Exam # 1 Study Guide Chapters: 2, 3, and 5 - 8Ch. 2 (January 27) HR Functions and Strategy Importance of HRM: has dual nature (1) Supports the organization’s strategy (2) Represents and advocates for the employeesStrategic HRM provides a clear connection between the organization’s goals and the activities of employeesHR and Organizational Strategy: (p.33)Strategy Type What it looks like Implications for HRCost differentiation: Provide great value and low cost.Emphasizes acquiring low cost materials, streamlining processes, reducing waste, maximizing efficiencies (e.g. Wal-Mart)Structure jobs, departments to maximize cross training and knowledge sharing. Design compensations programs to reward efficiency and cost saving. Hire employees with versatile skill sets.Product differentiation: Deliver a product/service(s) that is similar to competitorsbut incorporates a feature(s) to differentiate it. Emphasize creativity and innovation. Consumers faced with multiple choices; identifythose features that make the product stand out (e.g. Apple, Netflix)Design compensation system to reward creativity and innovation. Educate employees on product/service differentiating features. Create marketing campaign to promote special product features.Customer intimacy: Strong personal relationship between provider of product/service and the consumer.Emphasize relationship between consumers, point person. Personalized service differentiatesproduct/ service from competitors (e.g. local hair salon, Pandora)Recruit and select job applicants with strong customer service and customer relation skills tohelp fortify the provider/customer relationship. Focus reward strategies on customer attraction,satisfaction, and retention. Customer/Market: Focus on unique target market characteristics.Emphasize the need for a specific target market, like generational or lifestyle (e.g. Abercrombie & Fitch, Harley Davidson)Use strong market research to drive recruitment and selection so employees with have a strong understanding of the target market. Emphasize versatility and adaptability as products/services are subject to rapid change. HRM Functions: (p. 34)HRM has 4 basic functions:(1) Staffing: Evaluation and hiring – HR planning, recruiting, and selection (2) Training and Development: Prepare job selected applicants to follow job requirements and the organization’s strategy (3) Motivation: How an organization keeps new employees – Performance reviews, reward system, and benefits(4) Maintenance: Provide a safe environment to work – Health & Safety In other words: hiring people, preparing them, stimulating them, and keeping themExamples of HRM functions- Designing and monitoring performance review processes (motivation)- Hiring the best qualified candidates (staffing)- Establishing working conditions that are conductive to retaining the best workers (maintenance)- Orientation and training employees to function efficiently within the organization (Training & Development)External Influences on HRM: (p. 34)(1) Dynamic Environment: Globalization and competition(2) Laws and Regulation: Legal issues (e.g. minimum wage limits decisions based on scarce resources)(3) Labor Unions: Labor relations and collective bargaining (Organization cannot violate union contracts)(4) Management Thought: Leadership, organizational politics, and organizational cultureExam # 1 Study Guide Chapters: 2, 3, and 5 – 8MGI 301 Human Resource ManagementMGI 301 Human Resource ManagementCh. 3 (February 3) Legal IssuesAvoiding Illegal Discrimination:HRM is about making decisions – hiring, performance reviews, termination, etc. Illegal Discrimination: Making managerial decisions based on individual characteristics that have been identified as a protected category by Federal Laws. State and municipal laws may go beyond federal lawsFederals Laws against Discrimination:(a) Civil Right Act (Title VII) 1964: Prohibits discrimination on the basis of race, color, religion, sex, and national origin.Most important piece of legislation affecting HRMTitle VII: covers hiring promotion, dismissal, benefits, compensation, or any other term, condition, or privileges based on:- Race- Religion- Color- Gender- National origin(b) Equal Pay Act 1963: Requires equal pay for equal work (men and women)As long as jobs are substantially equal, pay should be equal – mainly for protecting employees from gender discriminationToday women still earn 77 cents for every dollar that men earn(c) Age Discrimination and Employment Act: Protects employees 40-65 years of age from discrimination (1967).1978: amended to age 701986: eliminated the upper age limit(d) Equal Employment Opportunity Act 1972: Granted and reinforced power for the EEOCEnforced the 1964 Civil Rights ActEstablished the Equal Employment Opportunity Commission (EEOC)Expand the scope of civil rights protection to employees of state and local governments, education, and labors(e) Pregnancy Discrimination Act 1978: Requires equal treatment of pregnant women in the workforce; preserves job rights after leave.(f) Civil Rights Act 1991: Protects employees from the discrimination on the basis of race, ethnicity, or religion. Allows for punitive and compensatory damages through jury status. Includes Glass Ceiling Act and established the Glass Ceiling Commission to study management practicesReinforces the 1964 Act which had been weakened by a number of Supreme Court casesFirst law to allow individuals to sue for punitive damages (g) Americans with Disabilities Act (ADA) 1960: Prohibits discrimination against disabled persons (physical and mental). Requiresreasonable accommodation of disability(h) Family and Medical Leave Act 1993: Provides up to 12 weeks of unpaid leave for infant care and illness; protects employment rights and benefits during leave.Common Types of discrimination Practices: (p. 70)Adverse (disparate) Treatment: Individuals receive unfavorable outcomes due to personal characteristics – Theory of discrimination under the VII of United States Civil Rights Act – (e.g. women making 77 cents of a dollar) Adverse Impact: A consequence of a practice that results in a greater rejection rate for a minority group – Restrictions that manipulate results (e.g. we only hire people with long hair – favor women)Exam # 1 Study Guide Chapters: 2, 3, and 5 – 8MGI 301 Human Resource ManagementPrevention of Discrimination:These tests may be used to determine if discrimination has potentially occurred(1)