Reading Exam 1 Study Guide – HRM (Chs. 1–4)

Reading Exam 1 Study Guide – HRM (Chs. 1–4)

Fundamentals of Human Resource Management – Bauer et al.

Chapter 1 – Human Resource Management (HRM)

Definition of HRM

• System of decisions and actions related to managing employees across the employee life cycle (hiring → development → performance → retention → exit).
  
  

• Goal: maximize employee and organizational effectiveness.
  
  

Why HRM Matters

• Directly impacts employee motivation, satisfaction, performance, and retention.
  
  

• HR practices linked to firm success (operational efficiency, financial performance, competitive advantage).
  
  

• Example: Costco → higher pay + benefits → stronger employee loyalty.
  
  

Changing Context of HRM

• Shift from administrative role → strategic partner role.
  
  

• Technology, globalization, demographic changes, and remote work influence HRM.
  
  

• HR must address diversity, ethics, and workforce flexibility.
  
  

HRM Profession

• Roles: generalists (broad HR functions) vs specialists (recruitment, compensation, training, HRIS).
  
  

• HR certifications: SHRM-CP, SHRM-SCP, HRCI (PHR/SPHR).
  
  

• HRM adds value by aligning workforce strategy with organizational goals.
  
  

Chapter 2 – Strategic HRM, Data-Driven Decision Making, and HR Analytics

Formulating and Implementing Strategy

• Steps: mission → external/internal analysis → strategy formulation → HR alignment → implementation → evaluation.
  
  

• HR role: ensure workforce capabilities match strategy.
  
  

Importance of Strategic HRM

• Links HR practices to organizational outcomes:
  
  

  • Employee outcomes: satisfaction, performance.
    
    

  • Operational outcomes: productivity, efficiency.
    
    

  • Stakeholder outcomes: reputation, customer loyalty.
    
    

  • Financial outcomes: profitability, ROI.
    
    

• Builds and sustains competitive advantage.
  
  

Data-Driven HR Decisions

• Move from intuition-based → evidence-based decisions.
  
  

• Levels of HR Analytics:
  
  

  • Descriptive: summarize what happened.
    
    

  • Predictive: forecast what will happen.
    
    

  • Prescriptive: recommend what should be done.
    
    

Scientific, Ethical, Legal HRM

• Use valid/reliable data (scientific).
  
  

• Treat employees fairly (ethical).
  
  

• Comply with employment laws (legal).
  
  

• Example: using employee survey data responsibly.
  
  

Components of Successful HR Analytics

• Right people (with analytics/critical thinking skills).
  
  

• Right processes (data collection, reporting, decision-making).
  
  

• Right infrastructure (HRIS, technology).
  
  

• Takes 5–8 years for an org. to build true data-driven culture.
  
  

Chapter 3 – Data Management and Human Resource Information Systems (HRIS)

Key Aspects of Data Management

• HRM tracks entire employee life cycle: job design, recruiting, training, performance, pay, safety, exit.
  
  

• HRIS → stores and merges employee data, supports workforce planning, HR analytics, and automation (payroll, benefits, attendance).
  
  

• Global HRIS = higher staff retention, especially in multinational firms.
  
  

Opportunities with Data & HRIS

• Track employee movement and predict turnover.
  
  

• Automate HR tasks → reduce costs.
  
  

• Enable predictive and prescriptive analytics for better decisions.
  
  

Challenges

• Cost: software, training, consultants, ROI analysis.
  
  

• Skill gaps: traditional HR lacks analytics expertise → need for critical thinking, data skills.
  
  

• Privacy: sensitive employee data (pay, SSNs, medical info) must be secured.
  
  

Developing an HRIS

1. Needs assessment (what exists, what’s missing, stakeholder input).
   
   

2. Assess organizational needs (features, integration, compliance reports).
   
   

3. Logical design (process/data requirements) before physical design (software/hardware).
   
   

4. Vendor selection (RFPs, references, software-as-a-service vs in-house).
   
   

Implementation of HRIS

• Implementation is as much about people/change management as it is about technology.
  
  

• Resistance must be managed (job changes, access to data).
  
  

• Many HRIS still used mainly for compliance, not full strategic transformation.
  
  

Data Security & Privacy

• Types: anonymous, confidential, personally identifiable.
  
  

• Legal issues: scraping data (e.g., Facebook/Cambridge Analytica).
  
  

• SSNs = most sensitive (FTC: 9M identities stolen yearly).
  
  

• Security threats: hacking, viruses, human error (main cause).
  
  

• Safeguards: strong passwords, 2-factor authentication, training, blockchain.
  
  

Chapter 4 – Diversity, Inclusion, and Equal Employment Laws

Challenges & Benefits of Diversity and Inclusion

• Benefits: innovation, decision-making, financial performance, reputation.
  
  

• Challenges: similarity-attraction bias, stereotypes, unconscious bias → lead to exclusion, turnover.
  
  

• Inclusive environments = respect, voice, equal opportunity.
  
  

Equal Employment Opportunity (EEO) Laws

• Enforced by EEOC (private/public orgs) and OFCCP (federal contractors).
  
  

• Apply to orgs with 15+ employees (20+ for ADEA).
  
  

• Protect against discrimination in hiring, pay, promotion, training, and termination.
  
  

Equal Pay Act of 1963 (EPA)

• Equal pay for equal work (sex cannot determine pay).
  
  

• Covers wages, benefits, stock options, etc.
  
  

• Employer defenses: seniority, merit, production quality/quantity.
  
  

Title VII of the Civil Rights Act of 1964

• Prohibits employment discrimination based on race, color, religion, sex, national origin.
  
  

• Covers disparate treatment (intentional) and disparate impact (neutral practice with unequal effects).
  
  

• Defenses: nondiscriminatory reason, Bona Fide Occupational Qualification (BFOQ).
  
  

• Also covers harassment:
  
  

  • Quid pro quo: job decisions tied to sexual favors.
    
    

  • Hostile work environment: unwelcome conduct that a reasonable person finds offensive.
    
    

Other Key Laws

• Pregnancy Discrimination Act (1978) → protects pregnancy/childbirth.
  
  

• ADEA (1967) → protects 40+ from age discrimination.
  
  

• ADA (1990, amended 2008 ADAAA) → protects qualified individuals with disabilities; requires reasonable accommodations.
  
  

• GINA (2008) → bans discrimination based on genetic information/family history.
  
  

• Lilly Ledbetter Fair Pay Act (2009) → 180-day clock resets with each paycheck.
  
  

• LGBTQ protections: Title VII interpreted by EEOC to cover gender identity/sexual orientation; mixed legal rulings, but courts increasingly recognize.
  
  

Maintaining Compliance

• Train managers on EEO obligations.
  
  

• Develop clear anti-discrimination/harassment policies.
  
  

• Create internal complaint mechanisms.
  
  

• File EEO-1 reports (for larger employers/federal contractors).
  
  

• Conduct internal audits (pay equity, workforce diversity).
  
  

Diversity Initiatives & Analytics

• Beyond compliance: mentoring, employee resource groups, unconscious bias training.
  
  

• HR analytics → identify barriers, track representation, reduce bias in hiring (e.g., blind résumé screening).
  
  

• Risks: algorithms can reinforce bias if unchecked.
  
  

• Example: Kimberly-Clark used analytics to boost female leadership representation.