HR Defs. Chap:1-4

Human Resource Management

Designing formal systems in an organization to manage human
talent for accomplishing organizational goals

Core Competency

Unique capability that creates high value for a company

Organizational Assets

Intellectual Property, Physical, Human, Financial

Roles

Recruiting, selecting, training, rewarding, managing, and retaining

Human (intellectual) Capital

The collective value of the capabilities,
knowledge, skills, life experiences, and motivation of an
organization’s workforce

Ability-motivation-opportunity (AMO) model

HR practices that lead to greater skill, greater motivation, and
greater opportunity for workers to contribute to the organization

HR Practices

Skill-Enhancing, Motivation-Enhancing, Opportunity-Enhancing

Productivity

Measure of the quantity and quality of work done, considering the cost of the resources used

Unit Labor Cost

Computed by dividing the average cost of workers by their average levels of output

Innovation

Process whereby new ideas are generated that create value for an organization

Organizational Culture

Consists of the shared values and beliefs that give members of an organization meaning and provide them with rules for behavior

7 HR functions

:
− Strategy and planning
− Equal employment opportunity
− Talent acquisition
− Talent management
− Total rewards
− Risk management and worker protection
− Employee and labor relations

Administrative

Focusing on clerical administration, recordkeeping, legal paperwork, and policy implementation

Operational and employee advocate

Managing HR activities based on the strategies and operations identified by management

Strategic

Helping define and implement business strategies

Gig economy

Most work is performed by freelance workers rather than full-time employees.

Globalization of businesses has shifted from trade and
investment to the interation of:

− Global operations
− Management
− Strategic alliances

Gender in workforce

Women = 50% of U.S. workforce

Social Media

Online communities where users create and share content and participate in networking

Areas for potential ethical problems in HR

Compensation, development, staffing, performance management, EEO, and training

HR generalist

A person who has responsibility for performing a variety of HR activities

HR specialists

A person who has in-depth knowledge and expertise in a specific area of HR

HRCI Certification

▪ Professional in Human Resources (PHR)
▪ Senior Professional in Human Resources (SPHR)

Organizations focused on human resources management

− Society for Human Resource Management (SHRM)
− International Personnel Management Association for Human Resources (IPMA—HR)
− World Federation of People Management Associations (WFPMA)
− WorldatWork Association
− Association for Talent Development (ATD)
− International Association for Human Resource Information Management (IHRIM)

WorldatWork Certifications

▪ Certified Compensation Professional (CCP)
▪ Master Certified Compensation Professional (MCCP)
▪ Certified Benefits Professional (CBP)
▪ Work-Life Certified Professional (WLCW)
▪ Global Remuneration Professional (GRP)

Other Human Resource Certifications

▪ Certified Recognition Professional (CRP)
▪ Certified Employee Benefits Specialist Program (CEBS)
▪ Certified Professional in Learning and Performance (CPLP)
▪ Certified Safety Professional (CSP) and Occupational Health and Safety Technologist (OHST)

Strategy

A plan an organization follows for how to compete successfully, survive, and grow

Strategic Planning

Defining organizational strategy, or direction, and allocating resources toward its achievement

VUCA

An acronym standing for volatile, uncertain, complex, and ambiguous

Triple bottom line

Considers the organization’s impact on three major areas—economic, social, and environmental

Strategic HR Management

Appropriate use of HR management practices to gain or keep a competitive advantage

Multinational corporation (MNC)

An organization that has facilities and other assets in at least one country other than its home country

Human resource planning

Ensures the right number of people with the right capabilities at the right times and in the right places

Environmental scanning

Assesses external and internal environmental conditions that affect the organization

Succession Planning

Process of identifying a plan for the orderly replacement of key employees

Changing workforce considerations

− Aging of the workforce
− Growing diversity of workers
− Work–life integration concerns
− Availability of contingent workers
− Outsourcing possibilities

Forecasting

Using information from the past and present to predict future conditions

Forecasting Methods and Periods

• Short-range: forecasts for the immediate HR needs of an organization
• Intermediate-range: plans projecting one to three years into the future
• Long-range: plans extending beyond three years

Quantitative Methods

▪ Statistical regression analysis
▪ Simulation models
▪ Productivity ratios
▪ Staffing ratios

Qualitative Methods

▪ Estimates
▪ The rule of thumb
▪ The Delphi technique
▪ Nominal groups

Severance benefits

Temporary payments made to laid-off employees to ease the financial burden of unemployment

Outplacement services

Give displaced employees support and assistance

Selection Criteria for Laying Off

− Title 7 of the Civil Rights Act
− Age Discrimination in Employment Act
− Americans with Disabilities Act

Others

− Consolidated Omnibus Budget Reconciliation Act (COBRA)
− Older Workers Benefit Protection Act (OWBPA)
− Worker Adjustment and Retraining Notification (WARN) Act

Outsourcing

Transferring the management and performance of a business function to an external service provider

Alternate Work Arrangements

Nontraditional schedules that provide flexibility to employees

Due diligence

Comprehensive assessment of all aspects of the business being acquired

Effectiveness

Ability of a program, project, or task to produce a specific desired effect or result that can be measured

Efficiency

Degree to which operations are carried out in an economical manner

HR metrics

Specific measures of HR practices

HR analytics

An evidence-based approach to making HR decisions on the basis of quantitative tools and models

Benchmarking

Process of comparing an organization’s business results to industry standards or best practices

Balanced scorecard

A framework that organizations use to report on a diverse set of performance measures

Total cost of workforce (TCOW)

Takes into account the full cost for all people that contribute work to the organization

Return on investment (ROI)

Calculation showing the value of investments in human capital
ROI = C divided by (A + B)

