Chapter 10: Human Resource Management and Labor Relations

Human resource management (HRM)

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

Human resources (HR)

the people comprising an organization’s workforce

Human capital

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

Talent management

the view that the people in an organization 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

Job description

description of the duties and responsibilities of a job; its working conditions; and the tools, materials, equipment, and information used to perform it

Job specification

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

Recruiting

process of attracting qualified persons to apply for jobs an organization is seeking to fill

Internal recruiting

considering present employees as candidates for openings

External recruiting

attracting persons outside the organization to apply for jobs

Realistic job preview (RJP)

providing the applicant with a real picture of what it would be like performing the job the organization is trying to fill

Contingent worker

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

Training

usually refers to teaching operational or technical employees how to do the job for which they were hired

Development

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

On-the-job training

training, sometimes informal, conducted while an employee is at work

Vestibule training

off-the-job training conducted in a simulated environment

Performance appraisal

evaluation of an employee’s job performance to determine the degree to which the employee is performing effectively

360-degree feedback

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

Compensation system

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

Wages

compensation in the form of money paid for time worked

Salary

compensation in the form of money paid for discharging the responsibilities of a job

Bonuses

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

Merit salary systems

individual incentive linking compensation to performance in nonsales jobs

Pay for performance

individual incentive that rewards a manager for especially productive output

Variable pay

individual incentive that rewards a manager for especially productive output

Incentive programs

special compensation program designed to motivate high performance

Profit-sharing plans

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

Gainsharing plans

incentive plan that rewards groups for productivity improvements

Pay-for-knowledge plans

incentive plan to encourage employees to learn new skills or become proficient at different jobs

Cost-of-living adjustment (COLA)

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

Wage reopener clause

clause allowing wage rates to be renegotiated during the life of the contract

Benefits

compensation other than wages and salaries

Cafeteria benefits plan

benefit plan that sets limits on benefits per employee, each of whom may choose from a variety of alternative benefits

Equal employment opportunity

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

Title VII of the Civil Rights Act of 1964

forbids discrimination in all areas of the employment relationship

Equal Pay Act of 1963

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

Age Discrimination in Employment Act

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

Civil Rights Act of 1991

amended the original Civil Rights Act

Affirmative action

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

Affirmative action plan

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

Adverse impact

when people of color and women meet or pass the requirement for a job at a rate less than 80 percent of the rate of non-Hispanic, white, male group members (in the United States)

Sexual harassment

making unwelcome sexual advances in the workplace

Quid pro quo harassment

form of sexual harassment in which sexual favors are requested in return for job-related benefits

Hostile work environment

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

Equal Employment Opportunity Commission (EEOC)

federal agency enforcing several discrimination-related laws

Fair Labor Standards Act

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

Family and Medical Leave Act (FMLA) of 1993

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

Occupational Safety and Health Act (OSHA) of 1970

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

Workers’ compensation insurance

legally required insurance for compensating workers injured on the job

Employee Retirement Income Security Act (ERISA) of 1974

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

Employment at will

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

Workforce diversity

the range of workers’ attitudes, values, beliefs, and behaviors that differ by gender, race, age, ethnicity, physical ability, and other relevant characteristics

Knowledge workers

employees who are of value because of the knowledge they possess

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

Employee information systems (skills inventories)

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

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

National Labor Relations Act (Wagner Act)

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

Taft-Hartley Act (Labor-Management Relations Act)

passed to limit union power

National Labor Relations Board (NLRB)

established by the Wagner Act to enforce its provisions

Collective bargaining

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

Labor relations

process of dealing with employees who are represented by a union

Strike

labor action in which employees temporarily walk off the job and refuse to work

Lockouts

management tactic whereby workers are denied access to the employer’s workplace

Picketing

labor action in which workers publicize their grievances at the entrance to an employer’s facility

Boycott

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

Work slowdown

labor action in which workers perform jobs at a slower than normal pace

Strikebreakers

worker hired as a permanent or temporary replacement for a striking employee

Mediation

method of resolving a labor dispute in which a third party suggests but does not impose a settlement

Arbitration

method of resolving a labor dispute in which both parties agree to submit to the judgment of a neutral party

Patriot Act

legislation that increased U.S. government’s power to investigate and prosecute suspected terrorists