Business Management Chapter 8

Human Resource Management (HRM)
The set of organizational activities directed at attracting, developing, and maintaining an effective workforce
Human Capital
Reflects the organization’s investing in attracting, retaining, and motivating an effective workforce
Title VII of the Civil Rights Act of 1964
Forbids discrimination on the basis of sex, race, color, religion, or national origin in all areas of the employment relationship
Adverse Impact
When minority group members meet or pass a selection standard at a rate less than 80 percent of the pas rate of majority group members.
Equal Employment Opportunity Commission
Charged with enforcing Title VII of the Civil Rights Act of 1964
Age Discrimination in Employment Act
Outlaws discrimination against people older than forty years; passed in 1967, amended in 19778 and 1986.
Affirmative Action
Intentionally seeking and hiring qualified or qualifiable employees from racial, sexual, and ethnic groups that are underrepresented in the organization.
Americans with Disabilities Act
Forbids discrimination against people with disabilities
Civil Rights Act of 1991
Amends the original Civil Rights Act, making it easier to bring discrimination law suits while also limiting punitive damages.
Fair Labor Standards Act
Sets a minimum wage and requires overtime pay for work in excess of 40 hours per week; passed in 1938 and amended frequently since then.
Equal Pay Act of 1963
Requires that men and women be paid the same amount for doing the same job.
Employee Retirement Income Security Act of 1974 (ERISA):
A law that sets standards for pension plan management and provides federal insurance if pension funds go bankrupt.
Family and Medical Leave Act of 1993
Requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies.
National Labor Relations Act – WAGNER ACT
Passed in 1935 to set up procedures for employees to vote on whether to have a union; also known as the WAGNER ACT
National Labor Relations Board (NLRB)
Established by the Wagner Act to enforce its provisions
Labor-Management Relations Act
Passed in 1947 to limit union power; also known as the Taft-Hartley Act
Occupational Safety and Health Act of 1970 (OSHA)
Directly mandates the provision of safe working conditions
Job Analysis
A systemized procedure for collecting and recording information about jobs within an organization.
Replacement Chart
Lists each important managerial position in the organization, who occupies it, how long he or she will probably remain in the position, and who is or will be a qualified replacement.
Employee Information System (Skills Inventory)
Contains information on each employee’s education, skills, experience, and career aspirations; usually computerized
The process of attracting individuals to apply for jobs that are open
Internal Recruiting
Considering current employees as applicants for higher-level jobs in the organization.
External Recruiting
Getting people from outside the organization to apply for jobs
Realistic Job Preview
Provides the applicant with a real picture of what it would be like to perform the job that the organization is trying to fill.
Determining the extent to which a selection device is really predictive of future job performance.
Teaching operational or technical employees how to do the job for which they were hired.
Teaching managers and professionals the skills needed for both present and future jobs.
Performance Appraisal
A formal assessment of how well an employee is doing his or her job.
Behaviorally Anchored Rating Scale (BARS):
A sophisticated rating method in which supervisors construct a rating scale associated with behavior anchors.
360-Degree Feedback
A performance appraisal system in which managers are evaluated by everyone around then – their boss, their peers, and their subordinates.
The financial remuneration given by the organization to its employees in exchange for their work.
Job evaluation
An attempt to assess the worth of each job relative to other jobs.
Things of value other than compensation that an organization provides to its workers
A characteristic of a group or organization whose members differ from one another long one or more important dimensions, such as age, gender, or ethnicity.
Diversity and multicultural training
Training that is specifically designed to better enable members of an organization to function in a diverse and multicultural workforce.
Labor relations
The process of dealing with employees who are represented by a union.
Collective Bargaining
The process of agreeing on a satisfactory labor contract between management and a union.
Grievance Procedure
The means by which a labor contract is enforced.
Knowledge Workers
Workers whose contributions to an organization are based on what they know.
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