MIE 330 FINAL REView

principle of effective incentive pay plans

- performance measures are linked to the organizations goals - employees believe they can meet performance standards -the organization gives employees the resources they need to meet their goals -employee value the rewards given -employees believe the reward system is fair -the pay plan takes into account that employees may ignore any goals that are not rewarded a complete plan for motivating and compensating employees has many components, from pay to work design to developing managers so they can exercise positive leadership

Chapter 10

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evaluating training

1. do you perform the task 2. how many times do you perform the task 3. to what extent do you perform difficult and challenging learned tasks

options for reducing a surplus

1. downsizing 2. pay reductions 3. demotions 4. transfers 5. work sharing 6. hiring freeze 7. natural attrition 8. Early retirement 9. Retraining

five major personality dimensions

1. extroversion - sociable, assertive, talkative 2. adjustment - emotionally stable, nondepressed, secure 3. agreeableness- courteous, trusting, tolerant, forgiving 4. conscientiousness - dependable, organized, perservering, thorough 5. inquisitiveness - curious, imaginative, artistically sensitive

standards for identifying ethical practices

1. first, in their relationships with customers, vendors, and clients, ethical and successful companies emphasize mutual benefits. 2. assume responsibility for the actions of the company 3. have sense of purpose or vision that employees value and use in their day to day work 4. fairness (greatest good for greatest number, respect for basic human right, fair and equitable)

selecting employee benefits

1. organizations objectives (check table on page 421) 2. organizations budget 3. the expectations of the organization's current employees and those it wishes to recruit in the future cafeteria style plan - a benefits plan that offers employees a set of alternatives from which they can choose types and amounts of benefits they want.

options for avoiding a shortage

1. overtime 2. temporary employees 3. outsourcing 4. retrained transfers 5. turnover reductions 6. new external hires 7. technological innovation

employees rights

1. right of free consent 2. right of privacy 3. right of freedom of conscience 4. right of freedom of speech 5. right to due process

job characteristics model

1. skill variety - job requires variety of skills to carry out task 2. task identity - job requires completely a whole piece of work from beginning to end 3. task significance - job has important impact on other lives 4. autonomy - job allows an individual to make decisions 5. feedback - the extent to which a person receives clear information about performance effectiveness

health maintenance organization (HMO)

A health care plan that requires patients to receive their medical care from the HMO's health care professionals, who are often paid a flat salary, and provides all services on a prepaid basis

Coach

A peer or manager who works with an employee to motivate the employee, help him or her develop skills, and provide reinforcement and feedback

organizational behavior modification (OBM)

A plan for managing the behavior of employees through a formal system of feedback and reinforcement

management by objectives (MBO)

A system in which people at each level of the organization set goals in a process that flows from top to bottom , so employees at all levels are contributing to the organization's overall goals, these goals become the standards for evaluating each employee's performance

Behavior observation scale (BOS)

A variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task

Employee Polygraph Protection Act

Act that makes it unlawful for employers to use polygraphs in employment decisions except for a few narrowly defined exceptions for "security-sensitive" positions.

responsibilities of human resource

Administrative services and transactions - handling administrative tasks efficiently and with a commitment to quality. This requires expertise in the particular tasks business partner services - developing effective HR systems that help the organization meet its goals for attracting, keeping, and developing people with the skills it needs strategic partner - contributing to the company's strategy through an understanding of its existing and needed human resources and ways HR practices can give the company a competitive advantage. Analysis and design of work, recruitment and selection, training and development, performance management, compensation and benefits, employee relations, personnel policies, employee data and infomration systems, compliance with laws, support for strategy

methods and sources for measuring performance

All the methods of performance measurement require decisions about who will collect and analyze the performance information. To qualify for this task, a person should have an understanding of the job requirements and the opportunity to see the employee doing the job. (360 degree performance appraisal) Managers - most used Peers - co-workers, can see performance supervisor may not subordinates - for the manager self - self ratings go along with others ratings Customers - customers rating on the spot

subjective judgment

An organization has to specify which aspects of performance are relevant to the organization. These decisions are based on:

retirement plan types - contributory and non-contributory

Contributory plan - reitrement plan funded by contributions from the employer and employee noncontributory plan - retirement plan funded entirely by contributions from the employer defined benefit plan - pension plan that guarantees a specified level of retirement income employee retirement income security act - federal law that increased the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability, and created the pension benefit guarantee corporation defined contributino plan - retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account. Money purchase plans - employer specifies a level of annual contributions. The contributions are invested, and when the employee retires, he is entitled to receive the amount of the contributions plus interest Profit-sharing and employee stock ownership plans - money goes into retirement plan. Section 401(k) plans - percentage of earnings and employers may make matching contributions. The amount of employees contribute is not taxed as part of their income until they receive it from the plan. These plans free employers from the risks that investments will not perform as well as expected. The responsibility for wise investing is with each employee. pension benefit guarantee corporation - federal agency that insures retirement benefits and guarantees retirees a basic benefit if the employer experiences financial difficulties. employers must make annual contributions of 35 per fund participant. If underfunded, have to pay more next year. Cash balance plans - retirement plan in which employer sets up an individual account for each employee and contributes a percentage of the employee's salary; the account earns interest at a predterimed rate

skills of HRm professionals

Credible activists cultural and change stweward talent manager/organizational designer strategic architect business allies operational executors

Principles of Justice

Distributive: outome fairness, a judgement that the the consequences given to employees are just. Everyone should know what to expect, Procedural: consistent procedures, avoidance of bias, accurate information, way to correct mistakes, representation of all interests, ethical standards Interactional Justice: explanation of decision, respectful treatment, consideration, empathy. Takes employee's feelings into account

legal requirements - FLSA, EPA and FMLA

Equal Employment opportunity - equal pay for equal work FLSA (fair labor standards act)- Federal law that establishes a minimum wage and requirements for overtime pay and child labor. Currently 7.25. Permits lower training wage which employers may to workers under the age of 20 for a period of up to 90 days. Overtime pay - any worked over 50 hours a week, gets one and a half times the employee's usual hourly rate, including any bonuses. (exempt and non exempt) Child labor-anyone younger than 18 prevailing wages - federal contractors must pay their employees at rates at least equal to the prevailing wages in the area. Basedo n 30% of local labor force FMLA (family and medical leave act) - federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee's own serious illness; or to take care of urgent needs that arise when a spouse child or parent in the nation guard or reserve is called to active duty equal pay act - if men and women in an organization are doing the same thing, the employer must pay them equally.

fair labor standards act (FSLA)

Federal law that establishes a minimum wage and requirements for overtime pay and child labor

employee retirement income security act (ERISA)

Federal law that increased the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability, and created the pension benefit guarantee corporation

Pay grade structure and scatter diagram

First start with data, than policy line, than decide non-key jobs, than determine what group of jobs make what, than maybe decide a range for those jobs, and than plot them together, and possibly rearrange them by conditions and relatively

development methods

Formal Education: Organizations may support employee development through a variety of formal educational programs, either at the workplace or off site. These may include workshops designed specifically for the organization's employees up to MBA programs. Assessment: collecting information and providing feedback to employees about their behavior, communication style, or skills. Information for assessment may come from the employees, their peers, managers, and customers. Identify strength and weaknesses Job Experiences: the combination of relationships, problems, demands, tasks, and other features of an employee's jobs. Using job experiences for employee development assumes that development is most likely to occur when the employee's skills and experiences do not entirely match the skills required for the employee's current job. Interpersonal Relationships: employees can also develop skills and increase their knowledge about the organization and its customers by interacting with a more experienced organization member. two types of relationships used for employee development are mentoring and coaching Assessment types: myers-briggs type indicator, assesement centers, benchmarks, performance appraisals Assessment Centers: multiple raters or evaluators evaluate employees' performance on a number of exercises. An assessment center is usually an off-site location such as a conference center. Primary use of assessment centers is to identify wheter employees have the personality characteristics, administrative skills, and interpersonal skills needed for managerial jobs. Also to see employees have the skills needed for working in teams. 360 Degree Feedback: performance measurement by the employee's supervisors, peer, employees, and customers. Often the feedback involves rating the individual in terms of work-related behaviors.

categories of incentive pay plans

Individual Group Organization

contamination

Information that is gathered in a performance appraisal but is irrelevant is referred to as

three labor relations management activities

Management goals are to increase the organization's profits. Managers tend to prefer options that lower costs and raise output. When an employer has recognized a union, management's goals continue to emphasize restraining costs and improving output. Managers prefer to keep their organization's operations flexible. In their labor relations, managers prefer to: Limit increases in wages and benefits, and Retain as much control

