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All Class Notes 314
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Date Created: 10/12/15
Ch1 Managing Human Resources Book Notes 0 human resource management 0 the policies practices and systems that influence employees behaviors attitudes and performance I referred as having people practices I companies with effective HR 0 employees and customers tend to be more satisfied more innovative have greater productivity favorable reputation n 0 Figure 11 Human Resources Management practices I Strategic HRM for strong company performance Analysis and design of work i HR planning i Recruiting i Selection i Training and development i Compensation i Performance Management i Employee Relations 0 employers are resources of the employees 0 human capital I an organization s employees described in terms of their training experience judgement intelligance relationships and insights c not interchangeable gt eaisly erased o influence who works and how those people work gt basic measures of organization performance 0 figure 12 Tye f Human ICapital training a expedenoe jLiij iEmEm intelligence FE IEili EhiDE a insight HR management rganizational Performance Quality I Fr iiiabililfy ehav ier of human Capital 1 Customer Satisfaction motivation 39 m effort 3 0 Sustainable Competitive Advantage in reverse order of book 0 no good substitutes I well trained highly motivated to learn develop their abilities and care about customers 0 cannot be intimidated I to intimidate gt need to figure out which employees are providing the advantage and how 0 then recruit people who can do the same thing 0 rare I high levels of the needed skills and knowledge in not common 0 valuable I high quality employees 0 high performance work system 0 organization is which technology organizational structure people and processes work together seamlessly to give an organization an advantage in the competitive environment I technology changes gt keep up w it 0 high performance work system may include development of training programs recruitment of people with new skill sets establishments for rewards behavior teamwork flexibility 0 strong enough to weather the storm of recessions amp remain profitable Responsibilities of HR 0 2 full staff woker in HR for every 100 employees on payroll 0 ratio of HR employees to total employees in much higher in small organizations 0 HR has 3 department lines 0 Administration services and transactions I handling administrative tasks hiring answering questions about benefits efficiently and with a commitment to quality 0 Business Partner Services I Developing effective HR systems that help the organization meet its goals for attracting keeping and developing people with the skills itneeds o understand the business so it can understand what the business needs 0 Strategic Partner I 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 0 For strategic ideas to be effective HR people must understand the business its industry and its competitors I 2 areas of responsibility to support practices in figure 11 o 1 establishing and administering personnel policies 0 2 ensuring compliance w labor laws Analyzing and Designing Jobs 0 To produce their given product or service companies require a certain number of tasks to be completed 0 grouped in ways gt effectively 0 function involves the activities of I job analysis 0 process of getting detailed info aboutjobs I job design 0 process of defining the way work will be performed and the tasks that a given job requires I many companies have emphasized the use of narrowly defined jobs to increase efficiently 0 however greater concern for innovation and quality has shifted the trend to using more broadly defined jobs Recruiting and Hiring Employees 0 Recruitment 0 the process through which the organization seeks applicants for potential employment 0 Selection 0 refers to 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 its goals I add employees and transfers 0 Approaches vary 0 recruit from external sources college recruiting events internetjob posts I Others may rely on promotions from within applicants referred by current employees availability of inhouse people I may focus on specific skills 0 experience with a programing knowledge Training and Developing Employees 0 deepen their knowledge skills and abilities 0 Training 0 a planned effort to enable employees to learn jobrelated knowledge skills and behaviors 0 Development 0 acquisition of knowledge skills and behaviors that improve an employee s ability to meet changes in job requirements and in customer demands I often focus on preparing employees for management responsibility 0 Top quality Employers look for in Employees 1 teamwork skills 2 verbal communication skills decision making problem solving gathering processing information 0 O O O o planning prioritizing tasks 3 4 5 VVVV Managing Performance 0 process of ensuring that employees activities and outputs match the organizations goals 0 specifying the tasks and outcomes of a job that contribute to the organizations success I various measures gt compare employee39s performance gt rewards o responsible for developing or obtaining questionnaires o evaluation gt shortlong run Planning and administering Pay and Benefits 0 important role in motivation esp bonuses gt linked to achievement 0 need to keep track of each employee s earnings and benefits 0 keeping track and reporting to management employees and gov Maintaining Employee Relations 0 organizations rely on them to maintain positive relations w employees 0 preparing and distributing handbooks 0 deal w discrimination employee benefits safety hazards dissatisfied 0 employee belongs to a union 0 additional responsibilities 0 conducts collective bargaining to negotiate an employment contract w unions I HR maintains communication w union representatives enurse that problems are resolved as they arise Establishing and Admiring Personnel Policies 0 depends on HR to help develop and then communicate the policy to every employee gt know importance 0 promote fair decision making but also workplace safety and customer service I fair and effective policies require strong decision making skills ability to think ethically broad understanding of business activities 0 communicate variety of channels Managing and Using HR Data 0 handling records about employees requires accuracy gt sensitivity to employyee pnvacy 0 data about employees show show the company s talent what employees tend to perform best o Workforce analytics I use of quantitative tools and scientific methods to analyze data from human resource databases and make sources to make evidencebased decisions that support business goals Ensuring Compliance wl Labor Laws 0 laws govern equal employment opportunity employee safety and health employee pay and benefits employee privacy and job security 0 Managers depend on HR managers for filing reports and displaying posters o avoid unlawful behavior 0 Current no federal laws outline how to use employees databases 0 protect employers privacy 0 Lawsuits concern job security 0 economiccompetitive conditions I illegal discharge of employees gt increased 0 employment at will I employer may terminate an employe at anytime without notice 0 debated 0 age of overall workforce increase I age discrimination o layoffs promotions benefits gt rise 0 employers need to review work rules recruitment practices performance evaluation systems Supporting the Organization s Strategy 0 need to understand the organization39s business operations project how buisness trends might affect the business reinforce positive aspects of org culture develop talent HR strategies 0 Human resource planning 0 identifying the number and types of employees the organization will require to meet its objectives I forecasts needs gt hiring training reassigning o Talent management 0 a systematic planned effort to attract retain develop and motivate highly skilled employees and managers 0 Evidence based HR 0 collecting and using data to show that human resource practices have a positive influence on the company s bottom line or stakeholders 0 Sustainability 0 an organizations ability to profit without depleting its resources including employees natural resources and the support of the surrounding community 0 Stakeholders o the parties with an interest in the company s success stakeholders community customers and employees Skills of HRM Professionals 0 six competencies for the HR Profession o Credible activists top of the pyramid gt Relationship I most influence over the organizations success gain credibility by mastering all the others 0 deliver results with integrity 0 share information 0 build trusting information o influence others provide candid observation take appropriate risks 0 OrganizationalCapabilities I Business Ally 0 know how the business makes money who its customers are why companies buy what the company sells 0 language of business 0 makes money I Talent ManagerOrganizational Designer 0 knows the ways that people join the organization and move to different positions within it 0 requires knowledge of how the organization is structured and how that structure might be adjusted to help meet its goals for developing and using employees talents I develops talent reward sytems I shape organization I Strategic Architect 0 awareness of buisness trends and an understanding of this might affect buisness oppurtunites that might threaten it 0 spots ways to effective management of HR seize opportunities and confront threats to the business I business trends I develop strategies 0 Systems and Preferences I Cultural and Change Steward o facilitates change 0 developing and valuing the culture 0 helping employees navigate the culture I Operational Executor o implement workplace policies 0 advance HR technology 0 administrator day to day work of managing people Responsibilities of Supervisors o Involvement in HRM 0 help define jobs forecast HR needs provide training interview and select candidates appraise performance recommend pay increases and promotion communicate policies 0 motivate with support from pay benefits and other rewards o understand communication motivation other elements of human behavior OOOOOO Ethics in Human Resource Management 0 Ethics 0 the fundamental principle of right and wrong I should be but in reality not always 0 general public and managers gt don t have a perception 0 recent financial crisis I Lehman Brothers collapsed o ethical lapses related to compensation amp HR policies Employee Rights 0 Right of free consent right of privacy right to due process right of freedom of conscience right of freedom of speach Standards for Ethical Behavior 0 four relationships 0 1 relationships wcustomers vendors clients 0 2 employees assume responsibility for the actions of the company 0 3 sense of proper vision that employees values and use in their day to day work 0 4 emphasize fairness 0 Ethical Alternative 0 greatest good for greatest 0 fair and equitable o respect for basic human rights Chapter 2 Trends in HRM Book Notes Changes in the Labor force 0 Internal labor force 0 organizations workers gt employees and people who have a contracts to work at the organization 0 external labor market 0 individuals who are actively seeking employment 0 HR need to be aware of o trends in compensation of external labor market gt affect options for well skilled motivated internal labor force An Aging Workforce c 20102020 gt fastest growing age group 55 workers 25 44 gt slight increase and 1624 gt lower 0 Today s workforce 0 represent 34 generations A Diverse Workforce o tems of racial ethnic and gender terms gt White AA Asians fastest growing 0 Hispanic growing even faster 19 of labor force by 2020 0 women 47 by 2020 o Heated debates on immigrants o 2 practical parts I 1 supply and demand of labor 0 meat packing farming construction gt immigrants gt low pay 0 software gt immigrants gt high pay gt not found in US I 2 comply w laws 0 cracking down on undocumented immigrants o Employers amp HRM systems gt free of bias encouraging career development for women and minorities and acceptance of cultural differences 0 many companies are committed to doing this 0 Figure 23 I Communication gt employees variety of backgrounds 0 development gt career development for diverse 0 performance appraisal gt feedback amp outcomes I employee relations gt comfortable for all 0 Skill deficiencies of the Workplace 0 use of computers gt cause a shift in skills I no longer gt physical strength mastery of a specific skill I now gt technical interpersonal skills 0 college degree basic requirement High performance Work Systems 0 organizations that have the best possible fit between their social system and technical system Knowledge workers 0 employees whose main contribution to the organization is specialized knowledge such as knowledge of customers a process or a profession 0 position of power 0 growth in ecommerce has changed things shift from manufacturing to a service amp information economy Employee Empowerment 0 giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service 0 accountable for products and services 0 all levels encouraged to share ideas 0 Employee empowerment o innova on 0 performance management training work design and compensation ensure success 10 I latitude for making decisions exert authority need feedback 0 encourage employess to interact with one another 0 Employee Engagement 0 full involvement in ones work and commitment to ones work and commitment to nes job and company I associated with higher productivity better customer service and lower turnover Teamwork o the assignment of work to groups of employees with various skills who interact to assemble a product or provide a service I motivate I increasingly more computer programing tasks 0 work teams I selecting new team managers scheduling coordinating I total quality gt inspection quality control 0 Virtual teams I rely on communications gt videoconferences email cell phones gt keep in touch and coordinate activities 0 agile 0 software companies gt weaving development program more tightly into the organizations activities and strategies I self directed teams I increases customer satisfaction Focus on Strategy 0 its plan for meeting broad goals such as profitability quality and market share 0 help develop strategies align HRM policies and practices w those strategies 0 focus on the future amp present company goals I analyzing business impact developing taent o strategic issues 0 emphasis on quality and decisions about growth and efficiency I HR support this quality improvements projects mergers and acquisition and restructuring o reengineering and outsourcing more efficient High Quality Standards 0 Total Quality Management TQM o a companywide effort to continually improve the ways people machines and systems accomplish work I several core values 11 methods and processing gt needs of internal external customers every employee gt training in quality quality designed into a product service promotes compensation measure progress w feedback 0 Business strategies affecting HRM Figure 24 o TQM o mergers and acquisitions I two companies becoming one I training in conflict resolution regard of compensation performance appraisal o settling on a consistent structure gt combined organization goals 0 reengineering I complete review of the organizations critical work processes to make them more efficient and able to deliver higher quality I effects in 2 ways goals may change dramatically fundamental change gt help design the structure of its pay and benefits gt more appropriate new way of operating 0 international expansion I multinational scale amp have workforces that corporate cultures that reflect the global market I offshoring moving operations from the country where a company is headquartered to a country where pay rates are lower but necessary skills are available chaHenges 0 lack of familiarity with technology corporate practices amp economicpolitical I International Assignments 0 expatriates 0 employees who take assignments in other countries 0 downsizing I layoffing 12 I maintain a reputation as an employer of choice and how I number of challenges 0 surgically reduce the workforce by cutting least valuable in their performance gt difficult o boost the morale of employees 0 maintain open communication build trust and commitment 0 why downsizing is important what costs how long 0 outplacement services to find newjobs o outsourcing I the practice of having another company provide services 0 access into in depth expertise and is often more economical as well Technology Changes Class 2 Notes January 26th 0 HRM I integrated decisions I employment relationship 0 keep them happy gt dont want to loose them gt turnover is expensive I directly contributes to the ability of the organization 0 HR first obligation is to benefit company NOT employees I employees to achieve relationship 0 HRM covered in this class skipped 2 O strategic management employment law recruitment and selection performance appraisal compensation employee and labor relation 00000 0 Ethics and HRM o 1 I offshoring 13 o mostly manufacturing but TODAY gt radiology customer service legal 0 wages are a lot lower in other parts of the world I problem come up 0 places where workers are exploitedwages gt can t afford to put a roof over their head 0 Nike gt poster child gt been trying to recreate their image 0 2 I pay practices at banks 0 ex bonus gt how many mortgages were sold gt came about quantity not quality 0 3 I policies about hiring smokers 0 Companies that will not employ you if you smoke cigarettes 0 costs the company a lot but infringes on employees personal life 0 read emails that are sent at work 0 could be considered unethical o 4 I ex selection training pay What can 0 required to attend seminars o more extensive background checks 0 probationary period I if we are happy with you gt job is yours after 3 months open door policy leadership I people at the top set the tone I O tolerance of unethical behavior 0 Strategic Management 0 need to understand what is going on inside and outside 0 two steps 0 what business should we be in I being in many different businesses I sold off I concentrating in one industry 0 BMW cars 14 0 Volvo I family safetyinvented the seatbelt only auto car where people didn t die after an accident I added quality 0 Smart cars I low mileage o Walmart I low prices same product 0 amazon I keeping customers happy 0 repeat business 0 high demand gt shortage gt scarce supply gt software development I pay raise employees there 2 o What are