Human Resource Management
Sustainability
meeting the needs of today without sacrificing future generations' ability to meet their needs
The EEOC basically has three significant responsibilities:
(1) investigating and resolving discrimination complaints through either conciliation or litigation, (2) gathering and compiling statistical information on such complaints, and (3) running education and outreach programs on what constitutes illegal discrimination
Association for Talent Development (ATD).
ATD primarily focuses on the training and development functions of HR managers.40 Its major certifications include the Certified Professional in Learning and Performance (CPLP) and the Human Performance Improvement (HPI) certification.
OUCH is an acronym that stands for
Objective Uniform in application Consistent in effect Has job relatedness
Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA)
Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA) "prohibits the use of genetic information in employment, prohibits the intentional acquisition of genetic information about applicants and employees, and imposes strict confidentiality requirements."
reasonable accommodation
an accommodation made by an employer to allow someone who is disabled but otherwise qualified to do the essential functions of a job to be able to perform that job
Revenue centers
are divisions or departments that generate monetary returns for the organization.
Equal employment opportunity (EEO) and diversity management specialists
ensure compliance with equal opportunity laws and regulations as well as organizational affirmative action plans (when such plans are required or desired). They also have responsibilities related to the management of diverse employee groups within the company.
Business necessity
exists when a particular practice is necessary for the safe and efficient operation of the business and when there is a specific business purpose for applying a particular standard that may, in fact, be discriminatory.
Job relatedness
exists when a test for employment is a legitimate measure of an individual's ability to do the essential functions of a job.
Quotas were made explicitly illegal by the 1991 act. The act also prohibits "discriminatory use" of test scores, which is also called race norming. Race norming
exists when different groups of people have different scores designated as "passing" grades on a test for employment.
training and development
have responsibility for the training processes within the organization as well as for the development of curricula and lesson plans and the delivery of training courses. You would also be involved with the development of talent within the company so that employees are trained and ready to move into more senior positions as those positions become vacant.
Conceptual and design skills (HRM Skills)
include the ability to evaluate a situation, identify alternatives, select a reasonable alternative, and make a decision to implement a solution to a problem.
cost center
is a division or department that brings in no revenue or profit for the organization—running this function only costs the organization money.
adverse employment action
is any action such as firings, demotions, schedule reductions, or changes that would harm the individual employee.
Illegal discrimination
is making distinctions that harm people and that are based on those people's membership in a protected class.
Empathy
is simply being able to put yourself in another person's place—to understand not only what that person is saying but why the individual is communicating that information to you.
Basics of Organizational Structure: Complexity
is the degree to which different parts of the organization are segregated from one another
Basics of Organizational Structure: Formalization
is the degree to which jobs are standardized within an organization, meaning the degree to which we have created policies, procedures, and rules that "program" the jobs of the employees.
Society for Human Resource Management (SHRM)
is the largest and most recognized of the HRM advocacy organizations in the United States. (1) advocacy for national HR laws and policies for organizations and (2) training and certification of HR professionals in a number of specialty areas. SHRM's new "competency-based" certification programs include the SHRM Certified Professional and Senior Certified Professional (SHRM-CP and SHRM-SCP).
Pattern or practice discrimination
occurs when a person or group engages in a sequence of actions over a significant period of time that is intended to deny the rights provided by Title VII of the 1964 CRA to a member of a protected class
Disparate (Adverse) impact
occurs when an officially neutral employment practice disproportionately excludes the members of a protected group; it is generally considered to be unintentional, but intent is irrelevant
Human Resource Certification Institute (HRCI)
provides some of the most respected certifications for HR personnel anywhere in the world. The three biggest certification programs are the PHR, SPHR, and GPHR certifications. PHR stands for Professional in Human Resources, SPHR stands for Senior Professional in Human Resources, and GPHR stands for Global Professional in Human Resources. These certifications are recognized by organizations worldwide as verification of a high level of training.
Organizational structure
refers to the way in which an organization groups its resources to accomplish its mission.
