Human resource MGMT

True false: Can honesty test can be reliable but not valid?
True -It can be reliable if it is consistent every time it is given like it should be.
It could not be valid because it doesn’t test for the right thing (in this case, honesty) or it doesn’t predict honest behavior well.
a cheater will get a good score on an honesty test, because they’re a consistent/reliable cheater
can’t be vice versa, must be valid in order to be reliable
Is personality a valid predictor of job performance?
Personality can be a valid predictor of job performance since the personality of a worker can affect the way he or she works
What is the big five factors that can measure a personality?
Extroversion: the degree to which someone is talkative, sociable, active, aggressive, and excitable
o Agreeableness: the degree to which someone is trusting, amiable, generous, tolerant, honest, cooperative and flexible
o Conscientiousness: the degree to which someone is dependable, and organized and conform and perseveres on tasks (People with low levels tend to ignore safety rules and regulations and, thus, tend to have more accidents and injuries then people with higher levels) (MOST RELATED TO JOB PERFORMANCE)
o Emotional stability: the degree to which someone is secure, calm, independent and autonomous
o Openness to experience: the degree to which someone is intellectual, philosophical, insightful, creative, artistic and curious
– it depends. depends on the personality test (myers briggs (not valid predictor) or Big 5 (can be predictive) or another one)? also depends on the job (ex: Big 5 measuring extraversion is good for sales job)
Why is it not surprising that an assessment center tends to be a valid predictor of managerial job performance?
an assessment center is a set of simulated tasks or exercises that candidates are asked to perform, how they do on these tasks can predict how well they’ll do as a manager
It’s not surprising that these tasks are a valid predictor because they’re tasks that directly relate to what they’ll be doing in the job

everything that happens with the assessment center can be traced to what happens in the job (so it relies heavily on job analysis) so if the person does well in a fake situation, you can predict he’ll do well in the real job, or vice versa

Suppose you were responsible for developing a selection system for airport security officers. Be prepared to discuss the selection system. What process would an applicant go through? Explain fully. (3 strategies)
Application forms with basic questions about work experience, make sure they meet basic requirements
Structured Interview to ask about their experience, what makes them right for the job
Drug test for obvious reasons, just want to make sure the airport security officers won’t be abusing any drugs while he’s supposed to be alert and keeping the airport safe
Background check to make sure the person isn’t undesirable, also to avoid any negligent hiring lawsuits if God forbid something were to happen
Assessment center – real life tasks commonly found in the job (requires job analysis)

application → narrowed down pool answers written situational questions → narrowed down pool does situational interviews or physical ability tests

*need to think about utility (for example, a personality test is a cheaper way to narrow the pool that a situational assessment center)

“multiple hurdle strategy”: only progress if you got over the last hurdle
as opposed to:
“clinical strategy”: where every applicant takes every part of selection process and judge
them after everyone has completed everything
“statistical strategy”: people take all the elements of the selection system but weigh them
differently (assign each part a # of points)
maybe do initial multiple hurdles, then whoever makes it goes through 3 statistical
elements (blend these strategies)

how would the airport validate the structured interview? *EXAM*
make sure the judgement of the interview actually relates to how the person does in the job?

What message is sent to applicants about an organization through recruiting and selection practices?

If an applicant thinks that the selection process is unfair, they might file a…

An applicants reaction to the selection process can influence their attraction to and opinions of an organization and their decision to accept or reject an offer of employment
· Applicants believe that personality traits are not job relevant
· If an applicant thinks that the selection process is unfair, they might file a discrimination charge
interview for Zappos vs Goldman Sachs
companies need to do a good job if they want good applicants, because good applicants have options, so orgs should make sure they’re not running late, the applicant is meeting with who you said they would, no typos in letters, they get back to you in a timely manner, etc.
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Based on the articles by Lohr and Bryant, what role is “big data” playing in human resource management? Can you relate this material to the baseball industry and the fundamental error made by the orthodox decision makers in baseball?
big data” is digital measurements and monitoring to asses an applicants future productivity
· I.e. Google is not using as much test scores but rather found that the most innovative workers are those that are happy, and have a strong sense of mission about their work and personal autonomy

two articles agree: good leaders are CONSISTENT!
behavioral structured interviews are best according to Google exec
the crazy “how many marbles fit in a Volkswagen?” q’s aren’t important he says
they ask “can you do this?” if person says “yes” say “do it” instead of honesty test stuff

From an employer perspective, what does it mean to validate the “player assessment tool?” Do you think the NFL is following a good procedure in terms of validating this test?
· To validate the test would indicate that the test actually determines player performance in the future and would actually be useful for the employer in knowing its players
· It is also giving the results before the draft as to not affect the players interview, individual workout and film study
· Receiving the results may negatively affect the draft
· It hasn’t been proven that it would work
· Also they aren’t testing for math or any of those types of questions, but rather personality and how each player learns

predictive validation design for player assessment tool
don’t want to give results to teams before draft because then they’re only going to pick
players who did well, you’re not getting a good range of results to compare to actual
performance

