24% PHR
17% SPHR
Any student use of these slides is subject to the same License Agreement that governs the student’s use of the SHRM Learning System materials.
© SHRM 2-1

© SHRM
Title VII of the Civil Rights Act (1964)
Title VII of the Civil Rights Act (1964)
Religion
Color Sex
Race
Illegal to discriminate in employment
National origin
2-2

Terminology
Sex
Gender
Transgender
National origin
• Classification of people as male or female
• Biological and physiological characteristics that define men and women
•
Socially constructed roles, behaviors, activities, and attributes that a given society considers appropriate for men and women
• Also, the perception by others of a person’s appearance, behavior, or physical characteristics
•
If birth-assigned sex and internal sense of gender identity do not match
•
Tendencies to vary from culturally conventional gender roles
• Country of one’s birth or of one's ancestors' birth— even those that no longer exist
• May be interchanged with “ethnicity,” although an
“ethnic group” can refer to religion or color as well as country of one’s ancestry
© SHRM 2-3

Discrimination
National Origin
• Because of individual’s, or his/her ancestor’s, place of origin or because individual has physical, cultural, or linguistic characteristics of a national origin group
© SHRM
Race
• Because individual is of a certain race or because of personal characteristics associated with race
Color
• Because of skin color
2-4

General Provisions of Title VII
Prohibits discrimination against protected classes.
Makes it unlawful to deny employment opportunities, training, or career advancement to protected classes.
As amended, prohibits discrimination because of pregnancy, childbirth, or related conditions.
Prohibits sexual harassment.
Prohibits compensation discrimination.
© SHRM 2-5

Which of the following organizations would be subject to the EEOC rules and regulations specified in Title VII and its amendments?
A. A five-person, family-owned computer repair business
B. An independent college with 80 employees
C. A franchise operation with two full-time managers and ten part-time employees
D. A new labor union with 14 members
© SHRM 2-6

Several exceptions to the definition of discrimination exist, including:
Work-related requirements
BFOQs
Seniority systems
© SHRM 2-7

• Allows jury trials when a plaintiff seeks compensatory or punitive damages.
• Compensatory damages are awarded to make an injured person “whole.”
• Under federal law, punitive damages are not possible against a governmental unit or agency.
• Amount of compensatory and punitive damages is based on the size of the employer’s workforce.
Related case: Kolstad v. American Dental Association
© SHRM 2-8

Compensatory and Punitive Damages
Maximum Recovery per Individual
$50,000
$100,000
$200,000
$300,000
Number of
Employees
15 –100
101 –200
201 –500
501 or more
The maximum recovery amount is for a total of compensatory and punitive damages.
© SHRM 2-9

Age Discrimination in Employment
Act (1967)
ADEA prohibits: ADEA covers:
Employment discrimination against persons age 40 and over.
Mandatory retirement based on age.
Limiting employee status due to age.
Employers with 20 or more employees.
Unions with 25 or more members.
Employment agencies and apprenticeship programs.
© SHRM 2-10

• Age can be a BFOQ if necessary for the normal operation of the business.
• Exceptions can occur when:
The organization has a genuine seniority or benefit plan.
The employer disciplines or fires for good cause.
The employee is a top executive or policy maker.
© SHRM 2-11

Pregnancy Discrimination Act (1978)
An organization:
• May not refuse to hire or fire a woman simply because she is pregnant.
• May not force a pregnant employee to leave if she is ready, willing, and able to work.
• Must treat pregnancy the same as any other temporary disability.
© SHRM 2-12

Americans with Disabilities Act
(1990)
Prohibits discrimination against qualified individuals with disabilities.
Requires reasonable accommodation unless the employer can show undue hardship.
Applies to employers with 15 or more employees, employment agencies, labor organizations, and joint labor-management committees.
© SHRM 2-13

© SHRM
Disability
• Has an impairment that substantially limits one or more major life activities
• Has a record of such an impairment
• Is regarded as having such an impairment
Essential functions
• Primary job duties that an individual must be able to perform, with or without accommodation
2-14

