Study Notes for Human Resource Management - Chapters 6-12
Chapter 12: Human Resource Management
Overview of Chapter 12: Focused on retention and the importance of maintaining happy and productive employees.
Key Concepts:
Employee Retention: Essential for keeping valuable employees engaged and motivated.
Factors Beyond Compensation:
Respect and Recognition: Important in retaining talent.
Training and Development: Such as coaching, advising, and mentoring contribute to employee satisfaction.
Job Enrichment, Enlargement, and Rotation
Job Rotation: Allows employees to experience different roles within the organization.
Example: A management rotation program at Virginia Tech with Capital One where an employee may engage in various roles (e.g., accounting, purchasing, engineering).
Duration: E.g., Two-year commitment with divisions of time across job functions.
Job Enlargement: Involves adding new responsibilities to keep employees engaged.
Example: An employee at Lowe's who initially was a cashier but also performed tasks like stock management or pricing changes to maintain engagement.
Job Enrichment: Increases employee responsibilities to demonstrate trust and capability, can include supervisory responsibilities.
Examples of additional tasks include: supervising work, handling cash deposits, or other responsibilities that indicate trust in the employee.
Compensation Plans
Wages vs. Salaries:
Wages: Hourly compensation common in blue-collar roles; example rates: $13.15 or $30/hour.
Salaries: A fixed annual amount regardless of hours, e.g., $70,000, $90,000 annually for positions that could involve varying hours per week.
Piecework and Commissions:
Piecework: Employees paid based on output exceeding defined goals; Example: Manufacturing graduation gowns where exceeding the daily target triggers additional payments.
Commissions: Payments as a percentage based on sales; Example: 2% to 25% of sales at stores like Verizon or AT&T.
Bonus Plans: Income awarded based on individual or corporate performance metrics.
Example: Achieving specific targets leading to bonuses of $5,000 or $10,000 based on performance outcomes.
Profit Sharing: Optional benefits where employees receive a portion of company profits.
Example: A previous employer provided profit sharing to all employees including entry-level workers.
Stock Options
Understanding Stock Options:
Stock Options Calculation: Employees can gain profits if the stock price exceeds the original issuance price at the point of exercising the options.
Example: Received stock options priced at $40, if the market price later is valued at $50, the profit per share is $10.
If the market price drops below the issuance price, the options become worthless.
Self-Explanatory Work Arrangements:
Can combine various options for work flexibility (e.g., telecommuting).
Employee Turnover
Voluntary Turnover: Employees leave on their own initiative.
Involuntary Turnover: Employees are terminated or laid off by the employer.
Termination: Refers specifically to being fired, and entails three exit strategies within the organization.
Importance of Interpersonal Skills
Hiring for Attitude: Emphasis on interpersonal skills as critical to workplace success. Companies typically prioritize these qualities over hard skills because they are more challenging to teach.
Professional Growth: Students are encouraged to develop their interpersonal abilities alongside technical skills as they have a significant impact on employability.
Exam Details for Chapters 6-12
Preparation for Exam: Students advised to study highlights from Chapters 6-12.
Exam Format and Content:
Expected duration: 50 minutes.
Number of questions: 40-45 (including multiple choice and fill-in-the-blank).
Cumulative nature of the exam covering chapters 1-12, with a focus on chapters 6-12 constituting approximately 65% of the content.
Key Terms and Concepts from Chapters 6-12
Flex Time vs. Compressed Work Weeks
Flex time allows employees to work flexible hours, while compressed work weeks involve longer shifts to reduce the number of days worked.
Partnership Types: Understanding differences between general and limited partnerships; essential for distinguishing liability responsibilities.
Corporate Structure: Overview of corporations, including shareholder equity, agency problems, and potential for merge or acquisition efficiencies.
Mergers and Acquisitions: Mergers involve equal partnerships forming a new entity; acquisitions mean one company purchases another for consolidation.
SWOT Analysis: Used for strategic planning, distinguishing between internal (Strengths, Weaknesses) and external (Opportunities, Threats) assessments. Understanding the role of SWOT in establishing a competitive advantage.
Operational Management: Focus on production planning, controls, and quality assurance, emphasizing the importance of aligning production goals with actual performance results.
Definitions of terms like just-in-time inventory control and material requirements planning (MRP).
Questions Reflecting Exam Preparation and Content Understanding
Importance of dissecting questions critically for effective answers.
Emphasis on distinguishing between different business structures and the implications of each.
Relevance of understanding management styles and their impact on organizational success.
Management functions of planning, organizing, leading, and controlling:
Planning: Establishing goals and determining how to achieve them.
Organizing: Arranging resources to carry out plans.
Leading: Motivating and directing people to achieve organizational goals.
Controlling: Monitoring performance and implementing necessary changes to achieve goals.
Reflective Practice: Encouraged to apply concepts discussed in class to real-world scenarios, enhancing critical thinking and situational understanding as linked to course material.
Chapter 12: Human Resource Management
Overview of Chapter 12: Focused on retention and the importance of maintaining happy and productive employees.
