Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-46
PPT 11-47
Types of Pay Systems
TEXT FIGURE 11.6
Pay Systems
TYPES of PAY SYSTEMS
11-47
LO 11-8
PPT 11-48
Types of Pay Systems
TYPES of PAY SYSTEMS
11-48
LO 11-8
PPT 11-49
Types of Pay Systems
TYPES of PAY SYSTEMS
11-49
LO 11-8
PPT 11-50
Compensating Teams
COMPENSATING TEAMS
11-50
LO 11-8
• Team-based pay programs are more challenging
than individual pay systems.
• The two most common methods for teams
involve:
– Skill-Based: Pay is increased as skill increases.
(Eastman Chemical uses this system.)
– Gain-Sharing: Pay is increased as performance
increases. (Nucor Steel uses this system.)
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-47
both the individual and the team.
a. Base pay is raised when team members
learn and apply NEW SKILLS.
b. The skill-based pay system is complex, and
it is difficult to correlate skill acquisition to
bottom-line gains.
4. In GAIN-SHARING SYSTEMS, bonuses are
based on improvements over a performance
baseline.
5. It is important to REWARD INDIVIDUAL TEAM
PLAYERS, as well.
D. FRINGE BENEFITS
1. FRINGE BENEFITS are benefits such as sick-
leave pay, vacation pay, pension plans, and
health plans that represent additional compen-
sation to employees beyond base wages.
a. In recent years fringe benefit programs have
grown faster than wages.
b. Benefits can account for about 30% OF
PAYROLLS today.
c. To avoid higher taxes, many employees
want more fringe benefits instead of more
salary.
2. FRINGE BENEFIT PACKAGES
a. Fringe benefit packages can include recrea-
tion facilities, company cars, paid sabbati-
cals, and day care.
b. Employees want packages to include dental
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-48
PPT 11-51
Fringe Benefits on the Job
FRINGE BENEFITS on the JOB
11-51
LO 11-8
• Fringe Benefits — Sick leave, vacation pay, pension
and health plans that provide additional compensation
to employees beyond base wages.
• In 1929, fringe benefits accounted for less than
2% of payroll cost. Today it’s about 30%.
• Healthcare has been the most significant increase
in fringe benefit cost.
PPT 11-52
Healthcare, a Perk Not to Be Taken
Lightly
HEALTHCARE, a PERK NOT
to be TAKEN LIGHTLY
11-52
Source: Kiplinger’s Personal Finance, November 2010.
LO 11-8
• Compare all the costs, not
just premiums.
• Take part in wellness
programs. The average
wellness bonus is $386!
• Order generic drugs when
you need prescriptions filled.
PPT 11-53
Who Pays for Employee Benefits?
WHO PAYS for
EMPLOYEE BENEFITS?
11-53
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.
LO 11-8
• 74% of full-time workers
have employee-provided
retirement plans.
• 39% of part-time workers
have employee-provided
retirement plans.
• 71% of workers have
medical care benefits.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-49
care, mental health care, elder care, legal
counseling, eye care, and short workweek.
3. SOFT BENEFITS help workers maintain the bal-
ance between work and family life by freeing
them from spending time on errands.
4. Some companies offer CAFETERIA-STYLE
FRINGE BENEFITS, a fringe benefit plan that al-
lows employees to choose the benefits they want
up to a certain dollar amount.
5. Because of the cost of administering benefit pro-
grams, many companies are contracting with out-
side companies (OUTSOURCING) to run their
benefit plans.
6. Managing benefits can be especially complicated
when employees are located IN OTHER COUN-
TRIES.
learning objective 9
Demonstrate how managers use scheduling plans to adapt to workers’ needs.
IX. SCHEDULING EMPLOYEES TO MEET ORGAN-
IZATIONAL AND EMPLOYEE NEEDS
A. Managers and workers are demanding more flexibility
and responsiveness from their jobs.
B. FLEXTIME PLANS
1. A FLEXTIME PLAN is a work schedule that gives
employees some freedom to choose when to
work, as long as they work the number of re-
quired hours or complete assigned tasks.
