Human Capital Management Quiz
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Questions and Answers

What is the term used to describe the collective value of an organization's workforce's capabilities, skills, and motivation?

  • Intellectual Property
  • Organizational Capital
  • Human Capital (correct)
  • Workforce Value
  • What is the main difference between effectiveness and efficiency as they relate to human capital?

  • Efficiency measures the output produced, while effectiveness measures the resources used.
  • Efficiency is a short-term concept, while effectiveness is a long-term concept.
  • Effectiveness is more important than efficiency.
  • Effectiveness focuses on achieving goals, while efficiency focuses on minimizing costs. (correct)
  • Which of the following is NOT a characteristic of the gig economy?

  • Focus on full-time employment (correct)
  • Increased use of temporary workers
  • Seasonal employees are typical examples
  • Rise of freelance workers
  • What is the primary purpose of strategic planning in an organization?

    <p>To define the organization's direction and allocate resources for achieving its goals. (A)</p> Signup and view all the answers

    In the context of strategic planning, what is the primary difference between goals and objectives?

    <p>Goals are long-term aspirations, while objectives are specific, measurable steps to achieve those goals. (B)</p> Signup and view all the answers

    Which of the following is NOT a step in the strategic planning process?

    <p>Analyzing the competitive landscape (B)</p> Signup and view all the answers

    Which of these is considered a strength in the HR Factors and the SWOT Analysis?

    <p>High-performance practices (D)</p> Signup and view all the answers

    What is the primary goal of succession planning?

    <p>To identify and develop future leaders within the organization. (A)</p> Signup and view all the answers

    What is the primary goal when managing a talent surplus?

    <p>Reduce costs and improve efficiency (C)</p> Signup and view all the answers

    Which scenario is NOT considered a solution for managing a talent shortage?

    <p>Reduce employee work hours (A)</p> Signup and view all the answers

    Which legal act prohibits using race or religion as a factor when making layoff decisions?

    <p>Title VII of the Civil Rights Act (D)</p> Signup and view all the answers

    What is the purpose of the Older Workers Benefit Protection Act (OWBPA)?

    <p>To safeguard employee benefits during a workforce reduction (A)</p> Signup and view all the answers

    Which legal act requires employers to provide advance notice of mass layoffs or plant closings?

    <p>Worker Adjustment and Retraining Notification (WARN) Act (A)</p> Signup and view all the answers

    What is the primary consideration when making employment decisions about a candidate?

    <p>The candidate's ability to fulfill the job's essential functions (C)</p> Signup and view all the answers

    Which of the following is NOT a legal factor to consider when making layoff decisions?

    <p>Marital status (D)</p> Signup and view all the answers

    What is an example of an alternative work arrangement that can be used to manage a talent shortage?

    <p>Flexible work schedules (B)</p> Signup and view all the answers

    According to the ADA Amendments Act (ADAAA), what is considered a disability?

    <p>Any impairment that limits a life function, regardless of medication or prosthetics. (B), Any impairment that is perceived by others to be a disability. (C)</p> Signup and view all the answers

    What is the purpose of the Pregnant Workers Fairness Act (PWFA)?

    <p>To require employers to provide reasonable accommodations for pregnant employees. (D)</p> Signup and view all the answers

    What is the minimum number of employees an organization must have for the Age Discrimination in Employment Act (ADEA) to apply?

    <p>20 (A)</p> Signup and view all the answers

    Which of the following is NOT a type of harassment typically covered by company policies?

    <p>Social harassment (A)</p> Signup and view all the answers

    Under the Equal Pay Act, employers are required to pay similar wages for similar work, regardless of which factor?

    <p>Gender (D)</p> Signup and view all the answers

    What is a "quid pro quo" type of sexual harassment?

    <p>Harassment that involves quid pro quo (Latin for &quot;something for something&quot;). (C)</p> Signup and view all the answers

    What is the primary objective of the Older Workers Benefit Protection Act (OWBPA)?

