2011 certification prep workshop

WELCOMEHR FLORIDA 2011

PHR/SPHR CERTIFICATION PREP COURSE

Sponsored by:

August 28, 2011

SESSION AGENDA 8:00 – 8:15 a.m. Welcome and About the Exam Don Works

8:15 – 10:00 a.m. Total Rewards Don Works

10:00 – 10:15 a.m. Break Time

10:15 – 11:20 a.m. Workforce Planning Don Works

11:20 – 12:00 p.m. Risk Management Don Works

12:00 – 1:00 p.m. Lunch Time

1:00 – 2:30 p.m. Employee & Labor Relations Linda Bailey

2:30 – 3:00 p.m. Human Resources Development Linda Bailey

3:00 – 3:15 p.m. Break

3:15 – 4:50 p.m. Human Resource Development & Strategic Management

Linda Bailey

4:50 – 5:00 p.m. Wrap Up/Questions Linda Bailey

THE EXAM: EVERYTHING YOU NEED TO

KNOW• Where Do the Questions Come From?• Cognitive Levels• The Dilemma: PHR or SPHR?• The Biggest Pieces• Exam Questions: The 225 Breakdown• Scoring the Test: Raw, Scaled & Equating• What to Expect• Test Taking Tips• Sample Test Question• Exam and Deadlines

HRCI Certification Handbook

HR Certification Institute1800 Duke Street · Alexandria, Virginia 22314

US Toll Free +1.866.898.4724HR Certification Institute is an affiliate of the Society for Human Resource Management

www.hrci.org

WHERE DO THE QUESTIONS COME

FROM?• Teams of Certified HR Professionals

With Special Training in Item Development

• Every Question Passes 3 Levels of Review

• Every Question Pre-tested Before Being Used to Score the Exam

THE DILEMMA:PHR/SPHR?

• Responsibility• Reporting• Breadth/Scope• Impact• Business Knowledge• Credibility

THE BIGGEST PIECESPHR Emphasis:

Workforce Planning & Employment 26%

Employee & Labor Relations 22%

48%

SPHR Emphasis:Strategic Management 29%Employee & Labor Relations 18%

47%

EXAM QUESTIONS: THE 225 BREAKDOWNFunctional Area PHR # Questions SPHR # QuestionsStrategic Management 12% 27 29% 65

Workforce Planning 26% 59 17% 38

HRDevelopment

17% 38 17% 38

Total Rewards 16% 36 12% 27

Employee &Labor Relations

22% 49 18% 41

Risk Management 7% 16 7% 16

SCORING THE TESTSRAW, SCALED & EQUATING

• Raw Scores– Number answered correctly (129-144)

• Scaled Scores– Scores 100 – 700 (Minimum 500 is passing)

• Equating the Scores– No two tests the same– Ensures comparable proficiency– Adjusts minimum raw score

• PHR – 67% to 56% pass• SPHR – 60% to 50% pass

WHAT TO EXPECT• No Trick Questions• No Trivia Questions• No Dates• No All of the Above• No None of the Above• Know Acronyms

TEST TAKING TIPS• Relax - Don’t Study the Night

Before• Won’t Know All of the Answers• Arrive on Time• Dress Comfortably - Bring

Sweater• No Extra Credit for Finishing

Early• 1.07 Per Question

TEST TAKING TIPS (cont)

The Basics:Read each question carefully!

• The Answer is NOT always “C”• Read All of the Choices• Answer All Questions• First Chosen Answers are Usually Correct

TEST TAKING TIPS (cont)

• Fine Distinctions Between Correct and Nearly Correct Statements

Process of EliminationEcho OptionsNegativesAbsolutesQualifiers

AB

C

The owner of a growing authentic Japanese Steak house is looking to hire his 10th employee. The amount of applicants overwhelm him. In frustration, the owner suddenly announces that only Japanese applicants may apply. One Caucasian applicant remains. The applicant states that the owner has acted illegally and that he is going to report the owner to the EEOC. The owner _________

A. Has nothing to fear from this EEOC complaint

B. Should just hire the applicant to keep him quiet

C. Must go ahead and interview this applicant

D. Should interview the applicant and make a contingent offer

Sample Test Question

EXAM & DEADLINES

Exam Window Reg. Deadline Date Late Deadline Date

PHR/SPHRDec. 1, 2011 - January

31, 2012Oct. 7, 2011 Nov. 11, 2011

GPHR, PHR-CA, SPHR-CA

Dec. 1 - Dec. 31, 2011 Oct. 7, 2011 Nov. 11, 2011

TOTAL REWARDS

Presented byDon C. Works, III, JD, SPHR

Jackson Lewis LLPOrlando

407-246-8433worksd@jacksonlewis.com

LAWS GOVERNING COMPENSATION

• Davis-Bacon Act, 1931• Copeland "Anti-Kickback" Act, 1934• Walsh-Healey Act, 1936• Fair Labor Standards Act (FLSA), 1938• Equal Pay (EPA), 1963

FLSA• Establishes Minimum Wage• Requires Overtime Pay - 1.5 hours over 40• Establishes exemptions from overtime &

minimum wage (“exempt” v. “non-exempt”)• Limits employment of child labor

FLSA EXEMPTIONSExempt Employees Must Generally Meet Two Tests Requirements:– Paid on a Salary Basis, With a Salary of At

Least $455/week and Without Improper Deductions

– Perform Exempt Duties

EXECUTIVE EXEMPTION• Employee’s Primary Duty Must be the

Management of an Enterprise or a Department or Subdivision and:

– Direct the Work of at Least Two or More FTE’s

(or Equivalent PTE’s)

