Human Resource Management

Revision for Exam

Topic 1:
HRM: A Perspective
What is HRM?

Refers to policies, practices, and
systems that influence
employees behavior, attitudes,
and performance
HRM Practices
Job Analysis - the process of
getting detailed information
about jobs.
Recruitment - the process
through which the organization
seeks applicants.
Training - a planned effort to
facilitate learning of job-related
knowledge, skills, and
behavior.

Job design - making decisions
about what tasks should be
grouped into a particular job.
Selection - identifying the
applicants with the appropriate
knowledge, skills, and ability.
Development - the acquisition
of knowledge, skills, and
behavior that improves
employees' ability to meet the
challenges of future jobs.
Performance management - helps ensure that employees activities and
outcomes are congruent with the organizations objectives.
Pay structure, incentives, and benefits.
Labor and employee relations.
Trends Enhancing the
Importance of HRM

1. Increased globalization of the economy
2. Technological changes, challenges, and
opportunities
3. Increase in litigation & regulation related to
HRM
4. Changing characteristics of the workforce
Trend 1: Changing Characteristics
of the Workforce
Growing Workforce diversity, which complicates HRM
2010 only 15% of US workforce will be native-born white males
Greater proportion of women and minorities have entered male-
dominated positions
Nearly 90% of the growth in the US workforce from 1995 2008
came from women, immigrants, African-Americans, Hispanic and
Asians.
More dual-career couples in the labor force
Fewer than 20% of the workforce fit the male, white, single-earner
household mold
May 2008: 11.6% of US population foreign born about half of the
youngest 100 million Americans are immigrants and their US born
children.
Trend 1: Changing Characteristics
of the Workforce
Labor shortages/aging workforce vs. Millennials rising
Baby Boomers: expected to create a shortage of skilled workers and perhaps affect
economic output
increase social security and Medicare costs/contributions
some experts predict enough Boomers will remain in the workforce to make up
for any shortfall of workers and reduce the projected govt. unfunded obligations.
Age discrimination litigation is expected to increase: 2008 Supreme Court ruling
on age discrimination changed the burden of proof needed to prove age
discrimination and may further increase litigation
Generation Y/ Millennials / Net Generation: estimated in 2014 there will be almost
63 million Gen Y in the workforce while Boomers will decline to 48 million
Expected to have greater career vs. personal demands / career vs. child/elder
care
More racially and ethnically diverse than Boomers and Gen Xers

Trend 1: Changing Characteristics
of the Workforce
HRM must develop and implement programs
Diversity
more flexible work schedules
better training programs
child and elder care arrangements
and career development strategies

Can lead to greater probability of EEO legal actions

Trend 2: The Increased
Globalization of the Economy
Opportunity for global workforce and labor cost reduction
Development of a worldwide labor market for US companies
Easy to move work around when it can be digitized
Political and union resistance .
Corporate downsizing linked to new technology
Increasing global competition for US products and services
Barriers to entry have been reduced, increasing international competition from firms and
individuals alike.
Requires constant vigilance over productivity and customer satisfaction
Opportunity for expansion that present global challenges for HR
US exports now generate about one in six American jobs, an increase of over 20% in just
10 years
U.S. firms are expanding in new countries and new markets
restructuring/downsizing
Reverse globalization
Trend 3: Technological Changes,
Challenges, & Opportunities
Great opportunities presented by Web-based systems
Products and services can be delivered more effectively through an
optimal combination of people, software and equipment; thereby,
increasing productivity.
Maximize profit margins and sustained customer value
Electronic tracking of HR activities such as turnover and performance
reviews. Software is easily customized to each organization.
What are some Opportunities of Internet/Computerization on HRM
Activities?
New threats:
Privacy
Confidentiality
Intellectual property
Trend 4: Increase in Litigation &
Regulation Related to HRM
Federal, state, & municipal lawsuits on the increase
Organizations are bound by a plethora of federal, state, and local laws,
regulations, executive orders, and rules
Federal lawsuits increased over 125% since 1991.
Jury awards have gotten much larger: 2008, 26% of judgments were $1
million of more
Expected increase in age discrimination lawsuits.
State laws regarding corporate acquisitions and mergers, AIDs victims
and sexual orientation, family leave benefits, and video displays
Health and safety regulations, employee pensions and other
compensation programs, plant closures, mergers and acquisitions, new
immigration laws, and equal opportunity laws and guidelines.
More HR-related legislation is expected-new EEO legislation related to
fair pay, union organizing, changes in the ADA law, and especially laws
related to illegal workers.
Wrongful discharge, negligent hiring and retention
The Strategic Management Process
Type of Strategy at Each Company Level
Strategic Human Resource
Management
Strategic Human Resource Management
The linking of HRM with strategic goals
and objectives in order to improve
business performance and develop
organizational cultures that foster
innovation and flexibility.
Involves formulating and executing HR
systemsHR policies and activities
that produce the employee competencies
and behaviors that the company needs
to achieve its strategic aims.
Linking Company-Wide and HR Strategies
Topic 2:
Job Analysis and HR Planning
What is Talent Management?

