aPHR Flashcards
Name the major functions of HR.
- Staffing
- Performance management
- Compensation and benefits
- Training and Development
- Employee Relations
- Health, safety, and security
- HR research
Page 1
Name the most common issues treated in HR policies.
-Discipline problems (absenteeism, insubordination, inappropriate behavior)
-Promotions, transfers, and layoffs
-Compensation, pay increases, and benefits
-Holidays, vacations, and sick leave
-Appropriate uses of technology
-Termination
Page 4
What are the three major purposes that HR policies serve?
- Ensure fair and objective treatment to employees
- Help managers make quick, consistent decisions
- Give managers confidence to resolve problems and defend their decisions
Page 4
Name some topics typically covered in employee handbooks.
-A statement of the handbook’s purpose
-A brief history of the company and its products/services
-Mission/vision statement(s)
-Policy statements
-Info. about recruitment, promotion, termination, rehire policies
-Workplace conduct rules, complaint procedures, emergency procedures
-Disclaimer that the handbook is not a legally binding document (FRO)
Page 5
Name some rules that are generally lawful for a company to maintain.
-Civility rules (banning inappropriate conduct/behavior)
-Rules against capturing proprietary/confidential information/knowledge such as photos, logos, videos, etc. of company material w/out prior approval
-Rules against insubordination
-Rules against defamation
Page 6
Name some rules that may warrant scrutiny from the NLRB.
-Broad conflict-of-interest rules that do not specifically target fraud and self-enrichment
-Rules that regard disparagement or criticism of the employer
-Rules regulating the use of the employer’s name
-Rules banning off-duty conduct or participation in outside organizations
-Rules against making false or inaccurate statements
-Rules restricting speaking to the media on company’s behalf
Page 6
Name some rules that are unlawful to maintain.
-Confidentiality rules (re: wages, benefits, or working conditions)
-Rules against joining outside organizations
-Rules against voting on matters concerning the employer
Page 7
What is an HR Generalist?
An HR manager who is required to know understand all of the major personnel functions and how they interact with other business functions.
Page 7
What is an HR Specialist?
A member of the HR department who specializes in a particular HR function like staffing, health/safety, or employee relations.
Page 7
Know the layout of Dave Ulrich’s 2x2 model.
A) Processes (left side) vs people (right side)
B) Day-to-day operational issues (bottom) vs future/strategic issues (top)
-Role 1: Administrative expert (day-to-day; processes)
-Role 2: Employee Champions - safety, employee relations, etc. (people; day-to-day)
-Role 3: Strategic partner - cultural image of HR (future issues; processes)
-Role 4: Change agent - manages organizational designs, performance development (people; future issues)
Define “Advisory Role” and give some examples
Exists when the relationship between HR and the line managers is one of providing advice and counsel, and when the authority for deciding what to do is shared. (Advice regarding discipline/grievance issues, performance problems, job redesign, etc.)
Page 10
Define “Control Role” and give an example.
Exists when the HR department has the authority to make decisions regarding personnel policies and procedures that line managers are required to follow. (Ex.: When HR tells another department to achieve its affirmative action program objectives; a.k.a. “Functional Authority”.)
Page 10
Define “Service Role” and give some examples
Exists when the HR department provides assistance to line managers according to their requests. (Recruiting, record keeping, orientation training, etc.)
Page 10
Define “Balance Sheet”
A statement of financial position that reports a company’s assets, liabilities, and equity as of a specific point in time, such as the end of a company’s fiscal year. (Assets = Liabilities + Equity)
Page 11
Define “Income Statement”
A report of a company’s income, expenses, and profits over a certain period of time.
Page 11
Define “Budget”
A plan that describes expected income and expenses over a period of time.
Page 11
Define “Cash Flow Statement”
A report of the flow of cash in and out of a company, showing changes in the balance sheet and how these changes affect the availability of cash.
Page 11
What are some important functions of a budget?
-Control income
-Establish priorities
-Set performance goals
-Assign responsibilities
-Allocate the use of resources
-Forecast future needs
-Motivate individuals and organizational units
-Improve efficiency
-Monitor and evaluate performance
Page 11-12
Describe “Incremental Budgeting”
The previous budget is basis for the new budget, and an incremental allocation (usually a percentage) is added to/subtracted from the budget across the board.
Page 12
Describe “Top-Down Budgeting”
Upper-level management sets the budget, and gives lower-level managers direction on how to allocate the budgeted resources within their areas.
Page 12
Define “Bottom-Up Budgeting”
Lower-level managers determine the budgets for their individual departments, and submit them for review/approval.
Page 12
Describe “Activity-Based Budgeting”
The organization determines which activities need to take place to meet its goals, and the costs associated with these activities determine the budget.
Page 12
Describe “Formula-Based Budgeting”
Budgets are calculated using a pre-determined formula based on factors like enrollment. (Popular method used in higher education.)
Page 12
Describe “Zero-Based Budgeting”
Budgets start from zero, and managers are required to identify every activity and justify every expense.
Page 12
Define “Competitive Advantage”
What an organization does better than its competitors.
Page 13
Define “Strategy”
The goals and policies designed to achieve competitive advantage in a particular marketplace. (I.e. A company’s game plan.)
Page 13
Define “Vision Statement”
What the company imagines (in detail) that it will become if successful. (If successful, what would the organization look like in ten, twenty years?)
Page 14
Define “Mission Statement”
A statement that explains why an organization exists, whom it serves, and why it should continue. (What’s the organization’s purpose? What business is it in? What values will guide it?)
Page 14
Define “Purpose Statement”
It explains what the organization seeks to accomplish and why it deserves the commitment of members and the support of the public. (Why does your organization exist? How is the world going to be different as a result of the company?)
Page 14
Define “Business Statement” and give a couple of examples.
A statement that identifies the organization’s business activities or functions. (Essentially, “What business are you in?) Examples: A ranch’s business statement might be “To produce and transport Alfalfa”; a construction firm’s business statement might be “To construct affordable housing for first-time homeowners.”
Page 15
Define “Values Statement”
Statements that explain the values and beliefs that members hold in common and try to follow.
Page 15
What are five things that useful mission statements should do?
-Identify the purposes of the organization.
-Differentiate the firm from its competitors.
-Define the company’s business (activities and products).
-Identify/explain the firm’s relationships and obligations to all relevant stakeholders.
-Explain how it will contribute to society and improve lives.
Page 15
Name four important characteristics of generic organizational strategies.
-They promote the org.’s mission and goals.
-They have a long-term focus.
-They have plans of action needed to achieve its mission/goals.
-They recognize external factors, especially competitors’ reactions.
Page 16
Define the “SWOT Method”.
With regard to the strategic management process: -Strengths -Weaknesses -Opportunities -Threats Page 16
What are the six steps of the strategic management process?
- Identify the mission and decide, “What business are we in?”
- Environmental scanning (identifying opportunities and threats)
- Analyze the organization’s strengths and weaknesses.
- Formulate an overall generic strategy for the organization to follow.
- Implement the strategy effectively
- Evaluate/monitor the effects of the new strategy to maintain a competitive advantage
Page 16-17
Define “Environmental Scanning”.
Examining the demographic and social forces influencing the long-term composition of the labor force and the future availability of employees.
Page 16
Define “Core Competency”.
Unique skills or resources that give an organization a competitive edge.
Page 17
Name some common components found in most business plans.
-Executive summary
-Description of the company, and its history, products/services
-Market analysis and marketing plan
-Description of management team
-Budget and financial analysis of resources and needs
-Operations plan describing responsibilities and actions with timetables and realistic, measurable goals
Page 19
What are the three major purposes of budgets?
- Coordination and integration
- Motivation
- Control and evaluation
Page 20
Define “Coordination and Integration”.
The budgeting process of establishing objectives in advance and identifying the steps by which they will be accomplished.
Page 20
Define “Motivation”.
The result of goal setting and feedback, which are involved in the budgeting process.
Page 20
Define “Control and Evaluation”.
When budgets are used to monitor a business’s performance.
Page 20
Define “HR Metrics” (a.k.a. “Workforce Analytics).
Specific indicators that are used to measure progress of achievement with respect to people (how they are recruited, trained, retained, terminated, etc.).
Page 20
Name some frequently used employee measures.
-Job satisfaction and measures of company morale
-Organizational commitment and involvement
-Turnover, retention rates
-Absenteeism rates/sick leave days taken
-Grievance rates
-Exempt terminations (as a percentage of exempt employees)
-Nonexempt terminations (as percentage of nonexempt employees)
Page 21
Name some frequently used productivity measures.
-Input/output ratios
-Revenue per employee
-Cost per employee
-Units produced per employee
-Profit per employee
-OSHA incident rate
-Cost of a new hire
-Time fo fill vacant positions
-Worker Compensation cost per employee
Page 21
Name some frequently used HR process measures.
