Intro to Business CH 10
sexual harassment (312)
> 2 types: Quid-Pro-Quo; Hostile Work Environment > making unwelcome sexual advances in the workplace > Sexual harassment is defined by the EEOC as unwelcome sexual advances in the work environment. If the conduct is indeed unwelcome and occurs with sufficient frequency to create an abusive work environment, the employer is responsible for changing the environment by warning, reprimanding, or firing the harasser.
Forecasting Internal & External Supplies (308)
> After managers comprehend the jobs to be performed within an organization, they can start planning for the organization's future HR needs. > The manager starts by assessing trends in past HR usage, future organizational plans, and general economic trends. Forecasting the supply of labor is really two tasks:
adverse impact (310)
> Employment requirements such as test scores and other qualifications are legally defined as having an "adverse impact" on minorities and women when such individuals meet or pass the requirement at a rate less than 80 percent of the rate of majority group members. Criteria that have an adverse impact on protected groups can be used only when there is solid evidence that they effectively identify individuals who are better able than others to do the job.
Labor-Management Relations Act (Taft-Hartley Act) (311)
> Following a series of severe strikes in 1946, the Labor-Management Relations Act (also known as the Taft-Hartley Act) was passed in 1947 to limit union power. > The law increases management's rights during an organizing campaign. > The Taft-Hartley Act also contains the National Emergency Strike provision, which allows the president of the United States to prevent or end a strike that endangers national security. > Taken together, these laws balance union and management power. > Employees can be represented by a legally created and managed union, but the business can make non-employee-related business decisions without interference.
quid-pro quo harassment (312)
> In cases of quid pro quo harassment, the harasser offers to exchange something of value for sexual favors. > A male supervisor, for example, might tell or suggest to a female subordinate that he will recommend her for promotion or give her a raise in exchange for sexual favors.
Patriot Act (312)
> In response to the terrorist attacks of September 11, 2001, the U.S. government passed legislation that increases its powers to investigate and prosecute suspected terrorists. This legislation, known as the Patriot Act, has several key implications for HRM. > For instance, certain "restricted" individuals (including ex-convicts and aliens from countries deemed by the State Department to have "repeatedly provided support for acts of international terrorism") are ineligible to work with potentially dangerous biological agents. > More controversial are sections granting government investigators access to previously confidential personal and financial records.
Fair Labor Standard Act (310)
> Laws also regulate compensation and benefits. > The Fair Labor Standards Act, passed in 1938 and amended frequently since then, sets a minimum wage and requires the payment of overtime rates for work in excess of 40 hours per week. > Salaried professional, executive, and administrative employees are exempt from the minimum hourly wage and overtime provisions.
table 10-1 (309)
> Major Laws & Regulations Affecting Human Resource Management > A number of laws regulate various aspects of employee-employer relations, especially in the areas of equal employment opportunity, compensation and benefits, labor relations, and occupational safety and health.
Civil Rights Act of 1991 (310)
> More recently, the Civil Rights Act of 1991 amended the original Civil Rights Act as well as other related laws by both making it easier to bring discrimination lawsuits (which partially explains the aforementioned backlog of cases) while simultaneously limiting the amount of punitive damages that can be awarded in those lawsuits.
Equal Pay Act 1963 (310)
> Requires that men and women be paid the same amount for doing the same job. > Attempts to circumvent the law by having different job titles and pay rates for men and women who perform the same work are also illegal. > Basing an employee's pay on seniority or performance is legal, however, even if it means that a man and woman are paid different amounts for doing the same job.
Equal Employment Opportunity Commission (EEOC) (310)
> The Equal Employment Opportunity Commission (EEOC) is charged with enforcing Title VII as well as several other employment-related laws.
Employment at will (312)
> The concept of employment at will holds that both employer and employee have the mutual right to terminate an employment relationship at any time for any reason, with or without advance notice to the other. > Over the last two decades, however, terminated employees have challenged the employment-at-will doctrine by filing lawsuits against former employers on the grounds of wrongful discharge.
hostile work environment (312)
> The creation of a hostile work environment is a subtler form of sexual harassment. > A group of male employees who continually make off-color jokes and lewd comments and perhaps decorate the work environment with inappropriate photographs may create a hostile work environment for a female colleague, who may become uncomfortable working in that environment.