The goal-oriented and integrated
process of planning, recruiting,
developing, managing and
compensating employees.
Introduction
Job analysis is vital to any HRM
program
and answers such questions as
How long does it take to complete important tasks?
Which tasks are grouped together as a job?
Can a job be designed so that performance is enhanced?
What behaviors are needed to perform the job?
What traits and experience suit a person to the job?
Can job analysis information help develop HRM programs?
The Basics of Job Analysis:
Terms
Job Analysis
The procedure for determining the duties and skill requirements of a job
and the kind of person who should be hired for it.
Job Description
A list of a jobs duties, responsibilities, reporting relationships, working
conditions, and supervisory responsibilitiesone product of a job
analysis.
Job Specifications
A list of a jobs human requirements, that is, the requisite education,
skills, personality, and so onanother product of a job analysis.
Uses of Job Analysis Information
Job analysis
Job description
and specification
Recruiting
and selection
decisions
Performance
appraisal
Job evaluation
wage and salary
decisions
(compensation)
Training
requirements
Steps in Job Analysis
1
2
3
4
5
Steps in doing a job analysis:
Review relevant background information.
Decide how youll use the information.
Select representative positions.
Actually analyze the job.
Verify the job analysis information.
6 Develop a job description and job specification.
HR Planning
Reacting quickly to opportunities
Rapid access to accurate information
Human resources
Business
success
depends on
Assesses the future supply of, and
demand for, human resources
Provides mechanisms to eliminate
gaps between supply and demand
Requires periodic readjustment as
labor market conditions change
Human
resource
planning
The Human Resource Planning
Process
Strategic
Planning
Technological
forecasts
Economic forecasts
Market forecasts
Organizational
planning
Investment planning
Annual operating
plans
Annual employment
requirements
Numbers
Skills
Occupation
categories
Human Resource
Demand
Existing employment
inventory
After application of
expected loss and
attrition rates
Human Resource
Supply
Analyzing Current Supply of
Employees
How many and what kinds of
employees do I currently have, in
terms of the skills and training
necessary for the future?

This involves more than simply
counting current employees
The Skills Inventory
Management
Inventory
Skills
Inventory
Identify the skills, abilities, experiences, and training
employees currently have
Useful for career planning, management
development, and related activities
In its simplest form, a list of names,
characteristics, skills on index cards
Others involve expensive and complex
computer databases
Recruitment Sources
Internal Sources
faster, cheaper,
more certainty
External Sources
new ideas& approaches
Direct Applicants
&Referrals -
self selection, low cost
Newspaper Advertising -
large volume, low quality
recruits
Electronic Recruiting
Internet
Public & Private
Employment Agencies -
headhunters can be
expensive
Colleges& Universities-
campus placement services
JOBS
JOBS
Recruiters
Functional Area
- HR versus operating area specialist

Traits
- warm and informative

Realism
- realistic job preview
- honesty
1. Provide timely feedback

2. Avoid rude behavior

3. Recruit in teams

2 Steps to Enhance
Recruiter Impact
1. Provide timely feedback

2. Recruit in teams

Summary

HR planning uses labor supply and demand
forecasts to anticipate labor shortages and
surpluses to enhance organizations success
and reduce human suffering.

