HRM CH.1-3 TEST

HEVA Formula

(net profit after taxes - cost of capital) / full time head count

HR planning process

1. Review Organization's Environmental Analysis/Strategic Plans. 2 Assess External and Internal Workforce: External conditions and influences; Internal workforce capabilities and K S As. 3. Compile Human Resources Planning Forecasts: Demands for human resources; Supply of human resources. 4. Develop H R Staffing Plans and Actions: Employee retention and turnover; Recruiting sources and means; Selection process and actions.

common order of usage to manage talent shortage

1. use overtime 2.outsource work 3.try alternative work arrangements 4.bring back recent retirees 5.increease contingent workers 6. reduce turnover

HR analytics

A key challenge that many HR groups face is having enough professionals on staff who know how to properly use HR analytics. Analytics involve using various metrics and complex modeling techniques to answer questions about HR functions. HR analytics can be defined as an evidence-based approach to making HR decisions on the basis of quantitative tools and models. The field of analytics is growing rapidly and a number of universities now offer degree programs in data analytics and specific HR analytics courses are being added to many graduate HR programs. HR professionals in the future will need to develop some expertise and comfort level with metrics and analytics in order to fully engage as strategic contributors to their organizations.

H R specialist

A person who has in-depth knowledge and expertise in a specific area of H R​

H R generalist:

A person who has responsibility for performing a variety of H R activities​

ROI

A widely used financial element that can be applied to measure the contribution and cost of HR activities is return on investment (ROI), a calculation showing the value of investments in human capital. It can also be used to show how long it will take for the activities to show results

programs to encourage ethical behavior

A written code of ethics and standards of conduct Training on ethical behavior for all executives, managers, and employees Advice to employees on ethical situations they face, often given by HR Systems for confidential reporting of ethical misconduct or questionable behavior Public recognition and commendation when employees behave ethically

HR roles

Administrative: Focusing on clerical administration and recordkeeping, including essential legal paperwork and policy implementation Operational and employee advocate: Managing HR activities based on the strategies and operations that have been identified by management and serving as "champion" for employee issues and concerns Strategic: Helping define and implement the business strategy relative to human capital and its contribution to the organization's results While the administrative role has traditionally been the dominant one for HR, the operational and employee advocate roles are increasingly being emphasized in many organizations. The strategic role requires the ability and focus to contribute to strategic decisions and to be recognized by upper management for these efforts. This practice is likely to grow as firms expect HR groups to be involved in the strategic planning process and to prepare employees to be more strategic. HR staff should understand the business so that their strategies match its needs.

Roles for Human Resource Departments​

Administrative​ Focusing on clerical administration, recordkeeping, legal paperwork, and policy implementation​ Operational and employee advocate​ Managing H R activities based on the strategies and operations identified by management​ Strategic​ Helping define and implement business strategies

A A P

Affirmative Action Program (A A P)​ Document that outlines proactive steps the organization will take to attract and hire members of underrepresented groups​ Objective​ To have the company's workforce demographics reflect as closely as possible the demographics in the labor market from which workers are recruited​

A D E A

Age Discrimination in Employment- Prohibits discrimination against all individuals age 40 or older employed by an organization having 20 or more workers​

Changing Workforce Considerations

Aging of the workforce Growing diversity of workers Female workers and work-life integration concerns Availability of contingent workers Outsourcing possibilities

Coverage of Civil Rights Act ​of 1964, Title Seven

All private employers of 15 or more employees​ All educational institutions, public and private​ State and local governments​ Public and private employment agencies​ Labor unions with 15 or more members​ Joint labor-management committees for apprenticeships and training

multinational corporation (MNC)

An MNC, sometimes called a transnational corporation, is an organization that has facilities and other assets in at least one country other than its home country.

Hr Function: Strategy and planning-

Anticipating future talent needs and preparing plans to address those needs​

Americans with Disabilities Act (A D A)-1990

Applies to private employers, employment agencies, and labor unions with 15 or more employees

H R and Organizational Ethics​

Areas for potential ethical problems in H R​ Compensation, development, staffing, performance management, E E O, and training​ Ethical or unethical treatment of employees influences the following organizational parameters​ Job satisfaction, turnover, absenteeism, commitment, job performance, and ethical decisions​

Why Organizations Need HR Management​

Assists organizations in achieving higher:​ Profits​ Stock price​ Productivity​ Assists organizations in adapting to:​ A globalized workforce​ Age diversity​ Sustainability​ Social media​ Deals with government regulations​

ATD

Association for Talent Development

H R Functions​- Talent management and development-

Beginning with the orientation of new employees, talent management and development includes different types of training. ​

B F O Q

Bona fide occupational qualification (B F O Q) ​ Legitimate reason an employer can use to exclude persons on otherwise illegal bases of consideration​. ex. movies

A D A Amendments Act​

Broadens the definition of individuals with disabilities to include anyone with an impairment that limits life functions without regard for medication/prosthetics

improve productivity

Can be improved by organizational restructuring, redesigning work, aligning H R activities, and outsourcing analyses

