HRM Exam 1

employee expectations

25% of the work force has a college degree Increasing numbers of working women and dual career couples Changing values across generations (Generation "Y" or "Millennials")

Establishing prima facie case for disparate impact

An employer applies the same standard to all applicants/ employees, but the standard adversely affects one protected class Plaintiff provides evidence that protected class (of which s/he is a member) was negatively impacted by some standard used in employment decision Statistical data are a major piece of evidence Impact not intent is the key issue

disparate impact

An employer applies the same standard to all applicants/ employees, but the standard negatively (or adversely) affects one protected class Intention is not an issue

disparate treatment

An employer treats an applicant/ employee differently (i.e., adversely) because of his/her protected class status (different standards for different people) Intention is an issue

Establishing prima facie case for disparate treatment

An employer treats an applicant/employee differently (i.e., adversely) because of his/her protected class status Plaintiff must show that s/he is a member of a protected class, s/he applied for a job/promotion for which s/he was qualified, s/he was rejected, employer continued to seek applicants for the job/promotion with the plaintiff's qualifications

What is HR planning?

Appropriately managing the flow of people into, through, and out of an organization. Collect relevant information (internal and external), forecast organization's demand, forecast supply of employees, plan and implement programs, feedback on planning process

recruiting goals

Attract large numbers of applicants Attract highly qualified applicants Attract applicants willing to accept offers Fill vacancies quickly Fill vacancies at minimal cost Hire people who perform well Hire people who will stay with the organization Generate positive public relations "spillover"

BFOQ

Company admits illegal discrimination but presents evidence that age, religion, sex, or national origin is an actual qualification for performing the job (is "reasonably necessary to the normal operation of the particular business") Can be based on age, sex, religion, or national origin; but not race or color Company must have very convincing evidence to support their case (business necessity - and no other procedures/ requirements that would accomplish same goal) Cannot argue personal preferences of co-workers, employer, clients, or customers Courts have recognized authenticity as a legitimate defense (the essence of the business operation would be undermined if the business eliminated its discriminatory policy)

job relatedness

Company must show that its procedures are related to employee performance Appropriate when an apparently neutral practice has a disparate impact If practice directly relates to ability of workers to perform job, does not constitute illegal discrimination Job analysis!!

core vs. peripheral employees

Core employees are most closely associated with the activities that generate valued returns; have the most opportunity to add value and are closest to the essential work of the organization, while peripheral employees support the work of the core employees and can improve an organization's efficiency

Which types of businesses does the ADA cover?

Covers all private employers with 15 or more employees; employment agencies, labor organizations; local governments (federal government covered by a similar law)

Which businesses does the PDA cover?

Covers all private employers with 15 or more employees; federal, state, and local governments; employment agencies; labor organizations

Which types of businesses does GINA cover?

Covers all private employers with 15 or more employees; federal, state, and local governments; employment agencies; labor organizations

Which types of businesses does Title VII cover?

Covers all private employers with 15 or more employees; federal, state, and local governments; employment agencies; labor organizations

Which types of businesses does the CRA cover?

Covers all private employers with 15 or more employees; federal, state, and local governments; employment agencies; labor organizations

Which types of businesses does the ADEA cover?

Covers all private employers with 20 or more employees; state and local governments; employment agencies; labor organizations; most federal government agencies

Which types of businesses does the FMLA cover?

Covers all private employers with 50 or more employees; the federal government; all state and local governments; public and private elementary and secondary schools

Which kinds of businesses does the Equal Pay Act cover?

Covers nearly all businesses (e.g., all businesses that have $500,000 or more in annual gross sales; all business involved in interstate commerce); state and local governments; most federal government agencies and departments

collecting external environment information

Current economy, predicted changes Labor markets Federal/state regulations

targeted recruiting

Directing recruiting methods to specific segments of labor market (executive search firms, campus recruiting, recruiting older workers, recruiting disabled workers, recruiting disadvantaged workers, affirmative action recruiting, recruiting passive job seekers)

Use of job analysis information

EEO compliance, discovering unassigned duties, recruitment and selection, compensation, performance appraisal, training

What do we tend to see in companies without good HR practices?

