Managing Human Capital Exam Questions and Answers, Exams of Venture Capital

Download Managing Human Capital Exam Questions and Answers and more Exams Venture Capital in PDF only on Docsity! WGU C202 Managing Human Capital All Exam Questions and Answers (2022/2023) (100% Verified Answers by Expert 1. Direct financial compensation - ✓✓✓compensation received in the form of salary, wages, commissions, stock options or bonuses 2. indirect financial compensation - ✓✓✓all the tangible and financially valued rewards that are not included in direct compensation including free meals, vacation time and health insurance 3. nonfinancial compensation - ✓✓✓rewards and incentives given to employees that aren't financial in nature 4. base pay - ✓✓✓reflects the size and scope of an employee's responsibilities 5. severance pay - ✓✓✓give to employees upon termination of their employment 6. fixed pay - ✓✓✓pays employees a set amount regardless of performance 7. variable pay - ✓✓✓bases some or all of an employee's compensation on employee, team, or organizational 8. pay structure - ✓✓✓the array of pay rates for different work or skills within a single organization 9. pay mix - ✓✓✓the relative emphasis give to different compensation components 10.pay leader - ✓✓✓organization with a compensation policy of giving employees greater rewards than competitors 11.pay follower - ✓✓✓an organization that pays its front-line employees as little as possible 12.resource dependence theory - ✓✓✓proposition that organizational decisions are influenced by both internal and external agents who control critical resources 13.wage differentials - ✓✓✓differences in wage between various workers, groups of workers, or workers within a career field 14.labor market - ✓✓✓all of the potential employees located within a geographic area from which the organization might be able to hire 15.cost of living allowances - ✓✓✓clauses in union contacts that automatically increase wages base on the U.S. Bureau of Labor Statistics' cost of living index 16.market pricing - ✓✓✓uses external sources of information about how others are compensating a certain position to assign value to a company's similar job 38.external equity - ✓✓✓when an organization's employees believe that their pay is fair when compared to what other employers pay their employees who perform similar jobs 39.comparable worth - ✓✓✓if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them 40.wage rate compression - ✓✓✓starting salaries for new hires exceed the salaries paid to experienced employees 41.golden parachute - ✓✓✓lucrative benefits given to executives in the event the company is taken over 42.Cost-of-living adjustments - ✓✓✓pay increases to account for a higher cost of living in one country versus another 43.Housing allowance - ✓✓✓payments to subsidize or cover housing and related costs 44.hardship premiums - ✓✓✓increased salary for living in an area with a lower quality of life, less safety, etc. 45.tax equalization payments - ✓✓✓increased salary to make up for higher taxes that reduce take-home pay and decrease employee's purchasing power 46.inflation adjustments - ✓✓✓larger and/or more frequent raises to maintain employee's purchasing power in the face of inflation 47.Fair Labor Standards Act of 1938 - ✓✓✓a federal law that sets standards for minimum wages, overtime pay, and equal pay for men and women performing the same jobs 48.exempt employees - ✓✓✓employees who meet one of the FLSA exemption tests, are paid on a fixed salary basis and are not entitled to overtime pay 49.non-exempt employees - ✓✓✓employees who do not meet any of one of the FLSA exemption tests and are paid on an hourly basis and covered by wage and hour laws regarding minimum wage, overtime pay and hours worked 50.workers' compensation - ✓✓✓a type of insurance that replaces wages and medical benefits for employees injured on the job in exchange for relinquishing the employee's right to sue the employer for negligence 51.fixed rewards - ✓✓✓predetermined compensation (salary and benefits) 52.variable rewards (incentives) - ✓✓✓"at risk" rewards which are linked to factors determined as valuable, including performance, skills, competence and contribution - Recognize and reward high performers - Increase the likelihood of achieving corporate goals - Improve productivity - Move away from an entitlement culture - ✓✓✓Top four reasons organizations give for tying pay to performance ar - Preference of individual employees - Size of the rewards for high performance - Method of motivating individual job performance - Objectivity of the evaluation process that determines the rewards - ✓✓✓Before designing an incentive pay plan to motivate performance, it is important to consider the - Company performance - Reduced merit increases - Reductions in head count - Reduced benefits - Pay freezes - ✓✓✓Most common way employers fund variable pay programs 53.reward differnentiation - ✓✓✓differentiating rewards based on performance rather than giving all employees the same reward 54.short-term incentives - ✓✓✓one-time variable rewards used to motivate short-term employee behavior and performance (typically one year or less). ie bonus or profit sharing. to motivate attendance, cust serv, safety, production quality and quantity 55.profit sharing - ✓✓✓the distribution of organizational profits to all employees 75.telecommuting - ✓✓✓allows employees to work from home and link to the company's offices via computer. 76.gainsharing - ✓✓✓a program in which the firm shares the value of productivity gains with employees 77.scanlon plans - ✓✓✓gainsharing programs based on implementing employee suggestions for lowering the cost per unit produced 78.improshare - ✓✓✓a gainsharing plan based on a mathematical formula that compares a performance baseline with actual productivity during a given period with the goal of reducing production time 79.employee stock ownership plans - ✓✓✓tax-exempt, employer-established employee trusts that hold company stock for employees 80.errors of commission - ✓✓✓an employee receives an undeserved reward 81.errors of omission - ✓✓✓an employee who deserves a reward doesn't receive one 82.employee benefits - ✓✓✓nonwage compensation or rewards given to employees (indirect compensation) 83.Social Security, Unemployment Insurance, Workers' Compensation, Family Medical Leave Act, COBRA - ✓✓✓5 Mandatory Benefits 84.Social Security - ✓✓✓provides retirement income to qualified workers and their spouses after working a certain number of hours 85.unemployment insurance - ✓✓✓provides temporary income during periods of involuntary unemployment 86.workers' compensation insurance - ✓✓✓pays for medical costs and sometimes time off if an employee suffers a job-related sickness or accident, and survivor benefits in the case of an employee's death in exchange for relinquishing the employee's right to sue the employer for negligence 87.Family and Medical Leave Act of 1993 - ✓✓✓requires most employers to provide employees up to 12 weeks of unpaid leave to care for family members 88.Consolidated Omnibus Budget Reconciliation Act - ✓✓✓provides a continuation of group health coverage for employees and qualified beneficiaries that might otherwise be terminated when an employee experiences a qualifying event 89.Customary benefits - ✓✓✓commonly provided benefits that are viewed as an entitlement by employees 90.insurance, retirement plans 91.Life Insurance - ✓✓✓pays a beneficiary or beneficiaries a sum of money after the death of an insured individual 92.Disability insurance - ✓✓✓supplements workers' compensation insurance to provide continued income in the event of an employee becoming disabled 93.health insurance - ✓✓✓health care coverage for employees and their dependents 94.presenteeism - ✓✓✓an employee physically comes to work but does not function at his or her full potential 95.defined benefit retirement plans - ✓✓✓promise participants a monthly benefit at retirement 96.Employee Retirement Income Security Act of 1974 - ✓✓✓a federal law that protects employees' retirement benefits from mismanagemen 97.domestic partners - ✓✓✓two people who are not married, but are in a same-sex or opposite-sex arrangement similar to marriage 98.flexible spending account - ✓✓✓an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pretax basis 99.total compensation statement - ✓✓✓communicating total compensation in detail through a written summary of employee direct and indirect compensation - Physical resources - Business continuity - ✓✓✓Disaster plans should cover: 118. labor union - ✓✓✓a group of at least two employees who band together as a single entity to address pay, hours, and working conditions with their employer 119. collective bargaining - ✓✓✓when the employer and union negotiate in good faith on wages, benefits, work hours and other employment terms and conditions 120. Industrial Unions - ✓✓✓unions composed primarily of semi-skilled employees in manufacturing industries 121. Trade Unions - ✓✓✓unions composed primarily of skilled employees in a single trade 122. Employee associations - ✓✓✓union of professional employees 123. National Labor Relations Act of 1935 (Wagner Act) - ✓✓✓guarantees the right of nonmanagerial employees of firms engaged in interstate commerce to join unions and bargain collectively 124. Railway Labor Act - ✓✓✓act that governs employment relations for airlines and railroads 125. National Labor Relations Act of 1947 (Taft-Hartley Act) - ✓✓✓amended the Wagner Act to clarify what are considered unfair labor practices by unions and employees 126. right to work laws - ✓✓✓state laws that prohibit union shops in which all workers in a unionized workplace must join the union and pay dues 127. union shops - ✓✓✓all workers in a unionized workplace are forced to join the union and pay dues 128. closed shop - ✓✓✓shop that exclusively employs people who are already union members. Taft-Hartley Act made this illegal. 129. agency shop - ✓✓✓shop that requires nonunion workers to pay a fee to the union for its services in negotiating their contracts 130. open shop - ✓✓✓shop that does not discriminate based on union membership in employing or keeping workers. 131. Labor Management Reporting and Disclosure Act of 1959 (Landrum- Griffin Act) - ✓✓✓act that outlined a Bill of Rights for union members and sets up procedures for union elections, discipline and financial reporting 132. card check - ✓✓✓employees sign a card of support if they are in favor of unionization. 133. 50% - ✓✓✓If at least ______ of workers sign a union authorization card, the NRLB requires the employer to recognize the union without a secret ballot election 134. decertification election - ✓✓✓an election to determine if a majority of employees want to no longer be represented by a union 135. hard bargaining - ✓✓✓taking a strong position on an issue 136. surface bargaining - ✓✓✓going through the motions of negotiations with no intent of reaching an agreement 137. collective bargaining agreement - ✓✓✓a legal written contract between organized labor and an employer that is enforceable through the negotiated grievance and arbitration procedure 138. Permissive - ✓✓✓______ subjects may be negotiated but don not have to be. 139. Mandatory - ✓✓✓_______ subjects are those required by The National Labor Relations Board. 140. Illegal - ✓✓✓_______ subjects may not be negotiated. 141. mandatory - ✓✓✓wages, overtime, seniority, grievance procedures, safety and work practices, procedures for layoff, recall, discharge and discipline are _________ subjects. 155. jurisdictional strikes - ✓✓✓strikes affirming members' right to certain job assignments and protest the work assignments to another union or to unorganized employees 156. boycott - ✓✓✓union members refuse to use or buy the firm's products to exert economic pressure on management 157. secondary boycott - ✓✓✓when a union encourages third parties such as customers and suppliers to stop doing business with a company. Taft-Hartley Act makes these illegal. 158. lockout - ✓✓✓management keeps employees away from the workplace and uses management staff or replacements to run the business 159. dysfunctional - ✓✓✓conflict that focuses on emotions and differences between both parties 160. collaborating, accommodating, competing, compromising, avoiding - ✓✓✓Five conflict management strategies 161. collaborating - ✓✓✓attempting to work with the other person to find some solution which fully satisfies the concerns of both parties 162. accommodating - ✓✓✓neglecting one's own concerns to satisfy the concerns of the other person 163. competing - ✓✓✓pursuing one's own concerns at the the other person's expense 164. compromising - ✓✓✓trying to find some expedient, mutually acceptable middle ground solution which partially satisfies both parties 165. avoiding - ✓✓✓not immediately pursuing one's own concerns or those of the other person and not addressing the conflict 166. labor relations strategic plan - ✓✓✓identifies the labor relations goals desired individually or jointly by labor and management, determines the best strategy to reach those goals, and develops and executes the actions needed to implement that strategy 167. compliance strategy, collaboration strategy, avoidance strategy - ✓✓✓Three primary labor relations strategies 168. compliance strategy - ✓✓✓strategy that relies heavily on the application of labor law to enforce the rights and obligations created by statute and by contract 169. collaboration strategy - ✓✓✓strategy that relies heavily on labor relations to pursue an interest-based approach to problem solving 170. avoidance strategy - ✓✓✓strategy in which management engages in lawful or unlawful efforts to prevent a union from forming or seeks the decertification of an existing union 171. Weingarten rights - ✓✓✓rights that guarantee employees the right to union representation during investigatory interviews by the employer 172. cost-of-living adjustments - ✓✓✓pay tied to inflation indicators rather than merit 173. works councils - ✓✓✓council of elected workers that participate in shared workplace governance 174. codetermination - ✓✓✓worker representation on the company's board of directors 175. organizational citizenship behaviors - ✓✓✓discretionary behaviors that benefit the organization but that are not formally rewarded or required 176. employee engagement - ✓✓✓when employees are committed to, involved with, enthusiastic and passionate about their work 177. organizational commitment - ✓✓✓the extent to which an employee identifies with the organization and its goals and wants to stay with the organization 178. affective, normative, continuance 179. affective commitment - ✓✓✓a positive emotional attachment to the organization and strong identification with its values and goals 180. normative commitment - ✓✓✓feeling obliged to stay with an organization for moral or ethical reasons 198. mobility policies - ✓✓✓policies that specify the rules by which people move between jobs within an organization 199. workforce redeployment - ✓✓✓the movement of employees to other parts of the company or to other jobs the company needs filled to match its workforce with its talent needs 200. active job seeker - ✓✓✓someone actively looking for information about job opportunities 201. semi-passive job seeker - ✓✓✓someone at least somewhat interested in finding a new job but inconsistently looks for one 202. passive job seeker - ✓✓✓someone not actively looking for a new job but who could be tempted by the right opportunity 