WGU C202 Managing Human Capital All
Executive Order 11246
established requirements for non-discriminatory practices in hiring and employment on the part of U.S. government contractors. It "prohibits federal contractors and federally assisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin."
fair labor standards act of 1938
establishes both a national minimum wage and overtime rules
Fair Labor Standards Act (FLSA)
establishes national minimum wage and overtime rules
evaluative assessment methods
evaluate job candidates to identify whom to hire. ie psychomotor tests, cognitive ability test, non-cog ability test, personality assessment, integrity tests, job knowledge test, structured interview, unstructured interview, work samples, simulations, assessment center
work samples
evaluate the performance of actual or simulated work tasks
person needs analysis
evaluates how individual employees are doing in the training area and determines who needs what type of training
applicant assessment phases: evaluative assessment
evaluates job knowledge, work samples (portfolios or answering job scenario questions)
paired comparison method
every employee in a work group is compared to the other group members
inclusion
everyone feels respected and listened to, and everyone contributes to his or her fullest potential
creative benefits
ex, cliff bar: lets dogs come to work, nike: climbing wall
legally protected characteristics
examples include pregnancy, religion, age, sex, gender, ethnicity, national origin, disability status, military status
KPIs
examples include: Number of supervisors trained or number of product defects
optional benefits
examples include: free food, free exercise facilities, telecommuting, flexible spending accounts, domestic partner benefits etc.
top drivers of retention
excellent career advancement opportunities, satisfaction with firm's business decisions, good relationship w/supervisor, orgs rep as a great place to work, good work-life balance
special situation incentive plans
executive incentives, sales incentives, incenting innovation
burnout
exhaustion of physical or emotional strength or motivation usually as a result of prolonged stress or frustration
healthy employees
exhibit higher morale, better performance leading to increased company performance
Employment laws & regs
exists to provide equal employment opportunity & ban unfair discrimination
person-organization fit
fit between an individual's values, attitudes, and personality and the organization's values, norms and culture.
utilitarian, rights, fairness, common good, virtue
five types of ethical standards
HR
flows from orgs strategic plan and then flows back to the orgs success as a whole
Recruiting
fluid function w/I HR department
emotion-focused coping strategies
focus on the emotions brought on by the stressor
development
focuses on developing competencies that an employee or workgroup is expected to need in the future
performance culture
focuses on hiring, retaining, developing, motivating and making work assignments based on performance data and results
task needs analysis
focuses on identifying which jobs, competencies, abilities, behaviors, etc. the training effort should focus on
employer image
forced on people's general impression of an org
forced-choice rating method
forces the assessor to choose the statement that best fits the target employee from a provided set of statements that are scored and weighted in advance
training
formal and informal activities intended to improve competencies relevant to an employee or trainees current job
training
formal and informal activities to improve competencies relevant to an employee's or workgroup's current job
HR
formalizes an organizations expectations & guides employees
scanlon plans
gainsharing programs based on implementing employee suggestions for lowering the cost per unit produced
at-will employment
generally upheld at court though its best for companies to terminate with good reason & after following normal termination policy and procedures
changes of any type
generates a variety of emotions/reactions from very positive to very negative
development
getting better at what you do or developing competences to prepare for future roles
development
getting better than good
training
getting good
1 of biggest training challenges
getting new skills and knowledge to transfer back to the work setting
psychological contract
give a little, take a little
flexible benefits plans
give employees a set amount of credits or dollars to allocate among different benefits options provided by the employer
Good employment practices
give employees flexibility to make decisions on the spot
Targeted hiring strategies
give personnel department veto process over all new hires based on attitude
severance pay
give to employees upon termination of their employment
Procedure
gives specific steps needed to uphold policy
similar-to-me effect
giving high ratings to someone because she or he is perceived as being similar to the rater
steps in performance management process: Perf Mgmt standards
goals must revolve around both BEHAVIOR and RESULTS
surface bargaining
going through the motions of negotiations with no intent of reaching an agreement
Affirmative Action
government or private program designed to redress historic injustices and discrimination against specific groups by making special efforts to provide members of these groups with access to educational and employment opportunities
legally protected classes
groups sharing the same legally protected characteristics
protected classes
groups underrepresented in employment
National Labor Relations Act of 1935 (Wagner Act)
guarantees the right of nonmanagerial employees of firms engaged in interstate commerce to join unions and bargain collectively
policy
guide decision making
Good employment practices
guidelines not rules
policies
guidelines or laws that drive processes and procedures (ex. Speed limit 55), general, broad.
Errors in performance/appraisal
halo/horn effect, recency, primacy, bias, strictness, leniency, central tendency, contrast
dysfunctional stress
happens through over or under arousal stemming from too many or too few demands for too long
training
has been found to reduce workplace aggression
workers compensation
has reduced lawsuits, increase in safety & attempt to provide more prompt treatment/rehab when injuries occur
HR planning
has to consider performance metrics then aligns the org's talent to effectively and efficiently accomplish the org's strategic plans and goals.
HR strategies
have biggest impact when aligned not just with org strategic plan but with each other
Dual theory of HRM & business performance: most companies
have both core employees managed by high involvement HR practices AND peripheral employees managed by low involvement HR practices
Targeted hiring strategies
have dominant/high ranking employees attend new hire classes
Dual theory of HRM & business performance: High involvement HR practices
have positive effect on company financial performance: return on investment, revenue growth, revenue per employee
front line recruiters
have the largest impact on a firm's hiring decisions
1 of the 6 components of HRM
health & safety
HR internal consulting function
helping a department in performance management plan of an employee
labor relations strategies
helps both groups determine how to reach their goals while complying with labor laws
realistic job preview
helps with self-selection, vaccinates employee expectations & increases job commitment
high performance work systems (HPWS)
high involvement or high commitment organizations
compensatory approach
high scores on some assessments can compensate for low scores on other assessments
Methods of determining the correct candidate: compensatory approach
high scores on some assessments count more, compensate or override low scores on other.
recruiting best practices
hire personable & trustworthy recruiters
outsourcing
hiring an external vendor to do work rathe than doing it internally
ways HR promotes ethics
hiring ethical employees, setting clear goals for ethical behavior, training employees in ethics, recognizing ethics issues, properly handling ethical situations, consistently holding employees accountable for ethical behavior
goal of applicant assessments
hiring the right candidate
balanced scorecard
holistic assessment of performance orgs/groups/units
Negotiable job offer elements: relocation expenses
house-hunting, temp living allowance, travel expenses
psychology of safety
how a safe workplace influences how employees feel & behave
business strategy
how an organization will compete in a particular market
types of HR needs assessments: person needs analysis
how individual employees are doing in the training topic & determines who needs what type of training
Span of control
how many people report directly to a person
Org hierarchy
how much formal authority do some employees have over others
employee training program evaluation: Kirkpatrick's training eval model: 1. Reaction
how participants felt about the learning/training experience (customer satisfaction)
learning style
how people differ in how we process information when problem solving or learning
workflow
how work is organized to meet the organization's goals
applicant assessment: org fit
how you relate to the orgs culture
applicant assessment: group fit
how you relate to the team/department to which you will be assigned
after a company has ID'd it's business strategy for competing
human resource planning aligns the org's human resources, its talents, to accomplish the organizations strategic goals
Purpose of unions
ideally to promote & protect the interests of all employees regardless of whether they pay union dues & even workers who may not be represented by unions
labor relations strategic plan
identifies the labor relations goals desired individually or jointly by labor and management, determines the best strategy to reach those goals, and develops and executes the actions needed to implement that strategy
Competency Modeling
identifies the worker competencies characteristic to high performance
Organizational needs analysis
identifies where in the organization development or improvement opportunities exist
task statements
identify in specific behavioral terms the regular duties and responsibilities of a position
replacement planning
identifying specific back-up candidates for specific senior management positions
succession planning
identifying, developing and tracking employees to enable them to eventually assume higher level positions
defined contribution retirement plans
ie 401(k), 403(b) profit sharing, emp stock ownership
Under Medicare
if persons still working at 65 & their employer provides health insurance, person must use employer insurance as their primary insurance & this as secondary
4/5 rule
if the selection rate for any protected group is less than 4/5 or 80% of the rate of the employee group with the highest selection rate, adverse impact is indicated (ex. 100 of 100 white male applicants at a company are hired yet only 76 of 100 black male applicants are hired. WM selection ratio 100/100 or one. BM selection ratio 76/100 or 0.76. BM ratio 0.76 divided by WM ratio 1 = 0.76. Adverse impact on BM indicated. )
In M & A
immediate & short term objectives dominate.
labor relations strategies: collaboration advantages
implementing decisions can be easier
M&A Synergy Objectives w/significant "people integration" issues: bigger is better
improved market access
Synergy Objectives
improved market access (bigger is better)
Health & safety
improves organization function & decreases costs
Health & safety
improving this is simply ethical
the peter principle
in a hierarchy every employee tends to rise to his level of incompetence
Targeted hiring strategies
in group interviews observe how other people not answering are responding to person answering & if they are paying attention/supporting
Dual theory of HRM & business performance: outsourcing
in the long run there should be an employment enhancing rather than reducing effect
long-term incentives
incentives that motivate behaviors and performance that support company value and long-term organizational health. ie stock options
Dual theory of HRM & business performance: High involvement HR practices
include employee continuity, targeted hiring, use of teams & decentralization to get work done, variable pay, business information sharing with employees on a systematic basis, training & development, keeping status differentials to a minimum
M&A (Mergers & Acquisitions costs)
include legal costs, investment bank fees, etc
common ethical issues HR departments face
include privacy, staffing, safety, layoffs, downsizing, performance appraisal & labor practices
Employment law
includes Equal Employment Opportunity, Diversity & Affirmative Action
applicant assessment
includes accuracy, fit, ethics, legal compliance & positive stakeholder reactions
applicant assessment phases: evaluative assessment
includes assessment centers (candidates put through technique evaluations)
applicant assessment phases: evaluative assessment
includes cognitive & non-cognitive ability tests (physical requirements)
Methods of determining the correct candidate
includes combining scores: compensatory approach or multiple hurdle approach
employee training design considerations
includes consideration of tools, materials & personnel needed as well as appropriateness and logistics
applicant assessment: job fit
includes education, job-related competencies, job knowledge, previous experience & personality characteristics that apply to job tasks
applicant assessment: group fit
includes expertise relative to other group members, conflict management style, teamwork values, communication skills & personality related to working effectively with others
employee training program evaluation: Kirkpatrick's training eval model: 1. Reaction
includes feedback forms, participant behaviors, surveys
applicant assessment phases: evaluative assessment
includes interviews (both structured & unstructured), assessment of leadership or cognitive styles
applicant assessment phases: screening
includes job application checks: for applicant skills, education & work experience
socialization
includes orientation or on boarding & socialization
employee training program evaluation: Kirkpatrick's training eval model 4 results
includes performance appraisal & ROI analysis (Return on Investment)
applicant assessment: org fit
includes personal integrity, compassion, competitiveness, values & goals
safety culture
includes physical conditions, policies/regulations, positive/negative reinforcement, behaviors both entire facility & population
employee training program evaluation: Kirkpatrick's training eval model: 2 learning
includes pre- and post training tests/assessments, observations, simulations & interviews
Internal recruiting
includes succession management, talent inventory & internal job posting systems
merger & acquisitions: 3 forms of synergy value/financial reasons to merge
increased revenues, lower expenses & lower overall cost capital
hardship premiums
increased salary for living in an area with a lower quality of life, less safety, etc.
tax equalization payments
increased salary to make up for higher taxes that reduce take-home pay and decrease employee's purchasing power
job enrichment
increasing job complexity
job enlargement
increasing tasks/responsibilities
staffing ratios
indexing headcount with a business metric. ie manager to emp, rev to emp, cust to emp, store size to emp
benefits
indirect compensation that reward things such as continued employment, promote loyalty & increase employee quality of life
performance management is important because
individual contributions drives business results that accomplish the goals of the organization
Incentive plan types
individual, skill-based, team, organizational, specialized
3 types of unions
industrial, trade, and employee associations
HR
influences organizations performance
Upward reviews
info is gathered from subordinates on management performance
first impression bias
initial judgements influence later assessments
workers compensation
insurance replaces wages/med benefits for employees injured on the job in exchange for agreement of employee not to sue for negligence.
Due Diligence/M&A Tasks: HR
integration of payroll, benefits and other HR systems
unemployment insurance
intended to provide laid off employees with some income
motivation to transfer
intention and willingness to transfer any knowledge acquired in a training or development activity back to the work context
disparate treatment
intentional discrimination based on a person's protected characteristic
disparate treatment
intentional, more in your face (Think: I won't hire you because you're black)
labor relations strategies: collaboration advantages
interest-based bargaining is used to resolve dispute which focuses attention on the problem not the parties involved
compensation equity issues
internal, employee, external, comparable worth, wage rate compensation & other issues such as teams, executive, global
workflow analysis
investigates how work moves through an organization to identify changes to increase efficiency and better meet customers' needs
Affirmative action
is an extension of the regulations enacted by Title 7 of the Civil Rights Act
Dual theory of HRM & business performance: peripheral staffing
is both an employer & employee preference
some turnover
is good & some is bad
job analysis provides
job description, job tasks, task statements, person specs, KSAOs & competencies ID'd
4 strategies of job design
job enrichment, job enlargement, job rotation & cross training
essential criteria
job holder characteristics that are vital to job performance
desirable criteria
job holder characteristics that may enhance job success but are not essential to adequate job performance
applicant assessment phases: contingent assessment
job offer dependent upon results such as background checks, drug screens, etc
task needs
job or competency analysis/observation/performance appraisals/quality control analysis: sources for collecting _________ analysis information
recruitment message
job posting/ad
benchmark jobs
jobs that tend to exist across departments and across diverse organizations allowing them to be used as a basis for compensation comparisons
types of employee training learning objectives: cognitive
knowledge (ex. New skills/technology)
KSAOs
knowledge, skill, ability and other characteristics
Good employment practices
leadership & customer service main focus
Psychomotor
learning objectives that build a physical skill
Affective Learning Objectives
learning objectives that change an attitude, relationship or appreciation
public relations aspect of recruiting
leaving applicants with a positive feeling about the org even if they aren't hired & good applicant perceptions of the company
desired recruiting outcomes
leaving applicants with a positive feeling about the org even if they aren't hired.