What purposes can be served by performance appraisal? Explain. (IMM)
-Identification means determining what areas of work the manager should be examining when measuring performance. Rational and legally defensible identification requires a measurement system based on job analysis.
-Measurement, the centerpiece of the appraisal system, entails making managerial judgments of how “good” or “bad” employee performance was. Performance measurement must be consistent throughout the organization.
-Management, is the overriding goal of any appraisal system. Appraisal should be more than a past-oriented activity that criticizes or praises workers for their performance in the preceding year.
Used for decisions about employee’s work conditions, including promotions, termination, and rewards
Performance appraisals can be used for administrative or developmental reasons
What is the distinction between relative and absolute judgment? Which would you prefer in terms of assessing your performance in this class? Which would you prefer in terms of communicating your overall school performance to a prospective employer? Why?
· Relative judgment: an appraisal format that asks supervisors to compare an employee’s performance to the performance of other employees doing the same job
· Absolute judgment: an appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards
*most HR specialists think the disadvantages of relative judgement outweigh the advantages (ranking is vague, doesn’t give any absolute information, force managers to identify differences between people where they may be none)
Management-by-objectives is related to what motivational theory discussed in Chapter 2? Explain.
Management-by-objectives: a goal-directed approach to performance appraisal in which workers and their supervisors set goals together for the upcoming evaluation period
This relates to goal-setting-theory which suggests that employees’ goals help to explain motivation and performance
What are some of the major errors that raters make in performance appraisal?
4 types
– halo error: (or horn) rater rates the employee well on all dimensions because they made a good overall impression or just did really well on a dimension important to that rater
– restriction of range error: rater only rates on a small portion of the scale, like all ratings
are on the high portion (leniency error), middle portion (central tendency error), or
lower portion of the scale (severity error)
-personal bias can also cause error, difficult to eliminate
-liking error: do you like someone because they’re a good performer? or do I rate them as
a good performer because I like them personally?
-comparability bias: do the supervisors all have the same standard? standardized
ranking?
What is a rate error?
Rate error: an error in performance appraisals that reflects consistent biases on the part of the rater
How to get rid of performance based errors?
change the appraisal tool to get rid of restriction of range, comparability issues
frame of reference training: making a common metric, make people think about their own biases,
make them aware of halo/horns, like showing a video to everyone and coming to a conclusion
to show people how it’s done
What is the relationship between organizational politics in performance appraisal and validity of performance appraisal? Explain.
– Political perspectives: assumes that the value of a worker’s performance depends on the agenda, or goals of the supervisor
– The goal of appraisal from a rational perspective is accuracy, while the political perspective is utility

In the rational approach supervisors simply notice and evaluate a workers performance, thus the accuracy is critical. In the political approach both supervisors and workers are motivated participants in the measurement process, hence workers actively try to influence their evaluations either directly, or indirectly

The validity of political appraisal is more blurred since a lot of times the assessment criteria is unclear so that it can be bent towards whatever the agenda is at the moment not as accuracy-driven

utility reduces validity if it happens throughout the org on a large scale

so what if performance appraisal isn’t valid?
low moral, employees might leave org because they’re fed up

If there is a performance problem, what percentage of the problem do you think can generally be attributed to person factors (ability, motivation) versus system factors? Why?
Performance appraisal can be problematic since it is a manager tool, and depending on what his or her agenda is, then they would grade the worker differently

However a person may be motivated and working hard however because of the system factors may be graded harshly

we thought: performance = ability x motivation
now we have to factor in the system, how?

Is player (employee) performance difficult to evaluate? What does it mean for Oakland’s to have a goal to “minimize the risk?” How does this relate to the concept of validity?
– because personal factors can come into play. Personal life trouble = affects performance

This relates to validity because the As have been able to validate their player performance analysis with the wins that they have had

need valid selection tools and performance appraisals to minimize the risk
the better the validity, the lower the likelihood of error

What are the warning signs of the Destructive Pursuit of Idealized Goals (DePIG)? Have you had any personal experiences where you personally have engaged in DePIG as described by the article?
7 warning signs
A narrowly define goal: priority is given, almost exclusively, to one course of action
Idealized future: a romanticized picture is created of what the world will look like after the goal is achieved
Goal-driven justification: current actions are justified in terms of the future achievement of goals
Public expectation: failure to accomplish the goal would be met by public perception of failure
Association of the goal with destiny: achieving the goal is conceived in terms of “rightfulness” and “destiny”
Face-saving behavior: if initial steps to achieve the goal are met with resistance or failure, the pursuit is again justified in terms of its future achievement
idealized goal: you think everything will be better/solved if you attain this goal, you think anything you do to attain it is justified, think it’s your destiny to obtain it
What lessons does DePIG tell us about management-by-objectives?
Learning from experience: develop multiple strategies for achieving goals, assess impact, and update with new strategies, especially under novel situations
Recovering: develop mechanisms to adjust to setbacks, mistakes and errors
Recognize the unintended consequences of achieving a goal
Provide a strategy and justification for retreat from the goal
Identify multiple goals with multiple benefits
Project costs of continuing the pursuit after setbacks
Fostering trust: develop a culture safe for surfacing problems
Minding the gap: attend to discrepancies between present reality and ideal expectations
Cultivating dual loyalties: balance multiple roles and loyalties to different cultures

learn from experience
be able to admit to your boss that you need to readjust the goals/expectations
not all orgs have that culture where you can say that to your boss

The Flamingo Hotel & Casino in Las Vegas is considering developing a virtual reality based training program aimed at improving customer service. The program, called “Raise Your Bets” would cover all components of customer service. The Flamingo estimates that improved customer service will result in an extra $50 in customer expenditure per customer visit to the hotel. Last year, there were approximately 5,000 customer visits to the Flamingo. The training cost per employee (this includes the cost of developing the virtual reality software, employee time spent in training) will be $500. A total of 400 employees and managers will go through the training. How can the Flamingo Hotel evaluate the effectiveness of the training?
(4 levels of framework)
They can asses the effectiveness of the training based on either monetary or nonmonetary terms
By seeing the outcome after the training of the amount of money won, they can determine if it was effective
There is a four level framework to evaluate:
Participants reaction to the training at the time of the training
Participants learning of the content of the training
Participants use of their new skills and knowledge back on the job
Company’s return on the training investment
Evaluate based on customer satisfaction
Reaction to training, learning, behavior based on training, results
ROI (net benefits/costs)
50×5000= 250,000 (benefits)
500×400= 200,000 (cost)
50,000/200,000= 25%
Have to check whether there is a better opportunity cost
Question on final
$250,000 estimated increase in customer spending
$200,000 cost to train the employees and managers
estimated net gain of $50,000
25% ROI
In monetary terms, it will probably be successful if their estimations of increased spending are correct
You’re getting a $50,000 return on investment because of the results of the training. It’s important to determine if the increased customer spending is in fact due to the training.
In nonmonetary terms, you can see if the training resulted in the business meeting a goal, like here it would be better customer service.