© SHRM
ADA Amendments Act (ADAAA)
• Retains the basic definition of disability contained in the ADA but expands interpretation.
• Makes it easier to meet the definition of “disability.”
• Includes nine rules of construction.
• Identifies several impairments that virtually always meet the definition of disability.
• Expands the ADA list of major life activities.
2-15

Which of the following are the only mitigating measures allowed by the ADAAA when assessing whether an impairment substantially limits a major life activity?
A. M edications
B. Implantable hearing devices
C. Ordinary eyeglasses or contact lenses
D. Prosthetic devices
© SHRM 2-16

Reasonable Accommodation
Modifying or adjusting a job application process, a work environment, or the circumstances under which a job is usually performed
Examples
• A reader to help an applicant who is visually impaired
• Construction to provide accessibility
• Alternative formats for employee training
• A telephone device for a person who is hearing-impaired
© SHRM 2-17

Genetic Information
Nondiscrimination Act (2008)
• Prohibits discrimination against an individual in hiring, firing, compensation, or terms or privileges of employment on the basis of genetic information about the individual or a family member.
• With limited exceptions, prohibits an employer from requesting, requiring, or purchasing genetic information on the individual or a family member.
© SHRM 2-18

Lilly Ledbetter Fair Pay Act (2009)
• Creates a rolling or open time frame for filing wage discrimination claims.
– Retains the 180-/300-day time frame outlined in Title VII.
– Restarts the statute of limitations each time an employee receives a paycheck based on the decision.
• Expands the plaintiff field.
Related case: Ledbetter v. Goodyear Tire & Rubber Co.
© SHRM 2-19

Uniform Guidelines on Employee
Selection Procedures (1978)
Covers all aspects of the selection process.
Prohibits selection procedures that have adverse impact on protected groups.
Adverse impact occurs when the rate for a protected group is less than 80% of the rate for the group with the highest selection rate (also known as the 80% rule or four-fifths rule).
© SHRM 2-20

An organization interviews 60 males and
40 females. They hire 30 males and 10 females. What is the selection rate of females?
A. 25%
B. 30%
C. 40%
D. 50%
© SHRM 2-21

Is there adverse impact?
Group
Males
Females
Number
Interviewed
60
40
Number
Hired
30
10
Percentage
Hired
50%
25%
Answer:
Yes.
Here is the calculation:
50% of the males were hired. To determine adverse impact, multiply 4/5 or 80% 50% = 40%.
Adverse impact occurred because 25% of the females were hired, not the required threshold of 40%.
© SHRM 2-22

• Federal laws that apply to federal government contractors and impose AA obligations include:
– Executive Order 11246.
– Vietnam Era Veterans Readjustment Assistance Act and Jobs for Veterans Act.
– Section 503 of the Rehabilitation Act.
• Legal obligations on employers depend on:
– Value of the federal contracts/subcontracts.
– Number of employees.
© SHRM 2-23

© SHRM
Prohibits discrimination based on physical or mental disabilities.
Section 501 applies only to the federal government as an employer; Section 503 applies to federal contractors and subcontractors with contracts over $10,000.
Requires employers to take affirmative action and make reasonable accommodation.
2-24

Immigration and Nationality Act
(1952)
Fundamental body of U.S. immigration law applying to all employers.
• Defines “alien” as any person lacking citizenship or status as a national of the United States.
• Differentiates aliens as:
– Resident and nonresident.
– Immigrant and nonimmigrant.
– Documented and undocumented.
© SHRM 2-25

© SHRM
Immigration Reform and Control Act
(1986)
Prohibits discrimination on the basis of national origin or citizenship.
Establishes penalties for hiring illegal aliens.
Places burden on employers to verify an employee’s identity and right to work.
Employers and employees fill out
Form I-9 within three days of hiring.
All documents must be unexpired.
2-26

