Chapter 11
Managing Human
Resource Systems
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MGMT7
The Human Resource Management Process
Federal Employment Laws
Employers may not discriminate in employment
decisions based on sex, age, religion, color,
national origin, race, disability.
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Major Federal
Employment Laws
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•
•
•
•
•
•
•
Equal Pay Act of 1963
Title VII of the Civil Rights Act of 1964
Age Discrimination in Employment Act of 1967
Pregnancy Discrimination Act of 1978
Americans with Disabilities Act of 1990
Civil Rights Act of 1991
Family and Medical Leave Act of 1993
Uniformed Services Employment and Reemployment
Rights Act of 1994
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Federal Employment Laws
Equal Pay Act of 1963
prohibits unequal pay for males and
females doing similar work
Civil Rights Act of 1964
prohibits discrimination on basis of
race, color, religion, gender, origin
Age Discrimination in
Employment Act of 1967
prohibits discrimination against
persons age 40 and over
Pregnancy Discrimination
Act of 1978
prohibits discrimination in employment
against pregnant women
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Federal Employment Laws (cont.)
Americans with
Disabilities Act of 1990
prohibits discrimination on the basis of
physical or mental disabilities
Civil Rights Act of 1991
strengthened the Civil Rights Act of 1964
Family & Medical Leave
Act of 1993
permits workers to take up to 12 weeks
of unpaid leave for pregnancy, etc.
Uniformed Services
Employment &
Reemployment Rights Act
prohibits discrimination against those
Adapted from Exhibit 11.2
serving in the Armed Forces
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Equal Employment Opportunity Commission
• The EEOC has investigatory, enforcement, and
informational responsibilities.
• It investigates charges of discrimination, enforces the
provisions of these laws in federal court, and publishes
guidelines (Uniform Guidelines on Employee Selection
Procedures)that organizations can use to ensure they are
in compliance with the law.
• These guidelines define two important criteria that are
used to determine whether companies have engaged in
discriminatory practices:
– Disparate treatment
– Adverse Impact
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Adverse Impact and
Employment Discrimination
Disparate
Treatment
Adverse
Impact
Four-Fifths
Rule
1.2
Intentional discrimination that
results in equally qualified
people being treated differently
Unintentional discrimination that
works to the disadvantage of
member of protected groups
Comparison of selection rates of a
protected to a nonprotected group,
to determine if adverse impact has
occurred
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Determining Adverse Impact:
The Four-fifths Rule
Source: Adoption of Questions and Answers to Clarify and Provide a Common Interpretation of the Uniform
Guidelines on Employee Selection Procedures, Federal Register 44, no. 43 (March 2, 1979): 11998.
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Exemptions From Antidiscrimination Regulations
• Bona Fide Occupational Qualification
(BFOQ)
– Suitable defense against a discrimination
charge only where age, religion, sex, or national
origin is an actual qualification for performing
the job.
• Business Necessity
– Work-related practice that is necessary to the
safe and efficient operation of an organization.
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Sexual Harassment
A form of discrimination in which unwelcome
sexual advances, request for sexual favors, or
other verbal or physical conducts of a sexual
nature occurs.
•Quid pro quo sexual harassment
•Hostile work environment
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Sexual Harassment
Quid
Pro Quo
Hostile
Work
Environment
employee outcomes depend on
whether an individual submits to
sexual harassment
unwelcome and demeaning sexually
related behavior creates an
intimidating and offensive work
environment
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Common Managerial Mistakes
in Sexual Harassment Laws
•
Assuming:
That
the victim and harasser must be of
the opposite sex
•
That harassment can only occur between
coworkers or supervisors and
subordinates
•
That only victims can file complaints
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What Should Managers Do?
• Respond immediately
• Write a clear sexual harassment policy
• Establish clear reporting procedures
• Be aware of local and state laws and
enforcement agencies
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Job Analysis
A purposeful, systematic process for collecting
information on the important work-related
aspects of a job.