HR recruiting creates an applicant pool should
a labor shortage occur.
Internal Sources of Candidates
Foreknowledge of candidates
strengths
and weaknesses
More accurate view of
candidates skills
Candidates have a stronger
commitment
to the company
Increases employee morale
Less training and orientation
required
Failed applicants become
discontented
Time wasted interviewing
inside candidates who will
not be considered
Advantages
Disadvantages
Finding Internal Candidates
Posting open
job positions
Rehiring former
employees
Hiring-from-Within Tasks
Succession
planning (HRIS)
Outside Sources of Candidates
1
2
3
4
5
Advertising
Recruiting via the Internet
Employment Agencies
Temp Agencies and Alternative
Staffing
Offshoring/Outsourcing
6
7
8
9
On Demand Recruiting
Services (ODRS)
Executive Recruiters
College Recruiting
Referrals and Walk-ins
Locating Outside Candidates
Recruiting via the Internet
Advantages
Cost-effective way to publicize job openings
More applicants attracted over a longer period
Immediate applicant responses
Online prescreening of applicants
Links to other job search sites
Automation of applicant tracking and evaluation
Disadvantages
Exclusion of older and minority workers
Unqualified applicants overload the system
Personal information privacy concerns of applicants
Advertising for Outside
Candidates
The Media Choice
Selection of the best medium depends on the positions for which the firm is
recruiting.
Newspapers: local and specific labor markets
Trade and professional journals: specialized employees
Internet job sites: global labor markets
Constructing (Writing) Effective Ads
Create attention, interest, desire, and action (AIDA).
Create a positive impression (image) of the firm.
College Recruiting
On-campus recruiting goals
To determine if the candidate is
worthy of further consideration
To attract good candidates
On-site visits
Invitation letters
Assigned hosts
Information packages
Planned interviews
Timely employment offer
Follow-up
Internships
Sources of Outside
Applicants
Employee
referrals
Walk-ins Telecommuters
Other Sources of Outside Applicants
Military
personnel
The Selection Process
In the past, hiring decisions were based on
subjective likes and dislikes of the boss
Selection tools were designed to aid gut
reactions
The selection decision is a series of
steps through which applicants pass
At each step, more applicants
are screened out
The Selection Process
Step 1: Preliminary Screening
Nearly all ask for enough information to
determine minimal qualifications
The application eliminates the need for
interviewers to gather basic information
Application blanks vary in length and sophistication
Application blanks are subject to the same legal
standards as any other selection method
They generally limit questions that imply something
about the applicants physical health
The first step in most selection processes
involves completing an application form
Step 1: Preliminary Screening
Applicants who are judged minimally qualified
proceed to the next phase of the selection process
The weighted application blank is designed to be
scored more systematically and is more like the BIB
The weights are
totaled for each
applicant, and
the one with the
highest score is
the preferred
choice
Current high and
low performers
are compared on
a variety of
characteristics
known at the
time they applied
for the job
Weights are then
assigned to the
degree of
difference on
each
characteristic
Step 2: Employment Interview
The interview is the selection technique
most often encountered by persons
applying for jobs
Structure the interview to be reliable and
valid
Train managers to use good interviewing
techniques
Types of Interviews
Interviews Vary Along Two Dimensions
1. How structured it is
2. Whether it focuses on historical information or
hypothetical situations
An unstructured interview has no
predetermined script or protocol
1. Structured interviews are more reliable and valid than
unstructured interviews
2. Standardization lowers the possibility that biases have
been introduced by the interviewer
Types of Interviews
Questions about past experience have higher validity
than future-oriented hypothetical questions
Behavioral description
interview applicants
relate actual incidents
from their past work
experience to the job for
which they are applying
Situational interview
seeks to identify
whether an applicant
possesses relevant job
knowledge and
motivation by asking
hypothetical questions
Two types of structured interviews
have gained popularity
Training for Interviewing
Training programs can reduce many of the
errors found in traditional, unstructured
interviews
Knowing how to ask questions
Understanding how to take behaviorally
oriented notes during the interview
Being aware of potential biases
Step 4: Employment Tests
Employment tests attempt to measure
Some cost as little as $1 per applicant
The Mental Measurements Yearbook summarizes
the tests and their effectiveness
It can be expensive to develop an employment test,
so many employers purchase existing tests
Attitudes
Manual
dexterity
Intelligence Personality
Work Sample Performance
Tests
Applicants are often asked to run the
machines they would run on the job
Requires applicants to do a sample of the work
that the job involves in a controlled situation
Has high validity among selection tests
Cognitive Ability Tests
3 Dimensions Cognitive Ability Tests:
1. Verbal Comprehension
2. Quantitative Ability
3. Reasoning Ability