Self-Awareness and Personality

Myers-Briggs Type Indicator (Kiersey or Jungian Typology Test) Using the MBTI The most popular psychological inventory for employee development. This assessment identifies individuals' preferences for source of energy, means of information gathering, way of decision making and life style. 1. the energy dichotomy indicates where individuals gain interpersonal strength and vitality, measured as their deggree of introversion or extroversion. E gain energy through interpersonal relationships. I gain energy by focusing inner thoughts 2. the information-gathering dichotomy relates to the preparations individuals make before making decisions. Individuals with a sensing (s) preference tend to gather the facts and details to prepare for a decision. Intuitive (n) tend to focus less on the facts and more on possibilities 3. decision making - individuals differ in the amount of consideration they give to their own and others' values and feelings, as opposed to the hard facts of a situation. Individuals with thinking (t) preference try always to be objecive in making decisions. Individuals with a Feeling (f) preference tend to evaluate the impact of the alternative on others as well their own feelings 4. lifestyle - dichotomy describes an individual's tendency to be either flexible or structured. Individuals with a Judging (j) preference focus on goals establish deadlines and such. Perceiving (p) preference enjoy surprises, are comfortable with changing a decision and dislike deadlines 16 combinations

Myers-Briggs Type Indicator

Myers-Briggs Type Indicator, An attempt to sort people according to Carl Jung's personality types; it has 126 questions. Most people agree with their assigned type, as each trait has strengths. However, though it is widely used for job assessment, it probably is not well-suited for that purpose. 16 letters to assess

NLRA, Taft hartley, Landum Griffin

NLRA - federal law that supports collective bargaining and sets out the rights of employees to form unions union organizing joining a union, whether recognized by the employer or not going out on strike to secure better working conditions refraining from activity on behalf of the union taft hartley act mass picketing in such numbers that nonstriking employees physically cannot enter the workplace engaging in violent acts in connection with a strike threatening employees with physical injury or job loss if they do not support union activities during contract negotiations, insisting on provisions, provisions that employer may hire only workers who are union members or satisfactory, to the union, or working conditions to be determined by a group to which the employer does not belong terminating an existing contract and striking for a new one without notifying employer Also passed the right to work laws landrum-griffin act regulates unions actions with regard to their members, including financial disclosure and the conduct of elections. This law establishes and protects rights of union members. These include the right to nominate candidates for union office, participate in union meetings and secret-ballot electrons, and examine union's financial records

Union elections

NLRB is responsible for ensuring that the organizing process follows certains reps. consent election - the employer and the union seeking representative arrive at an agreement stating the time and place of the election, the choices included on the ballot, and a way to determine who is eligible to vote stipulation election - the parties cannot agree on all of these terms, so the NLRB dictates the time and place, ballot choices, and method of determining eligibility.

general and specific duties

OSH act states that each employer has a general duty to furnish each empoyee a place of employment free from recognized hazards that cause or are likely to cause death or serious physical harm. request an inspection have a representative present at an inspection have dangerous substances identified be promptly informed about exposure to hazards and to given access to accurate records regarding exposure.

communicating benefits to employees

Organizations must communicate benefits information to employees so that they will appreciate the value of their benefits. This is essential so that benefits can achieve their objective of attracting, motivating, and retaining employees. Employees are interested in their benefits, and they need a great deal of detailed information to take advantage of benefits.

Process of Human Resource Planning

Organizations should carry out human resource planning so as to met business objectives and gain a competitive advantage over competitors - Human resource planning compares the present state of the organization with its goals for the future - Then identifies what changes it must make in its human resources to meet those goals 1. forecasts of labor demand and supply 2. forecasts of labor surplus or shortage 3. goal setting and strategic planning 4. program implementation and evaluation

Types of pay for organizational performance (several)

Profits and their stock price. Profits result when an organization is efficiently providing products customers want at a price they apy. Can motivate employees to align their activities with the organization's goals. At the same time, linking incentives to the organizaiotn's profits or stock price exposes employees to a high degree of risk. Therefore these kinds of incentives pay are likely to be most effective in organizations that emphasize grown and innovation, which tend to need employees who thrive in a risk-taking environment. profit sharing - incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary. encourage employees to think more like owners. More likely to cooperate. If company isn't doing well, there isn't any incentive bonus to pass out. So safer Not proven to be effective yet. Stock ownership - actually makes employees part owners of the organization. Encourage to focus on organization as a whole. The drawbacks are similar to those as profit sharing. May not see the link to their actions and stock prices. The link between performance is harder to appreciate because the financial benefits mostly come when the stock is sold. Stock options - rights to buy a certain number of shares of stock at a specified price. They are offered a stock at a certain share. IF the stock price rises over the year, they can exercise their right and sell their stock at the point, and make a profit from the original number. If it drops below it, they don't have to exercise employee stock ownership plan - an arrangement in which the organization distributes share of stock to all its employees by placing it in a trust. Regular receive reports. Could take away significant value

purposes of performance management

Strategic purpose - effective performance management helps the organization achieve its business objectives. It does this by helping to link employees' behavior with the organizations goals. Measures each employees performance to identify where those expectations re and are not being met. Can only achieve its strategic purpose when measurements are truly linked to the organization's goals and when the goals and feedback about performance are communicated administrative purpose - refers to the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs developmental purpose - serves as a basis for developing employees' knowledge and skills. Even employees who are meeting expectations can become more valuable when they hear and discuss performance feedback

Performance Management

The process through which managers ensure that employees' activities and outputs contribute to the organizations goals

errors in performance management

Types of errors 1. People often tend to give a higher evaluation to people they consider similar to themselves 2. If the rater compares an individual, not against a objective standard, but against other employees, *contrast errors* occur. A competent worker may be lowered since he works with an above average worker 3. raters make *distributional errors* when they tend to use only one part of a rating scale. The error is called leniency when the reviewer rates everyone near the top, strictness when the rater favors lower rankings, and central tendency when the rater puts everyone in t he middle of the scale. 4. Raters often let their opinion of one quality color their opinion of others. Halo error is favorable because one quality. And horns is negative because one negative quality. Ways to reduce error: 1. train them using a script which leads them to error, and correct them why its wrong. 2. study actual examples of performance to bring out various performance dimensions and the standards for those dimensions.

occupational saftey and health act

U.S. law authorizing the federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate

Pay during Military Duty and executives

Uniformed services employment and reemployment rights act (USERRA) - requires employers to make jobs available for their workers when they return after fulfilling military duties for up to five years. Some pay the difference between what the military pays, and what their salary was. Some policies help as well pay for executives - average ceo with company earning of 5 mil makes 400,000. Most ceo compensation takes the form of performance related pay such as stock and bonus. To assess the fairness of this ratio, equity theory would consider not only the size of executive pay relative to pay for other employees but also the amount the CEO contribute. An organization executives potentially have a much grater effect on the organization's performance than its lowest-paid employees have. But they do not seem to contribute over 200 times more.

implementing and evaluating HR Plan

When implementing the HR strategy, the organization must hold some individual accountable for achieving the goals Must have authority and resources needed progress reports not just look at actual numbers but should also identify which parts of the planning process contributed to success or failure

positive feedback

Which of the following actions is best suited to improve the performance of a highly skilled employee who lacks motivation?

cafeteria-style plan

a benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want

protean career

a career that frequently changes based on changes in the person's interests, abilities, and values and in the work environment

transitional matrix

a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period 1. "Where did people in each job category go"? 2. "Where did people now in each job category come from?"

strike

a collective decision by union members not to work until certain demands or conditions are met

readiness for training

a combination of employee characteristics and positive work environment that permit training

balanced scorecard

a combination of performance measures directed toward the company's long - and short-term goals and used as the basis for awarding incentive pay

balanced scorecard

a combination of performance measures directed toward the company's long and short term goals and used as the basis for awarding incentive pay. would have financial goals to satisfy its stockholders, quality, and price related goals to satisfy customers, and efficiency goals to ensure better operations. Takes advantages of different incentive pay plans, it helps employees understand the organization's goals. exp: performance category, critical successful factors, base, target, stretch

total quality management

a companywide effort to continually improve the ways people, machines, and systems accomplish work

workforce utilization reiew

a comparison of the proportion of employees in protected groups with the proportion that each group represents in the relevant labor market

reengineering

a complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality

learning management system

a computer application that automates the administration, development, and delivery of training programs Being used by organizations to carry out the instructional design process more efficiently and effectively

human resource information system

a computer system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to an organization's human resources

virtual reality

a computer-based technology that provides an interactive, three dimensional learning experience

disparate impact

a condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities

psychological contract

a description of what an employee expects to contribute in an employment relationship and what the employer will provide the employee in exchange for those contributions

unemployment insurance

a federally mandated program to minimize the hardships of unemployment through payments to unemployed workers, help in finding new jobs, and incentives to stabilize employment

unemployment insurance

a federally mandated program to minimize the hardships of unemployment through payments to unemployed workers, help in finding new jobs, and incentives to stabilize employment. provides payments to offset lost income during involuntary unemployment, and helps them find new jobs. Funding comes from federal and state taxes on employers. Different levels of income depends on how much owed. The size of the unemployment insurance tax imposed on each employer depends on the employer's experience rating - the number of employees the company laid off in the past and the cost of providing them with unemployment benefits to receive benefits you have four conditions: 1. they meet requirements demonstrating they had been employed (often 52 weeks) 2. they are available for work 3. they are actively seeking work. this requirement includes registering at the local unemployment office 4. They were not discharged for cause, did not quit voluntarily, and are not out of work because of a labor dispute.

