Managing Human Capital 1

Americans with Disabilities Act of 1990

-prohibits discrimination against individuals with disabilities -covers: employers with more than 15 employees working more than 20 weeks per year -disability: physical or mental impairment that substantially limits one or more major life activities, a record of such an impairment, or being regarded as having such an impairment -reasonable accommodation: -employee must make a specific request -must flexibly interact with the employer- good faith on both sides -must not impose undue hardship on employer -examples: making facilities accessible, modify exams or training programs, provide qualified readers or interpreters, modify work schedules, acquire or modify equipment

Age Discrimination in Employment Act of 1967

-prohibits discrimination in employment against individuals 40 years of age and older -covers: employers with 15 or more employees working 20 or more weeks per year; labor unions; employment agencies; federal government -age discrimination complaints make up a large percentage of the complaints filed with the Equal Employment Opportunity Commission (EEOC) -complaints of age discrimination grow when the economy is slow -because companies try to save labor costs by laying off older workers

Equal Pay Act of 1963

-requires that men and women performing equal jobs receive equal pay -covers: employers engaged in interstate commerce -equal is defined in terms of skill, effort, responsibility, and working conditions

Equal Employment Opportunity Commission (EEOC)

-responsible for enforcing most of the EEO laws -investigates and resolves complaints about discrimination -gathers information -issues guidelines -monitors organizations' hiring practices -complaints must be filed within 180 days of the incident -EEOC has 60 days to investigate the complaint -types of charges filed with EEOC: -age -*race -disability -sex -*retaliation: company fires you because you complain

Affirmative Action

-set of laws, policies, guidelines and administrative practices intended to end and correct the effects of a specific from of discrimination -recruitment of under-represented groups -altering managerial/supervisory attitudes to eliminate prejudice -removing discriminatory barriers in hiring -using a quota, or giving preferential treatment hiring and promotion to groups that have been underrepresented in the organization's workforce -be careful how you conduct -promote diversity -understanding need to recruit minorities --> diversifying and gaining new customers -law that originally instituted this: Title VII Civil Rights Act of 1964

Sexual Harassment. Discrimination based on sex. two types

-sexual harassment refers to the unwelcome sexual advancements. -unwelcome sexual advances, requests for sexual favors, and other verbal or physical contact of a sexual nature constitute sexual harassment when: 1. submission to such conduct is made either explicitly or implicitly a term of condition of an individual's employment 2. submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individuals 3. such conduct has the purpose of effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive environment -Two Major Types: 1. Quid pro quo -clear employment consequences -sexual favor --> promotion, raise, hired, (benefits) -a person makes a benefit (or punishment) contingent on an employee's submitting to (or rejecting) sexual advances -more obvious 2. Hostile environment -repeated sexual or gender-stereotyped abuse that interferes with job performance -typically co-workers -judgement calls -someone's behavior in the workplace creates an environment in which it is difficult for someone of a particular sex to work -more subtle, possibly more persuasive -if happen, go to offender first. then boss. then HR

Teamwork (high performance work system trend)

-the assignment of work to groups of employees with various skills who interact to assemble a product or provide a service -work teams often assume many of the activities traditionally reserved for managers: -selecting new team members -scheduling work -coordinating work with customers and other units of the organization -increases employee responsibility and control -can motivate employees by making work more interesting and significant

Telework

-the broad term for doing one's work away from a centrally located office -advantages to employers include: -less need for office space -greater flexibility to employees with special needs -easiest to implement for managerial, professional, or sales jobs -difficult to set up for manufacturing workers

Equal Employment Opportunity (EEO)