applicant assessment: legal compliance
legally defensible hiring practices. Compares all applicants using the same fair, consistent & objective information predictive of job success
all employees belong to one or more
legally protected class (for example: race, gender)
indirect financial compensation
legally required benefits, retirement income, disability insurance, deferred pay, PTO
horns effect
letting one negative factor influence assessments of other areas of behavior or performance
halo effect
letting one positive factor influence assessments of other areas of behavior or performance
Dual theory of HRM & business performance: low involvement HR practice
limited employee continuity
human resource strategy
links the entire human resource function with the firm's business strategy
Why M&A fails: poorly managed integration
little planning & design resulting in poor implementation
Dual theory of HRM & business performance: low involvement HR practice
little/no business information sharing
Dual theory of HRM & business performance: low involvement HR practice
little/no training or development
Internal recruiting
locates current employees who would be a good fit in another position
internal recruiting source
locates talent currently working for the company that would be a good fit with another position
vision
long-term goals regarding what the organization wants to become and accomplish, describing its image of an ideal future
employee training program evaluation: Kirkpatrick's training eval model: 3 Behavior
long-term observations, sustainability of new behaviors
org benefits of improving workers safety
lower insurance costs; lower workers comp costs; improved employee moral, productivity & retention
labor relations strategies: collaboration disadvantages
lower level management may believe that upper management has "sold out" to the union
golden parachute
lucrative benefits given to executives in the event the company is taken over
HR internal planning
main goal is getting the right people in the right place at the right time
Phase 3 of M&A: Investigate & value the target
main objective is to identify various synergy values to be realized though M&A of the Target company
Dual theory of HRM & business performance: High involvement HR practices
mainly utilized for core staff
Dual theory of HRM & business performance: low involvement HR practices
mainly utilized for peripheral staff
ethics of recruitment
maintain applicant confidentiality
employee management relations
maintaining this is positive is important for both unionizied and nonunionized companies
orientation/on boarding
makes a difference, first employee impression, want it to be positive
legally protected characteristics
making employment decisions based on these is an unlawful or illegal employment practice
gains/influence of differentiated rewards
making the best use of scarce reward resources
Goal of workforce diversity:
making the org reflective of the population the org is striving to serve
functional stress
manageable levels of stress that generate positive emotions including satisfaction, excitement and enjoyment
Dual theory of HRM & business performance: core staff
managed as high value assets, companies hope to add value to, are invested in but viewed as offering a high rate of return in the future
labor relations strategies: avoidance
management engages in either unlawful or lawful efforts to prevent a union from forming or seeks the decertification of an existing union
lockout
management keeps employees away from the workplace and uses management staff or replacements to run the business
change management
managing the impact of crucial organization adaptations on the organization's people
talent inventory
manual or computerized records of employee's relevant characteristics, experiences and competencies
How unions impact HRM: training & development
many unions are involved in
tools for evaluating the worth of a job
market pricing, job evaluation methods, position analysis questionnaire
person-group fit
match between an individual and his or her workgroup and supervisor
passive job seeker
may be already employed or a homemaker, content where they are & doing what they are doing, not complacent however but might take a job if opportunity is right
procedure
may be part of a policy
passive job seeker
may have a job right now, somewhat content, looks for a job here & there, still ripe for picking if right opportunity comes along
social security
meant to lower unemployment for young by giving elderly income
efficiency-oriented recruiting metrics
measure how efficient is a firms hiring practices
efficiency-oriented recruiting metrics
measure number of applicants
behavioral observation scales
measure the frequency of desired behaviors
job knowledge tests
measure the knowledge (often tehnical) required by a job
efficiency-oriented recruiting metrics
measures avg cost per hire
employee training program evaluation: Kirkpatrick's training eval model: 2 learning
measures change in participants' knowledge, skills, behaviors or attitudes due to the training
efficiency-oriented recruiting metrics
measures hiring speed (time to fill positions)
efficiency-oriented recruiting metrics
measures number of hires
balanced scorecard
measures performance in the areas of: innovation, customer, internal & finance
employee training program evaluation: Kirkpatrick's training eval model 4 results
measures the business impact of the trainees' knowledge and behavior
employee training program evaluation: Kirkpatrick's training eval model: 3 Behavior
measures the extent to which what is learned in training is used on the job
Equal Employment Opportunity Commission
measures the practice/effects of employer hiring practices
applicant assessment: positive stakeholder needs
meeting both internal and external stakeholder needs
Rules, polices & procedures
members of the same family
horizontal mergers
merge of two firms across similar products/services
merger
merging of 2 companies where 1 new company continues to exist
Bad attitudes
metastases throughout your org no matter where they are located in the organization
dealing with root cause of stress
methods include change the situation, change the way we think about it or focus on reaction management such as working out or meditation
total compensations statement & benefits communication tools
methods of communicating benefits to employees
perform mgmt obstacles
mgment/org not communicating expectations to employees, lack of accountability, human biases & errors
fraudulent recruitment
misrepresenting the job or organization to a recruit
forecast external job market
monitor own experience bureau of labor stats
dealing with root cause of stress
more effective than focus on the emotion that results from stress
applicant assessment phases: evaluative assessment
more in-depth to identify potential successful hires among candidates
desired recruiting outcomes
more talent diversity
late or no performance appraisals
most serious employee complaint about performance appraisals
Dual theory of HRM & business performance: low involvement HR practice
most work individual
extrinsic motivation
motivation that comes from outside the individual, including performance bonuses
recruitment message
must be accurate & attractive (pleasing to the eye) - no misspellings etc.
generation of pay rate/salary structure
must be based on quantifiable evaluation data & justifiable reasons
social security
must work long enough & earn long enough to accrue quarters of coverage (usually 10 yrs or 40 quarters
normative employee commitment characteristics
my boss has invested too much time in training and mentoring me
affective employee commitment characteristics
my job is rewarding & I enjoy coming to work each day
continuance employee commitment characteristics
my salary & benefits get me a nice house in an nice area
efficiently-oriented or strategy-oriented metrics
need to be used together for optimal efficiency
applicant assessment: fit categories
needed for optimal compatibility with an org. Types include job, group & org
orientation/on boarding
needs to be formal, sequential and well thought out and provided in manageable, understandable and bitesize chunks
accommodating
neglecting one's own concerns to satisfy the concerns of the other person
M&A Synergy Objectives
negotiating power
desired recruiting outcomes
new hire performance/tenure & fit w/company
fixed socialization
new hires are informed in advance when their probationary status will end
disjunctive socialization
newcomers are left alone to develop their own interpretations of the organization and situations they observe
individual socialization
newcomers are socialized individually as in an apprenticeship
collective socialization
newcomers go through a common set of experiences as a group
social security
no age limit for social security, if you work while accepting social security you still have to pay into
workers compensation
no fault insurance, regardless of who is to blame for the accident
at-will employment
no legally predefined legal requirements in terms of notice periods for termination
Negotiable job offer elements: benefits
number, amount paid & timing; continuing education, professional memberships, product discounts, short-term loans
Job characteristics model
objective job characteristics including skill variety, task identity, task significance, autonomy and task feedback, lead to job satisfaction from people with a high growth need strength.
adverse impact
occurs when employment practice has a disproportionate effect on a protected group regardless of intent
minimizing workplace injuries & accidents
of interest to both employees & employers
horizontal mergers
often a way for a company to increase market share
6 HR functions
often blended when HR acts as an internal consultant
policies
often contain rules & procedures
Phase 3 of M&A: Investigate & value the target
often involves investment bankers who assist in analysis of the Target company
zero tolerance policy
one of the best protections against workplace violence
rewards should not be
one-size fits all. As effort, performance & results generated varies so should the reward
short-term incentives
one-time variable rewards used to motivate short-term employee behavior and performance (typically one year or less). ie bonus or profit sharing. to motivate attendance, cust serv, safety, production quality and quantity
succession management
ongoing process of systematically IDing, assessing & developing leadership to enhance performance
Montana
only state that does not have at-will employment
offshoring
opening a location in another country or outsourcing work to an existing company abroad
Typical types of responses to change: the critic
opposes the change
customary benefits
optional benefits often considered to be deal makers or deal breakers
direct financial compensation
or pay systems - base pay, wages, differential pay, commission, bonuses etc
effect of engaged employees
org benefits including increased productivity, gain in business opportunities & higher employee retention
effect of dissatisfied, disengaged & uncommitted employees
org costs including lower productivity, lost business opportunitiies & higher turnover
the performance of its people
org performance is only as good as
pay leader
organization with a compensation policy of giving employees greater rewards than competitors
types of HR needs assessments
organizational needs analysis, task needs analysis, person needs analysis
Knowledge
organized factual or procedural information that can be applied to perform a task
California Civil rights Initiative 1996
outlawed affirmative action in public employment, contracting, education and university admission
Benefit of a diverse workforce
output more reflective of the population org is trying to serve
contrast effect
over-or under-rating someone base on a comparison with someone else
Typical types of responses to change: the victim
panics at the thought of change
HR participates in phase 1 of mergers/acquisitions by
participating in the due diligence assessment, participating in planning for the combination of orgs, developing practices that support knowledge transfer & rapid learning
variable pay
pay outside of salary or customary benefits including profit sharing, stock options, stock grants, and bonuses
cost-of-living adjustments
pay tied to inflation indicators rather than merit
Job influence on direct finan compensation
pay variations across employees will likely exist
Housing allowance
payments to subsidize or cover housing and related costs
Life Insurance
pays a beneficiary or beneficiaries a sum of money after the death of an insured individual
fixed pay
pays employees a set amount regardless of performance
workers' compensation insurance
pays for medical costs and sometimes time off if an employee suffers a job-related sickness or accident, and survivor benefits in the case of an employee's death in exchange for relinquishing the employee's right to sue the employer for negligence
talent
people or employees that work for an organization
Like me bias: inner sanctum
people we trust the most/are most comfortable with
Organizational image
people's general impression of an organization based on both feelings and facts
Hiring considerations: fairness perceptions, distributive fairness
perceived fairness of the outcome
Hiring considerations: fairness perceptions, procedural fairness
perceived fairness of the policies & procedures used to determine the outcome
42.00%
percent of a company's operating budget that is devoted to employee costs
psychological contract
perceptions of mutual obligations by which both parties to the employment relationship interpret, act & respond to each other
Hiring considerations: fairness perceptions, interactional fairness
perceptions of the degree of respect & the quality of the interpersonal treatment received during the decision-making process
HRM areas
perf mgmt staffing health & safety training & development reward & benefits emp mgmt relations
Negotiable job offer elements: non-salary compensation
performance bonuses, profit-sharing & stock options
multi-source assessments
performance feedback from the employee's supervisor as well as other sources who are familiar with an employee's job performance
1 of the 6 components of HRM
performance management
balanced scorecard
performance measured in 4 key areas
HR must juggle
performance metrics, human resource planning activities & organizational action plans
status differentials
perks given to execs that aren't given to the bulk of employees such as private parking spaces, allocated offices, CEO pay difference large relative to employee pay
self-management strategies
person's effort to control his or her motivation, emotions and decision making to enhance the application of learned capabilities to the job
types of employee training learning objectives: psychomotor
physical skill ( how to assemble an item on an assembly line)
org charts
pictoral representation of the formal system of tasks, power & reporting relationships in an org
workplace violence highest risk indicators
places where money is exchanged with the public, working with volatile/unstable people, working alone/in isolated areas, providing services in care, working where alcohol is served & working late at night or in areas with high crime rate
What emp should do
planning laws & regulations
roles HR fulfill as internal consultants
planning strategy, forecasting labors supply & demand, developing action plans for labor gaps
mobility policies
policies that specify the rules by which people move between jobs within an organization
Why M&A fails
poor strategic fit, cultural/social differences, incomplete/inadequate due diligence, poor integration management, paying too much, overly optimistic,
strategic reasons for merging/acquisitions
positioning, gap filling, organizational competencies, broader market access, bargain purchase, diversification, short term grown, undervalued target
recruiting spillover
positive or negative unintended consequences of recruiting activities
Employee Handbooks
print of online materials that document the organization's HRM policies and procedures
affirmative action
proactive efforts to eliminate discrimination and its past effects
Affirmative action
proactive steps
Most effective orgs workforce violence programs are
proactive, multi-disciplinary programs that includes training for all personnel
internet data mining
proactively search the internet to locate semi-passive and passive job seekers with the characteristics and qualifications needed fore a position
strategic planning
process for making decisions about an organization's long-term goals and how they are to be achieved
performance management
process of maintaining or improving an employees job performance through the use of performance assessment tools, coaching, counseling & continuous feedback
job analysis
process used to ID & describe the important aspects of a job & then the worker characteristics needed to succeed
Self Regulation
processes enabling an individual to guide his/her goal-directed activities over time
optimal turnover
produces the highest long-term levels of productivity & business improvement
gainsharing
productivity gains shared with employees
workers compensation
programs administered by states
employee wellness programs
programs designed to increase company performance and employee performance/morale through improved employee health
vietnam era veterans readjustment assistance act of 1974
prohibits discrimination against and requires affirmative action for disabled veterans
Veterans Era Veterans Readjustment Assistance Act or Jobs for Vets Act
prohibits discrimination against and requires affirmative action for disabled vets as well as other categories of vets
rehabilitation act of 1973
prohibits discrimination against qualified individuals with a disability. EEOC
pregnancy discrimination act of 1978
prohibits discrimination for all employment related purposes on the basis of pregnancy, childbirth, or related medical conditions
americans with disabilities act of 1990
prohibits discrimination of a qualified individual with or perceieved as having a disability. EEOC
Americans with Disabilities Act
prohibits discrimination of qualified individuals with or perceived as having a disability, focus on fair treatment & reasonable accommodation
genetic information nondiscrimination act of 2008
prohibits employers from discriminating against individuals based on the results of genetic testing when hiring, firing, job placement or promotion decisions
title VII of the Civil Rights Act of 1964
prohibits employment discrimination based on race, color, religion, sex, or national origin. EEOC
Pregnancy discrimination act
prohibits employment discrimination on basis of pregnancy, childbirth or related medical conditions
national labor relations act of 1935
prohibits retaliation against employees seeking to unionize
Equal pay act
prohibits wage discrimination based on sex
equal pay act of 1963
prohibits wage discrimination on the basis of sex. EEOC
defined benefit retirement plans
promise participants a monthly benefit at retirement
company culture seeks to
promotes behaviors a company determine are the key to driving a companies success
gains/influence of differentiated rewards
promoting the performance improvement (or attrition) of low performers
gains/influence of differentiated rewards
promoting the retention of top performers
illegal
proposals to discriminate, union shop clauses in right to work states, closed shop clauses, handing goods produced by nonunion companies are ________ subjects.