203. internal recruiting source - ✓✓✓locates talent currently working for the company that would be a good fit with another position 204. external recruiting source - ✓✓✓targets people outside the organization 205. succession management - ✓✓✓the ongoing process of preparing employees to assume other positions in the organization 206. talent inventory - ✓✓✓manual or computerized records of employee's relevant characteristics, experiences and competencies 207. internal job posting systems - ✓✓✓communicate information about internal job openings to employees 208. careers site - ✓✓✓the area of an organization's website devoted to jobs and careers with the company 209. internet data mining - ✓✓✓proactively search the internet to locate semi-passive and passive job seekers with the characteristics and qualifications needed fore a position 210. job fairs - ✓✓✓a place where multiple employers and recruits meet to discuss employment opportunities 211. offshoring - ✓✓✓opening a location in another country or outsourcing work to an existing company abroad 212. observation - ✓✓✓watching people working in similar jobs for other companies to evaluate their ptoential fit with your organization 213. Online job boards - ✓✓✓an internet site that helps job seekers and employers find one another 214. resume databases - ✓✓✓searchable database of prescreened resumes 215. search firms - ✓✓✓an independent company that specializes in the recruitment of particular types of talent 216. recruiting - ✓✓✓the set of practices and decisions that affect either the number or types of individuals willing to apply for and accept job offers 217. recruitment spillover effects - ✓✓✓the positive or negative unintended consequences of recruiting activities 218. applicant tracking system - ✓✓✓software that helps manage the recruiting process 219. efficiency oriented recruiting metrics - ✓✓✓track how efficiently a firm is hiring 220. strategic recruiting metrics - ✓✓✓recruiting metrics that track recruiting processes and outcomes that influence the organization's performance, competitive advantage or strategic execution 221. Realistic job previews - ✓✓✓presenting both positive and potentially negative information about a job in an objective way. 3 funcs served: self selection, vaccination (coping mechanism), commitment to the choice 222. Organizational image - ✓✓✓people's general impression of an organization based on both feelings and facts 223. employer image - ✓✓✓an organization's reputation as an employer 242. Unstructured interviews - ✓✓✓varying questions are asked across interviews and there are usually no standards for evaluating answers 243. structured interview - ✓✓✓uses consistent, job-related questions with predetermined scoring keys. behavioral or situational. 244. behavioral interview - ✓✓✓uses information about what the applicant has done in the past to predict future behavior 245. situational interviews - ✓✓✓asks how the candidate might react to hypothetical situations 246. case interview - ✓✓✓the candidate is given a business situation, challenge or problem and asked to present a well thought out solution 247. work samples - ✓✓✓evaluate the performance of actual or simulated work tasks 248. simulation - ✓✓✓a type of work sample that gives candidates an actual job task to perform or simulates critical events that might occur to assess how well a candidate handles them 249. assessment center - ✓✓✓puts candidates through a variety of simulations and assessments to evaluate their potential fit with and ability to do the job. 250. ie inbasket exercises, grp disc, simulations, dec-make probs, oral presentation, written comm 251. background checks - ✓✓✓assess factors including personal and credit characteristics, character, lifestyle, criminal history and reputation. contingent method. 252. multiple hurdles - ✓✓✓candidates must receive a passing score on an assessment before being allowed to continue in the selection process 253. compensatory approach - ✓✓✓high scores on some assessments can compensate for low scores on other assessments 254. cut score - ✓✓✓a minimum assessment score that must be met or exceeded to advance to the next assessment phase or to be eligible to receive a job offer 255. distributive fairness - ✓✓✓the perceived fairness of the outcomes received 256. procedural fairness - ✓✓✓the perceived fairness of the policies and procedures used to determine the outcome 257. interactional fairness - ✓✓✓the degree of respect and the quality of the interpersonal treatment received during the decision-making process 258. explicit employment contract - ✓✓✓a written or verbal employment contract 259. implicit employment contract - ✓✓✓an understanding that is not part of a written or verbal contract 260. offer - ✓✓✓contains the terms and conditions of employment as proposed by the employ and usually specific requirements for accepting the offer such as a signature and a deadline 261. acceptance - ✓✓✓a clear expression of the accepting party's agreement to the terms of the offer 262. consideration - ✓✓✓bargained-for exchange between the contract parties - something of value must pass from one party to the other 263. training - ✓✓✓formal and informal activities to improve competencies relevant to an employee's or workgroup's current job 264. development - ✓✓✓focuses on developing competencies that an employee or workgroup is expected to need in the future - Conduct a Needs Assessment - Develop Learning Objectives - Design the Training Program - Implement the Training - Evaluate the Training - ✓✓✓Five Steps to Effective Training 265. Needs assessment - ✓✓✓the process of identifying any gaps between what exists and what is needed in the future in terms of employee performance, competencies and behaviors. 266. org, task, person analysis - Characterization by value - ✓✓✓Taxonomy of Affective Learning Objectives  - I - P - A - O - Observing - Imitating - Practicing - Adapting - Originating - ✓✓✓Taxonomy of Psychomotor Learning Objectives 282. Lifelong learning - ✓✓✓a formal commitment to ensuring that employees have and develop the skills they need to be effective in their jobs today and in the future 283. aptitude-treatment interactino - ✓✓✓the concept that some training strategies are more of less effective depending on a learner's particular abilities, personality traits and other characteristics 284. learning style - ✓✓✓how people differ in how we process information when problem solving or learning 285. sensory modality - ✓✓✓a system that interacts with the environment through one of the basic senses. visual, auditory, tactile, kinetic. 286. visual, auditory, tactile, kinesthetic - ✓✓✓Four different sensory modalities 287. Visual - ✓✓✓sensory modality: learning by seeing 288. Auditory - ✓✓✓sensory modality: learning by hearing 289. Tactile - ✓✓✓sensory modality: learning by touching 290. Kinesthetic: - ✓✓✓sensory modality: learning by doing 291. discovery learning, experiential learning, observational learning, structured learning, group learning - ✓✓✓Five Key learning preferences 292. discovery learning - ✓✓✓a learning preference for exploration during learning. Prefer subjective assessments, interactional activities, informational methods and active-reflective activities 293. experiential learning - ✓✓✓a learning preference with a desire for hands-on approach to instruction. tend to prefer active learning activities 294. observational learning - ✓✓✓a learning preference for external stimuli such as demonstrations and diagrams to help facilitate learning. tend to prefer information and active-reflective activities 295. structured learning - ✓✓✓a learning preference for processing strategies such as taking notes, writing down task steps and so forth. related to preferences for subjective assessments. 