Human Resource Management Exploring Management Chapter 10 Human Resource Management

Chapter 10 What are the purpose and legal context of human resource management? What are the essential human resource management practices? What are some of the current issues in human resource management? Human resource management is not just for human resource managers. Managers, supervisors and all employees benefit from understanding HR.

10.1 HRM Purpose and Legal Context Human resource management attracts, develops, and maintains a talented workforce Strategic human resource management aligns human capital with organizational strategies Government legislation is supposed to protect workers against employment discrimination Laws can’t guarantee that employment discrimination will never happen Good HR policies and skills are essential. HRM is one of the areas where being proactive is necessary.

HRM Purpose and Legal Context Maintaining a Talented Workforce Major responsibilities of Human Resource Management (HRM) include: Attracting a quality workforce Developing a quality workforce Maintaining a quality workforce There should be as much emphasis on keeping good employees as there is in finding them. Recruiting is very expensive.

HRM Purpose and Legal Context Strategic HR Strategic human resource management aligns human capital with organizational strategies. Human capital skills, knowledge, innovation, creativity, energy and commitment to offer to the organization. HR professionals are increasingly involved in top management and organizational strategic planning.

HRM Purpose and Legal Context Discrimination Laws Job discrimination Employment decisions made for reasons that are not relevant to the job Equal employment opportunity (EEO) The right to employment without regard to race, religion, color, national origin, gender Title VII of the Civil Rights Act of 1964 is an important law that guarantees equal employment opportunity Discrimination not only hurts workers, it hurts organizations. It makes sense to hire and promote the best person for the job regardless of race, color, gender, religion…

HRM Purpose and Legal Context Discrimination Laws Affirmative Action Effort to give employment preference to women and minority group members Affirmative Action plans Attempt to ensure that percentage of minorities within the organization are a similar proportion to the labor market availability Reverse discrimination Claims of discrimination by majority populations Affirmative action has been the subject of much controversy since its inception. The basic principle behind it is that organizations should make every effort to have a workforce that resembles the community if possible.

HRM Purpose and Legal Context Discrimination Laws Bona fide occupational qualifications Criteria for employment is justified for ability to perform a job May seem discriminatory Example – female locker room attendant Bona fide occupational qualifications are exceptions to equal employment law because of a business necessity. They are rarely recognized as a defense against discrimination claims.

HRM Purpose and Legal Context Selected Discrimination Laws The Equal Pay Act of 1963 requires equal pay for women and men doing equal work. It describes equal work in terms of skills, responsibilities, and working conditions. The Age Discrimination in Employment Act of 1967 as amended in 1978 and 1986 protects workers against mandatory retirement ages. Age discrimination occurs when a qualified individual is adversely affected by a job action that replaces him or her with a younger worker. The Pregnancy Discrimination Act of 1978 protects female workers from discrimination because of pregnancy. A pregnant employee is protected against termination or adverse job action because of the pregnancy and is entitled to reasonable time off work. The Americans with Disabilities Act of 1990 as amended in 2008 prevents discrimination against people with disabilities. The law requires employment decisions be based on a person’s abilities and what he or she can do. The Family and Medical Leave Act of 1993 protects workers who take unpaid leaves for family matters from losing their jobs or employment status. Workers are allowed up to 12 weeks of leave for childbirth, adoption, personal illness, or illness of a family member. These are just a few of the laws protecting workers from discrimination. The basic principals behind them are fairness and equality.

HRM Purpose and Legal Context Employee Rights Workplace privacy Right to privacy on the job Technology creates issues with employer and employee rights: social media, e-mail, internet use Employers need to have well-thought-out privacy policies and communicate them clearly to employees. Employees need to refrain from non-essential internet use during work hours. Online privacy is not protected by law.

HRM Purpose and Legal Context Employee Rights Pay discrimination and comparable worth People with similar jobs should receive comparable pay Lillie Ledbetter Fair Pay Act Lengthened the time frame to file claims of pay discrimination Comparable worth is still a problem, especially for women. Lillie Ledbetter is pictured directly above President Obama. The act is one of the first he signed after becoming president in 2009.

HRM Purpose and Legal Context Employee Rights Pregnancy discrimination Penalizes women as applicants or employees for being pregnant Hiring Promotions Leaves Job assignments Pregnancy is treated very similar to a short term disability under the Americans with Disabilities Act.

HRM Purpose and Legal Context Employee Rights Age discrimination Penalizes employees 40 and over as applicants or employees Average age in the workforce is increasing and so are claims of discrimination Older workers are finding it harder to find work after a layoff than younger workers. Age discrimination claims are harder to prove than other forms of discrimination.

Recruitment attracts qualified job applicants 10.2 HRM Practices Recruitment attracts qualified job applicants Selection makes decisions to hire qualified job applicants Socialization and orientation integrate new employees into the organization Training continually develops employees skills and capabilities Performance management appraises and rewards accomplishments Retention and career development provide career paths Good hiring policies not only increase the chances that an employee will be productive, but it also decreases turnover, which is expensive.

HRM PRACTICES Recruiting Person-job fit Match of an individual’s skills, interests and abilities with the requirements of the job Person-organization fit Match of an individual’s values, interests and behavior with organization’s culture Effective recruitment and selection increase the chances that a large pool of qualified candidates will apply.

