3-1McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

fundamentals of

Human Resource Management 3rd editionby R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright

CHAPTER 3Providing Equal Employment

Opportunity and a Safe Workplace

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Regulation of Human Resource Management

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Equal Employment Opportunity (EEO)

• Equal employment opportunity – the condition in which all individuals have an equal chance for employment, regardless of their race, color, religion, sex, age, disability, or national origin.

• The federal government’s efforts in this area include:– constitutional

amendments– legislation– executive orders– court decisions

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EEO: Legislation

Civil Rights Acts (1866 & 1871)• The Civil Rights Act of 1866

granted all persons the same property rights as white citizens.

• The Civil Rights Act of 1871 granted all citizens the right to sue in federal court if they feel they have been deprived of some civil right.

Equal Pay Act (1963)• Men and women in an

organization doing the same work must be paid equally.

• Equal is defined in terms of skill, effort, responsibility, and working conditions.

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EEO: Legislation (continued)

Title VII Civil Rights Act (1964)• Prohibits employers from

discriminating based on:– Race– Color– Religion– Sex– National origin

• Applies to organizations that employ 15 or more persons.

Age Discrimination in Employment Act (ADEA)

• Prohibits discrimination against workers who are over the age of 40.

• Age discrimination complaints make up a large percentage of the complaints filed with the Equal Employment Opportunity Commission (EEOC).

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Figure 3.1: Age Discrimination Complaints, 1991 - 2006

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EEO: Legislation (continued)

Vocational Rehabilitation Act (1973)

• Covered organizations must engage in affirmative action for individuals with disabilities.

• Employers are encouraged to recruit qualified individuals with disabilities and to make reasonable accommodations to them.

Vietnam Era Veteran’s Readjustment Act (1974)

• Requires federal contractors and subcontractors to take affirmative action toward employing veterans of the Vietnam War.

• It covers veterans who served between August 5, 1964 and May 7, 1975.

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EEO: Legislation (continued)

Pregnancy Discrimination Act (1978)

• Defines discrimination on the basis of pregnancy, childbirth, or related form of medical condition to be a form of illegal sex discrimination.

• Benefits, including health insurance, should cover pregnancy and related medical conditions in the same way as other medical conditions.

Americans with Disabilities Act (ADA) of 1990

• Protects individuals with disabilities from being discriminated against in the workplace.

• Prohibits discrimination based on disability in all employment practices.

• Employers must take steps to accommodate individuals covered by the act.

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Figure 3.2: Disabilities Associated with Complaints Filed under ADA

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EEO: Legislation (continued)

Civil Rights Act (1991)• Adds compensatory and

punitive damages in cases of discrimination under Title VII and the ADA.

• The amount of punitive damages is limited by the act and depends on the size of the organization charged with discrimination.

Uniformed Services Employment & Reemployment Rights Act

• Employers must reemploy workers who left jobs to fulfill military duties for up to five years.

• Should be in the job they would have held if they had not left to serve in the military.

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Table 3.2: Maximum Punitive Damages Allowed Under the Civil Rights Act of 1991

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The Government’s Role in Providing For EEO:Equal Employment Opportunity Commission (EEOC)

• Responsible for enforcing most of the EEO laws.– Investigates and resolves complaints about

discrimination– Gathers information– Issues guidelines– Monitors organizations’ hiring practices

• Complaints must be filed within 180 days of the incident.

• EEOC has 60 days to investigate the complaint.

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Figure 3.3:Types of Charges Filed with the EEOC

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Figure 3.5: Examples of Reasonable Accommodation under the ADA

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Businesses’ Role in Providing for EEO: Avoiding Discrimination • Sexual Harassment: refers to unwelcome sexual

advances, requests for sexual favors, and other verbal or physical contact of a sexual nature when:

1. Submission to such conduct is made explicitly or implicitly a term of condition of an individual’s employment,

2. Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual, or

3. Such conduct has the purpose of effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment.

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Businesses’ Role in Providing for EEO: Avoiding Discrimination • Organizations can prevent sexual harassment by:– Developing a policy that defines and forbids it– Training employees to recognize and avoid this

behavior– Providing a means for employees to complain and

be protected

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Workplace Safety: Occupational Safety and Health Act (OSH Act)• Authorizes the federal government to establish

and enforce occupational safety and health standards for all places of employment engaging in interstate commerce.

• Established the Occupational Safety and Health Administration (OSHA). Responsible for:– Inspecting employers– Applying safety and health standards– Levying fines for violation

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Workplace Safety: Occupational Safety and Health Act (OSH Act) (continued)

General Duty Clause• Each employer has a

general duty to furnish each employee a place of employment free from recognized hazards that cause or are likely to cause death or serious physical harm.

Specific Duties• Employers must keep

records of work-related injuries and illnesses.

• Employers must post and annual summary of these records from February 1 to April 30 in the following year.

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Employee Rights Under the OSH Act

Employees have the right to:1. Request an inspection.2. Have a representative present at an inspection.3. Have dangerous substances identified.4. Be promptly informed about exposure to hazards and

be given access to accurate records regarding exposure.

