Download HRM CH.1-3 TEST STUDY GUIDE 2024 and more Exams Advanced Education in PDF only on Docsity! HRM CH.1-3 TEST STUDY GUIDE Human Resource Management - Designing formal systems in an organization to manage human talent for accomplishing organizational goals Human Resource Management Roles - Selecting, training, rewarding, managing, and retaining employees Why Organizations Need HR Management - Assists organizations in achieving higher: Profits Stock price Productivity Assists organizations in adapting to: A globalized workforce Age diversity Sustainability Social media Deals with government regulations Core competency - Unique capability that creates high value for a company Organizational assets - Physical assets-ex. Buildings, land, computers Financial assets-ex. Cash, financial resources, stocks, bonds or debt Intellectual property assets-ex. Specialized research capabilities, patents, information systems Human assets-ex. Individuals with their talents, capabilities, experience, professional expertise, relationships Human capital - The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organization's workforce Called intellectual capital to reflect employees' contributions Ability-motivation-opportunity (A M O) model - H R practices that lead to greater skill, greater motivation, and greater opportunity for workers to contribute to the organization Productivity - Measure of the quantity and quality of work done, considering the cost of the resources used improve productivity - Can be improved by organizational restructuring, redesigning work, aligning H R activities, and outsourcing analyses Innovation - Process whereby new ideas are generated that create value for an organization Facilitated by selection of appropriate talent, training, and sharing of knowledge Organizational Culture - Shared values and beliefs that give members of an organization meaning and provide them with rules for behavior Is constant and enduring Comprises the organizational social environment within a firm Affects service and quality, organizational productivity, and financial results Hr Function: Strategy and planning- - Anticipating future talent needs and preparing plans to address those needs H R Functions-Equal employment opportunity - Compliance with federal, state, and even local equal employment opportunity (EEO) laws and regulations affects all other HR activities. Instituting effective diversity and inclusion initiatives will help the organization maintain a robust workforce H R Functions- Talent acquisition - The aim of talent acquisition is to provide a sufficient supply of qualified individuals to fill jobs in an organization H R Functions- Talent management and development- - Beginning with the orientation of new employees, talent management and development includes different types of training. H R Functions- Total rewards - Tangible and intangible rewards such as pay, incentives, and benefits create the value proposition to keep employees engaged and motivated H R Functions- Risk management and worker protection - Employers must address various workplace risks to ensure workers are protected, meet legal requirements, and respond to concerns for workplace health and safety H R Functions- Employee and labor relations - The relationship between managers and their employees must be handled legally and effectively. Employer and employee rights must be addressed. It is important to develop, communicate, and update HR policies and procedures so that managers and employees alike know what is expected Roles for Human Resource Departments - Administrative Focusing on clerical administration, recordkeeping, legal paperwork, and policy implementation Operational and employee advocate Managing H R activities based on the strategies and operations identified by management Strategic Helping define and implement business strategies also fuels the belief that HR support is not really needed. Further, HR staff are sometimes seen as lacking in business acumen by line managers. In some organizations, HR is seen as owning employee morale and fun, which leads to difficulties when employees have serious issues to report and need to deal with a professional in whom they can confide. Despite such concerns, the HR function can benefit the workplace if it is managed well. SBA - U.S. Small Business Administration When new employees are hired in a small business, line managers usually do the recruiting, selecting, and orienting. These HR activities, however, reduce the amount of time managers have available to focus on their regular jobs. As a result, when such activities occur frequently, hiring someone to do them allows managers to spend more time on their primary duties. With about 80 to 100 employees, smaller organizations often find that they would benefit from designating someone to specialize in HR practices. Other specialist HR positions are added (e.g., in compensation, training, or recruiting) as the company grows larger. The need for HR increases as an organization grows until it evolves into a distinct function with specialists assigned to specific duties. For HR to be most useful, it must remain closely connected to the operating management of the organization. Without that connection, HR functions cannot reach th - People-related