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50 Cards in this Set
- Front
- Back
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What is the difference between human capital and human resources management?
Human capital ch1 |
the knowledge, skills, and capabilities of individuals that have economic value to an organization
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Human resource management
CH1 |
the process of managing human talent to achieve an organization’s objectives
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Explain how globalization is influencing human resource management.
Globalization CH1 |
approximately 70 to 85 percent of the U.S. economy is affected by international competition
About 10 percent of what Americans produce every year, dollar-wise, is sold abroad |
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IMpact of globalization
CH 1 |
“Anything, anytime, anywhere” markets
Partnerships with foreign firms Lower trade and tariff barriers |
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Describe the challenges in managing human capital. (7) Responding strategically
ch1 |
-responding strategically to changes in the marketplace
-Human resources managers need an intimate understanding of their firms’ competitive business operations and strategies, such as: -Total Quality Management (TQM) -a set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement |
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responding strategically
downsizing |
-the planned emilination of jobs ("head counting"
-layoffs |
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responding strategically
outsourcing |
contracting outside the organization to have work done that formerly was done by internal employees
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responding strategically
offshoring (global sourcing) |
the business practice of sending jobs to other countries
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2/7 competing, staffing, and recruiting globally
globalization |
-approximately 70 to 85 percent of the U.S. economy is affected by international competition
About 10 percent of what Americans produce every year, dollar-wise, is sold abroad -Impact of Globalization “Anything, anytime, anywhere” markets Partnerships with foreign firms Lower trade and tariff barriers |
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3/7 Setting and Achieving Corporate Social Responsibility and Sustainability Goals
-Corporate Social Responsibility (CSR) |
-The responsibility of the firm to act in the best interests of the people and communities affected by its activities.
-Sustainability is closely related to corporate social responsibility. Sustainability refers to a company’s ability to produce a good or service without damaging the environment or depleting a resource |
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4/7 advancing HRM with technology
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-Human Resources Information System (HRIS) - a computerized system that provides current and accurate data for purposes of control and decision-making
-It has become a potent weapon for lowering administrative costs, increasing productivity, speeding up response times, improving decision-making, and tracking a company’s talent -Benefits: -Automation of routine tasks, lower administrative costs, increased productivity and response times -Self-service access to information and training for managers and employees -Online recruiting, screening, and pretesting of applicants -Training tracking, and selecting employees based on their record of skills and abilities |
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5/7 Containing Costs While Retaining Top Talent and Maximizing Productivity
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-Organizations take many approaches to lowering labor-related costs, including…
-Carefully managing employee’s benefits -Downsizing, outsourcing, offshoring -Layoffs: |
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hidden cost of layoffs
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-Severance and rehiring costs
-Accrued vacation and sick day payouts -Pension and benefits payoffs -Potential lawsuits from aggrieved workers -Loss of institutional memory and trust in management -Lack of staffers when the economy rebounds -Survivors who are risk-averse, paranoid, and political |
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benefits of a no layoff policy
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-A fiercely loyal, more productive workforce
-Higher customer satisfaction -Readiness to snap back with the economy -A recruiting edge -Workers who aren’t afraid to innovate, knowing their jobs are safe |
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6/7 Responding to the Demographic and Diversity Challenges to Workforce
demographic changes |
-More diverse workforce
-Ethnic and cultural challenges -Aging workforce -More educated workforce -Necessity of basic skills training |
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managing diversity
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-Being aware of characteristics common to employees, while also managing employees as individuals
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7/7 Adapting to Educational and Cultural Shifts Affecting the Workforce
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-Cultural and Societal Changes Affecting the Workforce
-Employee Rights -Privacy Concerns of Employment -Changing Attitudes toward Work -Balancing Work and Family |
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Discuss the primary social issues in managing people.
ch1 employee concerns |
-Job Security
-Educational Levels -Healthcare Issues -Employee Rights -Age and Generational Work Issues -Privacy Issues -Retirement Issues -Work Attitudes -Gender Issues -Family Concerns |
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Demonstrate basic knowledge of the workings of a labor market by:
a. Graphing supply and demand ch2 |
look at graph in study guide
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B) Identifying and interpreting the meaning of equilibrium
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-The point of intersection between these two labor curves determines the equilibrium wage and employment level
`-Only at the equilibrium wage are both suppliers and demanders able to exchange the quantity of labor they desire |
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C) Identifying the difference between a shift in the curve and a movement along the
curve as well as what factors cause a shift. increase in labor productivity |
-Increase in Productivity → Shift Right
-Decrease in Productivity → Shift Left |
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increase in demand for firms product
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-Higher Demand → Shift Right
-Lower Demand → Shift Left |
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Identify factors that would cause the labor supply and labor demand curves to shift and
how those factors affect the equilibrium level of wages and employment. available labor |
-If new workers enter the labor force, it will shift the labor supply curve to the right
-If there are fewer workers in the labor force, it will cause the labor supply curve to shift to the left |
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worker preferences
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-If people become more willing to work more hours at a given wage, the labor supply curve will shift to the right
-If they become willing to work fewer hours at a given wage, the labor supply curve will shift to the left |
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Non-wage income
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-Increases in income from sources other than employment can cause the labor supply curve to shift to the left
-A decrease in nonwage income might push a person back into the labor force, thus shifting the labor supply curve to the right |
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amenities
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-Amenities associated with a job make for a more desirable work atmosphere, ceteris paribus
-These amenities would cause an increase, or rightward shift, in the supply of labor -If job conditions deteriorate, it would lead to a reduction, or leftward shift, in the labor supply curve |
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Describe the ways in which both government and culture can affect both the supply and
demand for labor, and analyze the impact on wages and employment. government regulations of the labor market |
-Minimum Wage
-Overtime Laws -Discrimination/Affirmative Action -OSHA -Immigration -Taxes and Subsidies -Governmental Spending -Government employees -Government infrastructure |
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The Effects of Society and Culture on the Labor Market
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-Women in the workforce
-Attitude toward education -Population growth -Globalization -Discrimination -Demand for labor is affected by anything that affects demand for the product being produced |
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Identify the various roles that available labor supply has on firm strategies (i.e. location
decisions, internal strategic planning, compensation, and benefit policies). Location decisions |
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internal strategic planning
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compensation
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benefit policies
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Discuss and be able to calculate the following: marginal product (of labor), marginal
revenue product, marginal cost, and optimal labor demand for a firm. Marginal product of labor |
the additional amount of output a firm gets when they hire one additional unit of labor.
