Human Resources Exam #1
Patient Protection and Affordable Care Act
Requires employers with 50 or more employees to offer health insurance to employees or pay a penalty.
Landrum-Griffin Act
Requires financial disclosure for unions
Functions of Human Resource Management: Primary Activities
*Staffing* : -Strategic human resource planning -Recruiting -Selection *Training and Development* : -Orientation -Employee training -Employee development -Career development *Motivation* : -Job design -Performance appraisals -Rewards and compensation -Employee benefits *Maintenance* : -Safety and health -Communications -Employee relations *Goals*
Strategic Management Process
*Strategic Analysis* : -mission -core values/ culture -analyze environment (SWOT- Internal: Strengths, Weaknesses, External: Opportunities, and Threats) *Strategy Formulation* : -Corporate strategy -Business strategy -Functional strategy *Strategy Implementation* : -Implement strategies -Evaluate results
Disciplinary process:
*Written warning (1st strike)* -Mildest form of discipline -Temporary record in the (managers file) on the employee -State the purpose, date and outcome of the interview with the employee -Document remains in the hands of the manager- not forward to HRM to include in the personnel file. -Conducted in a private and informal environment -Clearly informing the rules violated and problem that caused -Allow the employee to respond -Manager should determine if the employee proposed an adequate solution to the problem -If not manager should help the employee figure out ways to prevent the problem from recurring. -Solution agreed upon the manager and employee and what should happen if the problem reoccurs. *Written Warning (2nd strike)* -First formal stage of the disciplinary procedure -Becomes part of the employee's official personnel file (HRM) *Suspension (3rd strike)* -Serious nature- a period of time off from work as a result of a disciplinary process *Dismissal- Serious cases- dismissal- be sure no discrimination- Final strike* -Layoff, firing, dismissal, letting go, discharge, or outplacement Why managers don't like to do it: • Admitting that they made a mistake in the hiring process • Failure to document poor performance • Not following the progressive discipline policy • Fear of confrontation • Worries about claims of discrimination or retaliation • Concern about being short-staffed in the short term -Dismissal decision- long and hard consideration -Should be the last step and ultimate disciplinary consequences
Affirmative Action
-A practice in organizations that goes beyond discontinuance of discriminatory practices to include actively seeking, hiring, and promoting minority group members and women. -Long-standing discriminatory practices resulted in some employers and some professions with little to no diversity. -AA programs were established in an effort to encourage those employers to active seek a more diverse workforce.
Honest and Integrity Test
-A specialized question-and-answer test designed to assess one's honesty. Companies are using them in their selection process because of the effectiveness of these test coupled with the lower cost which are lower than the types of investigations. -Lack of integrity associated with theft, violence, sabotage, disciplinary problems, and absenteeism.
Downsizing:
-An activity in an organization aimed at creating greater efficiency by eliminating certain jobs. -Purpose is to cut cost in the face of financial pressures or downturn in the economy. -Strategic move when restructuring requires an organization to close a division or facility.
Code of Ethics
-Formal document which states an organizations primary values and the ethical rules it expects members to follow. -Is a tool for reducing ambiguity about what acts are considered ethical within the culture of the organization and what is not. -Specific enough to guide organizational personnel in what to do, yet loose enough to allow for freedom of judgment
Social Media Policy
-Is protected as long as its "concerted activity" = employees that meet in person or online to discuss working condition are protected from employer retaliation. Any post to merely complain to anyone is not protected. -Employers need to craft social media policies that protect employers and employees. *info outlining the company policy on monitoring internet use *explaining that employees have no expectation of privacy when using the internet at work. *reminding employees that comments need to be respectful of the company and clients *Legal repercussions from defamation *Reminding about privacy settings *Explaining companys position about using company name or photos using employee company uniform
Fair Credit Reporting Act
-Limits use of credit reports in employment decisions Exceptions if working with sensitive and private information -Requires employers to notify individuals that credit info. is being gathered and may be used in the employment decision.
Family and Medical Leave Act
-Permits employees in organizations of 50 or more workers to take up to 12 weeks of unpaid leave for family or medical reasons each year. 1250 hours within the last 12 months. -Reasons to take leave: adopting, birth, directly related to you family member with severe disease/health related, if you have a disease/health/medical, and or taking care of a veteran (military). a. Notify them that their job is secured when they come back b. Except key employees might not have a job.
Trends in workforce
-aging (benefits) -more ethically diverse (culture) -more women (mothers rights) -more millennia's (flexibility)
H.R. Responsibility
1. Transactional: payroll, benefits 2. Tactical: conflict resolution 3. Strategic: hire, train, compensate, benefits to support long-term goals.
