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This Document Contains Chapters 3 to 4 Chapter 3 Equal Employment/Diversity Management Chapter Outline and Instructor Notes Suggested Content Coverage EEO and diversity represent a major issue for HR in most organizations. EEO is the law and managing diversity is the challenge that accompanies it. I. NATURE OF EQUAL EMPLOYMENT OPPORTUNITY Equal employment opportunity (EEO) is the concept that all individuals should have equal treatment in all employment-related actions. The goal of EEO is equal employment, or employment that is not affected by illegal discrimination. Discrimination is “recognizing differences among items or people.” When discrimination is based on something other than job requirements and candidates’ qualifications employers face problems. The following bases for protection have been identified by various federal, state, and/or local laws: •Race, ethnic origin, color (including multi-race/ethnic backgrounds) •Sex/gender (including those who are pregnant) •Age (individuals over 40) •Individuals with disabilities (physical or mental) •Military experience (military status employees and Vietnam-era veterans) •Religion (special beliefs and practices) •Marital status (some states) •Sexual orientation (some states and cities) There are two types of illegal employment discrimination: disparate treatment and disparate impact. A. Disparate Treatment – Disparate treatment occurs with employment-related situations in which either: (1) different standards are used to judge different individuals, or (2) the same standard is used, but it is not related to the individuals’ jobs. Disparate treatment occurs when members of a protected class are treated differently from others. B. Disparate Impact - occurs when members of a protected class are substantially underrepresented as a result of employment decisions that work to their disadvantage. Figure 3-1 illustrates the differences between disparate treatment and disparate impact. C. EEO Concepts – A number of regulations and court decisions have emphasized the expectation that employers use job-related employment practices. 1. Business Necessity and Job Relatedness - A business necessity is a practice necessary for safe and efficient organizational operations. Educational requirements often are based on business necessity; however, employers must be able to defend the requirement as essential to the performance of the job. 2. Bona Fide Occupational Qualification (BFOQ) - A bona fide occupational qualification (BFOQ) is a characteristic providing a legitimate reason why an employer can exclude persons on otherwise illegal bases of consideration. What constitutes a BFOQ has been subject to different interpretations in various court cases in the United States. 3. Burden of Proof - An individual who files suit against an employer has the burden of proof, which is what he/she must prove in order to establish that illegal discrimination has occurred. In EEO cases, the plaintiff must be a protected-class member and must prove that either disparate impact or disparate treatment existed. The employer must show that the bases for making employment-related decisions were specifically job related and consistent with considerations of business necessity. 4. Non-Retaliatory Practices - Retaliation, which is prohibited by EEO law, occurs when employers take punitive actions against individuals who exercise their legal rights. To avoid retaliation the following actions are recommended for employers: 1) train supervisors on what retaliation is and is not appropriate, 2) conduct a thorough internal investigation and document the results, 3) take appropriate action when any retaliation occurs, and 4) review any HR or job-related changes when taking actions involving individuals who have filed EEO complaints. II. MAJOR EQUAL EMPLOYMENT LAWS Organizations must follow federal, state, and local EEO laws and some affirmative action regulations to avoid costly penalties. A. Civil Rights Act of 1964, Title VII –The Civil Rights Act of 1964 is the keystone of antidiscrimination employment legislation. The Equal Employment Opportu¬nity Commission (EEOC) enforces the provi¬sions of Title VII. Any organization meeting one of the criteria below is subject to its rules and regulations. Compliance ex¬tends to all private employers of 15 or more persons, all educational institutions, state and local governments, public and private employment agencies, labor unions with 15 or more members, and joint (la-bor-management) committees for appren¬tice¬ships and training. B. Executive Orders 11246, 11375, and 11478 – Addressing additional areas of potential discrimination, these acts apply specifically to government contractors, as specified by a minimum number of employees and size of government contracts. C. Civil Rights Act of 1991 – requires employers to show that an employment practice is job related for the position and is consistent with business necessity. Plaintiffs bringing discrimination charges must identify the particular employment practice being challenged, and that protected-class status played only some role in the employer’s action. D. Sex/Gender Discrimination Laws and Regulations – A number of laws and regulations address discrimination on the bases of sex/gender, as follows: 1. Pregnancy Discrimination – The Pregnancy Discrimination Act (PDA) of 1978 requires that employers with 15 or more employees treat maternity leave the same as other personal of medical leaves. The Family and Medical Leave Act (FMLA) of 1993 requires that individuals be given up to 12 weeks of family leave without pay, which applies to both men and women, and the right to return to their job. 2. Equal Pay and Pay Equity – The Equal Pay Act of 1963 requires employers to pay similar wage rates for similar work, meaning a common core of tasks must be similar, but tasks performed intermittently or infrequently should not be considered. Differences in pay may be allowed because of differences in seniority, performance, quality and/or quantity of production, and when factors other than sex exist, such as skill, effort, and working conditions. E. Sexual Harassment – Sexual harassment, which is curtailed by the EEOC, refers to actions that are sexually directed, are unwanted, and subject the worker to adverse employment conditions or create a hostile work environment. These actions can occur between any employee at all levels of the organization, and non-employees who have business contact with employees. F. Americans with Disabilities Act (ADA) – Enforced by the EEOC, the Americans with Disabilities Act (ADA) of 1990 prohibits discrimination against individuals with disabilities. Organizations with 15 or more employees are covered by the provisions of the ADA, which are enforced by the EEOC, and the act applies to private employers, employment agencies, and labor unions. Figure 3-2 shows the most frequently cited ADA liabilities. 1. Who Is Disabled? - As defined by the ADA, a disabled person is someone who has a physical or mental impairment that substantially limits that person in some major life activities, who has a record of such impairment, or who is regarded as having such impairment. In spite of EEO guidelines, the interpretation of who is disabled and who is not has been the subject of a great deal of litigation. Court decisions have found individuals with high blood pressure, epilepsy, allergies, obesity, color blindness, and hearing impairments to be disabled. 2. Mental Disabilities – A growing area of concern under the ADA is individuals with mental disabilities because they are often more difficult to diagnose. Employers must be careful when considering “emotional” or “mental health” factors such as depression. 