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Notes for Ch 1,2,3,15&4

by: Jess

Notes for Ch 1,2,3,15&4 MGMT 304

CSU Chico

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Learning Objectives for Ch 1,2,3,15&4
Human Resource Management
Management, business
75 ?




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This 9 page Bundle was uploaded by Jess on Wednesday August 10, 2016. The Bundle belongs to MGMT 304 at California State University Chico taught by Rahn in Fall 2016. Since its upload, it has received 10 views. For similar materials see Human Resource Management in Business at California State University Chico.


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Date Created: 08/10/16
st Learning Objectives for Exam 1; due Monday, August 1 , 11:59 PM (CH 1, 2, 3, 15 & 4) Key LO Text Notes Key Term Definition Example Chapter 1 (p. 31) 1-1 Traditional view of human resource management vs. the 21st century view. PAGE 7 Traditional View HRM 21 Century View HRM HRM is a cost center Productivity center ® Uses resources but no revenue ® Revenue generating function – provides organization with the right people, place & skills so productivity ↑ 1-2 Critical dependent variables (4) that managers must control in order to compete in a 21st century organization. PAGE 10 1. Productivity Output per input, human input = units of time 2. Job satisfaction Feeling of well-being & acceptance of our place in the organization 3. Turnover Permanent loss of workers Quit = voluntary | Fired = involuntary 4. Absenteeism Temporary absence of employees from the workplace ® Cost $30 billion in 1984 to $100 -150 billion in 2011 ® 1980 – Information Age ® The majority of jobs created in the US rq. Skills that only 20% of the workforce have ® Over 90% of the growth in US labor force in 2006 -2016 will be ages 55+ ® Hispanic 14% to 24% of workforce in 2050 ® Asians 4% to 8% ® Women % has stabilized at 47 -48% 1-3 Major HRM skill sets. PAGE 14 The ability to… 1. Technical Use methods & techniques to perform a task ® Knowledge of laws & rules ® Computer skills 2. Human relations Understand, communicate, & work well with individuals & groups through developing effective relationships; empathy 3. Conceptual & Evaluate a situation, identify & select an alternative, & implement a solution to the problem design ® “See the bigger picture” ® “Are we doing things we shouldn’t be?” 4. Business Provide analytical & quantitative skills ® In-depth knowledge of how the business works ® Budgeting & strategic planning processes necessary for a manager to underst and & contribute to the profitability of the organization 1-4 Line manager’s HRM responsibilities. PAGE 16 Major employment laws Must know so they don’t accidentally violate t hem in daily interaction with employees Labor cost controls Understand what they are legally & ethically allowed to do to control labor costs Leadership & motivation Most significant function of line managers = being leaders for people who work for them Training & development First to determine if workforce needs training ® Make changes to organizational processes Appraisal & promotion Primary evaluators for work performance Employee safety & security Primary responsibility for safety of workers ® Must know laws – occupational safety, health, security procedures 1-5 Major HRM discipline areas. PAGE 18 The legal environment: EEO & Deals with equal opportunity laws & regulations diversity management ® Management of a diverse population Staffing Job analysis, recruiting, selection Training & development Training, developing curricula & lesson plans, delivery of training courses ® Also: talent development Employee relations Coaching, counseling, discipline process ® Employee communication & stress management ® Job satisfaction & employee engagement o Google’s “Project Oxygen” analyzes what makes a better boss Labor & industrial relations Laws & regulations that control organization’s relationships with their work force ® Union-management contracts, e.g. union votes, grievances, contract negotiations, bargaining with union representatives Compensation & benefits Works with pay of various types & benefits package (designed to attract employees) ® Deals with federal & state compensation laws Safety & security Ensure safe environment Ethics & sustainability Minimize organization’s “footprint” on the environment Society for HR Management (SHRM) Largest & most recognized HRM advocacy org. in the US ® 250,000+ members HR Certification Institute (HRCI) One of most respected certifications 3 biggest certification programs Professional in HR (PHR) Senior Professional in HR (SPHR) Global Professional in HR (GPHR) Association for Talent Dev. (ATD) Certified Processional in Learning & Performance (CPLP) ® Broad-based, 10 areas in ATD Competency Model Human Performance Improvement (HPI) ® Better & faster at achie ving business goals WorldatWork Mainly compensation, benefits, performance management ® Certified Compensation Professional (CCP) ® Certified Benefits Professional (CBP) ® Global Remuneration Prof. (GRP) 1-6 Explain the practitioner’s model for HRM & how it applies to this book. PAGE 26 End Result = Organizational Success Chapter 2 (p. 70) 2-1 Major components of the external environment (9). PAGE 43 Customers Companies must continually improve products to