Employees who are not performing at peak capacity The wrong people in the wrong jobs High turnover Poor customer service and loss of customers Discrimination lawsuits Occupational safety and health violations and citations Poor overall performance

Acts on the horizon

Employment Non-Discrimination Act Healthy Families Act (would require businesses with 15 or more employees to provide 1 hour of sick time her 30 hours worked) Social Networking Online Protection Act (would prohibit employers from demanding access to social media accounts)

business necessity

Employment practices resulting in unfair discrimination are permitted if the actions are essential to efficient and safe operation of the company Employers must prove that there exists an overriding necessity, not just a convenience Present evidence that if selection requirement were not used, risk to workers and/or customers would be substantially increased Requirements for this defense are very strict and apply in limited cases

Bona fide seniority system

Employment practices that result in unfair discrimination are permitted if the actions are part of a bona fide seniority system Show that employment decision stemmed from a well-established and consistently applied seniority system Bona fide seniority system = intent of system is not to discriminate "Last hired, first fired" policy has been upheld by the courts

What is EEO, and what does it do?

Equal Employment Opportunity A collection of legal and social policies that state that members of U.S. society should have equal access to and treatment in employment. Aimed at solving critical national issues, such as employment inequalities Constituents are not business organizations, but political and social groups wanting to redress past social inequalities

What is job analysis?

Foundation of HRM Systematic process of collecting data and gathering information on important, work-related aspects of a job Identify employee specifications necessary for success on a job (knowledge, skills, & abilities = KSAs) Develop predictors or measures of applicants used to screen them and forecast who is likely to be a successful employee on a job Develop criteria or standards of performance that employees must meet in order to be considered successful on the job

job

Group of positions that are identical with respect to major tasks; sufficiently alike to be covered by a single analysis Actual work that gets done or the process of how the work gets done

Why is Human Resources important?

HR policies and practices directly impact a company's performance and profits

recruiting philosophy

Hire/promote internally or externally? Fill vacancies or hire for careers? Commitment to diversity? Marketing orientation? Ethics?

How can strategic HRM help build competitive advantage?

If a company's advantage is difficult for competitors to understand and copy, that company has a sustainable competitive advantage Whatever strategy an organization adopts, the organization must have the right human resources in place to successfully implement that strategy

products of job analysis

Job description (written narrative of the activities performed on the job and information about the equipment used and working conditions in which the job is performed) Job specifications (outline of the specific skills, knowledge, abilities, and other physical and personal characteristics that are necessary to perform a job)

National Labor Relations Act (1935)

Made unions legal Made unfair or unethical organizational practices illegal National Labor Relations Board created to oversee union activity and enforce the act Protects concerted activity (2 or more employees express concern about working conditions in nonviolent manner)

strategic best-fit perspective of HR

Match specific HR practices to the firm's overall business strategy Horizontal fit - consistency among HR practices Vertical fit - consistency b/t HR and overall strategy (corporate level, business level, and functional level) External fit - alignment b/t HR external environment (unions, workforce, laws and regulations, economy, political landscape)

applicant's point of view

Must understand factors that impact job choice How applicants find work (informal sources) How applicants decide which offer to accept (objective factors, subjective factors, recruiting factors)

forecasting internal supply

Need an internal supply information system that includes skills inventories and Human Resource Inventory System (HRIS) so that a company knows who has what experience, education, training, certification, language skills, special abilities, preferences, etc. Transition probability matrix: probabilities of an incumbent staying in his/her present job, moving to another job, or leaving to predict future internal supply

Inward HR function measures

Operational measures = quantity, quality/accuracy, cost, and speed or cycle times associated with various HR practices Ex) average cost or time to fill a vacant position, cost per training hour Service quality measures = performance of HR systems as perceived by primary users Ex) responding to a manager's need for additional staff training, reliably filing workers' compensation claims

Why be cautious when collecting archival data?

