Principle of management essay

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Human Resources Management

Learning Objectives 1. Explain why strategic human resource management can help an organization gain a

competitive advantage.

2. Describe the steps managers take to recruit and select organizational members.

3. Discuss the training and development options that ensure organization members can effectively perform their jobs.

4. Explain why performance appraisal and feedback are such crucial activities, and list the choices managers must make in designing effective performance appraisal and feedback procedures.

5. Explain the issues managers face in determining levels of pay and benefits.

6. Understand the role that labor relations play in the effective management of human resources.

Human Resource Management We know from the resource-based view of strategy, to gain a competitive advantage, companies must acquire resources that are valuable, rare, and that

can’t be imitated or substituted.

That describes each of you perfectly!

Each employee is valuable and rare, and because we are all unique individuals, we cannot be perfectly imitated or substituted. So, if we can find them, great employees can

be a significant competitive advantage.

It is our job as managers to help them be the best employee they are capable of being

and keep them from wanting to leave.

Strategic Human Resource Management

Human resource management (HRM) o Activities that managers engage in to

attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals

The process of finding, developing, and keeping the right people to form a

qualified work force

Human Resource Management

The process of finding, developing, and keeping the

right people to form a qualified work force

• Ensuring that competent employees are identified and selected.

________ & _________: ________ & _________:

• Providing employees with up-to-date knowledge and skills to do their jobs.__________:__________:

• Ensuring that the organization retains competent and high-performing employees.

__________:__________:

Strategic Human Resource Management

• Strategic human resource management oThe process by which managers

design the components of an HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals

Human Resource Management Process

Environmental Factors Affecting HRM

• Organizations that represent workers and seek to protect their interests through collective bargaining.

Employee Labor Unions

• Limit managerial discretion in hiring, promoting, and discharging employees.

Governmental Laws and Regulations

• Global Workforce • Workplace Diversity (Generational, Aging, LGBTQ)

Demographic Trends

• US Department of Labor • Occupational Safety & Health AdministrationSafety

• Organizations that represent workers and seek to protect their interests through collective bargaining.

Employee Labor Unions

• Limit managerial discretion in hiring, promoting, and discharging employees.

Governmental Laws and Regulations

• Global Workforce • Workplace Diversity (Generational, Aging, LGBTQ)

Demographic Trends

• US Department of Labor • Occupational Safety & Health AdministrationSafety

Environmental Factors Affecting HRM

Equal Employment Opportunity Commission (EEOC)

https://www.eeoc.gov/eeoc/newsroom/release/

• Federal Agency responsible for enforcing federal laws pertaining to discrimination

• Applies to most organizations with 15 or more employees

• First stop when an employee believes their company has discriminated against them

• EEOC Process: oInvestigate the allegation oMake a finding (recommendation) oTry to settle out of court oFile a lawsuit on behalf of the employee/applicant

Federal Employment Laws Genetic

Information Nondiscrimination

Act

Equal Pay Act Title VII of the Civil Rights Act

Age Discrimination in Employment Act

Pregnancy Discrimination Act

Americans with Disabilities Act

Civil Rights Act Family and Medical Leave Act

Uniformed Services Employment and Reemployment

Rights Act

Occupational Safety and Health Act

(OSHA)

Federal Employment Laws Genetic

Information Nondiscrimination

Act

Equal Pay Act Title VII of the Civil

Rights Act Age Discrimination in Employment Act

Pregnancy Discrimination Act

Americans with Disabilities Act

Civil Rights Act Family and Medical Leave Act

Uniformed Services Employment and Reemployment

Rights Act

Occupational Safety and Health Act

(OSHA)

Federal Employment Laws Genetic

Information Nondiscrimination

Act

Equal Pay Act Title VII of the Civil Rights Act

Age Discrimination in Employment Act

Pregnancy Discrimination Act

Americans with Disabilities Act

Civil Rights Act Family and Medical Leave Act

Uniformed Services Employment and Reemployment

Rights Act

Occupational Safety and Health Act

(OSHA)

Protected Classes under EEO Laws

Race

Color

Religion

Sex National origin

(Ethnicity) National origin

(Ethnicity) Age (40+) (ADEA)

Disability (ADA)

Title VII of Civil Rights

Act

Civil Rights Act of 1964 Title VII - Equal Employment Opportunity • It shall be an unlawful employment practice for an employer:

1) to fail or refuse to hire or to discharge any individual …

2) to limit, segregate, or classify his employees or applicants for employment in any way which would adversely affect his status as an employee