costs are typically the single biggest controllable cost in an organization. This means that managing HR activities is a major priority for all managers. - Organizations must manage four types of assets to be successful - Physical assets: Buildings, land, furniture, computers, vehicles, equipment, and so on Financial assets: Cash, financial resources, stocks, bonds or debt, and so on Intellectual property assets: Specialized research capabilities, patents, information systems, designs, operating processes, copyrights, and so on Human assets: Individuals with their talents, capabilities, experience, professional expertise, relationships, and so on human assets are the "glue" that holds all the other parts together to achieve results - human capital - the collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organization's workforce. It is important that workers have both the necessary competence plus the desire to perform effectively. AMO - ability-motivation-opportunity model The AMO model involves HR practices that lead to greater skill, greater motivation, and greater opportunity for workers to contribute to the organization Sometimes human capital is called intellectual capital to reflect the thinking, knowledge, creativity, and decision making that people in organizations contribute - productivity - measure of the quantity and quality of work done, considering the cost of the resources used. A useful way to measure the productivity of human resources is - unit labor cost unit labor cost - computed by dividing the average cost of workers by their average levels of output. Using unit labor costs, one can see that relatively high wages will not affect competitiveness if high productivity levels are achieved. Low unit labor costs can be a basis for a strategy focusing on human resource competency. Productivity and unit labor costs can be evaluated at the global, country, organizational, departmental, or individual level. increase productivity - Organizational restructuring, which involves eliminating layers of management and changing reporting relationships as well as cutting staff through downsizing, layoffs, and early retirement buyout programs; Redesigning work, which often involves making changes to the way work gets done by focusing on the characteristics of jobs and altering how tasks are structured and coordinated; Aligning HR activities, which means ensuring that HR efforts and practices are consistent with organizational efforts to improve productivity and satisfy strategic goals; and Outsourcing analyses, which require the HR department to conduct cost-benefit assessments that indicate the overall positive or negative impact of outsourcing—HR then manages outsourcing efforts if they occur. Innovation - is the process whereby new ideas are generated that create value for an organization. Clearly, the majority of innovation within an organization comes from its employees who are most knowledgeable about how things are done and what customers desire. Skill-enhancing practices such as recruiting and selecting appropriate talent using pre- hire skill testing leads to more innovation. Training, particularly on-the-job training, is another important HR function that can significantly impact the level of innovation in a firm. In addition to training individual employees, sharing knowledge among employees also fosters greater innovation and leads to more new product and service ideas. - Organizational culture - consists of the shared values and beliefs that give members of an organization meaning and provide them with rules for behavior. These values are deeply embedded in organizations and affect how their members view themselves, define opportunities, and plan strategies. In this sense, such a culture establishes the personality of a company in a similar way that personality shapes an individual, shaping its members' responses and defining what an organization can or is willing to do. The culture of an organization is, therefore, seen by employees in the norms, values, philosophies, rituals, and symbols adopted by the firm. Culture is particularly important because it tells individuals how to behave (or not to behave) in the workplace. The seven HR functions - Strategy and planning, Equal employment opportunity, Talent acquisition, Talent management, Total rewards, Risk management and worker protection, Employee and labor relations, HR strategy and planning - HR strategy and planning: As part of achieving organizational competitiveness, strategic planning for the organization and HR's role in those strategic plans are good starting places. Anticipating future talent needs and preparing plans to address those needs is a vital task for HR. How well HR does what it plans to do is measured by HR metrics and analytics Equal employment opportunity - Equal employment opportunity: Compliance with federal, state, and even local equal employment opportunity (EEO) laws and regulations affects all other HR activities. Instituting effective diversity and inclusion initiatives will help the organization maintain a robust workforce Talent acquisition - Talent acquisition: The aim of talent acquisition is to provide a sufficient supply of qualified individuals to fill jobs in an organization. The nature of