progressive disciple

a formal disciple process in which the consequences become more serious if the employee repeats the offense

scanlon plan

a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard

pay policy line

a graphed line showing the mathematical relationship between job evaluation points and pay rate

Preferred provider organization (PPO)

a health care plan that contracts with health care professionals to provide services at a reduced fee and gives patients financial incentives to use network providers

procedural justice

a judgment that fair methods were used to determine the consequences an employee receives

outcome fairness

a judgment that the consequences given to employees are just

interactional justice

a judgment that the organization carried out in actions in a way that took the employee's feelings into account

sabbatical

a leave of absence from an organization to renew or develop skills

job specification

a list of the knowledge, skills, abilities, and other characteristics that an individual must have to perform a particular job

job description

a list of the tasks, duties, and responsibilities that a particular job entails

criterion-related validity

a measure of validity based on showing a substantial correlation between test scores and job performance scores

benchmarks

a measurement tool that gathers ratings of a manager's use of skills associated with success in managing

exit interview

a meeting of departing employee with the employees supervisor and/or HR specialist to discuss the employee's reasons for leaving

bonda fide occupational qualification

a necessary qualification for performing a job

training

a planned effort to enable employees to learn job-related knowledge skills and behavior

job satisfaction

a pleasant feeling resulting from the perception that one's job fulfills or allows for the fulfillment of one's important job values

benchmarking

a procedure in which an organization compares its own practices against those of successful competitors Pay surveys Trade and industry groups Professional groups Bureau of Labor Statistics (BLS) Society for Human Resource Management (SHRM) WorldatWork

organization analysis

a process for determining the appropriateness of training by evaluating the characteristics of the organization

person analysis

a process of determining individuals' needs and readiness for training

role analysis technique

a process of formally identifying expectations associated with a role

instructional design

a process of systematically developing training to meet specified needs. 1. assess needs for training 2. ensure readiness for training 3. plan training program -objectives, trainers,methods 4. implement training program-principles of learning, transfer of learning 5. evaluate results of training

yield ratio

a ratio that expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next

employee assistance program

a referral service that employees can use to seek professional treatment for emotional problems or substance abuse

flextime / job sharing

a scheduling policy in which full-time employees may choose starting and ending times within guidelines specified by the organization a work option in which two part-time employees carry out the task associated with a single job

nondirective interview

a selection interview in which the interviewer has great discretion in choosing questions to ask each candidate

outplacement counseling

a service in which professionals try to help dismissed employees manage the transition form one job to another

job withdrawal

a set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally

Job withdrawal

a set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally. results when circumstances such as the nature of the job, supervisors, and co-workers, pay levels or the employees own disposition cause the employee to become dissatisfied with the job

employee wellness program (EWP)

a set of communications, activities, and facilities designed to change health-realted behaviors in way that reduce health risks

core ceompetency

a set of knowledge and skills that make the organization superior to competitors and create value for customers

pay range

a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade

job

a set of related duties

position analysis questionnaire

a standardized job analysis questionnaire containing 194 questions about work behaviors, work conditions, and job characteristics that apply to a wide variety of jobs

role overload

a state in which too many expectations or demands are placed on a person

merit pay

a system of linking pay increases to ratings on performance appraisals

talent management

a systematic, planned effort to attract, retain, develop, and motivate highly skilled employees and managers

adventure learning

a teamwork and leadership training program based on the use of challenging, structured outdoor activities

simulation

a training method that represents a real life situation, with trainees making decisions resulting in outcomes that mirror what would happen on the job

assessment center

a wide variety of specific selection programs that use multiple selection methods to rate applicants or job incumbents on their management potential

appreticeship

a work-study training method that teaches job skills through a combination of on-the-job training and classroom training

pay differential

adjustment to a pay rate to reflect differences in working conditions or labor markets

rules for administering drug tests

administer the tests systematically to all applicants for the same job use drug testing for jobs that involve safety hazards Have a report of the result sent to the applicant, along with information about how to appeal the results and be rested if appropriate

equal employment opportunity commision

agency of the department of justice charged with enforcing title VII of the civil rights act of 1964 and other anti discrimination laws

change in the labor force

aging workforce - workers will rise by 10 million in the next ten years. Workers 55 and older are rising and the 16 to 24 are dropping. Challenges with aging workforce - control the rising costs of health care and other benefits, and many of tomorrows' managers will supervise employees much older than themselves. At the same time, organizations will have to find ways to attract, retain, and prepare the youth labor force. many generations, creates a need for understanding the values and work habits that tend to characterize each generation diverse workforce - The fastest growing of the category in 2020i sasian and other gropus, because these groups are experiencing immigration and birthrates above the national average. Ethnic category of hispanics is growing.Expected to be close to 19% of the total in 2020. Women are expected to increase to 47% of the workforce. The rate for guys is slowly decreasing. of the more than 1 million immigrants who come to the us legally each year, more than 6 out of 10 are relatives, another 14% work related visas. Many U.S. industries rely on immigrants to perform demanding work that may be low paid. Also tech jobs. Immigration laws seem to be a problem for HR self deficiencies of the workforce - mastery of a certain machine or strength is not as important as it used to be. More important is mathematical, verbal, and interpersonal skills, such as the ability to solve problems or be a part of the team.

legal

all selection methods must conform to existing laws and legal precedents Three acts have formed the basis for a majority of the suits filed by job applicants: 1. civil rights act of 1964 and 1991 - requirements on the choice of selection methods. employer that uses a neutral-appearing selection method that damages a protected group is obligated to show that there is a business necessity for using that method. prohibits preferential treatment in favor of minority groups. in the case of an organization using a test that tends to reject members of minority groups, the organization may not simply adjust minority applicants scores upward. 2. age discrimination in employment act of 1967 3. americans with disabilities act of 1991 - requires employers to make reasonable accommodation to disabled individuals and restricts many kinds of questions during the selection process. immigration reform and control act of 1986 - federal law requiring employers to veify and miantain records on applicants legal rights to work in the US They do this by having applicants fill out the form I-9 and present documents showing their identity and eligibility to work The law prohibits the employer from discriminating against the person on the basis of national origin or citizenship status

associate union membership

alternative form of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining

job evaluation

an administrative procedure for measuring the relative internal worth of the organization's jobs

competency

an area of personal capability that enables employees to perform their work successfully

employee stock ownership plan

an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust

leaderless group discussion

an assessment center exercise in which a team of five to seven employees is assigned a problem and must work together to solve it within a certain time period

assessment center

an assessment process in which multiple raters or evaluators evaluate employee's performance on a number of exercises, usually as they work in a group at an off-site location

american federation of labor and congress of industrial organizations

an association that seeks to advance the shared interests of its member unions at the national level

union steward

an employee elected by union members to represent them in ensuring that the terms of the labor contract are enforced

role conflict

an employee's recognition that demands of the jobs are incompatible or contradictory

reasonable accommodation

an employer's obligation to do something to enable an otherwise qualified person to perform a job

mentor

an experienced, productive senior employee who helps develop a less-experienced employee

standard hour plan

an incentive plan that pays workers extra for work done in less than a preset "standard time"

high performance work system

an organization in which technology, organizational structure, people, and processes work together seamlessly to give an organization an advantage in the competitive environment

sustainability

an organization's ability to profit without depleting its resources, including employees, natural resources, and the support of the surrounding community

affirmative action

an organization's active effort to find opportunities to hire or promote people in a particular group

human capital

an organization's employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight

training

an organization's planned efforts to help employees acquire job-related knowledge, skills, abilities, and behaviors, with the goal of applying these on the job

open-door policy

an organization's policy of making managers available to hear complaints

internal labor force

an organization's workers

HRM activities

analysis and designing of work Hr planning recruiting selection training and development compensation performance management employee relations

job analysis: definition and methods

analyzing jobs and understanding what is required to carry out a job provide essential knowledge for staffing, training, performance appraisal, and many other HR activities. Exp: supervisor's evaluation of an employee's work should be based on performance relative to job requirements importance 1. work redesign 2. human resource planning 3. selection 4. training 5. performance appraisal 6. career planning 7. job evaluation

recruiting

any activity carried on by the organization with the primary purpose of identifying and attracting potential employees Recruitment model - Job choice - recruiter traits and behaviors, personnel choices, recruitment sources...recruitment influences, vacancy characteristics, applicants characteristics, job choice recruitment policies - decisions about how it will carry out human resource management, including how it will fill job vacancies 1. internal versus external recruiting - promote within or fill upper level from the outside 2. lead-the-market pay strategies - pay more than the current market wages for a job, bonuses, or stock options 3. employment-at-will policies - 4. image advertising - advertising designed to create a generally favorable impression of the organization or position recruiting sources 1. internal sources - currently hold other positions in the organizations, job postings can happen. Internal sources also affects what kinds of people the organization recruits, well known, relatively knowledgeable about jobs vacancy, generally cheaper. 2. external sources - bring in people from outside the business, good for entry level or specialized upper level, people come in from direct applicants, referrals, advertisements, employment agencies, schools, and websites recruitment characteristics and behavior - persons characteristics and the way he or she behaves. Affects nature of both the job vacancy and the applicants generated. Some people think hr specialist is not informed, has to be warm, informative, and caring. downplay negative information. need a balance. provide timely feedback, avoid offensive behavior.

