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HR in organization HRM--concerns the personnel policies and managerial practices and systems that influence the workforce. Regardless of size, activities involved in HRM are pervasive throughout the org. Line managers will spend more than 50% of their time involved in HR activities: hiring, evaluating, disciplining, and scheduling employees. Effectiveness which line mgmt performs HRM functions with the tools, data, and processes provided by HRM specialists is key to competitive advantage through HRM. Spina: HRM focus should always be maintaining and, ideally, expanding the customer base while maintaining and, ideally, maximizing profit. HRM has a whole lot to do with this focus regardless of the size of the business, or the products or services you are trying to sell. HR Domains Organization Design Staffing Performance Mgmt and Appraisal Employee Training and Organization Development Reward Systems, Benefits, and Compliance
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Workforce American workers are more ethnically diverse, more educated, more cynical toward work and org, getting older, and becoming less prepared to handle the challenges of work today. It is estimate that by 2010 only 15% of the US workforce will be native born white males. Greater proportion of women and minorities have entered the workforce and are beginning to move into previously white, male-dominated positions, including managers, lawyers, accountants, medical doctors, and professors. Nearly 90% of growth in US workforce from 1995 to 2005 came from women, immigrants, AA, Hispanics, Asian origins. More dual career couples. Typical US worker in the past was a male, often white, who was a member of a single earner household. --Fewer than 20% of today's employees. Foreign born population from 9.6m in 1970 to 30m in 2005 reflects the very high rate of international migration. Retirement of baby-boomers generation, 1946-1964, expected to create a smaller workforce and decrease economic output. Larger # of workers over the age of 40, age discrimination litigation increase--acquire more family life responsibilities. Implement programs on diversity, more flexible work schedules, better training programs, child and elder care arrangements, career development strategies. 16 Customer Value and Corporate Social Responsibility (CSR) Many customers seek out products and services at least to some extent as a function of the reputation of the organization selling the product or service in matters not directly related to the cost or quality of the particular product or service. Olympics--the basic sense of American pride and excellence that goes with the Olympics tends to rub off onto the company. Customer value is affected by this connection. Reputation of companies' environmental policies affects the decision making of some consumers as well as the use of child labor or pitiful labor conditions in international facilities. Some companies believe that their perceived corporate social and environmental responsibility figures into the complicated calculated calculation of value. Evidence that companies are under increasing pressure to behave in a socially responsible manner. Debate over the extent to which a positive image of CSP is related to corporate financial performance. Org's CSP reputation regarding issues such as corporate ethics or CRS, pro-family policies, or affirmative action/diversity practices can go into the customer value assessment. 24 Ways to work with other companies Foreign direct investment (FDI): org directly owns part of or an entire business in a foreign market. Often, FDI follows a period where org learn about and understand a particular market or region using one of the lower-risk entry alternatives, such as exporting. FDI involves greater risk, also increased managerial and operational control, greater profitability if the venture is successful. FDI identify an appropriate org with which to partner. Such an alliance allows an org to make direct investment very gradually while sharing its risk with a knowledgeable, experienced other party. Sometimes, partners enter into joint venture which involve creating a new, separate company that is owned jointly by the venture partners. Joint venture partners can be privately owned companies, govt agencies, or govt owned companies. Disadvantage to joint ventures--potential for conflict between the partners. This potential is increased considerably when each partner owns 50% of the venture.