H R Certifications (continued)​

Certified Benefits Professional (C B P)​ Work-Life Certified Professional (W L C W)​ Global Remuneration Professional (G R P)​ Other certifications​ Certified Recognition Professional (C R P) ​ Certified Employee Benefits Specialist Program (C E B S)​ Certified Professional in Learning and Performance (C P L P)​

WorldatWork Certifications

Certified Compensation Professional (CCP) Master Certified Compensation Professional (MCCP) Certified Benefits Professional (CBP) Work-Life Certified Professional (WLCW) Global Remuneration Professional (GRP)

Managing religious diversity​

Changing an employee's job tasks or scheduling​ Making an exception to dress and grooming rules and making accommodations related to paying union dues or agency fees, prayer, proselytizing, and other forms of religious expression​

Common levels of HR audit

Compliance audit: Checks recordkeeping on state and federal documentation requirements Benefit programs audit: Reviews regulatory compliance, benefits administration, and reporting I-9 audit: Reviews compliance with immigration regulations and the I-9 form requirement Specific program audit: Reviews specific HR subareas such as compensation, EEO, or training Full HR audit: Reviews all of the above plus any and all other HR functions Audits frequently involve a questionnaire and interviews to collect information about programs, and they may be performed by outside entities for more objective evaluation. They can provide useful assessments about how well HR practices meet established standards and requirements.

H R Functions​-Equal employment opportunity

Compliance with federal, state, and even local equal employment opportunity (EEO) laws and regulations affects all other HR activities. Instituting effective diversity and inclusion initiatives will help the organization maintain a robust workforce​

COBRA

Consolidated Omnibus Budget Reconciliation Act displaced workers can retain their group medical coverage for up to 18 months for themselves and for up to 36 months for their dependents, if they pay the premiums themselves.

four important factors in changing culture include the following:

Define the desired behaviors. Provide behavioral examples of how people are expected to act and tie these behaviors to the performance management system. Deploy role models. Select leaders who exemplify the desired behaviors and make them visible throughout the organization. Provide meaningful incentives. Reward the role models with recognition to reinforce their behavior and to signal to the rest of the organization. Provide clear and consistent messages. Align what you say with what you do and reward.

D O L

Department of Labor (D O L) oversees compliance with employment-related laws​

Human Resource Management

Designing formal systems in an organization to manage human talent for accomplishing organizational goals​

Glass ceiling

Discriminatory practices that have prevented women and minority status employees from advancing to executive-level jobs​

Theories of Unlawful Discrimination

Disparate treatment: Individuals with particular characteristics that are not job related are treated differently from others​ Overt and intentional ​ Follows a pattern or practice Disparate impact: When an employment practice that does not appear discriminatory adversely affects individuals with a particular characteristic​ Individuals are substantially underrepresented as a result of employment decisions that work to their disadvantage​ Unintentional because identical criteria are used, but the results can differ for certain groups​ Landmark case: Griggs v. Duke Power (1971)​

Language Issues

E E O C has issued guidelines stating that employers may require workers to speak only English at certain times or in certain situations​ The business necessity of the requirements must be justified​

Employee and labor relations

Employee and labor relations: The relationship between managers and their employees must be handled legally and effectively. Employer and employee rights must be addressed. It is important to develop, communicate, and update HR policies and procedures so that managers and employees alike know what is expected. In some organizations, union-management relations must be addressed as well

Evidence of whether a particular function is essential:

Employer's judgment as to which functions are vital, and written job descriptions prepared before advertising/interviewing applicants for the job​ Amount of time spent on the job performing the function, the consequences of not requiring the incumbent to perform the function, and the terms of a collective bargaining agreement​ Work experience of past incumbents in the job and current work experience of incumbents in similar jobs​

Appearance and Weight Discrimination

Employers are allowed to set dress codes and appearance standards as long as they are applied uniformly ​ Height and weight requirements must be linked to specific job functions​

H R Functions​- Risk management and worker protection

Employers must address various workplace risks to ensure workers are protected, meet legal requirements, and respond to concerns for workplace health and safety​

Genetic Bias Regulations

Employers use genetic screening tests to:​ Make workers aware of genetic problems ​ Terminate employees who may make extensive use of health insurance benefits ​ Genetic Information Nondiscrimination Act​ Limits health insurance plans' use of genetic information​ Prohibits employment discrimination on the basis of genetic information​

E E O C

Equal Employment Opportunity Commission (E E O C) enforces employment laws for employers

Enforcement bodies for E E O

Equal Employment Opportunity Commission (E E O C) enforces employment laws for employers ​ Department of Labor (D O L) oversees compliance with employment-related laws

E E O

Equal employment opportunity (E E O): Employment that is not affected by illegal discrimination​

Equal employment opportunity

Equal employment opportunity: Compliance with federal, state, and even local equal employment opportunity (EEO) laws and regulations affects all other HR activities. Instituting effective diversity and inclusion initiatives will help the organization maintain a robust workforce