Which document would prove identity and right to work in the U.S.?
A. U.S. military ID card
B. Social Security card
C.
Driver’s license with photo
D. Permanent Resident Card
© SHRM 2-27

Requires that federal contractors use e-Verify to check the employment eligibility of new hires and current employees directly working on a contract.
Accesses an Internet-based verification system operated by the USCIS in partnership with the Social Security
Administration.
Electronically checks the information provided by the employee on his or her Form I-9 against records contained in Department of Homeland Security and Social
Security Administration databases.
© SHRM 2-28

Immigrant visas
(green cards) are permanent.
• Divided into three preference groups based on their importance and the number allocated to each group annually
(EB-1, EB-2, EB-3).
© SHRM
Nonimmigrant visas are temporary.
• H-1B is reserved for professionals who come to the U.S. for a limited amount of time.
• There is a yearly cap on the number of H-1B visas.
2-29

Worker Adjustment and Retraining Notification
(WARN) Act
Requires a minimum of 60 days’ notice for:
• Plant closings.
• Mass layoffs.
Limited exceptions: faltering company, unforeseeable business circumstances, natural disaster
States that notice be given to:
• Affected workers or their representatives.
• State dislocated worker units.
• Local government.
© SHRM 2-30

EEO charge filed.
EEOC notifies respondent of charge via a letter.
EEOC sends respondent a copy of the charge.
If probable cause is found . . .
• EEOC attempts conciliation.
• Respondent required to provide remedies to settle.
EEOC reviews charge and assesses "probable cause."
If the EEOC does not make a determination . . .
Charging party has right to request right-to-sue letter after 180 days.
If probable cause is not found . . .
• EEOC notifies both parties.
• Charging party is notified of right to sue.
• EEOC involvement ends.
Charge is settled or may go to litigation with EEOC or private court.
© SHRM
Charging party must file suit in court within 90 days.
Charging party may file suit in court within 90 days.
2-31

Employee Polygraph Protection Act
(1988)
• Regulates the use of lie detectors.
• Allows the use of lie detector tests when:
– The employer is the federal, state, or local government.
– Prospective employees will work in security-sensitive, drug manufacturing, or intelligence situations.
– Current employees are under reasonable suspicion of involvement in workplace incident that results in economic loss.
• Employer may not discharge an employee based solely on test results or refusal to test.
© SHRM 2-32

© SHRM
Consumer Credit Protection Act
(1968)
Limits the amount of wages that can be garnished or withheld in any one week to satisfy creditors (generally
25% of disposable pay).
Prohibits employers from terminating an employee for one single indebtedness.
Garnishment restrictions do not apply to certain bankruptcy court orders or debts due for federal or state taxes.
2-32

• Applicant/employee must provide written authorization before a consumer report is ordered.
• Employer must provide:
• Written notice that a report may be used and time for a response to the report.
• Notice that an adverse action has been taken (must be provided within three days of the action).
•
A written response (within five days) to a request for complete disclosure.
© SHRM 2-34

Fair and Accurate Credit
Transactions Act
• Provides relief to employers using third parties for workplace investigations.
• Amends the FCRA by eliminating the consent and disclosure requirements when a third party conducts an investigation involving:
– Suspected misconduct.
– A violation of law or regulations.
– A violation of any preexisting written policies of the employer.
• Includes directives aimed at uncovering and preventing incidents of identity theft.
© SHRM 2-35

Amendment to FCRA by
Dodd-Frank Act
If any adverse action is taken against an applicant or employee, either partly or wholly because of information contained in a consumer report, additional notification requirements include:
 The individual’s credit score that was used.
 The range of credit scores possible under the credit scoring model used.
 Each of the factors that adversely affected the individual’s credit score
 The date the score was created.
 The name of the consumer reporting agency or person that furnished the credit score.
© SHRM 2-36