gathering background information

applicant forms resumes reference checks background checks

Human resources

are valuable, rare, cannot be imitated, no good substitutes

Glass ceiling

as if an invisible barrier is keeping women and minorities from reaching the top jobs, a barrier known as the "glass ceiling"

transfer

assignment of an employee to a position in a different area of the company, usually in a lateral move

promotion

assignment of an employee to a position with grater challenges, more responsibility, and more authority than in the previous job, usually accompanied by a pay increase

Downward move

assignment of an employee to a position with less responsibility and authority

realistic job preview

background information about a job's positive and negative qualities

Determining labor surplus or shortage

based on the forecasts for labor demand and supply, the planner can compare the figures to determine whether there will be a shortage or surplus of labor for each job category Determining expected shortages and surpluses allows the organization to plan how to address these challenges

arbitration

binding process in which a professional arbitrator from outside the organization (usually a lawyer or judge) hears the case and resolves it by making a decision

goals of labor unions

bor unions have the goals of obtaining pay and working conditions that satisfy their members and of giving members a voice in decisions that affect them. They obtain these goals by gaining power in numbers. Unions want to influence the way pay and promotions are determined. checkoff provision Contract provision under which the employer, on behalf of the union, automatically deducts union dues from the employees' paychecks. membership security - Closed shop Union shop Agency shop Maintenance of membership

corporate campaigns

bringing public, financial, or political pressure on employers during union organization and contract negotiation

glass ceiling

circumstances resembling an invisible barrier that keep most women and minorities from attaining the top jobs in organization

evidence-based HR

collecting and using data to show that human resource practices have a positive influence on the company's bottom line or key stakeholders

assessment

collecting information and providing feedback to employees about their behavior, communication style, or skills

Methods for Measuring Performance: Comparative, Attributes, Behaviors & Results

comparative - compare one individuals performance with another. (simple ranking and force distribution method). Fit with strategy is poor, unless manager takes time to make link. Validity can be high if done right, realiability depends on rater, but usually no measure of agreement used, acceptability is moderate and specificity is very low. attribute (ranking) - Low with fit with strategy, validity is usually low, reliability is usually low, acceptability is high, easy to develop, specificity is very low. (graphic rating scale, mixed-standard scale) behavioral - fit with strategy can be high, validity and reliability are high, acceptability is moderate, very high specificty (critical-incident method, BARS, BOS, organizational behavior modification) results - very high with strategy, high with validity and reliability, but with reliability depends on retesting, acceptability is usually high, specificity is high regarding results, but low with behaviors to change them. Measuring sales, costs, or productivity. (MBO) quality - very high with strategy, high for validity and reliability, high with acceptability and high with specificity with results but not behavior to change them. (TQM - subjective feedback as cooperation and initative, objective feedback based on the work process.

employee benefits

compensation in forms other than cash

electronic performance support system

computer application that provides access to skills training, information, and expert advice as needed

avatars

computer depictions of trainees, which the trainees manipulate in an online role-play

mediation

conflict resolution procedure in which a mediator hears the views of both sides and facilitates the negotiation process but has no formal authority to dictate a resolution

arbitration

conflict resolution procedure in which an arbitrator or arbitration board determines a binding settlement

construct validity

consistency between a high score on a test and high level of a construct such as intelligence or leadership ability, as well as between mastery of this construct and successful performance of the job

content validity

consistency between the test items or problems and the kinds of situations or problems that occur on the job

structured interview

consists of a predetermined set of questions for the interviewer to ask

trend analysis

constructing and applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year

checkoff provsion

contract provision under which the employer, on behalf of the union, automatically deducts union dues from employees' paychecks

outsourcing

contracting with another organization to perform a broad set of services

alternatives to job based pay: broad-banding/delayering, skill-based pay systems

delayering - Reducing the number of levels in the organization's job structure. More assignments are combined into a single layer. These broader groupings are called broad bands. More emphasis on acquiring experience, rather than promotions Skill-based system - Pay structures that set pay according to the employees' levels of skill or knowledge and what they are capable of doing. This is appropriate in organizations where changing technology requires employees to continually widen and deepen their knowledge.

job design how to

design for efficiency design for mental capacity - filtering information, clear displays and instructions, memory aids design for safety and health design for motivation - job enlargement, enrichment, teamwork and flexibility

Training vs development

development - indicates that it is future oriented. Development implies learning that is not necessarily related to the employee's current job. Instead it prepares employees for other jobs or positions in the organization and increases their ability to move into jobs that may not exist yet. Also help employees prepare for changes in responsibilities and requirements in their current jobs, such as changes resulting from new technology, work designs, or customers training - traditionally focuses on helping employees improve performance of their current jobs. Many organizations have focused on linking training programs to business goals. Focus: training - current Development- future Use of work experience: training - low Development - high Goal - preparing for current job, prepartion for change participation - required, voluntary

disparate treatment

differing treatment of individuals, where the differences are based on the indivdual's race, color, religion, sex, national origin, or disability status.

externship

employee development through a full-time temporary position at another organization

flexible spending account

employee-controlled pretax earnings set aside to pay for certain eligible expenses, such as health care expenses, during the same year

nonexempt employees

employees covered by the FLSA requirements for overtime pay

expatriates

employees who take assignments in other countries

knowledge workers

employees whose main contribution to the organization is specialized knowledge, such as knowledge of customers, a process, or a profession.Further complicating that challenge, many of these knowledge workers will have to be technoservice workers who not only know a specialized field such as computer programmer or engineer, but also must be able to work directly with customers. Knowledge workers are in a position of power because they own the knowledge that the company needs in order to produce its products and services, and they must share their knowledge and collaborate with others in order for their employer to succeed. Some people do not agree with this label because of computerized information and computer controlled production processes

employment at will

employment principle that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause

pension benefit guarantee corporation

federal agency that insures retirement benefits and guarantees retirees a basic benefit if the employer experiences financial difficulties

national labor relations board

federal gov agency that enforces the nlra by conducting and certifying representation elections and investigating unfair labor practices

family medical leave act (FMLA)

federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption, to care for a seriously ill family member or own, urgent needs for army. Also must guarantee these employees a same or a comparable job when they return to work. Does not cover less than one year of service, fewer than 25 hours a week, or are among the organizations top 10% highest paid.

family and medical leave act (FMLA)

federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee's own serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the national guard or reserve is called to active duty

Consolidated Omnibus budget reconciliation act (COBRA)

federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff, reduction in hours, or the employee's death

national labor relations act

federal law that supports collective bargaining and sets out the rights of employees to form unions

labor relations

field that emphasizes skills that managers and union leaders can use to minimize costly forms of conflict and seek win win situations to disagreements 1. labor relations strategy - the decision involves whether the organization will work with unions or develop nonunion operations 2. negotiating contracts - contract negotiations in a union setting involve decisions about pay structure, job security, work rules, workplace safety and others 3. administering contracts - day to day activities in which union members and the organizations may have disagreements

labor relations

field that emphasizes skills that managers and union leaders can use to minimize costly forms of conflict and seek win-win solutions to disagreements

Criteria for Effective Performance Management

fit with strategy - a performance management system should aim at achieving employee behavior and attitudes that support the organization's strategy, goals, and culture validity - the extent to which a measurement tool actually measures what it is intended to measure. Validity refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance. reliability - the consistency of the results that the performance measure will deliver. Interrater reliability is consistency of results when more than one person measures performance. Test-retest reliability refers to consistency of results over time acceptability - whether or not a measure is valid and reliable, it must meet practical standard of being acceptable to the people that use it (fairness, not to long) specific feedback - should specifically tell employees what is expected of them and how they can meet those expectations

incentive pay

forms of pay linked to an employee's performance as an individual, group member, or organization member

Incentive pay

forms of pay linked to an employee's performance as an individual, group member, or organization member. tie incentives based on their costs, expected influence on performance, profits, or other measures influential because the amount paid is linked to certain predefined behaviors or outcomes. Commission, bonus extra money.