Verbal Comprehension -a persons capacity to understand
and use written and spoken language.
Quantitative Ability - the speed and accuracy with which
one can solve arithmetic problems.
Reasoning Ability - a persons capacity to invent solutions
to diverse problems.
Psychomotor Ability Simulations
These psychomotor
ability tests are not
as popular as they
once were
Choice reaction time
Speed of limb
movement
Finger dexterity



Personality Inventories




Agreeableness
Extroversion
Inquisitiveness
Adjustment
Conscientiousness



Emotional Intelligence




Empathy
Self- awareness
Self- regulation
Self- motivation
Social Skills
Polygraph and Honesty Tests
May be an invasion of privacy
Can lead to self-incrimination
The polygraph is erroneously called a lie detector
Records changes in breathing, blood pressure, pulse,
and skin response, then plots the reactions on paper
In recent years, objections have been raised
May not be reliable and valid
Popular by the mid-1980s because
of increases in on-the-job crime
Polygraph and Honesty Tests
Exemptions
The Employee Polygraph Protection Act of 1988
made it illegal for most private organizations to use
the polygraph as a selection device
Polygraph use is legal during an ongoing investigation of
dishonesty if employee rights are safe-guarded
Government agencies
Certain Dept. of Defense and
Dept. of Energy contractors
Private employers whose business involves
security and controlled substances
Polygraph and Honesty Tests
Organizations searching for an alternative to the
polygraph are turning to paper-and-pencil tests
Overt integrity tests ask direct questions and
gather
a history of theft and other illegal activities
Personality-based integrity tests assess a
predisposition toward deviant and disruptive
behavior
Honesty tests have acceptable levels of validity
and reliability
They can also be used to predict future job
performance
Step 4: Reference Checks
When applying for a job, you may be
asked for
a list of references
Rarely does someone knowingly include the
name
of a reference who will give a negative
impression
This built-in bias is why references are
criticized
Equally important are concerns over
the legality
of asking for, and providing, such
information
Giving out confidential information could be a
violation of the employees right to privacy
Giving a negative recommendation opens the
reference up to a defamation lawsuit
Step 5: Reference Checks
Fear of being sued led many managers to refuse to provide
references for former employees
Organizations must also be wary of any policy
suggesting that all references be neutral
Many organizations include
statements in employee
handbooks about reference
checking policies
Managers often give out
only verifiable kinds of
information, such as date of
employment and job title
They could be sued for a negligent referral
Step 6: Physical Examinations
Physical ability tests include:
muscular tension, power, and
endurance
cardiovascular endurance
flexibility
balance
coordination
Physical Examinations
Reasons for preemployment medical
examinations:
To verify that the applicant meets the physical
requirements of the position.
To discover any medical limitations to be taken
into account in placing the applicant.
To establish a record and baseline of the
applicants health for future insurance or
compensation claims.
To reduce absenteeism and accidents.
To detect communicable diseases that may be
unknown to the applicant.
Step 7: Selection Decision
Put offer in writing
Include salary, benefits, start date, job
responsibilities
Communicate decision to winner
Set deadline for offer acceptance
Step 7: Selection Decision
If offer is
rejected
Make counter-offer
or
Extend offer to the
runner-up
If offer is
accepted
Notify the other
job candidates
that they were
not chosen
Topic 4:
Interviewing
Interviews
Selection interviews-a dialogue initiated by one or
more persons to gather information and evaluate the
an applicants qualifications for employment.

