MGMT 410, Fall 2009 Final Study Guide The final will be a comprehensive exam. The material will be primarily drawn from the text, which has been required reading throughout the semester. Please be familiar with the following concepts. Also, be familiar with HRM terms and their respective definitions. Probably, most of you have already done this in preparation for exams one and two, but it would be beneficial to take this study guide, take the text, and review the following points. As you review, please pay close attention to the terms defined in the margins of the text. Most of these bullet points correspond to the learning objectives in your text. Chapter 1: HRM: Gaining a competitive Advantage Roles and activities of a company?s human resource management function Analysis and design of work Hr planning Recruiting Selection Training and development Compensation Performance management Employee relations Implications of the economy, the makeup of the labor force, and ethics for company sustainability Sustainability Challenge: refers to the ability of a company to survive and succeed in a dynamic competitive environment Technology Challenge: Internet has changed how and where we work. Changed skill requirements Led to changes in company structure and reporting relationships Global Challenge: International Markets. Global economy Offshoring and Onshoring Labor Force make-up: diversity and the growth of the Asian and Hispanic populations. By including a wide array of people in the work force and including their perspectives, a company can make better decisions about which products and services will appeal to a wide range of consumers. This is an example of how managing cultural diversity can lead to a competitive advantage. Ethics: There are three basic standards: HRM practices must result in the greatest good for the largest number of people, employment practices must respect basic human rights of privacy, due process, consent, and free speech, and managers must treat employees and customers equitably and fairly. How human resource management affects a company?s balanced scorecard The balanced scorecard gives managers the opportunity to look at the company from the perspective of internal and external customers, employees and shareholders. The balanced scorecard should be used to: Link human resource management activities to the company?s business strategy. Evaluate the extent to which the human resource function is helping the company?s meet it?s strategic objectives. What companies should do to compete in the global marketplace International Markets. Global economy Offshoring and Onshoring The characteristics of the workforce and how they influence human resource management Under this area, please be familiar with changes in technology and how that has affected the basic composition of the work force. For example, we now have an ever increasing number of employees telecommuting, companies are offering flexible working schedules, we have an increased number of on-call and temporary workers. This has changed the structure of organizations and has changed reporting relationships. Human resource management practices that support high-performance work systems High Performance Work Systems Selective Staffing Information Sharing Job Analysis Access to profit-sharing or other incentive plans Formal Training Merit-based promotions Chapter 2: Strategic HRM Differences between strategy formulation and strategy implementation Strategy formation- Administrative linkage One-way linkage Two-way linkage Integrative linkage Strategy implementation Organizational structure Task design Selection Training Development of people Reward system Information systems The components of the strategic management process Strategy formulation strategy implementation Role of the HRM function in strategy formulation (making sure the firm has the right employees with the right skills required by the strategic plan, and developing ?controls? to ensure that those employees are motivated to help achieve that strategic plan) mission goals swot strategic choice The linkage between HRM and strategy formulation (administrative, integrative, etc) Administrative- HR is focused on day-to-day activities. Just engages in administrative work. One-way- the firm?s strategic business planning function develops the strategic plan and then informs the HRM function of the plan. Two-way- allows for consideration of human resource issues during the strategy formulation process. Integrative- based on continuing rather than sequential. HRM function is involved in both strategy formulation and implementation. Be familiar with the HRM practices or systems that enable a company to enact strategy (job analysis and design, recruitment/selection, training/development, performance management, compensation, labor/employee relations) The different HRM issues and practices associated with various directional strategies (concentration, M&A, etc.) External growth- emphasis on acquiring vendors and suppliers or buying businesses that allow a company to expand into new market places. Internal growth- a focus on new market and product development, innovation, and joint ventures. Concentration- a strategy focusing on increasing market share, reducing costs, or creating and maintaining a market niche for products and services. Mergers and acquisitions- HRM plays a role in evaluating the merger opportunity and implementation. Downsizing- the planned elimination of large numbers of personnel, designed to enhance organizational effectiveness. Chapter 3: The Legal Environment: Equal Employment Opportunity and Safety The major federal laws that require equal employment opportunity and the protections provided by each of these laws (see table 3.1) Title VII- to fail or refuse to hire or to discharge any individual, or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment because of such individual?s race, color, religion, sex, or national origin Americans with Disabilities Act-Prohibits discrimination against a ?qualified? individual with a disability Civil Rights Act of 1991- compensatory and punitive damages awarded. Understand protected characteristics - race, color, religion, sex, age, disability, or national origin The roles, responsibilities, and requirements of the federal agencies responsible for enforcing equal employment opportunity laws EEOC ? Equal Employment Opportunity Commission (investigation/resolution, information gathering, issuance of uniform guidelines) OFCCP ? Office of Federal Contract Compliance Programs (Executive orders covering federal contractors: Utilization analysis, goals & timetables, action steps) Identify the theories of discrimination under Title VII of the Civil Rights Act and apply these theories to different discrimination situations (table 3.3, Disparate treatment & BFOQ, Disparate Impact & 4/5th Rule, Reasonable Accommodation for disability or religion) Disparate treatment- individual, intent Disparate Impact- group, non-intent Understand the protection offered under Title VII from employer threats or intimidation for reporting illegal acts Identify behavior that constitutes sexual harassment and list things that an organization can do to eliminate or minimize it (Quid Pro Quo and hostile working environment; Organizations developing policies of zero tolerance for sexual harassment, training, reporting mechanisms, and disciplinary actions) Have a strong and clear policy against sexual harassment Demonstrate that employees are aware of sexual harassment policies (sign to indicate they?ve read policies) Clear mechanisms for quickly dealing with SH claims internally Consistent and swift punishment for offenders Identify the major provisions of the Occupational Safety and Health Act (1970) and the rights of employees that are guaranteed by this act. (Definition of OSHA, employee rights, OSHA inspections, citations and penalties, safety awareness programs, identifying and communicating job hazards) OSHA- the law that authorizes the federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate commerce OSHA inspections- controlled by the department of labor Citations and penalties- employer must post this Safety awareness programs- instill symbolic and substantive changes in th organization's emphasis on safety. identifying and communicating hazards- discuss potential problems related to safety Chapter 4: The Analysis and Design of Work Be familiar with the work-flow process, identifying the output, activities, and inputs in the production of a product or service Work-flow analysis is useful because it provides a means for the managers to understand all the tasks required to produce a high-quality product as well as the skills necessary to perform those tasks. Considers the job in the context of the organization and its relation to other jobs. Output- product or serviceActivity-tasks Input- raw mat., equipment, people Importance of job analysis in HRM Traditionally speaking job analysis has been considered the foundation of human resource management. Be able to understand work-flow process Make Intelligent Hiring Decisions To Measure Performance and decide compensation Also important to avoid legal hassles by proving job relatedness Strengths and weaknesses of various formal job analysis techniques so that you can choose the right job analysis technique for the target HR activity (PAQ or the FJAS ) Position Analysis Questionnaire (PAQ) Task Analysis Inventory Fleishman Job Analysis System (FJAS) Good places to start when doing a JA: Dictionary of Occupational Titles (DOT) O*NET Different approaches to job design/redesign (Mechanistic approach, motivational approach, ergonomics, perceptual-motor) Mechanistic approach: Scientific management, one of the earliest mechanistic approaches, sought to identify the one best way to perform the job through the use of time-and-motion studies. Motivational approach: focuses on the job characteristics that affect the psychological meaning and motivational potential of job design. A focus on increasing job complexity through job enlargement, job enrichment, and the construction of jobs around socio technical systems. Biological approach: Comes primarily from the sciences of biomechanics, or the study of body movements Is referred to as ergonomics, or the concern with examining the interface between individuals' physiological characteristics and the physical work environment. Minimizes physical strain in the work environment The trade-offs among the various approaches to designing jobs (table 4.5) Chapter 5: HR Planning and Recruitment Align a company?s strategic direction with its HR planning (forecasting labor demands/shortages) What is the strategic direction of the firm? What talent is needed in our workforce to ensure that the strategy is successfully achieved? Determine the labor demand for workers in various job categories (leading indicators, transitional matrix) Internal movements caused by transfers, promotions, turnover, retirements, etc Transitional matrices identify employee movements over time Determining Labor Surplus or Shortage Advantages and