The Encyclopedia of Human Resource Management, Volume 1 E-Book

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 789

Veröffentlichungsjahr: 2012

Beschreibung

The three volumes in The Encyclopedia of Human Resource Management offer a comprehensive review of the essential issues and most important information available on the topic. Each volume in the encyclopedia contains contributions from some of the most celebrated names in the field of human resource management (HRM) and addresses the myriad challenges faced by today's human resource professionals.

Volume 1 puts the focus on the definition of terms and practices that are most relevant to today's human resource management (HRM) professionals. The contributors bring an up-to-date perspective of HRM definitions and practices and for ease of access, the terms are presented in alphabetical order. Each contributor includes the most recent research on a particular topic and summarizes a new and progressive definition of these important terms. The book begins with an enlightening discussion of the evolving practice of talent management and contains the following topics: Affirmative Action, Assessment, Business Ethics, Campus Recruitment, Career Development, Compensation, Drug Tests, Employee Relations, Flexible Benefits, Glass Ceiling, HR Metrics and Analytics, Mergers and Acquisitions, National Labor Relations Act, Quality Circles, Recruitment and Selection, Self-Directed Work Teams, Social Responsibility, Strategic Human Resource Management, Training Needs Analysis, Work Family Balance, and more.

The Encyclopedia of Human Resource Management gives human resource professionals the knowledge, information, and tools needed to implement the best practices in the field.

Leseprobe

CONTENTS

Introduction to Volume One

1. The Evolving Practice of Talent Management

Integrated Talent Management

Preparing Managers for a New Role

Establishing Talent Management Processes

Achieving Integration

Conclusion

Reference

2. Multi-Rater (360-Degree) Feedback Instruments

How Does It Work?

Pitfalls with 360-Degree Feedback

Best Practices in Using 360-Degree Feedback

References

3. Action Learning

Components of an Action Learning Program

Key Steps in the Action Learning Model

References

4. Age Discrimination in Employment Act of 1967 (ADEA)

Importance of ADEA

ADEA Coverage

ADEA Protections

ADEA Exceptions

ADEA Compliance and Penalties

ADEA Amendments

ADEA Enforcement

Related Employment Law Cases

References

5. Adverse Impact

Implications of Adverse Impact

Methods of Determining Adverse Impact

References

6. Affirmative Action

Purpose of Affirmative Action

Components of Affirmative Action

Coverage

Affirmative Action Plans

Affirmative Action Versus Quotas

Enforcement Agencies

Final Thoughts

References

7. Affirmative Action Plans

What Is an Affirmative Action Plan?

Determining Federal Contractor Status

First Steps

AAP Contents

Updating the AAP

A Note About Audits

References

8. Appreciative Inquiry

AI as OD

Appreciative Inquiry: The Genesis

AI Root Philosophies

AI, a Model of Action

References

9. Assessment

Definition of Assessment

Types of Assessment

Individual Assessments

Summary and Conclusions

References

10. Background Investigation

Information Is Accessible

Consumer Rights

Employment Investigation

Civil Litigation

Summary

References

11. Behavior Modeling

Use of Behavior Modeling Training

Four Components of Behavior Modeling

Designing Behavior Modeling Training

Critiques of Behavior Modeling Technique

References

12. Employee Benefits

Employee Benefits Package Structure

Types of Benefits

Cost of Employee Benefits

Regulation of Employee Benefits

History of Employee Benefits

Trends in Employee Benefits

The Value of a Benefits Package

References

Further Reading

13. Burnout

What Is Burnout?

History

Worklife Model

The Wrong Personality and Other Factors

Who and What?

Measuring Burnout

An Appreciative Reframing of the Measure

Job Strain Model

Possible Preventions

References

14. Business Ethics

The Scope of Business Ethics

Climbing the Ladder of Organizational Ethics

Why Great Employees Make Not So Great Decisions

What Can an Organization Do?

Conclusion

References

15. Campus Recruiting

The History of College Recruiting

Future Trends in College Recruiting

Generations “Y” and “Z”

Campus Recruiting Strategies

References

16. Career Development

The Importance of Career Development

The Process of Career Development

How Career Development Is Implemented

Career Development Interventions

Contemporary Career Development

Criticism on Career Development

References

17. Change Management

The Goal of Change Management

The Importance of Change Management

The Process of Change Management

Typical Criticisms of Change Management

References

18. Child and Elder Care

What Are Child and Elder Care?

Evolution out of Need

Changing Workforce Demographic

Work/Life Balance

Trends and Best Practices

The New Definition

References

19. Civil Rights Acts

Definition of Legislation

Overview of Civil Rights Act

History Behind the Civil Rights Act

Social and Political Pressure Behind the Civil Rights Act

Equal Employment Opportunity Commission (EECO)