the strategic goals of the business o What must HR deliver to enable the business to achieve its goals 0 What action will enable HR to deliver against its requirements I example 0 Apple 0 Strategy I differentiation I innovation 0 Workforce I creative I high skilled 0 HR policies I risk takers gt try out new ideas I pay leaders I flexibility 0 selection process 0 Microsoft gt only recruited from top 10 schools 0 relaxed atmosphere gt focused on delivery 15 Strategic HR I organizational strategy leadership style organizational culture 5 to 1 policy gt Ben and Jerry s ice cream Nature of the work Apple gt tangible qualities Laws and Regulations Unions Product Market Condition 0 Labor Market Conditions Herald 10 Ben and Jerry 15 across the street gt ice cream worker 0 working in competitive market unflexible pay Aging of the labor Force baby boomers gt thinking about retirement gt companies should be thinking about pension gt making sure they have their ducks in a row in term of retirement benefits baby boomers gt less concernedmotivated about promotions may have less knowledge about students who just graduated training may need to be provided to keep up 0 O 16 Class 3 Lecture Notes January 28th Quiz 1 on chapter 1 amp 2 complete Blackboard learn site 0 Equal Opportunity Employment Law in the US book covers some additional law but you39re not responsible for those Quizzes and Tests will be the application Test 1 gt be a case study gt similar to hw questions I narrowly structured 0 only applies to pay discrimination in terms of gender 0 1964 I employment practices I most important gt broadly structured 0 19656 I PresidentJohnson 0 beginning of affirmative action 0 much debated 0 19676 I same exact language as title 7 1964 and covers age I very little changed in the workplace 0 What is meant by discrimination 0 what is being prohibited I alot of uncertainity of practical practice and questioning the consitutionality gt no certainity laws would be enforced 0 19736 I unable to discriminate on disabilities I In this time period 0 cases making way through legal sysytem gt consitutional gt upheld in court 0 start to see changes in workplace 17 I hiringpay performance trainingpromoting regulated by law 0 1978a I cannot pregnant people with disability services In 1980 s Reagan was president gt thought government was too big gt needs to get out of business pulled back on enforcement of Supreme Court gt conservative harder to succeed in discrimination lawsuit 0 1990 e I updated and amended Vocational Rehabilitation act 0 1991 e I updated and amended title 7 CRM 0 explicit effort to undo bad decisions of Supreme cOurt 0 now its written down in law gt what it is meant to be 0 2009 e I made it to supreme court gt lost I supervisor in South gt worked as supervisor for 19 years 0 anonymous note which said that she was paid less than men 0 men with less experience years etc got paid more I Supreme Court 0 she filed it too late gt statute of limitations 180 days to file a complainment I statute of limitations gt humanitarian reasons 0 even though pay is ongoing gt how lower courts interpreted it for decades gt now court is conservative 0 SC does not account for knowledge of situation 0 How can you be held to do this if you do not know you are being discriminated against 18 0 One Justice was outraged gt urged congress to put an act out gt Now put into writing that its after 180 days gt courts no longer have the freedom to what the SC did 0 overturned SC decision I first law Obama signed in as president 0 2009 gt Genetic Info Nondiscrimination Act I known as Gena o aot you can know about it o BERCA gene gt cancer gene in women 0 companies think they may be costly c not allowed to use that as information for employment 0 Things are always changing gt HR manager needs to be updated w laws In Class Discussion Are o o protects employees from being discriminated 0 terms of wages o biological reasons 0 disabilities 0 race people are seen as equal increase talent pool diversity gt good business gt customers are diverse corporate social responsibility 0 consumption decisions gt consumer ways for the company to get around it 0 last names 0 accent they try to beat the system gt conceive the system c behind the scenes People might things minorities are getting an advantage 0 caucasian people gt stigma against these laws hiring people who are not as qualified simply to avoid being sued for discrimination gt reverse discrimination c which is illegal hard to prove discrimination 19 0 interviews I more risks for employers I take advantage of laws 0 disability 0 Any management position gt deal w law gt costly lawsuit 0 Laws in More Detail 0 Title VII of the CRA of 1964 I Prohibits discrimination or segregation INCLUDE THIS ON TEST word for word implicit what is NOT covered 0 insurance charge more for auto insurance gt younger is more expensive older people less expensive 0 sexual orientation gt no federal law that prohibits it gt but Massachusetts its prohibited You can say Bartnderjob gt Are you over 21 20 Chapter 3 Providing Equal Employment Opportunity and a safe Workplace Book Notes 0 Regulation of Human Resource Management 0 all 3 branches gt legislative executive and judicial gt create legal environment concerning violations I executive is responsible 0 making sure laws are enforced once passed by congress I judicial o influences employment law by interpreting law and holding trials 0 Senators and US representatives I develop laws in response to perceived societal needs 0 condition is which all individuals have an equal chance for employment regardless of their race color religion sex age disability or national origin I Constitutional Amendments 0 13th 0 abolished slavery 0 14th 0 forbids the state from taking life liberty or peoperty without due process of law 0 prevents the states from denying the equal protection of laws I recently protects whites gt reverse discrimination 0 ex quota system gt violates 14th amendment I only applies to decisions or actions of the government or of private groups gt actions deemed as government actions I Legislation 0 1960 s gt equal protection laws 0 Now additional laws have been passed to extend EEO protection I Equal Pay Act of 1963 0 men and women are doing equal work gt employer must pay them equally 21 0 equal in terms of skill effort responsibility and working conditions I pay differences seniority merit quantity quality of production gt legal I Title VII Of CRA 1964 o enforced by EEOC Equal employment Opportunity Commission 0 Title VII I prohibits employers from discriminating against individuals because of race coorreigion sex or national origin I may not use this 0 hiring firing discrimination pay employment privileges and conditions I applies to 0 applies to organizations that employ 15 or more persons working 20 or more weeks a year that are involved in interstate commerce state and local governments employment agencies and labor organization I employers may not retaliate against employer for either opposing expressing to someone concerns proper channels a perceived illegal employment practice or participatingtestifying in a proceeding related to an alleged illegal employment practice 0 I one category of employers not covered older workers 0 olderworkers concerned 0 targets of discrimination gt downsizing I paid more gt cut labor costs 0 1967 ADEA passed gt protect workers over 40 0 Many firms have offered early retirement incentives 0 alternative suplementray to being laid off I require participating employees to waive their rights to sue under the ADEA o to defend against claims of discrimination 22 o establish performance related criteria for layoffs rather than age salary related I defines discrimination on the basis of pregnancy childbirth or related medical conditions gt illegal sex discrimination 0 may not refuse to hire a worker if pregnant I decisions about work absences or accommodations gt same policies as the organization uses for disabilities I Benefits 0 health insurance gt cover pregnancy I disability 0 under the Americans with disabilities 0 act a physical or mental impairment that substantially limits one or major life activity a record of having such an impairment or being regarded as having such an impairment I covers physiological mental and psychological disorders I NOT covered obesity substance abuse iratibility poor judgement I gies beyond discriminating required to take steps to accomodate o of accommodations cost less than 500 I one major change has been the addition of compensatory and punitive damages in cases of discrimination under Title VII and the Americans with disability act 0 limited damage claims to equitable relief defined to include 0 back pay 0 lost benefits 0 front pay 0 attorney39s fees and costs I allows judges to compensatory and punitive damagespay beyond actual loss suffered proves discrimination was intentional reckless 23 0 future monetary loss 0 emotional painsuffering 0 loss of enjoyment of life I congress has limited punitive damages 50000 300000 per violation 0 E0 11246 gt Johnson I prohibits federal contractors and subcontractors from discriminating based on race color religion sex or national origin I meet minimum requirements must engage in affirmative action gt ensure against discrimination 0 E0 11478 gt Nixon I base all its employment policies on merit and fitness 0 race color religion sex or national origin gt not be considered 0 responsible for enforcing most of the EEO laws Title VII Equal Pay Act Americans w Disabilities Act 0 investigate and resolves complaints about discrimination gathers information and issues guidelines I must file a complaint within 180 days of the incident 0 many individuals file more than 1 complaint I After EEOC receives charge it has 60 days to investigate o if EEOC does not believe complaint to be valid then or fails to complete investigation in 60 days gt individual has the right to sue o if there is discrimination gt EEOC will try to achieve reconciliation wout a lawsuit 0 consent decree I between discriminating organization 0 cease discriminatory practices and institute affirmative action 0 settlement w EEOC can be costly 0 monitors hiring practices 0 for 100 employees 24 online questionnaire requesting number of employees in each job broken down by their status malefemale and then by racial groups I analyze reports identify discrimination process gt class action lawsuits I employers must display EEOC posters detailing employments rights gt prominent and accessible location 0 Uniform Guidelines on Employee Selection Procedures 0 issued by EEOC and other agencies to identify how organization should develop and administrator its system for selecting employees so as not to violate antidiscrimination laws 0 agency responsible for enforcing the executive order that cover companies doing business with the federal government I Plan includes 3 basic components 0 Utilization Analysis 0 Goals and timetables 0 Action Steps I each year audits government contractors to ensure they are actively pursuing the goals in their plans 0 OFCCP gt examines the plan and conducts onsite visits to examine how individual employees perceive affirmative action 0 may notify EEOC gt violation of title VII 0 Avoiding discrimination I Disparate Treatment differing treatment of individuals where the differences are based on the individual39s race color sex national origin age or disability service includes 25 o hiringpromoting someone over an equally qualified person because of the individuals race 0 not hiring a women gt has school aged children gt absent a lot gt prove employer intended to discriminate o avoid disparate treatment 0 can evaluate the questionsinvestigations they use in making employment decisions 0 evaluating interview questions and decision criteria gt important given that bia in not always intentional or even conscious 0 Researchers conducted studies 0 finding differences between what people say about how they evaluate others and how people actually act on their attitudes o bona fide occupational Qualification BFOQ o a necessary not merely preferred qualification for performing a ob I sexrace I example 0 handing out towels in the locker room I 1990 s gt SC case 0 Johnton Controls gt manufacturer of car batteries gt fetal protection policy gt exclude women childbearing age from jobs that would expose them to lead gt birth defects gt 0 SC disagreed BFOQ is directly related to a workers ability to do the job condition in which 26 0 include pay hiring promotion or training I many companies encourage their employees to refer friends and family for open positions 0 produce a pool of well qualified candidates gt good fit organizations culturehighly motivated to work 0 unintentional disparate impact on groups that are not well represented 0 need referrals and recruitment gt every group equally encouraged to participate I rule of thumb that finds evidence of potential discrimination if an organization is hiring rate for a minority group is less than 45 for the majority group I compares rates of hiring not of employees hired I not satisfied gt potential discrimination o EEO Policy 0 avoid discrimination gt defend against claims gt establishing and enforcing EEO policy I define amp prohibit unlawful behavior I procedures making and investigating complaints 0 employees at all levels engage in fair conduct and respectful language I derogatory language gt court claim gt discrimination o affirmative action programs gt increase the representation of minorities 0 original form I extra effort to attractretain minority employees 27 o extensively recruiting minorities o minorityoriented publications 0 educational training over the years I resorted to quotasnumerical goals gt proportion of certain minority groups I workforce mirrors proportions of labor market by increasing the proportion of minoritiesfemales hired or promoted gt reduce the proportion of whitemale candidates hiredpromotion I alleging reverse discrimination affirmative action gt remains controversial gt least likely to favor quotas 0 Providing Reasonable Accommodation I an employer s obligation to do something to enable an othenNise qualified person to perform a job I Employment law refers to an employer s obligation to do something to enable an othenNise qualified person to perform a job 0 accommodations employee religion I ex Jehovah s witnesses gt not allowed to celebrate holidays gt fired not wearing a xmas hat 0 employees with disabilities gt reasonable accommodations gt varying individual needs restructurejobs modify equipment reassign an employeejob person can perform 0 accommodating an employee gt significant expensedifficulty o exempt from unreasonable reasonable I does not impose undue hardship on the employer gt such expense relation to company s resources 0 Preventing Sexual Harassment unwelcome sexual advances as defined by the EEOC Title VII prohibition of sex discrimination unwelcome sexual advances requests for sexual favors verbalphysical contact of sexual nature when 28 o 1 explicitlyimplicitly o 2 submissionrejecting gt basis employment decisions 0 3 purpose or effect unreasonably interfering gt individuals work performance o prevent o 1company gt policy statement 0 2 trained to identify inappropriate behavior 0 3 management gt act promptly if need be 0 person makes abenify or punishing consignment on an employees submitting to or rejecting sexual advances 0 ex raisepromotion o more subtle o hostile working environment gt hard for one sex to work I suggestive remarks running fingers through hairsuggestive remarks I Valuing Diversity 0 has no single form 0 not written into lawbusiness theory policies gt understandingrespecting differences organizations gt hire reward promote gt demonstrate respect 0 training programs 0 learning how to treat transgender employees 0 meet legal requirements 0 Employer Sponsored Safety and Health Programs I injuries and illnesses have deceased since 1994 I Identifying and Communicating Job Hazards 0 Job Analysis technique 0 safety promotion technique that involves breaking down a job into basic elements then rating each element for the potential for harminjury 0 example I nanotechnology I masks gt not necessarily protect you c exposures may be harmless but researchers are only beginning to learn their impact 29 o Technic of Operations Review 0 method of promoting safety by determining which specific element of a job lead to a past accident I communicate w employees aboutjob hazards gt paper trails I Reinforcing Safe Practices 0 define how to work safely but reinforce desired behavior 0 implementing safety incentive program gt reward workers supportsafety goals I action to correct problem gt when someone reports unsafe conditions I Promoting Safety International 0 ensure the safety of their employees 0 cultural differences make this dangerous I individualism vs collectivism 0 law enforcement and political climates gt increasing of offshores February 4th Class 5 Class 4 Snow Day 0 Due dates pushed forward Now 91117 and exam is still on the 18th 0 Look at EEO notes on blackboard gt responsible for on testlhw o The definitions of Discrimination I differing treatment of individuals where the differences are based on individual39s race colorreligion sex national origin age or disability status 0 can t hold people to different standards I condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment oppo unMes o Griggs v Duke Power 1971 0 produced electricity gt had a job open for coal handler I needed a HS diploma I aptitude Test 0 rural area in NorthSouth Carolina I very few AA graduated from HS gt not because they weren39t smart 30 o ruled in favor of plaintiff I don t need a hS diploma to shovel coal 0 employment farther disadvantages a disadvantaged group 0 On a test there are only two types of discriminations Disparate treatment and disparate impact and you will have to provide definition 0 The Legal Process I disparate treatment 0 Yes I Disparate impact 0 NO 0 doesn39t make a difference if intentional or not 0 on the face of it Plaintiffgt showing merit I disparate treatment 0 show individual was treated differently I disparate impact 0 show statistical disparity between group outcomes 0 related to sex compare outcomes between hiring decision of men and women 0 businessjustification 0 required to provide a legitimate nondiscriminatory justification for the employment decision I not discrimination that drove decision but something else I disparate impact 0 business necessity I have to be able to show they cannot achieve their business goals without this