296. group learning - ✓✓✓a learning preference to work with others while learning. Related to preferences for action and interactional learning. 297. training evaluation - ✓✓✓systematically collecting the information necessary to make effective decisions about adopting, improving, valuing, and continuing an instructional activity or set of activities 298. participant reactions, learning assessments, training transfer back to job - ✓✓✓Training evaluation includes: 299. Kirkpatrick's training evaluation model - ✓✓✓Most well known and frequently used model for assessing training effectiveness. 300. reaction, learning, behavior, results 301. Reaction, Learning, Behavior, Results - ✓✓✓Kirkpatrick's four levels of training and learning evaluation 302. [(Training Benefits - Training cost)/Training Cost] x 100 - ✓✓✓Equation for ROI% 303. Training transfer - ✓✓✓effectively using what is learned in training back on the job 304. closed skills - ✓✓✓skills performed similarly or exactly like they are taught in training 305. open skills - ✓✓✓sets of principles that can be applied in many different ways 322. variable socialization - ✓✓✓employees do not know when to expect to pass to a different status level and the timeline may be different across employees 323. tournament socialization - ✓✓✓each stage of socialization is an elimination round and a new hire is out of the organization if he or she fails to pass 324. contest socialization - ✓✓✓each socialization stage is a contest in which one builds a performance record 325. serial socialization - ✓✓✓accessible and supportive organizational members serve as role models and mentors 326. disjunctive socialization - ✓✓✓newcomers are left alone to develop their own interpretations of the organization and situations they observe 327. investiture socialization - ✓✓✓builds newcomers' self-confidence and reflects senior employees' valuing of newcomers' knowledge and personal characteristics 328. divestiture socialization - ✓✓✓tries to deny and strip away certain personal characteristics 329. learning agility - ✓✓✓the ability to learn from experiences and to apply that knowledge to new and different situations 330. motivation to transfer - ✓✓✓intention and willingness to transfer any knowledge acquired in a training or development activity back to the work context 331. Self Regulation - ✓✓✓processes enabling an individual to guide his/her goal-directed activities over time 332. performance management - ✓✓✓directs and motivates employees, work groups and business units to accomplish organizational goals by linking past performance with future needs, setting specific goals for future behavior and performance, providing feedback and identifying and removing performance obstacles - Organization as a whole - Organization subunits - Work teams or groups - Work Processes - Projects - ✓✓✓Performance managers focus on these five things: - Aligns organizational goals with individual goals and organizational processes - Gives employees clear goals and feedback - Generates useful data - ✓✓✓Three Main Benefits of Performance Management 333. balanced scorecard - ✓✓✓a performance measurement system that translates the organization's strategy into financial, business process, learning and growth and customer outcomes. sequential. 334. L-I-C-C-M-A-G-IO-R - Link goals to org mission & strategy - Identify subgoals for each unit/department/group/individual - Communication goals & expectations - Create work processes and assign resources - Measure progress - Assess individual, group, unit performance - Give feedback - Identify & Overcome obstacles - Reward Goal Achievement - ✓✓✓Nine steps of the performance management process 335. Specific, Measurable, Achievable, Relevant, Time-Bound - ✓✓✓SMART stands for: 336. Standards - ✓✓✓specifies the level of results considered acceptable 337. multi-source assessments - ✓✓✓performance feedback from the employee's supervisor as well as other sources who are familiar with an employee's job performance 338. task aquaintance - ✓✓✓the amount and type of work contact an evaluator has with the person being assessed 339. Upward reviews - ✓✓✓the target employee is reviewed by one or more subordinates 357. performance improvement plan - ✓✓✓a tool to monitor and measure an employee's deficient work products, processes and/or behaviors to improve performance or modify behavior. 358. F acts to define prob  bj to help emp resolve 359. S olutions to help emp reach obj 360. A ctions to take if not corrected 361. + overall efforts to help emp succeed 362. progressive discipline - ✓✓✓using increasingly severe measures when an employee fails to correct a deficiency after being given a reasonable opportunity to do so 363. verbal, written, suspension w/o pay, discharge 364. Not communicating a performance plan, a lack of accountability and human biases and errors - ✓✓✓Three most common obstacles to effective performance management 365. performance plan - ✓✓✓describes desired goals and results, how results will be measured and weighted and standards will be used to evaluate results 366. accountability - ✓✓✓an individual is expected to provide a regular accounting to a superior about the results of what she or he is doing and will be held responsible for the outcome 367. contrast effect - ✓✓✓over-or under-rating someone base on a comparison with someone else 368. first impression bias - ✓✓✓initial judgements influence later assessments 369. recency effect - ✓✓✓allowing recent events and performance to have a disproportionately large influence on the rating 370. high potential error - ✓✓✓confusing potential with performance 371. halo effect - ✓✓✓letting one positive factor influence assessments of other areas of behavior or performance 372. horns effect - ✓✓✓letting one negative factor influence assessments of other areas of behavior or performance 373. similar-to-me effect - ✓✓✓giving high ratings to someone because she or he is perceived as being similar to the rater 374. leniency error - ✓✓✓all employees are given high ratings regardless of performance 375. central tendency - ✓✓✓rating all employees in the middle of the scale regardless of performance 376. stereotype - ✓✓✓believeing that everyone in a particular group shares certain characteristics or abilities or will behave in the same way 377. opportunity bias - ✓✓✓ignoring factors beyond the employee's control that influence his/her performance 378. competitive advantage - ✓✓✓doing something differently from the competition that leads to outperformance and success 379. human resource management - ✓✓✓the organizational function responsible for attracting, hiring, developing, rewarding and retaining talent 380. staffing - ✓✓✓the process of planning, acquiring, deploying and retaining employees that enables an organization to meet its talent needs and to execute its business strategy 381. total rewards - ✓✓✓the sum of all of the rewards employees receive in exchange for their time, efforts and performance 382. direct financial compensation - ✓✓✓compensation received in the form of salary, wages, commissions, stock options or bonuses 383. indirect financial compensation - ✓✓✓all the tangible and financially valued rewards that are not included in direct compensation, including free meals, vacation time and health insurance 384. nonfinancial compensation - ✓✓✓rewards and incentives given to employees that are not financial in nature including intrinsic rewards received from the job itself or from the work environment 402. rights standard - ✓✓✓this ethical action is the one that best respects and protects the moral rights of everyone affected by the action 403. fairness standard - ✓✓✓the ethical action treats all people equally, or at