C202 Managing Human Capital

Human resource management

is the organizational function responsible for attracting, hiring, developing, rewarding, and retaining talent.

total rewards

refers to the sum of all of the rewards employees receive in exchange for their time, efforts, and performance

Direct financial compensation

: compensation received in the form of salary, wages, commissions, stock options, or bonuses

Indirect financial compensation

(benefits): any and all financial rewards not considered direct financial compensation, including health insurance, wellness benefits, paid vacations, and free meals

Nonfinancial compensation

rewards and incentives given to employees that are not financial in nature, including intrinsic rewards received from the job itself or from the physical or psychological work environment (e.g., feeling successful or appreciated)

business strategy

defines how the firm will compete in its marketplace

talent philosophy

is a system of beliefs about how its employees should be treated

human resource strategy

links the entire human resource function with the firm's business strategy.

Organizational culture

is made up of the norms, values, and assumptions of organizational members

performance culture

focuses on hiring, retaining, developing, motivating, and making work assignments based on performance data and results

high performance work systems (HPWS)

use a fundamentally different approach to managing than do more traditional hierarchical and bureaucratic organizations

Ethics

are the standards of moral behavior that define socially accepted behaviors that are right as opposed to wrong

utilitarian standard

: the ethical action best balances good over harm by doing the most good or doing the least harm

rights standard

: the ethical action that best respects and protects the moral rights of everyone affected by the action, including the right to privacy, to be told the truth, or to be safe

fairness standard

: the ethical action treats all people equally, or at least fairly, based on some defensible standard

common good standard

: the ethical action shows respect and compassion for everyone, especially the most vulnerable

virtue standard

: the ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc

Omission errors

a lack of written rules

Remission errors

pressure to make unethical choices

Commission errors

a failure to follow sound, established operational and ethical practices

Codes of conduct

specify expected and prohibited actions in the workplace and give examples of appropriate behavior

code of ethics

is a decision making guide that describes the highest values to which an organization aspires

Corporate social responsibility

happens when businesses show concern for the common good and value human dignity

stakeholder perspective

considers the interests and opinions of all people, groups, organizations, or systems that affect or could be affected by the organization's actions supports social responsibility

Unfair discrimination

occurs when employment related decisions and actions are not job-related, objective, or merit-based

Fair discrimination

is when only objective, merit-based, and job-related characteristics are used to determine employment-related decisions.

Unlawful employment practices

are those that violate a federal, state, or local employment law, for example by unfairly discriminating against people with legally protected characteristics including pregnancy, religion, or age

Equal employment opportunity (EEO)

means that employment practices must be designed and used in a manner that treats employees and applicants consistently regardless of their protected characteristics

Inclusion

means that everyone feels respected and listened to, and everyone contributes to his or her fullest potential

Common law

is the body of case-by-case court decisions that determines what is legal and what remedies are appropriate

workplace tort

a civil wrong in which an employer violates a duty owed to its customers or employees

National Labor Relations Act (NLRA)

to protect employee and employer rights and to encourage collective bargaining between labor unions and employers

Fair Labor Standards Act

establishes a national minimum wage, overtime rules, recordkeeping requirements, and youth employment standards

Equal Pay Act of 1963

prohibits discrimination in pay, benefits, and pensions on the basis of an employee's gender

Title VII of the Civil Rights Act

prohibits employment discrimination based on race, color, religion, sex, or national origin and provides monetary damages in cases of intentional employment discrimination

bona fide occupational qualification (BFOQ)

is a characteristic that is essential to the successful performance of a relevant job function, and that the essence of the business operation would be undermined by including or excluding members with a protected characteristic

Age Discrimination in Employment Act (ADEA)

prohibits employers from discriminating against any worker with respect to compensation or the terms, conditions, or privileges of employment because he or she is age 40 or older

The Rehabilitation Act of 1973

requires employers to engage in affirmative action to promote the hiring of individuals with a disability

Reasonable accommodation

means an employer is required to take reasonable steps to accommodate a disability unless it would cause the employer undue hardship

The Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA)

prohibits discrimination against protected veterans and requires federal government contractors and subcontractors with a contract of $25,000 or more with the federal government to take affirmative action to employ and promote protected veterans.

Strategic planning

is a process for making decisions about an organization's long-term goals and how they are to be achieved

mission

is its basic purpose and the scope of its operations

vision

identifies the company's long-term goals regarding what the organization wants to become and accomplish, and describes its image of an ideal future

core values

are the enduring beliefs and principles that guide its decisions and goals, including corporate social responsibility and environmental sustainability

business strategy

outlining how it will compete in a particular market

human resource planning

aligns the organization's human resources to accomplish the organization's strategic goals

The Conference Board's Leading Economic Index

, a monthly composite economic index published by the Conference Board, is designed to signal peaks and troughs in the business cycle and forecast future economic activity.