• The term “protected classes” refers to people who are covered under a federal or state antidiscrimination law.
• Laws require employment decisions to be joband business-related and not made on the basis of:
– Race.
– Sex.
– Ethnicity.
– Religion.
–
–
–
–
Age.
Color.
Military/veteran status.
Disability.
© SHRM 2-37

Disparate treatment
• Treating protected classes differently than other employees or evaluating them by different standards.
Adverse or disparate impact
• Applying rules that have a negative effect on protected classes to all employees.
Perpetuating past discrimination
• Using employee referral programs that maintain racial inequity.
© SHRM 2-38

• Landmark case that recognized adverse impact discrimination.
• Established that employment discrimination need not be overt or intentional.
• Found that employment practices can be illegal even when applied to all employees.
• Places burden on the employer to prove that requirements are job-related.
© SHRM 2-39

McDonnell Douglas Corp. v. Green
• Landmark case that established criteria for disparate treatment .
• Ruled that a prima facie case can be shown if an employee:
– Belongs to a protected class.
– Applied for a job when the employer sought applicants.
– Was qualified and yet was rejected.
– Was rejected but the employer kept looking.
© SHRM 2-40

• Albemarle Paper v.
Moody
– Any test used for promotion/selection must be a valid predictor for job success.
• Washington v. Davis
– Disproportionate impact of a test does not warrant conclusion that it is purposely discriminatory.
© SHRM
• St. Mary’s Honor Center v.
Hicks
– An employee must prove that an employer’s reason for an adverse action is based on a lie and that the lie was to cover up discrimination.
• McKennon v. Nashville
Banner Publishing Co.
– After-acquired evidence cannot free an employer from discrimination liability.
2-41

• Annual reporting is required for:
– Employers with 100 or more employees.
– Federal contractors with at least 50 employees and contract of $50,000.
• Reports are due by
September 30.
© SHRM
• Posters and officially approved notices must be put in prominent locations where they can be seen by employees.
September 20XX
      
      
      
      

30
2-42

The EEO-1 report requires many employers to provide a count of their employees by job category and then by
A. job title, gender, and race.
B. race, ethnicity, and gender.
C. wage rate or salary range.
D. total number of male and female incumbents against placement goals.
© SHRM 2-43

• OFCCP final regulations apply to federal government contractors and subcontractors.
• For purposes of Title VII, the EEOC recommends that employers who are not federal contractors or subcontractors look to the OFCCP definition of applicant.
© SHRM 2-44

Final regulations require that:
• The individual expresses interest in employment over the Internet or related electronic data technology.
• The employer considers the individual for employment in a particular position.
• The individual’s expression of interest indicates that the individual possesses the basic qualifications for the position.
• The individual does not remove himself or herself from consideration at any point in the employment process.
© SHRM 2-45

• Federal government contractors must be able to identify, when possible, the race, gender, and ethnicity of applicants.
• Used to evaluate differences in selection rates among different groups to determine if there is adverse impact.
• Is obtained by:
– The use of paper or electronic self-identification form
(preferable).
– A visual survey of applicants.
© SHRM 2-46

Employers:
• Make efforts to increase presence of women, minorities, covered veterans, and disabled individuals in workplace.
• Take positive steps to correct their underutilization.
© SHRM 2-47

Organizational profile
Organizational display
© SHRM
Workforce analysis
Job group analysis
• Depicts staffing patterns to determine if barriers to equal employment opportunity exist.
• Provides a graphical representation of the organizational units.
• Lists job titles ranked from lowestto highest-paid within an organizational unit.
• Lists all job titles in each job group and shows jobs by functional (not departmental) alignment.
2-48

• Requires that organizations consider internal and external availability to determine the theoretical availability of women and minorities.
– Organization compares the percentages of women and minorities in each group with the theoretical availability.
– A variety of statistical methods can be used for calculating the comparison: “any difference rule,”
“80% rule” (“four-fifths rule”), “two standard deviations analysis.”
© SHRM
– Placement goals are set when the percentage of minorities or women is less than reasonably expected given their availability percentage.
2-49