practice 0 if Duke Power could prove that you need a high school to shovel goal they would have been finel but they couldn t 31 I Disparate treatment 0 show pretext o gt showing their is no legitimate reasoning and it discrimination I Women needs to wear makeup jewelry be more lady like to get promotion 0 Disparate Impact 0 show which meet ER s goal I assess applicants and hire qualified people without using a discriminatory method 0 can be used in hiring firing and promotions 0 Example New Haven fire fighters I promotion for lieutenant and captain o evaluate qualification 0 written test gt study materials 0 looked at results and not single AA qualified for a promotion only 1 hispanic qualified gt oh oh gt disparate impact 0 best course of action gt throw out results 0 white firefighters gt filed a lawsuit that we didn39t get the position because we are white I Supreme Court said gt that black people wouldn39t be able to file for disparate impact gt could have shown business necessity no other alternative procedures 0 expect for one judge gt other methods studies show black people do not do well on tests 0 ruled in favor of white firefighters o 4 questions on exam 0 What lawlaws apply I summarize o What type of discrimination is being alleged I definitions of disparate treatment disparate impact o Is there prima facie I identify appropriate test rule 0 employers defense 32 o Need all 4 explain answers on examhw I White men are protected by these laws I most debate is over 2 I Diane Sawyer experiment hidden cameras same resume qualification gt college educated 0 buying a car 0 buying apartment 0 job I Black man asks for a job application gt says job was filled I White women asks 15 later gt gives application 0 conclusion was its based on race 0 The rule an employment practice has disparate impact if the selection rate for the minority group is less than 45 80 of the selection rate for the majority group I Formula need numbers to calculate example I 100 applicants 20Female gt 5 hired 80 Male gt 25 hired I 1 turn it into a ratio qualified applicants used o F 25 M 31 2531 81 0 General Rule I companies are not required to engage in practices that adversely affect their business 0 illegal hire someone not qualified o Acceptable defenses 33 I workrelated requirements I bona fide occupational qualification BFOQ 0 have to be a women to do this job or vice versa 0 protected attribute I seniority system I quotas in some cases 0 exception documented discrimination in an institution February 11th 2015Class 7 Snow Day class 6 o Online revised outlineDue dates more dates online 0 Legal Environment HW 17th18 0 exam Monday february 23rd 0 Sexual Harassment Illegal Sex Discrimination under Title VII 0 2 definitions need to know definitions for exam 0 can t do this unless you do that gt promotion in exchange for sleeping with me o conduct of a sexual nature purpose or effect to purposely interfere with an individual hostile environment 0 loudly telling dirty jokes describing sexual exploits playboy posters gt victim finds it hard to work in gt denying an equal opportunity to do work 0 Clarence Thompson gt 1st AA appointed 80 0 Anita Hill and Clerance worked together came into a hearing and said conducted illegal sexual harrassment I described classic case gt dirty jokes sexual exploits kept asking her on dates 34 o didn t believe herlt Cleance SC jusge I men and women 0 same sex opposite sex harassment o victim of harassment and 0 anyone adversely affected by conduct I Court considers totality of the circumstances 0 Would a reasonable person have been offended 0 cases where it is murky I follow up on harassment gt bite of an apple gt stop when told its offensive I if didnt say anything gt not always reasonable for the victim to speak up I evidence 0 often difficult heshe said I Harassment by supervisors 0 position of power gt taken much more seriously 0 Quid pro quo harassment o automatic 0 Hostile environment 0 determined by court I can be found non liable if don39t go through companys proper channels 35 I women who feels sexually harassed gt doesn t go through schools policies unreasonable gt not liable o Umass gt strong policy gt sexual harassment gt training I Harassment by CWorkers or nonEees o Liable if Er knew or should have known about the conduct and failed to take immediate corrective ac on o waitress harassed gt told boss gt his response boys will be boys gt not correct ac on 0 Civil rights Act of 1991 O O Amends Title VIII of the CRA ADA ADEA allows additional remedies for intentional or reckless discrimination I punitive damages gt punishment for bad behavior reverses Supreme Court decision forbids the use of race or sex norming I ability test gt screen test gt risk of disparate impact I sex norming 36 Jul penforma nice i333 I343 Elf li r I I 1 white Elfi39l playEEE An example 0 Wanted a more diverse task of employees 0 Large accounting firm hires both men and women I the best and the brightest I equivalent education and experience 0 More men are promoted to partner than women I records show men outperformed the women 0 around time for a promotion gt women get pregnant 0 even if they worked full time gt had to take care of household duties I gap of responsibilities between men and women have shrunk I some women proposed can keep women at work and let them fulfill household duties 0 thought she was making a good thought gt slower track not too the top vs fast track 0 not liked by women 0 malefemale gap 37 I first years out of college no gap but after 10 years there will be a gap gt different tasks 0 New policy everyone needs to leave the office by 5pm I mentors for both men and women I affirmative action support 0 intended to be a digging deeper wanted to know why 0 more proactive in finding barriers I exit interviews I equal opportunity approach 0 Executive Order 11246 o Affirmative Action I the contractor shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race color religion sex or national origin I applies to federal only I cannot be brought up in court 0 Many people do not understand what affirmative action is February 17th 2015 Class 8 Monday first essay exam one sheet front and back Quiz tomorrow chapter 3 open notes 20 points I organizations with government contracts of 10k or more I taking actions to remove the barriers to the advancement of protected groups I hiring and promoting under qualified employees I Quotas illegal in most cases 38 o Preferential treatment 0 applicants who are ly qualified give prefernce to a women or women of color 0 example college admissions I white women gt denied admission to the University of Michigan because colored women get admission instead made it to SC colleges uses a point system gt maximum 120 person of color would get 20 point for minority status 0 in this case race became the deciding factor gt illegal o POC 85 and White 95 gt I allowed legal 0 POC 91 White 94 o POC gets 5 0 96 vs 94 0 Equal Pay Act 0 forbids wage discrimination between Ees on the basis of sex when the Ees all four I perform equal work 0 contents must be the same regardless ofjob title I on jobs in the same establishment I requiring skill effort and responsibility I and performed under similar working conditions 0 No standing for a complaint I loading a truck 0 women loads pillow feathers while male loads heavy equipment 0 Defending a prima facie Case of unequal Pay I Pay differences can be justified when based on o a seniority system c merit system c a system measuring earning by quality or quantity of production 0 any factor other than sex 0 Lilly Ledbetter Fair Pay Restoration Act2009 o amends title VII of the CRA ADEA and ASA as they pertain to pay 39 case explained in above notes every pay check gt restarted the clock gt but SC said it has to be after the initial event first paycheck gt people furious gt congress passed an act 0 Key issue I application of the statute of limitations 0 Reversed Supreme Court decision I Ledbetter v Goodyear Tire and Rubber 0 Americans with disabilities Act word for word on test 0 prohibits discrimination on the basis of disability in all employments practices such as hiring firing promotions compensations and training 0 At what point is it a disability covered by law Who is considered disabled A person who word for word I has physical or mental impairment that substantially limits that person in some major life activity I has a recorded of such an impairment cancer patient 0 covers recovered substance abuse 0 but is not covered for people who are actively substance abuse 0 is regarded as having such an impairment so much interpretation involved 0 burnt faces 0 HIVAIDS 0 Limitations on coverage under the ACT 0 individuals must be able to perform the essential functions of the job reasonably well with or without accommodation I if blind can t be a firefighter I consulting firms gt deal with this gt not explicit enough 0 Employer Responsibilities under the act I Ers are required to provide reasonable accommodation so long as this does not inflict undue hardship on the business 0 In court what is reasonable accommodation and undue hardship o 3 elements 40 0 Was the Er aware of the disability 0 is there a legitimate work related reason for the decision February 18th 2015 Class 9 Exam Next Class 0 The Hiring Process 0 interview bad idea I can access communication I can t access personality 0 two types of mistakes I false negative 0 don39t hire someone like Bill Gates I false positive 0 hire someone who s a failure 0 Step 1 Establishing Qualification for the job I skillsknowledge v abilities v personality traits 0 communication analytical teamwork problem solving 0 GE gt financial management program 0 hire people right out of college to come CFO s I looking for management finance history and culture language I speak to capacity I personality trait waste of time 0 weak evidence gt accurately assess personality and that it will be beneficial to performance I Personjob fit v person organization fit 0 potential risk gt personal organization fit 0 might end up w homogenous organization and a lawsuit I fear of disparate impact 41 0 Step 2 Establishing a Recruitment Strategy I interested qualified 0 interested and qualified gt leads to selection 0 hired I about screening and attraction o handing out pens food gt develop like for the company I balancing realism and attractiveness o dressing up gt attractive image you want to make 0 worried about making promises gt can t deliver 0 want to be attractive but realistic Organization goes through the same 0 Realistic Job preview RJP 0 good bad and the ugly I Consulting 0 high pay travel well connected Good 0 tired of traveling life Bad I key decisions 0 Step 3 Choosing selection Methods I How will job candidates qualifications be assessed 0 consider 0 validity I of the selection process gt accuracy 0 intervieWS gt low accuracy 0 legality I polygraphs are illegal unless for national security I Potential for creating legal problem 0 Are you married 0 Do you have children 0 reliability I consistency o Umass faculty is a union I who is accessing information get a different result gt inconsistent 0 utility costbenefit I makes sense to spend alot of money to avoid mistakes 42 assessment center gt put through multiple exercises and then assessed by a panel at the end of the day provides very high volatility 0 high stakes positions 43 Chapter 5 Book Notes 0 Process of HR Planning 0 Forecasting primarily goal I the attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there would be labor shortages or surpluses I statistical methods capture historic trends judgement pooling ther best guesses o Forecasting the demand for labor I planner o investigates demand for each 0 forecast whether the need for people w necessary skills and experience will increasedecrease I trend analysis 0 constructing and applying statistical models that predict labor demand for thr next year given relatively objective statistics from the previous year 0 leading indicators 0 objective measures that accurately predict future labor demand 0 Determining labor Supply I calls for a detailed analysis of how many people are currently in various job categories or have specific skills within an organization 0 modifies analysis gt reflect changes expected in the near future as a result of retirements promotions transfers voluntary turnover and terminations I transitional matrix 0 a chart that lists job in categories held in one period and shows the proportion of employees in each of these job categories in the future 0 useful for charting historical trends in the company s supply labor I conditions somewhat constant gt they can be used to plan for the future 0 besides looking at the labor supply within the organization the planner should examine trends in the external market 44 0 size of labor market unemployment rate people in the market 0 Determining labor surplus or shortage I based on the forecasts for labor demand and supply the planner can compare the figures to determine whether they are shortage or surplus of labor for each category 0 Goal Setting and Strategic Planning I purpose of setting specific numerical goals is to focus attention on the problem and provide a basis for measuring the organizations success in addressing labor shortages and surpluses 0 goal directly from analysis of labor supply and demand 0 include a specific figure indicating what should happen in the job category core competency o a set of knowledge and skills that make the organization superior to competitors and create value for customers 0 organizes try to anticipate labor surpluses far enough ahead that they can freeze hiring and let natural attrition reduce the labor force I unfortunately gt labor surplus downsizing o Downsizing the planned elimination of large number of personnel with the goal of enhancing the organization39s competitiveness primary reason 0 promote future competitiveness by using four objectives 0 1 reducing costs 0 2replacing labor with technology 0 closing outdated factories automating o 3mergers and acquisitions 0 less bureaucratic overhead gt layoff managers 0 4 moving to more economical locations evidence suggests gt hurts long term organizational effectiveness 0 especially research and development companies 0 high involvement work and performance related pay incen ves 45 I Why downsizing fails to meet expectations 0 1 loss of talent disrupts social networks creativityflexibility o feel confused demoralized less loyal to company 0 many companies end up rehiring 0 one survey upto 80 0 employees who survive become self absorbed and less willing to take risks 0 motivation drops 0 employees start looking for otherjobs 0 negative publicity I Problems with downsizing can be reduced wl better planning 0 make surgical strategic cuts gt improves company s competitiveness position opportunity to improve quality 0 can be motivating to be part of a higher quality team 0 reducing hours 0 early retirement programs 0 employing temporary and contract workers I outsourcing instead of temporarycontract employees 0 overtime and expanded hours I must pay non management employees 15 times their normal wages for work done overtime I preference is strong if the organization doubt that the current higher level of demand for its products 0 Implementing and evaluating the HR plan I interpreting strategies and evaluating outcomes I checking whether the organization has succeeded in avoiding labor shortages or surpluses 0 Applying HR Planning to Affirmative Action I manage diversity and meet government requirements I forecast and monitor the proportion of employees who are members of various protected groups 46 I Workforce Utilization o a comparison of the proportion of employees in protected groups with the proportion that each group represents in the relevant labor market 0 diagnose by using transition matrices 0 Recruiting Human Resources 0 Recruiting 0 an activity carried on by the organization with the primary purpose of identifying and attracting potential employees I buffer between planning and actuals election I 3 areas of recruiting 0 Personnel policies 0 vacancy characteristics 0 Recruiter traits and behaviors 0 vacancy characteristics 0 applicant characteristics 0 recruitment sources 0 applicant characteristics 0 Personnel Policies I decisions about how it will carry out hr management gt fill job vacancies 0 internal versus external recruiting 0 promote from within 0 lead the market pay strategies 0 pay more than the current market wages for a job 0 employmentatwill policies 0 no specific employment contract saying othenNise the employer or employee may end employment at any time regardless of cause 0 due process policies I policies that formally layout the steps an employee may take to appear the employers decision to terminate that employee 0 image advertising 0 advertising designed to create a generally favorable impression of the organization 0 Recruitment Sources 47 I chooses from communicating its labor needs and the audience it targets will determine the size and nature of the labor market the organization taps to fill its vacant positions 0 Internal Sources 0 job posting 0 policies may emphasize promotions and even lateral moves to achieve broader career experience gt give applicants reasonable favorable impression 0 External sources 0 entry level positions and specialized upperlevel positions I recruit through direct applications referrals I direct applicant gt already sold on the organizations 0 downside of referral nepotism gt practice of hiring relatives 0 electronic recruiting I advertise opening gt through internet I ability to target and attractjob candidates whose values match the organization s values ans skills match requirement Advertisment in newspaper and magazines Public employmnet agencies I social security act of 1925 I work with US employment services I meet diversity requirements gt maintain specialized desks 0 Private employment agencies I seve the blue collar market gt public agencies I white collar markets gt private agencies 0 Colleges and Universities 0 Evaluating the Quality of a Source I yield ratios 0 a ratio that expresses the percentage of applicants who successfully move from one stage of the recruitment and selection process to the next 0 high yield ratio effectiveness 0 cost per hire 48 0 low cost of hire efficient gt delivers qualified candidates at a low cost 0 Recruiter Traits and Behavior I Characters of the recruiters 0 general applicants respond positively to recruiters whom they perceive as warm and informative 0 warm seems to care about applicant and to be enthusiastic