Chapters 1-5 HR study guide
What is the labor market?
Potential employees located within a geographic area from which employees are recruited Always changing
Human Resource Planning
Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time
Federal Sentencing Guidelines for Organizations (FSGO) of 1992
Outlined effective ethics training program Promised softer punishments for wayward corporations that had ethics programs in place Executives needed to be proactive Created: -Ethics officer positions -Ethics hotlines -Codes of conduct
Application of Ethics to the different HR functions
- Staffing and selection: Simplest way to tune up an organization is to hire more ethical people, Honesty tests, and Comprehensive background checks. - Training: Communicate employees core company values, reinforce best practices, and establish behaviors and standards for all employees. How to use ethical frameworks (such as codes of conduct) to resolve problems. - Performance Appraisal: Employees' standards should be clear. Should understand the basis upon which they're going to be appraised. Appraisals themselves should be performed objectively and fairly. - Reward and Disciplinary Systems: Employees expect the organization to dole out relatively harsh punishment for unethical conduct. Important for the company to send the right signals by disciplining executives who misbehave.
Title VII of Civil Rights Act of 1964 -- Amended 1972
-Illegal for an employer to discriminate in hiring, firing, promoting, compensating on the basis of race, color, sex, religion, or national origin -Three notable exceptions to Title VII discrimination: Bona fide occupational qualifications (BFOQ) Bona fide seniority system Professionally developed ability tests as long as there was no intention to engage in illegal discrimination
Employee Referrals
-Number one way people find a job -Way that top performers are primarily identified -Reduces turnover rate -Problem May generate applicant pools that do not reflect diversity
Equal Pay Act of 1963
-Prohibits an employer from paying an employee of one gender less money than an employee of opposite gender, if both employees do work that is substantially the same -Jobs are considered substantially the same when they require equal skill, effort, and responsibility and they are performed under similar working conditions -Coverage All employers with 1 or more employees, including the federal government -Four exceptions that permit unequal pay for equal work include: Seniority system Merit system System that measures earnings by quantity or quality of production Any factor other than sex
Two Components of Human Resource Planning
1. Requirements forecast Determining the number, skill, and location of employees that the organization will need at future dates in order to meet its goals 2. Availability forecast Determination of whether the firm will be able to secure employees with the necessary skills, and from what sources
Human Resource Management Functions(6)
1. Staffing 2. Performance Management 3. Employee and Labor Relations 4. Safety and Health 5. Compensation 6. Human Resource Development
Three cases when sexual harassment can occur
1.When submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment (quid pro quo), 2. When submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual, 3. When such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive working environment
How does a firm become aware of having a surplus or shortage of employees?
A firm becomes aware of having a surplus or shortage of employees as a result of comparing requirements and availability
Human Resource Manager
Acts in advisory or staff capacity Works with other managers to help them deal with human resource matters
Online Recruitment
Advantages -It costs less -Responses arrive faster and in greater quantity -Faster recruiting cycle time Disadvantages -Process must be in place to filter out those applicants who do not meet minimum qualifications -More competition for qualified employees -Confidentiality
Interrelationships of HRM Functions
All HRM functions are interrelated Each function affects other areas
HR as a Strategic Partner
An adviser to all managers HR executives must work with top management in achieving concrete plans and results HR executives must understand the operational side of the business and must be able to determine the capabilities of the company's workforce, both today and in the future HR executives must ensure that human resources support the firm's mission. They need to participate and be responsive to the rapid changes that are occurring in business
Affirmative Action Programs
An approach developed by organizations with government contracts to demonstrate that workers are employed in proportion to their representation in a firm's relevant labor market
Diversity
Any perceived difference among people: age, race, religion, functional specialty, profession, sexual orientation, geographic origin, lifestyle, tenure with the organization or position, and any other perceived difference
Human Resource Ethics
Application of ethical principles to HR relationships and activities
Promotion from Within (PFW)
Policy of filling vacancies above entry-level positions with current employees
Employee and Labor Relations
Business is required by law to recognize union and bargain with it in good faith if firm's employees want union to represent them Human resource activity with a union is often referred to as industrial relations. HRM activities associated with the movement of employees within the organization -Promotions -Demotions -Terminations -Resignations
The organization's obligations
Obligations to individuals-Certain obligations to employees. Expect a fair day's pay for a fair day's work, and perhaps much more. Obligations to other organizations Obligations to government Obligations to society in general
Labor Market Conditions
Demand for and supply of specific skills Unemployment rate -A firm's recruitment process may be simplified when the unemployment rate in an organization's labor market is high Possessing a college degree used to be passport to securing a good job Skills to perform crafts such as welders, pipe fitters, painters, and machinists are needed New technology may require that workers have a specialized degree
Compensation
Direct Financial Compensation Pay that a person receives in form of wages, salaries, bonuses, and commissions Indirect Financial Compensation (Benefits) All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance Nonfinancial Compensation Satisfaction that a person receives from the job itself or from psychological and/or physical environment in which the person works
What is Ethics?