Common areas of conflict include future investments and sharing of future profits. Joints ventures with local govt create challenges particularly when the govt's motives and priorities are considerably different from those of its business partners. Strategic alliance--when companies agree to partner with one another, but do not set up a separate entity. Set up betw an org and its suppliers, its customers, and its competitors. Strategic alliance shares most of the same advantages as joint ventures. Strategic alliance permit org to share risk and expenses, particularly related to research and new product development, enable each partner to tap into strengths of the other. Disadvantages tend to create a future competitor. Orgs are advised to protect their core competencies from the other, which may mean that trust and communication become problematic. Sole Ownership--high risk of operations in foreign countries in order to ensure that they have full decision-making authority and operational control. Outsourcing Recent trend toward businesses creating offshore professional and operations centers, either as a form of sole ownership or as a strategic alliance, these centers involve the exporting of the work itself to places on the globe in order to obtain competitive advantage by leveraging combinations of such factors as workforce skills, cultural similarities, costs, time, and govt policies, regardless of where work product is ultimately marketed. India: recipient of many U.S. technical and customer service jobs over the past several years. Comparatively well educated and speaks English. Cost of living much lower than in developed countries. World Bank survey--India's programmers were ranked 1st out of 8 countries. Competent workers at advantageous costs, organizations also are benefiting from time advantages, by increasingly using international teams of skilled programmers in US---24hours (here then there) Permits around the clock product development, troubleshooting to be done, a huge benefit in industries in which competitive advantage is influenced by first-to-market capability. Customers services representatives--US biography Lower labor costs for American companies, greater profits. When companies engage in exporting, licensing, or contract manufacturing, the major challenges may be primarily related to operations, marketing, and legal issues. HR issues may be affected only on a secondary issues. HR challenge increases as the degree of an organization's international involvement increases. Sole ownership of foreign subsidiaries presents the highest level of HR involvement and challenge. HR challenge is affected by such things as the degree of cultural similarity among a firm's business holdings and degree of internationalization of a firm. 26 International Business Org with FDI tend to choose among 3 general international strategies. 1. Multilocal strategy: a business is managed as a collection of relatively independent operating organizations, each of which is focused on particular domestic market. --tends to be very decentralized: Each division is free to customize its own products, create its own products, create its own advertising and promotion campaigns, and utilize whatever production techniques best serve the customers. HR practices also tend to be decentralized and are focused on the policies and practices that fit best with the particular situation. 2. Export: tend to view the world as a single marketplace and strives to create standardized goods or services that will meet the needs of customers everywhere. tends to be antithesis of the multilocal business. While multilocal companies believe that consumers are basically the same worldwide. --seek economies of scale by concentrating production in a handful of highly productive theories. 3. Global approach: tries to combine the benefits of an export orientation and multilocal org. These businesses try to achieve global scale efficiencies, while remaining locally responsive to their customers. HR perspective, these types of companies will tend to contain a mix of policies and programs that are applied uniformly, with many that are locally created, modified, and managed b/c of their ability to attract, retain, and motivate qualified workers in a particular setting. What Influences the type of international strategy a firm will choose? 1. issues in a country's general environment make a difference. general environment tends to affect all org in a similar way. Country's economic, legal, politics, sociocultural systems plus diversity in language and religious beliefs. 2. company's task environment, typically those forces that are directly related to the industry w/in which a firm operates. Cost pressures, intensity of competitive rivalry, ease with which org may enter or leave the industry, the degree of power over the company maintained by suppliers and customers. 25
Multilocal industries: competition in each country, is essentially independent of the competition in other regions. Business policies and practices can be as centralized or decentralized as mgmt prefers. Global industry: which a firm's competitive position in one country is significantly affected by its position in other countries. require high integration among units in order to leverage gains and to achieve overall competitive advantage. Difficult to operate in a decentralized fashion in a global industry b/c of high need for coordination. HR professionals in these orgs must find the appropriate balance betw global competitiveness and local responsiveness. 3. internal strengths or weaknesses of the organization, including org's culture, the expertise of its mgmt staff, the sophiscation of its info systems, ability to detect and respond to consumer trends. Critical assets that add value w/in firm
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Title VII of the Civil Rights Act of 1964 it is illegal to discriminate in any aspect of employment, including: Hiring, firing Compensation, assignmenet, classification of employees Transfer, promotion, layoff, or recall Job advertisements Recruitment Testing Use of company facilities Training and apprenticeship programs Fringe benefits Pay, retirement plans, disability leave Other terms and conditions of employment