-HR department expense (as a percent of operating expenses)
-Ratio of total employees to HR employees
-Compensation (as a ratio of company operating expenses)
-Benefits (as a percent of payroll or operating expenses)
-Training expense per employee
-Cost per hire
-HR department expenses per employee
-Compensation (as a percentage of revenue)
-Retiree benefit cost per retiree
-Ratio of job offers made to acceptances - yield ratios
Page 21
What is the equation for “Revenue Factor (Revenue per FTE)” (Full-Time Equivalent employees)?
Revenue / Total Number of FTE
Page 22
What is the equation for “Revenue per Labor Costs”?
Revenue / Total Labor Costs
Page 22
What is the equation for “Human Capital ROI”?
[Revenue - (Operating Expense - (Compensation cost + Benefits Cost))] / (Compensation cost + Benefit cost)
Page 22
What is the equation for “Human Capital Value Added”?
[Revenue - (Operating Expense - (Compensation cost + Benefit Cost))] / Total Number of FTE
Page 22
What is the equation for “HR Expense Factor”?
HR Expenses / Total Employees
Page 22
What is the equation for “Absence Rate”?
[(Number of days absent in the month) / (Average number of employees during the month) x (Number of workdays)] x 100
Page 23
What is the equation for “Turnover Rate”?
[# of separations during the month / Average # of employees during month] x 100
Page 23
What is the equation for “Cost per Hire”?
(External costs + internal costs) / number of hires
Page 23
What is the equation for “Turnover Costs per Employee”?
(Separation Costs + Replacement Costs + Training Costs + Lost Performance) / Number of Replacements
Page 23 -24
What is the equation for “Time to Fill”, and what is the average time-to-fill a position?
Total days elapsed to fill requisitions / Number hired
Average time-to-fill: 36 days
Page 24
What is the equation for “Training Investment Factor”?
Total Training Costs / Headcount
Page 24
What is the equation for “Health Care Costs per Employee”?
Total cost of Health Care / Total Employees
Page 24
What is the equation for “Employee Benefits as a Percent of Payroll”?
Total employer benefits payments / Total gross payroll
Page 24
What is the equation for “HR-to-Employee Ratio”?
(Total number of HR FTEs / Total Number of FTEs in the Organization) x 100
Page 24
Define “Human Resource Outsourcing”.
The practice of contracting with outside specialists to perform selected HR functions.
Page 25
What are three reasons why a company may outsource its HR functions?
- Outside experts can perform HR functions more efficiently, using economies of scale.
- Outside experts can use their expertise and a broader perspective to do the functions better.
- Outside experts are better prepared to keep up with technological and legal changes.
Page 25
What HR functions are commonly outsourced?
-Payroll administration
-Benefits administration
-Record keeping and information systems
-Retirement Counseling
-Outplacement and relocation
-Health and wellness programs
-Testing (drug, psychological, etc.)
-Training and development, (learning system outsourcing (LSO))
-Recruitment, (recruitment process outsourcing (RPO))
Page 25
Define “Professional Employer Organization (PEO)”.
A company that contracts with an employer to manage almost all HR functions by typically co-employing the company’s workers in a relationship in which the PEO is the employer of record (for tax purposes) while the client company directs the employees’ day-to-day activities.
Pages 25-26
Define “Employee Leasing”.
A company that contracts with an employer to manage almost all HR functions by typically hiring an employer’s employees and leasing them back to the employer.
Pages 25-26
What are some things that PEOs are typically allowed to do in their contractual relationships with employers?
-Co-employ workers and assume legal responsibility for certain HR functions for those workers
-Reserve right to direct/control employees and share the responsibility with the employer consistent with the employer’s responsibility for its product or service.
-Pay wages and employment taxes of the employees out of its own accounts
-Report, collect, and deposit employment taxes w/ state and federal authorities
-Establish/maintain a long term relationship with its employees
-Retain right to hire, counsel, fire employees.
Page 26
Define “HRIS”.
Human resource information system. A collection of information about the people working for the organization, usually stored in a computer-based system.
Page 27
Define “Enterprise Resource Planning” (ERP).
A computer-based system that integrates the various processes throughout a business, such as inventory control, order management, production, customer service, accounting, and HR.
Page 27
What are the major uses of an HRIS?
-HR planning
-Diversity reports
-Compensation reports
-Personnel research
-Training-needs assessment
Pages 27-28
What types of information need to be kept up-to-date in an HRIS?
-Employment applications
-Performance evaluations
-Personnel change notices
-Disciplinary actions
-Payroll data
Page 28
Define “Gap Analysis”.
A method that compares the current situation to the desired situation in order to identify the “gap,” or the changes required to reach the desired state.
Page 29
Define “Shared Services Model”.
An alternative to (or type of) outsourcing where HR functions are centralized at service centers to promote HR expertise and to deliver improved company wide services for large, diversified companies.
Page 29
What are some ways to making communications readable?
-Use simple language
-Keep sentences short (<20 words)
-Keep discussion of each issue to < 1 page
-Use wide margins on all sides
-Use graphics whenever it contributes to the explanation
-Keep the communications short (e.g. handbooks to < 30 pages)
Page 31
What are some suggestions for a technology use policy?
-Clearly state that all electronic communications are monitored; no privacy should be expected when using social media at work or on company-owned property.
-Explain that all employer-owned devices are to be used for business purposes; establish guidelines on inappropriate use.
-Explain that privacy of elec. communications can’t be ensured even with passwords, encryptions, etc.
-Establish limits of personal use of technology during work hours.
-Establish consequences of misusing technology; have employees sign acknowledgment of the policy.
-State that one’s personal devices may be wiped clean if terminated.
Pages 31-32
What five decisions are involved in creating an organization?
- Departmentalization
- Delegation of authority
- Coordinating mechanisms
- Division of labor
- Span of control
Page 34
Explain the difference between Functional and Product Departmentalization.
-Functional Departmentalization clusters jobs that are associated with performing a particular function (Accounting, Engineering, etc.)
-Product Departmentalization clusters jobs that work to create a particular product.
Pages 34-35
Define “Centralized Authority”.
When authority to make organizational decisions is held by top managers within the central office.
Page 35
Define “Decentralized Authority”.
When authority to make decisions is given to lower-level managers and supervisors.
Page 35
Define “Integrating Mechanisms”.
Methods for coordinating the activities of an organization that vary in the amount of discretion they allow members. Five methods range from direct supervision to mutual adjustment.
Page 36
What are the five different coordinating mechanisms for worker discretion?
- Direct supervision (supervisor tells workers what to do)
- Standardization of work processes (routine jobs like assembly line)
- Standardization of outputs (workers allowed some discretion as long as the output meets the required specifications)
- Standardization of skills (skilled/trained employees like EMTs)
- Mutual adjustment (salaried/professional jobs)
Page 36
Define “Division of Labor”.
The process of dividing work into specialized jobs that are performed by separate individuals.
Pages 36-37
Name five advantages of specialized labor.
- It increases proficiency by allowing the employee to perform the same repetitive activity.
- Less training is needed to master the job.
- Less time is lost going between different jobs.
- Special tools can be developed to partially or completely automate a certain task.
- Higher output quality.
Page 37
Define “Span of Control”.
The number of subordinates assigned to a supervisor.
Page 37
What four situational variables should be used to determine whether a larger span of control would be appropriate?
- Required amount of contact
- Level of subordinate education/training
- Ability to communicate
- Nature of the task
Page 38
Define “Matrix Structure”.
A blend of two different forms of departmentalization, usually functional and product departmentalization. Matrix structures create dual accountabilities in which workers report to two supervisors, usually a functional leader and a product manager.
Page 38
Define “Matrix Tax”.
The disadvantages of a matrix structure, which include increased role ambiguity, stress, and anxiety.
Page 39
Define “Culture”.
Organizational rules and beliefs that are relatively enduring and resistant to change.
Page 41
Define “Climate”.
Characteristics that are temporary and capable of being changed. (E.g. overall morale)
Page 41
Define “Organizational Climate”.
The characteristics describing an organization that are relatively visible and stable, but amenable to change. (E.g. employee attitudes)
Page 41
Define “Organizational Culture”.
The long-term shared beliefs of an organization.
Page 42
Define “Cultural Artifacts”.
Tangible cultural aspects that can be perceived with our senses, and that reflect the rules and beliefs of the organization’s culture. (E.g. behaviors, language, landscape, logos, furniture, rules that govern behavior in an organization, etc.)
Page 42
Define “Shared Norms”.
Situation-specific rules that are not typically directly visible but can be inferred from the organization’s cultural artifacts. (E.g. If most people report to work a few minutes late then it can be inferred that punctuality is not an important norm.)
Page 42
Define “Cultural Values”.
These are the collective beliefs, ideals, and feelings of members about the things that are good, proper, valuable, and right.
Page 42
What are the four criteria used to examine the usefulness of cultural values?
- Viable? (Feasible/do-able in the current business environment?)
