ENVIRONMENT The Environment External to the Organization Internal

ENVIRONMENT

The Environment External to the Organization Ø Internal (within) Ø

The External Environment Factors Influencing HR Decisions Ø Physical Ø Technology Ø Social Ø Political Ø Economic

Physical Climate Ø Terrain Ø Local Community Ø

Technological Productivity Impact Ø Quality Impact Ø Computers Ø Robots Ø Unemployment Outcomes Ø

Social Responsibility to Society Ø Responsibility to Employees Ø Court/Judicial Impact Ø

Political State-Local-Federal-International Ø Country Specific Ø

The Regulatory Model Global History: Problem Laws Agencies Management Response Rulings

Economic Growth Cycle Ø Inflation Impact Ø Unemployment Ø Compensation Ø Benefits/Social Conditions Ø Entrepreneurial Incentive Ø

The Internal Environment Physical (Health Issues) Ø Technological (Productivity/Stress) Ø Social (Attitude and Culture) Ø Political (Participation) Ø Economic (Profits) Ø

Demographic Changes Population Growth Ø Ethnic Background Ø Aging of Society Ø Gender Distribution Ø Rising Education Level Ø

Job Trends Increasing Service Sector Jobs Ø High Technology Jobs (education) Ø Telecommuting (work at home) Ø Informal Atmospheres (Dress Down/Up) Ø www. gilgordon. com www. dol. gov

Cultural Changes Employee Rights and Expectations Ø Privacy Concerns (Confidentiality) Ø Work Attitude Shifts (Freedom/Expectations) Ø Family Lifestyles (Balance: Leisure-Dual) Ø

Organizational Effectiveness Quality Improvement Ø Competitive Advantages Ø Employee Buy-in Ø Management Styles Ø Networking (Corporate Politics) Ø

Quality of Work Life Ø Job Design – (Enjoyment, Productive, Competitive) Ø Participation Management – (Teamwork, Involvement) Ø Supportive Organizational Culture

Participative Management Essential to QWL Ø Joint Union-Management Committees Ø Quality Circles Ø Voice in Decisions (Educated/Demanding) Ø

Supportive Organizational Culture Shared Philosophy Ø Common Values Ø – (Ethnics, Commitment, Belonging, Risk) Ø Realistic Expectations – (Rewards and Benefits) Ø Supportive Attitudes – (Embrace Change, Fight Change) Ø Intrapreneuring – (Creating Need ventures, Processes)

Elements of a Culture Business Environment (Common Activities/Goals) Ø Values (Success from Hard Work) Ø Heroes (Identifiable Leaders) Ø Rites and Rituals (Systematic Routines) Ø Cultural Network (Informal Communication) Ø

Employee Rights Issues Jobs Entitlement Ø Employment at Will Ø Whistle Blowing Ø Comparable Worth Ø Health/Benefits/ Off Ø Layoff Notifications Ø Time

Retraining Issues Technology Ø Literacy Ø Obsolescence Ø Training Expense Ø

Knowledge Workers - Workers whose responsibilities extend beyond the physical execution of work to include decision making, problem solving, and trouble shooting.

Demographic Issues Shrinking Labor Pools in Certain Categories Ø Pension Funding/Retirement Ø Non-permanent/contract Employees Ø Plateauing Ø Elder and Child Care Ø

Competitiveness Issues Productivity Improvement Ø Foreign Competition/Wage Differentials Ø Mergers/Acquisition Ø Downsizing/Reorganizing Ø Globalization Ø Technology Changes Ø

Globalization - Trend toward opening up foreign markets to international trade and investment.

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.

Reengineering - Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

Economic Issues Growth in Service Sector -Service -Insurance -Real Estate -Retail -Banking -Utilities -Wholesale -Government -Transportation

Downsizing - The planned elimination of jobs.

Outsourcing - Contracting outside the organization to have work done that formerly was done by internal employees.

Employee Leasing - Employees who are hired away by a vendor firm but continue to work in their original jobs.