Discriminatory practices under these laws also include: Harassment on the basis of race, color, religion, sex, national origin, disability, or age. Employers are required to post notices to all employees advising them or their rights under the laws EEOC enforces and their right to be free from retaliation. Such notices must be accessible, as needed, to persons with visual or other disabilities that affect reading. A rule requiring that employees speak only English on the job may violate Title 7 unless an employer shows that the requirement is necessary for conducting business. If the employer believes such a rule is necessary, employee must be informed when English is required and the consequences of violating the rule. Religious: employer required to reasonably accommodate the religious belief of an employee or prospective employee, unless doing so would impose an undue hardship. Sexual harassment: practices ranging from direct requests for sexual favors to workplace conditions that create a hostile environment for persons of either gender, including same sex harassment. The hostile environment standard also applies to harassment on the bases of race, color, national origin, religion, age, disability. Pregnancy based discrimination--pregnancy, childbirth, and relate medical conditions must be treated in the same way as other temporary illnesses or conditions. 46 General: legal environment / Discrimination What legal steps are followed in a single Title VII case? Plaintiff retains the burden of proof a model is used such that the burden of producing evidence shifts from plaintiff to defendant and back to the plaintiff. Initially, plaintiff has the burden to show that a prima facie case of discrimination exists. Prima facie- presumed to be true until proven otherwise The plaintiff must show that there is a high likelihood that a violation of EEO law has occurred. After plaintiff produces sufficient evidence to establish a prima facie case, the burden of producing evidence shifts to the employer or defendant, who must provide some proof of legitimate, nondiscrimination reason for the employment decision. Finally, the burden of producing evidence shifts back to the plaintiff to either show that an alternative practice, less discriminatory in its effect, would achieve the employer's purpose equally well. Title 7 can be brought under either 2 theories:
disparate treatment: plaintiffs can demonstrate a prima facie case by showing disparate treatment, the most frequently used theory. SC established that the burden is on the plaintiff to prove that the employer intended to discriminate b/c race, sex, color, religion, national origin. One special form of disparate treatment: retaliation, employers cannot retaliate against employees who file EEO charges or parties who testify on behalf on plaintiffs in such cases. disparate impact: according to 1971 Griggs v. Duke Power case, plaintiffs can show that an employer's practices had a disparate impact on members of a protected group by showing that the employment procedures, had a disproportionately negative effect on members of a protected group. Impact cases are often established as class action cases in which a judge can certify a class of ppl who make similar claims against a company. Whether or not the employer had good intentions or didn't mean to discriminate is irrelevant to the courts in this type of lawsuit. After the plaintiff shows evidence of adverse or disparate impact, the employer must carry the burden of producing evidence of business necessity and job relatedness for the employment practice. Finally, the burden shifts back to the plaintiff, who must then show that an alternative procedure is available that is equal to or better than the employer's practice and has less adverse impact. HRM specialists are very much involved in this important area. The concept of job relatedness as defined in Griggs is very similar to concept of validity developed by industrial psychologists. 49 Job Relatedness Griggs v. Duke power and Albermarle Paper co. v. Moody: emphasized importance of demonstrating job relatedness of employee selection systems. Job analysis may be necessary to establish job relatedness. Griggs v. Duke Power: SC struck down the use of an employment test and a high school education requirement for entrylevel personnel selection. --practices were judged to be discriminatory b/c they exclude a disproportionate # of blacks from employment, b/c employer could not show that the hiring requirements were job related or related to performance on the job. If employment practice cannot be shown to be related to job performance, and that practice operates to exclude a disproportionate # of protected class members, then practice is prohibited. Evidence of a significant correlation betw test scores and job performance is considered ideal to support such studies routinely to evaluate use the of a test or selection procedure. HRM specialists conduct such studies routinely to evaluate the use of a test or selection procedure. What if a study shows that test being challenged has validity for the same or similar jobs? So a company is sued based on the disparate impact theory and must establish the job relatedness of the test. The company does not have enough data to conduct an internal study. Could company borrow a validity study based on data collected in several other org? Validity generalization: there are now many such studies based on the correct assumption that the mean of several correlational studies is probably stronger basis for concluding that there is a valid relationship between test scores and job performance. VG study present sufficient detail on the individual studies that led to the inference that the test was valid. Even with VG evidence, however, it is unclear whether the exclusive use of borrowed validity in the form of a VG study will meet the job relatedness burden for organizations. 50 Sexual Harassment What constitutes sexual harassment under Title VII? Sexual harassment is illegal since it constitutes discrimination with respect to a person's conditions of employment. These conditions can refer to psychological and emotional workplace conditions that are coercive or insulting to an individual. EEOC has published guidelines for employers dealing with sexual harassment issues. Sexual harassment: Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when 1) submission to such conduct is made either explicitly or implicitly to a term or condition of an individual's employment 2) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual 3) such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive working environment.
