HRMN 3420 Semester notes
HRMN 3420 Semester notes HRMN 3420
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Chapter 8: Performance Management and Appraisal Performance management: the process of identifying, measuring, managing, and developing the performance of human resource o Anything related to how we manage the performance of our employees Performance appraisal: is the ongoing process of evaluating and communicating employee performance o 3 uses: Administrative purposes Developmental Defense against discrimination o Also commonly used to establish the validity of selection tools. Standards for performance: Types of performance Information o Trait based o Behavior based o Results based Factors effecting relevance: o Deficient measures o Contaminated measures o Overemphasized measures Fundamental attribution error – the natural tendency to attribute behavior to internal causes and to not give adequate consideration to potential external causes Chapter 7: Training, Learning, Talent Management, and Development Training: is the process of teaching employees the skill necessary to perform a job Employee development: is ongoing education to improve knowledge and skills for present and future jobs within the firm Steps in developing a training program o Asses the needs for training and development First assess needs at the organizational level Evaluate training at the individual level Lastly, look at whats going on at the job level o Select how to shape behavior through training and development o Designing the training and development o Delivering the training and development o Assessing the training and development Challenges to the training process o Unprepared workforce o Return on investment/cost justification o Resistance to change and employee insecurity o Strategic congruence o Scheduling Overcoming training challenges o Have to make sure we assess learner readiness Learner readiness is accessed in 4 ways Ability to learn Motivation to learn Perceived utility/value Self-efficacy Important to access these early on in a training effort because it will tell you if employees are going to accept or resist the training effort Learning theories: o Classical conditioning How people learn involuntary behavior Ex: dog and bell o Operant conditioning How people learn voluntary behavior Basic theory is that people behave a certain way because of the consequences of their actions 3 types of consequences: Positive reinforcement – based on perception of employee Negative reinforcement – removing a negative stimulus to encourage a desired behavior Punishment – apply something negative to discourage behavior o Flemming learning styles Visual- individuals prefer to have material provided in a visual format such as graphs and charts Auditory – individuals prefer to learn information based on hearing that information Tactile- prefer to physically perform a task in order to learn Training delivery o Internal o External Reasons: time, lack of expertise needed Media Richness theory: Transfer of training o Taking content and applying it to the job itself over a period of time Increasing the transfer of training o On the job training: Training- very job specific Development: more of a competency development that can be applied to multiple jobs and situations Chapter 9: Rights and Employee Development Rights: that which belongs to a person by law, nature, or tradition o Statutory rights: Rights that are derived from the law; either state, local, federal, etc. Examples: Equal employment law o Contractual rights: rights that are based on a specific contract that exists between employees and employers Often, the courts will accept an applied contract as well, if it can be proven (usually based on some document, like an employee handbook) Common rights that employees have: o Right to privacy o Right to free speech o Right to life and safety o Right to freedom of conscience o Right to free consent o Right to due process o Also, employment-at-will Management rights: o Employment-at-will o Orientation period o Drug testing o Workplace monitoring What is employment-at-will? o Employers have the right to hire, fire, demote, or promote as they choose, unless there is a law or contract to the contrary o Employees have the right to quit and get another job under the same constraints Employment-at-will doctrine is not present in all states, but Alabama does recognize employment-at-will 3 main exceptions to employment-at-will o Public policy exception An employment related decision cannot be made if you are asked to do something illegal 43 states that recognize this exception. Alabama IS NOT one of the 43 states o Implied contract exception Doesn’t necessarily have to be a signed contract from both parties 38 states that recognize this exception Alabama IS one of the 38 o Good faith/fair dealing exception An organization must have just cause for making an employment related decision, and they must allow for due process 11 states that recognize this exception Alabama IS one of the 11 Dealing with problem employees: o Take a progressive discipline approach (depending on the severity of the incident) o Termination: is necessary when an employee cannot be made into a productive member of the workfoce Often when an employee is terminated, they have to sign a separation agreement (the employee agrees not to sue the organization at a later date in return for some sort of benefit Gross negligence Serious misconduct Chapter 11: Compensation management o Costly o Makes up 65-70% of total production cost o Affect attracting and retaining employees, motivation