HRM Study Guide

HRM Study Guide - Questions Chapter 2 will help managers...

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Unformatted text preview: Questions Chapter 2 will help managers answer • How can HR measures improve talent-related decisions in organizations? • What factors should I consider to calculate the cost of employee turnover? • What’s the business case for work-life programs? • Is there evidence that high-performance work policies are associated with improved financial performance? How do we cost HRM? • Direct measures refer to the actual costs, such as the accumulated, direct cost of recruiting. • Indirect measures do not deal directly with cost; they are usually expressed in terms of time, quantity, or quality. • Indirect measures have value in and of themselves, and they also supply part of the data needed to develop a direct measure. Controllable Costs and Uncontrollable Costs • To the extent that people leave for reasons of “better salary,” “more opportunity for promotion and career development,” or “greater job challenge,” the costs associated with turnover are somewhat controllable. • If turnover is due to such factors as death, poor health, or spouse transfer, the costs are uncontrollable. Behavior Costing • The behavior-costing approach to employee attitude valuation is based on the assumption that measures of attitudes are indicators of subsequent employee behaviors. • Behaviors can be assessed using cost-accounting procedures, and they have economic implications for organizations. Employee Attitudes • Attitudes are internal states that focus on particular aspects of or objects in the environment. • Elements include cognition, emotion, and action Examples of Attitudes • Job Satisfaction – is a multidimensional attitude; it is made up of attitudes toward pay, promotions, coworkers, supervision, the work itself, and so on. • Organizational Commitment – a bond or linking of an individual to the organization that makes it difficult to leave. Sears applied behavior-costing methodology to study the relationship between employee attitudes, customer behavior, and profits • They found how employee attitudes drove not just customer service, but also employee turnover and the likelihood that employees would recommend Sears. • An employee’s ability to see the connection between his/her work and the company’s strategic objectives was a driver of positive behavior. Process: Impact on Mangers’ Behavior and on the Firm • Sears now bases all long-term executive incentives on the TPI (total performance index). • Across other types of organizations, the direction of causality may not be as clear as it is in retailing. • It may well be that the financial performance of a firm predicts satisfaction with security and overall satisfaction, rather than vice versa. Training Costs • Information Literature • Instruction in a formal training program • Instruction by employee assignment Absenteeism : Any failure of an employee to report for or to remain at work as scheduled, regardless of reason • In 2005, the cost of unscheduled absences in U.S. workplaces was about $660 per In 2005, the cost of unscheduled absences in U....
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This note was uploaded on 04/02/2012 for the course MANAGEMENT 330 taught by Professor Dr.suzannegosdenkitchen during the Spring '09 term at WVU.

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HRM Study Guide - Questions Chapter 2 will help managers...

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