However, harassment of an employee b/c of sexual orientation does not constitute illegal harassment under Title VII (it probably does under applicable state or local laws prohibiting discrimination base on sexual orientation. 1986, Meritor Savings v. Vinson stated that it was not necessary for the plaintiff to establish a casual relationship or quid pro quo betw the rejection of sexual advances and specific personnel action such as a dismissal or a layoff. Rather, it was only necessary for the plaintiff to establish that the harassment created unfavorable or hostile working conditions for him or her. Any workplace conduct that is sufficiently severe or pervasive to alter the conditions of employment and create an abusive working environment constitutes illegal sexual harassment. Research on the judicial outcomes of sexual harassment claims identified the following correlates of favorable legal outcomes for the claimant: 1. when the harassment involved physical contact of a sexual nature. 2. when sexual propositions were linked to threats or promises of a change in the conditions of employment 3. when the claimant notified mgmt of the problem before filing charges 4. when the claims are corroborated 5. when org had no formal policy toward sexual harassment that had been communicated to its employee. Civil Rights Act of 1991 provides for compensatory and punitive damages of up to $300,000 for companies with over 500 employees. That's $300,000 per complaint. The price tag for sexual harassment can be even much higher under state laws that have no ceilings on compensatory or punitive damages. 55 Age Discrimination in Employment Act of 1967, Amended in 1978 and 1986 Law applies to workers over the age of 39. ADEA applies to employers with 20 or more employees, unions of 25 or more members, employment agencies, federal, state, local govt. What is required to establish prima facie evidence of age discrimination? 1. employee is a member of the protected age group 40 or older 2. employee has the ability to perform satisfactorily at some absolute or relative level 3. employee was not hired, promoted, or compensated or was discharged, laid off, or maintained by a younger person 4. the position filled or maintained by a younger person (just younger, not necessarily under 40) Biggest challenge for the plaintiff, is usually the one where the plaintiff falls short in establishing a prima facie case due to the usual subjectivity in comparing individuals. Defendant can rebut all claims based on data or critiques of the plaintiffs' evidence. Once prima facie case has been established base on the evidence presented by the plaintiff, the defendant must then present evidence that reasonable factors other than age were the basis of the personnel decisions. Appearing to be untruthful or incomplete in communications could be costly for employees. MASTIE V. GREAT LAKE STEEL CORP. Employer maintained that Mr. Mastie had been discharged in reduction in force efforts b/c of his poorer performance relative to other employees. Mastie presented personnel records reflecting an exemplary performance record and a history of merit-based salary increases. However, court found for the employer and said that controlling issue should be whether age was a determinative factor in the personnel decision. Several other courts have established that it is not the role of the court to second guess employers in their personnel decisions--that is, did they really discharge the poorest performer or hire the very best person? A critical question in ADEA litigation is whether age was a determinative factor in a personnel decision. It is the plaintiff's responsibility to establish this as fact, which makes it difficult for plaintiffs to win such cases. Can Employers Claim Age as a Bona Fide Occupation Qualification (BFOQ)? Greyhound Bus Lines survived a court challenge to their rule that they would accept no applicants over 40 years of age to drive their buses. The company successfully contended that age was a bona fide occupational qualification, since it was related to the safe conduct of the busline. In general, if public safety is relevant and the employee must be in good physical condition, the courts have supported the use of age requirements, both in terms of entry level positions and more commonly, mandatory retirement for certain jobs. Congress specifically exempted public safety personnel, allowing mandatory retirement for police officers and firefighters (usually 55 years of age). Courts have generally recognized age ceilings as legal BFOQs, but only when the employer can demonstrate: 1. physical fitness, and esp good aerobic fitness, it is imp to the job 2. employer applies the same physical fitness standards to employee under 40 as well as to older employees. EEOC provides the following rules
