Evaluate legal and regulatory frameworks and policies that impact on human resource management and human resource strategy.
Human resource management and strategy are greatly impacted by legal and regulatory frameworks and policies. Various laws and regulations and policies determine human resource management and strategy. These include anti-discrimination laws, regulations protecting employee pay, laws on disability protection, legal frameworks on medical and family leave, workplace safety laws, and other legal frameworks and policies impact human resource management and strategy. Human resource managers must consider these laws in creating organizational policies and strategies to avoid consequences that come with the violation.
Employee rights, legal framework, impact human resource management and strategy. Various acts promoting employee rights determine how human resources are management as well as HR strategy. The Civil Act of 1991 and consequent amendments required human resource managers to avoid discrimination of any form in the working environment. The acts made discrimination based on sex, nationality, race, religion, and color against employees illegal (Gates, P. & Ellis LLP, 2005). Human resource managers are required to promote fair practices in employee recruitment, and selection. The Equal Employment Opportunity Commission enforced the act to the extent of providing penalties for its violation.
Regulations protecting employee pay impacts on HR management and strategy. The legislation on equal pay impacts on HR management and strategy. In support of civil rights, the legislation requires human resource managers to give employees equal pay. The 1963 Equal Pay Act requires that employees are given equal salary or wages free from discrimination based on any factor. The act demands equal pay for an equal workload with limited exceptions (Gates, P. & Ellis LLP, 2005). Also, the Fair Labor Standards Act requires that a certain minimum wage is provided to employees. HR managers are required to follow the standards in deciding the amount to pay their employees (Compa, 2010). Failure to comply with the regulation can lead to back pay and penalties.
Law on disability protection influence human resource management and strategy. Various laws dictate how employers must treat employees with medical condition or disability (Compa, 2010). For instance, the Act of Americans with Disabilities forbids employers from employment discrimination due to a medical condition, disability, or perceived disability. In addition, the Act requires an employer to consider reasonable accommodations to enable such employees to execute their duties effectively (Gates, P. & Ellis LLP, 2005). Also, there are legislations such as the Health Insurance Portability and Accountability Act (HIPAA) that requires the protection of employees’ medical information. Human resource management must consider these laws before making it relate decision.
Legal frameworks on medical and family leave impact human resource management and strategy. Any HR management practice or strategy must take into considerations these laws to avoid defiance consequences (Gates, P. & Ellis LLP, 2005). For instance, the act of federal Family and Medical Leave (FMLA) requires that employees are provided with a given period of unpaid leave. This can be due to a severe health condition, bonding with the new baby or spouse. During this period, employees protected with their health coverage remaining as though the employee was working (Gates, P. & Ellis LLP, 2005). Human resource managers are forced to consider the law before making any decision related to employee leave.
Workplace safety laws impact HR management and strategies. These laws require that employers provide a safe working environment. There are many regulations that are backed by criminal and civil penalties in relation to employees’ safety (Gates, P. & Ellis LLP, 2005). In planning their management strategy, human resource managers must ensure that these laws are followed. They must ensure that their workforce is not subjected to working conditions that are hazardous. Failure to enforce these laws can lead to lawsuits.
Law on employee termination and participation impact human resource management and strategy. Labor laws require employers to give covered employees termination notice. Employees can use their employers is this law is violated (Compa, 2010). Human resource managers are therefore forced to consider the law in making HRM decisions related to termination. Also, laws and regulations on labor require to allow covered employees to participate in trade unions (Gates, P. & Ellis LLP, 2005). Through these laws, employers are expected to engage with the unions to solve matters at hand. Therefore, human resource management and strategy have to be done in accordance with the law to avoid consequences that come with the violation.
Other legal frameworks and policies that impact HR management and strategy are minimum standards regulations, international and national labor law, and collective labor laws. These laws determine the kind of strategy adopted by human resource managers. Any decision in relation to how many hours employees should work, and the issue of hiring foreigners is guided by the legal frameworks (Gates, P. & Ellis LLP, 2005). HR management and strategy are impacted by these laws and regulations.
