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study guide. midterm 1

by: odette antabi

study guide. midterm 1 MGT302

Marketplace > University of Miami > Management > MGT302 > study guide midterm 1
odette antabi
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complete study guide
Human Resource Management
Dr. Sheryl Alonso
Study Guide
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This 11 page Study Guide was uploaded by odette antabi on Friday September 16, 2016. The Study Guide belongs to MGT302 at University of Miami taught by Dr. Sheryl Alonso in Fall 2016. Since its upload, it has received 29 views. For similar materials see Human Resource Management in Management at University of Miami.


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Date Created: 09/16/16
Chapter 1: strategic human resource management in a changing environment RESEARCH AND HUMAN RESOURCE PLANNING • Human Resources = All people who perform the activities of a company • Pervasive – throughout the organization. • All and any decisions that affect the workforce are HRM functions. • ALL MANAGERS ARE HUMAN RESOURCE MANAGERS! RESEARCH PRACTICES AND HRM PRACTICES Academic research findings: Recruitment – Quantitative analysis of recruitment sources using yield ratios can facilitate efficiencies in recruitment Staffing – • Realistic job previews can reduce turnover. • Weighted application blanks reduce turnover. • Structured & behavioral interviews are more valid. • Use actuarial model of prediction with multiple valid measures. Graphology is invalid & should not be used Performance Appraisal – • Do not use traits on rating forms. • Train raters (for accuracy, observation bias). • Make appraisal process important element of manager’s job. Compensation – • Merit-based systems should not be tied into a base salary. Gain sharing is an effective PFP system HRM practice: Recruitment –  Less than 15% calculate yield ratios  Less than 28% know how. Staffing – • Less than 20% of companies use RJP’s in high-turnover jobs. • Less than 35% know what a WAB is; less than 5% use WAB’s. • 40% of companies use structured interviews. • Less than 50% of companies use behavioral interviews. • Less than 5% use actuarial models. • Use of graphology is on the increase in the U.S. Performance Appraisal – • More than 60% of companies still use traits. • Less than 30% train raters. • Less than 35% of managers are evaluated on performance appraisal Compensation – • More than 75% tie merit into base salary. • Less than 5% of companies use gain sharing where they could. HIGH PERFORMANCE WORK SYSTEMS • Particular HR practices or characteristics designed to enhance employees competencies and productivity so that employees can be a reliable source of competitive advantage. • See Figure 1-1 in text. HRM AND CORPORATE PERFORMANCE Why Study HRM?  To learn how to engage employees more effectively. Employee engagement is a combination of both job satisfaction and a willingness to perform for the organization at a high level over an extended period of time. • Organizations that engage and manage their people more successfully than their competitors have a much greater chance of being more productive and profitable than their competition. Progressive HRM practices can have a significant effect on corporate performance. • Employees who add value • Employees who are rare • A culture that can’t be copied High Performance Work Systems (HPWS)  Staffing & Promotion Systems  Formal Mediation & Grievance Procedures  Training & Development  Cross-functional Work Teams  Group Based Rewards & Skill-based Pay Cooperative & intelligent approach to HRM is not common. VALIDATED Effective HRM uses validated research There are many discrepancies between academic research findings & actual HRM practices • HR specialist must have knowledge and skills to identify best practices aligned with current research. • Academic research gives objective evaluation if activities or programs. • Validated: The practice has actually been shown to (statistically) predict (or correlate) with something important. TRENDS IN HRM  Increased Globalization of the Economy.  Technological Changes, Challenges, & Opportunities, Rapid Change.  Increased Litigation & Regulation Related to HRM.  Changing Characteristics of the Workforce. HR MANGERS CHALLENGES Major activities of HRM • Organizational Design • Staffing • Reward Systems & Benefits • Legal Compliance • Employee Training & Organizational Development • Performance Management & Appraisal • Employee Relations • Employee Health & Safety • Contribute to Organizational Culture HR Managers’ Challenges: Control  HR managers have no direct control over people, specifically their: • Productivity. • Job satisfaction. • Turnover. • Absenteeism. Therefore they must create workplace conditions that foster employee willingness and desire to come to work and perform effectively and efficiently. HR Managers’ Challenges: Job Satisfaction, Turnover and Absenteeism  They are all interrelated with productivity, and affect employee (and therefore organizational) performance.  