MGMT 320 Human Resource Management Study Vocab Exam 1

PESTEL Analysis

!. Political Factors 2. Economic Factors 3. Socio-Cultural Factors 4. Technological Factors 5. Environmental Factor 6. Legal Factors

Strategic Fit

"Fit" - the pattern of planned human resource deployments and activities intended to enable the organization to achieve its goals.

Title VII: Sexual Harassment

"Harassment on the basis of sex that has the purpose or effect of substantially interfering with a person's work performance or creating an intimidating, hostile, or offensive work environment." The employer (in its defense) must show: 1). That it took reasonable care to prevent and promptly correct any sexually harassing behavior and 2). That the employee unreasonably failed to take advantage of the employer's policy.

Job Enrichment

"Vertical Job Loading" Job enrichment tries to embellish the job with factors that Herzberg characterized as motivators: Achievement, recognition, increased responsibilities, opportunities for growth, advancement and increased competence. There is an attempt to build into jobs a higher sense of challenge and achievement. Vertical job loading entails redesigning jobs to give:1. Greater responsibility,2. Greater autonomy,3. More immediate feedback to the individual or group.

How to collect information

- Interview - Surveys - Focus Group - Observation - Diary/Logs

Problems with Job Analysis

- Lack of Management - Lack of support from employees - Biased nature of job analyst - Using single Data Source - Inability to identify the need of job analysis

How Do We Know If We Got It Right?

- Look to retention Rate - Promotion rates - How are recruits performing 5 years after joining the company?

Employment recruitment Agencies / Headhunters

- May specialize in specific sectors (e.g. finance, secretarial). - Provide shortlist of candidates -people registered with the agency - Can supply temporary or interim employees. - Specialist skills and the speed in which they provide candidates. - Reduce the administrative burden of recruitment. - The cost is the high agency fees charged - often up to 30% of the first year's wages of anyone employed.

Approaches to Job Design

- Mechanistic Approach (scientific Management) - Motivational Approach - Human Factors Approach

Problems to avoid during the selection process

- Rushing - Stereotyping "Like me" syndrome Halo and horn effects Premature selection

Key Stages of Recruitment and Selection

- Who do we want? - How do we attract them? - How can we identify them? - How do we know if we've got it right? - Who should be involved in the process?

Protected Class / Suspect Classification

1. A group of people who have suffered discrimination in the past and who are give special protection by the judicial system 2. The groups protected from employment discrimination by law include: • Men and women on the basis of sex. • Any group which shares a common race, religion, color, or national origin • People over 40 • People with physical or mental handicaps. 3. Every U.S. citizen is a member of some protected class, and is entitled to the benefits of EEO law.

Preliminary Screening

1. Applicants' information is compared to job specifications 2. Weed out unqualified applicants and narrow down to the best applicants. 3. Information is verified to detect fictitious or misleading information and to protect the organization against negligent hiring claims.

Stakeholders

1. Community at large 2. Labor Unions 3. Investors 4. Managers 5. Employees

How Strategy Affects HRM

1. Cost-Leadership Strategy 2.Differentiation Strategy

Cost-Leadership Strategy

1. Cost-leadership means the lowest cost of operation in the industry. 2. Maximize employee efficiency and effectiveness through highly specialized jobs that require people to repeat the same task.

Disparate (Adverse) Treatment Vs. Disparate (Adverse) Impact

1. Disparate treatment Intentional discrimination on the part of the employer. 2. Disparate impact A practice or policy that has a greater adverse impact on the members of a protected group than on other employees, regardless of intent.

Tools for measuring Strategic HRM

1. Economic Value Added A measure of the profits that remain after the cost of the capital has been deducted from operating profits. 2. Return on Investment A measure of the financial return we receive because of a process that we do to invest in our organization or its people. Looks at the cost of providing the process and compare it to the returns received due to that process. Areas of HR where ROI analysis is helpful -(training, outsourcing, benefits, etc.)