The Employment-at-Will Doctrine
19th century common law that permitted employers to discipline or discharge employees at their discretion. Of course, an employer can't fire on the basis of race, religion, sex, national origin, age, or disability. Exceptions; Wrongful Discharge: -Contractual Relationship: employer must show that the employee's conduct violated the agreement and the employer followed procedure to prove the violation. -Statutory Considerations: employers cannot terminate an individual based on his/her age because such action would save the company some money. -Public Policy Violation: an employee cannot be terminated for failing to obey an order from an employer that can be construed as an illegal activity. Also, employers cannot retaliate against an employee for serving on a jury. -Implied Contracts: any verbal or written statement made by organization that suggest organizational guarantees or promises about continued employment. -Breach of Good Faith: employer promises should be kept, although the terms of the promises may be hard for employees to prove. i.e. story of employee working for NCR terminated shortly after completing a major deal with a customer and did not get his pay in sales commission. The court held his position and NCR's was faulted for failure to pay commissions.
Adverse Impact
A consequence of an employment practice that results in a greater rejection rate for a minority group than for the majority group in the occupation i.e. police department had a height requirement (5'10") which impacted adversely women and men from ethnic groups. The courts found no evidence of tall officers being more effective at law enforcement than shorter colleagues.
4/5ths Rule
A rough indicator of discrimination, this rule requires that the number of minority members a company hires must equal at least 80 percent of the majority members in the population hired. Ratio of minority to majority.
W. Edwards Deming
American statistician who taught statistical methods to control quality in manufacturing. -Deming went to Japan in 1950 and began advising top Japanese managers on ways to improve production. -Early proponent to continuous improvement and quality management to enhance productivity.
Adverse (disparate) treatment
An employment situation where protected group members receive treatment different from other employees in matters such as performance evaluations and promotions. i.e. employees who request time off to attend religious services have their work scrutinized more carefully than other employees or women applicants are required to pass a strength or agility test not required of male applicants.
Sexual Harassment
Anything of sexual nature that creates a condition of employment, an employment consequence, or a hostile or offensive environment. Two Types: -Quid Pro Quo Harassment: some type of sexual behavior is expected as a condition of employement- like a raise or promotion depends on sexual favors. -Hostile Environment Harassment: when working environment is so offensive that it unreasonably interferes with an employees ability to work. i.e.. explicit language, inappropriate comments, email, social media, unwelcome and inappropriate comments on appearance, gender inferiority, or continually asking for dates.
HRM is
Attract, hire, train, motivate, and maintain employees.
Equal Employment Opportunity Act (EEOC) covers private companies
Created to oversee the compliance of the civil rights act of 1964 against discrimination. -Charges filed within 180 days of an alleged incident. o Has the power to investigate claims o Has no power to force organizations to cooperate o Attempts to obtain lost wages or back pay, job reinstatement, and other rightfully due employment factors. o Individual may also recover attorney fees o Discrimination intentional- other damages may be awarded o No retaliation against the individual
Tom Peters and Peter Drucker
Emphasized giving employees a say in what affects their work, teams, and work process engineering.
Abraham Maslow
Employee Motivation Theories: Every person has needs that follow a certain order, or hierarchy, of priority. There are 5 different levels of needs: Lower-Order Needs (extrinsic- external) 1. Physical -basic needs: food, air, water, clothing, and sex. 2. Safety & Security: a person seeks protection or assurance that one isn't going to lose everything he/she worked so hard and long to achieve. Higher-Order Needs (intrinsic- internal) 1. Social or belonging needs: that everyone wants respect and trust of others. We need friends & friendships, acceptance, a sense of belonging to a social system, and the feeling of being liked & loved. 2. Ego or self-esteem needs: of individuals to strive for independence, power, status, prestige, recognition, position, pride in self and work, self-esteem, meaningful work, and authority. 3. Self-actualization: where people are pleased with themselves & their accomplishments "Be all that you can be" captures that idea
Frederick Herzberg
Employee Motivation Theories: Two independent scales: -Satisfaction and No Satisfaction These are the motivators -Dissatisfaction and No Dissatisfaction Hygiene or maintenance factors Hygiene Factors : Company policies, Supervision, Work conditions, Salary, Relationship with peers, Status, Security (These factors contribute to job dissatisfaction) Motivators : Recognition, Achievement, Work itself, Responsibility Opportunity for advancement, Growth (These factors contribute to job satisfaction)
Health Insurance Portability and Accountability Act (HIPAA)
Establishes guidelines for protecting private personal information by employers, insurers, and healthcare providers
Sarbanes-Oxley Act
Establishes requirements for proper financial record keeping for public companies as well as penalties for noncompliance •When an employee reports the organization to an outside agency for what the employee believes is an illegal or unethical practice •Before- punished •Federal government protects the *whistle-blowers*- Sarbanes-Oxley Act, the Consumer Product Safety Act, Occupational Safety and Health Act, and many other federally regulated activities. •Policies to permit employees to identify problems o Procedure to raise concerns and the company can take corrective action.
