Comprehensive Human Resource Management: Strategies, Laws, and Practices

What is Human Resource Management (HRM)?

HRM is the strategic approach to the effective management of people to help organizations gain a competitive advantage.

What are the integrated functions of HRM?

HR planning, recruitment & selection, training & development, performance management, compensation & benefits, labor & employment relations, and compliance with employment laws.

What is Strategic Human Resource Management?

A process where managers design HRM components to be consistent with each other, the organization's strategy, and other elements of the organization's architecture.

Why is HRM increasingly important?

Due to increased legal complexities, recognition of people as a competitive advantage, and their impact on the bottom line.

What does Human Capital refer to?

The organization's investment in attracting, retaining, and motivating an effective workforce, serving as a tangible indicator of the value of people.

What is Human Capital Management?

The strategic practice of acquiring, managing, developing, and optimizing an organization's workforce to enhance performance and achieve business goals.

Who developed the concept of human capital?

Nobel economist Gary Becker in 1964, viewing labor as a form of capital investment in people.

What distinguishes low-road employers from high-road employers?

Low-road employers minimize costs and invest little in workers, while high-road employers develop workers as assets and invest in their growth.

What is the legal default in the U.S. regarding employment?

Employment-at-Will, which allows employers to terminate employees without cause.

What is the role of the Equal Employment Opportunity Commission (EEOC)?

The EEOC enforces most employment laws in the U.S. and addresses employment discrimination against protected classifications.

What is Affirmative Action?

Programs designed to enhance the employment, upgrading, and retention of members of protected groups, established by Executive Order #11246.

What are the two types of sexual harassment?

Quid pro quo and hostile work environment.

What does the National Labor Relations Act of 1935 (Wagner Act) allow?

It permits private-sector workers to organize unions, bargain collectively, and take concerted action.

What is the function of the National Labor Relations Board (NLRB)?

To supervise representation elections and adjudicate unfair labor practices.

What is the Taylor Law?

A law governing public-sector labor relations in New York State.

What is the significance of the SCOTUS ruling against Affirmative Action in 2023?

It reflects a growing push by conservative groups to eliminate all forms of Affirmative Action in businesses and organizations.

What is the impact of sexual harassment on employment?

It can affect an individual's employment, performance, or work environment and requires organizations to have reporting mechanisms and educational programs.

What are the main functions of Human Resource Management (HRM)?

Staffing, Training & Development, Compensation & Benefits, Employee & Labor Relations.

What is job analysis?

The process of identifying the tasks, duties, and responsibilities (TDRs) of a job, along with the knowledge, skills, abilities, and other characteristics (KSAOs) needed to perform it.

What are the two important outcomes of job analysis?

Job descriptions and job specifications.

What does a job description include?

A written statement that describes what a job holder does, how it's done, and why it's done, including job content, environment, and conditions of employment.

What is a job specification?

A statement of the minimum qualifications a person must possess to perform a job successfully, identifying the necessary KSAOs.

What is HR planning?

Activities that managers engage in to forecast current and future HR needs to match labor supply with labor demand.

What happens when labor supply and demand are out of balance?

Labor shortages or surpluses result, requiring managers to restore equilibrium.

What is the purpose of recruitment?

To attract a pool of qualified applicants for open positions from both external and internal labor markets.

What are Realistic Job Previews (RJPs)?

A preview of the good and bad aspects of a job and organization to help candidates decide if the job is right for them.

What is personnel selection?

The process of screening and choosing individuals for positions based on their qualifications and potential for success.

What are the important psychometric properties of selection tests?

Reliability (consistency of measurement) and validity (accuracy of measurement).

What was the significance of Griggs v. Duke Power (1971)?

It was the first major Supreme Court case interpreting Title VII of the Civil Rights Act, distinguishing between disparate treatment and disparate impact.

What are the two main types of structured interviews?

Situational interviews (hypothetical questions) and behavioral interviews (questions based on past experiences).

What is the goal of employee orientation?

To introduce new hires to their jobs, co-workers, and workplace, reducing anxiety and familiarizing them with company policies.

What is the difference between training and development?

Training focuses on getting employees up to speed, while development aims at long-term growth for employees and the organization.

What are the three parts of the training process?

Needs Assessment, Planning and Implementation, and Evaluation.

What tools can organizations use to recruit from the external labor market?

Media outlets, company websites, job fairs, schools, recruitment firms, employee referrals, and former employees.

What is the purpose of job postings in recruitment?

To inform potential candidates about job openings and attract qualified applicants.

How can structured interviews improve hiring decisions?

By enhancing the predictability (reliability and validity) of the interview process.

What is the derived demand in HR planning?

The demand for labor that is dependent on the organization's needs.

What is the role of job analysis in legal compliance?

It ensures that job descriptions and specifications meet legal standards and requirements.

What is the impact of effective personnel selection on organizations?

Good hiring decisions can enhance productivity and reduce costs, while poor decisions can lead to negative consequences.

What is the importance of training methods in employee development?

Training methods should be tailored to the type of employee being trained, such as blue-collar or white-collar workers.

What is the significance of self-selection in RJPs?

It allows candidates to determine if the job and organization align with their expectations, leading to better job matches.

What is on-the-job training (OJT)?

A training method where employees learn by doing their job, often combined with classroom instruction.

What are some common training methods used in organizations?

On-the-job training, role-playing, vestibule training, web-based training, job rotation, mentoring, and coaching.

What is the purpose of performance management?

To monitor and evaluate employees' work to create an environment for optimal performance aligned with organizational goals.

What trend is occurring in employee evaluations?

Organizations are moving towards more frequent 'check-ins' instead of relying solely on annual evaluations.

What are the three types of performance appraisals?

Trait Appraisals, Behavior Appraisals, and Results Appraisals.

What is a Graphic Rating Scale?

A popular evaluation instrument that rates employees on various job-related criteria.

What is Management by Objectives (MBO)?

A technique where employees and managers set joint goals, popularized by Peter Drucker.

How does Forced Distribution work in performance evaluations?

It ranks employees on a curve, distributing them across performance categories.

What is the purpose of performance feedback meetings?

To discuss employee performance levels, reasons for assessments, and ways to improve, conducted privately and without interruptions.

What does total compensation include?

Base pay, incentives, benefits, and non-financial rewards like promotions and recognition.

What is a pay-level decision?

The decision to pay above, at, or below the market rate for labor in a specific industry or geographic area.

What is a pay structure?

The arrangement of jobs into categories based on their importance and the required knowledge, skills, abilities, and other characteristics (KSAOs).

What is job evaluation?

A systematic approach to assessing the relative worth of each job in an organization.

What are mandatory employee benefits in the US?

Social Security, Workers' Compensation, Unemployment Insurance, Affordable Care Act, and Family and Medical Leave Act.

What is the trend in employee benefits costs?

Benefits can comprise 30-40% of total compensation costs, with a trend of shifting costs and risks onto employees.

What are some current HR-related issues?

Work schedules, living wages and inflation, employment security, contingent workers, and the impact of AI on jobs.

What educational background is beneficial for a career in HR?

Undergraduate degrees in business, psychology, or economics, with specialized master's degrees in HR or Labor Relations being most advantageous.

What is the Society for Human Resource Management (SHRM)?

A professional association for HR professionals that offers reduced membership rates for students.

What does the Labor & Employment Relations Association (LERA) focus on?

It is a professional association for Labor and Employment Relations professionals, also offering student memberships.