- Balanced? (Is it just as important as other values?)
- Aligned? (Consistent with other values?)
- Authentic? (Do most people believe in it?)
Page 42
Define “Shared Assumptions”.
Assumptions that affect how people think about what happens in organizations.
Page 42
Define “External Adaption”.
How an organization responds to the external environment and the changes that occur in it. (What did the organization do to deal with a crisis? How has the organization changed its strategy, structure, technology, etc. to cope with external changes?)
Page 44
Define “Internal Integration”.
How an organization establishes and maintains effective working relationships among its members.
Page 44
What are six forces that maintain organizational cultures?
- Selection/retention of employees
- Allocation of rewards and status
- Reactions of leaders
- Rites and ceremonies
- Stories and symbols
- Reactions to crises
Page 44
Name and explain four things that leaders can do to increase their personal power and exert greater influence in an organization.
- Spend time on important activities. (Subordinates will know how important an activity is by how much time their leaders spends on it.)
- Change/enhance the setting. (New, more elaborate furnishings means the activity is more consequential and important.)
- Study and interpret history (how things were handled in the past when a similar situation arose).
- Establish a dominant value expressed in a slogan. (To help motivate others)
Page 45
What are the benefits of rites and ceremonies?
-To reward/recognize employees whose behavior reflects the company’s values
-To provide managers an opportunity to reinforce certain values and beliefs.
Page 45
Define “Organizational Myths”.
Significant stories that are told about an organization’s earlier years that impact the way members think about its history (symbolically speaking) even if they are not true. (E.g. Advice from well-tenured employees, etc.)
Page 45
What are the six steps suggested for changing an organization’s culture?
- Conduct a culture audit.
- Assess need for change.
- Unfreeze the current culture.
- Seek support from the cultural elite. (Get input from top management.)
- Implement an intervention strategy. (Make the necessary changes.)
- Monitor/evaluate
Page 47
What are the eight characteristics of an inclusive workplace?
- There is a welcoming workplace culture.
- Equality and human rights policies in force.
- All staff members aware of inclusive values.
- The workforce is representative of the local community/customers.
- All employees encouraged to develop and progress.
- Unnecessary hierarchies/occupational segregation - discouraged.
- The organization takes action to address tensions w/in workplace.
- Inclusive strategies fully supported/promoted by senior staff.
Page 48
Define “Sarbanes-Oxley Act”.
The law requires publicly traded companies and their independent auditors to demonstrate to the SEC that their numbers are accurate, and that they have processes in place to ensure accurate reporting.
Page 49
What are some of the SOX Act implications for HR?
-Section 301: Complaint system and an anti-retaliation statement are to be established/maintained, and are to be communicated to employees, customers, former employees, etc.
-Section 306: No insider trading, and at least 30 days advance notice to employees before blackout periods
-Section 402: No personal loans to members of the board of directors and executives
-Section 404: Annual reports to contain an internal control report of financial reporting, etc.
-Section 406: Anti-fraud code of ethics for executive officers
-Section 806: Whistle blower protection from retaliation
Pages 49-50
Define “Archive Data”.
The type of information contained in HR files.
Page 52
Define “Unobtrusive Measures” and give some examples of them.
Data that are collected in such a way that it does not influence how an employee behaves. (Usually data that the company already has on file)
-(Accident records, affirmative action records, disciplinary records, exit interviews, grievance reports, HRIS, insurance records, etc.)
Page 52
Define “Observations”.
An intrusive measure used to answer some research questions that cannot be answered through other means.
Page 53
Define “Hawthorne Effect”.
The effect that states that the process of observing an employee’s performance often causes the employee to behave differently.
Page 53
In conducting HR research, what four kinds of data are typically available?
- Archive Data
- Observations
- Interviews
- Questionnaires
Page 52
Define “Interviews”.
An HR research method in which broad questions can be asked to gain rich information, especially through focus groups, despite being a time-consuming method.
Page 53
Define “Questionnaires”.
An HR research method that is best-developed by asking questions that are relevant to issues that are most important to the majority of workers.
Page 53
Define “Reliability”.
The consistency of the measure. (E.g. Are the questions on a questionnaire clear?)
Page 53-54
Define “Validity”.
The quality of measure that refers to research instrument’s ability to actually measure or predict what it intends to measure or predict. (E.g. Does a questionnaire measuring company commitment really measure what it is supposed to measure? Are people with high scores more loyal? Do the people who leave have lower scores? Are the scores related to the willingness of employees to defend the company against public criticism?)
Page 54
Define “Normal Distribution”.
The most common frequency distribution in which the scores tend to be concentrated near the middle with fewer scores near the side ends of the distribution (forming a bell-shaped curve).
Page 54
Define “Functional Authority”.
The authority exercised by the HR department when it is authorized to establish policies and procedures and monitor compliance with them. (A.k.a. the “Control Role”)
Page 10
Define “Staff Authority”.
The right and responsibility to advise/assist those who possess line authority. (A.k.a., the “Advisory/Counseling Role”.)
Page 10
What are the major uses of a Human Capital Management System (HCM)?
- HRIS
- Onboarding
- Employee performance
- Position control
- Succession
- Salary planning
- Global Support
- Analytics
What are the major uses of an HR Management System (HRMS)?
- HRIS
- HCM
- Payroll processing
- Time and labor
Define the details of the “Civil Rights Act of 1964, Title VII”.
-The act that prohibits discrimination in employment on the basis of race, color, religion, sex, or national origin.
-Prohibits terminating or refusing to hire someone because of these factors.
-Prohibits limiting, segregating, or classifying employees/applicants for employment opportunities because of these factors.
-Prohibits employment discrimination in training.
-Requires employers compile/maintain records used to determine if unlawful employment practices are being/have been used.
Page 68-69
Define “Bona Fide Occupational Qualification” (BFOQ).
Employers are allowed to discriminate on the basis of religion, sex, or national origin only when these factors are necessary for the operation of a business; the same applies for advertisements and recruiting activities.
Pages 68, 69
What types of employers does Title VII apply to?
It applies to: -Employers with 15+ employees -Employment agencies -Labor organizations -State/local governments -Educational institutions Page 68
Define “Equal Employment Opportunity Commission” (EEOC).
A government agency created by the 1964 Civil Rights Act; it enforces Title VII of the Act, its amendments, and other Acts pertaining thereto.
Pages 68, 73
Explain the six changes made by the Civil Rights Act of 1991.
- Shifting the burden of proof: The burden of proof returns to the employee after a case of discrimination has been demonstrated.
- Particularity: If an applicant claims that the hiring process is discriminatory they must identify the particular discriminatory practice.
- Foreign Practices: Extends protection to U.S. citizens working for U.S. companies abroad unless U.S. laws conflict with local laws.
- Race Norming: Prohibits adjusting test scores, using different cut-off scores, or altering results of employment-related tests based on race, sex, religion or nat. origin.
- Motivating Factors: If a complaining party can demonstrate that any illegal factor (sex, race, etc.) was a “motivating factor” then the employer is in violation of the law.
- Remedies: Jury trials with possibility of punitive/compensatory damages.
Page 69
Per the Civil Rights Act of 1991, what are the monetary limits for punitive/compensatory damages resulting from an employment discrimination lawsuit?
For employers with:
- 15 - 100 employees: $50k
- 101 - 200 employees: $100k
- 201 - 500 employees: $200k
- 501+ employees: $300k
Define “Business Necessity”.
A justification for a business practice that has a discriminatory effect, which can be justified by showing that:
-It is necessary to the safe, efficient operation of the business
-It effectively fulfills the purpose it is supposed to serve
-There are no alternative policies/practices that would serve the same purpose with less discriminatory impact
Page 70
Which factor is never a legitimate BFOQ?
Race is never a legitimate BFOQ.
Page 70
Define “Disparate Treatment”.
A legal foundation for charges of illegal discrimination that is available when employment actions are improperly based on disability, age, race, sex, or national origin. Evidence of a discriminatory motive must be shown.
Page 70
Define “Direct Evidence of Discrimination”.
Evidence that demonstrates an intent to discriminate. (E.g. A statement saying that members of a certain ethnic group are ineligible for employment or advancement.)
Page 70
Define “Cohort Analysis”.
A comparison of the treatment of similarly situated individuals or groups. (E.g. An employer accused of laying off a minority employee should use a cohort analysis to prove that all similarly situated employees were also laid off.)
Page 70
Define “Disparate Impact”.
To have the effect of discriminating. A recruitment or selection procedure is said to have a disparate impact if the activity tends to significantly reduce the number of minorities or females who are accepted for employment; it’s a legal basis for pressing charges of discrimination.
Pages 70-71
Name some examples of “Racial Harassment”.
-Racial epithets
-Derogatory comments
-Verbal harassment
-Graffiti
-Racist jokes
-Name-calling
Page 71
Define “Glass Ceiling”.