A job function may be considered essential for any of several reasons​

Essential because the reason the position exists is to perform that function​ Essential because there is a limited number of employees available who can perform the job function​ Highly specialized so that the job incumbent is hired for that expertise or ability to perform the particular function​

Discrimination is prohibited against individuals with disabilities who can perform the essential job functions

Essential job functions: Fundamental job duties

Ways to Prevent Sexual Harassment​

Establish a sexual harassment policy​ Communicate the policy regularly​ Train employees and managers on issues related to sexual harassment​ Encourage reporting with a positive culture​ Investigate when complaints are voiced and take appropriate action

Religious expression

Express religious beliefs at work in a way that does not harass others

F M L A

Family and Medical Leave Act (F M L A) ​ Giving up to 12 weeks of unpaid family leave and allowing the individual to return to job​

balanced scorecard measures performance in four areas:

Financial measures: Traditional financial measures such as profit and loss, operating margins, utilization of capital, return on investment, and return on assets are needed to ensure that the organization manages its bottom line effectively. Internal business processes: Product and service quality, efficiency and productivity, conformance with standards, and cycle times can be measured to ensure that the operation runs smoothly and efficiently. Customer relations: Customer satisfaction, loyalty, and retention are important to ensure that the organization is meeting customer expectations and can depend on repeat business from its customers. Learning and growth activities: Employee training and development, mentoring programs, succession planning, and knowledge creation and sharing provide the necessary talent and human capital pool to ensure the future of the organization.

Improving Diversity Training Efforts

Focusing on behavior​ Stressing that people can believe whatever they wish, but at work their values are less important than their behaviors​ Dealing with diversity is not about what people can and cannot say​ It is about being respectful to others

Forecasting

Forecasting uses information from the past and present to predict future conditions. When forecasting future HR conditions, the information comes from workforce availability and requirements. Projections for the future are, of course, subject to error and to changing conditions. Fortunately, experienced people are usually able to forecast with sufficient accuracy to create usable long-range plans.

Sexual Harassment Issues

Gender stereotyping​ Electronic sexual harassment-Sexual harassment may occur when employees e-mail each other, visit social networking sites, and access the Internet​ Tolerance can vary from country to country

H R Certifications​

H R C I certification​ Professional in Human Resources (P H R)​ Senior Professional in Human Resources (S P H R)​ SHRM exams and certification​ WorldatWork certifications​ Certified Compensation Professional (C C P)​ Master Certified Compensation Professional (M C C P)​

Ability-motivation-opportunity (A M O) model​

H R practices that lead to greater skill, greater motivation, and greater opportunity for workers to contribute to the organization​

HR strategy and planning

HR strategy and planning: As part of achieving organizational competitiveness, strategic planning for the organization and HR's role in those strategic plans are good starting places. Anticipating future talent needs and preparing plans to address those needs is a vital task for HR. How well HR does what it plans to do is measured by HR metrics and analytics

Religious discrimination

Hostile remarks or refusal to hire individuals with different beliefs​

HRCI

Human Resource Certification Institute

HRIS

Human Resource Information System In the 1980s, most large companies used a mainframe computer to run a Human Resource Information System (HRIS). These systems processed payroll, tracked employees and their benefits, and produced reports for HR managers. All of this was run by information technology (IT) staff/professionals. In 1989, a software package called PeopleSoft became wildly popular—it allowed HR to run its own reports and make changes without help from IT

HCVA

Human capital value added (HCVA) is an adjusted operating profitability figure calculated by subtracting all operating expenses except labor expenses from revenue and dividing by the total full-time head count

HEVA

Human economic value added (HEVA) shows the wealth created per employee. It shows how much more valuable the organization has become because of its investment in human capital. Wealth is the net operating profit of a firm after the cost of capital is deducted. The cost of capital is the minimum rate of return demanded by shareholders. When a company is making more than the cost of capital, it is creating wealth for shareholders. An HEVA approach requires that all policies, procedures, measures, and methods use cost of capital as a benchmark against which their return is judged. HR decisions can be subjected to the same analysis.

SHRM competency framework

Human resource expertise. Applies knowledge of HR functions Relationship management. Builds networks that support the firm Consultation. Provides advice and direction Leadership and navigation. Guides the organization and its employees Communication. Fosters positive flow of information among different parties Global and cultural effectiveness. Understands diverse global issues Ethical practice. Builds organizational ethical values and compliance Critical evaluation. Functions as a judge of information Business acumen. Provides input that supports business strategy

Human resource planning

Human resource planning is the process of analyzing and identifying the need for and availability of people so that the organization can meet its strategic objectives. The focus of HR planning is ensuring that the organization has the right number of people with the right capabilities at the right times and in the right places. In HR planning, an organization must consider the availability and allocation of people and talent needs over longer periods of time, not just for the next month or even the next year. In a recent study, 70 percent of people reported that their jobs change substantially every few years, making HR planning a constantly changing landscape.