Which of the following is frequently a trigger for an AA audit by the OFCCP?
A.
A surge of workers’ compensation claims
B. Membership in a technology-based industry
C. A mass layoff of management employees
D. A federal contract of over $10 million
© SHRM 2-50

Compliance review
Compliance check
Focused review
Off-site review
© SHRM 2-51

Corporate Management Compliance
Evaluations and the Glass Ceiling
Purpose
Designed to ensure that qualified minorities, women, persons with disabilities, and protected veterans do not encounter artificial barriers to future advancement into midlevel and senior corporate management.
© SHRM
Focus
Focuses on a contractor’s obligation to make goodfaith efforts to ensure that equal employment opportunity extends to all levels of the workforce.
2-52

© SHRM
Reverse discrimination
• Courts allow temporary preference to protected classes.
Quota vs. merit hiring
• Generally not allowed by the courts.
Bona fide occupational qualification
• Carefully scrutinized by courts.
2-53

Employment Practices Liability
Insurance
• EPLI covers businesses against claims by workers that their employee rights have been violated.
• Policies cover legal costs whether the company wins or loses.
• Policies usually do not cover:
– Punitive damages or civil and criminal penalties.
– Liabilities covered by other insurance such as workers’ compensation.
• Employer may have a duty to notify the carrier upon receipt of a letter from a lawyer, even if no claim has been filed. If not done, coverage could be waived.
© SHRM 2-54

Quid pro quo
© SHRM
Employee must give in to sexual demands or forfeit an economic benefit (job or raise).
Hostile environment
Sexual or discriminatory conduct creates a threatening or abusive work environment.
2-55

Meritor Savings Bank v. Vinson
• Held that sexual harassment violates
Title VII.
Harris v. Forklift
Systems, Inc.
• Established “reasonable person” standard.
Oncale v. Sundowner
Offshore Service, Inc.
• Same-gender harassment is actionable.
Faragher v. City of
Boca Raton and
Ellerth v. Burlington
Northern Industries
© SHRM
• Held employers liable for supervisory harassment that resulted in adverse employment action.
2-56

Employers are liable for discriminatory actions by their employees.
Employers must end harassment through intervention or discipline.
Employees should utilize preventive and corrective action opportunities.
© SHRM 2-57

 Have a written policy with a clear definition of harassment and a statement that it will not be tolerated.
 Establish a complaint procedure.
 Provide training and education.
 Investigate every complaint.
 Discipline if necessary.
 Communicate via multiple methods to management and employees.
© SHRM 2-58

Staffing Workforce Planning
• Provides qualified individuals for jobs in the organization.
• Addresses current and future needs for knowledge, skills, and abilities.
• Analyzes organizational workforce and prepares for future needs.
• Forecasts future conditions and identifies gaps between current and future staff.
© SHRM 2-59

© SHRM
Workforce Analysis Process
Supply Analysis
Demand Analysis
Gap Analysis
Solution Analysis
2-60

Determines the relationship between two variables.
Year
1
2
3
4
5
6
Business
Factor
(sales in millions)
$3.613
$3.748
$3.880
$4.095
$4.283
$4.446
Labor Productivity
(annual sales per employee)
$11,120
$11,120
$12,520
$12,520
$12,520
$12,520
HR Demand
(number of employees)
325
337
310
327
342
355
© SHRM 2-61

Plots the number of employees for the last six years and projects the trend out for two more years.
380
370
360
Number of
Employees
350
340
330
320
310
1 2 3 4 5 6 7 8
Years
© SHRM 2-62

• Most often expressed using an annualized formula.
• Calculated by dividing the number of separations per year by the average number of employees per month.
• 65 separations per year ÷ 225 average employees per month = 28.9% turnover.
• May also be calculated quarterly and used to project the annual turnover.
© SHRM 2-63

