CHAPTER 11. Human Resource Management

job analysis

A study of what is done by employees who hold various job titles.

job description

A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions.

job specifications

A written summary of the minimum qualifications required of workers to do a particular job.

training and development

All attempts to improve productivity by increasing an employee's ability to perform. Training focuses on short-term skills, whereas development focuses on long-term abilities.

job sharing

An arrangement whereby two part-time employees share one full-time job.

performance appraisal

An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination.

mentor

An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor.

fringe benefits

Benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages.

Effects of Legislation

Clearly, laws ranging from the Social Security Act of 1935 to the 2008 Americans with Disabilities Amendments Act require human resource managers to keep abreast of laws and court decisions to effectively perform their jobs. Choosing a career in human resource management offers a challenge to anyone willing to put forth the effort. Remember: Employers must know and act in accordance with the legal rights of their employees or risk costly court cases. Legislation affects all areas of human resource management, from hiring and training to compensation. Court cases demonstrate that it is sometimes legal to provide special employment (affirmative action) and training to correct discrimination in the past. New court cases and legislation change human resource management almost daily; the only way to keep current is to read the business literature and stay familiar with emerging issues.

reverse discrimination

Discrimination against whites or males in hiring or promoting.

How can employees move within a company?

Employees can be moved up (promotion), over (reassignment), or out (termination or retirement) of a company. They can also choose to leave a company to pursue opportunities elsewhere.

affirmative action

Employment activities designed to "right past wrongs" by increasing opportunities for minorities and women.

What are fringe benefits?

Fringe benefits include sick leave, vacation pay, company cars, pension plans, and health plans that provide additional compensation to employees beyond base wages. Cafeteria-style fringe benefits plans let employees choose the benefits they want, up to a certain dollar amount.

cafeteria-style fringe benefits

Fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount

core time

In a flextime plan, the period when all employees are expected to be at their job stations.

Why has recruitment become more difficult?

Legal restrictions complicate hiring and firing practices. Finding suitable employees can be more difficult if companies are considered unattractive workplaces.

What methods help develop managerial skills?

Management development methods include on-the-job coaching, understudy positions, job rotation, and off-the-job courses and training.

What are current challenges and opportunities in the human resource area?

Many current challenges and opportunities arise from changing demographics: more women, minorities, immigrants, and older workers in the workforce. Others include a shortage of trained workers and an abundance of unskilled workers, skilled workers in declining industries requiring retraining, changing employee work attitudes, and complex laws and regulations.

How does networking fit in this process?

Networking is the process of establishing contacts with key managers within and outside the organization to get additional development assistance.

What are some of the key laws?