Pay equity

Idea that pay for jobs requiring comparable levels of knowledge, skill, and ability should be similar, even if actual duties differ significantly​ Called comparable worth​ Reason for enforcement​- Continued gap between the earnings of women and men​

Effective implementation of layoffs includes

Identify the work that is core to sustaining a profitable business. Identify the knowledge, skills, and competencies needed to execute the business strategy. Protect the bottom line and the corporate brand. Constantly communicate with employees. Pay attention to the survivors.

Key to Making Reasonable Accommodations

Identifying essential functions​ Determining which accommodations are reasonable so the individual can perform core job duties​ Architectural barriers should not block access​ Work tasks must be assigned or modified to allow performance​ Work hours and breaks may be adjusted

I R C A

Immigration Reform and Control Act Requires that employers verify the employment eligibility status of all employees without any discrimination Requires that each employee must complete an Employment Eligibility Verification (I-9) form within the first 3 days of employment​ E-Verify federal database verifies the employment eligibility of employees ​ Has broadened visa requirements to accommodate highly skilled employees​

Tactics for managing a Talent Shortage

Increase employee work hours through overtime outsource to a third party Implement alternative work arrangements Use contingent workers (temporaries, independent contractors) Reduce employee turnover

Other Human Resource Certifications

Increasingly, employers hiring or promoting HR professionals are requesting certifications as a "plus." HR certifications give HR professionals more credibility with corporate peers and senior managers. Additional certification programs for HR specialists and generalists are sponsored by various organizations, and the number of certifications is being expanded. For specialists, some well-known programs include the following: Certified Recognition Professional (CRP) sponsored by the Recognition Professionals International Certified Employee Benefits Specialist Program (CEBS) sponsored by the International Foundation of Employee Benefits Plans Certified Professional in Learning and Performance (CPLP) sponsored by the Association for Talent Development Certified Safety Professional (CSP) and Occupational Health and Safety Technologist (OHST) sponsored by the American Society of Safety Engineers

Protected characteristics

Individual attributes such as race, age, sex, disability, or religion that are protected under E E O laws and regulations

Employee and Organizational Capabilities Inventory

Individual employee demographics (age, length of service in the organization, and time in present job) Individual competencies (KSAs) Individual career progression (jobs held, time in each job, education and training levels, promotions or other job changes, and pay rates) Individual performance data (work accomplishments, growth in skills, and working relationships)

Person with a disability

Individual who:​ Has a physical or mental challenge that greatly reduces the ability to perform important life functions​ Possesses a record of such a challenge or​ Is thought to have such a challenge​ Individual is considered to have a disability even if corrective measures are taken​ Significant life activities and functions include visible activities and internal bodily functions

Burden of proof:

Individuals who file suit against employers must establish that illegal discrimination has occurred​. Sufficient evidence, either factual or statistical, must be provided to the court to support the case and allow the plaintiff to continue with the claim

IHRIM

International Association for Human Resource Information Management (IHRIM)

Common Means of Reasonable Accommodation

Job reassignment​ Employer-provided assistance​ Additional training time​ Job restructuring​ Special equipment​ Modified work schedules

Competition, Cost Pressures, and Restructuring

Job shifts​ Gig economy: Most work is performed by freelance workers rather than full-time employees​ Skill shortages​ Inadequate supply of workers with the skills needed to perform emerging jobs​ Major improvements need to be made to educational systems in the United States​

Components of Diversity Training

Legal awareness​ Cultural awareness ​ Sensitivity training

Glass elevators

Limits that keep women from progressing only in certain fields

Mixed Results for Diversity Training

May not produce long-term changes in people's attitudes and behaviors toward others with different characteristics​ Has not reduced discrimination and harassment complaints​ Perceived as benefiting only women and racial minorities and taking away opportunities for white men

Productivity

Measure of the quantity and quality of work done, considering the cost of the resources used​

Person with a disability continued

Mental disabilities: Mental or psychological disorders ​ Intellectual disability, organic brain syndrome, emotional or mental illness, and specific learning disabilities​ Bipolar disorder, depression and anxiety disorder, and temporary impairments​ Employees who develop disabilities may shift to jobs where their disabilities do not affect them as much​

Technology Trends

Mobile devices​ A D P Mobile - Individuals can view employee information and perform other H R functions​ H R leaders should encourage the use of mobile devices with B Y O D policies​ Social media: Online communities where users create and share content and participate in networking​ Negative comments by employees may affect a firm's reputation​

Reasonable accommodation

Modification to a job or work environment that gives a qualified individual an equal employment opportunity to perform​

Forecasting External Supply factors

Net migration into and out of the area Individuals entering and leaving the workforce Individuals graduating from colleges and other schools Changing workforce composition and patterns Economic forecasts for the next few years Technological developments and shifts Actions of competing employers Government regulations and pressures Circumstances affecting persons entering and leaving the workforce

