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CHAPTER 7 • Managing Human Resources 243
an activity has been generally prohibited under Title VII (sex discrimination) in the United
States, in recent years this problem has gained more recognition. By most accounts, prior to
the mid-1980s, occurrences were generally viewed as isolated incidents, with the individual
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committing the act being solely responsible (if at all) for his or her actions. Today, charges
of sexual harassment continue to appear in the headlines on an almost regular basis.
Most of the challenges associated with sexual harassment involve determining what
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constitutes this illegal behavior. The EEOC explains that it is unlawful to harass a person
because of that person’s sex. Harassment can include sexual harassment or unwelcome sexual
advances, requests for sexual behavior, and other verbal or physical harassment of a sexual
nature. However, harassment does not have to be of a sexual nature and can include offensive
remarks about a person’s sex. Simple teasing, offhand comments, or isolated incidents that
are not serious are not prohibited by the law unless it becomes so frequent or so severe that it
creates a hostile or offensive work environment or it results in an adverse employment deci-
sion (such as being demoted or fired). 58

You gotta be attuned to what makes fellow
employees uncomfortable.

For many organizations, it’s the offensive or hostile environment issue that’s problem-
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atic. Managers need to know what constitutes such an environment. How do you determine
whether something is offensive? For instance, do off-color jokes in the office create a hostile
environment? How about classical artwork that shows nude men or women? The answer is it
very well could! It depends on the people in the organization and the environment in which
they work. The key is knowing what makes fellow employees uncomfortable—and if we
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don’t know, we should ask! Also, managers must understand that the victim doesn’t neces-
sarily have to be the person harassed but could be anyone affected by the offensive conduct. 61
Organizational success will, in part, reflect how sensitive each employee is toward
another in the company. At DuPont, for example, the corporate culture and diversity programs
are designed to eliminate sexual harassment through awareness and respect for all individu-
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als. It means understanding one another and, most importantly, respecting others’ rights.
Similar programs exist at FedEx, General Mills, and Levi-Strauss, among other companies.
If sexual harassment carries with it potential costs to the organization, what can a com-
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pany do to protect itself? The courts want to know two things: (1) Did the organization know
about, or should it have known about, the alleged behavior? and (2) What did managers do
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to stop it? With the number and dollar amounts of the awards today, it’s even more impor-
tant for organizations and managers to educate all employees on sexual harassment matters
and to have mechanisms available to monitor employees. In addition, organizations need to
ensure that no retaliatory actions—such as cutting back hours, assigning back-to-back work
shifts without a rest break, etc.—are taken against a person who has filed harassment charges,
especially in light of a U.S. Supreme Court ruling that broadened the definition of retaliation. 65
Finally, in a sexual harassment matter, managers must remember that the harasser may
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have rights, too. No action should be taken against someone until a thorough investigation
has been conducted. Furthermore, the results of the investigation should be reviewed by an
independent and objective individual before any action against the alleged harasser is taken.
Even then, the harasser should be given an opportunity to respond to the allegation and have
a disciplinary hearing if desired. Additionally, an avenue for appeal should also exist for the
alleged harasser—an appeal heard by someone at a higher level of management who is not
associated with the case.

How and Why Are Organizations controlling HR costs?

HR costs are skyrocketing, especially those associated with employee health care and
employee pensions. Organizations are looking for ways to control these costs.

What aboUt emPLoyee heaLth care coStS? Employees at Paychex who undergo
a confidential health screening and risk assessment, and those who smoke who agree to