1. 2. 3. 56-57
age limit is reasonably necessary for the business all or almost all individual over the age are unable to perform adequately, or some ppl over the age have a disqualifying characteristic that cannot be determined independent of age.
Americans with Disabilities Act of 1990 ADA provides that qualified individuals with disabilities may not discriminated against by a private sector org or a dept or agency of a state or local govt employing 15 or more employees, if the individual can perform the essential functions of the job w/ or w/o reasonable accommodation. Disability person who: 1. has a physical or mental impairment that substantially limits one or more major life activities. 2. has a record of such a impairment 3. is regarded as having such an impairment EEOC Policy Guidance on Reasonable Accommodation Under ADA suggests 1. Look at the particular job involved; determine its purpose and its essential functions 2. consult with the individual with the disability to identify potential accommodations 3. If several accommodations are available, preference should be given to the individual's preferences. Public facilites must be made accessible to the disable unless hardship would occur for the business. What is Legal and Illegal under ADA? the guiding principle is that while employers may ask applicants about the ability to perform job functions, employers may not ask about disability. Lawful: can you perform the functions of this job with or without reasonable accommodation? Test for drugs. Unlawful: have you ever filed for worker's compensation? What prescription drugs do you take? Have you ever been treated for mental illness? About the existence, nature, or severity of the disability. May offer and applicant requests accommodation, the employer may require documentation of the individual's need for and entitlement to, reasonable accommodations. 70 4 questions KASOCs Knowledges, abilities, and other characteristics Necessary to perform the tasks must be identified. KASOCs aka compentencies = compentency modeling.
Knowledge organized body of info, usually of a factual or procedural nature applied directly to the performance of a function. Ability--demonstrated competence to perform an observable behavior or behavior that results in an observable product. (vigilancepolice officer, NFL quarterback-quickness) Skills--competence to perform a learned, psychomotor act, and may include a manual, verbal, or mental manipulation of data, ppl or things. The person must demonstrate an acceptable level of driving or skill in operating and maintaining weapon. Other personal characteristics include personalities, attitudes or physical or mental competencies needed to perform the job. Products of competencies or KASOCs are typically easy to obsere and serve as the basic units of observable for analysis. What are the major goals for work analysis? 1. should be the description of observables 2. describe work behavior independent of the personal characteristics of particular ppl who perform the job Performance appraisal: used to describe how well individuals perform their jobs. Actual performance appraisal instrument may have been developed from work analysis and should be linked to the job descriptions. 3. Work analysis data must be verified and reliable. Org must maintain records of data. Work Analysis What are the major work analysis products? Job description: information on job duties, tasks, activities, behaviors and responsibilities. ID of critical internal and external customers, equipment to be used on the job, working conditions, relationships with co-workers and the extent of supervision required. Responsible for the design and administration of employee compensation programs. Ensures proper consideration of the relationship of salary to performance of each employee and provides consultation on salary administration to managers and supervisors. 72-73