Civil Rights Act of 1968

Civil Rights Act of 1991

Current Definition

References

20. Civil Rights Act of 1991

Disparate Impact Analysis

Mixed Motive Analysis

Damages

Jury Trials

Americans Abroad

Procedural Changes

Conclusion

References

Further Reading

21. Consolidated Omnibus Budget Reconciliation Act (COBRA)

References

22. Collective Bargaining

Duty to Bargain

Collective Bargaining Procedures

Expiration and Termination

References

23. Comparable Worth

The Pay Gap

Explanations for Gender Pay Inequity

Final Thoughts

References

24. Compensation

Incentive Pay

Gainsharing

Profit Sharing

Stock Options

ESOP Plans

Summary

References

25. Corporate University

References

26. Crisis Management

Business Case for Crisis Management

Crisis Management Team

Conducting a Vulnerability Assessment

Developing a Crisis Management Plan

Crisis Recovery Plan

Communicating During and After a Crisis

Troubleshooting the Crisis Management Plan

Aftermath of a Crisis: Critical Incident Stress

Conclusion

References

27. Corporate Social Responsibility

Changing Conceptions of CSR

CSR and Human Resource Management

CSR Minus HR = PR

References

28. Culture

Purposes of Culture

Levels of Culture

Assessing and Changing Culture

References

29. Disciplinary Procedures

Common Disciplinary Problems

Disciplinary Investigations

Documentation

Files

Final Thoughts

Reference

30. Drug Tests

Definition of Drug Tests

Limitations of Drug Tests

HR Implications of Drug Tests

Proposed Legislation Changes

References

31. Employee Wellness Programs

Advent of Employee Wellness Programs

The General Cycle

The Value of Employee Wellness Programs

References

32. Employment-at-Will

Rationale for the Employment-at-Will Doctrine

Exceptions

Trends

Conclusion: Practical Advice to Employers

References

33. Employee Relations

Managing Employee Relations

Improving Employee Relations

References

34. Equal Pay Act of 1963

Definition of Legislation

Limitations of the Equal Pay Act

HR Implications of the Equal Pay Act

Proposed Legislations Changes

References

35. Executive Compensation

Executive Classification

Executive Compensation Philosophy

Components of Executive Compensation

Salary Surveys

Factors Influencing Executive Compensation

Executive Compensation Governance

References

36. Executive Education

Drivers of Executive Education

Early Executive Education Initiatives

Formats of Executive Education

MBAs and Executive MBAs

Future Challenges

References

37. Executive Order 11246

Exceptions to EO 11246

Non-Construction Contractors Program Requirements

Construction Contractors Program Requirements

Monitoring Compliance

Filings by Individuals

References

38. Executive Search Firms

Types of Executive Searches

Specialization

Advantages of Using a Search Firm

Disadvantages of Using a Search Firm

Conclusion

References

39. Flexible Benefits

Background

Types of Plans

Trends Influencing Flexible Benefits

Conclusion

References

40. Fair Labor Standards Act of 1938

Exempt Versus Non-Exempt Coverage

Recordkeeping

Child Labor Laws

Current Updates to the FLSA

References

41. Glass Ceilings

Chronological Approach

Barriers for Women’s Career Development

References

42. Global Supply Chain Management for HR

Global Supply and Demand Chains Are Value Chains

Bottlenecks and Waiting Time Damage Value-Adding

The Bullwhip Effect Can Be Controlled

Service Profit Chains Require Special Understanding

Reverse Supply Chains

Supply Chain Security

References

43. Global Teams

Task

Context

People

Time

Technology

References

44. Grievance

Types of Labor Grievance

Further Reading

45. Guilds

Background

The Impact of Guilds

The Guild in the New Global Economy

Conclusion

References

46. HR Metrics and Analytics

HR Metrics

HR Analytics

References

47. Human Resources Compliance

Theory of HR Compliance

The Role of HR Management Within Compliant Organizations

The Risk of an Integrity Deficit

How to Implement and Conduct HR Compliance Programs

Typical Criticisms of HR Compliance

References

48. Human Resource Strategy

Assumptions

Process

HR Strategies

Three Components of an HR Strategic Plan

Current Debate

The Future

Further Reading

49. Mergers and Acquisitions

Due Diligence

Pre-Close Research and Planning

Post-Close Plan Execution

Measurement and Reporting

References

50. Human Resource Management

HR Responsibilities

Evolution of HRM

References

51. Internships

Defining an Internship

Creating an Internship

Structuring an Internship

Evaluating an Internship

Outlook for Internships

Further Reading

52. Job Analysis

Importance

Focus

Structure

Result Evaluation

Further Reading

53. Job Design

References

54. Job Satisfaction

What Is Job Satisfaction?

What Influences Job Satisfaction

The Impact of Job Satisfaction

Final Thoughts

References

55. Leadership Development

Evolution of Leadership Development

Components of Leadership Training

Leadership Development Models

The Law of Process

Conclusion

References

56. Learning and Development

Types of Learning and Development

Promoting Learning and Development

Future Trends

References

57. Leisure Counseling

Workaholism

Leisure Counseling Concepts and Definitions

Developmental-Educational Approach

Benefits of Leisure Counseling

Coordination of Leisure Counseling Services

References

58. Loyalty

References

59. Merit Pay

References

60. National Labor Relations Act

History

Provisions

Enforcement

As Amended

In Action

References

61. National Labor Relations Board

Jurisdiction and Authority

Further Reading

62. Negligent Hiring

References

63. New Employee Orientation

Common Outcomes

Summary

References

64. Ombuds

History

Trade Association

Standards of Practice

Organizational Benefits

Challenges

Conclusion

References

65. Organizational Citizenship

Benefits

Antecedents

Issues

Conclusion

References

66. Outsourcing

What Is Outsourcing?

Potential Reasons for Outsourcing

Offshoring

Negative Implications of Outsourcing

Additional Considerations

Conclusion

References

67. Pay Grades

References

68. Performance Aids

A Brief History

Basic Types of Job Aids

Formats for Job Aids

Appropriate Uses of a Job Aid

When a Job Aid Should Not Be Used

Job Aids and Technology to the Rescue

Performance Support

References

69. Performance Management

Performance Management

The Performance Management Process

Criticisms of Performance Management

Effective Performance Management Systems

References

70. Progressive Discipline

Progressive Discipline Process

Documentation

Appeals Process

Communication

Final Thoughts

Reference

71. Project Management

A Brief History

Core Knowledge Areas

Project Management Lifecycle

Project (or Program or Portfolio) Management Office

PM Maturity

Implementation Considerations

Uses of Project Management in HR and HRD

References

72. Quality Circles

References

73. Recreation Programs

Evolution of Employee Recreation

Strategies for Developing Employee Recreation Programs

Benefits of a Recreation Program

A Benefits-Based Approach to Developing a Recreation Program

The Employee Services Model

Implementing a Recreation Program

References

74. Recruitment and Selection

Recruitment

Strategic Recruitment

Recruitment Strategies

Recruiting Management Talent

Recruiting Front-Line Employees

Broad-Based Recruitment Methods

Selection Process

Final Thoughts

References

75. Self-Directed Work Teams

What Practitioners Need to Know

Case Study: Miller Brewing

Cast Study: Harley-Davidson

Conclusion

References

76. Social Responsibility

Evolution of Definition

Levels of Acceptance

Examples

The Role of Human Resources

Conclusion

References

Further Reading

77. Strategic Human Resource Management

Set HR Objectives

HR Strategies

HR Practices

HR Results

Conclusion

References

78. Succession Planning and Management

Purpose of Succession Planning

Definition

Definitions of Terms

Key Elements of Succession Planning

References

79. Training Needs Analysis

The Goal of TNA

The Importance of TNA

How TNA Is Conducted

Typical Criticisms of TNA

References

80. Virtual Teams

Why Virtual Teams?

Virtualness and Distributed Performance

Virtual Team Leaders

References

81. Work Values

Value Measurement and Measures

Work Values

National Differences in Work Values

References

82. Work/Family Balance

Hours Worked

Japanese Workers

Home Work

Moonlighting

American Families and Work

Family Responsibility Discrimination

Generations in the Workplace

More on Parents at Work

India’s New Work/Family Challenge

Canada

At What Cost?