Compensation- motivate employees over an extended period of time o Low valence- don’t value the reward o Poor instrumentality – o Poor expectancy- effort wont effect performance o Inputs- what you are bringing to a job o Outcomes – taken away from the job o Comparison to others – compare inputs and outcomes with others Equity Theory- internal and external process Philosophies o Entitlement Based on an additional year in an organization should result in a pay increase o Performance Pay limited to performance target FSLA – Fair Labor Standards Act o Minimum wage o Child labor provisions – if 14-15, you can work if it’s out of school and not dangerous, 16-17 non dangerous, 18 + no restrictions o Sets guidelines regarding overtime pay Exempt/non exempt Non exempt -> entitled to overtime pay Exempt: Currently minimum of $23,660 will be $50,440 Payed on a salary basis Job described as professional, admin, executive, outside sales Based on internal data: o Point-Face – objectively breaking down job into compensable factors and applying points to each factor based on the jobs level of difficulty Chapter 12: Incentive Pay Incentives (Variable Pay) o Compensation that depends on some measure of individual performance or results in order to be awarded o Characteristics of effective variable pay plans: Rewards the appropriate (ethical) actions Properly administered o Why variable pay plans fail: Because they don’t possess this 3 characteristics o Categories of variable pay plans Individual Piece-rate systems Bonuses Special incentive programs (trips, merchandise, awards) Sales compensation Group/team Group team results Gainsharing/goalsharing Quality improvement Cost reduction Organizational Profit sharing Employee stock plans executive stock options Deferred compensation Incentive Pay o Individual incentives work best on jobs that require autonomy o Group incentives work best when people need to cooperate Profit sharing o Primary objectives: Increase productivity and organizational performance Attract or retain employees Improve product/service quality Enhance employee moral o Drawbacks: Disclosure of financial information Variability of profits from year to year Profit results not strongly tied to employee efforts Stock Option Plans o Employees have the right to purchase a fixed number of stocks at a fixed price for a fixed amount of time Employee stock ownership plan (ESOP) o An organization maintains an account with shares of stock in, employees who have worked for an organization for a certain amount of time can use pretax dollars to buy from that account at a slightly discounted rate Dodd-Frank Act o Allowed shareholders to vote on compensation packages and golden parachute again (severance agreement) o Each company is required to disclose the ceo’s total compensation and the total median compensation of all employees and the ratio o All public firms must provide annual information on the relationship between executive compensation and the total shareholder return Chapter 13: Employee Benefits Benefit – an indirect reward given to an employee or group of employees for organizational membership Employee benefits from a strategic perspective: o Influence employee decisions o Cost o Affects investment decisions Statutory benefits o Workers comp is not statutory in all states o Social security – old age, survivors and disability insurance (OASDI) programs Retirement Disability and survivor benefits 6.2% of fed payroll tax (both employee and employer pay this) o Medicare – national healthcare program for the elderly or disabled 1.45 % of federal payroll tax (both employee and employer) o Workers’ compensation – provides medical treatment and temporary payments to employees who are injured on the job or become ill because of their job. Insurance policy that is taken out by employer Depends on work and history of workers comp claims Usually receive 2/3 or normal pay rate o Unemployment insurance – federal program managed by each state; provides payments for a fixed period to workers who lost their jobs Funded by fed and state taxes Can receive up to 26 weeks of pay at roughly 50-80% or normal pay rate (DURING NORMAL ECONOMIC PERIODS) o Family and Medical Leave Act of 1993 (FMLA)- unpaid leave that employers must provide to eligible employees when they or immediate family members are faced with medical issues Up to 12 weeks to deal with personal or family medical situation o Patient Protection and Affordable Care Act (Obama care) Requires all employers with more than 50 employees to provide health insurance for employees or face significant penalties by the federal government Organization Fined 2000/employee, but the first 30 are exempt Individual fined 695/person, ½ of that per child, or 2.5 AGI, whichever is hired Full time is defined as 30 hours per week under the PPACA o Consolidated Omnibus Budget Reconciliation Act (COBRA) – requires employers to offer to temporarily maintain health insurance on individuals who leave their employment Up to 18 months o Health Insurance Portability and Accountability Act (HIPPA) – if an employee had group health insurance at a previous employer and if the new employer has health care coverage, the firm is required to provide the opportunity to participate in their health insurance plan Voluntary benefits o Group health insurance Traditional health care plans- typically cover a set percent of fees for medical services Health maintenance organization (HMO)– a managed care program that provides both health maintenance service and medical care Lot more restrictive Have to visit in network providers Generally have