OWBPA

Older Workers Benefit Protection Act Employers must also comply with the Older Workers Benefit Protection Act (OWBPA) when implementing RIFs. The OWBPA requires employers to disclose the ages of both terminated and retained employees in layoff situations, and a waiver of rights to sue for age discrimination must meet certain requirements. The worker must be given something of value ("consideration"), typically severance benefits, in exchange for waiving the right to sue. When a group of employees is laid off, workers over age 40 in this group must be granted 45 days in which to consider accepting severance benefits and waiving their right to sue

O W B P A

Older Workers Benefit Protection Act (O W B P A)​ Amendment to the A D E A ​ Protects employees who sign liability waivers for age discrimination in exchange for severance packages​

increase productivity

Organizational restructuring, which involves eliminating layers of management and changing reporting relationships as well as cutting staff through downsizing, layoffs, and early retirement buyout programs; Redesigning work, which often involves making changes to the way work gets done by focusing on the characteristics of jobs and altering how tasks are structured and coordinated; Aligning HR activities, which means ensuring that HR efforts and practices are consistent with organizational efforts to improve productivity and satisfy strategic goals; and Outsourcing analyses, which require the HR department to conduct cost-benefit assessments that indicate the overall positive or negative impact of outsourcing—HR then manages outsourcing efforts if they occur.

The Equal Pay Act​

Paying similar wage rates for similar work without regard to gender​ Differences in pay between men and women in the same jobs are permitted because of:​ Differences in seniority, performance, quality, and/or quantity of production​ Factors other than sex, such as skill, effort, and working conditions

Managing Age Discrimination​ Adopting age-neutral selection and promotion practices​ Recruiting older people to return to the workforce through part-time and other attractive scheduling options​ Employing phased retirement

Phased retirement: Approach that enables employees to gradually reduce their workloads and pay levels

Organizational assets​

Physical assets-ex. Buildings, land, computers​ Financial assets-ex. Cash, financial resources, stocks, bonds or debt​ Intellectual property assets-ex. Specialized research capabilities, patents, information systems​ Human assets-ex. Individuals with their talents, capabilities, experience, professional expertise, relationships​

Organizations must manage four types of assets to be successful

Physical assets: Buildings, land, furniture, computers, vehicles, equipment, and so on Financial assets: Cash, financial resources, stocks, bonds or debt, and so on Intellectual property assets: Specialized research capabilities, patents, information systems, designs, operating processes, copyrights, and so on Human assets: Individuals with their talents, capabilities, experience, professional expertise, relationships, and so on

Business necessity

Practice necessary for safe and efficient organizational operations

Nepotism

Practice of allowing relatives to work for the same employer

Affirmative action

Proactive employment practices to compensate for historical discrimination against minorities​

Innovation

Process whereby new ideas are generated that create value for an organization​ Facilitated by selection of appropriate talent, training, and sharing of knowledge​

PHR

Professional in Human Resources

Ethical Culture and Practices​

Programs that emphasize ethical behavior​ Written code of ethics​ Ethical behavior training​ Advice on ethical situations​ Confidential reporting systems​ Public recognition and recommendation for ethical behavior​

IPMA-HR

Public-sector HR professionals tend to be concentrated in the... International Public Management Association for Human Resources (IPMA-HR)

Retaliation

Punitive actions taken by employers against individuals who exercise their legal rights​ To prevent charges of retaliation, employers can:​ Create and disseminate an antiretaliation policy​ Train supervisors and review performance evaluation ​ Conduct a thorough internal investigation​ Take appropriate action​

HR ROI Formula

ROI= (Value of gains from productivity improvements for the time period: C) / (operating costs for a new or enhanced system for the time period: A) + (One time cost of acquisition and implementation: B) ROI=C/A+B

A Changing Workforce

Racial and ethnic diversity​ Racial and ethnic minorities account for a growing percentage of the overall labor force​ Gender in the workforce​ Women may be a majority in certain occupations in the U.S. workforce​ Age considerations​ Many employees may retire in the near future​ Millennials may represent 75 percent of the workforce by 2025​

tactics for managing talent surplus

Reduce employee work hours or compensation Attrition Hiring freezes Voluntary separation programs Workforce downsizing/reduction in force (RIF)

Executive Orders (11246), 11375, and 11478​

Require federal contractors to take affirmative action to compensate for historical discrimination against women, minorities, and handicapped individuals​ Affirmative action

The Civil Rights Act of 1991​

Requires employers to show that an employment practice is job related for the position and is consistent with business necessity​ Creates provision to claim compensatory and punitive damages for the victims of intentional discrimination

A D A Restrictions and ​Medical Information

Restrictions prohibit employers from: ​ Rejecting individuals because of a disability ​ Asking job applicants any question about current or past medical history until a conditional job offer is made​ Using pre-employment medical exams, except for drug testing, until a conditional job offer is made​ Medical information must be stored separately and securely

