HR EXAM 1

human resource management

The policies, practices, and systems that influence employees’ behavior, attitudes, and performance

(Product Line) Administrative Service and Transaction

compensation, hiring, and staffing

(Product Line) Business Partner Services

Developing EFFECTIVE HR SYSTEMS. impleteing business plan, and talent management

(Product Line) Strategic Partner

Contributing to business strategy based on considerations of human capital business capabilities, readiness, and developing practices as strategic differentiators

How can you decrease time spent on administrative tasks to increase its strategic role?

* Implementation of shared service model
* Use of Technology
* Outsourcing

Implementation of shared service model

center of expertise or excellence, service centers, business partners

Use of technology

to reduce HRM’s role in administrative tasks, maintaining records, and providing self-service to employees

Outsourcing

bringing in other companies…

reasons for outsourcing

cost savings, increased ability to recruit, and manage talent

How can HRM help companies compete through globalization

Enter International Markets and Offshoring/Reshoring jobs

Offshoring

a special case of outsourcings in which jobs that move leave one country and go to another

Reshoring

move jobs back from overseas to the US

3 ways HRM help companies compete through technology

* Consider applications of social networking, AI, and robotics
* Use HRIS, mobile devices, cloud computing, and HR dashboards
* Consider High Performance work system and Virtual Teams

Social Networking

Facilitate interactions between people usually around shared interest like social media

HRIS (human resource information system)

system used to acquire, store, manipulate, analyze, retrieve, and distribute information related to HR

HR dashboard

include HR metric such as productivity and absenteeism

High-performance work system

maximize employees and technology

Virtual Teams

rely exclusively on technology for interaction

Business model

story how the company will create value for the customers and how it’ll fo do properly

How do labor costs influence profitability?

fixed labor costs and variable costs

Fixed Cost

costs incurred regardless of the number of units produced

Variable Cost

Costs that vary directly with the units produced

Strategic Management Process

help companies achieve their goals… analyzing a company’s competitive situation, developing the company’s strategic goals, and devising a plan of action,,, must consider people-related issues

HRM

a pattern of planned human resources deployments and activities intended to enable an organization to achieve its goals

Strategy formulation

strategic planning groups decide on a strategic direction by defining the company’s mission and goals

Strategy implementation

the organization follows through on the strategy that has been chosen

Administrative Linkage

the lowest level of interaction, HRM function’s attention is focused on day to day activates, and strategic planning takes place without input from HRM

One way linkage

the firm’s strategic business planning function develops the strategic plan, then informs the HRM function of the plan

two way linkage

allows for consideration of HR issues during the strategy formulation process, with integration between HRM and strategic planning being sequential and interdependent

Integrative Linkage

have their HRM functions built right into the strategy formulation and implementation processes, interaction is continuous, and the HTM executive is part of the senior management and strategic planning team

Cost leadership stratedy

Value creation through cost reduction,,, focuses on earning above-average returns by becoming the lowest-cost producer in the industry,,, increase efficiency,,, compensation, high pay differentials

Differentiation strategy

Value creation through product or service differentiation the company’s product or service is different from that of others in the industry and charges a premium price relative to its competitors,,, risk takers, broader career paths, result-based performance management, and externally aligned

Concentration strategy

focusing on increasing market share, reducing costs, or creating and maintaining a market niche for products and services,,, maintenance of current skills/ doing what the company does best

Internal growth strategy

focus on new market and product development, innovation, and joint ventures,,, knowledge improvement and skill changes

Mergers and acquisition (external growth strategy)

an emphasis on acquiring vendors and suppliers or buying businesses that allow a company to expand into new market,,, joining forced with another company,,, evaluating and solving “people issues”

Downsizing

the planned elimination of large number of personnel, designed to enhance organizational effectiveness,,, cost cutting and maintaining/increasing productivity

Learning Organization

requires the company to be in a constant state of learning through: making decisions, assimilating information, monitoring the encvironment

United States-Mexico-Canada Agreement (USMCA)

* Free market agreement between the three nations
* replaced the North American Free Trade Agreement
* Goal: create more balanced, reciprocal trade between the member nations

Global Tax Policies

* Some countries have low corporate tax rate to incentivize incorporation
* Tax Cuts and Jobs Act (TCJA) of 2017 lowered corporate tac in the US from 35% to 21%
* Goal: provide more capital investment in the US; make the US more attractive for income derived from intangible resources

Growth of Asia

* New significant economic forced
* China has established a sizable economy with large population and markets opening to foreign investors

General Agreement on Tariff and Trade (GATT)