the workforce, of job design, and of job analysis lays the foundation for talent acquisition by identifying how people work and the qualities needed to succeed. Establishing a positive employer brand and employee value proposition are keys to becoming an attractive employer. Recruiting efforts focus on generating a pool of qualified applicants from which to select. The selection process is focused on choosing qualified individuals to fill those jobs Talent management and development - Talent management and development: Beginning with the orientation of new employees, talent management and development includes different types of training. HR development and succession planning for employees and managers are necessary to prepare for future challenges. Career planning identifies paths and activities for individual employees as they move within the organization. Assessing how well employees are performing their jobs is the focus of performance management Total rewards - Total rewards: Tangible and intangible rewards such as pay, incentives, and benefits create the value proposition to keep employees engaged and motivated. programs to encourage ethical behavior - A written code of ethics and standards of conduct Training on ethical behavior for all executives, managers, and employees Advice to employees on ethical situations they face, often given by HR Systems for confidential reporting of ethical misconduct or questionable behavior Public recognition and commendation when employees behave ethically When ethical issues arise, HR professionals need to understand their role and responsibilities as a company representative and employee advocate. An HR professional may not be able to ensure confidentiality when certain issues are brought up. Safety violations, harassment situations, and other issues may require disclosure to external authorities despite the discomfort this may cause for employees making a report. It is vital to obtain all the relevant facts in an alleged ethics or legal violation situation before proceeding further. Consulting with a trained legal expert is often a wise step to take to protect the interests of all parties involved - SHRM competency framework - Human resource expertise. Applies knowledge of HR functions Relationship management. Builds networks that support the firm Consultation. Provides advice and direction Leadership and navigation. Guides the organization and its employees Communication. Fosters positive flow of information among different parties Global and cultural effectiveness. Understands diverse global issues Ethical practice. Builds organizational ethical values and compliance Critical evaluation. Functions as a judge of information Business acumen. Provides input that supports business strategy For HR generalists, the largest organization is SHRM - IPMA-HR - Public-sector HR professionals tend to be concentrated in the... International Public Management Association for Human Resources (IPMA-HR) WFPMA - World Federation of People Management Associations (WFPMA) provides an opportunity for HR professionals operating in global organizations to network and gain expertise ATD - Association for Talent Development WorldatWork Association - IHRIM - International Association for Human Resource Information Management (IHRIM) - Earning certification is an important step in establishing proficiency and credibility in the profession. Equally important is the continuing education and recertification process that ensures that individuals maintain up-to-date skills and knowledge so that they can effectively manage HR programs and practices. The primary certification processes explained below involve both an initial certifying exam followed by required ongoing continuing education to maintain certification. This ensures that certified professional continue to remain up-to-date on current HR practice. - The most widely known HR certifications are the Professional in Human Resources (PHR) and the Senior Professional in Human Resources (SPHR), both sponsored by the Human Resource Certification Institute (HRCI) More than 500,000 professionals have at least one of these designations, and thousands of individuals take the certification exams annually. A major update to the exam content for both exams was recently conducted to reflect changes in the HR profession and the increased emphasis on strategy and leadership for the senior level certification. Eligible individuals must pass the appropriate exam. Certification from HRCI also exists for global HR professionals in the GPHR, PHRi, and SPHRi. Global certifications recognize the growth in HR responsibilities in international organizations and cover appropriate global HR subject areas HRCI also offers the aPHR for recent college graduates with little to no HR professiona - PHR - Professional in Human Resources SPHR - Senior Professional in Human Resources HRCI - Human Resource Certification Institute In 2015, SHRM began offering a certification based on its competency model for HR professionals. Since its inception, the SHRM certification process has been completed by over 100,000 individuals. The certification focuses on the application of HR competencies to increase organizational performance. SHRM certification can be earned at two levels, one