to have referral to see specialized provider Much more affordable Typically no deductible Preferred provider organization (PPO) A hybrid between traditional fee-for-service plans and HMOs Health or medical savings accounts(HAS/MSA) allow employers and employees to fund a medical savings account from which employees can pay medical expenses with pretax dollars Retirement benefits Are not mandatory, but if provided, the firm must comply with ERISA provisions Defined benefits plan provides the retiree with a specific amount and type of benefit that will be available when the individual retires Defined contribution plan identifies only the amount of funds that will go into a retirement account, not what the employee will receive upon retirement A 401k retirement plan is a savings investment account for individual employees of corporations; a 403b retirement plan is similar but it is used for nonprofits o Administration of benefits: Flexible benefit (cafeteria) plans – employees choose from multiple options Ch10: Employee and Labor Relations Union: a formal association of worker that promotes the interests of its members through collective action Why do people unionize? o They’re dissatisfied with their treatment, and believe that through collective action, conditions will improve There has been a steady decline in union membership o Why? There are now laws in place that regulate workplace treatment There has also been a shift from a manufacturing economy to a service economy Common Labor Laws o National labor relations act (Wagner Act) Right of unions and workers Allowed people to unionize without fear of losing their jobs or being influenced by management o Taft-Hartley Act Rights of management Attempt to balance some of the power given to employees by Wagner Act o Landrum-Griffin Act Rights of union members in their unions Unions were required to publish their financial reports and required to provide a bill of rights to each member The union organizing process o Initial organizing activities o Signing authorization cards If 30% or employees do not sign, the process ends Just to see if employees are interested in hearing what the union has to say o Determining bargaining unit o Election If fewer than 50% vote for the union, the process ends o Certification Management Rights during unionization efforts o No unionization on company time o Management has the right to clearly state their position on unionization o Change agreements and use of non-union employee representation Union Decertification Collective Bargaining process: o Mediators: expected to keep the negotiation going o Arbitrators: make a binding decision The negotiation process: o Plan the negotiation o Negotiation o Postpone o Agreement What is HR Management? o Activities designed to effectively manage human capital? Activities include: hiring, firing, legal, etc Every manager is in some form or fashion, an HR manager RBV – Resource based view o Says that every asset/resource that an org possesses can be evaluated in terms of 4 characteristics, and if they have those 4 characteristics it can help to est a competitive advantage Valuable Rare Inimitable Non-substitutable General mental ability – the most consistent evaluation of performance HR Management Roles: o Administrative Paperwork (payroll, benefits, disciplinary documentation) o Operational and Employee Advocate Serve as bridge between employees and management o Strategic Come up with plans to effectively leverage human capital to accomplish organizational goals Chapter 2: Strategy Driven Human Resource Management Strategy and strategic planning- o Deals with looking at the organization and its environment o It involves a current evaluation and a forecast of what is expected in the future o Strategic management attempts to bridge the gap between where we are today and where we want to be in the future Strategic planning: o Everything is driven by the organization’s mission. o Whatever strategic decision HR makes, must be driven by the organization’s mission Organizational culture Common types of strategies o Cost leadership o Differentiation o Focus or niche Forecasting methods o Regression – mathematical Workforce size = dependent or y variable Know how to interpret r^2 value (the percentage of variation in our dependent variable that can be explained by our independent variables) Determine if the x variables are significant ( look at p value column, and compare it against whatever standard we have – we will always use a p value standard of .05 – if our reported P value is below that standard, we have a significant relationship Use coefficients to make predictions/forecast (see forecasting demand excel spreadsheet) Workforce size = 37.38 + 4.04 + 1.28 WS = intercept +intercept for New customers + intercept for sales To get 20 new customers, $30 k sales o = 37.38 + 4.04(2)+128(30) o So I would predict that I would need about 84 people in order to achieve these strategic goals Predict workforce size if we have 5 new customers, 5 new products, and 50 k in sales using regression example (from different problem than above) 12+8(5)+5(5)+2(50)=177 Forecasting period o Short term- less than 1 years o Long term- greater than 5 years o Intermediate- between 1 and 5 years Forecasting external HR supply o Have to look at things like graduation rates.. Forecasting internal HR supply o Have to look at things like retirement, etc Chapter 3: The Legal Environment and Diversity Management The role of HR in equal employment- to come up with strategies and activities to avoid discriminatory situations Nature of Equal Employment