* The international framework of rules and principles to REDUCE TRADE BARRIERS GLOBALLY
* ensure that trade flows as smoothly, predictably, and freely as possible
* Replaced the WTO, world trade organization

Culture

the set of important assumptions, often unstated, that members of a community, have shared values/beliefs/customs

Individualism

people act as individuals, looking after their interes and the interest of their immediate families

Power distance (low)

power is even amount community… unequal power distribution is unacceptable and should be eliminated

Uncertainty avoidance (low)

FLEXIBLE AND EASY GOING,,, uncertainty is acceptedl people take each day as it comes

Masculinity

Masculine values (assertiveness, performance, success, competition) are more important

Long-term orientation

focus on future; values do not necessarily provide immediate benefits

Collectivism

People act as members of a group, looking after the interest of the larger community, which protects them

Power distance (high)

Value Hierarchy, unequal power distribution is the norm and acceptable; it should be maintained

Uncertainty avoidance (high)

Uncertainty should be reigned in; people strive to control the future by imposing rules and codes

Femininity

Feminine value (relationship, helping, cooperation, consensus, modesty) are more important

Short term orientation

focus on past and present; values include respect for tradition and fulfillment of social obligation

Human capital

the productive capabilities of individuals… determined to a large extent by educational opportunities

* countries with low human capital attract facilities that require low skills and low wage levels
* ensure humane working conditions
* countries with high human capital attract foreign investment that creates high-skill job
* manage highly skilled talent

U.S laws

require stricter standards in foreign facilities

Economic system

provide incentives for human capital development

Social systems

free education but little economic incentive to develope human capital due to lack of rewards

Capitalist system

higher cost of develop human capital but higher economic incentive to do so

13h Amendment

Abolished Slavery

14th Amendement

Equal protection for all citizens

Reconstruction Civil Rights Act of 1866

All citizens have the right to enter and enforce contracts

Reconstruction Civil Rights Act of 1871

All citizens have the right to sue in federal court if civil rights are violated

Equal Pay Act of 1963

Men and women must be paid equally

Title VII (7) of the civil rights act of 1964

cannot discriminate against individuals based on race, color, religion, sex, or national origin

Age discrimination in Employment Act (ADEA) of 1967

employers cannot discriminate against employees 40 years of age and older

Rehabilitation Act of 1973

Engage in affirmative action toward employing Vietname veterans

Pregnancy Discrimination Act of 1978

may not single out pregnancy or related conditions for special procedures to determine an employee’s ability to work,,, health insurance must cover expenses for pregnancy related conditions

American with disabilities act of 1990 (ADA)

employers cannot discriminate against individuals with disabilities in the workplace

Civil Rights Act of 1991

adds the right t o compensatory and punitive damages in cases of discirmination

Uniformed Services Employment and Reemployment Rights Act of 1994

prohibits employment discrimination against military service members and veterans,,, requires to put military service members back into their civilian jobs after military services

Executive Order 11246

Prohibits discrimination based on race, color, religion, sec, and national origin,,, take affirmative action to ensure against discrimination

Executives Order 11478

employment policies to be based on merit and fitness while race, color, etc should not be considered

Executive Order 13672

protection of individuals from discrimination based on sexual orientation and gender identity

Characteristics included in protected classes

* race
* color
* religion
* sex
* national origin
* age
* disability status
* veteran status/military service

EEOC

enforces equal pay act of 1963

OFCCP

cover companies doing business with the federal government

Disparate treatment

intentionally be treated different due to characteristics of protected classes

Disparate impact

intent is irrelevant, consequences are discriminatory

Failure to provide reasonable accommodation

affirmatively do something to accommodate an individual’s disability (qualified applicant with disability) or religion (legitimate religion belief)

Disparate treatment

Prima Facie Case- plaintiff must prove that the defendant committed an illegal act

Disparate impact

4/5 rule, hiring rate for the minority group is less than 4/5 (80%) of the hiring rate for the majority group

Bona Fide Occupational Qualification

Characteristics that are necessary, rather than preferred, for a job, like an actor

Sexual Harrasment

* Unwelcome sexual advances
* Quid Pro Quo Harassment- have sex or be fired
* Hostile work environment- creating an intimidating, hostile, or offensive work environment

Occupational Safety and Health Act

establish and enforce occupational safety and health standard for all places of employment engaging in interstate commerce

* conduct inspections
* unannounced sit visit, record of death/injuries/illnesses, tour of employers premises, employee interviews

Work Violence can be Prevented

* Environmental controls
* administrative controls
* behavioural controls