HR FLORIDA 2011 PHR/SPHR CERTIFICATION PREP COURSE HR Florida

1. WELCOME HR FLORIDA 2011 PHR/SPHR CERTIFICATION PREP COURSE Sponsored by: August 28, 2011

2. SESSION AGENDA

4. Cognitive Levels

5. The Dilemma: PHR or SPHR?

6. The Biggest Pieces

7. Exam Questions: The 225 Breakdown

8. Scoring the Test: Raw, Scaled & Equating

9. What to Expect

10. Test Taking Tips

11. Sample Test Question

13. WHERE DO THE QUESTIONS COME FROM? Teams of Certified HR Professionals With Special Training in Item Development Every Question Passes 3 Levels of Review Every Question Pre-tested Before Being Used to Score the Exam

14. THE DILEMMA:PHR/SPHR? Responsibility Reporting Breadth/Scope Impact Business Knowledge Credibility

15. THE BIGGEST PIECES PHR Emphasis: Workforce Planning & Employment 26% Employee & Labor Relations 22% 48% SPHR Emphasis: Strategic Management 29% Employee & Labor Relations 18% 47%

16. EXAM QUESTIONS: THE 225 BREAKDOWN

17. SCORING THE TESTSRAW, SCALED & EQUATING Raw Scores Number answered correctly (129-144) Scaled Scores Scores 100 – 700 (Minimum 500 is passing) Equating the Scores No two tests the same Ensures comparable proficiency Adjusts minimum raw score PHR – 67% to 56% pass SPHR – 60% to 50% pass

18. WHAT TO EXPECT No Trick Questions No Trivia Questions No Dates No All of the Above No None of the Above Know Acronyms

19. TEST TAKING TIPS Relax - Don’t Study the Night Before Won’t Know All of the Answers Arrive on Time Dress Comfortably - Bring Sweater No Extra Credit for Finishing Early 1.07 Per Question

20. TEST TAKING TIPS (cont) The Basics: Read each question carefully! The Answer is NOT always “C” Read All of the Choices Answer All Questions First Chosen Answers are Usually Correct

22. Echo Options

23. Negatives

24. Absolutes

25. QualifiersB A C

26. Sample Test Question The owner of a growing authentic Japanese Steak house is looking to hire his 10th employee. The amount of applicants overwhelm him. In frustration, the owner suddenly announces that only Japanese applicants may apply. One Caucasian applicant remains. The applicant states that the owner has acted illegally and that he is going to report the owner to the EEOC. The owner _________ A. Has nothing to fear from this EEOC complaint B. Should just hire the applicant to keep him quiet C. Must go ahead and interview this applicant D. Should interview the applicant and make a contingent offer

27. EXAM & DEADLINES

28. TOTAL REWARDS Presented by Don C. Works, III, JD, SPHR Jackson Lewis LLP Orlando 407-246-8433 worksd@jacksonlewis.com

29. LAWS GOVERNING COMPENSATION Davis-Bacon Act, 1931 Copeland "Anti-Kickback" Act, 1934 Walsh-Healey Act, 1936 Fair Labor Standards Act (FLSA), 1938 Equal Pay (EPA), 1963

30. FLSA Establishes Minimum Wage Requires Overtime Pay - 1.5 hours over 40 Establishes exemptions from overtime & minimum wage (“exempt” v. “non-exempt”) Limits employment of child labor

31. FLSA EXEMPTIONS Exempt Employees Must Generally Meet Two Tests Requirements: Paid on a Salary Basis, With a Salary of At Least $455/week and Without Improper Deductions Perform Exempt Duties

32. EXECUTIVE EXEMPTION Employee’s Primary Duty Must be the Management of an Enterprise or a Department or Subdivision and: – Direct the Work of at Least Two or More FTE’s (or Equivalent PTE’s) – Authority to Hire, Fire or Make Recommendations – Recommendations are Given Particular Weight

33. ADMINISTRATIVE EXEMPTION Primary Duty – Office or Nonmanual Work Directly Related to the Management or General Business Operations of the Employer or the Employer’s Customers Requires Exercise of Discretion and Independent Judgment in Matters of Significance

34. PROFESSIONAL EXEMPTIONS Learned Professionals: Requires Advanced Knowledge Acquired by Prolonged Instruction in a Field of Science or Learning Intellectual in Nature Requires Exercise of Discretion and Judgment

36. Perform in a Recognized Field of Creative or Artistic Endeavor

37. HIGHLY COMPENSATED EMPLOYEE EXEMPTION A Highly Compensated Employee Must: Minimum Compensation of at least $100,000.00 ($455/week of which must be paid on a salary basis) Perform One of the Job Duties of an Exempt Administrative, Executive, or Professional

38. COMPUTER RELATED OCCUPATIONS Salary of $455 Per Week or $27.63 Per Hour Performs higher level computer work involving design, analysis and implementation of systems “Help desk” positions not exempt

39. OUTSIDE SALES EXEMPTION An Employee Must: Have a Primary Duty Involving Making Sales or Obtaining Orders and Contracts Be Customarily and Regularly Engaged Away From the Employer’s Place of Business Note: No salary requirement

40. PERMISSIBLE DEDUCTIONS FROM SALARY Full day absences due to sickness or disability if deductions under a bona fide plan, policy or practice of providing wage replacement benefits for these types of absences Good faith full day disciplinary suspensions for infractions of written workplace conduct rules First or last week of employment, as long as the employee is paid a proportionate share of salary for time actually worked Penalties imposed in good faith for violating safety rules of “major significance” FMLA leave including both partial and full day absences To offset amounts received as payment for jury fees, witness fees or military pay