resource dependence theory
proposition that organizational decisions are influenced by both internal and external agents who control critical resources
Fair discrimination
protected by law when the objective, merit based and ob related characteristics are used to determine employment related decision
age discrimination in employment act of 1967
protects people age 40 and older. EEOC
Age Discrimination Employment Act (ADEA)
protects people over 40+
Rehabilitation act
protects qualified people with a disability
recruiting best practices
provide attractive recruiting activities
recruiting best practices
provide clear, specific, accurate info
effective socialization of new employees
provide formal activities & materials in a predetermined order within a specified time frame
effective socialization of new employees
provide role models/mentors/guides
effective socialization of new employees
provide social support
ethics of recruitment
provide timely info & feedback to candidates & hiring managers. Let applicants know ASAP if they are not being selected
balanced scorecard
provides a concise, overall picture from the viewpoint of numerous shareholders
Consolidated Omnibus Budget Reconciliation Act
provides a continuation of group health coverage for employees and qualified beneficiaries that might otherwise be terminated when an employee experiences a qualifying event
why use applications
provides a standardized format for easier comparison to other applications
recruiting best practices
provides job & org info so candidates can assess fit
Social Security
provides retirement income to qualified workers and their spouses after working a certain number of hours
unemployment insurance
provides temporary income during periods of involuntary unemployment
staffing
provides the foundation for an organization's effectiveness & competitive advantage by bringing in the right talent
gains/influence of differentiated rewards
providing evidence that certain employees create more value than others
iceberg diagram
psychological contract
competing
pursuing one's own concerns at the the other person's expense
assessment center
puts candidates through a variety of simulations and assessments to evaluate their potential fit with and ability to do the job. ie inbasket exercises, grp disc, simulations, dec-make probs, oral presentation, written comm
KPIs
quantifiable measure of performance used to gauge progress towards strategic objectives or agreed upon standards of performance
dysfunctional stress
quantity & duration are factors
unstructured or informal interviews
questions can be asked that aren't standardized, more personable
University level affirmative actions
quotas illegal, striving to create a diverse uni environment/student body is not
pay grades job pricing system
range of possible pay for a group of jobs based on experience/skills/seniority (salary minimum, midpoint & maximum)
central tendency
rating all employees in the middle of the scale regardless of performance
4/5 rule violations
ratio of selection for a selected group divided by the highest selected group's ratio is less than 0.80.
RJP
realistic job preview
The organization's talent
really makes a difference in how the organization performs
strategic reasons for merging/acquisitions
reasons for mergers & acquisitions that tend to have the best outcomes
Due Diligence/M&A Tasks: HR
recommendation of new HR policies & programs
strategic recruiting metrics
recruiting metrics that track recruiting processes and outcomes that influence the organization's performance, competitive advantage or strategic execution
employee wellness programs benefits
reduce injuries, lower healthcare costs, reduce absenteeism, improve productivity, improve employee morale/loyalty, reduce workers comp/disability costs
applicant assessment phases: screening
reduce pool of applicants to good candidates (who meet the basic requirements)
extinction
reinforcer: removal of any positive or negative reinforcement following the occurrence of the behavior to be extinguished decreases the likelihood of that behavior
negative reinforcement
reinforcer: removing current or future unpleasant consequences to increase the likelihood that someone will repeat a behavior.
The integration of 2 companies
requires a high level of quality management
HR planning
requires constant recalibration
family and medical leave act of 1993
requires leave and job return for personal or family medical reasons and for the care of newborn or newly adopted children
Family Medical Leave Act (FMLA)
requires leave and job-return for personal or family medical reasons and for the care of newborns or newly adopted children
Family and Medical Leave Act of 1993
requires most employers to provide employees up to 12 weeks of unpaid leave to care for family members
Affirmative action
requires the taking of proactive steps to integrate workforces
interest arbitration
resolves disputes over the terms of a collective bargaining agreement currently being negotiated
recruitment message
resounds far beyond just the immediate applicants so it is very important & is a reflection upon the org
recruiting best practices
respond quickly to applications & inquiries
talent
responsible for executing the organizations strategy
workplace violence prevention
rests squarely on the shoulders of an employer
4/5 rule violations
result in Federal EEOC penalties
Due Diligence/M&A Tasks: HR
retention of key people and separation of redundants staff
1 of the 6 components of HRM
rewards & benefits
nonfinancial compensation
rewards and incentives given to employees that are not financial in nature including intrinsic rewards received from the job itself or from the work environment
nonfinancial compensation
rewards and incentives given to employees that aren't financial in nature
pay for performance programs
rewards employees based on some specific measure of their performance
skill-based pay
rewards for employees based on the range and depth of their knowledge and skills. effort and coop w/supervisor limited ability, partial proficiency, full competence
wellness incentives
rewards for engaging in healthy behavior or participating in wellness programs
recognition awards
rewards for specific achievements like tenure with the organization, helping a coworker or attendence
employee wellness programs incentives
rewards to employees for engaging in healthy behaviors or participating in a wellness program
Weingarten rights
rights that guarantee employees the right to union representation during investigatory interviews by the employer
OSHA standards
rules describing the methods employers must legally follow to protect their workers from hazards
Maslows hierarchy of needs
safety & security are basic & foundational human needs
job offer elements
salary, sign-on bonus, relocation exp, benefits, job specific elements
single-rate job pricing system
same rate paid to all employees performing the same job
flextime
scheduling option that lets employees decide when to work within parameters
front line recruiters
screen the most recruits
applicant assessment phases
screening, evaluative assessment & contingent assessment
resume databases
searchable database of prescreened resumes
organizational design
selecting and managing aspects of organizational structure to facilitate organizational goal accomplishment
social security
self employed and contract employees must pay both employee & employer portions
top drivers of engagement
senior management is sincerely interested in employee well being, org rep in the community, improved skills/capabilities over the past year, appropriate amount of decision-making authority to do a good job, org quickly resolves customer concerns
Kinesthetic:
sensory modality: learning by doing
Auditory
sensory modality: learning by hearing
Visual
sensory modality: learning by seeing
Tactile
sensory modality: learning by touching
voluntary turnover
separation by employee's choice for personal or private reasons
involuntary turnover
separation due to the org asking the employee to leave usually due to poor performance, misconduct, reorganization, etc
HR internal consulting
serves other organizational departments through this process
Griggs vs Duke Power
set precedent for "disparate impact" lawsuits involving racial discrimination
Fair Labor Standards Act (FLSA)
sets minimum wage, overtime standards, women & men paid equally for same job with some exceptions
open skills
sets of principles that can be applied in many different ways
culture of safety
shared attitudes, beliefs and practices that shape & eventually translate into employee behaviors - whether safe or not
M&A Synergy Objectives w/significant "people integration" issues: know more
shared know how
M&A Synergy Objectives
shared know how (know more)
M&A Synergy Objectives w/significant "people integration" issues: use same for more
shared tangible resources
M&A Synergy Objectives
shared tangible resources (use same for more)
open shop
shop that does not discriminate based on union membership in employing or keeping workers.
closed shop
shop that exclusively employs people who are already union members. Taft-Hartley Act made this illegal.
agency shop
shop that requires nonunion workers to pay a fee to the union for its services in negotiating their contracts
Job influence on direct finan compensation
should align with variations in job requirements
info shared with applicants
should be a predetermined decision and communicated from HR leadership to front line recruiters
Manager assessments
should be done on a continuous basis & actively done
recruitment message
should be informative, address a range of job/org characteristics & provide specific info about those characteristics
Mission statement
should include a vision of how you want to treat both your internal & external customers
group incentive plans
should motivate goal accomplishment, must align w/group objectives & org goals, gainsharing
ethics of recruitment
should not poach talent from competitors; however can be open to applicants from competitors who come to you
voluntary reduction efforts
should not seek to eliminate all turnover (as some is good) but to hit the sweet spot of optimal turnover
job pricing types
single-rate system, pay grades & broadbanding
written standards of ethical conduct, ethics training, providing a way for seeking ethics related advice or info, providing a way to report misconduct anonymously, disciplining employees, evaluating ethical behavior
six elements of a complete ethics program
cumulative trauma disorders
skeletal and muscle injuries that occu when the same muscles are used to preform tasks repetitively
hackman & oldman 5 chars on which jobs differ
skill variety task identity task significance autonomy task feedback
competency-based pay
skill-based pay for professional jobs
closed skills
skills performed similarly or exactly like they are taught in training
Historical issues that led to affirmative action
slavery, Jim crow laws
why communicate about benefits
so that benefits programs are valued, understood & best used by employees
applicant tracking system
software that helps manage the recruiting process
customary & optional benefits
some are not required by law but are highly regulated
turnover
some is anticipated & some unexpected
turnover
some is within employers control & other is not
workplace bullying
some see it as a workplace safety issue and others as a violation of personal rights
active job seeker
someone actively looking for information about job opportunities
implementation of new knowledge learned in training
sometimes requires the influence, assistance of a manager, coworker, or process champion to accomplish
steps in performance management process: Perf Mgmt standards:behavior
specific behaviors have to be translated into performance standards
codes of conduct
specifies expected and prohibited actions in the workplace and gives examples of appropriate behavior
1 of the 6 components of HRM
staffing
what emp can do
staffing training
6 components of HRM
staffing, health & safety, employee management relations, rewards & benefits, training & development, Performance management
How unions impact HRM
staffing, performance management, training & development, compensation & benefits
Ethics
standards of moral behaviors that define socially acceptable behaviors that are right
Negotiable job offer elements: job specific elements
start date, timing of first performance review and raise, job title/role/duties, location & work hours
Dual theory of HRM & business performance
started in 1990, last 15 years
wage rate compression
starting salaries for new hires exceed the salaries paid to experienced employees
bottom-up judgmental forecasting
starts with lower-level managers' estimates of the firm's future talent needs.
right to work laws
state laws that prohibit union shops in which all workers in a unionized workplace must join the union and pay dues
workers compensation
state program paid for by employers
Dual theory of HRM & business performance: low involvement HR practice
static pay
Dual theory of HRM & business performance: High involvement HR practice
status differentials to a minimum
continuance employee commitment
staying because you NEED to
normative employee commitment
staying because you OUGHT to
affective employee commitment
staying because you WANT to
continuance commitment
staying with an organization because of perceived high economic and/or social costs involved with leaving
Common human biases
stereotyping, prejudice, perception of personal loss & ignorance
workforce redeployment
strategic moving of employees within an org
avoidance strategy
strategy in which management engages in lawful or unlawful efforts to prevent a union from forming or seeks the decertification of an existing union
collaboration strategy
strategy that relies heavily on labor relations to pursue an interest-based approach to problem solving
compliance strategy
strategy that relies heavily on the application of labor law to enforce the rights and obligations created by statute and by contract
economic strikes
strike over disputes regarding wages or benefits
unfair labor practice strikes
strike protesting illegal employer activities
jurisdictional strikes
strikes affirming members' right to certain job assignments and protest the work assignments to another union or to unorganized employees
recognition strikes
strikes intended to force employers to recognize unions
formal socialization
structured socialization using specifically designed activities and materials awayfrom the work setting
job classification method
subjectively classifies jobs into an exiting hierarchy of grades and categories
ranking methos
subjectively compares jobs to each other based on their overall worth to the organization
applicant assessment: fit
successful job performance is dependent on 1 of the 3 types
arbitrary tests
such as IQ/literacy tests, used to indirectly discriminate against minorities (who often had much less education under the segregated education system)
person specification
summarizes the characteristics of someone able to perform the job
employer brands
summary of what an employer offers to employees
employee training program evaluation: Kirkpatrick's training eval model 4 results
supervisors can easily evaluate subordinates; business impact can be more difficult to assess due to greater numbers of factors influencing business units
Org chart: higher levels
supervisors: responsible for the activities/performance of the levels beneath them.
Disability insurance
supplements workers' compensation insurance to provide continued income in the event of an employee becoming disabled
Reasons people support affirmative action
support for minority groups in the US is still needed
gains/influence of differentiated rewards
supporting the business strategy
Compensation surveys
surveys of other organizations conducted to learn what they are paying for specific jobs or job classes
employer brand
symbolic picture of all info connected to company or product (includes logos etc associated with company)
brand
symbolic picture of all the information connected to a company or a product including its image
job worth: job eval methods
systematic process that uses expert judgment to assess appropriate salary
employee training program evaluation
systematically collect info necessary to make effective decisions about adopting, improving, evaluating & continuing an instructional activity or set of activities
training evaluation
systematically collecting the information necessary to make effective decisions about adopting, improving, valuing, and continuing an instructional activity or set of activities
Methods of determining the correct candidate: multiple hurdle approach
takes into account multiple methods of applicant evaluation (ex interview, written test & personality test)
hard bargaining
taking a strong position on an issue
strategic reasons for merging/acquisitions: positioning
taking advantage of future opportunities that can be exploited when 2 companies are combined
Dual theory of HRM & business performance: High involvement HR practice
targeted hiring
External recruiting
targets people outside the organization
employee stock ownership plans
tax-exempt, employer-established employee trusts that hold company stock for employees
labor relations strategies: collaboration
tends to be the preferred labor relations strategy
org termination best practices
terminate with reason and have documentation to back up your reason and to follow normal polices & procedures
at-will employment
termination can be done with no prior notice & the other party has no legal recourse
learning agility
the ability to learn from experiences and to apply that knowledge to new and different situations
Skill
the ability to use some sort of knowledge in performing a physical task; often refers to psychomotor activities
task aquaintance
the amount and type of work contact an evaluator has with the person being assessed
careers site
the area of an organization's website devoted to jobs and careers with the company
pay structure
the array of pay rates for different work or skills within a single organization
checklist method
the assessor uses a checklist of pre-scaled descriptions of behavior to evaluate the employee
essay appraisal method
the assessor writes a brief essay providing an assessment of the strengths, weaknesses and potential of the target employee
common law
the body of case by case court decisions that determine what is legal and what remedies are appropriate
case interview
the candidate is given a business situation, challenge or problem and asked to present a well thought out solution
total rewards
the combined intrinsic and extrinsic rewards of a job
aptitude-treatment interactino
the concept that some training strategies are more of less effective depending on a learner's particular abilities, personality traits and other characteristics
Typical types of responses to change
the critic, victim, bystander & navigator
interactional fairness
the degree of respect and the quality of the interpersonal treatment received during the decision-making process
task feedback
the degree to which carrying out the job's required activities results in the individual's obtaining direct and clear information about the effectiveness for his or her performance
division of labor
the degree to which employees specialize
task significance
the degree to which job performance is important and affect the lives and work of others
formalization
the degree to which organizational rules, procedures and communications are documented
sequential socialization
the degree to which socialization follows a specific sequence of steps
hierarchy
the degree to which some employees have formal authority over others
autonomy
the degree to which the job gives the worker freedom, discretion and independence is scheduling the work and determining how to do the work
Skill variety
the degree to which the job requires a variety of activities enabling the worker to use different skills and talents
task identity
the degree to which the job requires the worker to complete a whole and identifiable piece of work
dysfunctional turnover
the departure of effective performers the company would have like to retain
functional turnover
the departure of poor performers
common good standard
the ethical action shows respect and compassion for all others, especially the most vulnerable
fairness standard
the ethical action treats all people equally, or at least fairly, based on some defensible standard
org commitment
the extent to which an employee identifies w/the org & its goals and wants to stay
organizational commitment
the extent to which an employee identifies with the organization and its goals and wants to stay with the organization affective, normative, continuance
person-job fit
the fit between a person's abilities and the job's demands and the fit between a person's desires and motivations and the job's attributes and rewards
job pricing
the generation of salary structures and pay levels for each job based on the job evaluation data
protected class
the group protected by the law
centralized
the more centralized an org, the greater the concentration of power & decision making that exists at the higher level of the org. Little to no distribution of power/decision making authority.
