Managerial perspective: Global competition and technological advances have changed the rules of
competition forcing many firms to become increasingly productive with smaller workforces. Managers
must not only develop skills to help an employee who leaves the company voluntarily but they must also
aid employees who have been fired for cause or are being let go for economic reasons

Employee separation: An employee separation occurs when an employee ceases to be a member of an
organization. The turnover rate is measured of the rate at which employees leaves the firm.
The cost of employees separation: The cost of turnover can differ across organizations and some costs
associated with turnover can be difficult to estimate.

 Selection cost: Are associated with selecting, hiring, and placing a new employee in a job,
interviewing the job applicant includes the cost associated with travel to the interview site and the
productivity lost in organizing the interviews and arranging meetings to a make selection decision.

 Training costs: Most new employees need some specific training to do their job. Training costs
also include the costs associated with an orientation to the companys values and culture.
 Separation costs: A company incurs separation costs for all employees who leave, wether or not
they will be replaced. The largest separation cost is compensation in terms of pay and benefits

1. The benefit of employee separation:
2. Although many people see separations negatively, they have several benefits. When turnover rates
   are too low, few new employees will be hired and opportunities for promotion are sharply
   curtailed
3. Reduced labor costs: An organization can reduce its total labor cost by reducing the size of its
   workforce. Although separations costs in a layoff can be considerable, the salary savings resulting
   from the elimination of some jobs can easily outweigh the separation pay and other expenditures
   associated with the layoff
4. Replacement of poor performance: An integral part of management is identifying poor
   performance and helping them to improve their performance
5. Increased innovation: Separations create advancements opportunities for high performing
   individuals

Types of employee separations
They can be divided into two categories

 Voluntary separations: Occur when an employee decide, for personal or professional reasons to
end the relationship with the employer. The decision could be based on the employee obtaining a
better job

 Involuntary separations : Occurs when management decides to terminate its relationshipwith an
employee due to economic necessity or a poor fit between the employee and the organization.
Involuntary separations are the result of very serious and painful decisions that can have

Several important questions that managers and Hr personnel must face in designing compensation
programs.
 Who should be responsible for making salary decisions?
 Should pay be dictated by what other employers are paying?
 What types of activities should be rewarded with higher salaries?
 What criteria should be used to determined salaries?
 Which employees group should receive special treatment when scarce pay resources are
allocated?
 How does an employer balance ethical concerns for employees welfare versus the need to
save on labor cost?

The pay system is one of the most important mechanisms that firms and managers can use to attract,
retain and motivate competent employees to perform in ways that support
organizational objectives.

What is compensation? Total compensation has three components

 Base compensation: the fixed pay an employee receives on a regular basis either in
the form of a salary.

 Pay incentives: programs designed to reward employees for good performance
 Indirect compensation: the costs of which approach percent of workers compensation packages
Internal versus external equiality:
Fair pay is pay that employees generally view as equitable. There are two forms of pay equity. Internal
equity refers to perceived fairness of the pay structure within a firm. External
equity refers to the perceived fairness of pay relative to what other employees
are paying for the same type of labour.

The distributive justice model: Holds that employees exchange their contributions or input to the firm for

a set ofoucomes.

The labor market model: The wage rate for any given occupation is ste at the point where the supply of

labour equals the demand for labor in the marketplace
Balancing equity: A firm should try to establish both internal and external pay equity.
Fixed versus variable pay:
Firms can choose to pay a high proportion of total compensation in the form of base pay or in the form
of variable pay that fluctuates according to some pre-established criterion

Human resources Summary 2 (1)
BUS1LF101
Haaga-Helia UAS/Universidad MondragónMéxico
Santiago García Fernández March,02, 2020

Example
Making wage concession at airlines Frontier airlines which employs 6,000 aviation profesionals made cuts
of up to 20 percent in wages and benefit for the executive management team
during 2009-2011 and has asked all of its employees to make wage and benefit
concessions in the upcoming year similarly United Airlines has cut pilots pay
by 12 percent and flight aattendant pay by 9.5 percent in addition to reducing
benefits. United has joined the ranks of American airlines continental which
have all made salary and benefit costs

 Pension going up in smoke: It used to be that pension were a sacred cow, particularly in the public
sector where employees often accepted lower salaries in exchange for generous pension plans
 Medical doctors Not long ago medical doctors were at the top of all profesions in terms of
earned income However their enviable position has eroded over the years due to shrinking
payments by private insurance companies
 Documenting pay cuts arounf the world: A quick search through google at the time of this writing
shows numerous web sites documenting hundreds of organization in the United States and
abroad that have implemented pay cuts

Rewarding performance

Unethical behaviors By creating pressure to produce and to keep score incentives may induce
employees to engage in undesirable behaviors to cut corners deceive misinform hide negative
information, take more credit than they deserve.
Unfortunately, employee cynicism about company ethics and senior leadership are also on the
rise. A survey showed that only 50 percent of employees believe their top executives had high
integrity and aproximely the same percentage shared similar feelings about the entire
organization. As a result employees unconsciously blame their employer for their own
questionable behaviors or ethical lapses in order to meet incentive criteria rather than take full
responsibility for their actions.