I Behavior of the recruiter 0 need to show a balance of good and bads about company 0 realisticjob preview 0 background information about a jobs positive and negative qualities 0 weak and inconsistent effect on turnover 0 recruiter seems less important than an organization39s policies that directly affect the job features 0 Enhancing Recruiters Impact I conditions where recruiters make a difference I provide timely feedback I avoid offensive behavior I recruiters teams rather than individual recruiters February 25th 2015 o Quiz covers recruitment ch5 book class notes WEDNESDAY 0 Write up due May 1st Workshop April 30th 0 Validity o 2 issues I How well does the technique measure what it is meant to measure 0 example 0 IQ test gt no longer in US schools lt aren t assessing intelligence but instead quality of educa on I low validity I How well does the information predict future performance 0 3 types 49 I criterion related 0 quantitative analysis EFH39IE39 agate1 I I36 5 r jl 115sz mi 3 mm F l w Ilia 1 cuaim F l39r Iridium e i i lm l39 i ia I content c not I data related very ff subjective manna n 1 n 0 answer questions 0 high content validity o typing test gt job for typing 0 job for building inspector gt upto code I evaluate mockup is and where its at violation I Construct 0 dont need to know it o measuring a construct you can t see are you accurately measuring it 0 example I personality 0 Validity Problematic Techniques 0 Interviews I notorious in low validity gt not accurate on performance I non directive v structured best approach 0 structured gt scriptive gt all applicants are asked the same ques ons o 2 types of questions in structured I situational o hypothetical I behavioral description 0 strong leadership 0 Tell me about a time you were in a leadership position and what type of problem did you have 0 Personality Inventories I big 5 personality traits 5O c not terribly high validity 2 assumptions 0 accurately measure 0 assuming related to performance gt has weak evidence increase in companies who use this part of their hiring process low cost way of screening people out 0 scientific evidence is low that this a great technique 0 References I you provide gt bound to be bias I background check gt much more intensive 0 Legal issues 0 1 Is it legal to use this technique I polygraphhonesty tests 0 polygraph gt illegal o honesty tests gt illegal is some states like MA 0 2 Does use of technique create legal issues Interviews 0 wordphrasing of a question gt illegal and pending lawsuit 0 Do you have kids 0 Are you married 0 Do you have a disability 0 How old are you I Abilityl Knowledge Tests 0 structure of test gt AA don t do as well 0 chance of Disparate impact gt remember firefighter case I Medical Exams 0 once you discover someone has a disability you have to prove the decision was not based on it 0 should be done after you offer them a position I Background Checks 0 not necessarily going to get a lot of useful information 0 usually just dates and verification ofjobs 0 cannot provide false information gt liable 0 very important to have 51 0 companies are responsible for their employees behaviors I example case of delivering furniture store 0 didnt want to do a background check gt delivery guy assaults and rapes her guy said he was working for example XYZ but he was actually in prison 0 company gt was liable March 2nd 2014 0 Legal Issues continued from February 25th Lecture 0 Personality inventory Some examples I mental health 0 l have trouble going to sleep at night 0 I feel unhappy most of the time I My fingers sometimes feel numb o discrimination on a basis of disability gt Disability Act I I do not like sports 0 assessing masculinity o disparate impact gt screening on basis of sex I used to like dances in gym class 0 Personality test gt need to be used carefully o Honesty Test some examples 0 correct answer NO gt but lack of logic I Is stealing from one s job a common occurrence I Have you ever been told by a fellow employee how to cheat the company 52 0 correct answer YES I Did you ever cheat in school I Did you ever lie to a teacher or policeman I Have you ever looked in a mirror and wished you could change something about yourself 0 Drug Testing 0 Incidence I Advantage o the consequences of drug abuse I Disadvantages 0 Accuracy gt validity 0 ways to avoid it gt sustain I hair tests gt go back to 3 months I herbs to take to cover it up 0 Costs gt utility 0 costs billions each year 0 use credited labs gt costly 0 Impact on productivity gt utility o marijuana on weekend doesn39t affect your work necessarily o on job evaluation 0 people who drink 0 Legal issues 0 courts have been supportive I but have scrutinized random testing of current employees gt need to have good reason I GENA gt can t use that information 0 most employers don39t even want that info a BARS 53 0000 Behavioral Anchored Rating Scales as close as we have gotten for subjectivity Knowledge Expertise F lmye nswere ll iLliEIii IE Ui E tEly each tine ee a etatement that dE39FZiiTETtE the reuniting thee t he ibEi l 39 i r Emmetimg yeti can see It wee an amtem tram 1 iratelyir iever gable anewer 54 Chapter 6 0 Selection Process 0 personnel section I the process through which organizations make decisions about who will or will not be allowed to join the organization I Steps in selecting process 0 1 human resource professional reviews the applicants received to see which meet the basic requirements for a job 0 2 candidates who meet the basic requirements of the job organizer administers tests and reviews work samples to rate the candidate39s abilities o 3 best abilities gt invited for an interview 0 beginning to form opinions about which candidates are the most desirable o 4 background checks 0 5 making selection 0 Best practices Box I the method provides reliable information I valid info I info can be generalized to apply to candidates I offers high utility I selection criteria are legal 0 Reliability I the extent to which a measurement is free from random error I intelligence tests 0 provide and explain the reliability of their tests 0 involves correlation coefficient I answers question Whether you are measuring something accurately 0 but excludes Are you measuring something that matters 0 ex rethought the selection criteria gt before hiring only bio majors for customer service at Chrona technology gt but nonbio majors could succeed as well 0 need to consider reliability and validity o Validitility I the extent to which a performance on measure such as a test score is related to what the measure is designed to assesssuch as job performance 55 0 determine whether valid compare many people s score on that measure with theirjob performance 0 ex keyboarding test gt more than 60 words a minute gt data entry gt high performance in data entry I Criterionrelated validity o a measure of validity based on a showing a substantial correlation between test scores and job performance scores 0 1 Predictive validation I 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 o more time consumingdifficult gt but is best measure 0 2 Concurrent Validation I research that consists of administering a test to people who currently hold a job then comparing their scores to existing measures of job performance I Content validity o consistency between the test itemsproblems and the kind of situations or problems that occur on the job 0 exposes job applicants that are likely to occur on the job 0 usual basis for deciding that test is through expert judgement gt mirror essential job functions I Construct validity o 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 0 measures abstract qualities gt intelligenceleadership ability I example test measures mechanical ability gt people with superior mechanical ability perform well as assemblers gt test has construct validity for the assemblerjob I Ability to Generalize o generalizable 56 o valid in other contexts beyond the context in which the selection method was developed I Practical Value 0 predict how well they perform but they should also produce information that actually benefits the organization 0 consideration is cost I test and interviewing gt cost 0 should cost significantly less than the benefits of hiring new employees I utility o extent in which something provides economic value greater than its cost 0 Legal Standards for Selection Civil Rights Act of 1991 Age Discrimination Act Equal Employment opportunities 0 American with disabilities Act Criteria for Effective Performance Management 0 Fit with Strategy 0 performance management system should aim at achieving employee behavior and attitudes that support the organizations strategy goals and culture I performance appraisals should measure whether employees are engaging in these behaviors I feedback should help employees improve in those areas 0 When strategies change gt HR should help managers assess the performance management system gt should change the new strategy I Validity o extent in which a measurement tool actually measures what is intended to be measures I case of performance appraisal gt validity refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of information 000 57 Jolt Actualfi True Performance Job Measre Performance Contarminati w Deficiency 0 Reliability 0 regard to performance measure reliability describes the consistency of the results that the performance measure will deHver I Interrater reliability 0 is consistency of results when more than one person measures performance 0 low interrater reliability I rate an employee39s performance on a scale 15 gt differ depending on who is sconng I testretest reliability 0 refers to consistency of results overtime o if a performance measure lacks testretest reliability gt determining if a employee s performance has truly changed over time will be impossible o Acceptability 0 whether or not a measure is valid and reliable gt must meet the practical standard of being acceptable to the people who use it 58 I for example people who use the performance measure must believe it is not too time consuming 0 measure is unfair gt they will not use the feedback as a basis for improving performance 0 Specific feedback 0 performance measure should tell employees what is expected of them and how they can meet those goals of supporting strategy and developing employees I helps project management meet goals of supporting strategy and developing employees I if measure does not specify what an employee must do for help the organization achieve its goals it does not support the strategy 0 if fails to point out employees performance problem gt not know how to improve March 10th 0 Exam Still Wednesday 0 outline of an exam 0 Criteria for Effective Performance Management 0 something we need to get right gt assessed fairly I self esteem and practical implications 0 determines promotion 0 pay raise I concern to organization 0 doesn39t want them to be unhappy 0 less engaged with work 0 leaving 0 calling in sick I sends strong signals on where they should be putting their efforts 0 Workplace dimensions of focus gt will focus employees to employers goal gt performance evaluation gives influence gt sending signals to what39s important 59 a endance interpersonal skills accuracy teamwork o 1 Strategic fit I use relevant performance dimensions 0 explain what it is from textbook I start with what is organization trying to achieve and then you look at contents of evaluation tool and is it consistent with what the company is trying to do 0 can39t see a link with what you are evaluating and what the company is evaluating gt strategic fit is low 0 attendance is not there gt they can39t make customers happy gt low linkage when compared to interpersonal skills and product knowledge lead to customer satisfaction 0 2 Validity gt evaluated all relevant aspects YOu don t need them all I avoid deficiency o deficiency gt including something that should be includedverify I avoid contamination o irrevelent included I use qualified raters 0 have people rating performance who nothing about the work gt won39t get accurate evaluations 0 common rater errors 0 need to have proper training and knowledge of topic 0 halo errors gt based on their participation in class gt may influence assessment in exam gt excellent student might get a higher grade when compared to someone you don t know 0 horns error gt shows up late to class sleeps in class gt may give a lower to him gt may influence assessment in exam because you a a negative perception of him 60 I provide clear guidelines 0 checklist o 3 Reliability 0 provide clear guidelines 0 give Kim s exam to 3 ta s and say rate between 0 50 I will get completely different numbers 0 nothing to based it off because its up to TA s discretion 0 if several TA s can use the same guidelines and come up w same scored I reliable gt valid 0 4 Acceptability 0 provide mechanism for employee input 0 an assessment that is clear on reliability and validity I inaccurate and people will be unhappy feedback I Yes I do agree with this evaluation I No I do not agree w this evaluation give people an area to improve 0 O 0 organization ofjustice I perceptions of fairness I talking about 2 but they are three I 1 distributive justice 0 perceptions of outcome fairness o is your grades performance rating I can never really happen gt everyone cannot get a 100 0 process for evaluating performence gt is innaccurate gt low vadility o employess think it is unfair gt procedual justice is low I 2 Perceptions fairness of process 0 very clear what she was looking for and where you actually you lost points 0 they weren39t random point deductions 0 can go a long way of creating a system which is fair 0 mitigates the impact of low distributive justice 0 5 Specific feedback 0 I know where I messed up and I know how to fix it 61 0 Graphic rating scalelow specific feedback gt not very specific doesnt go into much detail All you get is a number 1 Hnmvliaga I Creativity o if bars is being used talk about that 0 Step 1 Deciding What to measure 0 3 general types of performance criteria I 1 skillsabilitiestraits 0 what they have gt what they bring to the job I 2 Behaviors 0 answers phones in a friendly manner 0 delivers reports o IBM till mid 80 s 0 had no competition unlike now 0 up until late 80 s I most managers didn39t know how to usemake budget gt facetime was main reason of evaluation gt just because you are there doesn39t mean you are doing anything I changed to results you delivered 0 not based on how much time you spend at the office I Results 0 makes more sense 0 less concerned of how you get therebut that you got there 0 Behaviors v Results I behabiors you dont want employees engaing in gt unethical illegal ways gt to boost ruslts Wall Street I if you focus on quantity of scales then the sales area may look sloppy I Teacher performance gt results are hard to measure 0 public education gt desperate need in changefixing 62 o historically gt teachers in this country have not been evaluated formally gt make teachers more accountable gt not on seniority or major pay raise o assess teacher performance 0 standardized tests 0 improvement of students outcomes 0 drop out rates 0 SAT cores Problems 0 might not have resources 0 motivation of student 0 family support 0 socioeconomic status 0 not fair to hold them accountable because so many factors are out of their control 0 Step 2 Deciding How to measure performance 0 Rating individualsagainst set standards I rating attributes I rating behaviors 0 Measuring results I management by objectives 0 Making comparisons I ranking 0 set standards I forced distribution 0 only 5 will get an A 0 only 15 will get a B 0 how well you do put in revelation to your peers 0 rank and yank system 0 GE bottom 10 for 2 years gt youre pulled out Exam 2 Complete Chapter 11Estabishing a Pay Structure Book Notes 0 Decisions about Pay 0 2 aspects of pay structure gt policies rather than ee s earnings 63 I job structure 0 the relative pay for differentjobs within the organization I pay level 0 the average amountincluding wages salaries and bonuses the organization pays for a particularjob 0 pay structure I the pay policy resulting from job structure and paylevel decisions 0 helps achieve goals related to employee motivation cost control and the ability to attract and retain talented human resources I simplifies the process making decisions about an individuals employees pay by grouping together employees w similarjobs 0 Legal requirements 0 equal pay for equal work 0 minimum wage o overtime pay 0 restrictions on child I Equal Employment Opportunity 0 goal for employers equal pay for equal work 0 job descriptions job structures and pay structures can help organize and uphold laws 0 laws do not guarantee equal pay for 0 men and women 0 whites and minorities because so many other legitimate factorseducation gt occupa on 0 one explanation for historical lower pay for women 0 employees have undervalued work performed by women 0 placing a lower value on women gt predominantly women occupations some policy makers say 0 remedy comparable worth gt I uses job evaluation to establish worth in terms of difficulty and importance gt ifjobs have the same out of points they get equal pay 0 controversial 0 economic standpoint gt higher wages 64 o freemarket economy people will take differnces in pay into account when they choose a career I Minimum wage o the lowest amount that employers may pay under federal or state law stated as an amount of pay per hour 0 Fair Labor Standards ActFLSA 0 establishes minimum wage gt 725 0 permits a lower training wage I workers under age of 20 upto 90 days gt approximately 85 of the minimum wage 0 social policy standpoint I issue tends to be lower than the earnings required for a full time worker to rise above the poverty level I living wage gt min wage based on the cost of living in a particular region I Overtime Pay 0 employers must pay higher wages for overtime gt 40hours o is 15 more than ees hourly rate 0 exempt employees 0 managers outside sales people and any other employees are not covered by the FLSA requirement for overtime pay 0 depends on employees jobs responsibilities salary level and salary basis 0 Nonexempt employees 0 employees covered by the FLSA requirements for overtime pay I most workers who are paid hourly I Child Labor 0 restrictions apply to children under 18 0 1617 may not be employed in hazordous occupations 0 1415 may only work outside school hours for alimited time penod 0 under 14 may not employed in work associated w interstate commerce except in a nonhazardous job for a business owned by parents 0 exemptions