-the condition in which all individuals have an equal chance for employment, regardless of their race, color, religion, sex, age, disability, or national origin -the federal government's efforts in this area include: -constitutional amendments -legislation -executive orders -court decisions

the nature of the employment relationship is changing

-the employment relationship takes the form of a psychological contract that describes what employees and employers expect from the employment relationship -in the traditional version, organizations expected employees to contribute time, effort, skills, abilities, and loyalty in exchange for job security and opportunities for promotion -today, organizations' needs are constantly changing -today organizations are requiring top performance and longer work hours but cannot provide job security -instead, employees are looking for: -flexible work schedules -comfortable working conditions -greater autonomy (self rule) -opportunities for training and development -performance-related financial incentives -this requires planning for flexible staffing levels

Outsourcing

-the practice of having another company (a vendor, third-party provider, or consultant) provide services -outsourcing gives the company access to in-depth expertise and is often more economical -HR departments help with transition to outsourcing

Job Design

-the process of defining how work will be performed and what tasks will be required in a given job -job redesign: a similar process that involves changing an existing job design -managers should tailor job to employee -small things can make employees happy - to design jobs effectively, a person must thoroughly understand: -the job itself (through job analysis) -its place in the units work flow (work flow analysis) -biggest reason why people leave: don't like their manager -big problem with manager and employees liking their job

Typical careers in HRM and their salaries

-top HR management executive -highest paid -human resource information system specialist -lowest pay -HR director -compensation manager -organization development/training manager -employment and recruiting manager -senior HR generalist

Religious Discrimination

-treating a person unfavorably because of their religious beliefs or of treating a person unfavorable with ties to an individual of a particular religion -law forbids discrimination in workplace -illegal to harass -law requires an employer to reasonably accommodate an employee's religious beliefs or practices, unless doing so would cause more than a minimal burden on the operations of the employer's business -an employer may be required to make reasonable adjustments to the work environment that will allow an employee to practice his or her religion -examples: flexible scheduling, voluntary shift substitutions or swaps, job reassignments, modifications to workplace policies or practices -unless it would be an undue hardship on the employer's operation of its business, an employer must reasonably accommodate an employee's religious beliefs or practices

Pregnancy Discrimination Act of 1978

-treats discrimination based on pregnancy-related conditions as illegal sex discrimination -covers all employees covered by Title VII (15 or more employees working 20 or more weeks per year) -defines discrimination on the basis of pregnancy, childbirth, or related form of medical condition to be a form of illegal sex discrimination -benefits, including health insurance, should cover pregnancy and related medical conditions in the same way as other medical conditions -requires that employers offer disability plans to handle pregnancy concerns as they would any other disability

Job Specification

-a list of knowledge, skills, abilities, and other characteristics (KSAOs) that an individual must have to perform a particular job -knowledge: factual or procedural information necessary for successfully performing a task -skill: an individual's level of proficiency at performing a particular task -ability: a more general enduring capability that an individual possesses -other characteristics: job-related licensing, certifications, or personality traits -required KSAOs -education, experience, training, mental and physical abilities, etc.

Change in Employment Relationship

-a new psychological contract -flexibility -flexible staffing levels -flexible work schedules

New technology influencing HRM

-internet portal -combines data from several sources into a single site -lets user customize data without programming skills -shared service centers -consolidate different HR functions into a single location -application service provider (ASP) -lets companies rent space on a remote computer system and use the system's software to manage its HR activities -business intelligence -provides insight into business trends and patterns and helps businesses improve decisions

Supreme Court on Affirmative Action

-plan's can't seriously violate the rights of the majority group or current employees -plan should be temporary in nature and flexible -plans must have a specific, reasonable purpose -race and sex can be used as a positive characteristic in comparing candidates -organizations can develop voluntary affirmative action plans without admitting past or present imbalances -no permanent plan

Civil Rights Act of 1991

-prohibits discrimination (same as Title VII) -covers: -15 or more employees working 20 or more hours per week -applies Section 1981 to employment discrimination cases -adds compensatory (payment) and punitive (punishment) damages in cases of discrimination under Title VII and the ADA -the amount of punitive damages is limited by the act and depends on the size of the organization charged with discrimination