– Authority to Hire, Fire or Make Recommendations

– Recommendations are Given Particular Weight

ADMINISTRATIVE EXEMPTION• Primary Duty – Office or Nonmanual

Work Directly Related to the Management or General Business Operations of the Employer or the Employer’s Customers

• Requires Exercise of Discretion and Independent Judgment in

Matters of Significance

PROFESSIONAL EXEMPTIONS

1.Learned Professionals:

• Requires Advanced Knowledge Acquired by Prolonged Instruction in a Field of Science or Learning

• Intellectual in Nature• Requires Exercise of Discretion and Judgment

PROFESSIONAL EXEMPTIONS2. Creative Professionals:

• Have a Primary Duty Performing Work That Requires Invention, Imagination, Originality, or Talent

• Perform in a Recognized Field of Creative or Artistic Endeavor

HIGHLY COMPENSATED EMPLOYEE EXEMPTION

A Highly Compensated Employee Must:• Minimum Compensation of at least

$100,000.00 ($455/week of which must be paid on a salary basis)

• Perform One of the Job Duties of an Exempt Administrative, Executive, or Professional

COMPUTER RELATED OCCUPATIONS

• Salary of $455 Per Week or $27.63 Per Hour• Performs higher level computer work

involving design, analysis and implementation of systems

• “Help desk” positions not exempt

OUTSIDE SALES EXEMPTIONAn Employee Must:• Have a Primary Duty Involving

Making Sales or Obtaining Orders and Contracts

• Be Customarily and Regularly Engaged Away From the Employer’s Place of Business

• Note: No salary requirement

PERMISSIBLE DEDUCTIONS FROM SALARY• Full day absences due to sickness or disability if deductions under

a bona fide plan, policy or practice of providing wage replacement benefits for these types of absences

• Good faith full day disciplinary suspensions for infractions of written workplace conduct rules

• First or last week of employment, as long as the employee is paid a proportionate share of salary for time actually worked

• Penalties imposed in good faith for violating safety rules of “major significance”

• FMLA leave including both partial and full day absences

• To offset amounts received as payment for jury fees, witness fees or military pay

SAFE HARBOR“Salary Basis” will not be destroyed if:

– Employer Has a Clearly Communicated Policy Prohibiting Improper Pay Deductions

– Employees Are Reimbursed for Any Improper Deductions

– Employer Makes a Good-Faith Effort to Comply in the Future

FLSA MINIMUM WAGE REQUIREMENTS

• $7.25 July 24, 2009• $2.13 Per Hour Tip Credit Unchanged

– Cash Wage Plus Tips = Minimum Wage

FLSA BASIC OVERTIME REQUIREMENTS

• Sets Rate of Overtime Pay

(1.5 X Regular Pay)• Requires Overtime for “Hours Worked”• Workweek Is Any Fixed, Recurring

Period of 168 Hours (7 Days X 24 Hours)

COMPENSATORY TIME• Overtime Usually Must Be Paid in Cash• Public-Sector Employers May Grant

Compensatory Time Off• Private-Sector Employers May Not Pay

With “Comp” Time

PORTAL-TO-PORTAL ACT • Defines the Beginning and End of the Workday • Provides Guidelines On:

– On-call/standby Time– Preparatory/Concluding Activities– Waiting Time– Meals and Breaks– Travel Time– Training Time

EQUAL PAY ACT

Equal Pay forEqual Work:

Effort

Responsibility Skills

Workingconditions

DIRECT VERSUS INDIRECT COMPENSATION

• Base Pay• Differential Pay• Incentive Pay• Selected Employees• Cash Recognition

• Legally Required Benefits

• Income Replacement• STD/LTD• Medical• Deferred Pay• Pay for Time Not

Worked/Unpaid Leave

ECONOMIC FACTORS THAT IMPACT COMPENSATION SYSTEM

• Inflation – COLA’s• Salary Compression• Interest Rates• Foreign Competition• Wage/Price Spiral• Economic Growth• Productivity/Labor Market Trends

COMPENSATION SYSTEM OBJECTIVES

• Attract• Motivate• Retain• Competitive• Equitable

MEASURES OF PAY EQUITYInternal• Equal Work = Equal

Pay• Comparable Worth

External• Match, Lead, Lag• Industry• Occupation• Geography

COMPA-RATIOSDivide Employee Pay Level by the Midpoint

Example:

Pay Range $10 - $15/Hour

Midpoint $12.50

Employee Salary $11.00

Compa-Ratio .88%

LEAD VERSUS LAG STRATEGIES

Compa-Ratios - Indicators How Actual Wages

Lead, Lag or Match Market

Compa-Ratio Below 1.0 Means Employee Wages are Less Than Midpoint (Lag)

Compa-Ratio Above 1.0 Means Wages Exceed the Midpoint (Lead)

JOB EVALUATION

• Used to Determine Relative Worth Of Jobs• Derived from Job Analysis• Non-Quantitative/Quantitative

JOB EVALUATION METHODOLOGY

• Job Ranking• Paired Comparison• Point-Factor • Factor Comparison• Market Based

SELECTED EMPLOYEESExecutive Pay

Direct Sales Profess’l

Outside Directors Int’l

Base SalaryAnnual IncentivesPerksParachutesIncentivesStock Plans

StraightSalary or Commission

Combo

Dual Ladder

Maturity Curves

Base PayRetainerIncentivesBenefitsPerksStock OptionsRetirement

Equity-Home & HostCountryLocal CustomsLegal

GLOBAL COMPENSATION APPROACHES

• Home Leaves• Travel Allowances• Educational Allowances for Children• Tax Equalization• COLA’s• Housing & Utilities Allowance• Relocation & Moving • Foreign Service & Hardship Premiums