3. ADA and Job Requirements – Discrimination is prohibited against individuals that can perform the essential job functions of the job. For a qualified person with a disability, the employer must make a reasonable accommodation, which is a modification to a job or work environment that gives that individual an equal employment opportunity to perform. The ADA offers some guidelines in determining when an accommodation becomes unreasonable and places undue hardship on the employer. III. OTHER TYPES OF DISCRIMINATION A. Age Discrimination in Employment Act (ADEA) – of 1967, amended, prohibits employment discrimination against all individuals age 40 or older working for employers having 20 or more workers. Because ADEA is a federal law, state employees may not sue state government employers in federal court. Also, while older workers can sue if they are not treated the same as younger workers, the reverse is not true. 1. Older Workers Benefit Protection Act (OWBPA) – An amendment to the ADEA, this act is aimed at protecting employees when they sign liability waivers for age discrimination in exchange for severance packages. An early retirement package with a liability waiver must: 1) include a written, clearly understood agreement; 2) offer value beyond what the employee will receive without the package; 3) advise the employee to consult an attorney; 4) allow the employee at least 21 days to consider the offer; 5) allow the employee 7 days to revoke the agreement after signing it. B. Immigration Reform and Control Act (IRCA) - IRCA requires employers to obtain proof of identity on new employees as part of completing the required I-9 form. Employees who knowingly hire illegal aliens may be penalized. C. Religious Discrimination – is illegal under Title VII of the Civil Rights Act. Religious organizations can use religion as a bona fide occupational qualification for employment practices on a limited scale, but employers must make reasonable accommodation efforts regarding an employee’s religious beliefs. D. Military Status and USERRA – The Vietnam Era Veterans Readjustment Assistance Act of 1974 and the Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994 are two important laws that have addressed the employment rights of military veterans and reservists. Under USERRA employees are required to notify their employers of military service obligations and employers must give employees serving in the military leaves of absence protections as highlighted in Figure 3-3. USERRA does not require employers to pay employees on military leave but many firms provide some compensation. E. Sexual Orientation – Some states and cities have passed laws prohibiting discrimination based on sexual orientation or lifestyle. Even the issue of benefits coverage for “domestic partners,” whether heterosexual or homosexual, has been the subject of state and city legislation. F. Appearance and Weight Discrimination – Court decisions have consistently allowed employers to set dress codes as long as they are applied uniformly. However, employers must be cautious when dealing with employees of certain religions that prescribe appropriate dress and appearance standards. Another crucial factor for employers to consider is that any height or weight requirements must be related to the job. IV. EEO COMPLIANCE In order for employers to comply with EEO regulations and guidelines, management should have an EEO policy statement and maintain all of the required EEO-related records. All employers with 15 or more employees are required to keep certain employment records that are necessary when responding to a discrimination charge. Under various laws, employers are required to post an “officially approved notice” in a prominent place for employees. This notice states that the employer is an equal employment opportunity employer and does not discriminate. •EEO Records Retention – All employment records must be maintained as required by the EEOC. The length of time documents must be kept varies, but generally three years is recommended as a minimum. •EEOC Reporting Forms – The following private-sector employers must file the EEO-1 report annually: 1) all employers with 100 or more employees, except state and local governments; 2) subsidiaries of other companies if the total number of all combined employees equals 100 or more; 3) federal contractors with at least 50 employees and contracts of $50,000 or more; 4) financial institutions with at least 50 employees, in which government funds are held or saving bonds are issued. In 2007, changes were made to the EEO-1 data collected. The most significant change was adding the phrase “two or more races” to reflect multi-diverse employees. •Applicant-Flow Data – The EEOC allows employers to use a separate applicant-flow form that is not used in the selection process to collect date on applicants’ race, age, etc. V. DIVERSITY MANAGEMENT The evolving changes to the workforce, as well as EEO regulations, have forced more employers to recognize that diversity must be managed. Two approaches that are at the forefront of these efforts are non-discriminatory practices and affirmative action. A. Managing Racial/Ethnic Discrimination – Racial discrimination still represents the highest percentage of discrimination complaints, as Figure 3-4 shows. EEOC’s guidelines recommend that employers adopt policies against harassment of any type, including ethnic jokes, vulgar epithets, racial slurs, and physical actions. B. Language Issues and EEO – Some employers have attempted to restrict the use of foreign languages, while others have recognized that bilingual employees have valuable skills. Language issues must be dealt with as part of managing a racially and ethnically diverse workforce. 1. English-Only Requirements – The EEOC has issued guidelines that employers may require workers to speak only English at certain times or in certain situations, but the business necessity of the requirements must be justified. 2. Bilingual Employees – Some employers pay “language premiums” is employees must speak to customers in another language but other employers consider it part of the employee’s regular job. C. Requirements for Immigrants and Foreign-Born Workers – Foreign-born workers are required to have visas and other documents. It is crucial that employers verify the legal work status of all individuals. B. Managing Sex/Gender Issues – The growth in the number of women in the workforce means that there are more women with children in the workforce. Further, about half of all women currently are single, separated, divorced, widowed, or otherwise single heads of households. Consequently, they must balance family and work responsibilities. Employers have established policies to help women deal with some of these issues. One example is a policy to allow nursing mothers to leave their work sites during business hours in order to nurse or use breast pumps. 1. Pay Inequity – On average, women annually receive about 77% of men’s earnings, and that percentage has increased over time. To guard against pay inequities that are considered illegal under the Equal Pay Act, employers should follow these guidelines: •Include benefits and other items that are part of remuneration to calculate total compensation •Make sure people know how the pay practices work •Base pay on the value of jobs and performance •Benchmark against local and national markets so that pay structures are competitive •Conduct frequent audits to ensure there are no gender-based inequities and that pay is fair internally. 2. Nontraditional Jobs – An increasing number of women are moving into jobs traditionally held by men. The U.S. Department of Labor defines nontraditional jobs for women as those in which women constitute 25% or less of the total number of employed. 