from ban include acting babysitting and delivering newspapers 65 0 16 gt working papers or work permits I Prevailing Wages gt govern pay policies of federal contractors 0 must pay their employees at rates at least equal to the prevailing wages in the area gt based on 30 of local labor force I based on relevant union contracts 0 Davis Bacon Act of 1931 0 covers construction contractors gt more than 200 in federal money 0 Walsh Healey Public Contracts Act 1936 0 covers all government contractors receiving 10000 or more in federal funds 0 Economic Influences on pay I Product Markets 0 incudes the organizations that offer competing goods and services 0 competing to serve the same customers I excel in quality customer service and price 0 an important influence on price is the cost to produce goods and services for sale I cost of labor gt important I labor markets 0 must obtain human resources in labor market 0 ee s prefer higher paying jobs 0 Pay level deciding what to pay 0 size of range depends on details of organizations competitive environment I higher pay may be an investment in superior human resources I paying above going rate may be an advantage I Gathering Market information about Market Pay 0 Benchmarking 0 procedure in which an organization compares its own practices against those of successful competitors I in terms of compensation gt pay surveys 0 HR gt whether to gather data focusing on a particular industry or on job categories 0 Industry specific skills to make specific product vs job cassificationsskis that need to be transferred 66 I Employee Judgement about Pay fairness o motivate employyes if fair 0 Judging Fairness o equity theory I meaure outcomes such as pay in terms of their input 0 compare their pay and contribution aganist several yardsticks I What they think employees in other organizations earn for doing the same job I empoyees holding differntjobs in organ earn I employees same organ earn for same job I communicating fairness 0 Equity theory states employees care about their pay relative to what othersare earning and that these feelingsare based on what employees percieve I Job Structure Relative value of Jobs 0 job evaluation 0 an administartive procedure for measurig the relative internal worth of the organiations jobs I identifies compenable factors 0 characteristcs of a joob that organizations value and choose to pay for 0 Pay Structure Putting it all together I reflects what the organization knows about market forces and its own goals and the relative contribution 0 within this structure they apply info by establishing some combination of pay ratesm pay grades and pay ranges I Pay Rates 0 organizations main concern is that math what people are earning in comparable jobs 0 Pay policy line I a graphed line showing the the mathamatical relationship between job evaluation points and pay rates I reflects the pay structure which does not always match rates in organization I When job structure and Market data conflict 67 0 one approach is to stick to job evaluations and pay according to employees worth in organization 0 other extreme could pay entirely on market forces 0 drawbacks I 1 pay rates are unfair Pay grades 0 sets ofjobs having similar worth or content grouped together to establish rates of pay 0 drawback grouping jobs will result in rates of pay for individual jobs that do not precisely match the level specified by the market and the organizations job structure Pay ranges o a set of possible pay rates defined by a minimum maximum and midpoint of pay for employees holding a particularjob or a job within a particular pay grade 0 typical approach use the market rate or the pay policy line and the midpoint of a range for the job or pay grade Pay differentials o adjustment to pay rate to reflect differences in working conditions or in labor markets Alternatives to Jobbased Pay 0 delayering o reducing the number of levels in the organizations job structure I by combining more assignments into a single layeror by reducing the number of levels 0 broad bands 0 the broader grouping I reduce the opportunities for promoting employees so organizations that eliminate layers in theirjob descriptions must find other ways to reward their employees 0 skill based pay systems 68 0 pay structures that set pay according to the employees levels of skill or knowledge and what they are capable of doing I paying for skills makes sense 0 disadvantages I rewards employees for acquiring skills but does not provide a way to ensure that employees can use their new skills 0 paying employees more for learning skills the employer is not benefiting from I Pay Structure and actual Pay 0 structure represents the organizations policy 0 HR departmnet compares actual pay to pay structure making sure that policies and practices match 0 compa ratio 0 ratio of average pay to the midpoint of the pay range I Current Issues Involving Pay Structure 0 Pay During Millitary 0 some employers have chosen to support their employees by paying the differnce between the millitary and civilian earning for extended periods 0 Pay for Executives 0 very high pay executives achieve 0 employees though pay was inequitable and adjusted their behavior to provide lower inputs by putting forth less effort to satosft customers I to avoid this situation 0 organizations need to plan not only how much to pay managers and executives but also how to pay them Ch8 Managing Employee s PerformanceBook Notes 0 Performance Management 0 the process through which managers ensure that employees activities and outputs contribute to the organization s goals 0 The process of Performance Management 69 0 annual performance appraisal gt many benefits I can tell top performers they are valued encourage communication from employer to manager consistent standards 0 Steps in the Performance Management Process 0 000 0 Step 1 define performance outcomes for the company division and department Step 2 develop empolyee goals behavior and actions to achieve outcomes Step 3 provide support and ongoing performance discussions Step 4 Evaluate performance Step 5 identify imporovements needed Step 6 Provide consequences for performance results 0 Puropose of Performance Management 0 organizations esablish performance management to meet 3 broad purposes I strategic administrative and developmental Strategic purpose I effective performance management helps the organization achieve its business objectives 0 linking employees behavior w organizations goals I starts with expectations administrative purpose I performance management system refers to the ways in which an organizations use the system to provide information to provide info for daytoday decisions about salary benefits and recognition programs 0 decision making related to termination poor behavior hiring and layoffs developmental purpose I serves as a basis for developing employees knowledge and skills 0 makes employees aware of strengths and where they can improve 0 Criteria for Effective Performance Management 0 Page 59 on doc 0 Methods for measuring Performance Making Comparisons I may require rater to compare one individual39s performance with that of others 70 I ranking gt best average poor 0 Simple rankings I method of performance measurement that requires managers to rank employees in their group from the highest performer to the poorest performer o Forced distribution Method I method of performnce that assigns a certain percentage of employees to each category in a set of categories 0 assigns a certain percentage of employees to each category in a set of categories 0 ex 5 exceptional 25 exceds standards 55 meets standard 10 Room for improvemnt 5 NA 0 Paired Comparision Method I method of performance measurement that compares each employee with each other employee to establisj rankings 0 time consuming o useful for distribute pay raiseslayoffs Rating Individuals 0 Rating attributes gt graphic rating scale I method of performance measurement that lists traits and provides a rating scale of each trait The employer uses the scale to indicate the extent to which an employee displays each trait o 15 1 poor 5 Excellent I ow reliability 0 mixed Standard Scales I method of performance measurement that uses several statements describing each triat to produce a final score for the that trait 0 most popular way to measure performance in organizations Rating Behaviors 0 Critical Incident Method I method of performance measurement based on managers records of specififc exmaples of the employee acting in ways that are either effective or ineffective 0 requires significant effort and may not support comparies among employees 0 Behaviorally anchored rating scale I method of performance measurement that rates behavior in terms of a scale showing specfifc statements of behaviors that describe different levels of performance 71 o Behavioral Observation Scale I a variation of BARS which uses all behaviors neccesary for effective performance to rate performance at a task 0 drawback amount of information requires gt may use 15 behaviors to define level of performance 0 Organizational Behavio Modification I a plan for managing the behavior of employees through a formal system of feedback and reinforcement c has 4 components 0 1 Define a set of key behaviors neceessary forjob performance 0 2 use a measurement system system to assess whether the employee exhibits the key behaviors o 3 inform employess of the key bahavios perhaps in terms of goals for how often to exhibit the behaviors o 4 provide feedback and reinforcement based on employees behavior I can be effective 0 Measuring Results I focus on mangaing the objective measurable results of a job or work group 0 productivity I Management by ObjectivesMBO o a system in which people at each level of the organization set goals in a process that flows from top to bottom so empoyees at all levels are contributing to the organizations overall goals these goals become the standards for evaluating each employes performance 0 very poitive effect on an organizations performance 0 evaluation of results can be less subjective 0 results orientated performance Total Quality Management 0 employees and their customers work together to set standards and measure performance gt overall goal being improving customer satisfaction 0 two types of TQM feedback 0 1 subjective feedback from managers peers and customers about the employees personal qualities such as cooperation and initative 72 o 2 objective feeback based on the work procecess I statistical quality control gt charts to detail causes of the problems 0 Sources of Performnce Information 0 360 Degree Performance appraisal I performance measurement that combines information from the employees managers peers subordinatesself and customers 0 Managers I mostused source of performance information 0 Peers I observes where the supervisor often does not observe o Subordinates I people reporting the manager gt have the best chance to see how well a manager them 0 problems power relationship 0 self I self ratings are rarely used gt tendency to inflate 0 Customers I only person who directly observes service performance 0 customer evaluations of employees performance I only appropriate 0 1 requires direct service to customer 0 2 evaluations are intersted in determing products and services consmers want 0 Errors in Performance Measurement 0 Types of rating errors I people tend to give a higher evaluation to people they consider simmilar to themselves 0 decisions may be discrimintory gt race and sex I contrast error 0 rater compares an individual not against an objective standard but against other employees I Distributional Error 0 they tend to use only part of rating scale 0 error is called leniency gt rates everyone near the top 0 strictness gt lower 0 central tenency gt middle I raters led their opinion get in the way 0 halo error gt favorable bias 73 o horns error gt negative ratings 0 Ways to reduce Errors 0 make errors unitentionally o raters can be trained gt videos 0 Political Behavior in Performace Appraisals 0 unnitentaonal errorS gt inccurate performance measurement I distort an evaluation to advance personal goals 0 appriaisal politics I most likey gt raters are accounntable to the employee being rates the goals of the rating are not compatiable with one another 0 calaibration meeting I meeting at which managers discuss employee performance rating and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors 0 Giving Performance Feedback 0 Scheduling Performance Feedback I regular expected management activity I frequent performance feedback gt most effective when the info does not surprise the employee I employees gt motivated and directed by regular feedback 0 Preparing for a Feedback Session I managers should be well prepared for formal feedback session I manager should create the right context for the meeting I managers should enable employee to be well prepared 0 purpose to define areas for improvement 0 Conducting the Feedback Session 0 tell and listen approach I managers te employees their ratings and let the employees explain their side of the story 0 problem solving approach I managers and employees work together to solve problems in an athmoshphere of respect ad encouragement o superior approach 0 content of feedback should emphasize behavior not personalities 0 Finding Solutions to Performance Problems 0 Lack of ability I may offer coaching training and more detailed feedback 0 restructure the job 0 Lack of motivation 74 I simple as more postive feedback 0 need areferal for counsling or help with stress management 0 Lack of Both I directs the employee s attention to significance of problem withholding rewarsa or proving specific feedback 0 Legal and Ethical Issues in Performance Management 0 laesuits related to performance management usually involves charge of discrimination or unjust dismissal I basis of race 0 guidelines in Uniform guideline on Employee Selection Procedures 0 Electronic Monitoring and Employee Privacy 0 computers gt monitor productivity and other performance measures electronically can improve productivity gt also generates privacy concerns threaten the workplace gt make it an electronic sweatshop no reason to monitor gt if nothing wrong is happening may help gather info for coaching and helping them to develop skills March 25th 0 Employee Pay Plans Objectivesstarts at 1 0 most important element in employee exchange I determines quality of life 0 symbolic implications I how we feel about ourselves gt how much money they get paid gt successful wealthy intelligent hardworking organization is paying above market 0 doing better than their competitors 0 really cares about their employees 0 employee will work harder gt know they have a good thing going 0 companies always think about their labor cost I LC Ees costEe I ProductivityEesproductivitylEe I companies think about reducing costs 0 reduce headcount gt layoffs gt results in loss of productivity 0 1 Efficiency 75 o attract and retain qualified employees control costs motivate high performance not all pay plans gt motivate 0 different companies focus on different aspects 0 getting paid what you re worth 0 2 Equity 0 people who work harder get paid more higher education more skilled work 0 want to get paid fairly o 3 Compliance 0 Developing the Pay Plan 0 Step 1 Internal Consistency I focus on internal comparisons o assessing similarities and differences among jobs 0 example I Athletic director at Umass vs Amherst College 0 Umass gt will get paid more gt bigger program gt division 1 gt reaches more students gt brings in a lot of revenue donations more applications I varies depending on organization gt assessing relative worth gt depending on location 76 I focus on internal equity 0 establishing equal pay forjobs of equal worth and acceptable pay differentials forjobs of unequal worth 0 obviously CEO will get paid more but the debate is amount more in USA 4OOX more 0 Establishing internal Consistency Fairness Perceptions amp Equity Theory 0 My Pay I My qualifications I My Work done I My product Value VS 0 Other s Pay I other s Qualifications I Others work done I Others product value 0 Internal Consistencycont d 0 Key considerations I Egalitarian v hierarchical Structure I Job based v personbased structure 0 Pay plan 0 job based I flipping burgers o skill based 0 knowledge based pay plan I typical teacher 0 Key activity Evaluation of worth I Ranking most subjective I Classification less subjective 0 pay grades are defined 0 has to have certain characteristics I Point Method lesat sunjective 0 most complicated to implement 0 most useful in terms of setting up pay plan 0 Evaluation of Worth The Point Method I 1 Select compensable factors 0 characteristics ofjobs that the organization values and chooses to pay for I only include those that seem to be most important 77 consulting firms 0 can maintain relationships with clients 0 more work with clients gt interpersonal relations gt paid more than data anyalst in terms of interpersonal relations 2 Assign relative weigts to each factor 0 reflect relative importance of the factor 3 Define factor degree 0 represent differnet levels of requirements associated with each factor 0 out of 100 0 Education 0 5 gtjob requires PHD o 4 gt masters o 3 gt BSBA o 2 gt AAVocational O 1 gt HS HR manager Compen Factors Weight Factor Degrees Total Points 0 doesnt change 0 doesnt change 0 changes education 25 4 100 experience 25 5 125 system rep 10 4 40 interpersonal 2O 4 80 monetary 2O 3 60 405 I will go into Pay structure graph on page 77 78 Book Notes Chapter 12 Recognizing Employees Contributions with Pay 0 Incentive Pay I forms of pays linked to an employees performance as an individual group member or organization member 0 salesperson gt commission production company gt bonuses I Make employees try harder get more creative gt versus without incen ve I high performance high pay 0 Incentive plan to motivate employees to contribute to organization s successes the plan must be well designed I performance measures are linked to organization s goals employees believe they can meet performance standards organization gives ee s the resources they need to meet their goals ee s believe reward system is fair pay plan takes into account that ee s may ignore any goals that are not rewarded 0 Pay for individual Performance 0 variety of incentives I piecework rates I standard hour plans I merit pay I individual bonuses I sales commision o Piecework rates I a wage based on the amount of workers produce 0 Straight Piecework Plan I incentive pay in which the employer pays the same rate per piece no