material safety data sheets

forms on which chemical manufacturers and importers identify the hazards of their chemicals

gainsharing: scanion, Rucker, and improshare plans:

gainsharing - group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees. Gainsharing frees employees to determine how to improve their own and their group's performance. Keeps the performance measures within a range of activity that most employees believe they can influence. exp: 30000 gain, half company and half would be split among the employees in the factory. Knowing if they help the company be more successful, they're rewarded Succeeds with these: 1. management commitment 2. need for change or strong commitment to continuous improvement 3. management acceptance and encouragement of employee input 4. high levels of cooperation and interaction 5. employment security 6. information sharing on productivity and costs 7. goal setting 8. commitment of all involved parties to the process of change and improvement 9. performance standard and calculation that employees understand and consider fair and that is closely related to managerial objectives 10. employees who value working in groups scanlon plan - a gainsharing program in which employees receive a bonus in the ratio of labor costs to the sales value of production is below a set standard. rucker - cost saving worker incentive plan based on a formula that relates labor costs to labor's share of production costs, or to a standard such as an economic productivity index improshare - improved productivity through sharing. Group incentive plan aimed at reducing the cost of production. Workers share a fixed percentage of the savings resulting from production costs coming lower than a pre-established standard cost group bonuses adnt sam awards - usually for smaller work groups.

labor force

general way to refer to all the people willing and able to work global workforce - for today's and tomorrow's employers, talent comes from a global workforce. Organizations with international operations hire at least some of their employees in the foreign countries where they operate. They are looking for workers overseas they can pay less than the us workforce.

employee empowerment

giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service

gainsharing

group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees

communities of practice

groups of employees who work togehter learn form each other and develop a common understanding of how to accomplish things

vesting rights

guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer

uniform guidelines on employee selection procedures

guidelines issued by the EEOC and other agencies to identify how an organization should develop and administer its system for selecting employees so as not to violate antidiscrimination laws

patient protection and affordable care act

health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit

Affordable care act

health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit. challenged by 26 states, upheld on the major portions of the legislation requirements of insurance companies. a bunch of rules i hope we don't have to know children 26. under 25 company is tax credit stuff 50 or more do not do it have to pay pentaly

human resource planning

identifying the numbers and types of employees the organization will require to meet its objective

benefits required by law

importance of benefits - laws require employers to provide certain benefits. Also tax laws make it beneficial social security - flat payment tax on employees and employers unemployment insurance - payroll tax on employers that depends on state requirements and experience rating workers' compensation insurance - provide coverage according to state requirements Premiums depend on experience rating family and medical leave - up to 12 weeks of unpaid leave for childbirth, adoption, or serious illness health care - provisions of 2010 law phased through 2014 HMO, PPO, EWP

commissions

incentive pay calculated as a percentage of sales

profit sharing

incentive pay in which payments are a percentage of the organization's profits and do not become part of the employee's base salary

straight piecework plan

incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces

differential piece rates

incentive pay in which the piece rate is higher when a greater amount is produced

external labor force

individuals who are actively seeking employment

feedback

information employers give employees about their skills and knowledge and where these assets fit into the organization's plans

long-term disability insurance

insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for the rest of the employee's life

short-term disability insurance

insurance that pays a percentage of a disabled employee's salary as benefits to the employee for six months or less

behavioral description interview

interviewer asks the candidate to describe how he or she handled a type of situation in the past

Voluntary & Involuntary Turnover

involuntary turnover - when the organization initiates the turnover. Examples include termination. voluntary turnover - employees initiate the turnover. involuntary turnover - recruiting, selecting, and training, lost productivity, law suits, and workplace violence voluntary turnover - recruiting, selecting and training replacements, lost productivity, loss of talented employees

job stuff

job enlargement- broadening the types of tasks performed in a job job extension - enlarging jobs by combining several relatively simple jobs to form a job with a wider range of tasks job rotation - enlarging jobs by moving employees among several different jobs job enrichment - empowering workers by adding more decision-making authority to jobs

Job evaluation and Job evaluation methods

job evaluation - an administrative procedure for measuring the relative internal worth of the organization's jobs. Done by assembling a committee, consisting of people familiar with job. Compensable factors - factors company willing to pay for point manuals - published by trade groups and consultants key jobs - jobs that have relatively stable content and are common among many organizations, so it is possible to obtain survey data about what people earn in these jobs

Measuring Employee Attitudes: Job satisfaction, exit interviews

job satisfaction - a pleasant feeling resulting from the perception that one's job fulfills or allows for the fulfillment of one's important job values related to a person's values, "what a person consciously or unconsciously desires to obtain" Different employees have different views of which valeus ar important. 1. Hiring employees predisposed to being satisfied, referred depressed employees for help 2. designing complex, meaningful jobs. Establishing clear, appropriate roles 3. reinforcing shared values. encouraging social support. helping employees persue goals 4. setting satisfactory pay levels. communicating pay structure and policies exit interviews - a meeting of a departing employee with the employee's supervisor and a human resource specialist to discuss the employees reason for leaving.

elements of total financial compensation

job structure - consists of the relative pay for different jobs within the organization. It establishes relative pay among different functions and different levels of responsibility. exp: differecne in pay between an entry level position and manager. Pay level - average amount and bonuses the organization pays for a particular job. Together they make up the *pay structure*, that helps the organization achieve goals related to employee motivation, cost control, and the ability to attract and retain talented human resources. Typically, the amount a person earns depends on the individual's qualifications, accomplishments, and experience. Legal requirements - equal pay for equal work, minimum wage, overtime pay, restrictions on child labor (legal requirements notecard) market forces - product markets - organizations that offer competing goods and service. Cost of labor is significant to these companies. Place an upper limit is most important when labor costs are a large part of an organization's total cost labor markets - workers prefer higher paying jobs and avoid employers that offer less money for same type of job. competition for labor establishes the minimum an organization must pay to hire an employee for a particular job. organization's goals - high-quality workforce, cost control, equity and fairness - What they think employees in other organizations earn for doing the same job. What they think other employees holding different jobs within the organization earn for doing work at the same or different levels. What they think other employees in the organization earn for doing the same job as theirs. legal compliance pay rates - base pay directly correlates to market research pay grades - sets of jobs having similar worth or content, grouped together to establish rates of pay pay ranges - a set of possible pay rates defined by a max, min, and midpoint, of pay for employees holding a particular job or a job within a particular pay grade pay differentials - adjustment to a pay rate to reflect differences in working conditions or labor markets

occupation safety and health administration

labor department agency responsible for inspecting employers, applying safety and health standards, and levying fines for violation.

craft union

labor union whose members all have a particular skill or occupation

industrial union

labor union whose members are linked by their work in a particular industry

finding solutions

lack of ability - when a motivated employee lacks knowledge, skills, or abilities in some area, the manager may offer coaching, training, and more detailed feedback lack of motivation - managers with an unmotivated employee can explore ways to demonstrate that the employee is being treated fairly and rewarded adequately lack of both - performance may improve if the manager directs the employee's attention to the significance of the problem by withholding rewards or providing specific feedback

implementing the training program

learning permanently changes behavior. For employees to acquire knowledge and skills in the training program, the training program must be implemented in a way that applies what is known about how people learn. Equally important, implementation of a training program should enable employees to transfer what they have learned to the workplace-in other words, employees should behave differently as a result of training 1. principles of learning 2. transfer of training

exempt employees

managers, outside sales-people, and any other employees not covered by the FLSA requirement for overtime pay

fundamental HRM issues

managing performance, planning and administrative pay and benefits, maintain positive employee relations, establishing and administrative personnnel policies, ensuring compliance with labor laws, supporting the organization's strategy

calibration meting

meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors

Mentoring and Coaching

mentor - an experienced productive senior employee who helps develop a less experienced employee, called the protege. Most mentoring relationships develop informally as a result of interests or values shared by the mentor and protege. According to research, the employees most likely to seek and attract a mentor have certain personality characteristics, emotional stability, high needs for power and achievement. One major advantage of formal mentoring programs is that they ensure access to mentors for all employees, regardless gender or race. Mentoring tends to most successful wen they are voluntary and participants understand the details of the program coaching - a peer or manager who works with an employee to motivate the employee, help him or her develop skills, and provide reinforcement and feedback 1. working one-on-one with an employee, as when giving feedback 2. helping employees learn for themselves 3. providing resources such as mentors, courses, or job experiences

critical-incident method

method of performance measurement based on managers' records of specific examples of the employee acting in ways that are either effective or ineffective

forced-distribution method

method of performance measurement that assigns a certain percentage of employees to each category in a set of categories

paired comparison method

method of performance measurement that compares each employee with each other employee to establish a ranking

graphic rating scale

method of performance measurement that lists traits and provides a rating scale for each trait; the employer uses the scale to indicate the extent to which an employee displays each trati

behaviorally anchored rating scale (BARs)

method of performance measurement that rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance

simple ranking

method of performance measurement that requires managers to rank employees in their group from the highest performer to the poorest perfomer

mixed-standard scales

method of performance that uses several statements describing each trait to produce a final score for that trait

technic of operations review

method of promoting safety by determining which specific element of a job led to a past accident

alternative dispute resolution

methods of solving a problem by bringing in an impartial outsider but not using the court system

