Human Resource Management Functions Developing Employees Paper

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This paper should be 2-3 pages of typed words; 1.5 spaced only (do not have any other spacing in the paper); Submit this in word format; use 12 font only.

Here is a suggested outline:

I. Opening paragraph introducing the paper (Explain why you took this class)

II. Briefly explain 3-5 core HR Management functions are and why you picked those functions (Hint: the chapters are the core HR functions). Answer a) what did you learn, what did you like about this chapter, and how will you use it on the job.

III. Explain how you now see the primary function of HR Management as is should be. and if your impression of HR changed due to this course and why it changed (if applicable)

III. Explain if there are any functions more important than the others and explain why you have this opinion.

IV. Do you believe that HRM can shape the organization and employee's behavior and how?

V. Closing Summary of what you learned and if you would recommend this course to a fellow student?

Book: HR 4th Edition 4 4e by Angelo DeNisi

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7 Recruiting, Selecting, Training, and Developing Employees Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES Use this section for your next paper! 1. Describe the recruiting process, including internal and external recruiting and the importance of realistic job previews 2. Discuss the steps in the selection process and the basic selection criteria used by most organizations 3. Identify and discuss popular selection techniques that organizations use to hire new employees cv Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 6 LEARNING OUTCOMES (Continued) 4. Describe the selection decision, including potential selection errors and reliability and validity 5. Discuss how organizations train and develop new employees to better enable them to perform effectively Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 7 LO 1 Goal of Recruiting • HR needs to have a process of developing a pool of qualified applicants who are interested in working for the organization • Goals • Optimization of qualified applicant pool • Generation of a pool of applicants who are both qualified and interested • Providing an honest and candid assessment of available jobs and opportunities Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 8 Figure 7.1 LO 1 Organizational and Individual Goals in Recruiting © Cengage Learning® Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 9 Figure 7.2 LO 2 Steps in the Selection Process Candidate A RECRUITING PROCESS FIND CANDIDATES EVALUATE CANDIDATES CAN they do the job? WHY they want the job? Candidate B NEW HIRE CANDIDATE SELECTION Hire for FIT in the job and on the team! Interview against the duties and job requirements on the job description. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 10 LO 1 Internal and External Recruiting INTERNAL RECRUITING Look inside organization HOW: • Job Posting (OPEN) • Supervisory Recommendations (CLOSED) EXTERNAL RECRUITING Look outside organization HOW: • Job Boards (OPEN) • Employee Referrals (CLOSED) • Word of mouth • Staffing firms Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 11 EMPLOYEE REFERRAL PROGRAM • Goal of the program is to get candidates quickly through your network. • Does your company have an employee referral program? • Have you ever referred someone to work at your company? Why or Why Not? • What are the pros and cons of this method of recruiting? • Is it an open or closed process? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 12 LO 1 OPEN or CLOSED Recruiting OPEN RECRUITING Public posting on: Companies website LinkedIn.com CareerBuilder.com Indeed.com Meets EEOC’s rules for diversity and affirmative action plans. OPEN TO ALL QUALIFIED! CLOSED RECRUITING Restricts many qualified candidates from knowing about the opening. Tendency for EEOC violations, finds candidates similar in demographics to current employee base Using Headhunters Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 13 Table 7.1 Advantages and Disadvantages of Internal and External Recruiting Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LO 1 HRM4 | CH7 14 LO 1 ACTIVE OR PASSIVE CANDIDATES ACTIVE CANDIDATES PASSIVE CANDIDATES Are readily posting for open jobs. Have their profiles or resumes on-line with different job boards Are sending emails to their friends and colleagues asking if they know of a job. Competing with many others for an open job. Headhunters are calling passive candidates to see if they will leave their current job for more money, better career mobility, etc. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 15 JOB BOARD POSTING LinkedIn.com Indeed.com College Career Centers Illinois Unemployment centers • CareerBuilder.com • ZipRecruiter.com • • • • HOW DOES A JOB DESCRIPTION DIFFER FROM A JOB POSTING? WHAT IS THE GOAL OF A JOB POSTING? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 16 Realistic Job Previews LO 1 • Realistic job previews (RJP): Technique for ensuring that job seekers understand the actual nature of jobs available to them • PROS: candidate sees company culture, sees job tasks first hand • CONS: takes time for the company to schedule as well as the person who will be shadowed, does the candidate get paid? What is the law on this? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 17 YOUR RESUME • Are you writing your resume for you or the recruiter? • What does a recruiter look for? • How does your resume stack up to the job requirements? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 18 RESUME SCREENING Decision on the resume meets the job qualifications or not then decide if the candidate is in the A pile or B pile and C pile is never looked at. Degree Job Posting states Candidate A Candidate B Candidate C BS Mechanical Engineering Has BSME Does Not have Has a MSME a degree yet 10 yrs experience Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 19 Popular Selection Techniques LO 3 • Applications and background checks • Ask applicants to fill an employment application - Fill it out to conduct a background check - What if you are found lying on this application? - How is an application different from a resume legally? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 20 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 21 EVALUATION OF CANDIDATES • Employment tests: Measure characteristics of an individual • Cognitive ability tests • Psychomotor ability tests • Personality tests and integrity tests Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 22 Figure 7.3 A Sample Selection Process LO 3 Cognitive ability tests Psychomotor ability tests Personality tests and integrity tests Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 23 INTERVIEWER ERRORS • First-impression error: I like what I see or hear therefore I look for more positives or I do not like what I see or hear. Tone and dress is the first. • Contrast error: contrast between 2 candidates could cause an rating error • Similarity error: similar to the interviewer Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 24 Legal and Effectiveness in Recruiting and Selection LO 4 • Legal issues- EEOC • Organization faced with a prima facie case of discrimination must prove that the basis for selection decision was job related - Demonstrated by establishing the validity of a selection instrument Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 25 INTERVIEWING METHODS • Group Panel: 1-3 interviewers are in the room asking the candidate questions. • Pros: all hear the same answer, limits the amount of time for interviewers and interviewee; • Cons: confusing if not coordinated correctly, overwhelming for the candidate; no second chance to answer the question better • Multiple Interviews: Phone screen, multiple interviewers in one day 1—3; Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 26 INTERVIEWING METHODS • Structured – Semi-Structured --Non-structured • Structured is the same question is asked of every candidate allowing for a fair and consistent evaluation of each candidate • Semi-structured is a hybrid with set questions and unscheduled questions. • Unstructured allows the interviewer to ask any question. Cons is the evaluation cannot be a comparison between candidates. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 27 INTERVIEW METHODS • BEHAVIORAL INTERVIEWS • Asking you a question that requires you to demonstrate you had the experience. • Tell me a time when you were late for work? • They are looking for the why you were late and if you continued to be late and if you communicated to the supervisor early or after the fact. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 28 STAR technique • The STAR principal can be helpful in remembering how to ask behavioral based questions: • Situation or Task the candidate was faced with • Action taken • Results of the action HR Manager Situation/TASK Action Taken Results Tell me a time when you had to deny a FML Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 29 EXAMPLE OF A WRITTEN STAR ANSWER Interview Question: Tell me about one you knew you were not going to make and how you got the project done. Example of an answer: A) I had a report due that the team member I was working with was not available during the week I needed assistance. B) I asked my manager who needed the report for an extension due to the workload of the other team member and was granted the extension. C) Our decision was based on getting the right information and buy-in with the team member was more important then rushing the report. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 30 QUIZ: Legal or Illegal? • Identify which questions are illegal and either a) which law governs why this is illegal or b) identify the disparate impact of the question. • • • • • Do you have children? How old are you? Where are your parents from? How do you celebrate Easter? How many sick days did you take last year? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 31 ANSWERS • Identify which questions are illegal and either a) which law governs why this is illegal or b) identify the disparate impact of the question. • Do you have children? Disparate impact on females with child rearing duties • How old are you? ADEA • Where are your parents from? EEOC Origin • How do you celebrate Easter? EEOC Religion • How many sick days did you take last year? Disability or FMLA – trying to figure out attendance Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 32 S/TAR METHOD Question Situation or Task Tell me a time when I was on the train 45 you were late for mins early like I work? normally do and the train was stopped for 40 mins. due to a mechanical issue. Action Results At the 20 min. mark and not knowing when we would start I texted my supervisor that the train was delayed and I would let them know as soon as we started how late I will be. I just wanted them to be aware I might be late. The train pulled in 40 mins late and I was at work 5 mins. late yet my supervisor had at least 2 texts from me keeping them aware of my status. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 33 Criminal Background Reports • Regulated by the EEOC & the FCRA • EEOC regulates the process has to be fair and consistent without targeting any protected class • Fair Credit Reporting Act deals with which employees working in which industries or jobs can have a credit report completed • Concerns about knowing too much personal information about an employee that violates their right to privacy • What positions? • Sales • Accounting, CFO • Security sensitive Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 34 Background checks • Ban The Box Laws • State Level – Growing Trend • Cannot ask an applicant in the pre-screen/hiring process if they have been convicted • 29 states & over 150 cities/counties • Disparate Impact on Minorities - Many urban cities have a proven record of minorities being arrested or convictions higher than Caucasians Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 35 REFERENCE CHECKING • Job applicant asked to provide either letters of recommendation or the names/addresses • References and recommendations are often of little real value. • A growing concern for legal liability in the preparation of recommendation letters. Job applicants have sued people who wrote negative letters of recommendation that were, in turn, the bases for the individuals not being offered employment. • What is your experiences on reference checking? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 36 Training & Development Training and development represent an investment in the employee Goal is to improve the employee’s ability to contribute to organizational effectiveness • Training can be defined as • a planned attempt by an organization to facilitate employee learning of job-related knowledge, skills, and behaviors. • Development, on the other hand, usually refers to teaching managers and professionals the skills needed for both present and future jobs. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 37 Training and Development • Management development • Involves more generalized training for future managerial roles and positions • Organizational development (OD) • System-wide effort to increase the organization’s overall performance through planned interventions • Evaluating training and development • Determine if there is an actual change in the behavior being targeted with the use of control groups Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 38 Figure 7.8 LO 5 Assessing Training and Development Needs ©Cengage Learning® Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 39 Training and Development Techniques LO 5 • Work-based programs • Apprenticeships: Combination of on-the-job training and classroom instruction • Vestibule training: Job is performed under a condition that closely simulates the real work environment • Instructional-based programs • Lectures or discussions • Computer-assisted instruction • Programmed instruction Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 40 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 41 ORGANIZATIONAL LEARNING • Organizational learning is the process of creating, retaining, and transferring knowledge within an organization. • An organization improves over time as it gains experience. From this experience, it is able to create knowledge. • This knowledge is broad, covering any topic that could better an organization. • Related to Baby-boomers retiring and creating a knowledge gap in a company Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 42 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH7 45 9 Compensation and Benefits Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1 Compensation strategy 2 Develop a wage and salary structure 3 Wage and salary administration 4 Benefit programs 5 Mandated benefits 6 Nonmandated benefits 7 Contemporary issues Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 4 LO 1 Compensation and Benefits • Compensation: Set of rewards that organizations provide to individuals for their willingness to perform tasks • Psychological Contract? Give me an example • Benefits: Various items of value beyond wages that employees receive from the organization • Rewards • Incentives Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 5 COMPENSATION AND MOTIVATION • How does pay impact your motivation to do a good job or not? • What pay conversations have you been involved in with other employees in your work area? • How do you know you are getting a fair wage for the work you do? • How does the psychological contract impact compensation issues? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 6 Basic Purposes of Compensation LO 1 • Provide appropriate and equitable rewards to employees • Help employees focus on activities that the organization considers important • Increase employee efforts along desired lines Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 7 LO 1 Internal and External Equity • Internal equity: Comparisons made by employees to other employees within the same organization Watch the video look at • A) the kids work ethics • B) their eyes when they receive their rewards • C) what they say and do https://www.you tube.com/watch? v=hLr2GNRnmX M Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 8 PAY STRUCTURE Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 9 Internal and External Equity LO 1 • External equity: Comparisons made by employees to others employed by different organizations performing similar jobs • Pay surveys: Surveys of compensation paid to employees by other employers in a particular geographic area, industry, or occupational group Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 10 LO 1 Wage versus Salaries • Wages: Hourly compensation paid to operating employees for time worked • Time acts as the basis for determining wages • Salary: Set weekly income paid to an individual on the basis of performance, not on the basis of time Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 11 PAY TRANSPERANCY “REAL WORLD” • Each company will make a decision on how transparent they will be on pay issues. • Can employees discuss their pay? • Can employers fire an employee who discusses pay? • On September 11, 2015, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) • Executive Order 11246, protects employees who inquire about compensation from discrimination. Federal & Subcontractors from asking candidates about pay/compensation. Why is this necessary? • Can private employers fire an employee who discusses their pay with other employees? Some states have outlawed the right to fire and have protected the right to share pay. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 12 LAWS GOVERNING PAY • Social Security Act of 1935 • Fair Labor Standards Act of 1938 covered 4 topics about pay; • Equal Pay Act of 1963 • Employee Retirement Income Security Act of 1974 • Wages are generally hourly compensations based on how many hours a person works • Salary is generally income established per week amount and not based on hours worked. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 13 PAY SALARY EXTERNAL COMPARISIONS Compa ratio: Your salary/midpoint salary = % above or below the midpoint. Example: if as an accounts payable associates pay is $45,000 annual salary so is this person’s salary above or below the market midpoint? Compa ratio is 1.12 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 14 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 15 Figure 9.2 Strategic Options for Compensation LO 1 ©Cengage Learning® Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 16 SALARY RANGE FOR EACH JOB Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 17 Determinants of Compensation Strategy • • • • LO 1 Overall organizational strategy Ability to pay Ability to attract and retain employees Ability to bargain with the unions Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 18 LO 2 Job-Evaluation Methods • Classification system: Attempts to group sets of jobs together into clusters • Point system: Requires managers to quantify value of various elements of specific jobs in objective terms • Point manual: Carefully and specifically defines the degrees of points from first to fifth • Factor-comparison method: Assesses jobs on a factor-by-factor basis using a factor-comparison scale as a benchmark Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 19 Pay for Knowledge and Skill-Based Pay LO 2 • Pay for knowledge: Involves compensating employees for learning specific information • Skill-based pay: Rewards employees for acquiring new skills Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 20 Wage and Salary Administration Ongoing process of managing a wage and salary structure • Pay secrecy: Extent to which the compensation of any individual in an organization is secret • Pay compression: Occurs when individuals with substantially different levels of experience, or performance abilities, are paid relatively equal salaries • Pay inversion: New employees are paid more than experienced employees • Occurs due to rapid external market changes Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 21 The Nature of Benefits Programs • Most organizations provide their employees with an array of benefits • The cost of benefits programs • Organizations spend huge amounts on benefits • Employees are asked to bear more of the costs • Purposes of benefits programs • Attracts better qualified people • Affects job satisfaction Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 22 LO 5 Mandated Benefits • Unemployment insurance (UI): Provides a basic subsistence payment to employees who are between jobs • Under what reasons do you get unemployment pay? • Does every get this money? • Who decides if you get UI or not? • Social security: Designed to provide limited income to retired individuals Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 23 LO 5 Mandated Benefits • Workers’ compensation: Insurance cover for individuals who suffer a job-related illness or accident. Under what reason’s do you get workers compensation? Providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 24 COMPENSATION COSTS • Paid for time worked VISIBLE IN PAYCHECK • Indistinguishable are the mandatory and non-mandatory benefits Seen in the paycheck as taxes to the gvt. Why? • Salary/wages + Mandated benefits + NonMandated benefits = Total Compensation • Do you know who much your Total Compensation is costing your company? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 25 LO 5 Mandated Healthcare • Patient Protection and Affordable Health Care Act, 2010 • Aim is to: - Increase the quality and affordability of health-care insurance - Lower the number of uninsured employees - Reduce the cost of insurance for all involved Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 26 Nonmandated Benefits • Private pension plans: Provides income at retirement • Defined benefit plans Pensions • Defined contribution plans 401k • Paid time off • see table 9.2 pg. 210 • How much time do you take off? • Current trend Unlimited time off • Other benefits • Wellness programs • Health benefits (Cafeteria-style or life-style benefits) • Life Insurance and disability programs • Training and development programs Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 27 TOTAL COMP Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 28 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH9 31 8 Managing a New and Diverse Workforce Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1. Discuss the nature of diversity and distinguish among diversity management, equal employment opportunity, and affirmative action 2. Identify and describe the major dimensions of diversity in organizations 3. Discuss the primary impact of diversity in organizations Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 9 LEARNING OUTCOMES (Continued) 4. Describe individual and organizational strategies and approaches to coping with diversity and discuss the multicultural organization 5. Discuss the basic issues in managing knowledge workers 6. Relate human resource management to social issues Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 10 Nature of Workforce Diversity LO 1 • Diversity: Exists in a group or organization when its members differ from one another along one or more important dimensions • 4 Factors contributing to diversity 1. Changing demographics 2. Increased awareness on how to improve workforce quality 3. Legislation and legal actions 4. Globalization movement Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 11 LO 1 Diversity Management versus Other Concepts • Equal employment opportunity: Treating people fairly and equitably • Taking actions that do not discriminate against people in protected classes • Which law governs protected classes? • Diversity management: Places heavy emphasis on recognizing and appreciating differences among people at work • Attempts to provide accommodations for those differences to the extent that is feasible and possible Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 12 COMPANIES WITH DIVERSITY IN THEIR MISSION STATEMENT • The Coca-Cola Company's global diversity mission is to mirror the rich diversity of the marketplace we serve and be recognized for our leadership in Diversity, Inclusion and Fairness in all aspects of our business, including Workplace, Marketplace, Supplier and Community, enhancing the Company’s social license to operate. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 13 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 14 STARBUCKS • “Our Mission and Values at Starbucks reflect the fundamental principle that everyone is welcome. We aspire to be a place of inclusion, diversity, equity, and accessibility. Diversity makes us stronger, and the creation of a deeply inclusive culture allows us to succeed and grow together.” Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 15 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 16 JOHNSON & JOHNSON • Our mission is to make diversity & inclusion our way of doing business. We will advance our culture of belonging where open hearts and minds combine to unleash the potential of the brilliant mix of people, in every corner of Johnson & Johnson. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 17 LO 2 Dimensions of Diversity Age distribution Gender Disability Ethnicity Other dimensions Civil Rights Act of 1964 and 1991 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 18 Impact of Diversity on Organizations Diversity and social change LO 3 Diversity and competitiveness Diversity and conflict Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 19 Figure 8.4 LO 3 Diversity and Competitiveness Source: Ricky W. Griffin, Management, 10th ed. © 2011 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 20 LO 3 Diversity and Conflict • Conflict around diversity arises when individuals think that a person has been hired, promoted, or fired owing to his/her diversity status • Caused by: - Misunderstandings, misinterpretations, and inappropriate interactions - Indirect impact of poorly conceived employment practices - Differences in cultural values and norms - Fear, distrust, or individual prejudice Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 21 LO 4 Individual Strategies for Dealing with Diversity Understanding nature and meaning of diversity Empathy Tolerance Communication Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 22 Organizational Strategies for Dealing with Diversity LO 4 • Organizational policies • Related to how employees are treated • How to respond to diversity issues • Provide a stance on diversity via the mission statement • Organizational practices • Provide benefit packages to appease individual woes and ensure flexibility Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 23 Organizational Strategies for Dealing with Diversity (Continued) LO 4 • Diversity training: Specifically designed to enable members of an organization to function better in a diverse workplace • Organizational culture • Must be shaped • Top management commitment and support for diversity should be made clear throughout the organization Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 24 Figure 8.5 LO 4 The Multicultural Organization © Cengage Learning® Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 25 LO 5 Managing Knowledge Workers • Organizational learning: Process by which an organization learns from past mistakes and adapts to its environment • Begins with individual learning and change • Depends on social processes and sharing of information • Involves acquisition of new knowledge • Aided by organizational memory Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 26 LO 5 Knowledge Workers • Employees who add value simply because of what they know • Tend to work in high-technology firms • Require extensive and specialized training Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 27 Key Social Issues in HRM LO 6 Prison labor • Permitting prison-made products to compete with those made by people who earn legal wages Living wage • Choice between competitive wages and living wages Immigration • Illegal immigration reduces opportunities for U.S. citizens Corporate social responsibility (CSR) • Balancing environmental concerns with responsibility toward stakeholders Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 28 KEY TERMS • • • • • • • • • • Diversity Diversity management Diversity training Equal employment opportunity Ethnicity Glass ceiling Knowledge workers Multicultural organization Organizational learning Organizational memory Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 29 SUMMARY • Diversity exists in a group or organization when its members differ from one another along one or more important dimensions • Firms that achieve high levels of diversity: • Can capitalize fully on the advantages of diversity • Have fewer diversity-related problems Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 30 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH8 31 Class 4: 2/19 Job Description paper • Due 3/5 • 3 pages - double-spaced • Review each section on the job description to find out the following information: - Tasks, - Tools and Technology, - Knowledge, - Skills and Abilities, - Educational Requirements. 2012 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 1 JOB DESCRIPTION • Knowledge is what is known in a particular field or in total; facts and information. This comes from formal learning or industry words. • Skills & Abilities are actionable items. The ability to do something well; expertise. • Project Management is a skill • Adding data onto an excel sheet is a skill • Repairing an HVAC is a skill (with knowledge being utilized) Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 2 JOB DESCRIPTION • Why did you choose the job description? Look at the summary of the job to help you build your 4-5 sentence paragraph. • Tasks • might be called Duties or Responsibilities. • Pick the top five that excite you about the role and write about how you have the experience. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 3 JOB DESCRIPTION • Tasks • might be called Duties or Responsibilities. • Pick the top five that excite you about the role and write about how you have the experience. This should be the largest set of paragraphs in your paper. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 4 JOB DESCRIPTION • Tools and Technology • might have a section: Machines, Tools, Equipment and Work Aids Most likely you will have to look at the duties and tell me what you know you will need. • Knowledge • • List the task and tell me which course will help you in this task and why. Pick up to three tasks and list which course connects to that task. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 5 JOB DESCRIPTION • Skills and Ability • Most likely you will have to look at the duties and tell me which tasks require action = skills. • Many skills can be learned on the job. • Look for the experience level the company is looking for and write about your experiences. Examples of tasks on the job description. 