GLOBAL COMPENSATION APPROACHES

• Balance Sheet• Global Market• Tax Equalization Plan

INDIRECT COMPENSATION• Designed to:

– Reward Continued Employment– Retain Good Employees– Improve Productivity, Work Quality,

Competitiveness– Protect Employees’ Physical/Financial Well-Being

• Affordable for Employers• Attractive to Employees

BENEFIT NEEDS ASSESSMENT

Conduct Gap Analysis

Review Organizational Strategy

Review Compensation Philosophy

Review Employee NeedsReview Current Benefits

GAP ANALYSIS Revise Benefits That Are Not Meeting

Employee or Organizational Needs

LEGALLY MANDATED BENEFITS

• Social Security/Medicare• Unemployment Insurance• Workers’ Compensation• COBRA• FMLA

EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA)

• Applies to Retirement Plans, Medical Plans, Group Life Insurance, Long Term

Disabilities• Basic Standards must be Met for Benefit Programs to Maintain their Tax-Favored

Status• Designed to Protect Employees in Private Sector

ERISA (continued)

Two minimum options for vesting:

1. Cliff Vesting

2. Graded

Consolidated Omnibus BudgetReconciliation Act (COBRA)

• Employers Who Provide Health Care and

Employ More Than 20 People Must Provide Continuation Benefits

• Exception: Employment Terminated Due to Gross Misconduct

COBRA (continued)Four Notices Employers Must Provide:

1. General Notice

2. Election Notice

3. Notice of Unavailability

of Continuation Coverage

4. Notice of Termination of Continuation

FAMILY AND MEDICAL LEAVE ACT (FMLA)• Provides 12 Weeks of Unpaid Leave for: Serious Health

Condition of Employee, Spouse, Parent or Child; Birth, Adoption or Placement & To Care for Child; A Qualifying Exigency; Being the Spouse, Child, Parent or Next of Kin of a Covered Service Member with a Serious Injury or Illness.

• Covered Employers - 50+ Employees• Eligible Employees – 12 Months/1,250 Hours at Worksite

with 50 or more employees within 75 miles a. Health Benefit Continuation b. Reinstatement Rights c. Intermittent Leave (right to transfer to accommodate)

Uniformed Services Employment & Reemployment Rights Act “USERRA”

Provides protected leave for up to 5 years of military service

Guarantees reinstatement to job individual would have held but for leave (escalator principle)

Must permit continuation of health care coverage for up to 24 months (can require payment of up to 102% of premiums)

OLDER WORKERS BENEFITPROTECTION ACT

(OWBPA) 1990• Covers Compensation, Terms, Conditions and

Privileges Provided Under Employee Benefit Plans• Must Be Given 21 or 45 Days to Consider Any Agreement Under ADEA• Group Terminations or Retirement Programs -Provide 7

Days to Revoke Agreement After Signing • Eligible Employees Must Be Provided With Certain Demographic Information As a Part of Group Term Release or ADEA Claims

Health Insurance Portability &Accountability Act (HIPAA)

• Limits Exclusion for Preexisting Conditions• Ensures Availability of Coverage• Guarantees Renewability• Allows Employees to Change Jobs Without Concern of Losing Coverage• Restricts "Actively at Work" Requirements to Health Plan Eligibility• Established Anti-discrimination Rules for Plan Participants

DEFINED BENEFIT PLANSFlat-Dollar Formula

Cash Balance Plan

Career-Average Formula Final-Pay Formula

• Benefit Amount - Based on a Formula

• Employer Funded

• Employer Bears the Risk

• Insured by the PBGC

DEFINED CONTRIBUTION PLANSProfit-Sharing Plans

Money Purchase Plans

ESOPs and 401 (k) Plans Thrift Plans

• Employees and Employers Pay a Specific Amount Per Person Into the Fund

• Fund Performance Determines Benefits

CASH BALANCE PLAN• Type of Defined Benefit

Plan• Defines Benefit in Terms

of Stated Account Balance

• Employers Assume Investment Risks and Rewards

• Is Portable

• At Retirement Employees Receive:– Lifetime Annuity– Lump Sum

NONQUALIFIED DEFERREDPLANS

• Provide Additional Benefits to Key Executives • Employees Defer Reporting Income; Not

Subject to the Limits Placed on Qualified Plans

• Employer Contributions Are Not Deductible • Funds Are not protected by ERISA

HEALTH-CARE PLANS• Indemnity (Fee-for-service) Plans

– Full-choice Plan– Employees Can Go to Any Qualified Physician– Fees Are Generated When Services Are Used

• Managed Care Plans– Prepaid Health-care Plans– Physician Is Paid Per Capita (Per Head) Rather Than

for Actual Treatment Provided– Members Enroll and Pay a Set Monthly or Annual Fee

OTHER HEALTH CARE OPTIONS

• Dental Plans• Vision Care Plans• Prescription Drug Plans• Employee Assistance

Programs• Alternative health care

INCOME REPLACEMENTPROTECTION

Sick Leave

Long-Term

Disability

Short-Term Disability

BENEFITS &ORGANIZATIONAL LIFE CYCLE

Introduction Growth Maturity Decline

Benefits Basic Moderate,Some ExecPerks

Comprehensive, More Exec Perks

Limit Benefits, Exec Perks Frozen

WORKFORCE PLANNING

Presented byDon C. Works, III, JD, SPHR

Jackson Lewis LLPOrlando

407-246-8433worksd@jacksonlewis.com

EQUAL EMPLOYMENT OPPORTUNITY

Decisions Must Be

Job and Business Related• Hiring• Work Assignments• Compensation• Promotions• Terminations