•Work activities
•Tools and equipment used to do to the job
•Context in which the job is performed
•The personnel requirements for performing
the job
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Results of Job Analysis
• Job description
– a written description of the basic tasks,
duties, and responsibilities required of an
employee holding a particular job
• Job specification
– a summary of the qualifications needed to
successfully perform a job
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Using Job Analysis,
Descriptions, Specifications
• Used throughout the staffing process to
ensure that selection devices and
decisions are job-related.
• Job analyses, descriptions, and
specifications help companies meet legal
requirements that HR decisions be jobrelated.
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1
Job Description for an Employment Assistant
© 2010 South-Western, a part of
Cengage Learning. All rights reserved.
4–20
1
Job Description for an Employment Assistant (cont’d)
© 2010 South-Western, a part of
Cengage Learning. All rights reserved.
4–21
1
Job Description for an Employment Assistant (cont’d)
© 2010 South-Western, a part of
Cengage Learning. All rights reserved.
4–22
Recruiting
• The process of developing a pool of
qualified applicants.
Internal Recruiting
The process of developing a pool of
qualified job applicants from people who
already work within the company.
• Job posting
• Career path
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External Recruiting
Process of developing a pool of qualified
job applicants from outside the company.
•Advertising
•Employee referrals
•Walk-ins
•Outside organizations
•Employment services
•Special events
•Internet job sites
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Selection
• Selection
– the process of gathering information
about job applicants to decide who should
be offered a job
• Validation
– the process of determining how well a
selection test or procedures predict
future job performance
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Application Forms and Résumés
• Application forms may only ask for
valid, job-related information
• Résumés pose a problem because of
false data.
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References and
Background Checks
• Employment references
– contacting previous employers or coworkers
to learn more about the candidate
• Background checks
– used to verify accuracy of information that
applicants provide about themselves
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Getting Background Information
• Conduct criminal record checks
• Ask applicants to sign a waiver to check
references, run a background check, or
contact people with knowledge of work
history
• Ask applicants if there is anything they
want the company to know
• Consider hiring a private investigator
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Selection Tests
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•
•
•
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Specific ability tests
Cognitive ability tests
Biographical data (biodata)
Work sample tests (performance tests)
Assessment centers
– in-basket exercise
– leaderless group discussion
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Don’t Ask! Topics to Avoid in an Interview
1. Children
2. Age
3. Disabilities
4. Physical Characteristics
5. Name
6. Citizenship
7. Lawsuits
8. Arrest records
9. Smoking
10.AIDS/HIV
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Clerical Test Items Similar to Those Found on the
Minnesota Clerical Test
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Interviews
• Unstructured interviews
– free-flow of questions
• Structured interviews
– interviewer uses standard set of prepared
questions
• Semistructured interviews
– some structure combined with interviewer
judgement
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Structured Interview Questions
• Situational questions
– ask applicants how they would respond in a
hypothetical situation
• Behavioral questions
– ask applicants what they did in previous jobs that
were similar to the job for which they are applying
• Background questions
– ask applicants about their work experience,
education, and other qualifications
• Job-knowledge questions
– ask applicants to demonstrate their job knowledge
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Guidelines for Conducting Effective Structured Interviews
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Training and Training Needs
• Training
– providing opportunities for employees to
develop the job-specific skills, experience,
and knowledge they need to do their jobs
or improve their performance
• Needs assessment
– the process of identifying and prioritizing
the learning needs of employees
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Determining Training Needs
Identify
Performance
Deficiencies
Listen to
Customer
Complaints
Conducting
Needs
Assessments
Survey
Employers
and Managers
Test Employee
Skills and
Knowledge
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Training Objectives and Methods
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E-Learning
• Advantages
– reduce travel costs
– increase productivity
– decrease employee stress
• Disadvantages
– not always the appropriate method
– not effective for changing behavior or developing problemsolving skills
– require significant investment in technology
– many employees find it boring and unengaging
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Evaluating Training
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Reactions
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Learning
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how much employees actually changed their on-the-job
behavior
Results
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how much employees improved their knowledge or skills
Behavior
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how satisfied trainees were with the program
how much training improved job performance
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Performance Appraisal
The process of appraising how well
employee are doing their jobs.
