After an organization has set up its structural design, it needs individuals who possess the necessary skills, knowledge, and abilities to fill different roles within that structure. People are the most valuable asset of the organization as they can either improve or damage its reputation for providing exceptional products and services. Additionally, organizations must have the capacity to adapt to change in order to remain competitive. A skilled workforce can guide an organization through times of change and ensure its long-term success.
Human resource management (HRS) is essential for the success of an organization, encompassing the recruitment and retention of skilled personnel. HRS involves acquiring, training, evaluating, and compensating employees. While all managers contribute to HRS, larger organizations often have specialized experts. Effective HRS practices develop a motivated workforce capable of achieving organizational objectives and managing change. Understanding the fundamentals of HRS enhances managerial efficiency. Three key principles are important: every manager has responsibility for human resources; employees are valuable assets; and HRS aligns organizational needs with employee needs. Additionally, staffing procedures must comply with federal, state, and local laws.
Managers are required to adhere to regulations regarding equal opportunity, affirmative action, and sexual harassment as stipulated in the Title VII of the 1964 Civil Rights Act. These laws, including EEO laws, affect all aspects of human resource practices and aim to protect individuals from discriminatory hiring practices based on characteristics like race, age, or gender.
The protected class includes individuals with specific attributes, as defined by federal laws. This category encompasses a range of characteristics such as race, ethnic origin, color (e.g., African American, Hispanic, Native American, Asian), gender (including pregnant women), age (people over 40), individuals with disabilities (both physical and mental), military experience (Vietnam-era veterans), and religion (including special beliefs and practices). The main goal of EYE laws is to ensure equal employment and advancement opportunities for all.
Affirmative action goes beyond workplace equal treatment laws by requiring employers to make extra efforts in hiring and promoting individuals from protected groups. The objective of affirmative action is to tackle the ongoing consequences of past discriminations. To safeguard employees, the Equal Employment Opportunity Commission (EEOC) was created under the 1964 Civil Rights Act (Title VII).
The EEOC has been granted more authority to enforce three laws: the Civil Rights Act of 1964, which prohibits discrimination based on race, color, religion, national origin, or sex; the Civil Rights Act of 1991, which enhances the prohibition against discrimination and grants individuals the right to pursue punitive damages in instances of intentional discrimination while altering the burden of proof for employers; and the Equal Pay Act of 1963, which forbids gender-based wage differences for comparable job responsibilities.
The Pregnancy Discrimination Act of 1978 safeguards women against discrimination or termination resulting from pregnancy, while also guaranteeing job security during maternity leave. Similarly, the American with Disabilities Act prohibits discrimination towards individuals with physical or mental disabilities, encompassing mental illness, and mandates the provision of “reasonable accommodations” for disabled persons. Additionally, the Vocational Rehabilitation Act forbids discrimination based on physical or mental disabilities and mandates employers to inform employees about affirmative action plans.
Title VII requires most employers in the United States to adhere to its regulations, including private employers with 15 or more employees, educational institutions, state and local governments, public and private employment agencies, labor unions with 15 or more members, and joint labor-management committees for apprenticeship and training. Sexual harassment is one of the crucial workplace issues that has received substantial focus recently.
After professor Anita Hill confronted Supreme Court nominee Clarence Thomas on national television over a decade ago, the United States has experienced a more than two-fold rise in the yearly number of sexual harassment claims filed. Traditionally, U.S. Courts have relied on guidelines from the Equal Employment Opportunity Commission since 1980 to determine what qualifies as sexual harassment. These guidelines encompass “unwanted sexual advances for sexual favors, and other verbal or physical behavior of a sexual nature.”
In 1993, the Supreme Court broadened the scope of sexual harassment in the workplace by incorporating sexually suggestive remarks, unwanted touching, sexual advances, requests for sexual favors, and other verbal and physical acts of a sexual nature. The court concluded that identifying behavior or comments as sexual harassment hinges on whether they would reasonably be perceived as hostile or abusive. Consequently, employees are no longer required to demonstrate psychological harm to substantiate cases of sexual harassment; instead, they must establish that their work environment is marked by hostility or abuse.
The U.S. Supreme Court has broadened the scope of sexual harassment to encompass instances of same-sex harassment and situations where male employees are harassed by female coworkers. This shift in understanding originated from a lawsuit filed by a male oil-rig worker who faced explicit sexual behavior, unwelcome physical contact, and threats from his all-male colleagues. Sexual harassment continues to be a persistent concern for employers, as it not only intimidates workers and impacts their work performance but also opens up organizations to potential legal ramifications.
It is crucial for organizations to promptly handle sexual harassment complaints, as not doing so can result in legal accountability. Failing to take proper action can lead to significant consequences. According to the Civil Rights Act of 1991, individuals who endure sexual harassment have the right to a jury trial and may pursue compensatory damages if their employer demonstrated “malice or reckless indifference” towards their rights. Employers can mitigate liability for sexual harassment lawsuits by implementing measures like issuing a statement with a policy against sexual harassment.