least fairly, based on some defensible standard 404. common good standard - ✓✓✓the ethical action shows respect and compassion for all others, especially the most vulnerable 405. virtue standard - ✓✓✓the ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc. 406. omission, remission, commission - ✓✓✓three types of systematic errors that orgs make that undermine ethics efforts 407. omission errors - ✓✓✓a lack of written rules 408. remission errors - ✓✓✓pressure to make unethical choices 409. commission errors - ✓✓✓a failure to follow sound, established operational and ethical practices 410. codes of conduct - ✓✓✓specifies expected and prohibited actions in the workplace and gives examples of appropriate behavior 411. code of ethics - ✓✓✓a decision making guide that describes the highest values to which an organization aspires 412. written standards of ethical conduct, ethics training, providing a way for seeking ethics related advice or info, providing a way to report misconduct anonymously, disciplining employees, evaluating ethical behavior - ✓✓✓six elements of a complete ethics program 413. corporate social responsibility - ✓✓✓businesses showing concern for common good and valuing human dignity 414. stakeholder perspective - ✓✓✓considering the interests and opinions of all people, groups, organizations, or systems that affect or could be affected by the organizations actions 415. unfair discrimination - ✓✓✓when employment decisions and actions are not job related, objective or merit-based 416. fair discrimination - ✓✓✓when only objective, merit based and job related characteristics are used to determine employment related decisions 417. unlawful employment practices - ✓✓✓violations of federal, state or local employment laws 418. equal employment opportunity - ✓✓✓a firm's employment practices,must be designed and used in a manner that treats employees and applicants consistently regardless of their protected characteristics such as sex and race 419. inclusion - ✓✓✓everyone feels respected and listened to, and everyone contributes to his or her fullest potential 420. common law - ✓✓✓the body of case by case court decisions that determine what is legal and what remedies are appropriate 421. workplace tort - ✓✓✓a civil wrong in which an employer violates a duty owed to its customers or employees 422. national labor relations act of 1935 - ✓✓✓prohibits retaliation against employees seeking to unionize 423. fair labor standards act of 1938 - ✓✓✓establishes both a national minimum wage and overtime rules 424. equal pay act of 1963 - ✓✓✓prohibits wage discrimination on the basis of sex. EEOC 425. title VII of the Civil Rights Act of 1964 - ✓✓✓prohibits employment discrimination based on race, color, religion, sex, or national origin. EEOC 426. age discrimination in employment act of 1967 - ✓✓✓protects people age 40 and older. EEOC 427. rehabilitation act of 1973 - ✓✓✓prohibits discrimination against qualified individuals with a disability. EEOC 443. independent contractor - ✓✓✓an individual or business that provides services to another individual or business that controls or directs only the result of the work 444. sexual harassment - ✓✓✓unwelcome sexual advances, requests for favors and other verbal or physical conduct of a sexual nature 445. quid pro quo harassment - ✓✓✓unwanted verbal or physical conduct of a sexual nature mad as a term or condition of employment or as a basis for employment and/or advancement decisions 446. hostile environment harassment - ✓✓✓unwanted verbal or physical conduct of a sexual nature creates a hostile, intimidating or otherwise offensive working environment 447. disparate treatment - ✓✓✓intentional discrimination based on a person's protected characteristic 448. adverse impact - ✓✓✓an employment practice has a disproportionate effect on a protected group regardless of its intent 449. race norming - ✓✓✓comparing an applicant's scores only to members of his or her own racial subgroup and setting separate passing or cutoff scores for each subgroup 450. fraudulent recruitment - ✓✓✓misrepresenting the job or organization to a recruit 451. negligent hiring - ✓✓✓a company is considered responsible for the damaging actions of its employees if it failed to exercise reasonable care in hiring the employee who caused the harm 452. stereotype - ✓✓✓believing that everyone in a particular group shares certain characteristics or abilities or will behave in the same way 453. gap analysis - ✓✓✓comparing labor supply and demand forecasts to identify future talent needs 454. action plans - ✓✓✓a strategy for proactively addressing an expected talent shortage or surplus 455. scientific management - ✓✓✓breaks work down into its simplest elements and then systematically improves the worker's performance of each element 456. Four principles of Scientific Management - Taylor - ✓✓✓- Use methods based on scientifcally studying the tasks using time an motion studies. - Select, train and develop each worker rather than leaving them to passively train themselves - Provide detailed instructions and supervision to workers to ensure that they are following the developed methods. - Divide work equally between workers and managers. 457. Job characteristics model - ✓✓✓objective job characteristics including skill variety, task identity, task significance, autonomy and task feedback, lead to job satisfaction from people with a high growth need strength. 458. Skill variety - ✓✓✓the degree to which the job requires a variety of activities enabling the worker to use different skills and talents 459. task identity - ✓✓✓the degree to which the job requires the worker to complete a whole and identifiable piece of work 460. task significance - ✓✓✓the degree to which job performance is important and affect the lives and work of others 461. autonomy - ✓✓✓the degree to which the job gives the worker freedom, discretion and independence is scheduling the work and determining how to do the work 462. task feedback - ✓✓✓the degree to which carrying out the job's required activities results in the individual's obtaining direct and clear information about the effectiveness for his or her performance 463. job enrichment - ✓✓✓a job design approach that increases a job's complexity to give workers greater responsibility and opportunities to feel a sense of achievement 464. job enlargement - ✓✓✓adding more tasks at the same level of responsibility and skill related to an employee's current position influence success in the job, including knowledge, skills, abilities and personal characterstics 485. Structured Interview Technique - ✓✓✓Job Analysis Method: Job experts supply information about the job and workers that distinguishes superior performance. 486. Task Inventory Approach - ✓✓✓Job Analysis Method: Job experts generate a list of 50-200 tasks that are then grouped in categories reflecting major work functions. 487. Structured Questionnaires - ✓✓✓Job Analysis Method: Written questionnaires that assess information about worker inputs, work output, job context and job characteristics. 488. Competency Modeling - ✓✓✓identifies the worker competencies characteristic to high performance 489. Competencies - ✓✓✓broad worker characteristics that underlie successful job performance 490. job rewards analysis - ✓✓✓job analysis technique that identifies the intrinsic and extrinsic rewards of a job 491. intrinsic reward - ✓✓✓non-monetary reward derived from the work itself 492. extrinsic reward - ✓✓✓reward with monetary value 493. total rewards - ✓✓✓the combined intrinsic and extrinsic rewards of a job 494. organizational design - ✓✓✓selecting and managing aspects of organizational structure to facilitate organizational goal accomplishment 495. organizational structure - ✓✓✓the organization's formal system of task, power and reporting relationships. 