workforce redeployment
the movement of employees to other parts of the company or to other jobs in the company in order to match the talents of the workforce with the orgs needs
workforce redeployment
the movement of employees to other parts of the company or to other jobs the company needs filled to match its workforce with its talent needs
labor relations strategies: collaboration disadvantages
the new skills needed by both sides require changes in attitudes toward and approaches in the other party
mission
the organization's basic purpose and the scope of its operations
organizational structure
the organization's formal system of task, power and reporting relationships. chars of: formalization, centralization, division of labor, span of control, hierarchy
human resource management
the organizational function responsible for attracting, hiring, developing, rewarding and retaining talent
distributive fairness
the perceived fairness of the outcomes received
procedural fairness
the perceived fairness of the policies and procedures used to determine the outcome
employee equity
the perceived fairness of the relative pay between employees performing similar jobs for the same organization
sourcing
the process of ID'ing qualified individuals & labor markets from which to recruit
selection
the process of gathering and evaluating the information used for deciding which applicants will be hired
Needs assessment
the process of identifying any gaps between what exists and what is needed in the future in terms of employee performance, competencies and behaviors. org, task, person analysis
staffing
the process of planning, acquiring, deploying and retaining employees that enables an organization to meet its talent needs and to execute its business strategy
pay grade (pay scale)
the range of possible pay for a group of jobs
forced distribution method
the rater distributes performance ratings into a pre-specified performance distribution
management by objectives
the rater evaluates the target employee against mutually set goals
pay mix
the relative emphasis give to different compensation components
stock options
the right of an employee to buy shares of the company's stock at a certain price (the exercise price) during some future period of time
voluntary turnover
the separation is due to the employee's choice
involuntary turnover
the separation is due to the organization asking the employee to leave
recruiting
the set of practices and decisions that affect either the number or types of individuals willing to apply for and accept job offers
safety culture
the shared safety attitudes, beliefs and practices that shape employees' safety behavior
steps in performance management process: Perf Mgmt standards
these goals & standards must be SMART: Specific, Measurable, Achievable, Realistic (also relevant, results-oriented & rewarding) & Timely
unlawful employment practices
these violate federal, state or local employment law such as when people bearing a legally protected characteristic are unfairly discriminated against.
How unions impact HRM: staffing
they negotiate job opportunities to be granted based on seniority
Diverse workforce benefit: employees understand & communicate well with customers when:
they tend to reflect those customers
rights standard
this ethical action is the one that best respects and protects the moral rights of everyone affected by the action
org costs: voluntary turnover
this type of turnover, when involving a low performing employee is seen as an opportunity to fill the position with a high performer
candidates
those who pass initial screening rounds
omission, remission, commission
three types of systematic errors that orgs make that undermine ethics efforts
Scales of power
tilted towards employer/org when determining working conditions, pay, promotion, training, etc
strategic compensation system goals
to attract & retain qualified employees
purpose of benefits
to attract & retain top employees
strategic compensation system goals
to be externally competitive, internally consistent & fair
types of crucial adaptations orgs must make
to changes in technology, input costs & competition
strategic compensation system goals
to foster employee engagement and productive work relationships
progressive discipline purpose
to give employees the opportunity to correct negative behaviors, reduce turn over and protect ROI (Return on investment)
Purposes of Strategies of job design
to improve & influence employee motivation
Reason to tie pay to performance
to improve productivity
Reason to tie pay to performance
to increase likelihood of achieving corporate goals
strategic compensation system goals
to motivate individual performance & employees' contribution to organizational goal achievement
Reason to tie pay to performance
to recognize & reward high performance
strategic compensation system goals
to reflect relative value of each job
centralization
to what degree are power & decision making authority concentrated at higher levels of the org rather than distributed
formalization
to what extent are org rules, procedures and communications written down
4/5 rule formula: within selected group
total applicants w/i selection group hired/total number of applicants within the selected group.
efficiency oriented recruiting metrics
track how efficiently a firm is hiring
strategy-oriented recruiting metrics
track recruiting process & outcomes that influence a firm's competitive advantage
strategy-oriented recruiting metrics
track recruiting process & outcomes that influence a firm's org performance
strategy-oriented recruiting metrics
track recruiting process & outcomes that influence a firm's org performance, competitive advantage & strategic execution
strategy-oriented recruiting metrics
track recruiting process & outcomes that influence a firm's strategic execution
skill inventories
tracks employees' competencies and work experiences in a searchable database
recruiting best practices
train recruiters to be good communicators
management's role in stress mgmt
train staff on problem focused coping strategies that deal directly with the root cause of stress
1 of the 6 components of HRM
training & development
Dual theory of HRM & business performance: High involvement HR practice
training & development
Orientation
training activities to help new hires fit in as organizational members
cross-training
training employees in more than one job or in multiple skills to enable them to do different jobs
recruiting best practices
treat candidates fairly & respectfully
divestiture socialization
tries to deny and strip away certain personal characteristics
labor relations strategies: collaboration advantages
trust can be strengthened
Like me bias: level 1 trust
trust level associated with people you're getting to know or are just getting acquainted with
compromising
trying to find some expedient, mutually acceptable middle ground solution which partially satisfies both parties
avoidable turnover
turnover that the employer could have prevented
unavoidable turnover
turnover that the employer could not have prevented
conglomerate
two firms in completely different industries merge (ex gas pipeline co merging with a computer company)
vertical merger
two firms merged along the value chain (ex. A manufacturer merging with a supplier
job sharing
two or more people split a single job
domestic partners
two people who are not married, but are in a same-sex or opposite-sex arrangement similar to marriage
Medicare
under social security. Part A: Hospitalization Part B: Medical insurance
2 + 2 = 5
underlying principle behind mergers & acquisitions
Due Diligence/M&A Tasks: HR
understand employment law issues & critical people issues (such as leadership, employee communications, talent retention & cultural alignment)
psychological contract
understood agreement between an employee & the employer
types of strikes
unfair labor practices economic recognition jurisdictional
UGESP
uniform guidelines on emp selection. selecting procs advises employee in legal compliance
boycott
union members refuse to use or buy the firm's products to exert economic pressure on management
strikes
union members refuse to work, halting production or services
labor relations strategies: collaboration disadvantages
union membership may not support the relationship and suspect union leaders of pursing their personal interests rather than the union member's interest
Employee associations
union of professional employees
How unions impact HRM: compensation & benefits
unionized employees tend to increase total compensation costs of the employer
Industrial Unions
unions composed primarily of semi-skilled employees in manufacturing industries
Trade Unions
unions composed primarily of skilled employees in a single trade
informal socialization
unstructured, on-the-job socialization done by coworkers
hostile environment harassment
unwanted verbal or physical conduct of a sexual nature creates a hostile, intimidating or otherwise offensive working environment
quid pro quo harassment
unwanted verbal or physical conduct of a sexual nature mad as a term or condition of employment or as a basis for employment and/or advancement decisions
sexual harassment
unwelcome sexual advances, requests for favors and other verbal or physical conduct of a sexual nature
Behaviorally anchored rating scales
use a set of behavioral statements relating to qualities important for performance
Targeted hiring strategies
use model employees in hiring process
Methods of determining the correct candidate
use more than one evaluation method & meaningfully combine scores for a more compensatory approach (multiple hurdle approach)
Dual theory of HRM & business performance: High involvement HR practice
use of teams & decentralization
broadbanding job pricing system
use of very wide pay grades & pay increase flexibility
ratio analysis
use past relationships to forecast how many emp needed for diff levels of bus activity
incentives or incentives pay
used to encourage employees to perform at higher levels
employer brand
used to manage internal & external perceptions of what it means to work there
point factor method
uses a set of compensable factors to determine a job's value. skill, resp, effort, working cond.
structured interview
uses consistent, job-related questions with predetermined scoring keys. behavioral or situational.
market pricing
uses external sources of information about how others are compensating a certain position to assign value to a company's similar job
job worth: market pricing
uses external sources to determine appropriate salary
behavioral interview
uses information about what the applicant has done in the past to predict future behavior
applicant attraction strategies
uses powerful tools such as employer image & employer brand
graphic rating scale
uses ratings of unsatisfactory, average, above average and outstanding to evaluation either work quality or personal traits
mediation
using a neutral third party to attempt to resolve the dispute through facilitation
progressive discipline
using increasingly severe measures when an employee fails to correct a deficiency after being given a reasonable opportunity to do so verbal, written, suspension w/o pay, discharge
trend analysis
using past employment patterns to predict a firm's future labor needs
broadbanding
using very wide pay grades to increase pay flexibility
conglomerate
usually a way to smooth out wide fluctuations in earnings & provide more consistent long-term growth
due diligence
usually performed in Phase 3 (Investigate & Value the Target) of the merger & acquisition process
psychological contract
usually seen from standpoint/feelings of employees & includes how the employee is treated by the employer and what the employee puts into the job
Ethical dilemma resolution approaches
utilitarian standard, rights standard, fairness standard, common good standard, virtue standard
Dual theory of HRM & business performance: High involvement HR practice
variable pay
Recruiting
varies by type, location, timing, purpose & tools
org costs: voluntary turnover
varies depending on the caliber of the employee lost.
Org influence on direct finan compensation
varying profitability & resources - varying pay
Unstructured interviews
varying questions are asked across interviews and there are usually no standards for evaluating answers
types of work place bullying
verbal abuse; threatening, humiliating or intimidating conduct; sabotage, unreasonable/menial work assignments, holding target of bullying to a different standard, ignoring, teasing, gossiping
M&A Synergy Objectives w/significant "people integration" issues: process we own
vertical integration
M&A Synergy Objectives
vertical integration (process we own)
targeted hiring
very careful employee selection
specific goals & feedback
very important because they tell employees what they should be trying to do and whether or not they are doing it.
structured or formal interviews
very methodical, interview that includes job related questions where scoring keys are predetermined, everyone asked the same questions
balanced scorecard
very popular assessment tool
unlawful employment practices
violations of federal, state or local employment laws
types of turnover
voluntary/involuntary, functional/dysfunctional, avoidable/unavoidable
Employee influence on direct finan compensation
wage differentials
mandatory
wages, overtime, seniority, grievance procedures, safety and work practices, procedures for layoff, recall, discharge and discipline are _________ subjects.
compensation
want to leverage in our org to make the most use of it to achieve org goals
observation
watching people working in similar jobs for other companies to evaluate their ptoential fit with your organization
when basic human needs are met
we then turn our attention to other needs
applicant assessment: accuracy
weeding out bad fits & ID'ing good ones
forward approach feedback
what do we want employee results to be in the future
steps in performance management process: Perf Mgmt standards:results
what does the org want their employees to produce, what outcomes we want
HRM influences performance thru
what emp should do what emp can do what emp will do
Gap
what we need minus what we have now
rule
what you are and are not allowed to do, most flexible form of regulations and subject to time & situation
global benefits
what's important to some countries is not as important to other countries; global benefits can vary widely by country
talent acquisition opportunity loss
when a great match is screened out by inept front line recruiters
secondary boycott
when a union encourages third parties such as customers and suppliers to stop doing business with a company. Taft-Hartley Act makes these illegal.
turnover
when an employee leaves an org for whatever reason
external equity
when an organization's employees believe that their pay is fair when compared to what other employers pay their employees who perform similar jobs
employee engagement
when employees are committed to, involved with, enthusiastic and passionate about their work
internal equity
when employees perceive their pay to be fair relative to the pay of other jobs in the organization
unfair discrimination
when employment decisions and actions are not job related, objective or merit-based
Unfair discrimination
when employment related decision/actions occur and are not linked to job based, objective or merit based content
pass the test of strict scrutiny
when examined, an affirmative action program must serve a compelling government interest & be narrowly tailored to meet that interest
HR
when formal policies don't exists, helps to create & reinforce organizational culture
employee management relations
when healthy this improves communication, aides in problem solving & boosts performance
when salary budges are tight
when hiring is competitive, providing better benefits can help make an employer competitive
labor gaps
when labor supply and demand don't exactly match
fair discrimination
when only objective, merit based and job related characteristics are used to determine employment related decisions
discrimination
when policies or practices have an adverse effect on a protected group
collective bargaining
when the employer and union negotiate in good faith on wages, benefits, work hours and other employment terms and conditions
most workplace violence incidents occur
when there is an unresolved conflict or when an employee or employee's spouse feels they've lost control of their lives
types of HR needs assessments: organizational needs analysis
where in the org development or improvement opportunities exist
types of HR needs assessments: task needs analysis
which jobs, competencies, abilities, behaviors, etc the training effort should focus on
codetermination
worker representation on the company's board of directors
job rotation
workers are moved through a variety of jobs to increase their interest and motivation
In the US this is 4 xs more common than sexual harassment
workplace bullying
job description
written descriptions of the duties and responsibilities of the job itself
job applications
written information about skills and education, job experiences and other job relevant information. screening method.
Hiring considerations: negotiating employment contracts, explicit
written or verbal
succession management plans
written policies that guide the succession management process
workplace violence prevention
zero tolerance policy
Like me bias: COMFY
2nd stage of relationships: come over to my front yard.