Opportunity o Equal Employment Opportunity – blind to differences approach aka everyone is treated the same o Discrimination – recognizing those differences o Protected Category – those protected under the law Disability, pregnancy, veterans, elderly, gender, race, religion, marital status Illegal Employment Discrimination o Protected Category Members Disparate Treatment (intent of policy) Knowingly excluding a protected class group, or knowingly using an individual’s membership in a protected class group to disqualify them o Example: different standards for different people Disparate Impact (outcome of policy) Unintentional discrimination against a protected class group How to check for disparate impact: o The 4/5ths rule: Example: Females 100 applied 25 selected rate 25% Males 100 45 45% o .45(.8)=.36 o If its above, no evidence, if below do have evidence o In this example we do have evidence of adverse impact Example: Minorities 50 2 4% Non minorities 200 13 6.5% .065(.8)=.052 or 5.2% Yes, there is adverse impact Major Employment Laws: o The Civil Rights Act (CRA) of 1964 Under this law, you cannot discriminate based on race, gender, color, religion, or national origin. Applies to orgs involved in interstate commerce, with 15 or more employees who work 20+ weeks a year New concepts: Disparate treatment/Impact Pattern or practice- organizations that have pattern or history of discrimination Bona Fide Occupational Qualification (BFOQ) – the main defense that an organization can take if they are met with a disparate treatment lawsuit o Example: catholic schools can choose to only hire Catholics, because it will affect the essence of that business Business necessity- ways orgs can defend themselves against a disparate impact case o Example: police departments: predominately made up of males, a lot of times there is violation of 4/5ths rule, police departments say certain physical requirements (which eliminate a higher proportion of women than men) is a business necessity. Job relatedness- ways orgs can defend themselves against a disparate impact case o Civil rights act of 1991 Allowed the courts to award both compensatory and punitive fines to victims of discrimination For a disparate treatment case (Individual) – initial burden of proof o Individual must show that they are a protected class o Met qualifications o Rejection o Position remained open For a disparate treatment case (organization)- burden of proof shifts to organization o BFOQ o Or qualification of the applicant Back to individual – bofp shifts back to individual Disparate Impact Case (ind) – bofp o 4/5ths rule Disparate impact (org) – burden of proof shifts o Business necessity o Job relatedness Back to individ- burden of proof shifts o Show that org used alternative method o Equal pay act of 1963 Ways an organization can justify gender wage differentials Performance difference Seniority o Age Discrimination in Employment Act At what age are you protected from discrimination? 40 years old o Pregnancy Discrimination Act Pregnancy has to be treated as any other type of medical condition o Family and Medical Leave Act (FMLA) Employees are entitled to 12 weeks of unpaid leave to deal with a family or personal emergency o Americans with Disabilities Act (ADA) of 1990 as Amended in 2008 Prohibits discrimination based on disability and applies to virtually all employers with 15 or more employees Disability is any condition that significantly limits life activities o Recovering substance abuser (as long as it legal) As long as the individual can perform the essential job functions, organizations cannot discriminate against them An organization is also expected to make reasonable accommodations that might help that individual perform essential job functions better Equal Employment Opportunity Commission o Role – o Employee Rights -employee must bring complaint within 180 days, then the EEOC has 60 days to investigate and decide whether or not you have a case o Employer Prohibitions Employers are prohibited from retaliating against employees that bring a complaint before the EEOC o Sexual Harassment – fall under civil rights act of 1964 Two types: Quid Pro Quo – exchange of sexual favor for something in return Hostile Work Environment- any type of environment that is deemed uncomfortable o Courts don’t look at the intent, they just look at the outcome o Religious Discrimination – prohibited under Civil Rights act Similar to disabilities, organization is expected to make accommodations Affirmative Action o Why do organizations have affirmative action policies? Voluntary Government mandated Because organization has a history of discrimination If you have a certain level of government contracts o Theories as to why affirmative action is still needed Social identify theory ASA Framework Attraction Selection Attrition o Chapter 4 Notes: Matching people to jobs Why is it important? o Because of PJ fit (person/job fit) o Person’s KSA (knowledge skills abilities)= TDRs (what the job is asking them to due- task, duties, responsibilities) o How do we do this? Have to understand the person, the job, and the HR forecast Most basic way we can understand the job is by performing a workflow analysis o Identify inputs (raw materials that go into producing the output) o Identify Important activities (tasks and jobs) o Identify outputs (goods and services) When conducting a workflow analysis you want to start at the end- look at the outputs Job analysis: a very detailed assessment of each and every job in the organization o Process used to identify the work performed and the working