Job satisfaction: the extent to which people like their jobs and the environment in which they work.  Turnover: the permanent loss of workers, which costs the organization in many ways.  Absenteeism: failure of an employee to report to work as scheduled. HR Managers’ Challenges: Employee Health  Cost of healthcare continues to rise  Employee health concerns • Wellness • Smoking • Obesity • Stress HR Managers’ Challenges: Benefits/Rightsizing/Legal Environment  Costs of benefits ever rising  Rightsizing  Economic concerns  Litigation MANAGEMENT BY MEASUREMENT SYSTEMS Ensure all functional business units subscribe to guidelines for sound strategic measurement.  Performance (Individual, team, unit, etc.)  Quality, quantity, timeliness, cost-effectiveness, effects on others  Productivity  Customer satisfaction  Absenteeism  Turnover, retention, tenure, intentions to stay, leave  Employee theft Criteria to measure (continued)  Violence in the workplace  Job stress  Job satisfaction, motivation, attitudes, commitment  Creativity  Perceived fairness (procedural, interactional)  Error rates  Workplace accidents & injuries  Health-related variablers  Organizational Citizenship Behaviors (OCB’s) The challenge is to make measureable even those things which are difficult to measure and identify changes over time Chapter2: the role of globalization in HR Policy and Practice Off shore centers: India  Cheap labor  Speak same language  Well educated people International joint ventures: when 2 companies merge together to work HOFSTEDE’S CULTURAL VALUES * Individualism * Power Distance * Uncertainty Avoidance * Masculinity/Femininity * Long-term versus Short-term orientation GLOBAL MINDSET * Global Data Bank * Market Knowledge * Understanding the Global Superstructure * Global Economic System * Cross-cultural skills * Cultural Roots * Spirit of Generosity, magnanimity CHALLENGES OF INTERNATIONAL BUSINESS ASSIGNMENTS * Assignment Failure * Compensation * Cross Cultural Training * Repatriation EXPATRIATES/REPATRIATES Expatriates: employees that are US citizens working in a US company abroad Repatriates: when those employees come back Going rate approach: pay and benefits similar to the place they are in Cafeteria style benefit: tell the expatriate these are your total benefits you can choose and pick what you prefer Chapter 3: the legal environment of HRM FOUR-FIFTHS RULE The 4/5ths Rule Is used by Federal courts, the Department of Labor and the EEOC to determine whether disparate impact exists in an employment test.  If the test results disproportionately rule out a protected population, then it is not consistent in effect. DISCRIMINATION What is employment discrimination? Employment decision making or working conditions that are advantageous (or disadvantageous) to members of one group compared to members of another group Under Title VII of the Civil Rights Act of 1964, the ADA, and the ADEA, it is illegal to discriminate in any aspect of employment, including:  hiring and firing  compensation, assignment, or classification of employees  transfer, promotion, layoff, or recall  job advertisements  recruitment  testing  use of company facilities  training and apprenticeship programs  fringe benefits  pay, retirement plans, and disability leave  other terms and conditions of employment.  harassment based on protected group status  retaliation for filing charges of discrimination, participating in an investigation, or opposing discriminatory practices  employment decisions based on stereotypes or assumptions of a protected class  denying employment because of marriage to an individual of protected class status 1. Who can file a charge of discrimination?  anyone who believes that his or her employment rights have been violated  an individual, organization, or agency may file on behalf of another person to protect their identity 2. How is a charge of discrimination filed?  by mail or in person at the nearest EEOC office; accommodations can be provided 3. What information must be provided to file a charge?  name, address, and telephone number of complaining party and respondent  short description of the alleged violation and the dates of occurrence 4. What are the time limits for filing a charge of discrimination?  