PURPOSE OF EQUAL EMPLOYMENT OPPORTUNITY

INITIATIVES• Prevent Employee Discrimination In

The Workplace• Take Remedial Action To Offset Past

Employee Discrimination

TWO TYPES OF DISCRIMINATIONDisparate Treatment – Intentional Act

• Direct Discrimination • Unequal Treatment • Decision Based on

Protected Characteristic • Prejudiced Actions • Different Standards For

Different Groups

Disparate Impact – Unintended or Intentional

• Indirect Discrimination • Unequal Consequences Or

Results • Decision Not Based on

Protected Characteristic • Unintentional Discrimination • Neutral Actions • Same Standards But

Different Consequences

ADVERSE IMPACT• Occurs When There Is A Substantially

Different Rate Of Selection In Hiring, Promotion, or Other Employment Decisions Which Works To The Disadvantage Of Members Of Protected Groups

• 4/5ths Rule – success rate of protected group less than 80% of other group

2007 EEO-1 REPORT OVERHAUL

• "Two or more races, not Hispanic or Latino";

• "Asians, not Hispanic or Latino"; • "Native Hawaiian or Other Pacific

Islander, not Hispanic or Latino"; • "Asian and Pacific Islanders" Category

Deleted

EEO-1 REPORT OVERHAUL•"Officials and Managers" Divided Into Two Levels Based on Responsibility and Influence Within the Organization: (1) “Executive/Senior Level Officials and Managers” (2) “First/Mid-Level Official and Managers”•Non-Managerial Business and Financial Occupations Moved From the "Officials and Managers" Category to the "Professionals" Category

Title VII of the Civil Rights Act• Prohibits discrimination against

protected classes.• Makes it unlawful to deny career

advancements to protected classes.• Prohibits discrimination because of

pregnancy, childbirth, or related conditions.

Title VII of the Civil Rights Act• Provides equal opportunity for

training.• Prohibits sexual harassment.• Prohibits compensation discrimination.

Age Discrimination in Employment Act

• Age 40 and over

• Older Workers Benefit Protection Act

• Release language

• Group versus individual releases

Americans with Disabilities Act (ADA)

• Protects qualified individuals with a disability

• Prohibits medical exams or inquiries about a disability, except in certain situations

• Requires reasonable accommodation that enables employees to perform essential functions as long as there is no undue hardship

Who Is Protected By ADA?• Individual with a physical/mental

impairment that substantially limits a major life activity– Record of impairment– Regarded as having an impairment– Associated with a disabled person

• Can perform the essential functions of the job with or without reasonable accommodation

Other Legislation Which Impacts Workforce Planning

• Pregnancy Discrimination Act• Immigration Reform & Control Act• Rehabilitation Act (contractors - $2,500+)• Worker Adjustment & Retraining

Notification Act (“WARN”)• EPPA• Fair Credit Reporting Act

FORCES WHICH IMPACT PLANNING

• Organization’s Direction• Internal Labor• External Labor• Business Change

JAC FITZ-ENZ – P.E.R.M. MODEL

1. Projections

2. Evaluate - Key Group Review

3. Recruitment Plan

4. Measurement - ROI

P.E.R.M. ROI – INDICATORS

• Planning - % of Jobs Filled Internally• Evaluation – Past Source

Performance & Tenure• Recruitment – Future Source Cost,

Time, Quality• Measurement – Business KPI’s

Affected

ANALYSIS OF RECRUITMENT SOURCESSourcing Media

• Advertising• Agencies• Referrals• Events

Selection Methods

• Screening• Assessment• Interviews• Testing

INCREASING INTERVIEWING ACCURACY• All Voters Must Know Position• Delay Yes/No Decision• Multi-Factor Assessment• Give Each Interviewer 2-3 Traits to Assess• Panel Interviews• Formal Debriefing

~ Lou Adler

WORKFORCE PLANNING METRICS

• Cost Per Hire

• Time to Fill

• Yield Ratios – Used to evaluate recruiting sources

• Adverse Impact

JOB ANALYSIS DEFINED• Systematic study of a job to determine

qualifications, responsibilities, conditions and relationship to other jobs

• Identify Tasks, Duties & Responsibilities• Evaluate KSAs (Knowledge, Skills and

Abilities)

ORGANIZATIONAL LEVELOrganizational Development

• Function & Responsibilities• Development of Organizational

Divisions

ORGANIZATIONAL LEVELClassification & Compensation

• Creation of Job Families • Pay Equity

JOB LEVELRecruitment & Selection

• Job Description• Job Specifications - KSAs

JOB LEVELTraining & Performance Management

• Job Relevant Goals• Standards of Performance

DISSECTING TASKS• Job Category• Responsibility• Task Statement

What Makes a Good Task Statement?

TASK STATEMENT• Behaviorally Based• Action• Target• How• Why

TASK STATEMENTAnalyzes jobs using various methodologies within federal, local, and professional standards in efforts to define levels of responsibility & specific tasks; as well as the level of specific KSAs, necessary for successful performance.