Balance

References

83. Workplace Chaplaincy

The Issues Around Spiritual Care in the Workplace

Coordination of Chaplaincy Services in the Workplace

The Advent of Workplace Chaplains

Range of Services Provided

Crisis Management

Benefits of Spiritual Care

References

84. Wrongful Discharge

Public Policy

Contractual Agreement

Good Faith Covenant

References

Contributors

Subject Index

Name Index

About Volume One

Why Is This Volume Important?

Volume One focuses on the multiple definitional terms related to the comprehensive functioning of human resource management (HRM). From a more strategic sense, the introduction section of this volume attempts to anchor these definitions in a common purpose related to overall talent management—an important challenge facing organizations today. Therefore, this volume is important in that it brings a current definitional perspective of incremental HRM, yet seeks to apply them to a more progressive agenda of required business partnership for HR professionals. While not inclusive of all of the accepted definitional terms related to the practice of HRM, this volume provides a vast array of articles on updated and insightful topics for the beneficial use of modern-day HR professionals.

What Can You Achieve with This Volume?

The articles presented in Volume One were written to give readers a comprehensive perspective on the scope of today’s HR terminology and practices. Some of the terms that are defined provide an in-depth focus of topics long-practiced in HRM, while others attempt to provide a current definition for approaching a familiar practice. In all situations, they have been designed to stimulate new thinking and knowledge in the reader.

How Is the Volume Organized?

Following a compelling introduction concerning effective talent management challenges faced by modern HR professionals, the terms described in this volume are presented in alphabetical order. Each author begins with generally accepted definitions of the topic and brings forth recent research for updating the scope of the topic and summarizes with a new and progressive definition of the important term in the field.

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Library of Congress Cataloging-in-Publication Data

The encyclopedia of human resource management / executive editor, William J. Rothwell.

p. cm.

Includes bibliographical references and index.

ISBN 978-0-470-25773-9 (v. 1)—ISBN 978-0-470-25772-2 (v. 2)—ISBN 978-0-470-25771-5 (v. 3) — ISBN 978-0-470-59134-5 (set)

1. Personnel management—Encyclopedias. I. Rothwell, William J., 1951–

HF5549.A23E53 2012

658.3003—dc23

2011043163

Acquiring Editor: Matthew Davis

Director of Development: Kathleen Dolan Davies

Production Editor: Dawn Kilgore

Editor: Rebecca Taff

Editorial Assistant: Michael Zelenko

Manufacturing Supervisor: Becky Morgan

INTRODUCTION TO VOLUME ONE

This volume of The Encyclopedia of Human Resource Management consists of approximately eighty-four definitional papers that discuss myriad topics in a specific, yet comprehensive, approach of the body of knowledge related to human resource management (HRM).

Readers of this volume will find in-depth research and discussions of specific topics related to HRM. However, we should not become myopic in the study of these definitions that we lose site of the bigger picture. All of what comes together (definitions included) to become a comprehensive body of knowledge of HRM should drive forward an agenda of progress for organizations that implement such practices.

It is my opinion that “talent management” is the proverbial “stake in the ground” around which all modern HRM action creates the greatest impact for organizations. Thus, the first article serves as a beacon of direction in moving HR practices from a designated point toward a better educated sense of destination—and as a worthy introduction for this volume of work.

Dr. Robert K. Prescott, SPHR

Editor, Volume One

September 2011

ARTICLE 1

THE EVOLVING PRACTICE OF TALENT MANAGEMENT

Brian E. Wilkerson

Companies that rely on traditional talent management approaches will find themselves at an increasing disadvantage in the years ahead. The winners will be those that replace traditional talent management tactics with an integrated strategy owned by line management and focused on the elements that will truly give them an advantage.

Integrated talent management, which encompasses recruiting, succession planning, performance management, compensation, career development, learning, and strategic workforce planning, enhances an enterprise’s ability to attract and retain top talent. Bringing all these disciplines together into a cohesive strategy requires a significant investment of resources. The payback, however, in terms of lower turnover, higher engagement, and greater financial success, makes the investment worthwhile.

Organizations are struggling with how to reframe their attraction and retention strategies to adapt to the shortage of skilled workers, a changing economy, and the new technologies required to keep pace. Today’s businesses are struggling to manage a complex workforce that encompasses three generations of workers with differing needs and motivations and an increasingly global employee and customer base. Fragmented and disjointed talent management programs are making this process difficult.

Recruiting, succession planning, performance management, compensation, career development, learning, and strategic workforce planning are often handled as separate functions—sometimes by separate groups that often don’t effectively collaborate or coordinate their efforts. Compounding their efforts are a highly uncertain economy where companies are often experiencing simultaneous surplus and scarcity when it comes to talent and increasingly limited funds to invest in the practice of talent management.

Integrating talent management programs and other related initiatives allows a company to view workforce decisions in a strategic way and positions it for greater financial success.

Integrated Talent Management

Integrated talent management addresses managing human capital with the same clarity, discipline, and objectivity as managing other critical business assets. Research conducted while I was at Watson Wyatt Worldwide shows the elements that comprise a comprehensive, integrated strategy (Wilkerson, 2009). But just as important as connecting these elements together is connecting them to the business.

In 2007, we examined more than 150 talent management projects to determine what made companies successful at deploying integrated strategies. The major finding was that, while successful talent management is facilitated by the HR staff, it is owned by line managers and executives. It is part of each manager’s responsibilities and receives continual attention. This can happen, however, only when talent management processes align with the culture and values that drive how people in the organization make decisions and take action.

For example, no matter how thorough a succession planning process is, it will fail if managers pick up the phone and call an executive search firm as soon as a key player resigns. The point of succession planning is to have options already in place. Often succession plans are solely focused on compliance. Managers and HR staff respond to a CEO mandate by “filling in the boxes” to show a successor for all key positions. Little, if any, analysis or discussion occurs regarding the ripple effect of moving a particular person into a new position or the development needs of that individual, and often many people are identified as successors for more than one position. Such plans do not address the organization’s strengths and gaps, nor do they reflect a disciplined understanding of future needs. Integrated talent management aligns with the way the business works. Rather than forcing compliance from managers, it is embraced by managers because they see it as valuable to achieving their business results. This study showed that achieving this requires simple but powerful processes, where the effort put in is clearly aligned with the value received.

A truly integrated talent management process integrates talent decisions with business decisions. The distinction between connected processes and integrated processes is an important one here. In most organizations, talent management processes have varying degrees of connection to the business. That doesn’t mean they are integrated. Returning to the succession planning example, many organizations have talent review processes that call for discussing high-potential leaders and potential replacements and generally include a business context. Yet the talent planning discussion is disconnected from the business planning discussion.