look at employees’ reactions, learning, behaving, *results! (that’s in order of what managers are most interested in)
Return on Investment is a result we can look at to evaluate
ROI = net benefits/cost
KNOW how to do this for exam, don’t just show benefit versus cost, do ROI
opportunity cost, that’s why you can’t just do benefit vs cost
***before you jump to this program because there’s a 25% ROI, think about if there’s another use
of the $200k that could get me a better ROI than 25%
maybe do a pilot period first in just one part of the company

Paul Depodesta is quoted in the book as saying “Too many people make decisions based on outcomes rather than process.” Find the quote. What is he referring to? Can you connect these comments to performance appraisal in contexts outside of baseball?
He is referring to the thinking process that goes through a pitchers head. Meaning that a pitcher only thinks of striking the batter out, rather than determining where he can throw to have a lower probability of hitting it
· Also how he approaches a strike
· This connects to performance appraisal in the sense that employers make work just to fit the outcomes of the performance appraisal
· Employers don’t actually analyze the situation of different options, but rather just go with the obvious route to be able to get a good appraisal
· Enhance performance by understanding the means
What are the four ways that women stunt their careers?
modesty: women think that their accomplishments will speak for themselves, they spend less effort in insuring that they get noticed
· Not asking: women fail to apply to promotions
· Blending in: women prefer not to stand out
· Remaining silent: getting your point of view out there is an important part of your career
What criteria should an organization use to develop a compensation system (pay system) for employees?
An organization should first perform a job analysis
· From this determine what the job entails, and how a person who works at this does a good job
· After determining the parameters and how critical the job is to the company, can the compensation be determined.
· Equity (fairness)
True or False. Compensation is a function of supply and demand. Fully explain and provide examples from the reading.
False partly true, there are a lot more factors that play into determining the compensation
· According to the labor market model of pay equity, the wage rate for any given occupation is set at the point where the supply of labor equals the demand for labor in the marketplace. In general, the less employers are willing to pay (low demand for labor) and the lower the pay workers are willing to accept for a given job (high sup- ply of labor), the lower the wage rate for that job.
what is not consistent/captured with the Supply & Demand/market model for compensation: equity, employer choices/strategy (preventative wages), government regulation, unions (only cover less than 10% of the workforce → but Union Threat Effect makes companies want to treat their employees well so they won’t want to unionize)
True or False: Benchmark jobs are an important consideration when examining external equity.
True
· Benchmark jobs: those that are similar or comparable in content across firms
· They analyze how much of a value does this job add and determine how much the pay will be
Companies frequently use previous experience, seniority, and performance appraisal ratings to determine how much an employee is to be paid within the range for their job. The objective of this is to achieve individual equity.
What seem to the legal issues surrounding the “Forever 21” case and the “Chargers games” case? Explain.
Forever 21- employees weren’t allowed to leave the store during lunch breaks and were usually kept after hours for more unpaid work and so managers could search their bags to see if they stole anything. A lot of the employees were just high school kids so they didn’t really know their rights as employees.

Chargers- high school kids (16+) required to volunteer at Chargers games in order to participate in other extracurriculars. The Chargers would donate a certain amount of money depending on how many hours were worked. When you do the math, the kids were “earning” less than minimum wage and working pretty long shifts doing low level jobs.

Why “work” for free? From society’s perspective, what is problematic about unpaid internships?
Society: reinforce the “have” and “have not” inequality between students because only wealthier kids can afford to take an unpaid internship. It’s also a good possibility that unpaid internships end up costing the intern money once you take into account transportation and other costs.
Unpaid internships are just a way companies can get free labor just by saying they’re giving the kids an “experience”, which may be true, but that doesn’t mean you don’t have to pay them if they’re actually producing output.
What is the six- part test the Department of Labor uses to determine whether or not an unpaid intern is an “employee” covered by the FLSA minimum wage requirements?
must be given wage unless ALL of these are met:
1. the internships is similar to training which would be given in an educational environment
2. the internship experience is beneficial to the intern
3. the intern does not displace regular employees, works under close supervision of existing staff
4. the employers provides the training derives no immediate advantage from the intern and might actually be impeding the operations by providing the training
5. the intern isn’t entitled to a job after completing the internship
6. both the employer and intern understand that the intern is not entitled to wages for the time spent interning
The Department of Labor has been reluctant to enforce the FLSA in the context of unpaid internships. Why do you think that has occurred?
Most members of Congress use unpaid interns, so it would look very contradictory and Congress wouldn’t be happy about having to actually pay them.
It would also be hard to enforce, maybe it would push more people to work under the table.

also: those six rules are very unclear/vague, intern & company might have different definitions of “benefit”, etc.
must file a complaint with DoL, students reluctant to do this because jeopardizes future employment, letter of rec