To increase an interviews utility:
Interviews should be structured, standardized, and
focused on goals oriented to skills and observable
behaviors.
Interviewers should be able to quantitatively rate each
interview.
Interviewers should have a structured note-taking
system that will aid recall to satisfying ratings.
Situational Interview
A situational interview confronts
applicants on specific issues, questions
or problems likely to arise on the job.

Situational interviews consist of:
experience-based questions
future-oriented questions.
Examples of Questions That Provide Structure
Situational Questions
1. Suppose a more experienced coworker was not following standard work procedures and
claimed the new procedure was better. Would you use the new procedure?
2. Suppose you were giving a sales presentation and a difficult technical question arose that
you could not answer. What would you do?
Past Behavior Questions
3. Based on your past work experience, what is the most significant action you have ever taken
to help out a coworker?
4. Can you provide an example of a specific instance where you developed a sales
presentation that was highly effective?
Background Questions
5. What work experiences, training, or other qualifications do you have for working in a
teamwork environment?
6. What experience have you had with direct point-of-purchase sales?
Job Knowledge Questions
7. What steps would you follow to conduct a brainstorming session with a group of employees
on safety?
8. What factors should you consider when developing a television advertising campaign?
Using a Streamlined Interview
Process
1. Prepare for the interview
Knowledge and experience
Motivation
Intellectual capacity
Personality factor
2. Formulate questions to ask
in the interview
Intellectual factor
Motivation factor
Personality factor
Knowledge and experience
factor
3. Conduct the interview
Have a plan
Follow your plan
4. Match the candidate to the job

Interview Evaluation
Form
What Can Undermine An
Interviews Usefulness?
Nonverbal behavior
and impression
management
Applicants personal
characteristics
Interviewers
inadvertent behavior
Factors Affecting
An Interviews
Usefulness
First impressions (snap
judgments)
Interviewers
misunderstanding
of the job
Candidate-order
(contrast) error and
pressure to hire
Rater Problems
Horn Effect
Central
tendency error
Leniency or
harshness
Halo effect
The Halo Effect
Hard to eliminate when it does occur
To reduce the possibility, evaluate all
subordinates on one dimension before
proceeding to the next
Not as common
as once
believed
Occurs when rater assigns values on the
basis of an overall impression of the ratee
Can be positive or negative
True halo occurs when high or low ratings
are justified by the ratees performance
Halo Error
Leniency or Harshness Error
Consequently,
leniency or
harshness errors
may occur
Asking raters to
distribute ratings
can force a normal
distribution
Raters can assess
their tendencies by
examining their
ratings
Being objective is
hard for everyone
Central Tendency Error
A central tendency error occurs when a
rater avoids using high or low ratings
This average rating fails to discriminate
between subordinates
It offers little information for making HRM
decisions
Topic 5:
Compensation and Benefits
Objective of Compensation
Adequate
Acceptable to
employees
Provides
incentive
Secure
Cost effective
Balanced
Equitable
Effective
compensation
Determination of Individual Pay
How should one employee be paid relative to
another when they both hold the same job?
Management must answer these questions
Should all employees doing the same work,
at the same level, be paid the same?
Differences in experience, skills, and performance
Most employers pay different rates to employees
performing the same job based on
Belief that seniority, higher performance, or
both deserve higher pay
Determination of Individual Pay
Changed emphasis on job roles, skills, knowledge
Emphasizes the norms of enterprise
without having employees change jobs
Employees performing the same job make substantially
different contributions to goals
Satisfies the internal equity norms of employees
Recognizes market changes between jobs in the
same grade without overhauling the whole system
Reasons to pay different rates for the same job
Methods of Payment
Time worked
Output produced
Skills
Knowledge
Competencies
A combination of these
factors
Introduction
Employers View:
Pay is critical in
attaining strategic
goals.
Pay impacts
employee attitudes
and behaviors.
Employee
compensation is
significant
organizational cost.
Employees View:
Policies having to do
with wages, salaries,
and other earnings
affect their overall
income and thus their
standard of living.
Both level of pay and
fairness compared with
others pay are
important.
CURRENT TRENDS IN
COMPENSATION
CompetencySkill-Based Pay
employee is paid for the range, depth, and
types of skills and knowledge he is
capable of
Competencies - demonstrable
characteristics of the person, including
knowledge, skills, and behaviors, that
enable performance
CURRENT TRENDS IN
COMPENSATION
Skill-based pay programs
employer defines specific skills,
and has a method for
determining the persons pay
based on his or her skill
competencies.
CURRENT TRENDS IN
COMPENSATION
Broadbanding - collapsing
salary grades and ranges into
just a few wide levels or bands,
each of which contains a
relatively wide range of jobs and
salary levels.
CURRENT TRENDS IN
COMPENSATION
emphasis on rewarding individuals for their
skills and competencies, and to defining
salary grades much more broadly.
emphasis on performance-based variable
pay.
emphasis on giving individuals a choice in
the rewards they receive
INCENTIVE PLANS
Individual incentive programs give
performance-based pay to individual
employees who meet their individual
performance standards