• because of such individual’s race, color, religion, sex or national origin

Practices that can result in Discrimination • Recruiting • Selection • Promotions • Transfers • Layoffs • Training • Wages • Benefits

• Terminations • Work assignments • Working conditions • Apprenticeships • Performance

Appraisal

Two Forms of Discrimination under Title VII

• Intentional discrimination, when an employer treats an employee differently because of their protected status

Disparate Treatment

• Equal application of an employment standard that has an unequal effect on one or more in a protected class

Disparate (Adverse)

Impact

Two Forms of Discrimination under Title VII

• _____________ discrimination that occurs when people are purposely not given the same hiring, promotion or membership opportunities • Because of their race, color, sex, age, ethnic group, national

origin, or religious beliefs

___________ ___________

• ______________ discrimination that occurs when members of a protected class are unintentionally harmed or disadvantaged • A facially neutral requirement that causes substantial

underrepresentation of protected class members • Not necessarily illegal, but organization must show that it is

necessary and job-related • Four fifths (80 percent) rule: Used to determine if there has been

a case of adverse impact

___________ ___________

Griggs v. Duke Power Co. (1971) Context and Duke Power Company in the 1950s

• Public Utility (electric power) in North and South Carolina • Supplied electric power to federal government agencies, so subject to governmental employment laws • African Americans were only allowed to work in the Labor department (janitorial services, shoveling

coal, etc); these were the lowest-paying positions • Before Civil Rights Act of 1964: Black employees were categorically excluded from all but one of

Duke’s departments—the labor department, in which the highest paid employee earned less than the lowest paid employee in any other department. (disparate treatment)

• Employees needed a high school diploma and/or to pass a standardized test for higher paying jobs • 34% of white males completed high school; 12% of African Americans • 58% of whites passed the Duke Power Co standardized test; 6% of African Americans

Griggs (African American male) was denied a ditch digger job because he failed to meet the selection criteria above. Supreme Court unanimously found that the facially neutral employment criteria violated Title VII because:

• It had a disproportionate impact on Griggs’ protected group, and

Griggs v. Duke Power Co. (1971)

• African Americans were only allowed to work in the Labor department (janitorial services, shoveling coal, etc); these were the lowest-paying positions

Context and Duke Power Company in the 1950s • Public Utility (electric power) in North and South Carolina • Supplied electric power to federal government agencies, so subject to governmental

employment laws

• Before Title VII of Civil Rights Act of 1964: Black employees were categorically excluded from all but one of Duke’s departments—the labor department, in which the highest paid employee earned less than the lowest paid employee in any other department. (disparate treatment)

Griggs v. Duke Power Co. (1971) After Title VII of Civil Rights Act of 1964:

• Duke Power stopped expressly restricting African-Americans to the labor department and announced new standards for hiring, promotion, and transfers.

• To work outside of the Labor Department (i.e., higher paying jobs), employees needed a high school diploma and/or scores on a (new) standardized test equal to those of an average high school graduate

Context of the times (1965) • 34% of white males completed high school; 12% of African Americans • 58% of whites passed the Duke Power Co standardized test; 6% of African Americans

Griggs v. Duke Power Co. (1971)  Griggs (African American male) was denied a ditch digger job because he

failed to meet the selection criteria.  A number of black employees (plaintiffs) challenged the policy under

Title VII of the Civil Rights Act.  Both the district court and court of appeals held that Duke’s policies

reflected no discriminatory purpose and had been applied equally to black and white employees

 Supreme Court ruled against Duke Power, stating that the facially neutral employment criteria violated Title VII • It had a disproportionate impact on Griggs’ protected group, and • It was not job-related or consistent with business necessity (i.e., no relation to job-performance).

Tests used must measure any tests used must measure the person for the job and not the person in the abstract

Is a HS diploma necessary or job

related?

Griggs v. Duke Power Co. (1971)  Griggs (African American male) was denied a ditch digger job because he

failed to meet the selection criteria.  A number of black employees (plaintiffs) challenged the policy under

Title VII of the Civil Rights Act.  Both the district court and court of appeals held that Duke’s policies

reflected no discriminatory purpose and had been applied equally to black and white employees

Tests used must measure any tests used must measure the person for the job and not the person in the abstract

Is a HS diploma necessary or job

related?

Disparate Treatment vs Impact Example • “Women and minorities can’t be fire fighters” (Disparate

Treatment) • “You must have a high school diploma to be a firefighter.”

• This requirement had a disproportionately adverse (disparate) impact on black test takers (only 12% graduated HS)

• The test was not necessary or job-related.