A = Operating costs for a new or enhanced system for the time period
B = One-time cost of acquisition and implementation
C = Value of gains from productivity improvements for the time period

Human capital value added (HCVA)

Adjusted operating profitability figure

(revenue − (operating expenses [compensation + benefit costs])) divided by (full-time head count)

Human capital return on investment (HCROI)

Amount of profit derived from investments in labor

(revenue − (operating expenses [compensation + benefit costs])) divided by (compensation + benefit costs)

Human economic value added (HEVA)

Wealth created per employee

(net profit after taxes − cost of capital) divided by (full-time head count)

HR audit

Formal research effort to assess the current state of an organization’s HR practices

Compliance Audit

Checks recordkeeping on state and federal documentation requirements

Benefit Programs Audit

Reviews regulatory compliance, benefits administration, and reporting

I-9 Audit

Reviews compliance with immigration regulations and the I-9 form requirement

Specific Program Audit

Reviews specific HR subareas such as compensation, EEO, or training

Full HR Audit

Reviews all of the above plus any and all other HR functions

Protected characteristics

Individual attributes such as race, age, sex, disability, or religion that are protected under EEO laws and regulations

Equal employment opportunity

Employment that is not affected by illegal discrimination

Status blind

Employment decisions that are made without regard to individuals’ personal characteristics

Enforcement bodies for EEO

− Equal Employment Opportunity Commission (EEOC) enforces
employment laws for employers.
− U.S. Department of Labor (DOL) oversees compliance with many
employment-related laws.

Disparate treatment

Occurs when individuals with particular characteristics that are not job-related are treated differently from others

Disparate impact

Occurs when an employment practice that does not appear to be discriminatory adversely affects individuals with a particular characteristic

Business necessity

Practice necessary for safe and efficient organizational operations

Bona fide occupational qualification (BFOQ)

Legitimate reason an employer can exclude persons on otherwise illegal bases of consideration

Burden of proof

File suit against employers must prove to establish that illegal discrimination has occurred

Nonretaliatory Practices

▪ Creating a policy prohibiting retaliation
▪ Conferring with HR professionals when confronting potential retaliation situations
▪ Documenting all employment actions

Civil Rights Act of 1964, Title VII

• States that it is illegal for organizations to discriminate in any
way based on a person’s sex, race, national origin, color, and/or
religion
• Foundation on which all other workplace nondiscrimination
legislation is built
• Includes hiring decisions, terminations, promotions, demotions,
compensation, working conditions, and many other personnel
actions

The Civil Rights Act of 1991

• Requires employers to show that an employment practice is job related for the position and consistent with business necessity
• Allows people who have been targets of intentional discrimination based on sex, religion, or national origin to receive both compensatory and punitive damages

Executive Orders 11246, 11375, and 11478

Require federal contractors to take affirmative action to compensate for historical discrimination against women, minorities, and individuals with disabilities

Affirmative action

Proactive employment practices to compensate for historical discrimination against women, minorities, and individuals with disabilities

Managing Affirmative Action Requirements

Federal contractors are required to develop and maintain a written affirmative action program (AAP)

Affirmative Action Program (AAP)

Document that outlines proactive steps the organization will take to attract and hire members of underrepresented groups

The Pregnancy Discrimination Act (PDA) of 1978

Requires employers to treat parental leave the same as other personal or medical leaves

The Family and Medical Leave Act (FMLA) of 1993

Requires employers to grant qualified individuals up to 12 weeks of unpaid family leave along with some job protections upon their return

Pay equity

Idea that pay for jobs requiring comparable levels of knowledge, skill, and ability should be similar, even if actual duties differ significantly

The Equal Pay Act of 1963

Requires employers to compensate workers performing similar work without regard to gender

Glass ceiling

Discriminatory practices that have prevented women
and minority status employees from advancing to executive-level
jobs

Glass cliff

The tendency of organization leaders to place women
and minorities in risky positions, especially when the organization is
facing a crisis

Sexual minority

This group is made up of lesbian, gay, bisexual, transgender, queer, and other nonbinary people—often abbreviated as LGBTQ plus.

Sexual Harassment

Unwelcome verbal, visual, or physical conduct of a sexual nature that is severe and affects working conditions or creates a hostile work environment

Quid pro quo

Sexual harassment that links employment outcomes to the granting of sexual favors

Hostile environment

Sexual harassment occurs when an individual’s work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions.

Neurodiversity

The naturally occurring neurological differences among people that are reflected in a range of mental orientations.

Rehabilitation Act

• Enacted in 1973
• Applies only to federal contractors and requires them to take affirmative action to employ workers with disabilities

Americans with Disabilities Act (ADA)

• Enacted in 1990
• Applies to private employers, employment agencies, state and local government, and labor unions with 15 or more employees and is enforced by the EEOC

ADA Amendments Act (Amended in 2009)

Broadens the definition of individuals with disabilities to include anyone with a physical or mental impairment that major life functions without regard for the helpful effects of medication,
prosthetics, hearing aids, and so on

A person with a disability

− has a mental or physical impairment that greatly reduces the ability to perform important life functions;
− possesses a record of such an impairment; or
− is regarded as having such an impairment.

Mental Disabilities

Mental or psychological disorders

EX: Intellectual disability, organic brain syndrome, emotional or mental illness, and specific learning disabilities, Bipolar disorder and depression

Essential job functions

Fundamental job duties

Reasonable accommodation

Modification to a job or work environment that gives a qualified individual an equal
employment opportunity to perform

Determining If a Job Function Is Essential

− Essential because the reason the position exists is to perform that function
− Essential because there is a limited number of employees available who can perform the job function
− Highly specialized so that the job incumbent is hired for that expertise or ability to perform the particular function

Undue hardship

Significant difficulty or expense imposed on an employer when making an accommodation for individuals with disabilities