2. Most flextime plans include some CORE TIME, a
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-50
PPT 11-54
The Range of Fringe Benefits
The RANGE of
FRINGE BENEFITS
11-54
LO 11-8
• Fringe benefits include incentives like:
– Company cars
– Country club memberships
– Recreation facilities
– Special home mortgage rates
– Paid and unpaid sabbaticals
– Day-care and elder care services
– Dental and eye care
– Legal counseling
– Short or compressed work weeks
PPT 11-55
Special Perks at Dreamworks
SPECIAL PERKS at
DREAMWORKS
11-55
LO 11-8
• Free DVDs and screenings
of current films.
• Free breakfast and lunch
plus dinner when working
late.
• Free snack rooms on every
floor.
• Profit sharing.
• Ping-Pong and poker
tournaments during work
hours.
PPT 11-56
Cafeteria-Style and Soft Benefits
CAFETERIA-STYLE and
SOFT BENEFITS
11-56
LO 11-8
• Cafeteria-Style Fringe Benefits — Allow
employees to choose the benefits they want (up to a
certain dollar amount).
• Soft Benefits include:
– Onsite haircuts and shoe repair
– Concierge services
– Free meals at work
– Doggie daycare
– Onsite farmer’s markets
PPT 11-57
Let’s Go to the Beach!
LET’S GO to the BEACH!
Average Vacation Days by Country
11-57
Source: Reuters, June 24, 2010.
LO 11-8
REACHING
BEYOND
our borders
PPT 11-58
Cultural Challenges
Without The Conflict
CULTURAL CHALLENGES
without CONFLICT
11-58
• Managers need to understand the business
needs of each country they operate in.
– Compensation: Conversion to foreign currencies and
special allowances often are needed.
– Health and Pension Standards: Benefits are different
country-by-country.
– Paid Time Off: Vacation time, sick and personal leave
vary.
– Taxation: Tax policies vary.
– Communication: Employees can feel disconnected in
other countries.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-51
period when all employees are expected to be at
their job stations.
a. Flextime plans are designed to allow employ-
ees to ADJUST TO WORK–LIFE DEMANDS,
such as two-income families.
b. Companies find that FLEXTIME boosts em-
ployee productivity and morale.
3. There are DISADVANTAGES, as well.
a. It does not work in assembly-line processes
or for shift work.
b. Managers often have to work longer days in
order to supervise employees.
c. Flextime makes communication more difficult.
d. Some employees could abuse the system.
4. A COMPRESSED WORKWEEK is a work
schedule that allows an employee to work a full
number of hours per week but in fewer days.
a. Employees enjoy working only four days.
b. But some employees get tired working such
long hours, and productivity could decline.
C. HOME-BASED WORK
1. Nearly 13 million U.S. workers work from home at
least once a week.
a. About 12% of businesses use some home–
based work.
b. Home-based workers can choose their own
hours, interrupt work for family tasks, and take
time out for personal reasons.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-52
lecture enhancer 11-6
ENCOURAGING HEALTHY WORK–
LIFE BALANCE
Ernst & Young is trying to get employees to work smarter and
balance work and family. (See the complete lecture enhancer on
page 11.88 of this manual.)
PPT 11-59
Flexible Scheduling Plans
FLEXIBLE SCHEDULING PLANS
11-59
LO 11-9
• Flextime Plan — Gives employees some freedom to
choose which hours to work as long as they work the
required number of hours or complete their tasks.
• Compressed Work Week — Employees work the
full number of work hours, but in fewer than the
standard number of days.
• Job Sharing — Lets two or more part-time
employees share on a full-time job.
PPT 11-60
Using Flextime Plans
USING FLEXTIME PLANS
11-60
LO 11-9
• Most flextime plans require Core Time — When all
employees are expected to be at their job stations.
• Flextime is difficult to incorporate into shift work
and managers have to work longer hours.
• Communication among employees can also be
difficult under flextime and managers have to be
alert to any system abuses.
PPT 11-61
A Flextime Chart
TEXT FIGURE 11.7
A Flextime Chart
A FLEXTIME CHART
11-61
LO 11-9
lecture enhancer 11-7
THE DANGERS OF FLEXTIME
Workers with flextime schedules are growing increasingly wor-
ried about the states of their jobs. (See the complete lecture en-
hancer on page 11.89 of this manual.)
