Table of Contents

Chapter 1 - Introduction to Human Resources. 1

Topic Overview.. 1

Human Resources Job Description. 2

The Feedback Role. 3

The Predictive Role. 4

The Human Capital Reallocation Role. 4

The External Role of Human Resources. 4

Human Resources Organizational Positioning. 5

Human Resources Shared Services. 6

Employee Leasing. 6

Chapter 2 - Human Resources Strategy. 9

Match to Corporate Strategy. 9

Match to Corporate Culture. 10

Job Rotation Strategy. 10

Contract Workers. 10

Incentives Linkage to Strategy. 11

Top Talent Management 12

Organizational Structure. 12

Hierarchical Organizational Structure. 12

Decentralized Organizational Structure. 14

Divisional Organizational Structure. 15

Organization Branding. 16

Chapter 3 - Job Analysis. 19

The Need for Job Descriptions. 19

Job Analysis. 19

Job Titles. 21

Success Attributes. 22

Job Sculpting. 22

The Employer-Employee Alliance. 22

Job Analysis Frequency. 23

Chapter 4 - Workforce Planning. 26

Overview of Workforce Planning. 26

Attrition Planning. 27

Skill Matching. 28

The Overtime Conundrum.. 28

Recruiting Time. 29

The Ramp-up Interval 29

The Relocation Option. 30

Outsourcing. 30

Technology Innovations. 31

Projects versus Full-Time Employment 32

Organizational Structure. 32

Training Considerations. 32

Downturn Considerations. 33

Acquisition Considerations. 34

Divestiture Considerations. 34

Workforce Planning Effectiveness. 34

Chapter 5 - Recruitment 37

Recruitment Alternatives. 37

Job Specifications. 37

Recruitment Timing. 38

Recruitment Principles. 38

Recruitment Marketing. 40

Broadcasting. 41

Refining the Broadcasting Concept 42

Broadcasting for Bulk Hiring. 42

Blind Ads. 43

Newspaper/Magazine Ads. 43

The Search Firm.. 43

Internal Hiring. 44

External Hiring. 46

The Part-Time Staffing Option. 46

The Internship Option. 47

College Recruiting. 48

The Return-to-Work Option. 48

Poaching. 49

The Ex-Offender Option. 50

Communications with Applicants. 50

The Recruitment Database. 51

Recruitment Management 51

The Recruitment Feedback Loop. 52

Chapter 6 - Applicant Evaluation and Selection. 54

The Job Application. 54

Resume Analysis. 55

Telephone Screening. 56

Interview Preparation. 57

Conducting the Interview.. 58

Executive Interviews. 61

Tryouts. 61

Applicant Testing. 62

Criteria Analysis. 63

Reference Checks. 63

Additional Searches. 65

Applicant Evaluation. 65

The Job Offer. 68

Speed. 68

Verbal Offer 68

Offer Deadline. 68

Negotiations. 68

Offer Letter 69

The Employment Contract 69

The Rejection Letter. 70

The Feedback Loop. 70

Chapter 7 - Employee Assimilation. 73

Prior to First Day. 73

First Day. 73

General Employee Orientation. 74

Departmental Employee Orientation. 75

Employee Manual 76

Manager Involvement 77

Periodic Reviews. 77

Chapter 8 - The Work Environment 80

Flexible Work Hours. 80

The Compressed Work Week. 80

Shift Trading. 81

Job Sharing. 81

Working from Home. 81

Snowbird Seasonal Employment 83

Permanent Part-Time Work. 83

Alternative Location Arrangements. 84

The Work Space. 84

Rule Minimization. 84

Management Training. 85

Employee Recognition. 85

Feedback Loop. 86

Chapter 9 - Career Development 88

The Need for Career Development 88

The Development Plan. 88

Alternative Career Paths. 90

Mentoring. 90

Reverse Mentoring. 92

Job Shadowing. 92

The Leadership Track. 93

Job Rotation. 93

Coaching. 93

Chapter 10 - Employee Training. 96

The Need for Training. 96

Types of Training. 97

Fine-Tuning Training. 100

Employee Turnover and the Training Investment 101

Measuring the Results of Training. 102

The Administrative Side of Training. 102

Chapter 11 - Succession Planning. 105

The Succession Planning Concept 105

The Pooling Concept 107

