Chapter 10: Human Resource Management and Labor Relations

Human Resources (HR)

the people comprising a organization’s workforce

Human resource management (HRM)

the set of organizational activities directed at attracting, developing, and maintaining an effective workforce

• knowledge about legal complexities

• can improve productivity

Human capital

reflects the organization’s investment in attracting, retaining, and motivating an effective workforce

• recognizing value in the people

• the key to attract qualified workers is planning

Talent Management

the view that the people in an organization’s represent a portfolio of valuable talents that can be effectively managed and tapped in ways best targeted to organizational success

Job Analysis

systematic analysis of jobs within an organization, results in 2 things

Job Description

description of the duties and responsibilites of a job. its working conditions, and the tools, materials, equipment, and information used to perfom it

• pertains to the job itself

Job Specification

description of the skills, abilities, and other credentials and qualifications required by the job

• pertains to the person hired to do the job

Employee Information System (Skills Inventory)

computerized system containing information on each employee’s education, skills, work experiences, and career aspirations

• more difficult to asses external labor options

Replacement Chart

list of each management position, who occupies it, how long that person will likely stay in the job, and who is qualified as a replacement

• can train and develop potential successors

360-Degree Feedback

performance appraisal technique in which mangers are evaluated by everyone around them—their boss, their peers, and their subordinates

• Feedback is necessary for improvement

• should focus on facts, not biases

Adverse Impact

when minorities and women meet or pass the requirement for a job at a rate less than 80 percent of the rate of majority group members

Affirmative Action

intentionally seeking and hiring employees from groups that are underrepresented in the organization

-also applies to Vietnam-era vets and qualified handicapped individuals

Affirmative Action Plan

written statement of how the organization intends to actively recruit, hire, and develop members of relevant protected classes

Age Discrimination in Employment Act (1967)

outlaws discrimination against people older than 40 years

Americans with Disabilities Act

forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees

Arbitration

method of resolving a labor dispute in which both parties agree to submit to the judgment of a neutral third party. As settlement is dictated

• more legally binding

Benefits

compensation other than wages and salaries

Bonus

individual performance incentive in the form of a special payment made over and above the employee’s salary

Boycott

labor action in which workers refuse to buy the products of a targeted employer

Civil Rights Act of 1991

• amended the original Civil Rights Act

• made it easier to bring discrimination lawsuits but limited amount of damages that can be awarded

Collective Bargaining

process by which labor and management negotiate conditions of employment for union-represented workers and draft a labor contract

Compensation system

total package of rewards that organizations provide to individuals in return for their labor

Contingent worker

employee hired on something other than a full-time basis to supplement an organization’s permanent workforce

-includes independent contractors, on-call workers, temporary employees, and contract and leased employees

cost-of-living adjustment (COLA)

labor contract clause tying future raises to changes in consumer purchasing power

Development

usually refers to teaching managers and professionals the skills needed for both present and future jobs

Employment at Will

principle, increasingly modified by legislation and judicial decision, that organizations should be able to retain or dismiss employees at their discretion

Employee Retirement Income Security Act (ERISA) of 1974

-only required if employers provide a pension plan for their employees

-ensures the financial security of pension funds by regulating how they can be invested

Equal Employment Opportunity (EEO)

-legally mandated nondiscrimination in employment on the basis of race, creed, sex, or national origin

• employers are not required to seek out and hire minorities but must treat all who apply fairly

Equal Employment Opportunity Commission (EEOC)

federal agency enforcing several discrimination-related laws

Equal Pay Act of 1963

-requires that men and women be paid the same amount for doing the same job

• attempts to circumvent the law by having different job titles and pay rates for men and women who perform the same work is illegal

External Recruiting

attracting persons outside the organization to apply for jobs

-posting jobs on company website or other job search sites, holding campus interviews, using employment agencies, advertising in print publications, referrals from current employees, “walk-ins”

Fair Labor Standards Act(FLSA)

sets a minimum wage and requires the payment of overtime rates for work in excess of 40 hours per week

• exempt: salaried professionals, executives, and administrative employees

Family and Medical Leave Act (FMLA) of 1993

requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies

Gainsharing Plan

incentive plan for distributing bonuses to employees when company profits rise above a certain level

Hostile Work Environment

form of sexual harassment derived from off-color jokes, lewd comments, and so forth

National Labor Relations Act (also known as Wagner Act)(NLRA)

sets up a procedure for employees to vote on whether to have a union

if they vote to have one, management is required to bargain collectively with a union

National Labor Relations Board (NLRB)

established by Wagner Act to enforce its provisions

Labor-Management Relations Act (also known as the Taft-Hartley

passed to limit union power

Labor Union

group of individuals working together to achieve shared job-related goals, such as higher pay, shorter working hours, more job security, greater benefits, or better working conditions

Labor Relations

process of dealing with employees who are represented by a union

Occupational Safety and Health Act of 1970 (OSHA)

• federal law setting and enforcing guidelines for protecting workers from unsafe conditions and potential health hazards in the workplace

it requires employers to:

1. provide a place of employment that if free from hazards that may cause death or serious physical harm

2. Obey the safety and health standards established by the Department of Labor

-enforced by OSHA inspections, conducted when an employee files a complaint or when a serious accident occurs

-Failure to meet standards can result in steep fines