Discipline of study dealing with what is good and bad, or right and wrong, or with moral duty and obligation
Job Description and its content
Document that provides concise statements of what employees are expected to do on the job, how they do it, and the conditions under which the duties are performed Vitally important that job descriptions are both relevant and accurate Job Identification - Job title, the department, the reporting relationship, and a job number or code. Job Analysis Date - Aids in identifying job changes that would make the description obsolete. Job Summary - Concise overview of the job. Duties Performed - Major duties. Use action verbs.
Adverse Impact
Occurs if women and minorities are not hired at the rate of at least 80% of the best-achieving group When a company uses an employment practice that unintentionally discriminates against members of a protected class Employer must show there is a valid, job-related reason for using the selection criteria
Responsibility for Ensuring EEO
Equal Employment Opportunity Commission (EEOC) Office of Federal Contract Compliance Programs (OFCCP) Employers
Job Analysis and the Law
Equal Pay Act Fair Labor Standards Act Civil Rights Act Occupational Safety and Health Act Americans with Disabilities Act
Equal Employment Opportunity Versus Affirmative Action
Equal employment opportunity Aims to ensure that anyone, regardless of race, color, disability, sex, religion, national origin, or age, has an equal chance for a job based on his or her qualifications Affirmative action Requires the employer to make an extra effort to hire and promote those in a protected group that results in measurable, yearly improvements in hiring, training, and promotion of minorities and females in all parts of the organization
Immigration Reform and Control Act (IRCA) of 1986
Established criminal and civil sanctions against employers who knowingly hire unauthorized aliens
Environment of HRM: External
External: Legal Considerations, Labor market, Society, Economy, Technology, Customers, Competition, Political parties, Etc. Internal: Finance, Marketing, Operations, Other functional areas
Why External Recruitment is needed?
Fill entry-level jobs Acquire skills not possessed by current employees Obtain employees with different backgrounds to provide diversity of ideas
Performance Management
Goal-oriented process directed toward ensuring that organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization -Performance appraisal- Formal system of review and evaluation of individual or team task performance
Internal Recruitment Methods
Human resource databases Job Posting (Job Bidding) Employee referral
Age Discrimination in Employment Act of 1967--amended in 1978 & 1986
Illegal to discriminate against anyone 40 years or older
Corporate Social Responsibility
Implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves When corporation behaves as if it has a conscience it is said to be SR It is how a company as a whole behaves toward society
Diversity Management
It is ensuring that factors are in place to provide for and encourage the continued development of a diverse workforce by melding the actual and perceived differences among workers to achieve maximum productivity
Disparate Treatment
It means that an employer treats some people less favorably than others because of race, religion, sex, national origin, or age
Job Posting and Job Bidding
Job Posting - Procedure to inform employees that job openings exists Job Bidding - Permit individuals in the organization who believe that they possess the required qualifications to apply for a posted job
Job Enrichment vs. Job enlargement
Job enrichment - Basic changes in the content and level of responsibility of the job, to provide greater challenge to the worker. Job enrichment provides a vertical expansion of responsibilities Job enlargement - Changes in scope of the job to provide greater variety to the worker
Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002
Known as Sarbanes-Oxley Act Primary focus was to redress accounting and financial reporting abuses Criminalized many corporate acts Established whistleblower protections
Explain the External Environment of Recruitment
Labor Market Conditions Active or passive job seekers Legal Considerations
Problems If Job Specifications Are Inflated
May systematically eliminate minorities or women from considerations Compensation costs will increase Job vacancies will be harder to fill
Job specification
Minimum acceptable qualifications that a person should possess to perform a particular job (experience, personality traits, educational requirements, physical abilities) Should reflect the minimum, not the ideal qualifications for a particular job Job specifications are often included as a major section of job descriptions
Stakeholder analysis and the Social Contract
Most organizations have a large number of stakeholders.