Strategic HR Metrics

Revenue per employee: This is the essential measure of workforce productivity and should be a key metric presented to the leadership team. Quality of hire improvement: Evaluate the performance of recent new hires compared to those employees hired previously. This metric can show that talent acquisition practices result in better performance by new hires, which should result in cost savings and increased productivity. Performance turnover in key jobs: Tracking overall turnover is necessary, but knowing the turnover level for employees in mission-critical jobs is better. Further, tracking the high performers in those key jobs can indicate problem areas faster. Revenue lost due to position vacancies: Determining how much revenue is lost because positions are not filled quickly enough is better than measuring "days-to-fill" because it zeroes in on a more bottom-line-focused metric. HR program contribution to productivity improvements: Identify and report on those HR programs that have resulted in the greatest gains in organization productivity. Percentage of HR strategic goals that were met: Twice a year, the HR team should assess progress toward the strategic goals for the HR function.

Risk management and worker protection

Risk management and worker protection: Employers must address various workplace risks to ensure workers are protected, meet legal requirements, and respond to concerns for workplace health and safety. Also, workplace security has grown in importance along with disaster and recovery planning.

Human Resource Management Roles

Selecting, training, rewarding, managing, and retaining employees

SPHR

Senior Professional in Human Resources

Types of Sexual Harassment​-Hostile environment

Sexual harassment occurs when an individual's work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions​

Types of Sexual Harassment​-Quid pro quo

Sexual harassment that links employment outcomes to the granting of sexual favors​

Organizational Culture

Shared values and beliefs that give members of an organization meaning and provide them with rules for behavior​ Is constant and enduring​ Comprises the organizational social environment within a firm​ Affects service and quality, organizational productivity, and financial results​

Undue hardship

Significant difficulty or expense imposed on an employer when making an accommodation for individuals with disabilities​ General guidelines are provided by the A D A​ Determined on a case-by-case basis​

H R Organizations​

Society for Human Resource Management (S H R M)​ International Personnel Management Association for Human Resources (I P M A - H R)​ World Federation of People Management Associations (W F P M A)​ WorldatWork Association ​ Association for Talent Development (A T D

SHRM

Society for Human Resource Management (SHRM) is more than 75 percent female

Outsourcing the Administrative Role

Some HR administrative functions can be outsourced to vendors. This outsourcing of HR administrative activities has grown dramatically in areas such as employee assistance (counseling), retirement planning, benefits administration, payroll services, and outplacement services. The primary reasons HR functions are outsourced are to save money on HR staffing and to take advantage of specialized vendor expertise and technology. A growing trend among companies that outsource HR functions is to evaluate the quality and effectiveness of the services provided and base the amounts paid to vendors on these assessments

Civil Rights Act of 1964, Title Seven

States that it is illegal for organizations to discriminate in any way based on a person's sex, race, national origin, color, and/or religion​ Basis for several extensions of E E O law

The seven HR functions

Strategy and planning, Equal employment opportunity, Talent acquisition, Talent management, Total rewards, Risk management and worker protection, Employee and labor relations,

global company difficulties

Strategy: Companies feel they do not communicate their strategy clearly, finding it difficult to be flexible as they expand to other markets People: Executives feel their companies are not good at transferring lessons from one country to another and are not sufficiently effective at recruiting, retaining, training, and developing people in all geographic locations. Complexity: Complexity arises as standardization of processes clashes with local needs, and sharing the cost of distant centers increases the expense of local operations. Risk: Emerging market opportunities expose companies to unfamiliar risks that may be difficult to analyze, which results in sometimes rejecting approaches they perhaps should have taken.

Succession planning

Succession planning is the process of identifying a plan for the orderly replacement of key employees. Leadership development and succession planning programs ensure that high-quality talent will be available to carry out business strategies

Talent acquisition

Talent acquisition: The aim of talent acquisition is to provide a sufficient supply of qualified individuals to fill jobs in an organization. The nature of the workforce, of job design, and of job analysis lays the foundation for talent acquisition by identifying how people work and the qualities needed to succeed. Establishing a positive employer brand and employee value proposition are keys to becoming an attractive employer. Recruiting efforts focus on generating a pool of qualified applicants from which to select. The selection process is focused on choosing qualified individuals to fill those jobs

Talent management and development

Talent management and development: Beginning with the orientation of new employees, talent management and development includes different types of training. HR development and succession planning for employees and managers are necessary to prepare for future challenges. Career planning identifies paths and activities for individual employees as they move within the organization. Assessing how well employees are performing their jobs is the focus of performance management

H R Functions​- Total rewards

Tangible and intangible rewards such as pay, incentives, and benefits create the value proposition to keep employees engaged and motivated​

P D A

The Pregnancy Discrimination Act Treating maternity leave the same as other personal or medical leaves

Sex/Gender Discrimination Laws

The Pregnancy Discrimination Act (P D A)​ Treating maternity leave the same as other personal or medical leaves​ Family and Medical Leave Act (F M L A)​ Giving up to 12 weeks of unpaid family leave and allowing the individual to return to job​ The Equal Pay Act​ Paying similar wage rates for similar work without regard to gender​ Differences in pay between men and women in the same jobs are permitted because of:​ Differences in seniority, performance, quality, and/or quantity of production​ Factors other than sex, such as skill, effort, and working conditions​

Effectiveness

The ability of a program, project, or task to produce a specific desired effect or result that can be measured

H R Functions​- Talent acquisition

The aim of talent acquisition is to provide a sufficient supply of qualified individuals to fill jobs in an organization​

environmental scanning

The assessment of external and internal environmental conditions that affect the organization The HR department should be involved in this process to make sure that the employee perspective is considered.