    <p>To protect employees who sign a release/waiver of age discrimination claims in exchange for severance packages. (D)</p> Signup and view all the answers

    Which of these is NOT considered a best practice for preventing sexual harassment in the workplace?

    <p>Discouraging employees from reporting harassment incidents to avoid creating a hostile work environment. (C)</p> Signup and view all the answers

    Under what circumstances would 'job redesign' be considered an optimal solution?

    <p>When a company wishes to improve existing job roles to enhance employee efficiency and satisfaction. (C)</p> Signup and view all the answers

    Expanding the scope of a job to encompass a wider range of tasks is referred to as:

    <p>Job Enlargement (C)</p> Signup and view all the answers

    Which approach to job design focuses on increasing responsibility for planning, organizing, controlling, and evaluating work?

    <p>Job Enrichment (A)</p> Signup and view all the answers

    Which of the following represents a primary benefit of job rotation for new managers?

    <p>It allows managers to gain a deeper understanding of the organization's various departments and functions. (D)</p> Signup and view all the answers

    Which of the following is NOT a potential source of information for a job analysis?

    <p>Market Research Firms (B)</p> Signup and view all the answers

    According to the content, which of the following is NOT a component of job satisfaction?

    <p>Company culture (B)</p> Signup and view all the answers

    Based on the provided information, what is the primary goal of having a workforce that is engaged with the company and the work?

    <p>To reduce disciplinary issues, absenteeism, and turnover (C)</p> Signup and view all the answers

    What is the implied expectation employers have for employees in the context of the 'Psychological Contract'?

    <p>Employees should contribute skills, continuous improvement, and increased productivity (D)</p> Signup and view all the answers

    What does the content suggest is necessary for an employee to be motivated to contribute more?

    <p>Meeting basic needs such as competitive wages and benefits (B)</p> Signup and view all the answers

    What is a potential consequence of having a workforce that is not engaged with the company and the work?

    <p>Increased disciplinary issues and potential turnover (B)</p> Signup and view all the answers

    What is the primary consideration when evaluating whether a person can perform the essential functions of a job in relation to disability or pregnancy?

    <p>Whether the person can perform the essential functions of the job, with or without a reasonable accommodation. (A)</p> Signup and view all the answers

    A "Bona fide occupational qualification (BFOQ)" is a legitimate requirement for a job. What does this mean?

    <p>It refers to a requirement directly related to the safe and efficient performance of the job, and failure to meet it can result in exclusion from consideration. (B)</p> Signup and view all the answers

    Which of the following is NOT considered a protected characteristic under employment law?

    <p>Socioeconomic Status (A)</p> Signup and view all the answers

    What does "undue hardship" mean in the context of reasonable accommodation?

    <p>A significant difficulty or expense imposed on an employer when making an accommodation for individuals with disabilities, pregnancy, or religious beliefs. (D)</p> Signup and view all the answers

    What is the primary purpose of the Americans with Disabilities Act (ADA)?

    <p>To prohibit discrimination against individuals with disabilities in employment and other areas. (C)</p> Signup and view all the answers

    What characterizes "disparate impact" in employment discrimination?

    <p>When an employment practice, though neutral on its face, negatively affects individuals with a particular characteristic, such as race or gender. (A)</p> Signup and view all the answers

    Which of the following is NOT considered a reasonable accommodation under the ADA or pregnancy discrimination laws?

    <p>Requiring an employee to work overtime as part of a mandatory work schedule (A)</p> Signup and view all the answers

    What is the primary difference between "disparate treatment" and "disparate impact"?

    <p>Disparate treatment focuses on the employer's intent, while disparate impact focuses on the outcome of a practice. (C)</p> Signup and view all the answers

    Flashcards

    Human Capital

    The collective value of capabilities, knowledge, and motivation of employees.

    Staffing

    The process of hiring for full-time, part-time, and temporary roles.

    Gig Economy

    Work performed by freelance or temporary workers rather than full-time staff.

