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Test 3

The Nature of Workforce Diversity

Diversity- exists in a group or organization when its members differ from
one another along one or more important dimensions
Factors contributing to diversity
o Changing demographics
o Increased awareness by organizations
o Legislation and legal actions
o Globalization movement

Diversity Management versus other concepts

Equal employment opportunity: treating people fairly and equitable and
making actions that do not discriminate against people in protected classes
Affirmative action plans could serve to increase diversity
o Plans are different than plans focusing on diversity management
Diversity management- places heavier emphasis on recognizing and
appreciating differences among people at work
o Attempts to provide accommodations for those differences to the
extent that is feasible and possible

Dimensions of Diversity

Gender Ethnicity

Disability Other
Figure on trends of immigration in book

Impact of Diversity of Organizations

Diversity and Diversity and Diversity and

social change competitiveness conflict

Diversity and Competitiveness

Managing Diversity in Organizations

Individual Strategies for dealing with diversity
o Understanding the nature and meaning
o Empathy
o Tolerance
o Communication
Organizational strategies for dealing with diversity
o Organizational policies
o Organizational practices
o Diversity training
Designed so they can function under diverse work environment
Like sensitivity training
Teaches how to understand, empathy, tolerance, and how to
o Organization culture
The Multicultural organization
One that achieves high level of diversity, can capitalize fully on the advantage
of the diversity, and has few diversity-related problems
One in which diversity and the appreciation of all cultures is the way
business is done

There are 6 characteristics of the organization- (look up def. of these)

1. Pluralism-
every group in an organization trys to
2. full integration of information network-
3. no gap organization identification based on cultural group
not based on religion/ race.. etc
4. Full structural intergradation
5. Absence of prejudice and discrimination-
work really hard to eliminate most of it, will never be able to get
rid of all of it
6. low levels of intergroup conflict
some people despite all the training they still wont get over if
they dont like someone, and theres not much you can do but try
to eliminate all conflict
this type of organization runs smoothly but they still have their

The Multicultural organization

Managing Knowledge Workers

Organizational Learning: process by which an organization learns from
past mistakes and adapts to its environment
o Organization memory- collective, institutional record of past events
Knowledge workers- employees who add value because of what they know
This is a challenge, because they demand different things
You dont physically produce anything you produce a service

Human resource management and social issues

Increasing awareness that the needs of the organization can be met even
while addressing the needs of the employees or of society as a whole
Increasing concern with social issues in general

Prison labor
o a social issue would be hiring prison workers because you are lowering
your employees. Hiring prisoners it cheep labor
Living wage-
Immigration- illegal immigration
Social responsibility/ social enterperniship-
o Giving back to the community

Social Issues and Human Resource Management

Diversity- exists in a group or organization when its members differ from
one another along one or more important dimensions
One that achieves high level of diversity, can capitalize fully on the
advantages of the diversity and has few diversity related problems

Key terms Diversity training Multicultural

Equal employment organization
Diversity management
opportunity Organizational
Glass Ceiling
Knowledge workers
Chapter 9

Compensation and benefits

Set of rewards that organizations provide to individuals for willingness on
tasks performed
Benefits: various items of value beyond wages that employees receive from
the organization
o Rewards
o Incentives
Everybody works for money
Basic purposes of compensation
To provide appropriate and equitable rewards to employees
To help employees focus on activities that the organization considers
To increase employee efforts along desired lines
Internal equity: comparisons made by employees to other employees within
the same organization
External equity: comparisons made by employees to others employed by
different organizations performing similar jobs
Pay surveys: survey of compensation paid to employees by other employers
in a particular geographic area, industry, or occupational

Salaries are based on what you do, while wages are based on time

Strategic Options for Compensation

If you pay above market rate- you will get more experienced and better workers.
Workers will stay
If you pay at market rate- you will get average workers
If you pay below market rate you will have unexperienced workers, workers will
not stay. You would be able to pay for a job like this in a low income community or if
you have no competition.

Determining what to pay

Job evaluation methods: determines the relative value of a job to the
o Classification system: attempts to group sets of jobs together into
o Point system: requires managers to quantify the value of various
elements of specific jobs in objective terms
most people will do this system
point manual: carefully and specifically defines the degrees of
points from first to fifth

o factor-comparison method: assesses jobs on a factor-by-factor basis

using a factor- comparison scale as a benchmark
o five factors
1. Responsibilities
2. Skills
3. Physical effort
4. Mental effort
5. Working conditions
o Managers performing a job evaluation in a factor-comparison
system are typically advised to follow six specific steps:
o 1. The comparison factors to be used are selected and
defined. The five universal factors are used as starting
points, but any given organization may need to add factors
to this set.
o 2. Benchmark or key jobs in the organization are
identified. These jobs are typically representative of and
common in the labor market for a particular firm. Usually,
ten to twenty benchmark jobs are selected.
o 3. The benchmark jobs are ranked on each compensation
factor. The ranking itself is usually based on job
descriptions and job specifications determined by a job
o 4. Part of each benchmarks job wage rate is allocated to
each job factor based on the relative importance of the job
factor. Each manager participating in the job evaluation
might be asked to make an independent allocation first,
without consulting with other managers. Then the
managers would meet as a group to develop a consensus
about the assignment of monetary values to the various
o 5. The two sets of ratings are prepared based on the
ranking and the assigned wages to determine the
consistency demonstrated by the evaluators.
o 6. A job-comparison chart is developed to display the
benchmark jobs and the monetary values that each job
received for each factor. This chart can then be used to
rate other jobs in the organization as compared to the
benchmark jobs.

