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Human Resource Management
-Making decisions
about people
-Based on policies,
practices, and systems
Theory of Reasoned Action
Beliefs --> Attitude --> Intention --> Behavior/Job Performance
Human Capital
Employee characteristics that help create a sustainable, competitive advantage because they are:
-Valuable (training, experience, judgement, insights, relationships)
-Rare
-Unimitatable
-No Substitutes
High Potentials (HIPOTs)
Specific employees deemed by organizational leader to have the necessary knowledge, skills, and abilities (i.e., potential) to be effective performers at senior management or executive positions. Gain the attention of the Executives.
Performance Appraisal
The process through which an organization gets information on how well an employee is doing his or her job
Ethics
-Moral principles
-Right and wrong
The 5 Basic Employee Rights
1. Right of free consent
2. Right of privacy
3. Freedom of conscience
4. Freedom of speech
5. Right to due process
Right of free consent
Right to choose how to be treated; realistic job preview— no deceptions
Right of privacy
Right to do as please in private life and what they choose to reveal
Freedom of conscience
Right to refuse to do something that violates moral beliefs
Freedom of speech
Right to criticize organization’s ethics
Right to due process
Right to fair and impartial hearing
Evidence-based HR
Demonstrating that practices have a positive influence on the company's bottom line or key stakeholders (employees, customers, community, shareholders)
Corporate Social Responsibility
Concern for society's welfare
Strategic HR Management
-Used to gain or keep a competitive advantage
-Supports the organization's vision, mission, and strategy
HR Generalist
A person with responsibility for performing a variety of HR activities
Broad knowledge on everything
Wide variety. Refers to specialists.
HR Specialist
A person with in-depth knowledge and expertise in a limited area of HR
In-depth knowledge, Expert
Specific
Professional Society/Organization
A formal organization of people who share an interest in a particular subject or activity
Society for Human Resource Management (SHRM), the largest organization
Labor Force
All people willing and able to work
Internal Labor Force
An organization's actual employees
External Labor Market
Individuals actually seeking employment
Aging Workforce
12% is 16-24 years old
25% is 55 years or older
63% is 25-54 years old
The workforce is getting older
Younger workers entering workforce at a slower rate
Diverse Workforce
The workforce is getting more diverse
76% white
13% black
7% asian
4% other groups
Knowledge Worker
Employees whose main contribution is specialized (customers, process, or profession)
Fast growing fields: Health care (biomedical engineers) and Computers (network systems, data communication analysts)
These employees can easily move job— so HRM challenge is to retain them
Empowerment
Giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service
Engagement
Full involvement in one's work and commitment to one's job and company. This is associated with:
higher productivity
better customer service
lower employee turnover
High Performance Work System
Areas that work together seamlessly to give an organization an advantage in the competition environment
Expatriate
An employee who is sent overseas by their organization for an extended, international assignment
Outsourcing
Sending work to another US company
Off Shoring
The practice of moving operations from the United States to a country where pay rates are lower but the necessary skills are available. Lower employee wages → more profitable
Psychological Contract
-What the company gives and what the employee gives in return
-Unspoken/unwritten expectations
Alternative Work Arrangements for Flexible Staffing Levels
Independent contractors
Temporary employees
Contract employees (work under legal obligations)
Disparate Treatment
Intentional discrimination
Individual intentionally treated differently
Adverse Impact (Disparate Impact)
Non intentional discrimination
Evidenced by 4/5’s “rule of thumb” (80%)
Decision has an adverse impact on one group compare with another
Affirmative Action
-An action or policy favoring those who tend to suffer from discrimination
-Contractors must develop one
Executive Order 11246
Requires all federal contractors to create an affirmative action plan designed to hire and promote women and minorities
Civil Rights Act of 1964 Section 703(a) of Title VII
Prohibits discrimination of the "Big 5": race, color, religion, sex, or national origin. NOT OLDER WORKERS
Covers all the decisions
Age Discrimination Act
Protects those 40 and older
Disability
A physical or mental impairment that substantially limits one or more major life activities
(sight, hearing, walking, learning, breathing, and working)
Americans with Disabilities Act (1990)
Protects a physical or mental impairment that substantially limits one or more major ADLs, a record of having such an impairment, or being regarded as having such an impairment
Employer required to make reasonable accommodations
Never requires employers to hire “unqualified” applicants
Family Medical Leave Act of 1993
Allows employees to leave their jobs to attend to family needs without risking job loss
Provides for up to 12 weeks leave (unpaid) for:
Birth, adoption or foster care of child
Care for a spouse, parent, or child
Employee’s own health
Elder care issues likely grow dramtically
Civil Rights Act of 1991
Negated Supreme Court ruling in Wards Cove Packing Co. v. Antonio (1989)
Plaintiff bore the major burden of proof
Specific selection practices
Amended Civil Rights Act of 1964 by:
Allows for both compensatory and punitive damages
Allows for jury trials
Made “race and sex norming” illegal
Quotas specifically forbidden
Equal Employment Opportunity Commission
Created by CRA 1964
Enforces most EEO Laws
Receives and investigates complaints, doesn’t write laws just helps regulates
Issues guidelines
Monitors hiring practices
Equal Opportunity Complaint
Must be filed within 180 days of the last incident
Starts over for each occurance
Lily Ledbetter
Quid Pro Quo
Something given with the expectation of receiving something in return
Hostile Environment
Working in a constant and uncomfortable sexual environment
Strategic Human Resource Management
A carefully set of Human Resource policies, practices, and systems that fully engage employees in their pursuit of implementing and executing the competitive strategy of the organization
Examples of Strategic Human Resources Management
Selection
Training
Performance Appraisal
Compensation
Benefits
HR Responsibilities of Managers
Help define jobs
Forecast HR needs
Provide training
Interview (and select) candidates
Appraise performance
Recommend pay increases and promotions
Communicate policies
Motivate, with support from pay, benefits, and other rewards
Form I-9
Used to verify the identity and employment authorization/eligibility of individuals hired for employment in the U.S.
All employers must complete form I-9 for each individual they hire
First thing a new employee has to do
Immigrants in the Workforce
Asia= 39%
North America= 31% (mainly Mexico)
Central and South America= 11%
Africa= 10%
Europe= 8%
Other= 1%
Flexible Staffing Levels
Organizations need to react quickly to customer needs
Allows quick re-sizing without massive firing/rehiring
Protean Career
Driven by individual, not organization
Success defined by the individual: Psychological success or self-fulfillment vs. salary or promotions
Transcendence: going above and beyond. not just wanting a paycheck. has something else they are going after
Discrimination
Giving an unfair advantage or disadvantage
Two way to demonstrate evidence of discrimination: Disparate Treatment and Adverse Impact
Adverse Impact Example
Number of applicants/Number hired= Selection Ratio
Selection Ratio #1/Selection Ratio #2= _____ compared to .80
Office of Federal Contract Compliance Programs
Enforces Executive Orders (AA plans and compliance)
Sexual Harassment
Refers to unwelcome sexual advances
Ex: Quid Pro Quo and Hostile Environment
Applies to same-sex harassment, male to female, and female to male
How Sexual Harassment Claims are Avoided
Policy Statements
Training Employees
Develop a reporting mechanism
Acting promptly with discipline and protection
The Occupational Safety and Health Act (OSH Act)
Authorized the federal government to establish and enforce safety and health standards
Main provision: General Duty Clause - As an employer, keep reasonable efforts to make the workplace safe
Occupational Safety and Health Administration (OSHA)
Enforces the OSH Act
Conducts unannounced inspections (“walkabout” tours)
Enforces NIOSH safety and health standards
Levies fines for violations