, and enthusiastic about their work (employee engagement)

3 types of organizational commitment

1. Affective Commitment

2. Continuance Commitment

3. Normative Commitment

6 Types of Turnover

1. Voluntary

2. Involuntary

3. Functional

4. Dysfunctional

5. Avoidable

6. Unavoidable

Turnover benefits and cost

benefits (creating promotion or transfer opportunities for other

employees, savings from not replacing the departing employee, better performance or customer service, acquiring new skills and competencies, acquiring a better team player and corporate citizen

Employee Engagement driving force

establishing workplace culture, with positive values such as teamwork, open and honest communication, as well as trust

Functional and Dysfunctional

Functional is low performing, Dysfunctional is a high performance