Trend analysis, ratio analysis, judgmental forecasting
3 Techniques used to forecast labor demand
types of employee training learning objectives
3 types: cognitive, affective & psychomotor
Social Security, Unemployment Insurance, Workers' Compensation, Family Medical Leave Act, COBRA
5 Mandatory Benefits
mergers & acquisitions process
5 phases: 1. Pre-acquisition review 2: search & screen targets 3. investigate & value the target 4. Acquire through negotiation 5. Post merger integration
Leading Economic Index, Consumer Confidence Index, Exchange Rate Trends, Interest Rate Forecasts, Additional sources such as GPD and business inventories
5 sources for evaluating general economic trends to forecast labor demand:
steps in performance management process: Perf Mgmt standards
AKA setting goals & standards
Like me bias: 2nd stage of relationships
Comes with time & relationship building. Would trust in your house or yard.
Grutter vs Bollinger
Court ruled Michigan lawschool admissions affirmative action policies were constitutional as it had been narrowly tailored in order to meet the approved goal of student body diversity
Gratz vs Bollinger
Court ruled Michigan undergrad admissions awarded extra points to people in racial minority groups was unconstitutional because it was too broad in meeting the approved goal of student body diversity
Management of a company's investment in it's people
Critical to organizations success
- Human resources - Physical resources - Business continuity
Disaster plans should cover:
4/5 rule: comparing selected group to highest selection group
Divide the selection rate for each group by the selection rate for the group with the highest selection rate. If the ratio is less than .80 there is a 4/5s rule violation
Griggs vs Duke Power
Duke required HS diploma or IQ tests in order for employees to transfer to different departments even though they had no bearing on ability to perform the job
- Conduct a Needs Assessment - Develop Learning Objectives - Design the Training Program - Implement the Training - Evaluate the Training
Five Steps to Effective Training
collaborating, accommodating, competing, compromising, avoiding
Five conflict management strategies
visual, auditory, tactile, kinesthetic
Four different sensory modalities
- Separate people from the problem - Focus on interests, not positions - Create options for mutual gain - Insist on objective criteria
Four fundamental principles of integrative negotiation:
positive reinforcement, negative reinforcement, punishment, extincition
Four type of reinforcers
Targeted hiring strategies
Hire for attitude, train for skill, look for leadership capabilities in every potential employees
sourcing
ID qual indv & labor markets to recruit from
applicant assessment
ID'ing applicants who best met staffing goals including high job performance & enhanced business strategy execution
Cultural fit
Identified as the most complex M&A HR issue
Effective training: conduct needs assessment
Identifying gaps in employee performance, competencies & behaviors
50%
If at least ______ of workers sign a union authorization card, the NRLB requires the employer to recognize the union without a secret ballot election
Like me bias: diversity disappears
If we keep giving good opportunities, promotions, stretch assignments to people in the COMFY zone or inner sanctum of our work life
Why M&A fails: incomplete/inadequate due diligence
If you don't let the "watchdog" do it's job you will have serious problems
Phase 3 of M&A: Investigate & value the target
Includes a valuation of the acquiring company + value of the target company + value of synergies per phase - M& A costs for a total value of the combined company
Critical Incidents Technique
Job Analysis Method: Job experts describe episodes of good, average and poor performance. circumstances, action, consequences
Task Inventory Approach
Job Analysis Method: Job experts generate a list of 50-200 tasks that are then grouped in categories reflecting major work functions.
Structured Interview Technique
Job Analysis Method: Job experts supply information about the job and workers that distinguishes superior performance.
Structured Questionnaires
Job Analysis Method: Written questionnaires that assess information about worker inputs, work output, job context and job characteristics.
Job Elements Analysis Method
Job Analysis Method: a group of job experts list and rate the important worker characteristics that influence success in the job, including knowledge, skills, abilities and personal characterstics
nonfinancial compensation
Job perks such as free work facility use, awards for achievement, parking spaces (in non cash format)
overall organizational strategic plan
Just like any department, HR is a product of & aligned with this
Knowledge, Skills, Abilities, Other Characterstics
KSAO. job related worker characteristics
KPIs
Key performance indicators
Reaction, Learning, Behavior, Results
Kirkpatrick's four levels of training and learning evaluation
Cognitive Learning Objectives
Learning objectives that increase some type of knowledge
HR internal consultant considerations: If talent surpluses are expected
Long-term: Early retirement incentives, layoffs, do not fill open positions
HR internal consultant considerations: If talent shortages are expected
Long-term: reduce labor demand, business process outsourcing
Strategic risk, Operational risk, Financial risk and Compliance risk
Managing human resources strategically helps organizations manage four types of risk:
Phase 5: Post Merger Integration
Most difficult phase w/i the M&A process.
applicant assessment: accuracy
Most important step in hiring
Kirkpatrick's training evaluation model
Most well known and frequently used model for assessing training effectiveness. reaction, learning, behavior, results
Creativity
Multiple perspectives
L-I-C-C-M-A-G-IO-R - Link goals to org mission & strategy - Identify subgoals for each unit/department/group/individual - Communication goals & expectations - Create work processes and assign resources - Measure progress - Assess individual, group, unit performance - Give feedback - Identify & Overcome obstacles - Reward Goal Achievement
Nine steps of the performance management process
strategically leveraging the right talent
No organization will maximize its effectiveness without
Formalized/highly centralized org
Org type best for people who like predictability, rules and less autonomy
2 major responsibilities of HRM
People related issues & employment related legal compliance side
person needs
Performance appraisals/customer surveys/individual assessments/performance issues/skill inventories: sources for collecting _______ analysis information
- Organization as a whole - Organization subunits - Work teams or groups - Work Processes - Projects
Performance managers focus on these five things:
Due Diligence/M&A Tasks: HR
Plan due diligence for Org
Title 7 of Civil Rights Act
Prohibits discrimination based on race, color, religion, sex or national origin
Genetic Information Nondiscrimination Act
Prohibits employers from discriminating against individuals based on the results of genetic testing when making hiring, firing, job placement or promotion decision
National Labor Relations Act 1935
Prohibits retaliation against employees seeking to unionize
strategy-oriented recruiting metrics
Qualitative in measure
efficiency-oriented recruiting metrics
Quantitiave in measure
workplace bullying
REPEATED mistreatment of another employee: habit/history
organizational needs
Strategic Plans/Performance appraisals/customer surveys/employee surveys/restructuring plans/efficiency measures: sources for collecting ______________ analysis information
Regents of the University of California vs Bakke in 1973
Supreme Court ruled in Bakke's favor, racial quotas not allowed since they did not allow equal opportunity
Regents of the University of California vs Bakke in 1973
Supreme court also ruled affirmative action programs were allowed if they served a compelling government interest & were narrowly tailored to meet that interest
Regents of the University of California vs Bakke in 1973
Supreme court also ruled ensuring diversity of university admissions was a compelling government interest
Regents of the University of California vs Bakke in 1973
Supreme court ruled govn't should not undertake the idea of righting historical wrongs as who was to decide which wrongs to be righted and when they had been righted was too open to interpretation
Griggs vs Duke Power
Supreme court ruling forbids employers from using arbitrary tests such as IQ literacy tests to evaluate employee potential rather than ability to perform the job/job skills
M&A Synergy Objectives
Tax benefits
R - R - V - O - C - Receiving - Responding - Valuing - Organization - Characterization by value
Taxonomy of Affective Learning Objectives
R - U - A - A- E - C - Remembering - Understanding - Applying - Analyzing - Evaluating - Creating
Taxonomy of Cognitive Learning Objectives
O - I - P - A - O - Observing - Imitating - Practicing - Adapting - Originating
Taxonomy of Psychomotor Learning Objectives
Extraversion, conscientiousness, emotional stability, agreeableness, openness to experience
The Big Five Personality factors are:
formalized
The more formalized an org, the stricter it is. The more rules, procedures & communications are written down'
Like me bias: why talk about it
The more we talk about it and how it might be influencing decision making, the more we take it from unconscious into conscious
Why M&A fails: overly optimistic
This type of forecast/conclusion about a critical issue results when a much too positive projection is made about a Target company thus resulting in bad decisions w/I the M&A process
Organizational analysis, task analysis and person analysis
Three levels of needs assessments
single rate system, pay grades and broadbanding
Three most common job pricing systems
Not communicating a performance plan, a lack of accountability and human biases and errors
Three most common obstacles to effective performance management
Anticipatory, Encounter, Settling In
Three phases of Socialization
compliance strategy, collaboration strategy, avoidance strategy
Three primary labor relations strategies
Cognitive, Affective, Pschomotor
Three types of learning objectives
Performance Appraisal legal considerations
Title 7, must be job related, objectivity vs subjectivity, need evidence that supports appraisal
superior value for their money
To have a competitive advantage, a company must ultimately be able to give customers ____________.
- Recognize and reward high performers - Increase the likelihood of achieving corporate goals - Improve productivity - Move away from an entitlement culture
Top four reasons organizations give for tying pay to performance ar
participant reactions, learning assessments, training transfer back to job
Training evaluation includes:
equal employment opportunity
a firm's employment practices,must be designed and used in a manner that treats employees and applicants consistently regardless of their protected characteristics such as sex and race
Lifelong learning
a formal commitment to ensuring that employees have and develop the skills they need to be effective in their jobs today and in the future
improshare
a gainsharing plan based on a mathematical formula that compares a performance baseline with actual productivity during a given period with the goal of reducing production time
labor union
a group of at least two employees who band together as a single entity to address pay, hours, and working conditions with their employer
job enrichment
a job design approach that increases a job's complexity to give workers greater responsibility and opportunities to feel a sense of achievement
contingent assessment methods
a job offer is made contingent on passing the assessment. ie ref checks, med & drug tests, background checks
omission errors
a lack of written rules
discovery learning
a learning preference for exploration during learning. Prefer subjective assessments, interactional activities, informational methods and active-reflective activities
observational learning
a learning preference for external stimuli such as demonstrations and diagrams to help facilitate learning. tend to prefer information and active-reflective activities
structured learning
a learning preference for processing strategies such as taking notes, writing down task steps and so forth. related to preferences for subjective assessments.
group learning
a learning preference to work with others while learning. Related to preferences for action and interactional learning.
experiential learning
a learning preference with a desire for hands-on approach to instruction. tend to prefer active learning activities
collective bargaining agreement
a legal written contract between organized labor and an employer that is enforceable through the negotiated grievance and arbitration procedure
socialization
a long-term process of planned and unplanned, formal and informal activities and experiences through which an individual acquires the attitudes, behaviors and knowledge needed to successfully participate as an organizational member
applicant assessment: job fit
a marriage between the job seekers needs & motivations and the opportunity's attributes & rewards
cut score
a minimum assessment score that must be met or exceeded to advance to the next assessment phase or to be eligible to receive a job offer
Other characteristics
a miscellaneous category for worker characteristics that are not knowledge, skills or abilities including personality traits, values and work styles
business process reengineering
a more radical rethinking and redesign of business processes to achieve large improvements in speed, service, cost or quality
balanced scorecard
a performance measurement system that translates the organization's strategy into financial, business process, learning and growth and customer outcomes. sequential.
downsizing
a permanent reduction of multiple employees intended to improve the efficiency or effectiveness of the firm
job fairs
a place where multiple employers and recruits meet to discuss employment opportunities
Hay Group Guide Chart - Profile Method
a point-factor system is used to produce both a profile and a point score for each position. know how problem solving accountability working conditions
affective commitment
a positive emotional attachment to the organization and strong identification with its values and goals
negotiation
a process in which two or more parties make offers, counteroffers and concessions in order to reach an agreement
gainsharing
a program in which the firm shares the value of productivity gains with employees
workplace bullying
a repeated mistreatment of another employee through verbal abuse; conduct that is threatening, humiliating or intimidating; or sabotage that interferes with the other person's work
global mindset
a set of individual attributes that enable you to influence individuals, groups and organizations from diverse socio/cultural/institutional systems
action plans
a strategy for proactively addressing an expected talent shortage or surplus
Position Analysis Questionnaire
a structured job evaluation questionnaire that is statistically analyzed to calculate pay rates based on how the labor market is valuing worker characteristics. a copyrighted, standardized, structured job analysis questionnaire. 6 sections covering 187 job elements.
talent philosophy
a system of beliefs about how an organization's employees should be treated
sensory modality
a system that interacts with the environment through one of the basic senses. visual, auditory, tactile, kinetic.
job evaluation
a systematic process that uses expert judgement to assess differences in value between jobs
job analysis
a systematic process used to identify and describe the important aspects of a job and the characteristics a worker needs to perform the job well. need to be reliable and valid.
performance improvement plan
a tool to monitor and measure an employee's deficient work products, processes and/or behaviors to improve performance or modify behavior. F acts to define prob O bj to help emp resolve S olutions to help emp reach obj A ctions to take if not corrected + overall efforts to help emp succeed
workers' compensation
a type of insurance that replaces wages and medical benefits for employees injured on the job in exchange for relinquishing the employee's right to sue the employer for negligence
simulation
a type of work sample that gives candidates an actual job task to perform or simulates critical events that might occur to assess how well a candidate handles them
acquisition
acquisition of assets by one company from another company
Railway Labor Act
act that governs employment relations for airlines and railroads
Labor Management Reporting and Disclosure Act of 1959 (Landrum-Griffin Act)
act that outlined a Bill of Rights for union members and sets up procedures for union elections, discipline and financial reporting
Types of job seekers
active, semi-passive & passive
Active job seeker
actively looking for information about job opportunities
job enlargement
adding more tasks at the same level of responsibility and skill related to an employee's current position
unemployment insurance
administered by individual states, funded by employers
Organizations influence ethical behavior by
adopting codes of conduct or codes of ethics
labor relations strategies
adopting this strategy and labor relations strategic plan helps management & labor stay focused on their individual & joint goals
Affirmative action
advanced by President Johnson in 1965 by Executive Order 1246
HR internal consulting function
advising a department on how to staff for a project
the peter principle
advocates refusing promotion & staying where you're happiest, most competent and productive
modes of employee commitment to an org
affective, continuance & normative commitment
workplace bullying
affects all countries, workers, industries
California Civil rights Initiative 1996
after passage, graduation rates among African Americans in some California universities went up but enrollment of African Americans at many UC schools declined
Age 65
age all individuals become eligible for Medicare coverage - whether retired or not
gains/influence of differentiated rewards
aligning pay with performance & org values
human resource planning
aligning the organization's human resources to effectively and efficiently accomplish the organization's strategic goals
Most Americans agree
all Americans should have an equal shot at success
leniency error
all employees are given high ratings regardless of performance
M&A Synergy Objectives w/significant "people integration" issues
all except for tax benefits, financial engineering & Negotiating power
total rewards
all of the compensation & benefits given to an employee
total rewards
all of the financial & nonfinancial rewards given to an employee by the employer
labor market
all of the potential employees located within a geographic area from which the organization might be able to hire
written succession plans
all orgs should have these to guide succession processes
indirect financial compensation
all the tangible and financially valued rewards that are not included in direct compensation including free meals, vacation time and health insurance
indirect financial compensation
all the tangible and financially valued rewards that are not included in direct compensation, including free meals, vacation time and health insurance
applicants
all who apply to a job
union shops
all workers in a unionized workplace are forced to join the union and pay dues
recency effect
allowing recent events and performance to have a disproportionately large influence on the rating
telecommuting
allows employees to work from home and link to the company's offices via computer.
