326 PART Management of Human Resources: Metvating Employees te Produce Quay Good and Services Retiring Employees Companies looking to downsize sometimes offer early retirement benefits to entice older (and more expensive) workers to retire. Such benefits can include ‘one-time cash payments, known in some companies as golden handshakes. ‘The advantage early retirement benefits have over layoffs or firing is the increased morale of surviving employees. Retiring senior workers earlier also increases promotion opportunities for younger employees, Losing Valued Employees In spite of a company’s efforts to retain them, some talented employees will choose to pursue opportunities elsewhere. Knowing their reasons for leaving can be invaluable in preventing the loss of other good people in the future. One way to learn the reasons is to have an outside expert conduct an exit inter- view. Outsiders can provide confidentiality and anonymity that earns more honest feedback than employees are comfortable giving in face-to-face inter- views with their bosses, Web-based systems can capture, track, and statisti- cally analyze employee exit interview data to generate reports that identify trouble areas. Such programs can also coordinate exit interview data with ‘employee satisfaction surveys to predict which departments should expect turnover to occur Attracting and retaining the best employees is the key to success in the competitive global business environment. Dealing with controversial issues employees have on the job is challenging and never-ending. Chapter 12 dis- ‘cusses such issues. eam ¢¢ Can you name and describe five alternative compensation techniques? + What advantages do compensation plans such as profit sharing offer an organization? + What are the benefits and challenges of flextime? Telecommuting? Job sharing? a ‘the importance of human resource management, and describe + What are current challenges and opportunities in the human resource area? Many current challenges and opportunities arise from changing demo- graphics: more women, minorities, immigrants, and older workers in the workforce. Others include a shortage of trained workers and an abun- dance of unskilled workers, skilled workers in declining industries requir- ing retraining, changing employee work attitudes, and complex laws and regulations.Human Resource Management Finding and Keeping Illustrate the effects of legislation on human resource management. + What are some of the key laws? See Figure 11.2 and review the text section on laws, ‘Summarize the five steps in human resource planning. + What are the steps in human resource planning? The five steps are (1) preparing a human resource inventory of the organiz: tion’s employees; (2) preparing a job analysis; (3) assessing future demand; (4) assessing future supply; and (5) establishing a plan for recruiting, hiring, educating, appraising, compensating, and scheduling employees. Describe methods that companies use to recrult new employees, and explain ‘some of the issues that make recruitment challenging. + What methods do human resource managers use to recruit new employees? Recruiting sources are classified as either internal or external. Internal sources include those hired from within (transfers, promotions, reassign. ments) and employees who recommend others to hire. External recruit ment sources include advertisements, public and private employment agencies, college placement bureaus, management consultants, profes: sional organizations, referrals, walk-in applications, and the Internet. + Why has recruitment become more difficult? Legal restrictions complicate hiring and firing practices. Finding suitable employees can be more difficult if companies are considered unattractive workplaces ‘Outi the six steps In selecting employees, + What are the six steps in the selection process? ‘The steps are (1) obtaining complete application forms, (2) conducting ini- tial and follow-up interviews, (3) giving employment tests, (4) conducting background investigations, (5) obtaining results from physical exams, and (6) establishing a trial period of employment. Illustrate employee training and development methods. + What are some training activities? Training activities include employee orientation, on- and off-the-job training, apprentice programs, online training, vestibule training, and job simulation. + What methods help develop managerial skills? Management development methods include on-the-job coaching, under study positions, job rotation, and off-the-job courses and training. + How does networking fit in this process? Networking is the process of establishing contacts with key managers within and outside the organization to get additional development assistance. ‘Trace the six steps in appraising employee performance. + How do managers evaluate performance? The steps are (1) establish performance standards; (2) communicate those standards; (3) compare performance to standards; (4) discuss results; 327328 PART Management of Human Resources: Matvating Employees to Produce Quality Good an Services (5) take corrective action when needed; and (6) use the results for deci- sions about promotions, compensation, additional training, or firing. ‘Summarize the objectives of employee compensation programs, and describe various pay systems and fringe benefits. + What are common types of compensation systems? They include salary systems, hourly wages, piecework, commission plans, bonus plans, profit-sharing plans, and stock options. + What types of compensation are appropriate for teams? ‘The most common are gain-sharing and skill-based compensation programs. Managers also reward outstanding individual performance within teams. + What are fringe benefits? Fringe benefits include sick leave, vacation pay, company cars, pension plans, and health plans that provide additional compensation to employ- ees beyond base wages. Cafeteria-style fringe benefits plans let employees choose the benefits they want, up to a certain dollar amount. + What scheduling plans can adjust work to employees’ need for flexibility? Such plans include job sharing, flextime, compressed workweeks, and home-based wor FRET ET) Describe how employees can move through a company: promotion, ‘reassignment, termination, and retirement. + How can employees move within a company? Employees can be moved up (promotion), over (reassignment), or out (ter- mination or retirement) of a company. They can also choose to leave a company to pursue opportunities elsewhere. affirmative action 304 human resource offsthejob training 3:4 apprentice programs 314 management (HRM) 300 online training 314 cafeteria-style fringe Job analysis 306 ‘on-thejob training 313 benefits 321 job description 306 orientation 313 compressed Job sharing 323 performance appraisal 316 workweek 322 job simulation 314 recrultment 307 contingent Job specifications 305 reverse discrimination 304 workers 31 management selection 309 core time 322 ‘development 315, Catocr flextime plan 322 mentor 315 development 312 fringe benefits 320 networking 315 vestibule training 314