Avoiding Discrimination

-Disparate Treatment -differing treatment of individuals based on the individuals' race, color, religion, sex, national origin, age, or disability status -avoid discrimination by not treating people differently -example of case that would most likely be subject to a lawsuit filed under the disparate treatment theory of discrimination: -a woman with school-aged children is rejected on the assumption that she will frequently be absent from work -Bona Fide Occupational Qualification (BFOQ) -a necessary (not merely preferred) qualification for performing a job -the Supreme Court has ruled that BFOQ's are limited to the policies directly related to a worker's ability to do the job -example: the person they hire must be fluent in Spanish because their customers only speak Spanish -Disparate Impact -a condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities -company not treating people differently but people are impacted by company's actions -can't treat white people differently -avoid by avoiding doing things that will impact people -the plaintiff (person who brings case, victim) does NOT need to prove that the employer intended to discriminate -can't treat white people differently either. all must be treated equally. cannot just have celebration for a minority and not for white people -Four-Fifths Rule -rule of thumb that finds evidence of discrimination of an organization's hiring rate for a minority group is less than four-fifths the hiring rate for the majority group

Employee Empowerment (high performance work system trend)

-Employee Empowerment -giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service -Employee Engagement -full involvement in one's work and commitment to one's company

Ethical issues that arise in human resource management

-Employee Rights -rights of free consent -right of privacy -right of freedom of conscience (beliefs. ie religion and thoughts) -right of freedom of speech -right to due process

Flexible Work Schedules

-Flextime -a scheduling policy in which full-time employees may choose starting and ending times within guidelines specified by the organization -a work schedule that allows time for community and interests can be extremely motivating -Job sharing -a work option in which two part-time employees carry out the tasks associated with a single job -enables an organization to attract or retain valued employees who want more time to attend school or take care of family matters

Skills of HRM Professionals

-Human Relations Skills -Decision-Making Skills -Leadership Skills -Technical Skills

Impact of Human Resource Management

-Human Resource Management --> type of human capital and behavior of human capital --> organizational performance -Type of Human Capital -training -experience -judgement -intelligence -relationships -insight -Behavior of Human Capital -motivation -effort -Organizational Performance -quality -profitability -customer satisfaction

Job Enlargement

-Job enlargement: broadening the types of tasks performed in a job -horizontal -add more tasks to one job -could be repetitive -receptionist: add making appointments -Job extension: enlarging jobs by combining several relatively simple jobs to form a job with a wider range of tasks -vertical -adding responsibility -Job rotation: enlarging jobs by moving employees among several different jobs

Expanding into Global Markets

-Offshoring -moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available -The International Labor Pool -hiring at home may involve selection of employees from other countries -the beginning of the 21st century has seen significant immigration

High Performance Work systems

-Organizations that have the best possible fit between their: -social system (people and how they interact) -technical system (equipment and processes) -Key trends occurring in today's high performance work systems: -reliance on knowledge workers -the empowerment of employees to make decisions -the use of teamwork -Relevant to HR because: -employees will be happy (happy if like the people they work with and good communication between them) -talent managed well -people trained properly if able to use technical systems -people integrated properly (mentor maybe or whatever) if social and technical good at

Human Resource Management (HRM)

-The policies, practices, and systems that influence employees': -behavior -attitudes -performance -system(s) used for managing people in the organization -talent management -how to manage talent/skills -get best out of employees and keep them happy and staying at company -happy employees --> productivity --> more money key functions: -where do we need people? get those people - how to keep people happy