According to Anand et al., why might it be difficult for organizational members to assess corruption or unethical behavior within their organizations? Do Anand et al. offer plausible recommendations that would have limited this unethical activity? Explain.
Corrupt individuals don’t see themselves as corrupt.
It might be difficult for them to recognize and address corruption or unethical behavior because they use rationalizations to neutralize any bad feelings they get from participating in it.
rationalization tactics: denial of responsibility, denial of injury, denial of victim, social waiting (I’m only stealing napkins, not silverware!), higher loyalty (I steal napkins because I’m more loyal to my poor family than this restaurant), the ledger (even things up, I paid $15 for a burger, I deserve a napkin), socializing newcomers into corrupt practices (social cocoon: what’s happening at work becomes disassociated with your home life, where you may act with different values)

ways to help/prevent this
headline test: making people aware of/confront the unethical situation, would you feel good if it was printed in the newspaper?
put focus on process, not just the outcome
have an ethics code
role models/ethical leadersv

Be prepared to explain the Wal-Mart bribery case. In what ways does the case relate to the Anand et al reading?
Former Walmart executive whistleblowing
Walmart de Mexico paid bribes to get construction permits in different parts of the company.
~$24 million
Walmart de Mexico executives knew about the bribery and actively hid it from headquarters.
When HQ found out, they shut down the investigation and no one was disciplined. They kind of swept it under the rug and instead of firing the chief executive who kind of spearheaded all this, they moved him to vice chairman of Walmart (I’m assuming to get him out of a position where he could continue that kind of behavior).

relates to Anand reading — sort of an ends justify the means situation
bribery is super common in Mexico and may have seemed necessary if Walmart wanted to expand their business in Mexico
maybe it didn’t seem too unethical because no one spoke up or it just seemed an acceptable way of doing things in Mexico (socialization)

incrementalism: started off with a little bribe, Walmart helped customers avoid sales taxes (so maybe down the road bribery doesn’t sound so bad)
euphemistic language
no leaders as role models in this case
Walmart had an internal investigation (difficult for org to see its own corrupt practices because of rationalization and socialization)
Walmart does have an ethics code, but this shows that it may not be sufficient

Pay has been used to motivate behavior. Are there potential pitfalls to pay for performance? Can anything be done to avoid these pitfalls?
potential problems arising out of incentive programs (“pay for performance” programs):
the “do only what you get paid for” syndrome (ex: teachers and standardized testing), unethical behavior, negative effects on the spirit of cooperation, lack of control, difficulties in measuring performance, psychological contracts (which are very resistant to change), the credibility gap (which is employees thinking the programs aren’t fair), job dissatisfaction/stress, and potential reduction of intrinsic drives (overjustification effect from psych)
can create a culture where payment is expected when an employee has to do anything, even though some situations in the business need the employees to cooperate and act without extra pay

preventing these pitfalls: piece-rate systems, using incentive programs as part of a broader HR system, building employee trust, promoting the belief that performance really makes a difference, using multiple layers of rewards, increasing employee involvement, stressing the importance of acting ethically, and using motivation and nonfinancial incentives

How much total pay should the CEO of a company make relative to the total pay of the average employee in the company? Why? Are there societal and organizational implications with wide variation in pay? If Brown’s article is correct – what are some concerns surrounding the behaviors of highly paid executives (or any other highly paid individual)?
implications of pay gap between higher and lower level employees: increasing the feelings of “have” and “have nots” at work, makes higher-ups feel less relatable and approachable which could hurt the business if the lower-paid employees don’t feel they’re valued/respected
negative light on “big business”, more regulation, more negative feelings toward corporations

concerns about highly paid executives: more likely to engage in antisocial behavior (cheating, lying, cutting off other drivers) which could mean they’re more likely to engage in questionable business activities, like the bribery described in the Walmart de Mexico case

lower-income level people realize that pay isn’t going to get them through the day, but social bonds will
higher-paid people are more socially isolated
baseball teams with smaller variance in salary work better, more teamwork/cooperation
people who are upset about what’s going on may result in them taking extreme actions

