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Human Resource Management Exam 1 Ch 1-5

Human Capital
an organization’s employees described in terms of their training, experience, judgment, intelligence, relationships, and insight

(employees are resources of the employer)

Role of HRM in an organization
policies, practices, and systems that influence employees behavior, attitudes, and performance
HRM Functions (a really tall person can’t even pull enough corn)
– Analyzing work and designing jobs
– Attracting potential employees (recruiting); choosing employees (selection)
– Teaching employees how to perform their jobs and preparing them for the future (training and development)
– Evaluating their performance (performance management)
– Rewarding employees (compensation and benefits)
– Creating a positive work environment (employee relations)
– Policy creation and communication (personnel policies)
– Record keeping, information, and workforce analytics (employee data and information systems)
– Ensure lawful behavior, reporting, inspections (compliance with laws)
Shifts in Job Trends
focus not on the population as a whole but on the number and characteristics of people who will be working or looking for work

(trends in today’s labor force)
-an increase in the percentage of older workers
-the percentage of non-Hispanic white employees is expected to decrease from 70% to 65% of the workforce
-the percentage of Hispanic workers will increase from about 14% to 18% of the workforce
-the # of females employees will continue to grow faster than the # of male employees

Performance Management
process of ensuring that employees’ activities and outputs match the organization’s goals

– HR may be responsible for developing or obtaining questionnaires and other devices for measuring performance

External labor market
-individuals who are actively seeking employment
– HR professionals need to be aware of trends in the composition of the external labor market because these trends affect the organization’s options for creating a well-skilled, motivated internal labor force
– #’s and kinds of people determine kinds of human resources available to an organization
Employer support for hiring non-U.S. citizens
-change that’s affecting the U.S. labor force is that it’s growing more diverse in racial, ethnic, and gender terms
– 2022 workforce is expected to be 78% white, 12% African American, and 10% Asian and other minorities
– one important source of racial and ethnic diversity is immigration
Future health care expense trends
Bureau of Labor Statistics forecasts that between 2012 and 2022, most new jobs will be in service occupations, especially health care and social assistance
Employee Empowerment
giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service
– shifts the recruiting focus away from technical skills and toward general cognitive and interpersonal skills
– Employees who have responsibility for a final product or service must be able to listen to customers, adapt to changing needs, and creatively solve a variety of problems
High Performance Work Systems
organizations that have the best possible fit between their social system (people and how they interact) and technical system (equipment and processes)
– HRM is playing an important role in helping organization’s gain and keep an advantage over competitors by becoming high-performance work systems

Three key trends occurring in today’s high- performance work system
1) Reliance on knowledge workers
2) Empowerment of employees to make decisions
3) Teamwork

(Equal Employment Opportunity Commission)
condition in which all individuals have an equal chance for employment, regardless of their race, color, religion, sex, age, disability, or national origin

– The federal government’s efforts to create EEO include:
Constitutional amendments
Executive orders
Court decisions that interpret the law

Americans with Disabilities Act of 1990
(EEOC Legislation)
– Protects individuals with disabilities from being discriminated against in the workplace.
– Prohibits discrimination based on disability in all employment practices.
– Employers must take steps to accommodate individuals covered by the act.

The ADA defines disability as a physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment, or being regarded as having such an impairment

Equal Pay Act of 1963
(major federal law requiring EEO)
requires equal pay for men and women who are doing work that is equal in terms of skill, effort, responsibility, and working conditions
Utilization Analysis
Government’s Role in Providing For EEO: Office of Federal Contract Compliance Procedures (OFCCP)

Plan must include utilization analysis, goals and timetables and action steps

Disparate impact
Businesses’ Role in Providing for EEO: Avoiding Discrimination

A condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities

Examples of employment practices that might result in disparate impact include pay, hiring, promotions, or training

Workplace Safety: Occupational Safety and Health Act (OSH Act)

Authorizes federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate commerce

OSHA Responsible for:
– Inspecting employers
– Applying safety and health standards
– Levying fines for violation

Job Evaluation
(Job analysis is the process of getting detailed in-formation about jobs. It includes preparation of job descriptions and job specifications)

Job analysis provides a foundation for carrying out many HRM responsibilities, including work redesign, human resource planning, employee selection and training, performance appraisal, career planning, and job evaluation to determine pay scales

Self-managing teams
(designing jobs that motivate)

– Have authority for an entire work process or segment
– Team members motivated by autonomy, skill variety, and task identity

when teams are self-managed and team members are highly involved in decision making, teams are more productive, employees more satisfied, and managers are more pleased with performance. Teams also tend to do better when each team member performs a variety of tasks and when team members view their effort as significant

Job Extension
Enlarging jobs by combining several relatively simple jobs to form a job with a wider range of tasks

In a job design, job enlargement refers to a broadening of the types of tasks performed
The objective of job enlargement is to make jobs less repetitive and more interesting

Methods of job enlargement include:
Job extension
Job rotation

Job Enrichment
– Empowering workers by adding more decision-making authority to jobs
– Based on Herzberg’s theory of motivation
– Individuals motivated more by intrinsic aspects of work
Job Rotation
Enlarging jobs by moving employees among several different jobs

In a job design, job enlargement refers to a broadening of the types of tasks performed
The objective of job enlargement is to make jobs less repetitive and more interesting

Methods of job enlargement include:
Job extension
Job rotation

Workflow Analysis
considers the work processes used to generate the outputs identified; identifies the inputs used to carry out the processes

– amount and quality of a work unit’s outputs
– work processes required to produce these outputs
– inputs used to carry out processes and produce outputs

The first step in human resource planning is personnel forecasting

The primary goal is to predict which areas of the organization will experience labor shortages or surpluses

Forecasting steps:
1) Forecast labor demand
2) Determine labor supply
3) Determine labor surplus or shortage

Transitional Matrix
a chart that lists job categories held in one period and shows proportion of employees in each of those job categories in a future period

Answers two questions:
1) “Where did people in each job category go?”
2) “Where did people now in each job category come from?”

Ways to Manage a Labor Surplus
options for reducing a surplus include
– Downsizing
– Pay or hour reductions
– Demotions
– Transfers
– Work sharing
– Hiring Freeze
– Natural attrition
– Early retirement
– Retraining
Ways to Manage a Labor Deficit
options for avoiding a shortage include
– Overtime (best suited for short-term labor shortages)
– Temporary employees
– Outsourcing
– Retrained transfers
– Turnover reductions
– New external hires
– Technological innovation
Pay Strategies
Lead-the-market pay strategies—Pay is an important job characteristic for almost all applicants. Organizations have a recruiting advantage if their policy is to take a “lead-the-market” approach to pay—that is, pay more than the current market wages for a job

– Higher pay can also make up for a job’s less desirable features, such as working on a night shift or in dangerous conditions

– Organizations that compete for applicants based on pay may use bonuses, stock options, and other forms of pay besides wages and salaries

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