Midterm - Human Resource Management
Midterm - Human Resource Management BADM 3101
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This 14 page Study Guide was uploaded by Layan Notetaker on Wednesday March 23, 2016. The Study Guide belongs to BADM 3101 at George Washington University taught by Bridge, D in Summer 2015. Since its upload, it has received 12 views. For similar materials see Human Resource Management in Business at George Washington University.
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Date Created: 03/23/16
Section 1: Multiple Choice Questions 1. Strategic Human Resource Management (SHRM) It is the process of formulating HR strategies and establishing programs or tactics to implement them. When done correctly, SHR planning provides many direct and indirect benefits for the company: Encouragement of proactive rather than reactive behavior Explicit communication of company goals Stimulation of crit. thinking & ongoing examination of assumptions Identification of gaps between current situation & future vision Encouragement of line managers’ participation Identification of HR constraints & opportunities Creation of common bonds (Employees sources that impact company performance – Human capital is a strategic advantage to an org. because: Human resources are valuable Human resources are rare Human resources cannot be imitated Human resources have no good substitutes 2. Job Analysis [should be done with multiple methods rather than just one] A process to identify and determine the particular job duties and requirements and the relative importance of these duties for a given job Useful for strategic reasons for organizations and for: Determining training needs Compensation Selection & recruitment procedures Performance management Legal & safety reasons Methods include: o Review of job classification systems o Incumbent interviews (most valuable?) o Supervisor interviews o Expert panels o Structured questionnaires o Task inventories o Check lists o Open-ended questionnaires o Observation o Incumbent work logs 3. Title VII of the Civil Rights Act of 1964 Protected class: a group of people who suffered discrimination in the past and who are given special protection by the judicial system. Adverse impact: ~ disparate impact, occurs when the same standard is applied to all applicants or employees, but that standard affects a protected class more negatively – [example: police force minimum height restriction removed since it has an adverse affect on Latinos and Asian Americans.] EEOC laws cover most employers with at least 15 employees; most labor unions and employment agencies are also covered. Types of discrimination: Disparate Treatment – intentional o Example: refusing to hire African Americans, while hiring less qualified white; refusing to hire women for certain jobs based on stereotypes Disparate/ Adverse Impact – unintentional; [Neutral policy that has discriminatory effect and is proven by statistical evidence] o Example: High school degree requirement, height requirement Defenses to discrimination charges Bona Fide Occupational Qualification (BFOQ) – employer allowed to select employees on basis of gender, religion, or national origin when gender, religion, or national origin is a BFOQ (Race or color is NOT a basis for BFOQ) [A BFOQ is a work requirement reasonably necessary to the normal performance of a job, such as being a certain age or gender, or having the ability to lift a certain amount of weight.] o Example of BFOQ: Flight attendants, bus drivers, pilots Sexual harassment (a form of sex discrimination that violates Title VII) Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that is either: o Quid pro quo – occurs when sexual activity is demanded in return for getting or keeping a job or job-related benefit When submission to or a rejection of this conduct explicitly or implicitly affects an individual’s employments or unreasonably interferes with an individual’s work performance o Hostile environment – occurs when the behavior of anyone in the work setting is sexual in nature and is perceived by an employee as offensive and undesirable Creates an intimidating, hostile, or offensive work environment 4. Pregnancy Discrimination Act (PDA) Enacted by Congress in 1978 as an amendment to Title VII to clarify that Title VII’s prohibition against sex discrimination includes discrimination on the basis of pregnancy. It was passed in response to a Supreme Court decision, which held that discrimination on the basis of pregnancy is not sex discrimination. Requires employers to treat an employee who is pregnant in the same way as any other employee who has a medical condition. 5. Religious Discrimination Act Religion broadly defined to include “all aspects of religious observance and practice, as well as beliefs” So, religion not just organized religions; includes atheism but not personal, political or social ideologies Reasonable accommodation requires: Employee must first request accommodation Employee must consider alternative means of accommodation that are available Employer gets to decide which accommodation is appropriate, even if employee prefers other accommodation 6. National Origin Discrimination Covers discrimination based on place of applicant/employee/their ancestors Includes discrimination based on physical, cultural or linguistic characteristics of an ethnic group. Does not include discrimination on the basis of citizenship so employers can refuse to hire applicants denied national security clearance for positions requiring such clearances Height and weight requirements (adverse impact on certain groups) English only rules (EEOC holds unlawful unless job involves public contact and business necessity (i.e. safety)) 7. Age Discrimination and Employment Act of 1967 Protects employees 40 years of age & older and applies to cases where age was “determining factor” not “only factor”. Employer defenses for charges of age discrimination: Age as BFOQ (bus drivers, pilots) Bona fide seniority system or benefit plan Factor other than age – example: productivity or good cause termination Executive exemption (can force to retire at 65) Additional remedies for age discrimination includes possibility of liquidated damages if employer acted willfully 8. Americans with Disabilities Act (1990) Applies to employers with 15 or more employees Disability broadly defines by statutes: (a)Physical or mental impairment that substantially limits one or more major life activities; or (b)A record of such impairment; or (c)Being regarded as having such an impairment Employer has duty to make reasonable accommodation unless causes under hardship. Employment discrimination is prohibited against individuals with disabilities who are able to perform the essential functions of the job with or without reasonable accommodation. **ADA does not protect current drug users or alcoholics. 