What is an example of indirect compensation when it comes to rewards that are given to employees?

What are the two major activities involved in the planning function of human resource management?

1. strategic planning
2. short- and medium-range planning

Strategic objectives may include:

increasing market share, revenue growth, product or service diversity, profit margins, and planning for financial obligations, etc

What does staffing involve?

1. recruiting job applicants (also known as candidates)
2. Selecting the most appropriate applicants for the available jobs.

Why is recruiting an extremely important HR function?

If organizations don't attract a wide range of candidates, they will be less likely to successfully fill organizational needs.

What are common selection techniques?

1. obtaining completed application forms
2. interviewing candidates
3. reviewing education and formal training verifications
4. administering various formal and informal tests to determine fit and potential with the organization

What is the goal of the selection process?

To create a match between a candidate's ability and the requirements of the job

Define direct compensation

rewards that are directly linked to performance on the job

Define indirect compensation

compensation that is given simply for being a member of the organization

Define A performance appraisal
(also known as a performance review, performance evaluation, or career/development discussion)

a method by which an employee's job performance is evaluated

What are the eight separate HR functions and activities

1. planning
2. staffing
3. compensation/motivation
4. performance appraisal
5. training and development
6. improving the workplace
7. relationship building
8. globalization

True or False: HR policies must work in compliance with the organization's overall strategy?

Answer: True

In order to help the firm achieve its organizational and strategic goals, human resource (HR) policies and practices must be congruent with the organization's overall strategy.

Which of the following is NOT a function of Human Resource Management?
A. Compensating and motivating employees
B. Planning HR needs
C. Staffing the organization's needs
D. Appraising client behavior

Answer: Appraising client behavior

Human resource management is responsible for the recruitment, selection, training, and motivation of the organization's employees. Human resource management (or HRM) is therefore concerned with the fundamental task of defining and analyzing jobs in organizations.
Other HR tasks include:
* Planning human resource needs within the organization
* Staffing the organization's needs (once those needs have been identified)
* Compensating and motivating employees
* Appraising employee behavior and providing effective and constructive feedback
* Enhancing the human potential within the firm
* Improving the workplace environment and using the human resource capital within the organization to reach strategic goals
* Maintaining effective work relationships
* Globalizing the human resource management function within the firm

What is an example of indirect compensation when it comes to rewards that are given to employees?
A. Rewards that are linked to the performance on the job
B. Rewards that are given for employee of the month
C. Rewards that are given for simply being a part of the organization
D. Rewards that are only given to managers or above

Answer: Rewards that are given for simply being a part of the organization

Compensation that is given simply for being a member of the organization is often referred to as indirect compensation. Once employees are on the job, it becomes necessary to determine how well they are doing and to reward them accordingly. Although rewards based on performance can increase an employee's motivation to perform, other forms of compensation are given simply for being a member of the organization. Those rewards that are directly linked to performance on the job are often referred to as direct compensation.

Performance appraisals are important for both measuring and monitoring an employee's contribution, but they are also often the basis for deciding what?

A. Whether or not to give promotions
B. Whether or not to implement certain HR strategies
C. Whether or not to implement certain retention strategies
D. Whether or not to change the management system

Answer: Whether or not to give promotions

Performance appraisals are frequently the basis for promotions, trainings and raises, as well as terminating employees. As such, it is critically important that they accurately reflect the performance of employees.

When working to improve the organization's quality of work life, it is important to look at wAhich part of the organization?
A. The compensation packages offered by competitors throughout the world
B. The product materials in manufacturing
C. The physical health environment at work
D. The bonuses paid to the CEO

Answer: The physical health environment at work

When working to improve the organization's quality of work life, it is important to look at both the physical health and the safety environment of the organization as well as the psychological aspects. While in the past, the primary health and safety focus was on the physical work environment, a growing concern now exists about the psychological work environment. Many firms realize that their strategic and competitive advantage is directly impacted when the work environment of employees is poor.

What are the basic functions of HR management?

planning, organizing, staffing, leading, and controlling

Why are HR functions and activities important?

they serve to attract, retain, and motivate employees.

What are the four implicit HR objectives:

1. Improve productivity
2. Improve quality of work life
3. Ensure legal compliance
3. Foster ethical behavior

What are the two areas in which HR managers can make a significant contribution toward productivity improvements?

work organization and design

Define Quality of Work Life (QWL)

The quality of life experienced by employees in their work environment

Define Moral Philosophy

the principles, rules, and values that individuals use in deciding what is right or wrong

How do HR professionals create an organizational culture where ethical behavior is encouraged and cultivated?

1. Creating a positive work environment
2. Hiring ethical individuals
3. Providing ethical training
4. Labeling and modeling ethical behavior
5.Creating a well-defined code of ethics
6. Establishing an open-door policy
7. Providing an employee assistance program (EAP)

Define Business Ethics

The values and principles that are used to evaluate whether the collective behavior of members of an organization are appropriate.

