Chapter 8: Managing Human Resources in Organizations

human resources management (HRM)

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

human capital

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

Title VII of the Civil Rights Act of 1964

forbids discrimination on the basis of sex, race, color, religion, or national origin in all areas of the employment relationship

adverse impact

when minority group members meet or pass a selection standard at a rate less than 80 percent of the pass rate of majority group members

Equal Employment Opportunity Commission

charged with enforcing Title VII of the Civil Rights Act of 1964

Age Discrimination in Employment Act

outlaws discrimination against people older than forty years; passed in 1967, amended in 1978 and 1986

affirmative action

intentionally seeking and hiring qualified or qualifiable employees from racial, sexual, and ethnic groups that are underrepresented in the organization

Americans with Disabilities Act

forbids discrimination against people with disabilities

Civil Rights Act of 1991

amends the original Civil Rights Act, making it easier to bring discrimination lawsuits while also limiting punitive damages

Fair Labor Standards Act

sets a minimum wage and requires overtime pay for work in excess of 40 hours per week; passed in 1938 and amended frequently since then

Equal Pay Act of 1963

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

Employee Retirement Income Security Act of 1974 (ERISA)

a law that sets standards for pension plan management and provides federal insurance if pension funds go bankrupt

Family and Medical Leave Act of 1993

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

National Labor Relations Act

passed in 1935 to set up procedures for employees to vote on whether to have a union; also known as the Wagner Act

National Labor Relations Board (NLRB)

established by the Wagner Act to enforce its provisions

Labor-Management Relations Act

passed in 1947 to limit union power; also known as Taft-Hartley Act

Occupational Safety and Health Act of 1970 (OSHA)

directly mandates the provision of safe working conditions

What two things does the Occupational Safety and Health Act of 1970 (OSHA) require of employers?

1. provide a place of employment that is free from hazards that may cause death or serious physical harm

2. obey the safety and health standards established by the US Department of Labor

job analysis

a systematized procedure for collecting and recording information about jobs within an organization

replacement chart

lists each important managerial position in the organization, who occupies it, how long he or she will probably remain in the position, and who is or will be a qualified replacement

employee information system (skills inventory)

contains information on each employee's education, skills, experience, and career aspirations; usually computerized

recruiting

the process of attracting individuals to apply for jobs that are open

internal recruiting

considering current employees as applicants for higher-level jobs in the organization

external recruiting

getting people from outside the organization to apply for jobs

realistic job preview (RJP)

provides the applicant with a real picture of what it would be like to perform the job that the organization is trying to fill

validation

determining the extent to which a selection device is really predictive of future job performance

training

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

development

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

performance appraisal

a formal assessment of how well an employee is doing his or her job

What are the two basic categories of appraisal methods that are commonly used in organizations?

1. objective methods

2. judgmental methods

Behaviorally Anchored Rating Scale (BARS)

a sophisticated rating method in which supervisors construct a rating scale associated with behavioral anchors

recency error

the tendency to base judgments on the subordinate's most recent performance because it is most easily recalled

halo error

allowing the assessment of an employee on one dimension to "spread" to ratings of that employee on other dimensions

360-degree feedback

a performance appraisal system in which managers are evaluated by everyone around them--their boss, their peers, and their subordinates

compensation

the financial remuneration given by the organization to its employees in exchange for their work

What are the three basic forms of compensation?

1. wages (hourly compensation paid to operating employees)

2. salary (compensation paid for total contributions, as opposed to pay based on hours worked)

3. incentives (special compensation opportunities that are usually tied to performance)

job evaluation

an attempt to assess the worth of each job relative to other jobs

benefits (indirect compensation)

things of value other than compensation that an organization provides to its workers

diversity

a characteristic of a group or organization whose members differ from one another along one or more important dimensions, such as age, gender, or ethnicity

diversity and multicultural training

training that is specifically designed to better enable members of an organization to function in a diverse and multicultural workforce

labor relations

the process of dealing with employees who are represented by a union

Why did labor union membership begin to steadily decline in the mid-1950s?

1. increased standards of living made union membership seem less important

2. traditionally unionized industries in the manufacturing sector began to decline

3. the globalization of business operations caused many unionized jobs to be lost to foreign workers

collective bargaining

the process of agreeing on a satisfactory labor contract between management and a union

grievance procedure

the means by which a labor contract is enforced

knowledge workers

worker whose contributions to an organization are based on what the know