9. Diversity Characteristics that make people different from one another, including: Characteristics a person has little or no control over, and Characteristics that can be adopted Benefits Increased creativity Better group problem-solving Greater system flexibility Better information Enhanced marketing 10. Recruitment - the process of generating a pool of qualified candidates for a particular job; first step in the hiring process Sources: Current Employees Referrals from current employees Former employees Former military Customers Print and radio advertisements Internet ad and career sites Employment agencies Temporary employees College Recruitment Advantages and Disadvantages of: Internal recruitment Usually costs less than external recruitment Provides a clear signal to current workforce that the org offers opportunities for advancement Already familiar with org’s policies, procedures, and customs Reduces likelihood of introducing innovation & new perspectives Workers being promoted into higher-level jobs may be undercut in their authority Expense of training current workers in a new process or technology External recruitment Fresh perspectives and different approaches Current employees may see externally recruited employees as “rookies” and therefore discount their ideas and perspectives. It may take weeks for the new recruit to learn the job Current workers may resent the recruit for filling a job they feel should have gone to a qualified internal worker. 11. Selection The process by which an organization attempts to identify applicants with the necessary KSAs and other characteristics that will help it achieve its goals; making a “hire” or “no hire” decision regarding each applicant for a job Reliability – degree to which interviews, tests, and other selection procedures yield comparable data over time and alternative measures Stable: when test sore and retest score are very similar Consistent: [Interrator Reliability] when numerous ratings of the same applicant are very similar (almost the same) Validity – the extent to which the technique measures the intended knowledge, skill, or ability. In the selection context, it is the extent to which scores on a test or interview correspond to actual job performance Criterion-related validity: the extent to which a selection tool predicts, or significantly correlates with, important elements of work behavior. [a high score indicates high job performance potential; a low score is predictive of low job performance] Content validity: the extent to which a selection instrument, such as a test, adequately samples the knowledge and skills needed to perform a particular job. [Example: keyboarding tests, driver’s license exams, in- basket tests] Construct validity: the extent to which a selection tool measure elements associated with job performance. [Example: tests for conscientiousness, intelligence, honesty] Empirical validity: demonstrates the relationship between the selection method and job performance o Concurrent: indicates the extent to which scores on a selection measures are related to job performance levels, when both are measured at roughly the same time. o Predictive: indicates the extent to which scores on a selection measure correlate with future job performance Types of selection methods [advantages and disadvantages] Letters of recommendations Application forms Cognitive ability tests [Aptitude tests: measures of a person’s capacity to learn or acquire skills (ex: verbal and math skills, reasoning ability)/ Achievement tests: measures of what a person knows or can do right now] Personality tests [Big Five] Honesty tests [Polygraph Protection Act of 1988] Interviews [Popular since: it is especially practical when there are only a small number of applicants/ it serves other purposes, such as public relations/ interviewers maintain great faith and confidence in their judgments] Structured: an interview in which a set of standardized questions having an established set of answers is used. Panel: an interview in which a board of interviewers questions and observes a single candidate. Situational: an interview in which an applicant is given a hypothetical incident and asked how he or she would respond to it Behavioral: an interview in which an applicant is asked questions about what he or she actually did in a given situation. Assessment centers – structured combinations of assessment techniques Drug tests Reference checks Background checks Graphology – the use of a sample of an applicant’s handwriting to make an employment decision Legal issues in selection Discrimination Affirmative Action Negligent hiring 12. References and negligent hiring One of the best methods of predicting the future success of prospective employees is to look at their past employment record. Checking employees’ references is an employer’s best tactic for avoiding negligent hiring suits, in which the employer is held liable for injuries inflicted by an employee while on the job. Negligent hiring refers to a situation in which an employer fails to use reasonable care in hiring an employee, who then commits a crime while in his or her position in the organization. To avoid liability: Develop clear policies on hiring as well as on disciplining and dismissing employees. Check state laws regarding hiring applicants with criminal