Let’s review the key points made in the previous lessons we have studied:
Human Capital Management
In today’s work environment, a Human Resource Management (HRM) department should be more progressive, proactive and perform more functions than just managing personnel. HRM must become a strategic business partner within the company and with other departments. The way HRM departments’ measures the cause and effect relationship of their programs and policies on the success and failures of the company is called human capital management. More importantly, HR managers are required to be proficient in the legalities of the recruitment and selection processincluding the following:
· Title VII of the Civil Rights Act of 1964
· Civil Rights Act of 1991
· Equal Employment Opportunity Act of 1972 (EEO)
· Equal Employment Opportunity Commission (EEOC)
· Age Discrimination in Employment Act of 1967 (ADEA)
· Americans with Disabilities Act (ADA)
· Immigration and Control Act of 1986 (IRCA)
· Fair Labor Standards Act (FLSA)
Ethics
Ethics start at the top of the organization and filter down. Accordingly, the Chief Executive Officer (CEO) sets the standard and culture of the organization. It is the role of Human Resources to ensure that the company is ethical in every matter within their control. For example, if someone comes to Human Resources to suggest that an unethical practice is occurring, Human Resources needs to listen, follow through with an investigation, and ensure that there is no retaliation against the employee for reporting the problem; such reporting is known as "whistle blowing" and it can carry risks for the employee if such actions are not safeguarded. It is important to note that in response to these scandals, Senator Sarbanes and Senator Oxley created the Sarbanes-Oxley Act of 2002, which provided rules in regards to corporate governance, disclosure and greater transparency of companies. President George W. Bush signed the Sarbanes-Oxley Act into law on July 30, 2002.
Business ethics and Corporate Social Responsibility (CSR) are critical to the success of organizations. CSR is defined as a company’s behavior towards society in general. It means the company must do the right thing as far as society is concerned. This can include considering the customer, employees, the supplier and the public. These principles and beliefs can change depending on location and culture. For the purposes of this course, ethics relates to the moral culture of the United States.
Diversity
As the population of the United States has grown over the years, more cultures have incorporated themselves into the whole. In addition, women have become a major part of the workforce and universities across the nation. Diversity means difference and it refers to religions, physical characteristics, languages, genders, ages, traditions, and all else that comprises the spectrum of human existence. Therefore, those individuals involved in recruitment and selection needs to create a diverse worldview to foster a vital, diverse working environment. Finally, when considering diversity and the EEOC, it is imperative to remember it is an organization that employees can turn to and trust if they feel they have been treated unfairly.
Staffing
Staffing decisions can have a profound impact on deciding whether an organization is able to reach organizational and overall human resource management objectives. If staffing decisions are done well, the proper hiring levels and skill sets are acquired. Strategic staffing approaches are first and foremost geared to the needs of the business, both present and in the future and these strategies impact finances and headcount. Strategic staffing is tied to short term, intermediated and long-term goals. More importantly, strategic staffing is tied to the organizations’ mission, vision and values.
Staffing costs can be diminished and the actual hiring decision can be delayed through the use of contingent workers. Most of the U.S. labor force is currently employed in contingent arrangements, which include part-time, temporary, or other contingent or contract-based arrangements. The trend of contingent arrangements is growing, because HR outcomes don’t always generate clear cash-flow estimates. In contrast, today’s workforce the creation of strategic teams are increasingly utilized, and one of the most common ways of using teamwork is by creating project teams.
Human Resource Planning (HRP) evaluates the recruiting and selection process utilized by the organization. There should be an analysis of how HRP conducts internal hiring versus external hiring and the benefits and drawbacks of each. Since external applicants are unknown entities, it often involves great risks. It's crucial for the selection of an external applicant to be planned and managed well. In contrast with the external recruitment process, the internal selection process identifies and attracts candidates from within the organization. In addition, there should be an analysis of a number of external recruitment resources in the labor market; how HR goes about their strategic recruiting efforts, especially when it comes to diversity and maintaining a diverse workforce. As a result, many HR departments outsource their recruiting efforts and other redundant tasks. Recruiting and selecting require the following:
1. Doing employment planning and forecasting to determine the duties of the positions to be filled.
2. Building a pool of candidates for these jobs by recruiting internal or external candidates.
3. Having the applicants fill out application forms and perhaps undergo an initial screening interview.
4. Utilizing various selection techniques such as tests, background investigations, and physical exams to identify viable job candidates.
5. Sending to the supervisor responsible for the job one or more viable job candidates.
6. Having the candidate(s) go through one or more selection interviews with the supervisor and other relevant parties for the purpose of finally determining to which candidate(s) an offer should be made (Dessler, 2015).