One of the more important pieces of social legislation passed by Congress was the Civil Rights Act of 1964. This act generated much debate and was amended 97 times before final passage. Title VII of that act brought the government directly into the operations of human resource management. Title VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on race, religion, creed, sex, or national origin. Age was later added to the conditions of the act. The Civil Rights Act of 1964 was expected to stamp out discrimination in the workplace, but specific language in it made enforcement quite difficult. Congress took on the task of amending the law.In 1972, the Equal Employment Opportunity Act (EEOA) was added as an amendment to Title VII. It strengthened the Equal Employment Opportunity Commission (EEOC), which was created by the Civil Rights Act, by giving it rather broad powers. For example, it permitted the EEOC to issue guidelines for acceptable employer conduct in administering equal employment opportunity. The EEOC also mandated specific record-keeping procedures, and Congress vested it with the power of enforcement to ensure these mandates were carried out. The EEOC became a formidable regulatory force in the administration of human resource managementPerhaps the most controversial policy enforced by the EEOC involved affirmative action, designed to "right past wrongs" by increasing opportunities for minorities and women. Interpretation of the affirmative action law led employers to actively recruit, and in some cases give preference to, women and minority group members. Questions persist about the legality of affirmative action and the effect it may have in creating a sort of reverse discrimination in the workplace. Reverse discrimination has been defined as discriminating against members of a dominant or majority group (e.g., whites or males) usually as a result of policies designed to correct previous discrimination. The issue has generated heated debate as well as many lawsuits. The Civil Rights Act of 1991 expanded the remedies available to victims of discrimination by amending Title VII of the Civil Rights Act of 1964. Now victims of discrimination have the right to a jury trial and punitive damages. Human resource managers must follow court decisions closely to see how the law is enforced. The Office of Federal Contract Compliance Programs (OFCCP) ensures that employers comply with nondiscrimination and affirmative action laws and regulations when doing business with the federal government. aws Protecting Employees with Disabilities and Older Employees As you read above, laws prohibit discrimination related to race, sex, or age in hiring, firing, and training. The Vocational Rehabilitation Act of 1973 extended protection to people with any physical or mental disability. The Americans with Disabilities Act of 1990 (ADA) requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities. The ADA also protects individuals with disabilities from discrimination in public accommodations, transportation, and telecommunications. The ADA requires making "reasonable accommodations" for employees with disabilities, such as modifying equipment or widening doorways. Most companies have no trouble making structural changes to be accommodating. However, at times such changes can be difficult for some small businesses. Employers used to think that being fair meant treating everyone the same, but accommodation in fact means treating people according to their specific needs. That can include putting up barriers to isolate people readily distracted by noise, reassigning workers to new tasks, and making changes in supervisors' management styles. Accommodations are not always expensive; an inexpensive headset can allow someone with cerebral palsy to talk on the phone. In 2008, Congress passed the Americans with Disabilities Amendments Act, which overturned Supreme Court decisions that had reduced protections for certain people with disabilities such as diabetes, epilepsy, heart disease, autism, major depression, and cancer. In 2011, the EEOC issued regulations that widened the range of disabilities covered by the ADA and shifted the burden of proof of disability in labor disputes from employees to business owners. Enforcement of this law promises to be a continuing issue for human resource management. The Age Discrimination in Employment Act of 1967 (ADEA) protects individuals 40 or older from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training. The ADEA is enforced by the EEOC, applies to employers with 20 or more employees, and protects both employees and job applicants. It also outlaws mandatory retirement in most organizations. It does, however, allow age restrictions for certain job categories such as airline pilot or bus driver if evidence shows that the ability to perform significantly diminishes with age or that age imposes a danger to society.

What methods do human resource managers use to recruit new employees?

Recruiting sources are classified as either internal or external. Internal sources include those hired from within (transfers, promotions, reassignments) and employees who recommend others to hire. External recruitment sources include advertisements, public and private employment agencies, college placement bureaus, management consultants, professional organizations, referrals, walk-in applications, and the Internet.

What scheduling plans can adjust work to employees' need for flexibility?

Such plans include job sharing, flextime, compressed workweeks, and home-based work.

orientation

The activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm.

What are the steps in human resource planning?

The five steps are (1) preparing a human resource inventory of the organization's employees; (2) preparing a job analysis; (3) assessing future demand; (4) assessing future supply; and (5) establishing a plan for recruiting, hiring, educating, appraising, compensating, and scheduling employees.

What types of compensation are appropriate for teams?

The most common are gain-sharing and skill-based compensation programs. Managers also reward outstanding individual performance within teams.

human resource management (HRM)

The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.

networking

The process of establishing and maintaining contacts with key managers in one's own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems.

selection

The process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization.

management development

The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.

recruitment

The set of activities used to obtain a sufficient number of the right people at the right time.

How do managers evaluate performance?

The steps are (1) establish performance standards; (2) communicate those standards; (3) compare performance to standards; (4) discuss results; (5) take corrective action when needed; and (6) use the results for decisions about promotions, compensation, additional training, or firing.

What are the six steps in the selection process?

The steps are (1) obtaining complete application forms, (2) conducting initial and follow-up interviews, (3) giving employment tests, (4) conducting background investigations, (5) obtaining results from physical exams, and (6) establishing a trial period of employment.

job simulation

The use of equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting them on the job.

What are common types of compensation systems?

They include salary systems, hourly wages, piecework, commission plans, bonus plans, profit-sharing plans, and stock options.

What are some training activities?

Training activities include employee orientation, on- and off-the-job training, apprentice programs, online training, vestibule training, and job simulation.

on-the-job training

Training at the workplace that lets the employee learn by doing or by watching others for a while and then imitating them.

vestibule training

Training done in schools where employees are taught on equipment similar to that used on the job.

apprentice programs

Training programs involving a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft.

off-the-job training

Training that occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development.

compressed workweek

Work schedule that allows an employee to work a full number of hours per week but in fewer days

flextime plan

Work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours.

contingent workers

Workers who do not have the expectation of regular, full-time employment.