Page 639 - Business Principles and Management

Unit 7

early in the employment process; others complete it as one of the last steps
before a finalist is hired.
7. When an applicant is hired, human resources employees walk the new
employee through filling out the necessary paperwork, such as tax forms
and insurance enrollment forms. They then help the new employee get a
good start with an orientation program and initial training. After the
new employee has been at work for several weeks, the human resources
department may follow up to see whether the right person was selected
in order to improve employment procedures.

CHECKPOINT

What are some commonly used and effective sources
of prospective employees?

Promoting, Transferring, and Releasing Employees

The amount of time and money invested in recruiting, hiring, and training a new
employee is very high. Because of the expense, once the company finds a good
employee, it should attempt to keep that person as long as possible. Offering
opportunities for promotion and transfer can help retain good employees. The
company also needs a procedure for dealing with employees who are not per-
forming satisfactorily and for reducing the number of employees if changing
economic conditions require downsizing.

CHANGES IN EMPLOYMENT STATUS

A promotion is the advancement of an employee within a company to a position
with more authority and responsibility. Usually, a promotion includes an increase
in pay and may include greater prestige and benefits. Promotion opportunities
occur when another person vacates a job (through promotion or retirement, for
example) or when the company creates a new position.
Whenever possible, a business should fill vacancies by promotion. If the com-
pany has an effective selection procedure, it should have well-qualified employees
who, with training and experience, could be promoted. Every employee should
have an equal opportunity to receive promotions for which they are qualified.
Employees need to know the job to which they can advance and the factors con-
sidered in promotion. Many companies now provide career counseling services
for employees. Through career counseling, employees can plan career paths, de-
termine the education and training required for the jobs in the career path, and
develop plans to prepare for the jobs they want. You will learn more about
employee development in Chapter 25.
A transfer is the assignment of an employee to another job in the company that,
in general, involves the same level of responsibility and authority as the person’s
current work. There are many reasons for transfers.
• Employees being trained for management positions may be transferred
among several positions to gain experience.
• Employees may be transferred to give them a better opportunity for
promotion.
• Employees may be transferred to new departments or new company
locations due to growth or reduction of the size of departments.

626