In companies in which talent management is truly integrated, the succession discussion is part of the business discussion and talent reviews are part of business reviews. Discussion of future talent requirements is a natural outgrowth of a discussion about business direction, products, markets, and other issues. Throughout this book, you will find numerous definitions of key human resources concepts and information on practices employed by various companies. It is key to blend the elements that fit your culture and organization strategy into an integrated set of processes and practices that matches your needs. Rather than simply adopting what someone else terms as best practices, you have to create a synthesis of these concepts that speaks to your organization and can become part of how your management team manages.

Preparing Managers for a New Role

The current workforce challenges demand new thinking about talent management. This new thinking requires managers to develop new skills, including spotting good talent, coaching and growing their people, and connecting business planning skills with talent planning. Successful companies help their managers develop these skills to handle the people component of their jobs more effectively.

Managers play a critical role in integrated talent management, balancing the needs of the employer with those of the employee while representing the interests of both sides. To succeed, managers need a clear understanding of employee goals and expectations. Moreover, they need HR policies, processes, and tools to help them meet employees’ widely varying needs.

Establishing Talent Management Processes

Effective talent management processes integrate readily into the natural processes that drive the business. They take into account the managers’ work styles and busy work schedules. They ensure a high degree of communication from senior leaders down to individual employees. Clear communication establishes a clear line of sight and helps shape behavior.

For example, in most organizations, performance management really means performance appraisal. In contrast, integrated talent management closely links performance management with business management. One large service company has integrated its performance management process with its business reviews. Each business unit reviews its results and the contributions of its staff monthly, including the capabilities, skills, work processes, tools, and motivation that staff members need to improve their results. These reviews enable managers to provide real-time guidance to employees about improving performance, as well as real-time recognition for their contributions. Managers hold a brief conversation with each employee immediately following business reviews to give more specific feedback on performance. Generally, managers use notes from these conversations to make a more formal performance appraisal at year end. Both employees and managers see the process as easier, more valuable, and more closely connected to driving business results.

In the current business environment, integration also requires focus. Gone are the days of trying to establish “best in class” practices across all areas of talent management. Companies need to focus on the areas of talent management that will have the most impact on their business and where investments will bring the most return. In my own work, I have seen companies returning to a much more pragmatic approach to talent management and to integrating these processes with business strategy.

Achieving Integration

Companies that successfully integrate all their talent management processes and integrate talent management with the business strategy have a number of elements in common. First, they can clearly articulate how people contribute to the business strategy in terms that managers understand and can act on. Organizations with effective talent management also identify a clear set of objectives that are agreed to at the most senior levels and communicated throughout the organization.

Increasingly, companies are using brand as the link between people and strategy. Efforts around aligning internal (employment) with external (customer) brand go well beyond simply making the links between employee experience and customer experience. With brand alignment, companies are explicitly linking their employment brand and resultant employee value proposition to their customer brand and recognizing that employees are critical to delivering the brand promise to customers. To ensure that employees deliver on the external brand promise, employers must deliver on their employment brand promise. Managers are once again the critical link in this chain. Managers need to drive the right behaviors and have the right tools and processes to manage their people.

As a next step in the integration process, successful organizations define the decisions they are able to make to meet the talent management objectives, focusing on those that are most important and clearly tied to the business strategy. For example, in a consumer products company focused on new products, the key decisions focused on rewarding innovation, identifying the best innovators, and ensuring they were committed and engaged. These were then translated into data required to make the best decisions, and processes and tools were designed to effectively gather the data and translate it into actionable information.

A final element to success was driving accountability for talent management throughout the organization. Accountability takes different forms depending on the company, but includes holding leaders accountable for executing agreed-on processes and using them to make talent decisions. It also includes holding leaders to standards such as leadership competency models and ensuring that leaders either demonstrate those competencies or have plans for developing them.

While the integration process poses significant challenges, all successful companies find that integration is key to gaining manager and employee acceptance and to unlocking measurable results. Integration allows managers to see how to make talent management work in their day-to-day jobs instead of viewing it as some annual HR program. Once enough managers have adopted the processes, the programs, as measured by the key metrics the companies have chosen, begin to show improvement.

Conclusion

Research shows that companies with integrated talent management strategies do a better job of attracting and retaining top talent and, as a result, benefit from lower turnover and higher engagement levels than their peers. As talent management evolves in a changing economy, these companies are positioned to capture and maintain a leadership role in their respective industries. Most importantly, however, talent management strategies and processes must be aligned with the business strategy and owned by line managers and executives. In successful companies, HR is the facilitator and the business is the driver of successful talent management.

These companies will continue to distinguish themselves by creating a strong employment brand that clearly defines and communicates expectations, outcomes, and rewards. They will create a partnership between HR and business managers, leveraging the skills and expertise of each to make integrated talent management a reality. Through this partnership, they will strengthen employee engagement and encourage behaviors that drive business success.

Reference

Wilkerson, B.E. (2009). Five rules for talent management in the new economy. www.towerswatson.com/research-and-ideas.

ARTICLE 2

MULTI-RATER (360-DEGREE) FEEDBACK INSTRUMENTS

Curtis D. Curry

Multi-rater feedback, more commonly known as 360-degree feedback, is often used by organizations to help their managers identify leadership strengths and development areas. Multi-rater feedback instruments are designed to solicit feedback on a number of characteristics, skills, and behaviors believed to represent effective management, teamwork, or leadership practices. Examples of competencies include decision making, initiative, communication, and delegation.

There are many applications for multi-rater feedback. Common uses include assisting in career development, identifying gaps in perception of effective leadership performance between self, leader, peers, and direct reports, and enhancing manager and employee self-awareness. They are also used for improving communication and enhancing organizational efforts to involve employees. Using multi-rater feedback for these purposes can encourage behaviors and attitudes that reinforce the organization’s values and the strategic focus, while serving as a vehicle to promote the continuous growth and development of its leaders.

The primary purpose of multi-rater feedback is to provide an individual with extensive feedback on his or her skills, knowledge, or performance from a group of individual raters who are familiar with his or her work. The raters generally include the individual’s employees, peers, and supervisor. This “360-degree” view helps people understand relative strengths and developmental areas both as they perceives them and as others who have been selected to participate in the process perceive them.

The process allows leaders to compare and contrast their view of their own effectiveness with the views of supervisors, peers, and employees. Such feedback helps the participant explore the concept “perception is reality” and determine how closely aligned the other individual perceptions are with his own. Chappelow (1998) summarizes the purpose of multi-rater feedback: “a structured method of collecting and processing data, and an opportunity to reflect on this valuable information. It may be the only time some leaders ever consciously stop to take stock of their performance effectiveness” (p. 35).

How Does It Work?