3. Glass Ceiling – The glass ceiling refers to discriminatory practices that have prevented women and other protected-class members from advancing to executive-level jobs. Women in the U.S. have made progress, but women hold only 12% of the highest-ranking executive management jobs in Fortune 500 companies. E. Managing Sexual Harassment and Workplace Relationships – Most executives and HR professionals agree that workplace romantics are risky because they have great potential for causing conflict. Many agree that romance must not take place between a supervisor and a subordinate. Some employers have addressed the issue of workplace romances by establishing policies dealing with them. F. Sexual Harassment – There are two basic types of sexual harassment, as defined by the EEOC. Quid pro quo harassment occurs when employment outcomes are linked to the individual granting sexual favors. Hostile environment exists when an individual’s work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions. 1. Employer Responses to Sexual Harassment - In a sexual harassment lawsuit, an employer must be able to show it took reasonable care to prohibit sexual harassment. Critical components of ensuring reasonable care include establishing a sexual harassment policy, communicating the policy regularly, training employees and managers on avoiding sexual harassment, and investigating and taking action when complaints are voiced. G. Managing Age Issues – Employment discrimination against individuals age 40 or older is prohibited by the ADEA, therefore, employers must be aware of HR issues associated with managing older workers. In a number of cases, courts have ruled that the term overqualified may have been used as a code word for workers being too old, thus causing them not to be considered for employment. Selection and promotion practices must be “age neutral.” 1. Workforce Reductions and Additions – The OWBPA was passed to ensure that equal treatment for older workers occurs in early retirement or severance situations. However, to counter significant staffing difficulties, some employers are recruiting older people to return to the workforce. One strategy used by employers to retain the talents of older workers is phased retirement, whereby employees gradually reduce their workloads and pay levels. H. Managing Individuals with Disabilities in the Workforce – At the heart of employing individuals with disabilities is for employers to make reasonable accommodations. Figure 3-5 shows some common means of reasonable accommodations. Fortunately for employers, most accommodations are relatively inexpensive. \ I. Managing Religion and Spirituality in the Workplace – Title VII of the CRA of 1964 prohibits discrimination at work on the basis of religion; also, employers are prohibited from discriminating against employees for their religious beliefs and practices. One potential area for conflict between employer policies and employee religious practices is dress and appearance. Another issue concerns religious expression. In the last several years there have been cases where employers are sued for prohibiting employees from expressing their religious beliefs at work. In other cases, there have been court cases where employers took action because workers complained that employees created a “hostile environment” by aggressively “pushing” their religious views at work. J. Managing Diversity – Different organizations approach the management of diversity from several perspectives. As Figure 3-6 shows, the continuum can run from resistance to creation of an inclusive diversity culture. For diversity to succeed, the most crucial component is seeing it as a commitment throughout the organization, beginning with top management. A number of different activities can be implemented as part of a diversity management program, including diversity training. 1. Diversity Training - Typical goals for traditional diversity training are to minimize discrimination and harassment lawsuits, and improve acceptance and understanding of the differences in people. Approaches to diversity training vary, but often include at least three components: legal awareness, cultural awareness, and sensitivity training. Relatively few studies have been done on the effectiveness of diversity training expenditures, but the effects of diversity training are viewed as mixed by both organizations and participants. 2. Backlash Against Diversity Efforts – Backlash takes two main forms. First, individuals in protected groups sometimes see diversity efforts as inadequate. On the other side, individuals that are not in protected groups may see diversity programs as taking away opportunities for men and non-minorities. VI. AFFIRMATIVE ACTION Through affirmative action employers are urged to hire groups of people based on their race, age, gender, or national origin to make up for historical discrimination. Affirmative action regulations are a requirement for federal government contractors to document the inclusion of women and racial minorities in the workforce. Covered employers must submit plans describing their attempts to narrow the gaps between the compositions of their workforce to that of the labor markets where they obtain employees. The courts have generally upheld the legality of affirmation action, but recently, this legality ruling has been somewhat more limited. A. Debate on Affirmative Action - Employers use goals, targets, and timetables to specify how many of which types of individuals they hope to have in their workforces in the future. There is debate whether affirmative action is still needed. 1. Debate: Why Affirmative Action is Needed – Without affirmative action, proponents argue that many in the U.S. will be permanently economically disadvantaged. Proponents argue that programs are needed to enable protected groups to be competitive with males and whites or the protected groups will never “catch up.” 2. Debate: Why Affirmative Action Is No Longer Needed – Critics of affirmative action say that regardless of the language used, subsequent actions lead to the use of preferential selection for protected-class members over equally qualified white males and other non-protected groups. The critics believe that this results in reverse discrimination, which occurs when a person is denied an opportunity because of preferences given to protected-class individuals who may be less qualified. CASE – DIVERSITY AND DISCRIMINATION IN THE RESTAURANT INDUSTRY The experiences of different restaurant industry firms illustrate how employment issues can affect organizations. Several examples are described next. McDonald’s Corporation has placed significant emphasis on ensuring that all employees are treated appropriately. The firm has a large number of racial/ethnic minority managers and employees. So that all individuals involved in hiring handle the employment processes legally and effectively, McDonald’s does the same training for everyone. This training is done for managers at stores, regional offices, and corporate headquarters. Also, at the firm’s “Hamburger University,” additional seminars on diversity are conducted as part of its broad training curriculum. A different focus is occurring at Starbucks Corporation. As it expands its number of stores and adds more employees, a specific effort is being made to recruit individuals with disabilities. To aid customers and employees with disabilities, Starbucks has been redesigning service counters and facilities to make them more usable for those with disabilities. Special recruiting efforts have resulted in the growth of employees with cerebral palsy, hearing deficiencies, and those with physical limitations. Contrast these efforts with lawsuits filed against other restaurants for illegal discrimination. Cracker Barrel restaurants in Illinois had to pay $2 million to settle EEOC charges for race and sexual harassment against 51 employees. African American employees were insulted through racially specific wording, and women were subjected to offensive sexual comments and conduct. Note that Cracker Barrel has more than 500 stores in 40 states, but these charges only applied to three restaurants. Denny’s Restaurants have also been sued for disability bias against workers nationwide. The EEOC lawsuit charged that Denny’s did not make reasonable accommodation for employees with different disabilities. That lawsuit is still under review and being challenged by Denny’s. Note that a decade ago Denny’s was subjected to racial bias legal claims. As a result, Denny’s responded by aggressively hiring minorities and proactively addressing diversity problems, which led it to receive a national award as a minority friendly fi rm. These varied examples in just one industry illustrate how employment discrimination and diversity continue to be HR challenges for employers. This is especially true given the widely varying workforces, numerous different managers, and many different locations.