• “We will implement a physical fitness test to screen and select applicants for entry-level fire fighter positions.” • (1) lift 150 pounds; (2) 50 sit-ups; (3) 50 push-ups; (4) a vertical jump; and (5)

a 1.5-mile run • Heading in the right direction; but still adversely impacts women. • 4/5ths rule: If 100 male applicants pass, then at least 80 women should pass

(unless necessary and job-related). Is it?

• Solution: We will implement a physical test where applicants (in full gear) must drag a “dummy” for 50-100 feet, and up a flight of stairs.

Are LGBTQ Individuals Protected??? Race

Color

Religion

Sex* National origin

(Ethnicity) National origin

(Ethnicity)

The EEOC interprets and enforces Title VII's prohibition of sex discrimination as forbidding any employment discrimination based on gender identity (transgender; 2012) or sexual orientation (2015).

The Department of Justice (Attorney General) recently (Oct 2017) reversed its previous (2014) stance. Now, it interprets Title VII's prohibition of sex discrimination as only applying to males and females.

Ethical Decision Making meets Business (and Personal) Values

You own/operate Masterpiece Cakeshop.

A woman walks in with her son and his fiancé to pick out a cake for their wedding reception.

When you realize that the cake you are asked to make is for two men, you: a. Refuse to make the cake b. Make the cake

What’s your decision based on (religious/deontological, socio-cultural, utilitarian, rights/justice, etc)

Federal Employment Laws Genetic

Information Nondiscrimination

Act

Equal Pay Act Title VII of the Civil Rights Act

Age Discrimination in Employment Act

Pregnancy Discrimination Act

Americans with Disabilities Act

Civil Rights Act Family and Medical Leave Act

Uniformed Services Employment and Reemployment

Rights Act

Occupational Safety and Health Act

(OSHA)

Equal Pay Act of 1963 No employer having employees subject to any provisions of this section shall discriminate, within any establishment in which such employees are employed, between employees on the basis of sex by paying wages to employees in such establishment at a rate less than the rate at which he pays wages to employees of the opposite sex in such establishment for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions

Equal Pay Act of 1963

Differences in pay may be allowed if based on: ◦ Seniority (ex: Teachers) ◦ Performance (ex: Salesman) ◦ Quality and/or quantity of production ◦ Factors other than sex

Equal Pay Act of 1963

Is it still an issue???

Federal Employment Laws Genetic

Information Nondiscrimination

Act

Equal Pay Act Title VII of the Civil Rights Act

Age Discrimination in Employment Act

Pregnancy Discrimination Act

Americans with Disabilities Act

Civil Rights Act Family and Medical Leave Act

Uniformed Services Employment and Reemployment

Rights Act

Occupational Safety and Health Act

(OSHA)

Age Discrimination in Employment Act of 1967 (ADEA)

• ADEA makes it unlawful to discriminate in the terms and conditions of employment on the basis of age o40 years old or older oDoes not protect against: oPoor performance oInability to perform assigned tasks oBeware of violating the ADEA with

“overqualified” job applicants

Age Discrimination in Employment Act of 1967 (ADEA)

Is it still an issue???

Federal Employment Laws Genetic

Information Nondiscrimination

Act

Equal Pay Act Title VII of the Civil

Rights Act Age Discrimination in Employment Act

Pregnancy Discrimination Act

Americans with Disabilities Act

Civil Rights Act Family and Medical Leave Act

Uniformed Services Employment and Reemployment

Rights Act

Occupational Safety and Health Act

(OSHA)

Americans with Disabilities Act

• Prohibits discrimination against qualified individuals with disabilities oA qualified individual is one who is able to perform the

___________ ___________ of a job with or without accommodation

oEmployers must make “___________ ___________” for qualified job applicants or employees with disabilities

• Employers are not required to lower work standards, tolerate misconduct, or give someone a make-work job

Who is Disabled?

• Has a physical or mental impairment which substantially limits one or more of an individual’s major life activities owalking, talking, seeing, hearing, or learning oIndividuals who can function normally with mitigating

measures (e.g., medication, but not eyeglasses) are now protected by the ADAAA (ADHD is protected)

• Has a record of such impairment • Is regarded as having such impairment

Reasonable Accommodation

• Reasonable Accommodation: oa modification or an adjustment to the work environment

that enables a qualified individual with a disability to perform the essential job functions

• An accommodation is not reasonable when it places an undue burden on the employer

Reasonable Accommodation

• Examples of Reasonable Accommodations: oEmployers may need to make existing facilities accessible; orestructure a job; oallow for a part-time or modified work schedule; oacquire or modify equipment; ochange tests, training materials or policies; oprovide qualified readers or interpreters; ooffer reassignment to a vacant position,

Undue Burden • An employer is required to make a reasonable

accommodation to the known disability of a qualified applicant or employee if it would not impose an "undue hardship" on the operation of the employer's business

• Undue burden: oCost of the accommodation oSize (number of employees) oNumber and type of facilities oComposition and structure of workforce oEssential job functions

Could I be a professor if I were (legally) blind?

