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MGT 4610-Chapter 2

Terms

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Corporate social responsibility (CSR)
The implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves.
Organizational stakeholder
An individual or group whose interests are affected by organizational activities.
Social contract
The set of written and unwritten rules and assumptions about acceptable interrelationships among the various elements of society.
Social audit
A systematic assessment of a company’s activities in terms of its social impact.
Ethics
The discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation.
Type I ethics
The strength of the relationship between what an individual or an organization believes to be moral and correct and what available sources of guidance suggest is morally correct.
Type II ethics
The strength of the relationship between what one believes and how one behaves.
Human resource ethics
The application of ethical principles to human resource relationships and activities.
Profession
A vocation characterized by the existence of a common body of knowledge and a procedure for certifying members of the profession.
Corporate Social Responsibility
CSR
PROCUREMENT INTEGRITY ACT
This act was passed after reports of military contracts for $500 toilet seats.
1988
What year was the PROCUREMENT INTEGRITY ACT passed?
FEDERAL SENTENCING GUIDELINES FOR ORGANIZATIONS
FSGO
CORPORATE AND AUDITING ACCOUNTABILITY, RESPONSIBILITY AND TRANSPARENCY ACT (Sarbanes-Oxley Act)
The primary focus of the this act is to redress accounting and financial reporting abuses in light of recent corporate scandals.
Sarbanes Oxley Act
CORPORATE AND AUDITING ACCOUNTABILITY, RESPONSIBILITY AND TRANSPARENCY ACT is also known as what act?
Corporate social responsibility (CSR) program
When you assign a person responsibility for a program dealing with the ethical behavior of your organization you are likely establishing and implementing a what?
A CODE OF ETHICS
Most companies have codes of ethics.
Corporate governance and executive compensation
What are the two major areas where HR professionals can have a major impact on ethics and therefore corporate culture?
A profession
This is a vocation characterized by the existence of a common body of knowledge and a procedure for certifying members of the profession.
SOCIETY FOR HUMAN RESOURCE MANAGEMENT
The largest national professional organization for individuals involved in all areas of human resource management.
HUMAN RESOURCE CERTIFICATION INSTITUTE (HRCI)
This organization’s goal is to recognize human resource professionals through a certification program.
Human Resource Certification Institute
HRCI
American Society for Training and Development
ASTD
WORLDATWORK
This organization consists of managerial and human resource professionals who are responsible for the establishment, execution, administration, or application of compensation practices and policies in their organizations.
Rights
The powers, privileges, or interests that belong to a person by law, nature, or tradition
Responsibilities
These are obligations to perform certain tasks and duties
Statutory rights
These are rights based on laws and statutes
Contractual rights
Rights based on a specific contract between an employer and an employee, such as a labor contract
Employment contract
This outlines the details of employment
Non-compete agreements
These prohibit individuals who leave the organization from competing with an employer in the same line of business for a specified period of time
Non-piracy agreements
These bar former employees from soliciting business from former customers and clients for a specified period of time
Non-solicitation of current employees
These clauses are written to prevent a former employee from contacting or encouraging co-workers at the former firm to join a different company, often a competitor
Implied Contracts
Unwritten employer expectations about what is acceptable behavior or performance on the part of the employee
Employment-at-will (EAW)
This is a common-law doctrine stating that employers have the right to hire, fire, demote, or promote whomever they choose, unless there is a law or a contract to the contrary
Public policy exception
This permits employees to sue for wrongful discharge for refusing to support an action contrary to public policy. Perjury is an example
Implied contract exception
This is granted employees who perform satisfactorily in the absence of information that their employment is not subject to termination at will. Long service, promises of continued employment, and lack of criticism of job performance imply continuing employment
Good-faith and fair-dealing
This is expected of the employer. Employees who have had their faith breached by unreasonable employer behavior may sue for wrongful discharge
Wrongful discharge
The termination of an individual’s employment for reasons that are improper or illegal
Fortune v. National Cash Register Company (NCR)
In this case the court concluded that a company wrongfully discharged an employee to avoid paying a big commission to the employee
Constructive discharge
Deliberately making conditions intolerable to get an employee to quit
Just cause
Reasonable justification for taking employment-related action.
Due process
The requirement that the employer use fair means to determine employee wrongdoing and/or disciplinary measures, and that the employee have an opportunity to explain and defend his or her actions
Distributive justice
The perceived fairness in the distribution of outcomes
Procedural justice
The perceived fairness of the process used to make decisions about employees
Open door policy
Policy that anyone with a complaint can talk with a manager, an HR rep, or an executive
Arbitration
A process that uses a neutral third party to make a decision
Compulsory arbitration
When employees sign preemployment agreements stating that all disputes will be submitted to arbitration
Circuit City v. Adams
In this case the Supreme Court upheld arbitration as a condition of employment
EEOC v. Waffle House
In this case the court ruled that the EEOC could intervene despite an arbitration ruling
Peer Review Panels
These are composed of specially trained volunteer employees who have signed confidentiality agreements and the company empowers them to hear appeals from other employees who have been disciplined. They then make recommendations or decisions
Ombuds or ombudsman or ombudsperson
A person outside the normal chain of command who acts as a problem solver for management and employees
Right to privacy
An individual’s freedom from unauthorized and unreasonable intrusion into their personal affairs
The Privacy Act of 1974
This act includes provisions affecting HR record-keeping systems for federal agencies. While this law applies only to federal agencies and those providing services to the federal government, many states have passed similar laws
The ADA
This act requires that information from all medical examinations and inquiries must be kept apart from general personnel files as a separate confidential
ADA and HIPAA
Name two acts that specifically include regulations designed to protect the privacy of employee medical records
Whistle-blowers
Individuals who report real or perceived wrongs committed by their employers
The Employee Polygraph Protection Act
This act prohibits the use of polygraphs for most pre-employment screening
Pencil-and-paper honesty tests
These are alternatives to polygraph testing
Fair and Accurate Credit Transactions (FACT)
This act allows employers to hire outside investigators without first notifying the individuals under investigation or getting their permission
Drug-Free Workplace Act of 1988
This act requires government contractors to take steps to eliminate employee drug usage
Policies
These are general guidelines that regulate organizational actions
Procedures
These are customary methods of handling activities
Rules
These are specific guidelines that regulate and restrict the behavior of individuals
Employee Handbooks
These give employees a reference source for company policies and rules and can be a positive tool for effective management of human resources
Downward communication
This type of communication flows from top management to keep employees informed about company plans and management’s expectations
Upward communication
This type of communication lets managers know about the ideas, concerns, and attitudes of employees
Discipline
A form of training that enforces organizational rules
Positive Discipline Approach
This approach builds on the philosophy that violations are actions that can be constructively corrected without penalty
Counseling, written documentation, final warning, and discharge
What are the four steps to positive discipline?
Progressive Discipline Approach
This approach incorporates a sequence of steps into the shaping of employee behaviors with each step becoming successively more severe
Separation agreement
Agreement where an employee who is being terminated agrees not to sue the employer, in exchange for specified benefits, such as additional severance pay or other “considerations”

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