Equal Pay Act of 1963
requires that women who do the same job as men, in the same organization, must receive the same pay. It defines equal in terms of "equal skill, effort, and responsibility, and . . . performed under similar working conditions."6 However, if pay differences are the result of differences in seniority, merit, quantity or quality of production, or any factor other than sex (e.g., shift differentials and training programs), then pay differences are legally allowable
Objectives
state what is to be accomplished in singular, specific, and measurable terms, with a target date
human relations skills (HRM Skills)
the ability to understand, communicate, and work well with individuals and groups through developing effective relationships
Productivity
the amount of output that an organization gets per unit of input, with human input usually expressed in terms of units of time. Productivity is the end result of two components that managers work to create and improve within the organization: Effectiveness and Efficiency
human resources (HR)
the people within an organization—are one of the primary means of creating a competitive advantage for the organization, because the ways we manage people directly affect their performance.
Data analytics
the process of accessing large amounts of data in order to analyze those data and gain insight into significant trends or patterns within organizations or industries.
Basics of Organizational Structure: Centralization
the third major component of organizational structure, is the degree to which decision making is concentrated within the organization
Organizational culture
the values, beliefs, and assumptions about appropriate behavior that members of an organization share
Civil Rights Act of 1991
was enacted as an amendment designed to correct a few major omissions of the 1964 CRA as well as to overturn several US Court decisions.22 One of the major changes in the amendment was the addition of compensatory and punitive damages in cases of intentional discrimination under Title VII and the ADA, when intentional or reckless discrimination is proven.
vision
what we expect to become as an organization at a particular point in time in the future.
undue hardship
when the level of difficulty for an organization to provide accommodations, determined by looking at the nature and cost of the accommodation and the overall financial resources of the facility, becomes a significant burden on the organization.
WorldatWork
whose certifications mainly cover compensation and performance management programs.41 Certifications from this organization include Certified Compensation Professional (CCP), Certified Benefits Professional (CBP), Global Remuneration Professional (GRP), Work-Life Certified Professional (WLCP), Certified Sales Compensation Professional (CSCP), and Certified Executive Compensation Professional (CECP).
Knowledge workers
workers who "use their head more than their hands" and who gather and interpret information to improve a product or process for their organizations.
Labor and Industrial Relations
works with the laws and regulations that control the organization's labor-related relationships with their workforce. HR managers who work in this area might be involved in union votes, negotiations for union agreements, collective bargaining, grievances, and other items that affect the union/management relationship within the organization
The External Environment (9 major forces)
Customers, competition, suppliers, labor force, shareholders, society, technology, economic, government
What Does the ADA Require of Employers?
An organization must make "reasonable accommodations" to the physical or mental limitations of an individual with a disability who was otherwise qualified to perform the "essential functions" of the job, unless it would impose an "undue hardship" on the organization's operation.
In defining reasonable accommodations, it is also necessary to distinguish between "essential" and "marginal" job functions: Marginal job functions
Are those functions that may be performed on the job but need not be performed by all holders of the job.
The HR competencies and subcompetencies that will be the most critical
Business acumen: HR metrics/analytics/business indicators Knowledge of business operations and logistics Strategic agility Organizational leadership and navigation Relationship management Communication
Types of Strategies:
Cost Leadership, Differentiation, Focus/Niche
Vision + Mission =
FOCUS
Major HR Responsibilities of HR Staff and Line Management: Compensation and Benefits.
HR is responsible for developing the pay system including salary and benefits, but line managers can often have some input into how much an individual is paid, including raises.
Major HR Responsibilities of HR Staff and Line Management: Safety and Security
HR is responsible for knowing the safety laws (OSHA) and ensuring that line managers train and manage their employees to follow the safety rules
Major HR Responsibilities of HR Staff and Line Management: Labor and Industrial Relations
HR is responsible for policies and training to making sure the labor laws are followed, and line managers implement them. If the organization has a union, HR often helps in the contract negotiations
Major HR Responsibilities of HR Staff and Line Management: Ethics and Sustainability
HR may develop Ethics Codes for everyone in the organization to follow, and line managers are responsible for making ethical decisions and helping their employees do likewise.
Major HR Responsibilities of HR Staff and Line Management:Employee Relations
HR staff develop policies, but line managers are constantly dealing with employee relations. HR may train line managers on how to coach and discipline employees.
Major HR Responsibilities of HR Staff and Line Management: Training and Development.
HR staff develop training programs, including training line managers how to be effective managers. HR may teach many employees how to do their jobs, but line managers tend to provide ongoing on-the-job training.
