Human Resources Management Overview

A strategy that focuses on utilizing and developing human resources to achieve organizational goals. This includes attracting, training, motivating, and retaining the best talent.

Activities that aim to increase the value employees bring to an organization. Examples include creating empowerment programs, emphasizing quality initiatives, and encouraging continuous improvement.

The ability of a company to attract and retain employees with unique skills and knowledge that competitors lack. This gives them a competitive edge.

The difficulty for competitors to replicate a company's human resources practices, skills, or knowledge. This can be achieved through training programs, unique company culture, or strong employee relationships.

The process of attracting, selecting, and placing employees for jobs within the organization.

Developing employee knowledge and skills, often through formal programs, to improve their performance and prepare them for future roles.

Evaluating employee performance against set standards and providing feedback to guide their development.

Systems that reward employees for their contributions, including salary, benefits, bonuses, and recognition programs.

Employees are a key asset when their skills and contributions are unique and difficult to copy by competitors.

Strategic HR involves aligning human resources activities with the organization's overall business goals and objectives.

Organizations can gain a competitive advantage by effectively managing their employees' knowledge, skills, and abilities.

The process of planning, programming, and evaluating human resources activities to meet the organization's staffing needs.

The first stage of HR planning involves understanding the organization's business plans, growth strategies, and future needs.

The second stage of HR planning involves implementing specific HR activities, such as recruitment, training, and layoffs, to support the organization's goals.

The final stage of HR planning involves evaluating the effectiveness of HR activities and making adjustments to ensure they are contributing to the organization's success.

A company's culture is the shared values, beliefs, and attitudes that guide its employees' behavior, creating a unique work environment.

Incentives and benefits that motivate employees, such as salary, bonuses, promotions, and training opportunities.

Identifying and developing high-potential employees for future leadership roles within the organization.

The ability to recruit and hire the best talent from outside the organization.

The process of filling vacant positions by promoting existing employees, leveraging internal talent.

The ability to retain skilled and motivated employees over time.

The ability to adapt HR practices to different business situations, such as growth, decline, or stability.

The process of systematically planning, organizing, and managing human resources activities within an organization.

The process of finding and attracting qualified candidates for job openings.

The process of evaluating candidates and selecting the most qualified person for a job.

The process of helping employees who are leaving a company find new jobs or career opportunities.

A situation where a company has more employees than it needs.

A situation where a company needs more employees than it currently has.

The normal turnover rate of employees in a company.

The process of analyzing and documenting the tasks, duties, and responsibilities of a job.

A written description of the tasks, duties, and responsibilities of a job.

A document that outlines the skills, knowledge, abilities, and other characteristics needed to perform a job.

A system for advertising open positions within a company.

Looking for potential employees within the company for promotions or transfers.

Recruiting through sources like online job boards, company websites, and employee referrals.

A system for hiring, promoting, and managing employee relations.

Determining the number and type of employees needed by an organization based on its future goals and plans.

Estimating the number and type of employees an organization will actually have, considering both internal and external factors.

The process of matching the supply of labor to the demand for labor within an organization.

Data that helps organizations understand their workforce, including factors like turnover, promotions, and retirements.

Moving jobs to countries with lower labor costs, often for routine and less skilled tasks.

The challenge of finding qualified workers for specialized roles, especially in technical industries.

A strategy for addressing skills shortages by training and developing existing employees.

A strategy for addressing skills shortages by attracting and hiring workers from other countries.

A US visa program that allows companies to hire foreign workers with specialized skills for temporary periods.

The process of managing a diverse workforce, taking into account differences in backgrounds, perspectives, and experiences.

A trend where both partners in a couple have professional careers, leading to changes in workforce demographics.

The process of planning and organizing the recruitment, selection, training, and development of human resources to meet organizational goals.

The future demand for specific types of employees that an organization anticipates.

The process of analyzing the current workforce and forecasting future labor needs to ensure the right people are in the right roles at the right time.

Checking references is verifying an applicant's past work experiences by contacting previous employers.

A background check is a thorough investigation of a candidate's past, including their employment history, criminal record, and education.

Negligent hiring occurs when a company fails to take reasonable steps to ensure a new employee is fit for the job, leading to harm by the employee.

These tests measure personality traits like sociability, adjustment, and energy level to determine how well a person might fit a specific job.

A concern with personality tests is that they might be perceived as discriminatory or might not accurately predict job performance.

Drug testing is a screening method that checks for the presence of illegal drugs in a candidate's system.

The Drug-Free Workplace Act of 1988 requires drug testing for certain federal contractors and those under Department of Transportation regulations.

Cognitive ability tests assess intellectual abilities such as verbal comprehension and numerical aptitude.

A performance test involves a candidate completing a sample task similar to the actual job duties.

Social media platforms like Facebook and LinkedIn are increasingly used by employers to gather information about candidates.

Employers are sometimes hesitant to hire candidates when they find questionable content about them online.

Online background checks are faster and easier to perform due to advancements in internet technology.

A conditional job offer is made before drug testing to avoid potential discrimination against individuals with disabilities.

These tests measure an individual's ability to process information, understand instructions, and solve problems.