that focuses on entry, middle, and senior competencies (SHRM-CP) and another that focuses on executive competencies (SHRM-SCP). Readers of this book will be introduced to specific competencies that they should understand in order to earn a SHRM-CP or SHRM-SCP designation. - WorldatWork Certifications - Certified Compensation Professional (CCP) Master Certified Compensation Professional (MCCP) Certified Benefits Professional (CBP) Work-Life Certified Professional (WLCW) Global Remuneration Professional (GRP) Other Human Resource Certifications - Increasingly, employers hiring or promoting HR professionals are requesting certifications as a "plus." HR certifications give HR professionals more credibility with corporate peers and senior managers. Additional certification programs for HR specialists and generalists are sponsored by various organizations, and the number of certifications is being expanded. For specialists, some well-known programs include the following: Certified Recognition Professional (CRP) sponsored by the Recognition Professionals International Certified Employee Benefits Specialist Program (CEBS) sponsored by the International Foundation of Employee Benefits Plans Certified Professional in Learning and Performance (CPLP) sponsored by the Association for Talent Development Certified Safety Professional (CSP) and Occupational Health and Safety Technologist (OHST) sponsored by the American Society of Safety Engineers Strategic planning - the process of defining organizational strategy, or direction, and allocating resources (capital and people) toward its achievement. Successful organizations engage in this core business process on an ongoing basis. The strategic plan serves as the road map that gives the organization direction and aligns resources. Strategic planning process -Organizational Mission; SWOT Analysis; Establish Goals and Objectives; Formulate Organizational Strategy; Formulate Supporting Functional Strategies; Implement; Evaluate and Reassess. - The strategic planning cycle typically covers a three- to five-year time horizon, with updates and revisions during that time in response to changing conditions. When formulating the strategic plan, management considers both internal and external forces that affect a company, including the conditions that exist in the industry overall. The guiding force behind the strategic planning process is the... environmental scanning - The assessment of external and internal environmental conditions that affect the organization The HR department should be involved in this process to make sure that the employee perspective is considered. Succession planning - Succession planning is the process of identifying a plan for the orderly replacement of key employees. Leadership development and succession planning programs ensure that high-quality talent will be available to carry out business strategies international competition must be considered as part of environmental scanning. Global competition for labor intensifies as global competitors shift jobs and workers around the world, something that is seen when jobs from the United States are outsourced to countries with cheaper labor. - Changing Workforce Considerations - Aging of the workforce Growing diversity of workers Female workers and work-life integration concerns Availability of contingent workers Outsourcing possibilities Barriers to planning - Time frame: An overemphasis on short-term results and planning can blind managers to the importance of a longer-term outlook. Concerns about data integrity: The quality of data, while improving, is often inadequate for effective planning. If managers cannot trust the data they are working with, they will have little confidence in the plans they develop. Control: Some managers rely too heavily on their gut instinct when planning. This is particularly true when data about human resources is lacking or inaccurate. Detail: Since jobs and work demands are in a constant state of flux, it can be difficult to determine the appropriate level of detail (i.e., at the task level, job family, and department). Forecasting: It can be challenging to accurately predict which employees will retire or leave the organization, making the estimate of talent needs hard to pin down. Employee and Organizational Capabilities Inventory - Individual employee demographics (age, length of service in the organization, and time in present job) Individual competencies (KSAs) Individual career progression (jobs held, time in each job, education and training levels, promotions or other job changes, and pay rates) Individual performance data (work accomplishments, growth in skills, and working relationships) Forecasting - Forecasting uses information from the past and present to predict future conditions. When forecasting future HR conditions, the information comes from workforce availability and requirements. Projections for the future are, of course, subject to error and to changing conditions. Fortunately, experienced people are usually able to forecast with sufficient accuracy to create usable long-range plans. forecasting is still a combination of mathematical methods and subjective judgment - HR forecasting should be done over three planning periods: short range, intermediate