Multi-rater feedback surveys contain a number of questions, or items, that solicit feedback on the other person’s performance. The items are grouped under specific scales, which usually represent competency areas such as those mentioned above.

In implementing 360-degree programs, organizations choose individuals who will participate in the process. These participants complete the survey instrument and rate themselves on such topics as leadership effectiveness, typically responding to items on a scale. They evaluate their performance on each of the items that appear on the specific survey. Additionally, the organization or the individual chooses raters from a pool of those who are familiar with the his or her work. The raters are asked to complete the instrument, responding to the same items, and providing valuable feedback on the individual’s performance.

Most 360-degree assessments require a minimum of three raters from each peer and employee rater group. This is done in an effort to achieve anonymity. Research has shown that this is an important practice since raters will generally score an individual higher if anonymity is not guaranteed (Chappelow, 1998). One of the primary values of 360-degree feedback is the ability of the person being evaluated to consider many different perspectives on his or her performance. By guaranteeing anonymity, the person is more likely to receive constructive feedback. This is especially true for subordinates and peers, as most 360-degree feedback instruments do not guarantee anonymity for the supervisor of the individual being rated.

The superiors’ and supervisor’s ratings are generally not anonymous, because people who are requesting the feedback are encouraged to discuss their feedback with their supervisors. Moreover, it is most common for people who complete a survey to have only one supervisor, although in matrix organizations feedback from several supervisors is not uncommon.

Confidentiality is an important consideration in implementing 360-degree feedback programs. When the focus of 360-degree assessment is placed on leadership development and confidentiality of results is assured, what Chappelow has called a “shield of objectivity” is created (1998). This “shield of objectivity” increases the validity of the responses. While participants in 360-degree survey programs are encouraged to share general trends in their feedback with their supervisors, when coupled with anonymity of respondents, the “shield of objectivity” helps participants receive more accurate, and therefore more useful feedback.

Participating in a multi-rater feedback process gives an individual the opportunity to carefully consider perceptions of his or her strengths and potential developmental areas on a number of competencies, seen as critical for effective performance. Therefore, the person also has an opportunity to compare his or her self-perceptions with those of peers, direct reports, and managers on the very same competencies. This enables him or her to weigh the various perceptions, identify relative strengths and developmental areas, choose gaps in current behaviors and skills, and consider strategies to leverage existing strengths or develop new skills to bridge the gaps. This is accomplished through goal setting and action planning. Multi-rater feedback has extremely limited value if the participant does not put the information to work.

Pitfalls with 360-Degree Feedback

In addition to leadership development, other uses of multi-rater feedback include selection, promotion, and performance evaluation. Uses other than development are referred to as administrative uses. Practitioners and researchers alike (Chappelow 1998; Smither, London, & Reilly, 2005) advise against using multi-rater feedback for purposes other than leadership development. Smither, London, & Reilly (2005) note that such use may create a “prevention focus” that can lead participants to a reactive, avoiding-type goal orientation (p. 53). Using multi-rater feedback for administrative purposes also increases rater bias as individuals strive to avoid torpedoing the career of the person they are evaluating and rate people more leniently (Chappelow, 1998). In their excellent book on choosing multi-rater feedback instruments, Velsor, Leslie, and Fleenor (1997) also argue that 360-degree feedback instruments should be used only in the context of development: “An individual or organization planning to use an instrument of this sort for selection, promotion, pay, or performance purposes is in treacherous territory and will need to become aware of the relevant professional standards (SIOP, 1987) and government guidelines (Mohrman, Resnick-West, & Lawler, 1990), which are not covered in this report” (p. 18).

Another pitfall in using 360-degree feedback tools effectively includes not carefully selecting the right instrument for the organization’s needs. One instrument is unlikely to fill all an organization’s needs with different management groups and levels. Instruments should be chosen with the actual behaviors, knowledge, and skills of the specific target group in mind.

Finally, the instrument’s validity and reliability should also be taken into account. Does the instrument measure accurately the behaviors it purports to provide feedback on? How reliably or consistently does it do so? Some surveys, such as the Center for Creative Leadership’s Benchmarks, are developed using rigorous validation procedures. Other 360-degree surveys are created by consultants or human resources professionals within the organization. Typically, these surveys are customized to address specific behaviors that the organization views as critical to its success in the marketplace. While they offer customization and specific targeting of leadership competencies, such instruments often suffer from inferior validity and reliability. If 360-degree feedback surveys are not carefully designed and validated to measure target competencies, the feedback may be marginally useful at best. Velsor, Leslie, and Fleenor (1997) offers a step-by-step guide to choosing the appropriate 360-degree feedback instrument to meet an organization’s specific needs.

Best Practices in Using 360-Degree Feedback

When utilized in the context of leadership development, 360-degree has been shown to improve performance, as well as serve as a catalyst to behavioral changes (Bradley, Allen, Hamilton, & Filgo, 2006; Chappelow 1998; Green, 2002; Smither, London, & Reilly, 2005). While multi-rater feedback can help leaders identify strengths and developmental areas and increase their self-awareness, there are a number of practices that can further increase its value to an organization. The following are the top eight best practices for implementing a 360-degree feedback effort:

1.Clearly communicate the purpose of using 360-degree assessment to participants and their leaders before, during, and after the program. The focus should be on development rather than evaluation.2.Use trained facilitators who demonstrate a command of both the 360-degree process, and the specific instrument and its target competencies, to present the results.3.Consider combining the 360-degree feedback process with training to increase self-awareness of strengths and developmental areas. A management development workshop can be an ideal vehicle for presenting an overview of the 360-degree process, describing the instrument and how it is designed and scored, and delivering the feedback results.4.Make sure participants create a development plan based on the feedback with SMART (specific, measurable, attainable, relevant, and time-bound) goals. Many 360-degree instruments include developmental guides or workbooks that provide a step-by-step process for setting and achieving developmental goals. These generally feature developmental activities such as on-the-job assignments, other developmental assignments, and training.5.Encourage participants to share the feedback with their leaders, peers, and employees. At a minimum, participants should be encouraged to thank their raters for taking time to complete the instruments and to indicate that they will be using the feedback to continue developing their skills and abilities. Leaders also may wish to meet with their employees, sharing general areas scored as strengths, as well as general areas the leader has chosen to continue to develop as a result of their feedback. The participant should also meet one-on-one with his or her leader to discuss the general areas of strengths and potential developmental areas.6.Organizations should maintain peer and employee confidentiality to ensure the integrity of the process.7.The organization should use multiple administrations to provide feedback on participants’ improvement in areas targeted for development.8.Individual coaching can increase the value of 360-degree interventions. A skilled coach who is knowledgeable in the instrument can provide additional interpretive feedback that the participant may miss, as well as assistance in setting and achieving developmental goals.

