Managing Human Capital
layoffs and downsizings
Managing employee separations fairly and equitably
shared service center
centralizes routine, transaction-based HRM activities
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
gap analysis
comparing labor supply and demand forecasts to identify future talent needs
direct financial compensation
compensation received in the form of salary, wages, commissions, stock options, or bonuses
centralized
concentrate power and decision-making authority at higher levels of the organization
stakeholder perspective
considers the interests and opinions of all people, groups, organizations, or systems that affect or could be affected by the organization's actions supports social responsibility.
bona fide occupational qualification
is a characteristic that is essential to the successful performance of a relevant job function
critical incidents job analysis technique
job experts describe stories of good and poor performance to identify desirable and undesirable competencies, behaviors, etc.
structured interview technique
job experts provide information about the job during a structured interview
human resource strategy
links the entire human resource function with the firm's business strategy
vision
long-term goals regarding what the organization wants to become and accomplish describing its image of an ideal future
code of conduct
specify expected and prohibited actions in the workplace and give examples of appropriate behavior
organizational culture
the norms, values, and assumptions of organizational members that guide members' attitudes and behaviors
span of control
the number of people reporting directly to an individual
mission
the organization's basic purpose and the scope of its operations
human resource management
the organizational function responsible for attracting, hiring, developing, rewarding, and retaining talent
ethics
the standards of moral behavior that define socially accepted behaviors that are right as opposed to wrong
total rewards
the sum of all of the rewards employees receive in exchange for their time, efforts, and performance
job rotation
workers are moved through a variety of jobs to increase their interest and motivation
unlawful employment practices
violations of federal, state, or local employment laws
Health and Safety
wellness, fire and food safety, ergonomics, injury management, disaster preparedness, etc.
unfair discrimination
when employment decisions and actions are not job-related, objective, or merit-based
fair discrimination
when only objective, merit-based, and job-related characteristics are used to determine employment-related decisions
HRM influences
1. what employees should do 2. what employees can do 3. what employees will do
three types of systemic errors
1. Omission errors 2. Remission errors 3. Commission errors
common ethical issues in HRM
1. Privacy Issues 2. Staffing 3.Layoffs and Downsizings 4. Rewards 5. Safety 6. Performance Appraisal 7. Labor Practices
Functions of HRM
1. Staffing 2. Health and Safety 3. Employee Management relations 4. Benefits and Rewards 5. Training and Development 6. Performance Management
2 broad areas HRM is responsible for
1. Talent/ Employees 2. Employement related legal compliance
Ethical dilemma resolution approaches
1. Utilitarian Standards 2. rights standards 3. fairness standards 4. common good standards 5. virtue standards
four common biases to equal employment
1. stereotyping 2. prejudice 3. perception of possible personal loss if a member of a previously advantaged group feels that diversity initiatives will hurt their own career prospects. 4. ignorance.
Helps manage 4 types of risks
1. strategic risks 2. operational risks 3. financial risks 4. compliance risks
safety
Deciding how to handle bullying; creating and enforcing safety and health policies; managing work stress and employee wellness
David Lewin
Developed the "dual theory of HRM and business performance" Determined that it was a mutually beneficial relationship.
seven elements of high performance work systems
Employment security Selective hiring of new talent Self-managed teams and decentralization of decision making as the basic principles of organizational design Comparatively high compensation contingent on organizational performance Extensive training Reduced status distinctions and barriers, including dress, language, office arrangements, and wage differences across levels Extensive sharing of financial and performance information throughout the organization
performance appraisal
Ensuring objectivity and fairness; avoiding the use of nonperformance factors in the performance evaluation
staffing
Handling pressure to hire a friend or family member; dealing with employees found to have faked their credentials during the hiring process; avoiding illegal discrimination
privacy issues
Keeping employees' and applicants' personal and medical information private; deciding on the appropriate use of employee surveillance (including via email and video cameras); maintaining confidentiality
rewards
Responding to pressure to classify a person into a job grade higher than they deserve in order to give them a raise; responding to pressure to give executives more generous incentives or benefits than is necessary; paying fair wages
workplace tort
a civil wrong in which an employer violates a duty owed to its customers or employees
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
commission errors
a failure to follow sound, established operational and ethical practices
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 their sex and race
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
omission errors
a lack of written rules
Strategic Planning
a process for making decisions about an organization's long-term goals and how they are to be achieved
action plans
a strategy for proactively addressing an expected talent shortage or surplus
talent philosophy
a system of beliefs about how an organization's employees should be treated
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
job enlargement
adding more tasks at the same level of responsibility and skill related to an employee's current position
Performance Management
aligning individual employees goals and behavior with organizations goals and strategies.
