[Solution] Human Resource Management and the Organizational Environment
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Author: Emily Carter
Companies manage their employees through a process called human resource management. This area of management is important because of the complexities of employment law, the costs associated with poor human resource management, and the potential to improve productivity through the effective management of people.
Human resource management (HRM) is the set of organizational activities directed at attracting, developing, and maintaining an effective workforce. Because employees are a major part of an organization's internal environment, HRM plays a critical role in both setting and implementing strategy. For example, it would be a poor decision to enter a new market if the company did not have access to people who understood that market.
The use of the term human capital to refer to members of the organization reflects an understanding that the cost and effort of attracting, retaining, and motivating an effective workforce is an investment.
HRM is usually carried out both within an HR function staffed by HR professionals and by managers with direct reports throughout the organization.
Select the term that best completes the following sentence.
A manager might use the term to convey the idea that applying resources to maintain and improve the quality of the workforce is an investment rather than just an expense.
View Explanation
Although all of these answer choices describe the people who work for an organization, the term human capital conveys the idea that applying resources to the workforce is an investment that can earn a return, just like spending on equipment or the development of new products.
The table lists laws and/or court decisions that shape HRM in the United States. For each law or court decision, indicate the area of employment law it most influences.
Title VII of the Civil Rights Act of 1964
Occupational Safety and Health Act of 1970 (OSHA)
Fair Labor Standards Act (FLSA)
Americans with Disabilities Act (ADA)
View Explanation
- Laws related to equal employment opportunity protect the rights of people who are members of groups that have historically suffered discrimination. This body of law concerns the right to be treated fairly in the workplace, including in matters of hiring, promotion, and pay. Title VII of the Civil Rights Act of 1964 forbids discrimination in all areas of the employment relationship.
- Employees in the United States have a legal right to a safe workplace in which they are not unknowingly or recklessly exposed to mechanical, chemical, or other hazards or conditions likely to lead to an accident. OSHA requires employers to provide safe working conditions.
- A number of laws govern how employers must pay employees and design and administer benefits plans. FLSA establishes a minimum federal wage and mandated overtime pay for work in excess of 40 hours per week.
- ADA outlaws discrimination against individuals with disabilities as part of equal employment opportunity protections.