* Questions 1. Discuss why the various diversity efforts of McDonald’s and Starbucks are good business practices. 2. Describe what HR efforts are needed by employers such as Cracker Barrel and Denny’s to reduce discrimination charges and complaints when they occur in individual locations. _________ * Julie C. Ramirez, “A Different Bias,” Human Resource Executive, May 15, 2006, 37– 39; Michael Corkery, “A Special Effort,” The Wall Street Journal, November 14, 2005, R8; EEOC v. Cracker Barrel Old Country Store, Inc., and CBOCX West, Inc., N.D. Illinois, No. 04-C5273 (March 2006); “Denney’s Sued for Disability Bias Against Class of Workers Nationwide,” Ceridian Abstracts, www.hrcompliance.ceridian .com; and Bill Leonard, “EEOC Sues Denny’s over Disability Practices,” HR News, October 2, 2006, www.shrm.org/hrnews. Suggested Answers to Case Questions 1. Discuss why the diversity efforts of McDonald’s and Starbuck’s are good business practices. The diversity efforts of McDonald’s and Starbuck’s are good business practices because they are both in industries where there is high turnover and a shortage of skilled labor. Ensuring that all employees are treated appropriately will help reduce turnover costs and reduce expenses related to costly litigation. Failure to manage diversity can lead to higher turnover, higher absenteeism, lawsuits, and the inability to compete for talent and reduced organizational performance. Also, having a diverse workforce is probably good for business because it is more reflective of the customer base and can help the organizations make sure those products and services are ones that appeal to a diverse customer base. 2. Describe what HR efforts are needed by employers such as Cracker Barrel and Denny’s to reduce discrimination charges and complaints when they occur in individual locations. Most students will probably suggest that Cracker Barrel and Denny’s emphasize the importance of managing diversity in hiring, training, and rewarding employees and managers. Also, it is critical that successful diversity management be a priority of top management. To reduce discrimination charges and complaints in individual locations, employers such as Cracker Barrel and Denny's need to implement comprehensive HR efforts. These efforts should include: Policy Review and Revision: Conduct a thorough review of existing policies related to equal employment opportunity, diversity, and harassment. Revise policies to ensure they are comprehensive, up-to-date, and in compliance with relevant laws and regulations. Training and Education: Provide regular training to all employees, managers, and supervisors on topics such as diversity, inclusion, unconscious bias, and respectful workplace behavior. Training should emphasize the importance of treating all employees fairly and with respect. Promotion of Diversity and Inclusion: Actively promote diversity and inclusion within the organization by implementing recruitment strategies that attract candidates from diverse backgrounds and creating opportunities for career advancement for all employees. Prompt Investigation and Resolution: Establish clear procedures for reporting and investigating discrimination complaints. Ensure that all complaints are taken seriously, investigated promptly, and resolved effectively. Provide support to employees who come forward with complaints and ensure protection against retaliation. Monitoring and Oversight: Regularly monitor employee demographics, turnover rates, and internal complaints to identify any patterns or trends that may indicate discrimination or bias. Implement mechanisms for ongoing oversight and accountability. Community Engagement: Engage with local communities to build trust and demonstrate commitment to diversity and inclusion. Partner with community organizations, attend diversity events, and participate in outreach activities to foster positive relationships and demonstrate corporate social responsibility. Leadership Commitment: Ensure that senior leadership is actively involved in promoting a culture of diversity and inclusion. Leaders should set the tone for the organization by demonstrating their commitment to fairness, equality, and respect for all employees. External Resources: Seek guidance and support from external resources, such as legal counsel, diversity consultants, and industry associations. These resources can provide expertise, best practices, and assistance in addressing discrimination issues effectively. By implementing these HR efforts, employers such as Cracker Barrel and Denny's can proactively address discrimination charges and complaints in individual locations while fostering a workplace culture that values diversity, inclusion, and fairness for all employees. Chapter 4 Staffing Chapter Outline and Instructor Notes Suggested Content Coverage The staffing process matches people with jobs through job analysis, recruiting, and selection. I. NATURE OF JOB ANALYSIS HR planning, recruiting, and selection all must be based on job requirements and capabilities of individuals in order to comply with EEO requirements. Job analysis involves collecting information on the characteristics of a job that differentiate it from other jobs. Its primary purpose is to identify what is done on a job and what capabilities are needed to do it as designed. The two approaches to job analysis are identified in Figure 4.1. A. Task-Based Job Analysis – is the most common form and focuses on the tasks, duties, and responsibilities performed in a job. A task is a distinct, identifiable work activity composed of motions. A duty is a larger work segment composed of several tasks. Responsibilities are obligations to perform certain tasks and duties. 1. Competency-Based Job Analysis – considers how the knowledge and skills are used to perform a job. Competencies are individual capabilities that can be linked to enhanced performance by individuals or teams. Technical competencies often refer to specific knowledge and skills employees have, such as operating machinery or using special software. Some examples of behavioral competencies are customer focus, team orientation, technical expertise, results orientation, communication effectiveness, leadership, conflict resolution, innovation, adaptability, and decisiveness. B. Choosing a Job Analysis Approach – Whether to use the task-based or competency-based approach depends on the nature of jobs and how work is changing. Currently, there is little legal precedent regarding competency analysis, which leaves it open to legal challenge as not being documented as well as the traditional approach. For that reason, task-based job analysis is more widely used. C. Stages in the Job Analysis Process – Job analysis must be conducted in a logical manner, therefore, analysts follow a multi-stage process, regardless of the specific job analysis methods used. 1. Planning the Job Analysis – Probably the most important consideration is to identify the objectives of the job analysis. Whatever the purpose, it is vital to obtain the support of top management. 2. Preparing for and Introducing the Job Analysis – Once the jobs under review are identified then various data is reviewed such as existing job descriptions, organization charts, previous job analysis information, and other industry resources. This step also includes identifying who will be involved in conducting the job analysis and the methods to be used plus communicating and explaining the process to managers and employees. 3. Conducting the Job Analysis – If questionnaires are used it is helpful if they are returned to supervisors for review. Questionnaires should be accompanied by a letter explaining the process and instructions. 4. Developing Job Descriptions and Job Specifications – After the job data is compiled the job analysts draft job descriptions and job specs. Having job analysts write these drafts help assures consistency and objectivity. These drafts should be reviewed with managers and supervisors. 