KSAs vs. Competencies• Knowledge – Specific• Skill – Degree of Performance• Ability – Mental or Physical Capacity

Competencies: Groupings of KSAs that

Relate to a Particular Purpose or Function

METHODOLOGY

5 PHASES OF JOB ANALYSIS

1. Identification of Function & Responsibilities2. Task Statement Data Collection3. Task Statement Development & Refinement4. KSA Development & Refinement5. Documentation Report

JOB ANALYSIS METHODOLOGY CLOSE UPPHASE I – ORGANIZATIONAL LEVEL

• Purpose & Responsibilities of Job• Place in Organizational Hierarchy• Location & Work Environment

JOB ANALYSIS METHODOLOGY CLOSE UP

PHASE II – INITIAL TASK STATEMENT

• Collect Existing Task Statement Information

• Develop List of Tasks & Responsibilities

– Strategic Tools: Surveys, Questionnaires,

Round Tables, Workplace Shadowing

Job Analysis MethodologyCLOSE UP

PHASE III – TASK DEVELOPMENT &

REFINEMENT

• Consolidate & Refine• Frequency & Duration• Importance Levels

Job Analysis MethodologyCLOSE UP

PHASE IV – KSA DEVELOPMENT &

REFINEMENT

• Determine KSAs Needed to Effectively Perform Each Task

• Minimum Qualifications• Competency Model Development

Job Analysis MethodologyCLOSE UP

PHASE V – DOCUMENTATION REPORT

• Statistically Analyze All Task & KSA Data• Create Written Job Descriptions & Specs• Determine Classification & Compensation• Develop Plans for Selection & Performance

Management• Prepare Report Documenting Methodology &

Results

USES OF JOB ANALYSIS• Recruiting• Compensation• Career Paths• Succession

Planning• Training• Organizational

Design

• Performance Standards

• Performance Evaluations

• Time Management

• Compliance• AAP• Legal Defense

JOB DESIGN• Rational Approach – Frederick Taylor

– work should be arranged so that employees can be efficient & output maximized

• Job Enrichment – Frederick Hertzberg – design work for employees’ personal enrichment

RELIABILITY & VALIDITY

• Reliability is the Ability of an

Instrument to Measure Consistently and with Relative Absence of Error

RELIABILITY & VALIDITY• Validity is the Ability of an Instrument to

Measure What it is Intended to Measure

• Validation Answers Two Questions:

1.What does the instrument measure?

2.How well does the instrument measure it?

RELIABILITY & VALIDITY• A Reliable Item is Consistent

• May Not Be Valid

RELIABILITY & VALIDITYReliability Can Be Measured By :

• Parallel Forms – uses two forms with different items – scores correlated for each individual

• Test/Retest – measures degree to which scores are the same over time

• Internal Consistency – equivalent parts of test taken separately and results correlated

RELIABILITY & VALIDITY• Content Validity – Simplest Job Analysis Key

• Construct Validity – Most Complex Measures Theoretical Construct or Trait

• Criterion-Related Validity – (Preferred) Trait of Work Behavior that is Predicted by a Test

CRITERION RELATED VALIDITY• Concurrent

Validity – Test is Given to

Current Employees

– Scores Correlated

with Performance

Ratings

• Predictive Validity

– Before the Fact Measure

– Test Results Correlated

with Subsequent Job

Performance Usually

After 12 Months

(Preferred by EEOC)

RISK MANAGEMENT

Presented byDon C. Works, III, JD, SPHR

Jackson Lewis LLPOrlando

407-246-8433worksd@jacksonlewis.com

Definition• Risk Management is the use of

insurance and other strategies in an

effort to prevent or minimize an

organization's exposure to liability in the

event a loss or injury occurs.

Categories of Operational Risk• Personnel Risk

• Physical Assets

• Technology

• Relationships

• External/Regulatory

OSHA General Duty Clause

Each employee has the right to “a place of

employment which is free from recognized

hazards that are causing or are likely to

cause death or serious physical harm.”

Employee Responsibilities & Rights• Comply with rules• Right to safety & health• Right to request inspection• Right to file complaint• Right to be informed of workplace hazards• Right to request action to correct hazards• Right to file a discrimination/retaliation complaint• Right to receive training

Best Known OSHA StandardHazard Communication (also known as

the Employee Right-to-Know Law) It requires:

• An inventory of hazardous chemicals • An evaluation of chemical hazards• Communication / Training• MSDS

OSHA Inspection Priorities• Imminent danger• Catastrophes & fatal accidents• Employee complaints• High-hazard industries• Follow-up inspections

Are they in order of priority?

Purpose of Safety Programs• Prevent work-related injuries, accidents

or incidents

Definitions:– Incident – deviation from any acceptable

standard– Hazard – incident without adequate

controls applied

Classification of Incidents

Unsafe Acts• Failing to use protective

equipment• Removing safety devices• Using equipment improperly• Dressing improperly• Operating equipment at

unsafe speeds• Performing unauthorized

procedures

Unsafe Conditions• Defective equipment• Hazardous process• Noise, heat, dust• Fumes, chemicals• Poor ventilation• Improper lighting• Unsafe floor surfaces• Unsafe stacking, storing• Inadequate personal

protection equipment

Accident InvestigationPurpose of investigations?

Most important result of investigations?

Priorities at the scene?

Health• Health Hazards

– Infectious Diseases– Environmental Health Hazards

• Fetal Protection Policies

• Employee Assistance Programs– Can you require EAP treatment?

• Employee Wellness & Fitness Programs• Chemical Dependency

Security• Fire• Industrial Sabotage• Trespassing• Employee Theft • Natural Disasters• Theft/Sabotage of Classified Information• Violence • Terrorism

Theft and Fraud• 30% of employees admit stealing• 40% hits companies under 100 workers• Technology has made it easier• Goes up in a down economy• Why some organizations make

employees take 1 – 2 weeks off

Security Risk Analysis• Vulnerabilities are considered first

– Specific or generic• Probability of occurrence

– Virtually certain– Highly probable– Moderately probable– Improbable

• Assessment of impact or cost– Level 1 (fatal to org.), 2, 3, or 4 (negligible)

Business Continuity & Recovery• Disaster Recovery Plan

– procedures to recover lost data in the event of a disaster

• Emergency Response/Preparedness Plan– describes the action to be taken by all

personnel to respond to natural or human disasters

Can the Workplace Cause Stress & Violence?