PPT 11-62
Compressed Workweeks
COMPRESSED WORK WEEKS
11-62
LO 11-9
• Employees enjoy long
weekends after working long
days.
• Productivity is a concern.
• Nurses and firefighters often
work compressed work
weeks.
PPT 11-63
Home-Based Work
HOME-BASED WORK
• About 13 million Americans work from home at
least several days a month.
• 12% of U.S. businesses use some home-based
work.
11-63
LO 11-9
• Bank of America has
My Work that permits
employees to work
remotely about 60%
of the time.
PPT 11-64
Home-Based Work
TEXT FIGURE 11.8
Benefits and Challenges of Home-
Based Work
HOME-BASED WORK
11-64
LO 11-9
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-53
2. To be successful, a home-based worker must
have the discipline to stay focused on the work.
3. Telecommuting can SAVE COSTS for employ-
ers.
4. Many businesses are doing away with the con-
cept of one seat per employee.
a. When companies reduce the number of of-
fices, employees use “HOT–DESKING” to
share office space.
b. Some firms use home-based call agents ra-
ther than in–house operators or less-qualified
offshore call centers.
D. JOB-SHARING PLANS
1. JOB SHARING is an arrangement whereby two
part-time employees share one full-time job.
2. Job sharing lets parents work part-time while
their children are in school.
3. BENEFITS INCLUDE:
a. Employment opportunities for those who
cannot or prefer not to work full-time
b. An enthusiastic and productive workforce
c. Reduced absenteeism and tardiness
d. Ability to schedule people into peak demand
periods
e. Retention of experienced employees
4. DISADVANTAGES include having to hire, train,
motivate, and supervise twice as many people.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-54
PPT 11-65
Virtually There
VIRTUALLY THERE
Tools to Help You Work From Home
11-65
LO 11-9
• Communication:
– Google Apps
– Skype
– Yammer
• Collaboration:
– Google Docs
– GoToMeeting
– Dropbox
PPT 11-66
Going Nowhere Fast
GOING NOWHERE FAST
Worst Commutes in the World
11-66
Source: Bloomberg Businessweek, www.businessweek.com, accessed N ovember 2014.
LO 11-9
PPT 11-67
Job-Sharing Benefits
JOB SHARING BENEFITS
11-67
LO 11-9
• Provides employment opportunities for many
people who cannot work full time.
• Workers tend to be enthusiastic and productive.
• Absenteeism and tardiness are reduced.
• Employers can schedule part-time workers in
peak demand periods.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-55
5. Most firms have found that the benefits of job
sharing outweigh the disadvantages.
learning objective 10
Describe how employees can move through a company: promotion, reassign-
ment, termination, and retirement.
X. MOVING EMPLOYEES UP, OVER, AND OUT
A. Employees don’t always stay in the position they
were initially hired to fill.
B. PROMOTING AND REASSIGNING EMPLOYEES
1. Promotions are COST-EFFECTIVE ways to im-
prove EMPLOYEE MORALE.
2. With flatter corporate structures today, more
workers transfer OVER to a new position than
move UP to one.
C. TERMINATING EMPLOYEES
1. Human resource managers are struggling to
manage layoffs and firings due to downsizing
and global trends.
2. The COST OF TERMINATING employees is so
high that managers choose to use TEMPO-
RARY EMPLOYEES or OUTSOURCE certain
functions.
3. EMPLOYMENT AT WILL
a. The doctrine of “EMPLOYMENT AT WILL”
meant that managers had as much freedom
to fire workers as workers had to leave vol-
untarily.
b. Most states now have employment laws that
LIMIT THE “AT WILL” DOCTRINE to pro-
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-56
PPT 11-68
Moving Employees
MOVING EMPLOYEES
11-68
LO 11-10
• Employees are promoted or reassigned.
• Employees are terminated due to
performance or economic situations.
• Employees retire.
PPT 11-69
Terminating Employees
TERMINATING EMPLOYEES
• As the economic crisis grew, more and more
employers have had to lay off employees.
• Even when the economy is booming, employers
are hesitant to hire full-time workers because of
the cost of termination.