5. Maintaining and Updating Job Descriptions and Job Specifications – A system must be developed for keeping job descriptions and specifications current. One way is to require a review before recruiting and selection efforts begin for a job. Another way is to have supervisors and employees review their job descriptions during each performance appraisal interview. D. Job Analysis and the Americans with Disabilities Act (ADA) – The ADA requires that organizations identify the essential job functions, those which are the fundamental duties of a job. These do not include marginal job functions, which are duties that are incidental or ancillary to the purpose and nature of the job. E. Job Analysis and Wage/Hour Regulations – Typically, job analysis identifies the percentage of time spent on each duty in a job. According to the Fair Labor Standards Act (FLSA) and most state wage/hour laws, to be exempt from overtime, employees must perform their primary duties as executive, administrative, professional, or outside sales employees. Primary has been interpreted to mean occurring at least 50% of the time. II. JOB DESCRIPTIONS AND JOB SPECIFICATIONS Job descriptions and its job specifications, together, summarize job analysis information in a readable format and provide the basis for defensible job-related actions. A job description identifies the tasks, duties, and responsibilities of a job. It describes what, why, where, and how it is done. Figure 4-2 shows a representative job description that illustrates the necessary components. The job specifications list the knowledge, skills, and abilities (KSAs) required for the job, which may not be the same as the current employee’s qualifications. KSAs include education, experience, work skill requirements, personal abilities, and mental and physical requirements. III. RECRUITING The staffing process matches people with jobs through recruiting and selection. Recruiting is the process of generating a pool of qualified applicants for jobs. Selection is the process of choosing individuals with qualifications needed to fill jobs in an organization. Recruiting is about finding qualified applicants and requires more than just running an ad in a newspaper. A strategic approach to recruiting becomes important as labor markets shift and become more competitive. Strategic HR planning helps to align HR strategies with organizational goals and plans so that the corporation can be prepared for the needed changes in its workforce. Recruiting can be expensive, but an offsetting concept is the cost of unfilled jobs. A. Labor Markets – Labor markets are the external supply pool from which employers attract employees. An organization must decide which labor market to recruit from, whether that be geographic, industry and occupational, or educational and technical. 1. Geographic Labor Markets – Some markets are local, some area or regional, some national and others international. Changes in a geographic labor market may force changes in recruiting efforts. Attempting to recruit locally for a job market that is really nationally competitive will result in few applicants. Conversely, for certain jobs there may not be a need to go beyond the local market. 2. Industry and Occupational Labor Markets – The demand for truck drivers, hotel workers, nurses, teachers, and others has been strong, creating tight labor markets in the industries served by those occupations. Occupational labor markets are based on KSAs required for the job. These markets include physical therapists, HR managers, engineers, etc. One occupational area of extreme volatility in the past years has been the information technology (IT) labor market. Another way to look at labor markets is by considering educational and technical qualifications or certifications to define the people being recruited. B. Recruiting Presence, Image, and Training - Recruiting efforts may be viewed as continuous or intensive. Continuous efforts to recruit offer the advantage of keeping the employer in the recruiting market. For example, many employers recruit on a given campus every year. Intensive recruiting may take the form of a vigorous recruiting campaign aimed at hiring a given number of employees, usually within a short period of time. Such efforts may be the result of failure in the HR planning system to identify needs in advance. 1. Employment “Branding” and Image – Organizations seen as desirable employers are better able to attract more qualified applicants than are organizations with poor reputations. 2. Training of Recruiters – Employers also must decide how much training will be given to recruiters. Recruiters need to know interviewing techniques, communication skills, knowledge of the jobs, and to thoroughly understand EEO regulations and sensitive diversity issues. C. Employment Advertising – The EEOC guidelines state that no direct or indirect references implying gender or age are permitted and advertisements should indicate that the employer is an Equal Opportunity Employer. D. Recruiting Nontraditional Workers – Nontraditional sources of workers may include: older workers, stay-at-home moms, single parents, welfare-to-work workers, homeless/substance abuse workers, workers with disabilities. E. Recruiting Source Choices: Internal vs. External – Both promoting from within the organization (internal recruitment) and hiring from outside the organization (external recruitment) come with advantages and disadvantages as shown in Figure 4-3. IV. INTERNAL RECRUITING METHODS A. Internal Recruiting Processes – Filling openings internally may add motivation for employees to stay and grow in the organization rather than pursuing career opportunities elsewhere. 1. Employee Databases – The increased use of HR management systems allows HR to maintain background and KSA information on existing employees. Various types of software sort employee data by occupational fields, education, areas of career interests, previous work histories, etc. 2. Job Posting - The major means for recruiting internally is job posting, which is a system in which the employer provides notices of job openings and employees respond by applying for specific openings. Job postings can be done in a number of ways including posting notices on the company intranet and Internet Websites, employee newsletters, or via e-mail. 3. Promotions and Transfers – Many organizations choose to fill vacancies through promotions or transfers from within. While most often successful, employers should use caution because a person’s performance on one job may not be a good predictor of performance on another. 4. Current-Employee Referrals – A reliable source of people to fill vacancies is composed of acquaintances, friends, and family members of employees. The current employee can give their referral a realistic job preview, however, using only current employee referrals can violate equal employment regulations is protected classes are underrepresented. 