Projects future movement.
Inflow
Transfers 5
Promotions 4
New hires 15
Recalls 10
Total 34
Current
Staff
Outflow
Promotions 5
Resignations 13
Demotions 0
Retirements 4
Terminations 3
Layoffs 15
Total 40
© SHRM 2-64

Project the number of employees and the types of skills needed for the future.
Judgmental forecasts
• Managerial estimates
• Delphi technique
• Nominal group technique
© SHRM
Statistical forecasts
• Regression analysis
• Simulations
2-65

Organizational Approach to
International Business
SPHR only
Four terms describe how a firm manages its international operations.
Ethnocentric Polycentric Regiocentric Geocentric
© SHRM 2-66

Types of International Workers
• Short-term assignees
• Long-term assignees
• Sequential/rotational employees
• Commuting employees
(international commuters)
• Frequent flyers/extended
Ethnocentric Polycentric
• Stealth expats/stealth pats/stealth assignees
• Local hires (local nationals)
• Localized employees
SPHR only
• Permanent assignees
(permanent locals)
• Interns/trainees (temporary, nonimmigrants)
• Returnees
• Virtual employees
• Retirees
Geocentric
• Temporary (contingent) employees
• Temp-to-hire (temp-to-permanent) employees
• Outsourced employees
© SHRM 2-67

Job Analysis and Employee Jobs
Job analysis
Job description
Job specifications
Job competencies
Employee role/job
© SHRM 2-68

Knowledge
• Information necessary for task performance
Skills
• Level of proficiency needed for task performance
Abilities
• Capabilities necessary to perform job
© SHRM 2-69

© SHRM
Observation
Interview
Open-ended questionnaire
Highly structured questionnaire
Work diary or log
2-70

Organizational design
·
ADA
Legal defense
·
Termination
· Workers’ compensation
Affirmative action plan
Recruiting and selection
Job analysis
Compensation administration
Training
Establishing career paths/succession planning
Time management/ goal setting
Establishing performance standards/ performance appraisals
© SHRM 2-71

Summarize the most important features of a job.
Detail the required tasks, KSAs, responsibilities, and reporting structure.
Include the physical requirements of the job for ADA considerations.
Include duties that support exempt status.
© SHRM 2-72

Which of the following would MOST likely be an essential job function?
A. Devotes approximately 8% of time to direct customer contact
B. Regularly reviews engineering design documents
C. As time permits, participates in an ongoing employee committee assignment
D. May delegate template preparation to administrative support
© SHRM 2-73

Qualifications necessary for an incumbent to be able to perform the job.
Includes experience, training, education, licenses, and certification required; physical and mental demands; level of organizational responsibility.
Can be a separate section of the job description or a separate document.
Should reflect what is necessary for satisfactory performance, not what the ideal candidate should have.
© SHRM 2-74

Job competencies are the knowledge, skills, abilities, and personal characteristics that work together to produce outstanding performance.
They are the critical success factors needed to perform in a job or functional area.
Core competencies are aligned with key business objectives and/or values and contribute to organizational success.
© SHRM 2-75

© SHRM
2-7 Recruitment p.164-193
2-8 Flexible Staffing p.196-202
2-9 Selection p.206
–244
2-10 Retention p.248-261
2-11 Organizational Exit p.264-278
2-12 Employee Records p.282-294
2-76

The FIRST step in determining which candidates are qualified for an open position is a(n)
A. review of the job description.
B. assessment of the organization's ability to pay.
C.
review of the candidates’ résumés.
D. evaluation of internal candidates.
© SHRM 2-77

© SHRM
Job posting
Job bidding
Skill banks and skill tracking systems
Employee referrals
2-78

Former employees
Nontraditional labor pools
Minority recruiting
Previous applicants
Labor unions
Several
Possibilities
Trade and professional associations
School-to-work programs
Educational recruiting
Media advertising
Third-party sources
Walk-ins
The Internet
Social media
© SHRM 2-79

• Positions the organization as an
“employer of choice” in the labor market.
• Must be aligned with strategic plan, vision, mission, and values.
• Uses the same tools used to market the product to create an image of what it is like to work for the organization.
© SHRM 2-80