records Learn as much as possible about applicants’ past work- related behavior, which may be investigated only in the context of their possible effect on job performance 13. Employee separations (involuntary vs. voluntary; costs to organization) The termination of an employee’s membership in an organization Costs: Recruitment costs [advertising the job vacancy & using a professional recruiter to travel to various locations/ employ a search firm] Selection costs [interviewing costs, productivity lost, costs of testing] Training costs [costs associated with an orientation to the company’s values and culture; costs of instruction, books, and materials needed] Separation costs [compensation in terms of pay and benefits; severance pay; exit interview; outplacement assistance] Benefits: Reduced labor costs Replacement of poor performers Increased innovation The opportunity for greater diversity Voluntary separations occur when an employee decides, for personal or professional reasons, to end the relationship with the employer Quits [depends on the employee’s level of dissatisfaction with the job and the number of attractive alternatives the employee has outside the organization] Retirements [usually at the end of an employee’s career, usually result in the individual receiving retirement benefits from the organization] Involuntary separations occur when management decides to terminate its relationship with an employee due to (1) economic necessity or (2) a poor fit between the employee and the organization. Discharges [when management decides that there is a poor fit between an employee and the org.] Layoffs [means for an organization to cut costs Section 2: Definitions [5 points each] 1) Job analysis A process to identify and determine the particular job duties and requirements and the relative importance of these duties for a given job The systematic gathering and organization of information concerning jobs An understanding of it gives managers a tool to measure how much and what types of work are necessary to achieve organizational objectives Useful for strategic reasons for organizations and for determining training needs, compensation, and selection & recruitment procedures. Some of the numerous methods include: observation, incumbent interviews, and structured questionnaires. 2) EEOC – Equal Employment Opportunity Commission Responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person’s race, color, religion, sex (including pregnancy), nation origin, age, disability or genetic information. EEOC laws cover most employers with at least 15 employees; most labor unions and employment agencies are also covered. Established pursuant to Title VII of the CRA of 1964 Federal agency that conducts investigations on discrimination charges; 5 member bipartisan commission Issues regulations and guidelines 3) EPA – Equal Pay Act (1963) The law that requires the same pay for men and women who do the same job in the same organization – no difference is acceptable. Equal pay is required only for jobs held in the same geographic region Does not prohibit the use of a merit pay plan, and seniority plans are also exempted. Law indicates that any factor other than sex may be used to justify different pay rates Prohibits discrimination by an employer between employees on the basis of sex by paying lower wages to employees of the opposite sex if work is: o Equal – “substantially equivalent” – don’t look at job titles, job descriptions or job classification, rather each case is evaluated on a case-by-case basis: Effort – if extra duties need to be “regularly and recurring” Skill – substantially equivalent skill not identical skill Responsibility – substantially equivalent responsibilities – look at degree of accountability required in performance of job o Performed under similar working conditions (physical surroundings and hazards involved in a job) Employer Defenses: pay differences due to seniority system, merit pay system, productivity-based pay system, or “factor other than sex” 4) Pregnancy Discrimination Act of 1978 An amendment to Title VII to clarify that Title VII's prohibition against sex discrimination includes discrimination on the basis of pregnancy. It was passed in response to a Supreme Court decision that held that discrimination on the basis of pregnancy is not sex discrimination Requires employees to treat an employee who is pregnant in the same way as any other employee who has a medical condition The law also states that a company cannot design an employee health benefit plan that provides no coverage for pregnancy For instance, an employer cannot deny sick leave for pregnancy-related illnesses such as morning sickness if the employer allows sick leave for other medical conditions such as nausea-related illnesses. 5) Sexual Harassment A form of sex discrimination that violates Title VII Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that is either: Quid pro quo – when submission to or a rejection of this conduct explicitly or implicitly affects an individual’s employments or unreasonably interferes with an individual’s work performance Hostile environment – creates an intimidating, hostile, or offensive work environment 6) Strategic Human Resource Management It is the process of formulating HR strategies and establishing programs or tactics to implement them. When done correctly, SHR planning provides many direct and indirect benefits for the company: o Encouragement of proactive rather than reactive behavior o Explicit communication of company goals o Stimulation of crit. thinking & ongoing examination of assumptions o Identification of gaps between current situation & future vision o Encouragement of line managers’ participation o Identification of HR constraints & opportunities o Creation of common bonds Human capital is a strategic advantage to an org. because: Human resources are valuable Human resources are rare Human resources cannot be imitated Human resources have no good substitutes 7) Title VII Law that was enacted in the midst of the seething civil rights conflicts of the 1960s Section of the Civil Rights