Chapter 10: Human Resource Management

Question 1

Human Capital

Answer 1

the knowledge, skills, and abilities of employees that have economic value (i.e. intellectual capital)

Question 2

Job Analysis

Answer 2

tool for determining what is done on a given job and what should be done on that job

Question 3

Recruitment

Answer 3

development of a pool of applicants for jobs in an organization

Question 4

Selection

Answer 4

choosing from among qualified applicants to hire into an organization

Question 5

Selection Processes

Answer 5

Applications and Resumes
provide basic information to prospective employers.
not useful in making final selection decisions.
Interviews
Structured interview: selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers.
two types:
situational interview: focuses on hypothetical situations.
behavioral description interview: explores what candidates have actually done in the past.
based on real events - so they provide useful information about how the candidate will actually perform on the job.
tend to be more reliable predictors of job performance because they are based on the job analysis that has been done for the position.
Reference Checks
HR encourages reference checks.
Helps rid of ambiguous gray areas.
Background Checks
have become a standard procedure for many companies.
higher level of scrutiny.
Roughly half of hiring managers are using social networking sites to learn about job candidates.
Personality Tests
popularity of this method has risen and fallen, currently on the upswing.
some argue that they may not accurately predict job performance
when coupled with past performance data can be a better predictor of job performance.
Drug Testing
now a frequently used screening instrument.
about 1 in 4 full-time employees is tested when hired, and almost 1 in 3 is subject to random drug tests once they have started working.
Cognitive Ability Tests
one of the oldest methods
involves testing a range of intellectual abilities, including verbal comprehension, and numerical aptitude.
about 20% of companies use this.
Performance Tests
test taker performs a sample of the job
assessment center: consists of 10 to 12 candidates who participate in a variety of exercises or situations; some the exercises involve group interaction, and others are performed individually.
taps a number of critical managerial dimnesions, sucha as leadership, decision-making skills, and communication ability.
Integrity Tests
two forms are polygraphs and paper-and-pencil honesty tests.
polygraphs have been banned for most employment purposes.
accuracy is debatable.
Reliability and Validity
Reliability: refers to the consistency of test scores over time and across alternative measurements.
Validity: moves beyond reliability to assess the accuracy of the selection test.
criterion-related validity: most common; refers to the degree to which a test actually predicts or correlates with job performance.
usually established through studies comparing test performance and job performance for a large enough sample of employees to enable a fair conclusion to be reached.
content validity: concerns the degree to which selection tests measure a representative sample of the knowledge, skills, and abilities required for the job.
more subjective, less statistical

Question 6

Structured interview

Answer 6

selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers.

Question 7

assessment center

Answer 7

consists of 10 to 12 candidates who participate in a variety of exercises or situations; some the exercises involve group interaction, and others are performed individually.

Question 8

Reliability

Answer 8

refers to the consistency of test scores over time and across alternative measurements

Question 9

Validity

Answer 9

moves beyond reliability to assess the accuracy of the selection test

Question 10

outplacement

Answer 10

process of helping people who have been dismissed from the company regain employment elsewhere

Question 11

employment-at-will

Answer 11

or termination-at-will; concept that an employee may be fired for any reason at any time

Question 12

termination interview

Answer 12

manger discusses the company’s position with the employee

Question 13

adverse impac

Answer 13

when a seemingly neutral employment practice has disproportionately negative effect on a group protected by the Civil Rights Act

Question 14

Fair Labor Standards Act (1938)

Answer 14

creates two employee categories: exempt and nonexempt.
employees exempt from overtime pay if they have considerable discretion in how they carry out their jobs and if their jobs require them to exercise independent judgement. Managers usually fall into this category.
nonexempt are usually paid by the hour and must be paid overtime if they work more than 40 hours in a week.

Question 15

Civil Rights Act (1964):

Answer 15

prohibits discrimination in employment based on race, sex, color, national origin, and religion.

Question 16

Americans with Disabilities Act (1990)

Answer 16

prohibits employment discrimination agianst people with disabilities.

Question 17

Civil Rights Act (1991)

Answer 17

strengthened all these protections and permitted punitive damages to be imposed on companies that violate them.

Question 18

Age Discrimination in Employment Act (1967)

Answer 18

prohibit discrimination against people age 40 and over.

Question 19

Worker Adjustment and Retraining Notification Act (1989)

Answer 19

commonly known as WARN Act or Plant Closing Bill, requires covered employers to give affected employees 60 days written notice of plant closings or mass layoffs.

Question 20

training

Answer 20

refers to teaching lower-level employees how to perform their present jobs

Question 21

development

Answer 21

involves teaching managers and professional employees broader skills needed for their present and future jobs

Question 22

needs assessment

Answer 22

start of phase one; managers conduct an analysis to identify jobs, people, and departments for which training is necessary

Question 23

Orientation training

Answer 23

used to familiarize employees with their new jobs, work units and the organization in general

Question 24

Team training

Answer 24

teaches employees the skills they need to work together and facilitates their interaction

Question 25

Diversity Training

Answer 25

focuses on building awareness of diversity issues and providing the skills employees need to work with others who are different from them

Question 26

Performance appraisal

Answer 26

assessment of an employee’s job performance

Question 27

Management by Objectives (MBO)

Answer 27

results appraisal; involves a subordinate and a supervisor agreeing in advance on specific performance goals (objectives)

Question 28

360 Degree appraisal

Answer 28

feedback is obtained from subordinates, peers, superiors, etc.

Question 29

Cafeteria or Flex Benefit Programs

Answer 29

employees are given credits to spend on benefits that fit their unique needs

Question 30

Equal Pay Act (EPA) 1963

Answer 30

prohibits unequal pay for men and women who perform equal work. Exceptions include: seniority, merit system, incentive system based on quality or quantity, or any other factor other than sex

Question 31

Comparable worth

Answer 31

implies that women who perform different jobs of equal worth as those performed by men should be paid the same wage.

Question 32

Pregnancy discrimination act (1978)

Answer 32

states the pregnancy is a disability and qualifies a woman to receive the same benefits that she would with any other disability.

Question 33

Employee Retirement Income Security Act (ERISA - 1974)

Answer 33

protects private pension programs from mismanagement; requires that retirement benefits be paid to those who vest or earn a right to draw benefits and ensures retirement benefits for employees whose companies go bankrupt or cannot otherwise meet their pension obligations.

Question 34

Occupational Safety and Health Act (OSHA, 1970)

Answer 34

requires employers to pursue workplace safety. Employers must maintain records of injuries and deaths caused by workplace accidents and submit to onsite inspections

Question 35

Labor Relations

Answer 35

system of relations between workers and management

Question 36

National Labor Relations Act (Wagner Act)

Answer 36

declared labor organizations legal, established five unfair employer labor practices, created the National Labor Relations Board

Question 37

Labor-Management Relations Act (Taft-Hartley Act, 1947)

Answer 37

protected employers’ free speech rights, defined unfair practices by unions, and permitted workers to decertify (reject) a union as their representative.

Question 38

Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act, 1959)

Answer 38

declared a bill of rights for union memebers, established control over union dues increases, and imposed reporting requirements for unions; designed to rid unions of corruption.

Question 39

Arbitration

Answer 39

use of a neutral third party, typically jointly selected, to resolve the dispute

Question 40

union shop

Answer 40

an organization with a union and a union security clause specifying that workers must join the union after a set period of time.

Question 41

Right-to-work

Answer 41

legislation that allows employees to work without having to join a union.