496. chars of: formalization, centralization, division of labor, span of control, hierarchy 497. organizational chart - ✓✓✓diagram illustrating the chain of command and reporting relationships in a company 498. formalization - ✓✓✓the degree to which organizational rules, procedures and communications are documented 499. centralized - ✓✓✓concentrate power and decision making authority at higher levels of the organization 500. division of labor - ✓✓✓the degree to which employees specialize 501. span of control - ✓✓✓number of people who report directly to him or her. 502. hierarchy - ✓✓✓the degree to which some employees have formal authority over others 503. strategic planning - ✓✓✓process for making decisions about an organization's long-term goals and how they are to be achieved 504. mission - ✓✓✓the organization's basic purpose and the scope of its operations 505. vision - ✓✓✓long-term goals regarding what the organization wants to become and accomplish, describing its image of an ideal future 506. core values - ✓✓✓the enduring beliefs and principles that guide an organization's decisions and goals 507. business strategy - ✓✓✓how an organization will compete in a particular market 508. human resource planning - ✓✓✓aligning the organization's human resources to effectively and efficiently accomplish the organization's strategic goals 509. Leading Economic Index, Consumer Confidence Index, Exchange Rate Trends, Interest Rate Forecasts, Additional sources such as GPD and business inventories - ✓✓✓5 sources for evaluating general economic trends to forecast labor demand: 528. union models - ✓✓✓closed shop 529. agency shop 530. open shop 531. 3 types of unions - ✓✓✓industrial, trade, and employee associations 532. types of strikes - ✓✓✓unfair labor practices 533. economic 534. recognition 535. jurisdictional 536. 5 components to drug free workplace - ✓✓✓1. written policy 537. 2. supervisor training 538. 3. employee education 539. 4. EAP 540. 5. drug testing 541. influence tactics - ✓✓✓1. legitmating 542. 2. personal appeals 543. 3. assertiveness 544. 4. ingratiation 545. 5. inspirational appeals 546. 6. rational persuasion 547. 7. upward appeals 548. 8. coalition 549. 9. exchange 550. labor relations strategies - ✓✓✓compliance 551. collaboration 552. avoidance 553. defined contribution retirement plans - ✓✓✓ie 401(k), 403(b) 554. profit sharing, emp stock ownership 555. 5 of 7 reasons emp leave org - ✓✓✓lack of career dev 556. poor work climate 557. lack of challenging work 558. direction of org 559. lack of recognition 560. sourcing - ✓✓✓ID qual indv & labor markets to recruit from 561. UGESP - ✓✓✓uniform guidelines on emp selection. selecting procs advises employee in legal compliance 562. Kaplan & Norton balanced scorecard - ✓✓✓objectives 563. measures 564. targets 565. initiatives 566. job offer elements - ✓✓✓salary, sign-on bonus, relocation exp, benefits, job specific elements 567. assessment goals - ✓✓✓accuracy, fit, ethics, legal compliance 568. ratio analysis - ✓✓✓use past relationships to forecast how many emp needed for diff levels of bus activity 569. forecast external job market - ✓✓✓monitor own experience 570. bureau of labor stats 571. hackman & oldman 5 chars on which jobs differ - ✓✓✓skill variety 572. task identity 573. task significance 574. autonomy 575. task feedback 576. 4 common biases - ✓✓✓prejudice, stereotyping, perception of possibilities, ignorance 577. HRM influences performance thru - ✓✓✓what emp should do 578. what emp can do 579. what emp will do 580. What emp should do - ✓✓✓planning 581. laws & regulations 582. what emp can do - ✓✓✓staffing 583. training 584. what emp will do - ✓✓✓compensation 585. perf mgmt 586. HRM areas - ✓✓✓perf mgmt 587. staffing 588. health & safety 589. training & development 610. strategically leveraging the right talent - ✓✓✓No organization will maximize its effectiveness without 611. staffing - ✓✓✓provides the foundation for an organization's effectiveness & competitive advantage by bringing in the right talent 612. Health & safety - ✓✓✓improving this is simply ethical 613. employee management relations - ✓✓✓maintaining this is positive is important for both unionizied and nonunionized companies 614. Total rewards - ✓✓✓are more important than salary in evaluating the value of an employment opportunity 615. Training & development - ✓✓✓prepares employees to be & stay effective in their jobs 616. specific goals & feedback - ✓✓✓very important because they tell employees what they should be trying to do and whether or not they are doing it. 617. overall organizational strategic plan - ✓✓✓Just like any department, HR is a product of & aligned with this 618. Health & safety - ✓✓✓is not peripheral or optional. It's essential 619. employee management relations - ✓✓✓when healthy this improves communication, aides in problem solving & boosts performance 620. Training & development - ✓✓✓prepares employees to become organizational leaders regardless of their position 621. Health & safety - ✓✓✓improves organization function & decreases costs 622. talent - ✓✓✓responsible for executing the organizations strategy 623. leader - ✓✓✓regardless of their roles in the company, everyone is this 624. HR - ✓✓✓influences organizations performance 625. HR - ✓✓✓flows from orgs strategic plan and then flows back to the orgs success as a whole 626. Strategic HR practices - ✓✓✓Have been linked to org efficiency, revenue growth & effective risk management 627. HR strategies - ✓✓✓have biggest impact when aligned not just with org strategic plan but with each other 628. Dual theory of HRM & business performance - ✓✓✓Explains benefits of HR management to businesses 629. Dual theory of HRM & business performance - ✓✓✓Calls attention to the fact that there is not necessarily 1 best way to manage people 630. Dual theory of HRM & business performance - ✓✓✓started in 1990, last 15 years 631. Dual theory of HRM & business performance: High involvement HR practices - ✓✓✓have positive effect on company financial performance: return on investment, revenue growth, revenue per employee 632. Dual theory of HRM & business performance: High involvement HR practices - ✓✓✓include employee continuity, targeted hiring, use of teams & decentralization to get work done, variable pay, business information sharing with employees on a systematic basis, training & development, keeping status differentials to a minimum 633. Dual theory of HRM & business performance: High involvement HR practice - ✓✓✓targeted hiring 634. Dual theory of HRM & business performance: High involvement HR practice - ✓✓✓use of teams & decentralization 635. Dual theory of HRM & business performance: High involvement HR practice - ✓✓✓variable pay 636. Dual theory of HRM & business performance: High involvement HR practice - ✓✓✓business info sharing 654. Dual theory of HRM & business performance: core staff - ✓✓✓managed as high value assets, companies hope to add value to, are invested in but viewed as offering a high rate of return in the future 655. Dual theory of HRM & business performance: peripheral staff - ✓✓✓are hired primarily to keep payroll/labor costs low (labor expense control) 656. Dual theory of HRM & business performance: peripheral staff - ✓✓✓includes temps, limited time contract employees, paid time employees, outsourced staff, rented/borrowed employees 657. Dual theory of HRM & business performance: most companies - ✓✓✓have both core employees managed by high involvement HR practices AND peripheral employees managed by low involvement HR practices 658. Dual theory of HRM & business performance: low involvement HR practices - ✓✓✓can also leverage or increase return on capital