Monday 23 April 2012

LEGAL CONTEXT OF HR DECISIONS


A. Legal context of HR decisions
Legal considerations are significant external force affecting human resource management relates to federal,
state, and local legislation and the many court decisions interpreting this legislation. In addition, many
presidential executive orders have had a major impact on human resource management. If company is
having compliance with the  legal considerations it will be contribution towards enhancement of good will
reputation as well as fair operations of the organization that will be leading towards attaining competitive
advantage.  Keeping in view the importance of legal considerations mangers must understand the legal issues that affect the practices of HRM Like Which employee to hire?
How to compensate employees?
What benefits to offer?
How to handle conflicts?
How and when to fire employees? etc.
Legal
Compliance
Competitive
Advantage

Important? 
Understanding and complying with HR law is important for three reasons.  It helps the company to do the
right thing, to realize the limitations of the HR and legal departments, and it limits potential liability.


Doing the Right Thing
Compliance with the law is the right thing to do.  The primary requirement of these laws is to mandate good
management practice.  Operating within these laws has benefits beyond simple legal compliance. 
Discriminatory practices not only create potential legal  liability, but also lead to poor employee morale and
low job satisfaction, which can lead to poor job performance.


Realizing the Limitations of the HR and Legal Departments
If managers make poor decisions, the HR department neither always be able to resolve the situation nor can
a firm’s legal department solve problems created by managers.  The function of the legal department is to
try to limit damage after it has already occurred.Limiting Potential Liability
Considerable financial liabilities can occur when HR laws are broken or perceived to be broken.

Legal regulation of HRM
Legal environment and considerations can influence potential and prospective as well as current employees
of the organization to Prospective Employees. It provides Protection from discrimination in selection, initial
job placement, and initial compensation While to Current Employees Protection from discrimination in all dimensions of work in the organization.

Fair employment
A situation in which employment decisions are not affected by discrimination is termed as Fair employment.


Employment discrimination
To make an employment decision, not on the basis of legitimate job-related factors...Any employment
decision: hiring, promotions, pay, discipline, etc fail to use job-related factors (e.g., essential job
qualifications, job performance, etc.), and for employment decisions Instead, of legitimate factors employer
uses false stereotypes and prejudices. Law Prohibits Discrimination in Hiring, Compensation, terms,
conditions or privileges of employment based on Race, religion, color, sex, national origin and  Physical
Disability.
 Laws affecting HRM:
The laws affecting HRM can be divided into two broad categories:  equal employment opportunity (EEO)
laws and other laws.  The major EEO laws cut across nearly every aspect of managing human resources.  
 
Equal Employment Opportunity (EEO)
The concept of equal employment opportunity has undergone much modification and fine-tuning since the
passage of the Civil Rights Act in 1964. Congress has passed numerous amendments to that act and has
passed other legislation, as oversights in the initial act surfaced. Major Supreme Court decisions interpreting
the provisions of the act have also been handed down. Executive orders were signed into law that further
strengthened equal employment opportunity. EEO is a combination of legislative and judicial policy set
forth by federal, state, and local governments that  ensures fair and equal treatment of all persons. Job
applicants may not be rejected based on discriminatory practices


Affirmative action
A strategy intended to achieve fair employment by urging employers to hire certain groups of people who
were discriminated against in the past Steps that are taken for the purpose of eliminating the present effects
of past discrimination
 Major Federal Laws (USA)
There have been many laws passed and court decisions rendered that affect the everyday actions of human
resource management. Human resource decisions that were made in the past may no longer be feasible.
Human resource managers have a responsibility to ensure that actions affecting human resource
management adhere to both the letter and intent of the law. Unfortunately, not everyone may share this
view, and that is when problems occur. 



 

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