Cost Price Index (327)
> a government statistic that reflects changes in consumer purchasing power.
external recruiting (313)
> attracting persons outside the organization to apply for jobs acquiring new employees from outside the company
wage re-opener clause (327)
> clause allowing wage rates to be negotiable during the life of a labor contract > One solution is a wage reopener clause, which allows wage rates to be renegotiated at preset times during the life of the contract.
salary (314)
> compensation in the form of money paid for discharging the responsibilities of a job > A salary, on the other hand, is paid for performing a job. > A salaried executive earning $100,000 per year is paid to achieve results even if that means working 5 hours one day and 15 the next. Salaries are usually expressed as an amount paid per month or year.
wages (314)
> compensation in the form of money paid for time worked > Wages and salaries are the dollar amounts paid to employees for their labor. > Wages are paid for time worked. For example, if your job pays you $10 an hour, that is your wage.
employee information system (skills inventory) (308)
> computerized system containing information on each employee's education, skills, work experiences, and career aspirations > system can quickly locate every employee who is qualified to fill a position
internal recruiting (313)
> considering present employees as candidates for openings > promoting current employees from within company
job description (307)
> description of the duties and responsibilities of a job, its working conditions, and tools, materials, equipment, and information used to perform it
job specification (307)
> description of the skills, abilities and credentials and qualifications required by a job
contingent worker (323)
> employee hired on something other than a full-time basis to supplement an organization's permanent workforce > includes independent contractors, on-call workers, temporary employees, and contract and leased employees
knowledge workers (323)
> employees who are of value because of the knowledge they possess > Traditionally, employees added value to organizations because of what they did or because of their experience. In the information age, however, employees who add value because of what they know are usually called knowledge workers. Knowledge workers, which include computer scientists, engineers, physical scientists, and game developers, typically require extensive and highly specialized training. > Once they are on the job, retraining and training updates are critical to prevent their skills from becoming obsolete.
Employee Retirement Income Security Act (ERISA) of 1974 (311)
> ensures the financial security of pension funds by regulating how they can be invested > Certain benefits are mandatory, such as workers' compensation insurance for employees who are injured on the job. > Employers who provide a pension plan for their employees are regulated by the Employee Retirement Income Security Act (ERISA) of 1974.
National Labor Relations Board (NLRB) (311)
> established by the Wagner Act to enforce its provisions
Occupational Safety and Health Act (OSHA) of 1970 (311)
> federal law setting and enforcing guidelines for protecting workers from unsafe conditions and potential health hazards in the workplace > The Occupational Safety and Health Act (OSHA) of 1970 directly mandates the provision of safe working conditions. It requires that employers: 1) provide a place of employment that is free from hazards that may cause death or serious physical harm (2) obey the safety and health standards established by the Department of Labor. Safety standards are intended to prevent accidents, whereas occupational health standards are concerned with preventing occupational disease.
Title VII of the Civil Rights Act of 1964 (309)
> forbids discrimination in all areas of the employment relationship, such as hiring, opportunities for advancement, compensation increases, lay-offs, and terminations against members of certain protected classes based on factors such as race, color, gender, religious beliefs, or national origin.
profit-sharing plan (315)
> incentive plan for distributing bonuses to employees when company profits rise above a certain level > Some incentive programs apply to all the employees in a firm. Under profit-sharing plans, for example, profits earned above a certain level are distributed to employees.
gainsharing plan (315)
> incentive plan that rewards groups for productivity improvements > distribute bonuses to employees when a company's costs are reduced through greater work efficiency. > Pay-for-knowledge plans pay workers to learn new skills and to become proficient at different jobs.
pay for performance (or variable pay) (315)
> individual incentive that rewards a manager for especially productive output > A newer incentive plan is called pay for performance (or variable pay). > In essence, middle managers are rewarded for especially productive output with earnings that significantly exceed the cost of bonuses.
affirmative action (310)
> intentionally seeking & hiring employees from groups that are underrepresented in the organization > Several executive orders, however, require that employers holding government contracts engage in affirmative action, intentionally seeking and hiring employees from groups that are underrepresented in the organization. > These organizations must have a written affirmative action plan that spells out employment goals for underused groups and how those goals will be met. > These employers are also required to act affirmatively in hiring Vietnam-era veterans (as a result of the Vietnam Era Veterans Readjustment Assistance Act) and qualified handicapped individuals. > Finally, the Pregnancy Discrimination Act forbids discrimination against women who are pregnant.
strike (327)
> labor action in which employees temporarily walk off the job and refuse to work > Historically, one of the most common union tactics has been the strike, which occurs when employees temporarily walk off the job and refuse to work. > The number of major strikes in the United States has steadily declined over the past few decades. > From 1960 to 1980, example, an average of 281 strikes per year. > In the 1980s there was an average of 83 major strikes per year; in the 1990s this figure fell to an average of 35 per year. > Between 2000 and 2009 there was an average of 20 major strikes per year. > There were 19 major strikes in 2012.