Alternative Dispute resolution

methods of solving a problem by brining in an impartial outsider but not using the court system 1. open door policy - an organization's policy of making managers available to hear complaints 2. peer review - process for resolving disputes by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute 3. mediation - nonbinding process in which a neutral party from outside the organization hears the case and tries to help the people in conflict arrive at a settlement 4. arbitration - binding process in which a professional arbitrator from outside the organization, hears the case and resolves it by making a decision

alternative work arrangements

methods of staffing other than the traditional hiring of full-time employees

offshoring

moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available

familiarity with the north american trade unions

national education association service employees inter nation union international brotherhood of teamsters american federation of state county and municipal employees united food and commercial workers american federation of teachers communication workers of america

steps in human resource planning

necessary to meet business objectives and gain an advantage over competitors. Clear idea of the strengths and weakness of existing labor force. Define number / kind of employees and what they want for the future 1. assimilation of organizational objectives 2. hr forecasting and problems in forecasting - determine supply and demand for various types of human resources. either statistical or judgement. Forecast for specific job categories or skill areas. Look for leading indicators - exmp: measures of economy, actions of competitors, changes in technology, trends in the composition of workforce. Supply calls for a detailed analysis of how many people are currently in various job categories or have specific skills within organization. Transitional matrix is used - chart shows job they held earlier and prportion where they went after that or not in organization 3. dealing with shortages and surpluses - with analysis, can determine if there will be a shortage or surplus of labor for each job category. Option for reducing surplus and shortage (look at other card) 4. transitional matrix 5. goal setting and strategic planning 6. implementing and evaluating the HR plan -

collective bargaining

negotiation between union representatives and management representatives to arrive at a contract defining conditions of employment for the term of the contract and to administer that contract

mediation

nonbinding process in which a neutral party from outside the organization hears the case and tries to help the people in conflict arrive at a settlement

leading indicators

objective measures that accurately predict future labor demand

social security act of 1935

old age insurance and employment insurance. Later added, survivors, disability, health. (OASDHI) - informally known as social security act. This program covers 90% of U.S. employers. Meet eligibility requirements receive the retirement benefits according to their age and earnings history. The amount raises if they wait to claim it.

Age discrimination in employment act

older workers sometimes are concerned that they will be the targets of discrimination, especially when a company is downsizing. Congress in 1967 passed ADEA which prohibits discrimination against workers who are over the age of 40. Courts usually uphold early retirement incentives and waivers as long as they were not coerced into signing the agreements.

transfer of training

on the job use of knowledge, skills, and behaviors learning in training can be measured by asking employees three questions about specific training tasks: 1. Do you perform the task 2. How many times do you perform the task 3. to what extent do you perform difficult and challenging learned taks

internship

on-the-ob learning sponsored by an educational institution as a component of an academic degree

tips for interviewing

organizations can reap the greatest benefits from interviewing if they prepare carefully. A well-planned interview should be standardized, comfortable for the participants, and focused on the job and the organizations. quiet place, ask objective questions, what to avoid, how to detect and handle his or her own personal biases

unions

organizations formed for the purpose of representing their members' interests in dealing with employers

Succession planning and succession planning process

organizations have always had to prepare for the retirement of their leaders, but the need is more intense than ever. As positions at the top of organizations become vacant, many organizations have determined that their middle managers are fewer and often unprepared for top-level responsibility. This situation has raised awareness of need for succession planning - the process of identifying and tracking high potentional employees who will be able to fill top management possitions when they become vacant. 1. selection of high potential employees 2. developmental experiences 3. active involvement with the CEO dveloping a succession plan 1. identify positions to plan for 2. identify employees to include 3. define job requirements 4. measure employee potential 5. review and plan to meet development needs 6. link succession planning with other HR systems 7. provide feedback to employees 8. measure the plan's effectivenessq

high performance work systems

organizations that have the best possible fit between their social system (people and how they intreat) and technical system (equipment and process) As the nature of the workforce and the technology available to organizations have changed, so have the requirements for creating a high-performancw work system.

optional benefits (many)

paid leave - most flexible approach employer pools personal days, sick days, and vacation days for employees to use as the needs arises Vacation Holidays Sick Leave Personal Days Floating Holidays Jury Duty Funerals Military Duty Time Off to Vote group insurance - medical insurance 70% of all full-time employees in the U.S. receive medical benefits Policies typically cover: Hospital expenses Surgical expenses Visits to physicians Additional coverage may include: Dental care Vision care Birthing centers Prescription drug programs mental health parity act 1996 - The law equates aggregate lifetime limits and annual limits for mental health benefits with aggregate lifetime limits and annual limits for medical and surgical benefits. (Typical caps for mental illness coverage are $50,000 for lifetime and $5,000 for annual, as compared with $1 million lifetime and no annual cap for other physical disorders.) The law covers mental illnesses (i.e., "mental health services," as defined under the terms of individual plans); it does not cover treatment of substance abuse or chemical dependency. The law applies only to employers that offer mental health benefits; it does not mandate such coverage. Life insurance - may provide or opportunity to buy. term life insurance - iif the employee dies during the term of the policy, the employee's beneficiaries receive a death benefit payment. Usually twice the employee's yearly pay. disability insurance - short term - insurance that pays a percentage of a disabled employee's salary as benefits to the employee for six months or less long term - insurance that pays percentage of a disabled employees salary after an initial period and potentially for the rest of the employees life usually 50-70%

processes that make incentives work

participation in decisions - in pay related decisions can be part of a general move toward employee empowerment. If employees are involved in decisions about incentive pay plans and employees' eligibility for incentives, the process of creating and administering these plans can be more complex. There is also a risk that employees will make decisions that are in their interest at the expense of the organization communication - demonstrates to employers that the pay plan is fair. Also, when employees understand the requirements of the incentive pay plan, the plan is more likely to influence their behavior as desired

pay structure: Pay policy line, Pay grades and ranges

pay structure should reflect what the organization knows about market forces, as well as its own unique goals and the relative contribution of each job to achieving them organizations typically apply the information by establishing some combination of pay rates, pay grades and pay ranges. Hourly wage, piecework rate, and salary pay rates- first they take market research of key jobs for pay. Determine salaries for non-key jobs within organization. Create a pay policy line, plots of points according to the job evaluation and pay rate for reach job. Reflects the pay structure in the market. A graphed line showing the mathematical relationship between job evaluation points and pay rate when job structure and market datda conflict, organizations have to decide on a way to resolve the two. One way is to stick with job evaluations. Or organization could base pay entirely on market forces. However has some drawbacks pay grades - group jobs, smilier content and worth, payment aligns with them. Drawback to pay grade, will result in rates of pay for individual jobs that do not precisely match the levels specified by the market and the organizations structure pay ranges - being able to pay the highest achieving employee in that group of jobs. use market rate or pay policy line as midpoint and than the range based on market surveys. Usually most common for white-collar jobs and for jobs not covered by union contracts. Usually pay ranges overlap red-circle rate - pay at a rate that falls above the pay range for the job green-circle rate - pay at a rate that falls below the pay range for the job Pay differentials - paying someone by relatively. Such as working night shift or be location.

skill-based pay systems

pay structures that set pay according to the employees' levels of skill or knowledge and what they are capable of doing

defined-benefit plan

pension plan that guarantees a specified level of retirement income

referrals

people who apply for a vacancy because someone in the organization prompted them to do so

direct applicants

people who apply for a vacancy without prompting from the organization

360 degree performance appraisal

performance measurement that combines information from the employee's managers, peers, subordinates, self and customers

job dissatisfaction

personal dispositions tasks and roles role ambiguity role conflict supervisors and coworkers pay and benefits

physical and psychological job withdrawal

physical - arriving late to the job, calling in sick, requesting a transfer, or leaving the organization all together, employees may withdraw by not actually working. psychological - primary dissatisfied with the job itself, the employee may display a very low level of job involvement. Doing well at work contributes to their sense of who they are, low job involvement, performing well or poorly does not affect the person's self concept. Organizational commitment may be low.

types of pay for individual performance

piecework rates - a wage based on the amount workers produced. used for above-average production volume. - straight piecework plan - incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces - differential piece rates - incentive pay in which the piece rate is higher when a greater amount is produced. studies show that production can increase by this incentive. Best suited for routinue, standardized jobs with output easy to measure standard hour plans -plan that pays workers extra for work done in less than a preset (standard time) - people work as fast as they can but not necessarily as careful or care as much about quality merit pay - a system of linking pay increases to rating on performance appraisals -predetermined grid which determines salary increase. - based on compa-ratio -split into pre-salary such as relatively low earnings but highest performer gets biggest salary increase compared to someone already making a lot - helps get paid for all aspects the company values -can become very expensive to the employer. makes assumptions that may be misleading. individual bonuses - employee must re-earn them during each performance period. adds flexibility with pay sales commissions - incentive pay calculated as a percentage of sales. - straight commission plan - straight commissions re common among insurance and real estate agents and car salespeople. No salary, only commissions. hard-drivig, ambitious, risk taking salespeople might enjoy the potential rewards of a straight commission plan.

