Managing Human Capital

layoffs and downsizings

Managing employee separations fairly and equitably

shared service center

centralizes routine, transaction-based HRM activities

race norming

comparing an applicant's scores only to members of his or her own racial subgroup and setting separate passing or cutoff scores for each subgroup

gap analysis

comparing labor supply and demand forecasts to identify future talent needs

direct financial compensation

compensation received in the form of salary, wages, commissions, stock options, or bonuses

centralized

concentrate power and decision-making authority at higher levels of the organization

stakeholder perspective

considers the interests and opinions of all people, groups, organizations, or systems that affect or could be affected by the organization's actions supports social responsibility.

bona fide occupational qualification

is a characteristic that is essential to the successful performance of a relevant job function

critical incidents job analysis technique

job experts describe stories of good and poor performance to identify desirable and undesirable competencies, behaviors, etc.

structured interview technique

job experts provide information about the job during a structured interview

human resource strategy

links the entire human resource function with the firm's business strategy

vision

long-term goals regarding what the organization wants to become and accomplish describing its image of an ideal future

code of conduct

specify expected and prohibited actions in the workplace and give examples of appropriate behavior

organizational culture

the norms, values, and assumptions of organizational members that guide members' attitudes and behaviors

span of control

the number of people reporting directly to an individual

mission

the organization's basic purpose and the scope of its operations

human resource management

the organizational function responsible for attracting, hiring, developing, rewarding, and retaining talent

ethics

the standards of moral behavior that define socially accepted behaviors that are right as opposed to wrong

total rewards

the sum of all of the rewards employees receive in exchange for their time, efforts, and performance

job rotation

workers are moved through a variety of jobs to increase their interest and motivation

unlawful employment practices

violations of federal, state, or local employment laws

Health and Safety

wellness, fire and food safety, ergonomics, injury management, disaster preparedness, etc.

unfair discrimination

when employment decisions and actions are not job-related, objective, or merit-based

fair discrimination

when only objective, merit-based, and job-related characteristics are used to determine employment-related decisions

HRM influences

1. what employees should do 2. what employees can do 3. what employees will do

three types of systemic errors

1. Omission errors 2. Remission errors 3. Commission errors

common ethical issues in HRM

1. Privacy Issues 2. Staffing 3.Layoffs and Downsizings 4. Rewards 5. Safety 6. Performance Appraisal 7. Labor Practices

Functions of HRM

1. Staffing 2. Health and Safety 3. Employee Management relations 4. Benefits and Rewards 5. Training and Development 6. Performance Management

2 broad areas HRM is responsible for

1. Talent/ Employees 2. Employement related legal compliance

Ethical dilemma resolution approaches

1. Utilitarian Standards 2. rights standards 3. fairness standards 4. common good standards 5. virtue standards

four common biases to equal employment

1. stereotyping 2. prejudice 3. perception of possible personal loss if a member of a previously advantaged group feels that diversity initiatives will hurt their own career prospects. 4. ignorance.

Helps manage 4 types of risks

1. strategic risks 2. operational risks 3. financial risks 4. compliance risks

safety

Deciding how to handle bullying; creating and enforcing safety and health policies; managing work stress and employee wellness

David Lewin

Developed the "dual theory of HRM and business performance" Determined that it was a mutually beneficial relationship.

seven elements of high performance work systems

Employment security Selective hiring of new talent Self-managed teams and decentralization of decision making as the basic principles of organizational design Comparatively high compensation contingent on organizational performance Extensive training Reduced status distinctions and barriers, including dress, language, office arrangements, and wage differences across levels Extensive sharing of financial and performance information throughout the organization

performance appraisal

Ensuring objectivity and fairness; avoiding the use of nonperformance factors in the performance evaluation

staffing

Handling pressure to hire a friend or family member; dealing with employees found to have faked their credentials during the hiring process; avoiding illegal discrimination

privacy issues

Keeping employees' and applicants' personal and medical information private; deciding on the appropriate use of employee surveillance (including via email and video cameras); maintaining confidentiality

rewards

Responding to pressure to classify a person into a job grade higher than they deserve in order to give them a raise; responding to pressure to give executives more generous incentives or benefits than is necessary; paying fair wages

workplace tort

a civil wrong in which an employer violates a duty owed to its customers or employees

negligent hiring

a company is considered responsible for the damaging actions of its employees if it failed to exercise reasonable care in hiring the employee who caused the harm

professional employer organization

a company that leases employees to companies that need them

commission errors

a failure to follow sound, established operational and ethical practices

equal employment opportunity

a firm's employment practices must be designed and used in a manner that treats employees and applicants consistently regardless of their protected characteristics, such as their sex and race

job enrichment

a job design approach that increases a job's complexity to give workers greater responsibility and opportunities to feel a sense of achievement

omission errors

a lack of written rules

Strategic Planning

a process for making decisions about an organization's long-term goals and how they are to be achieved

action plans

a strategy for proactively addressing an expected talent shortage or surplus

talent philosophy

a system of beliefs about how an organization's employees should be treated

job analysis

a systematic process used to identify and describe the important aspects of a job and the characteristics a worker needs to perform the job well

job enlargement

adding more tasks at the same level of responsibility and skill related to an employee's current position