5. Re-Recruiting of Former Employees and Applicants – Recruiting former employees and former applicants is known as re-recruiting because they were successfully recruited previously. V. EXTERNAL RECRUITING SOURCES There are a wide variety of external sources for recruiting. In some tight markets, multiple sources and methods will be used to attract candidates for the variety of jobs available in organizations. A. College and University Recruiting - A significant source for entry-level professional and technical employees, most universities maintain career placement offices in which employers and applicants can meet. There are a number of considerations that affect an employer’s selection of colleges and universities at which to conduct interviews. B. School Recruiting – High schools or vocational/technical schools may be valuable sources of new employees for some jobs and organizations. Many schools have a centralized placement office and participating in career days and cooperative programs is a good way to maintain good contact with school sources. C. Labor Unions - A good source of specific types of workers, such as electrical and construction. Unions have traditionally supplied workers to employers as the employer needs them. Unions can also benefit employers through apprenticeship and cooperative staffing programs, as they do in the building and printing industries. D. Employment Agencies - Every state in the United States has its own state-sponsored employment agency, and most cities have private employment agencies as well. Private agencies differ considerably in the levels of service, costs, policies, and types of applicants they provide. E. Media Sources - Sources such as newspapers, magazines, television, radio and billboards are widely used. Whatever medium is used, it should be tied to the relevant labor market and provide sufficient information on the company and the job. F. Job Fairs and Special Events - Job fairs and special recruiting events are often used in tight labor markets or when needing to fill a large number of jobs quickly. VI. INTERNET RECRUITING Use of the Internet has become the primary means for many employers to search for job candidates and for applicants to look for jobs. A. E-Recruiting Places - The most common methods used for Internet recruiting are job boards, professional/career Websites, and employer Websites. 1. Internet Job Boards - such as Monster, Yahoo!, and Hot Jobs provide access to numerous candidates, but many visitors to job boards are just browsing, not seriously considering changing employment. 2. Professional/Career Websites - Many professional associations have employment sections on their Websites, such as the Society for Human Resource Management site, http://www.shrm.org, or the American Society for Training and Development site, http://www.astd.org. 3. Employer Websites - Despite the popularity of job boards and association Websites, many employers find their own Websites more effective and efficient in recruiting candidates. B. Advantages and Disadvantages of Internet Recruiting – A primary advantage to Internet recruiting is the cost savings over other methods such as newspaper advertising, employment agencies, and search firms. On the down side, employers may get more unqualified applicants and also create more work for the recruiter. VII. INCREASING RECRUITING EFFECTIVENESS Use of the data to target different applicant pools, tap broader labor markets, use different recruiting methods, improve internal handling and interviewing of applicants, and train recruiters and managers can increase recruiting effectiveness. The following technology-aided approaches to recruiting have made recruiting more effective for big employers: Resume mining, Applicant tracking, Employer career Websites, and Internal mobility. The non-technical issues also make a big difference in recruiting: personable recruiters, emphasizing positives about the job within a realistic job preview, fair treatment of applicants, and enhancing applicants’ perceived fit with the organization. VIII. SELECTION AND PLACEMENT Selection is about choosing the best person for the job. Placement is fitting a person to the right job. Placement should be seen primarily as a matching process. A. Criteria, Predictors, and Job Performance – At the heart of an effective selection system must be knowledge of what constitutes appropriate job performance and what employee characteristic are associated with performance. A selection criterion is a characteristic that a person must have to do a specific job successfully. Figure 4.4 shows which selection criteria may be good for many jobs. Employers try to identify predictors (measurable or visible indicators) to determine whether or not candidates might have a certain selection criterion. B. Combining Predictors – When an employer uses multiple predictors (for example, “three years of experience,” “acceptable aptitude test score,” and a “college degree”) there are two approaches that can be used: Multiple hurdles and Compensatory approach. With a multiple hurdles approach a minimum cutoff is set on each predictor and each minimum level must be “passed.” For example, regardless of the aptitude test score, the applicant must have a college degree. With a compensatory approach scores from individual predictors are added are combined into an overall score, thereby allowing a higher score on one predictor to offset, or compensate for, a lower score on another. IX. THE SELECTION PROCESS A series of consistent steps leading to a hiring decision is a good basis for a successful selection process. Such a process may contain applicant job interest record, pre-employment screening, tests, interviews, and background investigation. A. Applicant Job Interest – Individuals have traditionally indicated interest in employment by submitting resumes by mail or fax, or applying in person at an employer’s location. More recently, many individuals complete applications online or submit resumes electronically. Regardless of how individuals express interest in employment, the selection process has an important public relations dimension since job applicants’ perceptions of the organization will be influenced by how they are treated. 1. Application Forms - Application forms are universally used and can take on different formats. Properly prepared, the application form serves four purposes: 1) record of applicant’s desire to obtain a position, 2) provides a profile of the applicant that can be used during the interview, 3) provides a basic employer record for applicants that are hired, and 4) can be used for research on effectiveness of the selection process. An organization should retain all applications and hiring-related documents for three years. EEOC Guidelines require that data requested on application forms must be job related. Illegal questions frequently found on application forms ask for the following information: marital status, height/weight, number/ages of dependents, information on spouse, date of high school graduation, and contact in case of emergency. 2. Immigration Forms - The Immigration Reform and Control Act requires that within 72 hours of hiring, an employer must determine whether a job applicant is a U.S. citizen, registered alien, or illegal alien. Employers use the I-9 form to identify the employee, and are responsible for ensuring the legitimacy of documents submitted by the employee. B. Pre-Employment Screening – Many employers conduct pre-employment screening to determine if applicants meet the minimum qualifications for open jobs. However, these pre-employment screening forms may create more work for the HR staff members. The use of electronic pre-employment screening has grown and often utilizes computer software to review the many resumes and application forms received during the selection and recruiting process. C. Selection Testing – Carefully developed and properly administered employment tests allow employers to predict which applicants have the ability to do the job in question, who can learn the training, and who will stay. 1. Ability Tests – are tests that assess an individual’s ability to perform in a specific manner. They are sometimes further differentiated into aptitude tests and achievement tests. Cognitive ability tests measure thinking, memory, reasoning, verbal, and mathematical abilities. Managers need to ensure that these tests assess cognitive abilities that are job related. 2. Personality Tests – attempt to identify individual characteristics that affect interaction with a person’s environment. Two of the most well-known are the Minnesota Multiphasic Personality Inventory (MMPI) and the Myers-Briggs test. Some experts believe that there is a relatively small number of underlying major traits. The most widely accepted approach to studying these personality traits is the “Big Five” personality framework. These figures are shown in Figure 4-5. They are Conscientiousness, Agreeableness, Extroversion, Emotional Stability, and Openness to Experience. 