HRM Reviewer by Kween Yasmin
Sector
Presentation 1
Types of Employees
Employees Roles
people in charge of others
and who are responsible for
the timely and correct
Managers execution of actions that
promote their units'
successful performance.
directly involved in
producing the company's
good(s) or delivering its
Line Employees service(s). In other words,
line employees are directly
in the front lines of the
organization.
those who support the line
function. For example, HR
Staff Employees departments are considered
staff employees.
those who have been with
the company longer and
Senior Employees have more responsibility
than junior employees.
(sometimes called salaried
employees) are those who
do not receive extra pay for
Exempt Employees overtime work (beyond 40
hours per week).
Non-exempt employees who receive
Employees overtime compensation.
Key HR Challenges
Environment
• Rapid Change
• Rise of the Internet
• Workforce Diversity
• Globalization
• Legislation
• Evolving Work and Family Roles
• Skill Shortages and the Rise of the Service
• Natural Disasters
Organization
• Competitive Position: Cost, Quality,
Distinctive Capabilities
• Decentralization
• Downsizing
• Organizational Restructuring
• Self-Managed Work Teams
• Small Businesses
• Organizational Culture
• Technology
• Outsourcing
Individual
• Matching People and Organization
• Ethical Dilemmas and
Social Responsibility
• Productivity
• Empowerment
• Brain Drain
• Job Insecurity
Organizational Culture
Organizational culture refers to the basic
assumptions and beliefs shared by members of an
organization.
Key Elements of Organizational Culture
Element Description
Observed Behaviors The language used and
the rituals
demonstrated.
Element Description
Norms Unwritten agreed-upon
values an organization
shares.
 Element Description Strategic HR: Choices
Dominant Values An organization
espouses, such as Work Flows
product quality or low • These are the ways tasks are organized to
prices. meet production.
Staffing
Element Description
Philosophy A firm's philosophy can • Finding the right employees at the right place
be seen in its slogans, and time are key to HR strategies.
frequent sayings, and
even the mission Employee separation
statement.
• Voluntary or involuntary. Include activities
such as early retirement options, hiring
Element Description freezes, providing support to terminated
Rules of the game Usually refers to "the employees, or rehiring.
ropes," or the norms a
newcomer must learn Performance Appraisals
to be an accepted • Managers assess how well employees are
member. performing assigned duties.
Training and Development
Element Description
Feeling of Climate Feeling conveyed to • Educational activities within a company
others in an created to enhance the knowledge and skills
organization by the of employees while providing information
physical layout and the and instruction on how to better perform
way in which members specific tasks.
of the organization
interact with one Compensation
another, customers, and
outsiders. • Payment employees receive in exchange for
their labor.