Supervisor, employee, and especially peer, feedback has been shown to help individual participants improve their performance when combined with other development efforts such as those outlined above.

References

Bradley, T., Allen, J., Hamilton, S., & Filgo, S. (2006). Leadership perception: Analysis of 360-degree feedback. Performance Improvement Quarterly, 19(1), 7–33.

Chappelow, C.D. (1998). 360-degree feedback. In C.D. McCauley, R. Moxley, & E. Van Velsor (Eds.), The handbook for leadership development. San Francisco: Jossey-Bass.

Green, B. (2002). Listening to leaders: Feedback on 360-degree feedback one year later. Organizational Development Journal, 20(1), 8–16.

Mohrman, A.M., Jr., Resnick-West, S.M., & Lawler, E., III (1990). Designing performance appraisal systems. San Francisco: Jossey-Bass.

Rogers, E., Rogers, C., & Metlay, W. (2002). Improving the payoff from 360-degree feedback. Human Resource Planning, 25(3), 44–54.

Smither, J., London, M., & Reilly, R.R. (2005). Does performance improve following multisource feedback? A theoretical model, meta-analysis, and review of empirical findings. Personnel Psychology, 58, 33–66.

Tyson, S., & Ward, P. (2004). The use of 360-degree feedback technique in the evaluation of management development. Management Learning, 35(2), 205–223.

Velsor, E.V., Leslie, J., & Fleenor, J. (1997). Choosing 360: A guide to evaluating multi-rater feedback instruments for management development. Greensboro, NC: Center for Creative Leadership.

ARTICLE 3

ACTION LEARNING

Yongho Park

In a modern competitive environment, organizations must be prepared to face various challenges, including finding new business opportunities, solving problems, establishing a shared vision of the future, and working toward achieving goals. Also, individuals have developmental needs to enhance their skills and knowledge. One method for coping with these two different needs can be action learning. Action learning is a real-time learning experience that is carried out with two equally important purposes—meeting an organizational need and developing group or individuals (Rothwell, 1999). Since its inception, action learning has influenced businesspeople, teachers, students, scientists, and a wide range of others with its approach to various level of learning including organizational, team, and individual (Waddill, Banks, & Marsh, 2010).

The term “action learning” has been defined very differently by various people, and many different training and learning interventions have been labeled with this term during the last two decades. The founder of action learning, Reg Revans (1982), defined action learning as “a means of development, intellectual, emotional, or physical, that requires its subjects, through responsible involvement in some real, complex, and stressful problem, to achieve intended change to improve observable behavior henceforth in the problem field.” Pedler (1991) regarded action learning as an approach to the individuals’ development in an organization and as the vehicle for learning, while McGill and Beaty (2001) defined it as a continuous process of learning and reflection, which are supported by many of their colleagues. Today, action learning is considered as both a process and a developmental program to improve favorable behaviors. Based on these trends, therefore, Marquardt (1999) described action learning as both a powerful program and a process that involves a small group of people solving real problems while focusing on what they are learning and the benefits from that learning at the same.

From these definitions, it is apparent that certain principles are common to action learning. Also, some basic principles distinguish action learning from other forms of experience-based learning. Its foundation is working in small groups in order to take action on meaningful problems while seeking to learn from having taken this action (Yorks, O’Neil, & Marsick, 1999). The basic two concepts of action learning, action and learning, especially need to be fully understood to concrete the concept of action learning more specifically (Yeo & Nation, 2010). Action learning is basically learning through action, where “action” is related to the behavior that each member of a group takes on his or her own issue after reflection with the group, and “learning” is the process of reflection. That is, the opportunity to reflect on an experience with the support of others followed by action means that set members engage in learning from experience in order to change rather than simply repeat previous patterns (McGill & Beaty, 2001).

Components of an Action Learning Program

The success and effectiveness of action learning rely on the cooperative interaction of elements. Weinstein (1999) discussed six main elements of action learning: (1) the set—the small group of five or six people who meet regularly to work together in a supportive yet challenging way; (2) the learning vehicle—the work-focused, real-time projects or tasks that each person focuses on; (3) the processes the set adopts when working—each person has his or her own “airspace,” in which to work on the project; (4) a set adviser—who helps the group as it works and learns; (5) the duration of a program—normally three to six months; and (6) the emphasis on learning—which emerges both from working on the projects and from working in the set. Weinstein discussed that the emphasis throughout the action learning is as much on achieving visible results as on learning from everything that takes place around the set.

Marquardt (1999, 2004) also identified six action learning components. Some elements of those six are very similar to Weinstein. For example, “the set” of Weinstein’s analysis is “the group” in Marquardt’s elements. However, his analysis of action learning components is built around a problem, including project, challenge, issue, or task, and that is different from Weinstein’s framework. Marquardt’s framework for action learning elements is globally regarded as the most comprehensive approach., which includes the following elements: (1) a problem should be significant, be within the responsibility of the team, and provide opportunity for learning; (2) the group is composed of four to eight individuals who examine an organizational problem that has no easily identifiable solution; (3) action learning tackles problems through a process involving asking questions to clarify the exact nature of the problem, and then reflecting possible solutions prior to taking action; (4) members of the action learning group have to have the resolution to take action or be assured that their recommendations will be implemented because there is no real learning unless action is taken; (5) action learning places equal emphasis on accomplishing the task and on the learning of individuals and organizations (the commitment to learning); and (6) the facilitator is important in helping the group members reflect both on what they are learning and on how they are solving problems. Marquardt suggested that interweaving these six components is valuable and necessary in creating the optimum capacity of action learning.

Key Steps in the Action Learning Model

Many action learning models have been suggested during the last few decades. These models share several common characteristics. Rothwell (1999) suggested one model depicting the following key steps:

Step 1. Recognize a situation suitable for action learning. To be most effective, action learning should be used only when a genuine business or organizational need exists.Step 2. Select and organize an action learning team. Appropriate members of an action learning team have to be chosen for the team to be successful.Step 3. Brief the team and establish constraints. Team members have to be given information about the issue, situation, or problem. Also, team members must have some sense of the limits on their search.Step 4. Facilitate team interaction. In the action learning team, to function cohesively is a key to success and to the development of individual members, who learn from each other.Step 5. Empower a team to identify and experiment with solutions. To achieve this purpose, the team members must be empowered to take action.Step 6. Evaluate results. Team members set the parameters for the solution, so it is often worthwhile to give them the responsibility to assess how well that solution has worked.Step 7. Set future directions. Action learning team members propose solutions, experiment with them, and are disbanded when an acceptable solution or a constraint is reached.

