The functions of HRM 

(6 functions 

1. Planning for stafffing needs 
2. recruiting and hiring 
3. training and motivating 
4. evaluating 
5. compensating 
6. terminating and repositioning 

1. word of mouth 
2. trade shows 
3. employment agencies 
4. headhunters
5. newpapers
6. industry-specific magazines 
7. hiring from competition 
8. virtual job markets 
9. internet job/ networking sites 
10. college career fairs/ offices

The hiring process 

(6 steps) 

1. determine initial pool of condidates from applicant files 
2. conduct inital and follow- up interviews 
3. test for specific job skills 
4. conduct background and reference checks 
5. make final seclection 
6. hire and monitor through probationary or trial period

federal equal employment opportunity 

(legalities to be considered when hiring) 

(EEOC) 

works to ensure equality of opportunity by enforcing federal legislation prohibiting discrimination in employment.  

The civil Rights Act of 1964 

(legalities to be considered when hiring) 

Americans with Disabilities Act 

(legalities to be considered when hiring) 

prohinits discrimination based on disabilities and also have to make reasonable accomodations 

(provide wheelchair, interpreters, etc.) 

Age Discrimination in Employment Act 

(legalities to be considered when hiring) 

employees learn skills by performing them.  

(EX: training and certification programs to become a pharmacy technician) 

employee is asked to perform step-by-step instructions or respond to questions.  

(computerized multiple choice tests that provide immediate feedback) 

provides realistic job-task training in a manner that is challenging but does not create the threat of failure.  

(suitable for airline pilots, astronauts, etc) 

management devolpment programs 

(coaching/understudy program & job rotation)  

prepare management-trainees to become managers within an organization.  

• job rotation- employees rotate through different departments to learn firsthand various aspects of the business. 
• coaching/understudy program - employee works directly with senior management in planning and other mangerial functions 

mentors 

compensation 

& 

salaries 

& 

wages 

pension plan 

& two types 

are programs that provide income to individuals in their retirement 

1. defined benefit plans 
2. defined contribution plans 

allow employees to buy company stock at a discont (usually at 85 percent of market value) 

(usually limited to 10 percent of their total salery) 

employee benefits

(noncash forms compensation) 

indirect financial and nonfinancial payments an employer offers that supplement cash compensation.  

(EX: health and disability insurance, vacation, and sick pay) 

flexible benefit plan (or cafeteria plan) 

(noncash forms compensation) 

work/life benefits

(noncash forms compensation) 

benefits that help an employee achieve a balance between the demands of life booth inside and outside the workplace.  

(EX: flexible schedules, relaxed atmospheres, and cild care and fitness programs) 

alternative scheduling plans (flextime) 

another form of contingent workers who are generally self-employed.   

(EX: stae of the art construction, financial activities and professional and business services) 

1. technology advancements
2. more women in the workforce 

1. boycott: supporters refuse to buy or handle a company's products or services. 
2. lockout: management refuses to allow union members to enter the premses.  
3. picket: workers walk outside a company's entrances with signs that reflect the employees' grievances.
4. strikebreakers (or scabs): hired replacement personell for those that are fired or replaced.  

roles of the IT department 

(3 roles) 

• selecting the appropiate software programs 
• providing employees with training 
• keeps equiptment operational and current 

data = the representations of a fact or idea, number, a word, image, or sound 

information = data that have been organized or arranged in a way that makes the data useful.  

software system that is specially designed for the needs of mangement.  

(often uses spreadsheets and shows one department or product at a time) 

allow businesses to quickly enter data, filter and sort information and generate reports.  

(EX: customer surveys or time cards) 

Hypertext transfer protocol (HTTP) 

& protocols 

to send data between system.  

& Protocols: the different languages that are used to transfer information across the internet.  

refers to the sharing of information, resources and software over the internet and is another new trend in business technology.  

(makes businesses more agile and efficient) 

a form of offshoring in which a company moves jobs to a foreign location that is geogrpahically close or linguistically and cultually similar to the domestic country.  

(EX: Canada, UK, Australia) 

takes place when a company contracts with an outside firm to handle a specific part of its daily business activities.  