• What are the essential functions of being a business professor?

• Could reasonable accommodations be made?

Could I be a professor if I were (legally) blind?

• What are the essential functions of being a business professor? oGrade Papers oUse a computer oPrepare course materials oDeliver Lectures oConduct research to keep abreast of current trends in business

• Could reasonable accommodations be made? oClassroom without a platform oReading/typing software oOnline and/or day courses (instead of evening courses)

ADA Examples

ADA Examples Is it still an issue???

Human Resource Management Process

oActivities that managers engage in to forecast their current and future needs for human resources

oThe process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks.

• Helps avoid sudden talent shortages and surpluses. • Steps in HR planning: oAssessing current human resources oAssessing future needs for human resources

Human Resource Planning

The Building Blocks of HR • Human Resource (Talent) Inventory oA review of the current make-up of the organization’s current

resources. • Job Analysis oAn assessment that defines a job and the behaviors necessary to

perform the job. - Job Description: A written statement that describes a job. - Job Specification: A written statement of the minimum qualifications that a person must

possess to perform a given job successfully.

The Building Blocks of HR

• Job oA collection of

related tasks, duties, and responsibilities.

• Job Analysis oThe job held by an

individual.

Job Descriptions Jobs Positions

Human Resource Planning

• Demand forecasts oEstimates the qualifications and numbers of employees the firm

will need given its goals and strategies • Supply forecasts oEstimates the availability and qualifications of current employees

now and in the future, as well as the supply of qualified workers in the external labor market

Human Resource Management Process

Recruitment and Selection • Recruitment oActivities that managers engage in to develop a pool of

candidates for open positions oLocating, identifying, and attracting capable applicants

to an organization • Decruitment oThe process of reducing a surplus of employees in the

workforce of an organization The process of finding, developing, and

keeping the right people to form a qualified work force

Recruitment and Selection

Major Sources of Potential Job Candidates

Recruitment and Selection

Decruitment Options

Recruitment and Selection

Selection ◦ The process that managers

use to determine the relative qualifications of job applicants and their potential for performing well in a particular job

Reliability and Validity Reliability ◦ The degree to which the tool or test measures the same thing each

time it is used

Validity ◦ The degree to which a tool or test measures what it purports to

measure

Reliability and Validity Reliability ◦ The degree to which the tool or test measures the same thing each

time it is used

Validity ◦ The degree to which a tool or test measures what it purports to

measure

Lifting 150 lbs to measure a firefighter’s ability to drag a body

out of a burning building

Interview Questions Should I refer to you as Mrs. or Miss?

When did you graduate from high school?

Are you pregnant, or do you intend to become pregnant?

Interviews gone wrong….

Human Resource Management Process

• Orientation – Education that introduces a new employee to

his or her job and the organization. • Work unit orientation • Organization orientation

• Employee Training – Types of training

• General or specific

– Training Methods

Training and Development

• Training oTeaching organizational members how to perform current jobs and

helping them to acquire the knowledge and skills they need to be effective performers

• Development oBuilding the knowledge and skills of organizational members so

they are prepared to take on new responsibilities and challenges

Human Resource Management Process

Performance Appraisal and Feedback (1 of 2) • Performance appraisal oThe evaluation of employees’ job

performance and contributions to their organization

oTraits, behaviors, results • Performance feedback oThe process through which managers share

performance appraisal information with subordinates, give subordinates an opportunity to reflect on their own performance, and develop— with subordinates—plans for the future

Figure 12.6 Who Appraises Performance?

Human Resource Management Process

• Pay Includes employees’ base salaries, pay raises, and bonuses oDetermined by characteristics of the organization and the job and

levels of performance oBenefits are based on membership in an organization

• Benefits oLegally required: Social Security, workers’ compensation,

unemployment insurance oVoluntary: Health insurance, retirement, day care oCafeteria-style benefits plans allow employees to choose the best

mix of benefits for them, but can be hard to manage

Pay and Benefits