41. SAFE HARBOR “Salary Basis” will not be destroyed if: Employer Has a Clearly Communicated Policy Prohibiting Improper Pay Deductions Employees Are Reimbursed for Any Improper Deductions Employer Makes a Good-Faith Effort to Comply in the Future

42. FLSA MINIMUM WAGE REQUIREMENTS $7.25 July 24, 2009 $2.13 Per Hour Tip Credit Unchanged – Cash Wage Plus Tips = Minimum Wage

43. FLSA BASIC OVERTIME REQUIREMENTS Sets Rate of Overtime Pay (1.5 X Regular Pay) Requires Overtime for “Hours Worked” Workweek Is Any Fixed, Recurring Period of 168 Hours (7 Days X 24 Hours)

44. COMPENSATORY TIME Overtime Usually Must Be Paid in Cash Public-Sector Employers May Grant Compensatory Time Off Private-Sector Employers May Not Pay With “Comp” Time

45. PORTAL-TO-PORTAL ACT Defines the Beginning and End of the Workday Provides Guidelines On: On-call/standby Time Preparatory/Concluding Activities Waiting Time Meals and Breaks Travel Time Training Time

46. EQUAL PAY ACT Equal Pay for Equal Work: Effort Working conditions Responsibility Skills

47. DIRECT VERSUS INDIRECT COMPENSATION Base Pay Differential Pay Incentive Pay Selected Employees Cash Recognition Legally Required Benefits Income Replacement STD/LTD Medical Deferred Pay Pay for Time Not Worked/Unpaid Leave

48. ECONOMIC FACTORS THAT IMPACT COMPENSATION SYSTEM Inflation – COLA’s Salary Compression Interest Rates Foreign Competition Wage/Price Spiral Economic Growth Productivity/Labor Market Trends

49. COMPENSATION SYSTEM OBJECTIVES Attract Motivate Retain Competitive Equitable

50. MEASURES OF PAY EQUITY Internal Equal Work = Equal Pay Comparable Worth External Match, Lead, Lag Industry Occupation Geography

51. COMPA-RATIOS Divide Employee Pay Level by the Midpoint Example: Pay Range $10 - $15/Hour Midpoint $12.50 Employee Salary $11.00 Compa-Ratio .88%

52. LEAD VERSUS LAG STRATEGIES Compa-Ratios - Indicators How Actual Wages Lead, Lag or Match Market Compa-Ratio Below 1.0 Means Employee Wages are Less Than Midpoint (Lag) Compa-Ratio Above 1.0 Means Wages Exceed the Midpoint (Lead)

53. JOB EVALUATION Used to Determine Relative Worth Of Jobs Derived from Job Analysis Non-Quantitative/Quantitative

54. JOB EVALUATION METHODOLOGY Job Ranking Paired Comparison Point-Factor Factor Comparison Market Based

55. SELECTED EMPLOYEES

56. GLOBAL COMPENSATION APPROACHES Home Leaves Travel Allowances Educational Allowances for Children Tax Equalization COLA’s Housing & Utilities Allowance Relocation & Moving ForeignService & Hardship Premiums

57. GLOBAL COMPENSATION APPROACHES Balance Sheet Global Market Tax Equalization Plan

58. INDIRECT COMPENSATION Designed to: Reward Continued Employment Retain Good Employees Improve Productivity, Work Quality, Competitiveness Protect Employees’ Physical/Financial Well-Being Affordable for Employers Attractive to Employees

59. Review Organizational Strategy Review Compensation Philosophy Review Employee Needs Review Current Benefits Conduct Gap Analysis BENEFIT NEEDS ASSESSMENT

60. GAP ANALYSIS Revise Benefits That Are Not Meeting Employee or Organizational Needs

61. LEGALLY MANDATED BENEFITS Social Security/Medicare Unemployment Insurance Workers’ Compensation COBRA FMLA

62. WORKERS’ COMPENSATION StateInsurance Program Paid for by the Employer According to the State by Its Own State Law and by the Federal Government for Federal Workers Provides Income Continuation and Reimbursement of Accident Expenses for Employees Who Are Injured on the Job

63. CATEGORIES OF WORKERS’ COMPENSATION BENEFITS 1. Permanent and Total Disability 2. Permanent and Temporary Partial Disability 3. Survivor’s Benefits in Cases of Fatal Injuries 4. Medical Expenses 5. Rehabilitation

64. EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA) Applies to Retirement Plans, Medical Plans, Group Life Insurance, Long Term Disabilities Basic Standards must be Met for Benefit Programs to Maintain their Tax-Favored Status Designed to Protect Employees in Private Sector

65. ERISA (continued) Two minimum options for vesting: 1. Cliff Vesting 2. Graded

66. ERISA (continued) Pension Benefit Guaranty Corporation (PBGC)– Guarantee of Payment (With Limits) to Employees Covered by Terminated Pension Plans Revenue Act Of 1978 – Section 125 - Can Offer Favorable Tax Treatment on Benefits – Section 401k - Allow Tax Favored Pay Deferrals Toward Retirement Retirement Equity Act (REA), 1984- Legal Protection for Spousal Beneficiaries