Job specifications consist of the KASOCs needed to carry out the job tasks and duties. Specific educational requirements. Required knowledge skills and abilities 88 Critical Incident Technique (CIT) Qualitative approach for obtaining specific, behaviorally focused descriptions of work or other activities. Technique originally was developed as a training needs assessment and performance appraisal tool. 4 Characteristics: 1. specific 2. observable behaviors that have been exhibited on the job 3. describe the context in which the behavior occurred 4. indicate the consequences, outcomes or products of the behavior Must also be sufficiently detailed so that knowledgeable ppl will picture the same incident as it was experienced by the individual. A critical incident report references actual behavior in a specific situation with no mention of traits or judgmental inferences. Example of well written Critical incident: I observed an employee looking thru the scrap tub. Shortly later, she came to me stating that someone had thrown a large piece of cast iron piston into the scrap tub. We salvaged this piston and, a short time later, used this piece to make a pulley for a very urgently needed job. One major purpose of the use of CIT is to develop performance appraisal systems. CIT--excellent approach for the development of customer satisfaction instruments. Provide examples of effective and ineffective customer service that are used to develop a standardized customer service evaluation instrument. 101,102 HRPlanning HRPlanning and recruitment have an HR competitive advantage. Recruitment should flow directly from HRPlanning. Effective HRP closes the gap from the current situation to a desired state of affairs in the context of org's strategy. 1. environmental scanning: identify and anticipate sources of threats and oppts, scanning the external environment (competitors, regulation) and internal environmental (strategy, technology, culture). 2. Labor demand forecasts: project how business needs will affect HR needs, using qualitative methods (Delphi, nominal) and quantitative methods (trend analysis, simple, and multiple linear regression analysis). 3. Labor supply forecast: project resource availability from internal and external sources. 4. Gap analysis: reconcile the forecast of labor supply and demand 5. action programming: implement the recommended solution from step 4 6. Evaluation: monitor the effects of the HRP by defining and measuring critical criteria (turnover costs, breakeven costs of new hires, recruitment costs, performance outcomes) Qualitative Methods: Delphi technique: minimize interpersonal and jurisdictional conflicts. Avoids face to face group discussion by the use of an intermediary. Experts take turns at presenting a forecast statement and assumptions. revisions Intermediary pools together and summarizes the judgments and gives to experts The process is continued until a consensus forecast emerges or until the intermediary concludes that more than one perspective must be presented. --tend to produce better one year forecasts, but there can be difficulties in reaching consensus on complex problems. --considerable time Nominal group technique: similar to Delphi--experts join at conference table and independently list their ideas in writing. Then share their ideas with the group in turn. As ideas are presented, a master list of the ideas is compiled so that everyone can refer back to them. Ideas are discussed and ranked by member vote. Quantitative methods: Trend analysis incorporates certain business factors and productivity ratio. 1. find the appropriate business factor that relates to size of workforce plot the historical record of the factor in relation to size of workforce. Compute the productivity ratio (average output per worker per year) Determine the trend Make necessary adjustments in the trend, past and future. Project to the target year.
109 116 3 Essential Steps for Recruitment Planning work analysis 2. time lapse data 3. yield ratio Reflects the # of candidates available at a step compared to a previous step. Example: Recruiting Recruitment Internal Advantages Better assessment of candidates Reduces training time Faster, Cheaper Motivates employees increases diversity Facilitates growth Can save training time New/novel problem solving Disadvantages creates vacancies stifles diversity insufficient supply of candidates expensive slower less reliable data stifles upward movement of personnel
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External
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What methods are available for external recruiting? Walk-ins/Unsolicited Applicant Files Referrals Advertising Employment Agencies Search firms Campus visit Electronic recruiting on the Internet
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Zimpfer v. Palm Beach County
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Joseph Garcia v. Hooters Cameron v. LaVeille Maison