Exam 1 Flashcards
content validity
Show the test to experts to see how well the test measures the ability to do the job
Summarize the findings of these experts in a report that you keep at HR
Criterion validity
Not based on opinion it is based on real data
Give actual test and compare job performance with test performance
Is there a better than chance relationship between test score and job performance
Concurrent Validity
Current employees take the test
(need about 100 people to take the test)
Encourage them to do the best as possible on test but they also there are no consequences for test results (no raise or demotion)
Predictive Validity
Rare Because it takes so long
Give the test to applicants
You don’t score it because you cannot use a non-validated test to make decisions
Then you wait after you hire them for a while to give the employee time to learn job
Then you get the result and compare the test to their job performance
Affirmative Action
Have to have your workforce meet the demographics of the labor force
Required for government contractors
Types of Affirmative action plans
Opportunity enhancement- Increase the marketing to demographics that you are missing or lacking in your workforce
Equal Opportunity- Making sure that there is no discrimination in your selection process
Tie-break/ Weak Preferential treatment- If there are two equally qualified employees you favor the one that fits the demographic that you have a gap in. This is only good if the company has had a past of discrimination in the hiring process
Strong Preferential Treatment- Illegal
Reverse discrimination Weber v United steel workers
Courts allowed the “reverse discrimination” because the company had a history of discriminating against African Americans for job promotions
Bakke vs State of california
Strong quota system deemed illegal
Cost Leadership
Companies like walmart that keep costs low
They like to have an efficient structure to hr that is centralized at corporate. HR initiatives are handed down from the top
They tend to have a stable planning horizon so growth from within is feasible because they know exactly what they are going to need in 5 years
HR jobs tend to have a more narrow set of duties
Product differentiation
Companies like apple that are innovative
They do not have a stable planning platform so it is harder to promote from within because they don’t know what they will need in 5 years.
HR jobs tend to be more broad
HR is decentralized and lower level HR tends to make more decisions
Markov Matrix
Predicts the likelyhood of people leaving and moving within a company
Is a helpful predictor for what you are going to need hr wise
Downsizing Approaches (RIF)
Attrition
○ Let people leave naturally
○ Don’t hire people to replace them
○ Inexpensive approach to layoffs
○ You don’t get to determine who is leaving
○ People left behind are doing more work than they did before
Early Retirement Buyouts
○ More expensive
○ Possible leadership drain because you are losing older possibly more experienced workers
○ Better for morale than layoffs
Layoffs
○ Morale concerns with surviving employees
○ You will lose survivors that don’t want to have uncertainty (possibly better performers)
○ Week of pay for every year of service (typical severance)not requiredMay offer assistance to find another job
Strategic Metrics
○ More long term and money based
○ Which employees are generating more revenue than others
ex Labor costs as percentage of operating costs
voulentary absenteesim
real reasonalble absense
involuntary absenteesim
fake reasons for absenteeism
Involuntary Turnonver
Involuntary turnover—terminations for poor performance or work rule violations.
Controllable Turnover
Controllable turnover—occurs due to factors that could be influenced by the employer.
Uncontrollable Turnover
Uncontrollable turnover—employees leave for reasons outside the control of the organization.
Dysfunctional turnover
Dysfunctional turnover—key individuals and high performers leave at critical times.
Volunatry Turnover
Voluntary turnover—employees leave by choice.
Functional turnover—lower-performing or disruptive employees leave the organization.
Psychological Contract
The expectations employees and employers have about the nature of their work relationships.
Civil Rights Act of 1964, Title VII
Established the Equal Opportunity Commission to enforce the act’s provisions.
Coverage
All private employers with 15 or more employees
All educational institutions, public and private
State and local governments
Public and private employment agencies
Labor unions with 15 or more employees
Joint labor/management apprenticeship committee
Griggs v Duke Power
○ Griggs (African American) was a low level but good employee
○ Wanted to get promoted but there was an aptitude test that he did not pass
○ Other African American coworkers did poorly while the Caucasians did well
○ Employer had the burden of proof
○ Could not show that the test related to job performance
Civil Rights Act of 1991
Employment practices must be job-related and consistent with business necessity.
Plaintiffs must challenge a particular employer practice and show that protected-class status played some role.
Provided limited compensatory damages for intentional discrimination.
Allowed plaintiffs to seek jury trials.
Prohibited race and gender norming of tests and the use of alternative scoring based on protected class membership.
Age Discrimination in Employment (ADEA)
Prohibits employment discrimination against all individuals age 40 or older working for employers having 20 or more workers.
Does not apply if age is a job-related qualification (BFOQ).
Uniform Guidelines on Employee Selection Procedures (1978)
Used by the EEOC, the Department of Labor’s OFCCP, the Department of Justice, and the Office of Personnel Management.
Attempt to explain how an employer should deal with hiring, retention, promotion, transfer, demotion, dismissal, and referral.
If sued, employers can choose one of two routes to prove they are not illegally discriminating against employees: no disparate impact, and job-related validity.
4/5ths Rule
If the selection rate for a protected-class is less than 80% (4/5ths) of the selection rate for the majority group or less than 80% of the group’s representation in the relevant labor market, then discrimination exists.