Strategic HR Policies: Benefits Employee Rights

• Encouraging Proactive Behavior • Concern the relationship between employee

• Communicating Company Goals and organization. Developing policies that
• Stimulating Critical Thinking and protect all interests is key.
Examination of Assumptions Employee and Labor Relations
• Identification of Gaps Between Current
Situation and Future Vision • Interaction between workers and
• Encouragement of Line Managers' management
Participation International management
• Identification of HR Constraints and
Opportunities • How to manage human resources on a global
• Creating Common Bonds basis
Selecting HR Strategies
• To increase firm performance.
• HR strategies should fit with other
organizational aspects.
HR Fit with Organizational Strategies
Corporate Strategies
Evolutionary Business
Steady State
Unique plan or framework that is long-term in nature,
with an objective to gain a competitive advantage
over other market participants while delivering both
on customer/client and stakeholder promises.
Evolutionary Business
• Responding to market dynamics, customer
demand and changing technologies to ensure
relevance and progress.
Steady State
• Company reaches a steady state when al
sources of competitive advantage are
exhausted, and its profitability and efficiency
ratios stabilize.
Porter's Business Unit Strategies
Cost Leadership
Differentiation
Focus
Assist businesses in anticipating competition
adjustments, influencing the evolution of industry
structure, and identifying more advantageous
strategic positions.
Cost Leadership
• A firm sets out to become the low-cost
producer in its industry.
Differentiation
• A firm seeks to be unique in its industry along
some dimensions that are widely valued by
buyers.
Focus
• Focus rests on the choice of a narrow
competitive scope within an industry.
Miles & Snow's Business Strategies
Defender
Prospector
Based on the idea that a manager formulates a
strategy in response to the organization's external
environment.
Defender
• Competitive strategy in which a business
concentrates on its existing products or
services and attempts to protect (rather than
expand) its market share by offering superior
quality, low prices, and strong customer
service.
Prospector
• Typically involves active programs to expand
into new markets and stimulate new
opportunities. New product development is
vigorously pursued, and offensive marketing
warfare strategies are a common way.
HR Fit with Organizational Characteristics
Production Process
• Firms with routine production processes tend
to benefit from HR strategies that emphasize
control, such as explicit job descriptions and
job-specific training.
Firm's market posture
• Firms that experience high sales growth and
product innovation tend to benefit from
strategies that support growth and
entrepreneurial activities.
Firm's overall managerial philosophy
• Firm's whose top executives are risk averse
tend to operate under autocratic-style
leadership, for example.
HR Fit with Environment
Limit potential liability.
What is the
opportunities?
Presentation 2
Understanding the Legal Environment
Do the right thing.
• Complying with the laws are a must, but it's
important to engage in fair practices such as
equal pay for same work regardless of gender,
race, or disability.
• Many companies have made headlines for not
Equal Employment Opportunity Laws
complying with the compensation laws.
• However, companies such as McDonald's
have taken the lead in hiring youth with
learning disabilities, which has created a
positive image with customers.
Realize the limitations of the HR and legal
departments.
• Although it's important to stay on top of the
laws, HR managers are also responsible for
maintaining record keeping, writing, and
implementing good HR policies, and
monitoring the firm's decisions.
• However, when managers make poor
decisions, the HR department will not always
be able to resolve them, nor can an
organization's legal department magically
solve the problems created by mangers.
• Thus, it’s important for HR team to impress
upon the organization the importance of
understanding and implementing fair
practices.
• Considerable financial liabilities can occur
when HR laws are broken or perceived to be
broken.
• Typical court awards to victims of age, sex,
race, or disability discrimination can be
upwards of $300,000 or more, depending on
the negligence.
right to equal employment
• Equal employment opportunity is a
government policy that requires that
employers do not discriminate against
employees and job applicants based upon
certain characteristics, such as age, race,
color, creed, sex, religion, and disability.
• Title VIl of The Civil Rights Act of 1964 and
1991 amendment
• Title VII and Pregnancy 1978
• Sexual harassment
• The Civil Rights Act of 1991
• Executive Order 11246, 1965
• The Equal Pay Act of 1963
• The Age Discrimination in Employment Act,
1967 (ADEA)
• American with Disabilities Act (1990)
• The Vocational Rehabilitation Act of 1973
A. Title VII of the Civil Rights Act of 1964
FIGURE 3.2
Title VII of the Civil Rights Act of 1964
Section 703. (a) It shall be an unlawful
employment practice for an employer-
1. to fail or refuse to hire or to discharge any
individual, or otherwise to discriminate against any
individual with respect to his compensation, terms,
conditions, or privileges of employment, because of
such individual's race, color, religion, sex, or national
origin; or
2. to limit, segregate, or classify his employees or
applicants for employment in any way which would
deprive or tend to deprive any individual of
employment opportunities or otherwise adversely
affect his status as an employee, because of such
individual's race, color, religion, sex, or national
origin.
A protected class is a group of people who suffered
discrimination in the past and who are given special
protection by the judicial system. This includes
African Americans, Asian Americans, Latinos,
Native Americans, and Women.
Types of Discrimination
Illegal under Title VII
Disparate Treatment (Intentional)
Discrimination that occurs when individuals are
treated differently (intentional) because of their
membership in a protected class.
Adverse Impact (Unintentionally)
Discrimination that occurs when the equal
application of an employment standard has a