Job Analysis and Laws
The process of hiring the appropriate person for a job begins with a thorough job analysis, which consists of a comprehensive review of the activities required in a job. This process is completed by first evaluating what the business does and what type of knowledge, skills, and abilities (KSAs) are necessary to complete tasks, via a job analysis. Job analyses should be continuous and on-going, given the current situation of business. Next, a needs’ analysis is performed and consists of 1) an analysis of demand and forecast need; 2) supply analysis; 3) budgetary considerations and 4) strategic need. Once the needs analysis is complete, a job analysis is performed. The methods that can be used include the following (Dessler, 2015):
· A questionnaire
· An interview
· An observation
· A diary or log
To assist in the recordkeeping of a job analysis, it can be very useful to use a table type chart to record the information. The table should include the following information (Dessler, 2015):
· The actions performed
· The objects on which the actions are performed
· The effect of the actions
· The sequential order of the actions
Additionally, a detailed job analysis leads to a job evaluation, thus creating and reviewing of the job description. Job descriptions must identify essential job functions. In contrast, the job evaluation is about the actual structure of the pay system and not about specific individuals. It is equally important that HR specialists stay apprised about Equal Employment Opportunity (EEO) and affirmative action guidelines and laws, such as the Equal Pay Act (1963); Title VII of the Civil Rights Act (1964), Sexual Harassment, Affirmative Action Americans with Disabilities Act. Further, The ADA (Americans with Disabilities Act) requires confidentiality of medical records and limits their disclosure. They can only be shared with those who have a need to know. The disclosure of medical records can also have liability consequences under common law.
Legalities of Recruitment & Selection
Employers must ensure they are properly recruiting and selecting top performers and avoid having employee shortages. They must use creative recruiting strategies while in concert abiding by all laws. Thus, understanding the federal laws provides a guide for the recruitment and selection process which includes the following:
· Title VII of the Civil Rights Act of 1964
· Age Discrimination in Employment Act of 1967 Equal Pay Act of 1963 (EPA)
· The Pregnancy Discrimination Act of 1978
· The Uniformed Services Employment and Reemployment Act of 1994
· Equal Employment Opportunity Commission (EEOC)
· Equal Employment Opportunity Act of 1972 (EEO).
· Americans with Disabilities Act (ADA).
· Immigration and Control Act of 1986 (IRCA)
· Fair Labor Standards Act (FLSA)
· Civil Rights Act of 1991
The EEOC enforces the federal laws that prohibit employment discrimination and regulate laws, which forbid asking candidates about (Arthur, 2013):
· Age
· Disability
· Religion
· National origin
· Marital status
· Race
· Education
· Military background
· Height and weight
The EEOC also prohibits employers from asking discriminatory questions on their application forms. Therefore, some employers require applicants to complete two separate application forms. One form contains information deemed necessary for evaluating the person's future performance, information regarding, for instance, education and work history. The second application form contains information compiled and used solely by the employer for its Equal Employment and Affirmative Action Reports (Dessler, 2015). To prevent negligent hiring practices, employers are required to verify employment eligibility of all new employees.
It is important to note the influence of the Internet as the newest channel for reaching employers and employees. Looking for job applicants online and having them find employers online is arguably the most revolutionary change in the field of hiring in a generation, since a series of laws were passed beginning in the 1960s relating to discrimination. Online recruiting can be used in conjunction with traditional recruiting methods; however, employers must also be knowledgeable of the above laws.
Employment Tests
Employment tests are those that test a person's technical expertise, knowledge (such as math skills) and personality. Tests should be relevant to the job or the hiring manager can get into trouble with the law. A test is basically a sample of a person's behavior; however, some tests are more representative of the behavior being sampled, such as a typing test. If the job requires typing on a computer, then the applicant should take a typing test. If writing skills are important, then give applicants a test of writing something similar to what they would write on the job. The basic guidelines for setting up a testing program should include the following (Dessler, 2015):
· Use tests as supplements.
· Validate the tests in your organization.
· Analyze all your current hiring and promotion standards.
· Keep records.
· Begin your validation program now.
· Use a certified psychologist.
· Test conditions are important.
It is important to remember when testing applicants: 1) the employer must prove that the tests are related to success or failure on the job (validity), and 2) the employer must prove that the test doesn’t unfairly discriminate against either minority or non-minority subgroups (Dessler, 2015). Furthermore, the employer should ensure they are using accurate selection techniques without violating any federal employment laws. Most employers use a combination of selection techniques such as (Dessler, 2015):
· Background investigations and reference checks
· Polygraph and honesty testing
· Graphology
· Proficiency and skills tests
· Psychomotor tests
· Aptitude tests
· Physical examination
· Drug screening
In today’s leading edge companies, executives have the daunting challenge to boosts their efforts to retain top performers to remain competitive. This quest is the direct result of how corporations in America are dealing with the growing lack of employee engagement, loyalty, distrust, and creativity from their employees (Fox, 2014). Gallup’s 2013 research about the state of the American workplace notes only 30% of U.S. employees view themselves as engaged (2014). This figure is noteworthy in regards to retention, since a 2012 study by the Dale Carnegie Training and MSW Research revealed that disengaged employees are 2.5 times more likely to leave their job for any pay increase than engaged employees (2014). Consequently, these numbers speak volumes when discussing employee engagement, retention, and talent management.