create value for customers ® Turnaround effort at JCPenny: CEO Ron Johnson tried to bring in new customers , ignored core customer group (women over 40); removed as CEO after 18 mo. Competition Compete for customers, employees, sometimes suppliers ® Apple’s innovation Suppliers Firm performance is affected by suppliers, so develop close working relationships ® Japanese earthquake affected almost every auto industry Labor force Recruits available & the employees of an organization ® Living Social is a fast-growing company, recruited thousands of new workers in 2013 Shareholders Owners of a corporation (shareholders) influence management Society Pressures business for changes e.g. air or water pollution ® Pepsi pressured by Oxfam International to ID sugar suppliers & investigate suspected land grabs Technology Technologically savvy employees who can adapt to new processes ® Urbee by KOR Ecologic Economic No organization has control over economic growth, inflation, interest rates, foreign exchange rates, etc. Governments Create both opportunities & obstacles for businesses ® Pfizer, Noartis, & Merck can’t market drugs without FDA approval ® Allstate left state of MA because of unfavorable regulations 2-2 Major organizational factors (3) that affect our strategic options. PAGE 46 1. Strategy Plan of action to achieve a particular set of objectives 1. Where are we now? “Are we making a profit?” 2. Where do we want to go? “What do we want to look like?” 3. How do we plan to get there? 2. Organizational structure The way an organization groups its resources to accomplish its mission 3. Organizational culture Shared values, beliefs, & assumptions about appropriate behavior 2-3 Discuss how having a vision & mission helps organizations focus their resources. PAGE 48 Vision Fuzzy, not specific ® Don’t say how we’re going to do something ® “What do we want to become as an organization?” Mission Statement of what the various organizational units will do & what they hope to accomplish, in alignment with the vision ® “What do we need to do in order to become what we have envisioned?” Vision + Complete picture of what direction or ganization is expected to go in… FOCUS Mission ® Easier to achieve goals when every one is focused on the same thing Types of Strategies Cost Leadership Wal-Mart Differentiation Nike, Harley Davidson, Margaritaville, Coca Cola Focus or Niche Dr. Pepper Snapple Group’s 2 non-colas have a differentiated taste for a smaller target market Strategic Analysis SWOT Strengths, Weaknesses, Opportunities, Threats ® Company specific (internal) environment Porter’s Five-Forces External forces 1. Rivalry among competitors (Coke vs. Pepsi; Nissan vs. Toyota) 2. Threat of substitutes (iHeart Radio vs. Pandora) 3. Potential new enrants 4. Power of Suppliers 5. Power of buyers 2-4 Identify & describe the major components of organizational structure & why it is important to understand them. PAGE 56 The degree to which… Complexity Three types of differentiation exist within an organization – vertical, horizontal, spatial ® Microsoft: historically expensive structure ® Zappos: holacracy; no departments; wipes out V & H Formalization Jobs are standardized Centralization Decision making is concentrated at a single point (usually top) ® TEPCO criticized for complex bureaucratic decision making process 2-5 Describe organizational culture & how it affects the members of the organization. PAGE 59 ® Because org. culture is based partly on assumptions, values and beliefs the culture can control how people act within its boundaries. ® A, V, & B are strong influences, people will generally conform ® Cultural values push us to act in conformity Levels of Culture ∆ Artifacts (5) of Org. Culture Examples Level 1: Behavior 1. Heroes ® Steve Jobs, Apple “Visible level” ® Sam Walton, Wal-Mart ® Herb Kelleher, Southwest Airlines ® Frederick Smith, FedEx Level 2: Values & Beliefs 2. Stories Sam Walton visiting every Wal -Mart store “Invisible” 3. Slogans ® McDonald’s ® Quality, service, cleanliness, & value 4. Symbols Plaques, pens, jackets Level 3: Assumptions 5. Ceremonies Mary Kay: award dinners for top achievers 2-6 Describe human resource information systems (HRIS) & identify how they can help HR make decisions. PAGE 65 ® Interacting database systems that aim to generate & deliver HR info & allow us to automate some HRM functions ® Database management systems, designed especially for HR ® Make strategic planning quicker & e asier ® Daily decisions e.g. who to send to a specific training class ® Useful for considering promotions, transfers, team assignments, etc. 2-7 Identify the common measurement tools for strategic human resource management (HRM). PAGE 65 Economic Value Added Measure of profits that remain after the cost of capital has been deducted from operating (EVA) profits Return on Investment Measure of the financial return we receive because of something that we do to invest in our (ROI) organization or its people Balanced Scorecard Says that measurement of an organization’s success using purely financial measures is not (BSC) sufficient ® Also has to take into account nonfinancial measures designed to help the organization compete strategically ® Customer measures, internal process measures, learning & growth (or sustainability) measures HR Scorecard Most business use this 