• Harassment• Poor management style• Pressure for increased productivity\

unrealistic job expectations• Mis-handled job terminations• Untrained supervisors• Lack of zero tolerance for inappropriate

behavior

Workplace Privacy• Employer Privacy Concerns

– Protection of Propriety Information• Identify what needs protecting• Get confidentiality & nondisclosure agreements

– Technology Security Risks• Employee Privacy Concerns

– Identify Theft– Monitoring employees

Employee & Labor Relations

PHR 22%

SPHR 18%

Impact of the Law on Employee Relations

• Employee Rights under the NLRA– Can organize themselves– Can discuss their salaries

• EEO Laws• Common Law

– Employment-at-Will• Public policy exceptions• Implied contract

Impact of the Law on Employee Relations (con’t)

• Common Law Tort Claims– Negligent foursome– Defamation– Fraudulent misrepresentation– Others

• Contract Issues– Oral contracts– Non-compete agreements– Others

Characteristics of Union-Free Organizations• Fair and consistent treatment• Access to career opportunities• Feedback mechanisms• Communication programs• Problem-solving procedures• Trained supervisors/ managers• Rewards and recognition

Employee Involvement Strategies

• Job Design• Alternative Work Schedules• Teams• Employee Suggestion Systems• Employee Surveys• Focus Groups

Problem-Solving Procedures

• Discipline Process• Alternative Dispute Resolution (ADR)

– Prevents escalation of issues– Private forum– Cost-effective– An umbrella term for over 23 options– Must have basic elements of due process– Becomes a condition of employment

The MOST beneficial outcome of an effective

employee discipline process is:

a. A structured method for addressing substandard performance.

b. A productive workforce with high levels of personal accountability

c. A reduction of legal challenges to termination decisions.

d. Workforce compliance with rules and performance standards.

Labor Relations Legislation

• National Labor Relations Act (NLRA)– Pro-union

• Labor-Management Relations Act (LMRA)– Established balance of power– Union shops, right-to-work states

• Labor-Management Reporting and Disclosure Act (LMRDA)– Protect employees from corrupt unions

• Others

Labor Relations TermsRight-to-Work States States in which employees do not

have to join the union

Union Shop New employees have to join the union after completion of some probationary period

Agency Shop Employees do not have to join the union but have to pay the equivalent of union dues

Closed Shop Employees have to be union members in order to be hired (illegal except in construction)

Union Organizing

Initial contact may occur via:

• A union organizer contacting employees• Management contacting a union• Employees contacting a union

Union Organizing Tactics

• Inside organizing• Salting• Leafleting• Meetings• Home visits• Internet campaigns• Others

Picketing

• A form of free speech• Organizational picketing

– Induce employees to accept the union

• Recognitional picketing– Obtain the employer’s recognition of the union

• Informational picketing– Advise the public

Union Organizing Campaign

Petition forCertification

AuthorizationCards

ElectionCampaign

Election

Certification Of Results

(no union elected)

Certificationof Representative

(union elected)

Contract Negotiation

(collective bargaining)

Managements Rights in a Campaign

• Take the initiative• State an opinion• Point out the consequences of a strike• Communicate through supervisors & meetings• State that improvements are not dependent on

unionization• Point out the financial costs of a union

Employer Unfair Labor Practices (ULPs)

• Threaten• Interrogate• Promise• Spy• Known as “TIPS” or “SPIT”

– Don’t forget discrimination or retaliation

Union Organizing Campaign

• Authorization Cards– Primary method of employees showing interest– Union must have 30% of eligible employees sign to

proceed– Usually will not petition for an election until more than

one-half of employees sign– Are legal documents– Don’t touch the cards if presented

Petition for Certification

• Election is most traditional route toward union recognition – 90%– Authorization cards are primary example of

supporting evidence

• Consent Election (waive pre-election hearing)

• Directed Election• Voluntary recognition can occur, but happens

infrequently

NLRB Pre-Election Hearing

After determining validity of signatures and sufficient interest, the following are issues are decided:

• Voter eligibility• Determination of the bargaining unit

– Community of interests– Geography– Others

• Time, date or place of the election

Election

• Excelsior List– Names and addresses of all eligible

bargaining unit employees• Voter Eligibility

– On payroll for at least 3 payroll periods• Campaign

– Not within 24 hours of election

Election Process

• Looks like a general election• No campaigning around polling area• Both parties have representatives

– Either party may challenge voter eligibility• NLRB counts unchallenged ballots• Simple majority of voting employees wins

– 50% plus one person

Other Paths to Unionization• Employer volunteers recognition• Union convinces the employer to grant

recognition• Union convinces the employer to witness its

majority status– Counting the authorization cards

• ULPs

Unfair Labor Practices by the Employer• TIPS • Employee committees

– Electromation Case– Crown Cork and Seal Company Case– No negotiating or proposing

• Discouraging union membership illegally• Retaliation• Refusal to bargain

Unfair Labor Practices by the Union

• Restraints and coercion• Failure to provide fair representation• Discrimination against non-members• Excessive membership fees• Featherbedding• Refusal to bargain

Collective BargainingDefinition – the process by which management

and union representatives negotiate the employment conditions for a particular bargaining unit– Must be done in good faith

• Results in (ideally) – a collective bargaining agreement (CBA)

Collective Bargaining Subjects• Mandatory Subjects

– Issues identified specifically by labor laws or court decisions as subject to bargaining

– Wages, benefits, working conditions, overtime, etc.– Can only strike legally over mandatory subjects

• Permissive Subjects – Those that may be bargained but are not obligatory– Benefits for retirees, settlement of ULPs, etc.