conditions for each of the jobs within the organization Results include duties, responsibilities, sills, knowledge, required, outcomes, conditions under which a worker must operate, and other factors o Extremely important, because it lays the foundation for just about everything that HR does o What HR activities are impacted by jobs analysis: Training, recruiting, compensation, performance appraisals o Can be extremely time consuming, but lays the foundation for everything o Allows us to develop: Job description: describe the job – identify TDRs Job specification: focuses on what KSAs do qualified applicants need for that particular job Two main types of Job Analyses o Task-based job analysis : home depot example o Competency-based job analysis : ? Outcomes of job analyses: o Job design o Job ?? Skill variety- the extent to which a job requires a variety of skills – the higher the skill variety, the more meaningfulness of work Task identity – the extent to which a job produces a whole identifiable product of service- higher task identify the more meaningfulness of work Common strategies when redesigning jobs: ( in the hopes of affecting the core characterisitics) o Job simplification o Job expansion o Work teams HR forecasting/planning o Identifies the estimated supply and demand for the different types of human resources in the organization over some future period, based on analysis of past and ?? o Process: see powerpoint slide 13 “HR Forecasting” HR Forecasting: o Basic techniques: Trend analysis- not preferred, based on historical data, basically eyeballing Ratio analysis: also uses historical data, more accurate Example: sales per full time employee = $50k per Full time employee o If you predict you will have 5 mil in sales, how many employees do you need? Plug it in : 100 employees required Regression: even more preferred Forecasting availabilities: (whose available to us) o Take into consideration external environment o Internal availabilities Markov analysis- forecasts internal availabilities 2 main parts o Matrix A: simply tracking where people are from one point in time to a future point in time o Matrix B: the actual process we use to forecast availabilities. Multiply matrix A by current workforce Chapter 4 Continued: Matching Employees with Jobs Succession planning: is a type of forecasting which is done to: o Have people ready to move into vacated positions Chapter 5: Recruiting Job Candidates Main goal: generate interest in the organization First step in matching actual employees with specific jobs Recruiting can be thought of as a 3 step process o Generating- generating interest o Maintenance- need to design activities to maintain those positive attitudes o Influencing job choice – after offer is made When designing each of these have to decide: o Recruiting method o Recruiting message o Applicant qualifications o Administrative procedures Internal recruiting o Refers to filing job opening with current employees or people known by current employees How is it done? Referrals, promotability rankings or ratings, email Advantages of recruiting internally: Already familiar with the individual Boosts morale, shows employees they have the opportunity for advancement, faster Disadvantages of recruiting internally: Inbreeding effect – no new ideas, smaller applicant pool, still have some job that needs to be filled External recruiting: o The process of engaging individuals from the labor market outside the firm to apply for a job How is it done? Career fairs, recruitment agencies, social media Advantages: Increased diversity, new ideas Disadvantages Time consuming, employee has longer adjustment period, risk of making mistake by hiring someone who isn’t a good fit Effects of internet recruiting: o Adjusting to new recruiting approaches o Identifying new types of recruiting for specific jobs o Training for managers and HR recruiters Disadvantage of internet recruiting o Security concerns, overwhelming number of applications Legal issues in internet recruiting o The use or misuse of screening software o Collection of federally required applicant information o Exclusion of protected classes from the process o Proper id of real applicants o Maintaining confidentiality Recruiting evaluation methods: o Yield Ratio o Cost per hire o Time to hire Yield Ratio o See slide 12 Selection – the process of choosing an individual or multiple individuals with the qualifications needed for the job o Person – Job fit o Person – organization fit : am I going to support what the organization values in terms of goals, etc. Selection criteria: the characteristics a person must have in order to perform the job at a high level Predictors: visible or measurable indicators of our selection criteria EEOC publishes: o Uniform guideline on employee selection procedures This is an attempt to help organizations avoid discrimination in their selection system One of the things this document does is clearly define what qualifies as an employment test o Anything whether it be interview, test, etc that affects an employment related decision is considered an employment test and has to be evaluated in order to determine if it is discriminatory or not o Must be both valid and reliable Validity- refers to the quality of a measure Reliability – refers to the consistency of a measure (does it produce the same or similar results over time) Just because its reliable doesn’t mean its valid. But reliability is necessary for something to be valid. How do we access reliability and validity? o Test/retest reliability Comparing scores on a test at time one to scores on a