180 days from the date of alleged violation, ADEA extendable to 300 under state law  The Ledbetter Act allows the timetable to reset with each paycheck 5. What agency handles a charge that is also covered by state or local law?  if a charge is also covered with a state-based “Fair Employment Practices Agency” (FEPA), then the FEBA dual-files with the EEOC 6. How is a charge filed for discrimination outside the United States?  U.S.-based companies that employ U.S. citizens outside the United States or its territories are covered under EEO laws TITLE VII OF THE CIVIL RIGHT ACT Title VII of the Civil Rights Act (CRA) of 1964 Applies to organizations involved in interstate commerce, with 15 or more employees who work 20+ weeks a year.  Introduced important concepts:  Disparate Treatment.  Disparate (a.k.a. Adverse) Impact.  Pattern or Practice.  Bona Fide Occupational Qualification (BFOQ).  Business necessity.  Job relatedness. Who is Covered?  Race or Color Discrimination  illegal to discriminate based on person’s race or ethnicity  National Origin Discrimination  illegal to discriminate because of birthplace, ancestry, culture, or linguistic characteristics  Immigration and Reform Act of 1986 requires employers to only hire employees legally authorized to work in US. Requiring employment verification for one group over another is a violation of the Act and Title VII.  Religious Accommodation  must reasonably accommodate religious belief of employee unless doing so causes undue hardship  Sex/Gender Discrimination  sexual harassment – ranges from unwanted direct requests for sexual favors, the acceptance or rejection of which are tied to employed decisions, to hostile work environments Major Provisions of Title VII 1. Employment decisions based on protected class status is illegal. You may not limit, segregate, or classify employees based on protected class status that leads to adverse affects. 2. Bona Fide Occupational Qualification (BFOQ): “reasonably necessary to the normal operation of the organization.” 3. “Discrimination” based on the following, even when the use of such practices may be correlated with race, gender, color, religion, or national origin, is legal:  seniority systems  Merit systems/quality & quantity  Veteran’s preference rights & national security reasons  job qualifications based on test scores, backgrounds, or experience 4. Shall not be interpreted to require preferential treatment 5. Retaliation is illegal DISPARATE TREATMENT/DISPARATE IMPACT Disparate Treatment Plaintiffs must show that an employer intended to treat one or more members of a protected class differently Disparate Impact Plaintiffs must show that an employer’s practices had a disproportionately negative effect on members of a protected group HARASSMENT /SEXUAL HARASSMENT/ STRATEGIES TO DEAL WITH Harassment – unwelcomed conduct that is based on race, color, sex, religion, national origin, disability and/or age Sexual Harassment – unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when 1. submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment 2. submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting the individual 3. such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment sexual  The Supreme Court basically stated that the employer is responsible for the actions of the supervisor, even when the employer is unaware of the supervisor’s behavior. An employer can no longer claim they did not know about the sexual harassment because the employee did not inform them, nor can they claim that they were unaware of the supervisor’s behavior. Strategies Recommended for Organizations 1. develop a written policy against sexual harassment, including a definition of sexual harassment and a strong statement by the CEO that harassment will not be tolerated – an affirmative defense 2. conduct training to make managers aware of the problem 3. inform employees that they should expect a workplace free from harassment, and what actions they can take if their rights are violated 4. detail the sanctions for violators and protections for those who make any charges 5. establish a grievance procedure for alleged victims of harassment 6. investigate claims made by victims 7. discipline violators of the policy 8. allow complaints to be filed without supervisory knowledge AFFIRMATIVE ACTION – VOLUNTARY AND INVOLUNTARY The extent to which employers make an effort through their HRM practices to attract, retain, and promote members of the protected classes of the 1964 Civil Rights Act “Good Faith Efforts” include  actively recruiting underrepresented groups  changing management and employee attitudes about various protected groups  eliminating irrelevant employment practices that bar protected groups from employment/advancement Criteria 1. Be designed to eradicate old patterns of discrimination 2. Not impose an “absolute bar” to white advancement 3. Be temporary 4. Not “trammel the interests of white