(EX: includes a real estate company hiring a graphic design firm to create a special layout for a sales brochure) 

the common set of basic values shared across both jewish and Chrisitan religious traditions.  

(respect properties, relationships, and being kind to others) 

corportate social responsibility 

& its five major areas 

a company's obligation to conduct its activites with the aim of achieving social, environmental, and economic development.  

1. human rights and employment 
2. ethical sourcing and procurement 
3. marketing and consumer issues 
4. environmental, health, and saftey concerns 
5. community and good neighbor policies

reasons for rise in globalization

(2 reasons) 

1.  decline in trade and investment barriers (taxes & tarrifs) 
2. technological innovations 

152 members 

arbitrates global trade disputes, has power to enforce decisions 

deficit: the value of imports exceedsthe value of its exports 

surplus: "vice versa" 

** made the ethical standards legal rights.** 

1. the right to saftey 
2. the right to choose
3. the right to information 
4. the right to be heard.   

how firms create business by acting ethically? 

(4 ways) 

1. offering clean fuel 
2. creating medical vaccines 
3. fighting censorship 

refers to the unencumbred flow of goods and services across national borders.  

(free from government intervention or other impediments that can block the flow of goods across borders) 

1. tariffs and subsidies 
2. quotas and embargoes 
3. adminstrative trade barriers 

a limitation on the amount of an import allowed to enter a country

(EX: quota on French Wine might limit the quantity to 10,000 cases per day.) 

a total restriction on an import (or export) 

(EX: U.S has an embargo with most goods from Cuba) 

local content requirement 

(adminstrative trade barriers) 

benefit: domestic producers and their workers (drives up domestic sales

--more profitability creates job security for employees

hurts: domestic consumers (drives up pricess) 

-- the overall quanity, variety and quality of products are lower as a result of curtailing foreign competition) 

1. national security 
2. infant-industry 
3. cheap foreign labor 
4. threat of retaliation 

to sell a standardized product across the globe.   

(EX: agricultural products, oil, raw material commodities)

** low prices **  

customize or differentiate their products to meet unique local needs, taste, or preferences 

** important whether product meets their needs or is distinct from a competitor's product** 

the sale of domestically produced good in a foriegn market 

Advantages: speed of entry and prodcution site in lowest-cost location 

Disadvantages: high transportation costs and threat of trade barriers such as tariffs. 

When firms export their technoligical know-how in exchange for a fee.  Common in the production of sophisticated and complex manufacturing facilities, such as those involved in steel, and hydroelectric engery production

Advantages: increased profits for high-tech firms 

Disadvantages: loss of technical know-how to potential competitors 

involves selling a well-known brand name or a proven method of doing business to an investor in exchange for a fee and a percentage of sales or profits.  

Advantages: costs and risks of opening the foreign market fall on the franchise 

Disadvantages: difficulty in maintaining quality control over distant franchises 

an agreement in which the licensor's intabgible property - patents, trademarks or trade secrets may be sold or made available to a licensee in exchange for a royalty fee.

Advantages: speed of entry 

Disadvantages: licensee may become competitor and loss of knowledge to potential competitor

involve shared ownership in a subsidairy firm.

Advantage:  gaining local knowledge of the economic, social and political landscape while sharing the costs and risks of accessing a foreign market and high potential for learning 

Disadvantage: losing contol over a company because compromise with partner is inevitable. 

cooperative arrangements between actual or potential competitors.  Each partner retains it's business independence.  

Advantages: pooled talents and expertise and shared costs and risks 

Disadvantages: risk of losing specialized technology to partner 

occurs when a firm subcontracts part or all of its goods to an outside firm as an alternative to owning and operating its own production facility.  

Advantages: speed of entry and Low test-marketing costs 

Disadvantages:lack of quality control over distant subcontractor 

involves establishing a foreign facility that is owned entirely by the investing firm 

Advantages: total control over all operations & preservation of proprietary technology 

Disadvantage: risks and costs of entering foreign market 

the rates at which currencies areconverted into another currency 

(EX: U.S prefers a weak dollar bc their products will be more affordable to foreigners.) 

exists when the value of a country's imports exceeds the value of its exports 

(EX: stronger dollar create a trade deficit for US bc a strong dollar can cause export prices to rise as import prices fall)