67. REQUIRED COMMUNICATION ERISA Requires: Summaries of the Plan Description, Annual Report, and Material Modifications Filing Form 5500 With the IRS Other Required Communications Include: Continuation of Benefits’ Notice Explanation of Stock Options (SEC Regulation) Posting of Workers’ Compensation Benefits (Required by States)

68. Consolidated Omnibus BudgetReconciliation Act (COBRA) Employers Who Provide Health Care and Employ More Than 20 People Must Provide Continuation Benefits Exception: Employment Terminated Due to Gross Misconduct

69. COBRA QUALIFYING EVENTS Voluntary Termination Involuntary Termination of Employment for any Reason Other Than Gross Misconduct Disability as Determined by the SSA Reduction in Hours Resulting in Loss of Benefits Divorce or Legal Separation From the Employee Employee Becomes Eligible for Medicare Dependent Ceases to Be a “Dependent Child” Under Plan Rules Death of the Employee

70. CONTINUATION PERIODS (Months) Termination of Employment for Gross Misconduct 0 Termination of Employment for any Reason other than Gross Misconduct 18 Reduction in Hours 18 Employee Is Disabled at the Time of Reduction in Hours or Termination 29 Divorce or Death of the Employed Spouse 36 Dependent Child Loses Eligibility Status 36

71. WHEN DOES A COBRA COVERAGE END? Premium for Coverage Is Not Paid Employer Terminates Group Health Coverage Beneficiary Becomes Covered Under Another Group Health Plan Qualified Beneficiary Is Entitled to Medicare Benefits

72. COBRA(continued) Four Notices Employers Must Provide: 1. General Notice 2. Election Notice 3. Notice of Unavailability of Continuation Coverage 4. Notice of Termination of Continuation

73. FAMILY AND MEDICAL LEAVE ACT (FMLA) Provides 12 Weeks of Unpaid Leave for: Serious Health Condition of Employee, Spouse, Parent or Child; Birth, Adoption or Placement & To Care for Child; A Qualifying Exigency; Being the Spouse, Child, Parent or Next of Kin of a Covered Service Member with a Serious Injury or Illness. Covered Employers - 50+ Employees Eligible Employees – 12 Months/1,250 Hours at Worksite with 50 or more employees within 75 miles a. Health Benefit Continuation b. Reinstatement Rights c. Intermittent Leave (right to transfer to accommodate)

74. Uniformed Services Employment & Reemployment Rights Act “USERRA” Provides protected leave for up to 5 years of military service Guarantees reinstatement to job individual would have held but for leave (escalator principle) Must permit continuation of health care coverage for up to 24 months (can require payment of up to 102% of premiums)

75. OLDER WORKERS BENEFITPROTECTION ACT (OWBPA) 1990 Covers Compensation, Terms, Conditions and Privileges Provided Under Employee Benefit Plans Must Be Given 21 or 45 Days to Consider Any Agreement Under ADEA Group Terminations or Retirement Programs -Provide 7 Days to Revoke Agreement After Signing Eligible Employees Must Be Provided With Certain Demographic Information As a Part of Group Term Release or ADEA Claims

76. OMNIBUS BUDGET RECONCILIATION ACT (OBRA) Reduces Compensation Limits in Qualified Retirement Programs Require That Health Plans Honor Qualified Medical Child Support Orders for Dependent Children of Employees When Issued by a Court Group Health Plans Must Provide Coverage for Dependent Adopted Children When Those Children Are Placed for Adoption in a Covered Employee’s Home

77. Health Insurance Portability &Accountability Act (HIPAA) Limits Exclusion for Preexisting Conditions Ensures Availability of Coverage Guarantees Renewability Allows Employees to Change Jobs Without Concern of Losing Coverage Restricts "Actively at Work" Requirements to Health Plan Eligibility Established Anti-discrimination Rules for Plan Participants

78. QUALIFIED DEFERREDCOMPENSATION PLANS Help to Recruit and Retain Employees Allow People to Retire, Creating New Employment Opportunities Provide Tax Deferrals for Owners and Highly Compensated Employees (HCEs)

79. CHARACTERISTICS OFQUALIFIED PLANS Under ERISA, Plans Must: Be in Writing and Be Communicated to Employees Be Established for Exclusive Benefit of Employees/beneficiaries Satisfy Rules Concerning Eligibility, Vesting, and Funding Not Favor Officers, Shareholders, or HCEs

81. Employer Funded

82. Employer Bears the Risk

84. Fund Performance Determines Benefits

85. CASH BALANCE PLAN Type of Defined Benefit Plan Defines Benefit in Terms of Stated Account Balance Employers Assume Investment Risks and Rewards Is Portable At Retirement Employees Receive: Lifetime Annuity Lump Sum

86. NONQUALIFIED DEFERREDPLANS Provide Additional Benefits to Key Executives Employees Defer Reporting Income; Not Subject to the Limits Placed on Qualified Plans Employer Contributions Are Not Deductible Funds Are not protected by ERISA

87. HEALTH-CARE PLANS Indemnity (Fee-for-service) Plans Full-choice Plan Employees Can Go to Any Qualified Physician Fees Are Generated When Services Are Used Managed Care Plans Prepaid Health-care Plans Physician Is Paid Per Capita (Per Head) Rather Than for Actual Treatment Provided Members Enroll and Pay a Set Monthly or Annual Fee

88. TYPES OF MANAGED CARE PLANS Health Maintenance Organizations Group, Staff, and IPA Models Preferred Provider Organizations Point-of-service Organizations Exclusive Provider Organizations Physician Hospital Organizations