After reading Chapter 9 of Moneyball, why do you think baseball players desire union representation and protection? Identify a passage in the book that supports your view. Can you relate this to employees in other contexts?
other contexts: if people at one company find out that people in their position in a similar company are making much more than them or getting treated better, they’ll be more likely to unionize/want more representation
The textbook highlights four major factors that have contributed to the growth of employee benefits. What are they and how have they encouraged growth?
-federal tax policy: many benefits are tax free or tax deferred, tax policies help these group benefits grow, like flexible spending plan (devote pre-tax money out of your paycheck to your health plan, paying less than you would because it’s pre-tax)
-federal legislation: all employers must provide SS and unemployment insurance benefits
-union influence: examples: pensions and health insurance plans
even influencing groups in other sectors, like “hey, if the teachers’ union got dental benefits, maybe we at the plumbers union can get them too”
-union threat effect: Walmart will now offer dental and vacation benefits because they don’t want their employees unionizing, keep them happy
must be a VIABLE threat, how likely is it that they would unionize? if it’s not likely, then there is no threat of unionizing
so if Walmart doesn’t give dental because they don’t have to (no union threat), Safeway (who has a union) will say they won’t offer dental because Walmart isn’t (and Walmart can afford lower prices because of that)
cost savings of group plans: employers can provide benefits for much less money than it would take for employees to get them on their own, spread the risk among a bigger pool
distinguish among social security, workers compensation, and unemployment insurance. Provide details about each.
Social security:
o A government program that provides income for retirees, the disabled, and survivors of deceased workers and health care for the aged through the Medicare program
o Provides income for retirees, the disabler and survivors of deceased workers
o Health care for the aged through the Medicare program
workers’ comp: pays for medical care expenses for people with job-related injuries/illness; income for survivors of someone who died of work-related reasons, higher payroll tax (employer tax) for higher-risk jobs, STATE, about 60%
***NO FAULT SYSTEM, even if worker was being idiot
GOOD EXAM QUESTION
two workers recklessly driving a forklift, one gets injured who was driving, still gets
workers comp (but could still be fired)
unemployment ins: temporary income for people during periods of involuntary unemployment, funded by a tax paid by employers (orgs that lay off a lot of people frequently pay a little more) combo of federal and state, part of SS?, about 30% of your lost earnings
What is the “human element?”
you can have a lot of statistics and stuff like that, but there’s always going to be something you can’t control/predict/account for
Distinguish between statutory rights and contractual rights. Can you think of employment-related examples of each?
Statutory rights: protected by specific laws and government, protection from discrimination base on sex, race, age, OSHA, right to unionize.
· Contractual rights: based on the law contracts, union contracts, implied contracts, individual employment contracts etc. Based on legal writing
The textbook indicates that a very small percentage of the labor force works under employment contracts. If this is true, then how are the terms and conditions of employment and workplace rules set where there is no employment contract? Is this related to the concept of management rights? Should there be limits to management rights? Why or Why not?
· Majority of people don’t have employee hand book, or told if they are employed at will
· Verbal agreements
· At the discretion of the employer, management rights
· Management rights: rights of the management to make tasks, hire, promote, assign people, etc.
· There are limits to management rights such as zoning laws, advertising laws, etc.
if there are no individual contracts where parties agree in writing, no handbook, no negotiated agreement (collective bargaining agreement), it is pretty much at employer’s discretion but with some limits
right to run a business: manager has right to decide their return policy, social responsibility, location, strategy, advertising etc.
some have limits on them (location- zoning laws, advertising- no cigs for kids)
“Should employees be permitted to join together and engage in collective actions in order to improve employee wages and working conditions?” Why/Why not?
Yes- within reason
If employers can engage in collective action, then employees also Balances the power between employer and employee
In the United States, why do employees seek union representation? (3 reasons) Is this true for Public School Teachers, Physicians, Professional Athletes, Hotel Workers, Graduate Teaching Assistants, and College Athletes? Why do you think employers in the United States try to prevent their employees from joining together in a labor union (2 reasons)?
(1) dissatisfied with certain aspects of their job (usually fairness and respect), (2) feel they lack the influence with management to make the needed changes, and (3) see unionization as a solution to their problems

Physicians feel disrespected by the managers of the hospital, since they sometimes reject the opinion of physicians
This is true for some of these since some have an employee contract in which it explicitly spells out the terms of employment, hence they know what is expected before having to unionize
They are all hired for a certain period of time hence their contract spells out most of the conditions
Employers in the US try to prevent their employees from joining together in a union because:
Wages are higher for unionized workers, putting them at a disadvantage with competition
Unionized firms are less profitable
There is no impact in productivity
Lower turnover in unionized firms
There might be more training in unionized firms
Management discretion decreases
Unions constraint what managers can and cannot do with a particular employee

Main 2 Reasons: DECREASED profitability and DECREASED management discretion

True or False: An employee who is discriminated against because of their sex can file an unfair labor practice charge with the National Labor Relation Board.
False
· The National Labor Relation Board remedy five illegal practices which are:
1. Interfering with, restraining, or coercing employees to keep them from exercising their rights to form unions, bargain collectively, or engage in concerted activities for mutual protection.
2. Dominating or interfering with the formation or administration of a union or providing financial support for it.
3. Discriminating against an employee to discourage union membership. Discrimination can include not hiring a union supporter, or not promoting, firing, or denying a pay raise to an employee who is a union member or who favors union representation.
4. Discharging or otherwise discriminating against an employee who has filed charges or given testimony under the act’s provisions.
5. Refusing to bargain collectively with the union that employees chose to represent them.
False. The NLRB can help with discrimination based on union membership, however.
***EXAM: must be specific to union-related activity for NLRB to get involved
NLRB is only for unions!!
Is “right-to-work” good public policy? For whom?
Right-to-work law: a state law that makes it illegal within that state for a union to include a union shop clause in its contract
· Union shop clause: a union arrangement that requires new employees to join the union 30 to 60 days after their date of hire
· Unions negotiate a union shop clause in their contract to provide greater security to union employees and prevent nonunion employees from receiving union services without paying union dues

A union probably wouldn’t like it.
It’s good for the new employee if they don’t want to join the union and pay the dues for something they don’t want to be a part of.
It may also be good for the employer, because some applicants may be turned off once they learn about the union (if they don’t want to join one)

According to Kochan, what are root causes of the numerous corporate scandals that have occurred since 1999? What does this relate to employee interests? How does this issue relate to the Landrum-Griffin Act?
The root causes that have occurred since 1999 are:
The overemphasis American corporations have been forced to give in recent years to maximizing shareholder value without regard for the effects of their actions on other stakeholders
With increasing pressures from Wall Street in the aftermath of the contests for corporate control in the 1980s, executives turned more and more of their attention to meeting the short-term expectations of analysts and to restructuring operations to boost earnings

This relates to employee interest since there is a lot of emphasis being put on the top management, which is shown by the ratio in compensation
This issue relates to the Landrum-Griffin act since workers had no protection whatsoever in the corporation, and had to trust in them. However there were layoffs since this had proven to increase their stock price. There was a shift in focusing on the core competencies, hence this affected workers.
There can be potential corruption of corporation and employers
The Landrum-Griffin act: was enacted in 1959 to protect union members and their participation in union affairs, allows the government through the Department of Labor to regulate union activities:
1. Each union must have a bill of rights for union members to ensure minimum standards of internal union democracy.
2. Each union must adopt a constitution and provide copies of it to the Department of Labor.
3. Each union must report its financial activities and the financial interests of its leaders to the Department of Labor.
4. The government regulates union elections, and union members have the right to participate in secret ballot elections.
5. Union leaders have a fiduciary responsibility to use union money and property for the benefit of the membership and not for their own personal gain. Members can sue and recover damages from union leaders who fail to exercise their fiduciary responsibilities.
era of the charismatic CEO

relates to landrum-griffin act: deals with the relationship between unions and their members, so if union is doing something wrong, maybe the member can’t be negatively affected by it? like can’t be held responsible?