The monthly Conference Board Consumer Confidence Index

measures consumer sentiment by asking randomly selected people questions about their perceptions of their job security and willingness to spend money.

Trend analysis

involves using relevant past employment patterns, including the employer's, the industry's, or even the nation's, to predict a company's future talent needs

staffing ratios

are a mathematical method of calculating the number of employees needed by "indexing" headcount with a relevant business metric

Judgmental forecasting

relies on managers' expertise to predict a firm's future talent needs

Top-down judgmental forecasting

relies on the organization's leaders and their experience and knowledge of their industry and company to make predictions about the firm's future talent needs

Bottom-up judgmental forecasting

starts with lower-level managers' estimates of the firm's future talent needs

Talent inventories

are databases that summarize each employee's competencies, qualifications, languages spoken, and anything else that can help the company understand how the employee can contribute

replacement charts

to track the potential replacements for particular positions

succession planning

or identifying, developing, and tracking employees to enable them to eventually assume higher level positions.

gap analysis

, comparing labor and supply and demand forecasts identifies the firm's future t alent needs

action plans

to proactively address either a talent shortage or surplus

scientific management

breaks work down into its simplest elements and then systematically improves the worker's performance of each element

job characteristics model

proposes that objective characteristics of the job lead to job satisfaction

Job enrichment

increases a job's complexity to give workers a greater sense of responsibility and achievement

job enlargement

Merely adding more tasks at the same level of responsibility and skill related to an employee's current position (horizontal job expansion) is considered

Job rotation

involves moving employees through a variety of jobs to increase their engagement and motivation

Cross-training

is usually required to give employees the skills they need to do multiple jobs

Job analysis

is a systematic process used to identify and describe the important aspects of a job and the worker characteristics needed to succeed

job description

, or a written description of the duties and responsibilities of the job itself

job task

is an observable unit of work with a beginning and an end, such as sorting parts or completing a purchase order

task statements

identify in specific behavioral terms the regular duties and responsibilities of a position

person specification

based on the job description that summarizes the characteristics of someone able to perform the job

essential criteria

Job holder characteristics vital to adequate job performance are called.... , and should be used in recruiting and screening job candidates

desirable criteria

Job holder characteristics that enhance job success but that are not essential to adequate job performance are... and are used to compare job candidates who possess the essential criteria

Knowledge

is organized factual or procedural information that can be used to perform a task

skill

is the ability to use some sort of knowledge in performing a physical task

ability

is a stable and enduring capability to perform a variety of tasks

Other characteristics

is a miscellaneous category for worker characteristics that are not knowledge, skills, or abilities, including personality traits, values, and work styles.

critical incidents job analysis technique

asks job experts to tell stories of good and poor performance to identify particularly desirable and undesirable competencies, behaviors, etc.

job elements job analysis method

is used primarily with industrial occupations and lesser skilled jobs. A group of job experts brainstorms and rates the importance of various characteristics of workers successfully performing the job

structured interview technique

asks job experts to provide information about the job during a structured interview.

task inventory approach

relies on job experts to generate a list of tasks (typically 50-200) that are subsequently grouped in categories capturing major work functions

structured job analysis questionnaire

is a list of pre-identified questions designed to analyze a job.

Position Analysis Questionnaire (PAQ)

is a copyrighted, standardized structured questionnaire designed to be used for just about any job. It assesses the information input, mental processes, work output, job context, and other job characteristics associated with a position

Competency modeling

is a job analysis method that identifies the worker competencies characteristic of high performance

Competencies

are broadly defined worker characteristics that underlie successful performance or behavior on the job

job rewards analysis

is a job analysis technique that analyzes a job's nonmonetary intrinsic rewards, and its extrinsic rewards

intrinsic rewards

rewards derived from the work itself

extrinsic rewards

rewards with monetary value

total rewards

Intrinsic and extrinsic rewards combined are a job's

organizational design

The process of selecting and managing aspects of organizational structure to facilitate organizational goal accomplishment is called

Organizational structure

is the organization's formal system of task, power, and reporting relationships

organizational chart

illustrates the chain of command and reporting relationships in your company

Formalization

reflects the degree to which organizational rules, procedures, and communications are documented

centralized

, concentrating power and decision making authority at higher levels

division of labor

, or the degree to which employees specialize

span of control

is the number of people who report directly to him or her

hierarchy

defines authority and supervisory relationships

Workflow

describes how work is organized to meet the organization's goals

Workflow analysis

investigates how work moves through an organization

Business process reengineering

is a more radical rethinking and redesigning of business processes to achieve large improvements in speed, service, cost, or quality

Sourcing

is the process of identifying qualified individuals and labor markets from which to recruit

Recruiting

refers to activities that affect either the number or type of people willing to apply for and accept job offers