Keller Graduate School of Management Study Guide for Final Exam 1. Give four examples of major Equal Employment Opportunity laws and/or regulations, including the name of the act, what it does, whom it covers and who enforces it. Name of Act| What is does| Whom it covers| Enforcement Agency| Title VII of the Civil Rights Act of 1964| Forbids discrimination based on race, color, sex, national origin, or religion| * Employers with 15 or more employees working 20 or more weeks a year * Labor Unions * Employment agencies * State and local governments| EEOC| Americans with Disabilities Act (ADA)| Prohibits discrimination against individuals with disabilities| Employers with 15 or more employees| EEOC| Age Discrimination in Employment Act (ADEA)| Prohibits discrimination in employment against individuals 40 years of age and older| * Employers with 15 or more employees working 20 or more weeks per year * Labor Unions * Employment agencies * Federal government| EEOC| Pregnancy Discrimination Act| Prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions| Employer With more than 15 employees| EEOC| 2. How has the role of HRM changed in recent years? Discuss three trends that are changing the HRM function. Why have these roles changed? The amount of time devoted to administrative tasks is decreasing, and HRM role as a strategic business partner is increasing. The advances in technology are taking over many of the administrative tasks, like managing employee records and allowing employees to get information and enroll in training, benefits and other programs. HR professionals need to prepare employees to work in foreign locations, because of globalization. In regards to sustainability, an aging workforce means that employers will increasingly face HRM issues such as retirement planning, and retraining older workers to avoid skill obsolescence. 3. Job analysis is important to HR managers because information gathered in job analysis is used in so many HR activities/functions. Describe how job analysis information is used in four different HR activities/functions. Job analysis is used in: Human resource planning requires accurate information about the level of skills in all jobs to ensure that enough employees are available to meet the strategic needs of the corporation. Selection - by determining the tasks that will be performed by the person hired and the knowledge, skills, and abilities the person must have to perform the job effectively. Training and Development - After the job tasks have been identified training can be effectively developed to ensure trainers can prepare people to perform their jobs successfully. Performance appraisal - emphasize the characteristics and behaviors of successful performers. 4. What are the differences among job analysis, job descriptions and job specifications? Job analysis is the process of getting detailed information about jobs. A job analysis is where all the detail is gained for the job description and job specifications. A job description is a list of the tasks, duties, and responsibilities that a job entails. Job specification is a list of the knowledge, skills, abilities, and other characteristics that an individual must have to perform a job 5. Which is not an advantage of employing temporary workers as a means of eliminating a labor shortage? Temporary workers may have little experience. They may also make the full time employees feel threatened, especial after downsizing has occurred. 6. What is downsizing? Discuss the four major reasons why organizations engage in downsizing. In general, are downsizing strategies successful? List reasons why or why not. Downsizing is the planned elimination of a large number of employees designed to enhance organizational effectiveness. Reasons for downsizing include: * need to reduce labor costs * technological changes reduce need for labor mergers and acquisitions reduce bureaucratic overhead * organizations choose to change the location of where they do business Studies show that firms that announce a downsizing campaign show worse, rather than better financial performance. Reasons include: * The long-term effects of an improperly managed downsizing effort can be negative. * Many downsizing campaigns let go of people who turn out to be irreplaceable assets. * Employees who survive the staff purges often become narrow-minded, self-absorbed, and risk-averse. 7. Forecasting indicates the need for skilled technical employees in your company will increase dramatically this year. If the company continues on its present ourse, it will experience a substantial labor shortage by year's end. Something must be done fast, but management is concerned about maintaining its flexibility. Which of the options for avoiding expected labor shortages identified in the text would be most appropriate under these circumstances? Explain your answer. To remain flexible and do something fast regarding the upcoming forecasted labor shortage, the company can do one of these or a combination; hire temporary workers, outsource, or offer overtime. Hiring temporary workers helps eliminate a labor shortage. Temporary employment affords firms the flexibility needed to operate efficiently in the face of swings in demand. 8. Define utility and then identify and discuss at least five factors likely to affect the utility of any test. Utility is the degree to which the information provided by selection methods enhances the bottom line effectiveness. Reliability, generalization, validity, effectiveness enhances selection process, economic consequences of failure 9. Identify and discuss two specific ways in which the Americans with Disabilities Act has impacted (or constrained) the process of selecting employees. Under ADA, a firm must make "reasonable accommodation" to a physically or mentally disabled individual unless doing so would impose "undue hardship” like being cost prohibitive. There have been consequences of this act like increased litigation. The act was passed to protect people with major disabilities, but cases being filed do not reflect Congressional intent. 10. Discuss at least four ways to improve the performance feedback process. * Be specific, give often frequent (no surprises). Feedback should be given frequently, not once a year. * Create the right context for the discussion. A hall way would not be an appropriate environment for constructive feedback (criticism). * Focus feedback on behavior or results, not on the person. * Agree to specific goals and set a date to review progress. 11. Discuss the relationship between training, development and careers. Training focuses on helping employees’ performance in the current jobs. Development refers to formal education, job experiences, relationships, and assessment of personality and abilities that help employees prepare for the future. Careers are a sequence of positions held within an occupation. A career is a path in which training and development help to get employee to the next level. 12. Describe and discuss the different ways that job experiences can be used for employee development. Assume development is most likely to occur when there is a mismatch between the employee's skills and past experience and the skills required for the job. Job enlargement refers to adding challenges or new responsibilities to an employee’s current jobs. Job rotation is the process of systematically moving a single individual from one job to another over the course of time. A transfer is a movement of an employee to a different job assignment in a different area of the company Promotions advances into positions with greater challenge, more authority than the employee’s previous job. A downward move occurs when an employee is given a reduced level of responsibility and authority. 