human resource planning
aligning the organization's human resources to effectively and efficiently accomplish the organization's strategic goals
reasonable accommodation
an employer is required to take reasonable steps to accommodate a disability unless it would cause the employer undue hardship
labor practices
using child labor; limiting working hours; exploiting workers; respecting human rights
independent contractor
an individual or business that provides services to another individual or business that controls or directs only the result of the work
scientific management
breaks work down into its simplest elements and then systematically improves the worker's performance of each element
trend analysis
using past employment patterns to predict a firm's future labor needs
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
code of ethics
decision-making guide that describes the highest values to which an organization aspires.
business strategy
defines how the firm will compete in its marketplace
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
Training and Development
developing employees capabilities through formal and informal activities
competitive advantage
doing something differently from the competition that leads to outperformance and success
inclusion
everyone feels respected and listened to, and everyone contributes to his or her fullest potential
job elements job analysis methods
expert brainstorming sessions identify the characteristics of successful workers
performance culture
focuses on hiring, retaining, developing, motivating, and making work assignments based on performance data and results
stereotyping
generalizing that everyone in a certain group shares certain characteristics or behaves in the same way.
replacement charts
graphically shows current jobholders, possible successors, and each successor's readiness to assume the job
protected classes
groups underrepresented in employment
corporate social responsibility
happens when businesses show concern for the common good and value human dignity.
high performance work systems
high involvement or high commitment organizations
outsourcing
hiring an external vendor to do work rather than doing it internally
task statements
identify in specific behavioral terms the regular duties and responsibilities of a position
succession planning
identifying, developing, and tracking employees to enable them to eventually assume higher level positions
staffing ratios
indexing headcount with a business metric
disparate treatment
intentional discrimination based on a protected characteristic
fraudulent recruitment
misrepresenting the job or organization to a recruit
Benefits and Rewards
need to be adequate and equitable and reward employees for their contribution to the organization. 3 types: 1. direct financial 2. indirect financial 3.non-financial
job characteristics model
objective job characteristics including skill variety, task identity, task significance, autonomy, and task feedback, lead to job satisfaction for people with a high growth need strength
adverse impact
occurs when an employment practice results in unintentional discrimination.
prejudice
outright bigotry
remission errors
pressure to make unethical choices
employee handbooks
print or online materials that document the organization's HRM policies and procedures
affirmative action
proactive efforts to eliminate discrimination and its past effects
Staffing
process of planning, acquiring, deploying, and retaining employees to support organizations mission.
Employee Management Relations
reflects societal beliefs about relationships between employees and capital owners
judgmental forecasting
relies on managers' expertise to predict a firm's future employment needs
non-financial 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
common law
the body of case-by-case court decisions that determines what is legal and what remedies are appropriate
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 by doing the most good or doing the least harm.
virtue standard
the ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc. "Is this action consistent with my best behavior?" e.g. companies recalling a product quickly after they find out it is dangerous
common good standard
the ethical action shows respect and compassion for everyone, especially the most vulnerable. e.g. making sure no child labor is being used
rights standard
the ethical action that best respects and protects the moral rights of everyone affected by the action, including the right to privacy, to be told the truth, or to be safe. e.g. if your boss tells you to clean up hazardous materials without proper gear you have the right to refuse to do that
fairness standard
the ethical action treats all people equally, or at least fairly, based on some defensible standard. e.g. making sure CEOs are not recieving 100s times more than the average worker
cross training
training employees in more than one job or in multiple skills to enable them to do different jobs
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 made 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
