1. HRM – Proficiencies , Ethics & Legislative Environment
Tehzeeb Sakina Amir
HRM-session 3
Spring 2011-MBA

2. HR Manager’s Proficiencies
HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies
Managing within the Law
Managing Ethics

3. HRM- Managing Ethics Ethics – standards of conduct/behavior.
Involves morality
Organizations with codes of ethics & corporate governance e.g. fake financial reporting
Codes are from top to bottom
Workplace safety, security of employee records, employee theft, privacy rights etc.

4. Labor Laws Pakistan
Labor legislation is the responsibility of both Federal and Provincial governments
Total labor force in Pakistan
37.15 million people
47% agriculture sector
10.5 % in manufacturing
42.5% in various other professions
(source: labourunity.org)

5. Labor Laws Pakistan - articles
Article 11 of the constitution prohibits child labor, forced labor and slavery
Article 17 right to exercise freedom of association and unions
Article 18 right to enter any lawful profession, occupation, business
Article 25 prohibits discrimination on basis of gender
Article 37 (e) provision for just and humane work conditions
Laws of hiring & firing
Laws of working hours (7hrs/day. 42 hrs/week – factories act)
Leaves paid
Child labor (below 14 years)
Strikes and Lock-outs

6. Laws related to wages Minimum wages
Wages must be paid without any discrimination
Exempted workers like executives, professionals, small farm employees, fishermen, etc
Overtime laws – 1 or 1.5 of workers’ normal rate of pay or ‘hourly wage’
Certain employment related activities are not compensable
Waiting time
On-call time
Rest and meal breaks
Training programs, lectures, meetings etc

7. Laws related to safety, health…
Factories are approved, licensed and registered under Factories Act
Appointment of welfare and safety officer at the factory site (# of work force)
Factory workers are protected yet under some conditions there are obligations also to abide by the rules of safety, health & welfare… non complying get punished

8. Laws related to social security
Workmen Compensation Act
Employers pay compensation to workers affected by injury, partial or total disablement.
‘out of’ or ‘in course of’ employment
Insurance Act (medical benefits)
Financial relief in cases of sickness, maternity, disablement, funeral, general medical benefits to workers and their dependents
Employers & employees contribute in the scheme
Benefits are paid in cash

9. Laws related to social security
Provident Fund Act
Contributions from employer and employees
Provides security to employee at the time of need
Gratuity Act
Relief to employee

10. Laws related to social security
Handling sexual harassment
No legislation but NGOs & civil society have worked and formed some norms
Employers are bound to take actions against those who have found to be guilty
Complaint mechanism – committee, counselor, support services
Confidentiality must be ensured
Government or NGO representative & women role in committee

11. Equal Opportunity Employment
Discrimination on the basis of race, colour, religion, sex or national origin
Article 38 aims at achieving equality
Equal Pay Act – no gender discrimination
Age discrimination Act (40+)
Vocational Rehabilitation Act
Pregnancy Discrimination Act

12. Equal Opportunity Employment
Civil Rights Act puts more responsibility on EMPLOYERS
Burden of proof – proof that discrimination is business necessity or some kind of proof which negates the charges
Money damages
Compensation damages
Mixed motives (low performance output)

13. Defenses against discrimination
Adverse Impact – The overall impact of employer practices that result in significantly higher percentage of members of protected group being rejected for employment, placement or promotion.
Disparate treatment – intentional discrimination
Disparate impact – neutral employment policy creating an adverse impact. (college degree requirement). Not intentional.

14. Defenses against discrimination
Adverse Impact can be shown through:
Disparate rejection rates – (4/5th rule or 80%) – discrepancy between rates of rejection of protected group members & others
Restricted policy (which is obvious)
Population comparison (organization and market comparison)
Mc-Donnell-Douglas Test used for intentional discrimination – four rules:
Person belongs to protected group
He applied and is qualified
Despite being qualified, he is rejected
After rejection, the position remained vacant, open and employer seeking applications

15. Bona Fide Occupational Qualification
BFOQ - requirement that an employee be of a certain religion, gender, age or national origin which is necessary for organization’s functioning
Business Necessity
proof that there is an overriding business purpose for the discriminatory practice and should therefore be acceptable

16. Some common discriminatory practices
Recruitment
Word of mouth
Misleading information
Help wanted ads
Selection standards
Educational requirements
Tests
Preference to blood relations
Height, weight and physical characteristics
Criminal records
Application forms

17. Some discriminatory practices
Existing employees
Promotions
Transfers
Layoffs
Personal appearance
Dress
Hair/beard
Uniforms

18. EEOC enforcement EEOC enforcement process Voluntary mediation
File charge
Charge acceptance
Serve notice
Investigate fact finding conference
Cause/no cause
Conciliation
Notice to Sue
Voluntary mediation
an informal process where a neutral third party assists the opposing parties to reach a negotiated resolution of a charge of discrimination

19. Management Guidelines
During the EEOC investigation
Three principles
Demonstrate lack of merit
Limit the information supplied
Get as much information as possible about the claim
Meet with employee
EEOC authority – diplomatic and careful
Submitting documents
Position statement

20. Management Guidelines
During the Fact-Finding Conference
The Records
Attorney
Information
Witnesses
During the EEOC Determination
Review carefully
Conciliate prudently

21. Handling discrimination charges
Good intentions are no excuse!!
Can not hide behind collective bargaining
Agreement may be the best option…

22. Measuring HRM
Metrics – a set of quantitative performance measures HR managers use to assess their performance
Absence rate
Cost per hire (ad cost (etc)/No. of hires)
HR expense factor (HR expense/total operating expense)
Time to fill
Turnover rate (# of separations during month/avg no. of employeesx100)

23. Measuring HRM Managing with HR Scorecard Process
It is a concise measurement system
Link metrics used to measure HR activities and emerging employee behaviors and finally linking these to organization’s outcomes
More meaningful picture!