HR scorecard

1. HR deliverables- what function does HR perform, and which of those services add value to the organization. 2. HR system alignment - how set of HR practices fit together and work effectively 3. HR system alignment with company strategy 4. HR efficiency measures- process of measuring the returns received by organization as a result of the HR policies

Variations in how Human Resources are managed

1. HR v. Management Responsibility for HRM 2. Degree of Centralization highly centralized headquarters controls HR decisions highly decentralized à business unit head controls HR decisions 3. Degree of Formalization (rules and procedures) 4. Strategic Importance of HRM - using people to create strategic advantage 5. Staffing of HR Department with HR Experts versus Management rotations

Three main stages in staffing process

1. Identify and define the requirement. This involves the preparation of: §Job Descriptions §Job / Person Specifications 2. Attract potential employees Using various methods for doing this 3. Select and employ the appropriate person from the job applicants

Equal Employment Opportunity Laws

1. Title VII of the Civil Rights Act of 1964. 2. The Equal Pay Act of 1963. 3. The Age Discrimination in Employment Act of 1967 4. Americans with Disabilities Act of 1990

Developing HR Strategies

1. Where are we now? 2. Where do we want to be in 1-5 years time? 3. How are we going to get there?

Age Discrimination in Employment Act (ADEA)

1967 law that prohibits arbitrary age discrimination of employees 40 years and up. • Affects employers with 20 or more employees.

Strategic Management

A continuous process consisting of a sequence of activities: 1. Strategy formulation 2. Strategic Planning 3. Implementation 4. Review 5.Updating

Job Specification

A list of the knowledge, skills, abilities, and other characteristics (KSAOs) that an individual must or ideally 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.

Americans with Disabilities Act (ADA)

ADA of 1990 • Requires employers to make reasonable accommodations for disabled employees; it prohibits discrimination against disabled persons. What classifies as a "Disability?" •A physical or mental impairment that substantially limits one or more major life activities.

Positives and negatives of Mechanistic approach

Advantage; - Task or Jobe easier to learn - Can perform very well, high quality. - Greater efficiency, can do job faster - Can select employee based on specific qualifications. Disadvantages - Task or job may be dull to some. - Productivity may decrease if employee sees job as dull and has negative reaction. - Productivity may decrease if employee has negative perspective that contributes to

Horn Effect

Also called the "Devil Effect" If a person seems particularly lacking in one key trait, then that person will often be assumed to be deficient in many other traits.

Equal Pay Act of 1963

An amendment to the Fair Labor Standards Act. Requires that male and female workers receive equal pay for work requiring equal skill, effort and responsibility, and performed under similar working conditions. Wage differentials are permitted if based on: -A seniority system -A merit system -A pay system based on quantity or quality of output -Any other factor other than sex Employers may say the higher paid employee has more experience or training, or that he was simply a better negotiator.

Title VII of the Civil Rights Act of 1964

An employer cannot discriminate on the basis of race, color, religion, gender, sexual orientation* or national origin with respect to employment. -Coverage • All public or private employers of 15 or more persons for 20 or more weeks in the current or preceding calendar year (42 U.S.C. § 2000e(b)) • All private and public educational institutions, the federal government, and state and local governments

Job Rotation

Assigning individuals to a variety of job positions. Employees rotate through a number of job positions that are at approximately the same level and have similar skill requirements. While job rotation has proven particularly beneficial in manufacturing settings, it can also be used effectively in service-related organizations.

Best Practice Approach

Belief that there is a set of best HRM practices and that their use will bring about increased organizational performance. Criticism: What might work well in one organization may not work in another because it does not mesh With the organization's strategy, culture, management style, technology or working practices.

Reasonable Person" Standard

Courts use a "reasonable person" test for determining hostile environment. Describes a hypothetical person in society who exercises average care, skill, and judgment in conduct and who serves as a comparative standard for determining liability.

criminal background checks

Depending on the extent of the criminal background check, it may contain the following information (and will likely be subject to the Fair Credit Reporting Act (FCRA):

Human Factors Approach

Designing jobs by taking into account the physical dimensions of the body, mechanical principles that govern physical movements and physiology.

Hostile work environment cont.

Dirty jokes, vulgar slang, nude pictures, swearing, and personal ridicule and insult constitute sexual harassment when an employee finds them offensive.

What is internal recruitment

Filling of job vacancies from within the business A business might decide that it already has the right people with the right skills to do the job: - Effective training and development program - Succession Planning Staff notice boards , company website, In-house magazines / newsletters , Staff meetings, Internal networks - word of mouth

Motivational Approach

Focus on individual motivational needs to promote job satisfaction and productivity.

Configurational Approach "HR Bundles"

Focuses on the search for distinctive configurations that are of "joined up" HR practices that when combined will function more effectively by complementing and supporting each other.