89. OTHER HEALTH CARE OPTIONS Dental Plans Vision Care Plans Prescription Drug Plans Employee Assistance Programs Alternative health care

90. INCOME REPLACEMENTPROTECTION Sick Leave Long-Term Disability Short-Term Disability

91. CAFETERIA PLANS SECTION 125 Premium-only Plans Employees Receive Favorable Tax Treatment on Benefits Already Offered Flexible Spending Accounts Pretax Dollars Are Set Aside to Pay for Dependent Care or Unreimbursed Expenses Must “Use It or Lose It” Full Cafeteria Plans Benefit Credits Are Used to Purchase Benefits Unused Credits Can Be Cashed Out

92. CAFETERIA PLANS – ADVANTAGES Tailored to Employee’s Needs; Change as Employees’ Lives Change Efficient Use of Benefits Employer Sensitivity to All Program Costs and Employee Cost Sharing Employee’s Awareness of Benefits and Cost Favorable Tax Treatment Employer’s Cost of Benefits Can Be Lowered Over Time

93. CAFETERIA PLANS – DISADVANTAGES Inappropriate Benefits Chosen Complicated Record Keeping Adverse Selection (Benefits Selected Only by Employees Who Fully Utilize Those Benefits) NondiscriminationRequirementsIRSCode

94. LIFE INSURANCE PROTECTION Salary Continuation Group-Term Life Insurance Excess Group-Term Life Insurance Dependent Group Life Insurance Split-Dollar Plans

95. PAID LEAVE Paid Leave for Events: Holiday Pay Vacation Pay Community Service Pay Leave of Absence Bereavement Leave Paid-Time-Off Banks Lumped Into One Account

96. BENEFITS &ORGANIZATIONAL LIFE CYCLE

97. WORKFORCE PLANNING Presented by Don C. Works, III, JD, SPHR Jackson Lewis LLP Orlando 407-246-8433 worksd@jacksonlewis.com

98. EQUAL EMPLOYMENT OPPORTUNITY Decisions Must Be Job and Business Related Hiring Work Assignments Compensation Promotions Terminations

99. PURPOSE OF EQUAL EMPLOYMENT OPPORTUNITY INITIATIVES Prevent Employee Discrimination In The Workplace Take Remedial Action To Offset Past Employee Discrimination

100. TWO TYPES OF DISCRIMINATION Disparate Treatment – Intentional Act Direct Discrimination Unequal Treatment Decision Based on Protected Characteristic Prejudiced Actions Different Standards For Different Groups Disparate Impact – Unintended or Intentional Indirect Discrimination Unequal Consequences Or Results Decision Not Based on Protected Characteristic Unintentional Discrimination Neutral Actions Same Standards But Different Consequences

101. ADVERSE IMPACT Occurs When There Is A Substantially Different Rate Of Selection In Hiring, Promotion, or Other Employment Decisions Which Works To The Disadvantage Of Members Of Protected Groups 4/5ths Rule – success rate of protected group less than 80% of other group

102. 2007 EEO-1 REPORT OVERHAUL "Two or more races, not Hispanic or Latino"; "Asians, not Hispanic or Latino"; "Native Hawaiian or Other Pacific Islander, not Hispanic or Latino"; "Asian and Pacific Islanders" Category Deleted

103. EEO-1 REPORT OVERHAUL "Officials and Managers" Divided Into Two Levels Based on Responsibility and Influence Within the Organization: (1) “Executive/Senior Level Officials and Managers” (2) “First/Mid-Level Official and Managers” Non-Managerial Business and Financial Occupations Moved From the "Officials and Managers" Category to the "Professionals" Category

104. Title VII of the Civil Rights Act Prohibits discrimination against protected classes. Makes it unlawful to deny career advancements to protected classes. Prohibits discrimination because of pregnancy, childbirth, or related conditions.

105. Title VII of the Civil Rights Act Provides equal opportunity for training. Prohibits sexual harassment. Prohibits compensation discrimination.

106. Age Discrimination in Employment Act Age 40 and over Older Workers Benefit Protection Act Release language Group versus individual releases

107. Americans with Disabilities Act (ADA) Protects qualified individuals with a disability Prohibits medical exams or inquiries about a disability, except in certain situations Requires reasonable accommodation that enables employees to perform essential functions as long as there is no undue hardship

108. Who Is Protected By ADA? Individual with a physical/mental impairment that substantially limits a major life activity Record of impairment Regarded as having an impairment Associated with a disabled person Can perform the essential functions of the job with or without reasonable accommodation

109. Other Legislation Which Impacts Workforce Planning Pregnancy Discrimination Act Immigration Reform & Control Act Rehabilitation Act (contractors - $2,500+) Worker Adjustment & Retraining Notification Act (“WARN”) EPPA Fair Credit Reporting Act

110. FORCES WHICH IMPACT PLANNING Organization’s Direction Internal Labor External Labor Business Change

111. JAC FITZ-ENZ – P.E.R.M. MODEL Projections Evaluate - Key Group Review Recruitment Plan Measurement - ROI

112. P.E.R.M. ROI – INDICATORS Planning - % of Jobs Filled Internally Evaluation – Past Source Performance & Tenure Recruitment – Future Source Cost, Time, Quality Measurement – Business KPI’s Affected

113. ANALYSIS OF RECRUITMENT SOURCES Sourcing Media Advertising Agencies Referrals Events Selection Methods Screening Assessment Interviews Testing