Lack of control
Factors beyond an employee’s control include the supervisor , performance of other work group
members the quality of the materials the employee is working with, working conditions the
amount of support from management and environmental factors.
Gainsharing for doctors: Because doctors might be tempted to use more expensive procedures
than are necessary, some insurance companies are providing incentives to minimize this problem.
They are doing this through gainsharing plans.

Assesing employee performance is one of the thorniest tasks a manager faces, particularly when
the assessment is used to dispense rewards. At the employee level the appraiser must try to
untangle individual contributions from those of the work group while avoiding judgements based
on a personality bias likes and dislikes and political agendas.
Pay for performance system may lead to greater productivity but lower job satisfaction. Some
research suggest that the more pay is tied to performance the more the work unit begins to
unravel and the more unhappy employees become
Pay for performance programs may push employees to the point of doing whatever it takes to get
the promised monetary reward and in the process may stifle their talents and creativity

Properly designed ´pay for performance systems present managers with an excellent opportunity
to algn employees interest with those of the organization

Chapter 11 Santiago García
Link pay and performance appropriately
In a few instances managers can justify paying workers according to a preestablished formula or
measure. Traditional piece rate system in which workers are paid per unit produced, represent the
tightest link between pay and performance.

Pay performance programs are not likely to achieve the desired results unless they are
accompanied by complementary HRM programs. For instance performance appraisals and
supervisory training usually play a major role in the eventual success or failure of a pay
performance plan

Work is engaged by choice, with employees providing labor for wages, safety and health
regulations help assure that the choice to provide labor does not involve unnecessary risks.
 The managerial perspective: An organizational culture that
places a greater value on speed or saving money than on
safety can result in workplace accidents .
 The stated goals of the workers compensation law are:
 Providing prompt, sure, and reasonable medical care to victim and income to both victims and
their dependents
 Providing a no fault system in which injured workers can get quick relief without under-taking
expensive litigations
 Encourage employers to invest in safety
 Promoting research on workplace safety
Keep em honest preventing workers comp fraud:
The numbers of worker’s compensation claim have been going down. But the percentage of claims
that are considered questionable has increased. Questionable claims are those that are given
closer review and investigation due to the possibility of fraud.
As a manager you have the responsibility to take steps to limit fraudulent worker’s compensation
claims and assure that your workers perceive that there is a level playing field in regards to such
claims.
Keep the workplace safe: A safe work environment lowers the chance of accidents. A safe
workplace can also make it more difficult for someone to fake an accident

Educate employers about the worker’s compensation system: Workers should understand the
purpose of the system and how it supports workers with legitimate injury claims. However, they
should also understand that there are cost to the employer and that abuse of the system is not a
free benefit

Communicate with the claimant and with others familiars with the incident: Sharing genuine
concern for the employees wellbeing is an important management action.

Stay in contact with employees on worker’s compensation leave: Let injured employees know that
you are looking forward to their return to work. Being proactive in encouraging and helping

Chapter 16 Santiago García
employees return to work can help to maintain a good relationship with workers who had made a
legitimacy injury claim.

Occupational standards: Which cover hazards ranging from tools and machinery safety to
microscopic airborne matter, can be exceedingly complex and detailed

Variances employers Employers may ask OSHA for a temporary variance from a standard when
they cannot comply with a new standard by its effective date. Osha may grant a permanent
variance from a particular standard when an employer can demonstrate that it has in place
alternatives that protect employees as effectively as compliance with the standard would.
Effectively managing workplace safety and health requires far more than reducing the numbers of
job-related accidents and injuries. In practice, managers must deal with a variety of practical , legal
and ethical issues often give rise to legal question.

Violence in workplace: Nonlethal violence is a much more common workplace threat than
homicide. Acording to to Bureau of Justice statistics from 1993 2000 the average annual number
of people who were victims of violence crimes while while working was 1.7 million

Example :
Approximately half of U.S organizations with 1,000 or more employees report the occurrence of
workplace violence. However approximately 70 percent of U.S companies do not have policies
regarding workplace violence

All employees has rights that are based on laws, company employment polices and traditions. Employees also have rights that support their authority.