The use of personality tests to measure personality traits is becoming more common.

Recruitment methods employed by organizations to find suitable candidates for their vacant positions.

A recruitment strategy that involves building relationships with educational institutions to source potential new hires for the organization.

A formal process involving application forms and resumes, providing initial insights into candidates' qualifications and experiences.

The most commonly used selection tool, involving structured or unstructured conversations to evaluate candidates' suitability for a role.

A type of interview that follows a predetermined format with consistent questions asked to all candidates, aiming for objective evaluation and comparison.

A structured interview approach that poses hypothetical situations to assess a candidate's problem-solving skills and decision-making abilities.

A structured interview approach that delves into past experiences to understand how candidates have handled specific situations, revealing their behavioral patterns.

A form of external recruitment that leverages specialized agencies to identify and screen potential candidates for open roles, especially for senior management positions.

A type of external recruitment that utilizes agencies to connect businesses with suitable candidates, often for entry-level or mid-level positions.

A practice that aims to avoid discrimination during recruitment by ensuring that the candidate pool reflects diversity and is not skewed towards specific demographic groups.

A specialized performance test specifically designed for evaluating managerial potential.

Tests designed to measure a candidate's honesty and integrity, often used in hiring decisions.

The consistency of test scores over time or across different measurements.

The accuracy of a test in predicting or correlating with job performance.

A type of validity that measures how well a test reflects the actual knowledge, skills, and abilities required for a specific job.

The reduction of workforce size, often through layoffs.

Dismissals, layoffs, or terminations of employment.

Systems that reward employees for their contributions, including salary, benefits, and bonuses.

A training method where trainees practice in a simulated environment, mimicking real-world job scenarios.

Training that focuses on building awareness of diversity issues and providing the skills to work with diverse teams.

A training method where employees are rotated through different jobs to gain broader experience and improve their skills. It often includes managerial roles.

Training designed to familiarize new employees with their job, team, and company.

Training that teaches employees teamwork skills, communication, and collaboration to work efficiently in teams.

The most effective and direct management development tool. It involves a superior guiding and training a subordinate.

Training delivered using technology, for example, online videos, quizzes, and games.

Training techniques include lectures, role-playing, simulations, and hands-on practice exercises.

A company's investment in training aims to enhance individual performance and improve overall productivity.

Training programs should be evaluated to assess their effectiveness. This means looking at employee reactions, learning achieved, behavior changes, and impact on business results.

The combination of instructor-led training and online learning, with interactive elements and individual practice.

Training that focuses on developing managers' people skills, including delegation, motivation, communication, and leading others.

Training methods should be tailored to meet the specific objectives outlined in the training program.

Formal programs and activities aimed at helping employees improve their skills and knowledge. This can include computer, technical, or communication training.

The termination of an employee's employment by an employer.

Steps taken by an employer to ease the transition for remaining employees after a layoff, minimizing disruption and improving morale.

A situation where an employer can terminate an employee's employment for any reason, without needing a specific cause.

Exceptions to the employment-at-will doctrine where an employee cannot be fired for actions that protect the public interest, like reporting illegal activity or refusing to commit unlawful acts.

A series of increasing disciplinary steps taken by a manager to address employee misconduct, starting with warnings and progressing to formal reprimands and potential termination.

A meeting between a manager and an employee to formally inform them about the termination of their employment.

The 1938 law that establishes minimum wage, overtime pay regulations, and other labor standards for certain categories of employees.

Employees who are exempt from overtime pay under the FLSA, typically those with significant discretion in their work and who exercise independent judgment. Managers often fall into this category.

Employees who are not exempt from overtime pay under the FLSA, typically those paid hourly and who must be paid overtime for work exceeding 40 hours per week.

The 1964 law that prohibits discrimination in employment based on race, sex, color, national origin, and religion.

The 1990 law that prohibits employment discrimination against individuals with disabilities, including those with conditions like recovering from addiction or chronic illnesses.

The 1991 law that strengthened the protections against employment discrimination and allowed for punitive damages against companies violating these laws.

A situation where a company is accused of unfair practices, leading to potential lawsuits and penalties for violating employment laws.

The process of informing an employee about the termination of their employment in a professional and ethical manner, ensuring clear communication and respect for the employee's situation.

Guidelines and procedures for conducting a termination interview, covering aspects like providing accurate information, being respectful, and maintaining professionalism during the meeting.

A seemingly neutral employment practice that disproportionately harms a protected group under the Civil Rights Act, like a test that unfairly excludes more women than men.

A legal requirement for companies to give workers 60 days' notice before closing facilities or mass layoffs.

The process of identifying the skills gaps and training needs within an organization.

Training aims to teach employees how to perform their current jobs, while development focuses on broader skills for current and future roles, often for managers and professionals.

A specific, measurable, achievable, relevant, and time-bound goal for a training program.

Any method used to deliver training, like classroom lectures, online courses, or simulations.

Comparing salaries based on factors like race, gender, and experience to ensure fairness in pay.

Formal written statements of company policies to guide employee behavior and reduce legal risk.