114. INCREASING INTERVIEWING ACCURACY All Voters Must Know Position Delay Yes/No Decision Multi-Factor Assessment Give Each Interviewer 2-3 Traits to Assess Panel Interviews Formal Debriefing ~ Lou Adler

115. WORKFORCE PLANNING METRICS Cost Per Hire Time to Fill Yield Ratios – Used to evaluate recruiting sources Adverse Impact

116. JOB ANALYSIS DEFINED Systematic study of a job to determine qualifications, responsibilities, conditions and relationship to other jobs Identify Tasks, Duties & Responsibilities Evaluate KSAs (Knowledge, Skills and Abilities)

117. ORGANIZATIONAL LEVEL Organizational Development Function & Responsibilities Development of Organizational Divisions

118. ORGANIZATIONAL LEVEL Classification & Compensation Creation of Job Families Pay Equity

119. JOB LEVEL Recruitment & Selection Job Description Job Specifications - KSAs

120. JOB LEVEL Training & Performance Management Job Relevant Goals Standards of Performance

121. DISSECTING TASKS Job Category Responsibility Task Statement What Makes a Good Task Statement?

122. TASK STATEMENT Behaviorally Based Action Target How Why

123. TASK STATEMENT Analyzes jobs using various methodologies within federal, local, and professional standards in efforts to define levels of responsibility & specific tasks; as well as the level of specific KSAs, necessary for successful performance.

124. KSAs vs. Competencies Knowledge – Specific Skill – Degree of Performance Ability – Mental or Physical Capacity Competencies: Groupings of KSAs that Relate to a Particular Purpose or Function

125. METHODOLOGY 5 PHASES OF JOB ANALYSIS Identification of Function & Responsibilities Task Statement Data Collection Task Statement Development & Refinement KSA Development & Refinement Documentation Report

126. JOB ANALYSIS METHODOLOGY CLOSE UP PHASE I – ORGANIZATIONAL LEVEL Purpose & Responsibilities of Job Place in Organizational Hierarchy Location & Work Environment

127. JOB ANALYSIS METHODOLOGY CLOSE UP PHASE II – INITIAL TASK STATEMENT Collect Existing Task Statement Information Develop List of Tasks & Responsibilities – Strategic Tools: Surveys, Questionnaires, Round Tables, Workplace Shadowing

128. Job Analysis MethodologyCLOSE UP PHASE III – TASK DEVELOPMENT & REFINEMENT Consolidate & Refine Frequency & Duration Importance Levels

129. Job Analysis MethodologyCLOSE UP PHASE IV – KSA DEVELOPMENT & REFINEMENT Determine KSAs Needed to Effectively Perform Each Task Minimum Qualifications Competency Model Development

130. Job Analysis MethodologyCLOSE UP PHASE V – DOCUMENTATION REPORT Statistically Analyze All Task & KSA Data Create Written Job Descriptions & Specs Determine Classification & Compensation Develop Plans for Selection & Performance Management Prepare Report Documenting Methodology & Results

131. USES OF JOB ANALYSIS Recruiting Compensation Career Paths Succession Planning Training Organizational Design Performance Standards Performance Evaluations Time Management Compliance AAP Legal Defense

132. JOB DESIGN Rational Approach – Frederick Taylor – work should be arranged so that employees can be efficient & output maximized Job Enrichment – Frederick Hertzberg – design work for employees’ personal enrichment

133. RELIABILITY & VALIDITY Reliability is the Ability of an Instrument to Measure Consistently and with Relative Absence of Error

134. RELIABILITY & VALIDITY Validity is the Ability of an Instrument to Measure What it is Intended to Measure Validation Answers Two Questions: What does the instrument measure? How well does the instrument measure it?

135. RELIABILITY & VALIDITY A Reliable Item is Consistent May Not Be Valid

136. RELIABILITY & VALIDITY Reliability Can Be Measured By : Parallel Forms – uses two forms with different items – scores correlated for each individual Test/Retest – measures degree to which scores are the same over time Internal Consistency – equivalent parts of test taken separately and results correlated

137. RELIABILITY & VALIDITY Content Validity – Simplest Job Analysis Key Construct Validity – Most Complex Measures Theoretical Construct or Trait Criterion-Related Validity – (Preferred) Trait of Work Behavior that is Predicted by a Test

138. CRITERION RELATED VALIDITY Concurrent Validity – Test is Given to Current Employees – Scores Correlated with Performance Ratings Predictive Validity – Before the Fact Measure – Test Results Correlated with Subsequent Job Performance Usually After 12 Months (Preferred by EEOC)

139. RISK MANAGEMENT Presented by Don C. Works, III, JD, SPHR Jackson Lewis LLP Orlando 407-246-8433 worksd@jacksonlewis.com

140. Definition Risk Management is the use of insurance and other strategies in an effort to prevent or minimize an organization's exposure to liability in the event a loss or injury occurs.

141. Categories of Operational Risk Personnel Risk Physical Assets Technology Relationships External/Regulatory

142. OSHA General Duty Clause Each employee has the right to “a place of employment which is free from recognized hazards that are causing or are likely to cause death or serious physical harm.”