    Effectiveness

    The ability to produce a desired result that can be measured.

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    Job Design

    The process of organizing tasks and responsibilities into a unit for productivity.

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    Efficiency

    How economically operations are carried out, managing costs.

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    Job Redesign

    The process of changing existing jobs to make improvements.

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    Strategic Planning

    Defining strategy and allocating resources for achievement.

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    Job Simplification

    Breaking a complex job into smaller, manageable parts.

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    Organizational Mission

    The overall goal or purpose of a company or department.

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    Succession Planning

    Identifying a plan for the orderly replacement of key employees.

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    Job Enlargement

    Expanding the scope of a job by adding more tasks.

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    Job Rotation

    Shifting employees from one job to another for experience.

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    Essential Job Functions

    The main responsibilities or tasks that are crucial for a job.

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    Reasonable Accommodation

    Modifications made to a job or work environment for equal opportunity.

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    Undue Hardship

    Significant difficulty or expense for an employer in providing accommodations.

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    Bona Fide Occupational Qualifications (BFOQ)

    Legitimate job requirements that may exclude some candidates.

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    Protected Characteristics

    Attributes like race, sex, and disability that cannot be discriminated against.

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    Disparate Treatment

    Differential treatment of individuals based on characteristics unrelated to job performance.

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    Disparate Impact

    Neutral practices that disproportionately affect a group based on a protected characteristic.

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    Talent Surplus

    A situation where there are more employees than needed to achieve business goals.

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    Talent Shortage

    A situation where there are insufficient employees to meet business demands.

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    Americans with Disabilities Act (ADA)

    Law prohibiting discrimination against individuals with disabilities in various sectors.

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    Managing Talent Surplus

    Strategies like reducing hours or layoffs to address excess staff.

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    Managing Talent Shortage

    Strategies like overtime and outsourcing to compensate for lack of staff.

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    Title VII of the Civil Rights Act

    Prohibits discrimination based on sex, race, national origin, and religion in employment.

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    Age Discrimination in Employment Act

    Protects employees 40 years and older from discrimination based on age.

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    Worker Adjustment and Retraining Notification Act (WARN)

    Requires notification to employees about mass layoffs or plant closings.

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    Employee Qualifications

    Skills and experience that enable an individual to perform job functions effectively.

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    ADA Amendments Act (ADAAA)

    Expands the definition of disabilities to include impairments limiting life functions, regardless of aids.

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    Pregnancy Discrimination Act (PDA)

    Ensures maternity leave is treated like other personal or medical leaves.

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    Family and Medical Leave Act (FMLA)

    Allows up to 12 weeks of unpaid leave for family or medical reasons, ensuring job return.

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    Equal Pay Act

    Mandates equal pay for similar work regardless of gender.

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    Age Discrimination in Employment Act (ADEA)

    Prohibits discrimination against individuals aged 40 or older in organizations with 20+ employees.

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    Older Workers Benefit Protection Act (OWBPA)

    Protects employees waiving age discrimination claims for severance packages.

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    Sexual Harassment

    Unwelcome sexual conduct affecting work conditions or creating a hostile environment.

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    Preventing Sexual Harassment

    Implement policies, training, and investigations to address and prevent harassment.

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    Psychological Contract

    The unspoken agreement between employers and employees on mutual expectations.

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    Job Satisfaction

    The level of contentment employees feel towards their jobs.

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    Components of Job Satisfaction

    Factors that influence job satisfaction include pay, advancement, supervision, coworkers, and the nature of the work.

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    Engaged Workforce

    Employees who are enthusiastic, committed, and involved with their work.

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    Disengaged Employees

    Employees who are emotionally detached and may lead to issues like absenteeism and turnover.