investment 659. Dual theory of HRM & business performance: Proportion of employees managed via high involvement vs low involvement HR practices - ✓✓✓crucial balance companies must find in order to maximize return on labor investments 660. Dual theory of HRM & business performance: companies should include both - ✓✓✓core employees managed by high involvement HR practices AND peripheral employees managed by low involvement HR practices for maximum effectiveness 661. Dual theory of HRM & business performance: About 1/3 of US workforce - ✓✓✓employed in peripheral rather than core context 662. Dual theory of HRM & business performance: reasons why employees choose to be peripheral rather than core - ✓✓✓assignment flexibility, schedule flexibility, variety, preference for temp vs permanent, preference for part time work 663. Dual theory of HRM & business performance: peripheral staffing - ✓✓✓is both an employer & employee preference 664. outsourcing - ✓✓✓creates employment in other countries 665. Dual theory of HRM & business performance: outsourcing - ✓✓✓can reduce employment at home; however, if total labor costs are reduced, product prices decrease & demand increases 666. Dual theory of HRM & business performance: outsourcing - ✓✓✓As demand increases due to the lower product prices, more employees are hired 667. Dual theory of HRM & business performance: outsourcing - ✓✓✓in the long run there should be an employment enhancing rather than reducing effect 668. Dual theory of HRM & business performance: peripheral employment - ✓✓✓You can only add so many of these types of employees before you stop seeing monetary gains. 669. Dual theory of HRM & business performance: peripheral employees - ✓✓✓Should make up no more than 1/3 of a companies workforce if the org wants to achieve/maintain optimum financial gains 670. A strong competitive advantage - ✓✓✓An effective HR system has the potential to produce this 671. HRM - ✓✓✓Can be leveraged as a competitive advantage 672. To create energetic & fun loving work environment - ✓✓✓Visibly display your humanistic philosophy/focus on people all over your company 673. Mission statement - ✓✓✓should include a vision of how you want to treat both your internal & external customers 674. Targeted hiring strategies - ✓✓✓Clearly state what you are looking for in new hires 675. Targeted hiring strategies - ✓✓✓Refresh recruiters & interviewers to match what you state you are looking for in new hires 676. Targeted hiring strategies - ✓✓✓Hire for attitude, train for skill, look for leadership capabilities in every potential employees 696. positive culture - ✓✓✓creates an environment in which employees want to do their best 697. company culture seeks to - ✓✓✓promotes behaviors a company determine are the key to driving a companies success 698. Ethics - ✓✓✓standards of moral behaviors that define socially acceptable behaviors that are right 699. focus on culture - ✓✓✓if you want your organization to deliver the best 700. unethical & illegal - ✓✓✓are not the same. Something can be legal but unethical. 701. Ethical dilemma resolution approaches - ✓✓✓utilitarian standard, rights standard, fairness standard, common good standard, virtue standard 702. common ethical issues HR departments face - ✓✓✓include privacy, staffing, safety, layoffs, downsizing, performance appraisal & labor practices 703. ways HR promotes ethics - ✓✓✓hiring ethical employees, setting clear goals for ethical behavior, training employees in ethics, recognizing ethics issues, properly handling ethical situations, consistently holding employees accountable for ethical behavior 704. HR - ✓✓✓can be the driver/promoter of ethical decision-maker & behavior in an organization 705. Organizations influence ethical behavior by - ✓✓✓adopting codes of conduct or codes of ethics 706. codes of conduct/ethics - ✓✓✓clarify what is or isn't acceptable behavior at work 707. changes of any type - ✓✓✓generates a variety of emotions/reactions from very positive to very negative 708. HR - ✓✓✓must function as a change manager to ensure a smooth and successful transition 709. in order to survive orgs must - ✓✓✓continually adapt 710. change management - ✓✓✓is managing the impact of crucial company adaptations on an organizations people 711. Steps in managing change - ✓✓✓1. communicate threat of not changing. 2. when possible involve team in decision making. 3. minimize uncertainty. 4. celebrate successes in running towards goal. 5. keep explaining why the change is being made. 6. be as transparent as possible 712. dangers of information vacuum - ✓✓✓employees assume the worst 713. HR participates in phase 1 of mergers/acquisitions by - ✓✓✓participating in the due diligence assessment, participating in planning for the combination of orgs, developing practices that support knowledge transfer & rapid learning 714. Employment law - ✓✓✓includes Equal Employment Opportunity, Diversity & Affirmative Action 715. National Labor Relations Act 1935 - ✓✓✓Prohibits retaliation against employees seeking to unionize 716. Fair Labor Standards Act (FLSA) - ✓✓✓establishes national minimum wage and overtime rules 717. Equal pay act - ✓✓✓prohibits wage discrimination based on sex 718. Title 7 of Civil Rights Act - ✓✓✓Prohibits discrimination based on race, color, religion, sex or national origin 719. Age Discrimination Employment Act (ADEA) - ✓✓✓protects people over 40+ 720. Rehabilitation act - ✓✓✓protects qualified people with a disability 721. Veterans Era Veterans Readjustment Assistance Act or Jobs for Vets Act - ✓✓✓prohibits discrimination against and requires affirmative action for disabled vets as well as other categories of vets 737. Unfair discrimination - ✓✓✓when employment related decision/actions occur and are not linked to job based, objective or merit based content 738. protected class - ✓✓✓the group protected by the law 739. unlawful employment practices - ✓✓✓these violate federal, state or local employment law such as when people bearing a legally protected characteristic are unfairly discriminated against. 740. legally protected characteristics - ✓✓✓examples include pregnancy, religion, age, sex, gender, ethnicity, national origin, disability status, military status 741. Employment laws still exist because - ✓✓✓barriers still exist based upon legally protected characteristics 742. legally protected classes - ✓✓✓groups sharing the same legally protected characteristics 743. all employees belong to one or more - ✓✓✓legally protected class (for example: race, gender) 744. legally protected classes - ✓✓✓can change over time (such as age, pregnancy status & disability) 745. legally protected characteristics - ✓✓✓making employment decisions based on these is an unlawful or illegal employment practice 746. Affirmative action - ✓✓✓advanced by President Johnson in 1965 by Executive Order 1246 747. Affirmative action - ✓✓✓refers to proactive efforts to eliminate discrimination and its past effects 748. Affirmative action - ✓✓✓ends legalized discrimination 749. Title 7 of Civil Rights Act - ✓✓✓did not eliminate employer racism in and of itself 750. Affirmative action - ✓✓✓is an extension of the regulations enacted by Title 7 of the Civil Rights Act 751. Affirmative action laws - ✓✓✓applicable to those receiving federal monies 752. Affirmative action - ✓✓✓requires the taking of proactive steps to integrate workforces 753. Affirmative action - ✓✓✓proactive steps 754. Affirmative action - ✓✓✓its goal is to provide employment opportunities to protected classes underrepresented in employment/institutions 755. Affirmative Action - ✓✓✓government or private program designed to redress historic injustices and discrimination against specific groups by making special efforts to provide members of these