1) Support any afterhours building needs and activities as required 2) Prepare and submit summary reports of conditions in buildings and recommend actions to be taken Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 6 JOB DESCRIPTION • Educational Requirements • Look at the educational section in the job description. • Write a paragraph on why your educational degree would or would not work well in this role. • Conclusion • What did you learn from this job description review Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 7 CHAPTER 1 & 2 review • Which law is this an example of: • Retrieved on 1-26-2018 at https://www.bing.com/search?q=Reba+McEntire&filters=tnTID%3a%22666CDA8F-09BC-4eff-9CCC114397B4C51B%22+tnVersion%3a%222315861%22+segment%3a%22popularnow.carousel%22+tnCol%3a%223%22+tnOrder%3a%22027f65d5-793d4b20-9fa9-3573994d816a%22&FORM=CNTPNH • • • • • • List the 4 forms of illegal discrimination List the 3 catalysts for legal legislation What does BFOQ stand for and give one example of a job Define business necessity and which 2 laws does it apply to How does disparate impact differ from disparate treatment List the 7 protected classes and define protected class Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 8 Chapter 1-2 Review • What is an example of a quid pro quo for harassment • Which is not an example of utilization analysis: • • • • EEO-1 report Turn over report Benefit open enrollment Affirmative action plan • What is psychological contract and give one example Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 9 Disparate Impact • Griggs vs Duke Power required H.S. degree or a passing score on 2 personality tests • Griggs lawsuit stated neither needed for him to do the job well. • Education required to be hired must show/prove that experience cannot be equivalent. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 10 LO 2 Disparate Impact (Continued) • Geographical comparisons: Comparing the characteristics of the potential pool of qualified applicants for a job with those same characteristics of the present employees in the job • Affirmative Action Plans: if hiring for bank tellers and the city in which the job has a geographical make up of 50% African Americans, 25% white, and 25% Hispanic. Then the bank teller staff should be the same. • Tip in hiring: best practice to assist the manager in avoiding disparate impact is to have the resumes given without names. Candidate A, etc. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 11 McDonnell-Douglas test • Used as basis for establishing a prima facie case of disparate impact discrimination • • • • 1. Member of a protected class 2. Applicant is qualified for job applying to 3. Individual turned down for the job 4. Company continued to seek other applicants • Changes the way we ask for degrees; do employment pre-testing Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 12 Other Forms of Discrimination LO 2 • Pattern or practice discrimination: Similar to disparate treatment but occurs on a classwide or systemic basis • Retaliation • Action taken by an organization against an employee who has: - Retaliation lawsuits are brought after an employee alleges an employer has fired, demoted, harassed or otherwise retaliated against him or her for filing a charge of discrimination or assisted with a job discrimination investigation or lawsuit. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 13 LO 2 Protected Class and Affirmative Action Protected class • Consists of all individuals who share one or more common characteristics as indicated by that law Grew out of stereotyping Race Color Religion Gender Age National Origin Disability Status Military Veteran Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 14 Social Trends Changing the Laws • “Looks” Policy of a store: EEOC vs. Abercrombie & Finch  17 year old female, wore a head scarf and not hired. Business Necessity of their customers. Banned head covering (baseball caps, etc) • Ban the Box laws: Box eliminated candidates • • • • 17 states and 100 cities The “box” is on the employment application Have you been convicted of a crime Background check can stop you from being hired Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 15 Protected Class and Affirmative Action LO 2 Affirmative action • Represents a set of positive steps taken by an organization to actively seek qualified applicants from groups underrepresented in the workforce Utilization Analysis is used here 1. Comparison of racial, sex, and ethnic composition of the employer’s workforce to that of the available labor supply 2. Development of goals and timetables for achieving balance in the workforce 3. Development of a list of action step Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 16 LO 2 Affirmative Action and Reverse Discrimination • Reverse discrimination • Practice that has a disparate impact on members of nonprotected classes • College admissions: bypass the admission standard testing to allow more minorities yet only a certain number of students admitted each year so reverse discrimination to white students applying and denied admission. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 17 LO 2 Types of Sexual Harassment at Work Quid pro quo harassment • Sexual harassment in which the harasser offers to exchange something of value for sexual favors Hostile work environment • One that produces sexual harassment because of a climate or culture that is punitive toward people of a different gender Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 18 ILLINOIS INSTITUTE OF TECHNOLOGY STRONG MESSAGE TO FACULTY AND STAFF ABOUT THE IIT’s PRESIDENT’s ABOUT ANNUAL TRAINING Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 19 YOUR EMPLOYEE HANDBOOK • • • • Harassment Hostile Work environment Retaliation No supervisor or manager should have, or seek to have, any relationship of a dating, intimate, romantic, and/or sexual nature with any employee who reports to them or for whom they provide input into the employee’s annual review. • What are the procedures to complain? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 20 Other Equal Employment Opportunity Legislation LO 2 The Lilly Ledbetter Fair Pay Act of 2009 The Equal Pay Act of 1963 The Age Discrimination and Employment Act The Pregnancy Discrimination Act of 1979 The Civil Rights Act of 1991 The Americans with Disabilities Act of 1990 The Family and Medical Leave Act of 1993 Executive Order 11246 and Executive Order 11478 Prohibition of discrimination on the basis of sexual orientation Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 21 Other Equal Employment Opportunity Legislation LO 2 The Lilly Ledbetter Fair Pay Act of 2009: Supervisor at Goodyear Paid 40% less than other male supervisors Awarded 3M in backpay yert reduced to 300K On appeal overturned due to the 180 days to file rule The law now states the 180 days restarts with each payroll that there that there is a violation of pay. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 22 Other Equal Employment Opportunity Legislation LO 2 The Equal Pay Act of 1963 The Age Discrimination and Employment Act • 1967 and 1986 • ADEA • EEOC agency responsible to monitor • Older employees in 1967 laid off due to higher cost • Targeting older workers for younger workers • Growing lawsuits in early 2000 and now in recent cases Employee must prove age was a decision for the laid off. The Pregnancy Discrimination Act of 1979 • Protect women from stereotyping; if pregnant cannot do their job. Factor workers; Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 23 Other Equal Employment Opportunity Legislation LO 2 The Civil Rights Act of 1991 • Amended the 1964 CRA • Easier to file and shifts the burden of defense to the employer • Includes the Glass Ceiling Act Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 24 The Americans with Disabilities Act (ADA) 1990 • Mental or physical impairment of 1 or more major life activities; • Have a record of or being regarded as • Sight, hearing, breathing, movement (walking, paralysis), heart conditions, cancer (serious illnesses), • Obesity, drug or alcohol is not covered unless there is a major life limitation • AIDS and HIV is protected under ADA • Reasonable accommodation and business necessity Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 25 LO 2 The Family and Medical Leave Act of 1993 1979 50 or more employees in a 75 mi radius 12 weeks unpaid leave Birth, adoption, care dependent, employee’s own illness Required co. to pay for healthcare coverage, return to same shift, pay, job or similar equivalent • Must have worked an aver. 25 hrs. weekly in previous 12 months. So no new employee covered. • 2009 amended to support military spouses to care when personnel is deployed. • • • • • Father /Mother work at the same company share the 12 weeks. • Trends like Google increased paid maternity leave. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 26 Other Equal Employment Opportunity Legislation LO 2 Executive Order 11246 • Pres. Johnson; Federal contracts of 50K or more must file an affirmative action plan Executive Order 11478 • Pres. Nixon; federal contactors of 10K or more to not discriminate on base of protected classes • Vocational Rehabilitation Act of 1973 • Requires federal contractors with $2,500 contracts to hire disable workers. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 27 Sexual Orientation • Being discriminated because of one’s real or perceived sexual orientation • Gay, lesbian, bisexual, or heterosexual • 19 states have additional laws of protection • Defense of Marriage Act (DOMA) signed by Pres Clinton in 1996 and a marriage is only between a man and woman. • Same sex marriages in 13 states Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 28 Agencies That Enforce Equal Employment Opportunity LO 2 • Equal Employment Opportunity Commission (EEOC) A division of the Justice Department Created by Title IIV of the CRA 1964 Enforces Title IIV, Equal Pay Act, ADA, Investigating and resolving complaints about alleged discrimination • Gathering information regarding employment patterns and trends in U.S. businesses • Issuing information about new employment guidelines as they become relevant • • • • Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 29 LO 3 FLSA Fair Labor Standards Act • Compensation and benefits • Fair Labor Standards Act (FLSA), 1938 - It establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. - federal minimum wage is $7.25 per hour • Employee Retirement Income Security Act of 1974 (ERISA) Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 30 FLSA KEY POINTS • Exempt from overtime: - salaried is the same for 52 weeks and never changes; - can still get overtime if the company chooses - Can be deducted if disciplined (i.e. suspended) yet if you work 5 hrs in one week you must still be paid. - Some states require exempt to track hours worked • Non-exempt (gets overtime) - Hourly or salaried hourly - Federal law is on the 41st hour – overtime; some states have overtime for any time over 8 hrs. in one day - Timesheets required Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 31 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 32 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 33 5 exemption catagories https://www.dol.gov/whd/overtime/fs17a_overview.pdf Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 34 FLSA KEY POINTS Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 35 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 36 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 37 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 38 Legal perspectives on labor relations • National Labor Relations Act or Wagner Act, 1935 • Labor Management Relations Act (Taft-Hartley Act) and the Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 39 • Landrum-Griffin Act of 1959 • An act to provide for the reporting and disclosure of certain financial transactions and administrative practices of labor organizations and employers, to prevent abuses in the administration of trusteeships by labor organizations, to provide standards with respect to the election of officers of labor organizations, and for other purposes. • Employee Free Choice Act 2009 • amend the National Labor Relations Act • system to enable employees to form, join, or assist labor organizations [unions], • to provide for mandatory injunctions for unfair labor practices during organizing efforts, and for other purposes. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 40 Agencies That Enforce Equal Employment Opportunity (Continued) LO 2 • Office of Federal Contract Compliance Procedures (OFCCP) • Responsible for enforcing executive orders • Conducts yearly audits of government contractors Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 41 Other Areas of Human Resource Regulation LO 3 (Continued 1) • Employee safety and health • Occupational Safety and Health Act (OSHA), 1970 • Drugs in the workplace • Drug-Free Workplace Act of 1988 • Medical Marijuana • Plant closings and employee rights • Worker Adjustment and Retraining Notification (WARN) Act of 1988 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 42 LO 3 Privacy issues at work • Privacy Act of 1974 • to safeguard individual privacy from the misuse of Federal records, to provide that individuals be granted access to records concerning them which are maintained by Federal agencies, to establish a Privacy Protection Study Commission, and for other purposes. • The Genetic Information Nondiscrimination Act (GINA), 2009 • An act to prohibit discrimination on the basis of genetic information with respect to health insurance and employment. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 43 Privacy issues at work LO 3 • PATRIOT Act, which was passed shortly after the September 11, 2001 attacks • An Act to deter and punish terrorist acts in the United States and around the world, to enhance law enforcement investigatory tools, and for other purposes Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 44 Evaluating Legal Compliance LO 4 • Ensure managers understand the laws that govern human resource management • Managers should rely on their own legal and human resource staff to: • Answer questions • Review procedures periodically • Organizations find it useful to engage in external legal audits of human resource management procedures Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 45 CHAPTER 2 Closing Case • Welcome Cari • How did she do? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 46 CHAPTER 2 REVIEW • Which law does not regulate compensation: • LMRA • FLSA • FMLA • ERISA • Which law does not regulate benefits : - FLSA - NLRA - ERISA - COBRA • _______The Federal minimum wage is $8.25 as of January 2018? Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 47 Chapter 5 Opening Case By Anthony Roldan Companies: Big Retailers(Kohl’s, Walmart, etc) Tagline: Forecasting the Future Job Security: ● Some companies strategize and hire temps and seasonal workers to allow for demand to keep up. E.g. Retailers ● Other Employers are seeing a decrease in jobs since the economy is improving. E.g. Loan officers w/ home refinancing Questions 1. 2. 3. What industry sectors are most likely to add jobs during a down economy? During an improving economy? Are there employment sectors that are essentially unaffected by economic fluctuations? Will we be able to make enough technology based jobs to substitute for machines taking over jobs? DeNisi, Angelo; Griffin, Ricky. HR (New, Engaging Titles from 4LTR Press) (Page 109). South-Western College Pub. Kindle Edition. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH2 52 Reminders • Mid-term is March 12th. Online students living in/near IIT campus are required to be present in the class on the 1st. • Online out-of-state students will need to contact Charles Scott to arrange for a proctor. The exam can be taken the day before or on the day. It must be completed by EOD on 3-1-18. Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 1 3 The Global Environment Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1. Growth of international business 2. Global issues in international HRM 3. HRM function in international business 4. Domestic issues in international HRM 5. Managing international ExPats 6. International labor relations Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 3 LO 1 Growth of International Business • British empire was built around the financial and business interests of the British nobility • Forces that shaped today’s competitive international business environment began to emerge after World War II • By the late 1970s, businesses from other countries emerged as major players in the world economy Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 4 Growth of International Business (Continued) LO 1 • Developments around the world have affected the new global economy • Economies have become highly interdependent • Growth of regional alliances has substantial effects on the global business community Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 5 Figure 3.2 LO 2 Global Issues in International Human Resource Management © Cengage Learning® Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 6 LO 2 International HRM Strategy ON EXAM! Ethnocentric staffing model • Uses parent-country nationals to staff higher-level foreign positions Polycentric staffing model • Calls for the dominant use of host-country nationals throughout the organization Geocentric staffing model • Puts parent-country, host-country, and third-country nationals all in the same category Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 7 LO 2 Understanding the Cultural Environment • Culture: Set of values, symbols, beliefs, and languages that guide the behavior of people within that culture • Differences directly affect business practices in international situations • Language differences complicate issues in international business • Cultural roles directly affect HRM practices Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 8 LO 2 Dimensions of National Culture Identified by Geert Hofstede • Power distance • Individualism versus collectivism • Masculinity versus femininity • Uncertainty avoidance • Time orientation Identified by the GLOBE project • Uncertainty avoidance • Power distance • Individualism versus collectivism • Assertiveness • In-group collectivism • Gender egalitarianism • Future orientation • Performance orientation • Humane orientation Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 9 Figure 3.3 LO 2 Political and Legal Issues of International Business ON EXAM! © Cengage Learning® Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 10 Political and Legal Issues of International Business LO 2 • Government stability • Permanence of government policies toward businesses • Includes the extent of risk faced by expatriates as a result of political instability • Trade incentives • Reduced interest rates on loans, construction subsidies and tax incentives, and relaxation on trade controls Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 11 Political and Legal Issues of International Business (Continued) LO 2 • Trade controls • Tariffs - Tax collected on goods shipped • Quotas - Limit on number of goods traded • Economic communities • Sets of countries that agree to eliminate trade barriers among members • Examples - The European Union and the North American Free Trade Agreement (NAFTA) Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 12 Figure 3.4 LO 3 Fundamental Management Challenges in International Business © Cengage Learning® Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 13 Specific Human Resource Issues in International Business LO 3 ON EXAM! Exporting • Process of making a product in the firm’s domestic marketplace and selling it to another country Licensing • Involves one company granting its permission to another company in a foreign country to manufacture or market its goods in its local market Direct foreign investment • Occurs when a firm headquartered in one country builds or purchases operating facilities in a foreign nation Joint venture • Two or more firms cooperate in the ownership or management of an operation on an equity basis Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 14 Domestic Issues in International Human Resource Management Local recruiting and selection issues LO 4 Local training issues Local compensation issues ON EXAM! Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 15 Expatriates and Corporate International Strategy LO 5 • Expatriates: Employees sent by a firm to work in another country • Threats revolve around opportunistic behavior and information asymmetry • Firm should implement a knowledge contract - Systematic debriefing of expatriates to ensure information symmetry Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 16 Selecting Expatriates LO 5 • HR manager must define skills and abilities required to: • Do the job • Work in a foreign location • Criteria for selection • Managerial competence • Language training • Adaptability to new situations Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 17 Training Expatriates LO 5 • Managers are required to provide: • Language training • Classroom training regarding the history of and the daily living conditions in a country • Training on social manners and issues in social exchanges Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 18 Compensating Expatriates LO 5 • Jointly determined by: • • • • • Labor-market forces Professional licensing requirements Standard of living Occupational status Government regulations • Differential compensation • Provided to make up for differences in currency valuation, standards of living, and lifestyle norms Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 19 Compensating Expatriates (Continued) LO 5 • Hardship premium: Additional financial incentive offered to employees • Entices them to accept less attractive assignments • Other measures • Tax-equalization systems • Housing, education, medical treatment, travel to home country, and club memberships • Job-location assistance for spouses Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 20 LO 5 Repatriation • Requires adjustment on: • Professional levels - Being out of sight may lead to loss of status in the firm • Personal levels - Expatriates will have to get reaccustomed to home-country practices • Companies must stay in touch with their expatriates Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 21 LO 6 International Labor Relations • Labor relations • Processes of dealing with employees who are organized into labor unions • Heavily regulated by laws • Norms regarding the relationship between unions and management vary from nation to nation Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 22 Closing Case CHAPTER 3 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 23 KEY TERMS • Ethnocentric staffing model • Polycentric staffing model • Geocentric staffing model • Culture • Exporting • Licensing • Direct foreign investment • Joint venture (strategic alliance) • Expatriates • Hardship premium (foreign service premium) Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 24 OPENING CASE: CHAPTER 4 • Tomas Podcast Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 25 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 26 LEARNING OUTCOMES 1. Competitive environment of HRM 2. Identify three types of strategies and relate each to human resource management 3. HR strategy formulation 4. Discuss the processes through which human resource strategy is implemented 5. Discuss how the human resource function in organizations can be evaluated Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 27 Competitive Environment LO 1 • Firms gain competitive advantage via management of human resources (HR) • HR managers: • Adopt strategic perspectives • Possess knowledge of critical links between organizations and HR strategies • Add value by providing expertise on how to use firm’s existing human resources Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 28 Strategic Perspective in the Competitive Environment LO 1 • Employees are important sources of competitive advantage • Steps to gain a sustained competitive advantage - Hire the right people - Train them to be effective - Place them in the right jobs - Motivate them to work hard - Retain them Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 29 Influence of Organizational Purpose and Mission LO 1 • Purpose: Basic reason for a firm’s existence • Mission: Statement of how an organization intends to fulfill its purpose • Provides subtle cues about the importance a firm places in its human resources Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 30 LO 1 Influence of the Top Management Team • Top management team: Group of senior executives