Government policies also impact human resource management and strategy. Taxation policies have a direct impact on business operations. Human resource managers must put into consideration government taxation before making any investment decisions (Compa, 2010). Otherwise, the managers may choose to increase spending which may consume limited savings leading to shrinking of organizational production.
It is clear that various legal and regulatory frameworks and policies impact human resource management and human resource strategy. These include among other anti-discrimination laws, regulations protecting employee pay, laws on disability protection, laws on medical and family leave, and workplace safety laws. Human resource managers must take these laws into consideration to avoid legal actions that may affect organizational performance. This is the only way to ensure that organizations avoid conflicts with lawmakers that may affect their performance. Such conflicts are associated with a bad reputation and costly penalties that affect overall success.
b. Determine various approaches implemented by businesses to managing the impact of governmental and legal policies.
It is important to manage the impact of government and legal policies on business. Otherwise, legal consequences may be experienced associated with poor business performance. Various approaches are implemented with the purpose of managing the impacts. These include creating and enforcing strict anti-discrimination rules, implementing workplace safety programs, putting in place employee termination guidelines, developing policies that support a minimum wage, and hiring an attorney.
First, businesses create and enforce strict anti-discrimination rules. Any form of discrimination in the workplace increases the risk of lawsuits and penalties. Such an impact can damage a business. To avoid this, business enforces rules that discourage and prohibit any form of discrimination (Gates, P. & Ellis LLP, 2005). These rules are for both employees and employers. For employers, the rules require discrimination-free practices. Whether its recruitment, hiring, wages, promotion, and other benefits, employees should be treated fairly regardless of their religion, age, sex, sexuality, gender, disability, and race among other factors (Gates, P. & Ellis LLP, 2005). To avoid the consequences of violating government laws and policies on discrimination, businesses put strict rules that make any form of discrimination as totally unacceptable.
Second, businesses implement workplace safety programs to manage the impacts of government laws and policies on safety. With the program, businesses are able to create a working environment that is safe for all workers (Gates, P. & Ellis LLP, 2005). The program involves various practices including having a safety and health officer, educating all stakeholders on the program, regular safety training, availing a copy of the program to every employee, and encouraging reporting of potential hazards (Gates, P. & Ellis LLP, 2005). Such programs ensure that the working environment is safe and employees are less likely to get an injury. Improving safety standards in the working place helps business in preventing legal actions that can be harmful.
Third, businesses put in place employee termination guidelines to avoid the impact of government regulation and policies in relation to the termination. The guidelines outline the exact processes that an organization will follow while terminating employees. The guidelines are described in employee handbooks and are consistently followed (Gates, P. & Ellis LLP, 2005). Additionally, the guidelines require employers to review their actions before making any termination decision.
Fourth, businesses develop policies that support minimum wage as a way of managing the impacts of government laws and policies. The policies ensure that a business complies with the law of fair wages. The policies are made in accordance with local, state, and federal laws as well as regulations (Gates, P. & Ellis LLP, 2005). The policies ensure that covered employees are paid minimum wages per hour as the law requires. The approach helps in avoiding impacts that come with violation of the laws and regulations.
Additionally, businesses hire attorneys as an approach to managing impacts of government laws and policies. With the attorney, businesses are able to get proper advice on legal issues such as issues on medical and family leave, participation in trade unions, and working hours among other issues (Gates, P. & Ellis LLP, 2005). Attorneys also guide business on complying with government policies such as taxation policy.
In conclusion, businesses have to adopt approaches that help in managing the impact of government laws and policies. Lack of such approaches would subject a business to lawsuits that would not only tarnish its name but also affect its performance. Among the approaches implemented include creating and enforcing strict anti-discrimination rules, implementing workplace safety programs, putting in place employee termination guidelines, developing policies that support a minimum wage, and hiring an attorney. The approaches ensure that businesses create and enforce policies that are in compliance with government laws and policies. This creates a working environment will limited potential lawsuits.
c. Identify relevant business and contextual data needed by managers in human resource planning.