HRM PRACTICES Recruiting Recruitment Attracting a pool of qualified applicants to the organization Effective recruitment increases the chances that a large pool of qualified candidates will apply.

HRM PRACTICES Recruiting Realistic job preview Gives the candidate both the good and bad points of the job and organization Often highlight rewards and challenges of the position Many organizations offer realistic job previews. They can decrease turnover by creating realistic expectations of new hires in occupations such as telemarketing, healthcare and law enforcement.

HRM PRACTICES Selection Choosing applicants with the greatest potential from the pool Effective selection increase the chances that new hires will be qualified for the position and remain with the employer.

HRM PRACTICES Selecting Reliability Employment test or selection device provides consistent measurement of applicant skills, time after time. Validity Employment test or selection device is a good predictor of future job performance. It’s important to use reliable and valid screening to avoid discrimination.

HRM PRACTICES Selecting Assessment centers Evaluates applicant abilities by observing performance in simulated work activities Work sampling Actual work is graded by observers

HRM PRACTICES Socialization and Orientation Process of influencing the expectations, behavior and attitudes of new employees in a positive way Orientation Activities that familiarize new employees with the new job and the organization Socialization and orientation are also referred to as “onboarding”.

HRM PRACTICES Training Improves employee skills and capabilities Coaching Experienced employees provide advice and motivation Large organization with lots of resources usually have strong training programs. Training in small organizations is often very incomplete.

HRM PRACTICES Training Mentoring Experienced employees share expertise with newer employees Reverse mentoring Newer employees share expertise with experienced employees Technology Social media Some organizations have formal mentoring programs, but often it is a very informal process.

HRM PRACTICES Performance Management Performance Appraisal Process of assessing and providing feedback on employee work accomplishment Document performance Communicate performance Identify how to improve performance Most large organizations have formal performance management systems, but many small organizations have very limited systems for performance appraisal.

HRM PRACTICES Performance Management Graphic rating scale Checklist or score card for rating employee traits or performance characteristics Quality of work Quantity of work Attendance Punctuality Graphic rating scales should be combined with specific comments and an appraisal interview.

HRM PRACTICES Performance Management Behaviorally Anchored Rating Scale (BARS) Describes actual behaviors that indicate various levels of performance Behaviorally anchored rating scales have clear descriptions of specific performance under certain circumstances. They are time-consuming to create, but easy to use.

HRM PRACTICES Performance Management Critical incident technique Keeps an actual record of employee behavior in certain circumstances Multi-person comparison Employees are rated relative to other employees Multi person comparisons allow employers to actually rank employees.

HRM PRACTICES Performance Management 360 degree feedback Input from those who work with the employee Direct report employees Direct supervisor Peers Sometimes customers and vendors are also involved.

HRM PRACTICES Retention and Career Development Process of career growth and progress Career Planning Matching career goals and individual abilities with opportunities Career planning is the responsibility of the employee, although some organizations offer assistance.

Compensation plans influence employee recruitment and retention 10.3 Current Issues in HRM Today’s lifestyles increase demands for flexibility and work-life balance Organizations are using more independent contractors and part-time workers Compensation plans influence employee recruitment and retention Fringe benefits are an important part of employee compensation packages Labor relations and collective bargaining are closely governed by law HR needs to keep on top of constantly changing laws, benefit costs and trends, effective compensation plans and employee needs.

CURRENT ISSUES Work-life balance Balancing career demands with personal and family needs Many organizations have undergone massive layoffs, requiring more work from surviving employees. Balancing work and personal life become increasingly difficult with the increased work demands.

CURRENT ISSUES Employment Trends Independent contractors Hired with temporary contracts Not permanent employees Contingency workers Sometimes called permatemps Work regular or part-time hours on long term basis Organizations have been reluctant to hire permanent employees as the economy slowly recovers from the recession. Independent contractors and contingency workers are a couple of solutions to their needs.

CURRENT ISSUES Compensation Merit pay Pay increase for good job performance Bonus pay One-time payment for performance or accomplishments Again, increased motivation is the goal.

CURRENT ISSUES Compensation Profit sharing Distributes portion of profits to employees Gain sharing Distributes portion of cost savings to employees Stock options Right to purchase stock at a fixed price in the future Again, increased motivation is the goal.

CURRENT ISSUES Benefits Fringe benefits Non-monetary compensation Health insurance, retirement plans, paid time off Family friendly benefits Help employees balance work, personal and family life Flexible benefits Employees personalize benefits within a set allowance or dollar amount Employee assistance programs Help employees cope with personal stress and problems Benefits rank high in worker satisfaction, but the cost of many benefits, especially healthcare, are increasing.

Labor unions Labor contracts Deal with employers on worker’s behalf CURRENT ISSUES Labor Labor unions Deal with employers on worker’s behalf Labor contracts Agreement between employees and employer Wages Hours Benefits Working conditions Seniority Union membership as a whole has been decreasing for many years.

Collective bargaining CURRENT ISSUES Labor Collective bargaining Process that brings management and union representatives together for negotiating, administering and interpreting labor contracts Worker’s rights to join a union without fear of reprisal by employers was established by the National Labor Relations Act of 1935, also called the Wagner Act. Many labor laws regulate the tactics that are used by management and labor.