HRM - Exam 1

A key motto that Home Depot leaders desire new employees learn to positively impact strategic organizational success is

"Seek first to understand and then to be understood."

organization structure

(who reports to whom and who does what) provides a cross-sectional overview of the static relationships between individuals and units that create the outputs. Organization structure is typically displayed via organizational charts that convey both vertical reporting relationships and horizontal functional responsibilities.

Sustainability includes the ability to

- Deal with economic and social changes - Practice environmental responsibility - Engage in responsible and ethical business practices - Provide high-quality products and services - Put in place methods to determine if the company is meeting stakeholders' needs

job analysis job specification

- list of knowledge, skills, abilities and other characteristics - a job specification is derived from a job description - not directly observable

job analysis job description

- lists of tasks, duties, and responsibilities - balance breadth and specificity

Sustainability

- relates to social responsibility. - refers to the company's ability to meet its needs without sacrificing the ability of future generations to meet their needs

Directional Strategies

-Concentration - Growth - Mergers & acquisitions - Downsizings

Selection Method Standards

1. Reliability 2. Validity 3. Generalizability 4. Utility 5. Legality

under osha, employees have a right to

1. Request an inspection. 2. Have a representative present at an inspection. 3. Have dangerous substances identified. 4. Be promptly informed about exposure to hazards and be given access to accurate records regarding exposures. 5.Have employer violations posted at the work-site.

2 phases of strategic management

1. strategy formulation 2. strategy implementation

Work-flow analysis includes analyzing:

1. work outputs 2. work processes 3. work inputs

One strategy Home Depot uses to ensure the HR employees are able to be effective in their roles is to spend time with customers. What is the minimum amount of time every HR employee at Home Depot spends in a customer-facing area?

20%

Concentration Strategy

A strategy focusing on increasing market share, reducing costs, or creating and maintaining a market niche for products and services: Company must maintain current skills that exist in organization. Need for skill-based training and fair compensation. Appraisals are more behavioral, and behaviors are established through extensive experience

Vacation Time would fall under which area of integration?

Administrative Linkage

legality

All selection methods must conform to existing laws and legal precedents. Three primary federal laws form the basis for a majority of the suits filed by job applicants.

Pregnancy Discrimination Act

An amendment to Title VII of the Civil Rights Act, it prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions: i.e., it is a form of unlawful sex discrimination. In addition, regarding pregnancy and maternity leave, employers may not single out pregnancy-related conditions for special procedures to determine an employee's ability to work, and if an employee is temporarily unable to perform during her pregnancy, the employer must treat her the same as any temporarily disabled employees. The act also requires that any health insurance must cover expenses for pregnancy-related conditions on the same basis as costs for other medical conditions. Pregnancy-related benefits cannot be limited to married employees, and if an employer provides any benefits to workers on leave, they must also provide the same benefits for those on leave for pregnancy-related conditions. It covers employers with more than 15 employees

External Growth Strategy

An emphasis on acquiring vendors and suppliers or buying businesses that allow a company to expand into new markets

This company is looking to implement a training program in order to keep the current employees sharp and up date

Concentration strategy

This project involves a company in a stable industry that wants to maintain the skills that currently exist

Concentration strategy

validity

Content validation is a test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that occur on the job. A test that is content valid exposes the job applicant to situations that are likely to occur on the job, and then tests whether the applicant currently has sufficient knowledge, skill, or ability to handle such situations.

evidence based HR

Demonstrating that human resource practices have a positive influence on the company's bottom line or key stakeholders (employees, customers, community, shareholders).

HRM can show that it cares about its employees and help them find new jobs by providing this service

Downsizing

This company is a bank that needs to get rid of the "dead wood" by terminating the employment of inefficient workers.

Downsizing strategy

This is a struggling automotive company that needs to lay off a quarter of its workers yet strongly wants to prevent a decline in company moral and motivation.

Downsizing strategy

Overview of Personality Tests

Extraversion-sociable, assertive, active, upbeat, and talkative. Agreeableness-altruistic, trusting, sympathetic, and cooperative. Conscientiousness-purposeful, determined, dependable, and attentive to detail. Emotional stability-calm, optimistic, and well adjusted. Openness to experience-imaginative, attentive to inner feelings, have intellectual curiosity and independence of judgment. Conscientiousness •I am always prepared. •I pay attention to details. •I am exacting in my work. Extraversion •I am quiet around strangers. (reverse-scored) •I take charge. •I am skilled in handling social situations. Agreeableness •I have a soft heart. •I insult people. (reverse-scored) •I have a good word for everyone. Emotional Stability •I am relaxed most of the time. •I seldom feel blue. •I have frequent mood swings. (reverse scored) Openness to Experience •I have a vivid imagination. •I love to think up new ways of doing things. •I try to avoid complex people. (reverse scored)

mergers and acquisitions

HR needs to be involved in mergers and acquisitions. In addition to the desirability of HRM playing a role in evaluating a merger opportunity, HRM certainly has a role in the actual implementation of a merger or acquisition. Training in conflict resolution is also necessary when companies engage in an external growth strategy. All the options for external growth consist of acquiring or developing new businesses, and these businesses often have distinct cultures. Thus, many HRM programs face problems in integrating and standardizing practices across the company's businesses