Human capital

The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organization's workforce​ Called intellectual capital to reflect employees' contributions​

negative views of HR

The legal compliance role can cause other people to have negative views of HR staff. The negative perception that some employees, managers, and executives have is that HR departments are too bureaucratic, detail oriented, and costly, and that they are comprised of naysayers. Some managers also believe that HR departments reduce innovation and negatively impact the ability to complete work because of poorly executed programs. The trend toward outsourcing many HR activities also fuels the belief that HR support is not really needed. Further, HR staff are sometimes seen as lacking in business acumen by line managers. In some organizations, HR is seen as owning employee morale and fun, which leads to difficulties when employees have serious issues to report and need to deal with a professional in whom they can confide. Despite such concerns, the HR function can benefit the workplace if it is managed well.

H R Functions​- Employee and labor relations

The relationship between managers and their employees must be handled legally and effectively. Employer and employee rights must be addressed. It is important to develop, communicate, and update HR policies and procedures so that managers and employees alike know what is expected​

triple bottom line

The triple bottom line considers the organization's impact on three major areas—economic, social, and environmental. By increasing emphasis on corporate social responsibility, this comprehensive approach to running a company means that leaders pay equal attention to profits, people, and the planet.

Barriers to planning

Time frame: An overemphasis on short-term results and planning can blind managers to the importance of a longer-term outlook. Concerns about data integrity: The quality of data, while improving, is often inadequate for effective planning. If managers cannot trust the data they are working with, they will have little confidence in the plans they develop. Control: Some managers rely too heavily on their gut instinct when planning. This is particularly true when data about human resources is lacking or inaccurate. Detail: Since jobs and work demands are in a constant state of flux, it can be difficult to determine the appropriate level of detail (i.e., at the task level, job family, and department). Forecasting: It can be challenging to accurately predict which employees will retire or leave the organization, making the estimate of talent needs hard to pin down.

SaaS

Today, software as a service (SaaS) functions in a vendor's data center or in the cloud, and the self-service it allows has probably done more to change the work of HR than anything else. SaaS agreements enable firms to rent software packages from vendors instead of buying licenses, but there are concerns. Many organizations are also replacing some of their aging HR software with new technology that automates applicant tracking, facilitates reporting, and analyzes HR data.

Total rewards

Total rewards: Tangible and intangible rewards such as pay, incentives, and benefits create the value proposition to keep employees engaged and motivated. To be competitive, employers develop and refine their basic compensation systems and may use variable pay programs as incentive rewards. The rapid increase in the cost of benefits, especially health care benefits, will continue to be a major issue for most employers

SBA

U.S. Small Business Administration

U S E R R A

Uniformed Services Employment and Reemployment Rights Act (U S E R R A) ​ U S E R R A Provisions:​ Leaves of absence and return to employment rights​ Prompt reemployment on return​ Protection from discharge and retaliation​ Health insurance continuation​ Continued seniority rights​

Core competency

Unique capability that creates high value for a company

Sexual harassment:

Unwelcome verbal, visual, or physical conduct of a sexual nature that is severe and affects working conditions or creates a hostile work environment Can be perpetrated by boss or subordinate​ Can be perpetrated by men or women​ Goes unreported because victims are embarrassed or concerned about retaliation

Military Status Protections

Vietnam Era Veterans' Readjustment Assistance Act U S E R R A

WARN

Worker Adjustment and Retraining Notification

WFPMA

World Federation of People Management Associations (WFPMA) provides an opportunity for HR professionals operating in global organizations to network and gain expertise

AMO

ability-motivation-opportunity model The AMO model involves HR practices that lead to greater skill, greater motivation, and greater opportunity for workers to contribute to the organization

HR metrics

are specific measures of HR practices. They are performance indicators of various HR issues, like absenteeism and turnover rates. Metrics are typically used to assess HR practices and results within the organization over time. A metric can be developed using cost, quantity, quality, timeliness, and other designated goals. Metrics can be developed to track HR efficiency and effectiveness

unit labor cost

computed by dividing the average cost of workers by their average levels of output. Using unit labor costs, one can see that relatively high wages will not affect competitiveness if high productivity levels are achieved. Low unit labor costs can be a basis for a strategy focusing on human resource competency. Productivity and unit labor costs can be evaluated at the global, country, organizational, departmental, or individual level.