responsible for overall strategic operation of the firm • Sets the tone for the organization and plays a major role in shaping its culture • Managerial discretion - Managerial influence depends on three constraints • Nature of the industry, organization, and the individual Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 31 Role of Corporate Governance LO 1 • Deal with agency problems • Mismatch in the interests of the managers and owners of a firm • Solved by board of directors who: - Monitor actions of the top management team - Ensure protection of stockholders’ interests Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 32 LO 2 Types of Strategies Corporate strategy • Determines what businesses the corporation will operate Business strategy • Deals with how the firm will compete in each market where it conducts business Functional strategy • Deals with how the firm will manage each of its major functions Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 33 Corporate Strategies LO 2 Growth strategy • Pursued internally by opening additional locations • Pursued externally through mergers, joint ventures, or acquisitions Retrenchment strategy • Occurs when an organization finds that its current operations are not effective, and major changes are needed to rectify the problem • Involves rightsizing the organization by closing operations, shutting down factories, and terminating employees Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 34 Contemporary Challenges in HR • Chapter 4: Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 35 Corporate Strategies (Continued) LO 2 Stability strategy • Used after a period of retrenchment or rapid growth when a company plans to stay in its current businesses and intends to retain the manner of management Diversification strategy • Used by companies that are adding new products, product lines, or businesses to their existing core products, product lines, or businesses Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 36 LO 2 Diversification Strategies • Related diversification: Used when a corporation believes it can achieve synergy among its various businesses • Unrelated diversification: Used when a firm attempts to operate several unique businesses in different, unrelated markets • Based on the logic that a company can shield itself from adverse external events Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 37 Business Strategy LO 2 • Adaptation model: Business seeks ways to adapt to its environment • Strategic alternatives include: - Defender strategy - Prospector strategy - Analyzer strategy - Reactor Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 38 LO 2 Adaptation Model Alternative strategies Description Environment Defender strategy • Guards and secures position Low uncertainty and in existing markets risk and high degree of stability Prospector strategy • Focuses on new products and markets • Avoids long-term commitment Dynamic and growing with considerable uncertainty and risk Analyzer strategy • Identifies and exploits new markets and products • Simultaneously maintains nucleus of traditional core products and customers Stable conditions with moderate stability and risk Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 39 Other Competitive Strategies LO 2 Differentiation strategy • Attempts to develop an image or reputation for its product or service that sets the company apart from its competitors Cost leadership strategy • Focuses on minimizing the costs as much as possible Focus strategy • Undertaken when an organization tries to target a specific segment of the marketplace for its products or services Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 40 Figure 4.3 LO 3 Human Resource Strategies Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 41 Basic Components of HR Strategy Organization design LO 3 Corporate culture Unionization Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 42 LO 3 Forms of Organization Design • Functional design (U-form organization) • Organization groups members into basic functional departments • Conglomerate (H-form design) • Used when organization has implemented a strategy of unrelated diversification • Divisional (M form) • Facilitate synergy across businesses • HR functions are handled within each division Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 43 Corporate Culture LO 3 • Set of values that help members understand: • What the organization stands for • How it accomplishes what it desires • What it considers important • Plays a major role in shaping managerial behavior • Affects formulation and implementation of HR strategies Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 44 Corporate Culture (Continued) LO 3 • Firms must have a strong and wellarticulated culture • Communicated via: • Training • Ensuring consistent behavior • Other organizational activities • Crucial for success of corporate mergers and acquisitions Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 45 Impact of Unionization and Collective Bargaining LO 3 • Labor relations • Process of dealing with employees who are represented by a union • Unionized firms tend to have rules and formal procedures • Limit a firm’s ability to formulate an ideal strategy • Strong unions facilitate strategic change if they work with the management Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 46 Interpersonal Processes LO 4 Psychological contract • Overall set of expectations held with respect to what one will contribute to the organization and what one receives in return Personality • Relatively stable set of psychological attributes or traits that distinguish one person from another Motivation • Set of forces that causes people to behave in certain ways Stress • Person’s adaptive response to a stimulus that places excessive psychological or physical demands on that person Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 47 Strategy Implementation LO 4 • HR managers are responsible for: • Identifying potential leadership qualities among existing employees - Help structure procedures for developing and enhancing those qualities • Improving behavioral processes • Directly related to communication • Pervasive nature of written, oral, and nonverbal communication Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 48 Table 4.1 LO 5 Human Resource Management Practices That May Lead to Improved Firm Performance Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 49 Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH3 50
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Running head: HR MANAGEMENT FUNCTIONS

HR Management Functions
Student’s Name
Professor’s Name
Course Title
Date

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HR MANAGEMENT FUNCTIONS

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HR Management Functions
Human resource management describes the formal system of policies, practices, decision and
programs which affect the behavior, performance and attitudes of people in organizations. This
system determines the level of engagement, satisfaction and performance of people which predicts
the level of achieving organizational objectives. I took this class to understand the core HR
Management functions into details and appreciate the importance of HRM in shaping organizations
and the behavior of employees.
HR management functions describe the scope of the HR department in organizations. The
success of organizations in the contemporary competitive business environment depends on the
effective management of human resources. The other factors which include technological and
financial resources are common to most organizations. There are five essential HRM functions.
These functions include management of new and diverse workforce, recruiting, choosing, teaching
and developing employees, compensation and benefits, employee and labor relations and safety and
health (DeNisi, 2017).
The first function of HR management is to maintain th...


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