Determining what to pay continued

o pay for knowledge: involves compensating employees for learning specific
o skill-based pay: rewards employees or acquiring new skills

Wage and salary administration

o ongoing process of managing a wage and salary structure
o pay secrecy: extent to which the compensation of any individual in an
organization is secret
o pay compression: occurs when individuals with substantially different
levels of experience, or performance abilities, are paid relatively equal
o pay inversion: new employees are paid more than experienced employees
Pay compressions and pay inversions occur due to rapid external market changes
(occurs when economy is doing well and the wages are being pushed up)

1. PTO (paid time off)
2. Health Insurance
3. 401K
4. Tuition Reimbursements
5. Company Vehicle
6. Gas Card
7. Living Stipend
8. Family Medical Leave
9. Stock Options
10. Fitness Centers
11. Day Care
12. Paid Education
13. Food Plan
14. Dental Insurance
15. Workers Comp
16. Holiday Parties
17. Bonuses
18. Social Security
19. Uniform Allowance
20. Wellness Program
21. Free Tickets
22. Sick Leave
23. Product Discount
24. Company Phone
25. Employee Reward Programs

Wages and Salery Administration

Old age survivor and disability program . Look up
Pay compression: occurs when individuals with substantially different
levels of experience, or performance abilities, are paid relatively equal
Pay inversion: new employees are paid more than experienced employees
o Occurs due to rapid external market changes

The nature of Benefits program

Most organizations provide their employees with an array of benefits
The cost of benefits programs
o Organizations spend huge amounts on benefits
o Employees are asked to bear more of the costs
Purpose of benefits programs
o Attracts better qualified people
o Affect job satisfaction
Mandated benefits
Unemployment insurance: intended to provide a basic subsistence
payment to employees who are between jobs
Social security: designed to provide limited income to retired
Workers compensation: insurance covering individuals who suffer a job
related illness or accident
And now health care

Defined benefit plan- every month you are going to get a check and you new you
were going to get paid X amount of dollar
Defined contribution plan- when you put money it to the plan also know as the 401K

Nomandated benefits
Private pension plan: provides income at retirement
o Deigned benefit plans
o Defined contribution plan
Paid time off
Other benefits
o Wellness programs
o Cafeteria style befits
Were the employees get to choose what benefits they want.

Contemporary issues in compensation and benefits

Executive Growing legal

compensation issues

compensation and
benefit programs
Executive Compensation-
Growing legal issues
Evaluating compensation and benefit programs

Employee retired employment .. act (ERISA)- protect employees to protect

pension and couldnt

Compensation: Set of rewards an organization provides to individuals in
return for their willingness to perform various jobs and tasks within the
Benefits: Various rewards, incentives, and other things of value an
organization provides to its employees

Key terms
Benefits Maturity curve Social security
Cafeteria-style benefits plans Pay compression Unemployment
Classification system Pay for knowledge insurance
Compensation Pay inversion Vesting rights
Defined benefit plans Pay secrecy Wage and salary
Defined contribution plans Pay surveys Wages
External equity Point manual Wellness
Factor-comparison method Point system programs
Internal equity Private pension plans Workers
Job evaluation Salary compensation
Skill-based pay

Chapter 10
Performance appraisal and Career Management

The importance of Performance Appraisal

(lots of different names for this)
Marriet rade (another name)
Provide a benchmark for assessing the extend to which recruiting and
selection processes are adequate
Important for legal reasons
o You have to be able to document everything a person does, especially if you are
going to use this as a basis to promote them, demote them, or terminate
Play a role as a part of the larger performance appraisal
o They need to keep records (documentations) all year to right before the appraisal the
employees try to work their hardest, management needs to due there jobs and
evaluate them almost everyday
Basis of incentive pay systems
The whole part of performance appraisal is to improve the overall employee
Designed to improve motivation and performance
o Help people by setting goals

The performance Management Process in a typical Organization

Where do you do performance appraisal meetings?

o Private setting about
o No distracts/ look them in they eye
o HR department designs the performance appraisal
When are the annual reviews are usually done?
o At the end of the year/ middle of the year
o You can do it on anniversary of work
Supervisors due the ratings
o You must chain the raters
Sources of information from performance appraisal