test at time 2 o Reliability example (see excel sheet) When accessing reliability, you want a reliability of at least .7 (r=.70) and significant o Validity example Interested in whether or not SAT scores should be used for college admission Cutoff for validity is generally r=.3, and it has to be significant First step when selecting the candidate o Have to decide: Multiple-hurdle selection model: Minimum cutoff at each of your predictors Compensatory selection model An averaging approach of each of your predictors 2 ndconsideration: o How are you going to use applications: o Purposes of applications: Standard, record of interest Resumes can be considered as applications Cognitive ability is the most valid test across a variety of jobs Big 5 Personality Traits o Conscientiousness – the most valid predictor of performance o Openness to experience o Agreeableness o Extroversion o Emotional stability. 1. Which is not a major HR concern of small business a. Potential unionization efforts b. Shortages of qualified workers c. Compliance with government regulations d. Increasing benefits costs 2. Employers can check for disparate impact in all of the following except a. Candidates selected for interviews of those recruited b. Promotions c. Terminations d. Use of sick leave 3. The major provision of the pregnancy discrimination act of 1978 is that a. Pregnant employees are to be given 12 weeks family leave without pay b. Pregnant employees are to be given 12 weeks family leave with pay c. Maternity leave is to be treated the same as other personal or medical leaves d. Employers cannot discriminate against employees based on marital status 4. The ultimate authority in interpreting the EEO laws is a. The president b. The US supreme court c. The EEOC d. The congress 5. Morbid obesity is not considered as a disability under the ADA because this condition is under the individual’s power to change a. False 6. A policy of hiring people based on their race, age, gender and national origin in order to make up for historical discrimination. This is an example of a. Affirmative action b. Fair employment practices c. Institutional diversity d. The blind to differences approach 7. Which of the following is NOT a basis for protection under federal law a. Military experience b. Age c. Gender d. Sexual orientation 8. All employees legal to work in the US are protected by EEO Laws regardless of their citizenship a. True 9. The equal pay act requires that blacks and whites in the same jobs should receive the same pay a. False 10.________ discrimination occurs when a person or group engages in a sequence of actions over a significant period of time that is intended to deny rights provide by Title VII to a member of a protected class a. Patterned Bring scantron for exam (blue) Bring calculator 35 questions Chapters 1-3 Covers all articles as well Topics to focus on: Application questions of policies/definitions/etc Why HR is important- specifically on resource based view of the firm, and what that theory says about the importance of HR. Major issues that are facing HR (benefits increasing, government compliance, changes in workforce, etc) HR management roles, percentage of time spent on each of these roles and how its changed Relationship between HR and ethics Strategic function of HR Forecasting HR demands Regressions- 3 major things to know how to interpret (r^2 value, how to know if a variable is significant, know how to use coefficients to make predicitions) HR metrics- common characteristics of useful metrics EEO law and affirmative action Protected categories (only focused on federal law) Types of discrimination – disparate impact/treatment How organizations protect themselves from discrimination impact Discrimination laws- basic provisions and who is protected under these laws Test 1 Study Guide Application questions of policies/definitions/etc o Why HR is important- specifically on resource based view of the firm, and what that theory says about the importance of HR. o The resource based- view states that an organization can establish and maintain a competitive advantage by leveraging its resources Major issues that are facing HR (benefits increasing, government compliance, changes in workforce, etc) o Productivity o Job satisfaction o Turnover o absenteeism HR management roles, percentage of time spent on each of these roles and how its changed o Administration- paperwork (payroll, benefits, disciplinary documentation) Least amount of time (10%) o Operational and Employee Advocate- serve as bridge between employees and management 30% of time o Strategic- come up with plans to effectively leverage human capital to accomplish organizational goals 60% of time Relationship between HR and ethics o ________________________________________________________________________ ________________________________________________________________________ Strategic function of HR o Looks at the organization and its environment o Involves a current evaluation, and a forecast of what is expected in the future o Attempts to bridge the gap between where we are today and where we want to be in the future Forecasting HR demands o Forecasting periods: Less than one year = short term Greater than 5 years = long term Anything in between is intermediate o Forecasting supply: External: look at things like graduation rate (university) – basically, what is the supply going to look like based on the economy, population, etc Internal: Have to look at things like retirement (basically, what within the company is going to affect the already existing supply) Regressions- 3 major