range, and long range. The most commonly used planning period of six months to one year focuses on short-range forecasts for the immediate HR needs of an organization. Intermediate- and long-range forecasting are much more difficult processes. Intermediate-range plans usually project one to three years into the future, and long- range plans extend beyond three years. - Forecasting availability considers both external and internal supplies. Although the internal supply may be somewhat easier to calculate, it is important to calculate the external supply as accurately as possible. - Forecasting External Supply factors - Net migration into and out of the area Individuals entering and leaving the workforce Individuals graduating from colleges and other schools Changing workforce composition and patterns Economic forecasts for the next few years Technological developments and shifts Actions of competing employers Government regulations and pressures Circumstances affecting persons entering and leaving the workforce Estimating internal supply considers the number of external hires and the employees who move from their current jobs into others through promotions, lateral moves, and demotions. It also considers that the internal supply is influenced by transfer and promotion policies, and retirement policies, among other factors. In forecasting internal supply, data from replacement charts and succession planning efforts are used to project potential personnel changes, identify possible backup candidates, and keep track of attrition (resignations, retirements, etc.) for each department in an organization. - Some have called into question the value of strategic planning in light of economic volatility. However, organizations would fare much worse with no plan in place. Surprises are not good when hiring a workforce, and planning helps reduce surprises. Adopting a supply chain philosophy toward talent leads to an integrated process whereby all types of labor (internal workforce, independent contractors, etc.) are assessed and considered for filling future needs. - tactics for managing talent surplus - Reduce employee work hours or compensation Attrition Hiring freezes Voluntary separation programs Workforce downsizing/reduction in force (RIF) Tactics for managing a Talent Shortage - Increase employee work hours through overtime outsource to a third party Implement alternative work arrangements Use contingent workers (temporaries, independent contractors) Reduce employee turnover Across-the-board pay cuts can reduce labor costs while retaining some skilled employees. It is important that pay cuts start at the very top of the organization so that employees do not bear all of the hardship. Uniform pay cuts can be seen as a shared sacrifice for the survival of the firm. Organizations may also reduce employee benefits, such as eliminating matching 401(k) contributions or raising employee health insurance premiums. To maintain employee loyalty and a sense of fairness, HR personnel should closely monitor the situation and reinstate pay and benefit levels when the economic outlook improves. - Attrition occurs when individuals quit or retire and are not replaced. Using attrition with no additional hiring means that no one loses a job, but those who remain must handle the same workload with fewer people. Unless turnover is high, wide variety of noncore functions to reduce costs or to obtain skills and expertise not available in the organization. Alternate work arrangements - nontraditional schedules that provide flexibility to employees and include job sharing and telecommuting These are creative solutions to attract and retain skilled employees who want flexibility. Employees can be given more freedom in determining when and how they will perform their jobs. Retirees may be rehired on a part-time or temporary basis to fill talent gaps. The advantage is that these individuals are already trained and can be productive immediately. Care must be taken not to interfere with pension payments or other benefits tied to retirement. Contingent employees, that is, noncore employees working for a company on a temporary or as-needed basis, can provide short-term help have to watch us and them stuff - The purpose of a merger or acquisition is to generate growth by combining two existing companies and creating a more competitive company. Recent evidence suggests that companies frequently use mergers and acquisitions (M&As), with more efforts planned for the future. Since M&As often hinge on retaining and managing talent, HR professionals should be involved in managing these business ventures - Due diligence - is a comprehensive assessment of all aspects of the business being acquired. Financial, sales and marketing, operations, and human resource staffs can all be involved before the final decision is made to merge with or acquire the company. Each function determines the assets and liabilities of the target company to ascertain whether there are serious risks to the buyer. HR professionals can review broad issues related to legal compliance and labor contract obligations. HR should also assess what HR policies have been used in a firm, the available talent, and the organizational culture. four important factors in changing culture include the