planning the training program

planning begins with establishing objectives for the training program based on those objectives, the planner decides: -who will provide the training -what topics the training will cover -what training methods to use -how to evaluate the training

due-process policies

policies that formally lay out the steps an employee may take to appeal the employer's decision to terminate that employee

training methods

presentation methods: trainees receive information provided by others hands-on methods: trainees are actively involved in trying our skills group-building methods: trainees share ideas and experiences, build group identities, learn about interpersonal relationships and the group

hot-stove rule

principle of discipline that says disciple should be like a hot stove, giving clear warning and follwing up with consistent objective, immediate consequences

peer review

process for resolving disputes by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute

multiple-hurdle model

process of arriving at a selection decision by eliminating some candidates at each stage of the selection process

compensatory model

process of arriving at a selectoin decision in which a very high score on one type of assessment can make up for a low score on another

Progressive Discipline & Progressive Discipline responses

progressive disciple - a formal discipline process in which the consequences become more serious if the employee repeats the offense. exp: tardiness, absenteeism, unsafe work practices, poor quantity or quality of work, sexual harassment of co-workers, coming to work impaired unoffical spoken warning - offical written warning - 2nd written warning plus threat of temporary suspension - temporary suspension - termination responses - be clear about performance standards from the outset - in selection interviews follow a consistent process of responding when employees are accused of serious misdeeds don't think you're smoothing over a sitution or being nice by ignoring problem investigate as soon as complaint is filed when investigating compaint, record statements as much as possible, descriptions of problems should focus on behaviors, not personalities review the documentation to be sure it is clear and complete be honest about the discipline

Title VII

prohibits employers from discriminating against individuals because of their race, color, religion , sex or natinal origin. A employer may not use these characteristics for a reason not to hire them

myers-briggs type indicator

psychological tests that identifies individuals' preferences for source of energy, means of information gathering, way of decision making, and lifestyle providing information for team building and leadership development

Goal Setting and Strategic planning

purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organization's success in addressing labor shortages and surpluses Goals should come directly from the analysis of supply / demand

hourly wage

rate of pay for each hour worked

piecework rate

rate of pay for each unit produced

salary

rate of pay for each week., month, or year worked

Compa-Ratio

ratio of average pay to the midpoint of the pay range. Assuming the organization has pay grades, the organization would find a compa-ratio for each pay grade: the average paid to all employes in the pay grade divided by the midpoint for the pay grade. If the average equals the midpoint, the comp ratio is 1. More often, the comp-ratio is somewhat above 1.

work flow analysis

raw inputs - materials, data, and information are needed equipment - what special equipment, facilities, and systems are needed human resources - what knowledge, skills, and abilities are needed by those performing the tasks

e-learning

receiving training via the internet or the organization's internet

delayering

reducing the number of levels in the organization's job structure

summary plan description

report that describes a pension plan's funding, eligibility requirements, risks, and other details

executive order 11478

requires the federal government to base all its employment policies on merit and fitness.

concurrent validation

research that consists of administering a test to people who currently hold a job, then comparing their scores to existing measures of job performance

predictive validation

research that uses the test scores of all applicants and looks for a relationship between the scores and future performance of the applicants who were hired

contributory plan

retirement plan funded by contributors from the employer and employee

noncontributory plan

retirement plan funded entirely by contributions from the employer

cash balance plan

retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employees salary; the account earns interest at a predefined rate

defined-contribution plan

retirement plan in which the employer sets up an individual account for each employee and specifies the size of investment into that account

stock options

rights to buy a certain number of shares of stock at a specified price

four-fifths rule

rule of thumb that finds evidence of potential discrimination if an organization's hiring rate for a minority group is less than four-fifths the hiring rate for the majority group

job hazard analysis technique

safety promotion technique that involves breaking down a job into basic elements, then rating each element for its potential for harm or injury

giving performance feedback: Preparation and approaches

scheduling - regular, expected management activity. Frequent performance feedback is most effective when the information does not surprise the employee Preparing - should create the right context for the meeting. Location should be neutral. Should say role to discuss manager, employee and relationship between them. Let the employee to be well prepared. Ask for self assessment ahead of time. conducting - "tell and sell" - approach, managers tell the employees their ratings and then justify those ratings. Managers tell employees their ratings and then let the employees explain their side of the story "problem-solving" - approach managers and employees work together to solve performance problems in an atmosphere of respect and encouragement. Not surprisngly, research demonstrates that the problem-solving approach is superior. Tell and listen - managers tell employees their ratings and then let the employees explain their side of the story

panel interview

selection interview in which several members of the organization meet to interview each candiate

pay grades

sets of jobs having similar worth or content, grouped together to establish rates of pay

incentive pay for executives

short term - bonuses based on years profits, return on investment. long term - stock options and stock purchase plans balanced scorecard approach is useful in designing executive pay. combines measures of whether organization is delivering value to shareholders, customers, and employees. Regulators and shareholders have pressured companies to do a better job of linking executive pay and performance. The sec has required companies to more clearly report exec compesniion levels ethical issues - when linked to stock, executives need ethical backbone to be honest about their company's performance even when dishonesty or clever shading of the truh offers the tempting potential for earnings.

process of organizing

signing authorization cards petition for election election campaign election and certification

Comparable worth

some people have undervalued work performed by women, in particular, placing a lower value on occupations traditionally dominated by women. This policy uses job evaluation to establish the worth of an organization's jobs in terms f such criteria as their difficulty and their importance to the organization. The employer then compares the evaluation points award to each job with the pay for each job. If the job has similar evaluation points, they should be paid equally. Comparable-worth policies are controversial. From an economic standpoint, raising pay for some jobs places the employer at an economic disadvantage relative to employers that pay the market rate. Companies can defend themselves by paying the market rate

right to work laws

state laws that make union shops, maintenance of membership, and agency shops illegal

right to work states

state laws that make union shops, maintenance of membership, and agency shops illegal. The idea behind such laws is that requiring union membership or the payment of union dues restricts employees' right to freedom of association.

right-to-know laws

state laws that require employers to provide employees with information about the health risks associated with exposure to substances considered hazardous

workers' compensation

state programs that provide benefits to workers who suffer work-related injuries or illnesses, or to their survivors

worker's compensation

state programs that provide benefits to workers who suffer work-related injuries or illnesses, or to their survivors. these laws operate under a principle of no fault liability - meanignt hat an employee does not need to show that the employer was grossly negligent in order to receive compensation, and the employer is protected from lawsuits. He loses protection if he intentionally contributes to a dangerous workplace. about 9 out of 10 us workers are covered by state workers benefits fall into: 1. disability income 2. medical care 3. death benefits 4. rehabilitative services

workforce utilization

steps in a workforce utilization to review are identifical to the steps in the HR planning process

Supervisors in human resource management

support the activities of the other departments help definejobs motivate, support from pay, benefits, and other rewards forecast hr needs communicate policies provide training recommend pay increases and promotions interview and select candidates appraise performance

self-service

system in which employees have online access to information about HR issues and go online to enroll themselves in programs and provide feedback through surveys

cross training

team training in which team members understand and practice each other's skills so that they are prepared to step in and take another member's place

coordination training

team training that teaches the team how to share information and make decisions in obtain the best team peformance

change in employment relationship and the psychological contract

technology and other trends requires managers at all levels to make rapid changes in response to new opportunities, competitive challenger and customers demands. These changes are most likley to succeed in flexible, forward thinking organizations, and the employees who will thrive in such organization need to be as well. psychological contract - unspoken expectations taht are widely held by employers and employees. In the traditional version of this psychological contract, organizations expected their employees to contribute time, effort, skills, abilities, and loyalty for in return job security and opportunities for promotion.

cognitive ability tests

tests designed to measure such mental abilities as verbal skills, quantitative skills, and reasoning ability

aptitude tests

tests that assess how well a person can learn or acquire skills and abilities

achievement tests

tests that measure a person's existing knowledge and skills

EEO-1 report

the EEOC's Employer information report, which counts employees sorted by job category sex, ethnicity, and race

development

the acquisition of knowledge, skills, and behaviors that improve an employee's ability to meet changes in job requirements and in customer demands

office of federal contract compliance programs

the agency responsible for enforcing the executive orders that cover companies doing business with the federal government

teamwork

the assignment of work to groups of employees with various skills who interact to assemble a product or provide a service

forecasting

the attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be labor shortages or surpluses Three major steps to forecasting 1. forecasting the demand for labor 2. Determining labor supply 3. determining labor surplus or shortage

pay level

the average amount (including wages, salaries, and bonuses) the organization pays for a particular job

employee development

the combination of formal education, job experiences, relationships and assessment of personality and abilities to help employees prepare for the future of their careers