• Managerial perspective:

1. Developing and enforcing polices that inform employees of their rights and responsibilities.
2. Making managers aware of employees rights and managers obligations to employees.
3. Acting as an employee advocate specially in cases where a supervisor misunderstands or disregards discipline policy.

But managers are the only perdons that truly can make a difference. Managers who act with respecto into their employees are more likely to have employees with higher levels or moral and job satisfaction than managers who ignore this rights.

• Statuory rights: This rights are protected by specific law enacted by goverment, a key rights of employees is protection from discriminatory or protection for unsafe or unhealthy working conditions.
• Contractual rights: Based on the law of contracts. A contract is a legally binding promise between two or more component parties. Both employers and employees have the right and obligations to each other when they enter into a contract. Some industries have standard contract provision to protect their interest more fully.Some times employers and employees enter in to a contract even though no formal contract exist, in this case the employer and the employee are said to have entered into an implied contract.
• Other rights: Employees often expect certain other rihts in addition to statutory and contract rights, these include a right to to ethical treatment and limited rights to free speech and privacy (employees expect to be treated fairly and ethically in return for providing their employer with a fair and reasonable amount of work )

1. Take actions that develop trust, such as sharing useful information and making good on commitments.
2. Act consistently so that employees are not surprised by unexpected management actions or decisions.
3. Be truhtfull and avoid withe lies and actions designed to manipulate others by giving a certain false impression.
4. Demonstrate integrity by keeping confidence and showing concern for others.
5. Meet with employees to discuss and define what is expected of them.
6. Ensure that employees are treated equitably, giving equilaty rewards for similant performance and avoiding actual or apparent special treatment of favorites.
7. Demonstrate respecte toward employees, showing openly that they care about employees and recognize their strenghts and contributions.

• Limited right to privacy: The right to privacy protects people from unreasonable or unwarranted intrusions into their personal affairs.
• Limited right to free speech: This is about most importantly in the right to privacy.
• Management rights: The right to run the business and to retain any profits that result. Management rights include the right to manage the workface and the rights to hire promote, assign, discipline and discgarge employees.
• Progressive discipline: The most commonly uesed form, consist of a series of management interventions that gives employeesoportunity to correct their behaviour before being discharged(warning steps)

1. Verbal warning: An employee who commits a minor violation receives a verbal warning from the supervisor and is told that if this problem continues within a specific time, period.
2. Written warning: The employee violates the same rule within the specified time period and now receives a written warning by his supervisor.
3. Discharge: The employee violates the rule one more time within the specified time period and is discharged.

• Basics standards of discipline:

1. Communication of rules and performance criteria
2. Documentation of the facts
3. Consistent response to rule violations

• The just cause standard of discipline

1. Notifications
2. Reasonable rule
3. Investigation before the discipline
4. Fair investigation
5. Prrof of guilt
6. Absence of discrimination
7. Reasonable penalty

The managerial perspective: Efective performance appraisal requires managers to measure and improve performance. If performance is to be improved, the manager needs to have a good understanding of the cause for a performance problem.(If the cause of a performance problem is not correctly diagnosed, the mistake can lead to a worker with reduced motivation and commitment.

Effective performance appraisal requires managers to measure and improve performance.If performance is to be improved, the managers needs to have a good understanding of the cause for a performance problem

What is performance appraisal:

• Identification: Means determining what areas of work the manager should be examining when measuring performance.
• Measurument: The centerprise of the appraisal system entails making managerial judgement of how good or bad employee performance was.
• Management: Is the overriding goal of any appraisal system. Appraisal should be more than a past-oriented activity that cryticized or praises workers for their performance in the preciding year.

The use of performance appraisal:

Organizations usually conduct appraisal for administrative or development purposes.Performance appraisal are used to administrative whenever they are the basis for a decision about the employees work conditions, including promotions, termination and rewards, developmant uses of appraisal.

Performance appraisal offers great potential for a variety of uses ranging from operational to strategic purpose. Performance appraisal can be the key to developing employees and improving their performance.

Identifying performance dimension:

The first step in the performance appraisal process is identyfing what is to be measured.

Measuring performance :

To measure employee performance, managers can asign numbers or a label such as excellent, good, average or poor. It is often difficult to quantify performance dimensions like creativity.

Organizational politics :

The goal of appraisal from a racional perspective utilty. The value of performance is relative to the political context and the supervisors goals.

The rational approach see supervisors and workers largely as a passive agents in the rating process: Supervisor simply notice and evaluate workers performance.

From a rational perspective the focus of appraisal is measurement. Supervisors are flesh and blood instrument who must be carefully trained to measured performance meaningfully.