Hackman and Oldham's Job Characteristic Model

Hackman and Oldham's (1976) job characteristics model identifies five core Job Characteristics: •Skill Variety involves the number of different types of skills used to do a job. •Task Identity is a matter of realizing a visible outcome of performing a task. •Task Significance involves how important the task is to others in the company, which is important in showing employees how the work they do fits in with that done in the rest of the organization. •Autonomy involves the degree of freedom, independence, and decision-making ability the employee has in completing assigned tasks. •Feedback describes how much and what type of information about job performance is received by the employee.

Hard and Soft Approaches

Hard (instrumental) HRM approach 1. Employees are viewed as a passive factor of production, an expense. 2. Employees can be easily replaced and are thus seen as disposable. Soft (humanistic) HRM approach 1. Stresses active employee participation. 2. Gains employee commitment, adaptability and contribution of their skills to achievement of organizational goals. 3. Employees are valued as assets.

Fordism

Henry Ford - modern model of mass production / first moving assembly lines, put into operation at Ford's Model T automobile plant in 1914. Fordism involved standardizing a product and manufacturing it by mass means at a price so lowthat the common man could afford to buy it.

Types of strategic Fit

Horizontal Fit A congruence among the various HRM practices. Example; 1. Recruitment 2. Performance 3. Compensation Vertical Fit The alignment of HRM practices with the strategic management process of the organization. Example; 1. Research and Development 2. HRM 3. Sales and Marketing

Herzberg - Two Factor Theory (1959)

Hygiene factors are needed to ensure an employee does not become dissatisfied. They do not lead to higher levels of motivation, but without them there is dissatisfaction. Motivation factors are needed in order to motivate an employee into higher performance. These factors result from internal generators in employees.

Halo Effect

If someone has an outstanding characteristic and we allow our positive reaction to single characteristic to influence total judgment of the individual.

SWOT Analysis

Internal strengths, weaknesses, External opportunities, threats

Defense of Discrimination Charges

Job Relatedness - Business can show that the decision was made for job- related reasons. Seniority - Formal seniority systems are permitted - must be well established and applied universally. Business necessity - Defense created by the courts, which requires an employer to show an overriding business purpose for the discriminatory practice and that the practice is therefore acceptable. (drug testing)

What is Job Design

Job design refers to the way that a set of tasks, or an entire job, is organized. Job design helps to determine: •what tasks are done, •how the tasks are done, •how many tasks are done, and in what order the tasks are done

Determining Discrimination McDonnell Douglas Test

McDonnell Douglas Test to Establish a Prima Facie (legally sufficient) Case of Discrimination: The person is a member of a protected class. The person applied for a job for which he or she was qualified. The person was rejected, despite being qualified. After rejection, the employer continued to seek other applicants with similar qualifications. ◦ The burden now shifts to the employer to prove that the action taken against the individual was not discriminatory.

Strategic Mission Statement

Organizations need to establish a strategic framework for significant success. This framework consists of: • A vision for the company's future, • A mission that defines what it is doing, • Values that shape its actions, • Strategies that zero in on key success approaches, and • Goals and action plans to guide daily, weekly and monthly actions.

Selection

Predicting which candidates will make the most appropriate contribution to the organization at the time of hiring and in the future.

Job Enlargement

Programs designed to broaden job scope. -Job scope refers to the number of different activities required in a job and the frequency with which each activity is performed. "Horizontal loading of a job" •Increases the scope of a job through extending the range of its job duties and responsibilities. •Job enlargement seeks to motivate workers through reversing the process of specialization. •Results in increased skill variety and increased task identity (employees see a whole and identifiable piece of work). • A typical approach might be to replace assembly lines with modular work; instead of an employee repeating the same step on each product, they perform several tasks on a single item.

Sexual Harassment Two Broad Categories

Quid pro quo • Occurs when "submission to or rejection of sexual conduct is used as a basis for employment decisions." • Involves a tangible or economic consequence, such as a demotion or loss of pa Hostile Work Environment • Occurs when unwelcome sexual conduct has the purpose or effect of unreasonably interfering with job performance or creating an intimidating, hostile, or offensive working environment. • For example, it is illegal to harass a man by making offensive comments about men in general.

Bona Fide Occupational Qualification

Requirement that an employee be of a certain religion, gender or national origin where that is reasonably necessary to the organization's normal operation. For example: •Mandatory retirement ages for bus drivers and airline pilots, for safety reasons. • Advertising, a manufacturer of men's clothing may lawfully advertise for male models. • A religious school may lawfully require that members of its faculty be members of that denomination and may lawfully bar from employment anyone who is not a member.