Variable pay refers to group pay plans
that tie payments to productivity
Piecework - Pay is tied directly to what
the worker produces

Team or Group Incentive Plans
Tying team performance to the companys
strategic goals

Main disadvantage is that each workers
rewards are not based just on his own
efforts
Stock option - the right to purchase a
specific number of shares of company
stock at a specific price during a period of
time
Incentives for Salespeople
Most companies pay their salespeople a
combination of salary and commissions

Typically a 70% base salary/30% incentive
mix
Merit pay, or a merit
raise - any salary
increase awarded to
an employee based
on his or her
individual
performance
Profit-sharing plan -
most employees
receive a share of the
companys annual
profits
Employee stock ownership plan
(ESOP), a corporation contributes shares
of its own stockor cash to be used to
purchase such stockto a trust
established to purchase shares of the
firms stock for employees
Gainsharing plans - want to
encourage improved employee
productivity by sharing resulting
financial gains with employees
Types of Compensation
Base Pay, Commissions, Overtime Pay
Bonuses, Profit Sharing, Merit Pay, Stock Options
Benefits: dental, insurance, medical, vacation,
leaves, retirement
Travel, meal, housing allowance

Compensation
Direct
Indirect Non-financial
Wages
Salary
Bonuses
Commissions
Insurance
Vacation
Childcare
Praise
Self-esteem
Recognition
What is the purpose of
compensation?

Topic 6:
Performance Appraisal
Performance Management System
Defining
Performance
Evaluating
Performance
Providing
Feedback on
Performance
The process by which executives, managers,
and supervisors work to align employee
performance with the firms goals
An effective performance management process
Has a precise definition of
excellent performance
Uses measurements of
performance
Provides feedback to
employees
What?
Performance
Management
An integrated
approach to ensuring
that an employees
performance supports
and contributes to the
organizations
strategic aims.
Aim is to improve organizational, functional,
unit and individual performance by linking the
objectives of each. It is done through defining
goals, developing skills, appraising
performance, provide feedback and rewarding
employees.

Incorporate job design, recruitment and
selection, training and development, career
planning and compensation and benefits, in
addition to performance appraisal.
What?
Performance Appraisal
Setting work
standards, assessing
performance, and
providing feedback to
employees to
motivate, correct, and
continue their
performance.
Concerned with determining how well
employees are doing their jobs against set
of criteria, communicating that information
to employees and establishing a plan for
performance improvement.
3 Purposes of Performance
Management
Strategic
Developmental
Administrative
Recommendations - Developing an
Effective Performance Management
System
Mirror the corporate culture and values
Have visible CEO and senior management support.
Focus on the right company performance measures.
Link job descriptions to the performance management
system.
Differentiate performance fairly and effectively.
Train managers in performance management.
Communicate the total rewards system.
Require managers to search, offer and acquire regular
performance feedback.
Set clear expectations for employee development.
Track effectiveness of the performance management
system.
Adjust the system as required.