Human resource management practices step 2:

HR planning

temporary workforce

Includes staffing firms and contractors Advantages •Flexibility to address changing demand conditions •Quickly staff new areas •Fill in for core workers Disadvantages •Lower commitment •Lower helping or extra effort •Potential friction with core workers

Consolidation Plan would fall under which area of integration?

Integrative Linkage

An American accounting company is looking to enter the South American market by opening foreign subsidiaries in five countries throughout Latin America.

Internal growth strategy

This is an American company that plans to enter into a joint venture with both a Japanese and a Korean company

Internal growth strategy

HR experts can help the company determine whether workers in other countries can provide the same or better skills

International Expansion

HR should assist with selecting employees to work abroad and prepare them for these assignments.

International Expansion

Consistent structures and practices for compensation and benefits, for example, will be important to align the organizations and employees.

Mergers and Acquisitions

Corporate practices and the culture between two organizations will differ, requiring HR to provide conflict resolution training

Mergers and Acquisitions

A Chinese chemical company is acquiring an American company in the same industry.

Mergers and acquisitions strategy

This company is a large computer software company that is planning on doing several M&A's both internationally and domestically this year.

Mergers and acquisitions strategy

Training Program would fall under which area of integration?

One-Way Linkage

Personnel Policies

Organizational decisions that affect the nature of the vacancies for which people are recruited. They impact the organization's ability to recruit. Characteristics of the vacancy are more important than recruiters or recruiting sources.

Evaluate internal HR functions to determine if another organization can provide these effectively at a lower cost.

Outsourcing

HRM can assist with the seamless transition of moving organizational activities and services to an outside company.

Outsourcing

Submission to or rejection of such conduct by an individual is used as the basis of employment decisions affecting such individual

Quid Pro Quo

submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment

Quid Pro Quo

As the organization develops a new way of operating and reassign jobs, HRM may need to align the organization's pay structure.

Reengineering

HRM can help to design and implement changes to work processes and provide training for employees.

Reengineering

Typical Unstructured Interviews

Relatively unplanned and "quick and dirty" Questions based on interviewer "hunches" or "pet questions" to assess applicants Casual, open-ended, or subjective questions Often contains obtuse questions Often contains highly speculative questions Interviewer often unprepared More potential for discrimination and bias Validity typically r=.20

recruitment sources

Since recruitment sources are unlimited, an organization must decide how to reach the best sources of potential employees. The sources from which a company recruits potential employees are a critical aspect of its overall recruitment strategy

strategy formulation

Strategic planning groups decide on a strategic direction by defining the company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses.

forecasting

The attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be future labor shortages or surpluses.

strategy implementation

The organization follows through on the strategy that has been chosen. This includes structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing reward systems that align employee behavior with the strategic goals. This process entails a constant cycling of information and decision making

Program implementation and evaluation

The programs developed in the strategic-choice stage of the process are put into practice in the program-implementation stage. A critical aspect is to make sure that some individual is held accountable for achieving the stated goals and has the necessary authority and resources to accomplish this goal. It is also important to have regular progress reports on the implementation to be sure that all programs are in place by specified times and that the early returns from these programs are in line with projections. The final step in the planning process is to evaluate the results.

Civil Rights Act of 1991

This is an amendment to Title VII, ADA, and ADEA and allows compensatory and punitive damages when discrimination has been intentional or reckless. (see next slide for more details)

HRM can encourage a culture of problem solving, innovation, creativity, and risk taking to meet customer product or service demands

Total Quality Management

HRM can ensure that every employee receives training to ensure a quality product or service is delivered.

Total Quality Management

New Technology Time would fall under which area of integration?

Two-Way Linkage

Human resource management plays a role in.....

a company's survival, effectiveness, and competitiveness

permanent workforce

advantages •Stability •Continuity •Predictability •Sense of commitment disadvantages •Locked in relationship •Reduced flexibility •Less inflow of new ideas

Human resource management practices step 1:

analysis and design of work

Executive Orders

are directives issued and amended unilaterally by the president. Two affect HRM practice:

Occupational Safety and Health Act

authorizes the federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate commerce.

two dimensions of structure are

centralization and departmentalization

Human resource management practices step 6:

compensation

Rehabilitation Act of 1973

covers federal contractors and requires them to engage in affirmative action for disabled individuals.