picketing (327)
> labor action in which workers publicize their grievances at the entrance to an employer facility > workers march at the entrance to the employer's facility with signs explaining their reasons for striking
boycott (327)
> labor action in which workers refuse to buy the products of a targeted employer > occurs when union members agree not to buy products of a target employer > worker's may also urge consumers to boycott the firm's products
cost-of-living adjustment (COLA) (327)
> labor contract clause tying future raises to changes in consumer purchasing power > Compensation includes both current and future wages. One common tool for securing wage increases is a cost-of-living adjustment (COLA). > Most COLA clauses tie future raises to the Consumer Price Index (CPI), a government statistic that reflects changes in consumer purchasing power. > Almost half of all labor contracts today include COLA clauses. A union might be uncomfortable with a long-term contract based solely on COLA wage increases.
sickout (328)
> large numbers of numbers call in sick
Equal Employment Opportunity (310)
> legally mandated nondiscrimination in employment on the basis of race, creed, sex, or national origin > Employers are not required to seek out and hire minorities, but they must treat all who apply fairly.
replacement chart (308)
> list of each management position, who occupies it, how long that person will likely stay in the job, and who is qualified as a replacement
lockout (328)
> management tactic whereby workers are denied access to the employer's workplace > Lockouts occur when employers deny employees access to the workplace. > Lockouts are illegal if they are used as offensive weapons to give management a bargaining advantage. > However, they are legal if management has a legitimate business need (for instance, avoiding a buildup of perishable inventory).
arbitration (328)
> method of resolving a labor dispute in which both parties agree to submit to the judgment of a neutral party > agreed to let arbitrator *decide judgement* > *in some disputes, such as those between the government and public employees, "arbitration" is compulsory, or required by law*
mediator (328)
> neutral third party in mediation procedures that can *suggest* but not impose a settlement on the other parties
mediation (328)
> of resolving a labor dispute in which a 3rd party *suggests*, but does not impose, a settlement
National Labor Relations Act (311) (Wagner Act)
> passed in 1935, sets up a procedure for employees to vote on whether to have a union. > If they vote for a union, management is required to bargain collectively with the union.
age discrimination in employment act (310)
> passed in 1967, amended in 1978 and 1986, is an attempt to prevent organizations from discriminating against older workers. > In its current form, it outlaws discrimination against people older than 40 years. > Both the Age Discrimination in Employment Act and Title VII require passive non-discrimination, or equal employment opportunity.
collective bargaining (326)
> process by which labor and management negotiate conditions of employment for union-represented workers > The power of unions comes from collective action, forcing management to listen to the demands of all workers rather than to just the few who speak out. > Collective bargaining is the process by which labor and management negotiate conditions of employment for union-represented workers and draft a labor contract.
human capital (307)
> reflects the organization's investment in attracting, retaining, and motivating an effective workforce > The growing awareness of the strategic significance of HRM has even led to new terminology to reflect a firm's commitment to people. > Human capital reflects the organization's investment in attracting, retaining, and motivating an effective workforce. > Hence, just as the phrase financial capital is an indicator of a firm's financial resources and reserves, so, too, does "human capital" serve as a tangible indicator of the value of the people who comprise an organization.
Family and Medical Leave Act (FMLA) of 1993 (310)
> requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies.
human resource management (HRM) (306)
> set of organizational activities directed at attracting, developing & maintaining an effective workforce HRM (or "personnel," as it is sometimes called) was once relegated to second-class status in many organizations, but its importance has grown dramatically in the last two decades. > Its new importance stems from increased legal complexities, the recognition that HR are a valuable means for improving productivity, and the awareness of the costs associated with poor HRM.
job analysis (307)
> systematic analysis of jobs within an organization; > most firms have trained experts who handle these analysis results in 2 things: Job Descriptions; Job Specification
co-pay (327)
> the dollar amount a patient pays to the doctor; insurance then pays the remainder
Forecasting Internal Supply (308)
> the number & type of employees who will be in the firm at some future date
Forecasting External Supply (308)
> the number & type of people who will be available for hiring from the labor market at large
human resources (306)
> the people comprising an organization's workforce > Human resources (HR) are critical for effective organizational functioning.
workforce diversity (322)
> the range of workers' attitudes, value, beliefs, & behaviors than differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics > One extremely important set of HR challenges centers on workforce diversity, the range of workers' attitudes, values, beliefs, and behaviors that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics. > In the past, organizations tended to work toward homogenizing their workforce's, getting everyone to think and behave in similar ways. Partly as a result of affirmative action efforts, however, many U.S. organizations are now creating more diverse workforce's than ever before.