11-69
LO 11-10
• Firing employees is more
difficult for employers because
of laws preventing termination
for certain acts.
PPT 11-70
Playing Hooky
PLAYING HOOKY
Crazy Excuses for Missing Work
11-70
LO 11-9
• I woke up in a good mood and didn’t want to ruin it.
• I just put a casserole in the oven.
• I caught my uniform on fire by putting it in the
microwave to dry
• I had been at the casino all weekend and still had
money left to play with on Monday morning.
• I accidentally got on a plane.
Source: Forbes, www.forbes.com, accessed November 2014.
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-57
tect employees from wrongful firing.
c. This legislation has restricted management’s
ability to terminate employees.
D. RETIRING EMPLOYEES
1. Another tool used to downsize companies is to of-
fer early retirement benefits, called GOLDEN
HANDSHAKES, to entice older workers to resign.
2. Offering early retirement benefits rather than lay-
ing off employees INCREASES THE MORALE
OF THE SURVIVING EMPLOYEES.
3. Retiring senior workers increases PROMOTION
OPPORTUNITIES for younger employees.
E. LOSING VALUED EMPLOYEES
1. Some employees will inevitably choose to leave
the organization.
2. One way to learn why employees leave is to have
a third party conduct an EXIT INTERVIEW.
3. There are now Web-based exit interview systems.
XI. SUMMARY
Chapter 11 – Human Resource Management: Finding and Keeping the Best Employees
11-58
TEXT FIGURE 11.9
How to Avoid Wrongful Discharge
Lawsuits
This text figure gives advice about how to minimize the
chance of wrongful discharge lawsuits.
bonus case 11-3
THE DEPARTMENT STORE
DILEMMA
What should a manager do when a bureaucratic snafu threat-
ens to cause the termination of a valuable worker? (See the
complete case, discussion questions, and suggested answers
beginning on page 11.104 of this manual.)
lecture enhancer 11-8
THE RETIREMENT CRISIS
Young people rely on older employees retiring to make way
for them. But because of the recent financial crisis, some em-
ployees are not ready for a total retirement just yet. (See the
complete lecture enhancer on page 11.89 of this manual.)
lecture enhancer 11–9
USING THE EXIT INTERVIEW FOR
FEEDBACK
One often overlooked way of getting employment feedback is
through the exit interview. (See the complete lecture enhancer
on page 11.90 of this manual.)
test
prep
PPT 11-71
Test Prep
TEST PREP
11-71
• 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?
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-59
PowerPoint slide notes
PPT 11-1
Chapter Title
Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
CHAPTER 11
Human Resource
Management:
Finding and
Keeping the Best
Employees
PPT 11-2
Learning Objectives
LEARNING OBJECTIVES
11-2
1. Explain the importance of human resource
management, and describe current issues in
managing human resources.
2. Illustrate the effects of legislation on human resource
management.
3. Summarize the five steps in human resource
planning.
4. Describe methods that companies use to recruit new
employees, and explain some of the issues that
make recruitment challenging.
PPT 11-3
Learning Objectives
LEARNING OBJECTIVES
11-3
5. Outline the six steps in selecting employees.
6. Illustrate employee training and development
methods.
7. Trace the six steps in appraising employee
performance.
8. Summarize the objectives of employee
compensation programs, and evaluate pay systems
and fringe benefits.
Chapter 11 – Human Resource Management: Finding and Keeping The Best Employees
11-60
PPT 11-4
Learning Objectives
LEARNING OBJECTIVES
11-4
9. Demonstrate how managers use scheduling plans
to adapt to workers’ needs.
10. Describe how employees can move through a
company: promotion, reassignment, termination,
and retirement.
PPT 11-5
Tony Hsieh
TONY HSIEH
Zappos
11-5
• Hsieh sold his first company to
Microsoft for $265 million,
before becoming Zappos’ CEO.
• Changed Zappos’ corporate
work environment so reps wow
customers.
• The work environment is kept
open and accessible.
PPT 11-6
Name That Company
NAME that COMPANY
11-6
This company manages its global workforce of
about 100,000 employees and 100,000
subcontractors with a database that matches
employee skills, experiences, schedules, and
references with jobs available.
Name that company!
Company: IBM