An organization adopting action learning can obtain benefits in various ways. Action learning is undertaken to achieve the goals of an organizations and individuals, and the needs of organizations and individuals can be met by action learning. Dotlich and Noel (1998) identified three types of action learning. Each type is related to the some benefits for organizations and individuals. That is, they discussed that action learning can be used as (1) a mechanism for cultural change, (2) a mechanism for developing people faster and better, and (3) a tool for raising revenue or cutting costs. These three types of action learning indicate that an organization can stand to benefit from action learning on cultural change, individuals’ development, and business profit. With regard to the benefits for the organization, Rothwell (1999) also more specifically listed the following five: (1) increased creativity, (2) increased ownership, (3) increased willingness to take risks for improvement, (4) increased interaction among the organization’s parts, and (5) improved morale and work satisfaction.

References

Dotlich, D.L., & Noel, J. (1998). Action learning: How the world’s top companies are re-creating their leaders and themselves. San Francisco: Jossey-Bass.

Marquardt, M.J. (1999). Action leaning in action: Transforming problems and people for world-class organizational learning. Palo Alto, CA: Davies-Black.

Marquardt, M.J. (2004). Optimizing the power of action learning. Palo Alto, CA: Davis-Black.

McGill, I., & Beaty, L. (2001). Action learning: A guide for professional, management & educational development. Sterling, VA: Stylus.

Pedler, M. (1991). Question ourselves. In M. Pedler (Ed.), Action learning in practice (2nd ed., pp. 63–70). Brookfield, VT: Gower.

Revans, R.W. (1982). The origin and growth of action learning. London: Chartwell Bratt.

Rothwell, W.J. (1999). The action learning guidebook: A real-time strategy for problem solving, training design, and employee development. San Francisco: Jossey-Bass.

Waddill, D., Banks, S., & Marsh, C. (2010). The future of action learning. Advances in Developing Human Resources, 12(2), 260–279.

Weinstein, K. (1999). Action learning: A practical guide (2nd ed.). Brookfield, VT: Gower.

Yeo, R.K., & Nation, U.E. (2010). Optimizing the action in action learning: Urgent problems, diversified group membership, and commitment to action. Advances in Developing Human Resources, 12(2), 181–204.

Yorks, L., O’Neil, J., & Marsick, V.J. (1999). Action learning: Theoretical bases and varieties of practice. Advances in Developing Human Resources, 2, 1–18.

Websites

www.gwu.edu/~bygeorge/021804/actionlearning.html

www.humtech.com/opm/grtl/ols/ols2.cfm

ARTICLE 4

AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967 (ADEA)

Katy Lynn Wilson

Importance of ADEA

In 1964, Title VII of the Civil Rights Act was enacted into law by the U.S. Congress to prohibit discrimination in the workplace based on race, religion, gender, or national origin. However, the act did not address discrimination based on age, and older Americans still struggled against inequities in the workplace. Some of the disadvantages and difficulties older Americans faced included obtaining and keeping employment, mandatory retirement, and employers imposing age limits for positions regardless of candidate abilities. To address this persisting discrimination, Congress passed the Age Discrimination in Employment Act (ADEA) in 1967 to prohibit discrimination against employees age forty and older in the workplace.

Recent statistics indicate that over half of our current workforce is protected under ADEA, giving it a very broad reach. However, according to the EEOC’s litigation statistics, ADEA claims account for only 9 percent of all discrimination suits filed.

ADEA Coverage

The ADEA covers U.S. citizens and foreign nationals (who are authorized to work in the United States) who are forty years of age or older and employees or job applicants of the following types of employers:

Private employers with more than twenty employees who work all business days in at least twenty weeks in the current or preceding calendar year;Labor organizations;Employment agencies;State and local governments;Multinational companies operating in the United States (unless otherwise covered by separate international agreement or treaty); andCompanies operating in other countries but based in, incorporated in, or controlled by a company in the United States (unless otherwise covered by laws in the other country).

It is important to note that the ADEA allows an employer to favor an older worker over a younger one, even if that younger worker is age forty or older. However, if an employer favors a younger worker protected by the ADEA over an older worker also protected, that employer is in violation of the ADEA.

ADEA Protections

The ADEA prohibits employers from discriminating against protected employees or job applicants in respect to all terms, conditions, and privileges of employment, including (but not limited to): hiring, transfers, promotions, terminations, layoffs, classifications, compensation/benefits, apprenticeships, and training programs. The act also prevents employers from harassing protected employees and creating hostile work environments as well as from retaliating against protected employees who claim age discrimination.

ADEA Exceptions

While the ADEA was enacted to protect older employees in the workplace, legislators did recognize that some exceptions to this protection were needed. These exceptions include:

Bona Fide Seniority Systems—having a seniority system that rewards employees with longer tenure, even if they are not over the age of forty.Bona Fide Occupational Qualification (BFOQ)—a BFOQ exists if employees over a certain age would be unable to perform the essential job functions and there are no less discriminatory alternatives available.Bona Fide Employee Benefit Plans—plans that allow employers to provide benefits to both younger and older workers at equal costs, even if this results in lesser benefits for the older workers, as long as the plan is provided in writing to all employees.Firefighters and Law Enforcement Officers—governments can impose mandatory retirement ages (fifty-five or older) on these workers. This is an exception to the 1986 amendment eliminating mandatory retirement ages.Bona Fide Executives and High Policy Makers—Organizations can require executives to retire at age sixty-five as long as they have worked in an executive/policy making position for the previous two years and will be able to collect at least $44,000 a year in benefits. This age limit can vary according to state law.

ADEA Compliance and Penalties

The ADEA lists specific penalties for any employer found in violation of the outlined protections. These penalties can include payment of lost wages/benefits, liquidated damages, court costs, and attorney’s fees. Courts may also require that employers reinstate employees or pay them for any future earnings the employer may have cost that employee with the discriminatory action.

The ADEA also outlines how a covered employer must maintain compliance with the provisions. Covered employers are required to post ADEA notices in prominent and accessible locations for both employees and potential applicants. They must also maintain employment records for a period of three years, which should include name, address, birth date, job title, and pay rate. Employers must keep records of benefit and seniority plans for one year after the plans expire. Employers are also required to keep records of all employment actions for one year after the action occurs. ADEA outlines that an employer must have a valid reason completely unrelated to age for any employment decision.