disadvantages of various ways of eliminating a labor surplus and avoiding a labor shortage (table 5.2 & 5.3 understand speed, human suffering, and recoverability) Labor Surplus downsizing pay reductions demotions Labor shortage overtime temporary employees outsourcing Various recruitment policies that organizations adopt to make job vacancies more attractive (internal vs. external recruiting, employment-at-will policies) personnel policies recruitment sources characteristics of the recruiter Recruitment sources, their relative advantages and disadvantages, and the methods for evaluating them (internal vs external sources, direct applicants, referrals, media, internet, public/private employment agencies) internal forces: Nominations by supervisors Referrals from peers In-house temporary pools Succession plans Postings via Organizational intranets External forces: Direct applicants Referrals Former employees Newspaper advertisements Colleges and universities Employment agencies Executive search firms Recruiter?s role in the recruitment process, the limits the recruiter faces, and the opportunities available (recruiter traits ?warmth?/ ?realism?, recruiter impact) Recruiter?s functional area recruiter?s traits recruiter?s realism enhancing recruiter impact Chapter 6: Selection and Placement The basic scientific properties of personnel selection methods, including reliability (test/re-test, correlation coefficients), validity (criterion-related, predictive/concurrent validation, content validation), and generalizability Reliability- Consistency or stability of a measure Validity- Determines a relationship between selection test scores and job performance. Generalizability- is the degree to which the validity of a selection method established in one context extends to other contexts. Utility- is the degree to which the information provided by selection methods enhances the effectiveness of selecting personnel in organizations. The utility of any test (the people selected using these reliable and valid selection techniques will have a higher level of productivity; an efficient recruitment process will also allow the firm to be more selective; these factors will contribute to the overall productivity/profitability of the firm) The government?s role in personnel selection decisions (Civil rights act of 1991, establishes employer?s obligation to establish business necessity, allows for punitive damages Age Discrimination Act of 1967 protects employees over 40 Americans with Disabilities Act of 1991, protects individuals with mental or physical disabilities Executive Order 11246 establishes affirmative action requirements for Federal Contractors List the common methods used in selection HR Structured interviews (situational: experience based and future oriented) References, bio-data, applications Ability tests: physical & cognitive ability ? understand the importance of tying back to job requirements, and the potential for adverse impact against protected groups Personality inventories (here, please be aware that the book differs from class lecture. The Big-Five personality inventory shows validity & reliability for selection purposes) Honesty tests and drug test The degree to which each of the common methods used in selection HR meets the demands of reliability, validity, generalizability, utility, and legality (table 6.5, again be aware that personality testing is showing better rates of validity and generalizability than indicated in the text). Chapter 7: Training Understand how training can contribute to companies? business strategy Macro is important to the success of America in the future Micro is important if the firm wants to maintain a competitive advantage Training/Instructional Design process Components of a need assessment Employees? readiness for training Creating a learning environment Ensuring transfer of training Selecting training methods Importance of Evaluation Strengths and weaknesses of presentation, hands-on, and group training methods Explain the potential advantages of e-learning for training collaborate and interact control what they learn they determine the speed and when they learn Evaluate the effectiveness of a training programs training outcomes reasons for evaluating training evaluation designs pre-test/post-test ROI Special training issues cross-cultural preparation workforce diversity Socialization and Orientation This can reduce turnover People are better able to perform their job after understanding the company Chapter 8: Performance Management Distinguish: Performance management, performance appraisal, performance feedback Performance Management- the means through which managers ensure that employees' activities and outputs are congruent with the organization's goals. performance appraisal- the process through which an organization gets information on how well an employee is doing his or her job performance feedback- the process of providing employees information regarding their performance effectiveness Three general purposes of performance management Strategic Link employee activities to org?s goals Administrative Pay raises Promotions Discipline Recognition of individual performance Developmental Strengths Developmental areas Identify the five criteria for effective performance management systems Strategic congruence-Link activities to strategy, goals, and culture Validity- extent to which a performance measure assesses all the relevant ? and only the relevant ? aspects of performance Reliability-Measure of consistency Acceptability-Do employees believe