How Do HRIS Assist in Making Decisions
HRIS allow us to maintain control of our HR information, and they make it available for our use during the strategic planning process. Organizations can access things such as training records, job descriptions, work histories, and much more.
There are five artifacts of organizational culture that help employees learn the culture:
Heroes, such as founders Steve Jobs of Apple, Sam Walton of Walmart, Herb Kelleher of Southwest Airlines, Frederick Smith of FedEx, and others who have made outstanding contributions to their organizations. Stories, often about founders and others who have made extraordinary efforts. These include stories about Sam Walton visiting every Walmart store yearly, or someone driving through a blizzard to deliver a product or service. Public statements and speeches can also be considered stories. Slogans, such as at McDonald's. Q, S, C, V (or quality, service, cleanliness, and value). Symbols, such as logos, and plaques, pens, jackets, or a pink Cadillac at the cosmetics firm Mary Kay. Ceremonies, such as awards dinners for top achievers at Mary Kay.
In 2009, a case claiming "reverse discrimination" (Ricci v. DeStefano.47) came to the Supreme Court. What is reverse discrimination?
It is discrimination against a majority group rather than a minority group. In general in the United States, this would be discrimination against white male employees or applicants. Ricci v. DeStefano renewed the discussion of race-based decision making in employment.
Creating an Engaged Workforce
Many of our employees are highly talented and extremely difficult to replace, but according to a recent Gallup report, 70% of them just aren't being made an integral part of the organization through the use of management techniques that cause them to become more interested in both their work and the work of the organization overall.42 This same report shows that companies with the most engaged workforce had 147% higher earnings per share, better productivity and profitability, and lower absenteeism and turnover than their competitors, so there is certainly strong reason to work toward a more engaged workforce.
Under the ADA, employers are:
Not required to make reasonable accommodations if the applicant or employee does not request it; Not required to make reasonable accommodations if applicants don't meet required qualifications for a job; Not required to lower quality standards or provide personal use items such as glasses or hearing aids to make reasonable accommodations; and Not required to make reasonable accommodations if to do so would be an undue hardship.
Every time that we survey managers in any industry or any department about managing others, they bring up the following issues as being among the most important and most difficult things that they deal with
Productivity—defined above Job satisfaction—a feeling of well-being and acceptance of our place in the organization Turnover—permanent loss of workers from the organization. When people quit, it is considered voluntary turnover, while when people are fired, it is involuntary turnover. Absenteeism—temporary absence of employees from the workplace
After a survey, the three biggest HRM challenges were concluded to be:
Retaining and rewarding the best employees Developing the next generation of corporate leaders Creating a corporate culture that attracts the best employees
Partly as a result of this shortage of skilled labor, we are seeing more older employees with high-level skill sets remain in the workforce
Some agencies estimate that over 90% of the growth in the US labor force between 2006 and 2016 will be from workers ages 55 and older.29 So as a manager in a 21st century organization, your workforce will look much older than it has historically.
The Internal Environment
Strategy, Culture, Structure
Types of Discrimination.
The 1964 CRA identified three types of discrimination. Subsequent court rulings helped to further define the three types: disparate treatment; disparate impact; and pattern or practice.
Title VII of the Civil Rights Act of 1964 (CRA)
The 1964 CRA states that it is illegal for an employer "(1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin; or (2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, or national origin."8
Americans with Disabilities Act of 1990 (ADA), as Amended in 2008
The ADA is one of the most significant employment laws ever passed in the United States. It prohibits discrimination based on disability in all employment practices, such as job application procedures, hiring, firing, promotions, compensation, and training. It applies to virtually all employers with 15 or more employees in the same basic ways as the CRA of 1964 does. There are, however, many things about the ADA that make it difficult for employers to implement. The first of these is the definition of the word "disability." The ADA defines a disability as a physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment, or being regarded as having such an impairment
Age Discrimination in Employment Act of 1967 (ADEA)
The ADEA prohibits discrimination against employees age 40 or older, so it added the "protected class" of age. In this case, it applies if the organization has 20 or more workers instead of 15. The wording of this act almost exactly mirrors Title VII with the exception of the 20-worker minimum.