Past job descriptions may no longer be valid descriptions Past descriptions may have been developed using inadequate procedures Performance appraisals are often inaccurate Jobs can differ significantly across companies

Age Discrimination in Employment Act (1967)

Prohibits age discrimination against employees and applicants age 40 or older The act does not prohibit "reverse discrimination" - those under 40 have no rights under the law There are several explicit exceptions for firefighters, law enforcement officers, and certain types of executives and policy makers The act prohibits job postings that express a preference or limitation based on age (e.g., "college student," "young," "recent college graduate")

Americans with Disabilities Act (1990)

Prohibits discrimination against qualified individuals with a disability. Requires employers to provide reasonable accommodations. Qualified individual? Someone who can perform the essential functions of the job in question either with or without accommodations being made by the employer. Reasonable accommodations? One that does not require significant difficulty or expense given the employer's size, financial resources, and the nature of its operation. Employers are not required to lower quality or production standards to make an accommodation.

Title VII of the Civil Rights Act (1964)

Prohibits discrimination based on race, color, religion, sex, and national origin (age and religion are current issues) Employers not covered by Title VII include private clubs, religious organizations, and places of employment connected with an Indian reservation

Civil Rights Act of 1991

Prohibits discrimination of the basis of race and prohibits racial harassment on the job Returns the burden of proof back to the employer Allows victims of intentional discrimination to sue for both compensatory and punitive damages Provided the right to trial by jury in discrimination lawsuits Established the Glass Ceiling Commission

Pregnancy Discrimination Act (1978)

Prohibits discrimination on the basis of pregnancy, childbirth, and related medical conditions in employment, health insurance plans, disability insurance plans, and sick leave plans The PDA is part of Title VII; the requirements, prohibitions, and complaint and enforcement procedures are the same as those for Title VII. Also protects women from discrimination based on their potential to become pregnant. Breastfeeding and child care are NOT considered related medical conditions and are not protected. Courts are divided regarding whether infertility is a related medical condition.

Equal Pay Act (1963)

Prohibits paying workers of one sex more than workers of the opposite sex to do equal work When act was passed states had laws that discriminated b/w sexes (prohibited women from overtime; required employers to give women breaks during the day but not men) Jobs must require substantially equal skill, responsibility, and effort and be performed under similar working conditions

Genetic Info Non-Discrimination Act (2008)

Prohibits the use of genetic information in health insurance and in making employment decisions; restricts employers and other entities from requesting, requiring, or purchasing genetic information; strictly limits the disclosure of genetic information "Genetic information" - includes family medical history, and request for or receipt of genetic services Does not cover an individual's manifested disease or condition - a condition from which an individual is experiencing symptoms, is being treated for, or that has been diagnosed Does not include protection with regard to life, disability, or long-term care insurance

sexual harassment in workplace

Recognized under Title VII for the first time in 1977 Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when this conduct explicitly or implicitly affects an individual's employment, unreasonably interferes with an individual's work performance, or creates an intimidating, hostile, or offensive work environment. Quid pro quo (tit-for-tat) or hostile work environment

questionnaires (sources, formats, advantages, disadvantages?)

Source: have employees fill out questionnaires to describe their job-related duties and responsibilities Formats: structured checklists, open-ended questions Advantage: quick and efficient way to gather information from large numbers of employees Disadvantage: Expense and time consumed in preparing and testing the questionnaire

observation (source, advantages, disadvantages)

Source: observing and noting the physical activities of employees as they go about their jobs Advantage: provides first-hand information and reduces distortion of information Disadvantages: time consuming, difficulty in capturing entire job cycle, of little use if job involves a high level of mental activity

participant diary/logs (source, advantages, disadvantages)

Source: workers keep a chronological diary/log of what they do and the time spent on each activity Advantages: produces more complete picture of the job, employee participation Disadvantages: distortion of information, depends upon employees to accurately recall their activities

interviews (sources, formats, advantages, disadvantages?)

Sources: individual employees, groups of employees, supervisors with knowledge of the job Format: structured or unstructured Advantage: quick, direct way to find overlooked information Disadvantage: distorted information

factors in choosing forecasting methods

Stability and certainty of trends/data Availability of necessary data Number of employees Resources available - time, computing power, statistical expertise? Time horizon Credibility to decision makers

What is specific to North Carolina?