Recruitment

Searching for and obtaining potential job candidates in sufficient numbers and quality so the organization can select the most appropriate people to fill its job needs.

External Recruitment Context

Searching for candidates outside the organization can take place in local, regional, national or international job markets. - international - National - Regional - Local

Types of Interviews

Structured interview - all candidates are asked the same list of prepared questions. Semi-structured interview - interviewer follows list of questions but also asks unplanned questions. Unstructured interview - interviewer has no preplanned questions or sequence of topics. •Is the most susceptible to discrimination claims because introduces the most interviewer bias.

Testing

Tests measure knowledge, skill, and ability, as well as other characteristics, such as personality traits. Cognitive Ability Testing - measures learning, understanding, and ability to solve problems (e.g. intelligence tests). Personality testing measures patterns of thought, emotion, and behavior (e.g. Myers Briggs, Strength Finders). Physical Ability Testing assesses muscular strength, cardiovascular endurance, and coordination. ** (but not a general physical). Integrity Testing - are designed to assess the likelihood that applicants will be dishonest or engage in illegal activity.

Strategic Perspective in HRM

The Impact of HRM 1.Behavior of Human Capital - Motivation - Effort 2.Organizational Performance - Quality - Profitability - Customer satisfaction 3. Types of Human Capital - Training - Experience - Judgment - Intelligence - Relationships - Insight

Disparate / Adverse Impact4/5ths Rule

The alleged disadvantaged group must have a success rate of 4/5ths (80%) of the most successful group Example: 100 people applied for an Accountant position. Fifty females and fifty males. Of all the applicants, only 20 males passed an assessment test during the hiring process, while 48 females passed. What is 80% of 48? 38. - 20 males is less than 80% of the female acceptance rate so there is adverse impact.

Strategic Human Resource Management

The overall direction an organization wishes to pursue in achieving its objectives through people.

Job Analysis

The procedure through which we determine the ("TDR"s) tasks, duties and responsibilities of positions and the characteristics of the people to hire for the positions.

Best Fit Approach

There can be no universal prescription for HRM practices and policies. Instead, it is all contingent on the organization's context, culture, and business strategy

Differentiation Strategy

To maximize employee flexibility and adaptability through jobs that require cross-functional teams to innovate and try new processes in uncertain environments.

Family and Medical Leave Act of 1993 (FMLA)

Twelve workweeks of unpaid leave in any 12-month period for: eligible employees when they or immediate family members are faced with medical issues. Eligible leaves: -Birth and care of the employee's child, within one year of birth -Placement with the employee of a child for adoption or foster care, within one year of the placement -Care of an immediate family member (spouse, child, parent) who has a serious health condition -For the employee's own serious health condition that makes the employee unable to perform the essential functions of his or her job Any qualifying exigency arising out of the fact that the employee's spouse, son, daughter, or parent is on active duty or has been notified of an impending call or order to active duty in the U.S. National Guard or Reserves in support of a contingency operation

A Poor Selection Process Can Result In:

Wasting time and money - hiring a mismatch will likely require going through the whole process again. Reduced productivity - mismatches perform their jobs less successfully than good fits. Negligent hires - hiring someone who poses a danger to co-workers, customers, suppliers, or other third parties, who ultimately harms someone in the course of their work for the company. uThe organization may be held liable.

What makes a selection method good?

reliability, validity, utility, legality/fairness, acceptability

Taylorism

scientific management, encouraged the development of mass production techniques and the assembly line, led to a revolution in American education of social science.

Title VII and Pregnancy Pregnancy Discrimination Act (PDA) of 1978

• A Title VII amendment that prohibits sex discrimination based on "pregnancy, childbirth, or related medical conditions." • If an employer offers its employees disability coverage, then it must treat pregnancy and childbirth like any other disability and include it in the plan as a covered condition. ** Being pregnant on its own is not a disability. • time missed following delivery or medical complications during the pregnancy can make it a disability.

Americans with Disabilities Act (ADA)

• Employers should have up-to-date job descriptions that identify the current essential functions of the job. • Courts will tend to define "disabilities" quite narrowly. • Employers are not required to tolerate misconduct or erratic performance even if the behaviors can be attributed to the disability. • Employers do not have create a new job for the disabled worker or reassign that person to a light-duty position for an indefinite period, unless such a position exists.