Strategic HRM. Strategic HRM vs Traditional HRM

-Traditional: -managers and economists traditionally have seen human resource management as a necessary expense rather than as a source of value to their organizations -focus on employee relationships -do not value HR, think waste and not needed -see people as expenses -reactive -separate, isolated from company mission -follower -strict control over employees -bounded by strict regulations -specialization -Strategic: -cross train -focus on internal and external relationships -more leniency and freer -leniency over employees (employee empowerment) -leader that brings change -value HRM -make HRM a top priority -formulating and executing HR systems that produce the employee competencies and behaviors the company needs to achieve its strategic aims -see people as key investments/assets -proactive -key part of organization mission -focus on productivity -see HRM as a value and necessary and willing to spend money on -talent management is now a make or break corporate competency -HR has become a truly strategic function -terms of "New HR" are being defined at top-tier firms that know what it takes to stay ahead of the curve -use to stay ahead of curve and have competitive advantage (-focus: partnerships with internal and external customers)

Job Analysis

-a purposeful, systematic process for collecting information on the important, work-related aspects of a job -a detailed statement of worker behaviors and other information relevant to the job (this may be an outcome of job analysis) -skills required for the job -tasks needed to be accomplished -where everything starts for jobs -outcomes of job analysis: 1. job description: describes the job- TDRs 2. job specification - required KSAOs -importance of job analysis: -job analysis is so important to HR managers that it has been called the building block of HRM functions -almost every HRM program requires some type of information determined by job analysis: work redesign, human resource planning, selection, training, performance appraisal, career planning, job evaluation -trends -organizations are being viewed as a field of work needing to be done, rather than as a set of series of jobs held by individuals -dejobbing: designing work by project rather than jobs -laws have helped re-emphasize the importance of job analysis: ADA

Job Specification: Skills vs Ability

-ability: more stable and more natural -more general -skill: more malleable (adaptable)

Sustainable Competitive Advantage

-an organization can succeed if it has sustainable competitive advantage -human resources have the necessary qualities to help give organization this advantage -when an organization is able to perform an activity to a greater degree than its competitors for an extended period of time -relevant to HR: -trained and developed employees well (did well at that step) -selected the right employees -employees are happy. employees are happy they are more productive and want to work --> performing at greater degree

International Assignments

-besides hiring an international workforce, organizations must be prepared to send employees to other countries -this requires HR expertise in selecting and preparing employees for international assignments -expatriates: employees who take assignments in other countries are called expatriates

Policy Implications for Sexual Harassment

-define sexual harassment and company disapproval -define sanctions and penalties for violations -inform employees of their legal rights -establish grievance procedure that is sensitive to the rights of all parties -investigate and follow up (an then again!)

Job Description

-describes the job- TDRs -job title and location, job tasks, reporting relationships, authority, performance standards, working conditions, machines, tools, materials -a list of tasks, duties and responsibilities (TDRs) that a particular job entails -key components: -job title -brief description of the TDRs -list of the essential duties with detailed specifications of the tasks involved in carrying out each duty -can't be too specific or too vague -otherwise people wont apply

Why Dejobbing difficulties organizations might encounter in attempting to analyze jobs in modern organizations

-designing work by project rather than jobs -broadening the responsibilities of the company's jobs -encouraging employee initiative -internal factors leading to dejobbing -flatter organizations -work teams -external factors leading to dejobbing -rapid product and technological change -global competition -deregulation -demographic changes -rise of a service economy

At Companies with Effective Human Resource Mangement

-employees and customers tend to be more satisfied -the companies tend to: -be more innovative -have greater productivity -develop a more favorable reputation in the community -reduced costs

Knowledge Workers (high performance work system trend)

-employees whose contribution to the organization is specialized knowledge, such as: -knowledge of customers -knowledge of a process -knowledge of a profession -they are especially needed for jobs in: -health services -business services -social services -engineering -management

Job Enrichment

-empowering workers by adding more decision-making authority to jobs -based on Herzberg's theory to motivation -individuals are motivated more by the intrinsic aspects of work -self-managing work teams -have authority for an entire work process or segment -schedule work -hire team members -resolve team performance problems -perform other duties traditionally handled by management -team members motivated by autonomy, skill variety, and task identity