employees” 5. Be designed to eliminate “manifest racial imbalance” 6. Show preference only from a pool of equally qualified candidates May legally show preferential treatment when the program 1. is necessary to remedy “pervasive and egregious discrimination” 2. is used as a flexible benchmark for court monitoring, rather than as quota 3. is temporary 4. does not “unnecessarily trammel the interests of white employees” EQUAL PAY ACT  prohibits discrimination on the basis of gender in payment of wages and benefits  May consider differences in skill, effort, responsibility and working conditions when determining pay  may not reduce wages of either sex to equalize pay  A labor union contract does not preempt the law Equal Pay Act of 1963 Requires that women who do the same job as men (“equal skill, effort, and responsibility, and performed under similar working conditions”), in the same organization, receive the same pay.  Pay differences that result from differences in seniority, merit, quantity or quality of production, or any factor other than sex (e.g., shift differentials, training programs), are legally allowable. AGE DISCRIMINATION IN EMPLOYMENT ACT Establishing a prima facie case 1. The employee is a member of the protected age group 2. The employee has the ability to perform satisfactorily at some absolute or relative level (e.g., relative to other employees involved in the decision process or at an absolute standard of acceptability) 3. The employee was not hired, promoted, or compensated, or was discharged, laid off, or forced to retire 4. The position was filled or maintained by a younger person (just younger, not necessarily under age 40) Act (1967) amended 1978 & 1986  Plaintiff must show age was determinative factor in decision  Plaintiffs can now use “disparate impact” theory for age discrimination cases (Smith v. Jackson, 2005)  Burden of proof shifted to employer  Defendant must present reasonable factor other than age in defense  Does not protect reverse age discrimination  Courts recognize use of BFOQ AMERICANS WITH DISABILITIES ACT Provides that qualified individuals with disabilities may not be discriminated against if the individual can perform the essential functions of the job with or without reasonable accommodation  Key Points Applies to private sector employers with 15 or more employees Defines who an individual with disability is and who is qualified Defines reasonable accommodation & undue hardship Limits use of medical examinations and testing Illegal use of drugs not covered An individual with a disability is a person who  Has a physical or mental impairment that substantially limits one or more major life activities  Has a record of such an impairment  Is regarded as having such an impairment Policy Guidance on Reasonable Accommodation Under ADA suggests the following:  Look at the particular job involved; determine its purpose and its essential function  Consult with the individual with the disability to identify potential accommodations  If several accommodations are available, preference should be given to the individual’s preferences  What is a reasonable accommodation?  Steps: 1. identify the essential functions  2. consult the individual with the disability  3. defer to preferred accommodation  What constitutes undue hardship?  Consider: company size, nature & cost of accommodation  When can you require a medical exam?  Post offer, drug tests are not considered medical exams GINA Genetic Information Nondiscrimination ACT (GINA) Legislation designed to address concerns that workers could be denied employment or job benefits due to predisposition for a genetic disorder Major provisions 1. Prohibits insurers from denying coverage to patients 2. Prohibits employers from making hiring, firing, or promotional decisions based on genetic test results LILY LEDBETTER FAIR PAY ACT of 2009 (LLFPA) Adds a provision to amend Title VII that extends the period of time in which an employee is allowed to file a compensation discrimination lawsuit to within 180 days after “any application” of a discriminatory compensation decision. This includes every time an individual gets paid, as long as the discrimination is continuing RELIGIOUS DISCRIMINATION Employers generally need to make reasonable accommodation of employees’ religion- based requests to wear certain types of dress or observe religious holidays or days of worship that are not in keeping with the normal workday practices of the organization, unless the requests prevent the employee from carrying out the essential functions of his/her job, or create an undue hardship EEOC: The Equal Employment Opportunity Commission The federal agency that enforces Federal Equal Employment Opportunity (EEO) laws.  