Human resource planning plays an important role in organizational performance. It involves identifying the workforce capacity required by an organization in terms of quantity and quality. Managers require certain data in order to undertake the process of human resource planning. This includes data on the current capacity of human resources, human resource requirements, number of employees who are possibly available internally and externally, organizational scenario, effective methods on workforce remuneration and benefits, and information on organizational goals and objectives.
First, managers need data on the current capacity of human resources. This includes information about current employees’ skills, abilities, and knowledge. A skills inventory of every employee provides this data. In this category, managers required detailed information in every employee’s skills (Aslam e al., 2013). They do not just require skills related to a particular position. Instead, every skill that an employee holds is considered required. The data includes information on education levels, educational certificates, and volunteer activities among other attained skills (Aslam e al., 2013). The information is essential for determining the best position for an individual employee as well as the ability to take more responsibilities. With this information, managers will be able to identify the number of available talents essential for making hiring plans.
Second, managers need data on human resource requirements for HR planning. The data is on the estimated number of employees required by an organization to achieve set objectives (Aslam e al., 2013). In addition, managers require information on possible competencies and skills that an organization requires. This information should be in terms of quality and quantity, that is, the talents and the number required to meet the current as well as future needs of an organization.
Third, managers require data on a number of employees who are possibly available internally and externally. This data will help managers in supply forecasting (Ulferts et al., 2009). The information will be on the number of available resources to meet organizational needs as well as potential talents who can be hired outside the organization to help fulfill needs that the current workforce cannot fulfill (Aslam e al., 2013). With this data, managers will be able to identify human resource gaps. Looking at the current capacity and future requirements help in identifying HR gaps. This is essential for making decisions during HR planning.
Fourth, managers need data on the organizational scenario. This includes data on environmental changes likely to affect an organization. The data is usually on various approaches and is obtained through various approaches such as PESTLE analysis. Managers use this information to make predictions on possible solutions in dealing with the changes to avoid negative impacts (Aslam e al., 2013). Systematic environmental scanning provides information after which managers make necessary considerations.
Fifth, managers need data on the most effective methods of workforce remuneration and benefits. This information is essential for keeping the current workforce as well as new employees happy and highly motivated (Ulferts et al., 2009). Therefore managers need to know about competitive salaries as well as benefit packages applicable in the current market. This ensures that the best methods are adopted to reward employees associated with retaining talents.
Sixth, managers need data on organizational objectives. This is important for aligning practices with the objectives. The alignment plays an important role in HR planning. The data enables human resource managers to work with other managers with a clear understanding of the main organizational goals (Ulferts et al., 2009). Putting into consideration this information in HR planning ensures that every organizational part is encompassed into the plan.
In addition, managers need data on HR issues and necessary changes. This information is provided by other managers. They provide real feedback on the issues and areas that need changes. With this information, managers are able to know which area or element to give priority during the HR planning (Aslam e al., 2013). Also, with this data, managers are able to make effective decisions as they implement human resource planning.
In conclusion, managers require certain data to effective conduct of human resource planning. This process ensures that an organization has the right talents to achieve set objectives. Therefore, to have successful human resource planning managers require data on the current capacity of human resources, human resource requirements, number of employees who are possibly available internally and externally, organizational scenario, effective methods on workforce remuneration and benefits, and information on organizational goals and objectives. With this information, managers can effectively roll out a plan with the purpose of enabling an organization to achieve its objectives.
Aslam, H., Aslam, M. & Ali, N., Habib, B. & Jabeen, M. (2013). Human Resource Planning Practice in Managing Human Resource: A Literature Review. International Journal of Human Resource Studies, 3 (1), 200-212.
Compa, L. (2010). Legal Protection of Workers’ Human Rights: Regulatory Changes and Challenges in the United States. Cornell Uiversity ILR School, 1-31.
Gates, P. & Ellis LLP (2005). Doing Business in the United States: A Guide to Basic Employ ment and Labor Laws for Foreign Companies, 1-31.
Ulferts, G., Wirtz, P. & Peterson, E. (2009). Strategic Human Resource Planning In Academia. American Journal of Business Education, 2 (7), 1-10.