discriminatory/unequal effect on one or more
protected classes
Defense of Discrimination Charges
When a discrimination case makes it to court, it is the
responsibility of the plaintiff (the person bringing
the complaint) to show reasonable evidence that
discrimination has occurred.
The legal term for this type of evidence is prima
facie.
Job relatedness
• Employer must show that the decision was
made for job-related reasons.
Bona fide occupational qualifications (BFOQs)
• Characteristics that must be present in all
employees for a particular job.
Seniority
• An employment decision is made in the
context of a formal seniority system.
Business necessity
• Necessary for the safe and efficient operation
of the organization and there is an overriding
business purpose for the discrimination
practice.
B. Title VII and Pregnancy 1978
• Title VIl amended to include protection for
someone with the ability to become pregnant
and actual pregnancy.
• The Pregnancy Discrimination Act of 1978,
which amended Title VII of the Civil Rights
Act of 1964, 42 U.S.C. §§ 2000e et seq.,
prohibits discrimination on the basis of
pregnancy, childbirth, or related medical
conditions.
C. Sexual Harassment
The EEOC has defined sexual harassment in its
guidelines as: Unwelcome sexual advances,
requests for sexual favors, and other verbal or
physical conduct of a sexual nature when:
• Submission to such conduct is made either
explicitly or implicitly a term or condition of
an individual's employment, or
 • Submission to or rejection of such conduct by
an individual is used as a basis for
employment decisions affecting such
individual, or
• Such conduct has the purpose or effect of
unreasonably interfering with an individual's
work performance or creating an
intimidating, hostile, or offensive working
environment.
Quid pro quo
Favor for a favor
• Sexual activity is required in return for
getting or keeping a job or job-related benefit.
Hostile work environment
Offensive and undesirable
• Occurs when the behavior of anyone in the
work setting is sexual in nature and is
perceived by an employee as offensive and
undesirable.
How to Handle a Sexual Harassment
Investigation
Timeliness: Managers should respond quickly,
within 24 to 48 hours.
Documentation: Managers should ask open-ended
questions and get as much detail as possible about the
complaint. Documenting everything, including date
and time, is important for the investigation.
Employee agreement: After documenting the facts
in the report, the manager should go over the events
with the complainant and document the employee's
agreement with the report.
Resolution: Managers should ask what end result the
employee is seeking.
Findings of fact: The manager should interview
witnesses who can corroborate or discredit the
allegations of sexual harassment.
Remedy: The employer is obligated only to take
steps reasonably likely to stop the harassment and
has the right to determine an appropriate course of
action.
D. The Civil Rights Act of 1991
The Civil Rights Act of 1991 was passed to ensure
that discrimination was strictly enforced and the
outcome was as follows:
Now the burden of proof was shifted to the employer,
meaning that the employer had to prove that there
was no discrimination, instead of originally it falling
in the hands of the employee having to prove
discrimination
The 1991 law prohibits quotas, which are employer
adjustments of hiring decisions to ensure that a
certain number of people from certain protected class
are hired.
The act also now allows for punitive damages, which
are fines awarded to a plaintiff to punish the
defendant for discriminatory acts.
The act also allows for compensatory damages,
which are fines awarded to a plaintiff to compensate
for the financial and psychological harm the plaintiff
suffered.
D. Executive order 11246, 1965
Executive Order 11246:
Prohibits discrimination against the same categories
of people in Title VII but says that organizations
under government contract (contracts over $50,000
and 50 or more employees) must develop an
affirmative action program to promote the
employment of protected-class members.
G. The Age Discrimination in Employment Act,
1967 (ADEA)
The Age Discrimination in Employment Act, 1967
(ADEA)
Protects employees aged 40 and over
Example:
On April 2019 - McDonald's announced its intentions to fill
around 250k summer jobs ranging from cashiers to shift
managers - by recruiting Grandma and Grandpa. The fast-food
behemoth is scouting elderly talent with posts on the American
Association of Retired Persons (AARP) job board.
McDonald's has committed to hire under a memorandum of The Government's Role in Providing For EEO:
agreement (MOA) signed with the Pasay City government.
Based on the MOA, McDonald's will hire two senior citizens Equal Employment Opportunity Commission
and one person with disability (PWD) for each of its 14 (EEOC)
branches across the city.
• Responsible for enforcing most of the EEO
laws.
H. American with Disabilities Act (1990) - Investigates and resolves complaints
about discrimination.
American with Disabilities Act (1990) - Gathers information.
Protects those with disabilities. - Issues guidelines.
- Monitors organizations' hiring
• Physical or mental practices.
• Impaired major life activity • Complaints must be filed within 180 days
Must provide reasonable accommodations for of the incident.
essential job function. • EEOC has 60 days to investigate the
complaint.

I. The Vocational Rehabilitation Act of 1973

The Stages of an EEOC Investigation
The Rehabilitation Act of America Needs 1973, as
Amended (Rehab Act) prohibits discrimination on 1. Someone files a discrimination charge.
the basis of disability in programs conducted by 2. The FFOC notifies the accused.
federal agencies, in programs receiving federal 3. The accused acknowledges the charge.
financial assistance, in federal employment and in 4. The FFOC launches the investigation.
the employment practices of federal contractors. 5. The EEOC makes a determination.

Equal Employment Opportunity Enforcement

and Compliance
Regulatory Agencies
Equal Employment Opportunity Commission
(EEOC)
• Processes discrimination complaints.
• Issues written regulations and guidelines.
• Collects and disseminates information.
Office of Federal Contract compliance Programs
(OFCCP)
• Actively monitors compliance.