What does it mean for an organization to have a labor relations strategy?
Labor relations strategy: company’s overall plan for dealing with labor unions
Union Acceptance Strategy: a labor relations strategy in which management chooses to view the union as it employee’s legitimate representative and accepts collective bargaining as an appropriate mechanism for establishing workplace rules
o Consistent with a mixed motive view
· Union avoidance strategy: a labor relations strategy in which management tries to prevent its employees from joining a union, either by removing the incentive to unionize or by using hardball tactics
· Union substitution/proactive human resource management: a union avoidance strategy in which management becomes so responsive to employees needs that it removes the incentives for unionization
· Union suppression: a union avoidance strategy in which management uses hardball tactics to prevent a union from organizing its workers or to get rid of a union
Why is the concept of permissive bargaining subjects important?
Neither party is obligated to bargain on these topics
Know what is on and off the table for negiotations
o Provisions for union members to serve on the company’s board of directors and benefits for retired union members
o Allowing management to use the union label to put on its product, settlement of unfair labor practices, and including supervisors in the labor contract
negotiating for retired people’s benefits, legal for employer to say they don’t want to discuss that because law says unions rep current employees and not former (retired) and therefore it is not a permissive topics
drug testing employees: mandatory
drug testing applicants: permissive
unions can ONLY strike over MANDATORY bargaining topics
unions and employers can’t negotiate ILLEGAL topics
Should employers be permitted to hire permanent replacement workers? Does this mean employees don’t have the right to strike?
They have the right to strike, however they could be replaced
Highly skilled workers still benefit from the right to strike since it is a lot more difficult to be replaced
Distinguish between a lockout and an economic strike. Provide some examples of lockouts from the Greenhouse article. What advantage does the lockout give employers
Lockout: occurs when an employer shuts down its operations before or during a labor dispute
employer advantage: to stop everything from economic harm
· Economic strike: a strike that takes place when an agreement is not reached during collective bargaining. Initiated by employees. Employee can bring permanent workers
Greenhouse article:
o Employers are turning to lockouts to press their unionized workers to grant concessions after contract negotiations
o Opera locked out its orchestra and singers for more than a week before settling the dispute
o 130 day lock-out by the NFL and 161 NBA
o American Crystal Sugar locked employers our and hired replacement workers (Federal laws allows for the employers to hire workers, however they cannot replace the others)
o Sotheby’s locked out 43 art handlers
o Armstrong World Industries locked out 260 workers at its ceiling tile plant
o West River nursing home in Milford, Conn., where management locked out 100 workers on Dec. 13, companies see lockouts as a way to wrest concessions and set an example for workers at their other facilities.
· Puts employers at a distinctive advantage, places pressures on employees
How would the handling of employee grievances differ in a unionized versus non-union context?
Grievance procedure: a systematic, step-by-step process designed to settle disputes regarding the interpretation of a labor contract
· Union contracts have two advantages which are:
o Provides employee with an advocate dedicated to representing the employee’s case to management, the union steward. Under any other conditions, the employee is represented by either a manager or agent of the manager, such people cannot be entirely dedicated to the employee
o Arbitration: the decision of the arbitrator who is a neutral individual selected from outside the firm, is binding on both parties, compensated by both the manager and union (50/50). Unlike grievance panels, composed of people on the company payroll, the arbitrator has no personal stake in the outcome and can make a tough decision without worrying how it will affect his career

In non-union setting, a manager/HR person is the advocate of the employees (problem: where do their loyalties lie…?)

Final step: arbitration with an arbitrator (neutral person who decides who is right)
who decides who the arbitrator is? employer, probably!
arbitrators could also have backgrounds of siding with one side over the other, employer
and employee can look into that

What is the Model Alliance? Why did the Model Guild fail? What are the employment concerns of models?
The model alliance is a not-for-profit labor group for models working in the American fashion industry, in order for models to receive fair treatment in the workplace and to establish ethical standards
· The Model Guild failed because the modeling agencies resisted the idea of unionizing and many models worried that agencies would blacklist them for union ties
· The employment concerns are the long work hours, the environment in which young models are in, and that they need protection
· Transparency in pay, not hiring models that seem to be sick,
Identify the reasons why college scholarship athletes should be considered “employees” and reason why they should not be considered “employees.”
Due to the probability of injuries, a health care system that may last beyond college years would be a reason to unionize, and consider them athletes since they are at risk every time they play (workers compensation) . Work 40 hrs a week, create revenue
· They are supervised by coaches, not faculty, therefore there compensation would be unrelated to education

reasons they aren’t: they get free school, housing, etc, being an athlete is enhancing their college education experience, school is the main reason they’re at Northwestern, not sports