143. Employee Responsibilities & Rights Comply with rules Right to safety & health Right to request inspection Right to file complaint Right to be informed of workplace hazards Right to request action to correct hazards Right to file a discrimination/retaliation complaint Right to receive training

144. Best Known OSHA Standard Hazard Communication (also known as the Employee Right-to-Know Law) It requires: An inventory of hazardous chemicals An evaluation of chemical hazards Communication / Training MSDS

145. OSHA Inspection Priorities Imminent danger Catastrophes & fatal accidents Employee complaints High-hazard industries Follow-up inspections Are they in order of priority?

146. Purpose of Safety Programs Prevent work-related injuries, accidents or incidents Definitions: Incident – deviation from any acceptable standard Hazard – incident without adequate controls applied

147. Classification of Incidents Unsafe Acts Failing to use protective equipment Removing safety devices Using equipment improperly Dressing improperly Operating equipment at unsafe speeds Performing unauthorized procedures Unsafe Conditions Defective equipment Hazardous process Noise, heat, dust Fumes, chemicals Poor ventilation Improper lighting Unsafe floor surfaces Unsafe stacking, storing Inadequate personal protection equipment

148. Accident Investigation Purpose of investigations? Most important result of investigations? Priorities at the scene?

149. Health Health Hazards Infectious Diseases Environmental Health Hazards Fetal Protection Policies Employee Assistance Programs Can you require EAP treatment? Employee Wellness & Fitness Programs Chemical Dependency

150. Security Fire Industrial Sabotage Trespassing Employee Theft Natural Disasters Theft/Sabotage of Classified Information Violence Terrorism

151. Theft and Fraud 30% of employees admit stealing 40% hits companies under 100 workers Technology has made it easier Goes up in a down economy Why some organizations make employees take 1 – 2 weeks off

152. Security Risk Analysis Vulnerabilities are considered first Specific or generic Probability of occurrence Virtually certain Highly probable Moderately probable Improbable Assessment of impact or cost Level 1 (fatal to org.), 2, 3, or 4 (negligible)

153. Business Continuity & Recovery Disaster Recovery Plan procedures to recover lost data in the event of a disaster Emergency Response/Preparedness Plan describes the action to be taken by all personnel to respond to natural or human disasters

154. Can the Workplace Cause Stress & Violence? Harassment Poor management style Pressure for increased productivitynrealistic job expectations Mis-handled job terminations Untrained supervisors Lack of zero tolerance for inappropriate behavior

155. Workplace Privacy Employer Privacy Concerns Protection of Propriety Information Identify what needs protecting Get confidentiality & nondisclosure agreements Technology Security Risks Employee Privacy Concerns Identify Theft Monitoring employees

156. Employee & Labor Relations

157. Impact of the Law on Employee Relations Employee Rights under the NLRA Can organize themselves Can discuss their salaries EEO Laws Common Law Employment-at-Will Public policy exceptions Implied contract

158. Impact of the Law on Employee Relations (con’t) Common Law Tort Claims Negligent foursome Defamation Fraudulent misrepresentation Others Contract Issues Oral contracts Non-compete agreements Others

159. Characteristics of Union-Free Organizations Fair and consistent treatment Access to career opportunities Feedback mechanisms Communication programs Problem-solving procedures Trained supervisors/ managers Rewards and recognition

160. Employee Involvement Strategies Job Design Alternative Work Schedules Teams Employee Suggestion Systems Employee Surveys Focus Groups

161. Problem-Solving Procedures Discipline Process Alternative Dispute Resolution (ADR) Prevents escalation of issues Private forum Cost-effective An umbrella term for over 23 options Must have basic elements of due process Becomes a condition of employment

162. The MOST beneficial outcome of an effective employee discipline process is: A structured method for addressing substandard performance. A productive workforce with high levels of personal accountability A reduction of legal challenges to termination decisions. Workforce compliance with rules and performance standards.

163. Labor Relations Legislation National Labor Relations Act (NLRA) Pro-union Labor-Management Relations Act (LMRA) Established balance of power Union shops, right-to-work states Labor-Management Reporting and Disclosure Act (LMRDA) Protect employees from corrupt unions Others

164. Labor Relations Terms

165. Union Organizing Initial contact may occur via: A union organizer contacting employees Management contacting a union Employees contacting a union

166. Union Organizing Tactics Inside organizing Salting Leafleting Meetings Home visits Internet campaigns Others

167. Picketing A form of free speech Organizational picketing Induce employees to accept the union Recognitional picketing Obtain the employer’s recognition of the union Informational picketing Advise the public

168. Union Organizing Campaign Petition for Certification Authorization Cards Election Campaign Election Certification Of Results (no union elected) Certification of Representative (union elected) Contract Negotiation (collective bargaining)

169. Managements Rights in a Campaign Take the initiative State an opinion Point out the consequences of a strike Communicate through supervisors & meetings State that improvements are notdependent on unionization Point out the financial costs of a union

170. Employer Unfair Labor Practices (ULPs) Threaten Interrogate Promise Spy Known as “TIPS” or “SPIT” Don’t forget discrimination or retaliation

171. Union Organizing Campaign Authorization Cards Primary method of employees showing interest Union must have 30% of eligible employees sign to proceed Usually will not petition for an election until more than one-half of employees sign Are legal documents Don’t touch the cards if presented

172. Petition for Certification Election is most traditional route toward union recognition – 90% Authorization cards are primary example of supporting evidence Consent Election(waive pre-election hearing) Directed Election Voluntary recognition can occur, but happens infrequently

173. NLRB Pre-Election Hearing After determining validity of signatures and sufficient interest, the following are issues are decided: Voter eligibility Determination of the bargaining unit Community of interests Geography Others Time, date or place of the election