EQUAL EMPLOYMENT OPPORTUNITY AFFIRMATIVE ACTION

Equal Employment Opportunity - The treatment of individuals in all aspects of employment – hiring, promotion, training, etc. – in a fair and nonbiased manner.

Protected Classes - Individuals of a minority race, women, older persons, and those with disabilities who are covered by federal laws on equal employment opportunity.

Public Policy on Non-Discrimination Global vs. USA Equal Employment Opportunity Ø Affirmative Action Ø

Affirmative Action - Policy that goes beyond equal employment opportunity by requiring organization to comply with the law and correct past discriminatory practices by increasing the numbers of minorities and women in specific positions.

Legal Development Global Human Rights Movements Laws Changed Employment Ø Social Attitudes Ø Research and Publicity of Plights Ø Environment Concerns Ø Child Labor (Prisons, Slaves) Ø

Driving Forces Changing National Values Ø Economic Disparity (Haves vs. Have Nots) Ø

Major Laws Affecting Equal Employment Opportunity in USA LAW REQUIREMENTS Equal Pay Act of 1963 Provides equal pay for equal work, regardless of sex. Title VII of Civil Rights Act of 1964 Prohibits discrimination in employment (selection, hiring, training, promotion, salary, etc. ) on the basis of race, color, religion, sex, or national origin. Age Discrimination in Employment Act of 1964 Prohibits discrimination against persons 40 years of age and older in any area of employment because of age. Equal Employment Opportunity Act of 1972 Strengthened enforcement powers of EEOC and extended coverage of the Act to government employees, higher educational institutions, and other select groups.

Major Laws Affecting Equal Employment Opportunity in USA LAW REQUIREMENTS Pregnancy Discrimination Act of 1978 Prohibits discrimination against women because of pregnancy, childbirth, or related medical conditions Americans with Disabilities Act of 1990 Prohibits discrimination in employment against persons with physical or mental disabilities or the chronically ill. Employers must make a reasonable accommodation to the employment needs of the disabled. Civil Rights Act of 1991 Provides for compensatory and punitive damages and jury trials in cases involving intentional discrimination. covers U. S. citizens working for American companies overseas. Uniformed Services Employment and Reemployment Rights Act of 1994 Grants reemployment rights to individuals who enter the military. Employers cannot discriminate on the basis of military obligation in the areas of hiring, job retention, and advancement.

Reasonable Accommodation - Attempt by employers to adjust, without undue hardship, the working conditions or schedules of employees with disabilities or religious differences.

Internal Discrimination Complaint Procedure Employee discrimination charge Reported to manager or supervisor Organizational EEO officer or designated HR staff person Investigation Decision on charge No basis for charge: charge dismissed Appeal to organizational EEO grievance committee Charge upheld: ACCUSED • Oral or written reprimand • Suspension • Discharge HARMED EMPLOYEE • Restore all lost employment conditions

Uniform Guidelines in Selection Impact Ø Ø Hiring Retention Promotion Transfer Ø Ø Ø Demotion Dismissal Referral www. eeoc. gov

Bona Fide Occupational Qualification (BFOQ) - Suitable defense against discrimination charge only where age, religion, sex, or national origin is an actual qualification for performing the job.

Guidelines Bona fide Occupational Qualification Ø Validity (Job Related) Ø Disparate Impact (Equal Percentage) Ø Statistical Evidence Ø

New Issues Sexual Harassment (Double Standards) Ø Age-Religion-Sex-National Origin Ø Accommodation of Disabled Ø Immigration Reform and Central Act of 1986 Ø Reverse Discrimination Ø

Enforcement in USA EEOC Ø Charges (Guilty until proven innocent) Ø EEO-1 Report (Record keeping) Ø

Managing Diversity - Being aware of characteristics common to employees, while also managing employees as individuals.

Components of an Effective Affirmative Action Plan Ø Ø Ø Widely publish organizational policy regarding affirmative action (internal and external). Appoint a senior executive to direct and implement affirmative action program. Determine organizational composition of minorities and women by department and job classification. Develop goals and timetables to improve employment of minorities and women in areas of under-representation. Continually audit all aspects of the affirmative action program.