Performance Management

aligning individual employees goals and behavior with organizations goals and strategies.

human resource planning

aligning the organization's human resources to effectively and efficiently accomplish the organization's strategic goals

reasonable accommodation

an employer is required to take reasonable steps to accommodate a disability unless it would cause the employer undue hardship

labor practices

using child labor; limiting working hours; exploiting workers; respecting human rights

independent contractor

an individual or business that provides services to another individual or business that controls or directs only the result of the work

scientific management

breaks work down into its simplest elements and then systematically improves the worker's performance of each element

trend analysis

using past employment patterns to predict a firm's future labor needs

talent inventories

databases summarizing each employee's competencies, qualifications, languages spoken, and anything else that can help the company understand how the employee can contribute

code of ethics

decision-making guide that describes the highest values to which an organization aspires.

business strategy

defines how the firm will compete in its marketplace

affirmative action plan

describes in detail the actions to be taken, procedures to be followed, and standards to be met when establishing an affirmative action program

Training and Development

developing employees capabilities through formal and informal activities

competitive advantage

doing something differently from the competition that leads to outperformance and success

inclusion

everyone feels respected and listened to, and everyone contributes to his or her fullest potential

job elements job analysis methods

expert brainstorming sessions identify the characteristics of successful workers

performance culture

focuses on hiring, retaining, developing, motivating, and making work assignments based on performance data and results

stereotyping

generalizing that everyone in a certain group shares certain characteristics or behaves in the same way.

replacement charts

graphically shows current jobholders, possible successors, and each successor's readiness to assume the job

protected classes

groups underrepresented in employment

corporate social responsibility

happens when businesses show concern for the common good and value human dignity.

high performance work systems

high involvement or high commitment organizations

outsourcing

hiring an external vendor to do work rather than doing it internally

task statements

identify in specific behavioral terms the regular duties and responsibilities of a position

succession planning

identifying, developing, and tracking employees to enable them to eventually assume higher level positions

staffing ratios

indexing headcount with a business metric

disparate treatment

intentional discrimination based on a protected characteristic

fraudulent recruitment

misrepresenting the job or organization to a recruit

Benefits and Rewards

need to be adequate and equitable and reward employees for their contribution to the organization. 3 types: 1. direct financial 2. indirect financial 3.non-financial

job characteristics model

objective job characteristics including skill variety, task identity, task significance, autonomy, and task feedback, lead to job satisfaction for people with a high growth need strength

adverse impact

occurs when an employment practice results in unintentional discrimination.

prejudice

outright bigotry

remission errors

pressure to make unethical choices

employee handbooks

print or online materials that document the organization's HRM policies and procedures

affirmative action

proactive efforts to eliminate discrimination and its past effects

Staffing

process of planning, acquiring, deploying, and retaining employees to support organizations mission.

Employee Management Relations

reflects societal beliefs about relationships between employees and capital owners

judgmental forecasting

relies on managers' expertise to predict a firm's future employment needs

non-financial compensation

rewards and incentives given to employees that are not financial in nature including intrinsic rewards received from the job itself or from the work environment

common law

the body of case-by-case court decisions that determines what is legal and what remedies are appropriate

core values

the enduring beliefs and principles that guide an organization's decisions and goals

utilitarian standard

the ethical action best balances good over harm by doing the most good or doing the least harm.

virtue standard

the ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc. "Is this action consistent with my best behavior?" e.g. companies recalling a product quickly after they find out it is dangerous

common good standard

the ethical action shows respect and compassion for everyone, especially the most vulnerable. e.g. making sure no child labor is being used

rights standard

the ethical action that best respects and protects the moral rights of everyone affected by the action, including the right to privacy, to be told the truth, or to be safe. e.g. if your boss tells you to clean up hazardous materials without proper gear you have the right to refuse to do that

fairness standard

the ethical action treats all people equally, or at least fairly, based on some defensible standard. e.g. making sure CEOs are not recieving 100s times more than the average worker

cross training

training employees in more than one job or in multiple skills to enable them to do different jobs

hostile environment harassment

unwanted verbal or physical conduct of a sexual nature creates a hostile, intimidating, or otherwise offensive working environment

quid pro quo harassment

unwanted verbal or physical conduct of a sexual nature made as a term or condition of employment or as a basis for employment and/or advancement decisions

sexual harassment

unwelcome sexual advances, requests for favors, and other verbal or physical conduct of a sexual nature