What does the Northwestern football coach, Pat Fitzgerald, think about the union? Given the coaches view, does the public comment by quarterback Trevor Siemian surprise you?
Pat Fitzgerald doesn’t agree with the union and says it would be in the best interests of the players to vote no
· It doesn’t surprise me that the quarterback agreed with the coach, since he is the runner-up to be the quarterback, hence its in his best interest to be on the coach’s good side
Do you agree with Bob Frantz of The Morning Journal? Why? Why not?
I agree with him since college athletes are basically compensated in scholarships
· The university is technically paying for them to be athletes and represent their university
· Maybe a better health care plan of some sort may be good to have however Frantz makes extremely valid points
Would you consider the RA position to be a “job?” Does this mean that RAs are employees or students? Why is this distinction important?
Yes, they are employees because they have contracts and are paid. They have to apply, go through a selection process, have requirements (activities, office hours, etc), etc
But they are also students
It’s important to know this because even if they get fired as RAs they are still students at GW
Why didn’t employees at UMass Amherst engage in collective bargaining after passage of the NLRA in 1935? Why did many employee groups at UMass join unions after 1973? What role does labor law play in encouraging or discouraging unionization?
· They were granted the right to join unions in and to present proposals to public employees in 1958, but there was no obligation to engage in bargaining with the public employee unions
· Many employee groups joined unions after 1973 because of the passage of Massachusetts General Law in 1973, which granted full collective bargaining rights to most state and municipal employees
· Labor law encourages a lot unionization since it gives them the right to do so, and by having the law on their side workers can almost accomplish anything as longs as its within the law guidelines

only allowed CB for private employees, not public employees

What is the difference between the RAC and a union? Can the RAC serve as a union?
They were appointed by other RA workers, and their concerns were voiced to administrators through this committee
· The RAC doesn’t collectively bargain, as does a union
· The composition of the RAC is decided by the Residence life (employer)
· The RAC can serve as a union since they are protesting or advocating for rights of employees and improvement of work conditions
· If is were a union there had to be an election process, the residence life wouldn’t be there
· It would be illegal for the RAC to be a union as it is, because it is not permitted for employers to choose the representatives
What are the key factors that led some RAs to have an interest in union representation? Are these legitimate concerns? Do the RAs opposed to unionization have legitimate concerns? Could unionization of the RAs change Residence Life?
· Some of the key factors that led to some RAs having an interest in union representation was angst and job dissatisfaction
· Compensation issues
· Unfair practices when it came to punishment, meaning that if they did the same thing as some of their residents they would get fired, however residents would get just a warning
· Their residents had more rights than they did
· These are legitimate concerns since it affects the way they perform their jobs
· It can also affect their personal lives when residents do things such as leaving threatening notes on their doors
· Unionization could change Residence Life since they will try to get more respect and with more joining the union they will be able to get the response they want
· Exit, voice, loyalty, neglect
Why did the NLRC determine that RAs were employees?
“the actual work performed by the R As and CDAs is not primarily educational and therefore not tied in with their student status as the university contends. R As and CDAs do not receive academic credit for their work, nor do they … have any formal academic responsibilities. … The only discrete academic aspect of the R A position is the minimum GPA requirement. “
Would it be appropriate to include undergraduate security receptionists, undergraduate clerical workers, or RAs at other UMass campuses in the same bargaining unit as RAs at UMass Amherst?
No- Other RAs would be appropriate since the job descriptions are the same
· However other workers don’t deal with the same things as RAs, also they get paid more
· Its not a 24hr job
If the NLRC had decided that undergraduate clerical workers working for Residence Life should be included in the same bargaining unit as RAs, what implications would this have for the union recognition process?
This would bring problems since clerical workers and RAs would have different goals
· They have different working conditions, hence different requests
· Also clerical workers would be considered more of a job since it probably doesn’t have a GPA requirement, and they don’t act as leaders for others in their community
· Unions prefer smaller bargaining units
On a 1 (bad) and 10 (excellent) scale, how would you rate the university’s election campaign from a strategic perspective and then from an ethical perspective? Why?
From an ethical perspective I rate it a 3
· The university tried to threaten the RAs with the possibility of eliminating the RA program because of budget cuts, and if the union was successful they wouldn’t be able to accommodate
· Also threatening with benefits
· From a strategic perspectives I would rate it an 8
· Some of the RAs started to become concerned, and doubting their support for the union
· Since they were threatened with the university having budget cuts, then there would be no gain with a union, and even the possibility of losing the job

strategic perspective: good
ethical perspective: bad

Given the information you know at this point in the case, what do you think will be the outcome of the election?
I think the RAs will vote to unionize and maybe get some of what they’re asking for, not all though

RAs voted in favor… now university (employer) must bargain in good faith

How would you characterize the labor relations system in China? Provide examples. Based on your reading in this class, how would you compare it the U.S. system of labor relations?
No independent union, government controlled employer accepted union
In the US there is only independent union
Companies in China don’t have a well established labor relations strategy
Since the government has discouraged strikes.
Laws and social norms favor employers
What role did labor relations play in the uprising and revolution that occurred in Egypt?
In the uprising workers joined revolutionaries in the square, staging strikes throughout the year
· Since Egypt had a strong industrial base, the labor had a large effect
· For the Egyptians the mahalla cotton mill set the tone for the rest of the industrial sector since it was the flagship of Egyptian industry
· With the first strike came many other in other factories as well as the biggest one that occurred on April 6th, which got worldwide recognition
· Labor relations were terrible in Egypt, and they had the control for many years, however with the protests beginning to happen and change, there was a sense of hope within the workers
· People started to realize that if they took a stance on something thy believed in , they could inspire and accomplish change
· With Mahalla being the first, other followed and realized the power and change they could achieve by standing up for their rights
· And this inspired other who weren’t in the industrial sector

article said the whole revolution may have roots from a pay dispute at a cotton mill that began five years before this article was written
this one little old woman organized a strike which grew into this national work stoppage day and the workers eventually won but the labor-relations part of the revolution was kind of forgotten about with all the noise about politics