matter how much the worker produces 0 Differential Piece Rates I incentive pay in which the price rate is higher when a greater amount is produced I aka rising and falling differentials I produces more than standard output gt piece rate is higher 0 Standard hour pay I incentive plan that pays workers for work done in less than a preset standard time 0 standard time to complete a task 79 encourage employees to work as fast as they can but not necessarily to care about quality and customer service only suceed if employees want the extra money more than they want to work at a pace that feels comfortable 0 Merit Pay a system linking pay increased to ratings on performance appraisals higher pay range gt lower comparatios gt ee s eligible for a bigger merit increase advantage 0 makes reward more valuable by relating it to economic conditions Drawback 0 conditions can shrink the available range of increases 0 er s gt can quickly get expensive 0 Performance Bonuses reward individual performance bonuses are not rolled into the pay base 0 ee must reearn them during each performance period can be extremely effective gt gives organization great flexibility in deciding what type of behavior to reward motivate employees with one time bonuses 0 Sale commissions incentive pay calculated as a percentage of sales 0 pay for group performing o Gainsharing group incentive program that measures improvement in productivity and effectiveness and distributes a portion of each gain to employee addresses the challenge of identifying appropriate performance measures for complex jobs successful when and more page 380 0 management commitment 0 goal setting 0 employment security 0 Scalon plan a gainsharing program in which ee s receive a bonus if the ration of labor costs to the sales value of production is below a set standard 80 0 ratio low enough to earn the bonuses workers have to keep labor costs to a minimum and produce as much as possible with that amount of labor 0 Group bonuses and Team awards rewards member of a specific group for attaining a specific goal usually measured in terms of physical output carefully set the performance goals for these incentives so that concen for costs or sales does not obscure other objects such as quality customer service and ethical behavior 0 Pay for Organizational Performance 0 Profit sharing incentive pay in which payments are a percentage of the organizations profits and do not become part of the ee s base salary not yet clear if it helps organizations improve 0 raises questions about effectiveness and equity 0 adequate communication is required 0 Stock Ownership ecourage ee s to think like owners focus on sucess as whole drawbacks simmilar to those of profit sharing Stock ownership 0 stock options and employee stock ownershipplansESOP S 0 stock options rights to buy a certain number of shares of stock at a specified price recent scandals gt stock options incentive of pay 0 Employee Stock Ownership Plans ESOP I an arrangement in which the organization distributes shares of stock to all of its employees by placing it in a trust 0 receive regular reports on their values 0 most common form of employee ownership I raise a of issues 0 negative side carry a significant risk for employees 0 law must invest at least 51 of its assets in the company s own stock 0 problem with the companies values can take away significant value from ESOP S I attractive 81 0 tax and financing advantages build pride and commitment to the organization 0 Balanced Scorecard I a combination of performance measures directed towards the company long and short term goals and used as the basis for awarding incentive pay I financial goals to satisfy stockholders combine the advantages of different incentive plans gt helps ee s understand the company39s goals what is expects companies to accomplish o Processes that make incentives Work 0 Participating in decisions I employee participation in payrelated decisions gt employee empowerment o contribute to the success of an incentive plan 0 Communication I demonstrates that the payplan is fair I ee s tend to be concerned about changes 0 Incentive Pay for Executives 0 encourage executives to develop a commitment to the organization s longterm success I executive compensation 0 often combines short termlong term I short term incentives 0 includes bonuses on years profits return on tax advantages the actual payment of the bonus is deferred I long term 0 include stock options and stock purchase plans gt rationale executives will do whats best for the company 0 Performance Measure for Executives I usefu for designing executive pay I may vote to indicate their approval or disproval of company executive pay plans 0 Ethical Issues I incentive pay lays groundwork for significant ethical issues March 30th 2015 0 Implementing the Point Method 0 Read the Job description 0 Select an appropriate degree for each factor 82 0 Multiply the degree by the Weight 0 Total the points 0 Developing the Pay Plan 0 Step 2 External Competitiveness I Focus is on external comparisons 0 pay relationships among organizations competing in the external labor market 0 pay comparisons for the same job across different organization 0 External Competitiveness Key Activities I 1 setting a pay policy relative to competitors 0 option 0 O O 0 lead lag match variable 0 Typical Pay Package you will see in US Base Pay 0 0 set relative to the market I can be abovelow additional pay gt at risk gt dependent on performance gt such a small portion I merit pay I profit sharing 0 Variable Pay 0 0 Base pay gt kind of low Additional pay gt tied to performance gt huge portions vary across years I Constraintleonsiderations 0 look at labor market conditions 0 whether the market is tight v soft 0 Product Market 0 O competitiveness gt elasticity I lower labor costs inelastic gt buy it regardless of price I higher labor costs 0 Microsoft 0 maintain best brightest I high demand not even close to supply 83 0 Step 2 Key competitiveness Key activities 0 Measuring the market I the myth of the market wage o employers gt wage takers have to pay going rate gt myth 0 Estimating the market pay line 0 regression analysis 0 salaryOje points x 0 reflects market pay per ke point 0 je job evaluation 0 4 creating a pay policy I adjust market pay gt if its above its a lead pay and if below its a lag policy 0 5 creating pay gradesbands o Comparable Worth I a doctrine that maintains that women performing jobs judged to be equal on some measure of inherent worth should be paid the same as men The problem earning gap The cause Differences in human capital or o salary b1 educ BZ experience eerror o 000 occupational crowding into lower paying jobs 0 choose or discrimination April 1st 0 Quiz Monday 0 Test April 13th gt on today s material 0 look online for additional info 0 Developing the Pay Plan 0 pay is not the only thing that motivates us gt need to structure pay plan s very carefully gt seeting it up to link it to performance is not easy 0 end of step 2 gt complete pay structure 0 pay grades associated with a pay range I where are employees going to fall in this range gt step 3 step 3 Recognizing Employee Contributions 84 0 focus on comparisons of individual employees doing the same job for the same firm flat pay rates gt unions gt donot trust managers vast majoriies in US tie some of wmployees pay to performance based on contributions 0 Key issues 0 Should pay be tied to performance I most answer yes o If so what is the best method for tying pay to performance 0 Choosing a Technique for Rewarding Peerformance An expectancy theory framework Effort 7 Task Goal choipliahme IF Rewam my valance Exectancy a it Ina ruffle O t lllty39 0 need to have all three for a play plan to be motivating Need Definitionsbackboard and use terminology in model I expectancy I instrumentality I valence o Expectancy theory 0 talk about all three 0 Assessing the Likely Impact of a PayforPerformance Plan on motivation o The Analysis I 1 To what outcomes is the pay increase tied I 2 Are employees likely to believe they can do it 0 how much control do employees have over the outcome 0 teachers gt have limited control on students outcome gt so many factors 0 all perceptions gt believes 0 Do employees have the needed skills knowledge and abM esgt o If not expectancy perceptions are low 85 0 being asked to do something in which they have very little control I 3 The Anyalysis cont d o 3 Do employees believe that if they reach the goal a reward will follow 0 answer question independently 0 consider employee relations Do ee s trust management I if they dont trust angeres gt may not not trust will follow through from manager gt instrumanality will be low 0 consider the firms ability to pay I increase bay gt going bankruypy gt valency low 0 Consider the accuracy of Performance evaluations I merit pay 0 taskgood effort is high 0 1 individual performance gt going to get a pay increase gt whole basis of a pay plan I not going to get pay raise because performance is not measure correctly I merit ranking gt is wrong incorrect gt problem with instrumentality Problem is good performance will be recognized and evaluated gt instrumentality low o If not then instrumentality perceptions are low I 4 Is the reward valued by employee 0 Just noticeable differneceJND o Umass faculty gt unionization 0 pay gt ajust of living gt everyone 0 merit ranking gt quite inaccurate gt merit increase is at most 15 don t work for this work incrcrease gt 86 left with small amount not a noticeable difference gt not motivating o if not valance is low 0 What do YOu Predict o Du Pont GOOD I Ees put 6 of scheduled pay raise at risk in exchange for I Share of company profits if it achieves profit goals I if Du Pont achieves less than 4 earnings growth Ees will lise the pay put at risk administered at the buisness unit level20000 Ees no mechanism for employee participation economy is in a slump PittSharing Effort Equotquot Taekf nal Expectant3y 1 increase profits if people are not buying them there is no profit single employee does not have much control over factor Next question Will receive a reward I not much in this case I nothing to sugest that instrumentality is low Problem is ostly expectancy fourth question 87 ThlrEEhl ld Cree Eerl empleyee gete I Sevinge lnt ereelem ete heme rlt reeehee threehele ef JN net neti eeele 3 net meti eeti n o What Do You Predict o Yearly pay increases are based on performance I ee s are told that if they perform theirjobs wll they woll recieve a pay increase Plan implementation I Performance is measured using a highly subjective performance evaluation system 15 Pay increases from O 3 expectancy is high not accurately measured even if you can perform gt instrumentality is low 3rd question 4th question valence assess maximum opportunity I focus on 3 analysis gt argue it either way gt whether high valencelow valence 0 April 6th 0 What do You Predict o AampP 0 UNION AGREES TO A 25 PAY CUT IN EXCHANGE FOR 0 OPPURTUNITY FOR BONUSSES IF LABOR COSTS are reduced 88 Tl lli39ESlh llij i Prefiie Ineef inrlpreve lei grew eeri elhe 1 0 total earnings could depending in the reduction in labor costs lag meet or exceed market wages adminstered at the store level sugestion system used to solicit and implement cost saving idea 0 The anyalysis o 1 labor costs go down 0 1 can argue it either way gt expectantcy I suggestion system c oppurtunity to implement there idea unlike profit sahring 0 how much impact I store size 0 can make more of an impact I expectancy is reduced 0 how much control an employee has to the outcome 0 little gt depend on other employees I effort gt expectancy gt moderate o 2 just says bonuses gt instrumentality I low instrumentality gt Union agrees to a 25 pay cut I UNion agreed to it gt must be some level of trrust o 3 Valency I potential for exceeding market pay 0 Valence o Is it worth it 0 worth of something is in the eyes of the beholder Can earn up to 15 in salary I talk about that in your answer n whether it is even noticeable o instrumentality o perception and beliefs if I do what the organization asks me to do will the employer pay me what they said they would Gain shairing o Compa ratio gt should be somewhere around 1 gt average is 1 0 mm o midpt 0 max actual pay range midpoint gt want to pay at midpoint 80000100000 8 gt below the market want to match the market 120000100000 12 gt above the market 89 o merit guidelines 0 needs improvement gt 1st and 2nd pay quartile gt still getting raise new still earing the ropes trying hard gt motivating them What do you predict Current Plan employees paid 11hour They make from 4070 bagels an hour with an average of 50 bagels an hour Proposed Plan Piece Rate employees will be paid 20bagel 50 bagels 20 10hourmarket rate 60 20 12hour EXPECTANCY Not rocket science to make bagels gt if someone can make 70 bagels then everyone can needs to be bagels that can be sold gt exactly hy you should think through the pay plan gt quality also makes a difference producing more needed gt doesnt really help company in the end and bagels are donated whose going to keep track of bagels cant set quotas for limit for store gt slower vs faster gt VALENCY high gt people have the capacity to make 70 bagels an hour lnstrumentality increase in pay April 8th 2015 Employer provided Benefits 0 the indirect form of total compensation All benefits and services other than pay for time work they are provided to employees in whole or in part by their employees 0 IssuesChallenges o spends about 3040 of payroll so if paid 50000 actually 75000 0 maintaining a competitive position in product and labor markets I in order to compete in labor market gt floor level gt health insurance gt versus cap gt pay more than most I In this country gt health insurance by employers and retired medicaid 0 US employers are spending more on benefits than other parts of the world 90 I enough to be competitive in labor market and product market 0 meeting the benefits needs of a diverse workforce I no longer one size fits all gt The health care Controversy in the US o 2 Issues 0 1 Coverage I millions of citizens who dont have health insurance gt without it is very expensive I prior to Affordable care act gt 4050 million uncovered now 1014 million less 0 Who are the unisured 0 people who earn too much to qualify for medicade gt not deadbeats gt cant afford to pay out of pocket since employers do not provide it 0 only country in the developed world wout it o 2 Costs I spend much more on healthcare gt we have less to show in our outcome I rapidly rising premium 0 whether you use it or not you have to pay for it I National healthcare expenditures as a percentage of GDP is 177 and rising I impact on competiveness o The Rising costs of Health Care Some Explanations perverse incentives consumer ignorance medical wero declining health of Americans 0 pharmaceutical and technology advancements 0 One explaination of the Rising Costs of Health Care The Problem of Perverse lncen ves o 1 Favorable Tax Laws I minimal obligation to all our citizens o a strong incentives for employers to provide generous benefits 0 b no incentive for employers to shop for cost effective plans 0 weak competiveness pressures in the health insurance market 0000 91 O O 2 Generous Health Insurance Plans I a results in lowering the cost of health care to the consumer which 0 moral hazard problem gt problem of incentives o MCltMB marginal benefit 0 20lt 100 0 on anything discretionary gt people look at price If its cheaper more likely to go o moral hazard increases when you have lower costs 0 snifer gt go see the doctor if its free 0 The more you pay the less disincentive increase the demand for health care servicemora hazards weakens competitive pressures in the healthcare market 0 you only have to pay a certain amount gt insurance pays the rest 3 Traditional Fee firService Plans I a unconditional reimbursement for services 0 implies doctors are unethical gt financial incentive gt ascribe a lot more services 0 4 The Result of tax laws and HI plans I a high demand I b limited competition 0 increased prices 0 Affordable Healthcare Act Coverage 0 000000 expands medicaid coverage gt some of the states paid by federal and state provides subsidies to lowincome families requires employer contributions establishes insurance exchanges extends dependent eligibility to age 26 bans insurers from denying coverage to those preexisting conditions I bankruptcy gt can be traced to people with unexpected health issues I problem of adverse selection 0 only people who need it will sign up for it People will spend their money elsewhere I individual mandate 0 now everyone is required to have some sort of health insurance 92 o if you don t have it theres a 700 but if health insurance costs more there is no incentive to get health insurance if you don t need it Frequency 1 I Chapter 13 Employee Benefits Book Notes 0 Employee benefits 0 compensation in forms other than cash Role of Employee Benefits 0 contribute to attracting retaining and motivating employees 0 helps tailor their compensations to employees needs 0 harder for employees to understand and appreciate 0 Benefits include 0 Social security contributions pensions and retirement saving plans 0 medical and retirement benefits 0 one every dollar spent on compensation 30 cents are spent goes to benefits I law requires requires SS and unemployment insurance I tax laws make benefits more desirable I large employers gt better deal on insurance Benefits required by Law 0 Social Security 0 the federal old age survivors disability and health insurance program which combines old age retirement insurance hospital insurance and medical insurance 0 share cost through payroll tax 93 o Unemployment Insurance 0 a federally mandated program to minimize the hardships of unemployment through payments to unemployed workers helping in finding new jobs and incentives to stabilize employment 0 federal and state taxes 0 experience rating 0 the number of employees a company has laid off in the past and the cost of providing them with unemployment benifits I employers w history of laying off large share of their workforce gt pay higher txes than those with few layoffs c To recieve benifits Must meet all four conditions 0 1 they meet requirements demonstrating they has been employed often 52 weeks of four quarters at a minimum level of pay 2 available for work 3 actively seeking work gt requirement includes restering at local unemployment office 0 4 they were not discharged for a cause did not quit voluntairily and not out of work over labor dispute 0 workers who meet