P – the price of the firm’s product (constant) |
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marginal revenue product
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MRP (Marginal Revenue Product) – the dollar value of the MPL.
MRP = MPL * P |
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marginal cost
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MRC (Marginal Resource Cost) – the Wage Rate (W) – if we hire one additional unit of labor, the MRC is equal to that individual’s wage rate.
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optimal labor demand for a firm
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– The additional profit a firm gets when they hire one additional unit of labor.
MP = MRP – MRC - OR - MP = MRP – W * A firm will continue to hire as long as MRP is greater than or equal to W |
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Describe how and why the marginal product of labor diminishes with the continued
addition of labor input |
-The Marginal Product of Labor is the additional output from hiring each worker
-A firm will continue to hire as long as the MRP (the dollar value of the MPL) is greater than or equal to the wage cost -With each additional unit of labor, the firm gets close to the point where the MRP is greater than W, therefore, each additional unit of labor is worth less |
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Generate a graph of labor demand using several wage/quantity combinations.
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-The market demand curve for labor is downward-sloping, indicating a lower wage rate results in an increase in quantity of labor demanded
-The market labor supply curve is upward-sloping, indicating that higher wages cause the quantity of labor supplied to increase |
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Describe how changes in price, technology and decisions about how to organize a firm’s
human resources will influence these calculations and shift the demand for labor curve. |
-A shift in the demand curve for labor can be caused by increases in labor productivity, for example, from technological advances
-A shift in the demand curve for labor can be caused by changes in the output price of a good, for example, due to increased demand for the firm’s product |
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Describe the concept of “derived demand” as it applies to labor.
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-Derived Demand-demand for an input derived from consumer’s demand for the good or service produced with that input
-In other words, consumers do not demand labor to make goods or services, but rather they demand the goods and services created by that labor |
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Discuss the benefits and costs of unions to employers and employees.
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graph 6
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Describe trends in unions organizing in the US
decreases in union membership |
-A shift from traditional unionized industries (manufacturing, mining) to high technology industries (computers, pharmaceuticals)
-Growth in employment of part-time and temporary workers -Growth in small businesses, in which unionization is more costly and difficult to perform -Globalization of the workforce particularly among low wage employers |
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Globalization and technology change
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-Offshoring-work that was previously carried out in one country moved to another
-Most of the recent growth in U.S. companies comes from outside of the country -Employers need to pay more attention to the relevant stakeholders such as unions, employees, and communities in which they operate -Most job loss in America is not due to offshoring, but rather to technological changes |
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Identify economic conditions that facilitate success of unions
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-Why Employees Unionize:
-As a result of their economic needs (wages and benefits) -Dissatisfaction with managerial practices -To fulfill social and status needs -Social and leadership concerns |
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Describe the role of collective bargaining and its implications for people and
organizations. collective bargaining |
the process of negotiating a labor agreement, including the use of economic pressures by both parties
-Preparing for Negotiations -Gathering Bargaining Data -Develop Bargaining Strategies and Tactics -Negotiating the Labor Agreement |
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bargaining zone
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area within which the union and the employer are willing to concede when bargaining
-Good Faith Bargaining Requirements -Meetings to be held at reasonable times and places to discuss employment conditions -Proposals and counterproposals submitted by each party must be realistic and reasonable -Both parties must sign a written document of the agreement reached through negotiations |
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interest based bargaining
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-Problem-solving bargaining based on a win-win philosophy and the development of a positive long-term relationship
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National Labor Relations Act of 1935
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-Protects employee rights to organize and bargain collectively through representatives of their choice
-Created the National Labor Relations Board (NLRB) to govern labor relations in the U.S. -Holds secret ballot union representation elections -Prevents and remedies unfair labor practices -Section 7 of the Act guarantees employee rights: -To self-organization, to form, join, or assist labor organizations, to bargain collectively through freely chosen representatives -To engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection -To refrain from any or all such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment -Section 8 of the Wagner Act outlawed employer practices that deny employees their rights and benefits: -Interference with Section 7 rights -Domination of a union (company union) -Discrimination against union members -Arbitrary discharge of union members -Refusal to bargain with union |
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Taft-Hartley Act of 1947
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-Balances rights and duties of labor management in collective bargaining by defining unfair union practices
-Created the Federal Mediation and Conciliation Service (FMCS) to help resolve negotiating disputes -Unions are prohibited from: -Interfering with Section 7 rights -Interfering with representation elections -Influencing employers to discriminate with regards to union membership -Refusal to bargain collectively with employer -Interference with certified employee representative’s relationship with employer -Assessment of excessive initiation fees and dues on bargaining unit members -“Featherbedding” |
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Landrum-Griffin Act of 1959
End of chapter 2 |
-Bill of Rights of Union Members
-Safeguards union member rights and prevents racketeering and other unscrupulous practices by employers and union officers -Union members have the right to: -Nominate candidates for union office -Vote in union elections for referendums -Attend union meetings -Participate in union meetings and vote on union business -Examine union accounts and records -Bring suit against union officers as necessary to protect union funds |