: What would you say are the two most important reasons for the high failure rates of expatriates (a citizen of one country living and working in another country) (6 main reasons)?
The main issues that for high failure rates of expatriates are:
· Career blockage: people feel that when they work abroad, their counterparts in their home office are climbing the corporate ladder
· Culture shock: people cannot adjust to a different cultural environment. The expatriate may try to impose his own values into the company, and these many times do not align. Lack of cultural intelligence, or the inability to relate to people of different cultures
· Lack of predeparture cross-cultural training: some companies offer no training to expatriates
· Overemphasis on technical qualifications: traits that may make you successful in the home office may not work in abroad
· Getting rid of a troublesome employee: sometimes sending a troublesome employee abroad may cause even more troubles
· Family problems: many times family issues affect expatriates abroad.
What are the disadvantages of utilizing expatriates? If there are disadvantages, then why use them?
The disadvantages are:
· Creates problem of adaptability to foreign environment and culture
· Increases the “foreignness” of the subsidiary
· May involve high transfer, salary, and other costs
· May result in personal and family problems
· Has disincentive effect on local-management morale and motivation
· May be subject to local government restrictions

Even if there are disadvantages, there are also advantages of using expatriates:
Cultural similarity with parent company ensures transfer of business/management practices
Permits closer control and coordination of international subsidiaries
Gives employees multinational orientation through experience at parent company
Gives employees a multinational orientation through experience at parent company
Establishes a pool of internationally experienced executives
Local talent may not yet be able to deliver as much value as expatriates can
Provides broader global perspective
personal/family problems for that person
subject to local govt restrictions
management problems, motivation probs
costly: salary, training, transport
**moral of the local employees who were after a promotion but outsider got it instead
might not be as friendly/social because they see you as taking an opportunity away from them

What are some issues that you should consider regarding a return from an expatriate assignment? (4)
Lack of respect for acquired skills: people who go back may be frustrated by the lack of respect and appreciation shown by their peers to their new skills
o Loss of status: returning expatriates experience a substantial loss of prestige, power, independence and authority
o Poor planning for return position: uncertainties regarding their new career assignment may provoke much anxiety in returning employees
o Reverse culture shock: living and working abroad can change a person, especially if they have internalized some of the foreign country’s norms and customs

culture shock
while you’re gone, someone kind of took your spot (like as the “go-to” person)
loss of professional status, loss of personal status

What HRM policies and procedures would you develop to reduce the problem of expatriate failure?
Selection: when choosing an employee to go abroad it is critical to make the correct decision
Emphasize cultural sensitivity as a selection criterion
Establish a selection board of expatriates
Require previous international experience
Explore the possibility of hiring foreign-born employees who can serve as “expatriates” at a future date
Screen candidates spouses and families
Develop an effective selection program not only for expatriates, but also for those locals who will help the expatriate manager carry out his or her mission
Training: cross-culture training sensitizes candidates for international assignment to the local culture, customs, language, tax laws, and government. Ideally, the training process should begin nine to twelve months before moving
Information-giving approach lasts less than a week, and merely provides indispensible briefings and a little language training
Affective approach: one to four weeks, focuses on providing the psychological and managerial skills the expatriate will need to perform effectively during a moderate-length assignment.
Impression approach (1-2 months): prepares the manger for a longer assignment with greater authority and responsibility by providing field experience, and extended language training
Training upon arrival
Career development:
Position the international assignment as a step toward advancement within the firm
Provide support for expatriates
Provide career support for spouse
Compensation
Provide the expatriate with a disposable income that is equivalent to what he or she would receive at home
Provide an explicit add-on incentive for accepting an international assignment
Avoid having expatriates fill the same jobs held by locals or lower-ranking jobs
If you were a firm considering hiring Goldstein or Diaz (see Flying Solo Abroad) — which one would you hire and why?
I would hire Diaz because in the few months that he was there he was able to immerse himself completely into the culture
· He attempted to live the same way the locals did, and completely grasp the colloquial mannerisms
· Goldstein had to wait to be without her friends in order to immerse herself into the culture, and not even that much
What is the debate surrounding “anonymous resumes?” Why can’t France rely on something like the 4/5 rule?
The debate surrounding “anonymous resumes” is that most of the time people are discriminated based on their ethnicity and even where they live when applying for jobs in France
This is due to the fact that racism is cultural in France
Babear and the Montaigne Institute have persuaded about 300 companies to sign a charter pledging to oppose discrimination and make their companies ” reflect the diversity of France”
France can’t rely on something like the 4/5 rule because American-style affirmative action programs are illegal under French law, and are viewed as antithetical to French culture and society
“If I hire someone not because he’s competent but because he is black, immediately everyone in the company is going to think that blacks are unqualified” Bebear said, to him affirmative action should principally mean better education, so that minorities will have :the same level of confidence as the others
Illegal to gather data from employees, such as ethnicity, social class, etc.
Was due to WWII
people are not being hired because of their name/any resume info hinting at race, SES, demograf
in France, people with French names are way more likely to be hired
companies are taking too long to implement the anon resume rules
people are still being kinda ~discrim against

no ⅘ rule because affirmative action programs are illegal in France
want to hire someone based off merit, not because they’re a certain race
French not allowed to have databases tied to an employee’s race/ethnicity, any demographic data on their workforce
because of WW2, Nazis used to use company databases to find out how they needed to indentify

What new law are the French students protesting? What issue do you think would get college students in the U.S. to engage in street protests? What does that say about the French? What does that say about Americans?
They are protesting a law that will make it easier to hire and fire young people at a time where the youth unemployment rate averages 23%. There will be provision that will allow companies to fire employees under the age of 26 at any time during their first two years of work, without case
· This shows that French students are proactively protesting and trying to change laws, even if sometimes it resorts to violent actions
· Americans college students may protest against
American protest: privacy issues, pay issues

employment at will
law saying no EAW for people under 26 in first two years of employment
young people feel it’s targeted at them

US: do more for social equality reasons, human rights issues