IOPSYCH (Module 3)

• Job Evaluation


  The process of determining the monetary worth of a job
• The Ideal Compensation System


  • Will attract and retain desired employees
  • Will motivate current employees while also providing security
  • Is equitable
  • Is in compliance with legal guidelines
• Determining Internal Pay Equity


  1. Determine compensable factors

  2. Determine levels for each factor

  3. Assign weights to each factor

  4. Convert weights to points for each factor

  5. Assign points to each level within a factor

  6. Assign points to jobs

  7. Run regression to determine how well points predict salary midpoints
• Compensable Factors


  Factors that differentiate the relative worth of jobs
• Levels for Education Factor


  • High school degree or less
  • Two-year college degree
  • Bachelor's degree
  • Master's degree
• Levels for Responsibility Factor


  • Makes no decisions
  • Makes decisions for self
  • Makes decisions for 1-5 employees
  • Makes decisions for more than 5 employees
• Levels for Physical Demands Factor


  • Lifts no heavy objects
  • Lifts objects between 25 and 100 pounds
  • Lifts objects more than 100 pounds
• Determining External Pay Equity


  • Worth based on external market
  • Determined through salary surveys - a questionnaire sent to organizations to see how much they are paying their employees in positions similar to those in the organization sending the survey
• Information obtained from salary surveys

  • Salary range
  • Starting salary
  • Actual salaries paid
  • Benefits
• Potential Salary Survey Problems
• Compensating CEOs and Executives
• Vulnerable employment


  No formal work arrangements, no access to benefits or social protection and more at risk to adverse impact of economic cycles
• Youth unemployment


  Half of the working age population, 15 to 24 years old are unemployed
• Educated unemployment


  High unemployment for college graduates
• Job and skills mismatch


  Inadequate employment opportunities, limited labor market information, inadequate academic preparation
• Employer-Employee Relationship


  • Selection & engagement of employee
  • Payment of wages
  • Power of dismissal
  • Employer's power of control
• Challenges to Legal Compliance


  • Dynamic Legal landscape - Many laws affecting the practice of HRM
  • Complexity of Regulation - HR law is very complex
  • Conflicting strategies for fair employment - Fair employment vs Affirmative action
• Just Cause for Termination


  Any wrongdoing committed by an employee including: Serious misconduct, Willful disobedience of employer's lawful orders connected with work, Gross and habitual neglect of duty, Fraud or willful breach of trust, Commission of crime or offense against the employer, employer's family members or representative, Inability of a probationary employee to meet prescribed standards of performance
• Authorized Cause for Termination


  An economic circumstance not due to the employee's fault, including: introduction of labor-saving devices, redundancy, retrenchment to prevent losses, closure or cessation of business (bankruptcy)
• Termination Process


  1. Notice of intent to dismiss and grounds for dismissal

  2. Notice to be heard

  3. Notice of decision to dismiss

  4. Written notice of dismissal with the specified grounds

  5. 30 days before date of termination
• Grievance


  A complaint about an organizational policy, procedure or managerial practice that creates dissatisfaction, valid or not
• Discrimination


  • Internal policies should be free of discrimination
  • Systematically discriminating means if the group they belong to is rejected regularly in a competitive process
  • Unjust acts of differentiating one group of people not based on personal merit but on partiality or bias
  • An irreconcilable practice in the workplace
• Disparate Treatment Discrimination


  Occurs when individuals are treated differently because of their membership in a protected class
• Adverse Impact Discrimination


  Occurs when the equal application of an employment standard has an unequal effect on one or more protected class
• Harassment


  Potential Victims: Gender, Race, Religion, Age, National origin, Alien status, Citizenship status, Disability, Sexual preference
• Sexual Harassment


  Unwanted verbal or physical behavior of a sexual nature that creates hostile, offensive or intimidating work environment and unreasonably interferes with a person's work

  
• Quid Pro Quo Sexual Harassment


  Harassment that occurs when sexual activity is required in return for getting or keeping a job or job-related benefit

  
• Hostile Work Environment Sexual Harassment


  Harassment that occurs when the behavior of anyone in the work setting is sexual in nature and is perceived by an employee as offensive and undesirable

  
• Behaviors that could be Sexual Harassment

  • Sexual comments
  • Undue attention
  • Verbal sexual abuse
  • Verbal sexual display
  • Body language
  • Invitations
  • Physical advances
  • Explicit sexual invitations
• Grievance system


  A process in which an employee files a complaint with the organization and a person or committee within the organization makes a decision regarding the complaint
• Mediation


  A method of resolving conflict in which a neutral third party is asked to help two parties reach an agreement
• Arbitration


  A method of resolving conflicts in which a neutral third party is asked to choose which side is correct
• Binding arbitration


  A method of resolving conflicts in which a neutral third party is asked to choose which side is correct and in which neither party is allowed to appeal the decision
• Nonbinding arbitration


  A method of resolving conflicts in which a neutral third party is asked to choose which side is correct but in which either party may appeal the decision
• Adverse impact


  An employment practice that results in members of a protected class being negatively affected at a higher rate than members of the majority class
• Four-fifths rule


  When the selection ratio for one group (e.g. female) is less than 80% (four-fifths) of the selection ratio for another group (e.g. males), adverse impact is said to exist