3. Honesty/Integrity Tests – attempt to assess the honesty and integrity of applicants and employees. These tests may be valid as broad screening devices if used properly. D. Selection Interviewing - Selection interviewing of job applicants is done both to obtain additional information and to clarify information gathered throughout the selection process. Typically, an initial screening interview is done to see if the person has the minimum qualifications, later followed by an in-depth interview in the departments where the individuals will work. 1. Structured Interviews – A structured interview uses a set of standardized questions asked of all applicants. This type of interview allows for an easier comparison of the job applicants. 2. Effective Interviewing – Interviewing skills are developed through training. A number of suggestions for making interviewing more effective are as follows: 1) Plan the interview, 2) Control the interview, and 3) Use effective questioning techniques. E. Background Investigation - Background investigations may take place either before or after the in-depth interview. The value of background investigation is evident when the investigation reveals that applicants have misrepresented their qualifications and backgrounds. Background information can be found on past job records, credit history, testing, and educational/certification records. Criminal backgrounds checks are also common to avoid negligent staffing lawsuits, corporate theft, and terrorism. Many organizations use outside organizations to conduct background checks. Various federal and state laws protect the rights of individuals whose backgrounds may be investigated during pre-employment screening. Therefore, it is most important for the employer to obtain a signed release from the applicant giving the employer permission to conduct the investigation. F. Risks of Negligent Hiring and Negligent Retention – Negligent hiring occurs when an employer fails to check an employee’s background, and the employee later injures someone on the job. There is a potential negligent hiring problem when: the employer hired an unfit employee, the background check was insufficient, or the employer did not research potential risk factors that would have prevented the positive hire decision. Negligent retention occurs when an employer becomes aware than an employee may be unfit for employment, but continues to employ the person and the person injures someone. G. Applicant Flow Documentation – Employers must collect applicant date on race, sex, and other demographics to fulfill EEO reporting requirements. Many employers ask applicants to provide this information on a separate form. Completing the form is voluntary for the applicant but employers have to demonstrate that they tried to obtain the data. CASE 1 – JOBS AND WORK AT R.R. DONNELLEY Changes in many industries are occurring in an effort to increase productivity. Re-designing jobs, integrating information technology, and increasing HR training efforts are all critical. One example illustrates what happens when jobs and work are changed. R. R. Donnelley is a leading U.S. commercial printing firm. One of its primary facilities is in Roanoke, Virginia, where 3.5 million books a month are produced with about 300 employees. To improve productivity and profitability, Donnelley focused on lowering costs, improving workplace safety, and reducing errors. Because making numerous changes was likely to increase employees’ concerns, significant time and effort were spent communicating with employees about the need for change, improvement in quality, and higher productivity. Training for all employees on quality and workflow changes was conducted that focused on specialized methods such as Six Sigma and other process improvement means. In addition, greater use was made of digital technology to receive and make printing film and plates, which changed numerous jobs at the plant and required employees to learn a number of new methods and technologies. The payoff of these changes is seen in a number of ways. The production time for printing four-color books has been cut by 50% or more. Productivity is up 20% in the past three years. In fact, the increase in productivity has been great enough that Donnelley did not have to set up an additional production line, savings millions of dollars. For Donnelley employees, their fears that the Roanoke plant might close were reduced. They have been trained in new technology, have changed jobs, and work in a highly successful plant.* Questions 1. Discuss why Donnelley had to coordinate HR activities with the changes in jobs and work. 2. Identify examples of how technology has changed jobs where you have worked and which HR activities were handled well and which poorly. ___ *Adapted from Gene Bylinsky, “Elite Factories,” Fortune, September 1, 2003, 154B– 154J. Suggested Answers to Case 1 Questions 1. Discuss why Donnelley had to coordinate HR activities with the changes in jobs and work. Donnelley had to coordinate HR activities with the changes in jobs and work because the changes required changes in various HR functions such as training, health and safety, and re-designing jobs. Also, HR would need to play a key role in communicating to employees about the need for change, improvement in quality, and higher productivity. 2. Identify examples of how technology has changed jobs where you have worked and what HR activities were handled well and poorly. Students will probably describe situations where automation of some procedures was put into place or when there was a change in the technology. For example, many restaurants have gone to higher-tech cash registers and many retailers have gone to much more sophisticated technology to maintain inventory controls and customer relations. Some of the major HR activities that students might have experienced would have to do with either good or poor training, good or poor communications of the changes, and good or poor evaluations of the new procedures. Automation of Repetitive Tasks: Technology advancements led to the automation of repetitive tasks such as code testing and deployment. This freed up developers' time to focus on more complex and creative aspects of software development. ● Well-handled HR activity: The HR department implemented training programs to help developers learn new automation tools and programming languages required for more advanced tasks. This proactive approach helped employees upskill and adapt to the changing job landscape. ● Poorly-handled HR activity: However, there was a lack of clear communication about the long-term impact of automation on job roles. This led to uncertainty and anxiety among some employees about the future of their positions. Remote Work and Collaboration Tools: The adoption of remote work technologies such as video conferencing and collaboration platforms transformed the way teams communicated and collaborated, especially in light of the COVID-19 pandemic. ● Well-handled HR activity: HR promptly provided guidance and support for remote work arrangements, including setting up home office environments and establishing protocols for virtual meetings and project collaboration. This facilitated a smooth transition to remote work and maintained productivity levels. ● Poorly-handled HR activity: Some employees struggled with the blurring of boundaries between work and personal life due to the constant accessibility enabled by technology. HR could have provided more resources and support for maintaining work-life balance in a remote environment. Data Analytics and Decision-Making: The company invested in data analytics tools to gather insights from customer feedback and usage data, informing strategic decision-making processes. ● Well-handled HR activity: HR facilitated workshops and training sessions to familiarize employees with data analytics tools and methodologies. This empowered employees to leverage data-driven insights in their decision-making processes, enhancing their effectiveness in their roles. ● Poorly-handled HR activity: However, there was limited recognition and reward for employees who successfully implemented data-driven