The reporting process for employee complaints about sexual harassment should be included in this statement. It should also ensure confidentiality and guarantee appropriate disciplinary action against those who harass others. Additionally, supervisors and managers should have communication and training programs to emphasize a zero-tolerance policy towards sexual harassment. Fair investigations should be conducted based on objective facts, with the complainant being protected from further inappropriate behavior. It’s important to acknowledge that other employment laws impact staffing practices as well.
The Fair Labor Standards Act establishes the lowest wage, regulations for extra compensation, and standards for underage labor.
The Employee Polygraph Protection Act restricts the employment use of lie detector machines.
Privacy laws provide specific employees with legal entitlement to their employment records and performance data.
The Whistler’s Protection Act offers legal safeguard to certain workers who disclose hazardous activities conducted by employers.
Table 1 presents a compilation of additional federal regulations impacting HRS practices.
TABLE 1 Some Federal Laws Shaping HRS Practices Law Date Description National Labor Relations Act 1935 Requires employers to acknowledge a union selected by the majority of employees and establish procedures for collective bargaining. Age Discrimination in Employment Act 1967, amended in 1978 and 1986 Prohibits age discrimination against employees aged 40 to 65 and limits mandatory retirement. Occupational Safety and Health Act 1970 Imposes compulsory safety and health standards in organizations.
The Vietnam-Era Veteran’s Readjustment Assistance Act of 1974, the Mandatory Retirement Act of 1978, the Immigration Reform and Control Act of 1986, the Worker Adjustment and Retraining Notification Act of 1988, and the Employee Polygraph Protection Act all have specific provisions related to employment law.
The Family and Medical Leave Act of 1993 permits eligible employees in organizations with at least 50 workers to have a maximum of 12 weeks unpaid leave each year for family or medical reasons. Assessing an organization’s staffing requirements is an ongoing procedure that begins with planning, recruiting, and selecting qualified candidates. Nonetheless, the duties associated with staffing do not conclude upon hiring; management must also furnish training, assess performance, provide compensation, and make employment choices regarding promotions, transfers, and layoffs.
Human resource planning is the first step in staffing. It involves conducting a job analysis to create descriptions of all job tasks and required qualifications for each position. A job description is a written statement that outlines the duties, methods, and motivations involved in a specific job. Typically, it provides details about the job’s content, work environment, and employment conditions. On the other hand, a job specification defines the minimum qualifications necessary for someone to perform a particular job effectively. It identifies the essential knowledge, skills, and abilities needed to successfully fulfill the role.
After job analysis, a human resource inventory is conducted to list qualifications and interests. This is followed by creating a human resource forecast that predicts the organization’s future job and personnel requirements based on strategic plans and expected attrition. The forecast is compared to the inventory to determine if staffing needs can be met with current personnel or if new employees need to be hired or existing ones terminated. Recruiting strategies encompass all measures an organization can take to attract potential candidates.
Recruiting has gained significance due to various reasons. One of these reasons is the decline in the employment rate in the United States, which has been a consistent pattern since the 1970s. Experts commonly refer to this current recruiting scenario as “evaporated employee resources”. It is widely acknowledged that individuals belonging to Generation X (born between 1963 and 1981) have lower inclination towards seeking long-term employment compared to earlier generations. As a result, procuring effective incentives for attracting, employing, and retaining qualified personnel may pose a greater challenge than previously.
Recruiting strategies vary between organizations. While campus recruiting is commonly associated with recruitment, many organizations opt for internal recruiting or promote-from-within policies to fill high-level positions. These organizations post open positions and give preference to current employees when these positions become available. Internal recruitment is a more cost-effective option than an external search and encourages greater commitment, development, and satisfaction among employees by offering them opportunities for career advancement from within the company.
If internal sources fail to produce a suitable candidate, there are several external recruiting strategies that can be utilized. These include newspaper advertising, employment agencies (private, public, or temporary), executive recruiters (also known as headhunters), unions, employee referrals, internship programs, and internet employment sites. However, attracting employees is not the only aspect of recruiting; managers must also have the ability to identify and eliminate top candidates. Once a manager has a pool of applicants, the selection process can commence.
Ensuring the right individual is chosen for a job is essential for an organization’s success. Different selection tools aid employers in predicting the potential success of applicants if hired. These tools strive to be both valid and reliable. Validity entails demonstrating a connection between the selection tool and a relevant criterion. Reliability indicates that the tool consistently measures the same thing. For instance, it would be suitable to administer a keyboarding test to an administrative assistant job candidate.