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    Study Notes

    Test 1 Review - Spring 2025 (Chapters 1-5)

    • The test covers chapters 1-5.
    • The test has 50 multiple choice questions.
    • Read questions slowly and carefully, paying attention to specific words like "not".
    • Specific terms ("direct costs", "indirect costs") have precise meanings.
    • Direct costs are financial, while indirect costs are often non-financial (e.g. staffing shortages).
    • The test is 1 hour and 15 minutes long.
    • Students should sign in.
    • Bring a laptop to class. If you don't have one, arrange to borrow one from the library beforehand.
    • The test is closed book, no notes.
    • Students whose first language is not English can use a Korean, Spanish, or German-English dictionary. Please bring it to class early to enable review before the test.

    Chapter 1 - Human Resource (HR) Management

    • HR Management designs systems to manage human talent, achieving organizational objectives and goals.
    • HR roles include selecting, training, rewarding, managing, and retaining employees.

    Core HR Functions

    • Strategy and planning
    • Equal employment opportunity
    • Talent acquisition
    • Talent management
    • Total rewards
    • Risk management and worker protection
    • Employee and labor relations

    What does HR do?

    • Help organizations achieve higher profits and employee productivity.
    • Assisting organizations adapt to a changing workforce (e.g. diversity, protected classifications).
    • Adhering to legal compliance (statutes and regulations).

    Technology in HR

    • Improves administrative and operational efficiency (record-keeping).
    • Reduces recruitment, selection, and training costs.
    • Over-reliance may negatively impact learning and analysis skills.
    • Artificial intelligence (AI) impact in HR is yet to be determined.

    Human Capital and Staffing

    • Human capital is the value of an organization's workforce (capabilities, knowledge, skills, experience, motivation).
    • Staffing includes full-time, part-time, and gig economy workers (temporary, freelance).
    • Skill shortages can exist where an organization lacks workers with the necessary skills for their key jobs.

    Effective Use of Human Capital

    • Effectiveness measures the ability of a program to produce a desired result.
    • Efficiency measures the economical manner in which a program is carried out. (Cost management).
    • Cost analysis in programs involves examining initial investment and whether there are savings in other areas. Does it improve accidents, absenteeism, and turnover?

    Chapter 2 - Strategy and Strategic Planning

    • Strategy is the plan organizations use to compete successfully and grow.
    • Strategic planning includes defining an organization's direction and allocating resources towards achieving its goals.

    Strategic Planning Process

    • Define the organization's overall goal and purpose.
    • Establish department/company goals and objectives.
    • Develop organizational strategies (the plan).
    • Formulate steps to complete the strategies.
    • Implement the plan.
    • Evaluate and reassess.

    HR Planning Process (Figure 2-5)

    • Review organizational & environmental analysis/strategic plans.
    • Assess external & internal workforce conditions, capabilities, and KSAs.
    • Compile HR planning forecasts/demands for human resources.
    • Supply of human resources.
    • Develop HR staffing plans and actions with employee retention, recruiting sources, and selection.

    HR Factors and SWOT Analysis (Example)

    • Strengths: Intellectual capital, loyal/committed employees, innovative/adaptive employees, high performance, lack of leadership pipeline.
    • Weaknesses: Outdated talent management practices.
    • Opportunities: Market position, unexplored markets, global expansion, technological advances.
    • Threats: Legal mandates, competitor power, economic uncertainty, talent shortage.

    Succession Planning

    • Identifying and planning for the replacement of key employees.
    • Ensures high-quality talent available to carry out business strategies.

    Talent Imbalances (Too Many/Too Few)

    • Too Many: Reduce employee work-hours, attrition, hiring freezes, voluntary separation programs, workforce downsizing/reduction in force (RIF).
    • Too Few: Increase employee work hours, overtime, outsourcing, contingent workers (temporary, independent contractors), bonus to motivate retention.
    • Title VII of the Civil Rights Act: Do not use protected classifications (sex, race, national origin, religion) for decision-making.
    • Age Discrimination in Employment Act (ADEA): Protects individuals aged 40 or older.
    • Americans with Disabilities Act (ADA) and Pregnancy Discrimination Act.
    • Other laws pertain to worker adjustment and retraining, Consolidated Omnibus Budget Reconciliation Act (COBRA), and older workers' benefits.