talent management (307)
> the view that the people in an organization represent a portfolio of valuable talents that can be effectively managed and tapped in ways best targeted to organizational success
compensation system (314)
> total package of rewards that organizations provide to individuals in return for their labor > People who work for a business expect to be paid, and most workers today also expect certain benefits from their employers. Indeed, a major factor in retaining skilled workers is a company's compensation system, the total package of rewards that it offers employees in return for their labor.
strikebreaker (328)
> worker hired as a permanent or temporary replacement for a striking employee > A firm can also hire temporary or permanent replacements called strikebreakers. > However, the law forbids the permanent replacement of workers who strike because of unfair practices.
affirmative action plan (310)
> written statement of how the organization intends to actively recruit, hire and develop members of relevant protected classes > spells out employment goals for underused groups and how those goals will be met. > These employers are also required to act affirmatively in hiring Vietnam-era veterans (as a result of the Vietnam Era Veterans Readjustment Assistance Act) and qualified handicapped individuals. > Finally, the Pregnancy Discrimination Act forbids discrimination against women who are pregnant.
Selecting Human Resources (313)
Once the recruiting process has attracted a pool of applicants, the next step is to select someone to hire. The intent of the selection process is to gather from applicants the information that will predict job success and then to hire the candidates likely to be most successful.
Bargaining Zone (326)
The collective bargaining process begins when the union is recognized as the exclusive negotiator for its members, and union leaders meet with management representatives to agree on a contract. By law, both parties must sit down at the bargaining table and negotiate in good faith. Figure 10.5 shows what is called the "bargaining zone."
cafeteria benefits plan (316)
benefit plan that sets limits on benefits per employees, each of whom may choose from a variety of alternative benefits
benefits (315)
compensation other than wages and salaries > Benefits, compensation other than wages and salaries and other incentives offered by a firm to its workers, account for an increasing percentage of most compensation budgets. Most companies are required by law to pay tax for Social Security retirement benefits and provide workers' compensation insurance, insurance for compensating workers injured on the job. Most businesses also provide health, life, and disability insurance for their workers, as well as paid time off for vacations and holidays.
performance appraisal (319)
evaluation of an employee's job performance to determine the degree to which the employee is performing effectively > The appraisal process begins when a manager defines performance standards for an employee. The manager then observes the employee's performance. For some jobs, a rating scale like the abbreviated one in Figure 10.2 is useful in providing a basis for comparison.
Americans with Disabilities Act (310)
forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees > In 1990 Congress passed the Americans with Disabilities Act, which forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees.
labor union (325)
group of individuals working together to achieve shared job-related goals, such as higher pay, shorted working hours, more job security, greater benefits, or better working conditions
pay-for-knowledge plan (315)
incentive plan to encourage employees to learn new skills or become proficient at different jobs
merit salary system (315)
individual incentive linking compensation to performance in non-sales jobs
bonus (315)
individual performance incentive in the form of a special payment made over and above the employee's salary
work slowdown (328)
labor action in which worker's perform jobs at a slower than normal pace
workers' compensation insurance (315)
legally required insurance for compensating workers injured on the job
arbitrator (328)
neutral third party that *dictates* a settlement between 2 sides which have agreed to submit to outside judgement
vestibule training (318)
off-the-job training conducted in a simulated environment > enables participants to focus on safety, learning, and feedback rather than on productivity
360-degree feedback (320)
performance appraisal technique in which managers are evaluated by everyone around them-their boss, their peers & their subordinates managers are evaluated by everyone around them-their boss, their peers, and their subordinates > One interesting innovation in performance appraisal used in some organizations today is called 360-degree feedback, in which managers are evaluated by everyone around them—their boss, their peers, and their subordinates. > Such a complete and thorough approach provides people with a far richer array of information about their performance than does a conventional appraisal given by just the boss. > Of course, such a system also takes considerable time and must be handled so as not to breed fear and mistrust in the workplace.
recruiting (313)
process of attracting qualified persons to apply for job an organization is seeking to fill > When managers have determined that new employees are needed and understand the legal context in which they operate, they must then turn their attention to recruiting and hiring the right mix of people. This involves two processes: (1) acquiring new employees from outside the company and (2) promoting current employees from within. Both external and internal staffing, however, start with effective recruiting.
labor relations (325)
process of dealing with employees who are represented by a union
realistic job preview (RJP) (313)
providing the applicant with a real picture of what it would be like performing the job the organization is to fill
incentive program (315)
special compensation program designed to motivate high performance
on-the-job training(318)
training, sometimes informal, conducted while an employee is at work
development (318)
usually refers to teaching managers and professionals the skills needed for both present and future jobs
training (318)
usually refers to teaching operational or technical employees how to do the job for which they were hired
