1. WEEK TWO The Nature of Staffing Chapter 2: Legal Compliance Chapter 3: Planning

2. Staffing Organizations Model

3. 2-3 Chapter Outline The Employment Relationship Laws and Regulations EEO/AA Laws: General Provisions and Enforcement EEO/AA Laws: Specific Staffing Provisions EEO/AA and Best Practices Other Staffing Laws Legal Issues in Remainder of Book

4. 2-4 Learning Objectives for This Chapter Contrast legal differences among employees, independent contractors, and temporary employees Appreciate why staffing laws are necessary, and their sources Review six major federal equal employment opportunity and affirmative action laws Distinguish between disparate treatment and adverse (disparate) impact approaches to enforcement Examine specific staffing provisions of the six major laws Look at other important staffing laws and regulations Gain an overview of legal issues covered in Chapters 3–14

5. The Employment Relationship Employer-employee Most prevalent form of employment relationship Involves an agreement between employer and employee on terms and conditions of employment Results in an employment contract Independent contractors Are not considered employees, in a legal sense, of employer Temporary employees Do not have special legal stature

6. Ex. 2.1: Matching Process, Employment Contract, and Employment Process

7. Laws & Regulations Need for laws and regulations – Balance of power – Protection of employees – Protection of employers Exh. 2.2: Sources of Laws and Regulations – Common law – Constitutional law – Statutory law – Executive order – Agencies

9. Exh. 2.3: Major Federal/AA Laws: General Provisions

10. Ex. 2.3: Major Federal/AA Laws

11. Disparate Treatment Involves allegations of intentional discrimination where employer knowingly discriminated on basis of specific characteristics Evidence – May be direct – May consist of a mixed motive – May be inferred from situational factors 1. Person belongs to a protected class 2. Person applied for, and was qualified for, a job employer was trying to fill 3. Person was rejected despite being qualified 4. Position remained open and employer continued to seek applicants as qualified as person rejected

12. Example of Hiring Discrimination

13. Disparate / Adverse Impact Focuses on effect of employment practices, rather than on motive or intent underlying them – As a result of a protected characteristic, people are adversely affected by an employment practice Evidence -- Involves use of statistics – Exh. 2.5: Types of Disparate Impact Statistics Applicant flow statistics – Four-fifth’s rule - An employment practice has disparate impact if hiring rate for minority group is less than four-fifths (or 80%) of hiring rate for majority group Stock statistics Concentration statistics

14. Disparate treatmentDisparate impact Show intent?YesNo Prima facie case Disparate treatment - intentional practice Disparate impact - effect of practice Employer’s rebuttal Nondiscriminatory reason(s) for practice or show BFOQ Practice job-related and consistent with business necessity Plaintiff’s rebuttal Reason is a pretext for discrimination Practice not job-related; employer does not adopt practice with less disparate impact Remedies Consent decree; compensatory and punitive damages Consent decree; equitable relief, i.e. back pay Litigation Process - EEOC

15. Exh. 2.5: Types of Disparate Impact Statistics

16. Questions to Consider: What are the limitations of disparate impact statistics as indicators of potential staffing discrimination? Why is each of the four situational factors necessary to establishing a claim of disparate treatment?

17. Charge filed Investigation to determine “reasonable cause” If “reasonable cause” found, conciliation is pursued – Voluntary settlement process – Preferred method of settlement If EEOC decides not to pursue a claim, a “right to sue” letter is issued to complaining party Complementing conciliation is mediation – Neutral, third-party mediates dispute to obtain agreement to resolve dispute Enforcement by EEOC: Initial Charge and Conciliation

18. Basic Litigation Process

19. Enforcement mechanisms differ from those of EEOC Covered employers required to develop and implement written AA plans Enforcement involves – Off-site desk audits/reviews of employers’ records and AA plans – On-site visits/compliance reviews of employers’ AA plans Employers found in noncompliance urged to change practices through conciliation – If conciliation is unsuccessful, employers subject to penalties affecting their status as federal contractors Enforcement by OFCCP (Office of Federal Contract Compliance Programs)

20. Question to Consider What factors would lead an organization to enter into a consent agreement rather than continue pursuing a suit in court?