Major HR Responsibilities of HR Staff and Line Management: Staffing.
The HR staff generally recruits employees, but line managers select who is hired.
Pregnancy Discrimination Act of 1978 (PDA)
The Pregnancy Discrimination Act prohibits discrimination against women affected by pregnancy, childbirth, or related medical conditions as unlawful sex discrimination under Title VII and requires that they be treated as all other employees for employment-related purposes, including benefits.16 Again, this law is mandatory for companies with 15 or more employees, including employment agencies, labor organizations, and state and local governments.
Veterans Benefits Improvement Act of 2004 (VBIA)
The VBIA was enacted as an amendment to USERRA. It extended the requirement for employers to maintain health care coverage for employees who were serving on active duty in the military (originally, this period was 18 months, but the VBIA changed it to 2 years), and it also required employers to post a notice of benefits, duties, and rights under USERRA/VBIA in a place where it would be visible to all employees who might be affected.
If the EEOC cannot come to an agreement with the organization, there are two options:
The agency may aid the alleged victim in bringing suit in federal court. It can issue a "right-to-sue" letter to the alleged victim. A right-to-sue is a notice from the EEOC, issued if it elects not to prosecute an individual discrimination complaint within the agency, that gives the recipient the right to go directly to the courts with the complaint.
Based on many court decisions, a function can generally be considered essential if it meets one of the following criteria:
The function is something that is done routinely and frequently in the job. The function is done only on occasion, but it is an important part of the job. The function may never be performed by the employee, but if it were necessary, it would be critical that it be done right
Knowledge Workers Are in Short Supply.
The majority of jobs being created in the United States require skills possessed by only 20% of the current workforce."
Practitioner's Model for HRM
The practitioner's model is designed to show you how each of the areas within HRM interact and which items you must deal with before you can go on to successfully work on the next section—kind of like building a foundation before you build a house Section I: 21st Century HRM, Strategic Planning, and HR Laws. Section II: Staffing. Section III: Developing and Managing. Section IV: Compensating. Section V: Protecting and Expanding.
Equal Employment Opportunity Commission (EEOC)
The various federal equal employment opportunity (EEO) laws are enforced by the Equal Employment Opportunity Commission (EEOC). The EEOC is a federal agency that has significant power over employers in the process of investigating complaints of illegal discrimination.
Vietnam Era Veterans Readjustment Assistance Act of 1974 (VEVRAA)
This act again provides basically the same protection as the CRA does, but for Vietnam veterans. However, it only applies to federal contractors. It requires that "employers with federal contracts or subcontracts of $100,000 or more provide equal opportunity and affirmative action for Vietnam era veterans, special disabled veterans, and veterans who served on active duty during a war or in a campaign or expedition for which a campaign badge has been authorized."
Lilly Ledbetter Fair Pay Act of 2009 (LLFPA)
This law amended Title VII of the 1964 CRA. In practical terms, the LLFPA extends the period of time in which an employee is allowed to file a lawsuit for compensation (pay) discrimination. The 1964 CRA only allowed 180 days from the time of the discriminatory action for an individual employee to file a lawsuit. The LLFPA allows an individual to file a lawsuit within 180 days after "any application" of that discriminatory compensation decision, including every time the individual gets paid, as long as the discrimination is continuing, which would usually be for the entire period of their employment.
Employee Relations
This specialty covers a wide array of items such as coaching, counseling, and disciplining the workforce as needed. It also involves leadership and team-building efforts within the organization. We also measure and evaluate job satisfaction and employee engagement as part of employee relations. HR managers in this function have to keep up with the many and varied laws relating to employee relations, and this specialty also involves the management of employee communication.
Measurement Tools for Strategic HRM
Two of the most common tools are economic value added (EVA) and return on investment (ROI).
Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA)
USERRA was passed to ensure the civilian reemployment rights of military members who were called away from their regular (nonmilitary) jobs by US government orders. Unlike other EEO laws, there is no minimum number of employees required for coverage by USERRA.25 Per the US Department of Labor website, "USERRA is intended to minimize the disadvantages to an individual that occur when that person needs to be absent from his or her civilian employment to serve in this country's uniformed services. USERRA makes major improvements in protecting service member rights and benefits by clarifying the law and improving enforcement mechanisms."
employee engagement
a combination of job satisfaction, ability, and a willingness to perform for the organization at a high level and over an extended period of time
Effectiveness
a function of getting the job done whenever and however it must be done. It answers the question, "Did we do the right things?"