    Chapter 3 - Making Workplace Decisions

    • Employment choices are based on job needs/requirements. Can the candidate perform essential job functions? In ADA and Pregnancy cases, can the candidate perform duties with reasonable accommodation?

    Employment, Job Descriptions

    • Job descriptions are based on business necessity (safe and efficient operations).
    • Bona fide occupational requirements (BFOQs) are legitimate job requirements. Failing to meet necessary job qualifications is not discrimination.

    Reasonable Accommodation and Undue Hardship

    • Reasonable accommodation modifies a job to give qualified individuals equal opportunity to do essential work.
    • Undue hardship is significant difficulty or expense when making an accommodation for a disability.

    Protected Characteristics

    • These characteristics focus on protected classes (race, creed, color, national origin, religion, sex, marital status, pregnancy, disability, military status, age, genetic information , others).
    • These characteristics are unrelated to job performance and should not affect job decisions.

    Unlawful Discrimination (Disparate Impact, Disparate Treatment)

    • Disparate treatment is intentional discrimination based on un-job-related characteristics.
    • Disparate impact is unintentional discrimination where a neutral practice has a discriminatory impact on a protected group.

    Federal Rehabilitation Act of 1973/ Americans with Disabilities Act (ADA)

    Federal workers and applicants with disabilities are protected from discrimination.

    • ADA protects private employers, employment agencies, labor unions with 15 or more employees from discriminating
    • Requires an interactive process regarding reasonable accommodations.
    • ADA Amendments Act (ADAAA) broadened the definition to include individuals with conditions affecting impairment affecting life activities, including "perceived" disabilities.

    Pregnancy/Family and Medical Leave Act (FMLA)/Equal Pay Act

    • Pregnancy Discrimination Act protects pregnant individuals.
    • Pregnant Worker Fairness Act treats pregnancy leaves like personal or medical leaves. Employers need to ensure pregnancy-related accommodations.
    • FMLA requires employers to provide 12 weeks of unpaid leave to individuals for family or medical reasons, including sickness or family members' issues.
    • Equal Pay Act mandates equal pay for similar work to avoid gender discrimination.

    Age Discrimination in Employment Act (ADEA) and Older Workers Benefit Protection Act (OWBPA)

    • ADEA prohibits age discrimination against individuals aged 40 or over.
    • OWBPA protects employees who sign a waiver of age discrimination claims in exchange for severance packages.

    Sexual Harassment

    • Includes unwelcome verbal, visual, or physical conduct of a sexual nature that affects working conditions or creates a hostile work environment.
    • M-F, M-M, F-M, F-F

    Preventing Sexual Harassment

    • Establish a sexual harassment policy and communicate the policy regularly.
    • Train employees on sexual harassment issues.
    • Encourage reporting—create a positive culture with a neutral investigator.
    • Investigate all complaints.

    Harassment

    • Adopt policies against harassment, targeting and addressing ethnic jokes, vulgar language, and inappropriate physical conduct.
    • Training should be conducted annually, with employee acknowledgment, reinforcing company’s policies and procedure against harassment, and outlining appropriate employee conduct.

    Military Status Protections (USERRA)

    • Provides reemployment rights for active service members.
    • The act provides leaves of absences and guarantees re-employment rights after completing service.

    Chapter 4 - Work Force Participation and Profile

    • Includes information about the labor force participation rate in December 2023.
    • Covers full-time employees, part-time employees, independent contractors, and contingent workers.
    • Discusses generational group differences in terms of technology adoption and focus.
    • Addresses skill gaps in the workforce, and challenges in filling positions requiring science, technology, engineering, and math (STEM) skills.

    Job Design and Job Redesign

    • Job design organizes tasks, duties, responsibilities for a productive unit of work.
    • Job design influences job performance, job satisfaction, physical and mental well-being.
    • Job redesign changes existing jobs to improve them.