21. Civil Rights Act of 1964 – Unlawful employment practices – Establishment of disparate impact – Disparate treatment – Mixed motives – Bona fide occupational qualification (BFOQ) – Testing – Test score adjustments – Seniority or merit systems – Employment advertising – Pregnancy – Preferential treatment and quotas EEO / AA Laws: Specific Staffing Provisions

22. 2-22 EEO / AA Laws: Specific Staffing Provisions Age Discrimination in Employment Act (1967) – Prohibited age discrimination – BFOQ – Factors other than age – Seniority systems – Employment advertising

23. 2-23 EEO / AA Laws: Specific Staffing Provisions Americans with Disabilities Act (1990) – Prohibited discrimination – Definition of disability Physical and mental impairments substantially limiting a major life activity

24. 2-24 EEO / AA Laws: Specific Staffing Provisions Americans with Disabilities Act (1990) – EEOC clarifications Impairment - “A physiological disorder affecting one or more of a number of body systems or a mental or psychological disorder.” Expanded major life activities include “sitting, standing, lifting, and mental and emotional processes such as thinking, concentrating, and interacting with others.” Whether an impairment is substantially limiting depends on its nature and severity, duration or expected duration, and its permanency or long-term impact. To be substantially limiting, impairment must prevent/significantly restrict a person from performing a class or broad range of jobs in various classes.

25. 2-25 EEO / AA Laws: Specific Staffing Provisions Americans with Disabilities Act (1990) – Qualified individual with a disability – Essential job functions – Reasonable accommodation and undue hardship – Selection of employees – Medical exams for job applicants and employees – Affirmative action

26. 2-26 EEO / AA Laws: Specific Staffing Provisions Rehabilitation Act (1973) – Prohibited discrimination – Affirmative action Executive Order 11246 (1965) – Prohibited discrimination – Affirmative action

28. 2-28 Other Staffing Laws: Immigration Reform and Control Act (1986) Purpose – To prohibit employment of unauthorized aliens – To provide civil and criminal penalties for violations Prohibited discrimination Employment verification system -- I-9 form – Employer must verify individual is not an unauthorized alien and is legally eligible for employment – Individuals must offer proof of identity Temporary foreign workers Enforcement – Enforced by Department of Justice – Noncompliance may result in fines up to $10,000

29. 2-29 Other Staffing Laws: Employee Polygraph Protection Act (1988) Purpose – Prevent most private employers from using a polygraph on job applicants or employees Prohibited practices – Requiring applicants or employees to take a polygraph – Using results of a polygraph for employment decisions – Discharging or disciplining individuals for refusal to take a polygraph Examples of instances where polygraph may be used Enforcement – Enforced by Department of Labor – Noncompliance may result in fines up to $10,000

30. 2-30 Other Staffing Laws: Fair Credit Reporting Act (1970) Purpose – Regulates organization’s acquisition and use of consumer reports on job applicants Required compliance – Before obtaining a report, organization must Give applicant notice in writing a report may be obtained Obtain written authorization from applicant – If an “adverse action” is taken, organization must Notify (written, oral, electronic) applicant of adverse action Provide information of consumer reporting agency to applicant Provide notice of applicant’s rights to applicant Enforcement – Enforced by Federal Trade Commission – Noncompliance may result in fines up to $1,000

31. 2-31 Other Staffing Laws: Civil Service Laws and Regulations Merit principles and staffing practices – Merit principles relevant to staffing To recruit, select, and promote employees on the basis of their KSAOs To provide for fair treatment of applicants and employees without regard to political affiliation, race, color, national origin, sex, religion, age, or handicap To protect privacy and constitutional rights of applicants and employees as citizens To protect employees against coercion for partisan political purposes – Principles codified in civil service laws and regulations

32. 2-32 Other Staffing Laws: Civil Service Laws and Regulations (continued) Comparisons with private sector – Notable differences exist between public and private sectors – Examples of public sector staffing practices Open announcement of all vacancies, along with content of selection process to be followed Large numbers of applicants due to applications being open Legal mandate to test applicants only for KSAOs directly job- related Limits on discretion in final hiring process, such as number of finalists, ordering of finalists, and AA considerations Rights of applicants to appeal hiring decision, testing process, or actual test content and method

33. 2-33 Discussion Question to Consider What are the differences between staffing in the private and public sectors? Why would private employers probably resist adopting many of the characteristics of public staffing systems?