1. Identify HR deliverables 2. Identify HR system alignment through high performance work system 3. Aligning the system with company strategy 4. Identifying HR efficiency measures Chapter 3 (p. 110) 3-1 Describe the OUCH test & its four components & identify when it is useful in an organizational setting. PAGE 81 Objective Fact based & quantifiable Uniform in application Apply the same “tests” in the same ways Consistent in effect Ensure the result is not significantly different for different groups Has job relatedness Action must relate to the essential job functions 3-2 Identify the major equal employment opportunity (EEO) laws & the groups of people that each law protects. PAGE 83 Equal Pay Act of 1963 Women are paid equal to men for same work Title VII, Civil Rights Act of 1964 (CRA) Prohibits discrimination based on race, color, religion, sex or national origin Age Discrimination in Employment Act Prohibits age discrimination for people 40+, restricts m andatory of 1967 (ADEA) retirement Vietnam Era Veterans Readjustment Prohibits discrimination against Vietnam veterans by all employers with Assistance act of 1974 (VEVRAA) federal contracts or subcontracts of $100,000+ ® Requires that affirmative action be taken Pregnancy Discrimination Act of 1978 Treats such discrimination as unlawful sex discrimination (PDA) Americans with Disabilities Act of 1990 “reasonable accommodations” (ADA) Civil Rights Act of 1991 (CRA) Provides compensatory & punitive damages for discrimination Uniform Services Employment & Ensures civilian reemployment rights of military members who were Reemployments Rights Act (USERRA) called away from their regular (non -military) jobs by U.S. government orders Veterans Benefits Improvement Act of Amends USERRA to extend healthcare coverage while away on duty , 2004 (VBIA) requires employers to post a notice of benefits, duties, & rights of reemployment Genetic Information Nondiscrimination Prohibits discrimination based on genetic information Act of 2008 (GINA) Lilly Ledbetter Fair Pay Act of 2009 Amends 1964 CRA to extend the period of time an employee is allowed to (LLFPA) file a lawsuit over pay discrimination 3-3 Describe the three main types of discrimination in the workplace. PAGE 84 1. Disparate treatment When people in similar situations are treated differently because BFOQ of their membership in a protected class; intentional 2. Disparate impact When an officially neutral employment practice BFOQ or business disproportionately excludes the members of a protected group; necessity & job unintentional relatedness Intent does not matter 3. Pattern/practice Over an extended period of time, a person/group engages in a BFOQ (unlikely discrimination sequence of actions that is intended to deny the rights of a defense) member of a protected class by 1964 CRA; intentional 3-4 Discuss the organizational defenses against accusations of discrimination. PAGE 86 Bona fide occupational qualification Qualification that is absolutely required for an individual to be able to do (BFOQ) a job ® EEOC charged Exxon Mobil for firing pilots ages 60+ Business necessity Particular practice is necessary for the safe & efficient operation of the business ® Must be combined with a test for job relatedness Job relatedness For job relatedness to act as a defense, it has to be a business necessity 3-5 Briefly discuss the two major federal immigration laws & how they affect the workplace. PAGE 94 Immigration & Nationality Act of 1952 (INA) Allows employment of immigrants in certain jobs Immigration Reform & Control Act of 1986 (IRCA) Employers can’t knowingly hire undocumented workers 3-6 Briefly identify & discuss the major functions of the Equal Employment Opportunity Commission (EEOC). PAGE 96 ® Investigating & resolving discrimination complaints ® Gathering & compiling statistical information ® Running education & outreach programs 3-7 Discuss the differences among equal employment opportunity, affirmative action, & diversity. PAGE 98 Definition Governance Equal Employment Freedom from discrimination on the basis of sex, ® Federal & state employment laws Opportunity (EEO) color, religion, national origin, disability, & age ® Enforced by Equal Employment ® Narrow, specific requirements & prohibitions Opportunity Commission (EEOC) & state counterparts Affirmative Action Policies that broadly define situations in which Executive Orders, Federal Court orders, or actions should be taken to balance a workforce with voluntary its surroundings Diversity No legal requirement; designed to better serve a Organizational policies more diverse customer base Office of Federal Contract Compliance Programs (OFCCP) EO 11246, Sect. 503 of Rehab Act, & 1974 VEVRA 3-8 Identify the two primary types of sexual harassment. PAGE 103 Quid pro pro “This for that”; sexual favors exchanged for some benefit ® “If you do something for me, I will do something for you” ® “If you refuse to do something for me, I will harm you” Hostile work Speech or conduct is so severe & pervasive that it creates an intimidating environment or environment situation that negatively affects a person’s job performance Chapter 15 (p.583) 15-1 Discuss the term ethics, including common elements of the definition. PAGE 562 Common elements = morals, values, beliefs, & principles ® Need for personal integrity & trust in the character of another, or we won’t believe they will act ethically if they have an opportunity for self -enrichment at the expense of others Moral Development 1. Pre-conventional Chooses right & wrong based on self -interest ® Young child 2. Conventional Maintain expected standards of others ® Give in to peer pressure 3. Post-conventional Make an effort to define morals by themselves • People are more unethical when they believe they will not get caught • Unethical behavior is more likely when performance falls below aspiration levels • Whistle-blower 15-2 Briefly discuss each of the identified ethical approaches. PAGE 566 The Golden Rule Treat others how you wat to be treated Rotary’s four-way 1. Is it the truth? test 2. Is it fair to all concerned? 