States can pass laws that are more "protective" but cannot violate federal laws Private employers can't make employment decisions based on age, HIV/AIDS, military service, or lawful use of substances while not at work

pre-employment questions

beware of asking anything, pre-employment, that may give you irrelevant information regarding an applicant's protected class status Know what you can and can't as pre-employment always illegal to ask about arrest records, only convictions

reference checks - what is illegal?

defamation of character negligent referral (responsible to relay all relevant information) negligent hiring (employer knew employee that was hired was unfit for job)

diversity of workforce

differences in demographics of workforce "graying" of workforce increasing number of women in workforce

planning and implementing programs if you're expecting a surplus of employees

don't replace employees that leave, offer incentives for retirement, transfer or reassign excess employees, reduce work hours, lay off employees, freeze hiring

What goes in to building a competitive advantage?

efficiency innovation quality responsiveness to customers You need physical and financial resources, marketing capability, and human resources

employment-at-will

employers can fire you at any time for any reason limited by civil rights legislation, union contracts, grounds of wrongful discharge varies by state

forecasting external supply

external supply is all individuals available in the labor market Labor market = the area from which an employer typically recruits to fill a position; varies according to type of job (based on geography and skills) Labor market made of civilian labor force (16 or older, employed or seeking employment, and not in military) and "discouraged" workers (given up looking for work for 6 months or more)

Current challenges and trends in HRM

global competition, changing nature of work, increasing diversity of workforce, employee expectations, societal goals/issues, economic trends

protected class (list all 8)

group of individuals with a common characteristic that has been unfairly discriminated against in the past, and is now afforded special protection by the judicial system race, color, religion, sex, national origin, age, disability, military veteran status

What information is collected through job analysis?

human requirements, work activities, job context, human behaviors, performance standards, equipment and work aids

informal vs. formal recruiting internally

informal: "asking around" (good candidates could be overlooked, favoritism, qualified employees may be hoarded) formal: job posting and bidding Employees not selected should receive feedback

informal vs. formal recruiting externally

informal: rehiring former employees, employee referrals, walk-ins formal: advertising, internet recruiting, employment agencies

How do employers defend against a claim?

job relatedness (most important) business necessity bona fide occupational qualification (BFOQ) seniority system

duty

one or more distinct tasks

digital dashboard

presents the manager with desktop graphs and charts, showing a computerized picture of where the company stands on all metrics from HR scorecard process

HR scorecard

process for assigning financial and non financial goals or metrics to the HR related chain of activities required for achieving strategic goals computerized process that assesses organizational performance from the financial, customer, internal/operational, and capabilities perspectives

pros and cons of internal recruiting

pros: hire is "known", internal promotion motivating to employees, training and socialization time is less cons: internal sources may be insufficient for growth, ripple effect, cumbersome internal procedures, inbreeding, loss of flexibility

pros and cons of external recruiting

pros: new ideas and viewpoints, avoid ripple effect, help meet AA goals, cope with rapid growth, no "obligation" to present employees/projects cons: cost, takes longer, risk - hire is "unknown", discouraging to current employees

strategy map

provides an overview of how each department's performance contributes to achieving the company's overall strategic goals; helps the manager understand the role his or her department plays in helping execute the company's strategic plan

planning and implementing programs if you're expecting a shortage of employees

recruit new employees, incentives for putting off retirement, rehire retired employees part time, attempt to reduce turnover, work staff overtime, subcontract work to another firm, temporary employees, technology, re-allocate people and tasks

primary functional areas of HRM

recruitment and selection, training and development, performance appraisal, compensation and benefits, labor relations

job analysis process

scope (determine scope of analysis; which jobs should be analyzed?) methods (determine appropriate types and sources of data, qualitative vs. quantitative) data collection and analysis assessing job analysis methods (evaluate results)

position

set of tasks and duties assigned to one individual

How are companies currently measuring HRM?

strategy map, HR scorecard, digital dashboard

nature of work

technology - increased need for employees with IT skills/ retraining of current employees service jobs - majority of U.S. employees now work in service roles rather than production; increased expectation of service quality; customer-responsive culture

talent management

the goal-oriented and integrated process of planning, recruiting, developing, managing, and compensating employees

4/5ths rule

the ratio of the minority group has to be at least 80% of the majority group (minority hired/minority applicants) / (majority hired/majority applicants) must be greater than or equal to .8

illegal discrimination

unfair actions taken toward members of a protected class

objective factors

wages, nature of work, promotion opportunities, location

What is HRM?