5. Have employer violations posted at the work site.

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Enforcement of the OSH Act

• OSHA is responsible for inspecting businesses, applying safety and health standards, and levying fines for violations.

• OSHA regulations prohibit notifying employers of inspections in advance.

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Figure 3.7: Rates of Occupational Injuries and Illnesses

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Top 10 Causes of Workplace Injuries

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Summary (continued)

The major federal laws requiring EEO:

• Civil Rights Acts of 1866 and 1871

• Equal Pay Act of 1963• Title VII of the Civil

Rights Act of 1964• Age Discrimination in

Employment Act

• Vocational Rehabilitation Act of 1973

• Vietnam Era Veteran’s Readjustment Act of 1974

• Pregnancy Discrimination Act of 1978

• Americans with Disabilities Act (1990)

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Summary (continued)

• Civil Rights Act (1991)• Uniformed Services

Employment and Reemployment Act (1994)Constitutional Amendments:

• Thirteenth Amendment• Fourteenth Amendment

Executive Orders:• Executive Order 11246• Executive Order 11478

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Summary (continued)

• The Office of Federal Contract Compliance Procedures (OFCCP) is responsible for enforcing executive orders that call for affirmative action by companies that do business with the federal government.

• Employers can avoid discrimination by avoiding disparate treatment of job applicants and employees, as well as policies that result in disparate impact.

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Summary (continued)

• Affirmative action may correct past discrimination, but quota-based activities can result in charges of reverse discrimination.

• To provide reasonable accommodation, companies should recognize needs based on individuals’ religion or disabilities.

• Organizations can prevent sexual harassment by developing a policy that defines and forbids it, training employees to recognize and avoid this behavior, and providing a means for employees to complain and be protected.

3-27McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

fundamentals of

Human Resource Management 3rd editionby R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright

CHAPTER 5Planning For and Recruiting

Human Resources

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The Process of Human Resource Planning

• Organizations should carry out human resource planning so as to meet business objectives and gain a competitive advantage over competitors.– Human resource planning compares the present

state of the organization with its goals for the future

– Then identifies what changes it must make in its human resources to meet those goals

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Figure 5.1: Overview of the Human Resource Planning Process

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Forecasting

• Forecasting: attempts to determine the supply and demand for various types of human resources to predict areas within the organization where there will be labor shortages or surpluses.

There are three major steps to forecasting:

1. Forecasting the demand for labor

2. Determining labor supply

3. Determining labor surplus or shortage

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Forecasting the Demand for Labor

Trend Analysis• Constructing and

applying statistical models that predict labor demand for the next year, given relatively objective statistics from the previous year.

Leading Indicators• Objective measures that

accurately predict future labor demand.

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Determining Labor Supply

• Transitional matrix: a chart that lists job categories held in one period and shows the proportion of employees in each of those job categories in a future period.

It answers two questions:1. “Where did people in

each job category go?”2. “Where did people now

in each job category come from?

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Options for Reducing a Surplus

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Options for Avoiding a Shortage

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Recruiting Human Resources

• The role of human resource recruitment is to build a supply of potential new hires that the organization can draw on if the need arises.

• Recruiting: any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.

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Figure 5.2: Three Aspects of Recruiting

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Personnel PoliciesSeveral personnel policies are especially relevant to recruitment:

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Recruitment Sources: Internal Sources

• Job Posting: the process of communicating information about a job vacancy:– On company bulletin boards– In employee publications– On corporate intranets– Anywhere else the organization communicates

with employees

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Advantages of Internal Sources

1. It generates applicants who are well known to the organization.

2. These applicants are relatively knowledgeable about the organization’s vacancies, which minimizes the possibility of unrealistic job expectations.

3. Filling vacancies through internal recruiting is generally cheaper and faster than looking outside the organization.

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Recruitment Sources: External Sources

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Figure 5.3: External Recruiting Sources – Percentage of Employees Hired

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Summary

• The first step in human resource planning is personnel forecasting. Through trend analysis and good judgment, the planner tries to determine the supply and demand for various human resources.

• The next step is to determine the labor demand for workers in various job categories. Analysis of a transitional matrix can help the planner identify which job categories can be filled internally and where high turnover is likely.

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Summary (continued)

• To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees’ motivation and future recruiting.

• To avoid a labor shortage, requiring overtime is the easiest and fastest strategy.

• Internal recruiting generally makes job vacancies more attractive because candidates see opportunities for growth and advancement.

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Summary (continued)

• Lead-the-market pay strategies make jobs economically desirable.

• Internal sources are usually not sufficient for all of an organization’s labor needs.

• Through their behavior and other characteristics, recruiters influence the nature of the job vacancy and the kinds of applicants generated.

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Wrap Up – Wks 2,3,4

Read – Chapters 3, 5, and 6Case Studies – Weeks 2 and 4Quizzes – Weeks 3 and 4Next Seminar – Week 4