Employee Development

the combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers. Human resource management establishes a process for employee development that prepares employees to help the organization meet its goals

job experience

the combination of relationships, problems, demands, tasks, and other features of an employees jobs

equal employment opportunity

the condition in which all individuals have an equal chance for employment, regardless of their race, color, religion, sex, age, disability or national origin

organizational commitment

the degree to which an employee identifies with the organization and is willing to put forth effort on its behalf

employee engagement

the degree to which employees are fully involved in their work and strength of their job and company commitment

job involvement

the degree to which people identify themselves with their jobs

readability

the difficulty level of written materials

reliability

the extent to which a measurement is free from random error

validity

the extent to which performance on a measure is related to what the measure is designed to assess

utility

the extent to which something provides economic value greater than its cost

social security

the federal old age, survivors, disability, and heath insurance (OASDHI) program, which combines old age insurance, survivor's insurance, disability insurance, hospital insurance, and supplementary medical insurance for the elderly

ethics

the fundamental principles of right and wrong

situational interview

the interviewer describes a situation likely to arise on the job, then asks the candidate what he or she would do in that situation

minimum wage

the lowest amount that employers may pay under federal or state law, stated as an amount of pay per hour

experience rating

the number of employees a company has laid off in the past and the cost of providing them with unemployment benefits

stakeholders

the parties with an interest in the company's success

pay structure

the pay policy resulting from job structure and pay-level decisions

focus on strategy

the plan for meeting broad goals such as profitability, quality, and market share. downsizing - important challenge for employees was how to maintain a reputation as an employer of choice and how to keep employees engaged in their work and focused on the organizations goals. presents a number of challenges and opportunites for HRM. In terms of challenges, the hrm function must surgically reduce the workforce by cutting only the workers who are less valuable in their performance. Difficult to achieve, since the best workers and most able may find alternative employment. Early retirement programs may work, but you get rid of a group of people, not necessary the worst. Also have to boost and keep morale high expanding into global markets - companies are finding that to survive they must compete in international markets as well as fend off foreign competitors' attempts to gain ground in the United States. U.S. businesses must devellop global markets, keep up with competition from overseas, hire from an international pool, and prepare employees for global assignments. Offshoring* hiring in developing nations give employeers access to people with potential who are eager to work yet who will accept lower wages than elsewhere. expatriates - send employees to other countries. US companies must better prepare employees to work in other countries.

downsizing

the planned elimination of large numbers of personnel with the goal of enhancing the organization's competitiveness

human resource management

the policies, practices, and systems that influence employees' behavior, attitudes, and performance

outsourcing

the practice of having another company provide services

nepotism

the practice of hiring relatives

selection

the process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve their goal

grievance procedure

the process for resolving union-management conflicts over interpretation or violation of a collective bargaining agreement

work flow design

the process of analyzing the tasks necessary for the production of a product or service

job posting

the process of communicating information about a job vacancy on company bulletin boards, in employee publications, on corporate Internets, and anywhere else the organization communicates with employees

job design

the process of defining how work will be performed and what tasks will be required in a given job

job decision

the process of defining the way work will be performed and the tasks that a given job requires

performance management

the process of ensuring that employees' activities and outputs match the organizations goals

needs assessment

the process of evaluating the organization, individual employees, and employees taks to determine what kinds of training, if any are needed answer three questions 1. organization - what is the context in which training will occur 2. person - who needs training 3. task - what subjects should the training cover

job analysis

the process of getting detailed information about jobs

task analysis

the process of identifying and analyzing tasks to be trained for

succession planning

the process of identifying and tracking high-potential employees who will be able to fill top management positions when they become vacant

personnel selection

the process through which organizations make decisions about who will or will not be allowed to join the organization 1. screening applicants and resumes 2. Testing and reviewing work samples 3. interviewing candidates 4. checking references and background 5. making a selection

recruitment

the process through which the organization seeks applicants for potential employment

electronic human resource management

the processing and transmission of digitized HR information, especially using computer networking and the internet

job structure

the relative pay for different jobs within the organization

role

the set of behaviors that people expect of a person in a particular job

position

the set of duties performed by a particular person

core compensation: base pay and adjustments (no idea what to put so) issues in developing a pay structure

the size of the range depends on the details of the organization's competitive environment. If many workers are competing for a few jobs, employers will have more choice. Similarly, employers can be more flexible about pay policies if they use technology and work design to get better results form employees than their competitors do. Hourly wage Piecework rate Saalary

industrial engineering

the study of jobs to find the simplest way to structure work in order to maximize efficiency

self-assessment

the use of information by employees to determine their career interests, values, aptitudes, behavioral tendencies, and development needs

workforce analytics

the use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals

fact finder

third party to collective bargaining who reports the reasons for a dispute, the views and arguments of both sides, and possibly a recommended settlement, which the parties may decline

EEO laws and regulations

thirteenth amendment - abolished slavery fourteenth amendement - provides equal protection for all citizens and requires due process in state action civil right acts of 1866 and 1871 - grant all citizens the right to make, perform, modify, and terminate contracts, and enjoy all benefits, terms, and conditions of the contractual relationship equal pay act of 1963 - requires that men and women performing equal jobs receive equal pay. (employers engaged in interstate commerce) Title VII of CRA - forbids discrimination based on race, color, religion, sex, or national origin pregnancy discrimination act of 1978 - treats discrimination based on pregnancy-related conditions as illegal sex discrimination american with disabilities act of 1990 - prohibits discrimination against indivuals with disabilities Executive order 11246- requires affirmative action in hiring women and minoritie

work flow in organizations

through the process of work flow design, managers analyze the tasks needed to produce a product or service. with this information they assign these specific jobs and positions

Compensation system goals

to conduct a job evaluation, people identify each jobs compensable facts. Characteristics of a job that the organization values nd chooses to pay for. Experience Education Complexity Working conditions Responsibility

traditional vs protean career

traditional view - a career consists of a sequence of positions within an occupation or organization. For example, an academic career might begin with a position as a university's adjunct professor. It continues with appointment to faculty postions as assistant profession, associate and finally a full. Development for new levels protean career - one that frequently changes based on changes in the person's interests, abilities, and values and in the work environment. For example, an engineer might decide to take a sabbatical from her job to become a manger with engineers without border.

diversity training

training designed to change employee attitudes about diversity and develop skills needed to work these programs generally emphasize either attitude awarness or behavior changewith a diverse force

orientation

training designed to prepare employees to peform their jobs effectively, learn about their organizatoin, and establish work relationships The objectives of orientation programs include making new employees familiar with the organization's rules, policies, and procedures

team leader training

training in the skills necessary for effectively leading the organization's teams

action learning

training in which teams get an actual problem, work on solving i and commit to an action plan, and are accountable for carrying it out

on-the-job training

training methods in which a person with job experience and skill guides trainees in practicing job skills at the workplace effective: issue a policy statement describing purpose of OJT and emphasizing the organization's support for it.

experiential programs

training programs in which participants learn concepts and apply them by simulating behaviors involded and analyzing the activity, connecting it with real-life situations

involuntary turnover

turnover initiated by an employer (often with employees who would prefer to stay)

voluntary turnover

turnover initiated by employees (often when the organization would prefer to keep them)

role ambiguity

uncertainty about what the organization expects from the employee in terms of what to do or how to do it

disability

under the americans with disabilities act, a physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment, or being regarded as having such an impairment

what managesr shoudl do

understand the content of the training know how training relates to what you need employees to do in performance appraisals, evaluate employees on how they apply training to their job ensure that employees have the equipment and technology needed to use training recognize newly trained employees who use training content give employees release time from their work to attend training explain to employees why they have been asked to attend training give employees feedback related to skills or behavior they are trying to develop

union shop

union security arrangement that requires employees to join the union within a certain amount of time (30 days) after beginning employment

agency shop

union security arrangement that requires the payment of union dues but no union membership

closed shop

union security arrangement under which a person must be a union member before being hired; illegal for those covered by the national labor relations act

maintenance of membership

union security rules not requiring union membership but requiring that employees who join the union remain members for a certain period of time

sexual harassment

unwelcome sexual advances as defined by the eeoc. Quid pro quo harrassment - meaning that a person makes a benefit contingent on an employee's submitting to sexual advances. hostile working environment - someone's behavior in the workplace creates an environment in which it is difficult for someone to work

generalizable

valid in other contexts beyond the context in which the selection method was developed

Legal Requirements

wrongful discharge - discharge may not violate an implied agreement. Terminating an employee may violate an implied agreement if the employer had promised the employee job security or if the action is inconsistent with company policies. If it violates public policy. Discrimination - another benefit of a formal discipline policy is that it helps the organization comply with equal employment opportunity requirements. employees' privacy - the courts also have long protected individuals' privacy in many situations. At the same time, employers have legitimate reasons for learning about some personal matters, especially when behavior outside the workplace can affect productivity, workplace safety, and employee morale. notification of layoffs - because the organization determines that for economic reasons it must close a facility. Subject ot the Worker's adjustment Retraining and NOtification act which requires that organizations with more than 100 employees give 60 days notice before any closing or layoff that will affect at least 50 full time employees.