174. Election Excelsior List Names and addresses of all eligible bargaining unit employees Voter Eligibility On payroll for at least 3 payroll periods Campaign Not within 24 hours of election

175. Election Process Looks like a general election No campaigning around polling area Both parties have representatives Either party may challenge voter eligibility NLRB counts unchallenged ballots Simple majority of voting employees wins 50% plus one person

176. Other Paths to Unionization Employer volunteers recognition Union convinces the employer to grant recognition Union convinces the employer to witness its majority status Counting the authorization cards ULPs

177. Unfair Labor Practices by the Employer TIPS Employee committees Electromation Case Crown Cork and Seal Company Case No negotiating or proposing Discouraging union membership illegally Retaliation Refusal to bargain

178. Unfair Labor Practices by the Union Restraints and coercion Failure to provide fair representation Discrimination against non-members Excessive membership fees Featherbedding Refusal to bargain

179. Collective Bargaining Definition – the process by which management and union representatives negotiate the employment conditions for a particular bargaining unit Must be done in good faith Results in (ideally) – a collective bargaining agreement (CBA)

180. Collective Bargaining Subjects Mandatory Subjects Issues identified specifically by labor laws or court decisions as subject to bargaining Wages, benefits, working conditions, overtime, etc. Can only strike legally over mandatory subjects Permissive Subjects Those that may be bargained but are not obligatory Benefits for retirees, settlement of ULPs, etc. Illegal subjects Those that are unlawful by statute

181. Collective Bargaining – Public Sector Subjects are limited – why? No mandatory subjects Public sector employees generally not permitted to strike No negotiation over wage rates States may differ

182. Collective Bargaining Patterns Pattern (parallel) Bargaining Union focuses on one employer and then negotiates similar contracts with competitors Auto industry Coalition (multiple employer) Bargaining More than one employer negotiates with union Trucking industry / coal mining industry Coordinated Bargaining Employer bargains with two or unions simultaneously Airline industry

183. Contract Clauses Union security clauses Union shop Agency shop Management rights Bumping Strikes and lockouts Zipper clause

184. Enforcement Provisions Grievance procedure Specific steps Weingarten rights Arbitration Voluntary Compulsory Binding

185. Protected Concerted Activities Lockout When management shuts down operations Strikes A refusal by employees to work Economic strikes (can replace strikers) Unfair labor practices strikes (must reinstate strikers) Wildcat strikes (unprotected) Sympathy strikes

186. Protected Concerted Activities (con’t) Picketing Informational Common situs picketing Consumer picketing Secondary Boycotts Generally illegal Exceptions: Ally doctrine Double breasting Others

187. Decertification Very similar to election process 30% of employees sign a petition Majority of voting employees decide Reasons: Inability to negotiate the first contract Fair treatment of employees by employers Poor job of unions providing service Others

188. Questions?

189. Human Resource Development

190. Legislation Affecting HRD Copyright Act Public domain Who owns copyrights? Fair use U.S. Patent Act Trademark Act Title VII, Civil Rights Act Age Discrimination in Employment Act American with Disability Act

191. Functions of HRD Provides employees with the skills to meet current & future job demands Aligns & links HRD learning objectives, activities, and outcomes with organization’s goals & business needs Includes: Organizational Development Training & Development Career Development

192. The Learning Organization Learning is tied to business objectives Change is embraced Assumptions are always questioned Learning is both a part of work & a part of everyone's job description Failures become opportunities to learn Employees take responsibility for their own learning

193. Knowledge Management The process of creating, acquiring, sharing and managing knowledge to augment individual & organizational performance Facilitates information exchange & transfer between employees Taps expertise of those leaving the organization

194. Global Issues for HRD Organization change and knowledge management become more complex Western motivation models and leadership theories may not apply Demand for multilingual/multicultural training is increasing Cultural issues have a greater influence on the selection of appropriate training

195. Competency Models A set of behaviors encompassing skills, knowledge, abilities, and personal attributes May be defined on an organizational or individual basis Core competencies differentiate an organization from its competition and provides for a competitive advantage

196. Organizational Development Enhances the effectiveness of an organization and the well-being of its members Occurs on both a large & small scale Is change management Primary roles for HR professionals: Serve as change agents Conduct evaluations of OD interventions

197. OD Intervention Strategies Interpersonal strategies Deal with work relationships Technological strategies Focus on processes Include job design & work flow analysis Structural strategies Look at how the structure of the organization is helping or hindering the organization

198. Quality InitiativesISO 9000+ / Six Sigma / LeanQuality Tools Process-flow analysis Control chart Cause-and-effect diagram Scatter diagram Histogram Check sheet Pareto chart

199. Training & Development The ADDIE Model Assessment or Analysis Design Development Implementation Evaluation

200. Types of Training Programs Orientation and on-boarding Skill development Supervisory/managerial Defense in lawsuits Corporate responsibility Other

201. Evaluation of Training Programs Don Kirkpatrick’s Model Level One – did you like it? Reaction Level Two – did you learn anything? Measuring learning Level Three – did anything change? Measuring behavior Level Four – any affect on organization? Measuring results

202. Learning and Motivation Assumptions about adult learning Obstacles Learning styles Auditory Visual Kinesthetic Learning levels Intrinsic vs. extrinsic factors

203. Which of the following intrinsic factors affect an employee’s willingness to do the job? Opportunities for recognition and relationships with co-workers Opportunities for personal growth and achievement Working conditions and job security Job environment and pay

204. Motivational Theories Maslow’s Hierarchy of Needs Herzberg's Motivation-Hygiene Theory Vroom’s Expectancy Theory Skinner’s Behavioral Reinforcement Theory Equity Theory McClelland’s Theory Theory X and Theory Y

205. A first-line supervisor desires a management position. However, only college graduates seem to be promoted. The employee decides not to enroll in college since balancing work and school would be too hard. According to Vroom, the employee Does not believe that a college degree will lead to a management job. Does not want a management position badly enough. Does not trust company management. Lacks confidence in himself.