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Accurately Measuring
Job Performance
• Objective performance measures
– measures of performance that are easily
and directly counted or quantified (output,
scrap, sales, etc)
• Subjective performance measures
– require that someone judge or assess a
worker’s performance
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Subjective Performance Appraisal Scales
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Rater Training
• Frame-of-reference training
– a group of trainees learns how to do
performance appraisals by watching a video of
an employee at work and then evaluating the
person’s performance
– a trainer shares his or her evaluations, and
trainees’ evaluations are compared with
experts’
– expert explains his or her evaluation
– process repeated until the differences are
minimized
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Sharing Performance Feedback
• 360-degree feedback
– feedback comes from four sources: the boss,
subordinates, peers and coworkers, and the
employees themselves
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What to Discuss in a Performance Appraisal
Feedback Session
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Improving Performance Reviews
• Separate developmental feedback from
administrative feedback
• Performance appraisal feedback sessions
should be based on employee selfappraisals
• What people do with the feedback matters;
it helps if people discuss their performance
feedback with others, and discuss it with
people who provided it
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Compensation
The financial and nonfinancial rewards
that organizations give employees in
exchange for their work.
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Compensation Decisions
Pay
Level
• Job
evaluation
Pay
Variability
Pay
Structure
• Piecework
• Hierarchical
• Commission
• Compressed
• Profit
sharing
• Employee
stock
ownership
plans
Employment
Benefits
• Cafeteria
plans
• Flexible
plans
• Payroll
deductions
• Stock
options
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Pay-Level Decisions
• Job evaluation is used to determine the worth of
jobs
– pay the “going rate”
• Should workers be paid at, below, or above current
market wage?
– attracts a larger, more qualified pool of applicants
– increases the rate of job acceptance
– decreases the time it takes to fill positions
– increases the time that employees stay
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Employment Benefits
• Compensation other than direct wages
• Employee benefits are legally mandated:
– Social Security
– worker’s compensation
– unemployment insurance
• Cafeteria benefit plans
– employees can select from optional benefits
• Payroll deductions
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Employment Separation
A broad term covering the loss of an
employee for any reason.
•Involuntary separation
•Voluntary separation
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Terminating Employees
• Often mismanaged
• Minimize problems in firing employees
– In most situations, firing should not be the
first option.
– Employees should be fired only for a good
reason
• wrongful discharge.
• Employment-at-will.
• Employees should always be fired in
private.
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Downsizing
The planned elimination of jobs in a
company.
May actually decrease productivity and
lead to loss of skilled workers.
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Guidelines for
Conducting Layoffs
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•
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Provide clear reasons and explanations for the
layoffs.
To avoid laying off employees with critical or
irreplaceable skills, knowledge, and expertise, get
input from human resources, the legal department,
and several levels of management.
Train managers in how to tell employees that they
are being laid off (i.e., stay calm; make the meeting
short; explain why, but don’t be personal; and provide
information about immediate concerns such as
benefits, finding a new job, and collecting personal
goods).
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Guidelines for
Conducting Layoffs
• Give employees the bad news early in the day,
and try to avoid laying off employees before
holidays.
• Provide outplacement services and counseling
to help laid-off employees find new jobs.
• Communicate with employees who have not
been laid off to explain how the company and
their jobs will change.
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Retirement
• Early retirement incentive program
(ERIP)
– offer financial benefits to employees to
encourage them to retire early.
– reduces number of employees, lowers costs,
creates new openings
• Phased retirement
– employees transition to retirement by working
reduced hours before completely retiring
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Employee Turnover
The loss of employees who choose to leave
the company.
•Functional turnover(encouraged)
–the loss of poor-performing employees
•Dysfunctional turnover(discouraged)
– the loss of high performing employees
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