disparate impact
also called adverse impact
performance management
also called assessment, review, evaluation, feedback or appraisal
4/5 rule
also know as the 80% rule
California Civil rights Initiative 1996
also known as Proposition 209
racial quotas
also known as set-asides
National Labor Relations Act of 1947 (Taft-Hartley Act)
amended the Wagner Act to clarify what are considered unfair labor practices by unions and employees
critical incident appraisal method
an assessor discusses specific examples of the target employee's positive and negative behaviors with the employee
decertification election
an election to determine if a majority of employees want to no longer be represented by a union
at-will employment
an employee has the right to terminate their own employment at any time for any reason or no reason at all.
presenteeism
an employee physically comes to work but does not function at his or her full potential
errors of commission
an employee receives an undeserved reward
reasonable accommodation
an employer is required to take reasonable steps to accomodate a disability unless it would cause the employer undue hardship
flexible spending account
an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pretax basis
adverse impact
an employment practice has a disproportionate effect on a protected group regardless of its intent
employment at will
an employment relationship which either party can legally terminate at any time for just cause, no cause, or evan a cause that is morally wrong as long as it is not illegal
if award is not deserved and given
an error of commission is committed
if award is deserved and not given
an error of omission is committed
arbitration
an impartial third party acts as both judge and jury in imposing a binding decision on both negotiating parties
search firms
an independent company that specializes in the recruitment of particular types of talent
accountability
an individual is expected to provide a regular accounting to a superior about the results of what she or he is doing and will be held responsible for the outcome
independent contractor
an individual or business that provides services to another individual or business that controls or directs only the result of the work
Online job boards
an internet site that helps job seekers and employers find one another
job task
an observable unit of work with a beginning and an end
continuous performance appraisal
an ongoing performance appraisal process that involves the employee in evaluating his or her performance and setting performance goals and provides continuous coaching and feedback
succession management
an ongoing process of systematically identifying, assessing and developing organizational leadership to enhance performance
employer image
an organization's reputation as an employer
dysfunctional stress
an overload of stress resulting from a situation of under- or over-arousal continuing for too long
Hiring considerations: negotiating employment contracts, implicit
an understanding that is not part of a written or verbal contract
implicit employment contract
an understanding that is not part of a written or verbal contract
Errors in performance/appraisal: halo/horn effect
angelic in one area but gets halo across all; does poorly in one area but rated low in all areas
unemployment insurance
another depression era program set up under the social security act
pay systems
another name for financial compensation
workplace violence
any act of threat of physical violence, harassment, intimidation or other threatening disruptive behavior that occurs at the workplace
workplace violence
any act or threat of physical violence, harassment or intimidation or other threatening disruptive behavior that occurs at the workplace
compensable factor
any characteristic used to provide a basis for judging a job's value
Diversity
any dimension that differentiates 1 person from another
Employee Wellness Programs
any initiative designed to increase company performance or employee performance or morale through improved employee health
reinforcers
anything that makes a behavior more likely to happen again
Affirmative action laws
applicable to those receiving federal monies
Errors in performance/appraisal: leniency
appraises too leniently; does not give low scores even when accurate
Errors in performance/appraisal: strictness
appraises too strictly; often does not give high scores when deserved
Dual theory of HRM & business performance: peripheral staff
are hired primarily to keep payroll/labor costs low (labor expense control)
Total rewards
are more important than salary in evaluating the value of an employment opportunity
most affirmative action cases
are not decided favorably to this concept as they usually do not pass the test of strict scrutiny
unethical & illegal
are not the same. Something can be legal but unethical.
mergers & acquisitions
are sometimes the only means for a business to survive
mergers & acquisitions
are strategic component for generating long-term growth
exit inteviews
asking separated employees why they left to acquire information that can be used to improve conditions for current employees
situational interviews
asks how the candidate might react to hypothetical situations
integrity tests
assess attitudes and experiences related to reliability, trustworthiness, honesty and moral character
background checks
assess factors including personal and credit characteristics, character, lifestyle, criminal history and reputation. contingent method.
cognitive ability test
assess general mental abilities including reasoning, logic and perceptual abilities. evaluative method.
psychomotor tests
assess strength, physical dexterity and coordination
sensory tests
assess visual, auditory and speech perception
Due Diligence/M&A Tasks: HR
assessment of critical people & deployment of appropriate resources in the new company
Dual theory of HRM & business performance: reasons why employees choose to be peripheral rather than core
assignment flexibility, schedule flexibility, variety, preference for temp vs permanent, preference for part time work
semi-passive job seeker
at least somewhat interested in finding a new job but who inconsistently looks for one
labor relations strategies: collaboration disadvantages
change can take longer because interest-based bargaining can take longer than traditional bargaining
bona fide occupational qualification
characteristic that is essential to the successful performance of a relevant job function
codes of conduct/ethics
clarify what is or isn't acceptable behavior at work
cost of living allowances
clauses in union contacts that automatically increase wages base on the U.S. Bureau of Labor Statistics' cost of living index
union models
closed shop agency shop open shop
M&A Synergy Objectives w/significant "people integration" issues: new is better
combined business creation
M&A Synergy Objectives
combined business creation (new is better)
Customary benefits
commonly provided benefits that are viewed as an entitlement by employees insurance, retirement plans
internal job posting systems
communicate information about internal job openings to employees
total compensation statement
communicating total compensation in detail through a written summary of employee direct and indirect compensation
Due Diligence/M&A Tasks: HR
communication strategy development & implementation
acquiring company
company doing the acquiring or company doing the purchasing
mergers & acquisitions: target
company to be acquired
performance rating methods
compares employee performance to a set of standards to identify a number or letter rating that represents the employee's performance level. essay appr, critical incident, graphic, behavior anchored, behavior obs scale, forced choice, checklist, work standards, mgmt by obj
performance ranking methods
compares employees to each other in some way. forced ranking, paired comparison, forced distribution.
race norming
comparing an applicant's scores only to members of his or her own racial subgroup and setting separate passing or cutoff scores for each subgroup
work standards
comparing an employee's performance to output targets that reflect different levels of performance
gap analysis
comparing labor supply and demand forecasts to identify future talent needs
what emp will do
compensation perf mgmt
Direct financial compensation
compensation received in the form of salary, wages, commissions, stock options or bonuses
direct financial compensation
compensation received in the form of salary, wages, commissions, stock options or bonuses
top drivers of employee attraction
competitive base pay, competitive health care benefits, vacation/paid time off, convenient work location, flexible schedule
Employee handbook/personnel manual
compilation of pre-made decisions, step-by-step how tos & clarification of how a company does things
labor relations strategies
compliance collaboration avoidance
labor relations strategies
compliance, collaboration & avoidance strategies
strategic compensation system goals
comply with all state and federal laws & regulations
centralized
concentrate power and decision making authority at higher levels of the organization
job analysis
conduit for the production of a job description, person specs, the KSAOs & other characteristics
M&A Synergy Objectives w/significant "people integration" issues: together we conquer
coordinated strategies
M&A Synergy Objectives
coordinated strategies (together we conquer)
Dual theory of HRM & business performance: companies should include both
core employees managed by high involvement HR practices AND peripheral employees managed by low involvement HR practices for maximum effectiveness
works councils
council of elected workers that participate in shared workplace governance
zero tolerance policy
covers anyone who may come into contact with an employee - internal and external
rights arbitration
covers disputes over the interpretation of an existing contract and is often used in settling grievances
recruiting best practices
create positive org image
Occupational Safety and Health Administration
created by the Occupational Safety and health Act to set and enforce protective workplace safety and health standards
learning objectives
created to identify desired learning outcomes. types: cognitive, affective, and psychomotor
workers compensation
created to protect employees if injured from work related illness/injury
Benefit of creativity
creates an atmosphere that encourages input & synergy of ideas
positive culture
creates an environment in which employees want to do their best
outsourcing
creates employment in other countries
Dual theory of HRM & business performance: Proportion of employees managed via high involvement vs low involvement HR practices
crucial balance companies must find in order to maximize return on labor investments
global benefits
culture influences benefits that are considered mandatory, customary or optional
social security
currently covers worker and family
Feedback & rewards
cyclical, continual, ideal performance management approach
talent inventories
databases summarizing each employee's competencies, qualifications, languages spoken, and anything else that can help the company understand how the employee can contribute
problem-focused coping strategies
deal directly with the cause of stress
labor relations strategies: collaboration advantages
decision making quality can be improved
business strategy
defines how a firm will compete in its marketplace
dysfunctional turnovers
departure of effective turnovers - successful employees the org would rather retain
functional turnover
departure of poor performers that could benefit org
social security
depression era recovery program, 1st major federally required benefit program
intrinsic motivation
derived from an interest in or enjoyment from doing a task
performance plan
describes desired goals and results, how results will be measured and weighted and standards will be used to evaluate results
affirmative action plan
describes in detail the actions to be taken, procedures to be followed and standards to be met when establishing an affirmative action program
One way to motivate employees
design jobs with employee motivation in mind even routinely reevaluating/redesigning roles
org incentive plans
designed to align employee goals w/org goals, rewards employees for org level performence, includes ESOP
unemployment insurance
designed to provide employees with some income when separated from job through no fault of their own
ergonomics
designing the work environment to reduce the physical and psychological demands placed on employees
optimal turnover
desirable turnover
due diligence
detailed review of a target companies operations, strategies, financials and other aspects to determine a good fit with the acquiring company.
procedure
detailed steps to perform an activity within a process (ex a step in a set of directions. Turn L on Elm St)
4/5 rule
determine selection rate of each protected group that makes up 2% of the entire employment group, ID the group with the highest selection rate, divide the selection rate for each group by the selection rate of the group with the highest selection rate (ex. 100 of 100 white male applicants at a company are hired yet only 76 of 100 black male applicants are hired. WM selection ratio 100/100 or one. BM selection ratio 76/100 or 0.76. BM ratio 0.76 divided by WM ratio 1 = 0.76. Adverse impact on BM indicated. )
job worth
determined objectively not subjectively through very specific mechanisms
Ways HR influences organizational culture
determining type of person hired/fired, determining training topics, developing goals/expectations, determining when people are held accountable, determining who's rewarded.
Due Diligence/M&A Tasks: HR
develop acquisition guidelines
Employment laws & regs
developed over several decades
organizational chart
diagram illustrating the chain of command and reporting relationships in a company
Title 7 of Civil Rights Act
did not eliminate employer racism in and of itself
wage differentials
differences in wage between various workers, groups of workers, or workers within a career field
Reasons M&A Phase 5: Post Merger Integration is the most difficult
different cultures, different IT systems, different strategies, etc
Diversity can include people of
different cultures, disabilities, sexual orientation, religion, socio-economic status, gender, age, race/ethnicity
job rotation
different jobs at different times
reward differnentiation
differentiating rewards based on performance rather than giving all employees the same reward
External forces influence on direct finan compensation
direct compensation influence that includes labor market trends, location of job/company, economy, time of hire, size of candidate pool
Employee influence on direct finan compensation
direct compensation influence that includes merit (pay for performance) & seniority (how long there)
Org influence on direct finan compensation
direct compensation influence that includes resource availability, profitability, budget restrictions
Job influence on direct finan compensation
direct compensation influence that includes skill, effort, responsibilities, working conditions, etc.
types of compensation
direct financial compensation, indirect financial compensation, nonfinancial compensation
performance management
directs and motivates employees, work groups and business units to accomplish organizational goals by linking past performance with future needs, setting specific goals for future behavior and performance, providing feedback and identifying and removing performance obstacles
protected classification status
disclosure at the time of hire is strictly voluntary
organizational citizenship behaviors
discretionary behaviors that benefit the organization but that are not formally rewarded or required
performance management allows an opportunity for employee & managers to
discuss & achieve development goals
2 types of discrimination
disparate treatment & adverse impact
Org charge: Division of labor
do employees specialize or generalize?
competitive advantage
doing something differently from the competition that leads to outperformance and success
job worth: market pricing
done through benchmarking certain jobs or compensation surveys
procedure
drive actions
The "watchdog" within M&A process
due diligence
cross-training
each employee is trained to perform multiple jobs
contest socialization
each socialization stage is a contest in which one builds a performance record
tournament socialization
each stage of socialization is an elimination round and a new hire is out of the organization if he or she fails to pass
steps in performance management process
each step builds upon other
employee training program evaluation: Kirkpatrick's training eval model: 2 learning
easier for more quantifiable and observable characteristics
workplace bullying
effects employers through higher workers comp costs, higher disability insurance rates, reputation suffers
recruiting metrics
efficiently-oriented or strategy-oriented
Dual theory of HRM & business performance: About 1/3 of US workforce
employed in peripheral rather than core context
psychological contract
employee commitments made to employers when employees are confident employers will reciprocate & fulfill their end of the bargain although no formal agreement exits
Dual theory of HRM & business performance: High involvement HR practice
employee continuatity
1 of the 6 components of HRM
employee management relations
Danger of job hyper efficiency
employee monotony & boredom
ESOP
employee stock ownership plans
forced ranking method
employees are ranked in order of best to worst performance
dangers of information vacuum
employees assume the worst
at-will employment
employees can not be terminated for discriminatory reasons however
variable socialization
employees do not know when to expect to pass to a different status level and the timeline may be different across employees
multi-crafting
employees gain proficiency in two or more trades
card check
employees sign a card of support if they are in favor of unionization.
Consolidated Omnibus Budget Reconciliation Act (Cobra)
employees w/group health plans and >20 employees in prior yr must offer continued health & dental insurance coverage to terminated employees for limited periods of time
non-exempt employees
employees who do not meet any of one of the FLSA exemption tests and are paid on an hourly basis and covered by wage and hour laws regarding minimum wage, overtime pay and hours worked
exempt employees
employees who meet one of the FLSA exemption tests, are paid on a fixed salary basis and are not entitled to overtime pay
avoidable turnover
employer could have prevented it (ex turnover due to a lack of promotional opportunities)
unavoidable turnover
employer could not have prevented it (ex. Turnover due to spouse relocation)
worker adjustment and retraining notification act of 1988
employers with at least 100 employees must give at least 60 days notice of closings or mass layoffs of 50 or more preople
The Uniformed Services Employment and Reemployment Rights Act (USERRA)
ensures members of the uniformed services are entitled to return to their civilian employment after service.
uniformed services employment and reemployment rights act of 1994
ensures that members of the uniformed services are entitled to return to their civilian employment after their service. to protect the civilian employment of non-full-time military personnel in the United States called to active duty.