Attitudinal and organizational barriers that inhibit the career advancement of women.
Page 71
Per the Supreme Court, accommodation for religious observances should not require an employer to…?
- Sacrifice the rights of other workers to accommodate another employee
- Breach a collective bargaining agreement to provide benefits of special needs that would not be equally enjoyed by others
- Suffer a loss in work unit efficiency in their efforts to accommodate
- Provide more than “de minimus” action (e.g. pay overtime to others, etc.)
Page 73
What are the powers of the Equal Employment Opportunity Commission?
It has the jurisdiction to: -Investigate discrimination charges -Attempt to reconcile the parties -Bring suit in federal court on behalf of an aggrieved employee -Issue notice of “right to sue” Page 73
Define “Right to Sue”.
A notice issued by the EEOC to an aggrieved employee, authorizing the aggrieved employee the ability to sue a company for his/her discrimination claim.
Page 73
Explain the statute of limitations for filing a Title VII claim.
An employee has 180 days to file a discrimination grievance, but it can be extended to 300 days if their state has an agency that also has a law prohibiting the same type of discrimination.
Page 74
Define “Tolling”.
With regard to filing discrimination grievances, tolling refers to the extended amount of claim filing time given to cases in which there is an ongoing pattern of discrimination occurring over an extended period.
Page 74
How does the Lily Ledbetter Fair Pay Act impact the filing of discrimination claims?
The Act resets the 180/300 day clock every time a new paycheck is issued.
Page 74
If an employer is found guilty of discrimination, what decrees for remedies can a court call for?
-Back-pay
-Reinstatement (or promotion if it was denied)
-Stopping of discriminatory practices (not using a testing process, etc.)
-Creation of special recruitment/training programs
-Payment of attorney/court fees
Page 75
Define “Rightful Place”.
When an employee who is the victim of discrimination is made whole, and is restored to his/her job, seniority level, and salary level that they would otherwise have held.
Page 75
What are the common elements of “Make Whole Relief”?
These include: -An award of the position originally denied -Back-pay with interest -Retroactive seniority Page 75
Name some suggestions for properly handling EEOC complaints?
-Never ignore the charges
-Save relevant documents
-Avoid retaliation
-Maintain confidentiality
-Prepare a position statement
-Take advantage of mediation when appropriate
Pages 75-76
What three events must occur for someone to be an “applicant”?
- The employer has acted to fill a particular position.
- The individual has followed the employer’s standard procedures for submitting an application.
- The individual has indicated an interest in the particular position.
Page 76
For government contractors, what four criteria are used to define an internet applicant?
- Individual submits electronic expression of interest in employment
- Contractor considers the individual for employment
- Individual’s expression of interest indicates that he/she has the basic qualifications for the position
- The individual at no point withdraws from the selection process
What types of data should an employer maintain on each applicant?
-Name, sex, and race
-Job applied for
-Date of the application
-The EEO category of the job
-The hiring decision (if rejected, reason should be listed, and the step in selection process when it occurred should noted)
-Individual’s test/interview scores - recorded
-Document how person was referred to the company
Page 76
How long should employers retain employment/termination records?
-Private employers - one year from the date of the HR action
-State/local governments/educational institutions - two years
Page 76
Define “Adverse Impact”.
A selection procedure is said to have an adverse impact if the selection rates for any minority or gender groups are less than 4/5ths of the selection rate for the highest group.
Page 76
Define the “Four-Fifths Rule”.
The selection procedure guideline used by the EEOC that says that a selection procedure is biased if the selection rate for any protected group is less than four-fifths of the selection rate for any other protected group.
Page 76
What are employers expected to do when adverse impact exists?
Either:
-Show that the selection process is valid (related to job performance)
-Stop using the selection process
-Find an alternative process that has less discriminatory effect
Pages 76-77
Define “Adverse Action”.
An action taken to try to keep someone from opposing a discriminatory practice or from participating in a discrimination proceeding. (E.g. termination, refusal to promote, unjustified negative evaluation, etc.)
Page 77
Define “Covered Individuals”.
People who have opposed unlawful practices, participated in proceedings, requested accommodations related to employment discrimination based on race, color, sex, religion, national origin, age, or disability.
Page 77
Define “Protected Activity”.
Includes:
1. Opposition to a practice believed to be unlawful discrimination
2. Participation in an employment discrimination proceeding
Page 77
Define “Executive Orders”.
Orders issued by the President of the United States.
Page 77
Define “Order Number 4”.
-The common name for Executive Order 11246
-Prohibits employment discrimination by federal government contractors and subcontractors
-Requires government contractors to develop affirmative action in hiring/promoting minorities, women, veterans, etc.
Page 78
Define “Office of Federal Contract Compliance Programs” (OFCCP).
A government agency in the Department of Labor that reviews the affirmative action programs of government contractors and monitors their compliance.
Page 78
What are the OFCCP’s strategies?
- Prioritize enforcement by focusing on the worst offenders.
- Encourage employers to do self-audits of their practices.
- Use every available resource to protect as many people as possible from discrimination.
Page 78
Define “First-Tier Subcontractor”.
A subcontractor holding a subcontract with a prime contractor.
Page 78
What does Order Number 4 require with regard to contractors?
Contractors, and their first-tier subcontractors who have 50+ employees and $50k or more in contracts are to develop a written affirmative action program, and establish equal employment opportunity goals.
Page 78
Define “Affirmative Action Program”.
A written document that defines the good faith efforts an employer is making to hire/promote minorities, women, Vietnam era veterans, disabled veterans, and people with disabilities.
Page 78
Define “Utilization Analysis.”
A comparison of the percentage of minorities and women in each job group with their respective availability in the surrounding labor force.
Page 78
Define “Placement Goals”.
Targets that a contractor establishes to address underutilization in any job group and to measure progress toward reaching its affirmative action objectives.
Page 78
Define “Reverse Discrimination”.
Where preferential treatment is shown females and minorities, often to achieve an affirmative action goal.
Page 79
Define “Conciliation”.
An informal process of agreement used by the EEOC for resolving charges of discrimination.
Page 75
Define “Suboptimizing”.
One of the disadvantages of Functional Departmentalization, which results from a lack of communication/cooperation between departments.
Page 35
Define the details of the Age Discrimination in Employment Act (ADEA).
-Protects those who are over 40 from age discrimination.
-Applies to private companies with at least 20 employees.
-Expressly excludes executives/high policy-making employees from coverage, allowing them to be forced into retirement at 65, provided a) an executive has held the position for at least two years immediately prior to retirement, and b) must be entitled to a retirement income of at least $44k/yr exclusive of SSI benefits.
Page 79
What are the few situations in which employers are allowed by ADEA to make adverse decisions against workers over age 40?
-When age is a Bona fide occupational qualification (e.g. hiring a teen model)
-When the decision is based on a valid seniority system (e.g. A younger worker has more seniority in reduction of force)
-When disciplinary action/discharge is based on “good cause”
-When the action is based on “reasonable factors other than age,” like labor costs or budgetary restrictions.
-Must prove “but for” causation (i.e. employee must prove that age was the ONLY reason for employer to take adverse action).
Page 80
What guidelines should Early Retirement Programs follow?
-ERISA coordination (Employees should receive a benefits description summary plan)
-Eligibility requirements (E.g. Managers with 20+ years of service, etc.)
-Incentive (Fair and sufficient to attract enough employees)
-Employee acceptance (Participation must be “knowing and voluntary”)
Page 80-81
What are the criteria required by the Older Workers Benefit Protection Act, regarding the signing of releases?
- Release must be understandable
- Must specify that it covers claims potentially arising under the ADEA, but it cannot require employees to waive their rights to file discrimination with EEOC
- Must exclude from coverage any claims arising after the signature date
- The consideration provided for signing release must be in addition to anything else the employee might expect to receive (no bribes or coercion.)
- Must advise the employee to consult with an attorney about its terms
- Employee must be given at least 21 days to consider signing (45 days if a group termination); must be allowed up 7 days to revoke release after signing it
- For a group termination, the person must be informed of the class affected, eligibility factors, and job titles/ages of those selected for and (excluded from) the program.
Page 81
Define “Age Harassment”.
Demeaning comments and actions directed toward older employees, such as age-related jokes, sarcasm, and derisive labels.
Page 81
Define “Constructive Discharge”.
When an employer intentionally creates a work environment so intolerable as to compel a reasonable employee to quit, and actually results in the employee quitting.
Page 81
Define the details of the Vocational Rehabilitation Act as Amended.
-Prevents discrimination against those with a handicap
-Applies to government contractors/subcontractors with 50+ employees and $50k+ in contracts; should have written affirmative action plans
-Applies to employers who receive federal funding
Page 82-83
Define the details of the Vietnam Era Veterans Readjustment Assistance Act.
-Prohibits discrimination against Vietnam Era veterans in general.