3. Will it build goodwill & better friendship? 4. Will it be beneficial to all concerned? ® If answers are yes, then the action = ethical Stakeholder If you are willing to have your decisions written on the front page of the newspaper, then it was approach ethical 15-3 Briefly discuss each factor required in a good code of ethics. PAGE 567 Values Define what the company is about & make it clear that the company is based on honesty & fairness ® Equality Principles Apply our values to specific situations to identify actions we consider ethical ® Treat all employees fairly Management support Critical because if senior managers do not pay attention to the code, others won’t either Personal Identifies that everyone is personally accountable for their own behavior & is expected to act responsibility ethically Compliance Identifies applicable laws & regulations that guide ethical behavior in specific industries 15-4 Discuss the terms authority, responsibility, & accountability & how they relate to ethical behavior. PAGE 568 Authority Positional right; allows person to give orders to oth ers in order to accomplish goals Responsibility Individuals accept their personal obligation to use the company’s resources effectively to reach goals Accountability Personal duty to use organization resources correctly, & if not, can be held personally liable for that misuse 15-5 Identify some of the common ethical issues that managers face in business. PAGE 570 Bribery Payments made to others to cause decisions that are favorable to the person providing the bribe Corrupt payments Made to allow the company to avoid scrutiny of their actions by govt . agencies Employment & Bias, child labor, forced labor, & other discriminatory labor practices personnel issues Marketing practices Dishonesty in marketing & hiding of safety & quality defects Impact on the economy Unethical activity by financial institutions can create bad economic outcomes, & other & environment organizational actions that don’t take the consequences of those actions into account can cause irreversible harm to the environment Employee & customer Personal privacy can be harmed by unethical actions o the part of company employees, privacy especially the use of databases with large amounts of personal info for unauthorized purposes 15-6 Briefly discuss the “business case” for corporate social responsibility (CSR). PAGE 572 ® CSR says that organizations have a duty to all stakeholders to operate in a manner that takes each of their needs into account ® The business case for CSR is based on the ability of the organization to help o r harm various stakeholder groups & of those stakeholder groups in turn to help or harm the company ® Each stakeholder group has different (sometimes competing) interests, but the organization must balan ce these “social responsibilities” among all of groups to succeed 15-7 Briefly describe the concept of sustainability in a business context. PAGE 576 Sustainability Meeting the needs of the current generation without compromising the ability of future generations to meet their own needs Sustainability in a business Business practices sustainability because so many resources are being overused to the context point where they cannot be replenished & will ultimately disappear ® Use performance eval. & ince ntive compensation Companies w/ Chief AT&T, DuPont, Google, Sun Microsystems Sustainability Officer (CSO) Companies w/dedicated ® Johnson & Johnson sustainability reports ® Weyerhauser Starbucks Encourages sustainable farming for its coffee growers Google Zero-carbon quest Amazon ® Reduced packaging & recycling ® Eco-friendly headquarters w/ LEED Problems with Sustainability 1. Org. resources Training 2. Raising awareness may engender optimism concerning the company’s ability to “solve the problem” 3. Solutions to sustainability problems may lie beyond the knowledge of org. members 4. Employee willingness to learn & change MIT Sloan Management 86% of companies say sustainability initiatives are necessary in order to be competitive Review in today’s markets Chapter 4 (p. 154) 4-1 Describe the process of workflow analysis & identify why it is important to HRM. PAGE 123 4-2 Identify the five major options available for the job analysis process. PAGE 126 1. Questionnaires Ask questions to help identify functions that are part of the job, then assign a point value to each function 2. Interview Verbal questions, answers compiled into a profile 3. Diaries Workers maintain a work log 4. Observation Observer shadows worker & logs tasks over time 