Glass ceiling
Invisible barrier for women and minority groups to break through the glass ceiling into the executive ranks of U.S. businesses.
Rightsizing
Linking employee needs to organizational strategy
1991 Civil Rights Act
Overturns several Supreme Court cases concerning discrimination -Prohibition of discrimination on the bases of race and racial harassment -Returned the burden of proof that discrimination did not occur back to the employer -Allows for punitive and compensatory damages through jury trials. -Reinforced the illegality of employers who make hiring, firing, or promoting based on race, ethnicity.
Privacy Act
Permits employees to review personnel files but, cannot remove file from job premise.
Genetic Information Nondiscrimination Act (GINA)
Prevents discrimination based on genetic information about employees or their families; doesn't allow employer to seek to find out if you have a disease.
Henri Fayol 1916
Process of efficiently achieving the objectives of the organization with and through people. Major responsibilities of Managers. Five Rules of Management: 1. Foresight 2. Organization 3. Command 4. Coordination 5. Control They were combined into Four Simple Functions: 1. Planning: setting organizational goals and objectives 2. Organizing: determining what jobs are to be done and by whom, where decisions are to be made, and how to group employees. 3. Leading: directing the work of others 4. Controlling: monitoring activities to ensure that goals are met.
National Labor Relations Act (Wagner Act)
Prohibited unfair labor practices by management and protects unions
Don't Ask, Don't Tell Repeal Act
Prohibits discrimination against members of the armed services based on sexual orientation
Americans with Disabilities Act
Prohibits discrimination against those with disabilities who are essentially qualified individuals and requires enterprises to reasonably accommodate individuals
Civil Rights Act Title VII (1964) Amended in 1991
Prohibits discrimination in all employment decisions on basis of race, religion, ethnicity, sex, and national origin.
Uniform Guidelines of Employee Selection Procedures
Prohibits hiring policies that have adverse impact on a race, sex, or ethnic group
Employment Polygraph Protection Act
Prohibits use of polygraphs in screening all job applicants in most HRM practices. In the private sector you can use it if there is misconduct in an investigation (suspect) to identify the culprit. But, employers are prevented from testing all employees in the attempt to identify the guilty party. Employees have the right to refuse to take the lie detector test without fear of retaliation.
Equal Pay Act
Prohibits wage discrimination- requires equal pay for equal work regardless of gender. Exceptions: merit/outstanding employees as opposed to standard employee or in production- an employee who produces lots more units.
Taft-Hartley Act
Protects Management rights and prohibits unfair labor practices by unions
Age Discrimination in Employment Act
Protects employees over 40 from discrimination
Pregnancy Discrimination Act
Protects from discrimination due to pregnancy- employer should make reasonable accommodations for the pregnant employee; treated like any other disability. Affords EEO protection to pregnant workers.
Uniformed Services Employment and Reemployment Rights Act
Protects the civilian employment of non-full-time military service members in the United States called to active duty- allows veterans right to return to their job in the private sector when returning from military service
Occupational Safety and Health Act (OSHA)
Protects workers from workplace hazards
Consolidated Omnibus Budget Reconciliation Act
Provides for benefit continuation when laid off
Fair Labor Standards Act
Provides minimum wage and overtime pay, Defines employee status
Continuous Improvement Program
Quality management- organizational commitment to continuous process of improvement that expands the definition of customer to include everyone involved in the organization • W. Edward Deming • Drive by customer needs and expectations (everyone involve including employees, suppliers, and consumers) • Continuous improvement • Japanese Kaizan Work Process Engineering • Radical, quantum change • Rethinking or redesigning the process Contribution of HRM • Improvement effort- introduces change • Employees- fear and resistance • HRM- help to overcome the barriers to change o Clear and extensive communication of: ♣ Why the changes will occur ♣ What is expected ♣ Effect on employees o Training in the new processes o Provide answers, directions and assistance
Employee Retirement Act
Raises mandatory retirement age from 65 to 70; uncapped in 1986
Lilly Ledbetter Fair Pay Act
Reinterprets timeframes available for employees to claim that they were victims of pay discrimination (Obama extended the time to file pay discrimination claims within 180 days of any discriminatory paycheck).