the system is fair? Specificity-What is expected? How can employees meet expectations? Approaches to performance management, the specific techniques used in each approach, and the way these approaches compare with the criteria for effective performance management systems Comparative (ranking, forced distribution, paired comparison) Attribute (Graphic rating scales, mixed-standard scales) Behavioral (critical incidents, BARS, BOS, OBM, assessment centers) Results (MBO, ProMES) Quality (Combination approach using multiple sources: assessing behavior, results, and attributes of the person) Advantages and disadvantages of the different sources of performance information manager peers subordinate upward feedback self-appraisal customers 360 degree feedback Distinguish types of rating errors and explain how to minimize each in a performance evaluation (similar to me, contrast, halo & horns, etc) ?Similar to me? Contrast- comparing individuals to one another instead of the objectives Distributional Leniency Strictness Central tendency Halo- one positive aspect causes all other aspects to be rated positively Horns- opposite ?Recency? and ? Primacy? Effective performance feedback Feedback should be given frequently, not just once a year The Annual meeting Managers and employees Causes of performance problems lack of employee ability misunderstanding of expectations lack of feedback need for training Chapter 9: Employee Development Development vs training, development and careers (protean career) Training focuses on the current job and meeting the demands of that job. Development focuses on future responsibilities and potential jobs Approaches to employee development Formal education Assessment Job experiences Relate how assessment of personality type, work behaviors, and job performance can be used for employee development Understand how job experiences can be used for skill development relationships problems demands tasks Elements of a successful mentoring program Why are they used: Socialize new employees Provide an informal network for employees Pass on values of organizational leaders to rest of the organization Provide an outlet for advice and stress management Effective characteristics: Participation is voluntary Flexible Matching Process Mentors are chosen on ability and willingness Purpose is clearly understood Minimum level of contact is specified Program is evaluated Employee development is rewarded in the organization Steps in the Career management process Self-assessment Reality check Goal setting Action planning Special Issues in Employee development glass ceiling- barrier to advancement (women and minorities) succession planning- upper management retires and there is nobody to replace them dysfunctional behaviors insensitivity to others not a teem player poor conflict management skills inability to change Chapter 10: Employee Separation and Retention Distinguish between involuntary and voluntary turnover involuntary- initiated by the organization voluntary- initiated by employees Principles of justice: List the major elements that contribute to perceptions of justice and determinants of procedural justice (table 10.1) consistency- the procedures are applied consistently across time and other persons bias suppression- the procedures are applied by a person who has no vested interest in the outcome and no prior prejudices regarding the individual information accuracy- the procedure is based on information that is perceived to be true correctability- the procedure has built-n safeguards that allow one to appeal mistakes or bad decisions representativeness- the procedure is informed by the concerns of all groups or stakeholders affected by the decision, including the individual being dismissed ethically- the procedure is consistent with prevailing moral standards as they pertain to issues like invasion of privacy or deception. progressive discipline- documentation of warnings alternative dispute resolution-resolving issues outside of court outplacement counseling- counseling to help displaced employees manage the transition from one job to another Managing voluntary turnover: relationship between job satisfaction and various forms of job withdrawal Process of job withdrawal identify the major source of job satisfaction in work contexts Methods to measure and monitor job satisfaction self reports surveys Chapter 11: Pay Structure Decisions List the main decision areas and concepts in employee compensation management Describe the major administrative tools used to manage employee compensation pay structure individual pay job structure Importance of competitive labor market and product market forces in compensation decisions product market- firms that compete on price labor market- firms that need employees to compete against other firms. Key vs. nonkey jobs, compensable factors, job evaluation, developing a pay structure key jobs- benchmark jobs, common non-key jobs- jobs that are unique to the organization; cannot be compared compensable factors- the characteristics of jobs that an organization values and chooses to pay for. Job evaluation- an administrative procedure used to measure internal job worth developing a pay structure- market survey approach pay-policy line pay grades Significance of process issues such as communication in compensation management participation-involve as many people as possible communication-explain why a pay structure is decided Current challenges and new developments in the design of pay structures delayering and banding U.S. Labor force executive