5. Subject matter expert Knowledge of a set of jobs, helps identify the major tasks within those jobs (SME) 4-3 Discuss the four major approaches to job design. PAGE 132 1. Mechanistic Task specialization, skill simplification, repetition 2. Biological Minimizing physical strain on worker by structuring work environment around the way the body works 3. Perceptual- Make sure that workers remain within their normal mental capabilities & limitations motor ® Executive assistant job broken down into a report writer & scheduler job BC differ ent skill sets 4. Motivational Psychological meaning & motivational potential; views attitudinal variables as the most important outcomes of job design 4-4 Identify & briefly describe the components of the job characteristics model (JCM). PAGE 133 1. Skill variety # of diverse tasks that make up job & the # of skills used to perform the job 2. Task identity The degree to which an employee performs a whole identifiable task ® Does the employee put together an entire TV or just place the screen in the set? 3. Task significance Employee’s perception of the importance of the task to the others ® Organization, department, coworkers, customers 4. Autonomy Degree to which employee has discretion to make decisions in planning, organizing, and controlling the task performanc e 5. Feedback Extent to which employees find out how well they perform their tasks Experienced meaningfulness of First 3: Skill variety, task identity, task significance work Psychological state workers think their work has meaning Experienced responsibility for Autonomy outcomes Psychological state Knowledge of results Feedback Psychological feeling we get from knowing the results & that it creates satisfaction with the results of our work Outcomes All psychological states co llectively lead to the outcomes: motivation, performance job satisfaction, absenteeism, & turnover 4-5 Major tools for motivational job design (3). PAGE 135 1. Job simplification Eliminating, combining tasks &/or changing the work Task ID & significance sequence to improve performance ® Makes job more specialized ® Could make job less motivational if so simplified, worker gets bored 2. Job expansion Makes jobs less specialized ® Skill variety, task ID, & ® Rotation, significance ® Enlargement, enrichment ® Possibly feedback 3. Team-based job Gives team entire piece of work ® Skill variety, task ID, & design ® Form of job enrichment that can increase autonomy, significance (Integrated) task identity, task significance ® Possibly feedback (Self- managed) 4-6 Most common quantitative HR forecasting methods (3). PAGE 141 1. Trend analysis Look at historical trends ® If employment went up or down in a given year & how the number of employees related to revenue or productivity 2. Ratio analysis Calculates specific values by comparing a business factor with the number of employees needed 3. Regression Statistical technique in which we use a regression diagram made from historical data points to analysis predict future needs presented with a y & x axis. 4-7 Major options (7) for decreasing organizational numbers when faced with a labor surplus. PAGE 144 1. Layoff Terminating a group of employees to improve efficiency & effectiveness 2. Pay reduction ↓ rate of pay 3. Work sharing Cut hours available to each worker 4. Natural attrition ↓ employee numbers by not refilling jobs when turnover occurs 5. Hiring freeze Allow natural attrition, but also don’t create any new jobs, even if needed 6. Retraining & Allow us to lower the number of workers from one part transferring ® Will only work if we have too many employees in one type of job & too few in another 7. Early retirement Can be a valuable option ® Employees are given choice of leaving company before they would normally retire & in exchange will receive some benefits from the organization 4-8 Discuss the problems that need to be considered in offering an early retirement p rogram. PAGE 146 Early retirement Slow method of getting rid of people… problems ® Too many or too few people take early retirement offer ® Best people might take offer & then work for a competitor while people who are borderline or poor workers don’t ® People may perceive that they are being forced out ® Company vulnerable to discrimination charge 4-9 Major options (7) for overcoming a labor shortage. PAGE 148 1. Overtime Quickest & easiest way to fix a personnel shortage ® Best option until we are starting to stress workers too much 2. Temporary workers Quick method ® Can create problems 3. Retrain workers If we have a surplus of employees in another part of company 4. Outsourcing Outsource to someone outside the org. a whole function that we currently do in -house ® Outsource all computer -programming jobs to outsourcing co. that specializes in CPU programming 5. Reduce turnover If fewer people leave organization that predicted, we can reduce a projected shortage 6. Hire new employees Long process, slow method of resolving shortage. 7. Technological May help alleviate shortage if we can create machinery that can do human jobs innovation O*Net by US Dept. of Labor Employment & Training Adm. (DOLETA) 1. Worker characteristics 4. Occupational rq. 2. Worker requirements 5. Workforce char. 3. Experience rq. 6. Occupation-specific info


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