Management 201 Final Exam Study GuideCHAPTER 12: MANAGING HUMAN RESOURCES - Reliability: the consistency of test scores over time.- Validity: the correlation between test scores and job performance.- Adverse Impact One pitfall to be avoided is the inclusion of questions that are irrelevant to job success. In line with affirmative action, the application form should not ask questions that will create an adverse impact on protected groups unless the questions are clearly related to the job. Examples:o Employers should not ask whether the applicant rents or owns his or her own home because (1) an applicant’s response might adversely affect his or her chances at the job, (2) minorities and women may be less likely to own a home, and (3) home ownership is probably unrelated to job performance.o By contrast, the CPA exam is relevant to job performance in a CPA firm; thus, it is appropriate to ask whether an applicant for employment has passed the CPA exam, even if only one-half of all female or minority applicants have done so versus nine-tenths of male applicants.- 360 Degree Appraisal: a process that uses multiple raters, including self-rating, to appraise employee performance and guide development.- Strategic HRM & the Role and Value of Human Capital Investments Research has found that effective human resource management and the alignment of HR strategies with the organization’s strategic direction has a positive impact on performance, including higher employee productivity and stronger financial results. 3 Key Elements of Strategic Approacho All managers are involved in human resource management.o Employees are viewed as assets. No strategy can be effectively implemented without the right people to put it into action. Employees, not buildings and machinery, give a company its competitive edge.o Human resource management is a matching process, integrating the organization’s strategy and goals with the correct approach to managing human capital. Human Capital: refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees. To build human capital:o HRM develops strategies for finding the best talent, enhancing their skills and knowledge with training programs and opportunities for personal and professional development.o They provide compensation and benefits that support the sharing of knowledge and appropriatelyreward people for their contributions to the organization.- Impact of Federal Legislation Discrimination: occurs when some applicants are hired or promoted based on criteria that are not jobrelevant; for example, refusing to hire a black applicant for a job he is qualified to fill or paying a woman a lower wage than a man for the same work are discriminatory acts. Affirmative Action: requires that an employer take positive steps to guarantee equal employment opportunities for people within protected groups. An affirmative action plan is a formal document that can be reviewed by employees and enforcement agencies. The goal of organizational affirmativeaction is to reduce or eliminate internal inequities among affected employee groups. EEOC: The Equal Employment Opportunity Commission created by the Civil Rights Act of 1964 initiates investigations in response to complaints concerning discrimination. The EEOC is the major agency involved with employment discrimination.Federal Law Year ProvisionsEqual Opportunity/DiscriminationFederal Law Year ProvisionsLawsCivil Rights Act 1991Provides for possible compensatory and punitive damages plustraditional back pay for cases of intentional discrimination brought under title VII of the 1964 Civil Rights Act. Shifts the burden of proof to the employer.Americans with Disabilities Act 1990Prohibits discrimination against qualified individuals by employers on the basis of disability and demands that “reasonable accommodations” be provided for the disabled to allow performance of duties.Vocational Rehabilitation Act 1973Prohibits discrimination based on physical or mental disability and requires that employees be informed about affirmative action plans.Age Discrimination in Employment Act(ADEA)1967(amended1978, 1986)Prohibits age discrimination and restricts mandatory retirement.Civil Rights Act, Title VII1964Prohibits discrimination in employment on the basis of race, religion, color, sex, or national origin.Compensation/Benefits Laws Health Insurance PortabilityAccountability Act (HIPPA)1996Allows employees to switch health insurance plans when changing jobs and get the new coverage regardless of preexisting health conditions; prohibits group plans from dropping a sick employee.Family and Medical Leave Act 1993Requires employers to provide up to 12 weeks unpaid leave forchildbirth, adoption, or family emergencies.Equal Pay Act 1963 Prohibits sex differences in pay for substantially equal work.Health/Safety Laws Patient Protection and Affordable CareAct2010Imposes a fee on firms with 50 or more employees if the government subsidizes their employees’ health care coverage.Consolidated Omnibus BudgetReconciliation Act (COBRA)1985Requires continued health insurance coverage (paid by employee) following termination.Occupational Safety and Health Act(OSHA)1970Establishes mandatory safety and health standards in organizations.- Changing Nature of Careers and Innovations in HRM Employer of Choice: a company that is highly attractive to potential employees because of human resources practices that focus not just on tangible benefits such as pay and profit sharing, but also onintangibles (such as work/life balance, a trust-based work climate, and a healthy corporate culture), and that embrace a long-term view to solving problems. Contingent Workers: people who work for an organization, but not on a permanent or full-time basis,including temporary placements, independent contractors, freelancers, and part-time employees. Telecommuting: using computers and telecommunications equipment to perform work from home oranother remote location.- Matching Model: the organization and the individual attempt to match the needs, interests, and values that they offer each other.- HR Planning: the forecasting of human resource needs and the projected matching of individuals with expected vacancies. Begins with several questions:o What new technologies are emerging, and how will these affect the work system?o What is the volume of the business likely