What are the two separate categories of Ethical theories?

1. utilitarian theories
2. deontological theories

Define utilitarian theories

The theory of ethics that evaluates the rightness or wrongness of an action based on the consequences of that action

example: managers can decide what course of action to take by analyzing the results of each possible decision and choosing the option that has the most desirable results.

Define deontological theories

The theory of ethics that evaluates the rightness or wrongness of an action based on how well that action conforms to some rule or principle, regardless of the consequences

Note: Deontological theories do not focus on the results of an action, looking instead at whether an action is good in and of itself. Deontological ethics focuses more on moral obligations and responsibilities of individuals to do the right thing.

HR functions are important because they serve to attract employees (an explicit objective). HR also has a few implicit objectives. Which of the following is an implicit HR objective?

A. Improvement in retaining individuals
B. Improvement in developing individuals
C. Improvement of productivity
D. Improvement of wages

Answer: Improvement of productivity

HR functions and activities are important largely because they serve to attract, retain, and motivate employees. However, it is also widely acknowledged that by doing an effective job in realizing these explicit objectives, HR functions and activities can positively affect the bottom line. Conversely, a poor selection of an employee or a poorly designed program to maintain employee motivation renders the employee unsatisfied, and performance suffers. There are three implicit HR objectives: improvement of productivity, improvement of quality work life, and ensuring legal compliance.

Which position in the organization determines how important human resource management will be to that organization?

A. Middle managers
B. Top management
C. Front-line workers
D. Supervisors

Answer: Top management

Top management often determines how important HRM will be within the organization. If top management minimizes the importance of people and the HR department to the organization's overall success, line managers and others will do likewise. As a result, those in the HR department will likely only perform the most routine activities and resort to responding in a "reactive" manner to needs, rather than making "proactive" contributions. On the other hand, when top management relies on HR to make strategies and other important decisions, others will follow, allowing HR the opportunity to contribute and help achieve organizational goals. As the world has become increasingly complex, managers and others have come to realize the important and critical role of HR.

In the early 1900s, what was Human Resources primarily concerned with?

A. Being a protector
B. Being a strategic partner
C. Engaging in training and development
D. Distributing paychecks and working with unions

Answer: Distributing paychecks and working with unions

The basic functions for HR management include planning, organizing, staffing, leading, and controlling. In the early 1900s, HR was primarily focused on distributing paychecks and hiring employees. The 1930s saw the passage of pro-union legislation as personnel staff assumed roles to protect their organizations in interactions with unions. After President Johnson signed the Civil Rights Act of 1964, personnel took on a whole new role as the protector. Today, the HR practitioner is becoming increasingly important as a strategic partner.

Which of the following is not a way HR professionals can create an ethical organizational culture?

A. Creating a positive work environment
B. Constant monitoring of employees
C. Hiring ethical individuals
D. Establishing an open-door policy

Answer: Constant monitoring of employees

The seven ways HR professionals can create an ethical organizational culture are: 1) creating a positive work environment, 2) hiring ethical individuals, 3) providing ethical training, 4) labeling and modeling ethical behavior, 5) creating a well-defined code of ethics, 6) establishing an open-door policy, and 7) providing an employee assistant program (EAP).

What is one way that HR can improve the quality of life for most employees in today's world?

A. Be very detailed in defining employee tasks and responsibilities, creating a very structured work environment
B. Increase the amount of control employees have over their own jobs
C. Let the employees be less involved in their work
D. Give the employee a specific job without letting them expand beyond that

Answer: Increase the amount of control employees have over their own jobs

Most employee today desire more self-control and a chance to make a greater contriburion to the organization. Many employers are convinced that by providing opportunities for employees to realize these aspriations, employees will be more content and, as a result, the quality of work life within the organization will improve.

Define Strategy

The plan an organization has to compete in a marketplace. A strategy can consist of products and services, employees, and the organization's goals among other things

Refers to how an organization is going to compete

What are the example of indirect compensation?

Indirect compensation is a type of payment to an employee that doesn't involve directly paying a wage or salary. Examples of an indirect compensation arrangement include offering your employees health insurance, life insurance, or employee stipends (also called fringe benefits).

What are indirect compensations?

Indirect compensation refers to the various forms of non-monetary pay offered to employees, that can include everything from common contractual features to useful, attractive benefits.

What is the most common indirect compensation?

9 examples of indirect compensation.
Pension plans. Companies manage pension plans on behalf of their employees to ensure professionals have financial security when they retire. ... .
Child care benefits. ... .
Company cars. ... .
Benefits. ... .
Overtime pay. ... .
Annual leave. ... .
Educational benefits. ... .
Company technology..

When an employee is given some indirect rewards for their association with the company it is known as?

This type of benefit is often termed as “perks” or “employee benefits”. It is the non-monetary benefit offered to an employee."