things to know how to interpret (r^2 value, how to know if a variable is significant, know how to use coefficients to make predicitions) o R^2 value= the percentage of variation in our dependent variable that can be explained by our independent variables o How to determine if the x variable is significant Look at p value column If the reported p value is below .5, it is significant Coefficients to make predictions – see excel sheet HR metrics- common characteristics of useful metrics EEO law o The EEOC is the primary enforcer of EEO laws o Individuals must file within 180 days, EEOC has 60 days to investigate o Employee Rights under the EEOC: Employees have a right to bring discrimination complaints against their employer Right to sue o Employer Prohibitions: Employer has the right to defend their organization using defenses such as BFOQ, business necessity, and job relatedness Employer does not have the right to retaliate against the individuals filing the action against them. Affirmative Action: o Can be mandated or required o Two situations where it is mandatory are: Under executive order if the company is a contractor to the federal government and receives more than $10,000 per year they are required to maintain an affirmative action program History of past discriminatory practices Protected categories (only focused on federal law) o Race o Gender o Sex o Veteran status o Disability o SEXUAL ORIENTATION IS NOT YET A PROTECTED CATEGORY Types of discrimination – disparate impact/treatment How organizations protect themselves from discrimination impact/treatment o BFOQ- bona fide occupational qualities – protects against disparate treatment A qualification that is absolutely required in order for an individual to be able to be successful in a particular job o Business necessity- used against impact Exists when a particular practice is necessary for the safe and efficient operation of the business o Job relatedness- used against impact Exists when a test for employment is a legitimate measure of an individual’s ability to do the essential functions of a job Discrimination laws- basic provisions and who is protected under these laws The primary responsibility of an HR manager is to assist in avoiding any discriminatory situations that can create legal, ethical, or social problems with employees, former employees, the community, or other stakeholders Title VII of the Civil Rights Act- o States that it is illegal for an employer to refuse to hire or to fire an individual based on the individual’s race color, religion, sex, or national origin Civil Rights Act of 1991 o Major changes: the addition of compensatory and punitive damages in case of intentional discrimination under Title VII Equal Pay Act o Requires that women who do the same job as men, in the same organization, to receive the same pay Defenses: seniority, merit, quantity, or quality of production Age discrimination act o Prohibits discrimination against employees aged 40 or older Pregnancy Discrimination Act o States that pregnancy should be treated the same as any other medical condition Family and Medical Leave Act o 12 weeks unpaid leave Americans with Disabilities Act o Prohibits discrimination based on disability o Who is disabled? Anyone who has a physical or mental impairment that substantially limits one or more major life activities, and a record of having such an impairment o Doesn’t matter if it is self-inflicted o Alcoholism counts- alcohol is a legal substance o Reasonable accommodation must be made the company o Disability must not be able to do the essential job functions Test 2 Review: 1. A ___________ is a characteristic that a person must have to do a job successfully a. Personality attribute b. Selection criterion- answer c. Essential element d. Predictor 2. If a test is not reliable, it can’t be valid a. True - answer b. False 3. Cognitive ability tests can be used even when such testing has a disparate impact, as long as the test has business necessity and is job related a. True - answer b. False 4. The purpose of a realistic job preview is to inform job candidates of the organizational realities of a job, so that they can more accurately evaluate their own job expectations 5. What is the purpose of pre-employment screening? a. To provide a realistic job preview and discourage potential applicants who would be dissatisfied with the job b. To determine if applicants meet the minimum qualifications - answer 6. The director of HR realizes that the KSAs currently used for hiring entry level engineers are outdated. In order to establish which KSAs are needed, a ___ is required a. Performance appraisal analysis b. Selection requirements study c. Job analysis - answer d. Test validation 7. What is the main reason to do a background check? a. Recruit new candidates b. Find potential medical problems c. Analyze physical strength d. Prevent negligent hires- answer 8. During selection, companies may pick and choose who they want to drug test a. True b. False - answer 9. _____ is the extent to which a test measures what it claims to measure a. Validity - answer b. Reliability c. Accuracy d. sincerity 10.Know how to do regression output predictor a. Intercept+ coefficient(x) + coefficient(y) 11.In the _____ interview, the interviewer might start with some preplanned questions and then finish with free-flowing conversation a. Tempered b. Reversed c. Semi structured - answer d. Pre patterned 12.What law gives employers the limited right to do credit checks? a. Civil rights act of 1964 b. Fair trade act c. Equal employment opportunity act d. Fair credit reporting act - answer 13.