Chapter 8: Human Resources

Human Resource Management

The set of organizational activities directed at attracting, developing, and maintaining an effective workforce

Human Capital

Reflects the organization's investment in attracting, retaining, and motivating an effective workforce

Civil Rights Act of 1964

is to ensure that employment decisions are made on the basis of an individual's qualifications rather than on the basis of personal biases.

Direct Discrimination

refusing to promote African Americans into management, failing to hire men as flight attendants, or refusing to hire women as construction workers

Indirect Discrimination

using employment tests that whites pass at a higher rate than African Americans

Age Discrimination in Employment Act

is an attempt to prevent organizations from discriminating against older workers. Outlaws discrimination against people older than 40 yrs. old

Americans with Disabilities Act

forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees.

Family and Medical Leave Act of 1993

requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies.

Job Analysis

is a systematic analysis of jobs within a organization.

Job Description

lists the duties of a job, the job's working conditions and the tools, materials, and equipment used to perform it

Job Specification

lists the skills, abilities, and other credentials needed to do the job

replacement chart

lists each important managerial position, who occupies it, how long he or she will probably stay in it before moving on, and who is now qualified or soon will be qualified to move into the position

employee information system (skills inventory)

is usually computerized and contains information on each employee's education, skills, work experience, and career aspirations.


is the process of attracting qualified person to apply for jobs that are open

Internal recruiting

means considering present employees as candidates for openings

External recruiting

involves attracting persons outside the organization to apply for jobs. Advertising, campus interviews or employment agencies

Realistic Job Preview (RJP)

involves providing the applicant with a real picture of what it would be like to perform the job that the organization is trying to fill.

Assessment Centers

popular method used to select managers and are particularly good for selecting current employees for promotion.


Teaching operational or technical employees how to do the job for which they were hired


Teaching managers and professionals the skills needed for both present and future jobs

Vestibule Training

When employees must learn a physical skill, methods allowing practice and the actual use of tools and materials are needed (enables participants to focus on safety, learning , and feedback rather than on productivity

Performance Appraisal

a formal assessment of how well employees are doing their jobs

Objective Appraisal

include actual output (that is, number of units produced), scrap rate, dollar volume of sales, and number of claims processed

Judgemental Appraisal

including ranking and rating techniques, are the most common ways to measure performance. Ranking compares employees directly with one another and orders them from best to worst.

Recency Error

the tendency to base judgement s on the subordinate's most recent performance because it is most easily recalled

360 Degree Feedback

in which managers are evaluated by everyone around them- their boss, their peers, and their subordinates. Provides people with a far richer array of information about their performance than does a conventional appraisal given just by the boss


include compensation (raises, bonuses, signing bonus), recognition, rewards and appreciation incentives


are things of value other than compensation that the organization provides to its workers. Sick leave, vacation, holidays, unemployment compensation, social security pension plans, insurance benefits

Cafeteria Benefit Plans

whereby basic coverage is provided for all employees but employees are then allowed to choose which additional benefits they want (up to the cost limit based on salary)


exists in a community of people when its members differ from one another along one or more important dimensions. A characteristic of a group or organization whose members differ from one another along one or more important dimensions, such as age, gender, or ethnicity.

Labor Relations

is the process of dealing with employees who are represented by a union

Grievance Procedure

is the means by which the contract is enforced. Most of what is in a contract concerns how management will treat employees.

Contingent Workers

is a person who works for an organization on something other than a permanent or full time basis (independent contractors, on-call workers, temporary employees and contract and leased employees.