All of the management decisions and practices that directly affect or influence the people (or human resources) who work for the organization All of the activities in which managers engage to attract and retain employees to ensure that they perform at a high level and contribute to the accomplishment of organizational goals

traditional vs. strategic view of HR

In traditional HR, personnel activities and staff are relatively isolated from the "profit-making heart" of the organization; in strategic HR, HR activities and staff are integrated with other functional areas and play a central role in helping the organization achieve strategic objectives

global competition

International competition in goods and services is forcing major economies into a global affiliation ex) U.S. textile and apparel industries

specific sources growing in use for external recruiting

Internet recruiting College recruiting and internships

subject matter experts (SMEs) vs. archival sources

Interviews, questionnaires, observation, participant diaries/logs, and critical incidents technique (CIT) are SMEs Existing job descriptions, equipment maintenance records, films of employees working, past performance appraisals, O*Net (occupational information network) are archival sources

Family and Medical Leave Act (1993)

Requires covered employers to allow eligible employees to take up to 12 weeks of unpaid leave per 12-month period in the following circumstances: (1) the arrival of a new child, (2) to care for a family member with a serious health condition, or (3) to deal with own serious health condition During leave, employer must continue to provide employee with health benefits in the manner it did prior to leave At the end of leave, employer must reinstate employee to same or equivalent position in terms of pay and other aspects of employment Employers may require use of accrued PTO

Outward focused HR measures

Results measures = assessing impact of HR practices outside of the HR function, within the firm Business impact measures = linking results of HR practices to improvement in quality, cost, efficiency of firm's performance

ADA Amendments (2008)

Rewords the definitions of critical terms in the ADA of 1990 to explicitly counteract the decisions of the US Supreme court A worker is legally disabled if he/she has a physical or mental impairment that substantially limits one or more major life activities, has a record or history of such an impairment, or is regarded as having such an impairment The definition shall be construed in favor of broad coverage of individuals under this Act, to the maximum extent permitted. More complete list of "major life activities"

collecting information internal to organization

Short and long-term plans and strategies Current state of human resources

O*Net

The Occupational Information Network: an on-line, comprehensive source of occupational information developed by the U.S. Department of Labor Describes every aspect of job

strategic HRM

The process by which managers design the components of an HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization's strategy and goals

recruiting

The process by which organizations locate and attract individuals to fill job vacancies Need to recruit to replace those who leave or are promoted, acquire new skills, and permit organizational growth HR planning leads to recruiting, which leads to selection

job family

This level groups jobs that share similar characteristics or KSA requirements

task

basic element of work; a meaningful unit of work activity, generally performed within some limited period of time

3 ways to forecast demand

Trend analysis: studying firm's employment levels over past years; typically based on subgroup/job category (e.g., promotions, demographics, voluntary withdrawals) Ratio analysis: knowing the ratio between some causal factor and the number of employees required (e.g., sales volume and salespeople) Scatter plots: graphic depiction of relationship between variables (e.g., number of beds and number of registered nurses)

EEOC

U.S. Equal Employment Opportunity Commission Enforces Title VII, EPA, ADEA, ADA, and GINA

dollar value (utility) analysis

What are the monetary costs and benefits of HR activities? 1) Estimate how much some undesirable HR-related situation is costing 2) Estimate the costs of the HR program developed to fix the problem 3) Calculate the difference

When is a worker considered legally disabled?

When he or she has a physical or mental impairment that substantially limits one or more major life activities Has a record or history of such an impairment Is regarded as having such an impairment Current drug users and alcoholics are not covered; rehabilitated drug users and alcoholics are. Contagious diseases are considered conditions of being disabled.

What is an "employment decision"?

any decision that alters the terms, conditions, and/or privileges of employment