Advantages of internal recruitment

• Gives existing employees greater opportunity to advance their careers in the business • May help to retain staff who might otherwise leave • Requires a short induction training period • Employer should know more about the internal candidate's abilities (= a reduced risk of selecting an inappropriate candidate) • Usually quicker and less expensive than recruiting from outside

Balancing Job Fit and Organization Fit

• Job-based fit seeks to match an individual's abilities and interests with the demands of a specific job. • Organization-based fit is concerned with how well the individual's characteristics match the broader culture, values, and norms of the firm

Disadvantages of internal recruitment

• Limits the number of potential applicants for a job • External candidates might be better suited / qualified for the job • Another vacancy will be created that has to be filled • Existing staff may feel they have the automatic right to be promoted, whether or not they are competent • Business may become resistant to change; by recruiting from outside, new perspectives and attitudes are brought in

Drug Addiction under the ADA

• Only individuals who are addicted to drugs, have a history of addiction, or who are regarded as being addicted have an impairment under the law. • In order for an individual's drug addiction to be considered a disability under the ADA, it would have to pose a substantial limitation on one or more major life activities.

Reducing Potential Liability

• Take all complaints about harassment seriously. • Issue a strong policy statement condemning such behavior and republish policy on regularly basis. • Develop and implement a complaint procedure. • Establish a management response system (immediate investigation by senior management). Begin management training sessions with supervisors and managers to increase their awareness of the issues

Job Specifications

• what kind of people to hire for the job (qualifications, KSAs they should possess). - Qualification - Experience - Training - Skills

Job Descriptions

•(a list of what the job entails) - Job Title - Job Location - Job Summary - Working Condition

Attributes of Good Job Design

•An appropriate degree of repetitiveness •An appropriate degree of attention and mental absorption •Some employee responsibility for decisions and discretion •Employee control over their own job •Goals and achievement feedback •A perceived contribution to a useful product or service •Opportunities for personal relationships and friendships •Some influence over the way work is carried out in groups •Use of skills

Medical Examinations

•An employer may not require applicants to take a medical examination before they are offered a job. •Following a job offer, an employer can condition the offer on the applicant passing a required medical examination, but only if all entering employees for that job category have to take the examination. •An employer cannot reject a person holding a job offer because of information about a disability revealed by the medical examination, unless the reasons for rejection are job-related and necessary for the conduct of the employer's business.

Types of questions

•Closed-ended - requires a limited response (e.g., yes/no); is appropriate for fixed aspects of the job. •Open-ended - requires a detailed response; is appropriate for determining abilities and motivation. •Hypothetical - requires candidates to describe what they'd do and say in a given situation; is appropriate in assessing capabilities. •Probing - requests clarification; is appropriate for improving the interviewer's understanding.

Examples of the Human Factors Design Approach

•Designing work processes and workstations that prevent injuries and cumulative trauma disorders. •Motivating people to work safely. •Devising jobs that are satisfying and minimize mental stress. •Designing manufacturing systems that maximize quality and productivity while taking human limitations into account.

Scientific Management

•Emphasizes rationalization and standardization of work through division of labor, time and motion studies, work measurement, and piece-rate wages. •Work portioned into small, simple standardized tasks that can be easily performed with little training. •Rooted in a preconceived idea about human behavior (that man is naturally inclined to be lazy)

Negatives of Job Enlargement

•Increased training - lost time and costs •"Job creep"- employee resentment at increased job load

How Do We Attract Them

•Informal personal contacts •Formal personal contacts (career fairs, open days, leaflet drops, notice boards) •Advertising (newspapers, specialty publications, internet) •External assistance (job centers, career services, employment agencies)

Advantages Job Rotation

•Reduce boredom and fatigue •Improved motivation and retention •For newer hires helps with orientation and placement •Career development (skills, experience) •Succession planning / Corporate strategy

disadvantage of Rotation

•Resistance to change •Training cost and lost time •Safety issues •Administration time and expense of fitting employees into new jobs

Recruitment is a Continuous process

•Staff departures (e.g. retirements, firings, resignations) •Changes in business requirements (e.g. new products, markets, expanded operations) •Changes in business location (a relocation often triggers the need for substantial recruitment) •Promotions

Expungement

•To have a criminal record expunged is the process by which a record of criminal conviction is destroyed or sealed from state or federal record. • •An expungement order directs the court to treat the criminal conviction as if it had never occurred, essentially removing it from a defendant's criminal record as well as, ideally, the public record. • •Expungement is not "forgiveness" for committing a crime - that is a legal pardon. Pardons do not remove a conviction from a criminal record.