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MGI 301: Test 1
Why does HRM matter to organizations?
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1. People are a source of competitive advantage
2. Adherence to legal and ethical standards
3. Cost cutting (e.g., outsourcing routine jobs)
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The Industrial Revolution brought about
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the rise of managers
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Major research (Roethlisberger & Dickson, 1927-1933) at the Hawthorne plant of the Western Electric Company found:
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Social groups formed among employees
Groups ranked themselves by prestige
In-group/out-group biases formed
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HR functions were routine and mundane until the
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Civil Rights Act took effect
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To enhance competitiveness, HR can:
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1. Understand how the firm competes
2. Obtain appropriate human capital
3. Motivate employees
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HR departments contribute to an organization’s competitive advantage by using HR systems to
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create value that is rare and difficult for competitors to imitate
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To increase firm performance, HR can
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increase productivity and quality of products and services through enhancing employees’ KSAs and motivation
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Three models of HR:
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1. Line and staff share HR duties
2. HR provides services internally and manages outside consultants for others
3. HR acts as a internal consultant service
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Internal fit:
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Human resources management systems must integrate all HR functions to support one another
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Legal Regulation consists of three steps:
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1.Creation of the requirement (like a law)
2.Enforcement- (equal employment opportunity)
3.Implementation in organizations
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Laws and statues seek to ensure equal opportunity employment. These laws began with
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the 13th and 14th amendments that abolished slavery and required states to protect their residents
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Civil Rights Act of 1964, Title VII prohibits discrimination on employment actions
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based on an individual’s race, color, sex, religion, or national origin
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Title VII applies to employers with 15 or more employees who are working
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20 or more weeks a year and are involved in interstate commerce
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Title VII created the
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equal employment opportunity commission (EEOC)….title 7 initiated the EEOC
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Discrimination byDisparate treatment
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Intentionally discriminate against a protected characteristic
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Disparate treatmentoccurs when:
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1.Employees in similar situations are treated differently
2.AND when such treatment is based on protected characteristics
3. To prove discrimination, a workers must demonstrate INTENT to discriminate based on protected characteristics
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Disparate treatmentdoes not occur when employees are differentiated based on
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bona fide occupational qualifications (BFOQ)s for performing a particular job
-An organization must demonstrate that certain protected characteristics are a business necessity
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DiscriminationDisparate IMPACT
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When the employer doesn’t realize he is discriminating
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Disparate IMPACToccurs when a......and legally
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neutral employment practice disproportionately excludes members of a protected class
2. Legally employee doesn't have to show intent, only statistics
-Employer has to prove necessity of qualification
(HS DIPLOMA EXAMPLE)
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Discrimination Pattern or practice discrimination occurs when disparate impact is
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targeted against an entire population or class or people
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Pattern or practice discrimination
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Key issues here are
1. demonstrating that the employer had intent to discriminate and
2. defining a comparison labor market (compared to other company in same industry)
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DiscriminationRetaliation
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Firing someone for trying to whistle blow
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Affirmative actionplans can prevent or remedy discrimination charges; they consist of three elements:
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1.analysis to compare employees to available labor market supply
2.Goals and timetables for achieving balance
3.Development of steps to meet goals
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Two types of sexual harassment:
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1.Quid pro quo harassment is exchange of value for sexual favors
2.Hostile work environment involves aspects of one’s work that are distressing due to sexual provocation
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Americans with Disabilities Act (ADA):
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Only covers you if you have a chronic ongoing illness ( breaking leg doesn’t count)
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If the disability can be overcome using medication or other means,
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the employer does not have to provide accommodation
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Family and Medical Leave Act (FMLA) of 1993 requires 12 weeks unpaid leave for employees
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1.After birth of a child
2.Caring for seriously ill child, spouse, or parent
3.people who are seriously ill themselves
-Employers must provide same or comparable job, pay for health-coverage during leave, but can exclude some employees
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The EEOC has three functions: Equal Employment OpportunityCommission
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1.Investigate/resolve discrimination complaints
2.Trend U.S. business employment patterns
3.Issue employment guidelines
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FLSA applies to
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exempt salaried workers less than hourly non-exempt workers
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Fair Labor Standards Act (FLSA) sets the minimum wage, defines the standard hours per work week, sets overtime rates, and defines child labor laws
competitive advantage by being inimitable is called
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Causal ambiguity: competitors don’t know which particular HR practice caused them to be better
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A purpose is
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the basic reason for the firm’s existence
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A mission describes
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how an organization will fulfill its purpose
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Business strategy deals with
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how firms will compete in business markets, there are four major strategies
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Strategies within theadaptation model
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match business strategy to the conditions of the business’ environment/market
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Cost leadership strategy requires
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HR to find employees that will work for low costs then train to efficient with high output
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Focus strategy requires HR to
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find employees who understand the focal market, and then to differentiate or cost lead as appropriate
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Functional strategyrefers to
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the specific strategy used by a given function (e.g., HR, marketing, etc.)
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HR functional strategy has three components:
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1. Staffing- involves forecasting labor needs, recruiting qualified applicants, and selecting the best applicants
2. Development-involves managing employee performance (e.g., standards, sanctions, feedback)
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To create shared meaning, HR systems must be:
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-Distinct (easy to understand and legitimate)
-Consistent (always lead to same outcome)
-Consensual (communicated by all managers)
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Human resource planning consists of:
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1. Forecasting supply and demand for labor within their company
2. Developing action plans for aligning supply with demand
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First, organizations forecast labor supply within their organization using Human Resource Information Systems Second...
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they forecast external labor supply
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Growth strategies often require
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1. extensive recruiting the best employers
2. training the new hirers
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Stability strategies often require:
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-Replacing existing employees who turnover and maintaining current skill level of your employees
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Reduction strategies often require:
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1. Layoffs
2. Early retirement incentives
3. companies need to support the survivors
4. maintaining culture is crucial
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high unemployment:
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-Employees are less likely to turnover
-fewer people enter labor market
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low unemployment:
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1. Employees look for better jobs
2. Labor pool size increases in regions
3. worker shortages
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A market wage rate is
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the prevailing wage rate for a given job in a given labor market
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Job analysis is
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the process of gathering and organizing information about jobs within an organization
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Human capital investments are
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actions people take to improve their value in the workplace
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Competencies are
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characteristics of employees that lead to success on the job
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