Vocational Rehabilitation Act of 1973

covers federal contractors and requires them to engage in affirmative action for disabled individuals.

1. HRM will need to boost the morale of remaining workers during this process.

downsizing

A strategy Home Depot uses to assist new HR employees to learn the business is to

embed the new employee with a business partner.

Human resource management practices step 8:

employee relations

Disparate Treatment

exists when individuals in similar situations are iNTENTIONALLY treated differently based upon race, color, religion, sex, national origin, age, or disability status.

forecasting availabilities

external market availabilities and internal market availabilities

human resource planning process consists of

forecasting, goal setting and strategic planning, and program implementation and evaluation.

growth

internal growth strategy- A focus on new market and product development, innovation, and joint ventures: Companies must constantly hire, transfer, and promote individuals Compensation weighted towards achievement

Types of Selection Methods

interviews, honesty tests and drug tests, work samples, personality inventories, cognitive ability tests, physical ability tests, and references and biographical data. Any, and all, methods used to make a selection decision must conform to the standards discussed in the first part of the chapter, especially reliability and validity.

Strategic Management

is a process to address the organization's competitive challenges by integrating goals, policies and action sequences into a cohesive whole.

generalizability

is the degree to which the validity of a selection method established in one context extends to other contexts. Validity generalization stands as an alternative for validating selection methods for companies that cannot employ criterion-related or content validation. If a company purchases a previously validated selection method/test that also has good generalizability, then it does not have to re-validate that test, saving a lot of time and effort. E.g., personality tests have good validity generalizability...

Strategic Human Resource Management

is the pattern of planned HR activities and deployments intended to enable an organization to achieve its goals

Talent Management

is the systematic planned strategic effort to use bundles of HRM practices including - acquiring and assessing employees, - learning and development, - performance management and compensation to attract, retain, develop and motivate highly skilled employees and managers.

Work Flow Analysis

is useful in providing a means for managers to understand all tasks required to produce a high-quality product and the skills necessary to perform those tasks

Title VII of the Civil Rights Act of 1964

makes it illegal for an employer to "fail or refuse to hire or discharge any individual because of the individual's race, color, religion, sex, or national origin. Title VII states that it is illegal for an employer to "(1) fail or refuse to hire or discharge any individual, or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment because of such individual's race, color, religion, sex, or national origin, or (2) to limit, segregate, or classify his employees or applicants for employment in any way that would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee because of such individual's race, color, religion, sex, or national origin." The act applies to organizations with 15 or more employees working 20 or more weeks a year that are involved in interstate commerce, as well as state and local governments, employment agencies, and labor organizations

Disparate impact

occurs when a neutral employment practice disproportionately excludes a protected group from employment opportunities

quid pro quo harassment

occurs when some type of benefit or punishment is made contingent upon the employee submitting to sexual advances

general duty clause

of OSHA states that an employer has an overall obligation to furnish employees with a place of employment free from recognized hazards

Business Acumen

one of 9 competencies

Critical Evaluation

one of 9 competencies

Global and Cultural Effectiveness

one of 9 competencies

HR Technical Expertise and Practice

one of 9 competencies

communications

one of 9 competencies

consultation

one of 9 competencies

ethical practice

one of 9 competencies

organizational leadership and navigation

one of 9 competencies

relationship management

one of 9 competencies

The Civil Rights Act

passed in 1866 was later broken into two statutes. Section 1982 granted all persons the same property rights as white citizens. Section 1981 granted other rights, including the right to enter into and enforce contracts. Courts have interpreted Section 1981 as granting individuals the right to make and enforce employment contracts.

According to the VP of HR for Home Depot, the most important thing for organizational success is understanding the ________. The ________ will make it or break it.

people; people

Human resource management practices step 7:

performance management

Age Discrimination in Employment Act of 1967

prohibits discrimination against employees over the age of 40. Covers employers with 15 or more employees working 20 or more weeks per year; labor unions; employment agencies; federal government.

Executive Order 11246

prohibits government contractors from discrimination based on race, color, sex, religion, and national origin and affirmative action must be taken. It covers Federal contractors and subcontractors with contracts greater than $10,000.

Americans with Disabilities Act of 1990 (ADA)

protects individuals with disabilities from being discriminated against in the workplace by prohibiting discrimination in all employment practices. Requires that "reasonable accommodations" be made as long as they do not present an "undue burden" upon the employer.

Human resource management practices step 3:

recruiting

Centralization

refers to the degree to which decision making authority resides at the top of the organizational chart as opposed to being distributed throughout lower levels

Departmentalization

refers to the degree to which work units are grouped based on functional similarity or similarity of work flow. HR managers should be trained to identify the competitive issues faced by the organization.