groups with access to educational and employment opportunities 756. Argument against affirmative action - ✓✓✓its government interference & the redistribution of wealth 757. Most Americans agree - ✓✓✓all Americans should have an equal shot at success 758. Argument against affirmative action - ✓✓✓ensuring one group gets extra special access to jobs and school is NOT equality of opportunity, it's an advantage 759. Regents of the University of California vs Bakke in 1973 - ✓✓✓landmark case involving racial set-asides or quotas in UC's Davis Medial School 760. racial quotas - ✓✓✓also known as set-asides 761. Regents of the University of California vs Bakke in 1973 - ✓✓✓Bakke asserted that since 16 spots were set aside for racial minorities, minority students less qualified than he were being admitted to his exclusion 776. California Civil rights Initiative 1996 - ✓✓✓after passage, graduation rates among African Americans in some California universities went up but enrollment of African Americans at many UC schools declined 777. California Civil rights Initiative 1996 - ✓✓✓After passage, 1996 levels of minority enrollment at UC schools did not return to 1996 levels until 2010 778. Reasons people support affirmative action - ✓✓✓support for minority groups in the US is still needed 779. Historical issues that led to affirmative action - ✓✓✓slavery, Jim crow laws 780. 2 types of discrimination - ✓✓✓disparate treatment & adverse impact 781. disparate treatment - ✓✓✓intentional, more in your face (Think: I won't hire you because you're black) 782. disparate impact - ✓✓✓also called adverse impact 783. adverse impact - ✓✓✓occurs when employment practice has a disproportionate effect on a protected group regardless of intent 784. adverse impact - ✓✓✓usually indirect, purposeful or unintentional and usually a byproduct of a policy or employment practice, even one that appears neutral on the surface. 785. discrimination - ✓✓✓when policies or practices have an adverse effect on a protected group 786. Griggs vs Duke Power - ✓✓✓set precedent for "disparate impact" lawsuits involving racial discrimination 787. Griggs vs Duke Power - ✓✓✓Supreme court ruling forbids employers from using arbitrary tests such as IQ literacy tests to evaluate employee potential rather than ability to perform the job/job skills 788. arbitrary tests - ✓✓✓such as IQ/literacy tests, used to indirectly discriminate against minorities (who often had much less education under the segregated education system) 789. Griggs vs Duke Power - ✓✓✓Duke required HS diploma or IQ tests in order for employees to transfer to different departments even though they had no bearing on ability to perform the job 790. 4/5 rule - ✓✓✓also know as the 80% rule 791. 4/5 rule - ✓✓✓preferred method for calculating adverse impact unless samples are very small or very large 792. EEOC - ✓✓✓Equal Employment Opportunity Commission 793. Equal Employment Opportunity Commission - ✓✓✓measures the practice/effects of employer hiring practices 794. determining adverse impact using 4/5 rule - ✓✓✓1. secure all employment records and categorize by protected categories 2. Apply the 4/5 rule 795. protected classification status - ✓✓✓disclosure at the time of hire is strictly voluntary 796. 4/5 rule - ✓✓✓if the selection rate for any protected group is less than 4/5 or 80% of the rate of the employee group with the highest selection rate, adverse impact is indicated (ex. 100 of 100 white male applicants at a company are hired yet only 76 of 100 black male applicants are hired. WM selection ratio 100/100 or one. BM selection ratio 76/100 or 0.76. BM ratio 0.76 divided by WM ratio 1 = 0.76. Adverse impact on BM indicated. ) 797. 4/5 rule - ✓✓✓determine selection rate of each protected group that makes up 2% of the entire employment group, ID the group with the highest selection rate, divide the selection rate for each group by the selection rate of the group with the highest selection rate (ex. 100 of 100 white male applicants at a company are hired yet only 76 of 100 black male applicants are hired. WM selection ratio 100/100 or one. BM selection ratio 76/100 or 0.76. BM ratio 0.76 divided by WM ratio 1 = 0.76. Adverse impact on BM indicated. ) 798. 4/5 rule formula: within selected group - ✓✓✓total applicants w/i selection group hired/total number of applicants within the selected group. 816. merger & acquisitions: 3 forms of synergy value/financial reasons to merge - ✓✓✓increased revenues, lower expenses & lower overall cost capital 817. financial benefits of merger & acquisitions: - ✓✓✓by combining 2 companies, higher revenues than before 818. synergy value - ✓✓✓financial incentives to merge/acquire 819. financial benefits of merger & acquisitions: - ✓✓✓by combining 2 companies, expenses are lowered 820. financial benefits of merger & acquisitions: - ✓✓✓by combining 2 companies, lower overall cost of capital 821. strategic reasons for merging/acquisitions - ✓✓✓positioning, gap filling, organizational competencies, broader market access, bargain purchase, diversification, short term grown, undervalued target 822. strategic reasons for merging/acquisitions: positioning - ✓✓✓taking advantage of future opportunities that can be exploited when 2 companies are combined 823. strategic reasons for merging/acquisitions: gap filling - ✓✓✓1 company may have a major weakness (ex poor distribution ) whereas the other has significant strength in that area 824. strategic reasons for merging/acquisitions: org competencies - ✓✓✓acquiring human resources & intellectual capital to help improve innovative thinking/development within the org 825. strategic reasons for merging/acquisitions: broader market access - ✓✓✓acquiring a foreign company can give a co quick access to emerging global markets 826. strategic reasons for merging/acquisitions: bargain purchase - ✓✓✓it's cheaper to acquire another company than to invest internally 827. strategic reasons for merging/acquisitions: diversification - ✓✓✓it may be necessary to smooth-out earnings and achieve more consistent long-term growth and profitability 828. strategic reasons for merging/acquisitions - ✓✓✓reasons for mergers & acquisitions that tend to have the best outcomes 829. strategic reasons for merging/acquisitions: short term growth - ✓✓✓Management may be under pressure to turnaround sluggish growth and profitability 830. strategic reasons for merging/acquisitions: undervalued target - ✓✓✓the target company may be undervalued and thus, it represents a good investment 831. mergers & acquisitions process - ✓✓✓5 phases: 1. Pre-acquisition review 2: search & screen targets 3. investigate & value the target 4. Acquire through negotiation 5. Post merger integration 832. mergers & acquisitions: target - ✓✓✓company to be acquired 833. due diligence - ✓✓✓detailed review of a target companies operations, strategies, financials and other aspects to determine a good fit with the acquiring company. 834. acquiring company - ✓✓✓company doing the acquiring or company doing the purchasing 835. due diligence - ✓✓✓usually performed in Phase 3 (Investigate & Value the Target) of the merger & acquisition process 836. Phase 3 of M&A: Investigate & value the target - ✓✓✓main objective is to identify various synergy values to be realized though M&A of the Target company 837. Phase 3 of M&A: Investigate & value the target - ✓✓✓often involves investment bankers who assist in analysis of the Target company 838. Phase 3 of M&A: Investigate & value the target - ✓✓✓Includes a valuation of the acquiring company + value of the target company + value of synergies per phase - M& A costs for a total value of the combined company 839. M&A (Mergers & Acquisitions costs) - ✓✓✓include legal costs, investment bank fees, etc