-Applies to federal contractors w/$25k+ in contracts
-Employers w/$150k+ in contracts and 50+ employees to take affirmative action in hiring/advancing qualified and/or disabled Vietnam Era veterans
-Jobs must be listed with nearest state employment office, except for top management jobs, positions filled from within, or jobs lasting less than three days
Page 83
How does the Americans with Disabilities Act apply to employers?
-Protects people with disabilities from discrimination
-Applies all employers with 15+ employees, and requires them to make reasonable accommodations to hire disabled people
Page 83
Define “Person with a Disability”.
An individual who:
1. Has a physical or mental impairment that substantially limits at least one major life activity
2. Has a record of such an impairment, such as cancer or heart disease
3. Is regarded as having such an impairment, such as being a FORMER drug addict or alcoholic.
Page 83-84
Define “Direct Threat”.
-A disease or physical condition that poses a significant risk to the health/safety of the individual or others. (E.g. Highly contagious disease among food preparation workers)
-The ADA does not protect people who pose a direct threat unless reasonable accommodations can reduce the threat.
Page 84
Define “Reasonable Accommodations”.
-Modifications in the job or changes in the work setting that make it possible for an individual with a disability to work successfully
-These changes should not be excessively expense nor should they interfere with normal operations.
-(E.g. Special training/assistance for the disabled, special training for coworkers who interact with the disabled)
-“Good faith interactive dialogue” should be used between employer and disabled employee. (Consulting with the disabled)
Page 84
Define “Otherwise Qualified”.
A disabled individual who is capable of performing the essential functions of a job if necessary barriers created by their disability are eliminated.
Page 85
Define “Essential Functions”.
The major tasks, duties, and responsibilities for which the job exists; they cannot be modified or eliminated without substantially changing the nature of the job.
Page 85
What kinds of questions may an employer ask a candidate during an interview with regard to any disabilities he/she may have?
-Employers may only describe the essential functions of the position, and then ask the applicant if he/she can perform them.
-Candidates are responsible for requesting reasonable accommodations.
Page 85
Once making a conditional job offer, are employers allowed to conduct pre-employment medical exams, or ask an applicant medical-related questions?
Yes, provided that all other candidates who receive job offers are treated the same way.
Page 85
Define “Genetic Information Nondiscrimination Act” (GINA).
-Prohibits discrimination against employees based on their or their family’s genetics/health history such as cancer, heart disease, etc.
Page 86
Define “Uniformed Services Employment and Re-Employment Rights Act” (USERRA).
-Prohibits discrimination against employees who serve in any branch of the military, National Guard, commissioned corps of the Public Health Service, or any other category designated by the President in time or war/emergency.
-Prohibits employers from denying employment, re-employment, retention in employment, promotions, etc. because of service.
-Applies to voluntary and involuntary service, and time spent in duty, training, physical exams, etc.
Page 86
Which employers are subject to USERRA?
-Applies to ALL employers regardless of size or other limiting criteria.
Page 86
Under which conditions does USERRA not apply, or protect employees who are service members?
-An employer is NOT required to re-employ a service member if it’s impossible or unreasonable. (E.g. a plant closed, employee’s department was eliminated.)
-An employer is NOT required to re-employ a service member if his/her job is a temporary position (e.g. holiday/seasonal position).
-USERRA does NOT protect service members who are dishonorably discharged.
-If injured in military, they can be given a job that they CAN do.
Page 86
Define “Immigration Reform and Control Act” (IRCA) as Amended.
-Prohibits employers from hiring undocumented workers.
-Requires all new employees to complete and sign a verification form (I-9) to certify their eligibility for employment.
Page 87
What two types of verification are required by the I-9 Form?
-Proof of identity (Driver’s license, state ID card)
-Proof of employment eligibility (Social security card)
(Passport = proof of both)
Page 87
When should I-9 Forms be completed?
-W/in 3 days of date of employment (for employers to complete section 2); section 1 must be completed by employee on 1st day.
-Must be completed BEFORE work is started for jobs lasting less than three days.
-If necessary, employers may file for time extensions.
Page 87
How long should employers retain I-9 forms?
Employers are required to retain I-9 Forms for three years, or for one year passed the employment of the individual, whichever is longer.
(I.e. If they worked for less than 2 years, keep the form for three years after the date you entered in the First Date of Employment field. If they worked for more than 2 years, retain their form for one year after they stop working for you.)
Page 87
How may I-9 Forms be stored?
-Printed format
-Electronic format (with enhanced privacy/security protection)
-In a separate Form I-9 file or with the rest of an employee’s records.
Page 87
What is the legal penalty for employers who unlawfully hire an undocumented worker?
-A maximum of $21,563 for a third offense.
Page 87
What is the legal penalty for failing to comply with the recording-keeping provisions of IRCA?
-A maximum of $2,126 for each individual, regardless if he/she has the right to work.
Page 87
Name some documents that establish both identity and employment authorization.
-U.S. Passport book/card
-Permanent Resident Card or Alien Registration Receipt Card (Form I-551)
-Foreign passport that contains a temporary I-551 stamp or temporary I-551 printed notation on a machine-readable immigration visa
-Employment Authorization Document that has a photo (Form I-766)
-For non-immigrant alien authorized to work for a specific employer incident to status: a foreign passport w/ Form I-94 or Form I-94A bearing the same name as the passport and containing an endorsement of the alien’s nonimmigrant status, as long as the period has not yet expired and the proposed employment is not in conflict with any restrictions or limitations identified on the form
-Passport from the Federal States of Micronesia (FSM) or the Republic of the Marshall Islands (RMI) with Form I-94 or Form I-94A indicating nonimmigrant admission under the Compact of Free Association Between the United States and the FSM or RMI.
-H-1B visas for temporary foreign workers; cannot displace local workers
Pages-87-88
Name some documents that establish identity.
-Driver’s license/federal/state/local government ID card that contains: photo, name, DOB, sex, height, eye color, address
-School ID card with photograph
-Voter’s registration card
-U.S. Military card/draft record
-Military dependent’s ID card
-U.S. Coast Guard Merchant Mariner Card
-Native American tribal document
-Canadian driver’s license
-For minors: school record/report card, clinic/doctor/hospital record, day-card/nursery school record
Page 88
Name some documents that establish employment authorization.
-Social Security Account Number card provided it does not specify that the issuance of the card doesn’t authorize employment in the U.S.
-Birth certificate issued by Department of State
-Original or certified copy of a birth certificate issued by a State, county, etc. that bears an official seal
-Native American tribal document
-U.S. citizen ID card
-ID card for Use of Resident Citizen in the United States
-Employment authorization document issued by the Dept. of Homeland Security
Page 88
What is E-Verify?
-An internet-based system established by the federal government to simplify the process of verifying an employee’s employment eligibility
-It provides either an employment authorization or a tentative non-confirmation (TNC)
Pages 88-89
What is a TNC, and what should an employer do in the event of one?
-A tentative nonconfirmation (TNC) indicates a mismatch in the E-Verify system. If this occurs, an employer should notify the employee of the TNC, and allow the employee to correct any errors or typos.
-Employees will receive a notification of the mismatch directly from the USCIS via email if they provided an email address on their I-9 Form. Employers must enter the email address from the I-9 Form into E-Verify.
Page 89
Define “Skills Inventory”.
The database of employees’ skills and knowledge, which is maintained in the company’s HRIS for making placement/promotion decisions.
Page 91
What information is typically useful in an employee profile?
- Present job category
- Skills/knowledge/experience
- Educational level (degree, certificates)
- Geographical location (if a global/decentralized company)
- Length of service
- Retirement plans
- Time in current position
- Potential for development/interest in promotion
- Wage/salary history
- Performance rating/supervisor evaluations
- Attendance record
- Disciplinary actions
Page 92
What information should be kept in an HRIS for research and EEOC reporting purposes?
-Information regarding each employee’s age, race, religion, sex, national origin, marital status, and number of dependents.
Page 92
What type of information should NOT be included in the HRIS?
Information that is:
-Irrelevant to the organization’s strategic business plan
-An invasion of personal privacy
Page 92
What are the reasons for turnover?
- Retirement
- Death/disability
- Layoff
- Discharge
- Quits
- Promotions to another division
Page 92
What are the major activities involved in succession planning?
- Reviewing information about managerial candidates
- Determining whether a candidate is promotable/competent
- Determining requirements for the position
- Identifying most likely replacements for each management job
- Initiating developmental activities for promising candidates (grooming/training programs, special projects, etc.)
Page 93
Define “Turnover Rate”.
The percentage of employees to leave the organization during a given period of time.
Define “Replacement Chart”.
An organizational chart showing the employees who hold various positions and their most likely replacements.
Page 94
Define “Career Pathing”.
The development of a sequential series of career activities that an individual might pursue during his or her career.
Page 95
Define “Promotion from Within”.
When vacancies in management positions are filled by promoting lower-level managers.