Title VII Civil Rights Act of 1964

-forbids discrimination based on race, color, religion, sex, or national origin -applies to organizations that employ 15 or more employees that work 20 or more weeks per year -it is unlawful to fail to hire or otherwise discriminate against any individual because of such individual's race, color, religion, sex, national origin; or to limit, segregate or classify his employees or applicants for employment in any way which would deprive any individual of employment opportunities because of the individual's race -reverse: do not discriminate against caucasians (do not discriminate against any race) -exemptions to the coverage: -if the organization has less than 15 employees working less than 20 weeks per year -non labor unions -non employment agencies -categories that later federal legislation served to protect: -age -disability -pregnancy

Human Capital

-helping other companies select, retain and groom their employees -the employees. the people -their intelligence and capability -skills, knowledge, and experience possessed by an individual. viewed in terms of their value or cost to an organization -relevant to HR: -selecting good employees -training them so they can succeed and do their best

Supreme Cout Guidelines on Sexual Harassment

-important questions to ask before deciding if it is sexual harassment -How frequent is the discriminatory conduct? -How severe? -Did the claimant find the conduct physically threatening, humiliating, or abusive? -Would a "reasonable person"? -Does the conduct interfere with work performance? -Does the behavior alter the conditions of employment?

Labor Force. what is a labor force?

-internal labor force -an organization's workers -its employees -the people who have contracts to work at the organization -the internal labor force has been drawn from the external labor market -external labor market -individuals who are actively seeking employment -the number and kinds of people in the external labor market determine the kinds of human resources available to an organization -most companies will look for employees externally first -someone new, but need to be trained

Job Analysis informatin

-types of information gathered: -work activities: work activities performed; how, why when activity is performed -human behaviors: communicating, decision making; other physical job demands e.g. lifting -tools, equipment used: products made; knowledge dealt with/applied; services rendered -performance standard: quantity, quality, speed; used to evaluate employee performance -job context: physical work conditions; work group; incentives for doing job -human requirements: job-related knowledge, skills; personal attributes, e.g. personality. aptitudes -uses of job analysis information: -EEO Cases- to show job relatedness (BFOQ) -recruitment and selection- what attributes are needed from candidates? -training and development- what skills do workers need to perform the job? -performance appraisal- what should be appraised (evaluated) for the job -career development -compensation -methods of collecting job analysis information -interview -most widely used technique -interview subject matter experts (SMEs) -use a standardized format -success depends on interviewer skill -questions: -what is the job being performed? -what are the major duties of your position? -what physical locations do you work in? -what activities do you participate in? -what are the job's responsibilities and duties? -what are the job's physical demands? emotional and mental demands? working conditions? -observation -watch the workers perform the job -not appropriate for all jobs -time-consuming and expensive -observer should be unobtrusive -can provide good data- background -risk: workers act differently when being observed -critical incidents -something an employee did very well or very badly that effected the results of their work -an actual job behavior that resulted in effective or ineffective job performance -it must be a report of an actual job behavior -describe the circumstances that led up to the incident -describe exactly what happened that was effective/ineffective -note the consequences of the behavior -results in a number of behaviors (incidents) that discriminate effective from ineffective performance -creates jobs --> redesigning jobs -problem: can't always wait for critical incident to redesign job -participant diary/log -write a diary of what they (employees) do -questionnaires -position analysis questionnaire -a standardized job analysis questionnaire containing 194 questions about work behaviors, work conditions, and job characteristics that apply to a wide variety of jobs -key sections: information input, mental processes, work output, relationships with other persons, job context, other characteristics