Pregnancy Discrimination Act of 1978
Must treat pregnancy the same as any other temporary disability Prohibits discrimination in employment based on pregnancy, childbirth, or related medical condition
Sources of ethical guidance
Number of sources to determine what is right or wrong, good or bad, moral or immoral -Bible and other holy books -Conscience -Significant others -Codes of Ethics -Laws Sources of ethical guidance should lead to our beliefs or convictions about what is right or wrong
Uniform Guidelines on Employee Selection Procedures
Principles designed to assist employers, labor organizations, employment agencies, and licensing and certification boards in complying with federal prohibitions against employment practices that discriminate on the basis of race, color, religion, gender, and national origin
Strategic Planning
Process by which top management determines the overall organizational purposes and objectives and how they are to be achieved Strategic planning at all levels can be divided into four steps
Definition of Recruitment
Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization "The right employees are our most important asset"
Staffing
Process through which an organization ensures that it always has the required number of employees with the appropriate skills in the right jobs at the right time, to achieve organizational objectives Job Analysis- Systematic process of determining skills, duties, and knowledge required for performing jobs in an organization Human Resource Planning-Systematic process of matching the internal and external supply of people with job openings Recruitment-Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications Selection-Process of choosing from a group of applicants the individual best suited for a particular position
Rehabilitation Act of 1973
Prohibits discrimination against disabled workers who are employed by certain government contractors and subcontractors
Americans with Disabilities Act of 1990 (ADA)
Prohibits discrimination against qualified individuals with disabilities
Procurement Integrity Act of 1988
Prohibits release of source selection and contractor bid or proposal information Places restrictions on former employees Passed after reports of military contracts for: $500 toilet seats $5,000 hammer
Alternatives to Recruitment
Promotion policies Overtime On shoring
Acceptable Defenses in Adverse Impact Cases
Provide evidence that the practice is job related 1.Demonstrate the practice is a business necessity 2.Show that the decision is result of bona fide occupational qualification
Job Analysis Methods (Combination of Methods is more appropriate)
Questionnaires Observation Interviews Employee recording
External Recruitment Methods
Recruiters Job Fairs Media Advertising
Employee Requisition (Recruitment begins here; relationship with job description)
Recruitment begins when a manager initiates employee requisition Document that specifies job title, department, the date the employee is needed for work, and other details With the information from the employee requisition, managers can refer to the job description to determine the qualifications the recruited person needs
Recruitment Sources and Recruitment Methods
Recruitment sources -Place where qualified individuals are located Internal External Recruitment methods -Means by which potential employees can be attracted to the firm Internal External
Affirmative Action
Requires covered employers to take positive steps to ensure employment of applicants and treatment of employees during employment without regard to race, creed, color, or national origin Require employers' efforts to bring under-represented groups into the workplace
Safety and Health
Safety Involves protecting employees from injuries caused by work-related accidents Health Refers to employees' freedom from illness and their general physical and mental well being Example: OSHA
Social Contract
Set of written and unwritten rules and assumptions about acceptable interrelationships among various elements of society Embedded in the customs of society Concerns relationships with individuals, government, other organizations, and society
Explain the Reasons For Conducting a Job Analysis
Staffing Training and Development Performance Appraisal Compensation Safety and Health Employee and Labor Relations Legal Considerations
Code of Ethics
Statement of values adopted by the company, its employees and directors and sets official tone of top management regarding expected behavior Code of ethics establishes rules by which an organization lives and becomes part of the organization's corporate culture By fostering a strong ethical culture, firms are better able to gain the confidence and loyalty of their employees. Ethics can impact financial and organizational performance Topics typically included might be business conduct, fair competition, and workplace and HR issues
Social Audit
Systematic assessment of a company's activities in terms of its social impact
Job analysis
Systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization
Legislating Ethics
The law is not the best of guides for what is ethical...Something may be legal, but not right. Examples: Procurement Integrity Act Federal Sentencing Guidelines for Organizations (FSGO) Corporate and Auditing Accountability, Responsibility, and Transparence Act (Sarbanes-Oxley Act) Dodd-Frank Wall Street Reform and Consumer Protection Act
Ethics and HR management
There are two areas where HR can have major impact on ethics: -corporate governance -executive compensation
Equal Employment Opportunity Commission (EEOC)
Title VII of the Civil Rights Act of 1964, as amended, created the EEOC that is charged with administering the act, Filing a discrimination charge initiates EEOC action
Human Resource Development
Training- Designed to provide learners with knowledge and skills needed for their present jobs Development- Involves learning that goes beyond today's job; it has more long-term focus Career Planning- Ongoing process Individual sets career goals Identifies means to achieve them Career development- Formal approach used by the organization, Ensures a pipeline of people with proper qualifications and experiences. Organizational Development- Planned process of improving an organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals
Definition of Human Resource Management
Utilization of individuals to achieve organizational objectives
State and Local Laws
When EEOC regulations conflict with state or local civil rights regulations the legislation more favorable to women and minorities applies.