Short-term Long-term
• Time to recruit applicants
• Selection and acceptance rates
• Cost per applicant hired
• Quantity and quality of applicants
• EEO implications
• Performance of hires
• Turnover
• Absenteeism per hire
• Training costs
© SHRM 2-81

Evaluating Recruitment Sources
Qualified applicants 100
Total applicants 300
= 33%
Minority applicants 80
Total applicants 300
= 27%
Yield
Ratios
Offers extended 5
Qualified applicants 15
= 33%
Offers extended
Final interviews
Female applicants 185
Total applicants 300
= 62%
© SHRM 2-82

An organization made 30 offers, and 18 were accepted. What is the yield ratio of acceptance to offers?
A. 35%
B. 45%
C. 55%
D. 60%
© SHRM 2-83

• Uses alternative recruiting sources and workers who are not regular employees.
• The choice of arrangement depends on:
– Function.
– Level of supervision required.
– Time constraints.
– Financial constraints.
– Legal risks and liability.
© SHRM 2-84

• Organization and alternative staffing supplier share joint responsibility for alternative workers.
• Agreement summarizes:
– Legal relationship.
– Rights and obligations.
• Potential liability varies depending on the nature of the agreement.
© SHRM 2-85

© SHRM
Selection
Step 1: Analyzing application forms
Step 2: Interviewing
Step 3: Testing and background investigation
Step 4: Contingent job offer
Step 5:
Employment offer
2-86

Step 1: Analyzing Application Forms
Types of forms:
• Short forms
• Long forms
• Targeted application forms
• Weighted application forms
• Résumés
© SHRM
Uses:
• Serve as a prescreening device.
• Collect job-related, nondiscriminatory data.
• Call attention to red flags.
2-87

Most prescreening is done over the telephone.
• Structured
• Patterned
• Stress
• Directive
• Nondirective
• Behavioral
• Situational
• Group
All interview questions should be job-related and nondiscriminatory.
© SHRM 2-88

© SHRM
Stereotyping
Inconsistent questioning
First-impression error
Negative emphasis
Halo/ horn effect
Nonverbal bias
Contrast effect
Similar-to-me error
Cultural noise
2-89

An interviewer assumes that a woman will do poorly in a job that requires math and analytical skills. This interviewing bias is known as
A. horn effect.
B. cultural noise.
C. stereotyping.
D. negative emphasis.
© SHRM 2-90

Step 3: Testing and Background
Investigation
Tests
• Cognitive ability
• Personality
• Aptitude
• Psychomotor
• Assessment centers
• Honesty/integrity
• Polygraph
• Substance abuse
© SHRM
Background Checks
• Work reference
• Verification of academic credentials
• Credit history
• Motor vehicle
• Criminal background
2-91

• Ability to measure or predict behavior with consistency.
– Example: Scores for a test that is taken twice should be similar.
• The following errors may create inconsistent results:
– Failure to measure an important attribute
– Irrelevant questions in an interview
– Different time limits for people taking a test
– Rater bias in evaluating candidates
© SHRM 2-92

• Content validity
– Degree to which a test measures knowledge, skills, and abilities that are part of the job
• Construct validity
– Degree to which a test measures a trait such as intelligence
• Criterion-related validity
– Correlation of test results to job performance
• Predictive
• Concurrent
© SHRM 2-93

Predictors
·
Completed application form
·
Résumé data
·
Interview answers
·
Test scores
Criterion Variable
·
Performance evaluations
·
Productivity
·
Absenteeism
The greater the overlap between predictors and variables, the better the predictor.
Complete correlation = +1 or –1
© SHRM 2-94