HR change management
ensures that the transition is smooth and successful
Argument against affirmative action
ensuring one group gets extra special access to jobs and school is NOT equality of opportunity, it's an advantage
characteristics of engaged employees
enthusiastic, passionate & committed
two most cited fairness principles underlying compensation systems
equal pay for equal work & higher pay for more important work
strategic reasons for merging/acquisitions: gap filling
1 company may have a major weakness (ex poor distribution ) whereas the other has significant strength in that area
compressed workweek
40 hour work week in less than five days
Culture
A powerful learned mindset
permissive
Definition of bargaining unit, retiree health insurance or pension, ground rules, settlement of grievances or charges, drug testing, labeling are ________ subjects.
Regents of the University of California vs Bakke in 1973
Bakke asserted that since 16 spots were set aside for racial minorities, minority students less qualified than he were being admitted to his exclusion
Worker Adjustment & Retraining Notification Act (WARNA)
Employers with at least 100 employees must give at least 60 days notice to workers of plant closings or mass layoffs of 50 or more people (excluding part-time workers)
EEOC
Equal Employment Opportunity Commission
[(Training Benefits - Training cost)/Training Cost] x 100
Equation for ROI%
Dual theory of HRM & business performance
Explains benefits of HR management to businesses
employee training design types
Face to Face (F2F), On-the Job (OJT), virtual training, experiential, games & situations
Two types of discrimination
Fair & unfair
informal
Fewer written rules, procedures & communications. More flexibility
discovery learning, experiential learning, observational learning, structured learning, group learning
Five Key learning preferences
internal consultants
HR also performs this role
strategic reasons for merging/acquisitions: short term growth
Management may be under pressure to turnaround sluggish growth and profitability
- right to identify business objectives - right to determine the uses of material assets - right to take disciplinary action for cause
Management rights cover three areas:
- Company performance - Reduced merit increases - Reductions in head count - Reduced benefits - Pay freezes
Most common way employers fund variable pay programs
-Imminent danger situations -Fatalities & Catastrophes - Complaints - Referrals of hazard information from others -Follow-ups -Planned or programmed investigations
Order of Priority for OSHA Inspections
Less formalized/highly decentralized organization
Org type best for people who like innovation, flexible & dynamic work environment
HR leader
Plays a key role in shaping organizational culture
Examples of policy, procedure & rule
Policy: No speeding during rainy weather. Procedure: Decrease speed by pressing brakes if it starts to rain. Rule: Don't press breaks hard when the pavement is wet.
Dual theory of HRM & business performance: peripheral employees
Should make up no more than 1/3 of a companies workforce if the org wants to achieve/maintain optimum financial gains
negligent hiring
a company is considered responsible for the damaging actions of its employees if it failed to exercise reasonable care in hiring the employee who caused the harm
professional employer organization
a company that leases employees to companies that need them
collaborating
attempting to work with the other person to find some solution which fully satisfies the concerns of both parties
types of employee training learning objectives: affective
attitude, relationship or appreciation (ex. Diversity, inclusion training)
spot awards
awards given immediately when a desired behavior is seen
Feedback types
backward approach & forward approach
dysfunctional stress
bad stress
employer image
based on both feelings & facts
stereotype
believing that everyone in a particular group shares certain characteristics or abilities or will behave in the same way
diversity
benefits both members of the minority and the majority by providing diverse viewpoints
mandatory benefits
benefits mandated by fed, state or local laws
customary benefits
benefits that are typically offered life insurance, health coverage, retirement plans
domestic partner benefits
benefits to 2 people not married but in the same or opposite sex arrangement similar to marriage
ways of communicating benefits info
benefits workshops, employee meetings, social networking tools
feedback
can be formal (written coaching report) or informal (private talk in the hall)
Dual theory of HRM & business performance: outsourcing
can reduce employment at home; however, if total labor costs are reduced, product prices decrease & demand increases
equal pay act
can't pay people differently for the same job based solely on sex
ability
a stable and enduring capability to perform a variety of tasks (verbal or mechanical ability)
workforce redeployment
a viable alternatives to layoffs
integrative negotiation
a win-win negotiation in which the agreement involves no loss to either party
explicit employment contract
a written or verbal employment contract
full competence
ability to analyze problems associated with the job
partial proficiency
ability to apply more advanced principles on the job
limited ability
ability to perform simple tasks without direction
serial socialization
accessible and supportive organizational members serve as role models and mentors
workplace
according to the US dept of justice this is the most dangerous place to be in the US
assessment goals
accuracy, fit, ethics, legal compliance
strategic reasons for merging/acquisitions: broader market access
acquiring a foreign company can give a co quick access to emerging global markets
strategic reasons for merging/acquisitions: org competencies
acquiring human resources & intellectual capital to help improve innovative thinking/development within the org
errors of omission
an employee who deserves a reward doesn't receive one
Due Diligence/M&A Tasks: HR
development of a C&B strategy for the combined companies
Due Diligence/M&A Tasks: HR
development of new org chart & reporting line
employee training program evaluation: Kirkpatrick's training eval model: 3 Behavior
easy, less expensive if supervisors cooperate and support the effort
Training transfer
effectively using what is learned in training back on the job
benefits
are not just at employer discretion
Immigration Reform & control act
employers with >4employees must verify employee eligibility of everyone hired - only US citizens, US nationals and aliens authorized to work in the US can be hired.
immigration reform and control act of 1986
employers with at least 4 employees must verify the employment eligibility of everyone hired
COBRA of 1986
employers with group health plans and 20 or more employees in the prior year must offer continued health and dental coverage to terminated employees for a period of time
every state except for Montana
employment is considered at-will unless there is proof otherwise such as an employment contract
preferential treatment
employment preference given to a member of a protected group
at-will employment
employment relationship that can be legally terminated by either party at any time for a just cause or no cause or even a cause that's morally wrong so long as it's not illegal
Typical types of responses to change: the navigator
empowered by change
HR should
enables all of the companies employees to do their best
reinforcement for performing learned behaviors
encourages the transfer of what is learned in training
Affirmative action
ends legalized discrimination
as bias decreases
equal opportunity increases
Policy
explains the expectation in general terms
mobility barriers
factors that make it harder to leave an organization
employee training program evaluation: Kirkpatrick's training eval model: 1. Reaction
fast, easy & inexpensive method of assessment
OSHA
fed org sets and enforces protective worker safety & health standards
backward approach feedback
feedback/review of results employee has gotten in the past
normative commitment
feeling obliged to stay with an organization for moral or ethical reasons
replacement charts
graphically shows current jobholders, possible successors and each successor's readiness to assume the job
comparable worth
if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them
focus on culture
if you want your organization to deliver the best
Typical types of responses to change: the bystander
ignores the change
opportunity bias
ignoring factors beyond the employee's control that influence his/her performance
applicant assessment phases: screening
include resume & cover letter checks: applicant skills, education & work experience
mandatory benefits
include social security/Medicare, unemployment insurance, workers comp, FMLA, Cobra health coverage
employer brand
includes image
Dual theory of HRM & business performance: peripheral staff
includes temps, limited time contract employees, paid time employees, outsourced staff, rented/borrowed employees
change management
is managing the impact of crucial company adaptations on an organizations people
what attracts people to an org
is not always the same as what keeps them engaged & keeps them from leaving
Training alone
is not good enough
Health & safety
is not peripheral or optional. It's essential
reducing voluntary turn over
is the same as increasing employee retention
employee training program implementation
includes the scheduling of sessions, invitation of participants, scheduling of instructions, preparation of materials and delivery of the training
typical response to findings of adverse impact in an employer's record
is to require the company to introduce an Affirmative Action Plan to rectify the findings into the future.
total compensation statement
issued by companies annually or biannually to employees that includes wage & benefit information
External recruiting
includes use of career sites, job fairs, online job boards, employee referrals, college/universities, walk-ins & written advertisements
Methods of determining the correct candidate: combining scores
includes: compensatory approach or multiple hurdle approach
strategic reasons for merging/acquisitions: diversification
it may be necessary to smooth-out earnings and achieve more consistent long-term growth and profitability
strategic reasons for merging/acquisitions: bargain purchase
it's cheaper to acquire another company than to invest internally
Affirmative action
its goal is to provide employment opportunities to protected classes underrepresented in employment/institutions
Argument against affirmative action
its government interference & the redistribution of wealth
job rewards analysis
job analysis technique that identifies the intrinsic and extrinsic rewards of a job
5 of 7 reasons emp leave org
lack of career dev poor work climate lack of challenging work direction of org lack of recognition
Regents of the University of California vs Bakke in 1973
landmark case involving racial set-asides or quotas in UC's Davis Medial School
inflation adjustments
larger and/or more frequent raises to maintain employee's purchasing power in the face of inflation
Like me bias: acquaintances
largest group of people most individuals knows
All 6 HR functions
must be thought about/fulfilled based upon how they contribute to the org's strategic plan (ex training is developed that links to the strategic plan)
employee training design considerations
must decide the best way to reach audience and communicate concepts
HR
must function as a change manager to ensure a smooth and successful transition
important characteristics of trainees
must have learning agility & ability to apply knowledge, motivation to transfer knowledge & ability to self regulation
front line recruiters
must have significant training, tools and support to be successful
ethics of recruitment
must not mislead recruits about the nature of the job or about their chances of getting a job offer.
Dual theory of HRM & business performance: low involvement HR practice
no status differentials
Dual theory of HRM & business performance: low involvement HR practice
no target hiring
intrinsic reward
non-monetary reward derived from the work itself
employee benefits
nonwage compensation or rewards given to employees (indirect compensation)
passive job seeker
not actively looking for a job but who could be tempted by the right opportunity
avoiding
not immediately pursuing one's own concerns or those of the other person and not addressing the conflict
Dual theory of HRM & business performance: low involvement HR practices
not much employee continuity, no targeted hiring, most work individual, little training/development, static pay, no/little business information sharing, no status differentials
mergers & acquisitions
now a normal way of life within the business world
9 Methods
number of methods to evaluate employee performance
span of control
number of people who report directly to him or her.
Kaplan & Norton balanced scorecard
objectives measures targets initiatives
to increase employee engagement, increase employee commitment & reduce employee turnover
one of the main goals of HR tools & management
variable pay plans
pay for performance plans that put a small amount of base pay at risk, in exchange for the opportunity to earn additional pay if performance meets or exceeds a standard
Cost-of-living adjustments
pay increases to account for a higher cost of living in one country versus another
Org influence on direct finan compensation
pay leader or pay follower
screening assessment methods
reduce the pool of job applicants to a group of job candidates. ie resumes, job applications, phone screens.
if the recruitment process is done right
reduced employee turnover & talent diversity
applicant assessment phases: contingent assessment
reference checks, drug tests, background checks, etc. Usually performed if job offer is imminent and may determine whether the offer is actually made.
Affirmative action
refers to proactive efforts to eliminate discrimination and its past effects
steps in performance management process: org values & goals
reflect org structure & philosophy of an org. gives employees a sense of purpose & helps employees prioritize activities
base pay
reflects the size and scope of an employee's responsibilities
leader
regardless of their roles in the company, everyone is this
punishment
reinforcer: creating negative outcomes to decrease the likelihood of a behavior
positive reinforcement
reinforcer: using rewards to increase the likelihood that a behavior will be repeated
labor relations strategies: collaboration
relies heavily on labor relations to pursue an interest based approach to problem solving
labor relations strategies: compliance
relies heavily on the application of labor laws to enforce the rights and obligations created by statute and contract
judgmental forecasting
relies on managers' expertise to predict a firm's future employment needs
top-down judgmental forecasting
relies on the organization's leaders and experience and knowledge of their industry and company to make predictions about the firm's future talent needs.
30-50 % or 1/3-1/2 of employees
report having felt bullied at some point in their working lives
social security
retirement, disability, death & survivor benefits, work related, covers most US employees
Good employment practices
reward initiative & bravery
extrinsic reward
reward with monetary value
semi-passive job seeker
someone at least somewhat interested in finding a new job but inconsistently looks for one
passive job seeker
someone not actively looking for a new job but who could be tempted by the right opportunity
nonfinancial compensation
sometimes lumped in with indirect financial compensation
Standards
specifies the level of results considered acceptable
Targeted hiring strategies
start with group not individual interviews to determine how people interact with others
worklife benefit
telecommuting, free daycare
when a workplace is safe & employees feel secure/protected on the job
that positively contributes to engagement, job satisfaction & motivation
organizational culture
the norms, values, and assumptions of organizational members that guide members' attitudes and behaviors
succession management
the ongoing process of preparing employees to assume other positions in the organization
vesting
the point at which employees can sell or transfer the stock option
recruitment spillover effects
the positive or negative unintended consequences of recruiting activities
ethics
the standards of moral behavior that define socially accepted behaviors that right as opposed to wrong
total rewards
the sum of all of the rewards employees receive in exchange for their time, efforts and performance
strategic reasons for merging/acquisitions: undervalued target
the target company may be undervalued and thus, it represents a good investment
Upward reviews
the target employee is reviewed by one or more subordinates
optimal turnover
the turnover level producing the highest long-term levels of productivity and business improvement
How unions impact HRM: perform mgmt
their contract gives employees specific rights in filing grievances, settling disputes
conglomerate
typically formed by companies in mature industries with poor growth prospects seeking to diversify their business via mergers & acquisitions
Hiring considerations
what we offer, how to offer it, fairness perceptions, negotiating employment contracts
goal of learning objectives
what we want to get out of training & how we get there from here?
sourcing
where is the pond from which I want to get my fish
dysfunctional
conflict that focuses on emotions and differences between both parties
high potential error
confusing potential with performance
Fair discrimination
considered appropriate & even healthy
stakeholder perspective
considering the interests and opinions of all people, groups, organizations, or systems that affect or could be affected by the organizations actions
M&A Synergy Objectives w/significant "people integration" issues: serve more with less
consolidation of functions
M&A Synergy Objectives
consolidation of functions (serve more with less)
Employee handbook/personnel manual
contains a companies rules, policies and procedures
offer
contains the terms and conditions of employment as proposed by the employ and usually specific requirements for accepting the offer such as a signature and a deadline
in order to survive orgs must
continually adapt
common human biases
contribute to workplace discrimination
desired recruiting outcomes
good applicant perceptions of the company,
desired recruiting outcomes
good applicant quantity & quality
Targeted hiring strategies
good attitude employee
functional stress
good stress
health insurance
health care coverage for employees and their dependents
socialization
long- term, participating as an organization member
Sources of Performance Info
multi-source assessments (ex 360 degree appraisals), employee self-assessment, manager assessment, upward reviews
incentives or incentives pay
pay for performance above & beyond normal job expectations
external recruiting source
targets people outside the organization
horizontal
Job enlargement is _________ job expansion.
vertical
Job enrichment is _________ job expansion.
most complex M&A HR issues (due diligence)
1. Cultural fit 2. Alignment of compensation & benefit plans 3. Quantification of severance/benefit obligations 4. leadership assessment 5. compliance with applicable laws.