34. 2-34 Ethical Issues Issue 1 – Assume that you’re the staffing manager in a company that informally, but strongly, discourages you and managers from hiring people with disabilities. The company’s rationale is that people with disabilities are unlikely to be high performers or long term employees, and are costly to train, insure, and integrate into the work unit. What is your ethical assessment of the company’s stance; do you have an ethical obligation to try to change the stance, and if so, how might you go about that?

35. 2-35 Ethical Issues Issue 2 – Assume the company you work for practices strict adherence to the law in its relationships with employees and job applicants. The company calls it “staffing by the book.” But beyond that, it feels that “anything goes” in terms of tolerated staffing practices. What is your assessment of this approach?

36. WEEK 2 Support Activities Chapter 3: Planning

37. Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Staffing System and Retention Management Support Activities Legal compliance Planning Job analysis Core Staffing Activities Recruitment: External, internal Selection: Measurement, external, internal Employment: Decision making, final match Organization Mission Goals and Objectives Staffing Organizations Model 3-37

38. 3-38 Chapter Outline External Influences – Economic Conditions – Labor Markets – Technology – Labor Unions Human Resource Planning – Process and Example – Initial Decisions – Forecasting HR Requirements – Forecasting HR Availabilities – Reconciliation and Gaps Staffing Planning – Staffing Planning Process – Core Workforce – Flexible Workforce – Outsourcing Diversity Planning – Demography of the American Workforce – Business Case for Diversity – Planning for Diversity Legal Issues – AAPs – Legality of AAPs – EEO and Temporary Workers

39. 3-39 Learning Objectives for This Chapter Recognize external influences that will shape the planning process Understand how strategic plans integrate with staffing plans Become familiar with statistical and judgmental techniques for forecasting HR requirements and availabilities Know the similarities and differences between replacement and succession planning Understand the advantages and disadvantages of core workforce, flexible workforce, and outsourcing strategies for different groups of employees Learn how to incorporate diversity into the planning process Recognize the fundamental components of an affirmative action plan

40. 3-40 Ex. 3.1: Examples of External Influences on Staffing

41. 3-41 Labor Markets: Demand for Labor Employment patterns – Demand for labor is a derived demand – Job growth projections – Employment growth projections KSAOs sought – KSAO requirements Education levels – Survey of skill deficiencies – Critically required skills

42. 3-42 Labor Markets: Supply of Labor Trends in supply of labor – Quantity of labor - Exh. 3.2: Labor Force Statistics – Labor force trends relevant to staffing Growth KSAOs Demographics Other trends ??? KSAOs available – Educational attainment – Literacy – Motivation

43. 3-43 Labor Markets: Other Issues Labor shortages and surpluses – “Tight” labor markets – “Loose” labor markets Employment arrangements – Full-time vs. part-time – Regular or shift work – Alternative employment arrangements Exh. 3.4: Usage of Alternative Employment Arrangements and Contingent Workers

44. 3-44 Technology Reduces demands for some jobs – Replacement for labor – Makes products or services obsolete Increases demands for others – Change in market composition – New product development Changes in required skills

45. 3-45 Labor Unions Trends in union membership – Percentage of labor force unionized – Private sector unionization rate – Public sector unionization rate Contract clauses affecting staffing Impacts on staffing – “Spillover effects”

47. 3-47 Labor Unions: Contract Clauses Affecting Staffing Management rights Jobs and job structure External staffing Internal staffing – Job posting – Lines of movement – Seniority Grievance procedure Guarantees against discrimination

48. 3-48 Discussion Questions to Consider What are ways that the organization can ensure that KSAO deficiencies do not occur in its workforce? What are the types of experiences, especially staffing-­related ones, that an organization will be likely to have if it does not engage in HR and staffing planning? Why are decisions about job categories and levels so critical to the conduct and results of HRP?