Approaches to Establishing Criterion-
Related Validity: Concurrent Validity
Test employees on key attribute.
Measure employees' job performance.
Correlate two sets of numbers.
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Approaches to Establishing Criterion-
Related Validity: Predictive Validity
Measure all applicants on attribute.
Hire and wait for some time period.
Measure performance of newly hired employees.
Obtain correlation between these two numbers.
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• Helps a candidate make an informed decision.
• Allows the organization to objectively portray the job.
• Examples of job preview techniques may include:
– Workplace tours.
– Interviews with job incumbents.
– Job simulations.
– Video or CD-ROM presentations.
– Automated job telephone information line.
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A conditional job offer may depend on:
Additional tests.
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Verification of IRCA documents.
A medical exam (if job-related and consistent with business necessity).
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• Formally communicated through an offer letter.
• Clearly states terms of the offer.
• Avoids language that implies a contract
(states that employment is at will).
• Clarifies contingencies (physical exam).
• Clarifies acceptance details and deadline.
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• Agreement between employer and employee that explains the employment relationship.
– Express contract is based on oral or written words.
– Implied contract results from actions or conduct.
• Employment-at-will is presumed if a written employment contract does not exist.
© SHRM 2-100

Which type of employment situation would MOST likely warrant a written employment contract?
A. A part-time employee
B. A salesperson
C. A graphic artist
D. A department manager
© SHRM 2-101

The ability to keep talented employees in the organization.
• Involves strategic actions to keep high performers motivated and focused.
• Preserves and develops an organization’s human capital.
• Reduces voluntary turnover costs.
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Socialization Onboarding
Clear and consistent job expectations
Adequate resources
Clear and fair supervision
Training and development
Growth and promotional opportunities
Recognition Respect
Perceived equity
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Informal
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• Encompasses orientation.
• Teaches about the employee role in terms of task and socialization.
• Integrates the employee into the established organizational culture and norms.
• Builds relationships and creates a sense of acceptance.
Formal
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SPHR only
Helps identify and foster the development of high-potential employees.
Keeps talent in the pipeline.
Requires careful thought when selecting candidates.
Necessitates well-conceived training and development.
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• Manages the way people leave an organization.
• Layoffs or RIFs are based on:
– Skills.
– Work record.
– Seniority.
– Disparate impact implications.
– EEO/legal considerations.
• Management should document the criteria used to make layoff decisions.
• Separation should be considered a termination if there is no chance of a recall.
• Severance packages are not required by federal law.
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An organization is laying off 15% of its workforce due to declining global markets. What can HR do to help the remaining employees through the transition?
A. Run a series of regional focus groups with mid-level managers.
B. Publicize that exit interviews were conducted with all separated employees.
C. Regularly communicate with employees about ongoing business challenges.
D. Hold an organization-wide teleconference to address rumors.
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Constructive discharge
Retaliatory discharge
Coercion
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• Management must:
− Identify what units of the company are eligible to participate in a voluntary program.
− Communicate that the plan is voluntary.
• The plan must comply with the Older Worker’s
Benefit Protection Act.
− Voluntary waivers or claims under ADEA are valid only when waivers are “knowingly and voluntarily” made.
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The OWBPA requires that employees signing a waiver of their ADEA rights must
A. be given at least 14 days to consider the agreement.
B. receive severance pay or something of value.
C. consult an attorney prior to signing the waiver.
D. have at least three days to revoke the agreement after it is signed.
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• Gain candid information from departing employees.
• Are conducted most often when terminations are voluntary.
• Are conducted by a neutral party.
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• Exit form may be used to collect information.
• Comments are typically kept confidential.
• Assurance may be given that remarks will not be shared with a supervisor.
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Federal and state statutes
Status as a government contractor or subcontractor
Requirements may depend on …
Number of employees or purpose of record keeping
Industry, location, or customers
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Electronic Communication and
Record Keeping
• The record-keeping system must have reasonable controls to ensure the integrity, accuracy, authenticity, and reliability of the records kept in electronic form.
• The electronic records must be maintained in a safe and accessible place.
• The electronic records must be able to be converted to paper format.
• Adequate records management practices must be in place.
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