Key Concepts:
Employee Retention: Essential for keeping valuable employees engaged and motivated.
Factors Beyond Compensation:
Respect and Recognition: Important in retaining talent.
Training and Development: Such as coaching, advising, and mentoring contribute to employee satisfaction.
Job Enrichment, Enlargement, and Rotation
Job Rotation: Allows employees to experience different roles within the organization.
Example: A management rotation program at Virginia Tech with Capital One where an employee may engage in various roles (e.g., accounting, purchasing, engineering).
Duration: E.g., Two-year commitment with divisions of time across job functions.
Job Enlargement: Involves adding new responsibilities to keep employees engaged.
Example: An employee at Lowe's who initially was a cashier but also performed tasks like stock management or pricing changes to maintain engagement.
Job Enrichment: Increases employee responsibilities to demonstrate trust and capability, can include supervisory responsibilities.
Examples of additional tasks include: supervising work, handling cash deposits, or other responsibilities that indicate trust in the employee.
Compensation Plans
Wages vs. Salaries:
Wages: Hourly compensation common in blue-collar roles; example rates: 13.15 or 30/hour.
Salaries: A fixed annual amount regardless of hours, e.g., 70,000, 90,000 annually for positions that could involve varying hours per week.
Piecework and Commissions:
Piecework: Employees paid based on output exceeding defined goals; Example: Manufacturing graduation gowns where exceeding the daily target triggers additional payments.
Commissions: Payments as a percentage based on sales; Example: 2% to 25% of sales at stores like Verizon or AT&T.
Bonus Plans: Income awarded based on individual or corporate performance metrics.
Example: Achieving specific targets leading to bonuses of 5,000 or 10,000 based on performance outcomes.
Profit Sharing: Optional benefits where employees receive a portion of company profits.
Example: A previous employer provided profit sharing to all employees including entry-level workers.
Stock Options
Understanding Stock Options:
Stock Options Calculation: Employees can gain profits if the stock price exceeds the original issuance price at the point of exercising the options.
Example: Received stock options priced at 40, if the market price later is valued at 50, the profit per share is 10.
If the market price drops below the issuance price, the options become worthless.
Self-Explanatory Work Arrangements:
Can combine various options for work flexibility (e.g., telecommuting).
Employee Turnover
Voluntary Turnover: Employees leave on their own initiative.
Involuntary Turnover: Employees are terminated or laid off by the employer.
Termination: Refers specifically to being fired, and entails three exit strategies within the organization.
Importance of Interpersonal Skills
Hiring for Attitude: Emphasis on interpersonal skills as critical to workplace success. Companies typically prioritize these qualities over hard skills because they are more challenging to teach.
Professional Growth: Students are encouraged to develop their interpersonal abilities alongside technical skills as they have a significant impact on employability.
Exam Details for Chapters 6-12
Preparation for Exam: Students advised to study highlights from Chapters 6-12.
Exam Format and Content:
Expected duration: 50 minutes.
Number of questions: 40-45 (including multiple choice and fill-in-the-blank).
Cumulative nature of the exam covering chapters 1-12, with a focus on chapters 6-12 constituting approximately 65% of the content.
Key Terms and Concepts from Chapters 6-12
Flex Time vs. Compressed Work Weeks
Q: What is the difference between Flex Time and Compressed Work Weeks?
A: Flex time allows employees to work flexible hours, while compressed work weeks involve longer shifts to reduce the number of days worked.
Partnership Types
Q: What is important to understand about Partnership Types?
A: Understanding the differences between general and limited partnerships; essential for distinguishing liability responsibilities.
Corporate Structure
Q: What does an overview of Corporate Structure include?
A: Shareholder equity, agency problems, and potential for merge or acquisition efficiencies.
Mergers and Acquisitions
Q: How do Mergers and Acquisitions differ?
A: Mergers involve equal partnerships forming a new entity; acquisitions mean one company purchases another for consolidation.
SWOT Analysis
Q: What is SWOT Analysis used for and what does it distinguish between?
A: It is used for strategic planning, distinguishing between internal (Strengths, Weaknesses) and external (Opportunities, Threats) assessments, and helps in establishing a competitive advantage.
Operational Management
Q: What is the focus of Operational Management?
A: Production planning, controls, and quality assurance, emphasizing the importance of aligning production goals with actual performance results.
Q: What specific terms are mentioned as having definitions under Operational Management?
A: Just-in-time inventory control and material requirements planning (MRP).
Questions Reflecting Exam Preparation and Content Understanding
Importance of dissecting questions critically for effective answers.
Emphasis on distinguishing between different business structures and the implications of each.
Relevance of understanding management styles and their impact on organizational success.
Management functions (Q&A format):
Q: What is Planning in management?
A: Establishing goals and determining how to achieve them.
Q: What is Organizing in management?
A: Arranging resources to carry out plans.
Q: What is Leading in management?
A: Motivating and directing people to achieve organizational goals.
Q: What is Controlling in management?
A: Monitoring performance and implementing necessary changes to achieve goals.
Reflective Practice: Encouraged to apply concepts discussed in class to