______ is a statistical technique that identifies the relationship between a series of variable data points for use in forecasting future variables a. Regression analysis - answer b. Markov analysis c. Ratio analysis d. Factor analysis i. REGRESSION FORECASTS DEMAND, MARKOV FORECASTS AVAILABILITY 14.A job specification tells what a person does in a job a. True b. False 15.If a job posting’s goal was to yield 20 applications and it yields 10 applications but only 5 of them have the basic qualification, what is the yield ratio a. 5:10 or 50% Topics to Study: 35-40 questions 1 question from each article Chapter 4: o Workflow analysis: Inputs, activities, outputs o jobs analysis process used to identify the work performed and the working conditions for each of the jobs within the organization Difference between Job description Job specification Types of job analyses: Task-based job analysis Competency- based job analysis o Job design – the process of identifying tasks that each employee is responsible for completing, as well as how those tasks will be accomplished o Job redesign – refers to changing the tasks or the way work is performed in an existing job o 5 characteristics model o HR forecasting Markov analysis – forecasting internal availabilities Ratio analysis Regression analysis Regression forecasts demand, markov forecasts availability o Action plans Surplus/deficit based on planning, how do we reconcile that gap? Surplus: downsizing, hiring freeze, wage decrease, etc Defecit: overtime, outsourcing, wage increase, etc. Chapter 5 o Recruitment o Advantages and disadvantages associated with internal vs. external recruitment o Advantages and disadvantages associated with internet recruiting o Legal issues related to recruitment o Evaluation metrics Yield ratios Chapter 6 o Selection process o Validity and reliability What it is How it affects accuracy o Common selection tests Big 5 personality Cognitive ability o Interview process Structured, semi structured, unstructured, and how it relates to validity o Common problems with interview process o Legal issues as it relates to selection Background checks Medical exams Drug tests o Standard error of measurement Test Review: 1. ______________ to evaluate training, HR professionals in an organization gather data on training and compare them to data on training at other organizations in the industry and of their size a. When using benchmarking b. When using the results approach c. Using the reaction level of trainees d. To use a cost benefit analysis i. There are two types of benchmarking, internal and external 2. Which of the following is an example of the administrative role of performance appraisal a. Measuring performance for the purpose of making pay decisions b. Identifying the organizations raining needs c. Identifying weaknesses to determine coaching needs d. Communicating feedback to the employee i. Development and defense against discrimination are the other two administrative roles 3. Employee development is the process of teaching employees the skills necessary to perform the present job a. True b. False 4. ______ Information identifies a subjective character trait of the employee such as attitude, initiative, or creativity a. Behaviorally anchored b. Personality factor c. Trait based d. Results oriented 5. Performance measures are said to be _______ if they include irrelevant job duties a. Subjective b. Unnecessary c. Contaminated d. Deficient 6. Unions can be decertified through an election process a. True b. False 7. Phrases such as “greeted customer within 10 seconds of customer’s entry into store” and “failed to greet customer until customer addressed employee” would be typical of a ____ performance appraisal method a. Management by objectives b. Ranking c. Behavioral rating scale d. Forced distribution 8. Taking away a negative consequence in response to a positive behavior is called positive reinforcement a. True b. False 9. Amber, a sales associate in a department store, was terminated for theft. Amber says she is innocent and that since she was not allowed to explain the situation and defend herself that ____ was violated. a. Progressive discipline b. Due process c. Just cause d. Employment at will 10.There is a standard form used with the management by objectives process a. True b. False 11.The _____ Act made certain anti-union actions by management unfair labor practices a. Railway Labor b. Landrum Griffin c. Taft Hartley d. Wagner 12.In the ____ method, the manager keeps a written record of both highly favorable and unfavorable actions in an employee’s performance during the entire rating period a. Paired comparisons b. Critical incident c. Essay d. Checklist Review: 35 Questions long Main differences between training and development Understand major challenges that face training efforts Learning theories (classical and operant conditioning) How to evaluate training (different levels- results based, behavior, attitude) Performance appraisals (different types of performance criteria, dimensions you can evaluate performance on) Common performance appraisal methods Common performance appraisal errors Rights that management and employees have Employment at will doctrine, what it says, exceptations to it, what protections does it provide Disciplinary approach and termination Labor unions Major labor union laws- there are 3 Provisions under each of these law Labor relations process (Certification and decertification) Management rights and limitations during the labor union certification process
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