requiremnets earn benifts r the level set by the satate gt 12 of persons previous earnings for 26 weeks I can be extended upto 13 weeks gt states w sustained unemployment rates Workers compensation 0 state programs that provide benifits to workers who suffer workrelated injuries or illnesses or to their survivous o operate under nofault liability I employee doesnt have to show that employer was grossly negicant in order to recive compensation o employer looses protection gt intentionally contributes to dangerous workplace 0 910 US workers are covered by state workers compensation laws dissability income medical care death benifits rehabilitive service 01 o 2 o 3 o 4 VVVV 0 amount of income depends on state gt typically of workers earnings before the dissability gt tax free 94 Unpaid Family and Medical Leave 0 Federal law requiring organizations with 50 or more employeres to provide up to 12 weeks of unpaid leave after childbbirth or or adoption to take care for a seriously ill family memeber or an employes own serious ilnessm take care of urgent needs that arise when a spouse child or parent in the National Guard or Reserve is called into active duty Helath Care Benifits 0 Patient Protection and Affordable Health Care Act 0 Health care reform passed in 2010 that includes incentives and penalities for employers provifing health insurance as a benefit 0 first of provisions insurance I must cover children w preexisting conditions and dependent children through age of 26 and may not impose lifetime limitson coverage or end coverage for people when they get sick I automatic enrollment in health insurance gt required at companies with 200 employees I companies more than 50 employyees gt no health insurance penality Optional Benifits Programs 0 many cover domestic partners 0 Paid Leave o typically 10 days 0 sick leave programs 0 Group Insurance 0 Medical Insurance I of futime employees recieve it 0 Consolidated Omnibus Budget Reconcilliation Act COBRA I federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for upto 36 months following a qualifying event such as a layoff reduction inhours or the employees death 0 Health Maintainence OrganizationHMO o a health care plan that requires patients to recive their medical care from HMO s health care professionals who are often paid a flat salery and provides all services on a prepaid basis 0 tends to cost less than traditional health insurance I employees complain costcontrol incentives work so well they are debued acess to services they actually need 0 Preferred Provider OrganizationPPO 95 o 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 0 quickly grown gt people prefer to use 0 Consumer driven health Plans 0 employees involved as consumers making decisions to lower costs 0 brings together 3 aspects I insurance w a high deductible medical savings account employer contributes to employee controlled expenses below the deductible and health education 0 Employee Wellness Program 0 set of communications activities and facilities designed to change health related behaviors in ways that reduce health risks I Passive programs 0 info and services but no formal support motivation I Active programs 0 counselors who tailor programs to individuals need Life insurance 0 Short term dissability service 0 insurance pays a percentange of diabled employees salary as benifits to the employee for six months or less 0 LongTerm dissability lnsuarnce 0 insurance that pays a percentage of a disabled employee s salary after an initial period and potentionally for the rest of employers life I 5070 0 Long term Care insurance 0 such as nurinh home Retirement Plans 0 Contribury plan 0 retirement plan funded by contributers from the employer and employee 0 Noncontribunary Plan 0 retiremnt pan funded entirely by contributiond from an employer 0 defined benift pan o pension plan that guarentees a specified level of retiremnt income I 2035 0 Employee Retirement Income Security act ERISA 0 federal law that increased the responsibility of pension plan trustees to protect retires established certain rights related to 96 vesting abd portabiity and created the pension Benifit Guaratee Corportion o Benifit Guarentee CoroperationPBGC 0 federal agency that insure retirement benifits and guarentees retires a basic benefit if the employer experiences financial difficulties 0 Defined Contribution Plan 0 retirement plan in which the employer sets up an individual acount for each employee and specifies the size of the investment into that accounts I Money purchase Plan 0 employers specifies a level of annual contributions I Profit Sharing and employee Stock owenership plans 0 incen ve 0 money goes into retirement plabs I Section 401 k c emploees contribut a percentage of their earnings and employers may make matching contributions 0 free employers from the risks that investments will not perform as well as expected 0 easier to administarte 0 Cash Balance Plans 0 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 interst at a predefined rate 0 Goverment Requirementsk for vesting and Coomunication o guarenttes that when employees become particpants in a pension plan and work a specifies number of years they will recieve pension at retiremnet regardless of whether reamianed with the the employer I 1 the employer may vest emploees after 5 years and may provide zerovesting under that time I 2 The employer may vest employees over a 3 7 year peropd with atleast 20vesting in the thrid year and an additional 20 in each yea after the third 0 protect employees by preventing employees from terminating them before they meet retirement afe in order to paying benift benifits 0 Summary Plan Descrpion 97 April 15th I report that descibes a pension plan s funding elgibility requirementsm risks a nd other detaisls Family friendst Benifts 0 family leave 0 child caree o colleeg savings 0 elder care Cafetria Style Benifits o a benifts plan that offers employees a set of alternatives from which they can choose they types and amounts of benifits they wantt o drawback higher adminsitartive coss Employee Relations Chapter 10 OSHA Section 3 0 Definition 0 Activities which seek greater organizational efectiveness by removing bariiers to full employee particpation and compliance with firm policies 0 Activities O 0000 O communicationvoice employee involvement family friendly practices protection assistance discipline and conflict management 0 Protection 0 O the Problems I safety hazards 0 type of hazards you can see you know they are there I health hazards o sometimes takes years to detect 0 exposure to fiberglass I coworkers 0 smoking substance abuse violence third hand smoke Regulatory Protection OHASA I safety standardsvolumes o workplaces gone down considerably 98 0 too many gt some are ridiculous inspections infrequent o chances getting caught not that high nes o relatively low Employer has sole responsibility for compliance calculation is just cheaper not to comply gt basis of criticism 0 not enough incentive to behave in a safe manner laws allow for appeal gt and can keep operating while appealing o Workplace Violence An Emerging Safety Issue 0 Definition an act against an employee that creates a hostile environment and negatively affects the employee either physically or psychologically 0 Includes physical or verbal assaults threats coercion intimidation all forms of harassment o The Challenges of Preventing Workplace Violence identifying workers with the potential for violence 0 1 Profile lists common characteristics but 0 not all workers with these characteristics will engage in violent behavior I crude assessment 0 2 Previous employers are often reluctant to share information o afraid of being sued for defamation Basing hiringfiring decisions on evidence of mental instability os risky o 1 Possible ADA violation I required to show the worker poses a direct threat I personality tests are not always accurate 0 Preventing Workplace Violence and Avoiding Lawsuits o 2 general kinds of lawsuit 1 negligent hiring 2 negligent retention 99 o someone is getting violent gt and you39re doing nothing about it 0 General legal Principles I court recognized that employers do not have crystal balls I the issue is whether the harm was foreseeable o Negligent Hiring I thorough background checks gt all applicants 0 at least have secretary 0 Employees Legal Rights Employment AtWill o The doctrine I employers have historically had the right to discharge an employee for any or no reason 0 evolved from case law I strong legal principle employer can fire you for any given reason 0 Exceptions I National Labor Relations Act1935 I Collective bargaining agreements o unionized I Civil service rules I discrimination laws 0 no written down rule gt case law gt I public policy 0 can t fire them for this reason 0 refuse to purger gt then fire gt not allowed I implied contact I good faith and dealing c When The Right of Employees and Employees Conflict o Practices involving conflicting interests I ban on smokers I spyingmonitoring 0 right to pivacy gt not federlly regulated I regulating office romance I drug tests 100 Chapter 10Book Notes Separating and Retaining Employees 0 Managing Voluntary and Involuntary Turnover o Involuntary Turnover I turner over initiated by an employer often with employees who would prefer to stay 0 terminating for drug use 0 layoff during downturn I termination o discipline problem I try to avoid 0 Voluntary turnover I turnovers initiated by employees often when the organizations would prefer to keep them 0 retire 0 take job with another organization 0 usually organizations worst performers gt quit before they are fired 0 Employment at will I historically if the organizations and employee do not have a specific contract the employeremployee may end the employment relationship at anytime o eroded gt employees gt sue for wrongful discharge Employee Seperation 0 Outcome Fairness o a judgement that the consequences given to employees are just I needs to be consistent I clearly communicate policies regarding consequences for inappropriate behavior I outcomes proportion to behaviors o procedural justice 0 a judgement that fair methods were used to determine the consequences an employee recives I consistent procedured aviodance of bias accuarte info ways to correct mistakes representation of all intersts I ethical standards 0 lnteractional justice 101 o a judgement that the organization crried out its actions in a way that tok employees feelings into account I explanation of decision I respectful treatment I consideration I emphathy 0 Legal rewuirements o Wronful discharge risks I may volate an agreement 0 violates public policy I need to estabilsj and communicating policies for handling misbehavior o discrimination 0 Employees privacy I need to ensure info they gather and use is valuable 0 Notification of LAyoffs 0 Workers Adjustment Retraining and Notification Act I federal law 0 requires an organization with more than 100 employees give 60 days notice before any closinglayoff that will affect at least 50 full time employees 0 Ptogressive Discipline 0 Hot Sove Rule I priciple of discipline that says disciple should be like a hot stove giving clear warning and following up consistent objective immediate consequences 0 ignore warning being burnt 0 Progressive discipline I a formal discipline process in which consequences become more serious if the employee repeats the ofense 0 Alternative Dispute Resolution 0 methods of solving a problem by bringing in an impartial outsider but not using the court system I Open door policy 0 an organization39s policy of making managers available to hear complaints I peer review 102 0 process for resolving disputes by taking them to a panel composed of representatives from the organization at the same levels as the people dispute I mediation o 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 I arbitration 0 binding process in which a profesional arbritator from outside the organization usually a judge or a lawyer hears the case and resolves it by making a decision 0 Employee Assistance Programs 0 a referral service that employees can use to seek professiobal treatment fro emotional problems or substance abuse 0 Outplacing Counseling 0 a service in whic professionals try to help dismissed wmployees manage the transition from one job to another 0 Employee Engagement 0 the degree to which employees are fully involved in their work and strength of theirjob and comany commitment 0 Job withdrawal 0 a set of behaviors with which employees try to avoid the work situation physically mentally or empotionally I behavior change I physical job withdrawal I psychological job withdrawal Job dissatisfaction 0 Personal Dispositions 0 job dissatisfaction is experienced by individual gt studies show individual personality differences I turnover is higher gt low in emotional stability conscientiousness and agreeableness 0 negative affectivity o pervasive low levels of satisfaction with all aspects of life compared with other people s feeling I focus on negative aspects to themselves and others 0 Core selfevaluations 103 o bottomline options individuas have of themselves and may be positive or negative I high self esteem ability to achomplish their golas o Taks and Roles 0 Role I the set of behaviors that people expect of a person in a particular job 0 role ambiguity I uncertaintinity about what the orgaization expects from the employee in terms of what to do or how to do it o role conflict I an employee s recognition that demands of the jobs are incompatible or contradictory o role overload I a state in which too many expectations or demands are placed on a person 0 Psycholgical Withdrawal 0 Job Involvement I the degree to which people identify themselves with theirjobs o Orhanizational Commitment I the degree to which an employee identifes with the organization and is willing to put forth effort on its behalf Job Satisfaction o a pleasent feeling resulting from the perception that ones jobs fulfillment of one s importantjob values I hiring employees predisposed to being satisfied 0 reffering depressed employees for health I designing complex meaningfuljobs o establishing clear appropraite roles I reinforcing shared values 0 encouraging social support 0 helping employees pursue goals 0 Setting Satisfactory pay levels 0 communicating pay structure and policies 0 Tasks and Roles 0 Job Complexity 0 Meanigful Work 0 Clear and Appropriate Roles 104 I Role Analysis Technique 0 a process of formally identifying expectations associated with a role 0 Supervisors and CoWorkers 0 person may be satisfied I 1 the people share the same values attitudesm and philosphies 0 many organizations try to foster a culture of shared vales I 2 provide social supprt gt systems are symphathetic and caring 0 increase job satisfaction 0 turnover is lower I 3 attain some valued outcome 0 Steps in the Role Analysis Technique 0 Members of role set discuss expectations I primarily list of roles duties and behaviors o role occupant lists expectations for others in role set 0 members of role set discuss expectations and reach consnsous on on occupant s role I modifieed list of role s duties and behaviors 0 Monitoring Job Satisfaction 0 exit nterview I a meeting of departing employee with the employee supervisor HR specialist to discuss the employee reasons for leaving Chapter 3 OSHA Occupational Safety and Health Act 0 Occupational Safety and Health Act OSH Act 0 US law authorizing the federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate commerce 0 Occupational Safety and Health Administration 0 labor department agency responsible for inspecting employers applying safert srabdards and levying for fines o 4 major components I compliance officer reviews the companys record of deaths injuries or illnessess I walkaround tour I employee intervies I closing conference 0 General and Specific Duties 105 o employer has a general duty to furnish was employee a place employment free from recognized hazards that cause or are likely to caause death or serious physical harm I General duty clause 0 also gives rights I request an inspection I have a represenative present an inspection I have dangerous substances identified I be promply informed about exposure to hazards and be given access to accurate records regarding exposure I have employer violations posted on a work site 0 Employee Rights and Responseibilities o Righttoknow laws I state laws that require employers to provide employees with information about the health and risks associated with exposure to substances considered hazardous 0 Material Safety Data Sheets MSDS s I forms on which cemical manufacturers and importers identify the hazards of their chemicals 0 Employer Safety and Health Programs 0 Job Hazard Analysis Technique I safety promotion technique that involves breaking down a job into baic elementsm then rating each element for its potentional harm or injury 0 technic of Operations ReviewTOR I mthod of promoting safety by determing which specififc element of a job led to a past accident April 22nd 2015 0 Quiz chapters 14 ampch 15 gt 20 point quiz 0 Homeowrk 10 due a week from today 0 The rights of Employers and Employees 0 Employees Rights I fair treatment I Privacy 0 no federal legislation gt no written guarentee in federal leval 0 some states do 0 yet some courts have rules that some organizations may give you a right of privacy 106 I 1 Was there a reasonable expectation of pnvacy I 2 Was their Er s begaior practice reasonable under the circumstances 0 example told to come up with own individual passoward and not to share with other 0 when empoyers file a lawsuit must have to meet both answers 0 Employer rights I responsible conduct I reasoanable productivity 0 Conflict here I practices are not well recived and volates expectations of fair treatment 0 not all employers monitors emails gt main reason to maintain employee relation 0 problems with sabotage and turnover Look at employee relations costs I if its too much relative to the benift they will not engage in it c When the rights of employers and Employees conflict 0 Practices involving conflicting intersts I ban on smokers I spyingmonitoring I regulating office romance 0 worry about favoritism gt creates resentment 0 concerns about break up gt distraction sexual harassment I drug testing 0 Argument I Employers hsouldnt be able to tell you what to do in your own time 0 National Labor Relations Act 1935 0 Section 7 I employees quotthe right to selforganization to form join or assist labor organizations to bargain collectively through representatives of their own choosing