Certain Law Exceptions to Title VII that are job related or business necessity; Bona Fide Occupational Qualifications
Requirements reasonably necessary to meet the normal operations of the business *cannot include race or color. o Age o Age Discrimination in Employment Act (ADEA) ♣ Person over 40 protected (exception swimsuit model in a photo shoot for sports magazine, but not as the photographer) o Sex o Determining factor to "protect the privacy interests of patients, clients, or customers: o Religion o Differentiating factor in ordaining a church minister o When cannot reasonably accommodate some religious observances o National origin
Worker Adjustment & Retraining Notification Act (WARN) or Plant Closing Bill
Requires employers to give advance notice of plant closing or layoffs. Organizations employing 100 or more individuals must notify workers 60 days in advance if it is going to close its facility or lay off 50 or more individuals.
Drug Free Workplace Act
Requires some federal contractors and government agencies and those who receive government monies to follow certain requirements to maintain a drug-free workplace. Requirement though for Transportation (DOT) and Nuclear jobs to be subjected to drug test.
Immigration Reform and Control Act
Requires verification of citizenship or legal status in the United States
Outsourcing
Sending work "outside" the organization to be done by individuals not employed full time with the organization
Union Representative/ labor relations
Supports and protects the employee that belongs to the union.
Contingent Workforce
Used by organizations to fill peak staffing needs or perform work not done by core employees: Part-time, temporary, and Contract workers. • Part-time employees o Fewer than 40 hrs a wk o Few employee benefits o Allow to supplement the staff during peak hours • Temporary employees o Employed during peak production periods to meet increased demand for production or services o Fill-ins when some employees are off work for an extended time (leaves) • Contract workers o Include freelancers, subcontractors and consultants o Contracted to work on specific projects o Highly skilled o Fee is set in the contract o Paid when the organization receives particular deliverable Labor cost is fixed and less compared with a fulltime employee
Whistle-blowing
When an employee reports the organization to an outside agency for what the employee believes is an illegal or unethical practice. Government protects under the Sarbanes-Oxley Act, the Consumer Product Safety Act, and Occupational Safety and Health Act.
Strategic Management Process
analyzes the environment, creates strategies necessary to accomplish the goals, and puts those strategies into action.
Employee Training
assist employee to acquire better skills for the current job.
Employee Development
for a future position or job
Employee relations specialist (employee for the company)
is responsible for effective communication throughout the organization and reinforcing the organizational culture. Resolving conflicts, conducting employee recognition, enforcing policies and procedures, investigating complaints, and handling disciplinary issues. *Laws protect the employee
OFCCP covers the public sector (government, contractors)
o Executive order 11246 o Provisions apply to any organization including universities that have a federal contract or act as a subcontractor on a federal project o Operates within the US Department of Labor Investigates allegations
Employee Monitoring and Workplace Security
•Employee's move could be tracked •Reasons- preventing losses (theft, security breaches, dishonesty, and misconduct) •Few privacy rights •Electronic Communications Privacy Act (ECPA) (1986) o Extend the federal wiretap Act to email o Exception in the act- employer can monitor communication if there is a legitimate business purpose or if employees give consent •Monitor Internet (prevent gambling, porn, harassing content or trade secrets) •Cease monitoring phone conversations if it becomes personal in nature. Policy may include: •Computers and phone systems are property of the employer and are to be used for business only. •Employees do not have any expectation of privacy when using computers, phones, offices, desks, lockers, company vehicles, or any other relevant locations. •Prohibits access of sites or material that is offensive, pornographic
Hugo Munsterberg
•Employers matched the personalities and abilities of workers to jobs that best suited those traits = more motivated and efficient •Improved methods of employment testing, training, performance evaluations, and job efficiency.
Frederick Taylor (engineer)
•Father of the scientific management •Principles to enhance worker productivity •First sense of todays human resource practices •Workers needed appropriate job training and should be screened according to their ability to do the job -Today- technology allow to track the productivity of workers.
Elton Mayo (Hawthorne studies)
•Hawthorne studies (1924)- Western Electric Hawthorne Plant- Chicago •Increase productivity had little relationship to the increase in lighting •Productivity was influenced by the relationship of the work group and the style of supervision more than by the working conditions •Informal work groups had a significant effect on worker performance •Today- recognize the benefit of work groups and how workers are supervised.
Mary Parket Follet
•Social philosopher and advocated people oriented organizations •Focused on groups •Organizations are communities- cooperative effort between managers and workers •Advocate of employee ownership to create a feeling of responsibility •Today- teamwork and group cohesiveness