Act of 1964 that applies to employment decisions; mandates that employment decisions not be based on race, color, religion, sex, or national origin Applies to employers that have 15 or more employees, as well as to employment agencies and labor unions Unlawful for employers… “ To discriminate against an individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s race, color, religion, sex or national origin.” Types of discrimination: o Disparate Treatment – intentional o Disparate Impact – unintentional; Defenses to discrimination charges o Job relatedness o Seniority o Business Necessity o Bona Fide Occupational Qualification (BFOQ) 8) Reasonable Accommodation An action taken to accommodate the known disabilities of applicants or employees so that disabled persons enjoy equal employment opportunity A wide variety of accommodations are possible, and they can come from some surprising sources. Organizations are required to take some reasonable action to allow disabled employees to work for them. The major aspects of this requirement are: o Employers must make reasonable accommodation for the known disabilities of applicants or employees so that disabled people enjoy equal employment opportunity. o Employers cannot deny a disabled person employment to avoid providing the reasonable accommodation, unless it would cause an “undue hardship” o No accommodation is required if the individual is not otherwise qualified for the position o It is usually the obligation of the disabled to request the accommodation o If the cost of the accommodation would create an undue hardship for the employer, the disabled individual should be given the option of providing the accommodation 9) Recruitment First step in the hiring process The process of generating a pool of qualified candidates for a particular job. The firm must announce the job’s availability to the market and attract qualified candidates to apply. The recruitment process can be viewed as a sales activity Recruitment is your opportunity to sell the job, the organization, and maybe the community to the job candidates Sources: Current Employees Referrals from current employees Former employees Former military Customers Print and radio advertisements Internet ad and career sites Employment agencies Temporary employees College Recruitment Taking an applicant-centered approach to recruitment o Go to where the customers are o What do you have to offer? o Treat them like customers Section 3: Short Essay [4 questions] 1) What is job analysis? Name the different methods of conducting a job analysis and why it is useful for HRM purposes It is a process to identify & determine the particular job duties & requirements and the relative importance of these duties for a given job. An understanding of it gives managers a tool to measure how much and what types of work are necessary to achieve organizational objectives. Different methods of this include: a review of job classification systems; incumbent interviews; supervisor interviews; expert panels; structured questionnaires; task inventories; checklists; open-ended questionnaires; observation; incumbent work logs. Useful for strategic reasons and for determining training needs, compensation, selection & recruitment procedures, performance management, and legal & safety reasons. 2) Reasons for importance of managers to understand the legal environment Understanding and complying with HR law is important for three reasons. It helps you do the right thing, realize the limitations of your firm’s HR and legal departments, and minimize your firm’s potential liability. Do the right thing o The primary requirement of all these laws is to mandate good management practice. Operating within these law has benefits beyond simple legal compliance; employee moral, high job satisfaction, and high job performance. Realize limitations of HR and legal department o One of the key functions of legal counsel, whether internal or external, is to try to limit damage after it has occurred. Members of the HR department support managers who have to make HR decisions with legal implications – HR staff may monitor managers’ decisions or act as consultants. Limit potential liability and impact on public image o Considerable financial liabilities can occur when HR laws are broken or perceived to be broken. Organizations may also face a public relations nightmare when discrimination charges are publicized. 3) Employer checks on applicant information Selection tools? Use of a Bio data form? Checking references and gathering background information on applicants’ work habits and character are useful preliminaries to making a job offer. 4) Affirmative action vs. diversity Affirmative action first emerged from government pressures on business to provide greater opportunities for women and minorities who were discriminated against in the past, thereby achieving fair employment o Full participation by those historically discriminated against o Rooted in laws, the courts, and regulations o Limited to members of “protected groups” Management of diversity recognizes that traditional firms, where white men are the majority, are becoming a thing of the past and it goes by integrating nontraditional employees (women and minorities) into the workforce and using their diversity to the firm’s competitive advantage. o Not government mandated o Make all employees feel that full participation by all affects the organization’s performance o Can be more inclusive than employment laws 5) Alternatives to a layoff Most organizations search for alternative cost-reduction methods before turning to layoffs. Attrition is a common strategy. Managers can use these alternatives both to reduce labor costs and to protect the jobs of full-time employees Major alternatives to layoffs: o Employment policies Hiring freeze: reduce company’s workforce by not hiring any new employees into the company. Cut part-time employees/internships or co-ops o Changes in job design Transfers Relocation o Pay and benefits policies Pay freeze/cuts o Training Retraining
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