and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection o history 107 0 workers were most successful gt most successful during economic boom gt need workers 0 1935 0 passed after centuries of fighting gt during great depression I lawmakers 0 economy will not get better unless this act was passed gt balance the relative power gt fight unions 0 act was intended for both sides to work things out I lawmakers were worried about socialist thinking gt reuduce that ideology gt gave them bargaing power whta they wanted I section 8A 0 view Unfair Labor Prcatices NRLA gt 314 folder I On quiz answer will NOT be Section 7it will always be Section 8A1 and mother behaviors can be included 0 Alot of people who talk about unions HATES management and viceversa I can t generalize like that c not all managers are ergariousbad and not all unions are ergarious I commonly here that drag on economy 0 actually a lot of exaples that the opposite is true gt unions are worse off if their empoyers are poorly o unions are good thing we need to support them gt Democrats and republicans 0 Example La Conexion Familiar 0 Employee Complaints I low relative earning I limited 2 bathroom breaks a day I water intake monitored by supervisors I sick days deducted from vacation time 0 Sprint response to Union drive gt adamantly opposed gt aggressive approach So farjust AA1 I threats to fire Ee s who support union 0 violates 8A3 if actually fired 108 I integration of ees regarding support for the union 0 check off cards surveillance of union activities threatens to close LCF if the union is voted in vows not to bargain with a union if voted in o 8A5 0 Week before they announced Sprint was closing gt filed complaint about violation of 8A3 they were fired They were winning till Supreme Court I Sprint arguing gt closing for financial reasons not because of the union 0 SC ruled in favor of Sprint and union lost 0 huge blow to the union movement I could potentially lose jobs gt hanging over head 2 differnt types of pension plans most employers used defined contribution I promise to commit this much money a month gt specific amount up to employee to invest the money gt up to you NOT defined ditrivution April 24th 2015 Collective Bargaining and Labor Relations 0 Role of unions and Labor Relations 0 unions I organizations formed for the purpose of representing their members interests in dealing with employers o labor relations I field that emphasizes skills that managers and union leaders can use to minimize costly forms of conflictsuch as strikes and seek winwin solutions to disagreements 0 union management interactions I 3 levels of decisions 0 1 labor relations strategy 0 whether organization will work with uniondevelop nonunion operations I outside forces 0 public opinion 0 competition 109 I unions decision involves whether to fight changes in how unions relate to the organization or accept new kinds of labormanagement relationships 0 2 negotiating contracts 0 involves decisions about pay structure job securitym work rules workplace safety 0 3 administrating contracts 0 day to day activities in which union manaers may have disagremments I issues include 0 work rules being violated 0 workers being treated unfairly 0 National and International Unions 0 Craft unions I labor unions whose members all have a particular skill or occupa on o responsible for training members gt apprenterships and supplying craft workers to employees 0 industrial union I labor union whose members are linked by their work in a particular industry 0 represents many different occupations 0 result for working with a particlar company 0 American Federation of Labor and COngress of IO AFLCIO I an association that seeks to advance the shared intersts of its member unions at the national level 0 NOT a labor union 0 but an association thatseeks to advance the shared intersts of its member unions at the national level 0 Local Unions 0 buisness representative I union deals with several employers 0 Union Steward I an employee elected by union members to represent them in ensuring that the terms of the labor contract are enforced o helps to investigate employee ints and represnts them to supervisors 110 0 Trends in membership 0 decline I change in the structure of the economy 0 job growth 0 blue collar I Managements efforts to control cost 0 average unionized worker receive higher pay than non unionized 0 pressure by international companies I Human Resource practices 0 competition for scarce HR can lead employers to offer much of what was thought as union membership I government regulation 0 stricter regulation in such areas workplace safety and equal employment 0 Unions in government 0 union memberships in the public sector grew 0 over of government employees are unionized I governments supports unions 0 Impact of Unions on Company Performance 0 organizations are worried gt will hurt performance 0 effects of unions on productivity I some say lower 0 less workload o strikes 0 work slowdowns I others say 0 reduce turnover 0 pay gt senority 0 pay greater attention to employee ideas 0 Goals of Management Labor Unions and Society 0 Management Goals I increase organizations profit 0 prefer options that lower costs and raise output I employer has recognized a union gt management s goals gt perfler flexibility 0 Labor Union Goals I obtaining pay and working conditions that satsify their members and of giving members a voice in their decision 111 I union effect c 1015 gt union worker would earn a 110 I checkoff provision 0 contract provision under which the employer on behalf of the union automatically deducts unions dues from employees paycheck 0 closed shop I union security arrangement under which a person must be a union member before being hired I illegal for those covered by the National Labor Relations Act 0 union shop I union security arrangement that requires employees to join the union within a certain amount of time30 days after beginning employment 0 agency shop I union security arrangement that requires the payment of union dues but not union membership 0 maintenance membership I union security rules not requiring union membership but requiring that employees who join the union remain members for a certain period of time Laws and Regulating Affecting Labor Relations 0 Federal law that supports collective bargaining and sets out the rights of employees to form unions 0 Following activities protected I union organizing I joining a union whether recognized by the employer or not I going out on strike to secure better working conditions I refraining from activity on behalf of the union 0 Private sector I employed by a supervisor parentspouse independent contracter domestic service of any person agricultural labor federalsstatelocal any person whi is not defined in NLRA 112 Union Organization 0 involvement w an organization39s employees by conducting an organization39s campaign 0 Process of Organizing 0 begins with authorization cards 0 arrangements made in 1 of2 ways I 1 consent election 0 employer and the union seeking representation arrive at an agreement stating the time and place of the election choices included on ballot gt who is eligible to vote I 2 stipulation election 0 parties cannot agree on all of these terms so the NRLB dictates the time and palace ballot choices and methods of determining eligibility 0 made changes streamlining this process so employers have little time to make couse corrections once an organizing effort is underway 0 Union Strategies 0 associate union membership I alternative form of union memberships in which members receive discounts on insurance and credit cards rather than representation in collective bargaining 0 corporate campaigns 0 bringing public financial or political pressure on employers during union organizations and contract negotiation o Collective Bargaining o negotiation between union representations and management representatives to arrive at a contract defining conditions of employment for the term of the contract and to administrator that contract I differs from bargaining structure 0 range of employees and employers covered by contracts 0 Bargaining over New Contracts I outcome of contract negotiations can have important consequences for labor costs productivity and the organizations ability to compete o distributive bargaining o divides an economic pie between two sides I a wage increase means giving the union a larger share of the pie 113 o integrative bargaining 0 looks for winwin solutions or outcomes in which both sides benefit 0 if the organizations labor costs hurt its performance integrative bargaining might seek to avoid layoffs in exchange for work rules that improve productivity 0 attitudinal structuring 0 focuses on establishing a relationship of trust The parties are concerned about ensuring that the other side will keep its part of any bargain o lntraorganizational bargaining 0 addresses conflicts within union or management groups or objectives such as between new employees and workers with high seniority or between cost control and reduction of turnover I negotiations go through various stages 0 When Bargaining Breaks Down 0 strike I a collective decision by union members not to work until certain demands or conditions are met 0 strikes are typically accompanied by picketing I the union stations members near the worksite with signs indication the union is on strike 0 vast majority of labormanagement negotiations do not result in a strike and the number of strikes has plunged since the 1950 s 0 Alternatives to Strikes o Mediation I conflict resolution procedure in which a meditator hears the views of both sides and facilitates the negotiation process but has no formal authority to dictate a resolution 0 Fact finder I Third party to collective bargaining who reports the reasons for a dispute the views and arguments of both sides and possibility a recommended settlement which the party may decline 0 Arbitration I Conflict resolution procedure in which an arbitrator or arbitration board determines a binding settlement 114 Contract Administration 0 grievance procedure 0 the process for resolving unionmanagement conflicts over interpretation or violation of a collective bargaining agreement 0 contract administration 0 carrying out the terms of the agreement and resolving conflicts over interpretation or violation of the agreement 0 Steps in Employee initiated Grievance Procedure 0 Step 1 I employeeand union steward discusses problem with superviser I union steward and employee decide whether problem was resolved I union steward and employee decide whether contract was violated 0 Step 2 I Written grievance is submitted to production superintendentm another line manager or industrial relations representative I steward and manager discuss grievance I management puts response in writing 0 Step 3 I union appeals grievance to top line management and senior industrial relations staff I additional localinternational union officers may be involved I decision resulting from appeal i put into writing 0 Step 4 I union decides whether to appeal unresolved grievance to arbitration I union appeals to grievance to attribution for binding decision Chapter 15 Managing Human Resources Globally o HRM in a Global Environment I parent country c the country in which an organization39s headquarters is located I host country c a country other than the parent countryO in which an organization operates a facility I third country c a country that us netheter the parent country nor the host country of an employer 115 I expatriates 0 employees assigned to work in another country 0 ranging from shipping products to customers to transforming the organization into a truly global one with operations employees and customers in many different companies I most begin by serving customers and clients within a domestic marketplace industrail organization I an organization that sets up one or a few facilities in one or a few foreign countries 0 raises alot of HR issues multinational organization I an organization that builds facilitates in a number of different countries in an effort to minimize production and distribution costs 0 move from high cost to low cost locations Global Organization I an organization that chooses to locate a facility based on the ability to effectively efficiently and flexibility produce a product or service using cultural differences as an advantage 0 locates each facility based on ability to effectively efficiently and flexibility produce a product or service 0 multiple headquarters Transnational HRM System I type of HRM system that makes decisions from a global perspective includes managers from many countries and is based on the ideas contributed by people representing a variety of cultures 0 balance uniformity with flexibility I 4 major factors 0 culture 0 1 Individualism Collectivism I stength between an indiviua and other individuals in a society 0 2 power distance I way culture deals with unequal distribution of power and defines the amount of inequality 0 3 Uncertainity Avoidance 116 I describes how cultures handle the fact that future is unpredictable o 4 MasculinityFemininity I emphasis a culture places on practices or qualities that have been traditionally considered masculinefeminine o 5 Longtermlshortterm orientation I focus of cultural values is on the futurelong term or the past and presentshort term 0 education 0 skilled workers I US lack of engineers 0 economic systems 0 capialists vs socialist o politicallegal systems 0 law dictate remaining workplace issues 0 selection for foreign assignments should reflect criteria 0 I competency in the employee39s area of expertise I ability to communicate verballynonverbally in the foreign country I flexibility tolerance of ambiguity and sensitivity to cultural differences motivation to succeed and enjoyment of challenges willingness to learn about the foreign country s culture language and customs I support from family members culture shock I disillusionment and discomfort that occur during the process of adjusting to a new culture 0 Training and Developing a Global Workforce O 1 training and development programs should be effective for all participating employees regardless of their country of origin 2 When organizations hire employees to work in a foreign country or transfer them to another country the employer needs to provide employees with training in how to handle the challenges assciated with workking in the foreign country 117 0 Cross Cultural Preperation I training to prepare employees and their family members for an assignment in a foreign country o 1 ability to maintain a positive self image and feeling of well being 0 2 ability to foster relationships with the host country nationals o 3 ability to perceive and evaluate the host country s environment accurately repartriation process of preparing expatriates to return home from a foreign assignment April 27th The Cost of Cultural llliteracy Some Examples 0 bargaining union all faculty and libraries gt but not all are members of union but you are still part of the effects of it benifit from it wages 0 have to pay dues gt part of union 0 totally voluntary to be part of the union I therefore there is decreased funding for union gt weaker can t have closed right to work laws gt can work under a union gt benefit from it without financial suppo 0 Prepare for quiz 0 chapter 14 kknow nationals labor act and union security agency shops 0 chapter 15 3 part Factors affect international culture economic conditions different types of employees managing expatriates The cost of cultural illiteracy Some examples 0 US gt very idealistic vs Asia gt collectiveness Ethical Issues in IHRM o Exploitation o achieving business goals and behaving ethically I focused on maximizing profits gt go to countries with lowest costs 0 issue ethical issue gt line you shouldnt be crossing o no minimum wage law 0 no labor laws 0 example I fire in Bagladesh gt 100 workers burned to death 0 people new building was unsafe o doesnt do wonder for employee relations 118 0 value conflict 0 achieving business goals and respecting others I no quick and easy answer 0 more and more gt csr gt corporate social responsibility 0 ethical imperialism v cultural relativism I my way or the highway 0 can lead to negative reaction I When in Rome do as the Romans do 0 employee children in the workplace I Advantages and Disadvantages of both 0 the case of women managers in global business Worker Exploitation An Example 0 Nike gt mostly in 1990 s gt changed considerably since then 0 bottomline nationwide effort to boycott nike gt affected their sales 0 wages I Indonesia gt work 1 day gt when it rose to 2 they moved to vietnam 0 reported for child labor laws 0 barred worker o abuse sexual harassment mistreated workers Values Conflict An Example 0 Company Timothy and Thomas 0 Product casual clothing 0 Cultureimage values social responsibility 0 HR policy child labor is prohibited 0 the subcontractor 0 Located in Bangladesh 0 Employment of children is common I a who are you to tell us what is wrong I b many of families depend on children s wages 0 don t think the children will be better off gt they will be in the streets begging 0 Real condrondum o enforce this gt families and children worse off and costs are more 0 We want kids to be okay and not to work on factory I Solution continue to pay children low wages but they will go to school reach age of maturity 14 come back to school 0 payed for kids schools uniformsetc 0 really wasnt that expensive 119 0 positive employee relation The Case of Women managers 0 The Dilemma 0 should women be sent on expatriate assignments to countries where strong cultural values bar them from managerial positions I Saudia Arabia 0 Argument for sending women I most qualified 0 Consequences for sending women I harmful to her I and to the business 0 Myths and Realities 0 women s preferences I belief women don39t want expatriates assignments I research evidence suggests no difference 0 companies beliefs I women can t be successful safe 0 in cultures that forbid them 0 research suggest that they can be successful even more than males 0 Ability to succeed in expatriate assignments I the female advantage 0 1 women were so rarely seen gt highly visible people were very curious gt gave women more access to local folks o 2 because so few women gt inference must be really good 0 3 in many cultures women s interpersonal skills more effective than mens I Gaijin syndrome foreign syndrome 0 not held to same standards as Japanese women 120
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