• Illegal subjects– Those that are unlawful by statute

Collective Bargaining – Public Sector

Subjects are limited – why?• No mandatory subjects

– Public sector employees generally not permitted to strike

• No negotiation over wage rates• States may differ

Collective Bargaining Patterns• Pattern (parallel) Bargaining

– Union focuses on one employer and then negotiates similar contracts with competitors

– Auto industry• Coalition (multiple employer) Bargaining

– More than one employer negotiates with union– Trucking industry / coal mining industry

• Coordinated Bargaining– Employer bargains with two or unions simultaneously– Airline industry

Contract Clauses• Union security clauses

– Union shop– Agency shop

• Management rights• Bumping• Strikes and lockouts• Zipper clause

Enforcement Provisions

• Grievance procedure– Specific steps

• Weingarten rights• Arbitration

– Voluntary– Compulsory– Binding

Protected Concerted Activities• Lockout

– When management shuts down operations

• Strikes– A refusal by employees to work– Economic strikes (can replace strikers)– Unfair labor practices strikes (must reinstate strikers)– Wildcat strikes (unprotected)– Sympathy strikes

Protected Concerted Activities (con’t)

• Picketing– Informational– Common situs picketing– Consumer picketing

• Secondary Boycotts– Generally illegal– Exceptions:

• Ally doctrine• Double breasting• Others

Decertification• Very similar to election process• 30% of employees sign a petition• Majority of voting employees decide• Reasons:

– Inability to negotiate the first contract– Fair treatment of employees by employers– Poor job of unions providing service– Others

Questions?

Human Resource Development

PHR 17%

SPHR 17%

Legislation Affecting HRD• Copyright Act

– Public domain– Who owns copyrights?– Fair use

• U.S. Patent Act• Trademark Act• Title VII, Civil Rights Act• Age Discrimination in Employment Act• American with Disability Act

Functions of HRD• Provides employees with the skills to meet

current & future job demands• Aligns & links HRD learning objectives,

activities, and outcomes with organization’s goals & business needs

• Includes:– Organizational Development – Training & Development– Career Development

The Learning Organization• Learning is tied to business objectives • Change is embraced• Assumptions are always questioned• Learning is both a part of work & a part of

everyone's job description• Failures become opportunities to learn• Employees take responsibility for their own

learning

Knowledge Management

• The process of creating, acquiring, sharing and managing knowledge to augment individual & organizational performance

• Facilitates information exchange & transfer between employees

• Taps expertise of those leaving the organization

Global Issues for HRD• Organization change and knowledge

management become more complex• Western motivation models and leadership

theories may not apply• Demand for multilingual/multicultural training

is increasing• Cultural issues have a greater influence on

the selection of appropriate training

Competency Models

• A set of behaviors encompassing skills, knowledge, abilities, and personal attributes

• May be defined on an organizational or individual basis

• Core competencies differentiate an organization from its competition and provides for a competitive advantage

Organizational Development

• Enhances the effectiveness of an organization and the well-being of its members

• Occurs on both a large & small scale • Is change management• Primary roles for HR professionals:

– Serve as change agents– Conduct evaluations of OD interventions

OD Intervention Strategies• Interpersonal strategies

– Deal with work relationships

• Technological strategies – Focus on processes– Include job design & work flow analysis

• Structural strategies– Look at how the structure of the organization is

helping or hindering the organization

Quality Initiatives ISO 9000+ / Six Sigma / Lean

Quality Tools

• Process-flow analysis

• Control chart• Cause-and-effect

diagram

• Scatter diagram• Histogram• Check sheet• Pareto chart

Training & Development

• The ADDIE Model– Assessment or Analysis– Design– Development– Implementation– Evaluation

Types of Training Programs• Orientation and on-boarding• Skill development• Supervisory/managerial

– Defense in lawsuits

• Corporate responsibility• Other

Evaluation of Training Programs

• Don Kirkpatrick’s Model– Level One – did you like it?

• Reaction

– Level Two – did you learn anything?• Measuring learning

– Level Three – did anything change?• Measuring behavior

– Level Four – any affect on organization?• Measuring results

Learning and Motivation

• Assumptions about adult learning• Obstacles • Learning styles

– Auditory– Visual– Kinesthetic

• Learning levels• Intrinsic vs. extrinsic factors

Which of the following intrinsic factors affect an

employee’s willingness to do the job?

A. Opportunities for recognition and relationships with co-workers

B. Opportunities for personal growth and achievement

C. Working conditions and job security

D. Job environment and pay

Motivational Theories• Maslow’s Hierarchy of Needs• Herzberg's Motivation-Hygiene Theory• Vroom’s Expectancy Theory• Skinner’s Behavioral Reinforcement Theory• Equity Theory• McClelland’s Theory• Theory X and Theory Y

A first-line supervisor desires a management position.However, only college graduates seem to be promoted.The employee decides not to enroll in college since balancing work and school would be too hard. According to Vroom, the employee

a. Does not believe that a college degree will lead to a management job.

b. Does not want a management position badly enough.

c. Does not trust company management.

d. Lacks confidence in himself.

Career Development

• Career Planning– Focus on the individual

• Career Management– Focus on the organization

• Talent Management– Integration of HR processes that attract, develop &

retain employees that will meet current & future business needs

Career Development Programs• Employee self-assessment tools• Coaching• Mentoring• Continuing education• Committee/team participation• Apprenticeship• Job rotation, enlargement and enrichment• Fast-track programs

Career Development Programs (con’t)

• Internal mobility– Promotions– Relocations– Transfers– Demotions ???

• Dual ladder programs• Succession planning / replacement planning• Expatriation and repatriation

Leadership & Management

• Which is more important?

• Are leaders born or made?

• How are leaders developed?

• Can leadership be taught and learned?