13. Explain what job withdrawal is, its three levels of progression and how it relates to job satisfaction. Progression of withdrawal is a theory that dissatisfied individuals enact a set of behaviors in succession to avoid their work situation. Three categories include: * behavior change * physical job withdraw * psychological job withdraw Withdrawal behaviors are related to one another, and they are all at least partially caused by job dissatisfaction. 14. Describe the impact of coworkers and supervisors on employee satisfaction. For what three reasons might an employee be satisfied with his or her supervisor or coworker? A person may be satisfied with his or her supervisor and coworkers for one of two reasons: shared values, attitudes, beliefs, and philosophies, strong social support 15. Describe the differences between internal equity comparisons and external equity comparisons, and explain their consequences on the organization. Two types of employee social comparisons of pay are especially relevant in making pay-level and job structure decisions. External equity pay comparisons focus on what employees in other organization are paid for doing the same job. Benchmarking is a procedure by which an organization compares its own practices against those of the competition. Such comparisons are likely to influence external employee movement like the attraction s and retention of quality employees, increase or decrease labor cost and employee attitudes. Internal equity pay comparisons focus on what employees within the same organization, but in different jobs, are paid. Consequences of internal equity on the organization are promotions, transfers, job rotation, cooperation among employees, and employee attitudes. 16. Why is it useful for organizations to think in terms of designing a mix of programs rather than choosing one overall compensation program? Give examples. A combination of compensation programs will help balance individual, group, and organizational objectives. Potential consequences of compensation programs are performance motivation of employees, attraction of employees, organization culture, and costs. Contingencies that may influence whether a pay program fits the situation are management style, and type of work. 17. Communication of compensation issues is argued to represent a strategic opportunity for an organization to distinguish itself from its competition. Why is this so? A change in the compensation system is likely to give rise to employee concerns. Changes may be upsetting to employees, cause rumors and assumptions, effect productivity, and lower moral, HR needs to demystify the process. Communicating changes effectively can distinguish a company from its competitors who are not good communicators. 18. Discuss and contrast defined benefit and defined contribution pension plans. ********will be on final********* Defined Benefit Plan * Guarantees a specified retirement benefit level to employees. Calculated payments based on age and service. * Insulates employees from investment risk. * PBGC (Pension Benefit Guaranty Corporation) guarantees basic retirement benefit in case of financial difficulties. ERISA (Employee Retirement Income Security Act) increased the fiduciary responsibilities of pension plan trustees, established vesting rights and portability provisions, and established the PBGC. Defined Contribution Plan * Does not promise employees a specific benefit level upon retirement. * Employers shift investment risk to the employee. * Most prevalent in small companies. 19. What are HMOs and PPOs? How do they differ from each other and from traditional health care providers? Health maintenance organizations (HMO) * focus on preventive care and outpatient treatment. * require employees to use only HMO services and providing benefits on a prepaid basis. * physicians and health-care workers paid a flat salary to reduce incentive of raising costs. Better for younger, healthier employees and dependants Preferred provider organizations (PPOs) * have contract with employers and insurance companies, to provide care at reduced fees. * do not provide benefits on a prepaid basis. * employees often are not required to use just the PPOs. * tend to be less expensive than traditional health care but more expensive than HMOs. * get to choose your doctor 20. Discuss flexible spending accounts, citing their purpose, benefits and drawbacks. Flexible spending accounts permit pretax contributions to an employee account that can be drawn on to pay for uncovered health care expenses, and child care, up to $5000 a year. Funds must be spent during the year or they revert to the employer (use it or lose it). The major advantage is that take-home pay increases because of pretax contributions. A drawback to employers is FSAs have high administrative costs. 21. What can management do to prepare for contract negotiations with a union? Pg 633 * Review the old contract. * Prepare and analyze data. * Anticipate union demands. * Establish the costs of various possible contract provisions. * Make preparations for a strike. * Determine the strategy and logistics. 22. Name and discuss the four factors that affect HRM in global markets. Which of them do you think is the most important factor and why? Implications of Culture for HRM (most important because it affects others) * The legal system is an outgrowth of the culture, reflecting societal norms. * Often determines effectiveness of HRM practices. Human Capital * Countries differ in their levels of human capital. * A country's human capital is determined by a number of variables, primarily, educational opportunity. * Countries with low human capital attract facilities that require low skills and low-wage levels. * Countries with high human capital are attractive sites for direct foreign investment that creates high-skill jobs. Political/Legal System * Dictates the requirements of certain HRM practices, such as training, compensation, hiring, firing, and layoffs. United States has led the world in eliminating discrimination in the workplace and controlling the process of labor management negotiations. Economic System * Under socialist economies, there is little economic incentive to develop human capital, but ample opportunity exists because education is free. * In capitalist systems, the opposite situation exists, with higher tuition at state universities but economic incentives exist through individual salaries 23. Discuss the four categories of HR linkages with the business. Pg 700 HR functions articulation of people outcomes stem more from an analysis of what their functions currently do than from an understanding of how those people outcomes relate to the larger business. People link functions have clear indentified, articulated, and aligned their HR activities around people issues and outcomes, but not business issues and outcomes. Business link HR functions begin with an assessment of what HR is doing, then identify the major people outcomes they should focus on, and, in a few cases, how those might translate into positive business outcomes. Business driven functions have fully developed HR strategies with begin in identifying the major business needs and issues, consider how people fit in and what people outcomes are necessary, and then build HR systems focused on meeting those needs. Source: Noe, R. , Hollenbeck, J. , Gerhart, B. , & Wright, P. (2008). Human Resource Management: Gaining the competitive advantage. New York: McGraw-Hill/Irwin.
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