Human Resource Management

refers to the policies, practices, and systems that influence employees' behavior, attitudes, and performance

Vietnam Era Veteran's Readjustment Act of 1974

requires federal contractors to take affirmative action toward employing Vietnam veterans.

Equal Pay Act of 1963

requires that men and women in the same organization who are doing equal work must be paid equally. Covers employers engaged in interstate commerce

Executive Order 11478

requires the federal government to base all its employment policies on merit and fitness and specifies that race, color, sex, religion, and national origin should not be considered.

Human resource management practices step 4:

selection

Supreme Court

serves as the court of final appeal. decisions made by the supreme court are binding; they can be overturned only through legislation

forecasting requirements

statistical techniques - trend analysis - ratio analysis - regression analysis

utility

the degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in organizations. In other words, utility looks at the usefulness of the selection method in picking the best fit candidate (not everybody who has the required qualifications would be the best candidate for a job). Utility is impacted by reliability, validity, and generalizability.

downsizings

the planned elimination of large numbers of personnel, designed to enhance organizational effectiveness. The dynamic economic conditions requiring firms to constantly churn their workforces means that one important question facing firms is, How can we develop a reputation as an employer of choice, and engage employees to the goals of the firm, while laying off a significant portion of our workforce? How firms answer this question will determine how they can compete by meeting the stakeholder needs of their employees

work flow design

the process of analyzing the tasks necessary for the production of a product or service, prior to assigning tasks to a particular job category or person

characteristics and behaviors

the recruiter that influence the nature of vacancies and of people applying for jobs that shapes job choice decisions.

the 9 competencies for HR professionals was developed by

the society for human resource management

Goal Setting and Strategic Planning

to focus attention on the problem and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus. The goals should come directly from the analysis of labor supply and demand and should include a specific figure for what should happen with the job category or skill area and a specific timetable for when results should be achieved.

motivational approach

to job design has roots in organizational psychology and management literature and, in many ways, emerged as a reaction to mechanistic approaches to job design. The motivational approach to job design focuses on the job characteristics that affect the psychological meaning and motivational potential, and it views attitudinal variables as the most important outcomes of job design. The prescriptions of the motivational approach focus on increasing job complexity through job enlargement, job enrichment, and the construction of jobs around sociotechnical systems. It provides a means for the manager to understand all the tasks required to produce a number of high-quality products as well as the skills necessary to perform those tasks.

Human resource management practices step 5:

training and development

sexual harassment

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

At Home Depot the focus of its culture is to "nurture." This is done through staying focused on these two items when making business decisions that impact the organization: ________ and _________.

value wheel (decision-making model); inverted pyramid (leadership model)

quality of measures: reliability

•A measure is reliable to the extent it provides a consistent set of scores to represent an attribute (the degree to which a measure is free from random error.)

measurement: standardization

•Content is identical for all objects measured. •Administration of measure is identical for all objects. •Rules for assigning numbers are clearly specified and agreed on in advance.

executive branch steps

•First, the president can propose bills to Congress that, if passed, would become laws. •Second, the president has the power to veto any law passed by Congress, thus ensuring that few laws are passed without presidential approval—which allows the president to influence how laws are written. •Third, the regulatory agencies, under the authority of the president, have responsibility for enforcing the laws. Thus, a president can influence what types of violations are pursued. •Fourth, the president can issue executive orders, which sometimes regulate the activities of organizations that have contracts with the federal government. •Finally, the president appoints all the judges in the federal judicial system, subject to approval from the legislative branch. This affects the interpretation of many laws.

Executive Branch

•President of the U. S. •Regulatory Agencies •Although the legislative branch passes the laws, the executive branch affects these laws in many ways

Judicial Branch

•The first level consists of the U.S. District Courts and quasi-judicial administrative agencies. The district courts hear cases involving alleged violations of federal laws. Quasi-judicial agencies, such as the National Labor Relations Board (or NLRB, which is actually an arm of the executive branch, but serves a judicial function), hear cases regarding their particular jurisdictions (in the NLRB's case, disputes between unions and management). • U.S. Courts of Appeal: If neither party to a suit is satisfied with the decision of the court at this level, the parties can appeal the decision to the U.S. Courts of Appeals. These courts were originally set up to ease the Supreme Court's caseload, so appeals generally go from the federal trial level to one of the 13 appellate courts before they can be heard by the highest level, the Supreme Court.

Legislative Branch

•These bodies enact (passes) laws that govern many HR activities. •House of Representatives •Senate

internal market availabilities

•Transitional matrix •Judgmental techniques

external market availabilities

•Uses techniques of trend analysis and regression analysis •Incorporate data from the Bureau of Labor Statistics