Orientation socializes new people to the business. It introduces them to the firm's mission, its history and its culture. It gives them the information essential for getting off to a good start. Training and experience brought to the job give the employees the knowledge, skills and abilities necessary to succeed in the position. Performance appraisal is the continuous assessment, in cooperation with the employee, of how she or he is doing relative to the standards and expectations laid out in the job description and follow up training.
Compensation includes the monetary and nonmonetary rewards received by employees.
The management team and employees carefully choose these rewards. The rewards need to be feasible for the organization while helping satisfy employee needs. Discipline is giving each employee expectations, rules, policies and procedures and then working with the employee to get behavior consistent with employer expectations. Human resource activities lead to four important implications for risk management. First, these activities are necessary to keep human resources in harmony with the risk management tools adopted by the management team.