following: - Define the desired behaviors. Provide behavioral examples of how people are expected to act and tie these behaviors to the performance management system. Deploy role models. Select leaders who exemplify the desired behaviors and make them visible throughout the organization. Provide meaningful incentives. Reward the role models with recognition to reinforce their behavior and to signal to the rest of the organization. Provide clear and consistent messages. Align what you say with what you do and reward. Effectiveness - The ability of a program, project, or task to produce a specific desired effect or result that can be measured Efficiency - is the degree to which operations are carried out in an economical manner. Efficiency can also be thought of as a short-term measure that compares inputs and costs directly against outputs and benefits. People-related costs are typically the largest controllable expense in organizations. Effective management of these costs can make a positive difference in the survival of the organization - HR metrics - are specific measures of HR practices. They are performance indicators of various HR issues, like absenteeism and turnover rates. Metrics are typically used to assess HR practices and results within the organization over time. A metric can be developed using cost, quantity, quality, timeliness, and other designated goals. Metrics can be developed to track HR efficiency and effectiveness Strategic HR Metrics - Revenue per employee: This is the essential measure of workforce productivity and should be a key metric presented to the leadership team. Quality of hire improvement: Evaluate the performance of recent new hires compared to those employees hired previously. This metric can show that talent acquisition practices result in better performance by new hires, which should result in cost savings and increased productivity. Performance turnover in key jobs: Tracking overall turnover is necessary, but knowing the turnover level for employees in mission-critical jobs is better. Further, tracking the high performers in those key jobs can indicate problem areas faster. Revenue lost due to position vacancies: Determining how much revenue is lost because positions are not filled quickly enough is better than measuring "days-to-fill" because it zeroes in on a more bottom-line-focused metric. HR program contribution to productivity improvements: Identify and report on those HR programs that have resulted in the greatest gains in organization productivity. Percentage of HR strategic goals that were met: Twice a year, the HR team should assess progress toward the strategic goals for the HR function. HR analytics - A key challenge that many HR groups face is having enough professionals on staff who know how to properly use HR analytics. Analytics involve using various metrics and complex modeling techniques to answer questions about HR functions. HR analytics can be defined as an evidence-based approach to making HR decisions on the basis of quantitative tools and models. The field of analytics is growing rapidly and a number of universities now offer degree programs in data analytics and specific HR analytics courses are being added to many graduate HR programs. HR professionals in the future will need to develop some expertise and comfort level with metrics and analytics in order to fully engage as strategic contributors to their organizations. The following should be considered when developing HR metrics and analytics: Accurate data can be collected. Measures are linked to strategic and operational objectives. Calculations can be clearly understood. Measures provide information valued by executives. Results can be compared both externally and internally. Measurement data drive HR management efforts. - Benchmarking - the process of comparing an organization's business results to industry standards or best practices An organization compares itself to "best-in-class" organizations that demonstrate excellence for a specific process. Benchmarking is focused on external practices that the organization can use to improve its own processes and practices. When implementing benchmarking, managers should be careful to find organizations with similar contexts, cultures, operations, and size so that comparisons are realistic. Practices that would work effectively in an organization of 500 employees might not transfer very well to an organization with 5,000 employees. It is vital to recognize that different organizational settings will affect the success of various HR practices. This is truly an area where "one size does not fit all." The organization should carefully select benchmarks that will have the greatest impact on organizational performance. balanced scorecard - framework organizations use to report on a diverse set of performance measures. This method balances financial and nonfinancial measures so that managers focus on long-term drivers of performance and organizational sustainability. balanced scorecard measures performance in four areas: - Financial measures: Traditional financial measures such as profit and loss, operating margins, utilization of capital, return on investment, and return on assets are needed to ensure that the organization manages its bottom line