pay Understand where the United States stands from an international perspective on pay issues instability of labor costs skill levels productivity non-labor considerations- location of production Understand the reasons for controversy over executive pay some executives make 400 times that of the average employee Be familiar with the regulatory framework for employee compensation (comparable worth vs market rate; Fair Labor Standards Act (FLSA) establishes minimum wage) comparable worth- advocates remedies for any under-evaluation of women's jobs FLSA- established minimum wage in 1938 Chapter 12: Recognizing Employee Contributions with Pay How pay influences individual employees and theories that explain the effect of compensation on individuals energize direct control Reinforcement theory expectancy theory agency theory Pay programs for recognizing employees? contributions to the organization?s success Merit Pay Incentive Pay Profit Sharing Ownership Gain Sharing Skill-based balanced scorecard List the advantages and disadvantages of the pay programs merit- forces employees to rank incentive pay- can encourage unethical behavior profit sharing- goes to everyone gain sharing- need strong commitment Discuss issues related to performance-based pay for executives top executive pay is higher every year regardless of profitability or stock market performance Importance of process issues such as communication in compensation management create a rational behind any pay change Match the pay strategy to the organization?s strategy Chapter 13: Employee Benefits Growth in benefits costs and the underlying reason for that growth FDR's New Deal social security worker's compensation unemployment attracting and retaining employees tax treatment of benefits programs cost advantage that groups have over individuals organized labor a way for employers to differentiate themselves Explain the major provisions of employee benefits programs Social insurance Private group insurance Retirement Pay for time not worked Family-friendly policies Discuss how employee benefits in the United States compare with those in other countries (vacation time, sick leave, Family and Medical Leave Act) Percentage of private sector labor force that is covered by a pension: United States, 45 percent; France, 100 percent; Switzerland, 92 percent; Germany, 42 percent Japan, 39 percent. Employer objectives and strategies for managing benefits companies are shifting costs to employees Employers are offering more flexible plans Importance of effective communication some employees lack knowledge of their benefits Flex spending accounts permits pretax contributions to an employee account that can be drawn on to pay for uncovered health care expenses. Chapter 14: Collective Bargaining and Labor Relations Labor Relations Framework An environmental context participants web of rules ideology Identify the labor relations goals of management, labor unions, and society Employees perceive problems that are not resolved by employer Frustrated by lack of resolution In some cases, Employees feel they have no other choice Most common reasons: Better Wages Union will prevent unfairness Improve unsatisfactory working conditions The legal environment?s impact on labor relations NLRB insures that the election reflects the true choice of employees Authorization cards: shows interest of employees Election can be held at 30% Can ask for voluntary recognition at 50% Major labor-management interactions: organizing, contract negotiations, and contract administration contracts may include terms where: Management: agree to resolve disputes through G.P. and arbitration Union: agree not to strike for duration of contract and accept arbitrator?s award New, less adversarial approaches to labor-management relations even though only about 10% of the work force are union members, there is always the threat of unionization. This has motivated employers to treat their employees well through the use of HRM systems. Treating employees fairly and equitably will reduce their motivation to engage in collective bargaining. How changes in competitive challenges (e.g. product market competition and globalization) are influencing labor-management interactions Organized Labor and Unionized Companies continue to be engaged in a big struggle The relationship tends to be adversarial Union membership continues to decline Dominant ideology in Washington is/was anti-labor, but the Obama administration may have an effect. Organized Labor still has a significant indirect effect Job Design Approach Positive outcomes Negative outcomes Motivational Higher job satisfaction Greater job involvement Increased training time lower utilization levels Mechanistic Decreased training time less chance of mental overload Lower job satisfaction lower motivation Biological Less physical effort fewer health complaints Higher financial costs Perceptual-motor Lower error lower accidents Lower job satisfaction lower motivation Method Reliability Validity Generalizability Utility Legality Interviews Low Low Low Low Low Reference checks Low Low Low Low Libel charges? Biographical information High High Job-specific High Adverse impact Physical ability tests High Moderate Low Moderate Women, disability Cognitive High Moderate High High Race Personality High Low Low Low Low Work-sample High High Job-specific High High Honesty tests Insufficient Insufficient Insufficient Insufficient Insufficient Drug tests High High High Expensive Invasion of privacy
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