Regular, specific evaluations of employee performance with written documentation to prevent disputes and demonstrate fairness.

The legislation passed in 1967 prohibiting discrimination against people age 40 and over.

The practice of dismissing older workers and replacing them with less expensive younger workers.

Reward systems focused on improving productivity or cost savings in specific areas under employee control. Companies may share financial gains with employees for achieving goals, encouraging active participation in cost-reduction initiatives.

A company-wide incentive program where employees receive a portion of the company's profits if certain targets are met. This encourages a collective focus on overall business success and profitability.

The potential drawback of profit-sharing plans is that individual performance does not get specifically recognized or rewarded. While this fosters teamwork, it may not motivate employees striving for individual achievements.

When objective performance measures are unavailable, companies may choose to base pay on performance to incentivize employees, even if those measures are subjective. This encourages employees to strive for excellence, even with less quantifiable goals.

This refers to using subjective, rather than purely objective, measures to determine employee pay. This allows for flexibility in rewarding employees, considering factors like effort, teamwork, and adaptability.

The overall compensation strategy of a company, determining whether they will pay above, at, or below market rates.

Categorizing jobs based on their relative value to the organization, creating a hierarchy of pay grades.

Determining individual pay rates for jobs of similar worth within a pay grade, based on factors like seniority and performance.

Incentive plans that reward individual employees based on their performance against a set target.

Incentive plans that reward groups of employees based on their collective performance, encouraging collaboration and shared success.

The practice of keeping compensation information confidential within an organization.

Benefits provided by an employer in addition to salary, including health insurance, retirement plans, and Paid Time Off.

A significant increase in the cost of benefits offered by employers, driven by factors such as rising healthcare costs.

A wide range of benefits offered by employers, from traditional options to newer innovative benefits, requiring careful management and understanding of tax regulations.

The use of incentives and rewards to encourage and motivate employees to be more productive.

An objective standard used to measure an individual employee's performance. Their pay is determined by their performance relative to this standard.

Financial rewards offered to managers based on the performance of their teams or the entire organization.

The use of incentives to reward hourly employees for meeting performance targets in areas like sales, profitability, and inventory management.

The idea that employees have a sense of shared ownership and responsibility in the performance of the organization, fostered through group incentive plans.

The use of online resources and websites by employees to check salary information and compare their compensation to market averages.

A performance appraisal method that gathers feedback from multiple sources, including subordinates, peers, and superiors, providing a comprehensive view of an employee's strengths and weaknesses.

Individuals or teams within an organization who rely on the output of another employee's work.

Individuals outside the organization who use the company's products or services.

A performance appraisal method where managers and employees work together throughout the year, providing ongoing feedback and coaching.

A performance appraisal method that focuses on specific behaviors or outcomes, providing clear and actionable feedback for improvement.

Employees evaluating their own performance, potentially providing insights into their strengths and areas for development.

A performance appraisal interview format used for employees performing below expectations, involving steps to identify the issue, discuss solutions, and create an improvement plan.

The process of providing employees with feedback on their performance, acknowledging achievements and identifying areas for growth.

Potential biases in self-appraisals, where employees might overestimate their performance.

Conflicts arising in performance appraisals due to different objectives, including employee growth, organizational needs, and maintaining a positive image.

Appraisals should prioritize employee development, not solely focusing on administrative decisions like raises.

A performance appraisal method that encourages managers and employees to collaborate and work towards shared goals, fostering open communication and shared understanding.

Using multiple sources of information for performance appraisal, providing a more comprehensive and balanced perspective.

Focus on providing constructive feedback related to specific behaviors or goals, aiming to guide employees towards improvement.

The use of objective criteria, such as financial targets, for measuring performance.

Performance appraisal method focusing on a worker's personal characteristics that relate to performance, such as initiative and attitude.

A performance appraisal that involves a manager and employee agreeing on specific performance objectives before the appraisal period.

This appraisal method involves a manager recording significant behaviors of an employee to assess their performance. For example, 'Juanita impressed the client with her effective presentation today.'

This appraisal method focuses on a worker's actions and behaviors that can be directly observed to evaluate their job performance.

This type of appraisal relies on tangible, measurable data to assess employee performance, such as sales figures or units produced.

Appraisals by subordinates involve employees giving feedback to their supervisors on how they are performing as managers.

Peers and team members often see different dimensions of performance and are best at identifying leadership potential and interpersonal skills.

This appraisal method often leads to personal bias and may not be suitable for providing useful feedback because it can be ambiguous and subjective.

This appraisal method can be subjective as well as time-consuming, and it may give some employees the feeling that everything they do is being recorded.

This appraisal method can result in unrealistic objectives being set, frustrating the employee and the manager, and the objectives can be too rigid.

Performance appraisals can assess three basic categories of employee performance: traits, behaviors, and results.

Performance standards should be based on a thorough analysis of the job requirements.

Companies are also turning to peers and team members to provide input to the performance appraisal.

Managers and supervisors are the traditional source of appraisal information.

Communicate performance standards to employees before the appraisal and review period.

Evaluate employees on specific performance-related behaviors rather than on a single global or overall measure.