Investigates and resolves discrimination complaints through either conciliation or litigation.  Gathers and compiles statistical information on such complaints.  Provides education and outreach programs on what constitutes illegal discrimination. Employee Rights under EEOC  All employees who work in the U.S. or its territories are protected by EEOC laws whether they work for a U.S. or foreign employer.  U.S. citizens employed outside the U.S. by a U.S. employer, or a foreign company controlled by an U.S. employer, are protected by Title VII, the ADEA, and the ADA unless adherence violates a law of the country where the workplace is located.  When U.S. citizens are employed by a foreign company in a country other than the U.S., the laws of that country apply. Employer Prohibitions under EEOC  To retaliate against employees who participate in an EEOC action.  To creating a hostile work environment that results in the employee quitting or resigning from the company because continued employment becomes intolerable (constructive discharge). MINIMUM WAGE Exceptions: Tips  An employee of an employer who receives tips is required to pay $2.13 an hour in wages if that amount plus the tips equals at least the Federal minimum wage, the employee retains all the tips, and the employee customarily receives more than $30 per month in tips. Young Workers  A minimum wage of $4.25 per hour applies to young people under the age of 20 during their first 90 consecutive days of employment. After 90 consecutive days of employment or the employee reaches 20 years of age, whichever comes first, the employee must receive a minimum wage of $7.25 EXEMPTION FOR EXECUTIVE, ADMINISTRATIVE, AND PROFESSIONAL EMPLOYEES –HAND OUT OVERTIME  Unless specifically exempted, employees covered by the Act must receive overtime pay for hours worked in excess of 40 hours in a workweek at a rate of not less than one and one-half the rate of their regular pay.  There is no limit on the number of hours and employees aged 16 years and older may work in any workweek.  The Act does not require overtime for weekends, or holidays.  An employer is free to adjust the hours of the employees regardless of what the employees are scheduled to work.  Employers can make overtime work mandatory and can make it a condition of employment. CHILD LABOR LAWS  If you are 14 or 15 you can work outside school hours – after 7:00 A.M. and until 7:00 P.M., except from June 1 through Labor Day when you can work until 9:00 P.M.  If you are 16 years old you can work any day, any time of day, and any number of hours.  FLSA generally prohibits the employment of a minor in work declared hazardous.  Different rules apply to farm/agriculture labor. Child Labor Laws Exemptions  Motion picture, television, radio, & theater work.  Delivering newspapers.  Making evergreen wreaths.  Working for parents. EMPLOYMENT-AT-WILL The assumption that an employer had a right to terminate employees for any reason.  Courts still recognize the force  Employers have wide latitude  Courts acknowledge that employers should not have absolute autonomy to end employment.  Most states have some exemptions to this rule.  Only four states have no exemptions.  Employees in Montana & Puerto Rico are not at-will employees. Generally have an indefinite contract with a few exceptions for fixed-contracts. FUTURE TRENDS What the Future Holds Trends in EEO  Increase in affirmative action litigation and legislation  Increasing number of class-action lawsuits likely  Increase in number of ADEA cases due to an aging workforce and the increasing proportion of workers over 39 years old  Increase in number of companies seeking employment practices liability insurance  Companies adopting alternative dispute resolution for all employment disputes OUCH TEST Use it to maintain fairness and equity, whenever contemplating any employment action.  Objective – fact-based and quantifiable.  Uniform in application – apply the same “tests” in the same ways.  Consistent in effect – ensure the result is not significantly different for different groups.  Has job relatedness – action MUST relate to the essential job functions.  Case 1; Age discrimination. Know requirements for discriminations in employment  Case2:title 7. 4/5 rule How to calculate it  Case 3: sexual harassment. what constituents sexual harassment. Recognize different terms for harassment  Case 4. reverse discrimination and discrimination under title 7  Case 5: avoid race as factor à random is the best  Case 6: Bofq business necessity  Case7 : disabilities, can ask if can do functions of the jb or not. About the disability: hardship / reasonable accommodation. d  Case 8: religion.  Case 9: religion. Religious accommodation and decimation


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