Page 92
Define “Dual Career Ladders”.
Managers can move up two career ladders simultaneously. Moving up the managerial ladder = greater power/decision-making authority, and moving up the technical ladder = greater autonomy in practicing the profession.
Page 95
Define “Bumping”.
The practice that allows senior employees whose jobs are eliminated to “bump” less senior employees and take their jobs.
Page 96
Define “Attrition”.
A reduction in the number of personnel caused by failing to replace people who leave.
Page 96
Define “Shared Work”.
A strategy that allows employers to reduce everyone’s hours and wages and receive partial unemployment benefits to supplement their lost wages.
Page 97
Define “Rolling Layoff.”
A process in which workers rotate in and out of unemployment.
Page 97
Define “Outplacement”.
The services that are provided to employees who are terminated because of corporate restructuring; these may include personal counseling, resume preparation assistance, job interview coaching, etc.
Page 98
Name some steps that organizations can take to minimize the loss of employee loyalty during downsizing.
- Be honest and straightforward about the real issue.
- Explain what’s being done and why.
- Make cuts consistent with historical performance criteria.
- Create a program to help terminated employees find new employment.
- Communicate openly; put central ideas in writing to make them clear.
- Make and communicate the strategies being made to prevent layoffs from occurring again.
- Establish contingency funds and encourage employee participation to minimize the need for distrust.
Define “Tax Equity and Fiscal Responsibility Act” (TEFRA).
The Act that officially recognized the practice of employee leasing, in which companies are allowed to exclude leased employees from their pension plans if the leasing company includes them in its pension plan.
Page 99
What is the primary advantage of employee leasing?
It reduces the costs and tasks associated with HR services.
Page 99
What is the primary disadvantage of employee leasing?
Executives don’t like the idea of giving up control to a third party.
Page 99
What types of firms are ideally suited for employee leasing?
-Firms with 50 or fewer people.
-Non-profit organizations.
Page 99
Define “Job Analysis”.
The analysis of jobs within a company that produces a job description or a job specification.
Page 101
How does a job evaluation differ from a job analysis?
A job analysis focuses on determining a job description/specification, whereas a job evaluation focuses on how much money the job holder should be paid for performing the job.
Page 101
When are job analyses typically performed?
- When the organization is first started, and the job-analysis program is initiated for the first time
- When a new job is created
- When a job is changed significantly as a result of new methods, procedures, or technology
Page 101
Name some of the major uses of job analysis information.
-HR planning (used to develop the job categories)
-Recruiting (used to describe job openings, advertise new jobs)
-Selection (used to identify skills, etc., that serve to determine which candidates to select)
-Orientation (used to tell employees what activities must be performed)
-Evaluation (used identify the standards, perf. objectives that employees are evaluated against)
-Compensation (used to eval. job worth, and aid in developing wage structure)
-Training (used to assess training needs by identifying the activities that employees ought to be able to perform)
-Discipline (used to identify standards of acceptable performance)
-Safety (used to identify safe working procedures)
-Job redesign (used to analyze characteristics of a job that need to be changed in job redesign projects)
-Legal protection (used to identify the essential functions that people with disabilities must be able to perform; can also protect an org. in other disputes like unemployment compensation, etc.)
Page 101-102
What are the objectives that competency models are expected to facilitate?
-Communication of industry needs
-Career exploration and guidance
-Career paths, ladders, and lattices
-Workforce planning
-Curriculum development and evaluation
-HR services to business
-Certification and Licensure
Page 102
Define “Job Description”.
The description of the duties, responsibilities, working conditions, and reporting relationships contained in a job.
Page 103
What are the major items included in a job description?
- Identification (Job number, title, department, etc.)
- Job Summary
- Duties and responsibilities - essential functions, non-essential functions
- Job specifications
Page 103
Define “Essential Functions”.
The major tasks, duties, and responsibilities of a job which are the reason the job exists, and cannot be changed without substantially changing the nature of the job.
Page 103
Define “Non-Essential Functions”.
Tasks that could be modified/re-assigned to others without changing the core nature of the job.
Page 103
Define “Job Specification”.
A listing of the minimum knowledge, skills, education, experience, and abilities required to perform a job.
Page 104
The information contained in a job specification typically falls into one of which three categories?
- General qualification requirements (experience, training, etc.)
- Educational and professional requirements
- Knowledge, skills, and abilities
Page 104
Define “Dictionary of Occupational Titles” (DOT).
A dictionary consisting of more than 13,000 job descriptions compiled by the Department of Labor.
Page 104
Define “Job Identification”.
A label or occupational code number associated with each job; each job in the Dictionary of Occupational Titles has a unique nine-digit identification number.
Page 104
Define “Occupational Information Network” (O*NET).
An internet database designed to replace the Dictionary of Occupational Titles (DOT).
Page 104
For HR managers, what are the major benefits that O*NET provides?
-It has more than 275 standardized descriptors of skills, tasks, etc.
-ONET Questionnaire is available for companies to use to apply ONET descriptors to their own particular situation.
-Its info. can be used to find skill sets to match jobs with the right applicant.
-Its info. and tools can be used for developing training materials.
-Its tools and info. can help to define success factors for promotion/advancement.
-Its info can be used for developing wage and compensation systems.
Page 105
What four methods can be used to gather job analysis information?
- Observations
- Interviews
- Questionnaires
- Employee Recordings
Page 105
What’s one disadvantage of using the observation method to analyze a job?
-Jobs that involve a lot of thinking (professional jobs, etc.) are difficult to analyze, based upon behavior.
Page 106
When interviewing an employee, what useful question should you ask him/her to describe the skills and abilities required of their job?
-“If someone had to replace you, what would he/she need?”
Page 106
Define “Position Analysis Questionnaire” (PAQ).
A standardized questionnaire containing 195 items that are used in a job analysis to create a job description.
Page 106
What are the six major categories of a job that a PAQ measures?
- Information input (Where does the worker get the info used in doing the job?)
- Mental processes (What reasoning, decision-making, etc. involved in the job?)
- Work output (Physical activity in the job? Tools/devices used?)
- Relationships with others
- Job context (In what physical/social context is the work done?)
- Other job characteristics (What other activities, etc. are relevant to the job?)
Page 107
What is the primary use of the information obtained in a PAQ?
-It’s useful in making salary comparisons (between occupations, companies, or even between males and females)
Page 107
Define “Functional Job Analysis” (FJA).
It assumes that all jobs involve basic activities associated with data, people, and things, and that these are the important dimensions for evaluating every job.
Page 108
What are the two sections of a functional job analysis?
-Performance Standards and Training Requirements
-Specific job instructions, reasoning/judgment, mathematical ability, and language abilities
Page 108
What are some examples of “employee recordings”?
-Time log
-Daily diary
-Documenting activities
Page 108
Define “Employment Branding”.
The process of developing and projecting an image that defines a company as an outstanding employer.
Page 110
Define “Employee Value Proposition” (EVP).
A statement that describes what a company has to offer its employees compared to other places of employment.
Page 110
What things should a company’s employment brand and EVP do?
-Communicate its culture, values, and objectives; build the public’s image of the organization.
-Provide an honest picture of the company’s work environment.
-Tie the company’s employment brand to its product brand.
Page 111
What are the steps of the recruiting process?
- Formulating a recruiting strategy
- Searching for applicants
- Screening applicants
- Maintaining an applicant pool
Page 111
Define “Employee Requisitions”.
An authorization to recruit a new employee to fill a job opening.
Page 111
Define “Yield Ratios”.
Ratios that show the number of applicants at one stage of the recruiting process who move on to the next stage.
Page 112
Define “Quality of Hire”.
A metric used to evaluate the effectiveness of a company’s hiring process.
Page 113
Name some commonly used measures in determining quality of hire.
-On-the-job performance
-Retention rate
-Performance appraisal score
-Relationship between interview and performance
-Customer service score
-360-degree feedback score
-Talent scorecard
-Rate of salary increase
-Performance error rates
-Inclusion in succession plan
-Promotion rate
-Promotion frequency
-Average bonus
Page 113
Define “Job-Posting”.
An internal recruiting process in which job vacancies are advertised to present employees so that those who want to be considered for the job vacancy are allowed to apply for the job.
Page 114
Define “Job Bidding”.
An internal recruiting process that allows employees who believe they have the necessary qualifications to apply for a job opening.
Page 114
What are the guidelines for an effective job-posting-and-bidding system?
-Posted where employees are likely to see them
-All full-time promotions and transfers should be posted
-Jobs should be posted for at least a week before recruiting from outside
-Job specification should be included
-Eligibility rules/criteria should be clarified
-All applicants should be informed once a decision is made
Page 114
Define “Nepotism”.
Employment practices that show favoritism to friends or relatives.
Page 116
What are some suggestions for how to succeed in hiring family members?
-Avoid playing favorites
-Require family members to obtain outside experience
-Provide management support for following correct procedures
Page 117
What is the primary disadvantage of offering only web-based options for job applications?