Top 3 reasons for company M&A
1. Improved Market Access 2. Combined business creation 3. Coordinated strategies
M&A Top HR Issues (Due Diligence)
1. Key employee retention 2. compliance with applicable laws 3. Alignment of compensation & benefit plans 4. Cultural fit 5. Employee communications
keys to org incentive plan success
1. base pay needs to be equitable across the board 2. strategic plan must be in process & plan must be progressive/forward thinking 3. org has to be committed to supporting the plan
Like me bias: stage 2 COMFY people
10% of outer circle of people we feel comfortable with
4/5 rule violation example
100 people applied for an Accountant position. Fifty females and fifty males. Of all the applicants, only 20 males passed an assessment test during the hiring process, while 48 females passed. What is 80% of 48? 38. And 20 males is less than 80% of the female acceptance rate so there is indeed adverse impact going on.
Why M&A fails: poor strategic fit
2 companies have strategies/objectives that are too different & conflict with one another
Kirkpartrick's training evaluation model & Return on investment (ROI)
2 of the most effective employee training program evaluation methods
Culture
A company's personality
Compensation
All rewards - financial & nonfinancial that an employee might receive from their employer
A strong competitive advantage
An effective HR system has the potential to produce this
- Preference of individual employees - Size of the rewards for high performance - Method of motivating individual job performance - Objectivity of the evaluation process that determines the rewards
Before designing an incentive pay plan to motivate performance, it is important to consider the
Targeted hiring strategies
Clearly state what you are looking for in new hires
skills, responsibilities, effort, working conditions
Four categories of compensable factors
Rule
Gives behaviors you are and are not allowed to engage in when following a procedure and/or policy
Strategic HR practices
Have been linked to org efficiency, revenue growth & effective risk management
Know-how, problem solving, accountability, working conditions
Hay Group Method based on four main factors
HRM stands for
Human Resource Management
Types of recruitment
Internal or external
M&A
Mergers & Acquisitions
steps in performance management process
OPEMB: Open em book
HRM is
Organizational function responsible for attracting, hiring, developing, rewarding & maintaining talent
Why M&A fails: cultural/social differences
People problems. If two companies have wide differences in cultures, synergy values can be very elusive
Targeted hiring strategies
Refresh recruiters & interviewers to match what you state you are looking for in new hires
Specific, Measurable, Achievable, Relevant, Time-Bound
SMART stands for:
Like me bias:
Selecting and/or replicating people that see the world the most like we do
HR internal consultant considerations: If talent shortages are expected
Short-term: offer hiring incentives & retention bonuses; reassign employees
HR internal consultant considerations: If talent surpluses are expected
Short-term: salary cuts, cut work hours, layoffs
Towers Watson
conducted 2008 survey re: employee attraction, retention & engagement
policies
Specifics of these are often explained by procedures & rules
org costs: voluntary turnover
The higher the caliber of the employee, the greater the cost in terms of loyalty, knowledge, skills, ability, etc
- Aligns organizational goals with individual goals and organizational processes - Gives employees clear goals and feedback - Generates useful data
Three Main Benefits of Performance Management
To create energetic & fun loving work environment
Visibly display your humanistic philosophy/focus on people all over your company
steps in performance management process: Perf Mgmt standards:behavior
What an org wants its employees to do - must be specific
pay follower
an organization that pays its front-line employees as little as possible
M&A Synergy Objectives
financial engineering
synergy value
financial incentives to merge/acquire
entrepreneurial (creative), bureaucratic (formal), consensual (loyalty), competitive (advantage)
four types of organizational culture
effective socialization of new employees
group new employees
Benefit of a diverse workforce
increased creativity
In M & A
long-term issues are of lesser concern
benefit categories
mandatory, customary, optional, creative, global
distributive negotiation
occurs under zero-sum conditions, where any gain to one party is offset by an equivalent loss to the other party
ethics of recruitment
only appropriate info is shared
1970s
peak of affirmative action
Like me bias: inner sanctum
people in this group tend to have the least amount of diversity from us
decentralized
power & decision making authority is spread throughout the organization & not just among the higher levels of the org chart
fixed rewards
predetermined compensation (salary and benefits)
4/5 rule
preferred method for calculating adverse impact unless samples are very small or very large
4 common biases
prejudice, stereotyping, perception of possibilities, ignorance
applicant assessment: ethics
premier attribute of entire selection process. Includes confidentiality, privacy, honesty
benefits of succession management
preparedness; less time & money to attract, train & promote new talent; weaknesses are uncovered; gives a great perspective on the talent in your org
Training & development
prepares employees to be & stay effective in their jobs
Training & development
prepares employees to become organizational leaders regardless of their position
Realistic job previews
presenting both positive and potentially negative information about a job in an objective way. 3 funcs served: self selection, vaccination (coping mechanism), commitment to the choice
realistic job preview
presents both positive & potentially negative info about a given job
remission errors
pressure to make unethical choices
recruitment message
primary goal is to attract desirable recruits who are good fit for the job & org and then persuade them to apply for the job
OSHA
provides info, training and worker assistance in the areas of worker safety & health
employer image
reputation as an employer
profit sharing
the distribution of organizational profits to all employees
core values
the enduring beliefs and principles that guide an organization's decisions and goals
utilitarian standard
the ethical action best balances good over harm
virtue standard
the ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc.
Reason to tie pay to performance
to move away from an entitlement culture
job worth: job eval methods
usually done by outside services and uses a ranking, job classification or point factor method
adverse impact
usually indirect, purposeful or unintentional and usually a byproduct of a policy or employment practice, even one that appears neutral on the surface.
optional benefits
work life balance, domestic partner benefits
variable rewards (incentives)
"at risk" rewards which are linked to factors determined as valuable, including performance, skills, competence and contribution
Four principles of Scientific Management - Taylor
- Use methods based on scientifcally studying the tasks using time an motion studies. - Select, train and develop each worker rather than leaving them to passively train themselves - Provide detailed instructions and supervision to workers to ensure that they are following the developed methods. - Divide work equally between workers and managers.
Dual theory of HRM & business performance
Calls attention to the fact that there is not necessarily 1 best way to manage people
HRM
Can be leveraged as a competitive advantage
Negotiable job offer elements
can include salary, sign-on bonuses, non-salary compensation, relocation expenses, benefits & job-specific elements
ignorance
can lead to discrimination
Methods of determining the correct candidate: rank order
candidates are ranked from highest to lowest score and top candidate's) are hired
multiple hurdles
candidates must receive a passing score on an assessment before being allowed to continue in the selection process
Methods of determining the correct candidate: cut score
candidates must score at or above a certain level or predetermined score to be considered
shared service center
centralizes routine, transaction-based HRM activities
Benefit of creativity
challenge to conventional decision-making process wisdom
HR Portion of the M&A Process phases
1. Strategic HR - Due Diligence 2. Integration Preparation 3.Integration
HR M& A process
1. Strategy Assessment 2. HR Liability & Synergy Gap Assessment 3. Deal Input 4. Program Office Setup 5. Create "100 Day" Plans 6. Create Optimization Plans 7. Execute 100 Day Plans 8. Execute Optimization Plans 9. Monitor Synergy Realization
what influences direct financial compensation
1. The org 2. The job 3. The employee 4. External forces
M&A Top due diligence objectives
1. To determine that the deal can be successful in the immediate/near-term 2. to define the right price 3. To evaluate the identified synergies 4. To ID what needs to be done during integration 5. To examine the impact of a potential deal on competitors/industry
Steps in managing change
1. communicate threat of not changing. 2. when possible involve team in decision making. 3. minimize uncertainty. 4. celebrate successes in running towards goal. 5. keep explaining why the change is being made. 6. be as transparent as possible
5 steps to effective training
1. conduct a needs assessment 2. develop learning objectives, 3 design training program 4. implement training 5. evaluate the training
Progressive discipline
1. counseling 2. written warning 3. suspension (with or without pay) 4. Termination
influence tactics
1. legitmating 2. personal appeals 3. assertiveness 4. ingratiation 5. inspirational appeals 6. rational persuasion 7. upward appeals 8. coalition 9. exchange
steps in performance management process
1. org values/goals 2. performance management standards 3. employee performance & behaviors 4. measurement & feedback 5. business results & employee growth
employee training program evaluation: Kirkpactrick's training eval model levels
1. reaction, 2. learning, 3. behavior 4. results
determining adverse impact using 4/5 rule
1. secure all employment records and categorize by protected categories 2. Apply the 4/5 rule
5 components to drug free workplace
1. written policy 2. supervisor training 3. employee education 4. EAP 5. drug testing
Why M&A fails: paying too much
Acquiring company pays a premium for a Target company based on expected synergies; however the synergies are never realized & premium paid is never recouped
Recruiting
Activities that affect either the number or type of people willing to apply for and accept job offers
Adarand Constructors Inc vs Pena 1995
Addresses racial preferences in hiring of subcontractors on govt projects. Govt agencies giving preferential treatment to minority owned business or those who employed a large number of minority employees
California Civil rights Initiative 1996
After passage, 1996 levels of minority enrollment at UC schools did not return to 1996 levels until 2010
at-will employment
An employer has the right to terminate an employee at any time for any reason or no reason at all
Diversity
An instance of being composed of differing elements or qualities
HR internal consultant consideration
Are talent shortages/surpluses temporary or permanate
Dual theory of HRM & business performance: outsourcing
As demand increases due to the lower product prices, more employees are hired
virtue
Which ethical standard: A company valuing honesty that quickly recalls products that might be defective or dangerous
Common Good
Which ethical standard: Ensuring that suppliers do not employ child labor or provide unsafe working conditions
rights
Which ethical standard: If a supervisor tells an employee to handle a toxic substance without appropriate protective gear
utilitarian
Which ethical standard: Southwest Airlines cuts all employees' pay rather than laying anyone off
fairness
Which ethical standard: debate over the appropriateness of CEO salaries and bonuses that are hundreds of times larger than the pay of the average employee.
culture
Who a company is & how they do things
Dual theory of HRM & business performance: peripheral employment
You can only add so many of these types of employees before you stop seeing monetary gains.
Permissive
______ subjects may be negotiated but don not have to be.
Mandatory
_______ subjects are those required by The National Labor Relations Board.
Illegal
_______ subjects may not be negotiated.
workplace tort
a civil wrong in which an employer violates a duty owed to its customers or employees
acceptance
a clear expression of the accepting party's agreement to the terms of the offer
code of ethics
a decision making guide that describes the highest values to which an organization aspires
commission errors
a failure to follow sound, established operational and ethical practices
Employee Retirement Income Security Act of 1974
a federal law that protects employees' retirement benefits from mismanagemen
Fair Labor Standards Act of 1938
a federal law that sets standards for minimum wages, overtime pay, and equal pay for men and women performing the same jobs
consideration
bargained-for exchange between the contract parties - something of value must pass from one party to the other
Employment laws still exist because
barriers still exist based upon legally protected characteristics
job worth: market pricing
based on research into what other orgs in our field/market are willing to pay for like position
Job influence on direct finan compensation
based on skill, effort, working conditions, job responsibility and mental/physical requirements
variable pay
bases some or all of an employee's compensation on employee, team, or organizational
stereotype
believeing that everyone in a particular group shares certain characteristics or abilities or will behave in the same way
Dual theory of HRM & business performance: Another term for high involvement HR practices
best practices
labor relations strategies: collaboration advantages
better communication can result
psychological contract
between employee & employer and concerns mutual expectations of inputs & outcomes
general labor & specialists
both bring value to the org when strategically placed
Employment laws & regs
both federal & state level. They exist primarily due to the imbalance of power in working relationships
Performance Mgmt behavior & result expectations
both must be communicated to employees
scientific management
breaks work down into its simplest elements and then systematically improves the worker's performance of each element
Competencies
broad worker characteristics that underlie successful job performance
investiture socialization
builds newcomers' self-confidence and reflects senior employees' valuing of newcomers' knowledge and personal characteristics
in countries without at-will employment
bullying is used as a tactic to force long-term/contracted employees to quit
Benefit of diverse workforce
business attract customers when those customers are comfortable w/ the business representatives
Dual theory of HRM & business performance: High involvement HR practice
business info sharing
corporate social responsibility
businesses showing concern for common good and valuing human dignity
How does HR support org leadership
by carrying out its 6 functions in accordance with and for the purpose of contributing to the strategic plan
financial benefits of merger & acquisitions:
by combining 2 companies, expenses are lowered
financial benefits of merger & acquisitions:
by combining 2 companies, higher revenues than before
financial benefits of merger & acquisitions:
by combining 2 companies, lower overall cost of capital
org charts influence behavior how
by enabling or restricting communication, teamwork & cooperation
Dual theory of HRM & business performance: low involvement HR practices
can also leverage or increase return on capital investment
Active job seeker
can be easily reached through traditional advertising methods such as job boards
Hiring considerations: negotiating employment contracts
can be either explicit or implicit
rule
can be part of a procedure
customer service, production quality, production quantity, productivity improvements
can be positively influenced by incentive plans
individual, team & org performance
can be positively influenced by incentive plans
revenue growth, increase in market share, cost reduction
can be positively influenced by incentive plans
teamwork, attendance, safety
can be positively influenced by incentive plans
workplace violence
can be reduced if employers identify risk factors & take appropriate precautions
HR
can be the driver/promoter of ethical decision-maker & behavior in an organization
legally protected classes
can change over time (such as age, pregnancy status & disability)
stereotyping
can contribute to discrimination
lower skilled front line recruiters
can cost firms a lot of money & lost talent acquisition opportunities
drivers of employment engagement
can differ from the drivers of employee attraction & retention
employee wellness programs incentives
can improve the likelihood that employees will adopt healthier behaviors, great investment for companies
applicant assessment phases: evaluative assessment
can include personality tests, assessment of values & integrity tests - considerered to be predictive of attitudes of character/fit