Efficiency
a function of how many organizational resources we used in getting the job done. It answers the question, "Did we do things right?"
Strategy
a plan of action designed to achieve a particular set of objectives.
Bona Fide Occupational Qualification (BFOQs)
a qualification that is absolutely required in order for an individual to be able to successfully do a particular job.
productivity center
a revenue center that enhances the profitability of the organization through enhancing the productivity of the people within the organization.
OUCH Test: Consistent in Effect: Four-Fifths Rule
a test used by various federal courts, the Department of Labor, and the EEOC to determine whether disparate impact exists in an employment test. If the selection ratio for any group (e.g., Asian males) is less than four-fifths of the selection rate for the majority group (e.g., white males) in any employment action, then it constitutes evidence of potential disparate impact.
Information Age
an era that began around 1980, in which information became one of the main products used in organizations; it is characterized by exponential increases in available information in all industries.
Business skills (HRM Skills)
are the analytical and quantitative skills—including in-depth knowledge of how the business works and its budgeting and strategic planning processes—that are necessary for a manager to understand and contribute to the profitability of the organization.
In defining reasonable accommodations, it is also necessary to distinguish between "essential" and "marginal" job functions. Essential functions:
are the fundamental duties of the position
Disparate (Adverse) Treatment
exists when individuals in similar situations are intentionally treated differently and the different treatment is based on an individual's membership in a protected class Disparate treatment is generally illegal unless the employer can show that there was a "bona fide occupational qualification" (or BFOQ) that caused the need to intentionally disallow members of a protected group from applying for or getting the job.
Compensation and Benefits
helps decide the total compensation package that the organization will use to attract and retain the best mix of people with skills that are specifically suited to the organization. A manager will have to understand the federal and state laws that deal with compensation. You would also deal directly with all of the federal and state compensation laws to ensure compliance in organizational pay and benefits procedures
Staffing
includes all of the things that we need to do to get people interested in working for our company—going through the recruiting process, selecting the best candidates who apply, and getting them settled into their new jobs.
Human Resource Information Systems (HRIS)
interacting database systems that "aim at generating and delivering HR information and allow us to automate some human resource management functions."
Economic value added (EVA)
is a measure of profits that remain after the cost of capital has been deducted from operating profits. EVA = Net operating profit after tax − ( Capital used × Cost of capital )
Return on investment (ROI)
is a measure of the financial return we receive because of something that we do to invest in our organization or its people. ROI = Gain from investment − Cost of investment Cost of investment
The OUCH test
is a rule of thumb rule used whenever you are contemplating any employment action, to maintain fairness and equity for all of your employees or applicants. You should use this test whenever you are contemplating any action that involves your employees.
Retaliation
is a situation where the organization takes an "adverse employment action" against an employee because the employee brought discrimination charges against the organization or supported someone who brought discrimination charges against the company
mission statement
lays out our expectations of what we're going to do in order to become the organization that we have envisioned.
Major HR Responsibilities of HR Staff and Line Management: The Legal Environment: EEO and Diversity Management.
the HR staff needs to know the laws and train the line managers how to operate within the law, such as what line managers can and can't ask during the interview process to follow EEO laws. HR staff may develop diversity programs and teach line managers how to work with a diversity of employees.
Technical skills (HRM Skills)
the ability to use methods and techniques to perform a task.
discrimination
the act of making distinctions or choosing one thing over another
Safety and Security
you might work in the area of occupational safety and/or health to make sure we don't injure our people or cause them to become sick because of exposure to some substance they work with. This discipline also includes fields such as stress management and employee assistance programs, which help employees cope with the demands of their jobs on a daily basis. And finally, this function works to ensure that employees are secure from physical harm inflicted by other workers, outsiders, or even acts of nature.
Ethics and Sustainability
you would bear responsibility for seeing to it that the organization acts in an ethical and socially responsible manner. You might work on codes of ethics and also make sure employees live by those codes, such as by maintaining ways in which employees can report violations of ethics (also known as whistle-blowing).