ADEA Amendments

There have been amendments to the ADEA that further the initial protections described in the statute. ADEA’s original verbiage provided protections only to workers between the ages of forty-five and sixty-five. This age restriction was continuously extended until the maximum age limit was ultimately removed in 1987.

One important amendment is the Older Workers Benefit Protection Act passed in 1990, which protects employees (ages forty or over) from being denied benefits due to their age. Prior to this amendment, it was not uncommon for employers to make discriminatory hiring decisions based on the fact that it would cost more to provide benefits to an older worker than to a younger worker, moving them to focus on hiring only younger workers. With this amendment, employers are only permitted to utilize age-based distinctions in regard to benefits if those distinctions are cost justified. This means that an employer is able to pay the same amount for benefits to both older and younger workers, even if this means the older worker receives fewer benefits (as the costs are the same). One important feature of the OWBPA is information regarding release agreements. During a reduction in force, employers will ask that the affected employees sign a waiver of liability prior to distributing severance. The OWBPA requires employers to ensure those waivers are written clearly and understandably and include the employee’s rights and potential claims under the statute. These releases must advise employees to seek legal advice and give employees twenty-one days to return them (forty-five days if it’s a group of affected employees) as well as seven days to rescind the signed release after its return. These stipulations give employees more protection and provide all the necessary information regarding their rights.

ADEA Enforcement

The EEOC maintains responsibility for enforcing ADEA. The EEOC has authority to initiate their own investigations into ADEA violations, negotiate with employers directly, and file lawsuits. Employees and job applicants can file charges against employers within 180 days from the discriminatory act (unless otherwise extended to three hundred days by state laws).

Once a charge is received, the EEOC will immediately dismiss the claim or notify the employer and proceed to investigate the claim to determine whether discrimination occurred. The EEOC may require claimants to submit documentation (statement of position, requests for information) or conduct onsite visits/interviews before they make a determination, which can, on average, take up to six months. If the EEOC finds no reason to believe discrimination has occurred, they will issue a “dismissal” along with a “notice of rights” to the employee who filed the charge. They will send a “letter of determination” when they find that discrimination most likely occurred, which will initiate the conciliation process. The conciliation process is voluntary and is a way to informally resolve an issue by allowing negotiations. If the conciliation process is unsuccessful, the EEOC will send the “right to sue” letter to the claimant. The claimant would then have ninety days from receipt of that letter to file a lawsuit. The ADEA allows for jury trials and for damages awarded by those juries to be doubled in cases involving intentional violations (known as disparate treatment).

While the EEOC has the right to review and investigate claims, issue “reasonable cause” findings, and “right to sue” letters, they have no authority to give a final judgment on a claim or dictate financial penalties. These judgments and financial penalty determinations are reserved for the courts.

Before a court can find in favor of a claimant, the claimant must prove that he or she is within the protected age bracket and was, in fact, denied a benefit or discharged while he or she was meeting the outlined expectations of the position at the time the discriminatory act took place. With the recent ruling in Gross vs. FPL Financial Services, it is stipulated that claimants are required to show a “preponderance of evidence” that age was the reason for the employer’s action in an ADEA claim. This ruling makes it significantly more difficult to bring forth and win a charge against an employer under the ADEA than it would for a charge under Title VII. Unlike Title VII, the ADEA has no inclusion for “mixed-motive” cases (cases in which the employer used both legal and discriminatory reasons for an employment decision) to move the burden of proof to the employer when there may be mixed motives. This means the burden of proving age was the primary reason for the employment decision and providing evidence of such lies with the employee, and this is a higher standard than set in Title VII.

Related Employment Law Cases

In order to develop a true understanding of the ADEA, it’s important to understand how the law is interpreted by the U.S. judicial system. Below is a sample of recent court cases that have been filed under ADEA.

O’Connor vs. Consolidated Coin Caterers (1996)

James O’Connor, fifty-six, filed suit under the ADEA against his previous employer, Consolidated Coin Caterers Corp., alleging prima facie discrimination after he was replaced by a forty-year-old employee. The Supreme Court stated that the ADEA provides protection to employees based on age and not their place within that age bracket. So it did not matter whether both employees were protected by the ADEA, only that the employment decision was based on age (www.oyez.org/cases/1990–1999/1995/1995_95_354).

Reeves vs. Sanders Plumbing Products (2000)

Roger Reeves, fifty-seven, sued his former employer, Sanders Plumbing, under the ADEA claiming they terminated his employment due to his age, even though the company stated it was because Reeves failed to maintain records accurately. Reeves showed evidence of his accurate records and the Supreme Court ruled in favor of Reeves. They indicated that if an employee provides adequate evidence to disprove an employer’s reason for a questionable employment decision, then that evidence would be adequate to find the employer liable for discrimination under the ADEA (www.oyez.org/cases/1990–1999/1999/1999_99_536).

General Dynamics Land vs. Cline (2004)

Paul Cline, a forty-eight-year-old union member working for General Dynamics Land, filed against his employer under the ADEA after they renegotiated a union contract to only provide full medical benefits to retirees over the age of fifty by July 1, 1997. Cline indicated this was “reverse discrimination,” as it gave older workers preferential treatment over younger workers also covered by ADEA. The Supreme Court indicated the ADEA was enacted for the explicit purpose of protecting older workers over younger ones, even if those younger employees are also over the age of forty. Because this contract benefited older workers, the court found in favor of the company (www.oyez.org/cases/2000–2009/2003/2003_02_1080).

Smith vs. City of Jackson, Mississippi (2005)

Azel Smith and his co-workers sued the Jackson, Mississippi, Police Department under the ADEA after a new salary plan was initiated. Smith contended that the salary plan offered larger raises to officers with fewer than five years of tenure, which had a disparate impact (unintentionally discriminatory) on older workers, as the majority of that protected class had more than five years of tenure. This case marked the first time the Supreme Court recognized disparate impact claims under the ADEA. Despite this authorization, the court ruled in favor of the City, indicating the plan was based on valid material unrelated to age (www.oyez.org/cases/2000–2009/2004/2004_03_1160).

Gross vs. FBL Financial Services (2008)

Jack Gross sued FBL under the ADEA, contending that they demoted him based on his age and the Federal District Court in Iowa agreed and awarded him $46,945. However, upon appeal, the Supreme Court ruled that, for a “mixed motive” case under the ADEA, the burden of proof should not shift to the employer and held that the employee must provide a “preponderance of evidence” that age was the reason for the employer’s action (known as “but-for” cause) (http://oyez.org/cases/2000–2009/2008/2008_08_441).

Related Topics

Equal Employment Opportunity Commission

Older Workers Benefit Protection Act (OWBPA)

State Laws Prohibiting Age Discrimination in Employment