    Approaches to Job Design/Redesign

    • Job simplification: breaking complex jobs into simpler parts.
    • Job enlargement: broadening the scope of a job by increasing the number of tasks.
    • Job enrichment: increasing depth by adding responsibility for planning, organizing, controlling, and evaluating the work.
    • Job rotation: shifting employees from job to job.

    Job Analysis (methods and sources)

    • Identifies who is responsible for the analysis (HR, operations, management, or consultants).
    • Sources for data gathering include company data, managers, and employees, and 3rd party data sources (e.g., Department of Labor).
    • Methods include questionnaires, interviews, and observations.

    Job Analysis – Information Needed

    • Tasks and duties
    • Skills needed
    • Responsibilities
    • Tools and equipment
    • Supervision
    • Decision-making authority
    • Work hours/schedules
    • Travel requirements
    • Physical, psychological, and emotional demands
    • Knowledge, education, experience, and certifications

    Job Description Checklist

    • Identification (Job title/department, reporting relationships, analysis date/location).
    • General summary (general responsibilities/overview of duties).
    • Essential job functions and duties (functions/duties, listed by importance; tasks/duties/responsibilities).
    • Job specifications (knowledge/skills, education/experience, physical requirements).
    • Disclaimers and approvals (signatures/legal disclaimers; allows updates/changes to job duties).

    Chapter 5 - Motivation, Performance, and Retention

    • Employee effort (motivation, work ethic, attendance), employee ability (knowledge/skills), and company support (training/equipment) impacts performance results.
    • Motivation is impacted by factors like appreciation, respect, ability to use personal capabilities, and liking the work itself.
    • Maslow's hierarchy of needs describes motivations. Lower-level needs (basic needs) must be met before higher-level needs can influence behavior. Consider wages, benefits, job security.
    • Implied expectations in psychological contracts include competitive wages, work-life balance, career opportunities and safe work environment; employees contribute skills and strive for performance improvement, productivity, length of service, extra efforts, and results needing attention.

    Components of Job Satisfaction

    • Adequacy of pay
    • Opportunity for advancement
    • Supervision quality
    • Coworker relationships
    • Nature of the work.

    Costs of Absenteeism

    • Direct costs (replacement for absent worker, salary/benefits, overtime pay)
    • Indirect costs (productivity loss, reduced quality of work, lost training/supervisor time, customer dissatisfaction, slow workpace, etc.)

    Employee Turnover

    • Occurs when employees leave the organization and are replaced.
    • Signs of potential turnover can include decreased motivation/interest in getting promoted, reluctance to be involved in long-term opportunities, and minimal contribution in meetings.

    Turnover Expense

    • Separation, vacancy, and replacement costs.
    • Hidden/indirect costs (lost productivity, poor replacement hire, etc.)

    Retaining Top Performers

    • Executive mentoring
    • Challenging job assignments
    • Development of management competencies
    • Regular performance feedback.

    Drivers of Retention

    • Organizational and management factors
    • Employee-supervisor relationships
    • Job/work-life balance
    • Rewards
    • Career training and development
    • Employer policies and practices.

    Process of Managing Retention

    • Measurement and assessment (usage of Absence/turnover measurement, etc.).
    • Management interventions (recruiting/selection/orientation and training/compensation and benefits/career development/employee relations).
    • Evaluation/Follow-Up (reviewing turnover data/tracking interventions/adjusting efforts).

    Turnover vs. Churn

    • Churn is undesirable (hiring new employees while laying off others). This is not a positive management strategy in terms of labor resources and costs

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    Test 1 Review Spring 2025 (PDF)

    Description

    Test your knowledge on key concepts in human capital management, including strategic planning, the gig economy, and legal considerations in workforce management. This quiz will challenge your understanding of the workforce's capabilities, skills, and the implications of HR strategies on organizational success.

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