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● Internship training combines OJT with learning at a cooperating school or college.
4. Tell how selection of managers differs from selection of non-managerial personnel, and
describe some methods of manager development.
● A good performer at non-managerial levels, does not necessarily make a good manager, as
the skills needed differ drastically.
5. Discuss the laws that affect recruiting, selection, and development.
● Since 1963 Congress has passed various acts to create equal employment opportunity and
affirmative action.
6. Describe how to compensate employees with money and employee benefits.
● Money is an important motivator, but not the only one.
● You must pay your employees enough to attract and keep them.
● The Wage and Hour Law sets the minimum working age and the minimum wage.
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7. List some factors influencing employee health and safety, and tell how to safeguard em-
ployees in small firms.
● Employee health and safety vary with the type of industry, type of occupation involved,
and personal and human characteristics.
KEY TERMS USED IN THIS CHAPTER
401(k) retirement plans permit workers to place up to a certain amount of their wages each year in a tax–
deferred retirement savings plan.
Affirmative action programs (AAPs) provide guidelines to help firms eliminate discrimination against
women and minorities.
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A commission is incentive compensation directly related to the sales or profits achieved by a salesperson.
Cross-training involves workers learning many job skills so they are more versatile.
A defined-benefit plan is a pension plan whereby the amount an employee is to receive at retirement is
specifically set forth.
The Family and Medical Leave Act requires employers with 50 or more employees to provide up to 12
weeks of unpaid leave for births or adoptions, and to care for sick children, spouses, or parents.
Incentive wage is extra compensation paid for all production over a specified amount.
The in-depth, pre-employment, or diagnostic interviews are detailed, probing, and penetrating interviews
seeking to determine the applicant’s character and other aspects of personality.
Internship training combines OJT with learning at a cooperating school or college.
The Occupational Safety and Health Administration (OSHA) establishes specific safety standards to en-
sure, to the extent feasible, the safety and health of workers.
On-the-job training (OJT) or on-the-job learning (OJL) has the worker actually performing the work,
under the supervision of a competent trainer.
A polygraph is an instrument for simultaneously recording variations in several different physiological
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Recruitment is reaching out to attract applicants from which to choose one to fill a job vacancy.
Repetitive-stress injuries (RSIs), or cumulative trauma disorders (CTDS), are muscular or skeletal inju-
ries to the hand, wrist, or other areas that bear the brunt of repeated motions.
Selection involves choosing the applicant who has the qualifications to perform the job.
Social Security is a federal program that provides support for the retired, widowed, disabled, and their
dependents.
NOTES FOR DISCUSSION QUESTIONS
1. What external sources are usually used by small businesses for finding new employees?
Many small firms keep a list of former employees as a potential external source of trained work-
2. What are some advantages and disadvantages of filling job openings from within the company?
Some advantages of hiring from within are that it raises morale and improves the motivation of
employees. Upgrading, transferring, and promoting make for teamwork and high performance. The inter-
3. Distinguish among upgrading, promoting, and transferring employees.
Upgrading means increasing the skills and abilities of the present job holder through education,
training, and/or development so that the person can satisfactorily perform a job that may have become
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4. Describe the methods used to gather information about prospective employees.
The amount of information you need to know about an applicant depends on the type of employee
being recruited. Preliminary screening can be done in a formal interview or informally through reviewing
5. What are the primary methods used to train employees? Explain each.
The primary methods of training employees are on-the-job training, apprenticeship training, in-
6. What should you look for in a potential manager?
The best non-managerial performers may not be good managers, because the skills needed at the
7. How do EEO laws affect recruiting and selecting employees?
EEO laws affect all aspects of human resource, but especially the area of recruiting and selecting.
Employers must be careful not to discriminate against anyone because of race, creed, color, religion, na-
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8. What agencies enforce EEO laws? How do they enforce them?
The Equal Employment Opportunity Commission (EEOC), the primary enforcing agency, re-
9. What are some factors that affect the amount and form of compensation paid to employees?
The Fair Labor Standards Act of 1938 requires that employees be paid the minimum wage for all
hours of work up to 40 hours a week. Above 40 hours, they must be paid one-and-a-half times their
hourly rate of pay. The Equal Pay Act of 1963 requires that women be paid the same rate as men for do-
NOTES FOR CASE QUESTIONS
CASE 10.1: The Case of Sam Sawyer
1. What does the case show about the need for management emphasis on safety?
There had been three cases of minor eye irritation resulting from backdrafts of the light, fluffy
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2. How can you explain the workers’ lack of interest in their own safety?
3. What would you do if you were the supervisor?
The supervisor could counsel Sam Sawyer, impressing on him the precise danger posed by the
4. How would you explain it to an OSHA inspector?
Explaining to an OSHA inspector that you cannot get compliance from employees will not help
5. What does this case illustrate about the role of informal leaders?
can have a great impact, positively or negatively, on other employees.
BONUS EXERCISE
10.1 Expanding the Workforce
This exercise explores how a company analyzes its human resource needs and makes decisions
about future needs. You can use Handout 10-A Expanding the Workforce: Plan and Handout 10-B Ex-
panding the Workforce: Worksheet on the following pages with this exercise.
HANDOUT 10-A
Expanding the Workforce: Plan
You are the human resource manager for Kaiser Electronics, Inc. Kaiser is considering expanding
its operations in order to double its current $1.8 million in sales in the next year. This means production
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Two additional sales representatives
Two additional clerical workers (both Level 6)
1. What will be the projected annual payroll cost?
2. If Kaiser does double its sales, what percentage of sales will payroll be next year? What percent-
age is it today?
3. Would you recommend the expansion? Why or why not?
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HANDOUT 10-B
Expanding the Workforce: Worksheet
FUTURE PAYROLL ESTIMATES
POSITION
PAY
SCALE
PRESENT
STAFF
PRESENT
PAYROLL
PROJECTED
STAFF
PROJECTED PAY-
ROLL
MANAGEMENT
Level 24
Level 18
$65,000
$45,000
1
1
$65,000
$45,000
_________
_________
_______________
_______________
SALES
Level 10
$30,000
5
150,000
_________
_______________
TOTALS
36
_________
_________
_______________
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Handout 10-C
Workplace Emergency
As workplace violence becomes more common, it is imperative to have a plan. Calm is difficult to main-
tain, but panic escalates these situations. Develop something that employees will have in their heads to
do, and train in this area often. Post exit maps and emergency procedures in restroom and break room.
Chapter 10-D
Repetitive Stress and other Injuries
Always of course, stock a first aid station, along with instructions. If possible, have employees
attend a Red Cross CPR course. At least one person on your staff should be able to handle an
emergency until the paramedics arrive.
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Prevention is the best treatment for any accident or illness. It is easier to provide the needed
items when you set up your workplace. Put mats in areas where people have to stand for long pe-
riods of time. Provide back braces for heavy duty lifting. Back braces help but need to be accom-
panied by proper lift training. A 20 pound lift while twisting from the waist can tear muscles.
Post safety posters in restrooms and /or break room.