• What are some obstacles to developing leaders?

Leadership Theories• Trait Theories • Behavioral Theories• Situation Leadership Theory

– Hersey-Blanchard’s Theory• Behavioral Leadership Theories

– Blake-Mouton’s Theory• Contingency Theories

– Fiedler’s Theory• Transformational/Transactional Leaders

Issues Affecting Leadership

• Gender differences

• Generational characteristics

• Cross-cultural differences

• Emotional intelligence

Performance Management

• Organizational values and goals– Provide a sense of purpose and priorities

• Performance standards– Set expectations – Identify and measure behaviors – Provide a direct relationship between job

description, job competencies and performance goals and objectives

– Point out important aspects of the job

Measurement & Feedback

• Performance appraisals– Provide feedback and counseling– Help in allocating rewards and opportunities– Help in determining employees’ aspirations and

planning developmental needs– Should be formal and informal– Should be conducted continuously, not as an

annual event– Should never be a surprise

Appraisal Methods

• Category rating methods– Graphic scale– Checklist– Forced choice

• Comparative methods– Ranking– Paired comparison– Forced distribution

Appraisal Methods (con’t)

• Narrative methods– Essay– Critical incidents– Field review

• Special methods– Management by objectives– Behaviorally anchored rating scale

Errors in Performance Appraisal• Halo/horn effect• Recency• Primacy• Bias• Strictness• Leniency• Central tendency• Contrast

Other Considerations in PerformanceManagement

• Legal ramifications

• The appraisal meeting

• Trained supervisors

• Documentation

Questions?

Strategic Management

PHR 12%

SPHR 29%

The Evolving Role of HRM

• HR Models– Advice / Service / Control– Strategic / Operational / Administrative

• Dimensions of Change– Workplace environment– Globalization

• Offshoring vs. outsourcing

– Ethics– Mergers & acquisitions

Management Functions by Fayol

• Planning• Organizing• Directing

• Controlling

Critical Management Skills

• Managing Projects– Interpersonal responsibilities– Informational responsibilities– Decisional responsibilities– Project planning tools

• Managing Change• Managing Third-Party Contractors• Managing Technology

Transformational change differs from change

initiatives in that it:

a. affects qualitative processes and their results.

b. challenges deeply held values, beliefs, and assumptions.

c. permits individual modification of some elements.

d. stems from market branding strategies.

Strategic Planning

Phase 1 Phase 2 Phase 3 Phase 4

StrategyFormulation

StrategyDevelopment

Strategy Implementation

Strategy Evaluation

Strategic Planning • Phase 1

– Mission– Vision – Values

• Phase 2– SWOT Analysis– Environment Scanning– Long Term Objectives– Strategy Identification

Strategic Planning (con’t)

• Phase 3– Short-term objectives– Action plans– Allocation of resources– Employee engagement

• Phase 4– Review strategies– Measure performance– Take corrective action

Which of the following activities best prepares HR to participate in the strategicplanning process?

A. Evaluating a new HRIS systemB. Restructuring HR’s recruiting systemC. Training line managers on interviewing

techniquesD. Reviewing the company’s key financial data

Internal Business Partners

• Finance and Accounting

• Marketing and Sales– The 4 P’s

• Operations

• Information Technology

• Employees– Human Capital vs. Human Resources

The Evolution of Organizations

Phase 1 Phase 2 Phase 3 Phase 4

Introduction Growth Maturity Decline

HR Focus:

StaffingStaffing Training

CompensationHR Planning

Training

Change ManagementOutplacementCross-training

Competitive Advantage Strategies

• Cost Leadership (operational excellence)

• Differentiation

• Focus

• Human Capital Advantage

• Customer Intimacy

Organizational Structures

• Functional• Divisional• Matrix

Most common? In which do “silos” frequently appear?

Other Organizational Structural Issues

• Span of Control• Centralization of decision-making

– Economies of scale• Decentralization of decision-making

– Quicker responses to problemsWhich do employees usually like better?

Environmental Scanning

• Demographic Factors• Economic Factors• Employment Factors• International Factors• Political Factors• Social Factors• Technological Factors

Measuring HR’s Contributions• Financial Measures

– Cost-benefit analysis– Break-even analysis

• Performance Measures– Balanced scorecard– Performance audits

• Other Indicators– Key organizational metrics– Turnover – Others

ResearchPrimary Research

• Experimental • Pilot projects• Surveys/questionnaires• Interviews (exit,

individual, and panel)• Focus groups• Direct observation• Testing

Secondary Research• Historical data• Benchmarking/best

practices• Purchased data• Professional journals,

books and other media• Secondhand reports

(e.g., grapevine reports)

Quantitative Analysis

• Charts and graphs• Measures of central tendency

– Mean– Mode– Median

• Measures of variation• Measures of association• Inferential statistics

Qualitative Analysis

• Individual or panel interviews• Surveys and questionnaires• Focus groups• SWOT analysis• Small groups

How valid and reliable is the data?• Reliability: the ability of an instrument to

measure consistently– Test/retest– Rater agreement– Others

• Validity: the ability of an instrument to measure what it is intended to measure– Content– Construct– Concurrent

Ethics

• Not synonymous with legality• Must begin at top of organization• HR plays important role• Organizational culture influences• Must walk the talk• Training is important

Ethical Issues• Privacy• Drug testing• Surveillance• Technology• Whistleblowing• Conflict of interests• Insider trading• Bribes, payoffs and kickbacks• Cultural clashes• Copyrights

Corporate Citizenship Programs

Phase 1 Phase 2 Phase 3 Phase 4

ReactiveCorporate

Philanthropy

StrategicContributions

MainstreamInvolvement

Corporate Accountability

Questions?