It may have an adverse impact on minorities who may not have access to a computer or the internet.
Page 117
What is the Partnership for Youth Success (PaYS) program?
A recruitment program developed by the U.S. Army in 2000 to help recruits explore their career interests and match them with enlistment options. When released, recruits are promised opportunities to interview with some of the PaYS partner firms.
Page 119
Define “Job Service”.
Public employment agencies operated by each state under the general direction of the federal government that provide job placement, training, counseling, and testing as free services.
Page 119
What is the typical range for the fee charged by a private employment agency?
-10%-20% of the employee’s first year’s salary.
Page 120
Who pays a private employment agency’s fee?
-The employer does if it is the one requesting employees.
-The employee does if he/she is the one seeking assistance in obtaining employment.
Page 120
Define “Headhunters”.
Executive search firms that search for individuals who are able to assume positions of leadership for client organizations.
Page 120
What is the approximate fee charged by most “headhunter” firms?
-Between 30% and 40% of an executive’s annual salary.
Page 121
What is the typical markups for temporary or temp-to-hire employees through a temporary agency?
-45% to 60%.
Page 122
Define “Gig Worker”.
An individual who is hired usually through a website or mobile app to complete a single project.
Page 122
Per the Bureau of Labor Statistics, what are the occupations that may be best suited for gig work?
-Arts and design (musicians, graphic designers)
-Computer and IT (web/software developers)
-Construction (contractors, carpenters, painters)
-Media and Communications (videographers, photographers)
-Transportation (rideshare drivers, delivery drivers)
Page 122
What are some special events that organizations can use to attract potential recruits?
-Job fairs
-Open houses
-Hospitality Suites
Page 122
What are the two primary advantages of resume sharing?
- Reduces recruiting costs
- Convenience for everyone
Page 123
Define “Recruitment Management System”.
A system that tracks applicants as they move through the recruiting process.
Page 125
Define “Applicant Tracking System”.
A system that tracks applicants as they move through the steps of the recruitment and application process.
Page 125
What tasks can applicant tracking and management systems perform?
-Post jobs to corporate and online sites
-Collect applicant information
-Store data for later retrieval/analysis
-Provide tools to screen, assess, and rank applicants
-Track applicants/jobs through recruitment process
-Connect with background-screening providers to verify past education and employment
-Manage schedule of recruitment/selection events
-Notify applicants of progress through process
-Integrate with organization’s HRIS
-Generate reports for effectiveness reviews and government reporting
Page 126
What did the Uniform Guidelines on Employee Selection Procedures do?
-Updated the previous guidelines
-Established more uniform criteria regarding employment discrimination and the procedures required to eliminate discrimination
-They apply to all types of personnel decisions and selection procedures such as tests, etc.
Page 126
What purposes do application blanks serve?
-Assist in preparing for the employment interview
-Provide info subject to verification for reference checks
-Provide info for personnel records
Page 126
What kinds of information do application blanks typically request?
-Vital statistics (name, address, etc.)
-Educational background
-Work history
-Background experiences (professional associations, hobbies, etc.)
Page 127
Define “Patterned Interview”.
A structured interview in which the interviewer asks a series of predetermined questions.
Page 127
What are the advantages of a patterned interview?
-Less biased
-More reliable
Page 128
What types of applicants would a patterned interview style be most suited for?
-Applicants with disabilities
Page 128
Define “Semi-Structured Interview”.
One in which the interviewer determines the major questions beforehand, but allows sufficient flexibility to probe into other areas as needed to evaluate an applicant’s personality.
Page 128
What types of questions might be asked in a semi-structured interview?
-Why did you choose your particular field of work?
-What courses in school did you like best/least? Why?
-What do you hope to be doing in ten years?
Page 128
Define “Behavioral Interviews”.
One in which an applicant describes either past or anticipated future behaviors.
Page 128
What are two types of behavioral interviews?
-Situational interviews
-Targeted-selection interviews
Page 128
Define “Situational Interview”.
One that consists of asking candidates to respond to a series of hypothetical scenarios by deciding what actions they would take.
Page 129
Define “Targeted-Selection Interview”.
One in which the questions focus on what the person has done in previous situations; the interviewer uses the answers to rate the applicant on the critical target dimensions for that position.
Page 129
What are “STAR” components?
-Situation/Task the applicant faced
-Action taken by the applicant
-Result that occurred as a result of the action
Page 129
Define “Non-Directive Interview”.
-An unstructured interview in which the interviewer allows the candidate to discuss whatever he or she wishes to discuss (usually by asking open-ended questions).
Page 129
What types of questions might be asked in a non-directive interview?
-Tell me about yourself.
-What are your future vocational plans?
-Tell me about your experiences on your last job.
-How do you spend your time, and what are your hobbies?
Page 129
How should an interviewer successfully conduct a non-directive interview?
-Listen carefully
-Limit question
-Don’t argue or interrupt
-Allow pauses in the conversation
-Occasionally rephrase responses encourage the candidate to elaborate more
Page 129
Define “Stress Interview”.
One in which the candidate is subjected to intentionally created stress to observe how well he/she performs in that situation.
Page 130
Define “Group Interview”.
One in which a group of applicants are interviewed at one time.
Page 130
Define “Board/Panel Interview”.
One in which an applicant is interviewed by a group of interviewers at one time.
Page 130
What are ten proposed principles of good listeners?
Good listeners:
1. Look for areas interest
2. Overlook errors of delivery and objectionable personal mannerisms
3. Postpone judgment until they understand the whole story/point
4. Listen for ideas and identify main points
5. Take careful notes
6. Are actively responsive in trying to listen
7. Resist distractions
8. Challenge their minds by trying to learn difficult material
9. Capitalize on mind speed
10. Assist and encourage the speaker by asking for clarifying information and rephrasing ideas
Page 131
What are the two levels of empathic listening?
- Expressed level (restating, paraphrasing content of the response)
- Implied level (attending/addressing what is implied or left unstated)
Page 131
What are some biases created by mental shortcuts during the interviewing process?
-Contrast effect (applicant’s evaluation is partially influenced by previous applicant)
-Anchoring bias (evaluation is made based on first impressions)
-Negative emphasis bias (interviewer is highly influenced by negative information)
-Similarity bias (candidates who remind the interviewer of someone outstanding tend to be viewed more favorably)
-Halo/horn effect (one characteristic of a person (pos. or neg.) strongly influences every other impression that the interviewer has of him/her)
-Cultural noise bias (telling the interviewer what he/she wants to hear)
-Stereotyping (interviewer assumes that a candidate is intelligent, athletic, etc. based upon the candidate’s race, sex, ethnicity, etc.)
-Intuition bias (interviewer trusts his/her intuition more than objective data in evaluating a candidate)
-Ideal employee bias (interviewer uses his/her preconceived notion of an “ideal candidate” to evaluate candidates)
-Confirmation bias (interviewer draws conclusions about a candidate based on early information and then searches for, favors, and remembers info that confirms that conclusion)
-Racial and gender bias (when an interview is used as an opportunity to discriminate against minorities and women)
Page 133 - 134
Define “Achievement Tests”.
Tests that measure how much an individual has already learned.
Page 134
Define “Aptitude/Ability Tests”.
Tests that measure an individual’s capacity for learning.
Page 134
What is the “g-factor”?
The general intelligence factor of a mental ability test.
Page 135
What are the three major categories of aptitude/ability tests?
- Mental abilities
- Mechanical abilities
- Psychomotor abilities
Page 135
What is “psychomotor ability”?
An individual’s skills in making various body movements.
Page 135
What are some specific psychomotor abilities that have been identified and tested?
-Control precision
-Multi-limb coordination
-Reaction time
-Speed of arm movements
-Manual dexterity
-Finger dexterity
Page 135
Define “Assessment Center”.
A selection procedure primarily used for selecting managers in which candidates participate in individual and group exercises and are evaluated by observers.
Page 135
Define “Qualified Privilege Doctrine”.
It allows past employers to share relevant job-related personal information about an applicant with future employers.
Page 136
If a candidate’s social media information is used in the selection process as a background check method, how/when should it be used in the process?
-It’s not a recommended background check method.
-All social media checks should performed at the same point in the application process (normally after interviewed, judged to be viable).
-Decisions to reject applicants due to their social media content should be carefully documented to defend the company’s decision in court.
Page 137
What are some potential indications of academic credential fraud?
-Degrees that are out of sequence
-Degrees obtained in less than normal time
-Degrees located in cities where the applicant wasn’t living
-School address discrepancies
-Schools that charge per degree rather than per credit/course basis
-Schools whose degrees are largely based on credit for work/life experiences
-Unaccredited schools
Page 138
What types of interview questions are employers allowed (and encouraged) to ask an applicant?
-Dates of (and gaps in) employment
-Suspicious entries or omissions
-Are they eligible for rehire?