However, it would not be valid to administer a keyboarding test for a physical education teaching position. If the same individual takes a keyboarding test twice, the results should be comparable. A selection device must exhibit an acceptable level of consistency to be an effective predictor. For many employers, the application form is the initial stage in the selection process. Application forms offer a documentation of important applicant information and also provide data for personnel research.
During an interview, interviewers may refer to the application responses for follow-up questions. These forms can include basic information like names, addresses, and telephone numbers, as well as detailed personal history profiles that outline applicants’ education, job experience, skills, and accomplishments. According to the EEOC’s Uniform Selection Guidelines, which aim to prevent unequal treatment, any employment requirement, including a job application, is considered a test by employers.
Managers must comprehend the link between EEOC considerations and application forms to prevent discrimination against protected groups. They should make sure that their application forms do not contain unnecessary questions that could impede applicants’ success. For example, inquiring about an applicant’s home ownership status may unfairly influence their employment prospects. This is because minorities and women have lower rates of homeownership, and owning a home does not impact job performance.
Both male and female applicants are eligible to take the CPA exam, regardless of any percentage disparity between them. The Uniform Selection Guidelines recommend using the four-fifths rule as a rapid assessment method for determining disparate impact in accounting job hiring. If the proportion of protected class applicants hired is less than 80 percent (four-fifths) of the proportion of majority group applicants selected, it is inferred that there is disparate impact.
Consider a scenario where an employer has 100 applicants for an entry-level job, all of whom are white males. The employer ends up hiring half of them, creating a selection ratio of 1:2 or 50% (50/100). It’s important to note that the four-fifths rule does not require the employer to hire 40 protected class members. Instead, it suggests that the employer’s selection ratio for protected class-applicants should be at least four-fifths of the majority groups’ ratio. Additionally, testing is another method used for selecting competent future employees.
Recent studies have shown that over 80 percent of employers utilize testing as part of their selection process. While the usage of these tests has changed in the past twenty years, it remains essential for them to possess validity and reliability to address concerns about their application. Managers have a responsibility to ensure that evaluations solely measure job-related factors when assessing candidates. These exams primarily concentrate on specific aptitudes and skills required for the position, such as mathematics or motor skills. One prevalent form of assessment is integrity tests, which seek to evaluate dependability, carefulness, responsibility, and honesty.
The purpose of these tests is to gather job candidates’ perspectives on job-related matters. Since the Employee Polygraph Protection Act was passed in 1988, polygraph tests (also called lie detectors) have been banned for employment purposes. Attitude tests are now used instead to evaluate individuals’ attitudes towards honesty and, theoretically, their behavior at work. Personality tests assess an individual’s personality or temperament but are considered one of the least reliable types of tests because there is little or no correlation between personality and performance.
Knowledge tests are considered to be more dependable than personality tests because they assess an applicant’s understanding or knowledge of a specific subject. For instance, an accountant may be required to take a math test, while a pilot may be evaluated through a weather test. Human relations specialists must ensure that the test accurately measures the necessary knowledge for the job. For instance, a teacher who will be teaching math should not be given a keyboarding test. Performance simulation tests are growing in popularity and are more likely to meet the requirement of being relevant to the job based on job analysis data. These tests evaluate actual job behaviors.
The most well-known type of performance simulation test is called work sampling, and other trustworthy simulation methods are conducted at assessment centers. Assessment centers are a selection method that assesses how candidates handle job situations that are simulated, and evaluates their potential by observing their performance in activities designed to simulate daily work. These assessment centers, where work sampling is often done, utilize line executives, supervisors, or trained psychologists to evaluate candidates as they complete exercises that simulate real situations they would encounter in their jobs.
Activities in assessment centers may involve interviews, problem-solving exercises, group discussions, and business-decision games. These centers have shown consistent results in predicting job performance for managerial positions. Work sampling is a method that allows applicants to demonstrate their skills by performing actual job tasks. Interviews are another commonly used selection technique, where a formal and thorough conversation is conducted to assess an applicant’s suitability.
The interviewer typically aims to address three main inquiries during the interview: 1. Does the applicant possess the necessary skills to perform the job? 2. Is the applicant motivated enough to carry out the job? 3. How does the applicant measure up against other candidates for the position? Interviews are favored due to their adaptability, as they can be tailored for unskilled, skilled, managerial, and staff roles. Moreover, they enable a mutual exchange of information, allowing both interviewers and applicants to gain insights about each other. However, interviews do come with certain limitations.
The most significant issues with the interview process are in terms of reliability and validity. Reliable interviews ensure that interpretation of the interview results remains consistent across different interviewers. This can be achieved by asking identical questions. The validity of interviews is often in doubt due to the lack of standardized questions used by many departments. To improve the reliability and validity of selection interviews, managers should plan the interviews, establish rapport, conclude with time for questions, and review the interview shortly after it ends.