Employee engagement is created when employees feel a sense of ownership toward their company and feel compelled to help an organization do more than what is required. Employee engagement and commitment is a critical element for companies to be successful in the future, and has always been a key source of competitive advantage in the workplace. On the other hand, intellectual capital is “collective or useful knowledge” that can be described, shared and utilized to advance the organization’s ability to compete.
Some experts contend that knowledge has become the most important factor in economic life and the one indispensable asset of corporations. In fact, the new “knowledge management” industry was created as a result of this phenomenon. There is little doubt that in the Information Age and the era of the knowledge worker; the importance of an organization’s ability to motivate, harness employee’s discretionary effort, and intellectual capital has intensified (2014).
As indicated by the President of the Society for Human Resource Management (SHRM) Executive Network, employers who do not have a clear Talent Management Philosophy will face serious consequences as follows (Effron, 2016):
· Increased high potential turnover: Potential leaders just leave
· Decreased engagement: Engagement is low when managers are not accountable for developing their teams or bad conduct is left unchecked
· Expanding capability gaps: No philosophy; managers rely on personal inclinations, which do not build quality or depth of talent
Competitive Talent Advantage
In this new millennium, corporate America’s need to increase employee commitment and productivity is greater than ever in order to be competitive in the global marketplace. Yet, corporations are finding it difficult to cultivate the fuel that creates productivity, customer value and ultimately, profitability. That fuel is the workforce’s engagement, motivation, discretionary effort and intellectual capital. Therefore, it is the organizations job and HR recruiters to strategize and think of ways to re-engage employees.
Strategic staffing is tied to short term, intermediated and long-term goals. More importantly, strategic staffing is tied to the organizations’ mission, vision and values. This strengthens the organization because it can concentrate on its’ core competencies derived from the organizational mission. In comparison, as stated in the introduction, Traditional Staffing focuses more on administrative duties, such as recruiting, employees; and the administrative paperwork (benefits and payroll) for those employees, along with orientation for the new job and training. Traditional staffing does not work in conjunction with top executives to address long-term strategy and goals. This type of staffing does not with utilize strategic plans, but stick to the basic administrative functions. More importantly, Traditional staffing will need to use more advanced technology and go beyond the bear minimums to engage employees, especially since the Baby Boomers will be retiring and there is a new culture of the Millennials entering the workforce.
The new reality is that Strategic Staffing has helped drive the entrepreneurial boom. American workers have a risky yet viable option when they leave an organization by going into business for themselves. In fact, most millennials would rather be in business for themselves than work for an employer. Further, they do not feel that long-term employment relationship and allegiance to one particular employer is viable. This reality has also shaped today's workers view regarding employment. Many workers view themselves as free agents, willing to offer their services to the highest bidder. Consequently, HR will need to ramp up their recruiting efforts and include strategies to recruit, retain and engage employees in the future. Part of this new future will also include more outsourcing. Finally, it is essential to include information from the, Worker’s Family Flexibility Act, which was passed in 2013 to help working struggling working mothers and other families. This act would help loosen federal overtime laws under the Fair Labor Standards Act.
There are additional legalities in employment law that HR managers and test administrators must be observant of during employment testing. As a result, federal employment laws reveal the following about testing and bias:
· Title VII of the Civil Rights Act of 1964: Two important Title VII terms that impact testing is disparate treatment (testing the abilities of nonwhite applicants but not those of white applicants) and disparate impact or adverse impact (prohibits employers from using a non-job related neutral test that has a greater negative impact on members of a protected group or subgroup).
· Age Discrimination in Employment Act (ADEA) of 1967: Forbids testing illegal behaviors, such as a physical agility tests only to those over age 50.
· Rehabilitation Act of 1973: Employers that have not required physicals in the past must prove requirements if they want to start conducting them.
· Americans with Disabilities Act (ADA) of 1990: Requires organizations that conduct tests of any kind to do so in a place and manner accessible to individuals with disabilities.
· Genetic Information Notification Act (GINA): Under Title II makes it illegal for employers to discriminate because of genetic information, including requesting, requiring, purchasing, or disclosing information about an individual’s genetic tests or the genetic tests of an individual’s family members
1
You are the Human Resource Director in charge of recruitment, selection, training and motivating staff. Your task now is to become a strategic partner and create value in the organization. What are the steps you would take to recruit, select, and hire staff? How would you go about the recruiting and selection activities in creating a diverse staff while abiding by federal laws? What federal and state laws would need to be evaluated to avoid compromising your department and organization?
Your response should include
at least four or more
of the following topics in your response:
· Discuss the steps you would take for staffing and include conducting a needs analysis and job analysis.
· Discuss forecasting strategy and specific techniques you would use for determining human resource requirements.
· What applicable federal and state employment laws would you need to have an understanding of to guide you in the recruitment and selection process? Why should an employer be concerned about negligent hiring?
· What is the role of employment tests? Discuss the basic guidelines for setting up a testing program.
· Discuss the five step training and development process.
· How can an organization improve their efforts to achieve diversity? Discuss the role of ethics, and corporate social responsibility as an employer.
Submit your answer in a Word document. Click the “Edit” button to submit your document.
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