-Educational background
-Military service/training
-Verification of positions held, titles, salary, etc.
-Incidences of bad behavior
-Criminal background
Page 138
Define “Negligent Hiring”.
A legal theory that makes employers liable for the abusive acts of employees if the employer knew or should have known about the employee’s propensity for such conduct.
Page 138
Define “Consumer Report”.
One that may contain info regarding an individual’s credit standing, character, reputation, personal characteristics, and mode of living.
Page 139
True or false? Before requesting a consumer report, employers are required to obtain signed permission from employees or job applicants.
True.
Page 139
True of false? Disclosures to applicants, informing them that a credit report may be purchased, may be included on the same page as other application information.
False. Disclosures regarding applicant credit checks must be made on a separate piece of paper, and the consumers must sign it.
Page 139
Define “Investigative Consumer Report”.
One that includes info on a consumer’s character, general reputation, personal characteristics, lifestyle, etc, and is obtained through personal interviews with neighbors, friends, or associates of the consumer.
Page 139
What are employers required do before obtaining an investigative consumer report?
-Disclose to the applicant (in writing) that such a report may be obtained
-The notice must be delivered to the subject of the report within 3 days of requesting the report.
Page 139
If a consumer/applicant makes a written request to know the scope/nature of an investigative consumer report about him/herself, how long does the employer have to respond?
The employer has 5 days to respond.
Page 139
What must the employer do if any adverse employment action is based (in whole or in part) on the consumer report?
It must provide:
-A copy of the report to the applicant
-A copy of the applicant’s rights under the Consumer Credit Reporting Reform Act (CCRRA).
Page 139
What are the three criteria employers need to consider when evaluating an applicant’s conviction records to demonstrate business necessity?
-The nature/gravity of the offenses
-Time lapsed since the offense occurred/completion of the sentence
-The nature of the job applied for
Page 140
True or false? Employers can require a physical examination before making an official job offer to an applicant?
False. Employers covered by the ADA can’t require one until AFTER a conditional employment offer is made.
Page 140
True or false? The ADA requires that the results of medical examinations must be collected on separate forms and maintained in confidential files separate from other application materials.
True.
Page 142
If eliminated during the candidate selection process, when should applicants be informed that they are not a candidate for the position?
As soon as the decision is made.
Page 142
Define “Fill Time”.
How long it takes to replace a departing employee or fill a new job opening.
Define “Hard Freeze”.
All open positions will remain unfilled for an indefinite period of time.
Page 96
Define “Soft Freeze”.
Nonessential jobs will remain vacant, but openings will be filled if they are critical to the success of the company.
Page 96
What are the six objectives regarding pay decisions?
- Be legal.
- Be adequate.
- Be motivating.
- Be equitable.
- Provide security.
- Be cost-benefit effective.
Page 157
What does the “compensation maxim” state?
Employees should be compensated:
1. According to the job requirements, and how well they perform the job
2. By labor market conditions (supply and demand) and the organization’s ability to pay.
Page 158
Define “Pay Secrecy”.
A policy that restricts employees from discussing their pay, and limits the amount of information about pay that can be made public.
Page 159
Define “Wage-Level Decision”.
-The decision that answers the question, “How much does one company pay relative to other companies with similar jobs?”
-A wage survey
-Primarily concerns pay adequacy
Page 159
Define “Wage-Structure Decision”.
-The decision that answers the question, “How much is paid for one job relative to other jobs within the same company?”
-Its main purpose is to provide equal pay for jobs of equal worth, and an acceptable set of pay differentials for jobs of unequal worth.
-(e.g. Engineering pay vs. Marketing pay in the same company)
Page 159
Define “Individual Wage Decision”.
The decision that answers the question, “How much money does an employee receive relative to the money received by other employees who perform similar work?”
-(e.g. Engineer vs. engineer at same company)
Page 159
What are three objectives that a sound wage-level policy is expected to achieve?
- Attract adequate supply of labor
- Keep employees satisfied with their compensation
- To avoid costly turnovers
Page 161
Define “Compensation/Wage Survey”.
A survey that collects information about the compensation and benefits of other employees in similar industries or in the same geographical area.
Page 161
What types of organizations conduct wage surveys?
- Government agencies (like the Bureau of Labor Statistics (BLS))
- Professional organizations (Forbes, Glassdoor)
- Individual companies (Chamber of Commerce)
Page 161
What four conditions must be met for surveys done by business associations (Chambers of Commerce, etc.) to be useful?
- Reciprocity (Orgs that conduct surveys must share their wage info)
- Anonymity (Orgs that share their wages must not be identified)
- Low cost (Efficient and inexpensive)
- Timeliness (Info must be current, esp. in times of high inflation)
Page 162
What are the government guidelines for employers to use when exchanging salary data to avoid violating the law?
-Neutral/3rd party manages the exchange
-The exchange involves info that is relatively old (3-18 months)
-Info is aggregated to protect the identity of the underlying sources
-Enough sources are aggregated to prevent competitors from linking particular data to an individual source (at least five organizations)
Page 163
Define “Job Evaluation.”
The method used to determine the relative worth or value of each job in an organization.
Page 164
What are the methods used by job evaluation systems?
-Job ranking (non-analytical)
-Classification (non-analytical)
-Point method (analytical - uses detailed job analysis)
-Factor comparison (analytical - uses detailed job analysis)
Page 165
What is a “whole job” evaluation method?
-A method used to determine the relative worth of jobs from an overall, global assessment of the content of the jobs.
-Examples: Ranking and classification
Page 165
Define “Job-Ranking Method”.
The simplest method of developing a wage structure, which involves ranking jobs from highest to lowest in value.
Page 165
Define “Classification Method”.
A predetermined-grading method in which the job descriptions for each job are compared with a classification scheme that ranks the jobs in a hierarchy of job worth.
Page 165
Define “Point Method”.
-The compensable factors of key jobs are used to develop the wage curve. Points are assigned to each factor, and the total points are associated with a specific pay level.
-Most frequently used job evaluation method
Page 165
What are the six steps for developing the point method?
- Identify key jobs.
- Identify job factors used to determine compensable factors.
- Weigh job factors according to their contribution to the overall worth of the job.
- Divide each job factor into degrees that range from high to low, and assign points to each degree.
- Assign degrees to the job factor of each key job, and calculate the total points for each job by summing the points assigned for each factor.
- Develop a wage curve using key jobs.
Pages 165-166
Define “Key/Benchmark Jobs”.
-Equitably paid jobs that are used in the point method to develop a wage structure. Key jobs are used to develop a wage curve, which is used to determine pay levels of other jobs.
-Sometimes called benchmark jobs
Page 165
Define “Compensable Factors”.
The factors associated with the different jobs that justify paying one job more than another.
Page 165
Define “Wage Curve”.
The line on a wage structure graph that shows higher levels of pay associated with higher level jobs.
Page 166
Define “Broadbanding”.
Creating wide labor grades so that there are fewer labor grades with more jobs in each one; doing so reduces the number of job classifications but increases the pay range.
Page 166
Define “Factor Comparison Method”.
A method for developing wage structure which involves identifying job factors (mental demands, responsibility, etc.) and assigning monetary amounts to each job on each factor.
Page 166
Define “Hay Guide Chart-Profile Method.”
A job evaluation method that uses three compensable factors - know-how, problem solving, and accountability, to determine how many points should be assigned to different jobs.
Page 166
Define “Job Pricing”.
The process of placing a dollar value on the worth of a job.
Page 167
Define “Pay Range”.
The range of pay associated with each pay grade, which indicates how much individual incentive is associated with the job.
Page 167
Define “Pay grade”.
A cluster of jobs along the hierarchy of job worth that are all paid the same rate of pay.
Page 167
Define “Compa-ratio”.
A number that compares a person’s pay rate with the midpoint of the pay range
-A compa-ratio = wage rate/midpoint of labor grade x 100
Page 168
How can compa-ratios be useful?
They can be used for budgetary control purposes or to investigate pay discrimination claims.
Page 168
Define “Step Increases”.
Pay increases that are based on performance and length of service.
Page 169
Define “Topped Out”.
When employees receive pay increases to the point that their salaries are at the top of their pay ranges, and are no longer eligible for pay increases based on performance; they will only receive higher salaries as the entire wage curve is increased.
Page 169
Define “Red-Circle Jobs”.
Jobs that are either overpaid or underpaid relative to the amount the wage curve indicates ought to be paid for them.
Page 169
What are underpaid jobs sometimes called?
Blue circle or green circle rates.
Page 169
What are five possible solutions to resolve pay issues for red-circle rates?
- Immediately reduce the employee’s wages.
- Notify employee that his/her pay will be gradually reduced over time.
- Hold his/her pay rate constant until cost-of-living/inflation increase the wage curve
- Add more responsibilities to his/her job.
- Promote him/her if qualified for a promotion.
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