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
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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
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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
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8
Figure 7.1
LO 1
Organizational and Individual Goals in
Recruiting
© Cengage Learning®
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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.
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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
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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
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13
Table 7.1
Advantages and Disadvantages of
Internal and External Recruiting
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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.
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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?
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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?
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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?
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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
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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?
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20
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21
EVALUATION OF CANDIDATES
• Employment tests: Measure characteristics
of an individual
• Cognitive ability tests
• Psychomotor ability tests
• Personality tests and integrity tests
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HRM4 | CH7
22
Figure 7.3
A Sample Selection Process
LO 3
Cognitive ability tests
Psychomotor ability tests
Personality tests and integrity tests
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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
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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
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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;
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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.
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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.
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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
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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.
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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?
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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
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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.
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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
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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
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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?
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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.
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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
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HRM4 | CH7
38
Figure 7.8
LO 5
Assessing Training and Development
Needs
©Cengage Learning®
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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
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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
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HRM4 | CH7
42
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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
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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?
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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
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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
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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
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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.
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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
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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®
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HRM4 | CH9
16
SALARY RANGE FOR EACH JOB
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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
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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
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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
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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
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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
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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
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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.
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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?
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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
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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
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HRM4 | CH9
27
TOTAL COMP
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HRM4 | CH9
28
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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
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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
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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
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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
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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.
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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.”
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HRM4 | CH8
15
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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.
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HRM4 | CH8
17
LO 2
Dimensions of Diversity
Age
distribution
Gender
Disability
Ethnicity
Other
dimensions
Civil Rights Act of 1964 and 1991
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HRM4 | CH8
18
Impact of Diversity on Organizations
Diversity and
social change
LO 3
Diversity and
competitiveness
Diversity and
conflict
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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.
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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
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HRM4 | CH8
21
LO 4
Individual Strategies for Dealing with Diversity
Understanding nature and meaning of diversity
Empathy
Tolerance
Communication
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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
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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
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HRM4 | CH8
24
Figure 8.5
LO 4
The Multicultural Organization
© Cengage Learning®
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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
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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
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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
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HRM4 | CH8
28
KEY TERMS
•
•
•
•
•
•
•
•
•
•
Diversity
Diversity management
Diversity training
Equal employment opportunity
Ethnicity
Glass ceiling
Knowledge workers
Multicultural organization
Organizational learning
Organizational memory
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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
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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
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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)
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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.
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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.
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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.
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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
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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
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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
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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
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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.
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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.
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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
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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.
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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
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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
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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
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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.
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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
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HRM4 | CH2
18
ILLINOIS INSTITUTE OF TECHNOLOGY
STRONG MESSAGE TO FACULTY AND STAFF ABOUT
THE IIT’s PRESIDENT’s ABOUT ANNUAL TRAINING
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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?
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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
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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;
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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
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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.
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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
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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
•
•
•
•
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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)
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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
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HRM4 | CH2
31
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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
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HRM4 | CH2
34
FLSA KEY POINTS
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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
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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.
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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
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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
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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.
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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
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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
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45
CHAPTER 2 Closing Case
• Welcome Cari
• How did she do?
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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?
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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.
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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.
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HRM4 | CH3
1
3
The Global
Environment
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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
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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
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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
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5
Figure 3.2
LO 2
Global Issues in International Human
Resource Management
© Cengage Learning®
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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
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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
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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
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9
Figure 3.3
LO 2
Political and Legal Issues of
International Business
ON EXAM!
© Cengage Learning®
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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
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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)
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12
Figure 3.4
LO 3
Fundamental Management Challenges
in International Business
© Cengage Learning®
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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
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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!
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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
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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
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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
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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
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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
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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
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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
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Closing Case CHAPTER 3
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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)
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OPENING CASE: CHAPTER 4
• Tomas Podcast
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HRM4 | CH3
25
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HRM4 | CH3
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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
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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
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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
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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
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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
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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
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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
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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
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Contemporary Challenges in HR
• Chapter 4:
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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
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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
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Business Strategy
LO 2
• Adaptation model: Business seeks ways to
adapt to its environment
• Strategic alternatives include:
- Defender strategy
- Prospector strategy
- Analyzer strategy
- Reactor
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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
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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
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HRM4 | CH3
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Figure 4.3
LO 3
Human Resource Strategies
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HRM4 | CH3
41
Basic Components of HR Strategy
Organization
design
LO 3
Corporate culture
Unionization
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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
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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
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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
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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
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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
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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
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HRM4 | CH3
48
Table 4.1
LO 5
Human Resource Management
Practices That May Lead to Improved
Firm Performance
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