49. 3-49 Overview: Human Resource Planning Process and Example Initial Decisions Forecasting HR Requirements Forecasting HR Availabilities Reconciliation and Gaps

50. Ex. 3.5: The Basic Elements of Human Resource Planning 3-50

51. Ex. 3.6: The Basic Elements of Human Resource Planning 3-51

52. 3-52 HRP: Initial Decisions Strategic planning – Comprehensiveness – Linkages with larger organizational mission Planning time frame Job categories and levels – What jobs will be covered by a plan? Head count (current workforce) Roles and responsibilities

53. 3-53 HRP: Forecasting HR Requirements Statistical techniques – Exh. 3.7: Examples of Statistical Techniques to Forecast HR Requirements Judgmental techniques – “Top-down” approach – “Bottom-up” approach

54. 3-54 HRP: Forecasting HR Requirements

55. 3-55 HRP: Forecasting HR Requirements

56. 3-56 HRP: Forecasting HR Requirements

57. 3-57 HRP: Forecasting HR Availabilities Approach – Determine head count data for current workforce and their availability in each job category/level Statistical techniques – Markov analysis – Limitations of Markov analysis

58. 3-58 Ex. 3.9 Use of Markov Analysis to Forecast Availabilities

59. Exhibit 3.10 Replacement Chart 3-59

60. Exhibit 3.11 Succession Plan 3-60

62. 3-62 Human Resource Planning Reconciliation and Gaps – Coming to grips with projected gaps – Likely reasons for gaps – Assessing future implications Action Planning – Set objectives – Generate alternative activities – Assess alternative activities – Choose alternative activities

63. Ex. 3.12: Operational Format for Human Resource Planning 3-63

64. 3-64 Discussion Questions to Consider What are the advantages and disadvantages of doing succession planning for all levels of management, instead of just top management? What is meant by reconciliation, and why can it be useful as an input to staffing planning?

65. 3-65 Staffing Planning Process Staffing objectives – Quantitative objectives – Qualitative objectives Generate alternative staffing activities – Staffing alternatives to deal with employee shortages and surpluses

66. Ex. 3.14 Staffing Alternatives to Deal With Employee Shortages 3-66

67. Ex. 3.14 Staffing Alternatives to Deal With Employee Surpluses 3-67

68. Exhibit 3.15 Internal Versus External Staffing 3-68

69. 3-69 Staffing Planning: Flexible Workforce Advantages Disadvantages Two categories – Temporary employees Staffing firms – Exh. 3.16: Factors to Consider When Choosing a Staffing Firm – Independent contractors

70. 3-70 Staffing Planning: Outsourcing Advantages Disadvantages Special issues – Employer concerns regarding working conditions – Loss of control over quality – Offshoring

71. 3-71 Diversity Planning The American workforce is highly diverse – Women make up ½ the labor force – Immigration – Civil Rights Legislation – Age Business case for diversity strategies – Expanded talent pools – Better understand diverse customer base – Enhance creativity of teams – Reduce turnover

72. 3-72 Diversity Planning Planning for diversity – Recruiting activities Selecting schools and colleges to recruit from Show commitment to diversity in recruiting efforts – Selection activities Eliminate requirements not related to job performance Include objective standards for judging candidate qualifications

73. 3-73 Legal Issues Affirmative Action Plans (AAPs) Guidelines for AAPs – Purpose is remedying past discrimination. – Definite underutilization of women and/or minorities – Should not penalize majority group members – Should be eliminated once goals have been achieved – All candidates should be qualified – Include organizational enforcement mechanisms EEO and temporary workers

74. 3-74 Discussion Question to Consider What problems might an organization encounter in creating an AAP that it might not encounter in regular staffing planning?

75. 3-75 Ethical Issues Issue 1 – Does an organization have any ethical responsibility to share with all of its employees the results of its forecasting of HR requirements and availabilities? Does it have any ethical responsibility not to do this? Issue 2 – Identify examples of ethical dilemmas an organization might confront when developing an affirmative action plan (AAP).