Organizational culture

consists of the shared values and beliefs that give members of an organization meaning and provide them with rules for behavior. These values are deeply embedded in organizations and affect how their members view themselves, define opportunities, and plan strategies. In this sense, such a culture establishes the personality of a company in a similar way that personality shapes an individual, shaping its members' responses and defining what an organization can or is willing to do. The culture of an organization is, therefore, seen by employees in the norms, values, philosophies, rituals, and symbols adopted by the firm. Culture is particularly important because it tells individuals how to behave (or not to behave) in the workplace.

HR audit

formal research effort to assess the current state of an organization's HR practices. This audit is used to evaluate how well activities in each of the HR areas (staffing, compensation, health and safety, etc.) have been performing so that management can identify areas for improvement. An HR audit often helps smaller organizations without a formal HR professional identify issues associated with legal compliance, administrative processes and recordkeeping, employee retention, and other areas.

balanced scorecard

framework organizations use to report on a diverse set of performance measures. This method balances financial and nonfinancial measures so that managers focus on long-term drivers of performance and organizational sustainability.

Outsourcing

involves transferring the management and performance of a business function to an external service provider. Organizations in the United States outsource a wide variety of noncore functions to reduce costs or to obtain skills and expertise not available in the organization.

Due diligence

is a comprehensive assessment of all aspects of the business being acquired. Financial, sales and marketing, operations, and human resource staffs can all be involved before the final decision is made to merge with or acquire the company. Each function determines the assets and liabilities of the target company to ascertain whether there are serious risks to the buyer. HR professionals can review broad issues related to legal compliance and labor contract obligations. HR should also assess what HR policies have been used in a firm, the available talent, and the organizational culture.

Efficiency

is the degree to which operations are carried out in an economical manner. Efficiency can also be thought of as a short-term measure that compares inputs and costs directly against outputs and benefits.

Innovation

is the process whereby new ideas are generated that create value for an organization. Clearly, the majority of innovation within an organization comes from its employees who are most knowledgeable about how things are done and what customers desire.

KSAs

knowledge, skills, abilities (KSAs)

productivity

measure of the quantity and quality of work done, considering the cost of the resources used.

Alternate work arrangements

nontraditional schedules that provide flexibility to employees and include job sharing and telecommuting These are creative solutions to attract and retain skilled employees who want flexibility. Employees can be given more freedom in determining when and how they will perform their jobs. Retirees may be rehired on a part-time or temporary basis to fill talent gaps. The advantage is that these individuals are already trained and can be productive immediately. Care must be taken not to interfere with pension payments or other benefits tied to retirement.

Offshoring

occurs when a company relocates a business process or operation from one country to another. Firms can offshore the production of goods as well as the delivery of services to lower-wage countries. Call centers in India are an example of business service offshoring to countries with well-educated, English-speaking workers

Rehabilitation Act of 1973

provided for equal employment opportunity for disabled workers and applicants by federal contractors​

HCVA Formula

revenue - (operating expenses [compensation + benefit costs]) / full time head count

Strategic HR management

the appropriate use of HR management practices to gain or keep a competitive advantage. There are different ways in which HR professionals can help firms be more competitive, including hiring good employees, placing them in the right jobs, and rewarding them fairly

human capital

the collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organization's workforce. It is important that workers have both the necessary competence plus the desire to perform effectively.

Benchmarking

the process of comparing an organization's business results to industry standards or best practices An organization compares itself to "best-in-class" organizations that demonstrate excellence for a specific process. Benchmarking is focused on external practices that the organization can use to improve its own processes and practices. When implementing benchmarking, managers should be careful to find organizations with similar contexts, cultures, operations, and size so that comparisons are realistic. Practices that would work effectively in an organization of 500 employees might not transfer very well to an organization with 5,000 employees. It is vital to recognize that different organizational settings will affect the success of various HR practices. This is truly an area where "one size does not fit all." The organization should carefully select benchmarks that will have the greatest impact on organizational performance.

Strategic planning

the process of defining organizational strategy, or direction, and allocating resources (capital and people) toward its achievement. Successful organizations engage in this core business process on an ongoing basis. The strategic plan serves as the road map that gives the organization direction and aligns resources.

organizational core values

those principles that create the operating philosophy for organizational decisions Many organizations identify core values related to customers/clients, employees, financial growth, ethics, and social responsibility. Values serve an important purpose in stating to all stakeholders what is important in the way the organization will be managed and what standards of conduct are expected

TCOW

total cost of workforce (TCOW) is a comprehensive measure that takes into account the full cost for all people who contribute work to the organization. It is becoming increasingly important to recognize that TCOW includes more than just salaries and benefits; it also includes the costs of turnover, employee development, onboarding, and other investments in getting employees productive.

A useful way to measure the productivity of human resources is

unit labor cost

VUCA

volatile, uncertain, complex, and ambiguous. The term VUCA was created by the U.S. Army War College to describe political conditions after the cold war, but it is now applied more generally to business conditions that exist and create challenges during the planning process