Supervisors- usually has the most knowledge about the job

Peers- People on the same levels
Self Appraisal- you rate yourself

Methods for appraising performance

Ranking methods versus rating methods
o Simple ranking method
Simple way to score there performance appraisals (like in order)
o Paired comparison method
Comparing each individual employee to another one at a time
o Forced distribution method
Group employees together
Specific rating methods _(look up in book)
o Graphic rating scale
You have a statement about a performance and you rate how
they score on that (average/below average/outstanding..etc)
o Critical incident method
Look at incidents that were very important.
o Behaviorally anchored rating scale (BARS)
Look in book
o Behavioral observation Scale (BOS)
Develop critical incidents, more behaviors to define all measures
o Management by objectives (MBO)
They set goals that they want them to achieve in the next years

It depends on the company which system would be best

Issues in performance appraisal
Rating Errors
o Contrast error
o Distributional errors
o Halo error
When one positive characteristic of a person makes them grade them
all good
o Horns error
One thing bad tends to color there entire rating bad
Contextual performance
o Task an employee does in the jobs that are not required. Like staying late,
helping others get there work done.
Evaluating the performance appraisal process
o Dont want to have any bias or discrimination, helps you figure out who you
best performance is
o Want to make sure everything on there is job related
Legal issues

The nature of careers

Career- set of experiences and activities that people engage in related to
their job and livelihood over the course of their working life
People have thought of the various components making up a persons career
as having some degree of interrelation

The traditional Model of Career States (Figure 10.5)

o First job you are learning what you want to do
o Creating a
o Optimizing talent and capabilities (mid40-mid 60)
Decline/ disengagement
o Move on top something else
Over 40 you are protected by the ADEA. Protects you from being terminated unfairly.

Individual and organization perspective on career planning (Figure 10.6)

Look at chart
Steps in career planning (figure 10.7)
Individual assessment
o Find their own abilities and goals
Organization specification of career paths and opportunities
Performance management
Career counseling

Career Development issues and challenges

Career counseling programs
Dual career and work family issues
o When both spouses are working
o Work family balance, to spend more time with their family
Evaluating career management activities
o Employees reach their full potential and make a successful transition
to employment

Performance appraisal: Specific and formal evaluation of an employee to
determine the degree to which employee is performing his or her job
Performance management: General set of activities carried out by the
organization to change employee performance
People have thought of the various components making up a persons career
as having some degree of interrelation

Key terms

360-degree appraisal Forced-distribution method

Behavioral observation Graphic rating scale
scale (BOS) Halo error
Behaviorally anchored Horns error
rating scale (BARS) Individual assessment phase
Career Maintenance
Career counseling Management-by-objectives (MBO)
Contextual Paired-comparison method
performance Performance appraisal
Contrast error Performance management
Critical incident Simple ranking method
Distributional error
Chapter 11

The first union was in the middle ages in Europe, they were called gills. Made
up of crafts people.

The role of Labor Unions in Organizations

Labor relations: process of dealing with employees who are represented by
a union
Labor Union: legally constituted group of individuals working together to
achieve shared, job related goals, including:
o Higher wages
o Better working conditions
Collective bargaining: process by which managers and union leaders
negotiate acceptable terms and condition of employment for union
represented workers
o Also called employee relations is non unionized settings

FIGURE 11.1- look over all those acts

Knights of Labor- they let anyone in no mater race or creed. EXCEPT people who are
considered social parasites. They considered bankers as parasites

AFL- Congress of industrial organization (CIO)- 15 million employees

National labor relation act (wagner act)- this act granted power to unions. This
created the first national relations

Taft hartly act 1947- designed to pull back a little power from the union.

In 1976 Louisiana was not a right to work

Sold a piece of plant to jupitar
They decided to hire a multi craft union
o Multi craft union is that people could do more than one job
LA became a right to work state
o Gives people a lot more freedom

60 day cooling off peopled

Truman tried to Nationalize the railroad- government own the rail roads
Figure 11.2
Shop steward-
Local Union
o Business manager- a professional employee of the union. And the
represent the union and negotiation
National or international union

Today About 12.4% are represented by the union

Trends in Unionization
Trends in :
o Union membership
Unionization has increased in the service sector but not in the
rest of the economy
o Union management relations
Weaker unions have taken conciliatory stance with managers
o Bargaining perspectives
Job security is currently a major demand

Figure 11.4 study steps

The collective- bargaining process

Preparing for collective bargaining
o Examine the financial health of the company
Setting parameters for collective bargaining
o Mandatory items: included as part of collective bargaining of either
party expresses a desire to negotiate one or more of them
o Permissive items: included in collective bargaining if both parties

Negotiating labor agreements

Employers points of negotiation
o Maximum limit
o Expectation
o Desired result on item being negotiated
Labor unions point of negotiation
o Minimum acceptable limit
o Expectations that the management is likely to agree to
o Target point
Barries to effective negotiation
o Lack of an overlap for the bargaing zones of the respective sides
o Inept negotiators
o Poor communication between negotitors
o Impasses: situation in which one or both parites belive that reaching
an agreement is not imminent


SICKOUT- employees dont go because they are pretending that they are sick
Wildcat strike- union member declaire on their own that they are going to strike