effectively. Internal business processes: Product and service quality, efficiency and productivity, conformance with standards, and cycle times can be measured to ensure that the operation runs smoothly and efficiently. Customer relations: Customer satisfaction, loyalty, and retention are important to ensure that the organization is meeting customer expectations and can depend on repeat business from its customers. Learning and growth activities: Employee training and development, mentoring programs, succession planning, and knowledge creation and sharing provide the necessary talent and human capital pool to ensure the future of the organization. TCOW - total cost of workforce (TCOW) is a comprehensive measure that takes into account the full cost for all people who contribute work to the organization. Disparate impact: When an employment practice that does not appear discriminatory adversely affects individuals with a particular characteristic Individuals are substantially underrepresented as a result of employment decisions that work to their disadvantage Unintentional because identical criteria are used, but the results can differ for certain groups Landmark case: Griggs v. Duke Power (1971) Business necessity - Practice necessary for safe and efficient organizational operations B F O Q - Bona fide occupational qualification (B F O Q) Legitimate reason an employer can use to exclude persons on otherwise illegal bases of consideration. ex. movies Burden of proof: - Individuals who file suit against employers must establish that illegal discrimination has occurred. Sufficient evidence, either factual or statistical, must be provided to the court to support the case and allow the plaintiff to continue with the claim Retaliation - Punitive actions taken by employers against individuals who exercise their legal rights To prevent charges of retaliation, employers can: Create and disseminate an antiretaliation policy Train supervisors and review performance evaluation Conduct a thorough internal investigation Take appropriate action Civil Rights Act of 1964, Title Seven - States that it is illegal for organizations to discriminate in any way based on a person's sex, race, national origin, color, and/or religion Basis for several extensions of E E O law Coverage of Civil Rights Act of 1964, Title Seven - All private employers of 15 or more employees All educational institutions, public and private State and local governments Public and private employment agencies Labor unions with 15 or more members Joint labor-management committees for apprenticeships and training The Civil Rights Act of 1991 - Requires employers to show that an employment practice is job related for the position and is consistent with business necessity Creates provision to claim compensatory and punitive damages for the victims of intentional discrimination Executive Orders (11246), 11375, and 11478 - Require federal contractors to take affirmative action to compensate for historical discrimination against women, minorities, and handicapped individuals Affirmative action Affirmative action - Proactive employment practices to compensate for historical discrimination against minorities A A P - Affirmative Action Program (A A P) Document that outlines proactive steps the organization will take to attract and hire members of underrepresented groups Objective To have the company's workforce demographics reflect as closely as possible the demographics in the labor market from which workers are recruited Managing Racial and Ethnic Discrimination Issues Making sure a hiring organization uses recruitment approaches that secure a diverse applicant pool Using anonymous application procedures Adopting policies against harassment of any type Ethnic jokes, vulgar epithets, racial slurs, and physical actions should be categorized as harassment - Sex/Gender Discrimination Laws - The Pregnancy Discrimination Act (P D A) Treating maternity leave the same as other personal or medical leaves Family and Medical Leave Act (F M L A) Giving up to 12 weeks of unpaid family leave and allowing the individual to return to job The Equal Pay Act Paying similar wage rates for similar work without regard to gender Differences in pay between men and women in the same jobs are permitted because of: Differences in seniority, performance, quality, and/or quantity of production Factors other than sex, such as skill, effort, and working conditions P D A - The Pregnancy Discrimination Act Treating maternity leave the same as other personal or medical leaves F M L A - Family and Medical Leave Act (F M L A) Giving up to 12 weeks of unpaid family leave and allowing the individual to return to job The Equal Pay Act - Paying similar wage rates for similar work without regard to gender Differences in pay between men and women in the same jobs are permitted because of: Differences in seniority, performance, quality, and/or quantity of production Factors other than sex, such as skill, effort, and working conditions Pay equity - Idea that pay for jobs requiring comparable levels of knowledge, skill, and ability should be similar, even if actual duties differ significantly Called comparable worth Reason for enforcement- Continued gap between the earnings of women and men Steps to Reduce Pay