Page 664 - Business Principles and Management

Chapter 24 • Rewarding and Developing Employees

services and benefits increases, managers must emphasize building and main-
taining effective employee relations. Several areas are of special concern to com-
panies that value their employees: legal responsibilities identified by employment
laws, equal opportunity for all employees, and improvements in the way HR
services are provided and managed.

CHECKPOINT
Identify ways that companies are reducing the costs of human
resources management.

24.2 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. On average, companies spend an additional ____ percent of employee
wages and salaries on benefits.
a. 0 to 10
b. 10 to 20
c. 20 to 40
d. 40 to 60
2. Which of the following is not one of the ways companies are
attempting to control the rising costs of benefits?
a. outsourcing HR services to other companies
b. using technology such as the Internet
c. reducing the amount of paperwork
d. cutting the number of benefits offered to employees

THINK CRITICALLY
Answer the following questions as completely as possible.
3. How can cafeteria plans actually reduce the total cost of benefit
plans for employers?
4. What types of problems might companies that outsource many of
their HR activities encounter? As an employee, how would you feel
about other companies having access to your
personal information?

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