The Well-Rounded Candidate. 107

The Insertion of Outsiders. 107

Employee Departures. 108

Chapter 12 - Performance Evaluation. 111

The Performance Evaluation Process. 111

The Traditional Annual Review.. 111

Improvement of the Annual Review.. 112

Immediate Feedback. 112

Continual Goal Setting. 113

Improve Performance Goals. 113

Common Review Period. 113

Time Allowance. 114

Separate the Compensation Discussion. 114

Balanced Appraisal 114

Two-Way Conversation. 114

Initial Focus on Positive Aspects. 115

Emphasis on Results. 115

Adjust Feedback to the Situation. 115

Discussion of Failures. 115

Prepare Improvements List 116

End on Positive Note. 116

Dealing with Hostility. 116

Consistent Template Usage. 116

Use Separate Documentation of Poor Performance. 117

Performance Appraisal Methods. 117

Rating Scales. 117

Essay Reviews. 117

Self-Appraisal 118

Behavioral Expectations. 118

Paired Comparisons. 118

Critical Incidents Analysis. 119

360-Degree Reviews. 119

Management by Objectives. 120

General Appraisal Issues. 121

The Nature of Performance Criteria. 121

Performance Improvement Plans. 122

Chapter 13 - Termination of Employment 124

Firing Employees. 124

Guarding Against Lawsuits. 126

The Downsizing Process. 127

Outplacement Firms. 128

The Voluntary Termination. 128

Retirement Options. 128

The Exit Interview.. 129

Chapter 14 - Employee Compensation. 132

Compensation from the Human Resources Perspective. 132

The Difference between Salaries and Wages. 134

The Work Week. 136

Compensation Development 136

Setting Compensation Levels. 136

Setting Pay Ranges. 137

Salary Compression. 139

Unstructured Compensation. 139

Broadbanding. 139

Individual Compensation Considerations. 139

Expatriate Compensation. 140

The Outcome of Minimal Compensation. 141

The Cash or Stock Option Alternative. 141

Commission Plans. 141

Commissions Based on Cash Receipts. 143

Final Commission Calculations. 144

Hourly Rate Plan. 144

The Minimum Wage. 145

Piece Rate Pay. 145

Overtime Pay. 146

Compensation for Travel Time. 148

Salaries Paid for Partial Periods. 148

Bonus Plans. 149

Golden Parachute Payments. 150

Chapter 15 - Employee Benefits. 152

Adoption Assistance. 152

Athletic Facilities. 152

Cell Phones Provided by Employer. 153

Child Care. 153

De Minimis Benefits. 153

Disability Insurance. 154

Educational Assistance. 154

Employee Assistance Programs. 155

Employee Discounts. 155

Flexible Spending Accounts. 156

Health Savings Account 160

Life Insurance. 160

Loans to Employees. 162

Lodging on Business Premises. 162

Meals. 163

Medical Insurance. 164

Medical Insurance - COBRA.. 166

Medicare. 167

Moving Expense Reimbursement 168

No-Additional-Cost Services. 168

On-Site Services. 170

Pension Plans. 170

Defined Contribution Plan. 170

Defined Benefit Plan. 172

Personal Retirement Account 172

Paid Time Off 173

Retirement Planning Services. 174

Sabbaticals. 174

Sick Leave. 174

Social Security. 175

Stock Options. 175

Phantom Stock. 177

Stock Purchase Plans. 177

Transportation Benefits. 178

Tuition Reduction. 179

Unemployment Compensation. 179

Vacation Benefits. 180

The Amount of Vacation Time. 180

Use it or Lose it Provision. 181

Earned Vacation Time Reporting. 181

Wellness Programs. 182

Workers Compensation Insurance. 182

Working Condition Benefits. 183

Vehicles. 183

Education. 184

Outplacement Services. 184

Other Benefits. 185

Benefit Authorization Form.. 185

Taxability of Benefits. 186

Benefits Plan Administration. 187

Communication of the Benefits Plan. 188

Chapter 16 - Cost Reduction Concepts. 191

Proactive Hiring Solutions. 191

Temporary Cost Reductions. 192

Permanent Cost Reductions. 194

Productivity-Based Solutions. 196

Benefit Cost Sharing. 197

Benefit Reductions. 198