Ethics and Fair Treatment at
Work
The Meaning of Ethics
The principles of conduct governing an individual or a group.
The standards you use to decide what your conduct should be.
Ethical behavior depends on
a persons frame of reference.
Ethical Decisions
Normative judgments
Morality
Ethics and the Law
A behavior may be legal
but unethical.
A behavior may be illegal
but ethical.
A behavior may be both
legal and ethical.
A behavior may be both
illegal and unethical.
Ethics and
Behaviors
Ethics, Fair Treatment,
and Justice
Distributive justice
Components of Organizational Justice
Procedural justice
How Managers Use Personnel
Methods To Promote Ethics
and Fair Treatment
Emphasizing
ethics and
fairness in
personnel
selection
Disciplining
all instances
of unethical
conduct
Providing
mandatory
employee ethics
training
Ensuring fair and
objective
performance
appraisals
HRM Practices that
Promote Ethics
HRM-Related Ethics Activities
Selection
Fostering the perception of fairness in the processes
of recruitment and hiring of people:
Formal hiring procedures that test job competencies
Respectful interpersonal treatment of applicants
Feedback provided to applicants
Training Employees
How to recognize ethical dilemmas
How to use ethical frameworks to resolve problems
How to use HR functions in ethical ways
HRM-Related Ethics Activities
(contd)
Performance Appraisal
Appraisals that make it clear that the company adheres to high ethical
standards by measuring and rewarding employees who follow those
standards.
Standards are clearly defined.
Employees understand the basis for appraisals.
Appraisals are objective.
Reward and Disciplinary Systems
The organization swiftly and harshly punishes unethical conduct.
HRM-Related Ethics Activities
(contd)
HRs Ethics Compliance Activities
Complying with the Sarbanes-Oxley Act of 2002
Requires that CEOs and CFOs of publicly traded companies
personally attest to accuracy of their companies financial
statements and that their internal controls are adequate.
Increased the need for ethics training and verification of
training.
Firms are using online ethics training programs to comply with
the acts requirements.
Managing Employee
Discipline
Clear rules
and regulations
A system of
progressive penalties
Fair and Just Discipline Process
A formal unbiased
appeals process
Employee Privacy
Employee privacy violations upheld by courts:
Intrusion or surveillance
Publication of private matters
Disclosure of medical records
Appropriation of an employees name or likeness
Actions triggering privacy violations:
Background checks
Monitoring off-duty conduct and lifestyle
Drug testing
Workplace searches
Monitoring of workplace
Managing Dismissals
Dismissal
Involuntary termination of an employees employment
with the firm.
Terminate-at-Will Rule
Without a contract, the employee can resign for any reason, at will, and
the employer can similarly dismiss the employee for any reason (or no
reason), at will.
Wrongful Discharge
An employee dismissal that does not comply with the law or does not
comply with the contractual arrangement stated or implied by the firm via
its employment application forms, employee manuals, or other promises.
Managing Dismissals (contd)
Statutory exceptions
Common law
exceptions
Protections Against
Wrongful Discharge
Public policy
exceptions
Grounds for Dismissal
Unsatisfactory
performance
Misconduct
Lack of qualifications
Changed requirements of
(or elimination of) the job
Bases for
Dismissal
Managing Dismissals (contd)
Fostering Perceptions of Fairness in Dismissals
Provide the employee with full explanations of why and how termination
decisions were made.
Institute a formal multi-step procedure (including warning) and establish
a neutral appeal process.
Have the employees direct supervisor inform
the employee of the dismissal decision.
Security Measures
Disable employee passwords and network access.
Collect all company property and keys.
Escort employee from company property.