Exercise: trends in workforce and their implications and how to deal with them

1. Aging workforce -suggest new way: show metrics -mentors 2. Prime-age (around my age) -communication (prob?) -with older people -less educated -look for a mentor 3. Manufacturing --> Service -retrain current employees -ex> car (manufacturing) --> having wifi, bluetooth (service) 4. Dual Career -time management -doesn't matter where/when the work gets done as long as it gets done -remote work -people want to have careers -companies need to be flexible- time -people have careers and family 5. Women (increasing number of women in workforce) -lower pay -why: women do not negotiate because focus on nurturing -women tend to be better managers -why: nurturing, positive emotions -men too focused on getting things done, competitive -want higher pay/equal pay, paid maternity leave, family time, respect from men/respected as much as a man 6. Minority -equal employment opportunity -stereotypes 7. Foreign born employees -problems: -do not have US citizenship -take education -that was paid for by US and taught by US- and training and leave to go back to home country and use skills learned/trained in home country -integration -language (global companies, asset, power)

Change in the labor force. trends

1. An aging workforce -we are going to work with old people -people don't want to retire. because: -family business, need money, routine, keep busy and active, stay in shape -hard for younger and older generation to connect and work together -older employees are willing and able to learn about new technology -suggest a new way: show metrics -mentors -older people will not listen to/follow younger people who are higher up? -people are working past retirement age 2. A Diverse Workforce -implications: -cultural differences -communication between cultures -opportunities: -different ideas and viewpoints -global company -increasingly racially diverse workforce -number of minorities in the workforce increasing, while whites decreasing -increase in foreign-born people in the workforce 3. Skill Deficiencies of the Workforce -skills companies looking for: -*adaptability -*ability to learn -*trainability -mathematical skills -verbal skills -interpersonal skills -computer skills -malleable, want to learn -interpersonal skills, good at teamwork -cooperative -problem solving -communication -creativity -ideal profile company wants is hard to find -the gap between skills needed and skills available has decreased companies ability to compete -firms sometimes lack the capacity to upgrade technology, reorganize work, and empower employees

Human Resource Management Practices

1. Analysis and design of work -the functions of a position -process of work conducted, can change, can design in any way you want -need to be challenged 2. HR Planning -plan: number of people to hire, how many people will need in next year ex: plan to hire more people for holidays -improve 3. Recruiting -try to get people to work for you -advertising, events (ex. career fair) -attracting people 4. Selection -dwindle people down -interviews 5. Training and Development -orientation -skills development programs -get introduced to colleagues -culture -mentor/shadow -know what trainings you'll get -ex.: rotational programs 6. Compensation -salary, insurance, vacation, retirement plans, etc. 7. Performance Management -performance measures -how: feedback, performance reviews (performance reviews do not happen often enough. usually only happen annually but that is not enough. employee could be doing the wrong thing for a long time and not even know it) 8. Employee Relations (we won't talk about) All leads to Company Performance

Standards for identifying ethical human resource management practices

1. HRM practices must result in the greatest good for the largest number of people 2. Employment practices must respect basic human rights of privacy, due process, consent, and free speech 3. Managers must treat employees and customers equitably and fairly

Ethical companies act according to four principles

1. Mutual Benefits -in their relationships with customers, vendors, and clients, ethical companies emphasize mutual benefits 2. Responsibility -employees assume responsibility for the actions of the company 3. Sense of Purpose -the company has a sense of purpose or vision that employees value and use in their day-to-day work 4. Fairness -they emphasize fairness

Job Characteristics Model

1. Skill variety: the extent to which a job requires a variety of skills to carry out the tasks involved 2. Task identity: the degree to which a job requires completing a whole piece of work from beginning to end 3. Task significance: the extent to which the job has an important impact on the lives of other people 4. Autonomy: the degree to which the job allows an individual to make decisions about the way work will be carried out 5. Feedback: the extent to which a person receives clear information about performance effectiveness from the work itself

Steps that can companies can take to make sure workplaces are sexual harassment free prevention, avoidance, correction

1. develop a clear policy statement stating that sexual harassment will not be tolerated 2. train all employees to identify inappropriate workplace behavior 3. develop a mechanism for reporting incidents of harassment 4. take prompt disciplinary action against those who commit sexual harassment -correction: needs to be action when a case of sexual harassment happens