206. Career Development Career Planning Focus on the individual Career Management Focus on the organization Talent Management Integration of HR processes that attract, develop & retain employees that will meet current & future business needs

207. Career Development Programs Employee self-assessment tools Coaching Mentoring Continuing education Committee/team participation Apprenticeship Job rotation, enlargement and enrichment Fast-track programs

208. Career Development Programs (con’t) Internal mobility Promotions Relocations Transfers Demotions ??? Dual ladder programs Succession planning / replacement planning Expatriation and repatriation

209. Leadership & Management Which is more important? Are leaders born or made? How are leaders developed? Can leadership be taught and learned? What are some obstacles to developing leaders?

210. Leadership Theories Trait Theories Behavioral Theories Situation Leadership Theory Hersey-Blanchard’s Theory Behavioral Leadership Theories Blake-Mouton’s Theory Contingency Theories Fiedler’s Theory Transformational/Transactional Leaders

211. Issues Affecting Leadership Gender differences Generational characteristics Cross-cultural differences Emotional intelligence

212. Performance Management Organizational values and goals Provide a sense of purpose and priorities Performance standards Set expectations Identify and measure behaviors Provide a direct relationship between job description, job competencies and performance goals and objectives Point out important aspects of the job

213. Measurement & Feedback Performance appraisals Provide feedback and counseling Help in allocating rewards and opportunities Help in determining employees’ aspirations and planning developmental needs Should be formal and informal Should be conducted continuously, not as an annual event Should never be a surprise

214. Appraisal Methods Category rating methods Graphic scale Checklist Forced choice Comparative methods Ranking Paired comparison Forced distribution

215. Appraisal Methods (con’t) Narrative methods Essay Critical incidents Field review Special methods Management by objectives Behaviorally anchored rating scale

216. Errors in Performance Appraisal Halo/horn effect Recency Primacy Bias Strictness Leniency Central tendency Contrast

217. Other Considerations in PerformanceManagement Legal ramifications The appraisal meeting Trained supervisors Documentation

218. Questions?

219. Strategic Management

220. The Evolving Role of HRM HR Models Advice / Service / Control Strategic / Operational / Administrative Dimensions of Change Workplace environment Globalization Offshoring vs. outsourcing Ethics Mergers & acquisitions

221. Management Functions by Fayol Planning Organizing Directing Controlling

222. Critical Management Skills Managing Projects Interpersonal responsibilities Informational responsibilities Decisional responsibilities Project planning tools Managing Change Managing Third-Party Contractors Managing Technology

223. Transformational change differs from change initiatives in that it: affects qualitative processes and their results. challenges deeply held values, beliefs, and assumptions. permits individual modification of some elements. stems from market branding strategies.

224. Strategic Planning

225. Strategic Planning Phase 1 Mission Vision Values Phase 2 SWOT Analysis Environment Scanning Long Term Objectives Strategy Identification

226. Strategic Planning(con’t) Phase 3 Short-term objectives Action plans Allocation of resources Employee engagement Phase 4 Review strategies Measure performance Take corrective action

227. Which of the following activities best prepares HR to participate in the strategic planning process? Evaluating a new HRIS system Restructuring HR’s recruiting system Training line managers on interviewing techniques Reviewing the company’s key financial data

228. Internal Business Partners Finance and Accounting Marketing and Sales The 4 P’s Operations Information Technology Employees Human Capital vs. Human Resources

229. The Evolution of Organizations

230. Competitive Advantage Strategies Cost Leadership (operational excellence) Differentiation Focus Human Capital Advantage Customer Intimacy

233. Measuring HR’s Contributions Financial Measures Cost-benefit analysis Break-even analysis Performance Measures Balanced scorecard Performance audits Other Indicators Key organizational metrics Turnover Others

234. Research Primary Research Experimental Pilot projects Surveys/questionnaires Interviews (exit, individual, and panel) Focus groups Direct observation Testing Secondary Research Historical data Benchmarking/best practices Purchased data Professional journals, books and other media Secondhand reports (e.g., grapevine reports)

235. Quantitative Analysis Charts and graphs Measures of central tendency Mean Mode Median Measures of variation Measures of association Inferential statistics

236. Qualitative Analysis Individual or panel interviews Surveys and questionnaires Focus groups SWOT analysis Small groups

237. How valid and reliable is the data? Reliability: the ability of an instrument to measure consistently Test/retest Rater agreement Others Validity: the ability of an instrument to measure what it is intended to measure Content Construct Concurrent

238. Ethics Not synonymous with legality Must begin at top of organization HR plays important role Organizational culture influences Must walk the talk Training is important

239. Ethical Issues Privacy Drug testing Surveillance Technology Whistleblowing Conflict of interests Insider trading Bribes, payoffs and kickbacks Cultural clashes Copyrights

240. Corporate Citizenship Programs

241. Questions?