BUS250 Chapter 11 - Managing Human Resource Systems

human resource management (HRM)

the process of finding, developing, and keeping the right people to form a qualified workforce

labor laws

regulate the interaction between management and labor unions that represent groups of employees

Occupational Safety and Health Administration (OSHA)

sets safety and health standards for employers and conducts inspections to determine whether those standards are being met

bona fide occupational qualification (BFOQ)

an exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are “reasonably necessary to the normal operation of that particular business”; are strictly monitored by the Equal Employment Opportunity Commission

disparate treatment

intentional discrimination that occurs when people are purposely not given the same hiring, promotion, or membership opportunities, or because of their race, color, sex, sexual orientation, gender identity, age, ethnic group, national origin, or religious beliefs

adverse impact

unintentional discrimination that occurs when members of a particular race, sex, sexual orientation, gender identity, or ethnic group are unintentionally harmed or disadvantaged

four-fifths (or 80%) rule

a rule of thumb used by the courts and the EEOC to determine whether there is evidence of adverse impact

sexual harassment

a form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs while performing one’s job

quid pro quo sexual harassment

a form of sexual harassment in which employment outcomes, such as hiring, promotion, or simply keeping one’s job, depend on whether an individual submits to sexual harassment

hostile work environment

a form of sexual harassment in which unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment

recruiting

the process of developing a pool of qualified job applicants

job analysis

a purposeful, systematic process for collecting information on the important work-related aspects of a job

job description

a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job

job specifications

a written summary of the qualifications needed to successfully perform a particular job

internal recruiting

the process of developing a pool of qualified job applicants from people who already work in the company

job posting

a procedure for advertising job openings within the company to existing employees

career path

a planned sequence of jobs through which employees may advance within an organization

external recruiting

the process of developing a pool of qualified job applicants from outside the company

selection

the process of gathering information about job applicants to decide who should be offered a job

validation

the process of determining how well a selection test or procedure predicts future job performance

validity

the extent to which you are measuring what you claim to be measuring

human resource information system (HRIS)

a computerized system for gathering, analyzing, storing, and disseminating information related to the HRM process

employment references

sources such as previous employers or coworkers who can provide job-related information about job candidates

background checks

procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to uncover negative, job-related background information not provided by applicants

specific ability tests (aptitude tests)

tests that measure the extent to which an applicant possesses the particular kind of ability needed to do a job well

cognitive ability tests

tests the measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude

biographical data (biodata)

extensive surveys that ask applicants questions about their personal backgrounds and life experiences

personality test

an assessment that measures the extent to which an applicant possesses different kinds of job-related personality dimensions

work sample tests

tests that require applicants to perform tasks that are actually done on the job

assessment centers

a series of managerial simulations, graded by trained observers, that are used to determine applicants’ capability for managerial work

interview

a selection tool in which company representatives ask job applicants job-related questions to determine whether they are qualified for the job

unstructured interviews

interviews in which interviewers are free to ask the applicants anything they want

structured interviews

interviews in which all applicants are asked the same set of standardized questions, usually including situational, behavioral, background, and job-knowledge questions

training

developing the skills, experience, and knowledge employees need to perform their jobs or improve their performance

needs assessment

the process of identifying and prioritizing the learning needs of employees

performance appraisal

the process of assessing how well employees are doing their jobs

central tendency error

when all workers are rated as average or in the middle of the scale

halo error

when all workers are rated as performing at the same level (good, bad, or average) in all parts of their jobs

leniency error

when all workers are rated as performing particularly well

objective performance measures

measures of job performance that are easily and directly counted or quantified; assumed to be factual/true

subjective performance measures

measures of job performance that require someone to judge or assess a worker’s performance; assumed to be biased

behavior observation scales (BOSs)

rating scales that indicate the frequency with which workers perform specific behaviors that are representative of the job dimensions critical to successful job performance

rater training

training performance appraisal raters in how to avoid rating errors and increase rating accuracy

360-degree feedback

a performance appraisal process in which feedback is obtained from the boss, subordinates, peers, and coworkers, and the employees themselves

compensation

the financial and nonfinancial rewards that organizations give employees in exchange for their work

employee separation

the voluntary or involuntary loss of an employee

job evaluation

a process that determines the worth of each job in a company by evaluating the market value of the KSAs (Knowledge, Skills, and Abilities)

pay level

whether to pay workers at a level that is below, above, or at current market wages

pay variability

the extent to which employees’ pay varies with individual and organizational performance

pay structure

the level of pay for specific employees’ work/experience

piecework

a compensation system in which employees are paid a set rate for each item they produce

commission

a compensation system in which employees earn a percentage of each sale they make

profit sharing

a compensation system in which a company pays a percentage of its profits to employees in addition to their regular compensation

employee stock ownership plan (ESOP)

a compensation system that awards employees shares of company stock in addition to their regular compensation

stock options

a compensation system that gives employees the right to purchase shares of stock at a set price, even if the value of the stock increases above that price

hierarchical pay structures

large differences in pay between jobs or organizational levels; work best when clear links can be drawn between individual performance and individual rewards

compressed pay structures

typically have fewer pay levels and smaller differences in pay between levels; work best for interdependent work, which requires employees to work together

wrongful discharge

a legal doctrine that requires employers to have a job-related reason to terminate employees

downsizing

the planned elimination of jobs in a company

outplacement services

employment-counseling services offered to employees who are losing their jobs because of downsizing

early retirement incentive programs (ERIPs)

program that offer financial benefits to employees to encourage them to retire early

phased retirement

employees’ transition to retirement by working reduced hours over a period of time before completely retiring

employee turnover

the loss of employees who voluntarily choose to leave the company

functional turnover

the loss of poor-performing employees who voluntarily choose to leave a company

dysfunctional turnover

the loss of high-performing employees who voluntarily choose to leave a company