Benefit Limitations. 199

Benefit Swaps. 199

Benefit Aggregation Concepts. 200

Benefit Terminations. 200

Workers Compensation Issues. 201

Corporate Wellness Programs. 201

Eligibility Audits. 202

Employee Existence Audits. 203

Benefit Cost Administration. 203

Other Cost Management Concepts. 203

Total Labor Cost Analysis. 204

Timing of Compensation and Benefit Changes. 204

Chapter 17 - Human Resources Budgeting. 207

The Compensation Budget 207

The Treatment of Hourly Pay and Overtime. 210

The Benefits Budget 211

The Headcount Budget 212

The Link between Budgets and Bonus Compensation. 213

The Direct Labor Budget (Traditional Method) 215

The Direct Labor Budget (Crewing Method) 216

The Direct Labor Budget for Manufacturing Cells. 217

The Cost of Direct Labor. 218

Anomalies in the Direct Labor Budget 218

Compensation without a Budget 219

Chapter 18 - Labor Unions. 223

The Labor Union Concept 223

Collective Bargaining. 224

The Two-Tier Wage System.. 226

Unfair Labor Practices. 226

Grievances. 227

Strikes. 228

Strategy and Tactics: Union Perspective. 228

Strategy and Tactics: Company Perspective. 229

Industrial Relations. 230

Chapter 19 - Discrimination Issues. 233

The Protected Class Concept 233

Categories of Employment Discrimination. 233

Bona Fide Occupational Qualifications. 234

Equal Employment Opportunity. 235

Equal Employment Opportunity Commission. 235

The Employer Information Report EEO-1. 236

Retaliation. 238

Affirmative Action. 238

Interviewing Issues. 239

Applicant Testing. 240

Medical Examinations. 240

Genetic Tests. 240

Polygraph Tests. 241

Credit Checks. 241

Sexual Harassment 241

Expansion of the National Origin Protected Class. 242

The English-only Rule. 242

Ex-Offender Hiring. 243

The Flextime | Part Time Conundrum.. 243

Termination Decisions. 243

Chapter 20 - Laws Impacting Human Resources. 245

Anti-Discrimination Laws. 245

Age Discrimination in Employment Act (1967) 245

Americans with Disabilities Act (1990) 246

Civil Rights Act (1964) 247

Equal Pay Act (1963) 247

Genetic Information Nondiscrimination Act (2008) 247

Lilly Ledbetter Fair Pay Act (2009) 247

Older Workers Benefit Protection Act (1990) 248

Pregnancy Discrimination Act (1978) 248

Uniformed Services Employment & Reemployment Rights Act (1994) 249

Consolidated Omnibus Budget Reconciliation Act (1986) 249

Employee Retirement Income Security Act (1974) 249

Fair Labor Standards Act (1938) 250

Family and Medical Leave Act (1993) 250

Federal Unemployment Tax Act (1939) 251

Immigration Reform and Control Act (1986) 252

Rehabilitation Act (1973) 255

USA Patriot Act (2001) 255

Worker Adjustment and Retraining Notification Act (1988) 255

Chapter 21 - Human Resources Metrics. 257

Overview of Human Resources Measurements. 257

Position Fulfillment Speed. 257

Unfilled Requisitions Ratio. 259

Recruiter Effectiveness Ratio. 260

Yield Rate. 261

Selection Ratio. 262

Acceptance Rate. 262

Intern Conversion Ratio. 263

Cost per Hire. 264

Employee Replacement Cost 265

Accession Rate. 266

Employee Turnover. 266

Absenteeism and Sick Leave Usage. 267

Annualized Compensation per Employee. 268

Net Benefits Cost per Employee. 269

Sales per Person. 270

Profit per Person. 271

Administrative Staff Ratio. 272

Ergonomic Injury Rate. 273

Outsourcing Cost Effectiveness. 274

General Management Measurements. 275

Chapter 22 - Records Management 277

Human Resources Records. 277

Records for Warnings. 279

Records for Contingent Workers. 280

Record Security. 280

Records Destruction. 280

Answers to Chapter Questions. 283

Glossary. 318

Index. 324

 

Final Examination ..................................................................................................................................330