initiatives or contributed to improving data analytics capabilities within their teams. This lack of recognition could demotivate employees from fully embracing the use of technology in their job roles. Overall, while technology brought about significant changes in job roles, HR activities played a crucial role in helping employees adapt to these changes. However, there were instances where HR could have improved communication, support, and recognition to better facilitate the transition and maximize the benefits of technological advancements for employees. CASE 2 – STRATEGIC SELECTION: A TALE OF TWO COMPANIES Managers are proactively improving the employee selection process with various strategies that will ideally enhance corporate success. Some of these strategies focus on improving the quality of the individuals who apply for work, as well as those individuals who are actually hired into the organization. Other strategies target the selection process itself and seek to improve the various activities involved in proper hiring. The overriding theme of these efforts is that the staffing/selection function is a key component of an organization’s strategy because the process ideally provides highly motivated and qualified employees who can ultimately impact the financial and operational well-being of a company. Hallmark Cards is one company that emphasizes selection. It recently developed a recruiting metric called a “staffing index” that enables management to track the degree to which newly hired employees are performing as expected on the job. A series of evaluations are conducted over time, and scores are compared to obtain a longitudinal perspective on the quality of the hiring decisions. UnitedHealth Group is another organization that has improved its selection activities with proper strategic planning and execution. The company’s Vice President of Recruitment Services decided to modify hiring procedures within the organization by splitting job candidates into two basic groups. The first group of individuals was comprised of high-level professionals who would be recruited by internal staffing specialists, while the second group included various staff and line personnel who would be acquired with outsourcing contacts. This “two-pronged” strategy enabled the company to save money through increased control and efficiency. These various strategic selection approaches enable companies to improve the manner in which employees are hired and placed within a hierarchy of jobs. Many other strategies could be employed in different employment situations to improve the efficiency and effectiveness of selection. Overall, these efforts should increase the degree of fit between employees and organizations and increase the completion of strategic objectives.* Questions 1. Compare and contrast the two selection strategies used by the organizations discussed in the case. 2. What other strategies might help organizations better utilize and manage selection activities? ___ * Aaron Dalton, “Hallmark’s Quality-of-Hire Initiative,” Workforce Management, May 2005, www.workforce.com/section/06/article/24/04/76.html. Gina Ruiz, “UnitedHealth Group: A Two-Pronged Approach to Staffing has Enabled the Health Service Provider to Hire More People at a Cheaper Rate, Paving the Way for Rapid Growth,” Workforce Management, March 13, 2006, 30, www.workforce.com. Suggested Answers to Case 2 Questions 1. Compare and contrast the two selection strategies used by the organizations discussed in the case. Hallmark Cards strategy is focused on measuring the quality of the hiring decisions by using a recruiting metric called a “staffing index” that enables management to track the degree to which newly hired employees are performing as expected on the job. UnitedHealth Group’s strategy is focused on modifying their selection procedures within the organization by splitting job candidates into two basic groups. The first group was comprised of high-level professionals who would be recruited by internal staffing specialists, while the second group included various staff and line personnel who would be acquired with outsourcing contacts. This “two-pronged” strategy enabled the company to save money through increased control and efficiency. Based on the information that was provided, it appears that Hallmark did not change its selection procedures, but put in place a metric to measure the success of the procedure. UnitedHealth Group’s strategy actually changes the selection procedures, however, we are not told of any metrics used to determine the success of the change other than a reference to “increased control and efficiency.” Therefore, the change could have reduced costs but not increased quality. 2. What other strategies might help organizations better utilize and manage selection activities? Some of the strategies that students might identify would be training of managers and others that are involved in selection, development of metrics to measure the success of the selection process, more involvement in team members in selecting new team members, use of technology to help screen and select which candidates to interview, etc. Also, students might suggest that companies make better use of their company Websites to help with successful selection processes. Organizations can employ several strategies to better utilize and manage selection activities: 1. Utilize Technology: Implementing applicant tracking systems (ATS) and other HR software can streamline the selection process by automating tasks such as resume screening, scheduling interviews, and tracking candidate progress. Technology can also help in conducting assessments and analyzing data to make more informed hiring decisions. 2. Standardize Processes: Developing standardized selection processes and interview protocols helps ensure consistency and fairness across candidates. This includes defining job requirements, establishing clear evaluation criteria, and training hiring managers and interviewers on best practices. 3. Train Hiring Managers: Providing training and resources to hiring managers on effective interviewing techniques, bias mitigation, and legal compliance can improve the quality of hiring decisions. This includes educating managers on unconscious biases and promoting diversity and inclusion in the selection process. 4. Implement Pre-employment Assessments: Using validated assessments, such as cognitive ability tests, personality inventories, and skills assessments, can provide valuable insights into candidates' capabilities and suitability for the job. These assessments can help identify candidates who possess the necessary competencies and fit with the organizational culture. 5. Promote Diversity and Inclusion: Actively recruiting and hiring candidates from diverse backgrounds helps organizations tap into a broader talent pool and fosters innovation and creativity. Implementing diversity initiatives and ensuring inclusive hiring practices can lead to better decision-making and organizational performance. 6. Monitor and Evaluate Performance: Regularly reviewing and evaluating the effectiveness of selection activities allows organizations to identify areas for improvement and make data-driven decisions. Analyzing key metrics such as time-to-fill, candidate satisfaction, and new hire performance can help optimize the selection process over time. 7. Feedback and Continuous Improvement: Soliciting feedback from candidates, hiring managers, and other stakeholders can provide valuable insights into the strengths and weaknesses of the selection process. Actively seeking input and making adjustments based on feedback ensures that selection activities remain aligned with organizational goals and evolving needs. By employing these strategies, organizations can enhance the effectiveness, efficiency, and fairness of their selection activities, ultimately leading to better hiring decisions and improved organizational performance. Instructor Manual for Management of Human Resources: The Essentials Robert L. Mathis, John Jackson, Sean Valentine 9780324592412, 9781305115248