Inequities Include all benefits that are part of pay to calculate total compensation Ensure that people know how the pay practices work Base pay on the value of jobs and performance Benchmark against local and national markets to make pay structures competitive Conduct frequent audits - Glass ceiling - Discriminatory practices that have prevented women and minority status employees from advancing to executive-level jobs Glass elevators - Limits that keep women from progressing only in certain fields Some Ways to Break the Glass Establish formal mentoring programs Provide opportunities for career rotation Include women and minorities in top management Establish clear goals for retention and progression of women and minorities Allow for alternative work arrangements for employees - Sexual Orientation 20 states, the District of Columbia, and many cities have passed laws to protect applicants and employees from discrimination on the basis of sexual orientation Managers and employees should show respect for individuals undergoing transition surgery and therapy Can be done by ensuring individual privacy and making the right accommodations when needed - Nepotism - Practice of allowing relatives to work for the same employer Workplace Romance Determining which accommodations are reasonable so the individual can perform core job duties Architectural barriers should not block access Work tasks must be assigned or modified to allow performance Work hours and breaks may be adjusted A D A Restrictions and Medical Information - Restrictions prohibit employers from: Rejecting individuals because of a disability Asking job applicants any question about current or past medical history until a conditional job offer is made Using pre-employment medical exams, except for drug testing, until a conditional job offer is made Medical information must be stored separately and securely Genetic Bias Regulations - Employers use genetic screening tests to: Make workers aware of genetic problems Terminate employees who may make extensive use of health insurance benefits Genetic Information Nondiscrimination Act Limits health insurance plans' use of genetic information Prohibits employment discrimination on the basis of genetic information A D E A - Age Discrimination in Employment- Prohibits discrimination against all individuals age 40 or older employed by an organization having 20 or more workers O W B P A - Older Workers Benefit Protection Act (O W B P A) Amendment to the A D E A Protects employees who sign liability waivers for age discrimination in exchange for severance packages Managing Age Discrimination Adopting age-neutral selection and promotion practices Recruiting older people to return to the workforce through part-time and other attractive scheduling options Employing phased retirement - Phased retirement: Approach that enables employees to gradually reduce their workloads and pay levels Religious discrimination - Hostile remarks or refusal to hire individuals with different beliefs Religious expression - Express religious beliefs at work in a way that does not harass others Managing religious diversity - Changing an employee's job tasks or scheduling Making an exception to dress and grooming rules and making accommodations related to paying union dues or agency fees, prayer, proselytizing, and other forms of religious expression I R C A - Immigration Reform and Control Act Requires that employers verify the employment eligibility status of all employees without any discrimination Requires that each employee must complete an Employment Eligibility Verification (I-9) form within the first 3 days of employment E-Verify federal database verifies the employment eligibility of employees Has broadened visa requirements to accommodate highly skilled employees Language Issues - E E O C has issued guidelines stating that employers may require workers to speak only English at certain times or in certain situations The business necessity of the requirements must be justified Military Status Protections - Vietnam Era Veterans' Readjustment Assistance Act U S E R R A U S E R R A - Uniformed Services Employment and Reemployment Rights Act (U S E R R A) U S E R R A Provisions: Leaves of absence and return to employment rights Prompt reemployment on return Protection from discharge and retaliation Health insurance continuation Continued seniority rights Appearance and Weight Discrimination - Employers are allowed to set dress codes and appearance standards as long as they are applied uniformly Height and weight requirements must be linked to specific job functions Components of Diversity Training - Legal awareness Cultural awareness Sensitivity training Mixed Results for Diversity Training - May not produce long-term changes in people's attitudes and behaviors toward others with different characteristics Has not reduced discrimination and harassment complaints Perceived as benefiting only women and racial minorities and taking away opportunities for white men Improving Diversity Training Efforts - Focusing on behavior Stressing that people can believe whatever they wish, but at work their values are less important than their behaviors Dealing with diversity is not about what people can and cannot say It is about being respectful to others