Individual or group focus:

If the organization has a team structure, managers need to consider team performance appraisal at two levels.

The individual contribution measures could be developed with the imput of team members, a good starting point is the set of competencies for individual contribution to team performance identified in recent research.

Managing performance :

The effective management of human performance in organizations requires more than formal reporting and annueal rating .

Performance improvement:

Because formal appraisal interviews typically are conducted only once a year they may not always have substantial and lasting impact on workers performance, much more important that the annual interview is informal day to day performance management.

• Explore the causes of performance problem
• Develop an action plan and empower workers to reach a solution
• Direct communication at performance and provide effective feedback

Identifyng the causes of performance problems:

Performance can be the result of many factors, some of which are beyond the quite challenging. It is important that managers determine the causes of performance deficiency accurately, for three reasons:

• Determination of causes can influence how performance is evaluated
• Casual determination can be an unspoken and underlying source of conflict between supervisor and their workers
• The cause affects the type of remedy selected

Situational factors:

• Poor cordination of work activities among workers
• Inadequate information or instructor needed to perform a job
• Low-qulity materials
• lack of neccesary equipment
• Inability to obtain raw materials
• Inadeqaute financial resources
• Poor supervison
• Inadequate training
• Insufficient time to produce the quantity or quality of work required.

Training the workforce

• How can training keep pace with a changing organizational environment? Many training topics are provided online. As products, sales procedure and equipement change, online content can be easily created on change and disseminated to employees
• Should training take place in a classroom setting or on the job? Classroom training may lack realism and not be as effective as training that occurs while on the job.
• How can training be effectively delivered worldwide? Many of todays organizations conduct operations around the world. Consistent quality of products or service is critical to organizational survival in todays competitive markets

Training is often used in conjuction with development. The terms are not synonymous. Training typically focuses on providing employees with specific skills or helping them correct deficiencies in their performance.

Sabre employees create a profile that reflects their skills and job experience.Questions that an employee might ask about a problem or job situation are directed by the software to fellow employees who have relevant knowledge and experience.

Challenges in traing

• Is training the solution to the problem?
• Are the goals of training clear and realistic?
• Is traing a good investement?
• Will the training work?

Developing carrers

Despite the uncertain business environment carrer developments remains an important activity. It can play a key role in helping managers recruit and reatil the skilled commited workforce an orgaization needs to succed.

Many of todays organizations have concluded that employees must take an active role in planning and implementing their own personal development plans.

In terms of the fist stage(motivation), employees need to understand that taking on an international assignment will not in and of itself, resolve personal issues. Employees also need a realistic assesment of the international assignment.

Self-assesment: Is increasingly important for companies that want to empower their employees to take control of their carrers.

Carrer developments is generally seen as a positive way for companies to invest in their human resources. Employees with an extreme careerist orientation can become more concerned about their image than their performance and be poorer organizational citiziens.

Basic management implications for each career anchor

• Give the workers opportunity to develop work standards and to menthor others
• Give the worker opportunities to lead projects or teams
• Ask the worker to take on the role of an internal consultant and tackle a workplace problem
• Let the worker know that staying in his or her current position is an option.
• Give this workers new projects and let them develop ideas as an internal entrepeneur
• Offer the workers some responsability for a company program
• Offers this workers flexibility in their work schedule and the opportunity to work from home.

The competency model can be most useful for career development by focusing on the type of role the person desires, for example someone who aspires to be the leader of an enterprise may need to develop the highest competency levels in the area of leading others

• Understanding equal opportunity
• Laws has been updated to include new regulations that require the mandatory sexual harassement.
• New content has been added that explain how companies avoid age discrimination by redisigning jobs for older employees, so they can work part time jobs.
• How to avoid legal difficulties if companies need to stall an english-only rule for the communication at the workplace.
• Implications of having company policy that forbids employees from displaying visible tatoos at workplace.

Equal opportunity at work, based on

• national origin
• color
• race
• religion
• political beliefs
• sex
• age.

Examples:

• Union pacific respects differences, they have prohibit the discrimination of harassement of others. All their employess must be treated fairly and respectfully. No employee should take advantage pf another employee or costumer through actions such as manipulation, concealment, abuse of confidential information. Union pacific protected groups like of race, color, sex, national origin, disability or others.

• In a restaurant the manager told the employess to throw away every cv of muslim people, it was impossible to hired musslim people in the restaurant, because stereotypes of muslim people being rude with costumers, dirty at the time of cleaning work and problematic people with the other staff.

https://definitions.uslegal.com/e/equal-employment-opportunity-act/

https://up.jobs/why/eoe/index.htm

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