Other selection techniques, such as reference checking and health exams, are also crucial in the staffing decision process. Reference checking enables employers to confirm the information provided by candidates, although this can be challenging due to privacy laws and concerns about defamation lawsuits. Health exams, on the other hand, help identify health issues that may result in increased absenteeism and accidents, as well as detecting diseases that candidates may be unaware of.
Orientation and training programs are vital in preparing employees to effectively perform their jobs. Orientation entails providing new hires with fundamental information about the employer, while training programs aim to equip them with the knowledge needed for satisfactory job performance. These programs play a critical role in cultivating a dedicated and flexible workforce with great potential, as well as seamlessly integrating new employees into the company culture.
Investing in employee training has the potential to bring cost savings for employers and benefits for the organization. Despite this, orientation and training programs are frequently overlooked. In the United States, a recent study revealed that 57 percent of employers noticed an increase in skill requirements among their employees over three years. Regrettably, only 20 percent of employees were considered fully proficient in their job roles.
Orientation programs serve two purposes: improving job performance and fulfilling employees’ social integration desires within the organization. Typically, the HRS department provides newcomers with information about overall organizational matters and additional benefits. Supervisors contribute to the orientation process by introducing new employees to colleagues and other relevant individuals. Additionally, a designated buddy or mentor may be assigned to support the ongoing orientation process. It is essential to recognize that simply hiring and assigning employees to roles does not guarantee their success; training needs must also be addressed.
Even employees with job security may require training due to changes in the business environment. Signifying the need for training are the following changes: the introduction of new equipment or processes, a shift in job responsibilities, a decrease in productivity or output quality, an uptick in safety violations or accidents, an increasing number of queries, and complaints from customers or colleagues. Once managers determine their employees require training, they must establish explicit training objectives that specify the expected outcomes.
Managers must effectively communicate goals to employees, understanding that training alone may not always solve performance issues. If problems stem from factors like lack of motivation, poorly designed job roles, or external influences such as family problems, training may not be effective. Once specific training objectives are set, scheduling training sessions becomes necessary for employees to achieve their goals. Employers commonly offer various training programs, including basic literacy training.
Ninety million American adults lack adequate literacy skills, with approximately 40 million unable to read or reading very little. This presents a challenge for organizations since most work-related tasks require a reading level equivalent to tenth or eleventh grade. Moreover, around 20 percent of Americans aged 21 to 25 possess a reading level below eighth grade. Consequently, organizations are increasingly recognizing the necessity of offering basic literacy training in both reading and math skills to their employees. Alongside literacy instruction, advancements in technology and changes in structural designs have emphasized the importance of employees upgrading and enhancing their technical proficiencies, regardless of whether they hold white-collar or blue-collar positions.
Effective interaction with coworkers is essential for employees who are part of a work team, making interpersonal skills training crucial for their work performance.
Incorporating self-managed teams or implementing Total Quality Management (TTS) has made problem-solving training an integral part of organizational efforts. This is because modern employees frequently work in self-managed teams and are responsible for resolving their own issues.
The field of diversity training is experiencing rapid growth as it seeks to improve awareness and foster cultural sensitivity skills. This training encompasses sessions that emphasize the significance of managing and appreciating diversity, along with programs that educate employees about specific cultural differences in the workplace. On-the-job training methods are frequently employed due to their simplicity and cost-effectiveness. Job rotation is a prevalent type of on-the-job training.
Employers can introduce variety and expose individuals to the interdependence among different roles by temporarily assigning people to different jobs or tasks. Job rotation promotes a team-oriented approach, encourages higher levels of contributions, and renews interest and enthusiasm. Mentoring programs, whether in the form of apprenticeships in trades or coaching/mentoring relationships in white-collar jobs, offer guidance from experienced professionals to new employees as they learn their roles.
In every case, a fresh employee receives training from a skilled worker. On occasion, on-the-job training may not fulfill all the required objectives, leading the employer to look for other resources. Off-the-job training can involve external consultants, faculty members from nearby colleges, or internal personnel. Common off-the-job training methods include classroom lectures, videos, and simulation exercises. With technological advancements, employers now have the option to provide specific training materials like tutorials that employees can access on their personal computers, resulting in cost reduction. Regardless of the selected approach, effective training should be tailored to suit each individual.
Individuals have varying preferences for how they absorb information. Some people prefer reading, while others learn better through observation or listening. These different learning styles can all be accommodated in training programs. By customizing training based on an employee’s preferred style, the effectiveness of the training can be improved and employees can retain more knowledge. In addition to providing training, employers should also offer development plans that include a series of steps to help employees gain the necessary skills for long-term goals such as job promotions.
Training is immediate and job-specific, while evaluating employee performance should be done regularly. Employees crave feedback to learn how their supervisors perceive their work. Performance evaluations not only give employees feedback, but also offer an opportunity to address any shortcomings.
